Volume 8 Number 9 A Target Research Publication September 2000

Officials said concerns about the impact of U.S. Relations Real Estate the booming sector on society and a lack of a legal framework governing real estate US pressures Cuba to Real estate projects prompted the decision. There also were growing complaints from ordinary Cubans the negotiating table reportedly moving about the fairness of investing tens of Ana Radelat forward after May halt millions of dollars in housing and office WASHINGTON — After harshly HAVANA — Despite a decision earlier projects aimed at foreign investors at a time condemning Cuba for its migration policy this year to halt most foreign investment in when there is an acute shortage of housing and denying travel visas to one of Fidel the real estate sector, sources in Cuba say in Cuba. Castro’s top officials, the United States construction on a number of projects is At the time, many developers and some managed to persuade Havana to restart continuing and there are reports that government officials said the decision to stalled migration talks. negotiations for new ventures are under- halt new projects would have little long- US and Cuban negotiators plan to meet way. term impact and it now appears they were in New York on Sept. 21 to air grievances The government in May announced right. from both sides concerning migration that it was suspending all new joint Industry sources say construction of the matters. The US delegation to the talks will ventures in real estate and planned to buy Fifth-Avenue Gardens, a joint venture be headed by Bill Brownfield, deputy out foreign partners in existing projects. Continued on page 5 assistant secretary for Western Hemisphere affairs. The agreement to meet for another Inside This Issue of CubaNews round of migration talks comes after months of steadily increasing Cuban protests of a US policy that allows most US, Cuba clash over migration policy Sol Melia increases dominance Cubans who reach US soil to remain. The United States engaged Cuba in a The purchase of the Tryp hotel chain Havana also condemns the 1966 Cuban fight over immigration policy in August by Spain’s Sol Melia gives Cuba’s largest Adjustment Act, which allows Cubans and wrested a promise from Havana to foreign operator and even greater role in immigrants who have lived in the United restartINSIDE stalled migration talks. the country’s tourism sector. States for at least a year and a day to apply See US Relations on Page 3. See Tourism on Page 7. for residency. Cuban President Fidel Castro has said Habanos to maximize profits Cuba, China expand ties the “killer law” draws countless Cubans – Officials at Cuban state cigar company including the mother of Elian Gonzalez – to The government of Cuba and China have Habanos S.A. say the company is shifting its developed broad economic ties in recent their deaths in the Florida Straits. If all priorities away from a rapid expansion of arriving Cubans were repatriated back to the years but efforts to create a political alliance production and toward a focus on maximizing have not been as successful island, the temptation for Cubans to flee revenues. would evaporate, Cuban officials argue. See Diplomacy on Page 10. Since Elian Gonzalez’s return to Cuba in See Tobacco on Page 5. Cuba exported oil in 1999 June, Castro has stepped up his criticism of Keys becoming tourism center the Cuban Adjustment Act and Havana has Despite a continued shortage of oil and held rallies and protests to condemn the US With more than 2,600 rooms, the Jardines del Rey tourist hub has become fuels on the island, Cuba last year exported law. millions of dollars worth of crude. At the The United States engaged Cuba in this the third most important tourist destina- tion in Cuba after Havana and Varadero. same time, Cuba imposed measures fight over migration matters when the State intended to reduce fuel consumption. See Tourism on Page 6. See Tourism on Page 6. Continued on page 2 Migration talks... for Cuban-American voters in Florida. In return for a promise to police Cuban Cuba’s response to the State Department waters to prevent the departure of new Continued from page 1 called the State Department’s criticisms waves of rafters, Washington agreed to issue Department on Aug. 28 sent tough “publicity stunt that suspiciously coincides 20,000 immigrant visas to eligible Cubans diplomatic notes to Cuba’s foreign ministry with visits to Miami by presidential every year. Moreover, the United States and to Fernando Remirez, head of the candidates, who compete for campaign promised to send back to Cuba all migrants Cuban Interests Section in Washington, funds and votes from the terrorist Cuban- intercepted at sea who do not have grounds charging that Cuba has denied legal exit to American mafia.” for an asylum claim. “a large and growing number of Cubans But the State Department official Before Cuba agreed to meet for citizens.” insisted that frustration over Cuba’s migration talks next week, in another hard- The notes said 117 Cubans from 57 indefinite postponement of bilateral line move against Havana, the State families had been denied exit permits by the migration talks prompted the harsh Department refused to give Ricardo Cuban government in a recent 75-day diplomatic scolding. Alarcon, head of Cuba’s national assembly, a period. All had been granted visas to migrate Saying the then-unresolved case of visa to travel to New York for an interna- to the United States. shipwreck victim Elian Gonzalez poisoned tional meeting of parliamentary leaders The diplomatic notes also accused Cuba the atmosphere for negotiations, Havana at scheduled just before the United Nation’s of denying exit permits routinely to the the last minute canceled talks scheduled in annual meeting of the general assembly, families of Cubans who defect to the United New York in June and postponed future which began Sept. 6. Alarcon usually heads States. “The Cuban government is punish- talks indefinitely. The last migration talks, the Cuban delegation at migration talks and ing entire families, including small children, held in December in Havana, were deemed will do so in the next round. for the action of one family member,” it unproductive by both Havana and Wash- Alarcon led Cuba’s U.N. delegation said. ington. from 1966-1978 and again from 1990-199s The State Department’s rebuke also said But three days after receiving the State and has often traveled back to New York to that fees charged by the Cuban government Department’s message, Cuba, in a lengthy attend U.N. functions. But the meeting of to visa holders, for passports, exit permits note to the agency, said it agreed to resume parliamentary leaders was not an official and compulsory medical exams, pose the talks. “Set a date, the most convenient U.N. gathering, the State Department another barrier to legal emigration. The for you, and the Cuban delegation will be maintained. Srdja Bozovic, president of the combined fees usually total more than $500 there,” Cuba’s note said. Yugoslav legislature, was also denied a visa per person. Biannual talks between Havana and under a law that forbids entry if a visit is Cuba countered that more than 100,000 Washington, the highest-ranking diplomatic considered contrary to the interests of the Cubans had been granted exit visas to the meetings between the two nations, have United States. United States since 1994. A State Depart- alternated between New York and Havana Alarcon’s personal assistant, Alberto ment official conceded that figure “sounded since Cuba and the United States signed Gonzalez Rodriguez, was also denied a visa, correct,” but that the blocking of “even one migration accords in 1994 and 1995. The but two, less senior members of Cuba’s legal departure” was unacceptable. accords were reached after a flood of 35,000 national assembly were given travel permits. Anti-Castro rhetoric usually flares in Cuban rafters tried to reach US shores in the Alarcon said the US move showed presidential election years as both parties vie summer of 1994. contempt for him and the parliamentary organization. CUBANEWS is published 12 times per Customer Service: “We have authorized issuance of visas to year by Target Research, L.L.C., © 2000. P.O. Box 19690 some Cuban officials…and determined not Alexandria, VA 22320 Contents may not be reproduced, to issue visas to some people who had republished or stored in electronic retrieval Phone (800) 376-3324 or (703) 684-4317 systems by any means without prior written Fax (703) 684-4059 applied,” said State Department spokeman permission of the publisher. Violators risk Editorial Offices: Philip Reeker. criminal charges and civil fines of up to Ironically, Cuba is slated host the next $20,000 per offense. ISSN 1073-7715 611 Pennsylvania Avenue SE #341 Washington, D.C. 20003 meeting of the parliamentary group, Editor/Publisher – Jason Feer Phone (202) 543-5076 • Fax (202) 546-8929 scheduled in April in Havana. Email [email protected] Alarcon was allowed by the State http://www.cubanews.com Subscription Cost: $429/year Department to accompany Fidel Castro to To subscribe, mail this coupon to the customer service address or fax it to (703) 684-4317. New York for the U.N. Millenium Summit, Name but was denied a request to expand his travel Title to Washington D.C. and South Carolina. Company Unless the State Department gives them permission to travel more broadly, Cuban Address officials attending U.N. events are required City State Zip Code to remain within 25 miles of Manhattan. Phone Number Fax Number Continued on page 8

