Vol. 12, No. 4 April 2004

www.cubanews.com

In the News New decree limits dollar transactions

Rum and cigar wars as Cuba tightens controls once again General Cigar loses Cohiba trademark; BY LARRY LUXNER pend payment in hard currency for services that Bacardi appeals TTAB ruling ...... Page 3 ffective this month, the Castro govern- do not correspond to those functions.” ment will further restrict the circulation of Beginning in April, according to the docu- Demographic dilemma Edollars in Cuba — representing yet anoth- ment, dollars may be charged only for “activities er erosion of market reforms and what some that are part of an entity’s fundamental social Massive emigration has taken its toll on observers call an unrealistic desire by hardlin- objective, or the sale of products, except those Cuba’s population ...... Page 4 ers in Havana to “turn back the clock” and ban completely outside an entity’s fundamental dollars from the island altogether. social objective. The remaining activities will be charged in the national currency.” Cementing the future Circular #04/200 of the Ministry of Economy and Planning orders all state entities to stop A list of 87 sample activities is attached to the Spanish investor sinks $105m into former charging U.S. dollars and start charging pesos document; these range from maritime and con- struction activities to factory cafeterias, small Karl Marx cement factory ...... Page 6 for any services and products not considered their core business. Those that don’t charge in dollar motels and retail sales. pesos for non-core services and products will be On a practical level, many Cubans worry that Newsmakers forced to close them down. services will disappear, and that the govern- Alimport chief Pedro Alvarez has become The decree states as follows: “Complement- ment won’t come up with the hard currency to replace the state entities’ lost dollar income. the darling of U.S. farm executives eager ing decisions taken by the Council of Ministers on Dec. 18 to improve the control and use of What all this means for Cuba’s long-term eco- to sell commodites to Cuba ...... Page 8 hard currency, a series of measures are being nomic future is less clear. adopted that will contribute to reaching these “They’re trying to downsize the role of the Eye in the sky goals, among them to adjust entities’ social dollar. It’s part of the tendency towards recen- See Dollar, page 2 Orbis brings DC-10 “flying eye hospital” objectives to their primary function and sus- to Manzanillo and Havana ...... Page 10 Cuban universities adapt to the times Commodities Sherritt CEO tells Cubaniquel to act now with business, management courses on nickel plant expansion ...... Page 11 BY DOUGLASS G. NORVELL ticated computers and software programs. Business briefs anagers looking to long-term business The faculty of economics also offers a mas- ter’s program in statistics and information sci- Economy off to strong start in Q1 2004; opportunities in Cuba will be pleasantly Msurprised to learn that Cuban universi- ence. The core courses are “management infor- Iran to export cars to Cuba ...... Page 12 ties are turning out graduates trained in capital- mation systems” (periodic data reporting to aid ist management techniques. in control and decision-making); “database man- H makes its debut As described in their catalogues, the Univer- agement” (design and implementation of infor- sity of Havana’s undergraduate and graduate mation gathering); “automatic control systems” Glossy new Havana lifestyle magazine is (to monitor product quality); “economic applica- programs are beginning to resemble those of looking for advertisers ...... Page 13 tions of Excel” (hello, Bill Gates) and “building any mainstream U.S. business school. Web pages with FrontPage 2000.” Consider the master’s program in marketing All these programs are unabashedly oriented Chan-chan — yes, marketing — at the University of Hav- toward current technology. 7 years after CD, Buena Vista Social Club ana’s faculty of economics. At the undergrad level, the economics faculty The core courses are entitled “marketing of still rides a wave of success ...... Page 14 offers two five-year degree programs in interna- services” (geared toward the tourism industry); tional business and business sciences. At the “strategic marketing” (to help Cuban compa- University of Havana alone, about 250 students CubaNews (ISSN 1073-7715) is published monthly nies prepare marketing and business plans); are in undergraduate programs. by Luxner News Inc. © 2004. All rights reserved. “consumer behavior” (how consumers make Regional universities also offer undergradu- Subscriptions: $429/year. For subscription or edito- buying decisions) and “market research” (esti- rial inquiries, call toll-free (800) 365-1997, send a fax ate degrees in business, although the master’s to (301) 365-1829 or e-mail us at [email protected]. mating the size and durability of markets). These programs all involve the use of sophis- See Universities, page 15 2 CubaNews ❖ April 2004 from using dollars for internal trade. Instead, degree of economic stability, thanks to sub- Dollar — FROM PAGE 1 they were to use local scrip known as pesos stantial foreign investment in the tourism tralizing the economy,” a European diplomat convertibles. industry, it now longer has to make those con- in Havana told CubaNews. “My personal feel- In December, José Luís Rodríguez, minis- cessions,” he continued. ing is that the role of the dollar has gotten out ter of economy and planning, told the Cuban “What we’re seeing is a tightening of the of hand. It’s much bigger than the regime Parliament that the use of foreign exchange Cuban economy. This is not by accident. This ever intended it to be. It’s practically the only by state companies was under review, and is Fidel Castro imposing his immense will on currency this country is running on.” the Cuban people, The diplomat, who asked not to be named, and on other bureau- said the government’s efforts will prove futile crats in the regime because “the dollar is too important already.” who would like to see Jaime Suchlicki, director of the University further economic lib- of Miami’s Institute for Cuban and Cuban- eralization.” American Studies (ICCAS), noted that a few De Salas del Valle years ago, the Cuban government withdrew said some of the bur- U.S. nickels, dimes and quarters from circu- eaucrats pushing for a lation and replaced them with Cuban-issued pragmatic economic coins of equivalent value. opening a la China “This latest decree could be a prelude to and Vietnam include ending the dollarization of the economy as we Rodríguez — despite understand it today,” said Suchlicki, adding the economy minis- that “I don’t think Fidel is happy with the ter’s own decrees — impact dollarization has had up until now.” and Marcos Portal, Since 1993, the dollar has been circulating Cuba’s minister of in Cuba alongside the peso, giving state com- basic industry. panies more autonomy to finance their dollar Another powerful activities; as a result, many such enterprises man in Cuba is Ricar- branched out to areas outside their normal do Alarcón de Que- jurisdiction to earn the highly prized dollars. Havana shopper pays for groceries in dollars, the currency of choice in Cuba. sada, president of the For example, the Havana Port Authority National Assembly. began a catering business, and the Science that their authority to operate independently “We decriminalized the use of the dollar as and Technology Ministry has opened dollar and engage in foreign trade would be limited. a necessary step to reduce the gap between restaurants. “Put in the context of all the decrees over the haves and the have-nots,” Alarcón told Last year, however, Cuba’s Central Bank the past year or so, what we’re seeing is the CubaNews in an interview last month. “If you issued an edict forbidding state companies legal codification of all that has been taking compare this to years ago, there was a bigger place — in other words, a reversal of the lim- gap. Now it’s not so big.” ited economic liberalization of the early to Despite the corruption that may result U.S. to Bermuda: watch out! mid-1990s,” said Hans de Salas del Valle, a re- from the circulation of dollars in Cuba, the 66- search associate at ICCAS. year-old revolutionary insists the government The top U.S. diplomat in Bermuda warns has no plans to scrap the dollar altogether, as that the tiny British colony’s warming ties “Dollarization [in 1993] was nothing more than a tactical step to ensure the survival of some observers have been speculating. with Cuba could lead to a deterioration of “The dollar won’t be criminalized,” he said. relations with Washington. the regime, and Fidel Castro was never com- “Someday we will have just one currency in Denis Coleman, the U.S. consul general fortable with these measures,” he explained. use, the Cuban peso, to pay for services. I in Hamilton, said in a TV interview that by “These were emergency steps taken to would not exclude the possibility of using the allowing a regular charter flight to Havana, ensure that the regime didn’t crumble. Now dollar or the euro in addition to the peso, but the Bermuda government has broken a that the Cuban government is assured a we will never abandon the peso.” promise that its relations with Cuba would remain only cultural. According to The Royal Gazette, Coleman Dispute leads Bancomext to shut its Havana office said ties between the U.S. and the wealthy suffered a negative impact with the suspen- North Atlantic island of 61,000 inhabitants he Mexican government has decided sion of bilateral debt negotiations. “were not as good as they used to be,” and to close the Havana branch of Banco Bancomext is the only debtor of a credit that the Bush administration was “strongly T Nacional de Comercio Exterior (Ban- package that Cuba had guaranteed with $40 against” Bermuda’s commercial relations comext) over a dispute involving Cuba’s million in international funds from phone with Havana. longstanding $380 million debt to Mexico. Official sources quoted by the Mexican monopoly Etecsa — itself a joint venture “We do feel it is like sticking a finger in between the Cuban government and Italian our eye,” he said. newspaper La Jornada said the closure, set for Apr. 16, is in line with Bancomext’s goal investors — when Cuba renegotiated its Deputy Premier Ewart Brown, who’s also debt with Mexico in March 2002. Bermuda’s transport minister, responded of seeking out greener pastures. “Cuba forms part of an area that doesn’t These guarantees were unilaterally with- by telling the Gazette that “I don’t think the hold big economic potential for Mexico, nor drawn by Cuba a month later, and since U.S. government is any more upset that it’s does it hold much potential for foreign then, Mexican authorities have sought happening from Bermuda than that it’s hap- investment into the country,” said Gabriel unsuccessfully to recover the money, which pening from Canada, the Cayman Islands, Barrera, Bancomext’s director of internatio- has been frozen by Italian authorities, and the Bahamas, Jamaica, London or Madrid.” nal promotions. which, according to experts quoted by La Starting in June, tourists will be able to A few days earlier, the same newspaper Jornada, rightfully belongs to Bancomext. fly directly to Cuba from Bermuda, on char- published a story by Havana correspondent The bank first established a Cuban pres- ter flights originating in Spain. Gerardo Arreola, noting that Bancomext’s ence in 1975. In 1999, then-Mexican Presi- As a result, U.S. Customs agents at Ber- closure could spark a “second blow” to dent Ernesto Zedillo inaugurated the bank’s muda’s airport have already been trained to Cuba’s telecom industry, which had already office at Havana’s Miramar Trade Center. catch U.S. citizens breaking the travel ban. April 2004 ❖ CubaNews 3 LEGAL AFFAIRS General Cigar, Bacardi appeal U.S. trademark decisions BY LARRY LUXNER to $20 apiece, according to Bloomberg News. of trademark rights,” said Adargelio Garrido, tockholm-based Swedish Match plans to “Obviously, the right to reclaim our mark is general counsel of Habanos S.A., which pro- appeal a U.S. court ruling that blocks its very important to us,” said Kevin Walsh, the vides legal services to Cubatabaco. “The Ssubsidiary, General Cigar Holdings, from lawyer representing Cubatabaco. Cuban courts have applied the ‘well-known selling cigars in the United States under the According to press reports, Sweet found marks’ doctrine in favor of U.S. companies, world-famous Cohiba brand. that General Cigar reintroduced its Cohiba and now, the U.S. courts have extended recip- On Mar. 30, Judge Robert Sweet of U.S. cigar in 1992 to “capitalize on the success of rocal protection.” District Court in Manhattan ruled in a 137- the Cuban Cohiba brand.” He also found Meanwhile, Bacardi is waging a similar bat- page opinion that Cuban government agency “strong evidence of intentional copying.” tle to wrest control of the Havana Club rum Cubatabaco — not General Cigar — owned The Cohiba brand, created in 1965 by Che name from Havana Club Holdings, a 50-50 the rights to the brand, and that General Guevara, was the first cigar brand established venture between the Castro government and Cigar had violated Cubatabaco’s trademark. French liquor giant Pernod Ricard. “We are obviously disappointed in the rul- “We’re asking the court ing. Based on our long-standing U.S. registra- to declare Bacardi the tion of the Cohiba brand and Cubatabaco’s exclusive owner of Havana Club in acquiescence for almost two decades, we mar- the U.S. and resolve this matter keted this brand with the confidence that we once and for all,” said Eduardo Sar- owned the mark,” said General Cigar’s chief dina, president and chief executive of Miami-based Bacardi USA. executive, Edgar Cullman Jr., in New York. by the Castro government following the 1959 “We intend to appeal this decision and feel The lawsuit is an appeal of the Jan. 29 rul- revolution. It was conceived as a super-premi- ing by the Trademark Trial and Appeal Board confident that it will be overturned.” um cigar for Castro’s private use, and to be Coincidentally, Judge Sweet’s ruling came in Washington, which had rejected Bacardi’s given out to heads of state and other VIPs. efforts to cancel the Cubaexport registration the same day that rum giant Bacardi filed suit In his Mar. 30 ruling, Sweet held that the on the grounds it was registered under fraud- in U.S. District Court in Miami, asking the Cuban company had a legally protectable ulent circumstances (see CubaNews, February court to grant Bacardi exclusive U.S. rights to right to Cohiba because the Cuban brand was 2004, page 10). the Havana Club trademark and to cancel the “well-known” among U.S. premium cigar Said Mark Orr, vice-president of North Am- registration now held by Cubaexport, a Cu- smokers before General Cigar resumed its erican affairs for Pernod Ricard: “We think ban state entity. use of the Cohiba mark in late 1992. He also they came to the right decision and were con- Cubatabaco, headquartered in Havana, ex- found that an injunction against General fident that decision will be upheld on any ports Cohibas everywhere except the United Cigar’s use of the Cohiba name was neces- appeal that might result.” States, where the embargo keeps them out. sary to protect the consumer against confu- General Cigar, meanwhile, has been mak- sion between the two Cohibas. ing Cohibas at a huge factory in the Domini- “Judge Sweet’s decision is one of the first Fla. may tax charter flights can Republic for more than 10 years and sell- U.S. decisions to apply the international ‘well- ing them in the U.S. market since 1992 for up known’ marks doctrine for the determination The Florida Legislature is considering the imposition of a tax on charter airlines that fly to Cuba. Mobile phone service for the masses? Rep. David Rivera (R-Miami), chief spon- sor of the bill — known as Charter Travel uba will reportedly offer wireless phone Antillana S.A. bought out Toronto-based Sher- to Terrorist States — says the fee makes service to local residents in pesos for ritt International’s 40% share of Cubacel for sense because “the money is coming from C the first time ever. $35 million, and Mexican company TIMSA’s travel to a nation listed by the federal gov- “Starting the second half of this year, the 10% share for $8 million (see CubaNews, ernment as a sponsor of terrorism, and population will benefit from the installation October 2003, page 3). those traveling to such places should help and distribution of cellular telephones, a serv- The two wireless companies had exclusive finance security efforts back home.” ice up to now available only in dollars,” said rights to frequencies and had resisted offering Federal laws restrict the state from Vanguardia, the official weekly newspaper of services in local pesos, which are worthless charging per-head taxes, so the cost would Villa Clara province. “In the future, the basic outside Cuba. State-owned Etecsa, which is be based on the size of the plane. Charter development of telecommunications will be 29.29% owned by Telecom Italia SpA, now has companies would have to pay an extra cellular and wireless.” a monopoly on telecom. $4,000 to fly a 727 to Cuba, said Rivera, who That’s quite a switch from the present, Last year, Cuba’s Ministry of Communica- predicted the tax would raise about $8 mil- since fewer than 10,000 of Cuba’s 11.3 million tions and Information Technology said it lion annually. inhabitants have access to mobile telephony. would quickly distribute up to 300,000 cell- But María Teresa Aral, vice-president of Most of the cellphones now in use belong to phones, though no details on rates or cover- ABC Charters in Miami, said the Depart- top government officials and foreign inves- age were ever released. ment of Transportation won’t allow such a tors, though an increasing number of phones It appears that Cuba’s peso-denominated tax, so the bill’s sponsors are now calling it seem to be finding their way into the hands of wireless network will be subsidized by expen- a landing fee. local Cubans with dollars, including the girl- sive dollar services to foreigners and sur- “We’re trying to stop this before it friends of Italian and Spanish tourists. charges added to incoming calls from the becomes law,” Aral told CubaNews. “What- Two state-run companies now offer wire- United States; Cubacel’s per-minute rates are ever the cost is, we’d have to pass it onto less service: Teléfonos Celulares de Cuba already among the highest in the world. the consumer.” She added that “if the right S.A. (Cubacel) and Celulares del Caribe (C- At the close of 2002, according to govern- federal agencies get involved, this won’t COM). Both are 100% owned by fixed-line ment sources, Cuba had 710,000 fixed lines in have a leg to stand on.” operator Empresa Nacional de Telecomunica- service, translating into a density of 6.3 lines Rivera’s measure has six co-sponsors in ciones de Cuba S.A. (Etecsa). per 100 inhabitants — among the lowest in the House, according to the Miami Herald. In October, Etecsa subsidiary Telefónica Latin America and the Caribbean. 4 CubaNews ❖ April 2004 DEMOGRAPHICS Persistent emigration takes its toll on Cuba’s population

