Vol. 20, No. 3 March 2012

In the News ‘Mules’ handle growing volume of cargo

Vatican and Cuba as MIA dominates Cuba-bound air traffic On eve of Pope Benedict XVI’s visit, ‘con- BY DOREEN HEMLOCK more than 80% since 2009, when newly inaugu- structive engagement’ at work .....Page 2 he business of sending U.S. goods to Cuba rated President Barack Obama issued a decree is changing: More gift packages are going letting Cuban-Americans travel to the island whenever they want and send more gifts. OFAC nixes ferry Tto individuals, and less commercial freight to Cuba’s cash-strapped government. The company’s president, Mercedes Costa, Agency says ‘no’ to proposals for Fla.-Cuba The shift comes from policy changes in both says much of her former business now moves passenger ferry service ...... Page 3 Washington and Havana. In 2009, the Obama through “mules” — Cuban-Americans who trav- el to the island hauling everything from food to administration eased rules on sending gifts to clothes to flat-screen TVs. In return, the mules P2P takes off individuals on the island. receive a free round-trip ticket, valued up to Since relaxation of OFAC rules, ‘people-to- And now that Cuban authorities encourage $500, and sometimes a small stipend too. private business, many locals have begun to rely people’ travel skyrockets ...... Page 4 Caribbean Direct’s volumes plunged from on their relatives in the States to send down sup- roughly 40,000 lbs a month in 2008 to 4,500 plies and other basics. lb/month in 2011, she said, as mules took over Special report: Cement Likewise, Cuban state entity Alimport is buy- the growing gift-parcel business. Cuba attempts to revive its troubled cem- ing less food and medicine from U.S. companies “Mules are stocking whole stores in Cuba” — no longer hopeful that its purchases from ent manufacturing sector ...... Page 6 for private entrepreneurs, Costa told CubaNews. various states will speed an end to Washington’s “It’s a huge business down there. Some mules 50-year-old embargo against the island. go every weekend to bring things to the island, Newsmakers However, the shift has hurt some traditional even bicycles.” Bill Hauf, known for building playgrounds freight companies serving Cuba. The “mule” business works like this: Scores Miami-based Caribbean Direct International in Cuba, hopes to inaugurate BWI-Havana of U.S. offices accept goods for delivery in Cuba, saw volumes on its all-cargo flights to Cuba drop Freight, flights as early as this fall ...... Page 10 See page 9 Weak demand State Department asks Vatican to lobby U.S. charter firms struggle with limited demand for Cuba flights ...... Page 11 for release of subcontractor Alan Gross MINTUR: We play fair BY ANA RADELAT He traveled five times to Cuba covertly as a Agency denies charges of discriminatory State Department official said the Vatican subcontractor for Bethesda-based Development Alternatives Inc. DAI has received millions of pricing against U.S. tourists ...... Page 12 ambassador in Washington has been lob- Abied to ask Pope Benedict XVI to seek the dollars for a USAID program aimed at destabi- lizing the Castro government. release of Alan Gross from a Havana jail. The 62-year-old man’s arrest has put U.S.- Retiring to Cuba Benedict XVI plans to visit Cuba Mar. 26-28. How does Cuba stack up against other Cuba relations into a deep freeze. But Cuba has But a spokeswoman for the office of Papal Nun- adamantly refused to release Gross, despite sev- potential retirement havens? ...... Page 13 cio Archbishop Carlo Maria Viganò said she eral pleas from the State Department. had no comment on whether the pope will help A number of surrogates have pleaded for his Gross, a U.S. Agency for International Develop- freedom, including former New Mexico Gov. Business briefs ment subcontractor who’s been imprisoned in Sherritt sees drop in nickel, oil production; Bill Richardson, who was rebuffed by the Cuba for more than two years. Cubans last year. More recently, a delegation of Cuban coffee harvest up 24% ...... Page 15 “Hopefully the pope raises the issue,” said a visiting lawmakers that included Sens. Dick State Department official who asked to remain Durbin (D-IL) and Patrick Leahy (D-VT) asked anonymous. “The pope’s visit gives the Cubans for the same — and were also turned down. CubaNews (ISSN 1073-7715) is published monthly by CUBANEWS LLC. © 2012. All rights reserved. an opportunity to do the right thing.” The latest appeal for Gross’ release came Annual subscription: $398. Nonprofit organizations: Gross is serving a 15-year sentence following from a prominent New York rabbi, Arthur $198. Printed edition is $100 extra. For editorial in- his conviction of crimes against the Cuban state Schneier, who also met with the imprisoned quires, please call (305) 393-8760, fax your request for smuggling satellite phones and other high- subcontractor. When he returned to the United to (305) 670-2229 or email [email protected]. tech equipment into the island. See Gross, page 3 2 CubaNews v March 2012 INTERNATIONAL RELATIONS The Vatican and Cuba: Constructive engagement at work BY DOMINGO AMUCHASTEGUI named charge d’affaires and chief of mission cessions, while social services and charities ope John Paul II made his groundbreak- at the Papal Nuncio in Havana. He worked multiplied. The appointment of Jaime Lucas ing journey to Cuba in 1998. Later this hard to open new areas of cooperation, espe- Ortega y Alamino — a critic of both commu- Pmonth, Pope Benedict XVI will also visit cially with regard to charities, social work and nism and capitalism — as archbishop of the island — but why? the recruitment of local Cubans as priests. Havana in 1981, and later cardinal, helped iso- The answer dates back to the early 1960s, Zacchi himself led many of these seminar- late the remaining conservative attitudes rep- right after Vatican II and Pope John XXIII, istas to work in the fields cutting sugar cane; resented by Pedro Meurice, the archbishop when the Holy See decided to revise its antag- Fidel repeatedly praised Zacchi, who by then of Santiago de Cuba. Finally, the Fourth Party Congress in 1991 onistic policy toward Cuba — not just vis-à-vis had become a close personal friend. As recog- the communist government but toward the nition for Zacchi’s accomplishments, the pope put to rest, once and for all, any “atheist” poli- local Catholic Church as well. ordained him bishop in 1967. cies and opened the Communist Party’s ranks Its new policy of constructive engagement It was an entirely new way to approach de- to believers. was entirely different approach than that velopments in Cuba. By the end of the 1960s, Changes were becoming irreversible and employed by the Vatican toward Russia, the levels of understanding and cooperation Eastern Europe or Asia. between the Catholic Church and the Cuban The reason? Obviously enough, the Vatican government increased significantly. reasoned that in Cuba, it was facing some- It was in this new context that Fidel Castro thing beyond the conventional stereotypes of met John Paul II and a number of cardinals at communism and the Cold War. the Vatican in November 1996, and the It saw that the process taking place in Cuba groundwork for the January 1998 papal was involved much-needed changes in many dif- finally implemented. ferent areas — regardless of ideological con- So, in a much improved atmosphere, Bene- siderations and global alliances — and that REUTERS / ENRIQUE DE OSA LA dict XVI will now visit Cuba. In the meantime, the degree of popular support and legitimacy Cuba has been visited by many cardinals rep- toward the revolution was extremely high. resenting the Vatican and other important At the same time, the Vatican’s perception dioceses, from Krakow to Boston to Miami. of the Cuban Catholic Church — despite its Notable visitors include Miami Archbishop once-powerful resources and connections — Thomas Wenski and Tarcisio Bertone, whom was that it was quite weak compared to the European media consider to be the Vatican’s situation in other Latin American and most influential politician. Caribbean nations. There were very few local “It will be a watershed moment for the priests and little appeal for priestly devotion, Cuban church as was the visit of John Paul II especially among blacks and mulattos. in 1998,” Wenski recently told reporters. “The Important facts cannot be overlooked, pope goes on a mission of hope and as he has among them: said many times, ‘A world without God is a world without hope, without a future,’ I think n The Catholic Church’s refusal to recog- nize the mulatta Virgin of Charity for more he comes to announce a future of hope for the than 300 years (it took a lot of fighting and island of Cuba.” pressure from local patriots to achieve this). A poster welcomes Pope Benedict XVI to Havana. n The existence of a segregated order or DESPITE AGE, ORTEGA REMAINS ON THE JOB nuns (the Oblatas), and church documents for the first time officially Meanwhile, the Cuban Catholic Church has n The church’s hostility toward the role of characterized the revolution as an act of social continued to expand its network of journals, African religions and their syncretic expres- justice that improved the lives of Cuba’s peo- publications and newsletters. It recently inau- sions during Sunday Mass, even today. ple. In the 1970s, Fidel held dialogues with gurated a new seminary while enlarging char- Christian churches active in social move- ities and social services (including religious VATICAN ENVOY ZACCHI WAS EXEMPLARY ments in Chile, Jamaica, Colombia and services within the penal system). Another key factor was the political influ- Nicaragua, providing the foundations of a new It has also sponsored language and IT ence from the ultra-conservative Spanish trend known as liberation theology. courses, and more recently master’s courses Catholic Church and their priests. The local That trend was interrupted from 1975 to on microeconomics and small businesses. church had been a major component of 1985, when Cuba’s leadership advocated a Processions and religious celebrations are Spain’s colonial domination of Cuba, with only policy of so-called “scientific atheism” that held regularly, culminating in December a few exceptions (such as the Virgin of Char- had a freezing effect on any further improve- when thousands turned out as the Virgin of Charity was paraded throughout Cuba. ity, who had inspired the mambises, Cuba’s ment of relations with the church. fighters for independence). But a decade later, this same leadership The political dialogue between Ortega and That Spanish influence was reinforced by drastically switched gears, hoping to repair President Raúl Castro has led, among other the hundreds of thousands of Spaniards who those damaged relations. That led to joint things, to the release of 130 political prisoners continued to arrive in Cuba as immigrants meetings between Party officials and intellec- and amnesty for 3,000 common inmates. until the 1950s. tuals, and leaders of not only the Catholic It’s noteworthy that the Vatican has kept Subsequently, the Vatican followed a dual Church but also other denominations such as Ortega on as archbishop despite a church pol- policy of building friendly, respectful relations