Vol. 17, No. 7 July-August 2009

www.cubanews.com

In the News Declining food production, falling GDP

Finally talking bring to brink of economic crisis Meeting in N.Y., press U.S. offi- BY TRACEY EATON revolution that forced Gen. Fulgencio Batista cials on migration policy ...... Page 3 nly sweat and hard work, and not revolu- from power in 1959. tionary slogans, will lift Cuba from grind- More than half a century later, Cuba is reeling OFAC’s blind eye Oing economic times, President Raúl Cas- from economic crisis and a string of hurricanes Treasury isn’t fining U.S. individuals who tro said on July 26, the 56th anniversary of the that caused more than $10 billion in damage in 2008. Even before the storms, many Cubans violate Cuba travel ban ...... Page 4 start of the Cuban revolution. Planting crops on idle farmland is especially were having trouble putting food on the table. Last year, Cuba’s trade deficit soared by 65%, Trade deficit woes urgent, he told an estimated 200,000 country- men gathered in the eastern city of Holguín. driven by a doubling in the value of oil imports, Cuba’s worsening economic outlook in “The land is there…let’s see if we can work it, higher costs of food imports and a decline in the charts and graphs ...... Page 6 if we produce or not, if we keep our word or not,” price of a key export, nickel, according to a Castro said. “It’s not a question of shouting newly released government report (see related Newsmakers ‘Homeland or death! Down with imperialism!’ story on Cuba’s economic crisis, pages 6-7). Cuba’s financial and economic condition is José Miguel Insulza gives the OAS some The land is there waiting for our sweat.” Many in the crowd chanted “Fidel, Fidel.” “serious,” the official Communist Party newspa- badly needed relevance ...... Page 8 Others responded with cries of “Raúl, Raúl.” per Granma said July 29, publicly acknowledg- July 26 commemorates a daring rebel attack ing the dire straits Cubans face. Soberón quits on the Moncada barracks in Santiago de Cuba, According to the paper, First Deputy Econo- Central Bank replaces Francisco Soberón, the country‘s second-largest city. The 1953 mic Minister Adel Izquierdo “supported with rolls over eurobonds ...... Page 11 attack was a failure, but it launched the Cuban See Crisis, page 2 Fundraising blues U.S. recession makes it harder to collect Non-U.S. diplomats sound off on Cuba: money for disasters in Cuba ...... Page 13 Views from Ottawa, Brussels & London Camagüey calling A look at Camagüey’s Ignacio Agramonte BY LARRY LUXNER regard to Cuba policy,” said Levy, in what had to be the understatement of the morning. International Airport ...... Page 14 hree of Washington’s closest allies in the world — Canada, Great Britain and the “Canada has pursued a two-track approach. The first track involves strategic engagement Doctors in demand TEuropean Union — couldn’t disagree more with U.S. policy when it comes to one thorny, between Canadian officials and the Cuban Cuban physicians are a hot item — from perennial issue: Cuba. govenrment to push for change from the top Barbados to Cape Verde ...... Page 16 The dramatic divergence of views was obvi- down,” he said. ous at a July 23 seminar organized by the Center “In 2005, Cuba’s then-foreign minister, Felipe Bookshelf for Strategic & International Studies. Pérez Roque, visited Canada. In 2007, our “Cuba: An International Perspective” featured deputy minister of foreign affairs had a very Bay of Pigs, Benny Moré, Brigade 2506 talks by two Washington-based political officers productive four-day visit to Cuba. and Cuban cuisine ...... Page 20 — Bruce Levy of the Canadian Embassy and “Last year, our agriculture minister went to Luc Véron of the European Commission — and to sign a memo of understanding,” he Ulterior motive Dianna Melrose, British ambassador to Cuba. said. “And most recently, Cuba’s minister of for- eign investment came to Ottawa for meetings Obama administration’s real strategy: Levy, head of his embassy’s political section, noted that Canada and Mexico were the only with his Canadian counterparts. Betting on Cuba’s collapse ...... Page 22 two countries in the Western Hemisphere that “Each of these visits provides the Canadian didn’t sever diplomatic relations with Cuba fol- government with the second track of our diplo- CubaNews (ISSN 1073-7715) is published monthly lowing the 1959 revolution. macy — engaging Cuban civil society, academ- by Luxner News Inc. © 2009. All rights reserved. “When the U.S. embargo was imposed, Can- ics and economists to build capacity and Subscriptions: $429 for one year, $800 for two years. ada decided to maintain engagement. This was demand change from the bottom up.” For editorial inquires, please call (301) 452-1105 Levy said Canada has a $12 million aid pro- or send an e-mail to: [email protected]. an important decision, and it set us on a slightly different path than the United States with See Diplomats, page 10 2 CubaNews ❖ July-August 2009 bring from other countries,” Raúl said, noting supplement a $10-a-month pension, com- Crisis — FROM PAGE 1 that Cuba cannot blame all its problems on plained that government officials can’t seem the 47-year-old U.S. embargo. to fix the economy. unobjectionable facts and figures the serious “They don’t have anything to talk about,” he nature of the economic and financial situation “We should not be at peace as long as land remains idle,” Castro said, adding that if the told CubaNews. “It’s almost always the same.” in Cuba due to the effects of the global crisis.” A man named Lazaro, who drives a bicycle Juventud Rebelde, another official newspa- land isn’t fit for crops, trees should be planted. Castro’s supporters said they liked what taxi, complained that he has to work 14 or 15 per, said Izquierdo presented “a detailed sum- they heard. “It was a very important speech,” hours a day to feed himself and his family mary of the adjustments to the 2009 econom- said Alexis Triana, the agriculture director in Asked for his last name, the man replied, ic plan,” which was scheduled to be submitted Holguin province. “We need to be self-suffi- “That which I don’t have — peace,” he said. to lawmakers during a plenary session Aug. 1. cient in food production.” “My name is de la Paz.” In his July 26 speech, Raúl said another Triana complained about the longtime U.S. Another Holguín resident, Fermin Camejo, adjustment would be agreed upon by the ban on trade with Cuba, saying it has hurt the 38, said he’s optimistic about the future. Cuba Council of Ministers, though by press time no economy. But he said Cubans have learned to isn’t as developed as some other nations, but changes had been immediately announced. survive despite the American “blockade.” has become a powerhouse in “culture, health Nearly 50% of Cuba’s farmland is idle, much “During the economic crisis of the ‘90s, and sports,” he said, despite the “inhumane” of it overrun with an invasive weed known as there didn’t seem to be a way out,” he said. U.S. embargo. “We want to live in brother- marabú. Officials are giving away land with hood, not war,” he told CubaNews. “We don’t “But we’ve learned that even when there’s no ❑ hopes of boosting agricultural production. alternative, there is always another way.” want to fight with anyone.” “It’s a matter of national security to produce Blocks away, not everyone was as enthusi- Freelance journalist and Cuba expert Tracey the crops that grow in this country and which astic about Castro’s speech. Eaton, who is based in St. Augustine, Fla., filed we spend hundreds of millions of dollars to Efren Oro, 65, a retiree who still works to this exclusive CubaNews dispatch from Holguín. TRACEY EATON

An estimated 200,000 Cubans gathered in Holguín to mark the 56th anniversary of the start of Cuba’s revolution and to hear a speech by Raúl Castro (above). Cuba cuts GDP forecast to 1.7%, delays Party congress uba has suspended plans for a Commu- The forecast by Marino Murillo Jorge, min- adopted other measures in recent months to nist Party congress and dropped econo- ister of economy and planning, followed the cope with a growing liquidity crunch. Cmic growth projections in 2009 by near- recent replacement of Cuba’s entire econo- At the same time creditors have been asked ly a full percentage point to 1.7% as the mic team after a dismal 2008 performance. to restructure debts, and the bank accounts of island’s economy struggles through a “very The report outlines adjustments to the 2009 hundreds of suppliers and other foreign com- serious” crisis, Reuters reported July 31. plans of the old cabinet, including projections panies have been blocked in state-run banks In a meeting of the Party’s Central Com- of 1.7% GDP growth, down from earlier fore- since January. mittee, officials agreed to postpone indefinite- casts of 2.5% and the original 6% estimate. Local analysts told Reuters that communist- ly the first party congress since 1997, which The report says imports will drop 22.2%, or run Cuba had not faced such a dire situation had been set for later this year, said Reuters, some $3.4 billion, compared with an increase since the early 1990s when the fall of the quoting the daily newspaper Granma. of nearly $1 billion first projected. Exports Soviet Union forced a 75% cut in spending. The gathering was to chart Cuba’s political will fall by $500 million, compared with a jump They said growth won’t likely exceed 0.5% future long after President Raúl Castro and of $600 million the old cabinet forecast. and may even end up being negative this year his brother Fidel are gone. Instead, top com- “I think the figures are much more realistic (see GDP growth chart, page 6 of this issue). ❑ munists will try to pull their country back and indicate they are trying to get the current from the economic brink. account back in the black,” a foreign busi- DEAR SUBSCRIBER: Due to a change in “Because of the laws of life, this will be the nessman said, asking his name not be used. our summer production cycle, we offer you this last [congress] led by the historic leadership The current account is a broad gauge of the combined July-August 2008 issue of CubaNews, of the revolution,” Raúl was quoted as saying. balance of foreign exchange flowing in and which is 24 pages rather than the usual 16. We Cuba is also slashing estimates of imports out of a country, in Cuba’s case critical given hope you enjoy the extra coverage. We’ll also ex- by billions of dollars in 2009 and projecting a the island’s dependence on imports. tend your subscription by one month on request. drop in export revenue due to the global The government has implemented energy Thank you for your understanding, and we financial crisis, Reuters reported. savings measures, cut social spending and appreciate your continued loyalty to CubaNews. July-August 2009 ❖ CubaNews 3 POLITICS At N.Y. talks, Cubans press Obama on migration policy

BY ANA RADELAT called the reinstated talks “a mechanism to the report said. explore a number of topics slowly.” “The change in leadership of both the he United States and Cuba held their Hakim also said the Obama administration United States and Cuba may provide open- first high-level talks in more than six sought resumption of the migration talks years, with few concrete results but the ings for revisions in U.S. policy on Cuban T because it showed the United States is open migration,” the CRS report concluded. promise of future compromises. to establish an avenue to communication with The July 17 meeting in New York centered The United States and Cuba also use may Cuba in a way that has little political risk. use future migration talks to reach agreement on longstanding differences between Wash- “The talks are like low-hanging fruit,” Ha- ington and Havana on the implementation of on other things such as direct mail service kim told CubaNews. “They don’t involve high between the two countries — a service that Clinton administration-era migration accords. political costs and may have a few benefits.” The Cubans have long objected to the was discontinued with the end of direct flights The U.S. is also in the early 1960s. Cuban Adjustment Act of 1966, which gives likely to be anxious Cuban immigrants the opportunity to apply Both governments have expressed a mutu- to ask Cuban offi- al interest in cooperating in environmental for legal residency after one year and a more cials for help in recent “wet foot-dry foot” policy that allows and disaster preparedness issues, especially curbing a rise in un- hurricane tracking. any Cuban who reaches U.S. shores to documented immi- remain legally in the United States. Yet the first few high-level meetings gration from Cuba. between Washington and Havana are expect- The United States returns illegal Cubans A June report migrants who are detained on the high seas ed to have more style than substance. issued by Congres- “I think it’s going to be a feeling-out or at the border. sional Research But the Castro regime says U.S. immigra- Service said 49,500 process,” said Eric Farnsworth, vice-presi- tion policy still encourages illegal migration Cubans became le- dent of the Council of the Americas. “Both and puts lives at risk as Cubans take desper- gal U.S. permanent sides are going to have to figure out how seri- ate measures to reach the United States. residents last year. ously the other is willing to deal. It’s going to A statement issued in Havana after the talks They either arrived be a real discovery process.” said “legal, safe and orderly immigration from Dagoberto Rodríguez with visas issued by For the United States, the goal is to verify Cuba cannot be achieved while the Cuban the U.S. government or they came without how far the government of Raúl Castro is will- Adjustment Act and the wet foot-dry foot poli- visas, but reached U.S. soil before being inter- ing to change, said Farnsworth, a former cy exist in the United States, both of which dicted by the Coast Guard. State Department official who has also encourage illegal exits and human smuggling CRS also said interdictions of Cubans have worked at the White House Office of the by providing differentiated treatment to fluctuated since the mid-1990s, “yet the gen- Special Envoy to the Americas. Cubans who reach U.S. territory illegally.” eral trend has moved upward.” Interdictions “We have to figure out ‘Is Raúl different But toughening U.S. immigration rules for by the Coast Guard reached a 12-year high of from Fidel? Is this someone we can have a Cubans would anger Cuban-American voters, 2,868 in 2007, and dropped to 2,199 last year, conversation with?” he said. ❑ something President Obama hopes to avoid. FUTURE TALKS MAY TOUCH ON OTHER ISSUES Despite Cuba’s continued criticism of U.S. Dorgan seeks to boost U.S. food sales migration policy, Deputy Minister Dagoberto .S. food sales to Cuba would become ed the law the same way. In March, Trea- Rodríguez, head of the Cuban delegation, easier under a provision of a Senate sury Secretary Timothy Geithner sent called the New York talks “a fruitful working Ubill under consideration in Congress. Sens. Bob Menendez (D-NJ) and Bill session that validates the usefulness of the Sen. Byron Dorgan (D-ND) used his Nelson (D-FL) letters assuring the pro- mechanism of these rounds.” position on the Senate Appropriations embargo lawmakers that “current financing He invited the U.S. delegation to hold Committee to move to change the interpre- rules” remain in place when Cuba pays for another round in Havana in December. tation of a law that allows U.S. agricultural imports of U.S. products. The U.S. delegation was led by Craig Kelly, exports to Cuba, but requires payment to Dorgan said that policy “hurts family far- deputy assistant secretary of the State De- be made in cash by the Cuban government mers and restricts their ability to ship their partment’s Bureau of Western Hemisphere before shipments leave U.S. ports. products to the Cuban marketplace” and Affairs, and included representatives of the Dorgan inserted an amendment to a that his bill “returns the policy to the way Department of Homeland Security, Justice spending bill that would fund general gov- Department and U.S. Coast Guard. Congress intended” when it approved a bill ernment operations next year. Under that in 2000 that allowed food sales to Cuba. The U.S. delegation said little. amendment, the Cuban government would “The purpose of these talks is to have safe, Dorgan also inserted a provision in the be allowed to pay for U.S. food and agricul- State Department spending bill to strip legal and orderly migration,” said State tural products upon delivery. Department spokeswoman Heide Bronke. The term “payment of cash in advance’ funding from TV Marti, the U.S. govern- Established by Fidel Castro and former shall be interpreted as payment before the ment broadcasts to the Caribbean island. President Clinton after a massive exodus of transfer of title to, and control of, the “This program has not worked for the rafters in 1994, the migration talks were bro- exported items to the Cuban purchaser,” last 20 years, and resulted in an enormous ken off by President Bush in 2003. Dorgan’s amendment says. waste in taxpayer dollars,” the senator from Although their purpose was to discuss That’s the way U.S. food sales were han- North Dakota said in a statement. migration matters, the talks sometimes dled before the Bush administration said The spending bills must go to the full strayed to other issues — a diplomatic open- shipments to Cuba must be paid before Senate for consideration, where their Cuba ing opposed by anti-Castro