End of Fidel's Rule Sparks New Interest in Settling Old U.S. Claims Against Cuba Cuba's Permuta System May Disappear If Refo

Vol. 16, No. 6 June 2008

www.cubanews.com

In the News End of Fidel’s rule sparks new interest in settling old U.S. claims against Cuba Cellphones to Cuba As Obama, McCain battle for presidency, BY ANA RADELAT cans who had lost property or other assets to Castro’s nationalizations in the early 1960s. Bush says he’ll let exiles send cellphones idel Castro’s fade from power and the ex- pectations there may soon be momentum In 2005, the FCSC reopened the claims pro- to those they left behind ...... Page 3 Ftoward normalizing relations between gram, received five new claims and certified Washington and Havana has awakened new in- two. One of them belonged to the giant Star- CANF upsets exiles terest in decades-old American claims against wood hotel group, for $51.1 million. the Cuban government. Most Cuba claims, which are now valued at Study on where USAID funds end up coin- But Mauricio Tamargo, head of the U.S. For- about $6 billion, have been dormant for decades. cides with scandal in Havana ...... Page 4 eign Claims Settlement Commission (FCSC), is While Cuba has settled all of its property claims warning holders of certified claims against Cuba with other nations, frosty U.S.-Cuba relations Newsmakers to be wary of offers to buy them. have prevented any serious talks about settling “We’ve received a lot of inquiries by certified the American claims. Mavis Anderson, senior associate at Latin claimants who have been approached about the U.S. laws prohibit negotiations with a Cuban government that has not carried out substantial America Working Group, fights the Cuba possibility of selling their claims,” Tamargo told CubaNews. “But the purpose is unclear.” economic and political reforms. embargo on Capitol Hill ...... Page 6 The FCSC is the federal agency with authori- Also blocking any settlement are nearly $190 ty to settle disputes over American property billion in counter-claims proposed by Cuba for Exploring Nipe Bay seized in Cuba and other countries. In its first what it says is the economic harm caused by the Cuba claim program, held between 1966 and 46-year-old trade embargo. Holgúin province’s forgotten ports of 1972, the agency certified 5,911 claims of Ameri- See Claims, page 2 Antila, Felton and Nicaro ...... Page 8 Illiquid debt Cuba’s permuta system may disappear Investors debate relative merits of buying defaulted Cuban debt ...... Page 11 if reforms let people sell homes legally Business briefs BY DAVID ADAMS cials enact a reform that until now has only been alk down almost any street in Havana, hinted at by Raúl Castro’s administration: giving Sherritt to expand electricity plant; Cuba and it’s easy to spot the cheap hand- people the right to sell their homes. It would provide a source of taxable income for the gov- hopes to revive India trade...... Page 12 Wpainted cardboard signs saying “Se Per- muta,” meaning “home for swap.” ernment, and its effect on the cash-starved pop- When Cubans want to move, these are the ulace would be just as profound. Fidel’s secrets words they use. The “for sale” sign familiar to Since about 90% of Cubans hold title to their Ex-CIA analyst Brian Latell wonders what Americans is banned; after all, you can’t sell homes, said Antonio Zamora, a Miami attorney and expert on Cuban property issues, “Over- will become of the Castro archives once what you aren’t allowed to own. So a family look- ing for an apartment with an extra bedroom for night, the government could hand them an Fidel is gone ...... Page 14 a new baby might swap with an older couple asset with capital value.” whose children have moved out. Run largely on Gladys Jane said she had been looking for a Brothers in Arms word of mouth, the permuta is typical of the year with mounting desperation to swap her elaborate schemes Cubans have developed to small, one-bedroom apartment and her 81-year- New documentary chronicles Cuba’s mil- work within the country’s socialist strictures. old mother’s apartment for a larger place where itary role in Africa ...... Page 15 “It may sound odd, but it works,” said Gladys they could live together along with her son. Jane, 60, hunting for a house swap the other day Her mother recently had undergone cancer surgery and could no longer climb the stairs to CubaNews (ISSN 1073-7715) is published monthly on the Prado, a shady street on the edge of the by Luxner News Inc. © 2008. All rights reserved. historic colonial district that serves as Havana’s her second-floor apartment. Subscriptions: $429 for one year, $800 for two years. unofficial permuta market. On the Prado, Jane stopped by to talk to Jesús For editorial inquires, please call (301) 452-1105 But this peculiarly Cuban tradition — ineffici- Valdes, a corredor — the closest thing Cuba has or send an e-mail to: [email protected]. ent and often corrupt — could disappear if offi- See Permuta, page 3 2 CubaNews ❖ June 2008 nal and Colgate-Palmolive (see box below). The Creighton group proposed the estab- — FROM PAGE 1 Claims The largest single claim, for $267.6 million, lishment of a tribunal with a minimum of nine Despite the impasse, Tamargo said his is held by Cuban Electric Co., while the No. 2 members — one-third from the United States, agency began to receive calls from Cuba claim is that of ITT Corp., for $130.7 million. one-third from Cuba and the remaining third claimants last summer and that the inquiries But in an unusual twist, that claim includes elected through an agreement by the other are increasing. He said most of the claimants members — to resolve outstanding property who contacted his agency have sizeable TOP 50 CERTIFIED CLAIMS* disputes between the United States and a suc- claims, and some of them said they had been cessor government in Cuba. The tribunal offered payments for their claims. COMPANY VALUE would have the authority to reassess the value But Tamargo declined to identify the 1. Cuban Electric Co. $267.6 of the claims and pay off the smaller ones. claimants. He also wouldn’t divulge the identi- 2. ITT Corp. 130.7 Larger U.S. claimants could chose to re- ties of individuals who have contacted the 3. North American Sugar Industries 97.4 ceive payments or swap their claim for devel- FCSC about investing in a Cuba claim. 4. Moa Bay Mining Co. 88.3 opment rights, tax credits, rights in Cuban Tamargo is advising prospective investors 5. United Fruit Sugar Co. 85.1 government-owned property or other incen- tives to investment. that federal law prohibits a new owner from 6. West Indies Sugar Corp. 84.9 being compensated for more than what was “Claimants are going to be a lot better off 7. American Sugar Co. 81.0 looking forward than looking back,” said Bor- paid for the claim should there be a settle- 8. Standard Oil Co. 71.6 ment between Cuba and the United States. chers. He also suggests that the value of these “Buyers may not know about the anti-spec- 9. Francisco Sugar Co. 58.5 decades-old claims be reassessed. ulation clause,” he said. People who are con- 10. Starwood Hotels 51.1 Borchers said he attempted to clandestine- sidering buying a claim should be aware there 11. Texaco Inc. 50.1 ly research four of the larger claims during a is a restriction.” 12. Manati Sugar Co. 48.6 trip to Cuba and found it difficult because 13. Bangor Punta Corp. 39.2 FCSC certifications were vague in the descrip- CLARINBRIDGE BUYS SIBONEY OIL CLAIM 14. Nicaro Nickel Co. 33.0 tion and location of claims. The FCSC’s Tam- The clause apparently didn’t deter one com- 15. Coca-Cola Co. 27.5 argo declined to comment on the report. pany from purchasing a claim. In December, 16. Lone Star Cement Corp. 24.9 The Creighton group also proposed estab- Nevada-based Clarinbridge LLC purchased a 17. New Tuinucu Sugar Co. Inc. 23.3 lishing a similar tribunal to settle Cuban- claim from the Siboney Corp. for its oil explo- 18. Colgate-Palmolive Co. 14.5 American claims. The claims of exiles who ration rights in Cuba. Siboney, which sells 19. Braga Brothers Inc. 12.6 lost property were not certified because they weren’t U.S. citizens at the time of Castro’s educational software, once owned the assets 20. Boise Cascade Corp. 11.7 of Siboney Caribbean Petroleum, which is a expropriations. In addition, international law 21. American Brands Inc. 11.7 does not give the exile claims any weight. certified U.S. claimant. 22. West India Co. 11.5 According to filings with the Securities and But the Creighton report said “if the prop- 23. Atlantic Richfield Co. 10.2 erty claims of the Cuban-American exile com- Exchange Commission, the Siboney claim 24. Burrus Mills Inc. 9.8 was valued at nearly $2.5 million. But it was munity are left unresolved, their political and 25. Pan-American Life Insurance Co. 9.7 economic power could be turned against sta- sold for a little more than $1 million. 26. United States Rubber Co. Ltd. 9.5 Clarinbridge LLC could not be reached for bilizing a new government in Cuba, much to 27. William A. Powe 9.5 the detriment not only of the island, but also comment. But SEC records listed Mark 28. Estate of Sumner Pingree 9.3 to potentially fruitful U.S.-Cuba relations.” Entwistle, the former Canadian ambassador 29. F.W. Woolworth Co. 9.2 to Cuba, as manager of the company. CREIGHTON STUDY WON’T MAKE CUBA HAPPY Miami-based attorney Timothy Ashby said 30. Havana Docks Corp. 9.2 he’s been a consultant to individuals who want 31. Inter-Continental Hotels Corp. 8.9 Robert Muse, a Washington–based lawyer to buy or sell Cuba claims, but he declined to 32. Continental Can Co. Inc. 8.9 with experience in international claims law, identify his clients. 33. John L. Loeb 8.6 said “the report has been greeted with deri- He said some who are seeking to purchase 34. Owens Illinois Inc. 8.0 sion” by lawyers with expertise in the field. Cuban claims may “want to aggregate them so 35. Brothers of Order of Hermits 7.9 “The Creighton report attempts to engineer they have some stature” in any future talks. 36. Firestone Tire & Rubber Co. 7.6 U.S. support for claims that have no value Ashby also said he served as a consultant to 37. Helen A. Claflin under international law,” he said, adding that 7.5 the Cuban government may someday seek to a group of law and political science professors 38. Chase Manhattan Bank 7.5 at Creighton University in Omaha, Neb., who settle exile claims. “But that settlement must 39. Carl Marks & Co. Inc. 7.3 have the consent of the Cuban people. It can’t have proposed an alternative to the settlement 40. IBM World Trade Corp. 6.4 of Cuba claims by the FCSC. be dictated by Washington.” 41. Baragua Industrial Corp. of NY 6.2 President Raúl Castro, who took over from USAID-FUNDED REPORT OFFERS ADVICE 42. Swift & Co. 5.9 his ailing brother in February, indicated he’d 43. First National Bank of Boston 5.9 be open to overtures from a new U.S. admin- The Creighton report was conducted with a 44. General Electric Co. 5.9 istration. But negotiations with Raúl would $750,000 grant from a U.S. Agency for Inter- 45. Estate of Sumner Pingree 5.8 require changes in U.S. law that prohibit national Development program established by 46. Libby, McNeill & Libby 5.7 negotiations with either Castro brother. the 1996 Helms-Burton Act. With a recent appointment, Bush indicated It concluded that settlement of U.S. claims 47. Texas Petroleum Co. 5.1 48. Goodyear Tire & Rubber Co. 5.1 he’s still listening to exile concerns about the will result in meager compensation, especially settlement of claims. if American business interests press Washing- 49. Proctor & Gamble Co. 5.0 50. Olga Lengyel 4.9 On May 21, the Senate unanimously con- ton to seek a quick deal to eliminate an imped- firmed Bush’s choice to fill an opening on the iment to their ability to invest in the island. *Value is at time of certification and does not include interest. FCSC. Like agency head Tamargo, the new More than 80% of the total amount in claims commissioner is a Cuban exile: Ralph Martí- involve commercial land or debts. Valued at $80 million the old phone company was awar- nez, brother of Sen. Mel Martínez (R-FL). $1.8 billion when they were first certified, the ded as trustees for its minority shareholders. “Ralph is an accomplished attorney with 30 claims are today worth nearly $7 billion when Under U.S. law, the embargo that keeps years experience in handling claims,” said the aggregate interest is factored in. U.S. businesses out of Cuba can’t be lifted anti-embargo senator. “Having escaped com- Some of the largest U.S. claimants include without a settlement of the certified claims. munist Cuba, I’m confident he has the neces- Fortune 500 firms like Boise Cascade, Coca- “A nickel on the dollar is widely optimistic,” sary perspective on foreign claims and the Cola Co., Borden Foods, Navistar Internatio- said Patrick Borchers, co-author of the study. issues involved in reaching fair settlement.” ❑ June 2008 ❖ CubaNews 3 POLITICS Bush allows cellphones to Cuba; critics say not enough BY LARRY LUXNER (D-IL) and Sen. John McCain (R-AZ), spoke to McCain, meanwhile, defends the Bush eteran Cuba-watchers and critics of U.S. Cuban-American exile groups in Miami. administration’s policy and has given no indi- policy are calling President Bush’s May Obama promised to lift all restrictions on fam- cation he’d change anything if he wins the V21 announcement that he’ll let Cuban- ily travel and remittances to Cuba if elected. See Cellphones, page 10 American exiles send cellphones to the island a “missed opportunity” for improved relations with the new government of Raúl Castro. While no one is criticizing the decision itself