Baptists, Methodists and evangelicals. icy that obligates members of the clergy to with Cuba’s revolutionary authorities, and Those meetings proved successful, and as a resign on their 75th birthday; he’s proven to rebuilding a local Catholic Church capable of result, the Catholic Church was able to build be a skilled religious leader as well as an understanding — and working — within the an extensive network of publications and jour- astute political player. new realities. nals, having access to growing opportunities Church weddings and baptisms are becom- The Vatican’s man for such a job was Mon- on radio and TV. ing popular among youth, though attendance signor Cessare Zacchi, who in 1962 was It also took to the streets for its regular pro- See Vatican, page 3 March 2012 v CubaNews 3 Castro and was responsible to some degree Vatican — FROM PAGE 2 Gross — FROM PAGE 1 for the release of political prisoners held since at Sunday Mass remains low and still consists States, Schneier urged fellow Jews to pray for 2003, and the Church has been playing a very mainly of elderly white people, a few young “a miracle” so that Gross would be freed. important role as a non-state actor in the couples and very few blacks and mulattos. The State Department briefed Schneier changes going on in Cuba,” said Stephens, On any given Sunday, one can visit 20 or 30 before his trip to Cuba in early March. It has speaking Feb. 15 at Temple Emanuel, a churches and find no black priests delivering been lobbying the Papal Nuncio for several reform synagogue in Kensington, Md. sermons — except at St. Catherine in Sienna. months. “They are very much aware of the Stephens said her group of advocates has As the late Dr. María Cristina Herrera — a situation,” the official told CubaNews. asked a Cuban cardinal if he thought the pope devout Catholic very close to the church hier- Christopher Sabatini, senior director of pol- would intercede on Gross’s behalf; her con- archy — used to say, “Our Achilles heel is icy at the Americas Society and Council of the clusion was that “it’s unlikely they would want that we don’t have a black bishop and, unfor- Americas, said he finds it “believable” that to venture into U.S.-Cuba issues.” tunately, this will not happen any time soon.” Pope Benedict will raise the issue of Gross’ Veteran activist Saul Landau, unaware of the A humble priest at the Virgin of Mercy imprisonment with Raul and/or Fidel Castro. State Department’s latest efforts to free Gross, church recently recalled that Pope John Paul “This is a humanitarian concern, and I would told his audience — which included the jailed II — after hearing complaints about syncretic hope this would provide the Cubans with man’s sister-in-law, Gwen Zuares — that “the expressions inside the church during Mass some way out of this.” State Department has tossed Alan under the — said two things: “Be more understanding, Having Benedict XVI ask to have Gross bus” and has absolutely no interest in work- and open your arms to them.” freed would also prevent Cuban from insist- ing towards his release. ing on preconditions, such as the release of “I feel badly for a man like Alan of his age CHURCH EXPRESSES OPPOSITION TO EMBARGO the four remaining jailed members of the and his integrity. I’m sorry he’s in jail and I’d But the problem endures among foreign “Cuban Five” — a group of intelligence offi- like him to come home tomorrow. But in and Cuban priests when they witness church- cers convicted in Miami of espionage. order to do that, we have to realize one thing: goers addressing at the Virgin of Charity as Sabatini also said that if the pope raises the he was not simply setting up this really so- Ochún, the Virgin of Mercy as Obatalá, the issue of Gross publicly “it would be very dif- phisticated apparatus with SIM cards in order black Virgin of Regla as Yemayá and Santa ficult for the Cubans to walk away.” to share our secret ancient matzo ball recipe Bárbara as Shangó, and praying to St. Lazarus Sarah Stephens, executive director of the with our Jewish brethren in Cuba,” said — not the Catholic saint but the non-recog- Center for Democracy in the Americas, said Landau. “This was about regime change. That nized San Lázaro/Babalú Ayé. she’s not optimistic that the pope’s interven- was the purpose of the USAID program.” q The Holy See has made it clear, again and tion would result in Cuba freeing Alan Gross. Washington-based journalist Ana Radelat has again, that attempts to use the church as a “The Catholic Church is doing really im- political tool of the local opposition against covered Cuba-related issues on Capitol Hill for portant work in Cuba right now. Cardinal CubaNews since the newsletter’s birth in 1993. the Cuban government will not be tolerated. Ortega has been in a dialogue with Raúl A similar approach was recently stated by Or- Larry Luxner contributed to this story. lando Márquez, spokesman for Archbishop Ortega and editor of Palabra Nueva. Vatican officials have repeatedly stressed OFAC nixes Florida-Cuba passenger ferry idea their disapproval of the U.S. embargo against orget about boarding a ferry in Flor- and played a key role in writing its regula- Cuba while promoting the EU’s alternative ida to see Pope Benedict XVI in Cuba tions. Moecklin knows Dorgan from his approach, known as the Posición Común. Fthis month. The U.S. Treasury De- days working with a Colorado firm, Miller After his last visit to Cuba, Cardinal partment’s Office of Foreign Assets Con- Farms Exports, that sold food to Cuba. Bertone publicly suggested that Washington trol has denied an application from Havana Havana Ferry is one of several compa- should trade the Cuban Five as part of a Ferry Partners to offer service to Cuba for nies hoping to offer Florida-Cuba ferry ser- process of normalization, something the the pope’s visit — or for any other occasion. vice. Others are Orlando’s United Caribb- United States has dismissed completely. OFAC, which oversees the U.S. embargo ean Lines, Paris-based Unishipping SA and John Paul II did not play into the hands of against Cuba, said ferry service is “beyond Spain’s Balearia. The service was popular dissidents inside the church, such as Dago- the scope of current policy.” While in the 1950s before the United States im- berto Valdés and his foreign-financed journal Washington has expanded the number of posed its embargo on Cuba in 1962. Vitral, and José Conrado Rodríguez, right- U.S. airports that can offer charter flights Moecklin’s company aims to operate a hand man to the late Bishop Pedro Meurice). to Cuba, “ferry services were not included ferry that would hold 500-600 passengers He also refused to meet lay dissidents like in the group of policy changes,” said and their luggage and later, haul freight Osvaldo Payá and others. When it comes to OFAC’s Feb. 27 rejection letter. and vehicles too. Initially, most passengers Cuba, Vatican sources have insisted that Havana Ferry plans to appeal, said man- would be Cuban-Americans, who may visit Benedict XVI will follow the pattern estab- family on the island whenever they wish. lished by his predecessor. aging partner Leonard Moecklin Sr. He sees no reason why authorized U.S. U.S. ferry service also would need a It’s quite clear that the relationship among license from Cuba, but Moecklin said he the Vatican, Cuba’s Catholic Church and Cu- passengers can fly to Cuba and not take a ferry. Current rules on the embargo allow has assurances for Cuban approval once ban government authorities is an excellent Washington gives its go-ahead. example of “constructive engagement” — the both “aircraft and vessels” to serve Cuba, product of a long process of give-and-take, and cargo already is shipped both by air OFAC’s rejection came just two weeks and gradually improving ties. and sea, he told CubaNews. after Moecklin went public with complaints These ties won’t be altered or undermined “A ferry would be less expensive for pas- about delays on an answer for his license by the usual attacks and pressures from the sengers and would let them take more bag- application, first submitted in 2010. so-called local opposition, from South Flor- gage,” said Moecklin, who plans to sell tick- Moecklin likened the wait for a Treasury ida’s aging exile community, or from certain ets at least $50 cheaper than round-trip decision to being stuck in a black hole. quarters in Washington. It appears that 2,000 charter flights. “The demand is there.” Moecklin said he initially felt disappoint- years of wisdom will prove Rome right. Havana Ferry has hired the Washington ed by the denial letter, but is now embold- q law firm Arent Fox and its senior policy ened. He’s confident OFAC will recognize Former Cuban intelligence officer Domingo adviser, former Sen. Byron Dorgan (D-ND) that ferries — like planes — are allowed Amuchastegui has lived in Miami since 1994. He to handle its appeal. Dorgan sponsored the under current U.S. policy. writes regularly for CubaNews on the Communist 2000 law allowing U.S. food sales to Cuba – DOREEN HEMLOCK Party and South Florida’s Cuban exile community. 4 CubaNews v March 2012 POLITICS Since relaxation of OFAC rules, ‘people-to-people’ takes off BY ANA RADELAT “Your days will be filled with hand-picked Cubans to get exposure to the United States,” o a Google search for anything related experiences, followed by nights of bonding he told us. “The trips are so enriching.” to Cuba, and an ad for Insight Cuba — with the local Cuban people and your fellow Marcel Hatch, president of Cuba Education D travelers,” promises Insight Cuba’s website. Tours in Vancouver, said 99% of those who which organizes and sells trips to the Popper said he’s arranged 70 trips since the buy his travel packages are U.S. citizens. As a island — will likely pop up. travel rules were relaxed and expects to Canadian company, Cuba Education Tours is A division of the New York-based nonprofit organize 70 more before year’s end. ineligible for an OFAC travel license — mean- group Cross-Cultural Solutions, Insight Cuba “To some it’s an experience of a lifetime to ing his American travelers must get individual is among dozens of such organizations that say, ‘I played the bongos with Cuban musi- permission from OFAC to join his tours. have sprung up in the wake of President cians,’” said Popper, whose packages are lim- Hatch’s tours are generally aimed at Ameri- Obama’s 2011 decision to relax restrictions ited to 24 travelers and cost $1,795 to $4,098, can teachers and focus on Cuba’s history and on American travel to Cuba. not including airfare to and from Cuba. education system. But he also offers trips to These companies will keep proliferating un- music workshops as well as Cuba’s biennial less the Washington political scene changes GOOGLE HELPS INSIGHT CUBA BUILD BUSINESS arts festival, which he says promises “a caval- after Nov. 6, when Obama, the full House and Insight Cuba has become the leading pro- cade of gallery romps.” one-third of the Senate are up for re-election. vider of U.S. authorized people-to-people trav- Hatch told CubaNews that many of his trav- “I would say we’re confident, but we do el in part because of savvy advertising tech- elers are professionals, like doctors, who qual- understand it’s a volatile situation,” said Tom