exiles whose votes leaving the United States, provoking loud provisions will likely be opposed by Menen- Bush was courting. protests from Havana’s government. dez and other embargo supporters. Peter Hakim, president of the Inter-Ameri- The Obama administration also interpret- – ANA RADELAT can Dialogue, a Washington-based think tank, 4 CubaNews ❖ July-August 2009 POLITICS OFAC turns blind eye to U.S. tourists violating Cuba ban BY ANA RADELAT journalists on assignment — can ask Trea- companies have been prosecuted for embargo ven if hasn’t substantially weakened the sury’s Office of Foreign Assets Control for infractions. All of the cases were initiated dur- embargo, the Obama administration has permission to spend money on travel to Cuba. ing the Bush administration. In addition, an Edone little to punish Americans who But each year, thousands of Americans individual who bought Cuban cigars on the don’t bother asking the government for per- Internet was fined by OFAC. visit Cuba without government permission. mission and instead visit Cuba via third coun- Restrictions on travel to Cuba became the Philips North America is the latest U.S. tries like Canada, Mexico and the Bahamas. company to pay a penalty because of dealings focus of embargo-busters who thought the Even so, in the first six months of this year, time was ripe to knock down restrictions after with Cuba. In June, the electronics manufac- OFAC didn’t fine anyone who traveled illegal- turer paid $128,750 to settle allegations that President Obama assumed office in January ly to Cuba. an employee traveled to Cuba without a and Democrats consolidated their majorities The lack of sanctions contrasts with the license to sell medical equipment to the in Congress. Bush administration, which bowed to the Cuban government. Yet Obama hasn’t really acted to soften the wishes of exiles who demanded stricter en- Spokesman David Wolf said the company travel ban, other than loosen restrictions on forcement of the embargo. became aware an employee, who no longer family visits by Cuban-Americans. And legis- Before his 2004 re-election, Bush stepped works for the company, had traveled to Cuba lation in Congress that would remove restric- up enforcement of the travel ban, prosecuting several times between June 2004 and March tions on all Americans who want to visit the dozens of Americans who visited Cuba and 2006 “without credentials.” Philips brought island has not moved forward. asking the Department of Homeland Security the issue to OFAC’s attention. While the White House and Congress have to help find embargo violators. Wolf said the fine was reduced by OFAC not acted on the travel ban, not a single U.S. Yet prosecutorial zeal against individuals “based on the fact we were proactive.” citizen who’s violated it has been punished was dampened in Bush’s last years in office. Philips provides magnetic resonance imag- since Obama moved into the White House. His administration shifted its focus mainly to ing, ultrasound and other health-care equip- Certain categories of Americans — ama- travel agencies who violated the ban, though mentto Cuban hospitals. some individuals continued to be punished. teur athletes, members of religious groups, Other companies that settled Cuba-related farmers seeking food sales, academics and OFAC TARGETS COMPANIES, NOT INDIVIDUALS cases with OFAC this year were Effex LLC, a Florida firm that paid $2,000 to settle charges When made aware of a questionable trip, it made remittances to Cuba without a license; Cuba traveler: Arrest me please! OFAC usually sends the traveler a “caution- Varel Holdings, a Texas energy company ary” letter seeking information about the visit U.S. citizen trying to challenge the fined $110,000 because it was accused of ex- to Cuba. If OFAC deems there’s been a viola- porting goods to Cuba without a license; Lac- ban on travel to Cuba on Friday tion, it issues a fine, usually for $7,500. A bemoaned his inability to get arrest- Treasury spokeswoman Marti Adams talis USA of New York, which paid a $20,950 ed or cited — even after having his pass- declined to say exactly how many cautionary fine for allegedly making unlicensed wire port stamped in Havana and bringing back letters have seen issued this year. But she transfers to Cuba, and Liberty International Cuban memorabilia, reports AP. said there’s been “no more than a handful.” Holdings, Inc. of Boston, accused of insuring Mytchell Mora, a 39-year-old freelance Peter Hakim, president of Inter-American Cuban businesses. Liberty settled its case news producer, told U.S. customs officials Dialogue, said Obama should push for more with OFAC for $35,211. he broke the law after flying through Costa U.S. travel to Cuba, especially by academics One of the biggest cases OFAC has settled Rica home to Los Angeles. and Americans involved in cultural pursuits. recently involved Minxia Non-Ferrous Metals Officials punched some info about Mora More lax enforcement of illegal tourists Inc., a Columbia, Md., subsidiary of a Chinese into a computer and sent him home without “may end up being the solution,” Hakim said. company. Unlike Philips, Minxia “did not vol- punishment. They didn’t even confiscate “Obama should make it clear it’s not legal to untarily disclose” its transactions with the his Cuba T-shirt or postcards. travel without a license, then moderately Cuban government, which allegedly occurred “I am just so surprised nothing happened enforce the embargo.” between 2003 and 2006, OFAC said. The com- to me,” Mora said in a phone interview While no individual has been punished by pany was fined nearly $1.2 million. from Hollywood. “What can you really do OFAC for travel violations this year, five U.S. Minxia would not comment on the case. ❑ when you’re saying, ‘take me to jail or give me a ticket,’ and they do nothing to you?” Mora, on his fourth trip to Cuba, said N.Y. man sues OFAC over $9,000 Cuba fine that upon his return to LAX, he immediate- New York man filed a lawsuit challeng- to obey any regulation that requires a self-in- ly told U.S. authorities that he broke the ing the U.S. government’s restrictions criminating act,” the lawsuit said. law and should be subject to a secondary Aon spending by American citizens while An administrative law judge recommended inspection and have his bags checked. traveling to Cuba, the Wall Street Journal Sanders be fined $1,000 in 2008, according to Mora said a supervisor was called over reported July 16. the lawsuit. OFAC had proposed a fine as and typed details into a PC, but let him The suit, filed in U.S. District Court in large as $10,000. keep his souvenirs and leave the airport. Brooklyn, alleges Zachary Sanders was fined OFAC appealed the judge’s ruling and a Mora said he hopes he may still be cited after he failed to respond to a March 2000 re- designee for then-Treasury Secretary Henry so he can challenge the policy in court. quest by OFAC for information on a June 1998 Paulson affirmed the penalty and increased it During his eight-day trip to Cuba, Mora to $9,000 on Jan. 16 — four days before spent about $50 in government-controlled trip to Cuba and travel while he was there. The complaint claims persons who respond President Obama was sworn into office. stores on a green-and-red Che Guevara The complaint, filed by the New York-based beret, a Cuba T-shirt, Cuban flag refrigera- to OFAC’s request open themselves up for nonprofit Center for Constitutional Rights, is tor magnets, and postcards featuring a pic- potential criminal sanctions. ture of Fidel Castro shaking hands with “The penalty imposed against Mr. Sanders seeking a declaration that OFAC’s policy is un- author Ernest Hemingway. is unlawful because the Fifth Amendment pro- lawful, enjoining OFAC from issuing such pen- hibits the government from punishing failure alties and setting aside the fine to Sanders. ❑ July-August 2009 ❖ CubaNews 5 POLITICAL BRIEFS MONTERO REPLACES ALVAREZ AS ALIMPORT CHIEF In their own words … Pedro Alvarez, one of Cuba’s best-known offi- cials among U.S. executives, has left his longtime “We’re not there yet ... We think it’s important to see progress on issues of position as president and CEO of Alimport, the political liberalization, freedom of the press, freedom of assembly, release of sole Cuban entity authorized to purchase agricul- political prisoners in order for there to be the full possibility of normalization tural commodities from the United States. between our two countries. I don’t think it’s going to be happening overnight.” The new chief at Alimport is Igor Montero, — President Obama, telling reporters July 24 he’s open to more overtures to Cuba, prviously the agency’s vice-president. Alvarez, like relaxing academic travel rules, but not without signs of change from Havana. meanwhile, will head the Cuban Chamber of Commerce; no reason was given for the switch. “We share the sentiments of many who feel insulted by that decision, but I Kirby Jones, president of the US-Cuba Trade don’t see why one necessarily has to affect the other.” Association, said Montero has been with Alimport — Ricardo Alarcón, president of Cuba’s National Assembly, in an interview with for at least 10 years. AP. Alarcón was asked if the U.S. Supreme Court’s decision not to consider an “He knows his business well, is very person- appeal by five convicted Cuban spies would jeopardize bilateral migration talks. able, speaks English well and is familiar dealing with U.S. companies,” Jones told CubaNews. “I “This will help us avoid or [at least] limit the possibility of corruption.” think he’ll do an excellent job.” Ariel Terrero Added Marvin Lehrer of the USA Rice Federa- — Cuban TV commentator , who on July 30 announced the establish- tion: “Igor has been the VP at Alimport for some ment of a powerful new government agency tasked with fighting corruption. time, he’s well-known by the trade and we expect a seamless transition.” “I asked for as big a piece of land as they could give me, but they gave me In 2008, Alimport spent just over $800 million 0.95 hectares [two acres], which is not too much, so I applied for more and on farm commodities from U.S. food exporters. I’ve been waiting months for an answer.” Details: Alimport, Infante #16, 3er Piso, Vedado, — Idalmis García, a 39-year-old farmer in Las Guasimas, south of Havana. She’s Plaza, La Habana. Tel: +53 7 873-2014. Fax: +53 one of 78,113 Cubans who hope to benefit from a land distribution scheme that 7 873-3151. Email: [email protected]. took effect in September 2008 to try to boost Cuba’s homegrown farm output.

PRESS GROUP DEMANDS RELEASE OF JOURNALISTS “It’s a moment that all Cubans should treasure ... it’s the most important The International Press Institute called July 7 event in 50 years.” for the “immediate release” of the 22 journalists — Acclaimed dancer Carlos Acosta, describing the first-ever visit to Havana by jailed in Cuba and warned of the risk of down- Britain’s Royal Ballet in mid-July as “the event of a lifetime.” playing the importance of freedom of expression. The Vienna-based IPI noted in a statement that “We believe that the billboard was really not effective as a means [of] deliv- “various national delegations [to the UN Human ering information to the Cuban people. They weren’t even able to read the bill- Rights Council], including those of Canada, the board because of some obstructions that were put in front of it.” United Kingdom, France, the Netherlands, — Ian Kelly, spokesman for the State Department, telling reporters why it finally Austria, Chile, Italy and Slovakia, expressed con- turned off the giant electronic ticker that for three years had flashed information cern about Cuba’s violation of the right to free- and propaganda from the fifth floor of the U.S. Interests Section in Havana. dom of expression and the continued imprison- ment of journalists and human rights defenders.” “It is a beginning — and it is encouraging. It has to do with the atmosphere. The UN panel noted that among the 79 people It suggests that we are moving toward a more normal diplomatic relationship.” arrested in a 2003 crackdown on dissent were 29 journalists, of whom 21 remain jailed. — Retired U.S. diplomat Wayne Smith, commenting on the electronic billboard. Details: International Press Institute, Spiegel- gasse 2, A-1010 Vienna. Tel: +43 1 512-9011. “Many of the servicemen at the base in Guantánamo wanted to make this Fax: +43 1 512-9014. Email: [email protected]. trip with me ... Let us pray to God that someday we may share a service together, without separations.” MIAMI JOURNALIST AIRS CONTROVERSIAL PHOTOS — Archbishop Timothy Broglio, speaking to Cuban worshippers at a Mass in the A Miami TV talk-show host released photos city of Guantánamo — a day after preaching to soldiers at the U.S. naval base. showing three fired Cuban officials holding up cans of beer and partying at a ranch belonging to “It’s all about moving people and goods between our countries without the deposed Cuban agent for business interests restrictions. We have to be pragmatic right now and the first thing to do is get in Spain’s Basque region, AP reported July 24. Congress to drop the embargo.” The pictures appear to be related to talk in — Carl Lindell, commissioner of the Tampa Port Authority, who joined two dozen Cuba that the officials — ex-Vice President other executives in July on a controversial fact-finding trade mission to Havana. Carlos Lage, ex-Foreign Minister Felipe Pérez Roque and Fernando Remirez de Estenóz, ex- “We cannot talk about trade with Cuba because there is no freedom.” chief of international relations for the Communist — Osberto Fernández, president of the Cuban Exile Council of Tampa Bay, telling Party — were dismissed for making insulting the St. Petersburg Times why his group is against improving ties with Havana. remarks about Fidel Castro while guests on the property of local executive Conrado Hernández. Maria Elvira Salazar, host of a Miami TV pro- “Our project is intended not only to survive but also to make us self-suffi- gram, said about 30 pictures were delivered cient and allow us to develop further, even if the results of the planned anonymously to her station. She told AP “we can- drillings are not the most encouraging ... It is a project with a future.” not really know” what the pictures mean. — Unidentified engineer at state oil entity Cubapetróleo, speaking to “We only know what the Cuban government is Miami’s El Nuevo Herald in early July about a government plan to re- saying ... that they were fired for talking badly fine up to 4 million barrels of oil a day for export to nearby countries. about the [Castro] brothers,” she said. 6 CubaNews ❖ July-August 2009 ECONOMY Foreign trade deficit threatens Cuba’s economic health BY OUR HAVANA CORRESPONDENT include shutting down enterprises that ex- salt was trimmed from 2 kg to 1.4 kg per fam- uba’s leaders are putting a brave face on ceed their power quotas, or running business ily every three months. Across the island, the island’s economic performance and at state-owned firms only part-time. An article some essentials are hard to find even in hard- Cprospects for 2009. in Granma, the Communist Party daily, even currency stores. But all indications are that the problems called for reducing the length of baseball A variety of excuses has been offered as and pressures that forced a recalculation of games and cancelling all nighttime play in reasons for the cutbacks, among them a dis- Cuba’s growth projections aren’t going to go order to keep the lights off at stadiums and appointing 2009 sugar harvest; the tremen- away. In fact, they’ll probably get even worse. discourage people from watching TV. dous impact of last year’s hurricanes, which

