Vol. 15, No. 2 February 2007

www.cubanews.com

In the News Commerce Secretary Carlos Gutiérrez: Bush won’t budge on anti-Cuba policy House on the move Democratically controlled Congress pro- BY LARRY LUXNER their freedom through democratic change — and not do them a great disservice by legitimiz- poses a raft of new Cuba bills ...... Page 3 hose hoping for some hint that the Bush administration might be willing to soften ing a successor regime and helping it maintain its policy on Cuba were sorely disappoint- its tight grip over the Cuban people.” Tourism takes a dip T Gutiérrez, former chairman and chief execu- ed Feb. 21, when U.S. Commerce Secretary tive of Kellogg Co., joined the president’s cabi- 2006 visitor arrivals fall 3.6% as Cuba loses Carlos Gutiérrez made it clear that nothing will net in 2005. As secretary of commerce, he over- its competitive price edge ...... Page 3 be changing anytime soon. sees an agency with some 38,000 workers and a Gutiérrez, speaking before 200 participants at $6.5 billion budget. Fridges for the masses a Council of the Americas conference in Wash- The highest-ranking Cuban-American in the ington entitled “Cuba After Fidel,” said the Bush administration, Gutiérrez also co-chairs China’s Haier begins assembling refriger- White House would resist pressure by mem- the president’s Commission for Assistance to a bers of Congress as well as pro-business lobbies ators for local consumption...... Page 4 Free Cuba, along with Secretary of State and some Cuban exile groups to ease restric- Condoleezza Rice. tions on food sales to Cuba as well as Cuban- He insisted in his half-hour speech — which Havana Club American family travel to the island. ended with the traditional ¡Viva Cuba libre! — Havana Club opens new distillery, expects “Cuba is at a critical point in history,” said the that “the embargo is not the problem, but rather Havana-born Gutiérrez, 53, who came to this Cuba’s repressive communist system, and the 5m cases in exports by 2013 ...... Page 4 country in 1960, one year after Fidel Castro took only solution is to change the system.” power in Cuba. “The country is poised for Several pieces of legislation now making their Eco-dilemma change, and the policy of the Bush administra- way through Congress call for a relaxation of What’s really being done to stop Cuba’s tion has been to help the Cuban people achieve See Gutiérrez, page 2 environmental degradation ...... Page 7 Latest figures prove Cuba’s population Café con piña Coffee production up 65% while pineapple is shrinking for the first time since 1980 crop has seen better days ...... Page 9 BY OUR HAVANA CORRESPONDENT topics, was previously handed in late December Cuba Absolutely or the first time since the 1980 Mariel to the participants of the National Assembly boatlift, according to official statistics, gathering as a preliminary economic update for European investors quietly launch glossy F Cuba’s population has fallen. the year 2006. new annual Cuba magazine ...... Page 10 By the end of 2006, according to statistics In Cuba’s historical records, only in 1980 and released by the Oficina Nacional de Estadisticas in the late 19th century — as a result of Cuba’s Business briefs (ONE), Cuba had 11,240,121 inhabitants — war of independence against Spain — has the 3,715 fewer than the 11,243,836 calculated a population fallen. In both cases, the shrinkage Venezuela, Cuba ink 16 new joint ventures; year earlier. was a momentary blip in the overall positive trend, and was rapidly offset as normal growth 10% growth predicted in 2007 ....Page 12 While that difference represents a mere 0.03% of the total, the absolute drop in number resumed. — for the first time in 26 years, and without any Also in the summer of 1994, right after the Provinces: Matanzas sudden exodus of Cubans off the island — must rafter stampede to Florida, the island lost 37,000 people over the course of a few weeks, the Cuba’s 2nd-largest province leads in tour- have raised a few eyebrows of authorities and experts in Havana. year’s population balance ended presumably in ism, citrus and hydrocarbons .....Page 14 Last month, ONE reported these figures in its the red too. But the imprecise records of the Panorama Económico y Social Cuba 2006 which period make it difficult to draw any conclusion. CubaNews (ISSN 1073-7715) is published monthly is accessible at www.one.cu/publicaciones- This time, the shrinkage is not an oddity. It by Luxner News Inc. © 2007. All rights reserved. /ultimas/panorama2006.pdf. follows some 15 years of a gradual slowdown Subscriptions: $429 for one year, $800 for two years. A copy of this report, which also covers an leading to stagnation in population growth, from For editorial inquires, please call (301) 452-1105 1.2% annual growth in the late 1980s to a sudden or send an e-mail to: [email protected]. overview of the economy, the budget, employ- ment, foreign trade, health, education and other See Population, page 6 2 CubaNews ❖ February 2007 strongly backed by the American Farm hold power.” Gutiérrez — FROM PAGE 1 Bureau Federation. Asked by CubaNews whether the White the embargo. These range from a bill co-spon- The Moran-Emerson bill contains four pro- House would consider easing rules restrict- sored by Reps. Jeff Flake (R-AZ) and Charles visions supported by AFBF. These are: ing Cuban-American travel to the island, Rangel (D-NY) that would lift a ban on tourist ■ Allowing individuals making agricultural Gutiérrez made it clear there would be no trips to the island by U.S. citizens, to an unre- sales with Cuba to travel on a general license. changes, even though that’s exactly what lated measure co-sponsored by Reps. Bill ■ Issuing visas to Cuban inspectors to enter many Cuban-American exile groups in Miami Delahunt (D-MA) and Ray LaHood (R-IL) that the