niques like Google Adwords, which uses key- ify for licenses for the purpose of research. Popper, president of Insight Cuba. words to target an audience. “Even though Obama has opened travel, As a nonprofit promoting “purposeful trav- It also helps that Insight Cuba has years of the economic downturn means anyone who el” to Cuba, Popper obtained a one-year, re- experience in people-to-people travel. In 2000, travels would have to be a professional be- newable license from the Treasury Depart- when President Clinton relaxed travel rules, it cause they are the only ones who can afford ment’s Office of Foreign Assets Control that became the first nonprofit to obtain an OFAC it,” said Hatch, noting that he’s sent about lets him take groups of Americans to Cuba. travel license. But only three years later, then- 3,000 Americans to Cuba since last year’s These OFAC-sanctioned tours focus on President George W. Bush tightened those change in travel regulations. Cuban salsa music, packages to Havana’s jazz rules, putting Popper out of business. In that time, said Hatch, at least 30 Cuba festival and trips to Trinidad and other Cuban “It was a shame because these visits are not tour organizations have sprouted up in the colonial cities. Hotels, meals and transporta- about politics, they are opportunities for United States — about the same amount that tion on the island are all included. Americans to learn about Cuba and for existed before Bush’s crackdown. “But these organizations had huge staff and overhead and when their business was cut by 90%, they folded,” he said, adding that there’s Miami-Dade to punish firms for Cuba ties plenty of room for more companies that send Americans to the island. “There’s such a pent- lorida lawmakers have passed sweep- tracting decisions based on the vendor’s in- up demand for Cuba travel.” ing but little-noticed legislation this ternational work oversteps a state’s power, F said Dan O’Flaherty, vice president of the session barring local governments EMBARGO BACKERS URGE RETURN TO LIMITS from hiring companies that do business with Washington-based National Foreign Trade However, that demand hasn’t been strong Cuba, the Miami Herald reported Mar. 13. Council, which advocates trade with Cuba. The law appears to target one of Miami- “It’s unconstitutional,” he said, citing a enough for some U.S. airports — including Dade County’s largest contractors: Ode- 2000 case in which the U.S. Supreme Court those in Atlanta, Chicago and San Juan — to brecht USA, the local subsidiary of the struck down a Massachusetts law restrict- sustain charter flights to Cuba. giant Brazilian conglomerate. The parent ing state businesses from dealing with Popper said the airports which do host new company’s Cuban affiliate is participating companies with ties to Burma. Cuba travel charters, like Tampa and Fort in a major expansion at the Port of Mariel. “States are barred by the Supreme Court Lauderdale, don’t have the frequent flights he Legislators in Miami-Dade — with near- decision from enacting procurement sanc- needs. As a result, his customers fly out of unanimous support of the Florida House of tions targeting companies doing business Miami International Airport, which has host- Representatives and Senate — pushed the in foreign country X,” added O’Flaherty, ed charters to Cuba for decades. bill as a way to keep taxpayer dollars out of whose NFTC sent letters to Gov. Rick Scott Embargo supporters in Congress want an the hands of repressive regimes. and House and Senate leaders opposing it. end to purposeful travel and a return to the The law also applies to companies that In general, state and local governments Bush-era limits. They say the trips authorized work in Syria, which, like Cuba, is on the are barred from setting policy that conflicts by OFAC now are thinly disguised Caribbean U.S. list of state sponsors of terrorism. with federal law. A Florida House staff tourism vacations that bring the Castro gov- “It puts the decision on the companies analysis suggested Congress has author- ernment millions of hard-currency dollars that are affected,” said Rep. Michael Bileca, ized the type of contractual restrictions in and violate the embargo. a Miami Republican and one of the bill’s the legislation, which takes effect July 1 The policy has prompted Cuban-American sponsors. “Do they want to do business in and is not retroactive. lawmaker Sen. Marco Rubio (R-FL) to block Florida, or do they want to do business in But Miami-Dade has lost past fights over the confirmation of Roberta Jacobson, Oba- these countries?” Cuba policy. In 2007, county attorneys ad- ma’s choice to head the State Department’s Yet a major portion of the legislation, vised that Miami-Dade couldn’t consider Bureau of Western Hemisphere Affairs. which applies to contracts worth at least $1 contractors’ Cuba ties in awarding the $607 Yet it’s unlikely embargo supporters will be million, seems likely to face a court chal- million Port of Miami tunnel project. able to roll back the new Cuba travel policy lenge for interfering with the federal gov- Activists had opposed giving work to while Obama is in office. ernment’s power to set foreign policy, Bouygues Travaux Publics because an affil- “We have support in Congress to do so,” experts told the Herald. iate of the French firm had built 11 resorts said Rep. Mario Díaz-Balart (R-FL), “but Statutes limiting local governments’ con- in joint ventures with the Cuban military. q Obama threatens to veto any bill that changes the policy.” q March 2012 v CubaNews 5 POLITICAL BRIEFS CUBA TO CREATE NEW ENERGY, MINING MINISTRIES In their own words … Cuba will establish ministries of energy and min- ing as part of President Raul Castro’s campaign to “The pope is determined to revive the faith in countries that were Christianized reorganize government and make it more ef-fec- before but need a new evangelization, and he saw in this mission a true example tive, Reuters said Mar. 1, quoting state media. of what it is to revive the faith of a people.” Cuba’s existing Ministry of Basic Industry will — Archbishop Jaime Ortega of Havana, speaking Mar. 14 on Cuban TV about Pope be eliminated and some of its key functions taken Benedict XVI’s impending visit to the island, scheduled for Mar. 26-28. over by the two new ministries, the reports said. The restructuring has been in the works for “This is a case of Cold War ideology colliding with 21st-century environmental months and is expected to continue with other policy, and it is the environment that is at risk.” changes aimed at both streamlining government — Lee Hunt, president of the Houston-based International Association of Drilling and reducing its role in running the economy. Contractors, criticizing a U.S. policy which prevents American firms from coming to The intent, said Communist Party newspaper Cuba’s assistance in the event of a disastrous oil spill in the Gulf of Mexico. Granma, is to put more of a premium on “efficient function, greater rationality and the reduction of “Times are tough now. The Cuban people are having a rough time seeing all types of unnecessary expenditures.” what the future may bring. The situation back during Pope John Paul’s visit was The changes began last year with the elimina- just as rough, but at least then there was hope.” tion of the once-powerful Sugar Ministry, whose — , duties were turned over to a holding company. Rev. José Conrado Rodríguez a well-known Cuban priest and critic of the Castro The creation of a Ministry of Energy comes as a regime, speaking Mar. 5 during a visit to South Florida. consortium led by Spain’s Repsol-YPF SA drills the first of what Cuba hopes will be a number of “When we speak about organizing a comprehensive fight against corrupt offshore oil wells in the Gulf of Mexico. activities, indiscipline and disregard for the law, we’re thinking about all levels. The Mining Ministry will oversee Cuba’s nickel The people aren’t responsible for the black market, it’s the responsibility of who- operations, along with smaller projects. Nickel is ever has the product and doesn’t manage it correctly — but all of us have to deal one of Cuba’s top sources of hard currency. with that situation, because if we lose the revolution, who loses? Those in charge of managing goods and every one of us.” CUBA: WE WON’T ATTEND OAS SUMMIT IN CARTAGENA — Gladys Bejerano, Cuba’s controller general, quoted Feb. 19 in Juventud Rebelde. Cuba has decided not to attend an upcoming hemispheric summit following talks with Colom- “He says he has to be operated on abroad because the conditions don’t exist bian President Juan Manuel Santos, averting a for him to be treated in his own country. What does that mean for common citi- diplomatic showdown with U.S. leaders who had zens if they have cancer?” insisted Cuba not attend. — Henrique Capriles, Venezuela’s popular opposition presidential candidate, criticiz- Santos flew to Havana on Mar. 7 to discuss the ing Hugo Chávez’s decision to have surgery in Havana, and govern from there, too. Organization of American States summit in Carta- gena with President Raúl Castro and Venezuelan “Frankly speaking, we have no ‘shopping list’ for this visit. We will receive him President Hugo Chávez. with respect and appreciation. That is our greatest desire, both of the govern- The deal, brokered by Santos, will likely defuse ment and the people of Cuba, and not just the Catholics.” threats by left-leaning states allied with Havana to — Eduardo Delgado Bermúdez, Cuba’s ambassador to the Vatican, telling Reuters on boycott the summit if Cuba was not invited. It also Feb. 22 that Cuba will not ask Pope Benedict XVI to condemn the U.S. embargo. marks a victory for Santos, who is striving to pres- ent himself as a regional mediator. “Corruption is routine in Cuba. But this report is not about [stealing] three U.S. leaders said Cuba can’t attend the meet be- pounds of lard or a chicken. This is corruption at an extraordinary level.” cause it isn’t an OAS member. Cuba was thrown — out of the Washington-based organization in 1962 Pedro Roig of the Institute for Cuban and Cuban-American Studies, commenting but invited back in 2009. Even so, it says it won’t on the Vista Hermosa scandal. The 32-acre farm in Matanzas province reportedly rejoin because it sees the OAS as a U.S. “lapdog.” had lots of fertilizer, feed and other goods in short supply — thanks to crooked state workers. A former Hialeah man now sits in a Cuban jail, reports the Miami Herald. SANTERíA PRIESTS UNIMPRESSED WITH PAPAL VISIT “When you talk about luxury products, that upturn is driven now by China. It’s The Afro-Cuban Santería religion may owe booming. The Chinese are quite heavy smokers and much more interested in much to Roman Catholicism, but many Santeros luxury products. The bestseller there is the Cohiba, our most expensive cigar.” are decidedly unenthusiastic about Pope Benedict XVI’s tour of Cuba, Fox News reported Mar. 5. — Javier Terres, vice-president for development at Habanos SA, noting that exports Santero priests still remember the last time a of Cuban cigars to China (including Hong Kong and Macau) rose by 39% last year. pontiff came to town — and flatly refused to meet with them. They are expecting no better treat- “I found him