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Editor's Note www.cubanews.com ISSN 1073-7715 Volume 6 Number 10 THE MIAMI HERALD PUBLISHING COMPANY October 1998 Editor's Note MAJOR DEVELOPMENTS Hurricane Georges Impact Food Supply Shrinks There has always been an Alice in Wonderland quality to developments in Already reeling from a drought, Cuba got Meanwhile, the combined effect of natural Cuba, but a series of recent develop- hit by another catastrophe in the form of disasters, market fluctuations and such ments seems particularly bizarre and Hurricane Georges. The disaster didn’t stop could have a devastating impact on the rich in irony. Fidel Castro from suggesting that Cuba’s already eroded living standards of Cubans. Take, for example, Fidel Castro’s com- economy could serve as a model to the More food will have to be imported. ments on the world economy. At the world. See Agriculture/The Economy, page 9 moment, Cuba is reeling from the impact See The Economy, Pages 6 & 7 of natural and man-made disasters that Aid Package in Jeopardy raise questions about whether Cuba’s Condos in Cuba Despite the dire situation, President economy will experience any growth A Canadian company is joining Gran Castro grandly rebuffed U.S. participation in whatsoever this year. But that has not Caribe to build Cuba’s first condos and time- an emergency food relief plan that the UN is stopped him from pointing with glee at share facilities. The development will be trying to put together. This has put the the plunge in stock market prices. located on some prime beachfront property. entire package in jeopardy. The irony, of course, is that the same See Trade & Commerce, Page 5 See Washington Report, Page 8 officials who decry the state of the world economy refuse to give any figures on Cuba’s own performance, probably Sugar Exports Down The Embargo Again because the news is all bad. The poor sugar harvests of recent years Henry Kissinger heads a group of promi- Moreover, even as the level of rhetoric mean Cuba has less sugar to sell abroad. nent current and former government offi- against “capitalism” and “neo-liberal glob- Radio Havana estimates sugar exports will cials in Washington who want to set up a alization” is heating up, Cuba is trying to earn Cuba only $800 million, but it could be blue-ribbon commission to review policy lure more capitalist investment. The lat- a lot less, raising serious questions about the toward Cuba. A supporter of the status quo est victory on this front is outlined on economy’s viability. labeled the proposal “bizarre.” Page 5, where we report on Canadian See Trade & Commerce, Page 5 See Washington Report, Page 8 plans to build a $250 million condomini- um, timeshare and luxury resort project. Nickel Slide Continues Environmental Disaster More? Well, there’s the new Cuban decree on “enterprise improvement,” To make matters worse, the price of In the rush to develop the economy, envi- which, stripped of the gobbledygook, another big export commodity is plunging. ronmental standards in Cuba have been means that even as the government If the price of nickel goes down any further, ignored for decades. A government inspec- decries capitalism, it is trying to square Fidel Castro warned, the government may tion of Nuevitas reveals just how badly pub- the circle by updating Marxism to meet have to close at least one plant. lic health has been affected by this neglect. the demands of the free-market system. See Mining, Page 12 See The Environment, Pages 10 & 11 The decree appears to say that there should be a relationship between the INSIDE wages earned by workers and the profits earned by their enterprise. International The Economy But for real irony, the relationship OAS and Cuba..........................2 Official Optimism ......................6 between Havana and Washington is hard U.S. and United Nations...............2 New Labor Code .......................6 to top. The latest development (see page Hurricane Impact ......................7 8) is a proposal to establish a blue-ribbon Congress: Talk But No Action ........2 panel in the United States to review poli- Trade & Commerce Washington Report cy toward Cuba. That is all well and UK-Cuba Insurance Deal..............3 Aid Package in Trouble ...............8 good, but look who’s behind it—former New Industrial Gas Plant .............3 Cuban Policy Review? ................8 U.S. State Department officials, who in Tourism Pace On Track ...............4 their day promoted the status quo as the Agriculture best of all options. Hotel Target ............................4 Food Supply ............................9 The Mad Hatter would feel right at Oil Production..........................4 The Environment home. Sugar Exports ..........................5 Port of Nuevitas ......................10 —Juan M. Vasquez Bus Sale ................................5 Mining Nickel and Nickel Prices ...........12 INTERNATIONAL OAS to Cuba: Still No No Change