Vol. 11, No. 10 October 2003

www.cubanews.com

In the News DeLay aids Bacardi rum empire in effort

Sherritt exits Cubacel to circumvent WTO fury over Section 211 Canadian mining, energy giant sells its BY ANA RADELAT provision repealed. But DeLay has proposed 40% interest in mobile telephone network ouse Majority Leader Tom DeLay, a long- another solution that would put the United back to Cuban government ...... Page 3 time supporter of the U.S. trade embargo States into compliance, while continuing to pre- Hagainst Cuba, is using his considerable vent Havana Club Holdings from safeguarding Local politics political power to help Bacardi win a rum battle its famous mark. against Havana Club Holdings, a Cuban-French Since the mid-1990s, Bacardi — a Bermuda- An analysis of Cuba’s latest approach to joint venture. based giant with $5 billion in worldwide sales — foreign policy ...... Page 4 The Texas Republican is lobbying to include has been trying to use the Havana Club name to language in the 2004 defense authorization bill market aged rum. Tourism briefs that would bring U.S. trademark law into com- The Arechabala family in Cuba once pro- pliance with a World Trade Organization ruling duced an aged rum by that name, but Cuban Arrivals up 14.8% this year; Sofitel Sevilla against Section 211 — a U.S. law that strips state company CubaExport began making its reopens in Old Havana ...... Page 5 Havana Club Holdings of its right to defend the own Havana Club rum after the Arechabalas Havana Club trademark in the United States. went into exile in Spain in the early 1960s and Take me to Havana DeLay spokesman Jonathan Grella said his apparently gave up all rights to the trademark. boss “is seeking to protect American companies CubaExports sales of the rum increased dra- Air Canada, BWIA, Aeromar and Sky all from predatory French companies that are con- matically when it joined forces with French expand flights to Cuba ...... Page 7 spiring with a murderous dictator.” liquor giant Pernod Ricard in 1993. The joint Havana Club Holdings — along with dozens venture now sells more than 1.2 million cases of Newsmakers of U.S. businesses hoping to avoid trademark Havana Club rum in 80 countries each year. disputes with Europe and Cuba — wanted the See DeLay, page 2 CANF Executive Director Joe Garciá tells CubaNews why Cuban-Americans feel be- trayed by the White House ...... Page 8 UNDP ranks Cuba 52nd in annual index Partnering with T&T Trinidad & Tobago sees big potential for measuring quality of life in 175 nations expanded trade with Cuba ...... Page 10 BY LARRY LUXNER of information. Among the “factoids” we gleaned s difficult as life may be in Cuba, things from this exhaustive work are the following: Brazilian bonanza are worse for inhabitants of at least 123 I the average Cuban born today can expect to other countries. live 76.4 years, up from 75.3 years in 1992. Lula’s visit generates $200 million in bilat- A I That’s the conclusion of the United Nations 91% of Cuba’s 11.2 million people have “sus- eral business deals ...... Page 11 Development Program, which has just issued its tainable access to an improved water source,” 2003 Human Development Index — an often- down from 95% the year before. Business briefs quoted, sometimes controversial report that I Cuba got $50.7 million in development Cuba earns big bucks from food imports; details the relative quality of life in 175 nations. assistance in 2001, or about $4.50 a person. This year’s report puts Cuba 52nd in terms of I As of 2001, Cuba was home to 19,000 refu- Vietnam supplies computers ...... Page 13 life expectancy, educational attainment and gees; that same year, its armed forces totaled adjusted real income. Not bad, considering that 46,000 troops — only 28% of the 1985 total. Provinces: City of Havana Cuba scored higher than Trinidad and Tobago, Interestingly, Cuba is the only country in the Cuba’s smallest province in size is also by Mexico, Bulgaria, Malaysia, Russia, Brazil, Ven- entire UN report for which no per-capita GDP appears. A footnote says: “Pending the outcome far its most influential ...... Page 14 ezuela, Saudi Arabia, Thailand and the Domini- can Republic, to name a few. of ongoing efforts to calculate per-capita GDP On a scale of 0 to 1, Cuba came in at 0.806 — for Cuba, the UNDP estimate of the subregional CubaNews (ISSN 1073-7715) is published monthly No. 52 and a little better than last year, when its weighted average for the Caribbean of $4,519 is by Luxner News Inc. © 2003. All rights reserved. score of 0.795 ranked 55th worldwide. This year used,” though most observers put Cuba’s real Subscriptions: $429/year. For subscription or edito- Cuba’s index was the 6th-highest in Latin Amer- GDP at between $1,000 and $2,000. rial inquiries, call toll-free (800) 365-1997, send a fax The study, issued in late July, was prepared by to (301) 365-1829 or e-mail us at [email protected]. ica and the Caribbean (see chart, page 6). The UNDP’s 367-page study contains a wealth See UNDP, page 6 2 CubaNews ❖ October 2003 with the WTO in a completely different way tune 500 firms, General Motors Corp., Ford DeLay— FROM PAGE 1 that favored Havana Club Holdings. Motor Co., DaimlerChrysler, DuPont, East- The embargo prevents the sale of Havana Reps. Charles Rangel (D-NY) and Jeff man Kodak, Caterpillar and Halliburton. Club Rum in the United States. But Flake (R-AZ) sponsored legislation that Reinsch said he was surprised DeLay CubaExport registered the trademark with would repeal Section 211. Their bill, called would try to push his legislation without any the U.S. Patent and Trademark Office in 1976 the U.S.-Cuba Trademark Protection Act of hearings because the issue is complicated. in the hopes that one day it might be able to 2003, would also direct the PTO to establish “It’s the kind of thing that ought to be vet- sell the rum to Americans. a registry of U.S. trademarks in Cuba that ted by a committee,” said Reinsch, though he Bacardi unsuccessfully challenged the reg- were well-known at the time Fidel Castro told CubaNews that DeLay’s proposal may not istration several times. In 1999, former Sen. came to power in 1959. It would also require satisfy the WTO. “There’s only one solution Connie Mack (D-FL) was able to slip a provi- the U.S. Treasury Department to make it that will do the job, and that’s repeal.” sion, known as Section 211, into a massive Reinsch speculated that DeLay’s efforts on federal spending bill that stripped trademark easier to transfer U.S. trademarks and trade names to Cuban entities. behalf of Bacardi may prompt the Castro gov- protection from expropriated products. ernment to strip protection from hundreds of In 2000, the European Union filed a com- CORPORATE AMERICA: 211 MUST BE REPEALED U.S. trademarks registered in Cuba. plaint with the WTO on France’s behalf. The “If that happens,” he warned, “my mem- next year, the WTO ruled that Section 211 Before DeLay’s move, Rangel, Flake and bers will pound on lawmakers’ doors saying was inconsistent with the Trade-Related As- other members of the House Cuba Working ‘you screwed this up.’” pects of Intellectual Property Rights (TRIPS) Group who backed the legislation were given While the U.S.-Cuba Trademark Protection agreement because it treated the claims of a boost by the endorsement of some of the Act of 2003 is languishing in the House foreigners differently from Americans. The nation’s largest and most powerful business. Judiciary Committee, Reinsch has hopes it WTO gave Washington until Dec. 31, 2003, to The companies are members of two organ- will prevail over DeLay’s measure. come into compliance or face sanctions. izations that in September announced their DeLay is no stranger to the congressional support for the Rangel-Flake legislation: the debate over Cuba. MEASURE WOULD APPLY TO EVERYONE National Foreign Trade Council, an advocate On several occasions, he’s helped Cuban- The provision that DeLay wants to include of free trade, and USA*Engage, a coalition of American lawmakers who support the embar- in the defense authorization bill would amend about 670 U.S. companies and trade organi- go derail legislation to weaken it and fought Section 211 so it would apply to Americans as zations that oppose unilateral economic sanc- hard against legislation that was approved in well as non-nationals who acquired a trade- tions against foreign nations. 2000 that allows food sales to Cuba. mark “that is the same or substantially similar “Section 211 threatens over 5,000 DeLay couldn’t block the legislation to a mark that was associated with a business American trademarks registered in Cuba by because it had substantial support from his or assets that were confiscated.” more than 400 companies,” said Bill Reinsch, own party, but he was able to insist that the In June, opponents of the U.S. embargo to co-chair of USA*Engage and president of the sales be carried out in cash, without access to Cuba tried to solve Washington’s problem NFTC, which represents, among other For- U.S. bank credit. Lawmakers won’t succeed in latest bid to end travel ban BY ANA RADELAT The House has voted on similar Cuba pro- supported the measure last year refrained here will be much unfinished business visions for four years in a row now, but those from voting this year. when Congress adjourns in late Nov- measures have always been deleted from a A number of Republican freshmen in T ember or early December, with law- final bill. Congress this year are also less likely than makers hoping to ease the embargo on Cuba This year, the House voted 227-188 on an their elders to buck their leadership on Cuba. finding that goal next to impossible. amendment sponsored by Rep. Jeff Flake (R- But in the Senate, there may be a new ally The House voted in September to bar the AZ) that would have prevented enforcement for the anti-embargo forces. Treasury Department from enforcing travel of the travel ban. Richard Lugar (R-IN), chairman of the pow- restrictions to the island and limiting money According to Noriega, about 200,000 Ame- erful Senate Foreign Relations Committee, sent to Cuban households. Another amend- ricans — half of them Cuban-Americans visit- criticized U.S. policy toward Cuba during an ment added to the House Treasury and ing their families — traveled legally to Cuba Oct. 2 hearing, saying that Washington’s cur- Transportation bill would stop Treasury from in 2002. Thousands more visit illegally via 3rd rent strategy has failed. implementing new rules that tighten licens- countries, risking fines and imprisonment. “We must think beyond our fruitless war of ing for educational tours to Cuba. Lawmakers voted 222-196 on the amend- attrition that has only served to make Castro But the Senate failed to act on the issues. ment introduced by Rep. William Delahunt a folk hero in some parts of the world,” said Congress is running out of time to finish all (D-MA) which would have eliminated the Lugar, adding that Cuba was becoming a dis- 13 spending bills that will fund the federal $1,200 per year cap on remittances to Cuba, traction from other Latin American issues “of government next year, so the spending bill and 246-173 on a provision that would stop the equal or greater importance.” with the Cuba provisions will likely be includ- implementation of new restrictions on “peo- Lugar, who has generally kept a low profile ed in a huge omnibus bill crafted by House ple-to-people” educational travel to the island. on Washington’s Cuba policy, hinted for the and Senate appropriators and representatives Rep. Lincoln Diaz-Balart (R-FL), a Cuban- first time that he might back an end to the from the White House. American lawmaker who has long battled travel ban “at an appropriate time.” Since President Bush has threatened to against all attempts to weaken the embargo, In any case, the only Cuba-related legisla- veto any legislation to ease the embargo, it’s said the number of votes for the Flake amend- tion that might pass this year is a provision almost certain the Cuba provisions won’t sur- ment — which received 262 votes last year sponsored by Sen. Arlen Specter (R-PA) that vive the omnibus process. and 227 this year — proves that support to would provide $2 million for joint U.S.