hopeful, and Purim is a festival of miracles. So we all pray that a ment this time, and some are openly disappointed. miracle will allow us to see a resolution of the pain and suffering of all involved.” Their religion is by far the most popular in Cuba, — Rabbi Arthur Schneier, a prominent New York rabbi, speaking after his Mar. 6 jail- with adherents outnumbering practicing Catholics house visit to Alan Gross. Schneier brought the imprisoned USAID subcontractor a 8-1. Yet as far as the Catholic Church is con- prayer shawl and traditional sweet pastries to mark the Jewish holiday of Purim. cerned, “we live in the basement, where nobody sees us,” said Lazaro Cuesta, a Santero high priest “I fully appreciate René González’s need to visit a dying family member. We with a strong grip and a penetrating gaze. need to remember that these are real people and real lives that are profoundly “We have already seen one pope visit,” he said, affected by these decisions.” “and at no moment did he see fit to talk to us.” — Judy Gross, wife of Alan Gross, in a show of compassion for René Gonzá- Cuesta’s bitterness stems from what many San- lez, a convicted Cuban spy now on probation, whose request to leave the tería leaders see as an unforgivable snub by Pope U.S. to visit his dying brother in Cuba was denied by federal prosecutors. John Paul II during his historic 1998 tour. 6 CubaNews v March 2012 SPECIAL REPORT: CUBA’S CEMENT INDUSTRY Cuba attempts to revive its cement manufacturing sector BY ARMANDO H. PORTELA market in cement and other building materi- prices are well beyond what most Cubans can uba’s cement industry is a mix of high als — which has been for decades the only afford. At $6.81 per 94-pound bag, an ordinary expectations and crumbling neglect. place for most Cubans to get what they need Cuban earning $18 a month can’t even afford COne can sense the potential if a sudden to make urgent home repairs. three bags. Bought online — an alternative burst of good news should energize the Cu- More recently, the government announced for Cuban exiles who wish help their relatives ban economy — as well as sorrow at the dete- its intent to lift a series of unspecified obsta- on the island — that same bag costs $9.03 (far rioration of nearly irrecoverable facilities. cles to home construction, leaving intact only more than the $1.62 wholesale price for Cu- Indeed, throughout the length and breadth essential norms such as zoning and architec- ban cement exported to the Caribbean). of Cuba, brilliant examples of foreign invest- All three prices seem outrageous, however, ment, upgrading and profitability coexist with when compared to cement production costs rusting, unsustainable factories. in local factories. Apparently, it costs the 26 de By the late 1980s — at the peak of the in- Julio plant at Nuevitas only 118.63 Cuban dustry’s success — cement exports were vir- pesos (less than $5) to make a ton of cement, tually unheard of. A decade into the crisis, according to a Granma report. Cuba was selling abroad more than half its That translates into production costs of about 21 cents a bag, not including packaging output (see related story, page 8). But that didn’t help the industry rebound or transportation. These gross figures show much; in fact, it continued to shut down some profit margins in excess of 90% for the factory. facilities and downsize others. More than two decades after the industry CEMENT FACTORIES OPERATE UNDER CAPACITY lost momentum and turned to exports to stop Three out of the six cement plants current- the abrupt tailspin suffered in the wake of the Karl Marx plant is now Cementos Cienfuegos SA. ly operating in Cuba were built after 1959; the Soviet Union’s collapse, it’s evident that mere- other three were enlarged and modernized tural regulations. repeatedly over time, until the post-Soviet ly shipping cement abroad won’t be enough to “I insist, the solution is not to prohibit con- restore lost glory. economic crisis sent them all into oblivion. It seems that only Cuba’s dormant domes- struction, but to show where and how to do They are located conveniently near Cuba’s tic market — whose needs are enormous — it,” Raúl told the Council of Ministers in a Feb. main oil refineries, thermoelectric plants and has the potential to bring Cuba’s cement 29 meeting, as reported by Granma. power transmission lines, as well as its main plants out of oblivion and make the industry Although no further details were given, it’s cities, industrial hubs, ports and rail lines. bloom again. apparent that Castro is referring to the ineffi- The six factories boast a combined produc- cient bureaucracy that makes building a fam- tion capacity of about five million tons a year, CUBA AIMS TO CRUSH BLACK-MARKET CEMENT ily house in Cuba an epic endeavor. but actual production is nowhere near that. Loosening the state’s grip on housing con- If obstacles are effectively removed and Santiago de Cuba’s José Mercerón plant, struction and building materials might jump- construction materials really become afford- whose capacity is 600,000 tons/year), is idled, start the ailing cement industry, however. able and easily available for common people, while the Siguaney plant in Sancti Spíritus Last summer’s decree by President Raúl then Cuba’s oversized yet decrepit cement operates at only 40% of capacity. Nuevitas, Castro to stop subsidizing the sale of building industry could get a much-needed boost. another former giant, has been producing at materials in state-owned stores was aimed at There seems to be ample room to play with only 18% of its nominal capacity over the past ending a paternalistic, and woefully ineffi- prices to stimulate consumption and, ulti- six years with a downward tendency. cient, egalitarian distribution scheme that has mately, cement factory revenues. As in many other Cuban industries, real pro- caused Cuba’s housing stock to wither away. According to reports from Havana, cement duction never reached capacity, even in the It also aims to put out of business the black is always available in state-run stores, though See Cement, page 8 March 2012 v CubaNews 7 Cement — FROM PAGE 6 best of times. In 1989 — the top performing year after the beginning of the Soviet collapse — production was at 75% of installed capacity, while average output for the 1980s was only two-thirds of capacity. The problem can be attributed partly to the construction of huge, costly projects, which froze investments and made the industry inef- ficient. More important, however, is the ener- gy factor. It requires 1.1 barrels of oil to man- ufacture one ton of cement in wet-process kilns, and 0.7 barrels per ton in dry-process kilns. As a result, oil consumption (not to mention high electricity prices) accounts for more than 60% of production. With oil above $100 per barrel and rising, the industry — especially the wet-process plants of Nuevitas, Siguaney and Santiago de Cuba — will need to scale back output or em- ulate Cementos Cienfuegos SA, which opted for a new coal-based technology instead of oil.

ENVIRONMENTAL ISSUES THREATEN GROWTH Pollution is another serious issue for Cuba’s cement sector. As is the case with other indus- tries, these Soviet-era behemoths create huge amounts of toxic wastes that contaminate the environment. This represents not just a public health hazard but also production losses. Dust-covered facilities and adjacent towns are common sight. For years, Havana’s black market in cement fed on the dust that was simply shoveled from plant residues at Mariel and Artemisa. Cement manufacturing also generated rela- tively large volumes of CO2 from oil burning, not to mention oil spills and other toxic sub- stances dumped into the groundwater. No matter how much the industry has fallen or how outdated its facilities may be, Cuba’s cement industry — once the pride and the epitome of socialist engineering and develop- ment — is poised for a comeback, along with a handful of other sectors. After seeing production levels from 3.45 million tons per year in the late 1980s to an annual average of only 1.7 million tons over the last five years, the industry is enjoying a modest recovery stimulated by increasing opportunities for exports, an incipient recov- ery in domestic demand and upgrades in the manufacturing process. Until the precipitous downturn of the Special Period in the early 1990s, cement was one of Cuba’s fastest-growing industrial sec- tors. Comparing average output from 1954-58 with 1985-89, production increased by a factor of more than six — from an average 563,000 tons/year to 3.47 million tons/year. The most significant growth occurred after 1970, when several important plants were built, and the existing ones were expanded. This resulted in an impressive 31.2% growth See Cement, page 9 March 2012 v CubaNews 9 less frequent trips. It can take months, for ports like Mobile and Houston. Freight — FROM PAGE 1 example, to ship U.S. goods via Panama or It also explains why freight company ASC generally charging the sender $7-9/lb. The other nations to Cuba via state-run International of Tampa is looking to gather up offices hand the goods over to consolidators, TransCargo or CubaPack services. some of the smaller food shipments in who divvy up the items among baggage to be An anxious Cuban-American grandmother Houston and drop them in Cuba en route to carried on planes by mules. learned that lesson one recent Saturday its prime market in Africa. Representatives for the consolidators get morning. She stopped by a Miami shipping ASC founder Dana Reed says there’s just the bags at Cuban airports, often keeping sep- office to send two bags stuffed with items too little volume for Cuba to justify maritime arate cars waiting outside to whisk the items from Kmart to her 19-year-old relative about service exclusively to the island, noting that off to different cities. Charter flight operators say their profits de- pend on excess baggage charged paid by pas- sengers, including mules carrying gift pack- ages to Havana, Holguín and other cities. Costa estimates parcel traffic to Cuba has tripled or even quadrupled since 2009. But with mules now handling most of that, she’s cut her staff from four to two in recent years. Most Cuba-bound air cargo moves through Miami International Airport, which also leads in U.S. passenger traffic to the island. MIA said its cargo shipments to Cuba have jumped since the 2009 travel and gift rules took effect — nearly doubling from 68,599 kg in 2008 to 134,709 kg in 2010, the latest year available. And that doesn’t count all the excess weight sent as luggage in passenger planes. Why ship gift parcels with mules when tra- ditional air or sea freight would be cheaper? Part of the reason is timeliness, freight for- warders say. Delivery tends to take longer through traditional cargo channels because of

