Vol. 13, No. 8 September 2005 www.cubanews.com In the News Gulf ports quickly recover from Katrina; Cuba-bound shipments to resume soon Reviving claims U.S. reopens long-dormant Cuban claims BY VITO ECHEVARRÍA perimeter and will soon be available throughout the facility,” according to a Sep. 15 press release program at Starwood’s urging .....Page 2 ith the Port of New Orleans and Gulf- port, Miss., in shambles following the issued by the Mississippi State Port Authority. Wonslaught of Hurricane Katrina, it first “On the day following the storm, it was esti- Housing crisis appeared that Mother Nature had done more to mated that limited port operations would not be available for months or even up to a full year,” Hurricane Dennis worsens Cuba’s already disrupt U.S. food exports to Cuba — at least temporarily — than anything the pro-embargo said the release. “It now appears that [terminal critical housing shortage ..............Page 3 lobby in Washington could have come up with. operators] P&O Ports North America Inc. and In the days following the killer hurricane, SSA Marine will be ready to resume terminal Pink slip for aide Crowley Liner Services Inc. told CubaNews that operations within a matter of days.” as a result of “devastating damage” at its facili- The two ports together, along with Mobile, Wilfredo López Rodríguez sacked as key ties in New Orleans and Gulfport, “we are un- Ala., have handled close to 75% of the $1 billion advisor to Fidel Castro ..................Page 4 able to safely operate in the affected region and in food commodities shipped to Cuba from U.S. no cargo is being moved in, out or through that ports since passage of the 2000 Trade Sanc- Thanks but no thanks area for the foreseeable future.” tions Reform and Export Enhancement Act. But the two ports are recovering from Katrina Under TSRA, agricultural commodities are State Department snubs Cuba offer to aid more quickly than anyone had imagined — exempted from the embargo as long as Cuban government purchasing agency Alimport pays victims of Hurricane Katrina ........Page 7 especially considering the widespread destruc- tion in New Orleans and the Mississippi coast. for such commodities up-front, in cash. “Despite the extensive damage, recovery at U.S. food conglomerates in the forefront of Phones for everyone Gulfport is well underway. Electricity is now that trade were initially worried that Katrina had Etecsa working to boost teledensity with available in the northeast corner of the port See Katrina, page 6 fixed wireless technology .............Page 8 Despite the risks, Canadian companies Counting the losses Snapshot of local destruction incurred in find Cuba fertile ground for trade deals wake of devastating Dennis .........Page 9 BY LARRY LUXNER own ZP International Inc., which designed Tor- Business briefs rom a Vancouver hotel developer to a Nova onto’s famed Eaton Centre. A few blocks away, Scotia-based exporter of ambulances, hun- Leisure Canada Inc. of Vancouver is planning to Minaz to further downsize sugar industry; dreds of Canadian firms large and small build a five-star business hotel. F And the largest investor of all, Toronto-based OPEC lends Cuba $10m .............Page 12 are doing business with Cuba — and some are making big money in the process. Sherritt International, has sunk at least $300 Canada’s impact can be felt throughout Cuba. million into various nickel-mining, oil, gas, agri- No more cruises In suburban Havana, beer giant Labatt is build- culture, power generation, tourism and telecom Castro suddenly cancels cruise-ship con- ing a $100 million brewery with a capacity of 1.5 ventures across the island since 1995. All this is happening, of course, in spite of the tract with Italy’s Silares S.A. .......Page 14 million hectoliters; it already commands a 29% share of the domestic beer market through its long-standing U.S. embargo against Cuba, easi- 50% stake in Cervercería Bucanero S.A. ly the most glaring foreign-policy difference Haiti’s balancing act In Cayo Coco, off Cuba’s northern coast, the between Washington and Ottawa. “Canada has seen fit to take a different view of New Haiti envoy in Washington describes 690-room El Senador Hotel — run by a consor- tium of Québec investors — has become a pop- Cuba than the United States, going back many nation’s ties with Cuba ................Page 15 ular destination for Canadian tourists. Not far years,” said Charles Barrett, an observer previ- away, Montreal-based Pebercan is extracting oil ously with the Conference Board of Canada. “That’s been a source of tension with Cana- CubaNews (ISSN 1073-7715) is published monthly in commercial quantities from its