BY ARMANDO H. PORTELA mer Comecon bloc of communist countries in Traditionally, people from Havana are more uba has lost a sizable part of its popula- 1972, the frontiers shut down once more for willing to flee than others. Even proximity to tion in the last decade, as the endless those willing to emigrate, only to open again the nation’s capital seems to exert a powerful Ceconomic crisis and the collapse of liv- during the 1980 Mariel boatlift. influence over emigration. ing standards force people to leave home. That year, 142,000 Cubans fled the island, The city of Havana accounted for 54% of all According to official statistics, 243,432 and the island registered a population decline emigration from 1993 to 2001, a ratio that’s Cubans left the island of their birth between for the first time since the War of Indepen- been consistent throughout the post-Castro 1994 and 2001, translating into an average of dence in the 19th century. During the periods era. Seen another way, a resident of the 30,429 emigrants per year. Therefore, it’s safe between those waves, the borders remained crowded Centro Habana municipality has to assume that nearly 300,000 Cubans have seen an average of 17 of his neighbors deaprt left the island in the past 10 years. DEPARTURES FROM CUBA In thousands over the past 10 years; someone living in Old For a country of 11.2 million, this exodus ‘93 ‘94 1995 ‘96 ‘97 ‘98 ‘99 2000 ‘01 Havana or La Víbora has seen eight of his represents 2.7% of the total population. As neighbors take the same road. Cuba’s birth rate shrinks and its death rate Inhabitants of Cuba’s eastern provinces, increases in a society that’s getting older, the meanwhile, are less likely to leave the island. From 1993 to 2001, the number of orientales effect of emigration on overall population -10.0 growth becomes ever more significant. leaving Cuba was only 8% of the total exodus, Massive emigration is one of the most despite the fact that the five eastern provinces important patterns in Cuba’s demographics — Holguín, Las Tunas, Granma, Guantánamo over the past four decades — an embarrass- -20.0 and Santiago de Cuba — make up 35% of ing fact that, since 1959, Cuban authorities Cuba’s population. have managed with some discretion. There’s no question that the incremental In fact, both immigration and emigration exodus of the last 45 years, during which over have been directly linked with Cuba’s econo- -30.0 1.5 million Cubans abandoned the country, mic prosperity or decline at various times. For has become a relevant economic and political the first 30 years of the 20th century, Cuba factor. The economic well-being, capitaliza- received over one million immigrants — tion and purchasing power of Cubans living mainly from Spain, but also from nearby -40.0 abroad is viewed by the government with Caribbean islands. great interest. The Great Depression of the 1930s ended Remittances alone represent close to one- that trend, though it picked up again during fifth of Cuba’s foreign exchange, well above World War II, when Cuba received thousands Source: Cuba’s Statistical Yearbooks sugar sales, and thousands of people ready to of European immigrants. leave Cuba permeate all layers of society, Things changed, of course, with the 1959 half-locked enough to allow the departure of from scholars to artists, athletes, workers and revolution, which sparked the largest wave of several thousand Cubans per year. even children of the privileged nomenklatura. emigration in Cuba’s history. The current wave of emigration was The harsh vocabulary used in the past to From 1959 to 1962, roughly 355,000 people sparked by the August 1994 revolt along describe those who leave the island (worms, left the island, representing 5% of the popula- Havana’s Malecón, which led almost immedi- scum, traitors) has been toned down, while tion at that time. The borders were closed ately to the rafter crisis. In its first year alone, Cubans staying at home, rather than afraid, during the 1962 Cuban Missile Crisis but re- 47,844 people left the island. are openly eager to contact relatives, friends opened in 1965 to 1971, to let another wave of Emigration from Cuba is far from being or colleagues leaving overseas — an attitude 333,000 depart. As the island entered the for- evenly distributed throughout the island. unthinkable only a decade ago.