Cement — FROM PAGE 8 rate annually from 1970 to 1981, which led to average output of 3.3 million tons per year during the 1980s. Moreover, the growth in cement production promoted rapid expansion in construction to give birth soon in Ciego de Avila province. “for now, the only way my business with Cuba materials. Crushed rock production jumped “I want her at least have a nice robe, slip- almost 20-fold, from 2.5 million cubic meters can work is to consolidate shipments.” pers, feminine care products, diapers and Crowley Maritime, which ships mainly in the late 1960s to 47.6 million cubic meters some clothes for the baby,” said the grandma. in the late 1980s. Over the same period, pro- frozen poultry to Cuba on a larger Caribbean The clerk told her shipment by sea — for route, is adding gift-parcel shipments to help duction of concrete blocks more than dou- $1.99/lb — would take nearly two months, bled, from 18.6 million units to 45 million. offset declines in food transport to Cuba. arriving in Cuba after the baby is due. The Since October, it’s takes personal gift parcels Yet a recent Granma report disclosed that woman opted for air freight with pickup by sent by consolidators in containers from 2011 was a bad year for Cementos Cienfuegos another relative at Havana airport for $3.99/lb SA, with output 20% less than the 662,000 tons South Florida’s Port Everglades to Cuba. because that option was much faster. She The direct sailings are faster than sea projected. Exports came to only 34,000 tons could have sent her gifts even faster through — barely 16% of the 208,600 tons authorities freight routed through Panama; they also cost mules, but delivery would have been about senders less than air cargo to Cuba, said said would be sold abroad. Plant managers twice as expensive, the clerk said. blame marketing company Ecocem and Crowley’s vice-president, Jay Brickman. The Miami company flies goods in mini- Crowley now handles about one 40-foot trucking entity Udecam for the failure. mum 20-lb boxes usually twice a month on all- These problems are quite similar to those cargo flights to Havana. container of gift parcels for Cuba each week plaguing the 26 de Julio plant at Nuevitas. While the gift-pack business grows, com- and hopes to expand to four or five, he told us. According to another Granma report, when mercial shipments to Cuba are shrinking. Last year, it carried 40 containers of food warehouses are filled with cement, pur- Cuba’s government is buying less food and and medicine weekly to Cuba, down from chasers or state intermediaries fail to pick up medicine from the United States, as it opts for about 60 a week in the mid-2000s when Cuba the product, forcing the facility to shut down. suppliers that can offer credit. By contrast, bought more U.S. food. The plant is fining Udecam 2.5 million CUC U.S. agricultural exports must be paid for in For the future, one huge concern for the (nearly $3 million) in damages. q cash in advance, with no credit extended. cargo industry is rising fuel costs, which may Havana-born Armando Portela has contributed Those exports fell 6% by value last year to force greater consolidation of both air and sea to CubaNews since the newsletter’s birth in 1993. $347.2 million, according to government data. transport. Already, Caribbean Direct’s Costa Portela, who has a Ph.D. in geography from the That means fewer maritime shipments of said she shares the cost of leasing freighters Soviet Academy of Sciences, lives in Miami, Fla. grains and other products carried from Gulf with rivals to trim operating expenses. q 10 CubaNews v March 2012 NEWSMAKERS Bill Hauf hopes to inaugurate BWI-Havana flights this fall BY LARRY LUXNER those two Brothers to the Rescue planes were place on Wisconsin Avenue and got up every magine boarding a Boeing 727 jet at Balti- shot down. It was a Saturday, Feb. 19, and all morning, knocking on doors in Capitol Hill more-Washington International right after air traffic had been halted,” recalled Hauf. The and going to the House and Senate buildings Ilunch, and landing in Havana just in time businessman estimates he’s been to Cuba with a letter in my hand, giving it to legislative for a late-afternoon stroll along the Malecón. more than 100 times in the last 16 years — aides and asking if their boss would be inter- Within six months, businessman William J. constantly looking for ways around the U.S. ested in promoting the commission,” he said. Hauf hopes his company will be offering embargo that’s crimped bilateral trade for the “The idea was that they would write a letter weekly BWI-HAV charter flights, and maybe last half-century. to the president requesting the same thing,” twice-a-week flights if demand warrants it. In 1998, Hauf finally got serious about Cuba he said.”I got nobody to back me up on this, That would mark the first time in history — and called Gary Jarmin, a Washington politi- but I felt it was the right thing to do.” even before Fidel Castro’s 1959 revolution — Hauf finally struck gold with an aide to Sen. that the capital cities of the United States and John Warner of Virginia, who later became Cuba are linked by regular nonstop service. chairman of the Senate Armed Services “There have never been flights from BWI Committee. That ultimately led to a “Dear Colleague” letter with 12 signatories including to Havana, so it’s a big story,” he said. “That’s LUXNER LARRY why journalists have expressed such an inter- Henry Kissinger, George Shultz, Larry Eagle- est to be on the inaugural flight.” burger and other prominent Republicans — Hauf, interviewed earlier this month over all urging a review of Cuba policy. breakfast in Fort Lauderdale, is president of “Up until now, this issue had been a Demo- Island Travel & Tours Ltd., a Tampa-based cratic issue. Our effort was to bring Republi- outfit that specializes in Cuba. The inaugural cans into the issue so that it would become flight Hauf dreams of was supposed to take bipartisan,” Hauf said, noting that 25 senators off Mar. 21 — right around Easter recess — eventually signed onto the idea. but poor ticket sales forced him to put off that dream for at least another six months. FROM PLAYGROUNDS TO CHARTER FLIGHTS “We didn’t have enough interest to get the Ultimately, the Clinton administration 80 passengers we needed to break even,” he turned it down, he said, “reasoning that Al told CubaNews, noting that fewer than 10 tick- Gore had asked him not to, because Gore was ets were actually sold. “We began promoting going to run for president and he didn’t want in mid-January, which turned out to be an to continue with a commission that might go inadequate amount of time — nothing that against the wishes of the Cuban-American could develop into a large enough market.” community.” Hauf said the market for the Baltimore area However, two weeks after that rejection, will consist of categories of people who may Clinton announced he would expand people- already visit Cuba — government staffers, to-people travel to Cuba. While Hauf doesn’t think tanks, universities, religious groups, want to take credit for that, he does say that architectural schools, law schools, journalists his letter-writing campaign “brought Cuba to and entities like the IMF, the World Bank and the forefront of his priorities. I would hope the World Health Organization. that because of strong Republican support from two former secretaries of state, that LOBBYING FOR A U.S.-CUBA DIALOGUE would have been an attention-grabber.” Hauf, 67, didn’t start out in the travel busi- Encouraged by the new opening, in early ness — nor did he originally have any partic- 1999, Hauf wrote to the U.S. Treasury Depart- ular interest in Cuba. A native New Yorker, he ment’s Office of Foreign Assets Control, made his money in the California real-estate requesting a Travel Service Provider license, boom, investing mainly in apartments. a Carrier Service Provider license and a In 1988, he put together a 2,600-acre project Remittance Forwarding license. in San Diego County consisting of 1,600 sin- “In May 2000, I got all three licenses,” he gle-family homes. His Cuba obsession began Bill Hauf, above, hopes to begin charter flights be- said. “I also applied for a license from the tween BWI and Havana’s José Martí International Department of Commerce to ship playground in a conversation had 15 years ago with a Airport by October; it all depends on ticket sales. woman whose ex-boyfriend had visited Cuba. equipment to Cuba. At that time, I was making money off the apartments, and got 62 volun- “We were on a plane to go scuba-diving in cal consultant with ties to the Republican Party. the Cayman Islands, and we flew over Cuba,” teers to build playgrounds. I rented an A320 “We discussed how we might be able to from Airtran, and we took the volunteers on a he recalled. “I asked what that island was, and open the Cuba issue so there would be more it piqued my curiosity because I didn’t know dialogue,” he recalled. “Jerry had five differ- nonstop flight from Baltimore to Havana. That much about it.” ent ideas, but when he got to #3, I stopped was my first flight from BWI.” Before long, Hauf was helping distribute a him. The idea was to get President Clinton to Why playgrounds, we asked him. magazine called “Business Tips on Cuba” be- establish a bipartisan national commission to “Having traveled to Cuba a number of ing published by Isidoro Malmierca, Cuba’s review Cuba policy.” times, I met many Cuban families,” he said. former foreign minister (and the father of cur- Hauf wrote a letter to Clinton, and a month “One had a four-year-old daughter, and we rent foreign trade and investment minister and a half later got an encouraging response would go to the park on weekends. We saw an- Rodrigo Malmierca Díaz). from Sandy Berger, who was Clinton’s nation- tiquated, 50-year-old equipment, broken see- After the elder Malmierca’s death, the mag- al security advisor. saws, swings with missing chains, and I kept azine ceased publication. “I relocated from San Diego to Washington thinking how wonderful it would be for these “I happened to be in Cuba in 1996, when solely to push the commission idea. I rented a See Hauf, page 11 March 2012 v CubaNews 11 knew Cuba wouldn’t give us permission [to fly — FROM PAGE 10 foot in Cuba in 40 years (the last time had Hauf been Mar. 21, 1959, when the Cincinnati Reds from Miami] because there were already kids to have a playground to play in.” played the Los Angeles Dodgers). eight companies serving that market,” he In 2003, Hauf incorporated It’s Just the Kids Fittingly, said Hauf, BWI was the first U.S. said. “In July 2008, I went down to Cuba and Inc., a Section 501(c)(3) organization dedicat- airport from which he requested government met with Tony Díaz, vice-president of ed to building playgrounds in Cuba. permission to offer flights to Cuba. Havanatur, and told him that from all indica- With help from Fernando Remírez, head of tions, Sen. Obama would be elected president. the Cuban Interests Section in Washington, HAUF: BWI IDEAL AIRPORT FOR CUBA FLIGHTS “Therefore, I wished to request landing and his counterpart in Havana, Vicki Huddle- “I felt that Baltimore was perfect for what I rights to Baltimore but also include Tampa, ston, “we built our first three playgroun ds: was trying to do, which was to bring the two because Tampa has one of the largest Cuban- one in Regla, one in Vedado, near the Hotel countries closer together,” he said. “I thought American populations in the United States.” Presidente, and the third in Marianao.” that if there were a direct flight from BWI to Hauf enlisted the support of Rep. Kathy In September 2005, the group buil t four Havana, more officials