In recent weeks, Cuban state media have Likewise, the use of air-conditioning is now caused $10 billion in losses; a credit flow slow- been warning about a wide array of economic limited to five hours a day, and cold-storage down caused by the global economic crisis mishaps. First were the public reproaches to facilities will be turned off for two hours a day. and Cuba’s recent late payments to lenders; Cuba’s “wasteful mindset” in energy con- The state ration system has also cut some the drop in revenues from tourism and remit- sumption and the “lavish spending habits” of food essentials. The quota for beans fell from tances; a softening of nickel and oil prices people and enterprises. 30 ozs to 20 ozs per person per month, while (according to Reuters, Cuba earned $880 mil- “Exceptional measures” were announced to lion from oil exports in 2008), and last but not cut the consumption of electricity, including least, Cuba’s colossal foreign trade deficit. the threat of renewed blackouts. Newspapers In April, Foreign Trade Minister Rodrigo and TV broadcasts also publicized a critical Malmierca warned about Cuba’s huge and account of Cuba’s mounting trade deficit and growing trade deficit. the urgent need to cut it down to size. DEFICIT GETTING WORSE, NOT BETTER Although the media crusades sounded ironic — almost offensive in a country that In 2008, according to the Oficina Nacional barely subsists on scanty resources — the de Estadísticas, that deficit reached $10.57 bil- fact is that authorities are scraping the bottom lion or 59% of total trade — up from $6.38 bil- of their coffers just to keep on going. lion (46% of total trade) in 2007. Imports last year rose to $14.25 billion, while exports fell EXTREME MEASURES TO CUT CONSUMPTION by a slight 0.6%. Marino Murillo, Cuba’s economy and plan- Things will clearly get worse in 2009. ning minister, warned that the 2.5% GDP “We are calling upon our companies to rad- growth projected by the government for 2009 ically change their export attitude and cul- “will not be achieved” and that GDP won’t ture,” Malmierca was quoted as saying. “Dur- expand by more than 0.5% (see box, right). ing the first trimester of this year, 80% of for- Murillo said Cuba’s critical economic situa- eign trade consisted of imports, something tion and lack of liquidity can be eased “only that should concern all of us.” with efficiency and saving.” For Cuba’s exposed economy — long Rather extreme measures to slash Cuba’s dependent on exports as the leading source power consumption have been taken. These SeeTrade, page 7 July-August 2009 ❖ CubaNews 7 later the Soviet Union, Cuba is repeating its with a Cuban surplus of $191 million last year, Trade — FROM PAGE 6 trade dependence pattern in order to survive. down from $344 million in 2007. of income — a chronic trade deficit is a per- Cuba’s deficit with China, the island’s 2nd- Trade with Brazil rose from 7th to 6th place manent risk to financial health. It also poses a largest partner with 12% of total trade, nearly in 2008. Cuba’s deficit with Brazil also rose, huge threat to the island’s stability, prosperity doubled from $443.6 million in 2002 to $805.6 from $103.6 million in 2002 to $559 million. and long-term development. million in 2008. Although Chinese imports fell An analysis of how Cuba manages its com- by 2% last year, exports to the world’s largest REFORMS LIKELY, BUT RELUCTANTLY mercial relations with overseas partners over market dropped by a whopping 27%. This dead end of trade deficits, dependence the years provides both a rough measure of Spain has seen its share of Cuban foreign on foreign food and a growing liquidity crisis the economy's overall performance and of its trade shrink in relation to Venezuela, China may lead to some urgent and long-delayed re- ability to compete with other countries. and the United States — but even so, its sur- forms — no matter how reluctant the regime Although this problem has plagued Cuba’s plus more than doubled, from $436 million in is to enact them. When faced with extreme economy since 1959, it was kept under con- trol in times of Soviet patronage. But since the mid-1990s, it has become unmanageable as farming fell into a deep crisis and Cuba came to be increasingly dependent on imported foots and short-term credits to alleviate domestic shortages. DEFICIT WITH VENEZUELA NEARLY DOUBLE Today, 84% of all food consumed in Cuba is imported. In the fact of a dramatic decline in farm output since 2001 (see CubaNews, June 2009, pages 12-13) and the Castro regime’s reluctance to make reforms, it’s highly unlike- ly this ratio will drop unless authorities fur- ther slash limited food rations or restrict the use of oil-generated electricity. The only bright spots are tourism and fam- ily remittances. Combined, these two sources of income account for about $3 billion in annu- al foreign exchange. Also, since the mid-1990s, Cuba exports the services of doctors and other health person- nel, which at least in Venezuela is used to pay 2002 to $1.035 billion last year. circumstances, Havana bends. for part of Cuba’s energy bill. In the last year alone, Cuba’s trade deficit For years, Fidel Castro was reluctant to Among the island’s top 20 trading partners, which together account for 75% of total trade, with Spain jumped by 78%. loosen the state’s grip on farm production only Canada, Singapore and the Netherlands Meanwhile, Havana’s deficit with the United until August 1994, when a massive riot forced bought more from Cuba than they sold. States — its top food supplier, with $801.6 mil- him to open farmers’ markets and lease some Moreover, Cuba’s deficit with these top 20 lion worth of agricultural imports in 2008 — state-owned lands to cooperatives — both of widened dramatically in the past seven years continues to grow, with no counterbalance as which proved to be a boon to food production. to $7.26 billion, or 69% of the total deficit. the trade embargo bans all Cuban exports to Fidel also did not initially accept imports of Cuba’s trading gap with Venezuela — the the U.S. market. U.S. food under the Trade Sanctions Reform island’s chief supplier of oil and petroleum Canada is the exception among Cuba’s key and Export Enhancement Act (TSRA) of

byproducts — jumped by 575%, from $706 trading partners. Sales of nickel to Canada 2000, which let U.S. farmers ship agricultural million in 2002 to $4.06 billion in 2008. pushed the balance in favor of Havana, with a commodities to Cuba on a cash-only basis. In the last year, Cuba’s deficit with Vene- gain of $111.7 million last year, down from a But after the damage inflicted by Hurricane zuela more than doubled. Meanwhile, Vene- $562.2 million surplus in 2007. The Nether- Michelle in November 2001, Cuba’s leader zuela’s overall trade with Cuba represents lands, a leading buyer of Cuban nickel and cit- changed his mind — and by 2002, the United 27.2% of the island’s total foreign trade. As rus fruit for redistribution throughout States had become Cuba’s top supplier of food was in the past with the United States and Europe, fell from the 6th to the 10th position, products, and remains so. ❑ 8 CubaNews ❖ July-August 2009 NEWSMAKERS José Miguel Insulza gives OAS some relevance, at last BY LARRY LUXNER He added: “If you want to improve the qual- ity of democracy and correct all of its defects, but I said I couldn’t do that because I did not t seems the stodgy old Organization of don’t try to justify the rape of democracy. You have OAS backing.” American States has grabbed more head- don’t rape a democracy to save it! When a In the ensuing weeks, many voices have Ilines in the last two months than it’s gen- coup occurs, you must denounce it as a very been raised in support of Zelaya — and just as erated in the last two decades — thanks to a serious crime, not legitimize the perpetrator. many in support of those who deposed him. dramatic debate over OAS membership for And that’s exactly what we did.” They say Zelaya tried to hold a dubious refer- Cuba and the subsequent coup in Honduras. On June 28 — only hours after troops endum on constitutional reform as part of a Yet the jury is still out on whether this 34- stormed the presidential palace in Teguci- Chávez-style power grab later declared illegal member club of nations — controlled for most of its 62 years by the United States — has really become a force to be reckoned with, or remains a toothless tiger out of touch with reality. “The OAS has struggled for years to figure out how to make itself relevant in hemispher- ic relations, when so much of that is dominat- ed by the U.S. relationship with Latin Amer- ica,” said Dan Erikson, Cuba program direc- tor at Inter-American Dialogue, a Washington think tank. ORGANIZATION OF AMERICAN STATES “In the past few months, the OAS has been very successful at positioning itself at the cen- ter of important hemispheric debates,” Erikson told CubaNews. “They really picked up where the Summit of the Americas [last April in Trinidad] left off, reincorporating Cuba back into the hemisphere. And then at the end of June, we had this coup in Hon- duras, which automatically led to a consensus to reject the interim government’s legitimacy and call for the reinstatement of President [Manuel] Zelaya.” At the center of this newly charged OAS is José Miguel Insulza, elected secretary-gener- al in May 2005. The 66-year-old former Chil- ean foreign minister is no stranger to coups d’etat, having been forced into exile for 15 years following the overthrow of Chile’s dem- José Miguel Insulza, shown here at a June 8 speech in Montreal, is the driving force behind the new OAS. ocratically elected president, Salvador Allende, by Gen. Augusto Pinochét. galpa, removing the pajama-clad Zelaya and by the Honduran Supreme Court. “A military coup is a rape of democracy,” he forcing him onto a plane bound for Costa Rica Jaime Daremblum, Costa Rica’s former declared in no uncertain terms. “The over- — the OAS condemned the action without ambassador in Washington and Latin Ameri- throw of governments by force is a setback — any qualifications. can director of the nonprofit Hudson Institute, not only for the country that suffers it, but “We did this to make sure nobody would re- angrily accuses the OAS of “abdicating its also for the whole region, which is why it can- cognize the coup leaders,” said Insulza. “The moral responsibility” and rejecting a diploma- not be allowed to happen. In Latin America, result of this action was that no government tic solution to the crisis in Tegucigalpa..” this rape of democracy happened often until in the world has recognized the de facto gov- only a few decades ago. It still seems shame- ernment of Roberto Micheletti.” DOUBLE STANDARD FOR DEMOCRACY? ful to remember.” Then on July 5, the OAS General Assembly “Under Insulza’s erratic and politicized suspended Honduras, invoking for the first THE RAPE OF DEMOCRACY leadership, the OAS has pursued a highly ide- time ever Article 21 of the Inter-American ological agenda and lost sight of its original In an emotional speech July 16 in Wash-ing- Democratic Charter. The unusual assembly raison d’être,” said Daremblum, writing in The ton, Insulza recalled how, in 1954 — as a 10- was attended by three heads of state: Argen- Weekly Standard. “The organization has ex- year-old boy growing up in Chile — he was in tine President Cristina Fernández de Kirch- pended huge amounts of energy to lift a 47- bed with the flu, reading Spanish-language ner, Paraguayan President Fernando Lugo year-old ban on Cuban membership, yet has editions of Life magazine to pass the time. and Zelaya himself. done very little to protest the creation of a dic- “A full-page photo caught my attention. It Insulza had planned to accompany Zelaya tatorship in Venezuela. was a picture of the deposed president of to Tegucigalpa, along with Kirchner, Vene- “Insulza’s response to the Honduran crisis Guatemala, José Arbenz, being forced to take zuelan President Hugo Chávez and Rafael revealed his double standard: After staying off his clothes in an airport before going into Correa, the president of Ecuador — but then silent on Chávez, he flew into a rage when exile,” he said. “Military coups not only thought better of it. Honduran authorities acted to defend their depose people but humiliate them as well. “We learned the runway was blocked, so it democracy from a power-hungry president Many of us, including present heads of state, was clear we could not go,” he said. “Some who was willing to break the law and trample have personal memories of this and have people suggested we should start flying to decided we’ll never let it happen again.” Honduras anyway, then go someplace else, See Insulza, page 9 July-August 2009 ❖ CubaNews 9 and Nobel Peace Prize winner Oscar Arias is Insulza, the OAS has flexed its institutional Insulza — FROM PAGE 8 acting as mediator between Zelaya and the assertiveness. “As to his degree of success, that depends the democratic process.” government headed by Micheletti. “Formally, Arias is negotiating as the presi- on where you stand,” he told CubaNews. Added columnist Andrés Oppenheimer, “They made a huge effort — ironically in writing July 17 in the Miami Herald: “While dent of Costa Rica, as requested by the OAS — and as president of the Inter-American Honduras — on the Cuba issue, to the point the OAS is rightly denouncing the coup where the U.S. is now rejecting Insulza for his against Zelaya, there are growing questions Integration System,” said Insulza, noting that by pure coincidence, Arias became president next term as secretary-general. Under about why it hasn’t said a word about the coup Insulza, the OAS has gotten under the skin of against Antonio Ledezma in Venezuela,” of SICA (as the organization is known in Span- even a liberal administration.” Oppenheimer wrote in a July 17 article. ish) the very day after the coup in Honduras. Ledezma, the opposition mayor of Caracas, “It’s very common that we ask personalities OAS: RELEGATED TO THE SIDELINES? was elected by a landslide in November 2008. in the hemisphere to do that. In most crises, According to Kornbluh, Secretary of State Yet after his victory, Chávez effectively ig- we’ve had some relevant personalities leading Hillary Clinton has hinted privately that the White House won’t support Insulza’s candida- cy in 2010 because he pushed so hard to read- mit communist Cuba into the OAS, from “You don’t rape a democracy to save it! When a coup occurs, which it had been suspended in 1962. Erikson of Inter-American Dialogue said you must denounce it as a very serious crime, not legitimize the organization’s new assertiveness began in the perpetrator. And that’s exactly what we did.” 2002, when it strongly condemned an attempt- ed coup against Chávez. That new muscle was — JOSÉ MIGUEL INSULZA, SECRETARY-GENERAL OF THE ORGANIZATION OF AMERICAN STATES very much in evidence at the OAS meeting in San Pedro Sula, Honduras, when the group’s 34 members unanimously voted to rescind Cuba’s suspension (see box below). nored the election results by creating a posi- the effort, not the secretary-general,” he said. “At the end of the day, the outcome of the tion of “super-mayor” of Caracas, appointing a “It’s not an unusual situation.” meeting on Cuba was managed relatively loyalist to the new job and stripping Ledezma Asked by a member of the audience if the well. The OAS successfully reached a consen- of 93% of his budget and all but 6,000 of his organization is effectively doing Chávez’s bid- sus resolution on Cuba, which had been very 22,000-member workforce. ding, Insulza chose his words carefully. much in doubt beforehand. They proved they Oppenheimer questions whether Insulza is “There’s still a certain movement to create could serve as a multilateral forum for dis- “turning a blind eye on transgressions” by an alternative, something different from the cussion,” said Erikson. Chávez and other strongmen because he OAS, which I’m sure will not succeed,” he “In the case of Honduras, the OAS has needs their votes to win a new term as OAS responded. “President Chávez is not that big faced greater challenges. There was a consen- leader, as some critics have suggested. a fan of the OAS, but I agree with Sen. Kerry sus to reject the coup, but the OAS hasn’t “It’s ridiculous to see Chávez and his when he said the issue here is Honduras, not brought about any resolution, and it ultimate- friends make fiery speeches in support of Venezuela. Zelaya is supported by all mem- ly outsourced the role of mediator to Oscar democracy in Honduras, when they them- bers of the OAS. To some extent, this is not Arias. This could have been an opportunity selves are killing it daily in their home coun- their case, this is a cause of the whole region.” for the OAS, or Insulza personally, to play a tries,” Oppenheimer concluded. “If the OAS Peter Kornbluh, director of the Cuba Docu- major role. But now, following the initial sus- doesn’t expand its Democratic Charter, Latin mentation Project at the nonprofit National pension of Honduras, the OAS has been rele- America will be increasingly more authoritar- Security Archive, says it’s obvious that under gated to the sidelines.” ❑ ian, and the OAS will become — like Ledezma said — a mutual protection club for power- hungry presidents.” U.S. says OAS upheld its ‘core principles’ INSULZA: MORE COULD HAVE BEEN DONE Here are excerpts from a press release resentative democracy.” Nonsense, retorts Insulza, who equates issued Jun. 10 by the U.S. Embassy in Bridge- Given the centrality of democracy to the supporters of the coup against Zelaya with town, Barbados, concerning the OAS vote to principles and purposes of the OAS, read- those who make excuses for rapists. lift its 47-year-old suspension of Cuba in the mission of Cuba without reference to those “As with all rapes, there’s always someone hemispheric organization: principles would undercut the foundation with impeccable democratic credentials on which the OAS was established. who’s willing to say that the victim brought it The recent OAS decision on Cuba was an In adopting the recent resolution, the upon herself,” the OAS leader pointed out. historic step for the inter-American system. OAS remained true to its core principles “Yes, she was raped, but what was she doing The unanimous resolution took two impor- and purposes while outlining a path toward there? Why was she dressed that way? Yes, he tant decisions: First, it lifted the 1962 sus- constructing a new relationship with Cuba. was pushed out of office, but he was trying to pension on Cuba’s participation in the OAS, The OAS resolution adopted June 3 was change the constitution illegally.” should the Cuban government decide it not an easy process; it was an act of states- On the other hand, Insulza also admits that wishes to return to the organization. manship that addressed and bridged an more could have been done. Second, it establishes a path for eventual historic divide in the Americas, while reaf- “We have a good early-warning system, but Cuban return to the OAS that “will be the firming our hemisphere's profound com- we knew what was going on. Probably I result of a process of dialogue initiated at mitment to democracy and the fundamen- should have made the decision to get involved the request of the Government of Cuba, tal human rights of our peoples. not a week before the coup, but several weeks and in accordance with the practices, pur- While we removed an historical