Cuba Ends 2009 with 1.4% GDP Growth; Dismal Economy May

Vol. 18, No. 1 January 2010

www.cubanews.com

In the News Jailed American, Alan Gross, had history

Dorgan, Dodd depart of distributing USAID equipment in Cuba Retirement of powerful lawmakers stun BY ANA RADELAT ing to the site: establishing new VSAT installa- advocates of easing sanctions ...... Page 2 he American accused of spying in Cuba is tions in Afghanistan, Armenia, Iraq and Kuwait a 60-year-old Jewish international deve- and “continued support for humanitarian activi- No quibble on Cuba T lopment expert who has distributed cell- ties in Cuba, Palestine and Israel.” phones and humanitarian aid to Cuba before, In Cuba, Gross was working with the island’s It’s the only issue all 4 contenders for Fla. informed sources tell CubaNews. tiny Jewish community, helping it access the In- senate rate can agree on ...... Page 3 Alan P. Gross of Potomac, Md., was arrested ternet and providing technical assistance to help by Cuban authorities on Dec. 4. He hasn’t yet its 600 to 1,000 mostly elderly members commu- Ashby’s claims been formally charged with a crime, but Ricardo nicate with each other and with Jews overseas. Alarcón, president of Cuba’s National Assembly, The community, which thrives on substantial Lawyer has his eye on Cuban claims, but has accused the detainee of working for U.S. donations from U.S. and Canadian Jewry, main- OFAC is getting in his way ...... Page 4 “secret services,” made up of what he called tains five synagogues: three in Havana, one in “agents, torturers and spies.” Camagüey and one in Santiago de Cuba. Gross is the owner of Joint Business Develop- Gross’s fate is unclear. According to informed Big decisions ahead ment Center LLC, which according to its web- sources, he had gone to Cuba several times be- Cuba’s National Assembly faces criticial site “provides practical 21st-century solutions to fore to pass out humanitarian aid and cellphones issues as economy flounders ...... Page 7 business, government, associations and human- to dissidents under a contract with Bethesda, itarian aid organizations globally.” Md.-based Development Alternatives Inc. JBDC, a Section 501(c)(3) nonprofit based in Yet for some reason, on his latest trip, Gross Newsmakers Chevy Chase, Md., has worked in 60 countries was detained at Havana’s José Martí Interna- Scholar Ted Henken of Baruch College in throughout the Middle East, Caucasus and Latin tional Airport as he was trying to leave Cuba. New York talks to CubaNews about the America. Among its accomplishments, accord- See Gross, page 2 island’s growing blogosphere ...... Page 8 Cuba ends 2009 with 1.4% GDP growth; More turismo, less dinero Cuba receives a record 2.4 million visitors dismal economy may improve this year in 2009, but revenues shrink ...... Page 10 BY OUR HAVANA CORRESPONDENT December, after peaking at $52,127/ton in 2007. Business briefs 009 was one of Cuba’s most difficult years At the same time, Cuba’s tourism sector was in trouble by year’s end, despite the fact more Nickel output falls to lowest in a decade; since the “special period” of the early 1990s. 2It was marked by a chain of tightly inter- tourists now visit the island than ever before. Credit Suisse fined by OFAC .....Page 12 connected events, beginning with a sudden Tourism revenues dropped 12% from the year drop in hard-currency income that unleashed before, representing a loss of $276 million — Population steady the forfeit of debt payments, which in turn made more than the income derived in 2008 from Cuban exports of either sugar ($235 million) or Cuba’s population rose by 3,467 in 2009, it even harder for Cuba to access funds. Strapped for cash and besieged by mounting tobacco ($236 million), and only slightly less reversing 3-year decline ...... Page 13 pressure from creditors, the Castro regime was than what Cuba earned from 2008 pharmaceuti- forced to take desperate measures to keep some cal exports ($297 million). Omni makes waves cash at home. The Cuban government said the island’s GDP grew by 1.4% in 2009, though the Economist In- Authorities crack down on Havana’s irrev- This included freezing $600 million deposited in local banks by foreign companies operating telligence Unit said it had actually shrunk by 1%. erent counterculture group ...... Page 14 on the island; slashing imports, including U.S. In a Dec. 10 report, EIU predicts Cuba’s econ- food purchases; rationing electricity to state en- omy will grow by 2.1% in 2010 — down from a CubaNews (ISSN 1073-7715) is published monthly terprises (which forced the shutdown of many previous estimate of 3.5% — and 4.1% in 2011. by Luxner News Inc. © 2010. All rights reserved. factories) and removing rice and peas from the Unsettling economic news had already begun Subscriptions: $429 for one year, $800 for two years. ration card after 47 years. to emerge early in 2009. By mid-year, the official For editorial inquires, please call (301) 452-1105 media was already railing against “bad habits” or send an e-mail to: [email protected]. World prices for nickel — Cuba’s top source of foreign exchange — fell to $17,066/ton in See Economy, page 6 2 CubaNews ❖ January 2010