from Washington think Castor (D-FL) as well as Louis Miller, then- more, in the Havana districts of Cotorro, San tanks and policy institutes wou ld travel to executive director of Tampa International Augustín, Arroyo Naranjo and Guanabacoa. Cuba, get to know its people — and through Airport, and several other organizations including the Tampa Bay Partnership, the Greater Tampa Bay Chamber of Commerce and the World Trade Center of Tampa Bay. “I hope President Obama will show the leadership he professed in On Jan. 21, 2011, the Obama administration announced the list of new cities, and Tampa his campaign. The most definitive statement he can make regarding was on it. But that’s not enough, he says. “I hope President Obama will show the Cuba would be to fly Air Force One to Havana’s José Martí Airport leadership he professed in his campaign,” and show that we are a strong nation and can talk to anyone.” Hauf declared. “The most definitive statement he could make regarding Cuba would be to fly — WILLIAM J. HAUF, PRESIDENT OF TAMPA-BASED ISLAND TRAVEL & TOURS LTD. Air Force One to Havana’s José Martí Airport and show that we are a strong nation and can talk to anyone.” Asked if any embargo supporters on that, a dialogue could be established.” On Nov. 6, 2011, Island Travel & Tours Capitol Hill have ever criticized his charitable In addition, he said, “BWI is along the East began flying once a week between Tampa and work in Cuba, Hauf said not at all — “because Coast corridor that has I-95 and Amtrak, so Havana, charging $445 round-trip including the work I’ve done has been to help the Cuban people as far north as New Jersey, Philadel- taxes and fees. His planes are leaving full. community. I have a long track record of sup- phia and Delaware can come right to the air- “We have a waiting list of people but have porting Cuban children and seeing that they port by train. Dulles is somewhat isolated, and not been able to accommodate them because have a safe place to play. The playgrounds we you have to take a bus or taxi or some other we don’t have extra seats,” Hauf said, adding build are put into neighborhoods, not behind means to get to it.” that he’s asked Cuba for permission to offer government buildings.” But Hauf was told that he couldn’t be grant- more flights but hasn’t heard back yet.“ In March 1999, Hauf traveled to Cuba to ed CSP status from Baltimore because BWI “It’s a very competitive market, and prices watch the Baltimore Orioles make history, as was not on the approved list of airports. haven’t yet stabilized. The cost of a single tick- the first Major League Baseball team to set ‘So I changed it to Miami, although we See Hauf, page 14 U.S. charters struggle with weak demand for Cuba flights .S. charter flights to Cuba are getting a boost from Pope Lauderdale, but logistics are tough. It will take some passengers to Benedict XVI’s visit to the island later this month, but demand Santiago de Cuba, but can’t wait around to fly them out. Santiago’s Ufor year-round service remains limited, delaying plans to add runway is too small to hold all the planes for the pope’s trip. So its flights from more U.S. gateway cities. charter will return empty to Florida and then, fly back empty to Even existing charter service to Cuba is performing below expec- Santiago to pick up those passengers heading to Havana. tations, with flights added last year from Tampa and Fort Lauderdale Meanwhile, some U.S. residents interested in seeing the pontiff slowing growth in Miami, charter operators say. have decided not to visit Cuba because of the cost. A week-long pack- The reason: Despite the relaxed travel regulations now in force, age including flights, hotels and other basics can top $2,000. That’s the U.S. Treasury Department has been cautious about approving partly because Havana hotels are charging peak rates and rising fuel new “people-to-people” trips to Cuba. A slow U.S. economy — and prices have increased costs for flights, travel executives say. relatively high prices for charter flights — crimp visits by Cuban- The latest data from Miami — the top U.S. gateway to Cuba — Americans. And charter operators themselves are wary to spend on shows that after a 55% jump in 2010, the number of passengers leav- expensive leases for planes unless they’re confident they will sell ing MIA for Cuba rose only 5% in 2011 to 335,335. About 1,500 pas- enough seats and luggage space to cover their costs. That explains why ABC Charters of Miami considered flying from sengers also flew charters from Fort Lauderdale and another 3,500 Dallas-Fort Worth on leased American Airlines jets but opted to wait. from Tampa in 2011. Combined, that’s still less than 350,000 passen- President Tessie Aral wants to see stronger passenger demand first. gers taking charters from Florida to Cuba last year — far fewer than Likewise, Airline Brokers of Coral Gables is launching two more many operators had hoped (see map, page 14 of this issue). flights a week from Fort Lauderdale starting April, but will cut two a Said a recent headline in the Tampa Bay Business Journal: “Wanted: week from Miami to compensate. “By eliminating these two flights, More Tampa-Cuba passengers.” we’re making certain that we don’t oversaturate the market,” said In Puerto Rico, the charters also have struggled with weak de- executive Alexis Ravelo-Lombana. mand. Cuba Travel Services, based in Oakland, Calif., confirmed it The pope’s visit is helping the charter companies temporarily — has halted its weekly flights from San Juan to Santiago de Cuba, but not without headaches. though it may offer seasonal service later if demand warrants it. Airline Brokers is adding several flights from Miami and Fort – DOREEN HEMLOCK 12 CubaNews v March 2012 TOURISM MINTUR officials deny charges of discriminatory pricing BY VITO ECHEVARRÍA February 2012, pages 1-3). be named — claim the pricing policy against “Starting with the pope’s visit to Cuba, Americans has been going on for far longer, ravel agents representing Cuba made MINTUR took the decision to have a series of an appearance at the and is likely to continue long after the pontiff T New York Times weekly meetings to discuss the topic [pricing flies back to Rome. Travel Show, held Mar. 2-4 at the city’s for hotel rooms and airfares],” said Amistur’s Maria Díaz, who heads World Travel Ser- Jacob K. Javits Convention Center — along Mederos. “Given that this is the high season, vice — a travel agency in New York’s Jackson with tourism ministries and travel agencies this was why prices have been raised. The Heights district — came to the defense of the from Western Europe, Latin America, Africa pope’s visit is an extension of the high season, three Cuban officials. and the Far East. which includes Semana Santa [Easter week].” “In any country in the world that has a The event included a Mar. 3 seminar on Mederos continued: “We also have differ- major event, the price is going to be higher,” options for visiting Cuba. It was coordinated ences in pricing according to the hotels she said. “The European traveler is looking by Marazul Charters, C&T Charters, Insight they’re staying in. On the other hand, Cuba for a two or three-star hotel, while the Cuba and the Center for Cuban Studies, but has to take measures to ensure the security of American traveler likes a five-star hotel also featured three last-minute arrivals: Luís the pope and his delegation, and security for because anything else is no good.” Sotolongo Otero, president of Cuba’s San the press he’s bringing in, as well as the for- Even so, both agencies quoted in our story Cristobal travel agency; Eduardo Mederos, eign press. These are the prices set for the last month insist Americans are being charged director of Amistur, and Eloy Govea, com- high season. If [tourists] can’t pay them, they more to stay in the same hotels as their mercial director of Havanatur. can change the date [of their stay in Cuba].” European and other foreign counterparts. During a Q&A with journalists after their The Cuban official denied that MINTUR i- Earlier this month, Ronen Paldi, the presi- presentations, the subject of Pope Benedict mposes discriminatory pricing according to dent of Ya’lla Tours, received an email from a XVI’s upcoming visit to Cuba came up — nationality, as alleged by Ya’lla Tours, which Cuban colleague warning him that from now specifically allegations made recently by claims that U.S. travelers must pay a 70-80% on, local guides and taxi drivers are not Oregon-based Ya’lla Tours USA and a Euro- markup over what others are paying. allowed to take foreign tourists to private pean agency that Cuba’s Ministry of Tourism Mederos, along with Otero, also assert that restaurants (known as paladares). (MINTUR) imposes three different rates for the prices raised during the pope’s visit come “Those who keep taking clients to any pal- hotels, airfares and other services according down afterward, even though Ya’lla Tours and adar will be fired and may also have other to the nationality of the visitor (see CubaNews, the European agency — which asked not to See MINTUR, page 13 Habanos Festival attracts cigar-smoking big shots to Cuba roCigar, a trade show held in Santiago de los Caballeros every song “You’re So Fine.” Manzanera performed back-up on his guitar, February for Dominican producers of fine hand-rolled cigars, to an audience of Casa del Habano cigar shopowners and VIP cigar P attracts fans worldwide lovers from Western Europe, Canada, Russia and elsewhere. (see CubaNews, December 2011, page 11). It’s no coincidence that ProCigar comes only a week before its Gordon Mott, executive editor of the New York-based magazine Cuban competitor, Habanos Festival — given that are least some Cigar Aficionado, said Belushi’s appearance there was no accident. international cigar marketers are “We had talked several times expected to attend both of them. over the years about arranging a The difference with the trip for him on his own, but he Habanos event is its glitziness. jumped at the idea and immedi- ProCigar is geared more toward ately blocked out the dates on his Dominican cigar industry insid- calendar, even before an official in- ers, with attendees focusing on vitation was issued,” he said. “In the smokes themselves. The short order, Habanos executives Habanos Festival, though, tries to said they, too, were interested in attract celebrities and deep-pock- having Jim attend the festival.” eted cigar aficionados worldwide, Frankly, it’s surprising that using the allure of Havana itself Mott didn’t talk another celebrity as a selling point. into attending instead of Belushi: This explains the presence of Hollywood icon and former Hollywood actor Jim Belushi and California Gov. Arnold Schwarze- Phil Manzanera, member of the negger, who in 1996 and again in British pop group Roxy Music. 