Cuban Tensions Habanos Said Close to Major Deal with Altadis
Total Page：16
File Type：pdf, Size：1020Kb
Volume 7 Number 12 A Target Research Publication December 1999 Dispute over future of Habanos said close to operations with the leading cigar company in the world, giving it better access to technology, Cuban boy increases U.S.- major deal with Altadis capital and markets. Altadis reportedly would Cuban tensions Cuban sources say state cigar monopoly become the exclusive agent for marketing the Habanos and French-Spanish tobacco giant WASHINGTON — The ugly tug-of-war leading Cuban cigar brands. Altadis have reached a tentative accord to form between the Cuban government and Cuban The exact management structure of the a wide-ranging joint venture. Reportedly, exiles in the United States over the fate of 6- arrangement is unclear. Habanos will retain Altadis would purchase a 50% stake in year old Elian Gonzalez has left the U.S. control of cigar production operations and Habanos for $500 million. government in the middle of a firestorm of would funnel money to tobacco growers, There also are reports that the deal would controversy and overshadowed most other which are not part of the deal, through settle outstanding debts Habanos owed to dealings between the two countries. prefinancing accords. Altadis has financed Altadis. Sources say these debts could be as The boy was picked up by fishermen after such arrangements in the past. high as $100 million. Habanos reportedly the boat in which he was riding in a bid to Habanos had profits of $64 million last would contribute its network of Casas del reach the United States sank, drowning his year. One problem the venture will seek to Habano tobacco shops to the venture. mother and step father. Ordinarily, under the address is that although cigar production Altadis, the result of a merger between terms of U.S.-Cuban migration accords, he continues to rise, sales have slumped in the Spain’s Tabacalera and France’s Seita, would would have been returned to Cuba quickly past year and inventories have grown. The make significant investments in Cuba’s tobacco because he did not reach U.S. soil. However, industry this year will produce 160 million growing sector and cigar producing facilities. he was transported to a hospital, which had to 170 million cigars for export, well under The deal would integrate Habanos’ the effect of allowing him to remain in the the 200 million target. United States. Initially, officials did not realize that his father was alive and in Cuba because INSIDE THIS ISSUE OF CUBANEWS Gonzalez reportedly told officials that his mother and father were “gone.” Fear of arrest prevents Castro from PDVSA considering move into Cuba By the time anyone realized his father was attending WTO meeting in Seattle that could prove risky alive, Gonzalez ha been granted conditional Despite what he said was a desire to go, Venezuelan oil company Petroleos de permission to remain in the United States by Fidel Castro stayed away from the WTO Venezuela (PDVSA) is considering a number the Immigration and Naturalization Service meeting,INSIDE citing a plot to detain him. of joint ventures with Cuban state oil (INS) and was living with relatives in Florida. See Politics on Page 2. company Cupet. Cuban officials launched a campaign to See Business & Trade on Page 6. have the boy returned to Cuba, arguing that Focus on improving efficiency to the father should have custody of the child and Soberon says Cuba succeeding in claiming that his mother had removed Elian mark 1999-2000 sugar harvest from Cuba without his father’s knowledge. Cuba began the 1999-2000 sugar obtaining longer term credits The campaign included a number of harsh planting season after a delay caused by Cuba has obtained medium- and long- speeches from President Fidel Castro and a rains. Officials said boosting efficiency will term credits for totaling $500 million over series of increasingly large demonstration in be the focus this year and next. the past two years, according to Central Bank front of the U.S. interests section in Havana. See Sugar & Agriculture on Page 4 President Francisco Soberon. Cuban officials, including National Assembly See Business & Trade on Page 7. President Ricardo Alarcon gave a series of Agriculture Minister could be victim interviews expressing determination that of Politburo shake-up Restoration of Old Havana Gonzalez be returned to Cuba, while oppo- nents of the Castro regime in the United States Agriculture Minister Alfredo Jordan progresses but challenges remain urged the INS to grant him political asylum. may be fired as a result of poor perfor- The reconstruction of Havana is progress- U.S. officials sought to stay out of the mance of the agricultural sector. ing despite shortages, other challenges Continued on page 2 See Sugar & Agriculture on Page 5. See Construction on Page 11. Elian Gonzalez ... scheduled for Dec. 13 were still on track as CubaNews went to press. POLITICS Continued from page 1 Castro also has accused Cuban exiles in dispute as much as possible, with President Bill Miami of offering Gonzalez’s father $2 million Fear of arrest prevents Clinton saying that the case should be decided in order to move to the United States and Castro from attending according to the law. Immigration experts in remain there with Elian. general supported the Cuban position, arguing Some analysts say Castro is using the WTO meeting in Seattle that the father’s parental rights should incident to repair some of the damage he By Ana Radelat outweigh other considerations. suffered during the Iberoamerican Summit in WASHINGTON — Cuban President The INS met with the boy’s father November and subsequent decision not to Fidel Castro said he prepared “feverishly” Dec. 13. Experts said that resolving the attend the World Trade Organization meeting for the World Trade Organization case by sending Gonzalez home before a in Seattle out of fear he would be arrested. ministerial meeting in Seattle, but decided hearing scheduled for Jan. 23 before an Latin American and Spanish leaders during the not to take the trip because of “insur- administrative law judge to decide Elian’s Iberoamerican summit met with dissidents mountable difficulties,” including the final status would be the most effective way repeatedly and issued a series of statements threat of his arrest. to resolve the issue. However, the boy’s calling for greater democracy and respect for Few world leaders accepted the family on Dec. 10 filed for asylum, a move human rights in Cuba. Although the summit’s invitation tendered by Boeing, Bill Gates legal experts said may not carry much final communique criticized the U.S. embargo and other hosts of the WTO event to weight because their guardianship of and attempts by the U.S. government to apply attend the Nov. 30 -Dec. 3 event. But, Gonzalez is not settled. If the return is not U.S. laws overseas, the summit was seen by until the last minute, Castro was expected arranged before the hearing, sources say many as an embarrassment to Castro. His to travel to Seattle because the WTO appeals could stretch out for a year or decision not to attend the WTO meeting also ministerial meeting would have given him more. was seen as a defeat as he claimed publicly that a high-profile platform to discuss favorite Castro appeared to be scoring points in he had been eager to go. topics, including the failures of capitalism the confrontation. Some observers were After a week of the dispute, U.S. govern- and dangers of globalization. surprised by his vehement reaction, but given ment officials began to send signals Gonzalez “With no pause to rest I devoted that the law may be on Castro’s side and that will be returned to Cuba. State Department myself entirely to reading materials related many legal analysts expect Gonzalez to be officials reportedly were livid the INS allowed to the upcoming meeting of the World returned to Cuba, the Cuban president him to remain in the United States at all and Trade Organization and to studying the appears to have much to gain by building the say the case could impact hundreds of custody complex themes I would need to address,” incident up so that his expected victory cases in which U.S. children were taken to Castro wrote Rep. Jim McDemott (D- appears all the more impressive. foreign countries by parents in the course of WA) in a letter explaining his 11th-hour Cuba also has implied migration accords custody disputes. decision to skip the event. with the United States could be scrapped if the The dispute reportedly prompted the Castro had been invited to speak at dispute is not resolved to Cuba’s satisfaction. Cuban government to reject a shipment of the University of Washington. Moreover, Doing so could touch off another wave of humanitarian aid from U.S. aid organization McDermott had planned a congressional rafters from Cuba. Migration talks previously Americares. reception for the Cuban leader and the U.S. Chamber of Commerce had orga- CUBANEWS is published 12 times per Customer Service: nized a dinner for Castro and the other year by Target Research, L.L.C., © 1999. P.O. Box 19690 members of the Cuban delegation. Alexandria, VA 22320 Contents may not be reproduced, But Castro determined that: “It would republished or stored in electronic retreival Phone (800) 376-3324 or (703) 684-4317 systems by any means without prior written Fax (703) 684-4059 soon be evident that the U.S. government permission of the publisher. Violators risk Editorial Offices: was opposed to my presence at the criminal charges and civil fines of up to meeting in Seattle. I was certain that the $20,000 per offense.