September 2000 CubaNews 2 sectors continue to pursue their relation- the Hotel Sherburne insisted on a Fidel ships with Fidel Castro’s government $10,000 deposit. Thousands of Harlem despite occasional frustrations. residents took to the streets to cheer the Castro visit marked by A US Chamber of Commerce plan to young bearded guerrillas during that visit. bring a number of Cuban entrepreneurs Castro said he returned to Harlem, diplomacy, little interest to the United States – originally scheduled “because I knew it was here that I would from business leaders for September – was delayed because the find my best friends.” chamber and the Cuban government Castro tried to assume his old role as Ana Radelat could not agree on who should be leader of the Third World during a his Fidel Castro’s low-key behavior at included in the trip. The chamber wanted six-minute speech at the U.N. where he the United Nation’s Millennium to invite owners of family run restaurants, scolded wealthy countries for investing Summit was in marked contrast to his know as paladares, private farmers and massive amounts in military and luxury aggressive outreach to the US business other members of Cuba’s tiny private items and for a “voracious plague of community that characterized the sector to visit restaurant associations and speculation” in stocks and world markets. Cuban leader’s last visit to New York American farms. “There is nothing in the existing five years ago. But chamber spokesman Frank economic and political order that can During Castro’s 1995 trip to attend a Coleman said Cuban officials are serve the interests of humankind,” Castro meeting of the U.N. General Assembly, insisting that Cubans working in joint said. “Thus it is unsustainable and must he received almost 400 invitations, ventures and state enterprises be included be changed.” mostly from business groups, and he in the delegation. The two sides are Castro never referred to the United attended several high-profile events trading lists of possible candidates and States by name, but said the principle of hosted by US business leaders. hope to resolve the issue so a delegation sovereignty must not be sacrificed to “an But this time, Castro spent most of of about 25 Cuban entrepreneurs can abusive and unfair order that a hege- his time cloistered in Cuba’s U.N. come to Washington in October. The monic power” uses to “try to decide mission, visiting heads of state from group may also travel to New York’s everything by itself.” friendly countries, including Malaysia, Cornell University, which has a noted Nevertheless Castro exchanged China, Venezuela and Senegal, and restaurant and hotel school. friendly words with President Bill Clinton attending two closed-door roundtable Moreover, Archer Daniels Midland during an accidental meeting at a recep- sessions on the U.N.’s future. plans to bring five officials from Cuban tion. The leaders of the two rival nations Business analysts in the United States food import and agriculture agencies to chatted briefly and shook hands after said US business leaders have become the United States in mid September. The Castro unexpectedly found himself face- disillusioned with Cuba’s erratic record of delegation will visit Decatur, IL, home of to-face with Clinton at a receiving line. economic reform since 1995, when ADM, and Waco, TX as the guests of the “I couldn’t run away to prevent Havana began overhauling the economy Texas Farm Bureau. One member of the passing by that point,” Castro said. “With and allowing foreign investment. “The Cuban delegation, Maria de la Luz all the courtesy and dignity, I greeted him. feeling in 1995 was a positive one, but Hamel, was scheduled to spend a few He did the same and I moved ahead in after the shootdown (of exile airplanes by days in Washington DC before returning line. It would have been extravagant and the Cuban airforce in 1996) the relation- to Havana. rude to do any other thing.” ship reverted to one of peaks and valley,” During his Sept. 4-9 visit, Castro Clinton characterized the meeting as said one Cuba watcher. appeared in public only once, to give a 4 a quick and devoid of real meaning. In addition, a lack of progress in 1/2-hour speech at Harlem’s Riverside “It just happened, you know?” improving US-Cuba relations has Church. Guests included the Rev. Joan Clinton said. “There were a whole lot of resulted in decreasing interest among Brown Campbell, the former head of the people in line and I was talking to them, some US business sectors as well as the National Council of Churches who and I turned around and he was standing Cuban government in discussing future helped bring Elian Gonzalez’s father to the there. He had apparently come up and trade possibilities, an attorney involved United States and labored for the boy’s waited.” in Cuba issues said. “Both sides are repatriation, and others who oppose the Castro inexplicably left New York in asking: `Why bother?’”he said. US embargo on Cuba, including lawmak- the wee hours of the morning on Sept.9, Many analysts say that in the middle of a ers Reps. Maxine Waters (D-CA) and Jose canceling a meeting with moderate closely-contested election, many US Serrano, (D-NY). Cuban Americans that was scheduled for businesspeople assume there is little prospect Castro’s fondness for New York’s upper later that day. The Cuban Americans met for a quick improvements in relations, west side neighborhood began during his with Cuban Foreign Minister Felipe especially given that there will be a transition first visit to the U.N. as Cuba’s new Perez Roque instead. Castro was accom- of power in the United States. Cuba is president in 1960. During that trip, he panied to New York by Perez Roque and unlikely to be a major priority for whoever was forced to move with the Cuban Ricardo Alarcon, head of Cuba’s national wins the presidential electrions in November. delegation to Harlem’s Hotel Theresa after assembly. Nevertheless, some US business