2003 appeared on the cover of The two were among those at din- Cigar Aficionado. ner at Havana’s Museo de Bellas Meanwhile, some wonder if Artes to commemorate the 520th Hollywood glitterati mix with aficionados at this year’s Habanos Festival. the U.S. government will ever let anniversary of the discovery of travel agencies sell Cuba cultural tobacco in Cuba by the Europeans. The occasion also marked the packages involving the island’s launching of Cuba’s Montecristo 520 EL limited-edition cigar. cigar sector and possibly the Habanos Fastival itself. Assuming that Other big shots have attended the Habanos event before, ranging happens, U.S. reservations for such trips would fill up quickly. from director Steven Spielberg to actors Jack Nicholson, Jeremy “Hell yes!” says Giovanni Baquerizo of cigar company Humo de Irons, Matt Dillon, Gerard Depardieu and Peter Coyote. Diablo LLC. “For business reasons alone, I would love to attend.” Unlike those A-list celebs, Belushi did far more than show up and Details: Daymi Difurniao Rodríguez, Habanos SA, Ave. 3ra #2006, puff on a few Cohibas. In a nod to his brother John’s starring role in e/20 y 22, Miramar, Ciudad de La Habana. Tel: +53 7 204-0513/14, ext the 1980 film “Blues Brothers,” Belushi performed a rendition of a 565. Email: [email protected]. URL: www.habanos.com. Buddy Guy song, and played harmonica to the Little Walter blues – VITO ECHEVARRÍA March 2012 v CubaNews 13 REAL ESTATE Is Cuba an ideal retirement haven for elderly foreigners? BY VITO ECHEVARRÍA Cuba within the past 11 months, and never because of the lack of regulations,” Nagy told have I been asked to show proof of insurance. . “Since last year, Cubans can sell nternational Living, a magazine based in Ire- CubaNews land for retirees interested in living abroad, “Foreigners are served in Havana by and buy real estate, but it is limited only to Iregularly names Latin American countries Clínica García, considered the best facility in Cuban citizens. I heard of some sales to for- like Ecuador, Panama, Costa Rica, Belize and Cuba. I’m told the service is swift, cheap and eigners, but everything is under a Cuban the Dominican Republic as being worthwhile of high standard. Elsewhere, foreigners are name. About two years ago there was a wave options for Americans and Europeans. limited to clinics. Again, fully stocked with [from Cuban authorities] to permit foreigners What about Cuba? Obviously, due to the on- pharmaceuticals, but if you have to receive to purchase state-built condos [in Edificio going embargo, that’s not a possibility for U.S. more than basic service, you may be sent to Atlantic], but after one or two purchases, they citizens. But it is a top consideration for Cana- the local hospital.” did freeze it and now they’re not approving dians and others who visit the island frequent- any sales in Cuba.” ly and want to stay for extended periods. Nagy said that despite all the hype, there’s However, it’s extremely difficult for non- no sign of any construction going on at Cubans to gain permanent residency, say Esencia’s Carbonera Club project in Varadero experts in the know. Such individuals must be — not even a promotional billboard. married to a Cuban national before they can Robert Sajo, the Canadian high-tech guru even apply. who launched CubaWeb.cu in the late 1990s, suggests an alternative for retirees on tighter For that reason, many recommend getting budgets: marry a Cuban and have that person tourist cards and renewing them, under the officially buy an apartment from a local, which assumption that retirees are only going to will end up being a lot cheaper than any units spend so many months of the year in Cuba. likely to be offered by high-end developers. “Canadians can stay for 90 days [on a “At $3,000 to $4,000 a month, you can live tourist card] — renewable for another 90 days like a king there,” Sajo told us. without leaving the country,” says travel However, such deals must be conducted writer Christopher Baker, who’s best known discreetly. for his “Moon Cuba” guidebooks. “Other for- “I’m aware of a few foreigners who have eigners can stay for 30 days plus [another] 30 bought homes in the names of their [Cuban] days without leaving.” spouses,” says Baker. “One unlucky Italian, Baker implies that once the in-country ex- who lived high-profile in Trinidad with one tension runs out, tourists must leave Cuba for house for a wife and, in true Italian fashion, at least a 24-hour period outside the country another for his mistress, was recently kicked (such as to Cancún or Nassau), and buy a new out of Cuba. Meanwhile, there’s no shortage tourist card to re-enter Cuba. of upscale condos and apartments for long- Since one of the main concerns of retirees term rental to foreigners, but they’re not is health care, Cuba and its well-regarded cheap either. Several are on Plaza Vieja, in- medical system stand out in comparison to cluding in the Edificio Gómez Villa, although those of other Latin American countries. most are in Miramar.” And because all foreign visitors must pur- Nagy agrees, noting that in Havana, a 60-sq- chase health coverage before entering Cuba, meter, one-bedroom furnished condo at retirees have less to worry about than going Miramar’s Cecilia building rents for 1,000 to another country where they would have to Havana’s Edificio Atlantic caters to foreign tourists. CUC ($1,100) per month, excluding electrici- buy it independently. Another key issue is housing. Since the late ty. “That, I think, is the highest rental in the “The need to buy insurance is merely theo- area,” he said. “In Panama for that amount, retical,” says Baker. “I’ve made eight visits to 1990s, permanent accommodations for for- eigners have been extended only to interna- you can rent a house in a gated community.” tional business executives operating in Cuba, Regarding retirees’ access to their savings while staying in Cuba, Nagy says “it is not nec- — FROM PAGE 12 with the authorities permitting the construc- MINTUR tion and sale of a few luxury condos in essary to have a local bank account. The problems, including jail time,” said the email, Miramar and other areas of Havana. retirees have tourist status, and tourists can- which is dated Mar. 2 and is based on a five- not open a bank account in Cuba. They should hour meeting MINTUR officials had with for- REAL-ESTATE REGULATIONS STILL LACKING use their foreign account and access their eign tour operators in Havana the day before. Even with the fanfare surrounding new lux- money through their credit cards.” “Tourists can go to private restaurants, but ury developments like those by Britain’s Sajo advises budget-conscious retirees to they have to make their own reservations and Esencia Group — which plans a five-star re- transfer funds within Canada to a Transcard go by their own means. We have to feature sort, seaside golf courses and luxury residen- (prepaid debit card), which is widely used in and sell government-owned restaurants tial villas near Varadero — much of that hous- Cuban retail stores and supermarkets but car- exclusively,” the tour operator told Paldi. “I ing for wealthy retirees has yet to materialize. ries no fee for withdrawing money. have requested formal information about this “The [Cuban government] regulations are Canadians and others considering Latin issue in writing, but there is nothing official. I not set yet for foreigners to buy real estate,” America would like Cuba for another reason: think MINTUR understands the implication says Tamas Nagy, a sales executive at Mary- a crime rate far lower than the Dominican Re- for this to be in writing.” sol Travel Services, whose Panama-based public or anywhere in Central America, due to The operator ended his email to Paldi that firm rents out apartments at Havana’s Edificio the omnipresent police presence and the lack “no guide or driver will now go to a paladar Atlantic to long-term visitors. of guns, drugs and gangs on the streets. q with your guests. No one will violate this new “I was told that they are working on it, as Vito Echevarria, a New York-based freelance regulation, so we have to think what to do, several golf and villa projects were approved, journalist, writes regularly for CubaNews about and what’s best for our clients.” q but no groundbreaking has been done yet business, e-commerce, the arts and entertainment. 14 CubaNews v March 2012 local Cuban-American population to fill seats. go for only half a week, return on our Sunday Hauf — FROM PAGE 11 In New York, for example, Marazul pulled flight to Tampa and get a connection to BWI.” He added: “Tampa has the same challenge et to a charter company [between Tampa and out from that market after many years. “Then when Obama made his announcement, Mara- BWI has in recruiting international carriers. Havana] is at least $500, and can be as much The people who work as air services develop- as $532 based on landing fees. We’re losing zul wanted back in and got two flights, but then said they would terminate those flights,” ment managers travel around the world, talk- money on every ticket we sell. ing to those foreign carriers and trying to re- “That’s why if we filled a flight with non- FLORIDA AIRPORT PASSENGER VOLUMES cruit them to establish routes. They see Cuba Cuban-Americans, we’d lose money because as a great opening. Once we begin, we hope they don’t bring excess baggage. However, we there will be a flight every week until such invite them to fly with us, particularly in time we’ll have enough passengers to open a groups, so we can make all their ground serv- second flight. That’s our goal, to have a mini- ices in Cuba. Those revenues help offset the mum two flights a week.” loss we experience on their ticket sales.” BWI spokesman Jonathan Dean agreed. In contrast, said Hauf, the average Cuban “The Washington region has many organi- exile brings 100 lbs of luggage — and that’s zations and institutions which would benefit down from an initial $150 per passenger. from nonstop charters. It would be a very nice service for BWI to feature,” he told us. BWI EAGER TO ADD CUBA TO ITS ROSTER “Cuba is a niche market, one that under cur- Hauf said his passengers are carrying main- rent legislation is not available to your typical ly food items; one customer recently showed leisure traveler. But there is a specialized mar- up with a 70-lb suitcase filled with coffee. ket for this service,” said Dean, whose airport Other suitcases are crammed with medicines, handled 22.4 million passengers in 2011 and toothpaste, shampoo, linens, towels, chil- offers flights to London, Toronto, Aruba, Can- dren’s clothing, toys and Pampers. cún, Freeport, Nassau and Montego Bay. Hauf’s company charges $1.50/lb, though Hauf remains hopeful he’ll launch his head- the two other Cuba charters out of Tampa — line-making charters to Havana later this year. ABC Charters and Xael — charge $2/lb. “We need more time to make people aware “Hopefully at some point, we’ll be able to of these flights,” he told us. “Under DOT reg- make a profit,” he said. “Since we’re flying ulations, until we choose an exact date, I can’t more frequently from Tampa, we now have promote flights. But clearly we’ll have to do clients going every few weeks, so the amount Hauf said. “They also terminated their flights more promotion because groups take four or of excess baggage they’re taking is consider- out of Atlanta, which surprised me.” five months to prepare for. We’re looking at ably less than when these flights first began.” Under an accord with Xael, Hauf’s passen- the fall as a starting point because by then, For the moment, he said, of the dozen or so gers who can’t stay a whole week in Cuba may there should be