-134,189 -61.7

-16,353 -22.9 -11,524 -17.3 -11,881 -16,451 -16.1 -19.7 -5,928 -14.9 -4,117 -5,238 -9.9 -1,246 -11.3 -15.4 -11,889 RATIO OF DEPARTURES ABROAD -15.0 Per thousand inhabitants, 1993 - 2001 -4,332 -8.1 -8,363 Less than -10 -20 to -30 -8.1 -10 to -20 -61.7 -2,911 -3.5 -9,208 -3,200 -16,353 Number of people leaving -8.8 -6.2 -22.9 Departure rate per thousand April 2004 ❖ CubaNews 5 POLITICAL BRIEFS ENTRY PROCEDURES EASED FOR CUBAN EXILES In their own words … The Castro government will make it easier for Cubans living abroad to enter the country by doing away with entry visa requirements. “President Bush remains strongly committed to supporting the efforts of Cubans will still need to get a one-time security Cubans to build an independent civil society and free the flow of ideas and clearance, which Cuba calls an “entry authoriza- information to, from and across the island. The Commission for Assistance to a Free Cuba, which I chair, will explore ways we can help Cubans peacefully tion.” Unlike the entry visa, the clearance will be prepare for the inevitable democratic transition and hasten its arrival.” valid for multiple entries into the country, al- though under U.S. law, Cubans are restricted to — Secretary of State Colin Powell, writing Mar. 19 in The Miami Herald. one trip per year to their home country. The new regulations will take effect Jun. 1. “I’m pretty tough on Castro, because I think he’s running one of the last ves- Between 130,000 and 150,000 Cubans living in tiges of a Stalinist secret police government in the world. And I voted for the the United States visit the island every year. Helms-Burton legislation to be tough on companies that deal with him.” “Every Cuban who has not been involved in — John Kerry, speaking to reporter Michael Putney of Miami’s WPLG-TV, in a terrorist and/or despicable activities aimed at report aired Mar. 14. The problem is, Kerry voted against Helms-Burton. destroying their country will be able to enter Cuba,” said Dagoberto Rodriguez, chief of the “This government marks a break with the past; now Paraguay is a dignified Cuban Interests Section in Washington. country that can make decisions with utmost independence and does not fear The announcement comes as Cuba prepares to any type of retaliation.” host its third “Nation and Emigration Confer- — Leila Rachid, Paraguay’s foreign minister, explaining why her country is ence” in Havana. The May 21-23 meeting will unafraid of U.S. retaliation for its decision to pursue closer ties with Cuba. cover issues affecting Cubans living abroad. URUGUAYAN LAWMAKERS CONDEMN SPYING CASE “Today I count myself among the native species of Cuba’s fauna. Frequently I receive visits from frogs and lizards. The spiders are guests who are here to Uruguay’s Chamber of Deputies voted 41-36 to stay. Wise rodents wait for nightfall to go over my belongings. Though small, condemn what it called the tapping of its tele- their stomachs are insatiable. In eight months of zoological experiences, I phones by Cuban intelligence services. have only managed to condemn one of them to a death sentence.” According to the Miami Herald, the Mar. 3 — Jorge Olivera, a 42-year-old independent journalist sentenced to 18 years in vote came after Nationalist Party deputy Jaime prison by the Castro regime. Trobo told the chamber that Cuba’s security services had investigated the origin and destina- tion of phone calls and e-mails made by Trobo to “My husband is dying slowly. I ask for his release into the hands of the Cuba, Miami, Puerto Rico and Spain. International Red Cross.” Trobo is a member of the Commission on — Cruz Delia Aguilar, whose husband, Julio Antonio Valdes, is among 75 opposi- Human Rights of the Latin American Parliament, tion activists jailed since March 2003. Valdes is awaiting a kidney transplant. which is probing human rights abuses in Cuba. “The 75 mercenary prisoners are being treated with respect. There is no VATICAN APPOINTS NEW ENVOY TO CUBA spirit of revenge against them. The idea that they’re dying of hunger in a John Paul II has appointed Archbishop Luigi European-style Nazi concentration camp is a lie.” Bonazzi the new apostolic nuncio in Cuba, three — Felipe Pérez Roque, Cuba’s foreign minister, at a Mar. 25 news conference in months after his first appointee to the post was which he rejected charges that the dissidents suffer from poor prison conditions. slain in Burundi. Bonazzi, 55, until now has been apostolic nun- “I’m sure someone here talks to Fidel Castro. Please tell him to go look at cio in Haiti, said Father Ciro Benedettini, deputy what’s happened with Moammar Gadhafi.” director of the Vatican press office. The Pope — U.S. Agency for International Development chief Andrew S. Natsios, speaking originally appointed Archbishop Michael Court- at the University of Miami’s Institute for Cuban and Cuban-American Studies. ney to the Cuba post, but Courtney was killed Dec. 29 as he concluded his mission in Burundi. “On Feb. 26, the State Department lifted its travel ban on Libya. That left Bonazzi, born in Italy, became a priest in 1973 Cuba the only country on Earth that Americans are forbidden to visit. You and received episcopal ordination on Aug. 26, can’t blame the Cuban people for digging up their back yards and trying to 1999. The last apostolic nuncio in Cuba was find old car parts or steel drums that might appear suspicious enough to pass Mexican Archbishop Luis Robles Díaz, who was off as WMDs. With nothing to give up, the prospects of persuading the United appointed vice-president of the Holy See’s States to end its travel ban seem remote.” Pontifical Commission for Latin America. — Dan Moffett, in a Mar. 14 editorial in the Palm Beach Post. FRENCH CITY ADOPTS INDEPENDENT LIBRARIES The mayor of Strasbourg, France, will sponsor “Castro is isolated in the hemisphere and I admire him because he’s a fight- a twinning program between its municipal er. He stood alone and in a sense he’s Don Quixote, the last revolutionary, tilt- libraries and the independent libraries of Pinar ing at this windmill of keeping the island in a state of, I suppose, egalitarianism where everyone gets education, and everyone gets good water.” del Río province in western Cuba. In a Mar. 19 letter, Mayor Fabienne Keller and — Oliver Stone, commenting on his new and updated TV documentary, the president of the urban region of Strasbourg, “Looking for Fidel,” scheduled to air this month on HBO. Robert Grossman, promised to provide books to people traveling to Cuba and will ask the visitors “Let’s not fool ourselves into thinking that what lies ahead will be easy. to deliver them to the independent libraries. Maybe what lies ahead may prove to be more difficult.” Details: Friends of Cuban Libraries, 4-74 48th — Fidel Castro, in a speech taken out of context and used by Oliver Stone Ave #3-C, Long Island City, NY 11109. Tel: (718) at the conclusion of his documentary. 305-9201. URL: www.friendsofcubanlibraries.org. 6 CubaNews ❖ April 2004 FOREIGN INVESTMENT Spaniards pour $105 million into Cuban cement venture BY LARRY LUXNER running afoul of the Helms-Burton Act. uba’s ruling Marxists are finally distanc- Interestingly, Cuba was the first country to ing themselves from their hero, Karl produce cement in Latin America, beginning CMarx — even going so far as to remove in 1895 — two years before Brazil. his venerated name from one of the island’s In 1989, the Karl Marx factory produced a largest cement plants. record 1.115 million tons. That was just a year The once-aging, inefficient factory along before the Soviet collapse plunged Cuba into Cuba’s south central coast is now known as an economic crisis. Cementos Cienfuegos S.A., after the joint ven- These days, the island’s cement production ture which is 50% owned by Cemvid, a unit of capacity stands at 4.0 million tons. Besides Cuba’s Ministry of Basic Industry, and 50% by Cementos Cienfuegos and Cementos Las Pailas de Cemento S.A., a Spanish compa- Curazao, there are also four smaller wet- ny controlled by a private investment bank. process plants, in Santiago de Cuba, Nuevitas Bruno Aerne is president and general man- (Camagüey province), Artemisa (La Habana) ager of Cementos Cienfuegos. and Siguaney (Sancti Spíritus). In a recent interview at his office in Hav- Asked what the venture’s break-even point ana’s Miramar Trade Center, Aerne said total is, Aerne said “that depends so much on the investment in the J-V is around $105 million. future of Cuba,” though he noted that cement The goal, said the Swiss executive, is to consumption grew 1.5% last year and is modernize the plant, bring it up to interna- expected to register similar growth in 2004. tional standards and boost production so that Aerne, who’s headed the venture since January, said few tears were shed following Cuba can become a major cement exporter to New kiln has daily capacity of 3,300 metric tons. the Caribbean and possibly West Africa. the decision to scrap the Karl Marx name. “Right from the beginning, we agreed that “With our expansion, we will have two kilns The Karl Marx plant was built in 1982 with producing a total 1.6 million metric tons,” he the new company should be named Cementos East German technology, and until its “priva- Cienfuegos. In fact, it was our partner, the said. One kiln will produce 1.1 million tons of tization” in 2000 employed 650 people. When cement, the other one 550,000 tons. Cuban government, which suggested the new the current expansion is completed, the new name.” Equipment is being supplied mainly by factory will employ only 200 people. Polysius, a subsidiary of Germany’s Thyssen “We are outsourcing several things like the RETAIL SALES COULD BOOST CEMENT DEMAND Krupp AG, in a contract valued at around $20 quarry operation and services like food, secu- million; Danish and Colombian firms also also rity and transportation,” he said. “Our More controversial has been the fact, as supplying equipment. employment levels are now more or less nor- Aerne put it delicately, that “not everybody is Said Ralf Bohme, commercial director of mal compared to world standards. The quar- profit-minded.” As he noted, “the Cuban enti- Polysius for Latin America: “These plants in ry is run by a contractor, so we have 40 peo- ty has a social responsibility which very often Cuba emit a lot of dust, and their filters are in ple less. So it’s not fair to compare with anoth- is more important than its economic targets.” very bad shape. With this modernization, the er company that runs its own quarry.” And while wages are generally low in Cuba, Cienfuegos plant will meet the highest stan- those savings are rarely passed onto foreign dards of the world.” SPANIARDS HAD LITTLE BIDDING COMPETITION investors. “We do not pay the workers direct- ly,” he said. “There’s a filter in between.” After the expansion is completed in August, Multinationals like Cementos Mexicanos said Aerne, Cuba’s total cement production And what a big filter that is. According to S.A. de C.V. (Cemex) did not bid on the Karl Aerne, labor costs Las Pailes de Cemento S.A. will come to around 2.5 million tons, of which Marx factory, for the simple reason that they one million tons will stay in Cuba and 1.5 mil- an average $1,000 per worker per month, have interests in the United States, which though the workers themselves earn an aver- lion tons will be exported. they do not want to jeopardize. “We envision the west coast of Africa and age monthly salary of only 400 pesos ($15). In mid-2002, Cemex acquired the Puerto One way to boost profits at Cementos maybe Brazil as customers,” Aerne said, not- Rican Cement Company Inc., which has a pro- ing that Cuba exports close to 800,000 tons of Cienfuegos is to increase Cuba’s cement con- duction capacity of about 1.2 million tons a sumption, which currently stands at only 90 cement, half to the Dominican Republic and year. Cemex also has operations in the Domi- the rest mainly to other kilograms per inhabitant, among the lowest in nican Republic, Venezuela, Colombia, Trini- the Caribbean. nearby Caribbean dad and more than a dozen other countries. markets. Usually, cement is used in major infrastruc- Cemex had been involved in a venture with ture projects such as ports and bridges. Since the Cuban government to operate the island’s early 2003, however, cement is being sold to largest cement plant, Cementos Curazao the Cuban public through Cimex hard-cur- N.V., in Mariel, but in May 1996 rency outlets for the first time. officially pulled out of the “We are very positive to this idea,” said venture for fear of Aerne, noting these sales accounts for 5% of Cuba’s total cement market, but could ac- count for 10% of the market very soon. That, despite the fact that Cimex is selling this cement at $6 per 100-lb. bag, which translates into $142 per metric ton — one of the highest retail prices in the Caribbean. “The more there is to buy, the more money will come into Cuba,” said Aerne. “Once a man can add a room to his house, his relative The former Karl Marx cement plant in Cienfuegos is being modernized in a $105 million joint venture. overseas will send him some money.” April 2004 ❖ CubaNews 7 AGRICULTURE AGRICULTURE BRIEFS SUGAR HARVEST PEGGED AT 2.4 MILLION TONS ‘Organoponicos’ flourish in Venezuela The province of Camagüey became the BY VITO ECHEVARRÍA gardens run by local residents. first in Cuba to produce 200,000 tons of raw However laudable this project may be, its sugar in the 2003-04 season, reported local uch has been made of the encroach- media, as the industry struggled to top last ing “Cubanization” of Venezuela — a practicality is being seriously questioned by a growing number of Venezuelans. According year’s 2.2 million tons by early May. Mprocess President Hugo Chávez has Despite improvements in efficiency, howev- to Gustavo Coronel, founder and president of encouraged through his close friendship with er, less-than-expected yields, harvesting and Fidel Castro and his acceptance of medical the Caracas-based civic group Agrupación Pro Calidad de Vida (Pro-Quality of Life milling problems mean this year’s zafra will and other assistance in exchange for subsi- weigh in at only 2.3 million to 2.4 million tons. dized Venezuelan oil. Alliance), the urban farming project is strict- ly propaganda for both Chávez and Castro. Last year, Villa Clara province on Apr. 7 be- One little-known aspect of Cuba’s growing came the first of 13 sugar-producing provin- presence in Venezuela, however, is the “In the case of the vegetable gardens, they clearly are not designed to increase agricul- ces to reach the 200,000-ton mark, followed by “urban garden” program spearheaded in Las Tunas on Apr. 15, while Camagüey did not Venezuela by Moisés Sio Wong. tural production because of their low num- bers, but to make some propaganda splash, reach the mark until May 27. The retired general, head of the National Villa Clara industry sources said the Institute of the State Reserve of Cuba, is train- since they are placed in easy-to-see locations in Caracas and other cities,” he said. province would top 200,000 tons sometime in ing members of the Venezuelan military on April. Yields generally peak in March, then the finer points of “organoponic gardening” Then there’s Fedeagro, the country’s farm federation, which comprises 52 local farm as- begin to decline in mid-April. — or pesticide-free urban vegetable farming. The harvest began in December and was At the behest of their Cuban advisors, Ven- sociations across Venezuela. Federation offi- cials say the Chávez government should be scheduled to end by May, though no national ezuelan soldiers, including those from elite milling and yield information has been made fighting units, are trading in their weapons doing more to support the farming sector. Nelson Calabria, the group’s technical available since mid-February. for shovels and hoes to cultivate a variety of Cuba, once the world’s largest exporter, basic vegetable crops on plots of land adviser, told CubaNews by phone that the Chávez-Castro organic farming initiative produced 8.1 million tons at the industry’s throughout Caracas, including strips of land peak in 1988-89, but output has tumbled since near smog-choked highways as well as resi- overlooks one significant fact: Venezuela is a dential districts and slums. land-rich country with 10 million hectares of the loss of Soviet subsidies over a decade ago. Impressed with the urban gardens already arable farmland that could easily produce Even so, Cuba is still the world’s fourth- flourishing in Cuba, and encouraged by the food crops at sites far more productive than biggest sugar exporter, sending abroad all but UN Food and Agricultural Organization the streets of Caracas. 700,000 tons of the crop. (FAO), Chávez has endorsed the cultivation “We cannot argue against food production. “There is a lack of spare parts for sugar har- of such urban plots of land as a means of cut- However, we don’t see how the organoponic vesting equipment and mills. At one coopera- ting Venezuela’s expensive appetite for farming idea is going to help all agriculture tive, just three of eight tractors were operat- imported food and making the country self- here in Venezuela. Growing those crops on ing. All the equipment is very old,” a Cuban sufficient in food production. Avenida Bolívar is not a good way of helping sugar expert told Reuters. Added Juan Varela The president’s use of his military to imple- solve agricultural problems in Venezuela. Pérez, Cuba’s top sugar reporter: “Not every ment this project is consistent with his “Cuban technology has been developed in province and mill is performing as expected.” deployment of Venezuela’s armed forces to countries where land is limited,” he added. Cuba’s 2002-03 raw sugar production was conduct a variety of social projects as part of “We are not facing that problem. We have a the lowest in more than 70 years and followed his so-called “Bolivarian Revolution.” lot of land in Venezuela.” the shuttering of 70 of the island’s 156 mills One site for this project is a 1.2-acre plot of Some Venezuelans also question the man- and the halving of its plantations. land called Bolívar, located in the Bellas Artes ner in which food imports are being conduct- CUBA URGES RICE FARMERS TO ‘THINK SMALL’ district of Caracas and just a stone’s throw ed. Items such as chicken from Brazil, wheat from office towers and museums. There are flour from Italy and beans from China are Cuba is attempting to boost rice production now around 4,000 “microfarms” throughout reportedly being transshipped through Cuba by encouraging cultivation in small paddies Caracas (many consisting of nothing more on their way to Venezuela, often in sacks through a program involving 190,000 farmers than one-meter-square shallow trays), as well bearing political slogans about Che Guevara across the island. as 21 hectares of compost-based vegetable and the Cuban revolution. More than 130,000 hectares are already planted with rice as a result of the initiative, reports IPS. This is likely to increase with the Zapatero victory may help mend Cuba-Spanish ties incorporation of fallow farmland and sugar- cane fields that have been abandoned since a Fidel Castro hopes to improve bilateral with Latin America. downsizing of Cuba’s sugar industry in 2002. relations with Spain’s incoming socialist gov- “If he does,” Allende told reporters, “it will Another 30,000 hectares of rice belong to ernment that deteriorated dramatically under result in improved relations with Cuba.” the outgoing conservatives. Spain is already the largest foreign investor public entities that benefit from strong infra- But the Cuban government insists that in Cuba, led by companies such as hotel giant structure but lack the organization necessary Spain must first acknowledge that EU sanc- Sol Meliá and oil consortium YPF Repsol. to improve yields and reduce costs. tions against Havana are mistaken. But it’s not clear if the Zapatero victory will Nearly 60% of the 670,000 tons of rice con- Cuba’s ambassador in Madrid, Isabel quickly translate into an improved investment sumed annually by Cubans must be imported Allende, cited what she called “objective con- climate for Spanish companies in Cuba. — mainly from Vietnam, China and increas- ditions” for bilateral improvement following “Investing in Cuba has its own dynamics,” ingly the United States. the Socialist Party’s surprise victory in a Spanish official in Havana told CubaNews. Even so, rice output in Cuba has grown Spain’s Mar. 14 general elections. “I don’t see how the change of government more than 10% annually in the past five years. Following his defeat of Jose María Aznar, in Spain will affect the investment climate,” “This mode of producing rice in small par- whom Castro had called a “little Führer,” said the official, “and I don’t know how favor- cels and its coexistence with the state model Socialist leader José Luís Rodríguez Zapatero able Zapatero will be to the Cuban govern- is an example of the realistic and pragmatic expressed a desire to boost Spain’s relations ment. I think it’s too early to say.” approach that is opening a strategic direction for Cuban agriculture,” a local expert told IPS. 8 CubaNews ❖ April 2004 NEWSMAKERS Pedro Alvarez: Cuba hungry for American food imports