September 2000 CubaNews 3 allows you to do that.” The Embargo Politics The Dallas Morning News has also had an increasing interest in Cuba and US: sales to Cuba could Cuba approves Havana has sponsored a conference on the US embargo. reach $500 million bureau for US papers CNN opened a Havana bureau in WASHINGTON – Clinton administra- During the U.N. Millenium Summit, 1997 and the Associated Press returned tion officials said that annual agricultural Foreign Minister Felipe Perez Roque the following year. Before that, there had sales to Cuba could reach $300 million to announced that the Cuban government been no permanent US media presence $500 million a year if the US embargo were would allow the Chicago Tribune and the on the island since the Cuban govern- eased and Fidel Castro’s government could Dallas Morning News would to open ment forced the AP to shut its bureau in secure financing for the deals. news bureaus in Havana, joining the 1969. Under current law, US farmers may Associated Press and CNN. The US media companies seeking to only sell their products to private entities The Chicago Tribune plans to use its establish operations in Cuba must obtain in Cuba. Since the Cuban government is bureau to feed all Tribune Co. newspa- a license from the Treasury Department’s virtually the only importer of food, there pers information about Cuba. They Office of Foreign Assets Control to has been little opportunity for trade. include the Sun Sentinel in Fort Lauder- bypass restriction on spending money on American farm groups support a dale, FL and the Orlando Sentinel as well the island. More than a dozen have change in the law that would allow sales to as the flagship newspaper in Chicago. obtained US permission, including the the Cuban government and have secured The Tribune Co. also recently New York Times, the Boston Tribune and majorities in the House and Senate for purchased the Times Mirror Co., owner the Miami Herald, and hope the Cubans proposals to ease restrictions on sales to of the Los Angeles Times, the Baltimore will also eventually agree to let them Cuba. Sun and New York’s Long Island open Havana bureaus. But, Republican congressional leaders Newsday. “The Cuba story is one that Other media companies, such as have resisted any change, even after the needs to be told properly,” Tribune Co. CubaNews, have correspondents on the Senate voted to ease sanctions as part of its CEO John Madigan said. “Being there island but do not maintain bureaus. Agriculture Appropriations bill. House leaders fashioned a more restrictive compromise that would allow agriculture sales to Cuba, but ban the involvement of US banks or insurance companies in the transactions. Whether substantial anti- sanctions legislation comes out of the current Congress will be determined in September by House and Senate conferees during negotiations on a final farm spending bill. Speaking at a press conference on farm exports, Gerald Bange, chairman of the US Agriculture Department’s World Agricul- ture Outlook Board, said “we could see the Cuba market climb to maybe $300 million to $500 million over a year or two, and maybe more over the long term.” However the projection is based on an easing of the 38-year-old prohibition on agriculture sales to Cuba and on Cuba’s ability to obtain access to export credits or other financing. With its agricultural sector a shambles, largely as a result of the end of Soviet subsidies and poor management, Cuba imports at least $700 million worth of food each year. However, some of those imports are arranged through barter deals or other arrangements that do not involve hard currency.

September 2000 CubaNews 4 Tobacco U.S. Relations Real estate ... Continued from page 1 Habanos shifting strategy US food exhibition in between Spanish enterprise Espacio 2000 to maximize profits Cuba postponed and Cuban real estate company Lares, a unit HAVANA — Officials at Cuban state of state conglomerate Cubalse, has resumed Ana Radelat cigar company Habanos S.A. say the company after the government reviewed the project. WASHINGTON – An unprecedented is shifting its priorities away from a rapid The 175-unit project is reportedly 96% US food and agricultural trade show expansion of production and toward a focus sold. It is due to be completed next October. scheduled for the end of the year in Havana on maximizing revenues. The two companies also are reported to has been postponed because the State In recent years, exports have soared from have government approval to start work on Department refused to approve a license for 55 million in 1995 to more than 150 million a 90-unit apartment building in Miramar. the event. last year. Production, which was slated to top Sources also say that state conglomerate Peter Nathan, president of Connecticut- 200 million last year, appears to have stabilized Cimex also has received government based PWN Exhibicon International, began at about 175 million, say Habanos sources. approval to resume work on several real organizing the trade show after the success The rapid expansion of the cigar sector - more estate projects that were in the works of a medical products exhibition in January than 20 rolling facilities have been added since before the halt. in Havana at which about 100 US compa- 1998 - has been accompanied by some Although the Cuban government clearly nies exhibited. complaints about the quality of cigars and is uncomfortable with the possible impact of Nathan said “well over 100” US food came just as a global cigar fad peaked. the real estate boom, it appears that the need and agricultural concerns are interested in At the behest of Spanish-French tobacco to earn hard currency from the profitable exhibiting at the “Food and Agribusiness giant Altadis, owner of 50% of Habanos, the real estate developments is outweighing Exhibition.” But Nathan was denied a company is focusing on expanding output of these concerns. There were reports that the license by the Treasury Department’s Office its highest margin types of cigars, such as National Assembly would be presented with of Foreign Assets Control (OFAC) in April. robustos, piramides and doble coronas. a new real estate law during its July session. Nathan said State Department officials The company also is adopting a more However, the government has been working said the proposed trade fair “is contrary to defensive strategy for dealing with ongoing on a legal framework for the sector for three the wishes of Congress,” despite the fact that legal disputes over trademarks for a number of years and problems dealing with a number large majorities in the House and Senate its brands. Altadis has pressed Habanos to of issues have hampered progress. support efforts to ease trade restrictions on continue introducing new brands as a way of Some of the main concerns relate to the Cuba. GOP congressional leaders, however, generating interest in Cuban cigars and to ability of Cubans to own property. While have vigorously resisted attempts to allow reduce competition from look-alike cigars the apartments aimed at foreign residents even limited trade with Cuba. The State produced in other countries. Producers in the are beyond the means of ordinary Cubans, Department reviews all Cuba license Dominican Republic and other nations in the there have been reports that relatives abroad applications submitted to OFAC. region produce cigars with the same name and have purchased some units for family About a month after the rejection, boxes as some Cuban brands, such as Romeo members in Cuba. In addition, a number of however, OFAC issue a one-year license y Julieta, Partagas and Cohiba. Altadis officials foreign apartment owners have married allowing Nathan to explore “arrangements also believe the new brands – Trinidad, Cuban citizens, opening the possibility those for a potential US Food and Agribusiness Robainas and San Cristóbal, among others – Cubans could inherit the properties. Exhibition in Cuba.” have strong trademark protection because they There also are reports of a debate over The State Department’s refusal to are not involved in revolution-era disputes. regulations governing the entry of foreign approve the project has forced the postpone- Habanos also is focusing on expanding property owners into Cuba. Because Cuba ment of the trade fair until sometime next sales to tourists on the island. Currently, the does not recognize the foreign citizenship year. But Nathan believes the first US food domestic market for first-quality cigars is said of many Cubans who have left the country exhibition in Cuba since the 1959 revolu- to be about $150 million per year. Habanos since 1959, purchases of some properties tion will take place in 2001. “I believe (the officials say their goal is to expand domestic by Cuban emigres technically is illegal as State Department) recognizes that sooner or sales to $400 million per year by 2005. Cuban citizens are barred from buying later food sales will occur.” Nathan also Cigar exports generated $260 million in property aimed at foreign investors. hopes to put on another medical product revenues in 1999, with the tobacco sector as a Meanwhile, government officials privately trade show in Havana in January, 2002. whole earning about $350 million from concede that efforts to build 40,000 new Current US law allows licensed medical exports, including sales of leaf and cigarettes. housing units this year are behind schedule. sales to the Cuban government, but restricts The company also is trying to reduce While repairs to existing apartment buildings food and agriculture sales to private entities smuggling of cigars out of its facilities. Sources have improved standards in some areas, there in Cuba. This has prevented any significant report it has become more difficult to buy are complaints this work has been too sales because Cuban government agencies bootleg cigars on the street in Cuba as a result focused on cosmetic improvements such as handle most food imports. of increased police efforts. exterior paint and plaster.