highly lucra- by Luxner News Inc. © 2005. All rights reserved. tive Block 7 concession. dian investors, in particular with Sherritt. My Subscriptions: $429/year. For subscription or edito- Havana’s biggest real-estate work in progress sense is that there’s been some disenchantment rial inquiries, call us at (301) 365-1745, send a fax to at the official level with Cuba. There’s a feeling (301) 365-1829 or e-mail us at [email protected]. is the 18-building Miramar Trade Center “intel- ligent office” complex, designed by Canada’s See Canada, page 11 2 CubaNews ❖ September 2005 POLITICS U.S. revives Cuba claims program at Starwood’s behest BY ANA RADELAT Claims Settlement Act to establish a Cuban commission’s chairman, Mauricio Tamargo, claims program. ne of the world’s largest hotel conglom- “any new claims certified as valid by the com- Between 1966 and 1972, that program mission will be added to those already certi- erates has convinced the U.S. Justice received 8,816 claims, eventually certifying Department to revive its long-dormant fied in the previous program. Although there O 5,911 claimants whose loss was fixed at are no funds currently available to make pay- Cuba claims registry — a program to certify around $1.85 billion. If interest were included property claims against the government of ment on any American claims, the certifica- at the annual rate of 6%, those claims would tion of the commission’s findings to the sec- Fidel Castro. today be worth over $6.8 billion. Starwood Hotels & Resorts Worldwide Inc. retary of state will be used as a basis for — the parent company of Sheraton, St. Regis, future negotiation of a claims settlement with Westin, W and other well-known hotel brands TOP 40 CERTIFIED CLAIMS* the government of Cuba.” — on Aug. 19 became the first U.S. entity Tamargo, noting that all claims must be since 1967 to file a claim against Cuba with COMPANY VALUE filed by Feb. 13, 2006, told CubaNews he did the Justice Department’s Foreign Claims 1. Cuban Electric Co. $267.6 not expect a new flood of claims, and that his Settlement Commission (FCSC). 2. North American Sugar Industries 97.4 agency is aware of only a few possible The claim stemmed from Starwood’s 3. Moa Bay Mining Co. 88.3 claimants aside from Starwood. Sheraton division, which had inherited some 4. United Fruit Sugar Co. 85.1 “I am pleased the secretary of state gave of ITT Corp.’s claims in Cuba, including an 5. West Indies Sugar Corp. 84.9 the Foreign Claims Settlement Commission obscure company that operated in Cuba for 6. American Sugar Co. 81.0 an opportunity to further evaluate U.S. citizen more than 30 years after the U.S. embargo 7. ITT Corp. — Trustee 80.0 property claims against the government of barred such commerce in the early 1960s. 8. Standard Oil Co. 71.6 Cuba,” said Tamargo, himself a Cuban exile That company, Radio Corporación Cubana 9. Francisco Sugar Co. 58.5 who fled the island with his family in 1961, at (RCC) had a Treasury Department license to 10. Int’l Telephone & Telegraph 50.7 the age of 4. “These American claims remain continue operating in Cuba because it routed 11. Texaco Inc. 50.1 important to this administration and have not been forgotten.” long-distance calls from the United States to 12. Manati Sugar Co. 48.6 the island — communication the U.S. govern- 13. Bangor Punta Corp. 39.2 MOVE COULD SPUR A RUSH OF OTHER CLAIMS ment wanted to continue. 14. Nicaro Nickel Co. 33.0 Yet Robert Muse, a Washington lawyer RCC remained in Cuba until mid-1992, 15. Coca-Cola Co. 27.5 when Hurricane Andrew damaged its equip- who represents some of the original claim- 16. Lone Star Cement Corp. 24.9 ants, said there aren’t many U.S. corporate ment. Nevertheless, it continued to have a 17. New Tuinucu Sugar Co. Inc. 23.3 presence in Cuba until 18 months ago, when claims left against the Cuban government. 18. Colgate-Palmolive Co. 14.5 the Cuban government confiscated its hold- Even so, he called the Bush administra- ings, ignoring the pleas of Starwood officials. 19. Braga Brothers Inc. 12.6 tion’s explanation for its new Cuba claims pro- After the seizure, Starwood contacted the 20. Boise Cascade Corp. 11.7 gram incomplete and “surprisingly opaque.” State Department, which turned the matter 21. American Brands Inc. 11.7 Muse warned that the new FCSC program over to the FCSC. 22. West India Co. 11.5 could open the door for claims from Cuban At the time of RCC’s confiscation, the little- 23. Atlantic Richfield Co. 10.2 exiles who were largely shut out of the first known subsidiary consisted of some tele- 24. Burrus Mills Inc. 9.8 Cuba claims program because they were not phone towers, a few buildings and a handful 25.