to allow cellphones as one of the permitted LARRY LUXNER items exiles may now send in their gift parcels to Cuba, the move was instantly ridiculed in Miami and Havana for its lack of imagination. “It’s sort of our own version of a ration card,” said Dr. Julia Sweig, director for Latin American studies at the Council on Foreign Relations, in a conference call. “It’s unfortu- nate and ungenerous to see such a tiny meas- ure by the Bush administration.” Sarah Stephens, director of the Washington- based Center for Democracy in the Americas, said the White House announcement accom- plishes virtually nothing. “At a time when we’re seeing real reforms in Cuba, President Bush is wrong to dismiss these changes as a cruel joke. He can do a lot more than sending cellphones to Cuba. He can send Americans to Cuba.” The announcement came as both conten- ders for the presidency, Sen. Barack Obama Reader points to a recent Miami Herald front-page story on McCain, Obama clashing over Cuba policy.

kitchen with chickens out back. ney who visits Cuba often and has studied its Permuta — FROM PAGE 1 “I’m very interested,” she told Redondo, property laws. “If you start down that path, corredores giving him the addresses of her home and her people will start accumulating property. It’s to real estate agents. The charge human nature, and they won’t allow that.” five pesos (20 cents) for each lead on a poten- mother’s. “I have a telephone. Come by and take a look,” she added, before taking off to Zamora still expects to see greater flexibili- tial swap. Valdes has dog-eared notebooks full tell her mother the news that a permuta might ty in the housing market, including loosening of addresses and phone numbers for each of be in the works. restrictions on home improvements and rent- the city’s neighborhoods. Her mother did not fully share her excite- ing rooms. Many Cubans already take mat- For a home swap to be approved by the fed- ment. “I don’t want to move. I like it here,” ters into their own hands, he said. eral Housing Institute, the homes must be of said Barbara Morales, resting her legs on a “Cubans are very ingenious,” said Zamora, “equal value” — a near impossibility. But the stool in her tiny, rickety apartment on a major describing cases of Cuban exiles in Miami system is flexible, taking account of such fac- avenue in the centrally located Cerro district. who send cash to relatives in Cuba for exten- tors as an existing telephone line, and permit- “But I have to do it because of the stairs.” sions and extra floors that get built in secret. ting one party to make repairs and improve- “Real-estate reform could help relieve some ments to meet the other person’s needs. FARCICAL AND FRUSTRATING of the economic problems,” said Oscar No money is supposed to change hands, The frustrations of the permuta are so in- Espinosa Chepe, an economist who has spent but frequently does. “Sometimes to get what grained in Cuban culture that it serves as a time in jail for criticizing the government. you want, you make a payment that the gov- reliable plot device. A Cuban comedy in the “It would create an almost interminable list ernment can’t see,” said Valdes, 78, grinning. 1980s titled “Se Permuta” featured a farcically of new possibilities,” he said, such as the cre- José Guerra, another corredor, said the sys- complex permuta chain of six separate links ation of private construction firms, as well as tem forces people to break the law. “That’s that falls apart at the last moment. collateral for bank loans. why there are so many lies and frauds. If they And one of the most popular sites on the Despite her faith in the system, Gladys let you pay legally, it wouldn’t be necessary.” Web — a relative novelty in a country with Jane’s house swap never materialized. “They never called or came by,” she said. A HOT TIP few computers — is www.sepermuta.com, where people can search for swaps online. Then her mother died almost two weeks Without resorting to the corredores, Jane The site has an inventory of 21,000 proper- ago. “Her heart gave out,” said Jane. “The found a potential swap. Someone else looking ties, with photographs and comments from medicine was too much for her.” to move gave her the address of Nestor Red- But Jane says she still wants to move. “I am happy customers. The operator of the website ❑ ondo, 66, a retired stevedore. says he created it to help others after going going back to the Prado on Monday.” Later that afternoon Jane visited Redondo’s through his own permuta. Not state sanc- David Adams, a frequent visitor to Cuba, is home, which he shares with his daughter and tioned, he says he hopes one day he might be Latin American correspondent for the St. Peters- her family in the Central Havana district. She able to sell ads, now against the law. burg Times, which gave us permission to repro- liked the spacious, albeit typically rundown A fully commercial real-estate market re- duce this article. Adams, who’s based in Miami, house with three bedrooms, large patio and mains far off, says Zamora, the Miami attor- can be reached at [email protected]. 4 CubaNews ❖ June 2008 POLITICS CANF report on USAID money has South Florida buzzing BY DOMINGO AMUCHASTEGUI were funneling cash and resources to Cuban getting cash from the Miami-based Funda- hen the Miami Herald published a dissidents. Statements from dissidents them- ción Rescate Jurídica, thought they said they story May 15 about the Cuban Amer- selves tended to support CANF’s allegations didn’t know Alvarez was behind the group. Wican National Foundation and its stu- that up to 83% of all taxpayer funds earmarked Pollán said she received $2,400 from Roque dy on where USAID funds go (weeks before, for Cuba programs stay in South Florida (see and split it with eight other members of her CubaNews published a similar article), it was CubaNews, May 2008, page 1) — and that dissident group. Pollán, a retired teacher, told like a bombshell in the midst of Calle Ocho. very little cash actually ends up in Cuba. reporters she never asked Roque where the money came from. Beginning at 5 a.m. that day and until mid- Cuban authorities then procedeed to dis- close, through its official media, evidence that “We aren’t political. We are fighting for the night, every Spanish-language news program freedom of our husbands, a sacred right of all or political talk show on Miami’s radio dial Michael Parmly, head of the U.S. Interests Section in Havana, had acted as a go-between families,” she told AP. “We accept support was dedicated to this topic. from anyone.” From Frank Calzón (Center for a Free Cu- for at least one payment from a group headed by Santiago Alvarez, a Cuban-American jailed Meanwhile, other dissident leaders like ba) and Orlando Gutiérrez (Directorio Demo- Vladimiro Roca and Elizardo Sánchez claimed cratico) to Martin Pérez (Cuban Liberty Coun- in the United States on weapons charges, to Cuban dissident Martha Beatriz Roque. that this funding is something completely cil), exiles ganged up on CANF and threw legitimate. The very few dissidents who are mud in every direction, trying to prove that DISSIDENTS ADMIT TAKING MONEY not connected with the U.S. Interests Section the USAID’s millions were well-spent and that like Manuel Cuesta Morúa (Arco Progresista) most of it went to support dissent in Cuba. Parmly was “a facilitator of payments, con- said he had no doubt that Alvarez favors vio- CANF was accused of serving the Cuban tacts and remittances from a terrorist based lence and, consequently, “has failed to play government and echoing Granma’s slanders in Miami to counter-revolutionaries in Cuba,” any role in Cuban politics.” against dissidents and Miami’s many anti-Cas- Josefina Vidal of the Cuban Foreign Ministry On the other hand, the State Department tro groups. CANF executives answered back said at a May 20 news conference. She — while complaining about Cuba’s decision to with their long-standing platform in favor of described his behavior as “scandalous” and deal with this problem publicly and not regime change in Cuba and, in particular called for the U.S. government to investigate through diplomatic channels — admitted that emphasizing their substantial support to the illegal activities at USINT-Havana. such funding “for humanitarian purposes in Ladies in White since that group’s creation. Both Martha Beatríz Roque (Asamblea support of Cuban political prisoners” will con- Anti-Castro organizations in Miami came para la Promoción de la Sociedad Civil) and tinue to take place. up with all sorts of examples of how they Laura Pollán (Damas en Blanco) admitted This clearly contradicts a raft of major legal and judicial U.S. policies ever since passage of the 1935 Neutrality Act, which was severely enforced against exiled Cuban fighters in IRI: 62% of Cubans want democracy Miami who had battled the Batista regime. Even now, the GAO is still trying to clarify espite Raúl Castro’s recent limited ■ Low salaries and high cost of living re- the whereabouts of $65.4 million handed out economic reforms, more than 60% of main the toughest problems facing Cuba, over 10 years to so-called anti-Castro organi- DCubans are still looking for change, according to 43% of respondents. zations in Miami and Washington. especially in the form of elections, free ■ Just over 61% of Cubans would vote speech and multi-party politics. against Communist Party candidates if EU PAYING CLOSE ATTENTION TO PARMLY CASE This is among the findings of a survey Cuba were to hold free and fair elections. Cuba’s move took considerable advantage released Jun. 5 by the Washington-based ■ When asked if Cubans should have of the accusations and rumbling among exiles International Republican Institute (IRI). uncensored access to the Internet, 83.5% of — not only by publicizing the case but by “While the new Castro regime is working Cubans say yes. While Raúl Castro recent- adding the two most irritating factors: the role hard to project an image of change, these ly eased restrictions for computer purchas- of USINT-Havana and its association with Res- survey results indicate that the Cuban peo- es, the Cuban government still prohibits cate Jurídico and Santiago Alvarez. ple are unconvinced, still looking for free- Internet access to its citizens. By throwing in such connections and the dom, a better quality of life, and new lead- Cuba also restricts opinion surveys with- evidence to prove it, Cuban authorities not ers,” said Lorne Craner, president of IRI, out government authorization and supervi- only further undermine the lack of credibility which calls itself a nonprofit group “dedi- sion. For that reason, IRI utilized an origi- and legitimacy among most dissidents, but cated to advancing democracy worldwide.” nal methodology for its survey, utilizing in- highlight their dependency on U.S. policy and According to the poll — conducted on the most aggressive Miami exile groups. the island between Mar. 14 and Apr. 12 — terviewers from other Latin American countries to discreetly engage Cubans in Cuba’s message is also aimed at the Euro- 62% of Cubans support a change to a demo- pean Union and its debates over human cratic system, while 60% say they would public areas with their questionnaires. rights, dissident activities and the Cuban gov- vote for someone other than Raúl if free A total of 587 Cuban adults were asked ernment’s reaction to EU policies. elections were held today. An overwhelm- questions ranging from perspectives on the So far, the Castro regime hasn’t arrested ing 82% show strong support for transition economy to the performance of the current any of the dissidents involved, but it clearly to a free-market economy. Castro regime. might if these activities persist. Other significant findings from the poll: The survey has a margin of error of +/-4% European observers and other Cuba-watch- ■ At least 82% of Cubans do not believe and a 95% level of confidence. The survey ers know that the dissidents (and their back- things are going well in the country. This was conducted in all 14 Cuban provinces. ers in Miami and Washington) represent very figure has grown by almost 10% since IRI Details: Lisa Gates, Press Secretary, IRI, little, if nothing, in the overall equation. conducted its last survey in October 2007. 1225 Eye St. NW, Suite #700, Washington, They know that the real sources of change ■ Nearly 48% of Cubans think things are DC 20006. Tel: (202) 572-1546. Fax: (202) aren’t the dissidents themselves but lie within going badly or very badly. 408-9462. Email: [email protected]. the Cuban system itself, its organizations and the legal institutions of its own civil society. ❑ June 2008 ❖ CubaNews 5 POLITICAL BRIEFS JONATHAN FARRAR NAMED TO HEAD USINT-HAVANA In their own words … The top U.S. diplomat in Cuba, Michael Parmly, “This is a day of pride, as we honor the culture and history of a noble nation. will be replaced by Jonathan D. Farrar, a high- It is a day of sorrow, as we reflect on the continued oppression of the Cuban ranking official at the State Department’s Bureau people. Most of all, this is a day of hope. We see a day coming when Cubans of Democracy, Human Rights and Labor. will have the freedom of which they have dreamed for centuries — the free- The Miami Herald reported May 15 that Farrar, dom that is the eternal birthright of all mankind.” now acting assistant secretary at the bureau, has — President Bush, in a May 22 speech to supporters of his hardline Cuba policy. broad experience in Latin America, with previous postings at the U.S. embassies in Mexico, Belize, Paraguay and Uruguay. “Tyranny will not forever endure, and as president, I will not passively await the day when Cuba’s people enjoy the blessings of freedom and democracy. The There was no immediate word on Parmly’s next embargo must stay in place until basic elements of democratic society are met.” assignment after completing a normal three-year Sen. John McCain (R-AZ) posting in Havana. Parmly was assigned to head — , campaigning May 20 in South Florida to a cheering the U.S. Interests Section in Havana in 2005, audience of Cuban-American exiles. replacing James Cason, who had earned a reputa- tion in his three years in Cuba as an aggresive “It is time to pursue direct diplomacy, with friend and foe alike, without pre- critic of the Castro regime. conditions. There will be careful preparation. I would be willing to lead that Yet after the initial honeymoon, Parmly too diplomacy at a time and place of my choosing, but only when we have an earned Fidel’s wrath; at one point, the old revolu- opportunity to advance the interests of the United States.” tionary called Parmly a “little gangster.” — Sen. Barack Obama (D-IL), in a May 22 speech to the Cuban American National Farrar was picked to replace Parmly because of Foundation. In his address, Obama added: “Never in my lifetime have the Cuban his experience with human rights issues, said U.S. people known true freedom or democracy. I’ll keep the embargo.” officials who asked to remain anonymous. Among other things, he helped write the 2005- “Candidate Obama’s speech can be translated into a formula of hunger for 06 edition of the State Department’s annual report the nation, the remittances as charity and visits to Cuba as propaganda for con- on human rights around the world, “Supporting sumerism and the unsustainable way of life that supports it.” Human Rights and Democracy.” — Fidel Castro, in an essay published May 28 in Cuba’s Communist Party news- Farrar served as deputy assistant secretary in paper Granma and titled “The Empire’s Cynical Policy.” the Bureau of International Narcotics and Law Enforcement Affairs from 2004 to 2005 and was “If the president were serious about wanting to communicate with the Cuban chief of staff to the undersecretary of state for people, he would remove travel and trade restrictions that prevent Americans global affairs from 2002 to 2004. from doing just that.” A graduate of both California State Polytechnic — Jake Colvin, director of USA*Engage, a coalition of businesses, farm groups University-Pomona and the Industrial College of and trade associations, on Bush’s decision to allow cellphones to be sent to Cuba. the Armed Forces, Farrar joined the State Department in 1980 as an economics officer. “The hopes awakened by the Cuban revolution have not been realized. Cuba OFFICIAL RULES OUT INTERNET FOR THE MASSES is today a poorer country, with huge inequalities between the lives of the nomenclature, tourists and the average Cuban.” On May 12, one month after Raúl Castro author- — Peruvian author Mario Vargas Llosa, one of Latin America’s most influential ized the sale of computers, Cuba’s Ministry of In- writers, in a May 9 interview with French news agency AFP in New York. formation Technology and Communications ruled out opening up the Internet to average Cubans in “The so-called reforms or changes that have taken place in Cuba are some- the short term. what cynical. We also believe they are targeted for international consumption. Deputy Minister Ramón Linares Torres told Spa- It is surprising that the world would rather talk about the fact that Cubans can nish news agency EFE that Raúl’s reforms have now visit their own hotels and not that political prisoners are starving in jail.” unleashed expectations about “what’s going to — U.S. Commerce Secretary Carlos Gutiérrez, during a Jun. 4 visit to Kiev, Ukraine. happen with the development of computers in Cuba.” Due to connection problems and restric- tions, he said, “one cannot think that access to the “What’s important is where the money is spent. Martha and her collabora- Internet will be made either cheaper or easier.” tors use these funds for strictly pacifist means. Those who make the donation do not give the orders. Martha takes orders from nobody.” “The lack of resources for making the service broader will continue to exist,” he added, noting — Prominent Cuban dissident Elizardo Sánchez, accusing the Castro regime on that Cuba still has only 10 phone lines for every May 22 of waging a “very real dirty war” against the pro-democracy movement. 100 inhabitants. According to the ITU, Cuba has the lowest Internet usage in Latin America, with “This is your chance. If you must talk about Cuba, please spare us the conde- only 0.9% of its people connected to the Web. scending rhetoric. Then forget Havana and try addressing our more immediate Cuba officially connected itself officially to the problems here. Yes, even Cuban-Americans worry about this country. Surprise Internet in 1996, but the government has restrict- us. We may just end up surprising you.” ed access of individuals to the Internet because, it — Miami Herald columnist Ana Menendez, in a May 21 column expressing hope says, the U.S. economic embargo limits the condi- that the presidential candidates would offer new ideas on what to do about Cuba. tions and quality of the connection. “Many homes still don’t have a telephone and “Vesco was running from the law because he stole money. When you’re a re- the local computer platform would not support an volutionary, you’re in exile and you continue your struggle as best as you can.” avalanche of connections. Also there are no finan- — Charlie Hill, 58, who lives in a crumbling Havana apartment. Hill fled cial resources to develop it,” Linares Torres said at to Cuba in 1972 after allegedly killing a New Mexico state trooper. an event inaugurating World Telecommunications Day and the Information Society in Havana. 6 CubaNews ❖ June 2008 NEWSMAKERS LAWG’s Mavis Anderson fights embargo on Capitol Hill BY LARRY LUXNER were carried back to Cuba illegally.” was a downside to TSRA,” she said. rom a modest little row house on Capi- LAWG receives about $1 million in funding “We regularly passed travel amendments in tol Hill, four blocks east of Washington’s annually, roughly 80% of which comes from the House and Senate. Our options were lim- F Union Station. Mavis Anderson battles foundations and the remaining 20% from pri- ited, so it had to be funding restrictions on to change U.S. policy on Cuba. vate donors. Of that total, only $130,000 goes appropriations bills, but it was a strong indi- Anderson is one of five full-time staffers at specifically for LAWG’s Cuba programs, cation of the will of Congress, and we won the Latin America Working Group (LAWG), a nonprofit coalition that’s been in existence in one form or another since 1983. “We grew out of the Central American wars