-Cuba In fact, Roger Noriega, the new assistant ease travel restrictions is weakening. drug interdiction. secretary of state for Western Hemisphere “The embargo is strategically alive,” Diaz- Specter has unsuccessfully pushed for the affairs, vowed that Bush “will veto any meas- Balart said in a press statement. money for several years, but says he’s confi- ure to change the current restrictions.” The drop in support for Flake’s travel meas- dent he’ll be able to win approval this year. “I wouldn’t bet money that they won’t get ure is a direct result of congressional dis- “It’s not a lot of money,” Thale told us. “But stripped,” said Geoff Thale, a Cuba specialist pleasure at Fidel Castro’s crackdown on dissi- it’s important because of the principle of the at the Washington Office on Latin America. dents earlier this year. Many lawmakers who thing.” October 2003 ❖ CubaNews 3 TELECOMMUNICATIONS Sheritt sells its 40% stake in Cubacel back to government BY LARRY LUXNER ernment and Mexican entrepreneur Luís ism sectors, saying the two “weren’t linked.” ucking the worldwide trend toward pri- Miguel Niño de Rivera. At that time, the com- The deal could be linked, however, to the vatization, the Cuban government has pany was granted a 20-year exclusive conces- Cuban government’s plans to merge Cubacel Bretaken 100% control of Teléfonos Celu- sion to provide both analog and digital service and fixed-line monopoly Empresa Nacional de lares de Cuba S.A. (Cubacel), the island’s within the 800-MHz band throughout Cuba. Telecomunicaciones de Cuba S.A. (Etecsa) dominant mobile phone network. Cubacel’s president is Niño de Rivera, and into a single entity covering both services. In early September, Sherritt International its managing director is Cuban national Rafael SYNERGIES BETWEEN CUBACEL AND ETECSA Corp. announced that it was selling its 40% Galindo. Until now, the other top Cubacel offi- indirect interest in Cubacel back to the Castro cials worked directly for Sherritt, which paid At the moment, Etecsa is owned 29% by Telecom Italia SpA and operates approximate- government. $38.2 million for its share of Cubacel in 1998. The $43 million purchase by Telefónica An- ly 650,000 fixed-line phones throughout Cuba. tillana S.A., an obscure Cuban government Not much is known about these agency, consists of an initial payment of $10 talks, which have been going on for million and a series of quarterly payments ex- half a year and reportedly involve tending until August 2007. Interest will be Celulares del Caribe (C-COM), a paid on outstanding amounts at 6% a year. small GSM network (see box below). Sherritt will receive 80% of its selling price, Telecom industry sources say the with the remaining 20% going to minority Cuban government is seeking partner TIMSA of Mexico, which had owned effiencies with an eye to eventually 10% of the company. making mobile phones available to Company spokesman Ernie Lalonde told at least part of the population. CubaNews that the deal “was really the pre- Recently, Brazil offered Cuba a rogative” of the Cuban government. $60 million medium-term credit to “The government had a desire to restruc- buy Brazilian-made Ericsson wire- ure its telephone business, and we entered less equipment. into a dialogue with them,” he explained in a “It’s much cheaper to develop a phone interview from Sherritt headquarters wireless system. After the merger I in Toronto. “In our negotiations, we struck an Attempts to reach Galindo at Cubacel’s think they’ll begin deploying one for the pop- arrangement that we found was suitable for Havana headquarters weren’t successful, and ulation,” a telecom executive told Reuters in a us. This is the result.” Sherritt itself has never disclosed much infor- story published by CubaNews in March. mation about the company. However, in 2001, The merger could also solve turf-related IF IT’S SO PROFITABLE, WHY PULL OUT? the latest year for which statistics are avail- licensing issues and create efficiencies, as For now, virtually all of Cubacel’s 8,000 per- able, Cubacel reported profits of $6.7 million mobile networks use Etecsa facilities across manent customers are foreign diplomats, sen- on revenues of $24.1 million (see chart below). Cuba instead of building their own. ior government officials and top executives of In its 2001 annual report, Cubacel prided it- At present, it’s illegal for ordinary Cubans empresas mixtas, or joint ventures between self on the company’s 36% average profit mar- to have cellphones, unless it is absolutely nec- Cuban state entities and overseas investors. gin and 39% return on equity, which dwarfed essary for their jobs. Besides, Cubacel’s aver- Cubacel itself began as an empresa mixta, the 8.2% profit margin and 21.8% average re- age tariff of $120 a month in hard currency is created in December 1991 by the Cuban gov- more than many Cubans earn in a year. turn on equity earned by the top 10 U.S. tele- Sherritt, meanwhile, is boosting its non- com firms that year. telecom investment in Cuba. The company is C-COM EXPANDS ITS NETWORK Lalonde conceded that Cubacel was “cer- investing $50-60 million this year in oil and tainly a profitable enterprise” for Sherritt — gas expenditures. It also runs, with the Cuban Government-owned mobile phone opera- but if it was so profitable, why would Sherritt government, one of Cuba’s largest nickel tor Celulares del Caribe (C-COM), founded get out of the telecom business? mines, and has interests in two hotels, a soy- in August 2001, is reporting “dynamic The spokesman declined to answer that bean processing plant and a small agribusi- growth” in its services to Cuba’s major question directly, telling us only that “we ness venture. tourist destinations. found the Cuban government’s request rea- As of Jun. 30, 2003, Sherritt’s capital assets The company is working with Spain’s sonable.” He also denied that the sale had in Cuba come to C$470 million ($343 million), Telefónica Moviles Soluciones to expand anything to do with Sherritt’s extensive in- or about 36% of its worldwide assets of C$1.3 the network, and by year’s end and early vestments in Cuba’s energy, mining and tour- billion ($950 million). 2004, C-COM’s operations should reach all major tourist resorts, as well as provincial capitals where foreign vacationers arrive. C-COM uses GSM technology, which is the standard in 55 European, African and Asian countries. This allows people carry- ing GSM phones to use their handsets and phone numbers while in Cuba. After returning home, the company sends them the bill, and their service providers pay C-COM. It’s not known how many customers C- COM has, though the number is believed to be only a small fraction of the 8,000 sub- scribers signed up with Cubacel. 4 CubaNews ❖ October 2003 POLITICS Cuba’s new foreign policy focuses on sub-regional ties BY DOMINGO AMUCHASTEGUI influence — without the pressures or com- U.S. cities started signing up “sister cities” ot long ago, Cuba’s foreign policy was mitments of those other agreements with cen- in Cuba, while scores of U.S. lawmakers from essentially focused on two different lev- tral governments. both major parties began flocking to Cuba. autonomías els. One was people’s solidarity; the Thus, Spain’s and Germany’s The governors of three states — Illinois, N landers could, and would, come to represent Minnesota and South Dakota — have also other was government-to-government rela- an important base of support for many Cuban called on Castro, not to mention dozens of tions. The latter was viewed as the main ave- projects. Until 2000, when severe cuts were retired generals and political figures from half nue through which Cuba’s ties with the out- enacted, Spain’s autonomías provided an aver- a dozen administrations. side world could be enhanced and expanded. age of $10 million a year in assistance. Regardless of the various tensions still The policy was very much a reflection of its By 1999, according to Cuban officials, existing within the current administration, own perception about central governments. Spain’s Basque region alone had contributed the trend to promote these other important Cuba’s attitudes toward the United States re- $73 million. In addition, a few Spanish NGOs relations has produced significant results. flected this perception, so that when Cuban have granted Cuba much more funding for Over the last five years, Congress has wit- officials referred to Washington, they meant specific projects this year than what the nessed repeated efforts to abolish the U.S. the governing administration. European Union earmarked for Cuba over the travel ban and the embargo itself, while some In the 1960s, some U.S. scholars visiting last two years. limited trade opportunities have opened up. Cuba suggested a more open approach — one This is why Castro’s recent diatribe reject- In the House of Representatives, a persist- not focused only on specific administrations ing EU assistance was very careful not to ent majority vote supports such changes in but encompassing U.S. lawmakers, states and touch upon Cuba’s relationship with such spite of repeated maneuvering from the GOP universities as well. At the time, Cuban offi- provincial and regional authorities. leadership and the White House to avoid a cials didn’t pay much attention. The Castro government has followed a sim- two-house agreement that would force the But by the 1990s, economic hardships ilar approach with regard to Latin American President either to support it or veto it. forced Cuba to start listening, so that in 1990, countries that have strong federal structures Meanwhile, the Cuban government is sign- there were 490 “solidarity organizations” in 98 like Mexico, Brazil and Venezuela. Projects ing bilateral agreements with a growing num- countries; a decade later, there were 1,700 with some specific Brazilian states — Rio de ber of port and trade authorities and private pro-Cuba organizations throughout the world. Janeiro, for example — have become more corporations from many different states These groups reached out, seeking the important to Cuba than trade with all of Italy. including Florida. Other states have signaled assistance of major Western European and Following the Elián episode, Cuban offi- their readiness to follow a similar path. international NGOs. These NGOs today pro- cials concluded that a drastic change was The trend is clear: the Bush administration vide Cuba with an incredible amount of sup- needed regarding Cuba’s relationship with remains weighed down by its electoral com- port (funding, technologies, training, etc.) in the United States as well. mitments to the Cuban-American elite con- areas ranging from education and public The regime began targeting major compa- trolling South Florida’s political machinery in health to agriculture and energy. nies as potential trading partners, as well as a virtual one-issue hostage situation. Next came another important change: lawmakers from states where such compa- Subsequently, growing sectors of the U.S. Cuba realized that in addition to the central nies are based — together with state port business community, members of Congress governments of Spain, Italy, Germany and authorities and other officials, followed by a and U.S. public opinion are finally looking for elsewhere in Europe, provincial and regional new wave of exchanges with public and pri- new alternatives that will bring about new governments were also sources of power and vate universities (see story below). possibilities for effective engagement. MIDWESTERN STATES REAP THE BENEFITS OF U.S. FOOD EXPORTS TO CUBA wo prominent Montana lawmakers returned from Cuba last Last year, the island purchased more than 10,000 tons of peas, 42 tons month with a deal to sell $10 million worth of their state’s agri- of soybeans and 450,000 pounds of pasta from North Dakota. To date, T cultural products to Alimport over the next six months. the state’s farm and food exports to Cuba exceed $1.5 million, accord- Sen. Max Baucus, a Democrat, and Rep. Denny Rehberg, a Repub- ing to the North Dakota Farm Bureau. lican, said the $10 million contract covers wheat, malting and feed bar- “North Dakota has a heck of a lot of products that the Cubans ley, live cattle and dry beans. need,” said John Mittleider, vice-president for public policy for the “This is an historic agreement that will help boost Montana’s ag NDFB, which organized a trade delegation and the contingent that economy and create jobs,” said Baucus, a chief opponent of the embar- attended last year’s U.S. Food & Agricultural Exhibit in Havana. go. “This deal paves the way for future sales to Cuba.” One of the biggest winners has been Minnesota, which has sold $70 Rehberg said Alimport is especially open to importing organic million of food and agricultural exports to Cuba since trade opened in crops, among other Montana farm roducts. “This is the reason Max November 2001, said Kurt Markham, marketing services director for and I came to Cuba. Much of this was developed with groundwork the Minnesota Department of Agriculture. from previous trips and an earlier meeting with Castro,” said Rehberg. Another big beneficiary of trade with Cuba is Illinois, home to Meanwhile, FC Stone, an Iowa-based farm cooperative, said it has Archer Daniels Midland of Decatur. In 2002 alone, trade between signed a contract to sell $8 million worth of corn and soy to Alimport. Illinois and Cuba reached $68.6 million. And despite its large Cuban The deal brings to $33 million the value of food products FC Stone has exile population, Florida also reaped the benefits of trade, with $28.9 sold Cuba since late 2001. million in exports to the island nation last year. “We strongly support lowering the trade restrictions both ways,” One state not among the top 10 trading partners with Cuba is Texas, said Chris Aberle, director of domestic sales for FC Stone. Added Iowa though Cynthia Thomas, president of the Dallas-based Texas-Cuba State Sen. Matt McCoy, a Democrat: “This is just the beginning of Trade Alliance, is hoping to change that. what we hope will be a long-term relationship and a beginning to the “I started leading trade delegations to Cuba to help generate Texas end of restrictions on trade with Cuba.” exports,” she told The Beaumont Enterprise, adding that “I anticipate Nearby North Dakota has also benefitted from trade with Cuba. some significant purchases to be announced in coming weeks.” October 2003 ❖ CubaNews 5 TOURISM BRIEFS TOURIST ARRIVALS UP 14.8%, SAYS MINISTRY In their own words … Foreign tourist arrivals in Cuba rose 14.8% dur- ing the first eight months of 2003 compared to “Our hatred for Castro should not cause us to punch ourselves in the face. the same period last year, while tourism reven- And that’s what we’re doing here.” ues increased 19% and hotel occupancy rates — Rep. Jeff Flake (R-AZ), sponsor of a House amendment that passed 227-188, edged up by 4%. calling for a lifting of the 43-year-old ban on U.S. travel to Cuba. Antonio Romillo, Cuba’s deputy tourism minis- ter, predicts 1.9 million