sufficient demand.” q new gateway charter cities to Cuba, only fly back to Tampa on Xael’s Thursday flight. Larry Luxner is a longtime freelance journalist Tampa and Fort Lauderdale are doing well — “That’s why we chose to do our Baltimore and photographer based in Bethesda, Maryland. and that’s because they’re drawing on the flights on a Wednesday, so that people could He has been editor of CubaNews since May 2002. Cuba slowly phases out 50-year-old rationing system n Mar. 19, Cuba’s ration ry shelves for decades to come. card — the famous “libreta “Two generations of Cubans O — cele- passed their lives under this de abastecimientos” brated its 50th birthday. rationing system that, in spite of It was introduced in 1962 as a its egalitarian character, offered temporary measure to guarantee for decades to all citizens access food accessibility to all as Cuba to basic foods at ridiculously sub- transitioned from an unfair distri- sidized prices,” Raúl Castro said bution system under capitalism to last April at the Sixth Party socialist wealth. Congress. He added that the At that time, plans called for a libreta had become “an unbear- fantastic leap forward in food pro- able burden on the national econ- duction: milk, rice, beef, eggs, omy and a disincentive to work.” chicken, rabbits, beans, fruits and As such, the Castro govern- vegetables were all supposed to ment has made efforts to abolish become abundant in a matter of the 50-year-old rationing system. few years. Open discussions were Potatoes, cigarettes, cigars, even held on what to do with soap, toothpaste and other items future excess production. were taken off the rationing sys- “By 1970 we expect to produce Page from a 2008 ration book. Cuba’s famous “la libreta” is on its way out. tem in 2008 and 2009, though 30 million rabbits per year, which plans to move further in this dir- means that we can put a rabbit coat on every child if we want to, but ection are on hold until the regime creates more jobs, boosts effi- we aren’t going to do this,” Fidel Castro declared in an Oct. 24, 1965, ciency and slashes more than $1 billion in annual food imports. speech to Communist Party leaders in Havana. “It’s better to export The libreta should have been a short-lived phenomenon. them to get a little money to enable us to carry out all these plans.” Instead, it stayed with Cubans for decades and now its sudden In the beginning, the libreta included ham, cheese and butter, but end threatens a big chunk of the population without the means to such luxury items were soon dropped and rationing was focused on earn enough to feed themselves. the basics. Any sort of delicatessen food wouldn’t be seen on groce- – ARMANDO H. PORTELA March 2012 v CubaNews 15 2010, said ONE. Kerosene output was 3,600 1959 revolution produced 60,000 tons of cof- BUSINESS BRIEFS tons and lubricant oils weighed in at 47,000 fee, have steadily declined ever since. tons, while liquid gas fell 9% at 50,300 tons. Cuba reported that it imported 18,000 tons SHERRITT SEES DROP IN NICKEL, OIL, POWER Cuban oil refining nearly doubled in 2008 of semi-processed beans from Vietnam in Sherritt International Corp., Cuba’s largest as a new joint-venture refinery with 2010 at a cost of $38 million. private foreign investor, projects lower nick- Venezuela in Cienfuegos, 149 miles (240 km) Cuban farmers are now growing coffee in el, oil and electricity production on the island southeast of Havana, completed its first year the lowlands with the aim of both selling to this year, according to the company’s 4th- of operations, producing mainly for export. the state and directly to consumers. Plans quarter report released Feb. 22. Cuba and Venezuela have big plans to turn call for producing 22,000 tons in 2015 and The Toronto-based energy and mining con- the island into a refining center for future eventually 28,000 to 30,000 tons a year. glomerate forecasts a 2% reduction in nickel offshore oil as exploration begins in earnest and cobalt output, 4% lower oil production, this year and as a bridge for oil flowing from CIGAR SALES UP 9% DESPITE SLUMP IN SPAIN and a 11% drop in power generation in Cuba. Venezuela to other parts of the world. Cuban cigar sales jumped 9% to $401 mil- Sherritt said the drop in nickel production As part of bilateral integration efforts, lion in 2011 as spending on luxury items is due to lower ore grade; the shrinking oil Venezuela is revitalizing Cuba's downstream increased in countries with stronger production is caused by “natural reservoir operations and is using the island to supply economies, Reuters reported Feb. 27. decline rates,” partially offset by new produc- the Caribbean with crude and derivatives Cuban cigar executives said smokers in tion from exploratory drilling in 2011; and with preferential financing. China, the Middle East, Russia and Brazil the drop in power production at Sherritt’s Plans to increase the Cienfuegos refinery’s helped overcome declining sales in economi- two combined-cycle plants is caused by capacity from 65,000 barrels per day to cally troubled Spain and Greece. “increasing gas supply shortages.” 150,000 b/d in conjunction with Chinese “We are selling our products in 150 coun- Even so, the company is boosting capital companies, announced three years ago, have tries, which allows us to compensate to a cer- investments in nickel and electricity this yet to materialize. A new refinery in western tain degree for sales declines in some coun- year. Investments in the Moa nickel venture Matanzas province is also planned. tries with increases in others,” said Javier will be 33% higher this year than in 2011, There are two other operating refineries in Terres, vice president of Habanos SA, the mainly to replace machinery and to invest in Cuba: the Nico Lopez refinery in Havana and worldwide distributor of Cuban cigars. transportation of ore from longer distances. Hermanos Diaz refinery in Santiago de Stronger cigar sales followed “the world Likewise, a 150-MW expansion of the Boca Cuba, 540 miles east of the capital. rising trend of luxury goods,” Habanos said. de Jaruco combined-cycle power plant con- The two refineries, with maximum capaci- Terres spoke at the opening of the annual tinues in 2012. ty of around 65,000 b/d, have processed cigar festival of Habanos, a joint venture 42,000 b/d of Venezuelan oil mixed with 20% between Cuba and British tobacco giant AVIANCA LAUNCHES BOGOTÁ-HAVANA SERVICE Cuban heavy crude in recent years, almost Imperial Tobacco Group Plc. Colombia’s Avianca said that beginning exclusively for domestic use. The Santiago Western Europe accounted for 53% of Mar. 30, it will operate nonstop flights from de Cuba refinery is scheduled to be upgrad- Habanos sales last year, followed by Canada, Bogotá to Havana using Airbus A319 jets. ed in a joint project with Venezuela. Asia-Pacific, the Middle East, Africa and The planes are capable of carrying up to Cuba consumes around 160,000 b/d in Eastern Europe. By country, Spain leads all 120 passengers — 12 in executive class and petroleum products, some 60% of which others in Cuban cigar consumption, followed 108 in coach. Flights will operate Mondays comes from Venezuela. The rest is pumped by France, China, Germany and Switzerland. and Fridays, leaving Bogotá’s Eldorado from the northwest coast along with natural Terres predicted that 2012 would be a International Airport at 9:05 am and arriving gas for power generation. “complicated year” because of economic at Havana’s José Martí International at 1:31 uncertainties and the rise of anti-smoking pm. Return flights will leave Havana at 6:15 COFFEE HARVEST UP 24% THIS SEASON laws, which have swept the globe in recent pm, arriving in Bogotá 8:30 pm. Cuba’s 2011-12 coffee crop topped 7,000 years. The company’s goal, he said, would be “With the launch of this new services, tons of semi-processed beans — the best maintaining sales in a difficult environment. Avianca looks to consolidate its options in the performance in more than a decade — as re- Latin American tourist market, which seeks forms aimed at reducing imports apparently FLA. FIRM SUPPLIES MATTRESS FOR PAPAL VISIT alternatives for rest and relaxation in the kicked in, Reuters reported Mar. 12. Keith Koenig, president of City Furniture, Caribbean,” said Avianca’s president, Fabio “With the collection of 7,100 tons of coffee will have the satisfaction of saying the pope Villegas Ramírez, in a press statement. Cuba produced 10% more than planned, and slept on one of his mattresses, reports the “We are very happy to offer our clients this an increase of 24% compared with the previ- South Florida Sun-Sentinel. new route to Havana, a destination recognized ous harvest,” Radio Rebelde said. At the request of the Archdiocese of Miami for its history and natural attractions.” The Agriculture Ministry’s director of cof- he’s donating two of his chain’s Kevin Char- Passengers arriving from Cuba will have fee production, Elexis Legra Pelegrin, said les brand memory foam mattresses to en- access to Avianca connections to Colombia’s 88% of the crop was processed and 85% of sure that Pope Benedict XVI will sleep tight main cities, as well as other destinations like beans were of high quality, a 15% increase during his Mar. 26-28 visit to Cuba. Caracas, Quito, Panamá and São Paulo.equal over the previous harvest. The pope will be spending his first night in to levels in the 1970s. Legra Pelegrin called on farmers to meet Cuba at the priests’ residence in El Cobre, planting plans and improve efficiency during the small town outside Santiago de Cuba that EXPORTS OF PETROLEUM PRODUCTS DOWN 4.2% the 2012-13 harvest to meet the 8,500 tons is home to the Shrine of Our Lady of Charity Cuban production of refined petroleum planed. Picking begins in August and ends in of Cobre, the island’s patron saint. products, the country’s second-largest March, though most beans are harvested Koenig and his wife Doreen also will travel export after nickel, fell 4.2% in 2011, after a from October into January. to Cuba on a pilgrimage led by Miami 3.5% drop in 2010, as work to expand capaci- Cuba’s 35,000 growers, in exchange for low- Archbishop Thomas Wenski. “The opportu- ty faltered, Reuters reported Mar. 5, quoting interest government credits and subsidized nity to see the pope will be a big deal, and the National Statistics Office (ONE). supplies, must sell all their coffee to the state since the archdiocese is organizing the trip, I Diesel fuel output fell slightly, from 1.224 at prices that have always been be-low what wanted to support them,” Koenig said. million tons in 2010 to 1.221 million tons, the beans fetch on the black market. It will be his first trip to Cuba. Because of while fuel oil fell 4%, from 2.436 million tons Local analysts said 10-20% of the crop was the U.S. embargo, Kevin Charles mattresses to 2.332 million tons. diverted, though recent increases in state aren’t sold on the island. Gasoline production fell 11.8%, weighing in prices may have lessened the flow. The coun- “Maybe sometime in the future: City Furni- at 503,000 tons, down from 568,000 tons in try’s plantations, which at the time of the ture and Cuba,” Koenig said. “Who knows?” 16 CubaNews v March 2012

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