and were initially called the Central America LARRY LUXNER Working Group, but 11 or 12 years ago we changed to LAWG and expanded our man- date to work beyond Central America,” she told CubaNews last month. LAWG, which has Section 501(c)(4) status, maintains a separate Section 501(c)(3) entity known as the LAWG Education Fund. The NGO — which focuses on Colombia, Cuba, Central America, Mexico and Bolivia — con- sists of 60-odd national associations, grass- roots organizations and religious groups. These includes all the mainline Protestant churches, as well as a Jewish action center and some Catholic orders. “We work within our own coalition, but we’re also part of a looser coalition of organi- zations in D.C., and we work with offices on the Hill, on both sides of the aisle. This loose coalition is very broad and it includes farm bureaus and chambers of commerce, as well as organizations that support civil disobedi- ence,” she explained. “Among all the organizations that are part A watercolor of Old Havana’s Capitolio decorates the office of LAWG senior associate Mavis Anderson. of our coalition, there’s a total consensus that the embargo should end — not just the travel which are supervised by Anderson and fund- bipartisan votes. But nothing ever got to the ban, not just family travel, not just opening up ed largely by two donors: the Christopher Re- president’s desk because we had an intransi- food and medicine sales, but the whole em- ynolds Foundation and the Arca Foundation. gent administration. Frankly, were people to bargo. It is inhumane, immoral and wrong.” Despite the money, Anderson admits she’s vote in a dark room, these bills would pass frustrated with how little her group has been overwhelmingly.” MEMORIES OF MANOLO able to accomplish. Decorating the conference room where “The last eight years under the Bush CRITICS CALL ORGANIZATION ‘USELESS’ CubaNews interviewed Anderson last month administration have been very difficult. It’s Not everybody on Capitol Hill is enamored are several Cuba travel posters as well as a hard to know how to work in a way that’ll of LAWG — and some of its fiercest critics framed black-and-white photograph of Man- make a difference,” she told CubaNews, add- come from those who sympathize with its olo Costela, an 82-year-old retired Miami ing that things were hard even before the stated objective of ending the embargo. handyman who was among 22 Cuban exiles Bush years. “Our Cuba policy has been bipar- “They’re useless,” said one Washington showcased in the 2007 book “Love, Loss and tisan. Even under Clinton it wasn’t a picnic. analyst who follows foreign trade issues. “No Longing: The Impact of U.S. Travel Policy on The only administration that ever made any offense, but they’re just cheerleaders for the Cuban-American Families.” positive moves towards Cuba was that of anti-embargo people. I never found them to Some 3,500 copies of the book were printed Jimmy Carter, who ended the travel ban.” be on the cutting edge of anything.” by the LAWG Education Fund and the Wash- CHANGING POLICY AN UPHILL BATTLE Another Cuba expert told CubaNews he’d ington Office on Latin America (WOLA). The like to say something nice about LAWG, but 48-page document attempts to show how fam- Anderson said there was hope that under it’s hard because the group lacks credibility. ilies have been split apart and individuals’ Clinton, things would be different, but the “They haven’t accomplished anything in all lives thrown into chaos as a result of the new embargo continued, and in fact was codified these years,” said the expert, who asked not U.S. travel restrictions (see box, page 9). into law in 1996 as the Helms-Burton Act fol- to be named. “If you consider where the em- “Every member of Congress got a copy,” lowing Cuba’s intentional shootdown of four bargo is today, we’re in arguably worse shape said Anderson, noting sadly that Manolo — Brothers to the Rescue planes. than before. And the embargo is more bipar- who was suffering from cancer and an inop- “In 2000, TSRA [Trade Sanctions Reform tisan than it’s ever been.” erable aortic aneurism at the time of publica- and Export Enhancement Act] passed, which The same source told us that LAWG regu- tion — has since passed away. His wish was to allowed for agricultural sales to Cuba. Unfor- larly “cranks up its grassroots network” and be buried on the island of his birth. tunately, behind closed doors the Republican urges supporters to lobby congressional offi- “I saw him in the hospital,” she said. “He leadership forced the bill’s sponsors to agree died without returning to Cuba, but his ashes to a codification of travel categories, which See LAWG, page 7 June 2008 ❖ CubaNews 7 she was program director for the school’s ‘DISAPPOINTED’ WITH OBAMA SPEECH LAWG — FROM PAGE 6 international travel seminars. Anderson hasn’t been back to the island for ces, but that it displays a total lack of under- “We took citizens around the world, includ- over three years, mainly because tougher standing of the embargo’s structural aspects. ing a lot of Latin American countries, south- laws imposed by the Bush administration in “Usually, when you’re lobbying, you ask for ern Africa and the Caribbean. We also took 2004 prevent her from going down there with support for something you believe has a real delegations to southeast Asia,” she said. “The educational and church groups. chance of success. The more you ask for sup- college’s Center for Global Education is fabu- Of course, that could change if Sen. Barack port without success, the more resistant both lous. Their focus is education, and they clear- Obama (D-IL) is elected president in Novem- staffers and members of Congress will ly present all sides of the issue.” ber. The Democratic nominee has vowed to become to future requests for support.” Anderson has traveled to Cuba 12 times, overturn those aspects of the embargo most He added: “It’s going to be very difficult in usually staying at the Martin Luther King Jr. hated by Cuban-Americans, namely, restric- the absence of any organized PAC to promote Memorial Center, which is affiliated with a tions on family travel and remittances. real embargo reform in Washington. What Baptist church in Havana’s Marianao district. Whether the “people-to-people” exchanges allowed under the Clinton administration would be reinstated remains to be seen. Sen. John McCain of Arizona, the Republi- “Among all the organizations that are part of our coalition, there’s can nominee, has made no secret of his dis- taste for the Castro regime, insisting he won’t a total consensus that the embargo should end — not just the travel talk to any government official in Havana as ban, not just family travel, not just opening up food and medicine long as either Fidel or Raúl remain in power. “People who supposedly know McCain say sales, but the whole embargo. It is inhumane, immoral and wrong.” he’d be harsher on Cuba than Bush has been. He could close the interests section. He could — MAVIS ANDERSON, SENIOR ASSOCIATE, LATIN AMERICA WORKING GROUP break off relations,” Anderson warned. “If McCain were rational, he would make moves to negotiate with and normalize rela- influence does a grassroots organization real- During her visits, Anderson has spoken tions with Cuba,” she added. “He was a POW ly have in a foreign policy issue of this type? with all kinds of Cubans, including dissidents. and was tortured by the Vietnamese, and yet “Historically, foreign trade policy is a factor “The ones I met are good people who also he favored opening up diplomatic relations of corporate America and its representative have good aspirations for their country,” said with Vietnam.” institutions,” he said. “They’re the ones who Anderson. But she insists that U.S. taxpayers Even so, Anderson is “very disappointed” determine the outcomes in trade agreements, shouldn’t be asked to bankroll their anti- with Obama’s May 20 speech to the Cuban not grassroots groups like LAWG.” Castro activities. American National Foundation in Miami. “Were we to turn the tables and look at a “He said he’d maintain the embargo, and I FROM BUTTERFIELD TO WASHINGTON group of people in this country who were bent don’t think he needed to say that,” she lamen- ted. “That smacks of Bush rhetoric.” Anderson grew up in the southwestern on overthrowing the government and were allegedly being funded by outside sources, Anderson also doesn’t think much of the Minnesota town of Butterfield and graduated White House’s announcement the same day from St. Olaf College, a Lutheran school in we’d have real trouble with that,” she said. Northfield, Minn. Before joining LAWG, she “And frankly, right now the dissidents aren’t that it would let exiles send mobile phones to spent 20 years at Augsburg College, where very much of a force in Cuba.” See LAWG, page 10 LAWG book examines impact of restrictions on family travel to Cuba he project began in early 2005, in response to concerns about Others aren’t well-known at all, like Juan, a 47-year-old artist orig- the mental health implications of new U.S. restrictions gov- inally from Pinar del Río. In 1992, Juan chose exile in the U.S. rather T erning travel to Cuba by Cuban-American exiles. than the prospect of jail in Cuba for his role as a dissident artist. But one year and 53 in-depth interviews later, “Now the United States is violating my rights,” Jeanne Parr Lemkau and David L. Strug decided said Juan, who lives in Yellow Springs, Ohio. “I to develop a photography exhibit, which eventual- have no choice but to become a dissident again.” ly became a book. Also portrayed in the book is 73-year-old María, “Love, Loss and Longing: The Impact of U.S. a retired housewife living in Miami who’s forbid- Travel Policy on Cuban-American Families” is a den from visiting her two children or six grand- moving 48-page tribute to individuals whose lives children in Cuba because she never legally adopt- have been uprooted by the new travel restrictions, ed her kids. which took effect in June 2004. “Going to Cuba was my life,” she said. “Now “Following a semi-structured format, we asked they’ve taken that from me.” about details of family history and relationships, Published by Latin America Working Group and and explored the psychological and economic Washington Office on Latin America, “Love, Loss impact of the restrictions on the interviewees and and Longing” contains dozens of photos by Juan E. their family members,” the authors wrote. “We González López and the late Nestor Hernández Jr. were stunned by the range and intensity of the per- It also features an introduction by Wayne Smith, sonal stories that emerged.” former chief of the U.S. Interests Section in Hav- Although they’re identified only by first names, ana, as well as endorsements by Sen. Michael Enzi some of the people portrayed in the book’s pages (R-WY) and Reps. Charlie Rangel (D-NY) and Jeff are well-known — including Sgt. Carlos Lazo, the decorated Iraq Flake (R-AZ). Copies are available for $11 each. War veteran who was denied permission to visit his two young sons Details: Mavis Anderson, Latin America Working Group, 424 C St. in Cuba, and Silvia Wilhelm, executive director of the Cuban- NE, Washington, DC 20002-5818. Tel: (202) 546-7010. Fax: (202) American Commission on Family Rights. 543-7647. Email: [email protected]. URL: www.lawg.org. 8 CubaNews ❖ June 2008 INFRASTRUCTURE Nipe Bay: The forgotten ports of Antilla, Felton & Nicaro BY OUR HAVANA CORRESPONDENT This is the sixth in a series of articles on Cuba’s 6,067 feet. It can handle bagged sugar and eveloped in the early 20th century as a major ports. The first installment (published in general cargo in vessels up to 18,000 tons. result of the sugar industry’s expansion January 2008) analyzed Mariel; the second looked Sugar transport plus the normal traffic of at Cienfuegos, the third studied Matanzas, the supplies for this industry and local population Dto the east — and the mining of iron and fourth Nuevitas and the fifth Santiago de Cuba. nickel ore — the ports of Antilla, Felton and were the main drive for the foundation of the ports and towns of Antilla (10,200 inhabitants) Nicaro in Holguín province are located in one largest natural harbor in Cuba, is wide and of Cuba’s best-endowed regions. and Guatemala (6,800) inside Nipe Bay, and as deep, 16 miles long by 10 miles across, while well as Macabí (2,000), in the bay of Banes. Despite its fairly productive soils, relatively the adjacent bays of Banes and Levisa- abundant water resources and extraordinary The last two were shut down decades ago Cabonico are about 20 sq miles each. and their production routinely sent by rail or mineral wealth, however, the area has lagged Nipe is flanked by marine terraces carved behind other, not-so-lucky harbors. Perhaps barges to Antilla. on coralline limestone to the north and low- In its heyday, in the mid to late 1980s, An- this is a consequence of its relative distance lands and marshes to the south and west. from the main trade routes criss-crossing the tilla dispatched annually an average 180,000 The entrance channel in Nipe is wide and tons of sugar, or 2.5% of Cuba’s total produc- Caribbean and the Atlantic. deep, about three nautical miles long by half a Three superb ports give this region an tion, from four nearby sugar mills. This made mile wide at the narrowest point, with depths it a secondary sugar port. Currently, only two incredible potential for the development of ranging from 50 to over 100 feet, enough to trade. The 46-sq-mile bay of Nipe, by far the of those mills remain active, with output of allow safe operations of large vessels. less than 65,000 tons per harvest. Because of the amplitude of the bay, tidal Since 2002 the Nicaragua (formerly Boston) currents can be strong at the access channel. mill, capable of grinding 8,000 tons of sugar- In contrast, the bays of Banes and Levisa- cane per day, produce only molasses, while Cabonico have narrow and twisted entrance Guatemala (Preston) with 13,000 tons of channels — although they’re quite scenic as grinding capacity, has been dismantled. they are hemmed in by marine terraces cov- ered by dense forests — demanding careful FELTON: ELECTRIC POWER GENERATION maneuvers to enter or depart the harbors. The port of Felton has two berthing places with a top draft of 53 feet and a total length of ANTILLA: THE SUGAR HUB 380 feet. It handles general cargo, machinery Located in the northwest corner of Nipe and fuels for the Lidio Ramón Pérez thermo- Bay, Antilla has four berthing places with a electric plant located nearby. A system of pipe- maximum draft of 22 feet and a total length of lines connects the port with the fuel tank farm and the power plant. The Lidio Ramón Pérez plant supplies about 15% of Cuba’s electricity needs. It has two 250-mega- watt units finished in 1996 and 2000 with Slovak technology. Consuming 46 tons June 2008 ❖ CubaNews 9