foreign tourists will visit “So far, having chosen not to engage Cuban society, the U.S. has abdicated the island this year, as Cuba leaps from 23rd the possibility of influencing the course of events in Cuba. It is time to call place to 9th place among Latin America’s top Castro’s bluff and start removing the crutches he uses to stay in power. tourist destinations. Increasing contact between Americans and Cubans is one way to begin.” Some 1.68 million visitors — coming mainly — Bill Reinsch, chairman of USA*Engage, in Sept. 4 testimony before Congress. from Canada, Spain, Great Britain, France, Italy and Mexico — traveled to Cuba last year, gener- “The reality of the situation is that investing in Cuba remains a very risky ating $2 billion in revenues. proposition. Proceeds from foreign investment go principally to the coffers of Miguel Figueras, a Tourism Ministry adviser, the Cuban state. Any economic benefit derived from tourism or other joint said 93% of all tourism-related investment is ventures does not filter down to the average Cuban citizen.” being carried out in the areas of Varadero, — Al Larsen, State Department undersecretary, testifying Sept. 6 on why the Bush Havana, Cayo Largo, Jardines del Rey, administration remains opposed to lifting the embargo against Cuba. Camagüey, Santiago de Cuba and Holguín. Varadero hotels alone reported $369 million in revenues and $119 million in profits during the “Now that we have ended the Cold War, it’s time to lift the embargo.” first eight months of 2003 — putting the beach — Former Soviet President Mikhail Gorbachev, speaking in Jacksonville at an resort on track to rack up $506 million in reven- Oct. 2 forum organized by the University of North Florida. ues and $129 million in profits for the entire year. Cuban tourist authorities said the average tourist “Arguments for a different kind of U.S. policy remain valid — openness in Varadero spends $86.20 a day. breeds more openness. The international community’s human rights concerns Five hotels totaling 1,600 rooms are now under need to be addressed, however, for such benefits to be sustained.” construction in Varadero; when completed, the — James R. Jones, former U.S. ambassador to Mexico and chairman of the resort will have around 16,000 hotel rooms. Washington-based Center for National Policy’s Cuba Advisory Group. Hotels owned by Spain’s Grupo Sol Meliá in Varadero reported a 50% growth during the first “As a second-generation Cuban-American, I applaud Congress for asserting seven months of 2003. my right to travel [to] Cuba. Family comes first, and my heritage is an essen- The chain runs six properties in Varadero, tial part of who I am. I must be free to see my grandmother’s land.” which together generated $64 million in rev- — Patricia Morán, secretary of the Cuban American Alliance Education Fund. enues from January to July 2003. Hotel stays also increased by 28% to over “Today’s legislation, with its strong bipartisan support, indicates that there 914,000 compared to the same period last year. is momentum within Congress to end the travel ban. The U.S. economy, with In related news, a 306-room Barceló Cayo particular concern for the weakened travel industry, cannot afford to continue Largo Beach Resort Hotel will be inaugurated by losing out on such a vital market.” year’s end in Cayo Largo del Sur, an islet in — Michael Zuccato, president of the Association of Travel Related Professionals. Cuba’s Los Canarreos archipelago. ELEGANT SOFITEL SEVILLA REOPENS IN OLD HAVANA “The current self-isolation of Cuba is hurting the Cuban population.” — German Foreign Ministry, in a Sept. 25 protest against Cuba’s internal policies. The Sofitel Sevilla Hotel, considered one of the crown jewels of Cuba’s hotel industry, has “Providing material benefit to a regime, which only six months ago undertook reopened after extensive renovation works. the most significant act of political repression in the Americas in a decade, The 170-room property, owned by Cuba’s state- strikes us as deeply unwise.” run Gran Caribe and managed by French hotel — State Department spokesman Richard Boucher, reacting Sept. 11 to the House chain Accor, is located on Calle Trocadero vote to ease travel restrictions to Cuba. between Calle Zulueta and Paseo del Prado in Old Havana. “It’s completely absurd. Children are among the most sacred of things in Originally inaugurated in 1908, the newly Cuba. It’s nothing more than a political ploy, an insult to our national dignity.” restored hotel is characterized by an elegant — Lázaro Herrera, spokesman at the Cuban Interests Section in Washington, criti- façade and Moorish-style interior design. cizing a State Department report that blasts Cuba for sexually exploiting minors. BOOKING FAX SAYS CUBA IS NO. 1 DESTINATION “Both powers together can’t defeat the Cuban revolution.” The Spanish firm Booking Fax, which has over Fidel Castro 11,000 users, reports that Cuba is now the most — , lumping the United States and the European Union together in a visited destination in its computer system. Sept. 8 speech launching the new school year. The company says Cuba tops the list of coun- tries in the Caribbean, followed by the “We once again ask the country’s authorities for a gesture of clemency for Dominican Republic, the Maya Riviera and these people in prison, above all taking humanitarian considerations for Cancún (the latter two in Mexico). their age, state of health and gender.” Booking Fax collects, orders, classifies and — Cuba’s Roman Catholic bishops, in a cautiously worded 14-page state- supplies all travel offers from providers — via the ment faulting the Castro regime for its recent jailing of 75 dissidents. Internet — to major travel agencies. 6 CubaNews ❖ October 2003 world — and fewer than 0.1% of Cubans in the The UNDP report says that in 2000, Cuba UNDP — FROM PAGE 1 18-49 age bracket live with HIV or AIDS. consumed 1,049 kilowatt-hours of electricity a team of experts and advisors. It touches on Finally, while 17% of all Cubans are said to per-capita, up from 973 kwh in 1999 and 823 all key aspects of life in both the developed be undernourished, only 4% of the island’s kwh per person in 1980. Carbon-dioxide emis- and developing world: demographics, health children below the age of 5 are underweight. sions came to 2.3 metric tons per-capita care, education, technology, income distribu- Some 98% of Cubans have “access to im- (down from 3.2 tons in 1980), or 0.1% of the tion and so-called “gender empowerment.” proved sanitation, and 95-100% have “sustain- world total, and traditional fuel consumption As is the case in most countries, Cuba’s po- able access to affordable essential drugs.” No amounted to 30.2% of total energy use. pulation has grown more urbanized. In 1975, statistics were available on the percentage of On the subject of access to technology, the 64.2% of its people lived in cities; by 2001, that Cubans using oral rehydration therapy, con- picture is mixed. Its “teledensity” of only 51 number had risen to 75.5%. By 2015, 78.5% of traceptives or cigarettes. lines per 1,000 inhabitants in 2001 is consid- all Cubans will live in urban areas. Public health expenditures came to 6.1% of erably better than the 31 per 1,000 recorded Yet between 1975 and 2000, the island’s Cuba’s GDP, while private health expendi- in 1990, but still ranks as the lowest penetra- total population grew by only 0.7% a year, and will slow even more, to only 0.2% a year HDI SCORES OF SELECTED LATIN AMERICAN AND CARIBBEAN COUNTRIES between 2000 and 2015. Given the island’s fer- tility rate of only 1.6 per woman (down from 27. Barbados 0.888 78. Jamaica 0.757 3.5 in 1970-75), Cuba’s population will reach 34. Argentina 0.849 82. Peru 0.752 only 11.5 million by 2015. 38. Uruguay 0.834 84. Paraguay 0.751 At the same time, the percentage of Cubans 40. Costa Rica 0.832 92. Guyana 0.740 under age 15 will drop from 20.8% in 2001 to 43. Chile 0.831 94. Dominican Republic 0.737 16.3% in 2015, while the percentage of senior citizens (those aged 65 and up) will jump from 52. CUBA 0.806 97. Ecuador 0.731 9.9% in 2001 to 14.4% in 2015. 54. Trinidad & Tobago 0.802 105. El Salvador 0.719 55. Mexico 0.800 114. Bolivia 0.672 CUBA: WORLD’S HIGHEST RATIO OF DOCTORS 59. Panama 0.788 115. Honduras 0.667 Virtually 100% of all births in Cuba are 64. Colombia 0.779 119. Guatemala 0.652 attended by trained health personnel. Cuba’s 65. Brazil 0.777 121. Nicaragua 0.643 infant mortality rate is 7 per 1,000 live births — lower than that of the United States and 69. Venezuela 0.775 150. Haiti 0.467 down from 34 per 1,000 in 1970 — while the *Human Development Index ranking and scores, as published in the UNDP’s Human Development Report 2003. under-five mortality rate is 9.0 per 1,000 live births, down from 43 per 1,000 in 1970. tures amount to 1% of GDP — translating into tion rates in Latin America. The report says 33 of every 100,000 Cuban total health costs of $193 per-capita in 2000. Furthermore, Cuba has only one cellular mothers died giving birth between 1985 and Turning to education, the UNDP report subscriber per 1,000 inhabitants (this service 2001 — putting the island’s maternal mortali- says that in 1998-2000, Cuba spent 8.5% of its exists mainly for tourists and foreign execu- total GDP on education, up from 6.7% in the tives), and only 10.7 Internet users per 1,000 ty rate above Costa Rica, Bulgaria, Uruguay 1995-97 period and 5% in 1960. Expressed as a — a lower proportion than that of Vietnam, and Chile. percentage of government expenditures, edu- Honduras or Senegal. Yet a Cuban girl born in 2003 has an 85.1% cation accounts for 15.1% of the budget in chance of surviving to age 65, while a Cuban 1998-2000, up from 12.6% in 1995-97 but down NOTHING TO BRAG ABOUT boy born today has a 79.1% probability of cel- from 18.4% in 1985-87. ebrating his 65th birthday. Where Cuba really falls behind, though, is The island’s adult literacy rate is 96.8%, up in the report’s “subjective indicators of gover- One-third of all Cuban mothers breast-feed from 95.1% in 1990 and 94% in 1985. Literacy their babies for six months, and 99% of 1-year- nance.” One is the so-called “polity score,” among youths aged 15-24 stands at 99.8%, up which reflects the presence of institutional olds are immunized against tuberculosis and from 99.3% in 1990 and 98.8% in 1985. factors necessary for democracy, and which measles. Cuba boasts 590 physicians per ranges from -10 (authoritarian) to 10 (demo- 100,000 inhabitants — the highest ratio in the STATISTICS AND MORE STATISTICS cratic). Cuba’s score is an unimpressive -7. In 2000-01, Cuba’s net primary enrollment On a scale of 1 to 7, with one being the best Life expectancy hits 76.4 years ratio was 97% (up from 92% in 1990-91, and its and 7 being the worst, Cuba scores a 7 on net secondary enrollment ration was 82% in both civil liberties and political rights. Other The average Cuban born today can ex- 2000-01 (up from 69% in 1990-91). Finally, 21% criteria — measured on a scale of -2.50 to 2.50 pect to live 76.4 years — giving Cuba the of Cuba’s university students are majoring in — include graft and corruption (Cuba’s score fourth-highest life expectancy in Latin science, math or engineering. on that one is a not-too-bad -0.12); voice and America and the Caribbean. Between 1996 and 2000, Cuba had 480 sci- accountability (-1.49); political stability and Unlike its regional neighbors, however, entists and engineers in working in research lack of violence (0.07); rule of law (-0.32) and Cuba’s population is rising very slowly. and development per million inhabitants, with government effectiveness (-0.22). According to an Oct. 1 article in Juven- R&D expenditures coming to 0.5% of the Cuba’s real embarrassment is in press free- tud Rebelde, by 2005 one in every four island’s total GDP. dom. Measured on a scale of 0-100, with zero Cubans will be over 60, and by 2015, more Cuba’s public education budget for the representing a completely free press and 100 people will be over 60 than under 15. 1998-2000 period — the most recent available a completely controlled press, Cuba clocks in Those who reach 60 are expected to —is allocated as follows: pre-primary and pri- at a dismal 94. In the entire world, only live at least another 20 years, and those mary, 44.5% (up from 31.9% in 1995-97 and Burma was worse, with a score of 100. who make it to 80, another seven. 