September 2000 CubaNews 5 for the construction up to 22,000 rooms. Cuba, but particularly emerging areas that Tourism More than 142,000 tourists visited do not have an international reputation, Cayo Coco and Cayo Guillermo in 1999, like the Jardines del Rey hub. Cayo Coco & Cayo or about 8.9% of all tourists. Most came Analysts say the low profits and from Canada, Italy and Germany. Visitors revenues could be the result of the large Guillermo becoming spent $70 million last year. Authorities investments required to develop virgin major tourism centers expect 180,000 tourists in 2000, spending areas that do not have the necessary The August opening of the five-star some $100 million. Official plans call for infrastructure to support large tourism Melia-Cayo Guillermo Hotel has boosted 400,000 to 500,000 visitors by 2005. projects. In addition, Cayo Coco and Cayo the number of rooms in the Jardines del Rey While the growth in the number of Guillermo are not well known destinations tourist hub to 2,606, making it the third tourists is impressive, the figures also seem and sources say tour companies have been most important tourist destination in Cuba to indicate problems with the economic forced to discount in order to attract after Havana and Varadero. The hotel has returns from investments made in the visitors. The infrastructure to accommo- 314 rooms. The region includes a number region. Nationally, income per tourist in date tourism has been built slowly. In June, of islands, but most development is on 1998, the latest available figures, was the government opened a fresh water Cayo Coco and Cayo Guillermo. $1,282, well above the $493 per tourist pipeline from the mainland that replaced By the end of the year, the Laguna Azul- figure for visitors to Cayo Coco and Cayo the inefficient system of delivering fresh Emperador Hotel on Cayo Guillermo is due Guillermo in 1999 or the $555 per tourist water by truck. Sewage systems are still to be completed with another 772 rooms, authorities expect in 2000. Profit margins under construction as are docking facilities which will lift total capacity in the area to also are higher nationally, averaging about for medium-sized cruise ships and yachts. 3,378 rooms. Another hotel under construc- 23%, compared to about 19% in the There are seven hotels, including two tion on the same island, Hotel Las Terrazas, Jardines del Rey area. cottage-style facilities on the two islands. should add another 300 rooms next year. Arrivals in the region reportedly only Cayo Coco has 1,492 rooms in three Cuban officials say that site preparation rose 2% between January and May of this facilities: Tryp Club Cayo Coco (972 is underway on both islands for hotels with year compared to 1999, making it almost rooms), Melia Cayo Coco (250 rooms) and another 1,500 rooms. Authorities say that impossible for the region to reach its 2000 Sol Club Cayo Coco (270 rooms); while total capacity in the region should be about target of 180,000 tourists. The slowing Cayo Guillermo has 1,114 rooms at the Sol 8,000 rooms by 2005. Long-term plans call growth in tourism is affecting all areas of Continued on page 7

Cayo Guillermo Villa Cojimar (220 rooms) Cayo Coco & Cayo Guillermo Area Sol Club Cayo Guillermo (264 rooms) Iberostar Daquiri (316 rooms) Melia Cayo Guillermo (314 rooms) Under Construction - completion date 0 5 Kilometers Laguna Azul Emperador (772 rooms) - 2000 Las Terrazas (300 rooms) - 2001 0 5 Miles

Cayo Coco Sol Club Cayo Coco (270 rooms) COCO POINT Tryp Club Cayo Coco (972 rooms) Melia Cayo Coco(250 rooms) (two more under construction)