tion towers, conveyor belts and other key parts. Current high nickel prices have offset talk of an inevitable closure of this old plant. In all its years of activity, this facility has produced close to one million tons of nickel oxide, generating an impressive amount of residues customarily dumped into Levisa Bay. The tailing deposits form a solid flat ground of 1.8 sq miles west of the factory, consisting mainly of iron ore mixed with residues of nickel, cobalt, chrome and other minerals. Mining and metallurgical activities have caused significant envi- ronmental damage around the Nipe and Levisa-Cabonico bays. of fuel per hour, it’s one of the largest and most efficient Concentrations of nickel, cobalt, iron and manganese in sedi- power plants on the island. It was built in this area close ments have been recorded up to hundreds of times higher than enough to supply power without significant transmission loss- the zone baseline levels. es to the nickel facilities of northeastern Cuba. Offshore oil spills have been reported near Antilla and Guate- mala, while analysts point to severe pollution in Cajimaya Bay. NICARO: A NICKEL VETERAN Pollution from agricultural sources, intense in the recent past, has Nicaro has only one active berth with a maximum draft of declined thanks to the collapse in the use of pesticides and fertil- 29 feet and a total length of 1,484 feet. It serves as the ship- izers, and the abandonment of nearby sugarcane plantations. ❑ ping port for the René Ramos Latour nickel plant located nearby. Nicaro handles ships up to 20,000 tons. A second berth similar to this has been recently shut down. Cuba Archive founder Armando Lago dies The René Ramos Latour nickel plant, Cuba’s oldest, started CubaNews joins in mourning the death of Dr. Armando Lago, operations in 1943 with a caron or ammonium lixiviation tech- who passed away Jun. 8 in Miami. Lago, 69, was a Harvard grad- nology, the most extensively used worldwide. With annual uate who co-authored the 1991 study, “The Politics of Psychiatry capacity of 23,000 tons, produces nickel oxide or sinter of in Revolutionary Cuba.” He established the Cuba Archive proj- nickel plus cobalt, using the lateritic deposits of nearby hills. ect, which documents the cost in lives of the Cuban revolution, In an effort to extend its life and improve efficiency, author- and was vice-president of the Free Society Project until his death. ities have invested in the renovation of drying kilns, lixivia- 10 CubaNews ❖ June 2008 significantly boost levels of travel to Cuba LAWG — FROM PAGE 7 wherever possible. Said a conference flyer: Cellphones — FROM PAGE 3 their families in Cuba. “Putting pressure on OFAC by increasing “If President Bush wants to facilitate com- license applications, optimizing use of exist- presidency in November. Neither candidate munications regarding Cuba, then he ought ing licenses and general licenses and gener- advocates ending the embargo outright, or to communicate with them himself,” she said. ating broad interest in travel will help us com- even lifting the travel ban for tourists to Cuba. “Right now, our government is irrelevant. municate just how much U.S. citizens want to Rep. Jeff Flake, who like McCain is a Repub- Cuban-Americans are already sending cell- lican from Arizona, said he wouldn’t expect engage with Cuba.” the two men to do otherwise. phones to Cuba, so now he says you can do it The event concluded with a concert by legally. Big deal.” “It’s a bit like asking a presidential candi- Cuban jazz pianist Chuchito Valdes and lively date to go to Iowa and reject all farm subsi- On the positive side, she said, “Obama has reception at the Cuban Interests Section (see dies,” he quipped. “As soon as a candidate rec- outlined a definite change, in that he would CubaNews, May 2008, page 6). ognizes that the demographics have shifted, immediately end restrictions on family travel Even so, Anderson insists that LAWG has then you’re likely to see somebody break out.” and remittances, and he would explore diplo- no formal relationship at all with Cuba’s Flake, a staunch advocate of improved rela- macy with Cuba’s leaders.” Washington mission or any of its officials. tions with Cuba despite the White House line, But Anderson clarified that it’s not LAWG’s says he sees Bush’s cellphone announcement goal to change Cuba. as “another missed opportunity.” “It’s to focus on U.S. policy which we feel is The lawmaker says it’s “simply wrong” that wrong-headed, destructive and inhumane,” Cuban-Americans may now ship cellphones to she said. “We want the policy to end. We are their families on the island — but not clothing, nonpartisan. If there’s a Republican who soap, seeds or fishing equipment. would end it, then I would favor that Repub- “It’s notable that President Bush spoke to lican. It appears that Obama is the one who one of the dissidents, Martha Beatríz Roque, would make a difference.” who asked him to lift travel and remittance LAWG WATCHING SOUTH FLORIDA RACES TOO restrictions,” he said. “So if we’re expressing solidarity with the dissidents, we ought to lis- The presidential election isn’t the only race ten to what they’re asking for.” LAWG is keeping its eyes on. In South Added Peters: “Clearly, the message is that Florida, the staunchly Republican Díaz-Balart the Bush administration is willing to talk to brothers — Lincoln and Mario — are being dissidents, but not to listen to them.” challenged for their congressional seats by Democrats Raúl Martínez and Joe García. A FOREIGN MINISTER CALLS BUSH ‘RIDICULOUS’ third GOP incumbent and Cuban-American In Havana, the reaction to Bush’s speech exile, Ileana Ros-Lehtinen, faces opposition was predictable. from challenger Annette Taddeo. “It was a decadent show, a speech irrelevant “We think it’s interesting that there’s a new and cynical, an act of ridiculous propaganda,” climate in South Florida that allows candi- Cuban Foreign Minister Felipe Perez Roque dates such as Martínez and García, who pub- said in a press conference without specifically licly say they support family travel to Cuba,” addressing the issue of cellphones. “Let him noted Anderson. retire and leave the presidency.” “They say that because the climate has LAWG staffers work out of this Washington house. In any event, noted Peters, in real-world changed. The Cuban-American exile commu- terms the president’s declaration won’t make nity is not a monolith, but has many different “They come to some of our meetings, but much of a difference. “Any Cuban-American views. A lot of the early exiles have changed they have no input whatsoever in our work, who wishes to send a cellphone to a relative in their opinions about what’s best for Cuba,” strategies or plans. They have no knowledge Cuba can do that anyway,” he said. “But the she continued. “This confluence of change in of our work either,” she said. “We’re indepen- fact is that people from Miami have done so the exile community, and of leadership here dent of them, and they are independent of us.” for some time, and were forced to violate the and in Havana, leads us to believe there may Anderson has met several times with Vicki law in order to care for their families.” be an opportunity to inject some rationality Huddleston, chief of the U.S. Interests Sec- What particularly disturbs Peters is Bush’s into our Cuba policy.” tion in Havana during the Clinton and early flippant attitude towards the economic and part of the Bush administration, and once social reforms enacted since Raúl Castro took LAWG: CUBA CONSULTATION 2008 A SUCCESS with Huddleston’s replacement, James Cason. over the presidency of Cuba in February. To that end, LAWG on Apr. 23 held its Cuba She also has a close working relationship “Raúl has been in office just a few months. Consultation 2008 — an annual event that for with Wayne Smith, a frequent and vocal critic There’s no doubt the changes he’s made do the last 10 years has drawn about 80 partici- of American policy in Cuba who was appoint- not affect the fundamental issues of human pants. This year, however, 155 people showed ed in 1976 by Jimmy Carter to head the U.S. rights in Cuba. But it’s wrong to trivialize and up, said Anderson — “our usual Cuba mission in Havana, but quit in protest shortly downplay them the way President Bush does. activists, business executives, church and after Ronald Reagan took office. Smith is now “In Cuba, people are noticing the changes. human-rights people and academics. We were a senior fellow at the Center for International There’s a clear political impact. For someone very pleasantly surprised at the response.” Policy, a Washington think tank. who now waits for a bus 10 minutes instead of The all-day seminar, held at Washington’s Anderson said USINT-Havana would be far an hour, that’s real, not cosmetic. Farmers can Lutheran Church of the Reformation, fea- more effective if its staffers were more now cultivate more land and make more tured Anderson and 20 other speakers includ- engaged with ordinary Cubans. money, and that’s a real change.” ing Phil Peters of the Lexington Institute; Pat- “I think they’re isolated, and that they learn Furthermore, he said, “Raúl has created a rick Doherty of the New America Foundation; about Cuba from other diplomatic missions,” lot of expectations, but for the first time, Geoff Thale of WOLA; Christopher Baker, said the veteran activist. Cubans have a sense that their government is author of Moon Handbooks Cuba; Sarah “Here I really do agree with Obama, in that listening, and addressing some of their griev- Stephens of the Center for Democracy in the talking with nations with whom we have prob- ances. That puts Raúl in a much stronger posi- Americas; Bob Guild of Marazul Charters and lems can only be helpful. So let’s talk to the tion. It also makes the Bush administration’s Ellen Bernstein of IFCO/Pastors for Peace. Cubans. We might find we have more in com- characterization that the Cuban government Speakers repeatedly stressed the need to mon with them than we think.” ❑ is on its last legs particularly absurd.” ❑ June 2008 ❖ CubaNews 11 BANKING & FINANCE Investors debate relative merits of Cuban illiquid debt BY VITO ECHEVARRÍA term investment opportunity. changes. So for Cuba, it really is a case of buy n the May issue of CubaNews, we profiled “Cuba is indeed very interesting on that when the opportunity arises.” the London boutique trading firm Exotix scale, but as an investor you need patience London multimillionaire Nicholas Berry ILtd., which specializes in selling esoteric and we would need more than a few reforms did exactly that. By 2005, according to the illiquid debt instruments from politically cha- from Raúl Castro before we see a structural Financial Times, he managed to buy as much otic markets like Cuba, North Korea and Iraq. change and real price movements in Cuban as 148 million euro in Cuban debt instru- Following publication of that article, cer- debt instruments,” said Bugge. ments. Berry, expressing the belief that Cuba “will be a dynamic economy one day,” started tain investors came forward to provide their CASTRO-ERA OR PRE-CASTRO DEBT? views on the viability of buying defaulted investing in Cuban debt in 1999. Cuban debt generated the Castro regime According to one observer of this market, Bugge notes that Exotix — the only bou- going as far back as the late 1980s. the largest portion of defaulted illiquid Cuban tique broker handling Castro-era Cuban debt One holder of an undisclosed amount of debt is with export credit agencies (ECAs) — does have competitors at the institutional such instruments is Danish investment firm from Spain (Cesce) and France (Coface), rep- banking level. Global Evolution A/S. Morten Bugge, the resenting over $2 billion in such debt. “Standard Bank of South Africa is quite company’s managing partner and chief invest- Meanwhile, other ECAs in Canada, Japan involved in Cuba as well,” he says, “but the ment officer, has bought such instruments and Germany have renegotiated with Cuba overseas branch in London is doing all the from Exotix and various investment banks. and those obligations are no longer in default. structuring and trading of Cuban debt. “Cuba is a strategic long-term investment Likewise, in April 2008, South Africa waived Standard Bank had done a couple of transac- like most of our other Frontier Markets $117 million in debt Cuba owed that country’s tions last year called ‘Humming Bird’ that investments,” Bugge told us. “Frontier Export Credit Insurance Corp. for the 1996 were linked to different Cuban corporations. Markets are usually relatively small and illiq- shipment of diesel engines and pesticides. More broadly, a number of investment uid (less tradeable), even by Emerging “There is quite a lot of old Cuban debt, but banks are gearing up on Frontier Markets, Markets standards, and information is gener- it is very well held,” says Bugge. “Many of but most have a U.S. link and are therefore ally less available than in other markets, but those holders have held the claims for years not active in Cuba, Sudan or North Korea.” they represent untapped economic potential and, having waited this long, will be loathe to Another school of thought totally discounts that looks very compelling as a strategic long- sell just when we are getting nearer to these the notion that Castro-era debt will gain value in the foreseeable future. If anything, say some, pre-Castro debt instruments are a safer bet. These investors are counting on U.S.-led negotiations with a future Cuban government to recoup the value of their securities. One such individual is Sven Lorenz, a resi- dent of the Channel Islands who currently holds an undisclosed amount of Cuban bonds from pre-revolutionary days. “The pre-revolution instruments are, in my humble opinion, much more worthwhile than anything issued after Castro came to power,” Bank seeks end to dual-currency system says Lorenz. “Uncle Sam is more likely to pro- uba’s Central Bank is urging the gov- worth slightly more than a dollar. tect the interests of people whose property ernment to gradually unify the island’s The state controls over 90% of Cuba’s econ- rights were damaged as a result of the revolu- Ctwo parallel currencies and cut back on omy, paying the typical government worker a tion than to help bail out investors who lent “in-discriminate” subsidies, according to an money to a regime that clearly no one should regular peso salary worth about $19.50 a have lent money to in the first place.” internal report obtained by AP on May 10. month. It also operates upscale grocery and The document, which was distributed to department stores catering to tourists and for- CRITICS CALL BONDS ‘HIGHLY SPECULATIVE’ Cuban Communist Party members, says a eigners that charge in convertible pesos. single, strong peso would boost productivity Lorenz, who in September 2006 wrote a But because many products aren’t sold in report called “Looking for Sugar in Cuban and morale in Cuba. The island now has two regular pesos, Cubans paid in that currency separate currencies: one for locals, and one Debt,” said that a reclusive New York invest- must buy toilet paper, cooking oil and other ment bank called Carl Marks and Co. has designed principally for foreigners. items at more costly convertible-peso stores. Party members were instructed to discuss snatched up a sizeable chunk of defaulted pre- As a result, many blame their low buying Castro era bonds as far back as 1994. the bank’s recommendations between April power on the double-currency system, fueling and June, according to Associated Press cor- The ironically named firm (now known as support for a single currency “as a magic and Carl Marks Management Co.) did not return respondent Andrea Rodríguez. definitive solution,” the Central Bank said. The report, a rare glimpse into the back any of our phone messages or emails looking rooms of one of the world’s last communist But to suddenly boost the peso against its for information, but it is cited in the U.S. economies, says Cuba would be more effi- convertible counterpart, the report warned, Foreign Claims Settlement Commission’s list cient if its currencies were streamlined. But it would drive Cubans to buy expensive, import- of top 50 certified U.S. claimants against the warns that the transition should be gradual, ed goods at drastically reduced prices leaving Castro regime, with a claim valued at $7.3 mil- with incremental revaluations to narrow the state stores with little income to restock lion (see box, page 2 of this issue). gap between the two pesos over time. shelves and sparking shortages. Lorenz notes that Cuban bonds dated 1937 Rumors have circulated that Raúl Castro, About 60% of Cubans have access to at least (whose repayment date was 1977) and 1950 who replaced his brother as president in Feb- some convertible pesos, says AP, either by (with a repayment date of 1980), with respec- ruary, is planning to strengthen the ordinary exchanging foreign currency from relatives in tive yearly interest rates of 4.5% and 4%, were peso, which is now worth about 21 per U.S. the U.S., or by working for foreign firms or in the ones most worrisome for investors, be- dollar. The convertible peso is currently jobs that let them collect tips from tourists. ❑ See Debt, page 14 12 CubaNews ❖ June 2008 BUSINESS BRIEFS Antonio Gonzales Fernández, Cuban repre- OFAC PULLS PLUG ON CUBA-ORIENTED WEBSITE sentative to the Cuba-Vietnam Entrepreneu- Spain’s Madrid Público reported May 13 rial Committee, said “cooperation can go VIETNAM TO MAKE CUBA TRADE A PRIORITY that the U.S. government has closed down a beyond the scope of trading,” adding that the number of Internet web sites operating from The Cuba-Vietnam Entrepreneurial Council two sides should implement R&D activities Spain and belonging to British businessman says it will use all available resources to fur- and joint ventures. Steve Marshall. ther boost bilateral commercial relations. “The export of services from Cuba to According to the report, last October, the Doan Duy Khuong, vice-president of the Vietnam also shows potential,” he said, stress- Treasury Department’s Office of Foreign Vietnamese Chamber of Commerce, told the ing the importance of completing financial Assets Control ordered the U.S. server eNom VNA news agency that bilateral trade came to conditions, suggesting banks provide suitable to close down those sites. Marshall’s Internet $272.4 million in 2007, a 45% jump over 2006. credit terms and interest rates to make pay- addresses, in the main tourist guides, have Import-export activity by the two nations ments easier for companies. been included on a blacklist for having com- are focused on products such as coal, rice, Details: Representación Comercial de Viet- mercial links with Cuba. medicine, footwear, garments and textiles, nam, Calle 16, #514, e/5ta y 7ma, Miramar, Marshall took his case to the relevant agen- computers, electronic products and house- La Habana. Tel: +53 7 204-15255. Fax: +53 7 cies of the European Union but got nowhere, hold electric appliances. 204-5333. Email: [email protected]. despite the fact he's a British citizen operating “The full potential of cooperative relations, from an EU country with European clients. however, has yet to be realized,” said Khuong. STATE TO SPEND $10m ON PUBLIC LIGHTING The EU Commission justified its inability to Companies in the two communist countries Cuba will invest about $10 million over the act by pointing out that the company owning have found the great distance between them next three years for the rehabilitation of pub- the sites is based in the British Virgin Islands. has been a handicap. lic lighting, said Antonio Pias, director of the The EU did advise Marshall to present a The Vietnamese government is committed National Electric Union of Cuba (UNE). claim for damages via his Spanish company, to exporting 400,000 metric tons of rice to The objective is to install 182,000 new lights or ask the British government to intercede Cuba this year. It will also supply computer throughout Cuba, Pias told Granma Apr. 11. with Washington on his behalf so that he can transfer his website to a European server. components, fans and light bulbs. Firms will He announced that 7,100 lights have already also boost cooperation in biotechnology. been installed under the program. The new NEW RADIO STATION DEBUTS IN CAMAGÜEY Cuba’s Heber Biotec Co. has signed a $2.5 sodium lights emit 100 to 150 watts and have million product-exchanging contract with a life span of at least five years; they are being The May 15 launch of Radio Esmeralda, in Vietnam’s Ha Noi Pharmaceuticals Co. imported from China at a cost of $72 each. Camagüey province, brings to 93 the number of radio stations in Cuba. Guillermo Pavon, deputy president of the Cuban Institute of Radio and Television, said Cuba seeks to revive trade with India his agency will carry out a gradual investment program in existing stations to provide them 19-member Cuban delegation visited energy-efficient ones, the requirement is with modern, highly effective equipment. India in mid-May with a lofty objec- huge. The focus on housing and trans- The 250-watt Radio Esmeralda covers the A tive: to revive bilateral trade ties portation means it requires tires, spare municipality of Esmeralda, joining another which have been in a slump ever since the parts and engines. nine radio stations in Camagüey province. disintegration of the Soviet Union. “We are coming with a huge shopping Cuba has currently 69 local radio stations, “Though Cuba is small, when we buy, list,” said Ramírez. “If the prices are OK the smallest of which is Radio Cocodrilo, in we buy big,” said Havana’s ambassador in and financial facilities are in place, there is southwestern Isla de la Juventud, which is New Delhi, Miguel Angel Ramírez Ramos, no reason why we will not buy from India. beamed to 500 inhabitants. in an interview with The Hindu. In the In future, we would like to see India ex- 1980s, he said, bilateral relations were porting rice. We hope the ban on exports ‘PETROCASAS’ TO HELP EASE HOUSING CRUNCH strong, with annual bilateral trade hovering would not be a permanent situation.” Cuba plans to build 14,000 plastic homes a around $300 million. Cuba says it’s particularly interested in year to help ease a national housing shortage, But the 1990s saw the demise of the the Nano — the world’s cheapest car. At Reuters reported May 20, citing the govern- USSR, the economic crises in Cuba and a only $2,500, the Nano is a bare-bones basic ment news agency Prensa Latina. change of policy in India. Then there were car measuring 10 feet long by 5 feet wide. Set to begin in September, the program will outstanding debts. All these factors have It accommodates four large adults comfort- use polyvinyl chloride from a petrochemical now been overcome, with 2006 bilateral ably and gets 50 mpg, but has only one facility to be built with Venezuelan aid at a trade coming to $27 million. windshield wiper, no radio, no airbags, no refinery in Cienfuegos. Ramírez said the visit of Cuba’s deputy storage space and no air-conditioning. “Cuba will produce more than 14,000 hous- foreign trade minister, Eduardo Escandell “Next week we will meet Tata Motors es annually with polyvinyl chloride, thanks to Amador, has resulted in India canceling and Essar Group executives [in Mumbai] a binational project with Venezuela,” project Cuba’s outstanding debt, which opens up to explore business opportunities. Indian director Julian Alonso told the news agency. possibilities for new lines of credit. cars like the Nano and Maruti have a Cuba is said to need about 500,000 homes to China has extended soft loans to Cuba potential market in Cuba,” said Ramírez, provide sufficient housing for its people. and is today the top provider of locomo- adding that there’s big potential for Tata Alonso said the machinery to produce the tives, light vehicles and buses. trucks and buses on the island. so-called “petrocasas” will arrive in Cuba “India has high-quality products and Cuba also seeks to cater to India’s ener- sometime in June and should be operating by there will be a lot of opportunities, now gy needs by allocating two Gulf of Mexico September, with a daily production of 40 that all issues have been solved,” said exploration blocks to ONGC Videsh, and homes measuring 753 sq feet each. Ramírez. “,We buy $3 billion worth of prod- three elsewhere in joint ventures. But it Venezuela, led by Cuban ally President ucts from China. If we bought only 10% of wants Indian energy companies to be more Hugo Chávez, provides about 92,000 barrels that from India, bilateral trade would again enterprising. “The first cows get clear of oil per day to Cuba on favorable terms and reach $300 million, though we will have to water, the others get mud,” said Ramos. has financed the modernization of the Soviet- work hard at that.” Details: Embajada de India, Calle 21, era Cienfuegos refinery, about 240 km south- With Cuba embarking on a nationwide #202, esq. a K, Vedado, La Habana. Tel: east of Havana. drive to replace all electrical devices with +53 7 833-3169. Fax: +53 7 833-3287. In December, Chávez donated 100 of the plastic houses to Cuba and promised to invest June 2008 ❖ CubaNews 13 $1.3 billion for a petrochemical complex. The $247 million combined-cycle expansion sea fishing industry” and overcome the “insuf- In mid-April, Chávez said his government will come online by late 2010 or early 2011. ficient supply”of fish in the country, Spanish approved funding to build an iron and nickel The expansion will increase Sherritt’s capac- news agency EFE reported in April. foundry with Cuba. ity in Cuba to 526 megawatts. The Canadian López said Cuba is currently developing two Cuba is among the world’s largest produc- firm operates in Cuba’s power sector through strategies to solve the problem of a lack of ers of nickel, which is used to make stainless JV Energas, which includes Cuba’s respective seafood products. steel. Venezuela and Cuba signed an agree- oil and power companies Cupet and UNE. Last December, during Venezuelan ment last year to produce stainless steel using Energas also operates plants Varadero and President Hugo Chávez’s visit to Cuba for the Cuban nickel — a project slated to involve Puerto Escondido, which along with Boca de 4th Petrocaribe Summit, the two countries some $1.1 billion in joint investment. Jaruco currently total 376 megawatts. signed 14 accords, including three for the “We have large iron reserves, Cuba has Power production reached 597 gigawatt- constitution of new mixed companies — large nickel reserves,” Chávez said in a tele- hours in January-March, up 22.6% from the chemicals and petrochemicals; agriculture vised address Apr. 11, adding that Venezuela same period last year due to a 65-megawatt and food distribution, and fishing. has not made the necessary alliances to expansion in mid-2007. “We are working to constitute a mixed com- process the metals domestically. Power production in the second quarter of pany that will have the chance to use the Chávez didn’t say how much the foundry 2008 is expected to reach 565 gigawatt-hours, experience our people have,” said López. will cost, or where it would be located. Chambers said. Output this year is projected As a second strategy, Lopez mentioned the to total 2,400 gigawatt-hours. INDONESIA HONORS FIDEL, CHE ON STAMPS development of fish farming, which in 2007 Details: Michael Minnes, Investor Relations closed with a production record of more than Indonesia will issue stamps depicting revo- Analyst, Sherritt International, 1133 Yonge 22,000 tons of lobsters, shrimp, tilapia, catfish, lutionaries Fidel Castro and Che Guevara to Street, 5th Floor, Toronto, Ont. M4T 2Y7, grass carp and other species. commemorate a visit made by its founding Canada. Tel: (416) 935-2420. Fax: (416) 935- He also said that last year, the island invest- president to Cuba 48 years ago. 2283. Email: [email protected]. ed more than $30 million in imports while col- One edition of the stamps, issued in late lecting $90 million from lobster exports alone. May, shows Fidel holding a traditional Indo- VENEZUELA TO HELP DEVELOP CUBAN FISHERIES In 2006, European Union member countries nesian dagger as his visiting counterpart, Cuba’s minister of fisheries, Alfredo López, bought more than 5,000 tons of seafood prod- Sukarno, looked on during a meeting in 1960 said the island will soon set up a joint venture ucts from Cuba, including 1,400 of farmed in Havana. with Venezuela in order to “revive the deep- shrimp and some 1,200 of wild shrimp. Another features Argentine-born Che, who in 1956 joined Castro to overthrow the Batista regime, sitting next to Sukarno. “This is part of the celebration of good rela- CANF unhappy with CubaNews coverage tions between Indonesia and Cuba,” said a intent of the law. That was and continues to spokesman at the country’s directorate gener- ecently, your Washington correspon- be our purpose in preparing the report and al of post and telecommunications in Jakarta. dent, Ana Radelat, interviewed me re- R garding the Cuban American National offering recommendations. BRAZIL: WE WANT TO BE CUBA’S NO. 1 PARTNER Foundation’s report, “Findings and Recom- Further bolstering my disappointment mendations on the Most Effective Use of with your newsletter is the article “Bush’s Brazil’s foreign minister, Celso Luiz Nunes USAID-Cuba Funds Authorized by Section last spring offensive and why it’s doomed to Amorim, said May 31 that his country wants 109(a) of the Cuban Liberty and Democratic fail” (CubaNews, May 2008, page 4). to be Cuba’s No. 1 trading partner, and he Solidarity Act of 1996” (see CubaNews, May Your political analyst, Domingo Amuchas- announced new projects between both coun- 2008, page 1). tegui, misrepresents the valiant effort of the tries in the short term. CubaNews plays a significant role in in- Ladies in White’s public protest Apr. 21 using At the opening of a business seminar in forming readers about Cuba-related develop- some of the same slurs utilized by the Cuban Havana, Amorim said Brazil will help Cuba ments. That is why I am compelled to call with technological development, food produc- government. This is shameful and highly un- your attention to the article’s misrepresenta- becoming of a free journalistic entity. tion and the building of roads and other infra- tion of our motives for preparing the report, structure. Meanwhile, Cuban Foreign Trade The inference that the Ladies in White as well as a careless mischaracterization of took direction from Rep. Ileana Ros-Lehtinen Minister Raul de la Nuez said trade and eco- my statements. nomic relations with Brazil are at “the best and CANF is totally false. First, Yolanda My response to the question of the amount Huerga does not work for CANF — a fact moment” in history. of money CANF to Cuba did not refer to a “We count on political, economic and techni- that any responsible reporter corroborating given year but to monies sent throughout the a story would have been able to discern. cal conditions that favor the present state of several years we have been in possession of relations,” said De la Nuez, adding that in Yolanda Huerga is a former member of the an OFAC license. Furthermore, my com- Ladies in White and acts as their representa- 2007 commercial relations with Brazil reached ments were misconstrued seemingly to cre- tive in the United States. However, she was $450 million, and that trade in the first four ate a contentious positioning of CANF months of 2008 was up 58% compared to the against exile-based organizations. not present when Ros-Lehtinen placed a call year-ago period. Our opinion is not that exile groups should to Ladies in White from our office. Details: Embajada de Brasil, Lonja del Com- not receive funds, rather that the funds be Mr. Luxner, in fairness and journalistic ho- ercio #2, Habana Vieja. Tel: +53 7 866-9052. managed efficiently and spent effectively un- nesty, I request that you look into this matter Email: [email protected]. der vigilant government oversight by USAID and offer a substantive correction of the mis- and the Congress of the United States. representations included in both articles.. SHERRITT TO EXPAND THERMO ELECTRIC PLANT As the sole Cuban-American group in- — Francisco “Pepe” Hernández, Toronto-based Sherritt International expects volved in drafting and lobbying for democra- President, CANF, Miami to begin procurement of key components of a cy funding to be enacted into law since its 150-megawatt expansion at the Boca de inception in the Torricelli Bill of 1992 and Editor’s note: The CANF failed to return Jaruco thermoelectric plant in Cuba, company later in Helms-Burton, we have the responsi- the numerous phone messages we left at its CFO Dean Chambers said in a May 12 web- bility and moral right to be concerned, inves- Miami office to discuss the funds it sends to cast quoted by Business News Americas. tigate the matter, and bring attention to cor- Cuba, Ladies in White or any of the other con- Pricing for most of the major components rections that need to be made, to bring the cerns raised by Hernández in his letter to us. has been confirmed and should be finalized program in line with the original mission and CubaNews proudly stands by both stories. over the next several weeks. 14 CubaNews ❖ June 2008 POLITICAL ANALYSIS The Latell Report: Who will reveal Fidel’s secrets?