in Policy as Congress Adjourns The 105th Congress will end without any new legislation concerning Cuba. The 28th General Assembly of the The Cuban issue came up repeatedly during the session, but despite efforts by both Organization of American States ended with supporters and opponents of existing policy to change the law, every move was blocked. no resolution of the issue involving Cuban Food and Medicine Exemption. An attempt by Americans for Humanitarian Trade With re-entry into the regional body. A Mexican Cuba, a coalition of organizations headed by the U.S. Chamber of Commerce, to lift sanc- proposal to create a group of “friendly coun- tions on the sale of food and medicine to Cuba died in negotiations over a $56 billion tries” to find ways to return Cuba to the OAS appropriations bill that sets the 1999 budget for the Department of Agriculture. won no support and was left off the agenda. When the Senate considered the bill in July, Sen. Chris Dodd, Democrat of Connecticut, “The ball is now in the Cubans’ court,” won support for an amendment that would have allowed the unrestricted sale of medicine said foreign Minister Miguel Angel Bureli and food to nations subject to unilateral U.S. economic sanctions. But Dodd’s amendment Rivas of Venezuela. “We all expressed our was restricted by another sponsored by Sen. Robert Torricelli, Democrat of New Jersey, desire that this issue be resolved soon and that banned U.S. food and medical sales to nations considered by the State Department to that the OAS be the one to establish the be terrorist states—such as Cuba. communication that will allow us to end this An effort to strip Torricelli’s amendment from a final bill failed in a Sept. 28 conference old quarrel one day and have total harmony aimed at reconciling the differences between the House and Senate bills. in our fraternal group.” House conference members Jose Serrano of New York and David Obey of Wisconsin, Luiz Felipe Lampreia, foreign minister of both Democrats, argued that U.S. farmers would benefit from new markets if Dodd’s Brazil, said the issue should be a matter of amendment, without Torricelli’s restrictions, was allowed to become law. priority for the OAS, but he added that Cuba But the chairman of the House Appropriations Committee, Rep. Bob Livingston, must be willing to hold a dialogue on issues Republican of Louisiana, opposed scrapping Torricelli’s amendment. House Speaker of democracy. Newt Gingrich had also weighed in with his support for Torricelli’s restrictions. “Unfortunately,” he added, “it seems that In a July 29 letter, Gingrich urged Rep. Joe Skeen, Republican of New Mexico, the there is no willingness to hold such a dia- chairman of the House subcommittee controlling the bill, to keep the Torricelli amend- logue.” ment in a final version in order to ensure that there is no weakening of U.S. sanctions on A spokesman for the Cuban Foreign trade with Cuba. Ministry, Alejandro Gonzalez, said Cuba “It is unclear how long the Castro regime will survive, and at the time of the inevitable would never accept conditions to regain transition phase in Cuba, our embargo will constitute critical leverage for the achievement membership in the OAS. of our principal policy objective in Cuba: free elections for the Cuban people and the estab- lishment of a democratic government,” Gingrich wrote. UN to U.S.: Still No The debate over the Dodd and Torricelli amendments ended when House conference members voted 7-6 to strip both from the final bill. Senate conferees decided not to chal- For the seventh consecutive year, and by lenge the House position. The result: no change in the U.S. trade embargo against Cuba. the most overwhelming margin yet, allies "Solidaridad." A rival proposal by Sen. Jesse Helms, the Republican chairman of the and enemies of the United States voted for a Senate Foreign Relations Committee, fared no better. non-binding resolution demanding an end to Helms’ “Solidaridad” bill aimed to greatly expand a provision in the Helms-Burton Act the trade embargo against Cuba. that funds “democracy-building efforts” in Cuba, including support for dissidents on the The vote in the General Assembly was 157 island. Solidaridad would raise funding of Sec. 109 of Helms-Burton from the current to 2, with 12 abstentions. Only Israel joined level of $3 million to up to $25 million and amend it to include humanitarian assistance to the United States in voting against the “victims of political repression, and their families.” motion. Helms’ new legislation also placed new restrictions on the sending of private donations Last year, U.S. diplomats had somehow of humanitarian aid to Cuba and proposed moving operations of the U.S. government’s managed to persuade the Central Asian “TV Marti” from South Florida to the U.S. Navy base in Guantanamo, where broadcasts nation of Uzbekistan, a former Soviet repub- would supposedly be harder to jam.
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