impedi- before,” he conceded. “We all went to the poses, and principles of the OAS,” includ- ment to Cuba’s participation in the OAS, we OAS General Assembly [in San Pedro Sula] a ing its core instruments related to democ- also established a process of engagement month before, and even though there was a racy and human rights. with Cuba based on the core practices, lot of political tension then, it’s hard to imag- One of the core purposes of the OAS principles, and purposes of the OAS and ine what would happen a month later.” Charter is “to promote and consolidate rep- the Inter-American system. ❑ For the time being, Costa Rica’s president 10 CubaNews ❖ July-August 2009 “The EU obviously welcomes the resump- As if that’s not enough, she said, “there’s an Diplomats — FROM PAGE 8 tion of this dialogue, which is close to our own acute liquidity crisis, Cuba’s defaulting on its policy of constructive engagement. We also debts, and foreign companies aren’t getting gram focused on modernizing the economy, noted the decision taken in early June by the paid. Raúl’s drive isn’t showing results so far, especially the poorer eastern provinces which General Assembly of the Organization of and agricultural production outside the small have been affected by hurricanes and private sector remains highly inefficient.” drought. Ottawa has also established eight American States to terminate the 1962 resolu- tion that excluded Cuba from membership.” “Canadian study centers” in universities MORE PEOPLE-TO-PEOPLE CONTACT throughout Cuba. Following his speech, Véron was put on the “No other country, including Cuba’s social- defensive by Frank Calzón, founder of the “The new political rallying cry in Cuba, she ist allies, has this extensive in-country pres- Center for a Free Cuba — who asked what said, is “save or die.” ence,” he said, proudly pointing to Canada’s the EU really had to show for its “constructive “It takes a week’s worth of wages to buy a funding of a successful 10-year program to engagement” approach. pound of butter. This is why remittances from teach market economics at the University of The Frenchman kept his cool. the United States are so critical, and why the Havana. “We like to think we’ve contributed to “Fifty years of embargo have not produced Obama administration’s freeing up of restric- the rise of a new generation of technocrats.” a lot of results either,” he responded with sar- tions on travel have been extremely popular, Meanwhile, Canadian companies have exceeded $2 billion in foreign direct invest- ment, and bilateral trade came to $1.7 billion last year. In 2008, some 818,000 Canadians visited Cuba, accounting for 35% of all tourist arrivals. LARRY LUXNER According to Levy, the Canadian Embassy in Havana meets regularly with dissidents. “We hope to see a peaceful transition to a democratic, free-market system, and we use our many links to the island to promote our values,” he said. “Our two countries make it a policy to speak to each other frankly and respectfully, even on issues where the two sides disagree.” THE VIEW FROM BRUSSELS Véron has served as head of the political Canada’s Bruce Levy, Britain’s Dianna Melrose and EU’s Luc Véron speak at CSIS event July 23 on Cuba. and development section at the EU’s Wash- ington mission since August 2007. casm. “We have a different approach, and we and fuels hopes for more.” “We in the EU are in favor of constructive are farther away from Cuba than the United Melrose downplayed the EU’s involvement engagement, not a policy of coercion and States, so it’s not entirely fair to point to the in Cuba, even though Great Britain is a mem- sanctions,” said the career diplomat, a native lack of results in our policy.” ber of that club. “Let’s have a reality check,” she said. “The of France. U.K. STRATEGY ‘CONSTRUCTIVE BUT PRINCIPLED’ “Our position is based on the common posi- EU has little to show for its engagement over tion agreed by the member states in 1996. In Melrose, Britain’s first woman ambassador the past year. There’s very little the Cuban June 2008, we lifted the diplomatic measures in Havana, took up her new post one year ago. government wants from the EU that it doesn’t imposed against Cuba in 2003,” he said. “This She noted proudly that Her Majesty’s govern- already have: trade and investment, develop- has led to the relaunching of the EU-Cuba ment has maintained uninterrupted diplomat- ment assistance and continuing opposition to political dialogue, which we recently con- ic relations with Cuba since the country’s the U.S. embargo. So if there is any external firmed, and we welcome the resumption of independence in 1902. actor that has potential leverage over Cuba, it our cooperation agreement with Cuba.” “Our engagement with Cuba is construc- is the United States.” Following last year’s devastation by hurri- tive but principled,” she said. “Both Labor and Melrose noted that not a single British min- canes Gustav and Ike, the EU made 4 million Conservative governments have consistently ister has visited the island since 2005. euro in humanitarian aid available to Cuba. voted against the embargo in the UN General “That’s because the Cuban government is This year, it’s also implementing a 36-million Assembly. The United States and Britain both now making programs conditional on officials euro project involving food security. share the same goals, but our approach to the not meeting the opposition. That to us is not “There is an evolving situation with Cuba, a tactics are very different. acceptable,” she said. constructive spirit which prevailed in our “We have normal trade relations with Cuba, “On principle, we engage with dissidents. meetings, at which human rights were openly but it’s very small in comparison with Canada That is a standard part of my job. But all the discussed by both sides, along with other or our EU partners — or ironically with the signs are that the reform process will be driv- issues,” he said. United States, which is now Cuba’s fifth- en from within the government, not by a very largest trading partner.” weak and fragmented opposition.” DIPLOMAT DEFENDS EU’S RECORD ON CUBA The bulk of the ambassador’s speech was Melrose said that dissidents she speaks to Véron mentioned the Czech Republic’s on the island’s severe economic crisis, which consistently demand the same thing: progres- opposition to the Castro regime but explained seems to get worse with each passing day. sive, practical steps from Washington, more that the EU speaks for all 27 member states. “Cuba hasn’t faced anything this bad since people-to-people contact, and an end to all “I would be at pain to name an issue on the early 1990s,” said Melrose. “The trade travel restrictions for U.S. citizens. which there is no debate in the EU, and I deficit is spiraling out of control, imports are “Therefore, it makes compelling sense — don’t think Cuba policy is any different. There a staggering 80% of foreign trade, and that’s bilaterally and for the EU — to engage in is a diversity of views. I’ve expressed the com- not only because of the collapse of nickel frank but constructive dialogue with the Cu- mon position of our 27 members, and the prices, but also because of a fall in revenues ban government on an agenda that must in- Czech Republic is one of them.” Cuba is getting from tourists. This could cost clude human rights,” she concluded. “There The bureaucrat said Brussels is thrilled that the Cuban economy a billion dollars or more is no point in lecturing and talking past each Washington and Havana are talking again. this year.” other. It gets us precisely nowhere.” ❑ July-August 2009 ❖ CubaNews 11 FINANCE Eurobond rollover spells trouble for Cuban economy BY VITO ECHEVARRÍA unforeseen circumstances, the Cuban author- more headaches in Cuba. n June, around the same time the Castro ities temporarily had to utilize all cash at their “The business environment in Cuba could regime replaced the head of Cuba’s Cen- disposal to ease humanitarian suffering.” never be characterized as being particularly Itral Bank, Francisco Soberón, with Ernesto The hurricanes destroyed 30% of Cuba’s easy, but recent events will complicate mat- Medina (see box below), it also rolled over 200 domestic farm production, forcing the island ters further and heighten perceptions of country risk,” says Culverhouse. “Foreign in- million euro in bond issues that were due the to import 80% of its food requirements. “The international credit market conditions vestors will be concerned about payment month before, requesting another year to re- delays and problems with currency convert- pay, according to European financial sources. exacerbated these difficulties,” the source told CubaNews. “On top of this, nickel prices ibility and transfer.” Issued on the London Stock Exchange, the came down quite a bit from the levels in 2008” two-year, euro-denominated bonds of 150 mil- — even though Cuba has long maintained CASH CRUNCH WORRIES U.S. FOOD EXPORTERS lion and 50 million euro bore interest rates of cash reserves for emergencies. Meanwhile, our European trading source 9% and 8.5% respectively — and were held fears more turbulent times ahead for those mainly by Cuban entities with some participa- FOREIGN INVESTORS FACE RISING RISK who lend to Cuba; he mentioned Standard tion by foreign banks that have provided cred- Stuart Culverhouse, chief economist at the Bank of South Africa’s current loans to Hav- it to Cuba in the past. distressed debt trading house Exotix Ltd. in ana as an example. Cuba’s cash crunch is hurting the ability of London, says Cuba had its own reasons for “So far the restructured Standard Bank foreign companies to transfer funds overseas the bond issue. debt is performing, mostly due to the fact that from their Havana-based accounts, or to sim- “The bonds issued in 2007 followed a previ- it has a Deutsche Bank collateralization in ply withdraw large amounts of money. ous issue in 2006, so it can be seen as part of remittances, but when that runs out over the The Castro regime has also made signifi- a broader attempt to raise money in interna- next year, it could get into trouble — again,” cant reductions in nonessential imports and tional markets,” Culverhouse told CubaNews. he said. energy use, as another sign of problems with- “Other than a general financing need, I “These Eurobonds are linked to local in its economy. think another objective of the authorities has [Cuban] entities that were restructured in Q4 “The official reason for defaulting on the been to try to re-establish Cuba’s name and last year. I believe the total outstanding today payments in the end of 2008 was a combina- reputation in the capital markets, which has is around 75-100 million euro. The restructur- tion of events outside the control of the gov- been clouded by the long-running default on ing involved a maturity extension and after- ernment that hit Cuba during 2008, especially the old debt.” wards a 40% mark-to-mark loss.” the two powerful hurricanes and the impact Aside from the rollover of the Eurobonds The Cuban cash crisis may also preoccupy of the global credit crisis,” said a European — which raises questions about Cuba’s eco- American agricultural and food exporters, trading source who follows the Cuban econo- nomic stability — foreign entrepreneurs are who conduct business with Havana on a cash- my. “As a result of the severity of these concerned that this problem will bring them and-carry-only basis, threatening what has proven to be a growing overseas market. “The economic downturn in Cuba, I feel, will only exacerbate this issue,” said Terry Soberón quits as head of Central Bank Harris, vice-president of international market- n early June, the Castro government Banco Nacional de Cuba; there, he imple- ing for Riceland Foods. announced that Francisco Soberón mented a nationwide reform of the banking RICE GROWERS NOT OPTIMISTIC IValdes, chairman of the Central Bank of system, focusing on technology overhaul. Cuba, had resigned. He was immediately Upon his appointment as chairman of the Exporters like Riceland have already seen replaced by Ernesto Medina Villaveiran, Central Bank that same year, he became reduced sales to Cuba due to other factors. head of Banco Financiero Internacional, privy to many of the crucial financial deci- “Cuba has not purchased any U.S. rice this one of Cuba’s biggest banks. sions taken by the Cuban government crop year and purchased only 10,000 metric Soberón’s resignation came a few regarding foreign debt, foreign trade and tons of U.S. rice last year,” Harris lamented in months after the removal of a dozen minis- foreign investments. an email to CubaNews. “I think it’s mostly due ter and some key figures, including Carlos For many years, Soberón worked very to the credit terms they receive from Vietnam Lage, Fernando Remírez de Estenóz, Otto closely with Carlos Lage. Two years ago, versus having to pay the U.S. cash.” Rivero and Felipe Pérez Roque. he warned Cuba’s National Assembly about Other food exporters are optimistic that Soberón, 64, started in 1960 as a mes- the urgent need to adopt signficant Cuba will still pay for whatever it needs to senger boy at the newly established changes aimed at ensuring the life and con- feed its population. Ministry of Foreign Trade. As a soldier, he tinuity of Cuba’s socialist system. “I’m not worried,” says Dave Radlo of Radlo served the revolution fighting invading In an unusual move, the Cuban govern- Foods LLC, a Massachusetts-based exporter troops during the Bay of Pigs, and later on ment accepted Soberón’s resignation, which has supplied fresh eggs to Alimport in began studying foreign trade. praising his work at the Central Bank the past. “Cuba needs staples purchased from He was soon sent to Western Europe for which he fulfilled “with loyalty and honesty, U.S. industry, and the U.S. political situation a long period, gaining considerable experi- just like the majority of the ministers who is more favorable. I don’t see this situation ence in finance and international transport. were replaced last March.” destabilizing.” In the ‘70s and ‘80s, Soberón held key Soberón also gave up his positions as a Canadian agricultural competitors concur. positions in the ministries of foreign trade member of the Cuban Communist Party’s “Perhaps wheat and other foods take prior- and transport, playing an advisory role. Central Committee and as a parliament ity to other imported goods in tough times,” In 1989, Cuban state security tried to link deputy. He now plans to conduct research notes Rhyl Doyle, a senior marketing manag- him to the indictment of Diocles Torralbas, and write on international financial affairs, er for Latin America at the Canadian Wheat then minister of transport. The attempt “cooperating in any task that Fidel and Raúl Board in Winnipeg. “We have not seen any failed and Soberón was fully vindicated. may entrust him with.” reductions in the wheat program here.” In 1994, Soberón was named chairman of – DOMINGO AMUCHASTEGUI Despite such views, only time will tell how Havana spends its dwindling cash reserves. ❑ 12 CubaNews ❖ July-August 2009 HUMANITARIAN AID Florida volunteers defy U.S. law to help Cuban people BY TRACEY EATON left the island. He spent 12 years in the United “It’s the only 50-year-old prescription in the omething strange was going at the Jones States before returning to Cuba in 1992. world,” he said. “It’s stupidity that hurts both residence in Palm Coast, Fla. At least a There, Jones visited a cardiology center for the U.S. and Cuba. There’s no winner in this S dozen men and women were inside, children and was troubled by the lack of med- absurd game.” working intently. The kitchen appeared to be ical equipment and supplies. The Cuba caravans are a project of the their command center. Boxes, duffel bags and So he decided to try to help and in 1996 he Interreligious Foundation for Community Or- suitcases were strewn on the floor, nearly founded a nonprofit organization, the Carib- ganization in New York. Since 1989, IFCO vol- reaching the ceiling in a back bedroom. bean American Children Foundation. He des- unteers have delivered over 3,000 tons of aid So what was this? Some kind of smuggling cribes Washington’s Cuba policy as a disaster. to Cuba without the required U.S. licenses. operation? Drugs? Weapons? Nope, just humanitarian aid for Cuba: Used computers, school supplies, clothes, shoes and medical equipment. Yes, even some toys. And while that may sound innocent enough, helping Cuba is controversial to TRACEY EATON some people, akin to trading with the enemy. The United States banned most commerce with Cuba in 1961, not long after Fidel Castro took power. Secretary of State Hillary Clinton recently said the Obama administration won’t drop sanctions until there are “fundamental changes” in Cuba. Opposition to these policies drew many such volunteers to the Palm Coast home of Al- berto Jones. They came from St. Augustine, Daytona Beach and other Florida cities. Some were black and others white. Some spoke Spanish, others understood little more than “hola.” But they were united in their hope the U.S. will normalize ties with Cuba someday. Jones, 70, helped other volunteers load two trucks and one trailer that joined the Pastors for Peace caravan of buses and trucks which Volunteers in the kitchen of Alberto Jones' home in Palm Coast, Fla., pack humanitarian aid for Cuba. converged on southern Texas last month. Pastors for Peace has organized Cuba cara- “When you are not feeling well, you go to “Pastors for Peace rejects the current lic- vans for 20 years. This year, more than 130 the doctor. He gives you a prescription. If ensing system as both immoral and illegal,” caravan participants along 14 routes in 47 you’re not better, your doctor switches the Rev. Lucius Walker Jr., executive director and states and six Canadian provinces brought prescription until you say, ‘I’m feeling fine.’” founder of IFCO, said in a statement. more than 100 tons of humanitarian aid U.S. officials ought to take the same “The system is illegal under international across the U.S.