25.7% in 1990); secondary, 36.7% (up from 33% Incidentally, the nation with the best overall And increasing numbers of Cubans are in 1995-97 but down from 39% in 1990), and 2003 Human Development Index is Norway making it to 100. In the province of Matan- tertiary, 18.5% (up from 14.9% in 1995-97 and — which scored 0.944 — followed by Iceland zas, 73 of an estimated 660,000 inhabitants 14.4% in 1990). (0.942); Sweden (0.941); Australia (0.939); are over 100 years old, with centenarians The report does not explain the fact that, in Netherlands (0.938) and Belgium and the living in 12 of 14 municipalities and the the breakdown of education expenditures for United States (all with 0.937). oldest one claiming to be 115 years old. 1990 and 1995-97, the totals add up to only Scraping the bottom are the African nations 79% rather than 100%. of Niger (0.292) and Sierra Leone (0.275). October 2003 ❖ CubaNews 7 AVIATION Air Canada expands routes to five top Cuban destinations BY LARRY LUXNER “This is a major expansion of services to say how much revenue Cuba represents to inancially troubled Air Canada has an- Cuba that positions Air Canada as the inter- Air Canada, though he did say the airline flew nounced “significant improvements” in national airline of choice serving the Carib- over 50,000 passengers to Cuba last year. F its air services to Cuba, including more bean’s largest island nation,” said Bill Bredt, “We determined that there are significant flights and the introduction of scheduled air vice-president of Air Canada’s network and growth opportunities among our warm-winter services on most of the 15 routes the carrier revenue management division. destinations,” he said. “Cuba has traditionally operates to Cuba from cities across Canada. Air Canada, the 11th-largest commercial been a very popular destination for Canadi- The airline said Sept. 3 that its customers ans, and because we’re seeing a continued “will now have the choice of purchasing air increase in demand, that has led us to signifi- travel only or the convenience of inclusive hol- cantly increase our service year by year.” iday packages available in Canada through “What’s also interesting,” he told CubaNews “is that in addition to holiday packages, for Air Canada Vacations.” the first time we’re now offering scheduled For starters, the Montreal-based airline is services through our computer reservations boosting its overall service to Cuba this win- systems and online.” ter, offering up to 25 scheduled flights and J.J. Jennex, investor relations director at two charter-only flights from seven Canadian Leisure Canada Inc. in Vancouver, says Air cities to five Cuban destinations — a jump of Canada’s expansion is “obviously a positive 13 flights per week, or 90% more seats, from one” considering that 350,000 Canadians visit last year’s charter offerings. Air Canada A319 jet en route to Havana. Cuba annually. Air Canada’s seven gateway cities are Cal- “Canada is the No. 1 provider of tourists to gary, Toronto, London (Ont.), Ottawa, Mon- airline in the world, flies to more than 150 des- Cuba, and we represent about 20% of total treal, Moncton (New Brunswick) and Halifax tinations on five continents, and serves over tourism there,” said Jennex, whose company (Nova Scotia). New nonstop routes include 30 million passengers a year with a fleet con- is building three upscale hotel resorts in Montreal-Cayo Largo, Moncton-Holguín and sisting of more than 300 aircraft. It has been Havana, Varadero and Cayo Largo. “Cuban Halifax-Varadero. ranked as the world’s safest airline, and in a tourism makes sense as an investment today, On Dec. 2, Air Canada plans to launch year- 2002 survey by travel information publisher and all the projections we have are based on round, nonstop service between Toronto and OAG, was voted best airline in North America the U.S embargo staying intact.” Havana. The new Toronto-Havana flights will for the second time in three years. Yet Americans hoping to use Air Canada’s be offered on Tuesdays, Thursdays and Yet the airline was recently forced to apply website to book trips to Cuba will find them- Sundays, using 120-seat Airbus A319 aircraft for protection from creditors, and the combi- selves out of luck. Reber declined to comment in a two-cabin configuration. Round-trip fares nation of Toronto’s recent SARS outbreak and on how many Americans might use Air from either Montreal or Toronto to Havana war in Iraq will cost Air Canada a projected Canada to circumvent the Cuba travel ban, are now being offered starting at C$398 C$1 billion in 2003 losses. only to say that “all our U.S. offices continue (US$292) for travel from Dec. 2 to Feb. 15. Airline spokesman John Reber declined to to comply with the U.S. embargo.” BWIA, Aeromar begin flights to Havana Chile’s Sky will also fly to Cuba Santiago-based Sky Airlines, owned by wo Caribbean airlines, Trinidad’s BWIA $5.5 million to International Lease Finance. German executive Jurgen Paulmann and and the Dominican Republic’s Aeromar, The jets were returned only after government Chilean businessman Fernando Uauy, T have begun flying to Havana as part of officials in Port of Spain promised to pay off plans to launch direct air service between their separate regional expansion strategies. the debt on behalf of BWIA, which has lost Chile and Cuba by the end of 2003, accord- BWIA (formerly British West Indies Air- $30 million since the beginning of this year. ing to local sources. ways), inaugurated its Havana service in Meanwhile, Santo Domingo-based Aeromar Sky Airlines started domestic operations June, carrying 72 Trinidadian business exec- Linas Aéreas Dominicanas has announced that in 2002 and now has a 22.5% share of the utives on a trade mission to Cuba (see related during the summer, it’ll fly to Havana twice a Chilean market. It transports about 45,000 story, page 11). week (Mondays and Fridays), but the frequen- passengers on 500 flights a month. Since then, the airline has been flying Wed- cy will rise to three flights a week in winter. Sky opened its Havana office in 2001. At nesdays and Saturdays from Port of Spain to Aeromar provides services to business present, the vastly larger LanChile — Havana, using B737-800 aircraft for the 3-hour executives, students, athletes and participants which flies from Santiago to Havana twice trip. Return flights are Thursdays and Sun- in various events. a week — is the only Chilean airline with days; round-trip tickets cost $400 plus taxes. On its route to Cuba, the Dominican airline both domestic and international flights. On its website, BWIA also offers a $685 — represented in Havana by Cubanacán Ex- Sky has not decided whether its flights package from Port of Spain (and $799 from press — uses 118-seat Boeing 737-200 planes. will be charter or regular ones. Georgetown, Guyana) which includes round- The small airline already flies from both It’s also not known how much Paulmann trip airfare to Havana, airport transfers, four Santo Domingo and Santiago de los Caballeros and Uauy are investing in their venture, nights of hotel accommodation, daily break- to New York, and from Santo Domingo to though capital for the planned investment fast and all taxes. Miami, Aruba, Caracas and Curaçao. will likely come from the sale of Paul- A BWIA official who asked not to be named Details: BWIA Corporate Communications, mann’s supermarket chain, Las Brisas. said the airline’s decision to begin service to Port of Spain, Trinidad. Tel: (868) 627-2942. The 18 stores in the chain will be sold sep- Cuba is rooted in politics, not business. URL: www.bwee.com/about/trasol_cuba.htm. arately, in hopes of getting a higher price. The airline — which is 33.5% owned by the Aeromar, Avenida Winston Churchill 71, Paulmann’s group of companies, which Trinidadian government — is in such serious Esq. Desiderio Arias, Santo Domingo, Domini- include food chain Gelatos and wholesaler financial difficulties that two of its planes were can Republic. Tel: (809) 533-4447. Fax: (809) Adelco, posted 2002 sales of $250 million. recently seized in Miami for non-payment of 533-4550. URL: www.flyaeromar.com. 8 CubaNews ❖ October 2003 NEWSMAKERS CANF’s Joe García: ‘President Bush has let us down’

BY LARRY LUXNER antique maps of the Caribbean. “We’ve been much more productive policy.” oe García wasn’t around when Fidel good voters, solid taxpayers and great Repub- One of those “rational” policies was the Castro took power in Cuba; in fact, he’s licans. We shouldn’t have to ask for scraps CANF’s surprise announcement last year that Jnever even been to the island. from the floor.” it would negotiate a peaceful, democratic tran- But cubanismo runs deep in García’s blood, García said the CANF’s budget oscillates sition in Cuba with Foreign Minister Felipe and today, the 39-year-old lawyer is executive between $1.2 million and $2 million a year. Pérez Roque, Vice President Carlos Lage, National Assembly President Ricardo Alarcón director of the Cuban American National “We don’t take any money from the federal government,” he insisted. “Only once, in or any other Cuban leader whose last name Foundation. As such, he proudly serves as doesn’t happen to be Castro. the voice — some would say the mouthpiece 1983, we received a National Endowment for Democracy grant. Since then, we haven’t “We’ll talk to anybody who is willing to — of the largest and most influential Cuban bring about change in Cuba, except exile organization in the United States. for Fidel and Raúl. The reason is, Last month, CubaNews interviewed García they could do this tomorrow. They for more than an hour and a half at CANF don’t need the CANF to shift policy headquarters in Miami. He spent much of towards democracy. Fidel could that time explaining why the Cuban-American LARRY LUXNER send a limo to pick up [Oswaldo] community is so disillusioned and disgusted Payá and [Vladimiro] Roca, take with President Bush. [Dr. Oscar Elias] Biscet out of jail, “We criticized the Clinton administration bring them to the national palace, without pity or mercy, and it was probably and the day after we could begin a much stronger than any criticism we’ve lev- democratic transition to Cuba. eled at Bush,” García said. “The problem is “But in the end, Castro is not that this administration — which received interested in a rational debate on 85% of the votes of the Cuban-American com- Cuba. Pérez Roque and Alarcón munity — has practiced perfect rhetoric and aren’t gonna talk to us. Because if complete inaction, leading to nothing more those guys are willing to talk, it than status quo policies on Cuba.” wouldn’t be not dialogue, it would He added: “When Ronald Reagan was in be conspiracy. And I’m willing to power, he saw Eastern Europe for what it was. conspire with anyone to bring about This administration sees Cuba for what it is, an end to that regime.” and wants to keep it that way. They do not Fortunately for García, he doesn’t want to rock the boat.” think he’ll have to wait much longer. CANF’s executive director, Joe García, at his Miami office. DEMANDING RESPECT FOR CUBAN-AMERICANS “Within 10 years,” the politician predicts, “Fidel Castro will not be in García was born in Miami Beach’s Mount received a penny from the government.” power, Cuba will be a social democratic Sinai Hospital (“that accounts for my Jewish Rather, CANF’s funding comes from its nation, and the Cuban-American community looks,” he joked) only two years after his fam- 10,000 monthly members paying $5 a month, will be the driving engine of Cuba’s future.” ily emigrated from Cuba. One of his grandfa- another 50,000 or so annual contributors, and thers was a bus driver on the old Route 7 a 170-member board of directors that bank- PROGRESS ON 4 SPECIFIC ISSUES between Havana and the town of El Cotorro, rolls about half of CANF’s total budget. Meanwhile, says García, that community now a suburb of the capital. “The foundation has always been a rational wants to see substantial progress on four spe- At the University of Miami, García was purveyor of a practical Cuba policy,” he said. cific issues: Radio and TV Martí, immigration elected president of student government, and “I think there was a period after [CANF policy, money for Cuban dissidents, and the after graduating with a bachelor’s degree in founder Jorge] Mas Canosa’s death, and a bit indictment of Castro himself for ordering the political science and public affairs in 1987, he during the Elián tragedy, that we slipped to an shootdown of two Brothers to the Rescue got involved with the CANF’s Cuban Exodus extreme. People inside the foundation played planes over international waters in 1996. Relief Fund, which brought Cubans from to that, which was a mistake. I don’t think “Radio and TV Martí have become one of third countries to U.S. shores as refugees. extremes make up the debate.” the largest taxpayer hoaxes ever visited upon Garciá went on to earn a law degree in 1991 CANF NO LONGER AN ‘EXTREMIST’ GROUP the Cuban-American community,” García from UM, and then spent seven years on the charged. “They’ve become a political patron- Florida Public Service Commission, eventual- Under the more moderate leadership of age center for mediocre talent. Ten years ly becoming the most prominent Hispanic in Mas Canosa’s son, Jorge Mas Santos, the later, what do we have to show for it? Radio Florida government, and the first Hispanic CANF’s policies began to seem less extreme. Martí’s listenership is one-tenth what it was in ever to be named chairman of the PSC. One reason for this, he suggested, was the the ‘90s, and TV Martí is a joke. We’ve spent During his tenure there, García devoted his hiring of Washington director Dennis Hays, over $100 million just on TV Martí, and the time to everything from electricity rate hikes who left that position last month after three only people who watch it are the poor bas- to potentially controversial area-code splits. years, partially because he disagreed with the tards over at the Ministry of Interior.” These days, he’s much more interested in CANF’s sharp criticism of the White House. García scorned the Bush administration’s freeing political prisoners in Cuba, improving “Dennis did a fantastic job for us,” said recent announcement that it would begin Radio and TV Martí, and getting the respect García, who remains friends with Hays. “He transmitting via satellite, thereby dramatically he says Cuban-Americans deserve from their left an ambassadorship to join our foundation, boosting TV Martí’s audience. elected officials in Washington. as I left a high-level job to join the foundation. “Less than 10,000 people in Cuba have “Cuban-Americans have earned the right to Dennis put us back into the rational column satellite dishes, and most of them are in the sit at the table with other citizens,” said Gar- as opposed to the extremist column. He was government. If