— FROM PAGE 1 arrest Gross is to use him as a bargaining by the Cuban government — to improve its Gross chip to make a trade for the “Cuban Five” — ability to communicate with its members ac- “Their motivation isn’t real clear to us,” a intelligence agents serving jail terms for infil- ross the island and overseas. His activities in- State Department official told CubaNews. trating exile organizations and military bases cluded the distribution of basic IT equipment Chris Sabatini, senior director of policy at in Florida. But a State Department official such as cellphones and laptops designed to the Council of the Americas, said the Cuban says “there’s no parallel” between the two. facilitate this communication.” government “clearly wants to force the hand The official, who asked not to be named, Robert Otto, who has worked in the inter- of the Obama administration in some way. also said the U.S. government had kept national development field with Gross for 20 They may want to box the Obama administra- Gross’s identity secret because he had not years, said his jailed colleague has had sever- tion in to prevent [U.S.-Cuba] relations from signed a privacy act waiver that would have al USAID grants and contracts in the past to moving forward.” allowed disclosures to the media. work on a number of issues — including The Castro regime may also want to bolster Gross rejected the waiver when officials dairy production and rural development. its criticism of a controversial U.S. Agency for from the U.S. Interests Section visited him in “He’s a good guy, he’s not a spook,” Otto International Development program that jail on Dec. 28. The official who spoke to told CubaNews. “He’s not James Bond, he’s a funded the DAI project under a multmillion- CubaNews said U.S. diplomats in Havana hope development guy.” dollar grant. to visit the imprisoned Gross again soon. Cuba has detained Americans working for The USAID’s Cuba program aims to help USAID programs in the past. But usually such dissidents and NGOs in Cuba and has recent- FORMER COLLEAGUE: ‘HE’S NOT A SPOOK’ people are let go in a matter of days or hours. ly shifted its focus from academic and exile P.J. Crowley, assistant secretary of state for In fact, no one has been arrested for any organization to groups, like DAI, that have public affairs, said in a public statement length of time since Cuba detained Douglas experience undermining U.S. enemies. before Gross’s identity was revealed that the Schimmel in 2000. DAI has a global reach and projects in doz- contractor had been on the island “as part of A Chicago resident who was then 70 years ens of nations from Afghanistan to Venezuela. a process whereby we continue to encourage old, Schimmel was kept in the Villa Marista The shift in the focus of USAID and State and help facilitate Cuban citizens being able prison outside Havana for 20 days on charges Department Cuba programs, which occurred to do what citizens in most other parts of the of “rebellion.” His crime: distributing books during the Bush administration, included a world get to do: connect with the Internet, be and money to dissidents as a favor to Frank push toward providing dissidents and other able to communicate, be able to offer and Calzón, head of the Center for a Free Cuba — Cubans with telecommunications technology. express their views on a variety of subjects.” a leading recipient of USAID grant money. “The [democracy] program has been an DAI has declined to speak about Gross. But Recently, Sen. John Kerry (D-MA), head of accident waiting to happen,” said Phil Peters, the company’s CEO, James Boomgard, said the Senate Foreign Relations Committee, de- a Cuba expert at the Lexington Institute. “It’s in a statement that his subcontractor was not manded a review of USAID’s Cuba program. all about transition, which to the Cuban gov- working for any intelligence service. Likewise, Kerry’s counterpart in the House, ernment means regime change.” He described Gross as “a committed devel- Rep. Howard Berman (D-CA), is seeking far Peters also said Americans who are carry- opment professional with many years of expe- greater transparency and accountability of how USAID and State Department Cuba ing out work for USAID grantees in Cuba may rience providing humanitarian and develop- ❑ not realize the danger they are in. He noted ment assistance worldwide.” grant funds are actually spent. that “USAID sends people down there with no According to Boomgard, Gross “was work- Ana Radelat is a Washington-based freelance protection and at great risk.” ing with a peaceful, non-dissident civic group journalist and has been covering Capitol Hill for Another reason Cuba may have decided to — a religious and cultural group recognized CubaNews since the publication’s birth in 1993. Dodd, Dorgan retire from Senate, stunning embargo opponents he announced retirements in January of two of the Senate’s dened by the task of running for re-election” and will put their formi- most passionate critics of the U.S. embargo against Cuba – dable skills to work as legislators and communicators” to lift the T Democrats Chris Dodd of Connecticut and Byron Dorgan of travel ban to Cuba and take other steps to ease the embargo. North Dakota — stunned advocates of easing sanctions. “Our country has benefitted before from their leadership,” said But their departures from Capitol Hill,which won’t take place un- Stephens. “We need it now more than ever.” til the end of the congressional session in December, won’t signifi- But even with Dodd and Dorgan’s backing, the travel bill has lan- cantly alter the political dynamic when it comes to U.S.-Cuba policy. guished in both the House and Senate — the victim of a lack of sup- That’s because their replacements and other colleagues are like- port in the Senate, opposition by Senate Majority Leader Harry Reid ly to take up the cause. And Dodd and Dorgan were limited in what (D-NV) and rejection by the White House. they could accomplish by a lack of political support for big changes In addition, Phil Peters, a Cuba expert at the Lexington Institute, to the embargo. said that with all the problems in the financial world, Dodd has been During an aborted run for the White House in 2007, Dodd said he too busy as head of the Senate Banking, Housing and Urban Affairs would abolish the embargo if elected president. Committee to pay much attention to Cuba. A high-ranking member of the Senate Foreign Relations Commit- “As far as the future goes, there are others who can take [Dodd’s tee, Dodd first introduced legislation to end all restrictions on and Dorgan’s] place,” said Peters. American travel to Cuba in 1999. He sponsored another attempt to He suggested senators happy to take the lead in the fight against lift the travel ban last year. the embargo could include John Kerry (D-MA), chairman of the Dorgan has fought for years to ease restrictions on the sales of Senate Foreign Relations Committee, and Max Baucus (D-MT), agricultural products to Cuba. The Midwestern lawmaker had some head of the Senate Finance Committee. success last month when President Obama signed a massive Dodd decided to retire after five terms in the Senate when his omnibus spending bill into law. The bill included Dorgan’s amend- popularity plummeted after securing a sweetheart deal on a mort- ment to end a regulation that prohibited U.S. farmers from shipping gage from troubled subprime lender Countrywide Financial. products to Cuba unless they were paid first. Dorgan’s exit from the Senate was less expected. Yet his replace- Sarah Stephens, executive director of the anti-embargo Center for ment — regardless of party affiliation — is likely to join other farm- Democracy in the Americas, called the lawmakers “two heroes of state senators in pushing greater opportunities to ship food to Cuba. the U.S. Senate.” She hopes the retiring senators will be “unbur- – ANA RADELAT January 2010 ❖ CubaNews 3 US-CUBA RELATIONS Florida Senate candidates all agree: Get tough on Cuba BY TRACEY EATON Rubio and a relatively liberal Democrat like ager and chief of staff. Crist chose LeMieux to he top four candidates vying for Kendrick Meek may disagree on many fill that Senate seat after Mel Martínez left the Florida’s open U.S. Senate seat in 2010 issues, but when it comes to Cuba policy they job in August 2009. Now as some analysts see T clash on many issues — but not when it largely read from the same script, as have vir- it, LeMieux is doing everything he can to bol- comes to Cuba. All support a tough approach tually every Florida senator since the end of ster Crist’s reputation as a friend of the Cuba to the Castro regime in Havana. the Cold War,” according to Erikson. democracy cause. The two Republicans, Gov. Charlie Crist Still, analysts say, Cuba will remain one of LeMieux can do that by helping steer fed- and former Florida House Speaker Marco the political undercurrents in the race. eral money to would-be Crist supporters. He Rubio, along with the two Democrats, Rep. A sign of that came in December when two has shown interest in pro-democracy funds Kendrick Meek and ex-Miami Mayor Maur- of the most influential Cuban-American law- destined for Cuba, and his recent spat with ice Ferré, won’t “antagonize the hardliners on makers — Republican Reps. Lincoln and the State Department underscored that point. Cuba by making obvious statements like the Mario Díaz-Balart — suddenly withdrew their LeMieux had put a senatorial “hold” on embargo is a failure,” said Sar- ah Stephens, executive direc- tor of the nonprofit Center for Democracy in the Americas. “They’re all singing the same tune on this one,” said Stephens, whose nonprofit group opposes current U.S. policy regarding Cuba. Indeed, the candidates all tried to sound like champions of Cuban democracy at a Dec. 21 lunch hosted by the US- Cuba Democracy Political Act- ion Committee, which enthusi- astically supports the embargo. A network of PACs and Senate candidates Charlie Crist, Mauricio Ferré, Kendrick Meek and Marco Rubio all take a hard line on the Castro regime. Cuban-American donors have given more than $10 million to candidates and support for Crist. President Obama’s nomination of Thomas members of Congress since 2004, a non-parti- The older of the brothers, Lincoln Díaz- Shannon to be ambassador to Brazil. san group called Public Campaign reported in Balart, told the Miami Herald that Crist “left On Dec. 17, LeMieux dropped his hold November. us no alternative and he knows why.”” after the State Department assured him that, “From what I can see at first glance, it looks That cryptic explanation drew criticism among other things, every non-governmental as though all the candidates so far are trying from prominent Miami pollster Sergio Bendi- group applying for federal funds to do pro- to get PAC money and are not being at all xen. Writing for the online Huffington Post, democracy work in Cuba “will receive equal helpful to the anti-embargo cause,” said Bendixen said the Díaz-Balarts’ decision was and fair treatment in the screening process.” Stephen Wilkinson, director of the London- “emblematic of the pettiness of old-school pol- A memo from Assistant Secretary of State based Centre for Caribbean and Latin itics. The Díaz-Balarts had no significant poli- Arturo Valenzuela to LeMieux reads: American Research. cy differences with Crist when they described “As we discussed and subject to privacy him as recently in August as ‘exactly the restrictions, we will keep you apprised in a CUBA LINKS ALL 4 TO ‘MIAMI MAFIA MACHINE’ leader we need.’ So what changed? timely manner and on an ongoing basis of the Granma, Cuba’s Communist Party mouth- “This is precisely the kind of back-room results of the deliberations related to the FY piece, criticized money’s influence in U.S. pol- dealing the American people are tired of ... 2009 screening process and consult closely itics on Dec. 29 and said the four Florida can- endorsements should be based on merits, with you on the nature and objectives of U.S. didates are part of a “Miami mafia machine” issues and convictions, not political favors.” democracy programs in Cuba.” that dictates U.S. policy toward Havana. Neither Crist nor the Díaz-Balart brothers Rubio, a Miami-born lawyer, doesn’t hide DÍAZ-BALART BROTHERS REMAIN INFLUENTIAL responded to several CubaNews requests for his passion for Cuba. His parents left the A Cuban-American politician who spoke on comment for this story; nor did LeMieux or the State Department’s press office. island after Fidel Castro took power. condition of anonymity told CubaNews that he On Dec. 12, LeMieux applauded the U.S. Once on U.S. soil, his father worked as a believes the lawmakers’ withdrawal of sup- bartender and his mother was a housekeeper government’s pro-democracy programs, say- port is about not just politics, but money — ing, “Now more than ever, we need to main- and later a Kmart stock clerk. Rubio says the specifically, access to millions of dollars in Cuban people have been victims of the man- tain critical democracy funding in the midst of pro-democracy funds for Cuba. this crackdown by the Cuban regime. made disaster he calls “Hurricane Fidel.” The veteran politician said the Díaz-Balart Ferré, a Puerto Rican who was Miami’s Democratic assistance grants play an impor- brothers want to maintain some degree of tant role in furthering the cause of freedom mayor from 1973 to 1985, believes that “the control over how Cuba funds are distributed. quest for an open, democratic and free Cuba” for the Cuban people and the regime’s reac- He called it “political payoff” money that the tion clearly shows our efforts are working.” ❑ must guide U.S. policy. Crist and Meek agree lawmakers help secure for like-minded sup- that U.S. sanctions should not be lifted unless porters who run pro-democracy programs. Tracey Eaton, a former Cuba correspondent Cuba adopts reforms. The problem, as this explanation goes, is But all the posturing over Cuba isn’t likely for the Dallas Morning News, was based in Hav- to influence U.S. policy, said Daniel Erikson, that Sen. George LeMieux (R-FL), a Crist ally, ana from 2000 to 2005 and now teaches jour- author of the 2008 book Cuba Wars. wants some control over that money too. nalism in St. Augustine, Fla. You can follow his “A young, dynamic conservative like Marco LeMieux is Crist’s former campaign man- blog at: http://alongthemalecon.blogspot.com/. 4 CubaNews ❖ January 2010 US-CUBA RELATIONS Miami lawyer aims to buy claims; OFAC likely to say ‘no’ BY VITO ECHEVARRÍA in December 2007, Clarinbridge LLC — a “The fund that has the claims would sit with imothy Ashby is currently on a mission: Nevada-chartered firm and a subsidiary of the Cuban government and ask, ‘What do you to legalize the sale and transfer of long- Siboney Ltd. — paid St. Louis-based Siboney have to offer?’ It could be anything from T standing U.S. compensation claims Corp. $1 million for its claim against Cuba beachfront property or shares in pre-existing against the Castro regime. which encompasses oil concessions seized hotels,” he said. “In some rare cases, it could Through the Miami office of Sonnenschein during the 1959 revolution. be a joint venture. Everything would be in Nath & Rosenthal LLP, Ashby — who heads Considering the fact that the FCSC certi- partnership with the Cubans.” the law firm’s Cuba Emerging Markets Prac- fied Siboney Corp.’s loss at $2.4 million (plus The fact that Siboney Ltd. is a non-Ameri- tice — represents Siboney Ltd., a U.K. firm post-1959 interest), Clarinbridge’s $1 million can entity would give it the flexibility to strike incorporated in the Isle of Man in 2006. purchase seems quite reasonable to some. a variety of settlements with the Cubans, not At some point in the future, Siboney wants According to the Securities and Exchange only property transfers, but also joint ven- to seek a “debt for equity” Commission, which detailed this transaction, tures with Havana authorities. deal with the Cuban govern- Mark Entwistle — Canada’s These ventures could, for example, be in ment, whereby such claims former ambassador to Cuba tourism, agribusiness, oil or mineral explo- would be converted into a — was the manager of Clarin- ration, or other revenue-generating ventures, portfolio of new revenue-gen- bridge LLC. But Entwistle is which would make this a “win-win” for both erating Cuban assets. no longer with the company, the original U.S. claim holders. But the U.S. government said Ashby. According to Ashby, before the 2008 OFAC has put substantial hurdles in Without providing further notice, “Siboney paid an average of 28% of the Ashby’s way. In 2008, shortly details, Ashby notes that a original certified value of the U.S. claims” to after the lawyer started his number of international confi- the original claim holders. campaign, the Foreign Claims dential high-profile individu- Settlement Commission als are among Siboney Ltd.’s SKEPTICS DOUBT CUBA WOULD GO ALONG urged claimants to seek legal investors. According to the No doubt, for the 5,913 current certified advice before selling or trans- British Parliament’s website, claim holders, one settlement mechanism — ferring their claims. General the Lord Guthrie of the issuance of Cuban sovereign bonds — The FCSC also warned Craigiebank, former chief of would only grant them pennies on the dollar, potential investors in Ashby’s the UK’s Defence Staff and due partly to the Castro regime’s lack of cash. member of the Parliament’s enterprise that federal law Tim Ashby: Cuba claims expert Furthermore, it would be illegal for U.S. cit- prohibits a new owner from House of Lords, is Siboney’s izens to receive them under current U.S. law, being compensated for more non-executive chairman. since such bonds would be considered “an than what was paid for the claim should there When asked why his plan would attract interest in Cuban property.” ever be a settlement between the United investors, Ashby said “all of them see great The bigger problem for claimants that sell States and Cuba. potential in Cuba. They were looking for an investment vehicle which allows them entry to Ashby is that they would not have the clout of Uncle Sam behind them. ASHBY: OFAC IS HOLDING VENTURE BACK into the Cuban market.” Ashby said OFAC has prevented Siboney Historically, property claims from national- The Treasury Department’s Office of For- Ltd. from moving forward with its venture. In izations have been settled on a government- eign Assets Control, which has authority to July 2008, OFAC issued a notice stating that it to-government basis. Even if Cuba’s current enforce the U.S. embargo against Cuba, also regards an FCSC-certified claim against Cuba dictatorship agrees to settle the claims with reacted to Ashby’s proposal by issuing a find- as property in which Cuba has an interest. Ashby — and it has little reason to do so — a ing that purchasers of a Cuba claim must get Therefore, the sale or transfer of such a subsequent government could easily ignore a specific license from OFAC. claim would be generally prohibited without the agreement. After Siboney Ltd.’s launch, said Ashby, it OFAC authorization. Meanwhile, some Cuba observers high- proceeded to buy previously held U.S. claims light other potential speed bumps in Ashby’s against Cuba (those certified by the FCSC). LAWYER SAYS IT’S JUST ‘A MATTER OF TIME’ proposed venture. “They raised $10.5 million to get it started,” “Siboney still has a very long way to go,” Despite obstacles to his plan, Ashby hopes said Ashby of Siboney’s investors. The claims says Mauricio Claver-Carone of the US-Cuba that Siboney owns were valued by BNP Pari- to move forward, and in July 2009 applied for a specific license to purchase Cuba claims. Democracy Political Action Committee, in a bas at $32 million about a year ago, he said. recent email to CubaNews. “Even if they did According to the St. Louis Business Journal, His application has yet to be acted on by OFAC, but it’s unlikely the Obama adminis- get OFAC authorization, they’re far from tration would let a private individual seize being in a significant bargaining position — CORRECTIONS authority over claims that could one day serve thus their need for publicity. as a key negotiating point in any effort to “Plus, if they build this position, it’s unlike- A photo in our November 2009 issue ly the Castro regime will agree to such a deal that depicts Fidel Castro saluting the late improve bilateral relations. “A much bigger fund was going to be without renumeration,” he added. “There’s no Romanian dictator Nicolae Ceausescu was immediate gain for them otherwise, and identified as dating from the 1960s. In fact, raised,” said the lawyer, referring to Siboney’s intent to use such financing to buy even more would pose other legal issues for Siboney if the photograph was taken Aug. 29, 1973, claims — if OFAC gives him the green light to they did so, and there’s no guarantee that a when Ceausescu landed in Cuba. future government in Cuba will recognize do so. “I think it’s just a matter of time.” ❑ Also, due to an editing error, an article Assuming OFAC changes its policy, Ashby such a deal with the current dictatorship.” in our January 2009 issue gave the impres- says that the tens of millions of dollars in such sion that Yoani Sánchez’s work appeared in claims likely to be purchased by Siboney Ltd. Details: Timothy Ashby, Sonnenschein the magazine Temas. Rather, she participa- will put it at the negotiating table with the Nath & Rosenthal LLP, 1001 Brickell Bay ted in a forum, Ultimo Jueves, that was or- Cubans for a “debt for equity” or “debt for Drive, Suite #2202, Miami, FL 33131. Tel: ganized by the prestigious Havana journal. property” deal. (305) 308-0011. Email: [email protected]. January 2010 ❖ CubaNews 5 POLITICAL BRIEFS PRISONERS REPORT USE OF TORTURE IN CUBAN JAIL In their own words … Inmates in a high-security prison in eastern Cuba alleging that guards punish infractions with “The United States won’t quit trying to destroy the revolution and bring a beatings and handcuffings in excruciatingly change to our economic and social regime. In the last few weeks we have wit- painful positions known as the “rocker” and nessed the stepping up of the new administration’s efforts in this area. They “Shakira,” reports El Nuevo Herald. are giving new breath to open and undercover subversion against Cuba.” In the rocker, prisoners’ hands are handcuffed — Raúl Castro, in a Dec. 20 speech to the National Assembly. It was Havana’s behind their backs to the opposite legs, and they first public acknowledgement of the Dec. 5 arrest of a U.S. contractor in Cuba. are left on their stomachs or sides for hours and even days, said Yordis Garcia, released Aug. 31 “This is not good news. The Cubans made a mistake with this expulsion.” after serving a year at the prison in Guantánamo. — Miguel Angel Moratinos, Spain’s foreign minister, criticizing the Castro regime The Shakira involves hand and leg shackles for denying entry to Luís Yanez, a prominent Spanish politician and European linked to waist chains that are also applied for Parliament member who has promoted ties with Cuban opposition figures. long periods and force prisoners to shuffle some- what like the Colombian pop singer, wrote “Instead of keeping pace with 21st-century technology, and the tools that Ernesto Durán, still being held at the prison. have made widespread activism possible even in places like Iran, [Florida Sen. Government inspectors made a rare visit to the George] LeMieux and others insist on wasting more time, effort and money Canaleta jail in Ciego de Avila in October after an on an anachronistic, Cold War holdover strategy. Talk about cash for clunkers. inmate complained publicly that a guard shoved Radio Martí is a clunker of the highest order.” a pencil up his rectum in search of contraband — South Florida Sun-Sentinel, in a Dec. 19 editorial urging Congress to “pull drugs, El Nuevo Herald reported recently. the plug” on Radio and TV Martí, which costs U.S. taxpayers $30 million a year. The Cuban government has steadfastly main- tained it does not torture or abuse inmates. “In the last 50 years there has not been a single “Whenever I travel in Latin America, I meet people who are genuinely sur- person disappeared, a case of torture or extraju- prised that President Obama, who represents such a sharp departure from the dicial execution,” then-Foreign Minister Felipe past, would continue enforcing an embargo he inherited from the Cold War.” Pérez Roque declared in January. — Sarah Stephens, executive director of the Washington-based Center for Demo- cracy in the Americas, a nonprofit group opposed to current U.S. policy on Cuba. PHOTOS OF FIDEL IN WHEELCHAIR APPEAR ONLINE Three Nicaraguan websites have posted new “Racism in Cuba has been sort of under the radar screen for, what, 50 years? photos of Fidel Castro using a hospital-style And many of us who have supported the revolution and the gains it has made wheeled chair during meetings in Havana with have kind of kept quiet about it because we were worried that “those people President Daniel Ortega last year. who were opposed to the Cuban revolution, such as white Cubans in Miami Miami’s El Nuevo Herald reported that the 12 and their organizations, would take advantage of it.” color photos were posted Jan. 5 by El 19, La Voz — Political scientist Ron Walters, quoted Jan. 3 by the Los Angeles Times about a del Sandinismo and El Pueblo Presidente, all statement signed by 60 prominent African-Americans. The decree blasted the Cas- sites with close ties to Ortega’s leftist party, the tro regime for its “increased violations of civil and human rights for those black Sandinista Front for National Liberation. activists in Cuba who dare raise their voices against the island’s racial system.” El Nuevo Herald could not independently authenticate the photos. If confirmed, they would “Americans want to see Cuba. They really, really want to see it. [On] every be the first time Castro is shown in a wheelchair cruise ship that leaves Miami and Fort Lauderdale, the market is going to since he underwent emergency surgery in 2006. demand that a port of call include Havana.” — Bob Whitley, president of the U.S. Tour Operators Association, interviewed by SPAIN USES EU ROLE TO PUSH FOR CUBA OPENING the Miami Herald during a Dec. 16 gathering at a downtown Washington hotel. The European Union must be firm in pressing for reform in Cuba, but probably will not make “This type of shallow and vitriolic 1960s public diplomacy makes the Cuban this a priority, Spain’s prime minister said Jan. 1. leadership appear to be non-serious, polemical amateurs. President Obama is “We must be demanding with Cuba but also the most thoughtful and non-ideological U.S. chief executive the Cubans have leave the door open to dialogue,” José Luís Rodrí- seen in 50 years. This speech probably slammed the window shut on U.S. guez Zapatero told a press conference after talks congressional and administration leaders being willing to support bringing with EU officials that marked the official begin- Cuba back into the community of nations. I see little reason to visit Cuba.” ning of Spain’s six-month stint as EU president. — Gen. Barry McCaffrey, in a Dec. 22 letter to Wayne Smith of the Center for The Spanish government had said that one of International Policy. The retired general nixed his Jan. 3-6 trip after Foreign its goals would be to move the EU away from a Minister Bruno Rodríguez called Obama an “imperial and arrogant liar.” policy dating from 1996 that makes improved relations with the communist-run island contin- “Kennedy ... doomed the Cubans by changing the plan at the last minute gent on Havana improving its human-rights and dumping them in a swamp. There is no question the original plan for an record and moving toward democratic reform. uprising would have worked.” Madrid has long been in the forefront of efforts — Lt. Col. Joseph Shannon of Birmingham, Ala., a CIA pilot who flew in the failed to boost relations with Cuba, a former Spanish Bay of Pigs invasion of 1961, interviewed a few weeks before his death on Jan. 6. colony. It wants to see an end to the EU’s Com- mon Position on Cuba, adopted in 1996, which “They just bring back so many memories. Their music influenced a whole calls for progress on human rights and democra- generation of Cubans — my generation.” cy before normalizing relations with Havana. — Ana Estevez, 50, who brought her entire family, including her 2-year- But on Jan. 1, Zapatero seemed to play down old grandson, to hear Kool & the Gang. The rhythm-and-blues group expectations for getting the EU — which now played to a rapturous welcome along Havana’s oceanfront Malecón. includes former communist-run countries in the east — to embrace this objective. 6 CubaNews ❖ January 2010 looning foreign-trade deficit (see CubaNews, munications Minister Ramiro Valdés, a 77- Economy — FROM PAGE 1 July-August 2009, page 1). The media crusade year-old militant and confidante of Fidel and “indiscipline” among the Cuban people. sounded ironic — if not downright offensive Castro, in late September. “That’s not the way. First there were public reproaches to the — in a country that gets by on scanty Here, everyone has to work.” For generations of Cubans raised to believe “wasteful mindset” in energy consumption resources, and revealed the fact that authori- ties were scrapping the bottom of their cof- that the ubiquitous state is the sole provider and the “lavish spending habits” of people and fers just to keep business going. of welfare and that any other way of making state entities. “Exceptional measures” were “The masses should try to solve its own living off the socialist umbrella is immoral, enacted to slash electricity usage — including problems instead of waiting for the daddy- this statement sounded at least ambiguous. a return to blackouts. state to come solve them as little chicks: open Cuba started 2009 after receiving a brutal The regime also scrambled to curb its bal- your mouth, here’s your food,” said Com- blow from three hurricanes in 2008. Gustav, Ike and Paloma sliced through the island, leaving few areas untouched and causing GDP GROWTH RATE In percent TRADE BALANCE In billions of dollars combined damage in excess of $10 billion (equivalent to 17% of Cuba’s GDP, or roughly 14.2 twice the cost of all major hurricanes from 1985 to 2007). The three storms combined left 520,000 houses damaged and nearly 100,000 de- stroyed. These figures represented 15% and 10.1 3% of the entire Cuban housing stock. 9.5 Some 300,000 Cubans rang in New Year’s 8.9 Day 2009 in temporary dwellings as a result of the storms that had made them homeless. 7.6 Sugarcane for the 2008-09 harvest was badly broken and twisted, which — along 5.5 with other management factors — cut the har- vest's volume and depressed yields to 35 tons/hectare from 41 tons/ha in 2008. 3.7 3.7 Only 54 of 70 sugar mills were grinding in 2.9 2.8 2.3 2.2 2009, resulting in an unofficial estimate of 1.3 million tons — barely enough to be consid- ered an important source of cash. REGIME’S GDP PROJECTIONS TOO OPTIMISTIC With all these troubles dragging the econo- my down, it was surprising that at the begin- TWO DECADES OF GDP GROWTH ning of 2009, the government expected GDP In percent over the previous year growth of 6%. But that was overly optimistic, Fidel Castro ill, steps off power and by mid-year, that goal was slashed to 1.7%. The country opens to The government changes In December, Murillo announced that actual the method to calculate foreign investment and Export GDP growth had come to only 1.4%. 10 some primitive domestic the GDP growth to The Berlin Wall falls include social activities. prices A few days before the announcement, the free-market reforms ease, Downsizing of credits UN Economic Commission for Latin America The economy shrinks the sugar industry shrink. and the Caribbean — which closely monitors 5 36% in the first few years after the collapse of the Cuba’s economy — predicted the island Soviet bloc. would end 2009 with only 1% GDP growth. As for 2010, Cuba’s official forecast is for a relatively modest 1.9% GDP growth. 0 But even that should be viewed with cau- As economic growth Flush with cash thanks Obama tion. For one thing, the main negative factors resumes, authorities halt to record-high oil prices, offers reforms and investment. Venezuela expands its talks cited by the government itself as having -5 participation in the Cuban economy. slowed growth and held back Cuba’s econo- President Clinton signs mic recovery in 2009 are still present: a dis- the Helms-Burton Act appointing sugar harvest, relatively soft nick- el prices, lower income from tourism, difficult -10 and more expensive access to foreign credits, diminished foreign investment and continued energy shortages.