The Latell Report is a publication of the marketed as a “spoken autobiography.” feel free to abandon whatever oath of silence University of Miami’s Institute of Cuban and And furthermore, Fidel has not been she has maintained all these years? Cuban-American Studies (ICCAS) and no known since his youth to indulge in genuine Literary agents and publishers will beat a government funding has been used in its pub- introspection or self-examination, either pub- path to her door after Fidel’s death, hoping to lication. The opinions expressed herein are licly or privately. He is no more likely now, as get her into contract to draft what could be those of the author and do not necessarily he nears the end of his life, to admit serious one of the most revealing books ever written reflect the views of ICCAS, CubaNews or the errors or doubts about what he’s done, includ- about Castro, treating especially the years U.S. Agency for International Development. ing even the most heinous of his behavior. between their marriage in 1948 and the Mon- The impervious psychological barriers he cada assault five years later. BY BRIAN LATELL has constructed against any probes of his real Would Rolando Cubela, the CIA’s famous feelings and human qualities are not likely to AMLASH recruited to assassinate Fidel, feel s Fidel Castro fades into oblivion with be lowered now. he could finally reveal the truth of whatever little to do but post inconsequential Yet, with no remaining leadership responsi- his relationships actually were with the Amusings in the Cuban media, it is fair to bilities, and effectively muted by his succes- Castro brothers? Was he in fact working wonder if he might also be secretly dictating sors, Castro probably has no higher priority under the CIA’s control, or was he Fidel’s his memoirs. now than to burnish his image by boasting of double agent as many have suspected? If so, he could by now have produced an real and imagined accomplishments. With And what grotesque tales Patricio de la enormous body of autobiography with the some of his harsh economic policies already Guardia, the twin and co-conspirator of the assistance of the doting aides and researchers abandoned by his brother Raúl, Fidel has rea- executed Tony, could tell if he suddenly felt presumably around him. son to fear that even more of his legacy will be free to break his silence. Castro’s plan could be for the posthumous repudiated. publication of multiple volumes of memoirs, TO TALK OR NOT TO TALK? He knows that Khrushchev denounced Sta- and possibly for a dramatic announcement of There are many others with keys to the Cu- such a plan coinciding with the 50th anniver- lin and launched a de-Stalinization campaign in the USSR within three years of his prede- ban revolution’s most secret pathologies: sary of the revolution next January. Ramiro Valdes (twice minister of the Interior There have been no hints of anything of the cessor’s death. And in China, Deng Xiaoping also waited only three years following Mao’s and recently restored to the Politburo); the sort from Havana, but these are just the kind Moncada and Granma veteran Juan Almeida; of surprises the infirm, immobilized Fidel, death before launching his economic liberal- ization program. All the more reason for Fidel the merciless prosecutor Juan Escalona; most confined now for 22 months, would relish. of the ranking generals; the purged Carlos Soviet premier Nikita Khrushchev could be to put a priority now on getting his interpreta- tion of his career on the public record. Aldana (one of the few to have been as close a role model. His memoirs, dictated secretly to Fidel as he was to Raúl), and so many oth- after he was deposed in 1964 and later smug- THE SECRETS THEY COULD TELL gled to the West, were published in three ers like him consigned through the years to widely read volumes. Initially at least, Khrush- And there may be another, perhaps even internal exile and silence. chev was motivated by the need to vindicate more compelling reason for him to emulate Dalia Soto del Valle, Castro’s second wife himself, and like all memoirists, to put his Khrushchev’s decision to speak into the and mother of five sons with him, could at- own spin and embellishments on the record. recording machine. Anticipating and preemp- tract a huge international audience if she felt ting threats to his hegemony has been one of free some day to pen memoirs of her life with LESSONS FROM KHRUSHCHEV? the most consistent of Fidel’s leadership qual- Fidel since the 1960s. So many other Cubans, ities, beginning during his university years. in diverse walks of life, from the powerful to But despite all of their self-serving content, the servile, also have stories to tell that Fidel Khrushchev’s books were memorable be- Today he knows all too well that there are many living witnesses, in Cuba and abroad, wants kept secret, or which now he may feel cause he was introspective, sharing candid he must repudiate by preemption. observations about himself and his relation- who may feel liberated to speak and write about him after his death. And finally, we historians can only hope ships with Stalin and many others, including that Cuba’s official archives may contain valu- Castro. And equally important, Khrushchev Fidel must worry about the gruesome secrets that could be dredged up. He knows able collections that have not been systemati- bared sensitive secrets from KGB and cally purged. But if that is in fact too much to Communist Party archives. that many of the most tantalizing of the mys- teries surrounding his 60-year career could hope for — as most likely it is — perhaps one Fidel may already have revealed all he in- or more Cuban equivalents of the Russian tends to share following publication this year become fair game once he is gone. Vasili Mitrokhin may be lurking within of Fidel Castro: My Life — the product of 100 For example, will his first wife, the long-suf- Havana’s nomenclatura. hours of interviews with Ignacio Ramonet and fering and always discreet Mirta Díaz-Balart, That modest KGB archivist stole more than 25,000 pages of sensitive intelligence mentioned scenario is highly speculative. documents, secreted them at his home, and Debt — FROM PAGE 11 Saladrigas remains wary about investing in eventually got them into the hands of British cause they were never repaid by the regime. intelligence. Imagine how Fidel must worry any Cuban debt instrument, whether it was that a Cuban like Mitrokhin might have pur- Lorenz suggests that under a future capital- issued before or during Castro’s time. ist-driven but cash-strapped system in Hav- loined and safely preserved vast quantities of “It would be almost a gamble to try to place compromising intelligence records. ❑ ana, such bonds could be converted into a a value on either pre-Castro or revolutionary newer Cuban bond issue backed by nickel, oil period bonds,” Saladrigas told CubaNews. Brian Latell, distinguished Cuba analyst and or other natural resources, generating value “Continuing to drive the Cuban economy into author of the book, “After Fidel: The Inside Story to investors who bought such debt instru- of Castro’s Regime and Cuba’s Next Leader,” is a ments for pennies on the dollar. the dust, as the present U.S. policy is geared senior research associate at ICCAS. However, banker Carlos Saladrigas, chair- to do, appears to be a strategy that will result Latell served in the 1990s as the CIA’s Natio- man of Miami’s Premier American Bank and in diminishing returns for all claimants and nal Intelligence Officer for Latin America and the Cuba Study Group, says even the above- speculators in Cuban debt. ”❑ taught at Georgetown University for 25 years. June 2008 ❖ CubaNews 15 CINEMA ‘Brothers in Arms’ relives Cuba’s role in liberating Africa BY VITO ECHEVARRÍA the slave trade,” says Lewis. “While making “Initially, we were not thinking of going to n April, the Walter Reade Theater at New that movie back in 2002, I heard about the Angola, but only once I realized how central York’s Lincoln Center held its 15th Annual extraordinary story of Ronald Herboldt. In Angola was to his story, I persuaded the pro- IAfrican Film Festival, which this year was Havana, I interviewed Ronald’s wife, Martha, ducer, Lucilla Blan-kenberg, to spend the dedicated to Cuba’s involvement in Africa. and that was the start of it.” entire production fee on financing the trip One film that stood out was “Brothers in Lewis then detailed the environment that with Ronald to Angola to retrace his steps Arms” — a documentary which chronicles led to Herboldt’s decision to pursue a revolu- there. And that made the movie. the life of Ronald Herboldt, the only South tionary life in Fidel’s Cuba. “Suddenly, Ronald’s relation to history and African and, most likely the only African to “As a third-generation Cape Town resident, to his family, I should say families, made have participated in the Cuban Revolution. though of Caucasian descent, I have grown up sense,” he said. “I grew very close to Ronald. This improbable story, directed by Cape in a very much Creole town. When I arrived He was a really great guy, just a plain upright Town filmmaker Jack Lewis, kicks off with in Havana, I immediately felt at home. Havana guy with no heavy political ambitions, no Herboldt, a fellow Cape Town native of mixed- was practically the first place I have visited heavy ideology, but with a grasp of right and race (coloured) descent. In December 1958, where I felt ‘Wow, if I just met the right person wrong and injustice and inequality. I could the 21-year-old found himself aboard a South to marry, I’d stay here.’ I really felt like that. relate to him.” IDOL PICTURES