you’ve got a satellite dish, cía, whose third-floor office is decorated with able to galvanize the leadership of Mas you’re also getting CNN, HBO, the Playboy political posters, Cuban flags and pseudo- Santos, and we began to have a rational and Channel and Spice. With all those options to October 2003 ❖ CubaNews 9 choose from, who the hell is gonna watch a help to dissidents, even though many leading polls show “there has clearly been slippage on government-run propaganda channel?” dissidents including Payá and Elizardo Bush’s 85% approval rate among the Cuban- An even more crucial issue, he said, is U.S. Sánchez insist U.S. government assistance American community. He thinks we’re a sure immigration policy. According to García, the only taints their reputations and endangers thing, but we’re being taken for granted.” lottery system by which the U.S. awards visas their lives. to 20,000 Cubans each year “is based on a list García counters that Payá, Sánchez and COZYING UP TO THE DEMOCRATS compiled in 1996, and the Cuban government other dissidents still in Cuba have to say that Does this mean that vast numbers of has not allowed the U.S. government to in order to avoid jail sentences or worse. Cuban-Americans could end up electing a refresh that list. There’s a generation of “Today, we send Cuba a measly $4 million a Democrat to the White House? Cubans who don’t qualify for the lottery.” year, most of which gets pumped into Miami- That’s up to President Bush, said García. More importantly, asks García, “why do we based exile groups. We should be spending “Thus far, Howard Dean’s position is just have an immigration program that rewards $40 million a year on non-profits that send like that of the president. Gephardt has a 27- the dictatorship? It should be controlled by money to Cuba to help foment civil society,” year perfect record on Cuba. Joe Lieberman also has a perfect voting record on Cuba, and has personal relationships with many people in this community. He’s a friend,” said García. “Cuban-Americans have earned the right to sit at the table with “The only distinction between the Demo- crats and the Republicans is that the Demo- other citizens. We’ve been good voters, solid taxpayers and great crats running for president don’t have the responsibility to act. The White House does.” Republicans. We shouldn’t have to ask for scraps from the floor.” Meanwhile, he said, most Cuban-Americans — CANF EXECUTIVE DIRECTOR JOE GARCÍA will continue to support the embargo — just as they’ve done for the last 43 years. “Those in the only position to offer sensible progress, ethical, resourceful entrepreneur- the United States, not Cuba. We should stop it he said, adding that “the only countries that ship refuse to do business in Cuba. The over- and demand a full review of immigration poli- have migrated to centrist, capitalist, produc- whelming majority of Cuban-Americans who cy. Today the lottery system is used to exploit tive social economic models are those where are doing business in Cuba are disreputable, those who win lotteries. Those who have been a large civil society took power — for exam- non-trustworthy and unethical,” he said. difficult to the regime don’t get exit visas. ple, Poland, the Czech Republic and Slovakia. “We disinvested in South Africa. That didn’t Professionals have to pay thousands of dollars Other countries like Russia, Albania and cost hundreds of millions, but tens of billions to the regime to get out. The U.S. government Bulgaria went in the wrong direction because to the U.S. taxpayer. But we did it gladly should not be participating in extortion.” those countries had no civil society.” because it was the right thing to do.” And rising U.S. food exports to Cuba have Isolating Cuba is no different, García MORE DOLLARS FOR DISSIDENTS only made the situation worse by bankrolling insists, no matter how long it may take. García also criticized the “wet foot-dry foot” the Castro regime, says García. “My point,” he says, “is that Cuban-Ameri- policy that grants asylum to Cubans who “This administration has done more busi- cans have done something historically signifi- make it to U.S. soil but turns back those who ness with Cuba than any administration since cant: they’ve said no to what could be tremen- don’t. The result, he said, is that “the Coast John Kennedy was in the White House,” he dous economic opportunities, because they Guard intercepts a boat in the middle of the said. “They’re spending $200 million a year on have held firm to their convictions.” ocean, scoops up someone who’s dehydrated, food. Cuba’s purchases are not based on their It may sound pompous, but García can only sunburned and seasick, throws him on the nourishment needs, but on congressional dis- conclude that “without Cuban-Americans, deck, conducts an interview and drops him tricts. They’re buying congressional votes. there is no future for Cuba. And as soon as off in Havana.” “Right now, we are very dissatisfied with Cuba offers any type of democratic change, Finally, the CANF urges more financial this administration,” he added, hinting that its future will be limitless.” Castro government agrees to drop visa requirement for Cuban exiles he Cuban government plans to stop requiring visas for overseas Cubans living abroad who hold a valid Cuban passport will be able to Cubans who want to visit the island nation. The proposal was visit Cuba without the need for any previous paperwork,” said the min- T announced Sept. 27 by Foreign Minister Felipe Pérez Roque at istry, clarifying that the measure will only exclude those who “engage a meeting with about 300 Cuban-Americans in New York. in repugnant or damaging activities against the interests of Cuba.” “For many years, we’ve been making steps with the Cuban commu- The Foreign Ministry added that the aim of the measure is “to con- nity abroad that haven’t been able to advance more” because of the tinue facilitating, despite the obstacles of the blockade and the anti- opposition of Miami’s Cuban-Americans, said spokesman Lazaro Her- Cuban mafia, contacts between Cubans living abroad and their fami- rera of the Cuban Interests Section in Washington. “Now there has lies in Cuba.” To that effect, the ministry also confirmed that its “Third really been a generational change in Florida, where a majority of Cub- Conference on Nation and Emigration” would be held May 27-29, ans support normal relations with the island.” 2004, in Havana. The CANF supports Havana’s announced policy, said executive The gathering — initially scheduled for last April — was postponed director Joe García. after hundreds of exiles decided not to attend in protest of the dissi- The State Department had no immediate comment. U.S. policy dent crackdown that had taken place a month earlier. allows Cuban-Americans to visit relatives on the island once a year In related news, the U..S. Interests Section in Havana says it has without permission, but additional trips must be approved by the granted travel documents to 20,000 Cuban citizens this fiscal year, ful- Treasury Department’s Office of Foreign Assets Control. filling migratory accords between the two nations in effect since 1994. Meanwhile, a statement issued by the Cuban Foreign Ministry on Under the agreement, Washington must award immigration papers Oct. 2 confirmed that Cubans abroad would no longer need to pur- to 20,000 Cubans each year to maintain safe, legal and orderly migra- chase the $100 visas; rather, all they have to do is buy an airline ticket tion from Cuba to the United States. A statement from the U.S. diplo- and come whenever they want. matic mission urged the Castro government to grant exit permits to “When the decision goes into effect, after the first quarter of 2004, those Cubans who have received their travel documents. 10 CubaNews ❖ October 2003 CARIBBEAN AFFAIRS Trinidad & Tobago seeks to expand trade links with Cuba BY LARRY LUXNER leads “which are expected to materialize in sumer market in the Caribbean. That’s why ommercial relations between Cuba and the near future,” and chemicals manufacturer everybody is watching it,” said Poon. “Cuba is the twin-island republic of Trinidad & SCL (Trinidad) Ltd. reports that its negotia- trying to fight a very big country and has not C Tobago — long a supporter of the tions since 2000 have resulted in “orders and been very successful.” Cuban revolution — appear to be strengthen- shipments” for the past year. At the same time, he said, “we’re also fight- ing the Mexicans and the Colombians for that ing, following the recent visit of a Trinidadian A DOUBLE-EDGED SWORD trade mission to Havana. market. They’re probably salivating too.” In addition, 71 Cuban doctors and nurses “We think the possibilities are vast,” said At present, 90% of Poon’s production is ex- have arrived in Trinidad in the last few Natasha Mustapha, the TTMA’s chief execu- ported to nearby markets like the Dominican months, assigned to hospitals in Arima, San- tive officer. “What is difficult for us to under- Republic, Guyana, Belize and Jamaica. gre Grande, Princes Town and Couva. Anoth- stand is Cuba’s way of doing business. It’s not “People have been trying for years to do er 50 Cuban health specialists will arrive in what we are accustomed to. It’s a bit of a cul- something with Cuba, hoping they’ll get January to help alleviate the country’s serious tural shift for us. Cuba is still a communist lucky,” he said. “European governments shortage of medical personnel, according to state, you need a license to import everything understand that they have to keep trade Trinidadian Health Minister Colm Imbert. and all that is controlled by the government.” going, so they offer their manufacturers good The warming ties come as Cuba negotiates In addition, Trinidadian companies face credit facilities, and I suspect that Mexican a free-trade agreement with the 15-member repercussions from the United States for trad- manufacturers are getting something too.” Caribbean Community (Caricom), which in- ing with Cuba under the Helms-Burton Act. Poon adds: “I think there is business to be cludes Trinidad, Jamaica, Barbados and the “Local [Trinidadian] companies have to had, but the availability of relatively cheap rest of the English-speaking Caribbean, as decide which is more important,” Mustapha credit definitely has to play a part. To say well as Suriname and Haiti. told CubaNews. “As long as the embargo is in there’s demand is a lie, because demand has A joint council meeting on those trade talks place, if they’re trading with the U.S., they to be backed by money.” will take place later this month at Caricom’s can’t trade with Cuba. If they do, they could REPUBLIC BANK OFFERS TO FINANCE TRADE headquarters in Georgetown, Guyana. lose their American business, including the shipment of raw materials and exports. It’s That’s where Republic Bank comes in. CURRENT BILATERAL TRADE IS NEGLIGIBLE sort of a double-edged sword.” The bank, founded in 1837, is Trinidad’s With 1.3 million inhabitants, Trinidad — the David Roger Poon is CEO of Agostini largest financial institution, and has assets of land of calypso, carnival and steel bands — is Industries Ltd., a maker of disposable diapers over $3.1 billion. Republic operates subsidiar- the most populated English-speaking country and sanitary napkins. ies in Barbados, Grenada, Guyana, St. Lucia in the Caribbean after Jamaica. “There’s a potential market because Cuba and the Cayman Islands, and recently estab- Its status as an oil exporter has always has 11 million people and is the biggest con- lished a representative office in Havana. given the nation a relatively high per-capita Gavin Ottley, a management associate in income, and its trade with other Caribbean the bank’s trade finance division, said countries as well as with the United States T&T COMPANIES HOT ON CUBA Republic’s Cuba portfolio stands at around and Great Britain is well-established. $30 million. Agostini Industries Ltd. “We conduct our dealings as a bank would Yet trade between Cuba and Trinidad is still Carib Glassworks relatively negligible. In 2002, Trinidad’s ex- from a credit standpoint,” he said. “Our office ports to Cuba came to TT$79.3 million ($12.5 Caribbean Packaging Industries Ltd. in Havana offers trade finance lines, which we million), and consisted of ammonia, (TT$71 Consolidated Appliances Ltd. extend to Cuban government entities. We’re million, or $11.3 million); steel and wire rods Electrical Industries Ltd. looking to see if we could possibly establish (TT$7 million, or $1.1 million) and petroleum Erin Meat Packers Ltd. facilities for foreign investors. It’s something products (TT$1.3 million, or $200,000). Geneva Enterprises Ltd. we’re considering right now.” Ottley said Trinidad is looking to develop Cuban exports to Cuba totaled only TT$1.5 Global Marketing Enterprises Co. Ltd. million ($240,000) and consisted mainly of trade with the entire Caribbean Basin, includ- H. William Bookstore Ltd. ing the Spanish-speaking islands. cigars and corrugated paper products. Hakim Juman & Sons Ltd. Boosting that trade was the main objective “We are very optimistic,” he said. “The buy- of a Jun. 24-27 mission to Cuba that included Hilton Trinidad & Conference Centre ing potential is certainly there, so we don’t 72 executives from 28 Trinidadian companies MDC-UM Ltd. have a problem with Cuba’s ability to pur- (see box at right for list of participating firms). Misons Industries Ltd. chase. We also have financing arrangements The mission was co-sponsored by Republic Naisa Brand Products Ltd. in place that Cuban companies can benefit Bank Ltd., the Trinidad & Tobago