WHERE IS THE ECONOMY HEADED? THE CHALLENGES OF RAUL’S GOVERNMENT 2010 ONLY SLIGHTLY MORE HOPEFUL However as 2010 begins, the outlook for Sixteen years of uninterrupted growth (1994-2009) since the economic debacle of the early commodity prices seems a bit encouraging. 1990s are currently endangered by the financial squeeze unleashed by poor commodities Along with the incipient world economic prices, lower revenues from tourism and Cuba’s growing dependence on imported foods. recovery, demand for nickel and sugar are ris- With the economic growth approaching zero, debts mounting and the doors to fresh credit ing while supplies remain tight. Prices for slammed shut, the regime has adopted a number austerity measures that have further de- these key commodities will likely stay higher pressed already low living standards for most people but hasn’t announced any new reforms. in 2010 than in 2009. Raúl Castro desperately needs to make the land produce enough to feed more people, boost Income generated by tourism and remit- efficiency in all sectors, slash Cuba’s enormous foreign trade deficit and attract fresh capital tances could also make a comeback as more to fuel the economy and pay creditors. Yet none of it appears possible without massive reform. See Economy, page 7 January 2010 ❖ CubaNews 7 POLITICAL ANALYSIS Cuba’s National Assembly: Dramatic decisions ahead BY DOMINGO AMUCHASTEGUI pletely frozen for almost a year. taxation policies as a substitute for state prop- he winter session of Cuba’s National The president mentioned that several nego- erty. This closely relates to Raúl’s references Assembly had to face some critical tiations were being held to reschedule debt to “updating” the Cuban economic model. T issues that will necessarily be followed payments, but nothing else was disclosed. In his final remarks, Raúl brought up the by dramatic decisions in the face of likely seri- Nor did anyone discuss the lamentable promotion of women and blacks to positions ous domestic tensions this year. state of Cuba’s sugar industry and rising, cost- of leadership. Over the last 25 years he has Growth in 2009 officially came to only 1.4%, ly sugar imports, or what services the state been adamant, publicly and privately, on this according to the report delivered by Cuba’s will no longer provide — or what is to be done particular issue. new minister of economy and planning, Mari- with unproductive industries and services. The president vowed to exert his influence ano Murillo Jorge. That’s a lot less than the 6% It’s clear that if tens of thousands will have to stop the various manifestations of racism previously forecast, and this year it will be to be rationalized or dismissed from their jobs and machimso still lingering in Cuban society 1.9%, which represents no growth at all. — and new university graduates will find — and do all that is necessary to promote Causes for this drop include a 22.9% drop in exports compared to 2008, with much lower revenues than planned from both tourism and nickel (see story, page 1 of this issue).