BAUTISTA COVE

Airport

Havana Varadero

Area Enlarged JATO COVE

September 2000 CubaNews 6 Cayo Coco ... anxious to keep the tourism developments in process could lead to the barring of Sol the area isolated from the local population. Melia executives from entry into the United Continued from page 6 Sources say most local residents are banned States. The Spanish government, however, Club Cayo Guillermo (264 rooms), from visiting the tourist areas unless they has vehemently protested the US actions Iberostar Daiquiri (316 rooms), Melia work there or have special permits. and threatened to take the matter to the Cayo Guillermo (314 rooms) and Villa World Trade Organization, claiming Helms Cojimar (220 rooms). Sol Melia purchase of Burton violates international law. Spain’s Sol Melia Group, with 1,110 Tryp expands Cuba’s rooms under management, leads foreign Cuba aims to develop involvement in the region. Spanish group largest hotel operator Tryp, which was recently sold to Sol Melia, Spain’s Grupo Sol Melia, Cuba’s largest tobacco-growing region manages 972 rooms, all of them in the five- hotel chain, just got bigger with its Aug. 21 as tourist area star Tryp Club Cayo Coco Hotel, the first purchase of rival Tryp for a reported $400 HAVANA — The government is facility to open in the area in 1993. million in cash and Sol Melia stock. Tryp, promoting Pinar del Rio, best known as The development of the keys has been another Spanish hotelier, manages 50 hotels Cuba’s leading tobacco-growing region, as accompanied by a number of major worldwide and four in Cuba, including the an emerging tourism area. environmental problems. Initially, when pre-revolutionary Havana Libre. To help develop the industry in the the areas was starting to develop, a poorly- Sol Melia, which owned or managed island’s westernmost province, the San planned causeway led to severe damage to 262 hotels before its purchase of Tryp, is Julian military airstrip hs been reopened as mangrove swamps around Cayo Coco. now the world’s 10th largest hotel chain an international airport. Subsequent efforts to reduce the damage and plans to continue to expand. Sol Melia The government also is actively seeking have helped, but Cuban officials concede it in August signed a joint venture with bids from foreign investors to develop will take years for the mangroves to recover. Cuban state company Gran Caribe to tourism ventures at Guanahacabibes There also has been controversy over operate a new 304-room hotel on Cayo Penninsula and other areas in the region. the decision to build an international Largo off Cuba’s southern coast. The hotel, The government also is promoting the airport on Cayo Coco. The facility, the first Sol Club Cayo Largo, is expected to open region as a possible oil exploration area. It to be administered by a foreign company, in October. has divided the province’s deep water was built in an area some environmentalists Sol Melia was a family-run operation offshore into blocks for oil exploration. say would be better left undeveloped. until 1996, when it went public. Because State oil company Cupet is hoping to find Cuban officials counter that the new of its Cuban operation, Sol Melia has been companies willing to form joint ventures to location is in an areas set aside for infra- warned by the US State Department that it drill in water depths ranging from 2,000 structure development and in any case, is may be in violation of the Helms Burton meters to 3,000 meters. an improvement over the site of the Act, which seeks to punish foreign existing airport, which all agree is in an investors in confiscated US property in environmentally sensitive zone. The old Cuba. At the behest of a Cuban exile Tryp Club Cayo Coco airport is slated to be demolished and the family that claims the Spanish company Opened in 1993, at the depth of area reseeded with native plants. has built a hotel on beachfront property Cuba’s economic crisis, the Tryp Club Cuban officials rejected suggestions the that belongs to them, the State Depart- Cayo Coco was the first tourism airport be built on the mainland, a decision ment last year requested information from facility on Cayo Coco. It initially had some attributed to political motives. Sol Melia about its operations. 458 rooms managed by Spanish firm Observers have suggested the government is The US query was the first step in a Guitart. Over the years, it has been expanded to 972 rooms. There are plans to add 272 bungalows. Jardines del Rey Archipelago With 42% of the rooms on Cayo Jardines del Rey Archipelago consists of a chain of hundreds of islands, islets Coco, Tryp Club Cayo Coco had and sand bars, some of them under development, located off the northern shore of 62,000 guests last year, or 44% of all central Cuba. The island chain stretches 310 miles from Matanzas to Camaguey the arrivals on the islands. Through provinces. The archipelago faces the Strait of Bahamas, one of the most active the end of 1999, it has had a total of sailing and cruising passages in the Caribbean. It is the only route from Florida 244,786 visitors. In the first four and the Gulf of Mexico to Santo Domingo, Puerto Rico and the Lesser Antilles. months of 1999, the hotel reported a Because of this, it is seen as having excellent prospects for future development. 98% occupancy rate, and by the end The Cayo Coco and Cayo Guillermo, where all hotel rooms on the archipelago of the year it had earned $23 million, are located, are sandy islands lying on top of ancient coral reefs at the edge of the the largest-grossing hotel in Cuba. continental shelf. Sand beaches and high dunes, backed by swamps and tropical Cuban officials reported hotel profits forests, line most of the windward coasts of the keys. of $4 million last year.

September 2000 CubaNews 7 Migration talks resume ... preparation for the post-Castro period. While Cuba has agreed to go back to the Diplomacy Continued from page 2 negotiation table on migration issues, it rejected a US request to increase staff at the During a delegation trip to Havana Putin to visit Havana. US Interests Section in Havana and allow earlier this year, the Congressional Black Russian President Vladimir Putin Havana-based US diplomats to make Caucus had invited Alarcon to attend its plans to visit Cuba before the end of the working trips to Santiago de Cuba. annual convention, scheduled for Sept. 13- year, but a date for the trip has not been Moreover, Cuba indicated it would 16 in Washington. Rep. James Clyburn (D- set, according to Russian officials. continue to reject the Clinton SC), head of the black caucus, also invited During a visit to Moscow in July, administration’s demands that it end a Alarcon to visit his South Carolina district. Cuban Foreign Minister Felipe Perez waiting period of between three to five years The Inter-American Dialogue had Roque tendered an invitation to the for certain professionals, such as doctors, planned a breakfast for Alarcon that was Russian president. While several Soviet who want to emigrate. Cuban officials have expected to be attended by more than 150 leaders visited Havana, Putin’s predeces- defended this policy, saying that because policymakers, journalists and think-tank sor, Boris Yeltsin, failed to do so. these professionals receive free training, they members, Washington Post editors has also Havana and Moscow have since 1996 should be obliged to remain in Cuba for a invited the Cuban official to meet with sought to better relations that eroded time to repay the government for their them. after the collapse of the Soviet Union education. With Castro looking on, Alarcon A State Department official the denials ended most preferential trade ties said in a televised speech on Aug. 30 that of visas for Alarcon “was not done to put between the two nations. Relations the mandatory waiting period is necessary to pressure” on the Cuban government. “If between Cuba and Russia were further “protect the country from the constant theft there was any pressure, it was through the strained in 1994, when Yeltsin’s govern- of intellectual capital.” diplomatic notes,” the official said. ment sided with the United States in a Alarcon also said that of the 117 people The State Department official said United Nations vote condemning human that the State Department said had failed to Alarcon was denied a visa to travel to rights in Cuba. obtain exit visas, 22 were Cuban physicians Washington because “he was given a visa to Recently, however, Cuba has sought who were not authorized to emigrate to the conduct multilateral business, not bilateral to renegotiate its Soviet era debt with United States, three were technicians in business” in the United States. Russia and expand trade, which increased “sensitive economic sectors,” and nine were While Alarcon was barred from by 30% from 1998 to 1999 to $929 “relatives of deserters,” Cubans who traveled attending the Black Caucus event, and million. Russia is the destination for outside the country and decided against Cuban Agriculture Minister Alfredo Jordan 40% of Cuba’s sugar exports. returning. Morales was also denied a visa to travel from Havana to Washington, the State Depart- ment allowed six Cuban lawmakers to Shipping attend the congressional conference. The State Department official said the lawmakers were given visas because “they are Snapshot of the Cuban merchant marine below the rank of minister” and their visit Cuba’s merchant marine has 80 vessels with a total tonnage of 1.053 million tons would further President Clinton’s “people- deadweight. The government hopes to boost tonnage to 1.5 million tons. The fleet is to-people” policy. divided into a number of autonomous companies under the supervision of the Asociación de Alarcon said his visa denials were was Navieras de Cuba Antares: aimed at securing the political support of Coral Container Lines - The company operates 10 ships, five of which are long-haul anti-Castro Cubans, who demanded the container vessels ranging in tonnage of up t about 15,000 tons d/w with a capacity of travel denial. “Two denials in two weeks – between 400 and 800 TEUS. Another five are multipurpose vessels of up to 14,900 tons this is incredible,” Alarcon said for general cargoes and containers. Alarcon was last permitted to visit Poseidon - This company operates vessels of between 15,000 and 24,000 tons d/w, and has Washington in 1994 for a meeting of the some refrigerated capacity. It operates a number of services internationally. Pan American Health Organization. Naviera Friomar - Specializes in refrigerated cargoes. It is among the largest refrigerated For his part, Alarcon may have sought lines in Latin America and the Caribbean and operates internationally. an extended US stay to learn more about a Naviera Mar América - A general bulk cargo and container line, it operates vessels of shift in congressional attitudes toward between 5,000 tons and 12,000 tons d/w. It operates primarily in the Caribbean. longstanding US sanctions against Cuba Petrocost - Specialized in the transportation of liquids, it is the main Cuban carrier of oil, and about the upcoming presidential fuels and lubricants. It also carries chemicals and molasses. It operates vessels of between elections. Castro relies heavily on Alarcon’s 2,000 tons and 60,000 tons. knowledge of the United States. Moreover, Carimar - Specialized in container service between Cuba and the Mediterranean, northern Alarcon may be seeking a higher profile, and Europe, North America and the Caribbean. Operates vessels of between 12,000 tons and broader contacts, in the United States in 25,000 tons.