-Mexican border, in defiance of approach toward their Cuba policies, he said. law,” he said, “because it uses medicine and the U.S. trade ban. But instead, they’ve stuck with the same food as weapons of war to force another From there, the aid was trucked to the strategy for decades. nation to change its government.” ❑ Mexican port of Tampico and loaded onto a Cuba-bound freighter. Federal law prohibits sending aid to the socialist country without a U.S. government Hurricane relief: Where to send assistance license. Pastors for Peace refuses to apply for a license as an act of civil disobedience. eaders hoping to help with recon- Culver City, CA 90232-2448. Tel: (310) 838- Jones said he doesn’t worry about going to struction efforts in the wake of last 3455. Fax: (310) 838-3477. URL: jail. “I know I’m breaking the law,” he said. R year’s killer storms, Hurricanes www.opusa.org. ■ “But I’m not afraid.” Gustav and Ike, can send donations to: MEDICC (Medical Education Coope- Some of those helping to pack the aid into ■ Catholic Relief Services, PO Box ration with Cuba), 1902 Clairmont Road, boxes were fearful and asked to remain 17090, Baltimore, MD 21297-03903. Tel: Suite #250, Decatur, GA 30033-3406. Tel: anonymous. “This is illegal,” one woman said. (410) 625-2220. Fax: (410) 234-2998. URL: (678) 904-8091. Fax: (678) 904-8096. URL: www.crs.org. www.medicc.org. Some people don’t want their name linked ■ to Pastors for Peace, Jones explained. ■ Global Links, 4809 Penn Ave. #2, Pitts- For those in the Miami area who prefer “Your business can be ruined, especially in burgh, PA 15224. Tel: (412) 361-3424. Fax: to give food in lieu of a check donation, South Florida, if it is labeled as one that sup- (412) 361-4950. URL: www.globallinks.org. take items to: Daughters of Charity, 500 ports the Cuban regime,” he said. ■ Jewish Solidarity, 100 Beacom Blvd., NW 63rd Ave., Miami, FL 33126-4535. Jones has helped collect aid for the cara- Miami, FL 33135-1534. Tel: (305) 642-1600. Alternatively, you can write checks to vans for more than a decade. He said foes of URL: www.jewishcuba.org/solidarity/. any of the groups listed above and send the socialist regime consider him “an agent of ■ Disarm Cuban Medical Project, 113 them to: Cuba Hurricane Relief, PO Box Castro.” But he doesn’t let that stop him. “I do University Place, 8th Floor, New York, NY 53106, Washington, DC 20009-9106. 10003-4577. URL: www.disarm.org. Donations are also accepted online at not allow people to label me,” he said. ❑ The Cuban-born veterinarian joined the ■ Operation USA, 3617 Hayden Ave., http://democracyinamericas.org/donate/. Mariel exodus in 1980, when 125,000 Cubans July-August 2009 ❖ CubaNews 13 HUMANITARIAN AID MEDICAL BRIEFS

CUBA BUILDS EYE SURGERY CLINIC IN GUYANA Recession hurts fundraising efforts A new Cuban-built ophthalmology center in BY VITO ECHEVARRÍA Renner told CubaNews. “Funding won’t be as Guyana will provide free surgery for people from across the Caribbean. he 2009 hurricane season is in full great as we hope. The Cuban-American com- munity was very generous [last year]. We ex- “We will be offering services to the Guyan- swing, but so is the U.S. economic ese diaspora and to foreign citizens also, free recession. And many nonprofit organi- pect them to be generous again, but we don’t T know how much, since they don’t have the of cost, as long as you come through the zations worry that with unemployment rising Ministry of Health,” said Dr. Bheri Ramsar- across the country (the jobless rate in Florida economic security they had before.” Renner, who recalled his organization send- ran, Guyana’s junior health minister, in an was 10.2% in May), it’ll be harder than ever to interview with Spanish news agency EFE. raise dollars for emergency assistance should ing thousands of dollars in roofing materials to damaged homes in Cuba last year, ob- He said the $700,000 ophthalmology center a major hurricane strike Cuba this year. could perform 10,000 surgeries annually, Last summer, two killer storms — Gustav served that a sizeable portion of relief aid that made its way to that island in 2008 came in the meaning the institution will have surplus cap- and Ike — devastated large swaths of Cuba, acity to treat patients from outside Guyana. destroying 63,000 homes and leaving another form of family cash remittances by individual Cuban-Americans. The official noted that the Cuban-Venezue- 444,000 with partial or complete roof collapse. lan Mission Miracle eye-care program has In response, U.S. organizations provided But this year, “that won’t happen, since peo- ple are being laid off.” helped Guyana “mop up the backlog” of containerloads of food, as well as cash assis- 40,000 pending procedures for cataracts, tance and building materials for badly needed Florida-based groups weren’t the only ones sending hurricane relief last year. Operation pteridium and night blindness. home repairs. Another 8,000 Guyanese have been already These ranged from long-established NGOs USA, based in Culver City, Calif., held a con- like Catholic Relief Services (CRS), Daugh- cert in Los Angeles last November starring screened for possible treatment at the new ters of Charity, Operation USA and Oxfam Jackson Browne, Joan Baez, Ben Harper, Ry center, which is staffed by surgeons and America to outfits set up on the spot, like Cooder and Bonnie Raitt to raise $150,000 for other health-care workers from Cuba, which Cuba Hurricane Relief Fund — created by hurricane victims in Cuba, Haiti and Texas. will also supply a range of medical supplies concerned Cuban-Americans and co-chaired Of that total, $85,000 went to Cuba. free of cost for the next two years. by three Miami clergymen: Rev. Bishop Richard Walden, president of Operation The ophthalmology center is one of several Felipe Estevez, Rev. Bishop Leo Frade and USA, remembered the bureaucratic night- projects under a Guyanese-Cuban health col- Rabbi Eliot Pearlson. mares his group encountered while trying to laboration program that also includes the con- get Bush administration approval for the struction of four diagnostic and treatment CASH-STRAPPED DONORS LESS GENEROUS IN ‘09 Cuba-bound aid. centers in the South American country. “The U.S. government was not helpful with However, with a recession exacerbated by a all these requirements,” said Walden. “For ALZHEIMER’S BECOMING AN ‘URGENT PRIORITY’ banking crisis that mushroomed just months other embargoed countries in previous years, after the 2008 hurricanes hit Cuba, nonprofits Some 100,000 people suffer from Alzhei- are clearly worried. we were allowed general licenses to do what mer’s disease in Cuba, with the figure expect- “I imagine that people would be more re- was needed wherever we thought we’d be ed to double by 2020, according to Cuba’s served in their generosity [this hurricane sea- most useful. For Cuba, Treasury, Commerce state-run newspaper Juventud Rebelde.. son],” said Frade, who phoned CubaNews re- and State wanted to know full details. Over the next 15 years, Cuba’s over-80 pop- cently to express his concerns. “Last year, we “They refused a license for water purifica- ulation “is going to increase in an accelerated raised close to half a million dollars.” tion tablets for one hospital in Pinar del Río way and will reach nearly half a million peo- Those funds were disbursed to CRS, Car- because an alternative government resource ple, of whom an estimated 40% will have this itas Cuba and other entities of the Catholic — the CIA, most likely — indicated the hos- disease,” said Juan de Jesús Llibre, president Church operating in Cuba. Frade said that pital may be treating non-Cuban patients who of the Cuban Alzheimer’s Association. similar levels of aid to deal with any upcoming pay in hard currency. If a cure isn’t found for Alzheimer’s in the disaster in Cuba will depend heavily on U.S. “For the other four hospitals, we needed next few years, up to 200,000 Cubans could media coverage, as well as on the magnitude twin licenses because the Ireland-based com- have the neurological disorder by 2020. of the hurricanes themselves. pany selling us the tablets used 40% Alzheimer’s has become “a growing health “If it’s not on CNN, it doesn’t exist,” he said. American-supplied content, so Commerce problem” and “an urgent research priority” Lynn Renner is regional representative for licensed 40% of each pill and OFAC licensed due to the aging of Cuba’s population, Juven- the Caribbean at CRS in Baltimore. the other 60%, plus shipping expenses.” tud Rebelde said. Some 17% of Cuba’s 11.24 million people are now over the age of 60. “I think we’re going to have problems,” CUT BUREAUCRACY, SAY ACTIVISTS Even with the Obama administration in BIRTHRATE CLIMBS BY 8.2% SO FAR THIS YEAR García lands Obama energy post office, Walden says the White House hasn’t In somewhat related news, Cuba’s birth- Joe García, longtime Democratic Party done enough to remove U.S. red tape that rate rose by 8.2% in the first half of 2009 com- activist in South Florida and former exec- may hurt relief efforts this hurricane season. pared to the year-ago period, halting a decline utive director of the Miami-based Cuban “There are [Bush] holdouts at the State in the island’s population. American National Foundation, has been Department’s Cuba desk who have not been Cuba’s Center for Population and Develop- named to head the Department of Ener- removed by Hillary Clinton,” he warned. ment Studies said 4,200 more babies were gy’s Office of Minority Economic Impact. “They are intent on squeezing the last drop of born in that period than in the 1st half of 2009. García, 45, was born in Florida to Cu- blood from the Cuban people before the poli- Data from the National Statistics Office, or ban parents and has been involved in exile cy changes for the better.” ONE, show that in 2008 the number of births politics most of his life. He was profiled in Luly Duke, who heads the New York-based on the island grew by more than 10,000 com- the October 2003 issue of CubaNews. charity Fundación Amistad, seems more opti- pared to 2007, but population keeps dropping. In 2008, he made a run for Congress re- mistic about the upcoming hurricane season. Aging and reduced fertility are the main presenting Florida’s 25th District, but lost “I was recently in Havana and spoke with factors driving this trend, say demographers, narrowly to the Republican incumbent, the head of the UN Development Program,” who project Cuba’s population to shrink by Rep. Mario Díaz-Balart. she said. “They will be ready to support relief 100,000 in the next 16 years and fall below 11 efforts in case there’s a disaster this year.” ❑ million by 2032. 14 CubaNews ❖ July-August 2009 INFRASTRUCTURE A look at Camagüey’s Ignacio Agramonte Airport (CMW) BY OUR HAVANA CORRESPONDENT This is the 6th in an ongoing series of articles for planes flying between the U.S. East Coast ocated just six miles northeast of the city on Cuban airports. Previous stories published and South America. After the revolution, of Camagüey in central Cuba, Ignacio this year have looked at Santiago de Cuba, Cayo CMW lost that role to various airports in LAgramonte International Airport (CMW) Coco, Holguín and Cayo Largo del Sur airports. Puerto Rico and the Dominican Republic. is one of the largest and pioneering airports With the growth of tourism in the 1990s as on the island. fame on June 10, 1933, when the first nonstop one of the main engines of the economy, It currently serves as a key link with the transatlantic flight from Spain to the Americas Camagüey recovered some importance as a Cuban exile community in South Florida, and landed here. point of entry to Cuba. CMW has an asphalt might one day become a busy transit airport The Cuatro Vientos (Four Winds) aircraft runway 9,842 feet long by 148 feet wide, capa- for long flights between the U.S. and Canadi- commanded by two Spaniards, Capt. Mariano ble of accommodating large transcontinental an eastern seaboard and South America — Barberón and Lt. Joaquín Collar, flew a 40- passenger and military aircraft. just as it was before the 1959 revolution. hour, nonstop 4,500-mile route from Seville to It has two separate terminals for domestic CMW is conveniently positioned in the cen- Camagüey — setting a record for the longest and international travelers. There are 10 re- ter of Cuba, close to the path of the Maya and transoceaniunc flight at that time. mote standing positions for large jets, two of Nuevas international corridors — major More than a quarter of a century later, them in front of the international terminal. routes for air traffic between North and South Ignacio Agramonte International Airport was Traffic is managed with modern aerial nav- America. again in the spotlight as the take-off point of igation equipment, including new radars, pre- The airport is located inland, on a high flat the plane carrying the late Comandante cision lighting approach and maneuvering plain some 400 feet high. It’s linked to the city Camilo Cienfuegos. The young Marxist’s systems, beacons and an instrumental land- of Camagüey by the two-lane Nuevitas plane mysteriously disappeared without a ing system. It can operate any aircraft 24 Highway. That puts it one and a half hours by trace on Oct. 27, 1959 — a tragedy that has hours a day. road from Santa Lucía, which has 800 rooms haunted the Cuban revolution ever since. As nearly all Cuban aerodromes, military in three beach hotels. Used during World War II as a support air- infrastructure at Camagüey International is The roots of Camagüey airport go back to drome for U.S. forces in the Caribbean, Cama- apparent — with jet-fighter shelters, anti-air- the early 20th century, when an airfield was güey rapidly became an international airport craft defenses and a military apron all located built to serve the incipient domestic traffic. — second only to Havana — in the postwar on the southern side of the runway. CMW had its first moment of international years, serving as a transit and refueling stop See Camagüey, page 15 July-August 2009 ❖ CubaNews 15 AVIATION LAX-Cuba flights resume; Key West seeks gateway status onstop flights between Los Angeles International Airport and Horton says Key West International is already is equipped with a Havana have resumed after a four-year hiatus. The weekly federal inspection station with U.S. Customs and Border Protection Nflights on a chartered Boeing 737 jet operated by Continental personnel in place, so no additional money would be necessary to Airlines began June 30 after President Obama eased restrictions on process Cuban-American passengers arriving from Cuba. visits to the Caribbean nation. Key West, only 90 miles north of Havana, is the southernmost city Bookings are being handled by Cuba Travel Services of Long on the U.S. mainland and the closest of any U.S. airport to Cuba. Beach. Round-trip fares start at $689, said CTS. In March, officials at Tampa International Airport requested a simi- A visa is required, and travel to Cuba is mostly restricted to Cuban- lar port-of-entry designation that hasn’t yet been granted. Americans with family in Cuba. Others who can travel there include “Currently, several charter companies operate flights from Miami to journalists, government officials, educators, sports teams and reli- Cuba, but none from the Tampa Bay area, which has one of the high- gious groups. est concentrations of Cuban-Americans in the United States,” said Rep. CTS said it would rely on business from the 100,000 Cuban-Ameri- cans living in California — 85,000 in the Los Angeles and Orange Kathy Castor, a Democrat who represents Florida’s 11th District, in an County area alone. Apr. 14 letter to Treasury Secretary Timothy Geithner. Meanwhile, the top airport official in Monroe County, Fla., has Likewise, CTS has asked the Obama administration for permission asked the U.S. Treasury Department to be a designated port of entry to add San Juan, Puerto Rico, as a gateway for direct service to Cuba. for Cuba. In his petition, Peter Horton, the county’s airport director, Currently, only three U.S. airports have such a designation: Miami, cited eased travel restrictions between the United States and Cuba. Los Angeles and New York JFK (see CubaNews, May 2008, page 7).❑