Productivity fell 1.1% in 2009, mainly be- LARRY LUXNER cause more people held non-productive jobs, and because of persistent negative productiv- ity in over 65% of Cuba’s 3,700 state entities. The budget deficit reached 3.015 billion pesos, representing 4.8% of Cuba’s GDP. In 2008, the deficit made up 6.7% of the deficit. Estimated deficit for 2010 will be 2.202 billion pesos, representing 3.5% of expected GDP. Cubans will see considerable reduction of social services, due to the obvious fact that the state cannot go on funding such huge Propaganda billboard along a highway outside Havana exhorts patriotic Cubans to conserve electricity. non-productive expenditures. Slashing under- employment and inflated payrolls will be a themselves unemployed — this will be trau- women and blacks to leadership positions at key priority, something that was also stressed matic for Cuba. But options and alternatives all levels, over the next five years, “based on by Raúl Castro in his closing remarks. were not outlined or suggested to mitigate their merits and professional skills.” Investments for 2010 will total 3.237 billion that scenario. In closing, Raúl referred to Cuba’s relation- pesos, 33% less than in 2009. New investments Nevertheless, much serious debate exists ship with the United States, noting that in will be strictly limited to a small number of in Cuba about how to adopt new forms of spite of the Obama administration’s early ges- economic activities capable of generating property, production and distibution under tures, “the instruments of aggression [from hard currency quickly, while food imports the banner of self-employment, family busi- past administrations] of U.S. policy toward will continue to decline — though the ration nesses and cooperatives. There is also some Cuba remain intact. Support for open and co- card isn’t disappearing anytime soon. discussion of decentralization and seeking vert subvertion against Cuba is increasing.” Significantly, lawmakers heard no detailed more flexibility when it comes to foreign Finally, he reiterated Havana’s readiness to analysis on Cuba’s hard-currency situation investments. engage in a non-conditional dialogue, recom- nor how the regime would deal with the coun- Experts say this is what Raúl meant when mending that current administration “leave try’s foreign debt — and with foreign-curren- he talked about “liberating productive forces behind the domestic conditions they are try- cy accounts in Cuba, which have been com- without restrictions” and using banking and ing to impose upon us.” ❑

Given official trade figures, it appears that export earnings. In addition, new investments Economy — FROM PAGE 6 Cuba’s export of goods and services last year will be limited to areas with short-term hard- cash is available to spend. All these factors came to $2.84 billion, while imports totaled currency return. Subsidies, gratuities, health- could ease the effect of the severe crisis the $8.92 billion, translating into a trade deficit of care and other social benefits will be reduced. island is now facing. 6.08 billion, or 51.7% of total trade. In 2008, the Priority will be given to keeping the nickel, Trade is one eonomic sector that clearly trade deficit totalled $10.57 billion, or 59% of biotechnology, tourism, energy, telecommuni- didn’t perform up to government projections. Cuba’s total trade. cations, rum and tobacco sectors intact; the Murillo told the National Assembly that For 2010, the government set a few guide- sugar sector won’t be as lucky. ❑ exports of goods and services fell 22.9% com- lines that not only don’t depart from the tradi- pared to 2008, while imports dropped by tional ruling spirit and style — but reveal the NOTE: As CubaNews went to press, the 37.4%. On one hand, this points to a modest magnitude of Cuba’s financial problems. Oficina Nacional de Estadísticas released reduction of Cuba’s outrageous and chronic For one thing, the plan pledges to not to its annual report, in which 2009 exports are trade imbalance, but behind the figures are spend more money than the country earns, or listed at 10.434 billion convertible pesos, or the sharp cutback in food imports, which evi- in other words, not to widen the debt. This CUC ($11.269 billion), while imports stood dently emptied Havana’s food markets. commitment might sound rhetorical, consid- at 9.285 billion CUC ($1.24 billion). In November, the meat section at the Gale- ering that imported foods alone ate up 60% of This contradicts other previously released rías Paseo dollar store in Havana’s Vedado Cuba’s 2008 export income. statistics from Cuban government sources, neighborhood had only chicken thighs and Add imported fuel and the final bill doubles legs — and Chilean ground beef — available. comes to more than twice Cuba’s annual including ONE’s own annual reports. 8 CubaNews ❖ January 2010 NEWSMAKERS Cuba scholar Ted Henken tries hard to stay objective