September 2000 CubaNews 8 Alarcon and Lage are The most surprising incident involving Carlos Lage Davila Alarcon took place during the IV Congress By virtue of his position as Secretary of the architects of foreign of Communist Party of Cuba in October Executive Committee, he is responsible for the policy, economic reform 1991, the first such meeting in which day-to-day functioning of the government. CubaNews has periodically published secret voting took place to elect the Central Born in Havana in 1951, he was brought up profiles of leading Cuban officials. Below Committee. At the time, Alarcon was an as a young revolutionary in a lower middle are profiles of National Assembly President alternate member of the Central Commit- class family. He was member of the Union of Ricardo Alarcon and Vice President Carlos tee and his chances for full membership Young Communists (UJC) in secondary Lage. The recently published CubaNews were considered slim because many of the school and by 1975 he was president of Business Guide to Cuba contains profiles of old guard perceived him as too liberal and university students federation. nearly 20 key leaders as well as insight on too distant from domestic affairs. When Lage studied medicine and became a succession after Fidel Castro and the votes were counted, there were several pediatrician. By the late 1970s he was sent to decisionmaking in the Cuban government. surprises, including a few votes against Ethiopia as a doctor and put in charge of Fidel and Raul Castro and other members Cuban medical personnel serving there. Ricardo Alarcon de Quesada of the Politburo. The biggest surprise, Shortly after his return from Ethiopia in A Politburo member and a key player however, was that Alarcon received the 1980, he became First Secretary of the UJC. in Cuba-US relations for more than 35 largest number of votes after Fidel and As First Secretary, he conducted a purge of years, Alarcon was born in 1937 in Havana Raul. A few months later, he was named to corrupt bureaucrats who flourished under the to a middle class family with strong the Politburo. former UJC leader Luis Orlando (Landy) intellectual and patriotic sentiments. He His 1993 removal from the Ministry of Dominguez, who was purged in 1987 and was a good student at the University of Foreign Affairs and transfer to the National sentenced to 20 years in jail. Lage promoted a Havana in the 1950s, where he joined the Assembly, was overwhelmingly perceived as new generation of young and more dedicated ranks of the July 26th Movement - Fidel punishment by Fidel for several unsuccess- leaders, including ousted Foreign Minister Castro’s revolutionary organization – and ful initiatives undertaken by Alarcon and Roberto Robaina. became leader of its Sección Estudiantil the general shakeup of the Cuban power In 1986, he was named to the Central Nacional. Active in the underground structure as a result of the fall of the Soviet Committee of the communist party. His older movement against Batista, he was elected as Union. His firing was resented by many brother, Agustin, became a member of the president of the Federation of University younger leaders. Central Committee in 1991. Carlos Lage later Students between 1961 and 1962. At the However, his fortunes rose in 1994 and was assigned to the Equipo de Coordinación y time he was also Foreign Affairs Secretary 1995 during negotiations with the United Apoyo al Comandante en Jefe, Fidel Castro’s of the Union of Young Communists States on migration issues when his personal staff. (UJC). In late 1962, he was appointed expertise on US affairs forced Fidel Castro Castro came to rely on Lage heavily during Head of the Latin America Directorate in to rely on him as negotiator and adviser. this period. As a result of this association, in the Ministry of Foreign Affairs. Two years He used this enhanced influence to the late 1980s he was put in charge of the later he was named Permanent Ambassador undermine new Foreign Minister Roberto National Commission for the Special Period, a to the United Nations where he would Robaina, who was essentially removed team that sought to manage the economic remain for almost 25 years. from all decisions on US relations. turmoil caused by the loss of Soviet economic He then became First Deputy Minister His improved relations with Castro have support. In 1991, he was named deputy and then Minister of Foreign Affairs in the prompted him to take more hard line director of Castro’s staff. early 1990s, until he was removed in 1993 positions on some domestic questions than Lage was appointed Vice-President and and appointed by Fidel Castro as President acquaintances would have expected. He has Secretary of the Executive Committee at the of the National Assembly. He was reelected supported legislation against dissidents and is 1991 Congress of the Communist Party, thus to the post in 1998. In 1992, when he was blamed for slowing work on some economic becoming one of the most influential figures in already Minister of Foreign Affairs he was reforms. This in turn has cost him credibility the Cuban power structure. He is perceived as named to the Politburo. among some friends and followers that are being hard-working, and disciplined. He has a Alarcon is an intellectual and a skilled more ardent proponents of change. However, reputation for honesty and for having no politician. His nationalist-Marxist leanings he is credited with helping to make the toleration for corruption. However, he is said were evident before 1959. During his National Assembly and the People’s Power to have poor communication skills. university days, he became allied with Raul system more useful forums for debate and He reportedly differs with Fidel Castro on Castro, a relationship that has proved oversight of some areas. a number of reform-related questions. He is beneficial in his long political career. Raul In recent months, he has become the said to have backed studies and experiments to was a communist years before Fidel Castro leading Cuban spokesman for efforts to show the viability of his ideas. and has clashed adopted that ideology. repeal US embargo legislation. He also was with Fidel over various initiatives. Neverthe- His expertise on US affairs also has the point man during the effort to secure less, he has stayed in Castro’s good graces. For proved valuable in expanding his relation- the return of Elian Gonzalez to Cuba many in Cuba, he is at the top of the list of ship with Fidel Castro over the years. earlier this year. likely successors to Castro.