Ronald Herboldt, right, explores a Cuban village with a revolutionary veteran (above) and climbs atop a tank in Angola during a 2005 visit to Cuito Cuanavale. African merchant marine ship docked in So I thought I knew a bit of what Ronald must “Brothers in Arms” will also be screened at Cuba, when he was urged by rebels to take have felt when he encountered the Cuban Atlanta’s Pan African Film Festival this com- up arms and join Fidel Castro’s revolution. Revolution in full swing back in December ing July. In addition, Lewis is also trying to get Herboldt, who went on to make Havana his 1958, when his ship docked there. the film screened at Havana’s Latin American new home after the revolution, eventually “You will find that Havana, Cape Town, Rio Film Festival in December. The film is now became an exile from his country’s apartheid de Janeiro and many other Atlantic port cities available in DVD via the Idol Pictures website. regime. His multilingual skills (English, Afri- with roots in the slave trade share something Details: Jack Lewis, Director, Idol Pictures, kaans and Spanish) were useful to the Cu- noticeable in common. The mixed heritage, 156 Main Road, Muizenberg 7950, South bans and put him in the middle of not only the carnival, patois, attitude, architecture. I was Africa. Tel: +27 21 788-9163. Email: idol- Bay of Pigs invasion, but also in Angola dur- amazed at how part of Havana looked like [email protected]. URL: www.idol.co.za. ing the ‘70s and ‘80s, when Herboldt helped Cape Town’s famous District Six which was Cuban intelligence officers translate intercep- bulldozed in the apartheid years. I have no ted communications from Afrikaans-speaking doubt that as a 21-year-old back in 1958, Ron- SA envoy praises Cuba South African military commanders. ald felt instantly at home with the comrades South Africa’s ambassador to Cuba, Phen- Herboldt then served as a Cuban delegate he met there.” hiwe Mtintso, praised the Castro regime for to the Joint Military Monitoring Commission FILM LOOKS AT CUBA’S WAR ON APARTHEID “offering a helping hand” to her country — that oversaw South African and Cuban mili- first during the struggle against apartheid tary disengagement from southern Angola. As noted by Lewis, the film doesn’t shy and now in South Africa’s reconstruction. Herboldt, who by this time had a family in away from the political differences between Havana, returned to Cape Town in the late the fidelista Herboldt and his brother and Mtintso, quoted Apr. 25 in Juventud Rebel- 1990s to reunite with his South African rela- other Cape Town relatives who supported the de, said Cubans are passing on their knowl- tives. He applied for a pension provided by apartheid regime. These differences endured edge and skills to South Africans, mainly to the government for rebels who participated right up until his death in August 2007. the black population, so that they’ll be able in African liberation movements, but by the The film also detailed Cuba’s role in liberat- to get jobs that demand high qualifications. time he was granted that pension, Herboldt, ing Southern Africa from apartheid rule. This training, impossible during the seg- who was 70, had died. “I started to discover how much Ronald’s regationist regime, is indispensable for the CubaNews caught up with Jack Lewis at story revealed about the history of the south- country's economic growth, said Mtintso, Lincoln Center to find out what led him to ern African region,” says Lewis. “His involve- who also referred to the hundreds of South make this fascinating film. ment in Angola, his brother’s involvement in Africans studying in Cuba. The diplomat “I produced a movie called “Casa de la Mus- the South African Defense Force — the apart- added that her country strongly opposes the ica” about the links between Cape Town and heid army — all of this only started to come 45-year-old U.S. embargo against Havana. Havana as Atlantic port cities with roots in out once I was well into the film. 16 CubaNews ❖ June 2008