BY LARRY LUXNER after 9/11 without expecting anything in discussed, as well as transportation, insur- return, is what made it possible.” ance and currency costs. None of this has little-known commodities expert just a publicly been confirmed.” few years ago, Pedro Alvarez has rapid- Since then, U.S. farm sales to Cuba have skyrocketed, from $4.4 million in 2001 to Kavulich, who helped organize the Septem- A ly become one of the most important ber 2002 U.S. Food & Agribusiness Exhibi- bureaucrats in Cuba. $175.8 million in 2002 to $343.9 million last year (see chart, page 9). So far this year, U.S. tion in Havana but has not been back to Cuba These days, it seems Alvarez is quoted since then, claims Alimport is under “sub- more frequently in the U.S. media than any companies have sold Alimport around $100 million worth of commodities, with the total stantial pressure from certain entities within other Cuban official including Fidel Castro. the Cuban government” to exaggerate. That’s because of a barrage of press releas- this year expected to top $400 million. But are these numbers to be trusted? “Pedro Alvarez is a capable manager, but es issued every time a U.S. port signs a he’s been thrust into a political role, and “memo of understanding” with the Cuban every transaction must be seen within a polit- government, or a prominent state governor or ical context,” he said. “Companies are increa- member of Congress visits the island and singly resentful of the political pressure that’s urges an end to the embargo. being put upon them to engage in advocacy As chairman and CEO of the Cuban Minis- LARRY LUXNER regarding U.S. policy toward Cuba. Some try of Foreign Trade’s Empresa Comercializa- companies have had their contracts reduced dora de Alimentos (Alimport), Alvarez is one because the Cuban government told them of the very few Cuban officials authorized to they weren’t being active enough in opposing sign contracts directly with U.S. companies. the U.S. embargo. That doesn’t make for a Since late 2001, Alvarez claims Alimport healthy commercial environment.” has purchased $612.5 million worth of U.S. commodities ranging from fresh fruit and fer- CUBA NOW 35th IN PURCHASES OF U.S. FOOD tilizer to peas and powdered milk (see table Controversies aside, both Alvarez and his below). This total, which includes $36 million critics agree that over 95% of Cuba’s purchas- in shipping and $38.5 million in finance costs, es from the United States until now have con- could easily reach $1 billion by the end of this sisted of 10 basic commodites such as wheat, year, he says. flour, rice, frozen poultry and soy products. “Business continues, because despite ev- In total, Alimport has contracted for 2.8 mil- erything that’s happened with U.S.-Cuba rela- lion metric tons of food, paper, wood products tions, American law permits these exports,” and fertilizers (this includes 76.3 million he said. “And ports want this business.” TSRA has catapulted Pedro Alvarez to fame. eggs) delivered on 184 cargo shipments — Alvarez spoke to CubaNews in an exclusive, 70% of them on U.S. vessels or those hired by one-hour interview at his office on the third No, says John Kavulich, president of the U.S. companies. floor of the Ministry of Foreign Trade, in New York-based U.S.-Cuba Trade and Econo- These shipments were sent from 18 Gulf of Havana’s Vedado district. mic Council. He insists that TSRA-authorized Mexico and Atlantic ports, including five in ALIMPORT STATISTICS STIR CONTROVERSY food and commodity exports to Cuba since Florida: Port Everglades, Pensacola, Tampa, December 2001 have totaled only $430.1 mil- Port Manatee and Jacksonville. The official, who will host over 100 U.S. lion, not $612.5 million. Last year, Cuba was the 35th-largest market companies Apr. 13-16 for a conference on in the world for U.S. food exports, up from business opportunities in Cuba, has worked Asked to explain the discrepancy, Kavulich told CubaNews that “Alimport includes all 50th in 2002 and 144th in 2000. The United in the Ministry of Foreign Trade since 1960. States is now Cuba’s No. 5 source of imports Among other things, he’s served as vice-com- sorts of additional items that they have yet to provide data to support. They also include the and its 7th-largest overall trading partner. mercial counselor at the Cuban Embassy in One conglomerate alone, Archer Daniels Moscow and commercial counselor at the value of potential purchases that have been Midland of Decatur, Ill., accounts for roughly Cuban Embassy in Sofia, Bulgaria. 30% of the value of total contracts signed with From 1990 to 1998, he was vice-minister of TOP 15 U.S. EXPORTS TO CUBA* Alimport; other commodities giants that have foreign trade, and in 1988 took over the presi- benefitted from TSRA-authorized food ex- dency of Alimport. COMMODITY VALUE ports include Cargill, FCStone, Tyson Foods, Alvarez, 60, had no way of knowing that 1. soy products $137.9 Goldkist and Boston Agrex. within two years, Congress would pass a bill 2. poultry and derivatives 117.9 Smaller companies have also gotten a piece known as the Trade Sanctions Reform and 3. wheat 98.0 of the pie; these range from Sun-Maid Cali- Export Enhancement Act of 2000 (TSRA), one 4. yellow rice 87.6 fornia raisins and Kentucky burley tobacco to of the few loopholes in Washington’s 43-year- 5. soybean oil 64.2 a $180,000 contract by City Seafoods of Los old trade embargo against Cuba. 6. peas and beans 13.0 Angeles for 35,000 pounds of smoked salmon, This legislation — passed in the wake of 7. paper 11.9 frozen shrimp and other delicacies. Hurricane Michelle — allowed Cuba for the 8. powdered milk 10.4 Alvarez said Alimport would soon sign its first time to buy U.S. farm commodities on a 9. branded supermarket products 7.0 first urea contract, worth $1.2 million, with a cash-only basis to help feed its 11.2 million 10. flour 5.6 Florida company, though he declined to name people. Alimport was quickly designated the 11. wood and derivatives 4.3 the company or say where it was based. sole authorized buyer for such food. 12. dicalcium phosphate 4.0 “To date, we have contacted 2,900 compa- “After Hurricane Michelle, the U.S. offered nies and have signed with 125 of them,” he to help Cuba for the first time,” said Alvarez. 13. eggs 3.1 said. “I want to buy all the products that are “Michelle provoked the beginning of trade, 14. pork and other meat 2.2 authorized for us to buy, as well as those that but the goodwill of U.S. companies, together 15. fresh fruit 1.3 aren’t authorized.” with our goodwill in offering the U.S. help *total exports since 2001 in millions of dollars. Source: Alimport. How does Alvarez decide who to do busi- April 2004 ❖ CubaNews 9 ness with, and what to buy? ver platter to the competition,” he said. ties. I am simply a businessman, but I have “When a businessman comes to Cuba, we “That’s why there’s interest on both sides to the possibility of buying tens of millions of consider whether his products are what we do away with restrictions. I’ve heard many dollars of products.” need to buy,” explained Alvarez, who has 140 Americans including businessmen, congress- In the meantime, Alimport is also turning employees working under him. “We have pur- men, senators and port officials say you have to Latin America. Thanks to the recent elec- chased 300 different commodities, and we’re to be blind not to see that there’s a natural tion of two Castro allies — Argentina’s Nestor ready to buy more. But we lack knowledge need to eliminate the restrictions.” Kirchner and Brazil’s Luiz Inacio “Lula” da about U.S. companies, and those companies If that happened, he said, Alimport could Silva — both countries have seen a jump in are limited in showing their products because source up to 60% of its $1.2 billion annual food food purchases by Cuba. the procedure to participate in trade fairs and bill from the United States. Last November, Alimport bought 50,000 exhibitions is so complicated.” “It’s evident that it is in the interests of the tons of Argentine wheat for nearly $9 million, Alvarez told CubaNews that U.S. law forces United States and Cuba to normalize rela- which it paid for in cash. It’s also negotiating Alimport to pay 20% more for food than it tions,” Alvarez told us. “Commerce will bene- to buy meat products, mainly chicken and sausages, as well as cereals, soy and dairy products, canned food and cattle, from both Argentina and Brazil. Asked about persistent allegations that “U.S. law punishes U.S. companies more than it punishes Cuba. Alimport has stiffed its loyal Canadian and European food suppliers in order to pay cash They’re handing a silver platter to the competition. That’s why to U.S. commodity exporters for political rea- there’s interest on both sides to do away with the restrictions.” sons, Alvarez had this to say: “Alimport is complying with its obligations — PEDRO ALVAREZ, CHAIRMAN AND CEO OF ALIMPORT to our suppliers, and even better than in pre- vious years. We respect the commitments we have with suppliers from other countries. Nevertheless, trade with U.S. companies will should, because of the TRSA requirement fit both countries. It generates jobs, and won’t continue to grow and grow.” that all purchases must be in cash, up front. hurt U.S. companies to be able to supply prod- This year, says Alvarez, Cuba will buy $250 “U.S. companies can’t give us credit, and ucts to Cuba. It also wouldn’t hurt if people million more from all sources than last year, banks in the U.S. cannot do business with were able to travel to Cuba. We care about reaching $1.2 billion in total food purchases. Cuba. So I can’t pay directly to U.S. compa- tourism because to be able to buy food for the And where does all this food end up? nies,” he complained. “We have to go through people, we need money, and that money “More than 95% of the purchases that we Europe. If the procedure is through a bank in comes from tourism and exports.” make in the U.S. are destined to the subsi- Europe, there’s a time difference, and that dized peso market,” he said. “The remaining causes delays of five or six days.” LOOKING TO LATIN AMERICA 4-5% are products that are sold in the dollar He added: “The boat may be in Cuba, but it stores. These products are more expensive, can’t unload merchandise until I pay. Cuba Alvarez isn’t pushing only for the right of and that difference helps pay for the subsi- has lost more than $18 million because of U.S. citizens to travel to Cuba. He also wants dized products.” delays and currency exchange since trade the right to visit the U.S. on official business. Alvarez acknowledges that Alimport charg- began. This means less food for our children.” “I have been to 45 countries, and twice in es a substantial markup in the dollar stores — It also puts American firms at a disadvan- the United States. Unfortunately, the last few sometimes as high as 240%. tage vis-a-vis their Canadian, European and times I’ve applied for a visa, I was denied,” he “The markup varies according to the prod- Asian rivals. said. “Once they gave me the visa and then uct,” he said. “But that difference goes to pay “U.S. law punishes U.S. companies more withdrew it. For me, being able to visit the for subsidized food. In other countries, it than it punishes Cuba. They’re handing a sil- U.S. would allow me to widen our business would line the pockets of corrupt officials.”