BY LARRY LUXNER sition. The Cuban government has put into “I’ve always been interested in the lives and place a very repressive regulatory framework cultures of immigrants. My best friends in ed Henken, one of the top experts on Cuba’s new blogging phenomenon — and has explicit censorship rules.” high school were a Puerto Rican and a T known in Spanish as la blogósfera — Henken said the United States is partly to Japanese guy,” he said, describing himself as says the best way for Americans to promote blame too, because, “as history will show, the a progressive intellectual. democracy in Cuba “is to do nothing at all.” United States kept Cuba out of the Internet “You’ve got to understand the meaning of Henken, a professor at New York’s Baruch game for a long time.” the Cuban Revolution if youre a progressive College, is chairman of the school’s Black and Much of Henken’s discussion focused on intellectual. For anyone who considers him- Hispanic Studies Department. Cuba’s most famous blogger, Yoani Sánchez, self progressive, that was a major event in the Following a Dec. 18 presentation at Inter- whom he’s met several times and interviewed history of the 20th century. American Dialogue entitled “Cuba and New at length. “I was attracted to the anomoly of Cuba, be- Technologies,” he sat down with CubaNews to “There are really two embargoes,” he said. ing able to achieve a revolution and resist U.S. explain the importance of this quiet, unprece- dented revolution of text messages, blog post- ings and civil disobedience. In doing so, he tried hard not to take sides. “I want to play devil’s advocate, and there are a lot of devils involved here,” said Henken, LARRY LUXNER 38, who runs a blog called El Yuma. “The Cuban government has a stupid, unjust embargo against the Cuban people. And I think the U.S. government suffers from arrogance, ignorance and ADD because we don’t pay enough attention to know how to master the issues — and we have a crisis mode whenever something happens.” Henken, author of Cuba: A Global Studies Handbook, discussed how the Castro regime has done its best to minimize the extent to which Cuba’s 11.2 million inhabitants has access to modern technology — while at the same time making use of new media whenev- er it serves the regime’s purpose. Foreigners, intellecutals with government links and high-ranking officials can get onto the World Wide Web, and bloggers can go online at cybercafés and universities, he said, but there are major obstacles. Cuba expert Ted Henken chairs the Black and Hispanic Studies Department at New York’s Baruch College. TIGHTLY CONTROLLED INTERNET “The first is the one we always talk about, but efforts to undermine Cuban sovereignty.” “The vast majority of Internet access is still there’s also an internal embargo, and this is Henken said he tries to be balanced “be- restricted. Government-owned Internet serv- the one Yoani speaks about: the embargo cause there’s a lot to criticize” on both sides. ice provider Etecsa must approve all connec- against talent, creativity and ingenuity “Every time I go to Cuba, I lie to the U.S. tions. Accessing the web through that ISP imposed on the Cuban people by the Cuban requires a password that is issued by the gov- government and tell them I’m going to desta- government.” ernment. Like most commodities in Cuba, bilize the regime. And I tell the Cuban gov- ernment I’m going to lay on the beach. I end passwords can be obtained on the black mar- HENKEN: ‘I’M A PROGRESSIVE INTELLECTUAL’ ket at steep prices,” he said. up doing neither.” Originally from Pensacola, Fla., Henken “Hotels became another option in 2008, but EXPLORING THE CUBAN BLOGÓSFERA even at these places, Cuban bloggers face eco- has been to Cuba 15 to 18 times — he’s lost nomic and practical impediments. Connec- count of the exact number. But he told What he ends up doing, in fact, is talking to tions are extremely slow. Foreign journalists CubaNews his fascination with the island people — particularly those in the blogósfera say that sending two emails can take half an began in the unlikeliest of places: Alabama. who use modern technology to counter the hour to an hour. And they’re very costly. At “I had a job at Catholic Social Services in official government line. hotels, it costs 160 pesos ($6), which is almost Mobile, working with Cuban refugees. They It helps that Henken is gregarious, inquisi- a third of the average Cuban monthly salary.” were coming from Guantánamo, and my job tive and fluent in Spanish. The intranet is a cheaper alternative, said was to go to the airport three times a week, “When I went to Cuba the first time in 1997, Henken, but that provides only limited access pick up these groups of refugees and help I thought I would never be able to make real to email and a few Cuban government-run them get started in a new life in Alabama.” friendships, because everyody saw me as a progaganda sites. Henken studied at Tulane University in walking wallet. I was always accosted as the “The Dutch Embassy and the U.S. Interests New Orleans from 1996 to 2002 and has a ugly American with money to spend. So I Section offer a space where bloggers can go Ph.D. in Latin American studies. His doctoral thought I would never penetrate,” he said. online, but some bloggers shy away from go- thesis was “Condemned to Informality: Cuba’s “But once I did, I found that Cubans were ing to embassies because they think they may Experiments with Self-Employment During the be perceived as members of the political oppo- Special Period.” See Henken, page 9 January 2010 ❖ CubaNews 9 According to Inter-American Dialogue, Sán- give her the benefit of the doubt, based on great conversationalists, educated, cultured chez has spearheaded the Cuban blogos- what she’s told me, and based on the princi- — and genuinely interested in talking with phere, winning accolades abroad for her cou- ples she consistently follows,” he said. Americans as a forbidden-fruit kind of thing. rage and ingenuity” — though within Cuba, “Yoani has told me in no uncertain terms “Because I’m an academic, they see me as her impact on average citizens is less clear. that they do not accept money from foreign non-threatening, and also as someone who is “A lot of her support comes from random governments or institutions — which doesn’t objective and fair, if critical. They respect people sending in donations,” Henken told mean they don’t accept help,” he said. “I think someone who understands the geopolitical CubaNews. “One of the greatest advantages of she’s learned that lesson because [U.S. assis- and historical context. blogs is they’re much cheaper — in terms of tance] has tainted a whole history of legiti- “If you do, you can’t help but see the Cuban manpower and material — than any [printed] mate critics of the Cuban governments.” government as evil and repressive but as a lib- publication. So she doesn’t need a lot of mo- Henken added: “The Cubans say she’s a erating, revolutionary experiment.” ney to do what she does. And her postings are mercenary engaging in a media war against the government. While that is understandable given U.S. policy and a history of subversion against Cuba, I think it’s completely wrong. It’s the same old argument — la misma can- “Every time I go to Cuba, I lie to the U.S. government and tell teleta — they use against anyone who stands them I’m going to destabilize the regime. And I tell the Cuban outside of the revolution and criticizes it.” Volunteers help translate Generación Y into government I’m going to lay on the beach. I end up doing neither.” 18 languages — a feat Henken said is possible — CUBA SCHOLAR TED HENKEN only because so many people outside of Cuba respect Yoani and want to help. The very fact Raúl Castro and his regime have cracked down so hard on her tells Hen- Henken says he never meets Cuban goven- almost never longer than three paragraphs.” ken that she must be doing something right. rment officials, though he has friends who Henken first met Yoani Sánchez in July “Their attitude was, ‘we were content to ig- happen to be communists, professors, intel- 2008 and has been in “periodical contact” with nore these bloggers as insignificant elements lectuals and political scientists. her via telephone and email ever since. as long as they stayed online. But they have “I also meet occasionally in New York with taken it to the streets. They’re starting to act Cubans who work at the UN mission to HENKEN SAYS HE TRUSTS BLOGGER like citizens. And as they become more coura- exchange views, and we have conversations “The first time I met Yoani, she and I and geous and stupid, and do things in public — that are more light than heat, where we don't her husband really hit it off. The other time, I like confronting Mariela Castro at an event — hide our differences,” he said. just passed by and said hello. The main pur- there’s is going to be a reaction.” And one of the biggest differences of opin- pose of my meeting her was this very long Henken says he’ll be watching carefully to ion now centers on Yoani, whose Generación interview [viewable in 13 parts on Youtube] see how the Castro regime deals with Yoani’s Y blog has been online since October 2007. for my own intellectual curiosity.” increasing popularity. Today there are close to 200 officially san- Henken said he doesn’t buy into the Castro “They’ve unleashed an arsenal of propagan- tioned blogs, but only 25 or so truly indepen- regime’s claim that Yoani maintains her blog da against her, a whole world of blogs dedi- dent blogs produced by Cubans and of a rep- only with the help of foreign “collaborators.” cated to discreting her,” he told us. “If Yoani ertorial rather than personal or family nature. “She’s innocent until proven guilty, and I wasn’t that important, they wouldn’t exist.” ❑ PROMOTIONS WITHIN CUBA’S COUNCIL OF STATE Cuba protests new TSA regs On Dec. 20, members of Cuba’s National Assembly announced the following changes: Cuba’s Foreign Ministry is ridiculing ■ the island’s inclusion on a list of 14 coun- 1. Ramiro Valdés Menendez: Comandante de la Revolución. Male, mestizo, 74. Pro- tries whose airline passengers bound for moted to Vice President of the Council of State, thus becoming the third most important fig- the U.S. will now be subjected to strict ure in the Council of State. IT and communications minister as well as Vice President of the screenings and pat-downs in the wake of a Council of Ministers. A major historical figure, he joined Fidel Castro in the attack on the foiled Dec. 25 plot by al-Qaeda to blow up Moncada army barracks in 1953 and was a founding member of the 26 of July movement. a Northwest passenger jet near Detroit. ■ 2. Gladys H. Bejerano: Female, white, 63. Promoted to Vice President of the Council “We categorically reject this new hos- of State. Currently General Comptroller of the Republic. For many years a Party cadre in the tile action by the U.S. government,” said a City of Havana. More recently she has been setting up the foundations, standards, and mech- ministry statement. “This [State Depart- anisms for a national auditing system. ment] list of state sponsors of terrorism is ■ 3. Liudmila Alamo Duenas: Female, white, 34. Promoted to Council of State. Recent- politically motivated, and its only goal is to ly promoted to First Secretary of the Union de Jovenes Comunistas (UJC). A university grad- justify the embargo.” uate and a UJC cadre for more than 10 years. In addition to the four on the terrorist ■ list — Cuba, Iran, Syria and Sudan — the 4. Isia A. Diez Duardo: Female, white, early 40s. Promoted to Council of State. For Transportation Security Administration over 10 years she’s been with the Provincial Administration Council of Las Tunas province. ■ will carefully screen passengers coming 5. Kirenia Díaz Burke: Female, black, early 30s. Promoted to Council of State. An ex- from 10 predominantly Muslim countries: pert in scientific validation techniques at Finlay Institute, a Havana biotech research center. Afghanistan, Algeria, Iraq, Lebanon, ■ 6. Marino A. Murillo Jorge: Male, white, late 30s. Promoted to Council of State. Libya, Nigeria, Pakistan, Saudi Arabia, Minister of Economy and Planning. A well-acknowledged economics expert within Cuba’s Somalia and Yemen. FAR and Vice President of the Council of Ministers. On Jan. 8, the Cuban government sum- ■ 7. Sergio Juan Rodríguez Morales: Male, mestizo, mid-50s. Promoted to Council of moned the top U.S. diplomat in Havana to State. Agronomy expert; heads National Research Institute of Tropical Tubers in Villa Clara. demand that Cuba be taken off the list. 10 CubaNews ❖ January 2010 TOURISM Tourism arrivals grew in 2008, but revenues took a dive BY LARRY LUXNER 200,000 Cuban-Americans visited the island in That doesn’t include an estimated 480,000 espite the nearly 50-year-old U.S. travel 2009, nearly double last year’s arrivals. Americans who will go to Cuba on Caribbean ban, Cuba received a record 2.4 million Companies operating charter flights to Cuba cruises when U.S. ships are allowed to dock Dtourists in 2009 — a 3.3% jump from the from the three U.S. gateway cities — Miami, there. Miguel Figueras, a Tourism Ministry 2.34 million reported in 2008. New York and Los Angeles — say bookings official in Havana, said Cuba plans to build 30 But overall tourism revenues fell by nearly are up 30% since Obama eased restrictions. hotels over the next six years with the help of $300 million due to deep discounting and foreign investors, adding 10,000 rooms to the 48,600 that exist now. shorter stays from Canada and various Euro- TOURISM GROSS REVENUES pean countries that supply the bulk of visitors If two million Americans visit Cuba annual- to the Caribbean’s largest island. AND NUMBER OF VISITORS ly, U.S. airlines will likely earn $600 million Cuban Tourism Minister Manuel Marrero and travel agencies $300 million annually. Millions of Billions of Yet various efforts in Congress to lift the told the Communist daily newspaper Granma visitors dollars his ministry’s 2009 gross revenues totaled travel ban have invariably ended in defeat. $2.0 billion, down from $2.3 billion in 2008. The latest effort is being sponsored by Bill Canada remains by far Cuba’s top source of Delahunt (D-MA) and Jeff Flake (R-AZ), but visitors, supplying 932,800 tourists last year. no action on their bill is expected until spring. Large numbers of tourists also came from Meanwhile, tour operators and hoteliers Great Britain (171,800), Spain (129,000), Italy around the Caribbean worry about the impact (117,200), Germany (92,300) and France an opening in Cuba would have on neighbor- (83,500). ing destinations. The island’s single most important resort, Rafael Romeu, author of an IMF study on Varadero, welcomed just over a million tour- that subject, hinted that Cuba’s opening will ists in 2009. Some 40% of all foreigners visit- prove to be a mixed bag for nearby countries. ing Cuba go to Varadero, where 86% of all “They would gain from redirected Cana- rooms are located in four- or five-star hotels. dians and Europeans who now vacation in Average hotel occupancy was 48.2%, up Cuba,” he says. “But heavily U.S.-dependent slightly from 47.7% in 2008, though average destinations that do not have the ability to income per tourist per day came to only 92.3 capture redirected Canadians and Europeans convertible Cuban pesos ($99.68). That’s displaced by U.S. tourists will lose. Some of down from 101.80 pesos convertibles ($109.94) the most vulnerable include the Turks & the preceding year. Caicos Islands, the U.S. Virgin Islands, Despite the downturn in tourism revenues, Cancún and perhaps Jamaica.” the one bright spot is a dramatic jump in On the other hand, the luxury tourism mar- arrivals from Cuba’s closest market — the ket appears unconcerned about Cuba. United States. “Of course, Americans will probably want Under a decree approved by President Those numbers could jump dramatically to discover Cuba if the ban is lifted, but the Obama last year, Cuban-Americans may now once average U.S. citizens are again permit- U.S. is not the Dominican Republic’s primary visit their family on the island for as long as ted by their own government to visit Cuba. market — just a fraction of it,” asserts Paola they want and as many times as they want. “Americans really want to see Cuba,” said Rainieri, public relations director for Previously, exiles could travel to Cuba only Robert Whitely, president of U.S. Tour Puntacana Resort & Club. “Competition just once every three years and stay for a maxi- Operators, speaking recently with Reuters. makes everyone work harder at offering the mum of 14 days. “We predict that at least 850,000 Americans best service and amenities for travelers and in According to the Castro regime, around will go to Cuba in the first year.” the end, things always balance out.” ❑ Varadero to host Montecristo golf championship in April ollowing the success of the 2009 tourna- Golf Club and Palmares SA in association with The event — covered by Golf Monthly, ment, the 2nd Annual Montecristo Cup Esencia Hotels & Resorts. The event is spon- GolfPunk and all major TV networks — was a Fand Esencia Cup for 2010 will take place sored by Habanos, makers of Cuban cigars. truly international competition, with golfers in late April at Cuba’s Varadero Golf Club. “Cuba is an ideal location for golf tourna- representing the United Kingdom, Canada, The two-day event includes the Montecristo ments and has a bright future with regards to Spain, Andorra, Korea, Vietnam, Japan and Cup. Limited to 72 competitors, the 18-hole courses,” says British golfer Tony Jacklin, China as well as Cuba. tournament will be open to both amateur and winner of The Open and the US Open. “We look forward to sponsoring the second professional golfers with a handicap under 28. “The Montecristo Cup and Esencia Cup Montecristo Cup in 2010 after such a great The following day will be the Esencia Cup tournaments lead the way, offering a challen- success in May 2009,” said Ana López, direc- — a team-play competition with no handicap ging and enjoyable game… plus where else tor of marketing at Habanos. limit and be played by a maximum of 18 can you light up a cigar and strike the ball!” Andrew Macdonald, CEO of Esencia Hotels teams, each with four players. Guest of honor Ernie Els, a three-time ma- & Resorts, said that as a British company, “we Spanish golfer Alvaro Quiros will appear at jor championship winner and former No. 1 are excited to work with Palmares in the both events and play an exhibition match World Golfer, said “I look forward to coming development of golf in Cuba.” against another world-class golfer. On Apr. 24, back and seeing much more Cuban golf.” Details: Dalia Blumenthal, DBPR Int’l, an evening gala awards dinner will be held at Added Palmares representative Sandino Toronto. Tel: (416) 926-1967 or Considine, Es- the DuPont family mansion known as Xanadu. Fernández: “It was an exciting tournament encia Hotels, London. Tel:7 +44 779 345-1652. The event is being hosted by the Varadero and the first of many.” Email: [email protected]. January 2010 ❖ CubaNews 11 AGRICULTURE Government incentives boost Cuban farm production uban small farmers and agricultural Raúl has repeatedly complained about stitute for powdered milk imports, which have cooperatives increased their sales of Cuba’s poor agricultural productivity, saying steadily decreased. Cproducts such as milk, rice and pork to half the island’s arable land is sitting unused. The peasant cooperative sector also ac- the government in 2009 after President Raul Raul said last year that the “maximum pri- counted for 70% of pork sales to the island’s Castro introduced measures to dramatically ority” is increasing domestic farm production. government by domestic producers, while enhance domestic food production, Spanish According to Lugo Fonte, 2010 will be an small farmers have started experimenting news agency EFE reported Jan. 9. even better year if “the transformations, in with bull raising and are looking at sugarcane The president of the government-support- terms of both application and process, elimi- production, also to substitute imports. ed National Association of Small Farmers, nate the bureaucratic decisions that hinder “I don’t want to create false expectations, Orlando Lugo Fonte, was quoted as saying the utilization and development of human and but in terms of beef output we’re on a good overall results achieved were “positive” but technical potential.” path,” Lugo Fonte said. that 2009 also showed “how far the sector still Sales of milk to the government by cooper- “Given the positive results in 2009, it’s clear needs to go in terms of organization, efficien- atives rose 22% last year compared to 2008, that the will of [small] producers is exceeding cy and discipline.” while over 40,000 people who have applied for the initial expectations,” the official added. ❑ Lugo Fonte, a member of the Council of permission from the government to use aban- State, Cuba’s supreme governing body, said doned lands under usufruct contracts are SUGAR PRODUCTION In million of tons there were “advances with a minimum amount devoting their efforts to cattle raising. of resources” in rice, milk, intensive bull rais- That increase is the result of a pilot pro- ing and pork that prove Cuba can increase gram carried out in more than half of the domestic food production — as Castro as country’s municipalities to promote efforts to urged, calling it a matter of national security. supply fresh milk to grocery stores as a sub-