Manufactu- Radica Trading Co. Ltd. from. We take the risk away from suppliers by rers Association (TTMA) and the Trinidad In- RBTT Bank Ltd. financing them up front, and then getting paid directly by the Cuban companies afterward.” dustrial Development Corp., and also includ- Republic Bank Ltd. ed Diane Seukeran, minister of state in Trini- How quickly Republic Bank collects its Richcare Industries Ltd. debts from the Cubans depends on the nature dad’s Ministry of Trade and Industry. Sacha Cosmetics Ltd. Delegates flew to Havana on the first direct of the companies themselves. flight from Port of Spain by BWIA, Trinidad’s SCL (Trinidad) Ltd. “We deal mainly with Cimex and Etecsa,” flag carrier (see related story, page 7). Sissons Paints Ltd. Ottley said. “We have stayed away from small- One week after the mission, Geneva Enter- S.M. Jaleel & Co. Ltd. er companies.” prises Ltd. said it had shipped a small order to The House of Paper Products Ltd. Cuba. H. Williams Bookstore now has a link Trinidad Brushware Ltd. Details: Natasha Mustapha, CEO, Trini- dad & Tobago Manufacturers Association, to Cuba’s largest printing operation, while Trinidad Industrial Development Co. MDC-UM has promising leads to government CIC Bldg., 122-124 Frederick St., Port of Unicom Ltd. Spain, Trinidad. Tel: (868) 623-1029. Fax: agencies interested in metal school furniture. Vemco Ltd. Likewise, Electrical Industries Ltd. has (868) 623-1031. E-mail: [email protected]. October 2003 ❖ CubaNews 11 FOREIGN TRADE CARIBBEAN BRIEFS CARICOM LEADERS DISCUSS CUBA WITH BUSH Lula signs $200m in deals with Fidel Leaders of four English-speaking Caribbean nations described their relations with Cuba razil and Cuba signed $200 million in Last year, trade between Brazil and Cuba during a Sept. 25 breakfast meeting with business deals during a highly success- came to around $88 million (see our extensive President Bush in New York. Bful visit to Havana by Brazilian Presi- report in the June 2003 issue of CubaNews). Among the leaders in attendance were three dent Luiz Inacio Lula da Silva, an old friend One company that might see immediate prime ministers — Grenada’s Keith Mitchell, and admirer of Fidel Castro. benefits from the Lula visit is Volvo do Brasil, St. Lucia’s Kenny Anthony and the Bahamas’ Specifics of the agreements weren’t dis- which recently sold 33 tourist buses to state Perry Christie — and Guyanese President closed, though Brazilian officials told AP and tourism agency Veracuba; it already provides Bharrat Jagdeo. Reuters that they included $140 million in 90% of vehicles used in Cuba’s tourist sector. Mitchell, speaking on behalf of his col- deals with Brazilian firms to build four beach Luiz Carlos Caparelli, sales manager of leagues, said that the 15-nation Caribbean resort hotels. Other deals reportedly involve Volvo do Brasil, told Cuban daily Granma his Community (Caricom), as a friend of both the sugar and transportation industries. company could contribute greatly to alleviat- countries, “stands ready to facilitate more Brazil’s National Social and Economic De- ing the island’s urban transport shortage. velopment Bank (BNDES) is to provide finan- engagement between America and Cuba on “We offer the best of our experience to issues of common concern. We are prepared cing for the investments, though bank offi- Havana so that it can incorporate the trans- cials denied earlier suggestions that BNDES to help in whatever way we can.” port solution we achieved in Curitiba [a city of In response, Bush held fast to his position was negotiating a $400 million credit line for 2 million], where the Volvo do Brasil plant is the Castro government. that “economic growth will only come about based,” he said. in Cuba when it embraces democracy.” Earlier this year, CubaNews reported that Caparelli mentioned the possibility of send- BNDES had extended a $60 million loan to ing chasses to Cuba, thus enabling buses to CUBA MAY DISPOSE OF BERMUDA’S ASBESTOS Cubacel — a state-owned cellular monopoly be assembled at the Guanajay plant. — so it could purchase badly needed mobile Cuba could help solve Bermuda’s asbestos Meanwhile, Brazilian state oil giant Petro- waste disposal problem, if a proposal by local telephone equipment from the Brazilian sub- bras has signed a letter of intent with Cuba on sidiary of Swedish telecom giant Ericsson. firm Island Construction Services is accepted “Cuba is very honored,” said a beaming technological exchange as part of a strategy by the wealthy British colony. Castro with Lula at his side. “This is the best to return to the island in search of crude. For a total cost of $4 million, the Cubans are trip we have had in a long time.” Petrobras CEO José Eduardo Dutra said prepared to receive the asbestos for repro- The two presidents signed accords on edu- his company was studying at least one block cessing. Last November, an agreement was cation, health, agriculture and fishing, as well that should be offered on a concession basis endorsed by the Cuban government and the as an agreement to renegotiate Cuba’s $40 by the Cuban government. provincial governor of Havana. million debt with Brazil, whose sizeable dele- “We have already been there and drilled The deal would indemnify Bermuda from li- gation consisted of 20 Cabinet members, 50 one well five years ago, and now Cuba will be ability should anything go awry with the can- business executives and 30 lower-ranking licensing other blocks,” Dutra told Reuters. cer-causing toxin once it leaves Bermuda’s government officials. Petrobras also has interest in working there.” shores, the Royal Gazette reported Oct. 2. Yet critics from Miami to Madrid were out- The company’s first wildcat well off Cuba’s ICS president Zane DeSilva confirmed that raged that Brazil’s leftist leader had refused to northern coast turned out to be dry, leading it his company and subsidiaries had negotiated meet with dissidents or even discuss Cuba’s to pull out of Cuba after spending $15 million. for Cuban companies to receive Bermuda’s dismal human-rights record with Castro. If it does re-enter the market, Petrobras will asbestos for reprocessing in Cuba. “What Lula did was horrible and condemn- join two other Brazilian entities that have in- The deal involves 285 containers of domesti- able,” said Joe García, executive director of vested heavily in Cuba: Busscar Onibus S.A., cally generated asbestos, but could easily be the Cuban American National Foundation, which assembles buses, and Souza Cruz S.A., expanded to include asbestos left on the “but it’s no more disgusting than Florida cat- which produces cigarettes for domestic use in island years ago by the U.S. Navy. tle dealers sending cattle to Fidel’s brother.” a joint venture with state-run Tabacuba. Great Britain has said it would provide tech- nical assistance, by paying for consultants to study the issue and make recommendations, ATRIP appoints new executive director though publicly London has been careful to CubaNews for this issue — saying ATRIP has distance itself from any suggestion that it will radley D. Belt, an adviser with expertise accept liability. in global business strategy, international not yet issued a press release announcing his Bfinance and legislative and regulatory appointment — information gleaned off the CUBA TO CARIBBEAN NEIGHBORS: DON’T WORRY policy, has been hired as the new executive website of the Center for Strategic and Interna- director of ATRIP — the Association of Travel tional Studies indicates that Belt was a senior Cuba says neighboring Caribbean countries Related Industry Professionals. vice-president at CSIS, responsible for policy need not be adversely affected in the event Belt takes over from Brent Gibadlo, who development, corporate strategy and oversight Washington lifts its travel ban against Cuba. helped get the travel lobby off the ground but of the center’s international finance, informa- To protect smaller Caribbean destinations, has returned to school to pursue an MBA. tion technology and domestic policy initiatives. says Cuba’s ambassador to Barbados, José ATRIP was established Jun. 26 as “a voice to Belt joined CSIS from Capitol Hill, where he Alvarez Portela, a system of multi-destinations professionals in the travel industry who sup- served as Republican counsel to the Senate would have to be worked out, where visitors port the Constitutional right to freedom of Banking Committee and chief counsel to the spend two or three days in Cuba before mov- travel for all Americans.” Securities Subcommittee. ing onto another island. Its goal is to eliminate the restrictions that Belt has written and lectured on finance and “Imagine one million tourists from America prevent most U.S. citizens from traveling legal- legislative policy issues, and has appeared as a going to Cuba. We do not have the infrastruc- ly to Cuba. The organization’s main objectives commentator on CNN, C-SPAN and CNBC. ture,” Alvarez told the Barbados Advocate, and strategies are more thoroughly explained He is a graduate of the Georgetown Univer- adding that while many more hotels will be in a recent interview with Gibadlo (see sity Law Center and is a member of the State of built, Cuba will have to bear the entire costs CubaNews, August 2003, page 8). New York, District of Columbia and U.S. of such expansion since it is currently unable While Belt declined to be interviewed by Supreme Court bars. to obtain loans from international agencies. 12 CubaNews ❖ October 2003 Latin American currencies. According to the study, which was featured BUSINESS BRIEFS Accor has three properties in Cuba: the 178- in a recent issue of Cuba Trader, 40-60% of the room Sofitel Sevilla City Center, along the food products for sale in Cuba’s 300 dollar CROWLEY: HAVANA NOW REGULAR PORT OF CALL Prado in Old Havana; the 300-room Mercure stores are imported. Food sold in these stores Cuba is now part of the regular sailing Cuatro Palmas in Varadero, and the 385-room is marked up dramatically, with the Castro schedule of Jacksonville-based Crowley Liner Coralia Club Playa de Oro, also in Varadero. government boosting prices of imported food Services, with Havana receiving a port call Details: Eric Peyre, Cuba Sales Manager, much more than for locally produced food. every 10 days from Jacksonville and every Accor Group, 5ta Avenida #6604, e 66 y 70, “The consumer may pay a price that is 200% other week from Gulfport, Miss. Miramar, Havana. Tel: +53 7 204-3353 or or more above the imported price or the price In 2001, Crowley became the first U.S. carri- 204-9582. E-mail: [email protected]. in one of the internal food markets,” says the er to get a license from the Treasury Depart- study. “Dollar stores, reportedly, sell imported ment’s Office of Foreign Assets Control BLUE SCORPION TOXIN HELPS CANCER VICTIMS products at 240% of cost, and products of (OFAC) to provide regularly scheduled com- More than 70,000 cancer patients are being national origin at 170%.” mon-carrier services for licensed cargo from treated in Cuba with a toxin extracted from It added that food sold in tourist destinations the United States to Cuba. blue scorpions, reports the AIN news agency. is marked up by as much as 300%. On Dec. 16, 2001, Crowley became the first The patients come from every province in The UF study says Cuba earns between carrier to call directly on Cuba from the U.S. Cuba, as well as from Europe and Latin Amer- $650 million and $800 million from total food in 40 years. Since then, it has shipped to the ica. The drug, known as Escozul, has already sales at dollar markets, while revenues from island a myriad of cargoes such as frozen benefited some 10,000 patients this year. imported food sold in dollar stores and in the poultry, apples, canned goods, playground Escozul is made by diluting the poison of tourist industry come to $220-320 million. equipment, cotton, lumber and livestock. the blue scorpion, Rhopalurus junceus, “which “Based on the findings, the hard currency Details: Rinus Schepen, VP & General is remarkably effective in the treatment of cost of imported food appears to be offset, in Manager, Crowley, PO Box 2110, Jacksonville, malignant tumors, swelling of the pelvis, general, by sales in Cuba of food for dollars,” FL 32203. Tel: (904) 727-2303. Fax: (904) Parkinson’s and other diseases.” says the study. “In other words, dollar earn- 727-4193. E-mail: [email protected]. In making the drug, up to six secretions of ings from sales in Cuba of imported and CUBA TO HELP NIGERIA MAKE ANTI-HIV DRUGS venom are collected from the glands of live domestically produced food appear to be equal scorpions. Escozul is then administered in a to or greater than the amount of foreign Nigeria and Cuba will collaborate in the pro- controlled manner to patients with pelvic or exchange used to import food.” duction of anti-HIV medicines, announced prostate inflammation likely to turn malignant. Details: ASCE, PO Box 567, McLean, VA Nigeria’s health minister, Eyitayo Lambo. “We’re not talking of complete cure, but of 22101-0567. E-mail: [email protected]. The collaboration would specifically entail significant recovery, notable improvement in the manufacture of anti-retroviral drugs for the quality of life, and total eradication of PACT MAY BOOST TRAFFIC AT CORPUS CHRISTI the treatment of HIV/AIDS. tumors in the majority of patients,” said The Port of Corpus Christi says the local During his meeting in Abuja with Eduardo Misael Bordier, head of the project, which is economy will soon benefit from a recently Santo Canalejo, Cuba’s minister of foreign being supervised by the Cuban Health Minis- signed memo of understanding between