ALIMPORT TO BUY MORE CATTLE FROM FLORIDA FIRM aples-based J.P. Wright & Co. said win, owner of the Baldwin Ranch in Ocala, Mar. 26 it has reached an agreement which is providing the additional 50 cattle. Nwith food purchasing agency Alimport In addition to the Baldwin Ranch, 80 Bran- to add 50 Florida cattle to its existing deal for gus heifers will come from the Strickland 250 animals. The shipment of the 300 head Ranch in Manatee County, 80 Brafords from will be the first of its kind from Florida to the Adams Ranch in Ft. Pierce, 81 Beef Mas- Cuba in over 40 years. ters from other Florida ranches and three “We’re continuing to rekindle the historic bulls from each breed. trade relationship Florida once had with The total shipment, which now includes Cuba,” CEO Parke Wright said in a prepared 288 head of cattle and 12 bulls, is scheduled statement. “Through this cattle shipment, to depart from either Tampa or Port Manatee we’re rebuilding a foundation for the supply in the second quarter of 2004. and transportation of agricultural commodi- Wright, whose family had extensive busi- ties and livestock from Florida to Cuba.” ness ties with pre-revolutionary Cuba, last Wright originally planned to ship the 250 August sent a total of 150 head of New York head in March or April in a deal worth and Pennsylvania dairy cattle to the island in $300,000, but the shipment was delayed two shipments, one from the Port of Jack- because of a single case of mad-cow disease sonville and the other from Port Everglades. discovered in Washington state late last year. Details: J.P. Wright & Company, PO Box “Cuban ranchers will find our Black Angus 649, Naples, FL 34106. Tel: (239) 269-5060. to be strong and healthy,” said Leroy Bald- Fax: (239) 649-7840. E-mail: [email protected]. 10 CubaNews ❖ April 2004 MEDICINE Orbis International brings its ‘flying eye hospital’ to Cuba BY LARRY LUXNER ties of cornea, cataract, oculoplastics, glauco- Since its founding in 1982, Orbis estimates leven-year-old Giselle Pérez Elias of ma and pediatric ophthalmology. it has trained over 63,000 medical profession- Manzanillo lay in her hospital bed, dood- “The whole point of Orbis is not to come in als through training programs in 72 countries E ling on an electronic sketch pad as she and do 500 cataract surgeries in three days,” aboard the DC-10, as well as hospital-based awaited cataract surgery in her right eye. she said. “We do quality surgeries to teach programs in 82 nations. Orbis has also estab- Down the hall, doctors were already oper- new techniques, or affirm techniques that are lished long-term country programs in China, ating on a 7-year-old girl, their powerful mic- currently being used. In Cuba, the problem is India, Bangladesh, Vietnam and Ethiopia. roscopes linked to video cameras broadcast- ing the surgery to 150 eye specialists in a nearby conference room. What made this operation unusual wasn’t the patient or the procedure, but where it was taking place — inside a big white jet parked LARRY LUXNER on the tarmac at Terminal 2 of Havana’s José Martí International Airport. The DC-10 “flying eye hospital” is owned an operated by Orbis International, a New York- based nonprofit group that seeks to eradicate preventable blindness worldwide by 2020. On Mar. 17, Orbis and its 42-member team wrapped up a four-week program in Havana and Manzanillo, a city in the eastern province of Granma, treating patients for everything from cataracts to glaucoma. Surgeries took place not only on the DC-10, which costs $160,000 a week to operate, but also at a Hav- ana hospital, in a humanitarian effort coordi- nated with Cuba’s Ministry of Public Health. Brooke Johnson, the organization’s DC-10 communications manager, said this mission marked the fifth year Orbis has visited Cuba; Surgeons operate on a 7-year-old girl aboard Orbis International’s DC-10, while Cuban opthalmolo- previous missions took place in 1991 (Hav- gists watch the procedure via video hookup from a room at Havana’s José Martí International Airport. ana); 1997 (Santiago de Cuba); 1999 (Ciego de Avila); 2000 (Matanzas and Holguín) and access to international experts.” Carlos Solarte, DC-10 chief ophthalmolo- 2001 (Camagüey). That’s why Orbis has on its staff some of gist at Orbis, said the organization first came Orbis averages four operations a day on the the world’s leading ophthalmologists and eye to Cuba at the invitation of the island’s quasi- converted DC-10, and three to five proce- surgeons, including experts and volunteer governmental Ophthalmic Society. He esti- dures per day in the hospital. In Cuba, partic- faculty members from Argentina, Canada, mates that Cuba has 46,000 cases of preventa- ular emphasis was placed on the subspecial- Israel, Great Britain and the United States. ble blindness, 80% of which could have been prevented. “Every time we come here, we’re invited to OFAC stops U.S. doctors from attending Havana meet return,” said Solarte, noting that Orbis has al- and also elicited outrage from the Associa- so done similar programs in Jamaica, St. Kitts, he U.S. Treasury Department’s Office Trinidad & Tobago, Venezuela, Colombia and of Foreign Assets Control last month tion of Travel Related Industry Professionals (ATRIP), a Washington group lobbying to lift the Dominican Republic. T blocked a group of 70 U.S. doctors and Orbis International’s DC-10, the only air- researchers from attending an international the U.S. travel ban against Cuba. “To prevent well-intended Americans from borne medical facility of its kind, has a com- conference in Havana. plete onboard operating room, laser/exam The scientists were supported to partici- traveling to Cuba for legitimate and laudable scientific and academic purposes is disturb- room, substerile room, recovery room, tech- pate in the Mar. 9-12 Fourth Annual Sympo- nical training center, and a 48-seat classroom sium on Coma and Death. But OFAC yanked ing, to say the least,” fumed ATRIP’s chair- man, Michael Zuccato. equipped with an audiovisual system. the group’s travel license a few days before Both Fidel Castro and former President the scientists were scheduled to depart. Molly Millerwise, a spokeswoman at the Treasury Department, declined to elaborate George H.W. Bush have on separate occa- Stuart Youngner, a Case Western Univer- on the reasons behind OFAC’s decision, tell- sions visited the aircraft, which Orbis bought sity professor who organized the event, told ing CubaNews “we are unable to comment in 1991 for $14 million. the New York Times that the Bush adminis- on individual cases.” But Orbis, which has an annual budget of tration wants to limit their access to work in Separately, OFAC has ordered the Center $23 million, studiously avoids getting dragged countries like Cuba that oppose U.S. policy. for Cross-Cultural Study in Amherst, Mass., into political or religious debate. “They’re trying to punish these countries to “cease and desist” its Cuba study-abroad “We’re not a political or church organiza- they’ve identified as evil,” he said. “But the program, which has been operating under tion,” said Johnson. “We just do eyes.” end result of this is an infringement on aca- an educational license since 1996. On the other hand, it’s hard for Orbis to demic freedom, our freedom as citizens to In response, the Latin America Working completely steer clear of controversy. travel and also damaging to science in the Group says “punishing students who are Marcelino Río Torres, director of Havana’s United States and around the world.” studying Spanish in Cuba is a tragic misuse Ramón Pando Ferrer Ophthalmological Hos- OFAC’s decision made headlines in Cuba, of OFAC resources.” pital, claims that when Orbis first proposed See Orbis, page 11 April 2004 ❖ CubaNews 11 RETAILING Bahama-based retailer John Bull mulls Cuban expansion he John Bull Group, a leading duty-free es by Rado, Gucci, TAG Heuer and Citizen only real competition is Coral Negro, a Cuban retailer in the Bahamas, says it may that start at $60 and go as high as $1,500. entity that sells watches and jewelry. But that T open a third luxury boutique in Cuba The stores also offer two lines of Colom- chain sells Seikos and Swatches, and “they’re — nearly 10 years after inaugurating its first bian leather goods (Carib Style and III not in the same ball park as us,” he said. Cuban outlet in Varadero. Milenio), and generic gold and silver jewelry, “We do have a concession for perfume, but “Business is increasing and tourism is as well as a line of Aztec-inspired jewelry from we found after a few years that it really wasn’t growing. This whole area is being developed Colombia called L.A. Cano. worth continuing. If we had four or five out- with hotels and trade centers,” said Mike Rus- Russell said John Bull’s prices in Cuba are lets, maybe it would be worthwhile,” he said. sell, the chain’s foreign operations manager. no different than in Nassau. “We couldn’t “We have to see how things go.” “The Cuban people are making more money, have products in Cuba selling for more than While it may not have much competition, so there’s more money to spend.” in the Bahamas under the John Bull name,” John Bull isn’t the only upscale retailer in Russell told CubaNews that “we’re looking he said. “It would give us a bad reputation.” Cuba. Italy’s Benetton Group is already pres- for possibilties and locations,” though he ad- John Bull’s Havana store, opened three ent in Havana and Varadero, and last Novem- ded that any expansion of John Bull in Cuba years ago, is located at the intersection of ber, another Italian retailer, Paul & Shark, would likely be limited to Havana. Calle 84 and Tercera Avenida, in the heart of opened an outlet in Old Havana, along Calle John Bull, founded in 1929, now has 17 out- Miramar’s rapidly growing business district, Muralla between San Ignacio and Mercadero. lets throughout the Bahamas — principally in and only a few blocks away from the Miramar Like John Bull’s ventures, the Paul & Shark Nassau, Paradise Island, Abaco and Eleuthra. Trade Center. As such, the store attracts not franchise — which sells men’s and ladies’ An 18th outlet is opening later this month at only tourists but also foreign diplomats and sportswear — is a 50-50 venture between the the Four Seasons Resort in Exuma. local Cubans with access to dollars. Cuban government and Paul & Shark’s parent The chain also has two boutiques in Cuba: Russell conceded that it’s difficult to work company, Dama SpA of Italy. one in Varadero, the other at the Galeria in Cuba due to the complicated government “The store is doing quite nicely,” said Bob Comercial Comodoro, a shopping complex bureaucracy; the lack of incentives for sales Garey, president of Paul & Shark USA in New attached to the Hotel Comodoro in Havana’s employees doesn’t help, either. York. “We do a global collection, and our Miramar district. Both shops measure around “We try to educate them as far as sales,” he stores are consistent throughout the world in 104 square meters. said delicately. “What motivates salespeople terms of furnishing, presentation and product John Bull is in Cuba thanks to a joint ven- are incentives, but because of their system of mix. We ship to 60 countries around the ture with Tiendas Universo S.A., a division of government, everybody is supposed to be on world, and now including Cuba.” Cuban state tourism agency Cubanacán. an equal footing, so they don’t want one per- Paul & Shark already has similar outlets in Universo operates the stores and provides son making more money than the next.” Miami’s Bal Harbour as well as Cancún and the employees, while John Bull supplies the Russell, who declined to specify how much Paradise Island in the Bahamas. goods. The product portfolio includes watch- his company has invested in Cuba, said his – LARRY LUXNER