September 2000 CubaNews 9 Cuban exports to China in 1998 were Havana’s small Chinatown. Many joined Diplomacy $94 million, down from $100 million the Cuban Revolution. the year before. Almost all Cuban Today, there are three brigadier Cuba and China step up exports to China were sugar related. generals in the Armed Forces who are of To date, Chinese direct investment Chinese origin: Armando Choy, cooperation but in Cuba is a reported $10 million, but Gustavo Chui, and Moises Sio Wong, progress has limits this is likely to change as the two who also heads the Instituto Nacional de Domingo Amuchastegui countries focus increasingly on joint la Reserva Estatal and presides over the Although the September 1993 state ventures in technology, rice production, Cuban-Chinese Friendship Society, visit of Chinese President Jian Zemin to and industry. In December 1999, which is trying to restore the old Cuba, was marred by tense talks with Cuban Vice President Carlos Lage went Chinatown in Havana as a tourist Cuban President Fidel Castro and to China and signed six agreements attraction. followed by disputes over payment covering joint ventures in a number of Havana’s Chinatown is attracting arrangements for trade, common fields. Potentially the most far reaching considerable attention from government interests have enabled the two countries is a deal in telecommunications aimed officials. There are 22 private Chinese to significantly expand bilateral rela- at producing a wide range of equipment restaurants in the area, the largest such tions since then. for the Cuban market as well as exports grouping of paladares in the country, For Cuba, one of the major accom- to Latin America and the Caribbean. earning an estimated $12 million a year. plishments in its relations with China in There has been significant progress in They enjoy a privileged relationship recent years has been a Chinese decision this deal. Other agreements covered with the Chinese embassy in Havana. to expand ties to the military and cooperation in biotechnology and There are accusations they also are security area after years of China medicine and a possible deal for a involved in black market activities such refusing to do so. In recent years, a host Chinese company to operate a Cuban as trading smuggled goods. There also of top Cuban military officials have port or free trade area, possibly in are accusations Cuba’s small Chinese traveled to China to meet with their Mariel or Cienfuegos. Another agree- community is involved in illegal real Chinese counterparts. Visitors have ment called for studies on ways to estate transactions, particularly in the included Chief of the Armed Forces modernize the Cuban railway system. Zanja area. More recently, there have Raul Castro, Interior Minister Abelardo Interestingly, the subject of one of the been accusations Chinese gangs and Colome Ibarra, and then Chief of the agreements was not released. Chinese living in Cuba have become General Staff Gen. Ulises Rosales del Within months of signing the involved in smuggling Chinese tourists Toro, now head of the Sugar Ministry. A agreements, several high-level Cuban from Cuba into other Caribbean nations number of Chinese military officials delegations traveled to China. One and eventually the United States. Cuban also have visited Cuba since 1995. included Concepcion Campa, one of officials reportedly have stepped up For China, a closer military relation- Cuba’s best-known scientists, a member efforts to stop this trade. ship with Cuba offers a convenient of the Central Committee and the The expansion of ties between Cuba bargaining chip in its dealings with the Council of State and head of the Finlay and China has not been without its United States. Chinese officials appear Institute. Fisheries and Merchant disagreements. Although the Chinese to view Cuba as analogous to Taiwan in Marine Minister Orlando Rodriguez economic model has influenced Cuban dealing with the United States. Some Romay and Sugar Minister Ulises leaders and some of its technocrats, US official have expressed concern Rosales del Toro, a member of the Fidel Castro has evident distaste for the about the growing military and security Politburo, also traveled to China to Chinese practice of allowing an active cooperation between Cuba and China meet with Chinese officials to discuss entrepreneurial class to develop. This and its potential implications on US possible joint ventures. has led to the creation of a new class of national security interests. There has Moreover, Gen. Joaquin Quintas Sola, wealthy Chinese, something Castro is been talk China may set up an elec- commander of the Central Army and a unwilling to tolerate in Cuba. His tronic listening post in Cuba similar to member of the Central Committee, led a brother, Raul, however, has been much the Russian facility at Lourdes. Officials high-level military mission to China in a more interested in these developments. also say they are worried better ties with visit that recevied little publicity. He has studied China’s economic China would give Cuba access to more The effort to expand ties has reforms intensely and has invited modern military equipment. received support from descendents of leading Chinese officials to lecture on Meanwhile, Cuba and China have Chinese immigrants to Cuba. In the them in Cuba. However, Fidel’s suspi- succeeded in expanding their trading early 1900s, about one percent of the cion of Chinese policies makes it likely relations. China still accounts for most Cuban population was originally from that cooperation will focus on areas of of the trade. In 1998, China reported China. They supported Cuban indepen- common economic interest and military exports to Cuba of $127 million, down dence. Most were peddlers, small modernization, rather than ideology and from $156 million the year before. retailers and traders. Most lived in reform.