port investment and economic cooperation, Lambo try’s Oncology and Radiobiology Institute. officials and the Cuban government (see said Nigeria will benefit from Cuba’s experi- CubaNews, August 2003, page 3). ence in drug manufacturing, since it would be UF: CUBA EARNS DOLLARS FROM FOOD IMPORTS The first two ships under this cooperative easy for Nigeria to adapt Cuban technology. strategic agreement are expected to load Lambo said the production of anti-HIV medi- The Cuban government is earning millions 20,000 tons of wheat at Archer Daniel cines and vaccines would conserve valuable of dollars from food that it imports and then foreign exchange, while providing jobs to sells to Cuban citizens at substantial markups Midland’s Corpus Christi facility in mid- many unemployed Nigerians. in the island’s “dollar stores,” according to a October. The M/V Antilles V and the M/V new study by the University of Florida. Antilles II will each load around 10,000 tons of CARIBBEAN DRY DOCK BUILDS LOCKGATE The report, entitled “Cuba’s Dollar Food hard red winter wheat destined for Havana. Market and U.S. Exports,” was written by The memo of understanding outlined a plan The Caribbean Dry Dock shipyard, in the James Ross and presented two months ago at for the Port of Corpus Christi and Cuban food Bay of Havana, has completed a $1 million the 13th annual meeting of the Association for import agency Alimport to increase purchases project for a similar company in Curaçao. the Study of the Cuban Economy in Miami. by Alimport of farm products under contracts The firm built a complex lockgate for a float- ing dock, which was successfully launched into the water. According to experts, 150 tons Vietnam, Cuba sign accords on auditing, computers of cement and 100 tons of steel were used in the project. The lockgate will be used to close ietnam and Cuba have agreed to Co. (Hanel) by year’s end. the dry docks, thus enabling them to bear the cooperate in a program on state Company representative Hoang Thi Hoan pressure of water at its maximum height and V budget auditing and public assets told the Cuban daily Granma in late August guaranteeing safety. management, following a meeting between that “it is an honor to fill the order of the The work is expected to be completed in Lina Pedraza Rodríguez, Cuba’s minister of sister Caribbean nation.” September, and will be transported to its final auditing and control, and her Vietnamese Hanel is one of Vietnam’s largest electro- destination. Over 100 workers labored for four counterpart, Do Binh Duong. nics firms. Besides the PCs, Hanel has also months, following the standards set by Under the program, the two countries agreed to help Cuba construct a production Lloyd’s Register of Shipping. will exchange high-level visits, technical line to assemble TV sets for domestic use assistance, publications and documents. as well as export. ACCOR REPORTS STEEP DROP IN SALES, PROFITS During a Sept. 21-27 visit to Cuba, Duong The computer shipment will help Cuba The French group Accor reported a 52% briefed Cuban officials on his auditing implement recently announced programs, drop in profits during the first half of 2003, agency and “its contributions to the fight such as a three-year plan to train 1,200 compared to the same period last year. against corruption and wasteful spending.” computer science teachers. Company sources say that from January to In related news, Cuba this month is to Cuba’s Ministry of Higher Education says June 2003, profits totaled $117 million and receive the first 3,000 personal computers such efforts are key to encouraging greater sales dropped by 7.8% to $3.637 billion — a of a total of 10,000 PCs to be delivered by use of computers in order to make all consequence of the war in Iraq, the outbreak Vietnam’s state-owned Hanoi Electronics courses available on the Internet. of SARS in Asia and the devaluation of various October 2003 ❖ CubaNews 13 with regional suppliers. used in connection with the unlicensed export Inc. and other companies either already doing “It is clear to me that the great State of of vessels to Cuba,” Eileen M. Albanese, of business with Cuba or hoping to do so. Texas is strategically important for our rela- the BIS Office of Exporter Services, wrote in During a recent visit to Cuba, Wyatt signed tionship with the United States and the role the Aug. 27 suspension letter. an agreement with the Agrarian University of that the Port of Corpus Christi plays is critical Havana to see whether the two institutions to develop freedom of commerce and travel,” NEW RUM AIMED AT DOMESTIC DRINKERS could share faculty, students and research. said Alimport President Pedro Alvarez in a Cuba has launched a new brand of rum und- He said the initiative began when he was prepared statement. er the Vacilón label for domestic consumption. contacted by the American Association of The port expects to ship additional wheat The new rum is produced at the distillery of State Colleges and Universities, which was products to Cuba in coming months, and port the Urbano Noris sugar mill in eastern looking for schools interested in sharing officials say they’re working hand in hand Holguín province, 700 kms east of Havana. resources with Cuba. Presidents from 10 U.S. with Alimport on shipments through South Vacilón, which uses special molasses as its universities made the trip. Texas — in particular products indigenous to main raw material, is “100% natural, softer and Wyatt said ASU would be the first school in the area such as cotton, grains and meats. more pleasant than the traditional rums of Arkansas, and one of only a few in the U.S. to Details: Patricia Sorzano-Cárdenas, Port of Cuba, even though it has an alcohol content of promote educational exchange with Cuba. Corpus Christi, PO Box 5080, Corpus Christi, 40º,” according to an official press release. TX 78465-5080. Tel: (361) 885-6124 or 886- The factory, affiliated with Cuba’s Sugar EUROPEAN NGOs FUND ANTI-DIABETES EFFORT 7786. Fax: (361) 882-7110. Ministry, has produced various alcoholic Three medical organizations from Spain, drinks over the past 16 years and produces Denmark and Germany plan to spend FEDS REVOKE LICENSE OF KEY WEST GROUP other brands of rum including Palma, $360,000 to establish and update diabetes The U.S. government has revoked the Corsario and Varadero. The latter is exported treatment centers throughout Cuba, accord- license of a Florida group that has taken boat- to Europe, especially Italy, and is also one of ing to the Spanish news agency EFE. loads of medicine and books to Cuba for the the industry’s major exports as part of the The three NGOs participating in the “Diabe- past 13 years, reports Keys News. sugar sector’s diversification program. tes in Cuba” program includes the Spanish John Young, director of Conchord Cayo Diabetes Foundation, Germany’s Hueso Sailing Club, was tracked down at a LOBSTER SEIZURES REACH 40 TONS A YEAR Humanitaere Cuba Hilfe and the World Key West laundromat by federal agents, who Around 40 tons of illegal lobster are seized Diabetes Foundation of Denmark. told him of the suspension of his export li- every year in Cuba, says Juan Fung Riverón, The three-year project calls for the estab- cense by the U.S. Department of Commerce’s chief of Cuba’s National Fishing Bureau. lishment of at least one diabetes care center Bureau of Industry and Security (BIS). Riverón said the confiscations and accompa- in each of the Cuban provinces of Havana, The group’s license was to expire in 2004. nying fines are aimed at preventing illegal Villa Clara, Ciego de Avila, Camagüey, Isla de In May, reported the newspaper, Young’s trade that could endanger future lobster popu- la Juventud, Cienfuegos, Sancti Spíritus, Las sailing club drew scrutiny from federal agents lations. Authorities say damages resulting Tunas and Granma, none of which currently when its members and others participated in from the illegal fishing and sale of lobsters, has such a facility. the 19-boat Third Annual Conch Republic Cup shrimp, turtles and other valuable species Also envisioned is the modernization of the Race to Cuba. may exceed $5 million a year. Diabetes Reference Center, a division of “BIS has reason to believe that the license Cuba’s National Institute of Endocrinology. issued to Conchord Cayo Hueso for the SWITZERLAND OFFERS MONEY FOR FILMMAKERS PINAR DEL RÍO INFRASTRUCTURE STILL A MESS export of humanitarian items to Cuba is being The Swiss Agency for Development and Cooperation has earmarked SFr550,000 Officials are investing in Pinar del Río’s con- Internet crackdown reported ($405,000) to assist filmmakers from poor struction sector in order to speed up the countries, Swissinfo reported Aug. 18. rebuilding of infrastructure wiped out by two The Castro government has privately The three-year “Open Doors” program will hurricanes that hit the province in 2002. announced to party and other officials the allow Cuban directors to show their finished Over 220,000 pesos and $70,000 were used unleashing of a major repressive campaign work at the Locarno International Film to renovate the Isabel Rubio quarry, and against Internet usage, according to Festival and bring them face-to-face with $12,000 was invested in the Quiñones quarry. CubaNews sources in Havana. European producers to pitch new projects, A mill is now being installed at Quiñones to The crackdown seems to be aimed at said SDC spokeswoman Sophie Delessert. boost the quality of materials produced there. limiting access to the Internet both by gov- To date, seven Cuban directors have been By the end of July, Pinar del Río had pro- ernment employees and by private individ- invited to participate in the Swiss program. duced over 20,000 cubic meters of sand and uals in and out of the state sector. Details: Oficina de Cooperación Suiza en gravel, but demand still exceeds supply. Other Lazaro Herrera, spokesman at the Cub- Cuba, Embajada de Suiza, Calle 18, e/1 y 3, projects are underway in six ceramic centers an Interests Section in Washington, denied Edif. NNUU, La Habana. Tel: +53 7 204-1513. to increase brick production. CubaNews Fax: +53 7 204-1148. E-mail: [email protected]. the report, telling that “at this NEWEST EXPORT FOR LAS TUNAS: WORM HUMUS moment, we’re producing a revolution to ARKANSAS, CUBA MULL EDUCATIONAL EXCHANGE give Internet access to the population.” The province of Las Tunas produced over Like most things in Cuba, Internet Officials of Arkansas State University in 100,000 tons of worm humus in the first eight access is a state monopoly, but thousands Jonesboro are considering an educational months of 2003 — double last year’s produc- of Cubans and foreigners hook up to unof- exchange program with universities in Cuba. tion and the highest in provincial history. ficial computers anyway, many of them In early October, the ASU board endorsed a Worm humus, a derivative of worm excre- paying up to $50 a month for a few hours of plan to establish relationships with Cuban uni- ment, is considered one of the best natural access, usually at night. versities, which officials hope will lead to fertilizers and has shown excellent results More sophisticated connections are study-abroad and research programs. with vegetables, tobacco, flowers and fruits, established by linking to servers in the “I think we do recognize Arkansas has great besides preventing environmental pollution. United States, Mexico or elsewhere. potential for the products of this state to be The worms are artificially raised in a sub-stra- Sweeping raids are already being con- used by countries like Cuba,” said ASU Presi- tum that usually consists of cow manure. ducted against individuals and their state dent Les Wyatt. “Why the connection with For Las Tunas, the use of natural fertilizers partners. Computers are reportedly being Arkansas States? We have the greatest capaci- is of major importance, since most of the confiscated if proper documentation can- ty in agriculture, which is what they need.” province’s soils are affected by erosion, salini- not be produced. Arkansas is the home of Producers Rice ty and other erosive factors (see CubaNews, Mill Inc., Tyson Foods Inc., Riceland Foods September 2003, page 14). 