Camagüey — FROM PAGE 14 The airport serves a domestic route between Havana (population 2.1 million) and the city of Camagüey (population 302,000). The develop- ment of a secondary tourism hub in the early 1990s at Santa Lucía beach — 67 miles to the northeast — boosted airport traffic, prompt- ing the opening of a new international terminal. That terminal has the nominal capacity to process 600 passengers per hour at its peak (another 75 passengers per hour can be served at the domestic terminal), in eight check-in desks and two gates. However, these capacities far exceed current traffic at the airport. In 2000, only 90,024 passen- gers used CMW, falling to 87,067 in 2001 and 78,602 in 2002 (the last year for which statistics are available). Considering the destruc- tion left by Hurricane Ike at Camagüey gets new Russian radar Santa Lucia beach in 2008, A modern Russian radar system known as “Aurora” was there’s no reason to expect a deployed in late April at Camagüey International Airport (CMW) sharp departure from these to improve the control and safety operations in Cuban airspace. figures. Like the rest of The new Automatic Dependent Surveillance (ADS) device — Cuba, foreign travelers at which cost $1.7 million — routinely monitors all air traffic over Camagüey consist mainly of the island, giving the position, direction and speed of overhead Canadians and Europeans. planes to Cuban air-traffic controllers. CMW gets four flights per When passing over Cuba, jets flying between North and South week (Thursday, Friday and America are funneled through the air corridors of Girón, in Saturday) from Miami via Matanzas province; Maya, in Ciego de Avila; and Nuevas, along American Eagle, transport- the eastern provinces of Granma, Las Tunas and Camagüey. ing 500 to 600 Cuban exiles Aurora allows CMW to monitor some 400 daily operations, weekly to visit their relatives in the central provinces of including passing aircraft plus landings and take-offs from local Sancti Spíritus, Ciego de airports, according to Argimiro Ojeda Vives, vice-president of the Avila, Camagüey and Las Instituto de Aeronáutica Civil de Cuba (IACC). Tunas. These provinces are The radar covers a radius of 261 miles, enough to keep an eye home to 1.7 million people. on most of the island. In addition, four Canadian airlines — Air Transat, Skyservice, West According to Irán A. Hórmigo, senior specialist at state-run Jet and Sunwing — provide links to Montreal, Ottawa, Toronto, Cuban Airport and Airport Services Enterprise (ECASA in Quebec City and Winnipeg. Spanish) told local media that ADS receives a plane’s information Because the domestic terminal is separated from the international directly transmitted from it to a satellite, helping the control towe- building at CMW, Cubans and foreign tourists don't share the same fget more reliable data to handle the aircraft. He said ADS is the space. The international terminal is a steel-and-glass structure first of its kind in use anywhere in Cuba, and one of the most designed and built by Ottawa-based Intelcan Technosystems, com- advanced devices in Latin America. plete with restaurants, cafeterias, duty-free shops, car rental and travel Hórmigo also announced that other radars like this one will be agencies. By contrast, the domestic terminal is said to be sorely lack- installed in Pinar del Rio, Villa Clara, Holguín and Havana. ing in attention and upkeep. ❑ 16 CubaNews ❖ July-August 2009 INTERNATIONAL RELATIONS Cuban doctors in demand from Barbados to Cape Verde BY LARRY LUXNER In Barbados, that feeling of solidarity is “Cuba has never forgotten what Fidel con- reddy Elizalde is a long way from home. apparent along the island’s eastern shore just sidered the most bold diplomatic initiative by Originally from Matanzas, the internal north of Bridgetown. There, a roadside pyra- four relatively small states — especially at a time when the OAS was under tremendous F medicine specialist has spent the last 14 mid-shaped monument pays homage to the 73 passengers who died with a Cubana jet was pressure by the United States,” he said. years of his life in Cape Verde — a Portu- “Every three years, there is a Caricom- blown out of the sky in 1976 by a bomb. guese-speaking island archipelago 300 miles Cuba Day, to keep alive the concept of soli- off the coast of West Africa. “There’s a deep bond between the Cuban darity between this region and Cuba.” “When I arrived in 1995, there weren’t even people and the rest of the Caribbean,” says Singh added: “This is a moral stand, which 70 doctors,” says Elizalde, 56, who’s stationed well-known Guyanese journalist and author successive governments in Washington have misunderstood. This a culture of resistance against the United States for maintaining its punishing embargo.” Relations between Barbados and Cuba took a jump earlier this year, when Prime Minister David Thompson made an official visit to Havana, accompanied by Maxine McClean, the minister of foreign affairs, and other gov- ernment and private-sector officials. OPERATION MIRACLE POPULAR IN BARBADOS None of this really concerns Miqueli, who would rather talk medicine than politics. Her mission in Barbados is part of Opera- tion Miracle — an innovative Cuban medical program that has restored eyesight to more than 1.5 million people from 35 countries around the world. So far this year, she told CubaNews, 164 cit- izens of Barbados have been flown to Cuba for eye surgeries, 136 for cataracts and the rest for pterygium. “In a normal day, I receive 20 patients. Here, we make appointments for a specific Ophthalmologist Maritza Miqueli examines a patient at Sir Winston Scott Clinic in Bridgetown, Barbados. day,” she explained. “In St. Vincent, there were two of us seeing 200 patients in one day.” at the Hospital Dr. Agostinho Neto in Praia, Ricky Singh, who’s lived in Barbados for Miqueli, who’s been an ophthalmologist for the capital city. “Today there are 320 Cuban many years. “And there’s a kind of anger here 31 years, is the only Cuban working on this physicians working in the country, and 52% of that the terrorists who bombed that plane did program in Barbados; the nurse and two oth- Cape Verde’s doctors have studied in Cuba.” it in our airspace.” ers on her team are local hires. His colleague, Havana-born oncologist In December 1972, Barbados and three “First, I see these patients, and I decide if Sofia Alsina, opened the hospital’s cancer unit other English-speaking Caribbean nations — their cataracts can be operated on, or if in August 2007. Guyana, Jamaica and Trinidad & Tobago — they’re blind for another reason. Throughout “Diseases of the First World are being seen jointly established diplomatic relations with the Caribbean, there’s a high percentage of with increasing frequency in Cape Verde,” the Castro regime in open defiance of the glaucoma,” she explained. she told CubaNews. “As the country develops, Nixon administration. “If I determine that we can operate, I put we see fewer cases of infectious diseases and more chronic diseases like hypertension, can- cer and diabetes.” Closer to home, ophthalmologist Maritza Miqueli spends her days looking into the eyes of patients at the Sir Winston Scott Clinic in Bridgetown, Barbados. Before coming here last October, she worked in two other Carib- bean countries — St. Vincent and Jamaica. “Mainly these are patients who can’t afford surgery,” she explained between eye exams. “It’s not like what you’d see in Jamaica. Here, the standard of living is much higher, but cataract surgery costs $3,000 or $4,000 here, and my patients can’t afford it.” Barbados and Cape Verde — on opposite sides of the Atlantic Ocean — are both island nations that have forged exceptionally strong diplomatic relations with Cuba, despite also enjoying warm ties with the United States. Memorial to the 73 passengers killed in the 1976 terrorist bombing of a Cubana aircraft over Barbados. July-August 2009 ❖ CubaNews 17 them on a waiting list of 40 or 50 people. Then not true,” he said. “Our leaders got assistance One Cuban doctor on the island of Sal said they all travel together with their families,” from Russia, Cuba, Algeria and China, but he earns 2,000 euro a month as an anasthesio- said Miqueli. “It’s a specific charter flight they they also got help from Sweden, Holland, logist — hundreds of times what he’d be mak- send from Cuba to pick up these pople, and France and Portugal. We were a one-party ing back home in Santa Clara. His wife earns they normally stay three weeks in Cuba. They system but we had the freedom to travel.” even more as a pediatrician. don’t pay anything.” Pedro Evelio Dorta González, Cuba’s On the other hand, the Castro regime confi- Patricia Gittens, 61, had cataract surgery at ambassador in Cape Verde, says there are scated his house and most of his possessions Havana’s Pando Ferrer Eye Hospital. She four Cuban diplomats in Praia, the capital, and as soon as it was clear he wasn’t returning. came back a dedicated fan of Cuba. 39 doctors sent to Cape Verde by the Cuban The doctor, who asked that his name not be “They do their best to make you feel com- government. The other 200 or so are working published, told CubaNews he has no regrets. fortable. The people are nice, and the rooms independently, and gen- are very clean,” she told CubaNews, adding erally married to Cape that she never considered having the opera- Verdean nationals. tion done at a local hospital in Barbados. “Each year, the Cuban “Some people here did the operation and presence is increasing. they still had to go to Cuba to get the eye This year, we’ll have done over again,” said Gittens, who traveled almost 300 Cubans here,” to Cuba with nearly 50 other Barbadians in said Dorta, a 68-year-old career diplomat who’s April of this year. PHOTOS BY LARRY LUXNER Another patient, Basil Ward, came to also served as ambassa- Havana to have his cataract removed for free. dor to Mozambique and “I could have had the operation in Lesotho. “There’s a great Barbados, but I would have had to wait a year. chemistry between Cuba There’s a huge waiting list.” and Cape Verde. They’re very noble people.” CAPE VERDE GRATEFUL FOR CUBA’S HELP We asked Dorta if Cape Verde is really African. In Cape Verde, Cuban doctors and nurses “Yes, but with a big are present in all nine of the African country’s dose of Europe thrown in, populated islands — from volcanic Fogo and because of the Portu- highly urbanized São Vicente to the beach guese who came here and desert island of Boa Vista. with African slaves,” he “We’ve had good relations with Cuba since said. “It’s a mix — a lot our independence in 1975,” said José Luís like Cuba.” Rocha, director-general for external policy at Dorta, who’s originally Cape Verde’s Ministry of Foreign Affairs. from Villa Clara, has on Rocha has been to Cuba twice, including a his office wall a faded 1983 visit that featured a talk with Fidel Castro black-and-white photo of and a trip to Isla de la Juventud, where 1,000 Fidel posing with Amilcar Cape Verdeans have studied over the years. Cabral, father of Cape “During the revolutionary period in Portu- Verdean independence. gal, which put an end to the Salazar regime, a “Thanks to the help lot of people dreamed of being revolutionar- Cuba has given, Cape ies,” said Rocha. Verde has gone from be- Yet that didn’t stop Cape Verde from adopt- ing a sub-developed coun- ing a pragmatic foreign policy, he pointed out. try to a middle-developed “People said that from the beginning, Cape country,” the ambassador Verde was a Marxist-Leninist country. “That’s said proudly. Dr. Sofia Alsina checks on a small boy at Hospital Agustinho Neto in Praia; In fact, Cape Verde Pedro Evelio Dorta González, Cuba’s ambassador to Cape Verde (bottom). seems to be one of the AP replaces Havana bureau chief few places on Earth where American and Nor does Elizalde, he internal medicine Paul Haven has been appointed Havana Cuban diplomats actually get along. specialist, who two years after arriving in bureau chief of the Associated Press, “I must say that here, there’s an atmos- Cape Verde married a local woman. replacing Anita Snow, who reopened AP’s phere of cooperation,” Dorta told CubaNews. “I have two children here, and two in Cuba. Havana office in 1999 after it was shut in “The U.S. Embassy respects us, and we re- And I go back to Cuba all the time,” he said. the early years of the revolution. spect them. The United States has given very Elizalde, who’s also worked in Portuguese- Haven, 38, is a New York native who’s important assistance to Cape Verde through speaking Angola, no longer answers to the spent the last three years leading AP’s the Millennium Challenge Account. We have Cuban government. At the crowded hospital news operations in Spain and Portugal. no problems whatsoever with them.” in Praia, he works alongside doctors who do. Snow is now on professional leave for Although the climate is tropical and it’s rel- In their free time, all of them take turns at the one year as a Nieman Fellow at Harvard. atively easy for Cubans to learn Portuguese, office computer, checking the latest headlines “After Anita Snow’s long, pioneering most of the doctors present in Cape Verde are on the website of Miami’s El Nuevo Herald. leadership in Cuba, I am delighted that clearly there for the money. Elizalde said that despite the hardships, Paul Haven will be there to build on her José Gabriel Levy, an environmental spe- Cuban doctors will keep flocking to this Afri- successes,” AP’s senior managing editor, cialist at the UN office in Praia, said “any can archipelago, because the demand is there. John Daniszewski, said July 10. Cuban who is able to get a job here feels very “Medicine in Cape Verde has advanced, but “Paul is a wonderful writer and an lucky,” because it’s a chance to leave Cuba. there’s still a long way to go,” he says. “There insightful reporter,” he said, “and will up- “Here they have opportunities,” he said. “A just aren’t enough specialists.” ❑ hold AP’s best traditions in a fascinating lot of them come as doctors or teachers and country — at a time when both Cuba and marry Cape Verdeans and stay. They get This feature story is based on recent reporting the United States have new presidents.” salaries here they’d never get in Cuba. I went trips taken by Larry Luxner, editor and publisher to Cuba in 1997, and I felt sorry for them.” of CubaNews, to both Barbados and Cape Verde. 18 CubaNews ❖ July-August 2009 There are some exceptions. Multiple jobs for the delay in 2007-08 in the implementation BUSINESS BRIEFS are out of the question for “cadres and func- of the agreement between the Russian and tionaries, health technicians and profession- Cuban governments on the provision to the MOSCOW SIGNS GULF OIL DRILLING ACCORD als, researchers, professors, teachers and Cuban government of a state credit to finance Moscow will grant a $150 million loan for auditors, except in the case of teaching or sci- deliveries of Russian goods, works and servic- two years to Cuba to finance deliveries of entific research posts or others that are es,” the Audit Chamber said. Russian construction and agricultural machin- approved” by their current employers. ery and equipment, the RIA-Novosti news High-school and college students old enough PETROLEUM NOW CUBA’S SECOND EXPORT agency reported July 29. to work may hold more than one job but only Oil exports are now Cuba’s No. 2 export — The two countries also signed a preliminary part-time and for a specific length of time. overtaking pharmaceuticals — producing $880 agreement on Russian oil company The City of Havana is empowered to hire million in 2008 revenues, according to a For- Zarubezhneft’s operations in Cuba’s exclusive workers who live in other provinces “to cover eign Trade Ministry report seen by Reuters. economic zone in the Gulf of Mexico. its work needs on a temporary or permanent A table in the report said nickel accounted “We consider that an outcome of this coop- basis,” the decree says, citing the need “to for 39% of exports, oil for 22% and pharmaceu- eration will be new opportunities both for stimulate the productive forces, make possi- ticals 9%, followed by sugar and tobacco prod- Cuba as well as Zarubezhneft,” said Russian ble an increase in income” and enable “work ucts each at 6% and other products at 18% Deputy Prime Minister Igor Sechin, who met to be the principal source of satisfaction for The government reported exports, exclud- with Cuban President Raúl Castro and other [Cubans’] material and spiritual needs.” ing tourism and other services, were $4 bil- officials during his visit to Havana. The average monthly salary in Cuba is 415 lion in 2008, but has yet to publish any details. Trade ties between Russia and Cuba stalled pesos, about $19. While the Cuban state subsi- Cuba consumes a minimum of 150,000 bar- after the collapse of the Soviet Union, when dizes many food products and provides educa- rels per day in petroleum products, of which Russia faced financial difficulties and halted tion and health care at no cost, that amount is up to 92,000 barrels a day comes from region- huge Soviet-era subsidies. In recent years, not sufficient for most wage-earners. al energy giant Venezuela. The rest is pumped however, Russia has moved to revitalize ties from the northwest coast along with natural with Cuba and other Latin American states. CUBA DELAYS PAYMENT TO RUSSIAN CREDITORS gas for power generation. President Dmitry Medvedev visited Havana In somewhat related news, the Russian Cuba has exported small amounts of the in November, and a Russian anti-submarine Audit Chamber said Cuba for the third time heavy crude it produces, but this would not destroyer and two auxiliary vessels docked in has delayed repayments of Russian state cred- account for the big jump in 2008 exports, local Cuba in December. it provided in September 2006. Yet Moscow is and foreign analysts told Reuters. not imposing fines for overdue debts. The analysts said a likely explanation would CUBANS CAN NOW MOONLIGHT, SAYS DECREE “Since the signing of the agreement [on be exports from a joint venture refinery with Citizens of Cuba may now hold more than granting a state credit against Russian goods Venezuela opened in December 2007, which one job, says Decree No. 268, approved June and services] the Cuban side has three times processed 65,000 bpd in 2008 for local con- 26 by the Council of State. violated the payment terms. However, the sumption and export to area countries. The Council calls the concept “pluriemploy- credit provision has not been suspended and State-run Petroleos de Venezuela SA ment,” explaining that “the workers, after ful- no fines were imposed as for June 1, 2009,” (PDVSA) reported that it delivered 115,000 filling the duties of the post they hold, may the press service of the Audit Chamber said bpd of crude and refined products to Cuba in enter into more than one work contract and in a July 3 statement. 