CALENDAR OF EVENTS CARIBBEAN UPDATE If your organization is sponsoring an upcoming event, please let our readers know! You already know what’s going in Cuba, Fax details to CubaNews at (301) 949-0065 or send e-mail to [email protected]. thanks to CubaNews. Now find out what’s happening in the rest of this diverse and Jun. 10: Author José Alvarez presents his book, “Principio y Fin del Mito Fidelista,” Casa fast-growing region. Bacardí, Coral Gables, Fla. Introduction by Dr. Juan del Aguila, political science professor at Subscribe to Caribbean UPDATE, a monthly newsletter founded in 1985. Cor- Emory University. No charge. Details: Institute for Cuban and Cuban-American Studies, porate and government executives, as well University of Miami, PO Box 248174, Miami, FL 33124-3010. Tel: (305) 284-2822. Fax: as scholars and journalists, depend on this (305) 284-4875. E-mail: [email protected]. URL: www.miami.edu/iccas/. publication for its insightful, timely cover- age of the 30-plus nations and territories of Jun. 11-12: Caribbean Investment Forum 2008, Hyatt Regency, Port of Spain, Trinidad. Co- the Caribbean and Central America. sponsored by Euromoney, LatinFinance and Caribbean-Central American Action. No charge; When you receive your first issue, you have two options: (a) pay the accompany- by invitation only. Details: Matthew Perks, Conference Director, Euromoney. Tel: (845) 440- ing invoice and your subscription will be 7800. Email: [email protected]. URL: www.euromoneyconferences.com/events/. processed; (b) if you’re not satisfied, just write “cancel” on the invoice and return it. Jun. 15: Cubiche performs live at North Shore Open Space Park, 81st Street & Collins Ave., There is no further obligation on your part. Miami Beach. “FUNDarte, in conjunction with the City of Miami Beach, presents the most The cost of a subscription to Caribbean UPDATE is $281 per year. A special rate of underground, cutting-edge and newest fusion project of Cuban culture in Miami.” No charge. $141 is available to academics, non-profit Details: Ever Chávez, Director, FUNDarte, 7601 Byron Ave. #4C, Miami Beach, FL 33141. organizations and additional subscriptions Tel: (305) 316-6165. Fax: (305) 867-1145. Email: [email protected]. URL: www.fundarte.us. mailed to the same address. To order, contact Caribbean UPDATE at Jun. 21-24: First Annual Caribbean Tourism Summit, International Trade Center, Ronald 116 Myrtle Ave., Millburn, NJ 07041, call us Reagan Bldg., Washington. Event to focus on investing and marketing in the Caribbean. Key- at (973) 376-2314, visit our new website at www.caribbeanupdate.org or send an note speaker: Alan Greenspan, former chairman of the Federal Reserve. Cost: $950 and up. email to [email protected]. We accept Details: ACTS, Caribbean Tourism Organization, 80 Broad St., Suite #3200, New York, NY Visa, MasterCard and American Express. 10004-2221. Tel: (212) 635-9530. Fax: (212) 635-9511. Email: [email protected].