14 CubaNews ❖ October 2003 GEOGRAPHY City of Havana: Heart and soul of the Cuban nation BY ARMANDO H. PORTELA This is the final installment in a series of monthly articles on Cuba’s ollowing the rearrangement of Cuba’s administrative divisions in provinces by Armando H. Portela, who has a Ph.D. in geography from 1976, Havana and its immediate suburbs were detached from the the Soviet Academy of Sciences. Portela currently resides in Miami. F rural areas of the old province of La Habana to form the new province of Ciudad de La Habana. Havana is built on top of gentle rising marine terraces carved out of The City of Havana is the island’s smallest province, covering only limestone along the shoreline. These terraces are more evident in the 724 sq kms (280 sq miles), or barely 0.6% of Cuba’s land area. neighborhoods of El Vedado and Miramar to the west and Cojímar, Havana is the heart of the nation. It’s not just the decision-making Alamar, and Guanabo beach to the east. A hilly landscape predomi- and economic center of the island but has also been a political and cul- nates inland, where the neighborhoods of El Cerro, Luyanó, La tural reference point in the Americas for centuries. Víbora, Lawton and Guanabacoa rise. Farther to the south, the city is Originally founded in 1514 by Diego Velázquez, Havana was origi- built over a high plain covered with red soils where the neighbor- nal-ly located along the soggy southwestern coast of the island, near hoods of El Cotorro, Fontanar and Santiago de las Vegas stand. the present town of Batabanó. But mosquitoes and poor access forced Through a relatively deep and narrow canyon in the coastal ter- those early settlers to move five years later to the current location races, the Río Almendares — the largest river in the province — splits around the port of Carenas, as Havana’s bay was originally named. the city in two distinct regions. The customary dumping of untreated The city is one of the earliest settlements in the Americas and has wastewater to the streams has turned the Almendares and also other served as Cuba’s capital since mid-16th century. small creeks of the urban areas into stinky, lifeless sewage streams. GEOGRAPHY Likewise, careless port activities and improper industrial and urban waste disposal for decades around Havana Bay have converted it into The province of Ciudad de La Habana is comprised mostly of the one of the most polluted ports in the world. Frequent spillage from developed lands of the capital and its outskirts. Nevertheless, one- surrounding factories merges with the hundreds of tons of garbage, third of its territory is devoted to agriculture — mainly to grazing used oil and other wasts regularly dumped in its waters. lands, but also to sugar cane and vegetable cultivation. Environmental rules are rarely enforced and cleanup costs will proba- bly run into the billions of dollars and last for decades. In the past few years, however, water quality in Havana Bay has improved noticeably, as a result of Cuba’s industrial slowdown and a government program to collect floating garbage and petroleum prod- ucts from the water. A scenic coast with 9 km (5.6 miles) of white-sand beaches to the east is a favorite resting place for Havana’s residents. However, intense erosion since the 1970s have depleted the quality of the beaches. The plains south of the city hold a rich aquifer exploited since 1893, when the Acueducto de Albear was completed to supply the freshwa- ter needs of the population and its industry. But overuse and pollution October 2003 ❖ CubaNews 15

crude-oil refining, along with breweries, dairy plants, canneries and other food industry operations. The province's two steel mills are the most important on the island. Manufacturing of cigars and cigarettes is a long-established indus- LARRY LUXNER try in the capital, where most of the legendary tobacco brands are made. Havana also has textile, apparel and shoe factories and tanner- ies. The well-known pharmaceutical and biotech industries, largely based in Havana, have become a leading source of hard currency, with some $40 million per year in exports during the late 1990s. The capital city also has several chemical plants, paper mills, machi- nery shops, print shops and construction plants, among other indus- trial facilities. The only sugar mill within the province, Manuel Martínez Prieto (formerly known as Toledo) has been dismantled. Havana is also the national center of commerce, communications, transport, tourism and culture. Furthermore, it boasts the best insti- tutions of learning and the most comprehensive medical services in Cuba, thus helping to attract a constant stream of immigrants from the Panoramic view of Havana, taken from the roof of the city’s tallest building. countryside. In addition to the University of Havana, founded in 1728, Havana have dramatically depeled its quality and reserves. also hosts the Higher Polytechnic Institute, the Higher Pedagogic In- Today this aqueduct still supplies 19% of Havana’s freshwater needs. stitute, the School of Medicine, the Higher School of Arts and others. The rest comes from the freshwater reservoirs east of the capital (La The Academy of Sciences and a number of state-of-the-arts research Coca, La Zarza and Bacuranao dams) and from underground sources institutions in biotechnology are also found in Havana. outside the province. Water and sewer services to Havana are a chron- As the principal site of government, most of the official ministries ic nightmare for authorities. Shortage of fresh water, spillage through are concentrated in and around Plaza de la Revolución. the aging system and improper wastewater disposal are common. Havana draws nearly half of all tourists to Cuba. The city has 12,000 hotel rooms, or 29% of the island’s total; only Varadero Beach has more POPULATION hotel rooms. Most tourists visit the historic core of Old Havana and As of 2001, Havana had an estimated 2.18 million inhabitants, or the beaches of Playa del Este, to the east. 19.5% of the island’s population. That makes the city the largest in INFRASTRUCTURE Cuba, and the second-largest in the Caribbean (after Santo Domingo, capital of the nearby Dominican Republic). The population of Havana Havana is Cuba’s leading commercial center; as such, all the island’s equals that of all other provincial capitals combined. transport and communications systems radiate from Havana to the Unlike other cities or provinces in Cuba, Havana’s population has east and west to reach all important economic centers in Cuba. been shrinking by 0.2%, after peaking at 2.204 million dwellers in 1996. The new eight-lane National Expressway, the old two-lane Central This results from the capital’s low natural growth — the lowest in the Highway and the Central Railway are Havana’s main links to the rest country — and a relatively high rate of emigration abroad; half of all of the country. Havana is also the center of the national transmission Cubans leaving the island are habaneros. In addition, the Castro network of radio-electronic and digital communications. regime has imposed severe restrictions against country folk wishing The port of Havana has 25,700 feet of berthing capacity and sup- to settle in the capital, with punishments including forced deportation ports the largest maritime traffic in the country. Its versatile facilities to their original provinces. handle all kinds of cargo and include the largest cranes, dry docks and Population density averages 3,019 per sq km, but it this unevenly refrigerated warehouses in Cuba. Likewise, José Martí International distributed. In the crowded Centro Habana district — where most Airport, just south of Havana, is by far Cuba’s busiest airport. dwellings are two or three stories high — population density can reach as high as 44,000 people per sq km, while in the rela- tively rual municipality of Guanabacoa, it drops to 837 per sq km. Havana’s critical housing shortage has plagued the capital for decades. New hous- ing projects are at best far below the city’s needs, while more than half of Havana’s 556,800 housing units are in urgent need of repair, and one in 10 dwellings is officially classified as non-repairable. According to the official media, dozens or even hundreds of houses collapse partially or totally every year, mainly in the oldest sectors of the city during the rainy season. In 1996, some 21,000 families (3-4% of the total population) were living in government shelters. Other basic urban services such as public transport, telephones and garbage The impact of the rafter stampede of 1994 (over 30,000 left the island in rafts, most of them collection are in terrible shape. habaneros) on Havana’s population was rapidly offset by a powerful wave of arrivals from the coun- tryside — mainly from the eastern provinces — that helped the city resume its customary pace of ECONOMY growth. Authorities curtailed the trend after 1996 as rules for new settlers were strictly enforced, Havana accounts for over half of Cuba’s and many newcomers were deported to their provinces of origin. As result of this policy, Havana’s industrial output. The most important activ- population keeps shrinking. A net loss of 22,800 residents between 1996 and 2001, or 1% of the ities are electric power generation and total population, is an unprecedented event in Havana’s modern history. 16 CubaNews ❖ October 2003 CALENDAR OF EVENTS CARIBBEAN UPDATE If 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 Oct. 13-20: “Inside Cuba” program for travel agents. OFAC-licensed educational tour fast-growing region. includes Miami-Havana airfare, lodging at Meliá Cohiba and trips to Trinidad and Santa Subscribe to Caribbean UPDATE, a Clara. Cost: $2,295. Details: Benita Lubic, Transeair Travel, 2813 McKinley Pl. NW, Wash- monthly newsletter founded in 1985. Cor- porate and government executives, as well ington, DC 20015. Tel: (800) 666-4901. Fax: (202) 362-7411. E-mail: [email protected]. as scholars and journalists, depend on this Oct. 16-18: U.S.-Cuba Travel Conference, Hotel Gran Meliá Cancún, Mexico. Cuban publication for its insightful, timely cover- age of the 30-plus nations and territories of Tourism Minister Ibrahim Ferradaz, 20 other officials “will meet with leaders of the U.S. the Caribbean and Central America. travel industry for several days of presentations and one-on-one meetings.” Cost: $2,250. When you receive your first issue, you Details: Erin Libit, Association of Travel Related Industry Professionals, 2300 M Street, have two options: (a) pay the accompany- NW, Suite #800, Washington, DC 20037. Tel: (202) 872-5071. E-mail: [email protected]. ing invoice and your subscription will be processed; (b) if you’re not satisfied, just Oct. 18: Washington rally “in solidarity with Cuba’s right to self-determination.” Cuban write “cancel” on the invoice and return it. Interests Section, other officials to speak. Details: Tony Ryan, National Network on Cuba, There is no further obligation on your part. The cost of a subscription to Caribbean PO Box 225303, San Francisco, CA 94122.Tel: (202) 986-1561. E-mail: [email protected]. UPDATE is $267 per year. A special rate of Oct. 18-27: Cuba Study Tour: Sustainable Agriculture and Fair Trade. Includes visits to $134 is available to academics, non-profit organizations and additional subscriptions coffee farms, organic gardens, educational institutions, etc. Cost: $2,100. Details: Rachel mailed to the same address. Bruhnke, Global Exchange, 2017 Mission St., #303, San Francisco, CA 94110. Tel: (415) To order, contact Caribbean UPDATE at 255-7296 ext 354. URL: www.globalexchange.org/campaigns/cuba/sustainable/index.html. 116 Myrtle Ave., Millburn, NJ 07041, call us at (973) 376-2314, visit our new website Oct. 21: Laura Ymayo Tartakoff to present new book, “El Pensamiento Político y Social at www.caribbeanupdate.org or send an de José Martí,” Casa Bacardi, Miami. Details: ICCAS, 1531 Brescia Ave., Coral Gables, e-mail to [email protected]. We accept FL 33124-3010. Tel: (305) 285-2822. Fax: (305) 284-4875. E-mail: [email protected]. Visa, MasterCard and American Express. Nov. 2-9: Havana’s 21st International Fair, Expocuba Pavilion, Havana. Over 40 nations have confirmed their participation in the event; featured pavilions to include those of Argentina, Belgium, Canada, France, Germany, Japan, Mexico, South Korea, Venezuela. Nov. 7-14: Havana Arts Biennial tour to Cuba. Trip price of $3,800 includes airfare from New Orleans, accommodations at the Hotel Nacional, several dinners and lunches, spe- cial events, salsa classes, etc. Details: Shelley Middleberg, Contemporary Arts Center, New Editor & Publisher Orleans, LA. Tel: (504) 528-3805. E-mail: [email protected]. URL: www.cacno.org. I LARRY LUXNER I Nov. 13: “Business Opportunities and Challenges in a Post-Castro Cuba,” Casa Bacardi, Washington correspondent I ANA RADELAT I Miami. Cost: $25 inc. lunch. Details: Cuba Transition Project, PO Box 248174, Miami, FL Political analyst 33124-3010. Tel: (305) 284-2822. Fax: (305) 284-4875. E-mail: [email protected]. I DOMINGO AMUCHASTEGUI I Dec. 8-10: 27th Miami Conference on the Caribbean Basin, Loews Miami Beach Hotel. Feature writers I VITO ECHEVARRÍA I Florida Gov. Jeb Bush, 11 heads of state, many U.S. government officials to attend. Cost: I DOUGLASS G. NORVELL I $575 (before Sep. 30). Details: Caribbean/Latin American Action, 1818 N St. NW, #310, Cartographer Washington, DC 20036. Tel: (202) 466-7464. Fax: (202) 822-0075. URL: www.claa.org. I ARMANDO H. PORTELA I Graphic designer I JESSICA MUDJITABA I

IMAGES OF LATIN AMERICA (ISSN 1073-7715), founded in 1993, If your business needs high-quality photo- is published monthly by Luxner News Inc., 10454 graphs of Cuba — or anywhere else in the Parthenon Court, Bethesda, MD 20817, USA. Subscriptions: US$429 per year ($200 for indi- Americas — to illustrate annual reports, vidual scholars and non-profit groups only). articles, brochures or presentations, Please view our website at www.cubanews.com you’ve come to the right place. Luxner to learn more about the newsletter. News Inc. has nearly 15,000 color trans- From the U.S. mainland, Canada and Puerto Rico, call our toll-free customer service hotline at parencies on file from South America, (800) 365-1997 to order a subscription. Central America, Mexico and the Carib- From all other locations, call collect bean, depicting a variety of topics from at +1 301 365-1745, fax us at +1 301 365-1829 or aerospace to zoology. We also have a send an e-mail to [email protected]. Contents may not be distributed by any means growing selection of images from Europe, without prior written permission of the publisher. Africa and the Middle East. For more de- Luxner News Inc. grants authorization to photo- tails, call Luxner News Inc. toll-free at copy items for internal or personal use, provided (800) 365-1997 or search our website at: the appropriate fee is paid directly to Copyright Clearance Center, 222 Rosewood Drive, Danvers, www.luxner.com MA 01923. For details, call CCC at (978) 750-8400.