2008, of which 93,300 bpd were sold to Cuban receive the corresponding salary.” Various violations have been exposed in state-run oil monopoly Cubapetroleo, and The announcement does not say how many selection of suppliers, as contracts have been 27,500 bpd was PDVSA’s equity share deliv- jobs a worker may hold. signed with companies that had no sufficient ered to the refinery in Cienfuegos. Pluriemployment “is linked to the rational production and sales capabilities. “Based on published data, the revenues use of human resources and labor contracts” Besides, authorized Russian bodies did not seem to represent Cubapetroleo’s equity and is intended “to attenuate the effects of an control the implementation of the contracts share of the Cienfuegos Cupet-PDVSA joint aging population, stimulate work in society” and insufficiently cooperated with Cuban venture refinery exports,” said Jorge Piñón, and provide “the chance that the workers may counterparts, it said. former president of Amoco Oil Latinoamerica increase their income.” “The exposed violations became the reason and researcher at the University of Miami’s French drugmaker opens Havana office to pursue Cuba JVs n June, French pharmaceutical giant Sanofi-Aventis said it would going to open. Our presence there is strategic,” he said. establish an office in Havana — a vote of confidence for Cuba’s Pedro Arranz, a company spokesman, wouldn’t give CubaNews fur- Ibiotech industry by the largest drugmaker in Europe. ther details on Sanofi’s new venture in Havana — even though Cuban Antoine Ortoli, Sanofi’s inter-continental vice-president, said his state-run magazine Opciones confirmed his attendance at the opening company hopes to use its Cuban presence to boost sales of its phar- of the Sanofi office in Havana’s Miramar district. maceutical products to the Cuban medical establishment. Since 2001, Ortoli explicitly told Opciones his company would like to pursue Sanofi-Aventis has been selling the Cubans — through its Sanofi biotech projects with renowned Cuban biotech center CIGB. Pasteur unit — vaccines and medicines to treat epilepsy, diabetes, One reason for Sanofi’s reluctance to talk: in May, the company cancer and cardiovascular diseases, among other ailments. won a $190 million order from the U.S. government to make a swine Ortoli told Spanish news agency EFE he intends to pursue joint flu vaccine. Sanofi is awaiting a green light from the Food and Drug ventures with Cuban biotech entities to conduct clinical trials and manufacture vaccines and drugs for the Latin American market. Administration to begin commercial production of the vaccine. “It’s more than a commercial presence [in Cuba]. It’s to embrace Perhaps Sanofi-Aventis is afraid that raising its Cuba profile in industrial and scientific-technical cooperation based above all pn the Washington circles could raise the ire of conservatives in Congress, talent and proven capability of the Cuban doctors who, in my experi- particularly Cuban-American lawmakers, who would presumably take ence, are the best in the world,” he said. a dim view of Sanofi's Cuba activities. Sanofi Pasteur currently has an Ortoli hinted to a French media source he thinks the embargo will influenza vaccine production facility in Swiftwater, Pa. be lifted before President Obama leaves office. “The Cuban market is – VITO ECHEVARRÍA July-August 2009 ❖ CubaNews 19 Center for Hemispheric Policy. many businesses their funds were simply not unheard of for depositors to have to go to As part of bilateral integration efforts, available for the moment. ministries to unblock accounts. Venezuela is revitalizing Cuba’s downstream While renewed access, even if only partial, The new payment scheme appears to be operations and plans to use the island as a to accounts is welcome, business sources said part of a gradual decentralization of control bridge to supply the Caribbean with crude it is being offered with the proviso that they over foreign exchange exercised by the and derivatives with preferential financing. continue to do business with the island. Central Bank of Cuba, which previously had They said the government and state-run to approve any purchase over $10,000 by the DECREE UNFREEZES FOREIGN FUNDS firms were reaching out because of mounting state-run companies that account for more Cuba’s Central Bank has authorized the re- supply problems in Cuba, as traders and com- than 90% of Cuba’s economic activity. lease of some funds in foreign business ac- panies balked at doing new business unless In March, the regime eliminated the Cen- counts blocked by the government for their accounts were unfrozen. tral Bank’s control and began a process of months, causing a growing reluctance to trade “The ministries have set their priorities and assigning foreign exchange budgets to gov- with Cuba, Reuters reported July 22. are contacting suppliers. They are saying they ernment ministries to spend as they see fit. It The decree allows the transfer or payment can unblock some of the suppliers’ funds in also authorized them to seek fresh credit. of foreign exchange from frozen accounts exchange for new business which they are OIL DRILLING PLANS POSTPONED — AGAIN with the approval of a government ministry, guaranteeing will be paid without further business sources familiar with the resolution problems,” a Spanish businessman said, ask- Cuba and a consortium of foreign oil compa- told Reuters, adding that 600 accounts — with ing not to be identified. nies have once again postponed plans to drill frozen funds estimated at $600 million to $1 “That’s better than nothing, but if you’re for oil in the island’s still-untapped fields in billion — would potentially be involved. not on the priority list,you’re out of luck for the Gulf of Mexico, diplomatic and industry Faced with a drying-up of liquidity as the now, and if you don’t strike a new deal, forget sources told the Reuters news agency. global financial crisis increasingly hit home, your money for the time being,” he said. Cuba had announced the consortium, led by Cuba's state banks in January began telling Another foreign businessman said it was Spain’s Repsol-YPF, would drill in June or July, but now it is uncertain when work will begin in the waters that Cuban oil experts say may contain 20 billion barrels of oil. Cohiba cigar trademark war heats up again “The project has been postponed until a fur- ther date for more study,” said a foreign oil s President Barack Obama moves to Gerry Roerty, the unit’s general counsel. industry source with direct knowledge of the ease restrictions on trade with Cuba, “The market is going to be turned upside plans. “It is premature to say when drilling Acigar lovers are savoring the prospect down,” Roerty said in an interview. After wait- might begin, later this year or next.” of legally lighting up a smoke that has long ing for almost five decades, Americans “will A European diplomat told Reuters he had required a black- market connection and a buy a Donald Duck cigar if it’s a Cuban.” first-hand knowledge that drilling was post- willingness to flout the law. Bloomberg James Suckling, who has written articles poned at least until the end of 2009, if not into reported in mid-June. on Cuba for Cigar Aficionado, estimates that 2010. Neither source wished to be identified. “There’s a mystique about a Cuban,” said Americans consume about 20 million Cuban John Anderson, owner of W. Curtis Draper cigars a year, enjoying them while traveling BRAZIL TO FUND PORT RECONSTUCTION Tobacconist Inc., a cigar shop in Washing- to Mexico or the Caribbean or stowing them in luggage on the way home. Brazil said July 9 it would give Cuba up to ton. “Cuban $300 million in credits to start rebuilding the tobacco has The forbid- port of Mariel, better known as the site of a become the den fruit car- 1980 Cuban exodus to the United States. forbidden ries a premi- fruit.” um: A box of 25 Reuters reported that Brazilian Industry The possi- Cohiba Robustos and Trade Minister Miguel Jorge said $110 ble end to the costs $304 on the million had been approved by his government 47-year U.S. Hong Kong-based and the rest would likely be, as Brazil embargo on Cuba trade has intensified a Cigars of Habanos Web site, where shoppers strengthens its ties with communist-led Cuba. legal and lobbying fight between cigar manu- are offered the option of shipping to the U.S. He that construction, to be led by a facturers Swedish Match AB of Stockholm without regard to the government’s ban, Brazilian company, would begin “very soon” and Imperial Tobacco Group Plc of Bristol, whereas a Dominican-made version sold with the building of infrastructure including England. online by Holt’s Cigar Co. of Philadelphia highways and a railroad for the port about 30 Each wants exclusive rights to sell Cuban- sells for $175. miles (50 km) west of Havana. made brands in the U.S., the world’s largest Swedish Match and Imperial Tobacco both Brazilian officials said Cuba expects the market for premium cigars. sell Dominican-made cigars in the U.S. and entire port project, which will be built in sev- Swedish Match sells cigars in the U.S. together account for almost half of the sales eral phases, to cost up to $2 billion. The first made in Honduras and the Dominican Re- in a U.S. market for premium cigars that phase is projected to take four or five years to public under Cuban brand names. It bought Swedish Match puts at $850 million annually. complete and cost $600 million, they said. the brands from families that fled Cuba after Cuba lost the U.S. rights to Cohibas when Mariel was the scene of the massive boatlift Fidel Castro seized their cigar companies in General Cigar registered the brand in the from April to October 1980 when a flotilla of the 1960s. Imperial distributes Cuban- made 1970s. General Cigar has so far fended off a vessels from Florida picked up 125,000 cigars under many of the same names to the 1997 lawsuit brought by Cubatabaco to Cubans after the Cuban government said any- rest of the world through an agreement with reclaim that name. A new ruling in the case one wanting to leave the island could do so. the Cuban state monopoly, Cubatabaco. may come within months. Now Cuba wants Mariel to serve as logis- “Before serious commerce resumes, this General Cigar has spent more than $5 mil- tics center for its still-nascent offshore oil will have to be resolved,” Robert Muse, a lion lobbying Congress since 2001. It got industry and to be equipped to handle ship- Washington lawyer who advises clients on lawmakers to strike a provision in a 2001 ments from around the world, including the Cuba-related issues, told Bloomberg. measure that it says would have allowed United States, 90 miles (145 km) to the north. Opening the U.S. market to Cuban cigars Cuba to barter cigars for food or medicine. Jorge, who was on the second day of a two- may jeopardize jobs of 147 workers at the Imperial began lobbying this year for the day visit to Cuba, said Brazilian state oil giant U.S. headquarters of Swedish Match’s Gene- first time since at least 2000, spending an ini- Petrobras which last October was awarded a ral Cigar unit in Richmond, Va., according to tial $30,000, according to Senate records. ❑ bloc for oil exploration in Cuban waters, would open an office in Havana in July. 20 CubaNews ❖ July-August 2009 BOOKSHELF Bay of Pigs, Benny Moré, Brigade 2506 and Cuban cuisine eriodically, CubaNews offers reviews of members, seeking out rare recordings and lit- but also its culture, people, urban plazas and books we think will interest our readers. tle-known photographs. parks, monuments, landmarks, food, music, P This month, we present a fresh selection Radanovich provides the definitive biogra- dance, colonial history and idiosyncrasies — of summer reading to avid Cuba-watchers. All phy of the man and his music, whose legacy from cigars to the Tropicana nightclub. of these books are available for purchase was forgotten in the larger scheme of political Critic Juan M. Clark calls the book “a con- through the University of Florida Press: difficulties between the United States and cise look at one of the oldest and most impor- Cuba. tant cities of BAY OF PIGS Even the exact spelling of Moré’s first this hemi- “Bay of Pigs: An Oral History of Brigade name was unknown until now. The author — sphere. Its 2506” by Victor Andrés Triay” is the story of who has published articles and reviews in combination the Bay of Pigs invasion, told for the first time Living Blues and the Times- of excellent in the words of the idealistic participants who Picayune — also examines the milieu of graphics came together in April 1961 to overthrow Cuban music in the 1950s, when Havana was and appro- Fidel Castro’s new Marxist government. the playground of Hollywood stars and the priate his- The 224-page history (ISBN 978-0-8130- Mafia ran the nightclubs and casinos. torical data 20907, price: $24.95 cloth) tells the personal Author Sam Charters calls this scholarly makes this stories of the invasion in an account that work “an important and highly entertaining book an restores the human dimension to a pivotal book that tells the story of the great and trou- attractive moment in the history of the Cold War. bled Cuban singer Benny Moré ... helps roll and read- Most of the approximately 1,500 men of back the curtain that often comes between able work. It Brigade 2506 were captured by Castro’s American audiences and their appreciation of is an impor- forces in Cuban swamps and jailed until the great musical cultures to the south.” tant contri- December 1962; about 114 died. bution to the history of Cuba and of that city.” AFRO-CUBAN VOICES Treister is an award-winning international WILDMAN OF RHYTHM “Afro-Cuban Voices: On Race and Identity in architect, photographer and sculptor whose “Wildman of Rhythm: The Life and Music of Contemporary Cuba” is a joint production of work has been featured in leading art and Benny Moré” by John Radanovich is the first Cuban writer, poet and journalist Pedro Pérez architecture journals worldwide. English-lan- Sarduy and British historian and professor Préstamo was professor of architecture at guage biogra- Jean Stubbs. the University of Miami, and García teaches phy of the singer The 212-page book (ISBN 978-0-8130- architecture at Broward College in Fort known as the 1735-89, price: $24.95 cloth) is “a courageous Lauderdale, Fla. attempt to deal head-on with the issue of race Cuban Sinatra. THE HABANA CAFÉ COOKBOOK Radanovich’s in Cuba today,” says critic John M. Kirk. 240-page study “The book will be received with relief by “The Habana Café Cookbook” (ISBN 978- (ISBN 978-0- some and with frustration by others,” he said. 0-8130-2737-1, price: $19.95 paperback) was 8130-3393-8, “It will spark a much-needed debate in the written by culinary wizard and café owner Jo- price: $29.95 United States on many aspects of the ‘Cuban sefa González-Hastings in celebration of her cloth) is “an question.’ It is about time.” Cuban heritage. Many of the informative and HAVANA FOREVER compelling recipes in this chronicle on the “Havana Forever: A Pictorial and Cultural 128-page cook- life of Cuba’s History of an Unforgettable City” is the product book were most dazzling of collaboration among photographer passed down to singer, Benny Kenneth Treister and co-authors Felipe J. the author from Moré, tidily strung together as a series of Préstamo and Raúl B. García. her mother and small bright story-jewels,” according to Ann The book (ISBN 978-0-8130-3396-9, price: aunts; others are Louise Bardach, author of “Cuba $50.00 cloth) “offers a nostalgic look at the “nuevo latino Confidential.” Cuban capital’s glorious architectural legacy,” cuisine” — a Moré (1919-63) was one of the giants at the says Alfredo José Estrada. fusion of tradi- center of the golden age of Cuban music. Jaime Suchlicki, who wrote the afterword, tional Cuban Arguably the greatest singer ever to come says the 336-page coffee-table book “captures foods with mod- from the Caribbean island, his name is still in beautiful photos the soul of a great capital.” ern dishes. spoken with reverence and nostalgia by Indeed, Havana has always been a dynamic Customer Cubans and exiles alike. metropolitan areas, and its unique architec- favorites are all Unable to read music, he nevertheless ture and history make it one of the world’s represented in easy-to-follow recipes and col- wrote more than a dozen Cuban standards. most beautiful cities. orful photos —from appetizers and soups, His band helped shape what came to be The closed nature of contemporary Cuban sea-food and vegetarian entrées, to classics known as the Afro-Cuban sound and, later, society both has frozen and preserved much (Cuban sandwiches and flan) and beverages salsa. Moré epitomized the Cuban big-band of Havana’s urban design, and has prevented (mojitos, sangria, cafe con leche, cuba libre). ❑ era and was one of the most important pre- many tourists from experiencing the wide cursors to the music later featured in the range of beautiful buildings and public spaces For details on all these books, please con- Buena Vista Social Club. found in Cuba’s visually stunning capital. tact: Stephanie Williams, Publicity Manager, Even now, it is impossible not to be thrilled In “Havana Forever,” Treister’s sublime University Press of Florida, 15 NW 15th and amazed. photographs capture the multiple faces of this Street, Gainesville, FL 32603-1933. Tel: Radanovich has spent years tracking down city. Along with writers Préstamo and García, (800) 226-3822. Fax: (352) 392-0590. the musicians who knew Moré and his family he explores not only Havana’s architecture Email: [email protected]. URL: www.upf.com. July-August 2009 ❖ CubaNews 21 TELECOMMUNICATIONS ICCAS: Cuba ranks last in regional telecom, IT penetration Cuba Observer is a publication of the Cell service during that period grew by Clubs (Joven Club de Computación), govern- University of Miami’s Institute of Cuban and about 136,000 lines, from about 330,000 to ment-run centers spread around the island Cuban-American Studies (ICCAS) and no about 466,000, according to ONE. that claimed to have 6,300 computers. government funding has been used in its pub- Yet fixed telephone lines barely grew in the Yet the rest of ONE’s numbers left many lication. The opinions expressed herein are same period, from 999,490 to 1,033,565. With puzzling how those Cubans would use that those of the author and do not necessarily a total of 1.42 million fixed, cell and other tele- knowledge, given the limited number of com- reflect the views of ICCAS, CubaNews or the phone lines in a country of 11.2 million peo- puters and internet connections. U.S. Agency for International Development. ple, the island’s telephone density per 100 in- Cuba has some 630,000 personal comput- ers — 56 per 1000 people, compared to the BY JUAN O. TAMAYO 191.5 per 1000 reported by St. Kitts & Nevis — of which 400,000 are “connected in net- uba’s cellular telephone service mush- work,” according to the statistics office. roomed in 2008, but the remainder of its Its 1.45 million reported “users” equal 13% Ctelecommunications and information of the population, although Havana residents technology sectors were stagnant or even say most of those computers are at work shrank, according to the most recent report places, such as ministries, factories and hos- from the Havana government. pitals, and that most of those “users” are like- Data released by the Office of National Sta- ly only on the island’s “intranet” — a system tistics (ONE) in fact put Cuba at or near the hemisphere’s bottom in terms of fixed tele- that limits their access to mostly government phone lines, personal computers and access web pages and domestic emails. to the Internet. ONE’s data, especially on the Even at 13%, Cuba lags far behind other economy, is sometimes regarded as suspect. Latin American countries in Internet access. But its June report is so grim that it’s diffi- Etecsa workers lay phone cable in Sancti Spíritus. It’s ahead of El Salvador, with 9.9%, but behind cult to believe the figures could be worse. Costa Rica’s 35.7% and Jamaica’s 53%, accord- The sole positive news was a significant habitants at the end of 2008 stood at 12.6, the ing to Internet World Stats, an independent jump in the number of cellular lines from 2007 lowest in Latin America and even lower than web site that tracks the industry. to 2008, apparently the result of Raúl Castro’s Haiti’s, the poorest nation in the hemisphere. The average for all of Latin America and the decision to allow all Cubans to contract for In its information technology sections, Caribbean is 29.9%. cell service — though at sky-high prices, ONE reported that 1,314,000 Cubans had ONE also reported computer equipment about $35 a month for the service in a country graduated as of the end of 2007 from comput- imports worth $6.1 million in 2008, compared where average monthly income is about $17. er literacy courses at the 611 Youth Computer to $3.6 million in 2007 and a mere $120,640 in 2006, as well as 2,168 domain names regis- tered under the “.cu” extension. Under a sector titled “Investments in infor- Murder of Spanish priest alarms Catholics mation technologies and communications,” it n a rather unusual week of religious Clara Church in Havana’s Lawton district. reported 317 million Cuban pesos invested in events in Cuba, Protestants marked Ortega rejected press versions linking 2008, far less than the 423 million it reported Othe 10th anniversary of evangelical the crime to religious hatred with political for 2007 and about the same as the 312 million celebrations on the island, while Catholics overtones. In a communique released by it reported for 2003. mourned the death of Rev. Mariano Arro- the Havana Archdiocese, Ortega said “any Despite Cuba’s clear lag behind the rest of yo, parish priest of the Virgin of Regla attempt to link one case with another or to the region on the communications and IT sec- Sanctuary, who was found stabbed and give it a religious or political meaning is tors, Raúl has given no hint that he might take with burns late last month in the Havana completely foreign to the reality of the advantage of President Barack Obama’s deci- parish house where he served. criminal deed itself.” sion in April to ease some of the telecom sec- While violent crime usually doesn’t Father Isidro Hoyos, 75, a Spanish mis- tions of the U.S. embargo. make headlines in Cuba, the news spread sionary and friend of the two murdered U.S. companies can now provide cellular like wildfire among habaneros, who are still priests, disagreed. service and roaming in Cuba, satellite TV and mourning another Spanish priest, Rev. “It seems that the procedure was the fiber optic cable facilities, and accept pay- Eduardo de la Fuente Serrano, who was same, the torture, the cruelty,” he told ments for those services from U.S. residents found stabbed and strangled last February. reporters, adding that such murders are — for example, someone in Miami paying for Cardinal Jaime Ortega y Alamino, maxi- “unusual” in Cuba, where there is “venera- a relative in Havana to receive satellite TV. mum figure of Catholicism in Cuba, denied tion and respect for all religious symbols.” Castro’s stance is not going to help Cuba that the slaying of two Spanish priests in “Eduardo and I came after Mariano. The improve its service — or its world rankings — Cuba was an expression of hate against connection we had here was Mariano,” in those sectors. religion or against Spain, during his eulogy Hoyos explained, recalling that De la While the 12.6 phone lines per 100 inhabi- of the 74-year-old Arroyo. Fuente started visiting the island to fill in tants reported for 2008 was about double the Ortega said Arroyo’s killer was arrested for Arroyo, and later for him, until he even- 6.4 lines per 100 reported for 2003, it’s still within a few hours of the discovery of the tually decided to remain in Havana to carry way below the 15 per 100 that Cuba reported out his priestly duties. in 1958 — at the time the second highest rate priest’s body and had confessed, though it ❑ was unclear if others were involved. The Spanish Foreign Ministry has asked in Latin America. Arroyo came to Cuba in January 1997 the Cuban government, through Madrid’s Juan O. Tamayo, former foreign editor at the and had worked in Regla since 2004. Embassy in Havana, for “maximum clarifi- Miami Herald, was the newspaper’s correspon- Cuban police also arrested the killer of cation” about the crime. dent in charge of Cuba coverage from 1995 to De la Fuente, 61, parish priest of Santa – FROM OUR HAVANA CORRESPONDENT 2000. In May 2009, he was appointed research associate at the University of Miami’s ICCAS. 22 CubaNews ❖ July-August 2009 POLITICAL ANALYSIS Washington’s real policy: Betting on Cuba’s collapse BY DOMINGO AMUCHASTEGUI academic travel to the island, but not without aging Cuban leadership. This is the real “new t the beginning of President Obama's signs of change from Havana. policy,” which some experts are already char- term, things were looking up; the Bush Why then has the Obama administration acterizing as “keeping the status quo.” A administration’s restrictions on travel not moved ahead more creatively in opening Cuba’s leadership — with the exception of and remittances by Cuban-Americans were new avenues and possibilities for real political Alarcón’s statement on the convicted Cuban eliminated. At April’s hemispheric summit in dialouge that may lead to full-scale normaliza- spies — hasn’t said a word yet on any of the Port of Spain, Trinidad, Obama suggested he tion of ties with Cuba? What’s behind this idea previous hostile actions, nor has Fidel written was formulating a new policy towards Cuba. of keeping intact more than 90% of the “old any “reflexiones” on the latest developments. But the fact is that Bush’s most aggressive policy” toward Havana? Officials in Havana welcomed Washing- Cuba policies have been preserved intact, and Florida’s 27 electoral votes are a crucial con- ton’s endorsement of the San Pedro Sula con- coup d’ possibilities for dialogue have been kept to a sideration, but there’s something even more sensus on OAS membership, and the important: according to Secretary of State etat in Honduras (see page 8 of this issue) has minimum. At the same time, congressional not led to any inflammatory Cuban statement initiatives aimed at expanding relations with Hillary Clinton’s recent speech to Congress, the Cuban regime is close to a total collapse. pointing at the United States, at least for now. Cuba remain frozen. Overall, a “new policy” to A path of caution and “wait-and-see” has deal with Cuba remains, at best, a very The thinking within the top ranks of the U.S. government and outfits like the Brook- prevailed in Havana, but this won’t last forev- remote possibility. er. If the perception of a short-term collapse The notion of regime change — though dis- ings Institution is that the Obama administra- tion isn’t really interested in petty, back-and- should continue to translate itself into grow- cussed in a more subtle way now — has been ing hostility and lack of progress on bilateral a recurrent topic on statements and speeches forth discussions with fading Cuban leaders who have little hope of rescuing the economy relations, then Cuban leaders will begin react- by top U.S. officials, before and since Port of ing accordingly. ❑ Spain. The same thing happened after the and saving the revolution. OAS meeting in San Pedro Sula, Honduras. If this is the prevailing perception in Wash- Former Cuban intelligence officer Domingo Some may argue that Washington was part ington, then nothing significant will be done Amuchastegui has lived in Miami since 1994. of the consensus on Cuba’s re-entry into the to improve ties because such that very course He writes regularly for CubaNews about politics organization; others will say that it was virtu- of action could mean throwing a lifeline to the in Cuba and the South Florida exile community. ally impossible not to join the consensus. For weeks, there was a funny — and entire- ly useless — debate about whether Cuba should or should not join the OAS, even D.R. hookers find warm welcome in Cuba though all knew Cuba would not ask to rejoin. BY VITO ECHEVARRÍA Havana’s policies on multilateral associa- guests staying in those hotels, and in fact tions are aimed at Latin America and the he Dominican Republic has a hot new they actively solicit these men — knowing Caribbean, in which the United States and export to Cuba, one which it’s not that not even hotel staff will question them. Canada have no say or political influence. T exactly bragging about: prostitution. The dominicanas also know they can This is why Cuba participated actively at the In an ironic twist, Cuba — which is solicit business from non-guests as well. To summit in Salvador de Bahia last December already awash in jinateras, driven in part by avoid raising the suspicions of hotel staff or and decided to join the Rio Group. local demand for consumer goods — has police, a woman will go straight to her room been a gold mine for Dominican prostitutes while her customer gets a drink at the bar, COURT RULING INFURIATES ALARCÓN seeking more lucrative markets elsewhere. then quietly slips into her room — and the Meanwhile, under Obama’s direction Cuba A growing number of women from Santo arms — of his waiting lady for the evening. again appeared on the State Department list Domingo and other Dominican cities have Also, in order to maximize their time in of state sponsors of terrorism (despite pleas arrived in Cuba, knowing how to use the Cuba as “tourists,” these streetwalkers from more than a dozen retired U.S. generals system to their advantage. Until early this often extend their 30-day tourist visas for that it should be removed), as well as on a list year, the island’s de facto “tourism apart- another 30 days before flying back home. of countries trafficking with people, “mainly heid” policy had long barred locals from A foreign businessman who didn’t want with women and children to be sexually ex- staying at hotels and resorts. to be named said he’s seen such activity at ploited.” Not even Cuban dissidents have Yet even Raúl Castro’s decree now allow- hotels in Havana’s Miramar district, partic- accused the Castro regime of such things. ing Cubans to also enjoy the country’s ularly at the seaside Hotel Copacabana. In addition, the Supreme Court has refused tourism accommodations has had little No doubt, once the U.S. travel ban is lift- to review the case of the so-called “Miami effect — given that locals earn the equiva- ed, both local and Dominican prostitutes in Five,” while the Obama administration dis- lent of $17 a month and most resorts Cuba will see business skyrocket. The chal- missed any possibility of exchanging these charge at least $100 a night. lenge for them will be to find places to con- convicted Cuban spies for political prisoners Except for a lucky few with access to duct their business while staying one step on the island, a proposal made by Raúl Castro hard currency, most Cubans today are still ahead of Cuba’s police apparatus. on several occasions. priced out of tourist hotels, and those local In fact, prostitution in Cuba is just part of This led to an angry statement by Ricardo girls who would have the cash to book a a growing trend of poor Dominicans plying Alarcón, chairman of the National Assembly, room in Havana remain under the scrutiny their trade in nearby islands where they can that “it is inconceivable, impossible to imag- of both hotel staff and cops who happen to earn valuable foreign currency. ine a normal relationship between the United be patrolling nearby. According to the local Listín Diario daily, States and Cuba while our five comrades re- Dominican prostitutes, however, are still Dominican girls flock to the French islands main in prison.” He added that yes, migration foreign tourists who get the benefit of the of Martinique and Guadeloupe, as well as to talks may be held, but no political dialogue. doubt if they’re booking a room individual- Antigua, Dominica, Haiti and the British Vir- On July 24, Obama told regional reporters ly to engage in “tourism.” Such women gin Islands — where lighter-skinned girls in Washington that he’s open to more over- know full well they can pick up foreign male are prized among wealthier black locals. ❑ tures to Cuba, like lifting restrictions on U.S. July-August 2009 ❖ CubaNews 23 ARTS & CULTURE MELANIE LUST PHOTOGRAPHY

CarHavana exhibition comes to Fla. arHavana, an artistic collaboration be- Lust says her photos “bring out the char- tween U.S. photographer Melani Lust acters of each auto with new appreciation Cand Cuba’s Brayan Alonso Collazo fea- for history, craftsmanship and technical turing large scale photos of classic American skill of the owners who have kept them so autos of the 1950s, is coming to Florida next well-preserved” over the last 50 years. year after a successful showing in Cuba. “On seeing these incredibly preserved The exhibition, set for Mar. 12-14, 2010, is autos in Havana, my heart began beating as part of the Amelia Island Concours d’Elegance if I were an adolescent again,” said the Con- — an annual international car show in Jack- necticut-based photographer. “Each of these sonville, Fla., that features the best of classi- cars has a story to tell, with such unique his- cal automobiles as well as superior race cars. tories and each restored by their talented The Amelia Island show marks the 40th owners. In photographing them, I felt con- anniversary of Cuba’s last Gran Prix, won by nected to each as if they were organic, with Sterling Moss, who will be in attendance. details so revealing of their personalities.” Rum giant Bacardi Ltd. is the show’s likely She added: “In the reflection of the mir- sponsor, and the director of Old Havana’s ror-like paint I see Cuba’s past, lovingly Deposito de Automovíles [Auto Museum] has detailed, but I imagine the future, the gleam been invited as well. of hope and the elegance of tomorrow; a his- CarHavana, which ran from May 8 to June tory preserved and a future to forge.” 7 at the Deposito, consists of 30 large-scale Details: Melani Lust, 21 Hickory Dr., West- photographs taken by Lust and Collazo. Spon- port, CT 06880. Tel: (203) 247-6983. Email: sored by the Cuban government, it’s a coop- [email protected]. URL: www.- erative effort indicative of the recent thawing melanilustphotography.com/data/web/Hav- of relations between Washington and Havana. anaClassicCarExhibit/index.html. 24 CubaNews ❖ July-August 2009

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