September 2000 CubaNews 10 Commodity Oil & Gas Export Markets Oil-short Cuba exported Sugar Spurred by tighter supplies and hopes for stronger demand from emerging markets, oil in 1999 sugar prices remained at two-year highs after languishing a 14-year lows earlier this year. Oil starved Cuba – a country where the Even the most cautious observers now seem to be more optimistic about the market’s ability government months ago imposed measures to to sustain current price levels in the short term. reduce gasoline demand to counter the impact Analysts say production cuts in the European Union, Brazil, Thailand and Australia of high world petroleum prices – exported 1.8 have helped push sugar prices higher. However, there is concern Russian efforts to reduce million barrels of oil last year, according to the imports as well as problems implementing a quota system could adversely affect the market. Economic Commission for Latin America. Baron and other analysts say they remain concerned that the current market is unstable. Although the details of the sales are unclear, This is reflected by the fact that the strongest recovery has been in the spot market, while market sources say the exports were actually futures prices have lagged, demonstrating the lack of faith traders have in continued strength. sales of Russian crude provided to Cuba under a August spot prices averaged 11.14¢/pound, double prices in March. Since the bottom sugar-for-oil barter arrangement. During the of the market then, spot prices have gained an average of about 1¢ per month. height of Soviet support for Cuba, Cuba resold Futures prices have gained as well, though not as much. October contract prices as much as 90,000 b/d of Russian oil that was averaged 10.65 ¢/lb, up from 9.74 ¢/lb in July. March 2001 contracts averaged 10.33 ¢/lb shipped to Cuba under preferential terms. Cuba last month up from 9.50 ¢/lb in July. still enjoys some preferences in pricing its sugar An intense drought over eastern Cuba, where a third of Cuban sugar is produced, is against Russian crude. During the mid 1980s, probably taking its toll on the upcoming harvest. No estimates of the damage to sugarcane Cuban officials reported revenues of more than have been released, although the official media frequently mentions that in some areas the $500 million per year from the re-export of water reservoirs are at just one fifth or less of capacity. subsidized Soviet oil. At the time, oil imports Sugar Minister Ulises Rosales said that despite the lack of rain this year, the government averaged about 262,800 b/d. hopes to produce “no less than what we did last year.” Such statements seem to acknowl- Taking into account international oil prices edge that the government has abandoned efforts to expand production by 300,000 to in the second half of last year, the value of the 500,000 tons this season, compared to output of 4.058 million tons in the last harvest. exports ranged from $33.1 million to $40.7 Moreover, it is a blow to plans to produce 7 million tons by 2002. million, depending on the grades of crude sold There are rumors output for 2000-2001 harvest could fall below the 1999-2000 mark. and timing of the sales. In addition, there have been reports that weeding of cane fields has fallen well behind The sales came as Cuban officials com- schedule as crews have concentrated on other tasks such as replanting old fields. This could plained about the impact of higher oil prices. cut output by as much as a third in areas where weeding has not been completed. Economy Minister Jose L. Rodriguez in his Government policy focusing on improving the efficiency of the industry’s sugar mills is December 1999 report to the Cuban seen as increasingly at odds with the simultaneous commitment to expand production. parliament, said rising fuel prices had a “noxious Official media sources in August reported that just 42 sugar mills out of 112 that started effect” on the economy. Six months later, he the harvest, earned profits. The most efficient, the Antonio Guiteras in Las Tunas province, said rising oil prices had cost Cuba $80 million worked six months for an income of just 4.188 million pesos (using the official exchange to $85 million in the first three months of rate of one peso to one dollar). Others, such as the Argeo Martinez mill in Guantanamo 2000. As a result, the government announced province, which had revenues of $86,671, had more modest results. measures to reduce fuels consumption by 5%. The figures represent an improvement over the previous season, when just 18 mills Most analysts believe the oil exports consisted made profits. Some of the leading mills bolstered their gains by producing electricity and of reselling Russian oil that was still at sea. Cuban sugar derivatives, mainly alcohol and rums, as a way of keeping them out of the red. state tanker company Petrocost, which owns 14 tankers and shares in six more, carries more than Nickel 80% of Cuban crude supplies and it would be a Nickel rallied in August as the market reacted to a possible drop in Russian exports this year simple matter to sell a cargo of crude after it was stemming from a decision by the giant Norilsk metals combine to cut sales. The fall in Russian loaded and divert tankers to ports where it could exports would be in the range of 20,000 to 30,000 tons. Prices also received support from a be delivered. Exporting Cuban crude would be strike at Falconbridge, a major Canadian producer. The company could declare force majeure as problematic because most output is very heavy soon as October on nickel deliveries. and high in sulfur and metals. Most refineries Cash prices rose to a top of $4.019 per pound by the end of August after bottoming out at capacity capable of processing these grades within $3.40 earlier in the month. For the month, prices averaged $3.364, compared to $3.705 in July. a reasonable distance from Cuba are in the There still have been no official statements nickel production this year. Often, this kind of United States, where embargo regulations bar the official silence indicates poor performance or other troubles. Cuba plans to produce 74,000 tons purchase of Cuban oil. Venezuelan refineries in 2000, up from 66,500 last year. The target in 1999 was 73,000 tons. that could handle Cuban crude also have no Analysts say high oil prices are probably affecting production or at least are trimming profits. spare capacity. The nickel industry consumes roughly 15% of the fuel available nationwide.

September 2000 CubaNews 11 Business Briefs Canadian firm finds shipwreck Hurricane Debby aids Cuba develops sugar Canadian company Visa Gold Explorations Inc. has announced that it eastern Cuba harvester for export has discovered a shipwreck in Cuban Hurricane Debby proved to be more a Cuban officials say a state company has waters “with an extensive debris field blessing than a curse to drought-stricken developed “one of the most productive containing artifacts of archaeological and eastern Cuba, which received the brunt of harvesters in the world” able to cut 54 tons economic value.” the August storm. Debby was downgraded of sugar cane an hour. Visa Gold Explorations has a joint to a tropical storm before hitting Cuba. The new combine, called Harvester venture agreement with Cuban company, More than 10 months of severe 4000, is technologically different from the Geomar S.A., to search for shipwrecks off drought have devastated crops, dried up combines developed earlier in Cuba. Some the northern and southern coasts of Cuba. rivers and reduced reservoirs to less than of its innovations include a new hydraulic It is financed by fellow Canadian company 30% of capacity in the eastern province of system, collapsible steering wheel, air- Holmer Gold Mines, which is exploring for Guantanamo. Before Debby swept the conditioned cabin and a gear lever that gold and other minerals and metals onshore. region, Cuba’s Institute of Meteorology’s allows for greater maneuverability, says Visa Gold Exploration has launched a Weather Observation Department designer Justo Max. private placement to raise $1 million cdn to predicted the drought would continue Two prototypes of Harvester 4000 were fund additional work at the site. The through October. tested in Holguin province earlier this year. company has not released information about While Debby’s rains brought some relief Three more prototypes will be manufac- the age of the wreck, though it is searching to a region suffering the worst drought in 10 tured in a factory in Holguin for use in the primarily for treasure ships from the years, meteorologists warned that the impact next harvest, Cuban officials said. But Max Colonial era. The company has exploration would be short-lived unless the extremely said the new harvester will be manufac- rights to 5,000 square kilometers of the dry soils received prolonged rainfall. tured mainly for export. Cuban continental shelf.

Rumor of the Day

Fidelismo HAVANA — Cuba’s biotech industry A monthly report on Cuba’s maximum leader has something other researchers want. Sources say Cuba has one of the largest stem cell banks in the world and is Shortest Speech of the Month holding talks with European and US A six and half minute talk at the United Nations General Assembly Millennium researchers who are interested in accessing Summit in New York. Each leader was supposed to have five minutes to address the it. Stem cells are harvested from aborted meeting. Castro got a laugh from the audience before he started when he tried to place a fetuses and are believed to have great handkerchief over the light used to indicate when his time would expire. potential for growing organs and treating a wide variety of diseases. Research in the Longest Speech of the Month United States and Europe using stem cells A four and a half hour address at the Riverside Church in Harlem to supporters of has been restricted by laws or regulations improved US-Cuban relations and friends of Cuba. He was two hours late in starting. banning the use of fetal tissue for research, Shortest Meeting restrictions on abortions and reluctance by governments to fund fetal tissue A brief encounter with US President Bill Clinton at the UN summit. US officials said research. Castro approached Clinton and the two men exchanged a few words and shook hands. A Although there a reports European and US source said it was not a substantive encounter. US companies have been interested in Quote of the month simply buying stem cells, Cuban officials “Chaos rules in our world, both within borders and beyond. Blind laws are offered up reportedly have pushed to form joint as divine norms that will bring the peace, order, well-being and security that our planet ventures in which Cuban institutions needs. This is what they would have us all believe; three dozen developed and wealthy would participate in research and have a nations that hold a monopoly of economic, technological, and political power, have joined stake in any products developed. us here in this gathering to offer us more of the same recipes that have only served to make Cuba is able to harvest stem cells us poorer, more exploited and more dependent.” unhindered because abortion is legal and Castro’s speech to the UN General Assembly on September 6. He also called for the government controls all medical reforming the UN to expand the Security Council and end the veto power that the United services, which gives researchers unre- States, China, France, the United Kingdom and Russia exercise over decisions there. stricted access to fetal tissue. September 2000 CubaNews 12