Jun. 25: “Sexuality and the Cuban Nation,” London. Abel Sierra Madero, Cuban-born essay- ist and researcher who has lectured widely in Mexico and the United States. Details: Stephen Wilkinson, International Institute for the Study of Cuba, London Metropolitan University, 166- 220 Holloway Rd., London N7 8DB. Tel: +44 20 7133-2405. Email: [email protected].

Jul. 7-20: Two-week dance trip to Cuba. “You’ll take classes with professional dancers — Editor & Publisher the best in Havana! You will go out to the best salsa, folklore and cabaret shows. Someone ■ LARRY LUXNER ■

who knows the place inside-out will walk around with you and explain how the culture works Washington correspondent and introduce you to people.” Cost: C$4,100 (including airfare from Canada). Details: Chen ■ ANA RADELAT ■

Lizra, Latidos Productions, Vancouver. Tel: (604) 708-2170. Email: latidosproductions.com. Political analyst ■ DOMINGO AMUCHASTEGUI ■ Jul. 10-17: Cine Cuba Film Festival, Barbican Centre, London. Actress Mirtha Ibarra (star of “Fresas y Chocolate” and “Guantanamera”) has been invited to participate. Details: Stephen Feature writers ■ TRACEY EATON ■ Wilkinson, International Institute for the Study of Cuba, London Metropolitan University, 166- ■ VITO ECHEVARRÍA ■ 220 Holloway Road, London N7 8DB. Tel: +44 20 7133-2405. Email: [email protected]. Cartographer ■ ARMANDO H. PORTELA ■

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