decides which cases it will handle based on a Orbis — FROM PAGE 10 selection criteria it has developed in the orga- coming to Cuba in 1991, the U.S. State nization’s 22 years of existence. Department held up its application for several “These cases need to match the needs of months before relenting. the country in terms of specific topics and “Then, in 1995, we sent three doctors to techniques that doctors want to learn. In Man- study at the Bascom Palmer Eye Institute for zanillo, they wanted to learn more about adult 15 days, but the Miami mafia threatened to cataracts, so we did two full weeks of surgery put a bomb in the hospital. So our doctors had for cataracts, glaucoma and eyelid disorders.” to leave the program,” he said. “This kind of During the surgeries, several dozen physi- cians followed along on a large-screen TV as thing only happens in the banana republic of they sat in coach class. Miami. Our ophthalmologists have done Many more watched from a waiting room at training at Harvard, Memphis and New York, the airport’s Terminal 2, thanks to a complex and we’ve never had any problems.” video hookup mounted on a tripod atop the Asked about the incident, Bascom Palmer DC-10’s left wing. spokeswoman Cynthia Birch said her staff Orbis doctors speaking in English and had no recollection of anybody ever threaten- Spanish narrated the procedures, pausing fre- ing to bomb the institute. quently to take questions from their audience. Whether true or not, there’s no question ment says no,” he complained. “As a result, our surgeries take twice as that the U.S. embargo has made it hard for On the other hand, these problems don’t long as normal,” Solarte explained, adding Cuba’s 620 ophthalmologists to get the sup- directly affect Orbis, which is warmly wel- that all surgeries “are completely interactive.” plies they need to treat their patients. comed by both Cuban government officials Orbis says its efforts in Cuba will continue Rio Torres said Cuba needs to buy special- and the general public. through hospital-based and plane-based train- ized syringes from Novartis, a Swiss compa- “With Orbis, we have the opportunity to ing programs, fellowships and the dissemina- ny, but that one of the syringe’s components have a scientific exchange with the U.S.” says tion of educational materials, as well as an is made by a single manufacturer in the Río Torres, whose hospital employs 60 oph- innovative project to bring Cuba’s eye bank United States and that the Treasury Depart- thalmologists and treats over 1,000 patients a up to international standards. ment’s Office of Foreign Assets Control has day at no cost. “The objective is not to operate Details: Tamara Hood, Orbis International, blocked the component’s export to Cuba. on patients, but to pass along scientific train- 520 8th Ave., 11th Floor, New York, NY 10018. “Since last year, we have been trying to buy ing and to demonstrate the latest techniques.” Tel: (646) 674-5570. Fax: (646) 674-5599. E- this component, but the Treasury Depart- Solarte, a native of Colombia, said Orbis mail: [email protected]. URL: www.orbis.org. 12 CubaNews ❖ April 2004 should take military action against Castro. all cases and we have not been sufficiently BUSINESS BRIEFS According to the Miami Herald, 66% of re- strict in terms of enforcement.” spondents said they don’t support the Varela Among other things, the order says “state ECONOMY OFF TO GOOD START IN 1Q 2004 Project, while only 18% said they support it. vehicles are for work and should not be Led by Canadians, tourism arrivals to Cuba An unrelated poll conducted last year for the adorned, nor have dark glass, nor use unnec- jumped by over 10% during the first quarter of Cuba Study Group showed vastly different essary accessories. Air conditioners are 2004, while nickel and cobalt prices stayed results. In that poll, in which Cuban-American authorized only for protocol.” near historic highs, sugar production was voters were simply asked their opinion of the slightly above the year-ago period and agricul- Varela Project, about 59% said it was good, HONEY PRODUCTION RISING IN SANCTI SPÍRITUS ture — especially citrus — continued recover- while 25% said it was bad. Production of honey for export is rising at a ing from the hurricanes of 2001-02. Not surprisingly, the CDA survey has drawn processing plant in Sancti Spíritus province, These positive factors were somewhat offset a fair amount of criticism. reports Cuba’s Ministry of Agriculure. by high oil and food prices and perhaps the “The very one-sided way in which the ques- The plant has so far this year processed negative impact of centralization. tions are asked really leads the respondent to 1,266 tons of honey, “much more than last Even so, the quarter registered over 3% an answer,” Mark Schulman, past president of year” — though how much more wasn’t dis- growth on an annual basis, according to local the American Association for Public Opinion closed. Honey is increasingly being produced analysts, helped by a seasonal decline in food Research, told The Herald. “I can say that this from the blossoms of orange and red man- prices. Otherwise, life for most Cubans con- particular survey is useless in determining grove trees, which are in high demand both in tinued as a day-to-day struggle to make ends attitudes toward Cuban policy.” Cuba and abroad for its medicinal qualities. meet and get from one place to another. A separate poll conducted by Florida Inter- The factory, located 350 kms east of Havana, national University showed that the farther LABOR MINISTRY RELEASES JOB STATISTICS exported 4,257 tons of honey last year, well north Cuban-Americans move within Florida, over half of Cuba’s total of 7,000 tons. The Almost 20% of Cuba’s labor force, or some the less likely they are to maintain strong island expects to ship to Europe and Canada 900,000 people, work for themselves or in emotional ties to the island. up to 10,000 tons of honey in 2004. cooperatives, according to the Labor and In Miami-Dade, 47.2% of those polled by Social Security Ministry. FIU said they aren’t likely to return to Cuba. BOOK FAIR GENERATES $3 MILLION IN SALES Of Cuba’s 4.6 million-strong labor force, 3.7 In Broward, the certainty is even greater, with 54.5% saying they’d never go back. The 13th International Book Fair in Cuba million people work in the public sector, says concluded with sales of over $3 million, and the ministry’s annual report, published in the On the other hand, over 42% of Cubans in Broward said they’ve been criticized for attendance of 3.5 million people in 34 localities weekly newspaper Trabajadores. These fig- throughout the island. ures put the unemployment rate at 2.3% and speaking Spanish in public, while only 31% shared that experience in Miami-Dade. At the fair’s closing in Santiago de Cuba, represent a condition of “full employment” in Iroel Sánchez — president of the Cuban Book the country, says the paper. IRAN TO EXPORT CARS, SHOES AND TEXTILES Institute (ICL), said “the impact caused by Of the more than 128,000 new jobs created this party of knowledge was enormous.” in Cuba last year — most of them filled by Iran will soon begin exporting automobiles to Cuba, said Tehran’s envoy in Havana, Over 3.2 million books were sold and 6,642 young adults and women — 48% of them were activities held; 120 Cuban publishing houses in the island’s eastern provinces. Ahmad Edrisian. The diplomat, following a Mar. 24 meeting with Foreign Trade Minister and 33 from other countries supported this MIAMI POLL: HARDLINE ATTITUDES PERSIST Raúl de la Nuez, also said Iran plans to sign cultural event, according to data provided by joint ventures with Cuba for the production of the organizers. A new Miami-based Cuban exile group has Sánchez said some European governments commissioned a poll that reaches the follow- shoes, textiles and possibly plastic bags. Nuez, noting the presence of Iranian compa- tried to “disrupt” the fair. However, he stated ing conclusion: most Cuban-Americans main- that “the foreign response was superior than tain hardline attitudes towards Fidel Castro nies during the upcoming Havana Internatio- nal Fair in November, said Cuba welcomes a expected, headed by intellectuals, publishing and want the U.S. embargo to continue. houses, and friendly organizations.” The Feb. 16-24 survey of 600 Cuban- boost in commercial ties with Iran. American registered voters in Miami-Dade Details: Embassy of the Islamic Republic of MEDICC NEEDS EXECUTIVE DIRECTOR and Broward counties was conducted at the Iran, 5ta Ave., #3002, Miramar, La Habana. Tel: +53 7 204-2597. Fax: +53 7 204-2770. Atlanta-based Medical Education Coopera- behest of Cuba Democracy Advocates (CDA). tion with Cuba (MEDICC) is seeking candi- It showed that nearly 46% of respondents CRACKDOWN BEGINS ON USE OF STATE CARS dates to fill the position of executive director. between 18 and 39 years old say the U.S. Inspectors will be fanning out across Cuba Established in 1997, MEDICC lets partici- this month, checking that executives of Cuban pants observe innovative health practices in BUSINESS GUIDE TO CUBA state-run companies have complied with a Cuba, where health indicators are on par with January order that they assign themselves and developed countries despite scarce resources. The Business Guide to Cuba is the most their employees only certain types of cars, and MEDICC programs are authorized by the U.S. comprehensive research report on Cuban stripped-down versions at that. government and implemented in cooperation business and politics available today. Cars with brown government license plates with Cuban medical institutions. With more than 300 pages of exclusive (top executives and bigwigs) are better off Applicants for the executive director, who information, data, charts and maps on all than those with blue state plates, since cops will assume overall leadership and administra- productive sectors of the economy — as generally don’t harass their drivers. tive responsibility for MEDICC, should have well as a list of official contacts, business The brown license plates were introduced an advanced degree in business, social sci- practices and even Cuban street slang — two years ago amidst a crackdown on the use ences, health sciences or a related field. the Business Guide to Cuba is your No. 1 of state-owned cars, which represent 50% of The ideal candidate will have a proven track resource on potential investment opportu- Cuba’s estimated 750,000 vehicles. record in board management and human nities and pitfalls in this emerging market. resources; excellent writing, public speaking Copies of the guide are available for only The January order states in part: “In the $99 each, shipping and handling included. process of reorganizing the license plate sys- and Spanish language skills, and five years of To order your copy, call us toll-free today tem, brown was introduced to facilitate and management experience; salary negotiable. at (800) 365-1997, fax us at (301) 365-1829 distinguish the efforts of a certain number of Details: Dr. Peter Bourne, MEDICC, Emory or send an e-mail to [email protected]. executives and functionaries. Nevertheless, University School of Nursing, 1520 Clifton Rd. Visa, MasterCard and Amex accepted. despite [efforts to] maintain an austere and Room #441, Atlanta, GA 30322-4207. E-mail: modest lifestyle, this hasn’t been achieved in [email protected]. URL: www.medicc.org. April 2004 ❖ CubaNews 13 MEDIA TOURISM BRIEFS OFAC TARGETS TORONTO TRAVEL AGENCY Slick lifestyle mag comes to Havana The Bush administration says Toronto- BY LARRY LUXNER based Hola Sun Holidays Ltd. is linked to the from Cuba, the magazine isn’t subject to re- Cuban government and therefore prohibited avana now has its own answer to strictions under the U.S. embargo, he said. from doing business in the United States. Miami Beach’s Ocean Drive magazine: Financing this project is Ceiba Finance The travel agency “provides easy access to HThe H. Ltd., a British investment fund headquar- U.S. individuals traveling to Cuba,” according The glossy new bilingual magazine made tered in the Channel Islands. to the Treasury Department’s Office of its debut at a Mar. 22 cocktail party at the Sebaastian A.C. Berger, director of Hav- Foreign Assets Control (OFAC). “U.S. law Hotel Riviera, billing itself as “Havana’s ana-based Zapa International Management enforcement officials have intercepted unau- essential lifestyle magazine.” Ltd., said his fund is investing $500,000 in the thorized travelers whose tour packages were Editor-in-chief Rómulo Sans told CubaNews project. The firm, previously known as Beta purchased through this travel agency, which that 1,000 copies of a prototype issue have Gran Caribe Ltd., has also invested in various uses the Internet to advertise and sell Cuban been printed, but that the quarterly magazine hotel, infrastructure and real-estate projects tourism to the U.S. public.” will have a print run of 15,000 to 20,000 once (see CubaNews, December 2003, page 11). OFAC alleges that Hola Sun Holidays is con- it’s in circulation by this September. trolled by “Fidel Castro and his regime.” Yet Sans, a native of Barcelona, said he has 15 the company doesn’t seem all that worried. collaborators on his team including freelance “It’s business as usual,” Daniel Solomon, the writers, graphic designers and photogra- company’s corporate secretary, told the Toron- phers. The most famous of these is German to Star before declining further comment. photographer Sven Creutzmann. According to its website, Hola Sun Holidays “Our objective is to show the world that opened for business in 1992 and is a part of Havana is more than just rum, cigars and Havanatur, an operator based in Havana with pretty mulatas. There’s also a contemporary over 200 employees in Cuba and 90 tour oper- generation of artists, fashion designers and ators in 50 countries. Ironically, it is run by a hip-hop,” he said. “We’re not going to try to man named Fidel Ferrer Castro, who lives in cover topics that have been covered over and Toronto but couldn’t be reached for comment. over. We want to focus on lifestyle, rock-and- Pat Georgiades, owner of Rex Travel, said roll and contemporary art. We won’t talk Hola Sun is one of her preferred wholesalers. about business or politics.” “As far as Cuba goes, they know their stuff.” The 164-page prototype, published in an She said she wasn’t aware of Hola Sun’s unusual square format, boasts outstanding affiliation with Fidel Castro, but doubts that digital photography and paper quality of a Canadian travelers will care. “People want to type almost never seen in Cuba. go to Cuba because it’s a nice destination and And the subject matter is unusual, too. it’s a cheap holiday,” she said. Famous Havana singer Vannia Borges graces OFAC spokeswoman Molly Millerwise said the cover of The H; other feature story-photo the measures are aimed solely at Americans. “I had this on my list of things that were packages explore everything from casting for “Our intention is not to hurt or hinder Cana- Havana’s famous Tropicana cabaret to 1940s- definitely lacking in Cuba, but to say it was my idea is giving myself too much credit,” Berger dian citizens,” she said. era motorized bicycles known as riquimbilys. Last month, CubaNews reported that a Mon- At the back of the book is a comprehensive told us. “It was Rómulo who came up with the idea and the business to make it work.” treal company was among 10 entities singled tourist listing of hotels, restaurants and night- out by OFAC as being owned or controlled by clubs, complete with addresses, phone num- Berger said the team doesn’t need permis- the Castro regime. The entity went by the bers and ratings. sion from the Cuban government to publish Sans said the magazine will be distributed The H, since the whole thing is done outside names Caribe Sol and Havanatur Canada Inc. throughout the United States, Canada, Cuba, “but we have chosen to make it a non- VIRGIN ATLANTIC TO BEGIN SERVING HAVANA Europe and the Americas for roughly $8 to political, non-economic lifestyle magazine” for $10 per copy (or its equivalent in euros). practical reasons. Virgin Atlantic said it plans to begin flying to Subscriptions will cost $30-40 a year for Well over 50% of the new magazine’s rev- Havana and Nassau starting in July 2005. The four issues including postage, though these enue will come from major advertisers such announcement was made by CEO Richard are only estimates since all prices are still as airlines and hotel chains, though Sans Branson, who also plans on hiring 770 being finalized. declined to identify potential advertisers since employees beginning immediately. “We’ll sell the magazine in Cuba by sub- negotiations are still underway. Another idea “Following the last recession, Virgin Atlantic scription only,” said Sans. “We’re working on is to distribute the publication in the business- had annual double-digit growth from 1993- a deal with Infotur so they can distribute it class section of major airlines flying to Cuba. 2000, and we aim to match this level in the here through newsstands, hotels and infor- The H has its own website, appropriately next few years,” Branson told reporters. mation kiosks.” titled www.thehmagazine.com, with cultural MEXICANA TO LAUNCH FLIGHTS TO VARADERO Sans, who worked for several years as an events and other information updated on a art director in New York’s fashion district, is weekly basis. Soon, it could also be accompa- Mexicana de Aviación will soon start flying “negotiating on a few different options” in the nied by its own line of clothing. to Varadero, reports El Sol de Mexico. States, where he says “there’s been huge The big question is: When will The H start Armando Gómez, the airline’s regional man- interest in the magazine.” making money? ager in Havana, said 83,000 passengers flew Advertisements will cost anywhere from “A magazine normally isn’t profitable until Mexicana to Cuba in 2003, in 365 round-trip $3,000 for an inside full page to $5,000 for a Year 3,” said Berger, “so if we can beat that, it operations. The plan is to reach a total of back-page ad and $8,000 for a double-page will be lovely.” 45,000 passengers in the first half of 2004, a spread in the front of the book. Details: Romulo B. Sans, Editor-in-chief, H, 3% increase over last season. H is being printed by Comgraphic S.A. of Calle Manuel Moreno 116, Vilassar de Dalt, Gómez said Airbus A318 jets will join A320 Barcelona, which Sans considers one of the 08339 Barcelona, Spain. Tel: +53 7 264-8181. aircraft on the route between Mexico City and best printers in Spain. Since it is not coming E-mail: [email protected]. Havana, according to the newspaper. 14 CubaNews ❖ April 2004 CULTURE After 7 years, Buena Vista Social Club still drums up sales