Estimated LARRY LUXNER

Entrance to Jagüey Grande in Matanzas province, home to one of world’s largest citrus orchards. Rice, bean, milk production up uban rice production jumped 44.6%, dried Citrus crop edges up for first time in years beans 9.6% and milk 10.8% in 2009 as a Cfive-year government plan to boost out- uban citrus production rose 9.1% in million tons of mainly oranges and grape- put and reduce bulk food imports registered 2009 — the first increase in a decade fruit on 120,000 hectares, mostly destined its first results, Reuters reported Jan. 3, quot- Cthat saw storms, plague and disease for the former Soviet Union. The crop ing from Cuba’s National Statistics Office. decimate the once-robust agricultural sec- declined, then recovered, reaching 800,000 Consumable rice production was 300,000 tor, Reuters reported Jan. 3. tons in 2001, before beginning to fall again. metric tons, beans 106,500 tons and milk 587 Citrus output was 427,500 metric tons, Today, 80% of the crop is processed into million liters, compared with 207,500 tons, compared with 391,800 tons in 2008, accor- juice by five plants across Cuba, 5% export- 97,200 tons and 530 million liters in 2008. ding to the Oficina Nacional de Estadis- ed fresh and sold to the tourism industry, The cash-strapped regime has embarked ticas. That compares to 469,000 tons in 2007 and the rest used for domestic consump- and 797,700 tons in 2003. on a program to cut import costs by increas- tion, the Agriculture Ministry reported. ing the island’s food production and hopes to Local officials blame aging groves, hurri- The picking season runs from late canes and disease for the decline and have slash rice, beans and powdered milk imports said they are working to replant and reduce August through June, with grapefruit har- — staples of the Cuban diet — 50% by 2013. and spread out orchards. vested into December and oranges after Cuba imported 567,000 tons of rice in 2008, Cuba had reported continued drops in that. Israeli investors operating through most of it from Vietnam’s state-run Northern output through July when orange-picking Panama-based BM Group are heavily Food Corp. under preferential financial terms. season ended, indicating the improved per- involved in the sector. The island also imported from various formance was due mainly to grapefruit, har- Citrus products are Cuba’s No. 2 farm ex- countries 246,000 tons of dried beans and vested from August through December. port after tobacco, earning nearly $100 mil- 52,113 tons of powdered milk in 2008, accord- In the 1980s, Cuba was the world’s top lion. Fresh fruit and concentrate go to Eur- ing to government statistics. citrus fruit exporter, producing more than a ope as they are banned from U.S. markets. Details: Oficina Nacional de Estadisticas. URL: www.one.cu/panorama2009.htm. ❑ 12 CubaNews ❖ January 2010 vigilant in enforcing this settlement and in are still awaiting a decision on whose proposal BUSINESS BRIEFS pursuing other institutions and individuals is most attractive to the state-run consortium. who engage in similar illegal conduct.” LIME Jamaica confirms it’s still in talks with CUBANS SPEAK OUT AGAINST STATE CONTROL Without U.S. approval, the bank sent at least TGC, while Columbus Communications “Luchar” (fight for) and “resolver” (obtain) 40 outbound payment messages involving Jamaica and Digicel Group declined comment are words which in popular Cuban slang dis- Sudan, 30 for Burma and 32 related to Cuba, on the negotiations as of press time. guise illegal activities, corruption and diver- the document said. The 32 Cuba transactions The government says more linkages with sion of state resources. were apparently worth a total of $323,000. the world would bring down the cost of broad- Interestingly, in a recent letter to the editor Australia & New Zealand Bank Group Ltd. band, creating comparative advantage for the of Cuba’s Communist Party daily, Granma, paid $5.8 million in August to settle claims it country. one R.D. Macias Pérez argued that services broke U.S. sanctions against Sudan and Cuba. TGC was the sole bidder for the submarine — like shops, cafeterias and workshops — cable to be laid between Jamaica and Cuba, should not be under state management. JAMAICA LINKS INTO HAVANA-CARACAS CABLE with a spur to Haiti, which lies just west of the Instead, he wrote, “the state is supposed to two countries. The next step is for the licens- handle the big economic and social develop- Jamaican Prime Minister Bruce Golding has ee to build out its infrastructure. ment programs, industrialization, automatiza- signed off on the license to Telecomunicacio- Gran Caribe, which is 60% owned by Tele- tion, financial control and receive a feedback nes Gran Caribe (TGC) — a Venezuelan- com Venezuela and 40% by Cuba’s Telco in taxes from small business.” Cuban consortium — for a $70 million fiberop- Transbit, also plans to run 1,000 miles of cable What’s unusual is that this letter and several tic cable to link Havana, Kingston, Caracas from Maiquetía, Venezuela, to Siboney, in the others like it were published in December, and the rest of the world. eastern province of Santiago de Cuba. hinting at a possibly imminent change in the Jamaica’s Daily Gleaner reported Dec. 11 The Cuba/Venezuela leg is expected to link Castro regime’s self-employment policy. that the three operators angling for a partner- to Trinidad & Tobago and the Dutch-speaking Another letter, by N. Paez del Amo, support- ship with TGC to build the Jamaica-Cuba link island of Curaçao. ed Paez’s point of view. The author recalled that since 1968, when the government nation- alized small business, retail outlets and other small enterprises, this measure has been a breeding ground for illegal operations, rob- bery of state resources, inefficiency and mis- treatment of customers. LARRY LUXNER Small business does not pose a threat to the state, said Paez del Amo. In order to give new meaning to small enterprises, the reform must begin by “eliminating the double curren- cy system and the ration card, creating an income tax regime, decentralizing economic and commercial activity and introducing new forms of property in small enterprises.” In yet another letter published in Granma, A.P. Rodríguez González, a 1977 graduate in economic control at the University of Havana, called on the state to “unleash the productive Pedro Soto Alba refinery, a joint venture with Canada’s Sherritt, pollutes the skies near Holguín. forces, eliminate once and for all the sources of illegal profit, apply a tax policy that frees Cuba nickel output falls to lowest in a decade and not detains productive forces of thou- sands of workers who are not content at their uba’s unrefined nickel plus cobalt pro- Radio stations based in Holguin, where workplace and have to engage in more pro- duction came to between 60,000 and the three plants are located, reported that ductive activities, and eliminate absurd prohi- C65,000 tons in 2009 — the lowest in a production at the Cuban-owned Ernesto bitions that are currently a source of corrup- decade, according to Reuters, quoting radio Che Guevara plant, with a capacity of 32,000 tion and irritate the population.” reports in the eastern province of Holguín. tons, did not meet its 26,000-ton objective. Cuba produced 70,400 tons of unrefined There was no mention of output at the CREDIT SUISSE FINED FOR FLOUTING SANCTIONS nickel and cobalt in 2008, after averaging country’s third oldest plant, Cubaniquel’s Credit Suisse AG agreed to pay $536 million 74,000-75,000 tons for much of the decade. René Ramos Latour at Nicaro, whose capaci- to settle claims the bank helped process pay- While production at Canadian mining ty is reported to be 10,000 to 15,000 tons. ments that let Iran, Cuba and three other company Sherritt International’s nickel ven- Reports this year indicated Rene Ramos nations avoid government sanctions and gain ture in Cuba topped 37,000 tons, output at Latour and the feed process to the plant access to U.S. financial markets. two plants owned by state-run Cubaniquel were operating below-capacity at various Bloomberg reported Dec. 16 that the was well below capacity. times, so there were most likely production Zurich-based bank entered into a deferred Cuba has not announced this year’s nick- problems there as well. prosecution agreement in settling with the el output, with officials simply stating it was Hurricane Ike, a Category 3 storm, hit U.S. Justice Department, which said Credit less than the 70,000 tons planned. Cuba in September 2008 at Holguin’s north- Suisse made more than $1.6 billion in illegal The Caribbean island is one of the top ern coast, where the three processing plants transactions involving Iran, Cuba, Sudan, nickel producers on Earth, supplying 10% of are located, damaging the two Cubaniquel Burma and Libya from the mid-1990s through the world’s cobalt, according to Cuba’s plants, infrastructure, housing and buildings 2006. The agreement also settles claims by Ministry of Basic Industry. and swamping the area with torrential rains New York prosecutors, the Federal Reserve “The Pedro Soto Alba plant met the year’s and a storm surge. and the Treasury Department. plan, producing more than 37,000 tons of Cuba’s National Minerals Resource Cen- “The settlement we announce today ensures nickel, and remains open,” said Jorge Cue- ter says Holguín province accounts for over that Credit Suisse will not flout the law again vas Ramos, first secretaryof the Communist 30% of the world’s known nickel reserves, for its own financial gain,” U.S. Attorney Gen- Party in Holguín, told Radio Rebelde. with lesser reserves in other parts of Cuba. eral Eric Holder told reporters. “We will be January 2010 ❖ CubaNews 13 DEMOGRAPHICS MEDICAL BRIEFS CUBA TO SEND DOCTORS TO HAITI QUAKE ZONE Cuba reverses population decline Cuba will airlift doctors to Haiti to assist vic- BY OUR HAVANA CORRESPONDENT Not mentioning figures, Alfonso said emigra- tims of the 7.0-magnitude earthquake that tion held at similar levels to previous years. devastated the Port-au-Prince area Jan. 12. uba’s three-year downward population Cuban Foreign Minister Bruno Rodríguez trend concerns authorities so much that Cuba was expecting a return to population growth in 2009 as the relatively large group of said there were no reported deaths among Cthe news Cuba gained 3,467 inhabitants the 403 Cubans — including 344 physicians in 2009 was trumpeted in the Communist people born between 1984 and 1994 entered reproductive age (15 to 25 years old). and paramedics — living in Haiti, the poorest Party newspaper Granma earlier this month. country in the Western Hemisphere (see Yet it’s too soon to know if this is a real But the tremendous economic impact of 2008’s especially destructive hurricane sea- CubaNews, December 2003, page 14). turning point or merely symbolic. In fact, “We are working to send emergency med- Cuba’s official estimate of 11,239,566 inhabi- son (half million homes damaged and over 100,000 destroyed) froze those expectations. ical assistance to our sister republic,” he was tants at the end of 2009 is still 4,270 fewer quoted by Reuters as saying. “We will send a than the 11,243,836 head count in 2005 — the More importantly, the economic crisis that highest population on record. began in 1990 — when Cuba lost its main large quantity of medicines and will bring At 0.3 new people per 1,000 inhabitants, the trade partners and benefactors with the col- additional Cuban medical personnel to Haiti.” pace of growth is insignificant and it would be lapse of the Soviet bloc — is having a pro- Rodríguez did not specify how much medi- more appropriate to talk about a stagnant pop- longed impact on demographics. cine or how many doctors will be sent. ulation than a shrinking or an increasing one. Those conditions have sparked a sharp rise “At this moment, we are working out of two Carlos Alfonso is head of the Centro de Es- in emigration and a dramatic drop in the birth hospitals where our personnel are based. So tudios de Población y Desarrollo, under the rate. Over the past 15 years, half a million far this morning, we have treated 676 injured Oficina Nacional de Estadísticas (National Cubans have left the island, five times the people, doing mayor surgery and working Office of Statistics, or ONE in Spanish). He number of exiles from 1981 to 1993. intensively,” he told reporters. called the new numbers positive, but warned ONE expects Cuba’s population to reach Next month, CubaNews will carry an exclu- told Granma that it’s not really significant. 11,235,863 by the end of 2010 and then fall to sive analysis on the chances of Cuba being As shown in the charts below, since 2004 11,220,354 by 2015. struck by a similar earthquake. This report will the population has stabilized at around 11.24 As CubaNews has said before, an improve- contain maps, graphics and interviews with million — where it has remained basically ment in living standards — in an environment Cuban geologists. Watch for our February issue. of social stability and confidence, with unre- unchanged for the past six years. CUBA ENDS 2009 WITH 4.8 INFANT MORTALITY A much-awaited jump in the birth rate and strained economic rights and normal rela- a possible slowdown in emigration are tions with the United States and the powerful Cuba’s infant mortality rate in 2009 was 4.8 accountable for the change. Cuban exile community — could unleash a for each 1,000 live births, one of the lowest in Last year 130,294 newborns were regis- demographic boom by reversing emigration the island’s history, though not as good as the tered in Cuba, compared to 122,569 in 2008 and jump-starting Cuba’s birth rate. ❑ record of 4.7 in 2008. and 112,472 in 2007. The number of emi- Holguín province had the island’s lowest grants has not yet been released but consid- BIRTH, DEATH AND EMIGRATION RATE rates of infant deaths at 3.5 per 1,000, while 21 ering the number of newborns and the total Per thousand of Cuba’s 169 municipios registered zero number of deaths (90,549) in 2009, the differ- infant mortality. ence (36,278) is likely the number of people 12.9 12.6 In 1960, infant mortality was 37.3 per 1,000 who fled the island last year. births, 38.7 in 1970, 19.6 in 1980, 10.7 in 1990 That compares to 36,903 emigrants in 2008. Birth rate 11.6 and 7.2 in 2000, according to official statistics. 9.9 POPULATION In millions POPULATION GROWTH RATE Per thousand

After falling consistently 11.24 for two decades, the birth rate bottomed since 2008 as a new generation arrived to reproductive age. 11.22 Meanwhile, a growing death rate (a normal process as the population gets older) and emigration rate offset 11.20 any birth rate gain.