BY VITO ECHEVARRÍA of Old Havana. That Cuban musical phenomenon took pushed sales of the place when American guitarist Ry album even higher. “The album be- A Cooder visited the island in 1996 and LARRY LUXNER got a group of veteran son musicians to record came a darling of some tracks at a Havana studio. NPR stations, and The result of that collaboration was the CD that made it very pop- “Buena Vista Social Club,” released a year ular among main- later. Buena Vista consisted of elderly músicos stream audiences,” from the countryside who performed for var- says Billboard music ious Cuban orchestras before the 1959 revo- columnist Leila Cobo. lution and, were for the most part, forgotten. “I also think it ben- Buena Vista was rarely played on tradition- efitted hugely from al Spanish-language radio stations in major the Ry Cooder associ- U.S. markets, particularly on stations con- ation. I would bet that trolled by the Spanish Broadcasting Network if he wasn’t involved, the mainstream would not have paid attention to it, regard- The Buena Vista Social Club performs weekly at Havana’s Hotel Nacional. less of how fine the album was.” Ferrer’s current CD, “Buenos Hermanos,” Indeed, film scenes of Cooder and his son is on the Top 10 list in world music charts. Joachim riding through the graceful but dilap- And Compay’s death seems to have spurred idated streets of Old Havana on a motorcycle further interest in his music; one source says with a sidecar only added to the otherworldly the deceased guitarist’s solo CD sales have appeal of the Buena Vista package. now topped two million units globally. Incredibly, years after Ry Cooder “discov- Raymond Silva, who manages the world ered” Buena Vista, the group is still riding a music section at Tower Records’ flagship wave of commercial success — with a string store in New York, says PBS-TV’s airing of the of solo CDs released by the group’s individual Buena Vista film last fall generated a stream members. These include the Latin Grammy- of new customers. winning singer Ibrahim Ferrer, now 76 years “Buena Vista Social Club was No. 3 old, and guitarist Compay Segundo, who died because it’s been on PBS,” he said. “All the last year at the age of 95 (the group’s pianist, Ibrahim Ferrer CDs are selling well, and Ry Rubén González, passed away in December). Cooder has also sold tremendously well.”

(SBS), which is owned by Cuban-American businessman Raúl Alarcón. Greece debates whether to let Fidel attend Olympics SBS, whose 27 stations include New York’s uba — which dreams of hosting the to visit Mount Athos, an autonomous region “La Mega” at 97.9 on the FM dial, tended to Olympics in 2012 — for now will be of Greece that is home to numerous monas- ignore acts directly from Cuba, whether they C content to repeat its 2000 feat and teries which are open to men only. were elderly musicians like Buena Vista or place among the top 10 medal winners at “He never asked for a visa,” an official at young hip rappers like Orishas. Yet despite this summer’s Games in Athens. the Greek Embassy in Havana told the group’s absence from U.S. radio, an “Our delegation’s main objective is to CubaNews, “though I understand he has unlikely broadcaster came along to air its publicly expressed that he would like to music: National Public Radio. equal or surpass our performance in Syd- ney and remain among the top 10,” José Ra- visit Greece and be present at the Games.” NPR’s predominantly white college-educat- And what if Castro did apply for a visa? ed American audience started listening to món Fernández, president of Cuba’s Olym- pic Committee, told reporters. “It’s not a secret that the Greek govern- “world music” programs that were featuring ment has invited several heads of state, and artists directly from Cuba, as well as an eclec- At the 2000 Games in Sydney, Cuba came in ninth, winning 11 gold, 11 silver and Castro is not included in this list,” said the tic mix of musicians from Africa, Asia and official. He added that even though the list Latin America. seven bronze medals. No fewer than 119 was compiled by the previous government This NPR audience seemed nostalgic for all Cuan athletes have already qualified for this in Athens, “I don’t think there will be a things Cuban, including everything from year’s Olympics, set for Aug. 13-29. The change in favor of Castro.” Buena Vista to contemporary Cuban salseros number could increase because some trials Meanwhile, Cuban officials are trying to such as Los Van Van and NG La Banda — and have not been held yet. lure the 2012 Olympics; they note that Hav- they helped boost Buena Vista’s sales in the But the really big question in Havana is ana hosted the 1991 Pan-American Games U.S. market to 1.6 million CDs (out of a total whether Fidel Castro will even be present at and is relatively free of violent crime. 9 million CDs sold worldwide). the inauguration of the Games. Yet the Cuban capital doesn’t stand much Two years after release of the CD, which Of course he desperately wants to be invi- of a chance against New York, London, won a Grammy, Dutch filmmaker Wim Wen- ted, but Greece — a member of the Euro- Paris, Madrid, Moscow, Leipzig, Istanbul ders produced a documentary on the making pean Union — isn’t exactly eager to host the and Rio de Janeiro — all of which have also of the Buena Vista CD, which included ex- Maximum Leader, given Cuba’s numerous submitted bids for the Games. cerpts of the group’s live performances in human rights abuses of the past year. A final decision will be made in 2005 by New York and the Netherlands, biographies Rumor has it that Castro also would like the International Olympic Committee. on individual members and romantic scenes April 2004 ❖ CubaNews 15 COMMODITIES Sherritt urges rapid nickel expansion while price is high oronto-based Sherritt International Waheed, Sherritt’s chief financial officer. million (38c/share) in 2002. Revenue reached Corp. says it needs to “make something Nickel prices on the London Metal Ex- C$820.8 million, up from C$729.4 million. T happen” by September to get expansion change closed last year up 134% at $7.55/lb., Sherritt said it expects nickel and cobalt pro- of its Cuban nickel project underway, or it will driven by strong demand from China and no duction to remain close to its record levels in miss a chance to take advantage of the recent significant increases in global supply. 2004, with sales closely matching production. strength in world nickel prices. Nickel is a key ingredient in stainless steel, Meanwhile, Cuba’s Ministry of Basic Indus- “We’re sitting down with our counterparts widely used for a variety of products including try says it plans to boost nickel production to in Cuba, and it’s really a matter of negotia- major household appliances. Limited availabil- over 100,000 tons. tions to define the terms that are satisfactory An article in Havana’s weekly Negocios en to both parties,” said Sherritt CEO Dennis Cuba newspaper says the sector expects to Maschmeyer told analysts in a conference call produce 77,000 tons of nickel-cobalt, while in- that was reported by Canadian Press. creasing first-phase production of an expan-

“To me, we either have to make something LARRY LUXNER sion process to 100,000 tons with new prod- happen in the next six months or metal prices ucts of a higher added value. will be too far down the road that we will prob- In 2003, state-owned Cubaniquel produc- ably have lost the opportunity,” he said. tion in two of its plants was higher than the Last year, Sherritt’s mining and processing production capacity for four consecutive facilities in Moa, in Cuba’s eastern Holguín years, exceeding the predicted income and province, produced 7,715 metric tons in the beginning the construction of a mineral trans- fourth quarter and 32,042 tons of nickel plus porter in Cuba’s eastern zone. cobalt contained in mixed sulphides for the Angel Roberto Hernández Palau, general whole year. Sherritt’s joint-venture nickel refinery in Moa. manager of the Cubaniquel Business Group, That compared with 8,159 tons during the told the newspaper that after the first phase, fourth quarter of 2002 and a record 33,382 ity of stainless steel scrap, strong stainless there would be a second phase of 7-10 years to tons for all of 2002. Sherritt attributed the steel demand and limited new nickel produc- boost production to 150,000 tons annually. lower production rates to lower-grade ore and tion are expected to continue giving strength His statement was apparently based on data additional maintenance activities in 2002. to the market. from 2002, when the firm produced 75,234 Sherritt has repeatedly said it believes ex- The highly secretive Sherritt said in mid- tons of nickel-cobalt and 25,000 tons of pansion of the Cuban operation represents March that its annual profit nearly doubled in chromium, with efficiency levels similar to the world’s best nickel laterite opportunity. 2003 on record revenues, helped by higher those registered internationally. But last year, “I think everybody keeps looking at every- prices for some of its key commodities, partic- production fell 4.7% despite higher income body else to see what is the right return and ularly nickel and cobalt, slightly higher vol- from a boost in commodity prices. the right nickel and cobalt price assumption umes in its metals business and the reorgani- Cuba is the world’s 5th-largest producer of to provide that return, and nobody really zation of its coal and electricity businesses. nickel, and Cubaniquel — which accounts for wants to jump the gun and give a concession The company earned C$115.8 million (67c 20% of the world’s cobalt production — ranks that appears to be too big,” said Jowdat per share) for in 2003, compared with C$60.5 sixth among nickel-producing firms.

Oddly enough, Che Guevara began reform- Universities — FROM PAGE 1 ing economic education in Cuba back in 1960. Youngsters to learn English programs are still largely under development. That year, as president of the Central Bank, he Cuban elementary school students from Besides programs in the faculty of econom- complained in a speech that foreigners were the third to sixth grade will start studying ics, other faculties offer undergraduate work running the Cuban economy from South English this year, says an official of the in accounting and finance, largely geared to America and Mexico. Cuban Education Ministry. Then, after the 1962 Law of University the banking industry and auditing firms. Up until now, English was taught only in Reform, the University of Havana shifted from Undergraduate students receive free edu- Cuba’s secondary, senior high schools and cation and books, room and board, with a 50- its traditional emphasis on accounting educa- tion to training economists, albeit schooled in universities. peso-a-month stipend. Like all students, they Laura Basaco, Cuba’s national primary complain about the food, and one described it Soviet-style economics, which emphasized as mainly rice, “badly prepared.” Many stu- more efficient operations of a command econ- school director, told Prensa Latina that dents live in the dormitories built for the 1991 omy — unlike today’s economics which focus classes would be taught on TV in sessions Pan-American Games east of Havana. on market needs. of 45 minutes, before and after which a Students are evaluated and ranked using an In, 1992 after Cuba adopted market reforms teacher will take part to give instructions “escalón” (scale) that includes grades, work in and passed legislation that permitted interna- and check the homework assigned by TV. praiseworthy social endeavors and the extent tional businesses to operate in Cuba, the uni- The English classes for third, fourth and of a cooperative attitude. The latter criterion versity began revising its curricula, leading to fifth grades will be conducted once a week, is heavily influenced by membership in the today’s emphasis on management education. and classes for sixth grade, twice a week. Young Communist League and students are Although Cuba’s management education The teaching method is quite new, and frequently asked, “Eres juventud?” (Are you a may emphasize techniques too heavily — it’s considers age, school level, psychological young Communist?) questionable to build courses around comput- characteristics and the way the students Along with the business administration pro- er programs — the revised curricula are cer- communicate to each other, to attract their grams, the University of Havana also has an tainly a step toward producing graduates attention for learning the language and economics research institute in Vedado that ready to work in the private sector. reach a concentration level in the home- consults for foreign companies and conducts Proponents of market socialism would sure- work assigned every class, Basaco said. periodic management seminars across Cuba. ly be proud. 16 CubaNews ❖ April 2004 CALENDAR OF EVENTS CARIBBEAN UPDATE 0If your organization is sponsoring an upcoming event, please let our readers know! You already know what’s going in Cuba, Fax details to CubaNews at (301) 365-1829 or send an e-mail to [email protected]. thanks to CubaNews. Now find out what’s happening in the rest of this diverse and Apr. 8: “The Outrageous Federal Sugar Subsidy Program,” National Press Club, Wash- fast-growing region. Subscribe to Caribbean UPDATE, a ington. Speakers include Mary Barley of The Everglades Foundation and attorney monthly newsletter founded in 1985. Cor- Robert Muse. Details: Chloe Schwabe, CIP, 1755 Massachusetts Avenue NW, Washington, porate and government executives, as well DC 20036. Tel: (202) 232-3317. Fax: (202) 232-3440. E-mail: [email protected]. as scholars and journalists, depend on this publication for its insightful, timely cover- Apr. 13-16: Alimport business conference for U.S. food-exporting companies, Hotel age of the 30-plus nations and territories of Palco, Havana. Details: Raúl Sánchez, Asesor de la Presidencia, Infanta 16, 3er Piso, Veda- the Caribbean and Central America. When you receive your first issue, you do, La Habana. Tel: +53 7 873-2014. Fax: +53 7 873-3151. E-mail: [email protected]. have two options: (a) pay the accompany- ing invoice and your subscription will be Apr. 19: “Preserving the Hemingway Patrimony in Cuba: Two Experiences.” Harvard processed; (b) if you’re not satisfied, just University, Cambridge, MA. Details: David Rockefeller Center for Latin American Studies, write “cancel” on the invoice and return it. 61 Kirkland Street, Cambridge, MA 02138. Tel: (617) 496-1605. Fax: (617) 496-2802. There is no further obligation on your part. The cost of a subscription to Caribbean Apr. 19-20: Cuba Consultation Days. Strategy planning session co-sponsored by Latin UPDATE is $267 per year. A special rate of $134 is available to academics, non-profit America Working Group, Washington Office on Latin America, members of the Cuba organizations and additional subscriptions Steering Committee. Details: Mavis Anderson, Senior Associate, LAWG, 110 Maryland mailed to the same address. Avenue NE, Washington, DC 20002. Tel: (202) 546-7010. E-mail: [email protected]. To order, contact Caribbean UPDATE at 116 Myrtle Ave., Millburn, NJ 07041, call us Apr. 24-May 8: Cuba Labor Seminar, Havana. Co-sponsored by Confederation of Cuban at (973) 376-2314, visit our new website at www.caribbeanupdate.org or send an Workers. Cost: $1,100 (inc. airfare from Cancún, hotels, meals, field trips to hospitals, e-mail to [email protected]. We accept schools, etc). Details: US/Cuba Labor Exchange, PO Box 39188, Redford, MI 48239. Tel: Visa, MasterCard and American Express. (313) 561-8330. E-mail: [email protected]. URL: www.geocities.com/us-cuba-labor/.

Apr. 27-30: 6th Annual Conference on Sustainable Tourism Development. Sponsored by Caribbean Tourism Organization and Association of Caribbean States. Details: Ricardo Pérez, Palco, Havana. Tel: +53 7 881-8385. E-mail: [email protected].

May 4-8: Expoagua 2004, Pabexpo, Havana. Details: Minerva Ugalde Teyra, Palacio de Convenciones, Havana. Tel/Fax: +53 7 879-6786. E-mail: [email protected]. Editor & Publisher LARRY LUXNER May 21-28: St. Augustine-Baracoa Friendship Association humanitarian mission to Cu- Washington correspondent ba. Cost: $1,100 including airfare. Details: Sali McIntire, PO Box 861086, St. Augustine, ANA RADELAT FL 32086. Tel: (904) 461-3175. E-mail: [email protected]. URL: www.staugustine-baracoa.org. Political analyst DOMINGO AMUCHASTEGUI Jun. 6-9: International Rum Festival 2004, Havana. Event to feature nine rum brands in- Feature writers cluding Havana Club, Legendario, Santiago de Cuba, Varadero and others. Details: Belkys VITO ECHEVARRÍA DOUGLASS G. NORVELL Acosta, Dirección de Exportaciones y Ventas al Mercado Interior, Ministerio de la Industria Cartographer Alimenticia, Ave. 41, #4455, Havana. Tel: +53 7 203-3518 x52. E-mail: [email protected]. ARMANDO H. PORTELA Graphic designer JESSICA MUDJITABA

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