11.18

11.16 -2.6 Emigration rate -3.3

11.14

11.12 Death rate

-6.6 -7.5 11.00 -8.1 14 CubaNews ❖ January 2010 ARTS & CULTURE Regime cracks down on Omni counterculture performers BY TRACEY EATON socialist criticism,” the letter said. “Revolution ers who have emerged, said Marie Laure oing headstands in public — naked — and culture make sense only if they are syn- Geoffray, a Cuba expert at the Institute of didn’t get members of Omni-Zona onymous with criticism and creation.” Political Science in Paris. DFranca into trouble. Neither did fling- Cuban officials didn’t comment on the letter. “You have to take into account the general ing themselves into piles of garbage and pre- On June 30, 1961, Fidel Castro told Cuban atmosphere in Cuba right now,” Geoffray told tending to be human trash. Or putting a poet intellectuals: “Within the Revolution, every- CubaNews. “For the past year, bloggers have on sale as if he were sandwich meat. thing. Against the Revolution, nothing.” Over been popping up almost everywhere in the None of that raised the ire of Cuban author- country. Plus, the economy is going from bad ities. But in recent weeks, the counterculture to worse. So the elites are putting pressure on group evidently went a bit too far and Cuban the known alternative groups as well as harsh- ly repressing dissidents because they don’t authorities on Dec. 11 booted Omni from a know how to handle them differently.” state-owned workshop it had occupied for Geoffray said Raúl Castro may be “less than a decade. The eviction came just days open to intellectual and artistic experimenta- before Omni was to begin its big annual tion and is not willing to take risks while the event, Poetry Without End. country is undergoing a severe economic cri- The group scrambled to move the festivi- sis. So the way he treats that kind of alterna- ties to members’ homes and garages, salvag- tive group is different than his brother’s. ing the two-week-long event. But that episode “But we don’t know if Raúl Castro himself and others prompted complaints that the or the government really are responsible for socialist government was clamping down on what happened, or if it is state security or dissent, even from “within the Revolution.” other authorities,” she said. More than 40 of the island’s top intellectu- Bolder alternative voices, Geoffray warned, als, professors, writers and others signed a could “threaten the fragile and precarious bal- Dec. 18 letter citing “a climate of increased ance” that had existed between countercul- bureaucratic-authoritarian control” in Cuba. ture groups and the authorities for a decade. “If capitalism is the power of capital against ordinary people, then we are against capital- OFFICIALS UNSURE WHAT TO MAKE OF OMNI ism,” the letter read, and if ‘socialism’ is the Omni members say they certainly aren’t power of a bureaucracy against the rest of so- Omni performer sings in Havana’s Alamar district. dissidents. “Our only politics is that of poet- ciety, then we are also against this socialism.” ry,” according to their statement. “We favor The letter cited Omni’s expulsion along the years, that philosophy led Cuban officials dialogue, world peace and unity. Art is the lan- with eight other instances of what it called in- to support even some artists and musicians guage we speak. Friendship is our power. tolerance and obstruction of social initiatives. who were critical of the government. Inner peace is the source of our happiness.” The government’s tendency to regard those Today, officials likely have concerns about The group defies description, said Arman- who think or act differently as dissidents or the “new and expanding”range of “bloggers, do Chaguaceda, a Cuban journalist in Mexico. ‘mercenaries’ leaves “very little space for rappers, alternative artists, rockers” and oth- “When I met them several years ago, I couldn’t quite figure them out. They seemed half-crazy — these ‘black hippies’ dressed in tunics, skirts and sometimes turbans or con- struction helmets. These were the folks who stopped traffic and pedestrians with their irreverent performances, with their medita- tions inside that multicolored home-workshop PHOTOS/TRACEY EATON and their productions of creative chaos, in plain sight of everybody.” Omni was created in 1997 in Alamar, a town of concrete-block apartment buildings east of Havana. The group has carried out more than 200 street performances over the past decade. “I think they have a relatively wide audi- ence in Alamar and among artistic youth who know them and identify with their poetic work," Chaguaceda told CubaNews. “I don’t think they have political ideas, beyond defend- ing their identity and promoting dialogue, peace and love among all people.” Members rap and chant, they act and sing. They cover their bodies in paint or newspa- pers. They pound out rhythmic tunes on decades-old typewriters. They wear miner’s helmets, construction hard-hats and even kitchen pots on their heads. They say one of their goals is to interrupt Members of Omni-Zona Franca lock hands and roll on the floor during an hours-long excercise ses- sion in Havana. They say their performances are aimed at finding spiritual peace through exercise. See Omni, page 15 January 2010 ❖ CubaNews 15 ARTS & CULTURE INTERNATIONAL BRIEFS ALBA LAUNCHES ‘SUCRE’ VIRTUAL CURRENCY Havana’s touristy Tropicana turns 70 The new regional currency known as the BY OUR HAVANA CORRESPONDENT Some of its notable visitors included Nat sucre (a Spanish acronym for “unified system King Cole, Josephine Baker, Los Chavales de for regional compensation”) will take effect at ne out of every 10 foreign visitors to the end of January, said Alí Rodríguez, Havana — nearly 250,000 — books a España, Carmen Miranda, Liberace, Maurice Chevalier and Marlon Brando. Venezuela’s minister of economy and finance. Onight at the world-famous Tropicana, The decision to enact the regional currency Among Cuban-born entertainers who fre- which on Dec. 30 celebrated its 70th birthday. was taken during the recent ALBA Summit The cabaret is really a woman with three quented the Tropicana: Rita Montaner, Ignacio Villa (Bola de Nieve), Celia Cruz, held in Havana, and will be valid for use in the men: Víctor de Correa, an Italian-Brazilian nine ALBA member countries. who gave it a name and grandeur; Martin Olga Guillot and Chano Pozo. The Tropicana’s Salón Dorado, which was The first commercial transaction using the Fox, who financed it through illicit gambling sucre —a virtual currency that replaces the proceeds, and architect Max Enrique Borges, the casino, no longer exists. It was closed in 1959 like all other casinos. Yet the dancers dollar in commercial operations— will be who designed the Tropicana at the age of 33. used for exporting Venezuelan rice to Cuba. The queens of the night — the best of themselves have performed around the world, including New York’s Waldorf-Astoria, ALBA, launched in Havana in 2005, claims Cuban mulattas as journalist Ciro Bianchi de- to “challenge the hegemony of neoliberal inte- scribes these women seen only in magazines the Sporting Club of Monte Carlo and the Royal Albert Hall of London. gration and provide an alternative to the pro- — come out from a backdrop of exuberant posed Free Trade Area of the Americas, palm trees and star-studded sky, hence its Current visitors, most of them from Europe and Latin America, no longer enter the club focusing on the market as the source of effi- slogan, “Paradise Under the Stars.” ciency and economic growth and prosperity.” In its heydey, the cabaret was known as the dressed elegantly and clad in expensive jew- most attractive and sumptuous nightclub in els. They dress informally and arrive in tour UGANDA SENDS OIL WORKERS FOR TRAINING the world. One year after its inauguration in buses. And one contradiction remains: be- 1939, the club began to be called Tropicana, cause it’s so expensive, few Cubans are ever Uganda, where commercially viable crude after a melody of that name by Alfredo Brito. seen enjoying themselves at the Tropicana. ❑ deposits have been found, will send oil work- ers to Cuba for training, Bloomberg reported Dec. 5, following a four-day visit to Cuba by Ugandan President Yoweri Museveni. Tullow Oil PLC and Heritage Oil PLC have discovered 700 million barrels in Uganda’s

LARRY LUXNER Lake Albert Rift Basin, according to Tullow. CUBA BEGINS REPAYING MEXICAN DEBT Cuba restarted payments to Mexican expor- ters in November after halting transfers for eight months of 2009, said Mexican officials who accompanied Foreign Minister Patricia Espinosa in her recent visit to the island. Among other things, Espinosa and Raúl Cas- tro discussed the bilateral debt and the next visit of President Felipe Calderón to Havana. Mexico’s efforts to seek payments for its exporters are part of Calderón’s plan to boost trade with Cuba and to improve relations that “Dancing Under the Stars” at Havana’s Tropicana cabaret, which marked its 70th birthday on Dec. 30. were strained under former President Vicente Fox, said Rogelio Granguillhome, head of eco- them on the Internet for everyone to see. nomic relations at Mexico’s Foreign Ministry. Omni — FROM PAGE 14 On Nov. 6, Omni member Luis Eligio and Mexico exported $310 million in goods to Cubans’ everyday lives and make them think. two members of the underground rap group Cuba in 2008, up from $190 million in 2007, In one performance, Omni members dis- Los Aldeanos organized a march in Havana. making it Cuba’s 11th largest trade partner. Participants carried signs reading “For the fu- played an artist as a piece of grilled meat. KUWAIT FINANCES HOLGUÍN WATER WORKS “Poet on bread,” they called it. Brain food. ture of our children” and “No more violence.” On another day, members lay quietly in The authorities prevented blogger Yoani Representatives from Cuba and the Kuwait piles of uncollected trash, their arms and legs Sánchez and several others from joining the Fund for Arab Economic Development signed demonstration. Sánchez later said she was an accord on Nov. 21 for a joint project to sticking out of the garbage at odd angles, a picked up off the street, shoved into a car and way of telling authorities to clean up the mess. rehabilitate Holguín’s municipal aqueduct. roughed up before being freed. Castro loyal- The $15.2 million package will be used to Officials aren’t always sure what to make of ists dispute that version of events. set up main and secondary water lines and the group’s performances. In any case, Omni members “have become pumping stations; repair three waterworks In 2001, Omni member Amaury Pacheco closer to Yoani and the blogosphere lately,” plants and build a new one, and purchase went to Cienfuegos, put on a battered overcoat Geoffray said. Their role in the march might water tanks for the city. and stood silently holding a sunflower. He also “be considered as crossing the line Ghanem Sulaiman al-Ghenaiman, deputy attracted a big crowd — and the police, too. because for the first time they were not organ- director-general of KFAED, said his institution Officers loaded Pacheco into a patrol car and izing a crazy performance. They invited peo- is ready to contribute with other infrastruc- took him away for blocking traffic. ple to join and many people did join. ture projects throughout Cuba. Back then, Omni’s performances went “I guess this really scared the authorities,” Details: Ghanem Sulaiman al-Ghenaiman, largely unnoticed outside Cuba. But the group she said. “They might have thought of the Deputy Dir. Gen., Kuwait Fund for Arab Eco- has gotten more attention lately as members German Leipzig scenario — silent marches nomic Development, Safat 13030, Kuwait. Tel: record their street performances and put every Monday until the Wall fell.” ❑ +965 2 299-9000. URL: www.kuwait-fund.org. 16 CubaNews ❖ January 2010

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