U.S. to inspect processing facilities;. are now demanding. would end all restrictions on family visits to ■ Clarifying payments of cash in advance; “We believe passionately that our policy is the communist-ruled nation. ■ Allowing direct wire transfers from Cuba correct,” he replied. “When you travel to “Being in the majority, I think we can be financial institutions to those in the U.S. Cuba, a great deal of your money leaves your successful this year,” Rangel told Bloomberg “There are considerable restrictions placed hands at the airport. This becomes a source News Service. Speaker Nancy Pelosi of Cali- on U.S. agricultural sales to Cuba which im- of dollars for the regime and never really goes fornia, Majority Leader Steny Hoyer of Mary- pede our marketing efforts and sales to that into the economy or into the hands of the land, and all but one of the new House com- country. This legislation would remove those average Cuban.” mittee chairmen vot- ed in the past for eas- ing the embargo, ac- cording to Kirby Jones of the US-Cuba Trade Association. LUXNER LARRY “We will not work with a regime that is a declared enemy of the “What has changed is that the people United States and is opposed to every value we hold sacred.” whose names are on — CARLOS GUTIÉRREZ, U.S. SECRETARY OF COMMERCE these bills now are powerful people, be- cause they chair com- mittees and run the mechanisms of the Carlos Gutiérrez costly barriers,” said AFBF President Bob Gutiérrez added that the transfer of power House, and deter- Stallman. from Fidel Castro to his younger brother Raúl mine the rules of the debate — all of which He vowed that “AFBF will continue its work won’t have any effect on the administration's are factors that worked against our side last with Congress to pass legislation to eliminate hard line against Cuba — despite Raúl’s calls time,” said Jones, president of the Washing- these costly restrictions on agricultural sales for a normalization of relations between ton-based association, which speaks for 55 to Cuba. Such restrictions adversely affect Washington and Havana. U.S. companies and organizations. markets and are an inappropriate tool for the “Changes will not take place under Fidel or Jones told CubaNews that “Lincoln Díaz- implementation of foreign policy.” Raúl Castro. It is naive to believe otherwise,” Balart was No. 2 in the House Rules Commit- GUTIÉRREZ: U.S. IS NOT STARVING CUBA he declared. “We are doing everything we can tee, and now [that slot is taken by Louise] to get the word out that it would be a tragic Slaughter of New York, who has a perfect vot- U.S. agriculture sales to Cuba have totaled mistake to recognize a successor regime in ing record as far as we’re concerned. In fact, $1.4 billion since 2000. Last year alone agri- Cuba. We will not work with a regime that is a nearly every chairman of every committee cultural sales totaled $350 million, up from declared enemy of the United States and is has a perfect record on Cuba issues, meaning the previous year. Alimport, Cuba’s official opposed to every value we hold sacred. Fidel they’ve voted to change our Cuba policy food purchasing agency, claims it has con- has repeatedly demonized the United States, every chance they could.” tracted for over $2 billion in U.S. agricultural blaming us for the failures of his policies.” Jones added: “If the Rangel bill passes and commodities since 2000, with 2006 sales arrives on George Bush’s desk, he would veto alone coming to $544 million. CUBA CORRUPT TO THE CORE UNDER CASTRO it. But that is probably not going to happen, Yet the pro-business Gutiérrez doesn’t Gutiérrez, who during his 30-year career at because it will be attached to a bigger bill, and seem too eager to see those numbers increase. Kellogg gradually worked his way up from then it becomes dicey for the president.” “To those who suggest that Cuba is a vast sales rep to chief executive — becoming the untapped market for U.S. goods, and that lift- youngest CEO in the breakfast cereal compa- DELAHUNT: BAN IS ‘STUNNING IN ITS CRUELTY’ ing the embargo would be a boon to foreign ny’s nearly 100-year history — derided Fidel In 2004, the Bush administration restricted trade, I say foreign firms will not flourish on Castro for “destroying an opportunity for the Cuban-American visits to their relatives from the island as long as a communist system Cuban people” to make lives for themselves. once every year to once every three years. remains in control,” he told his Washington “There is a culture of widespread corrup- Only visits to close relatives were allowed, audience, which included the ambassadors of tion, and Cubans have to skim off the top just among other limitations. Costa Rica, Colombia and Hungary. to survive. They live on the margins, and they Under the Delahunt-LaHood proposal, “Some maintain that by maintaining the resolve to get by wherever they can. Tools there would be no caps on the amount of embargo, the U.S. has made the situation on disappear from government worksites so peo- money Cuban Americans could take to their the island worse. That is flat wrong, and we ple can attempt to earn some income as cob- relatives on their trips to Cuba. have 48 years of history now to prove that,” blers and handymen,” he said. Delahunt, calling the Bush policy “stunning he claimed. “After the fall of the Soviet Union, when the in its cruelty,” said he had no indication from GDP dropped by nearly one-third, the regime NO ROOM FOR NEGOTIATION WITH RAÚL the Democratic leadership if the bill’s consid- began selectively issuing permits to allow pri- eration would be expedited. “The U.S. has been a major source of vate enterprise to offset economic losses. He supports other initiatives to lift econom- humanitarian aid to Cuba. In fact, we provide “Yet when the economy looked like it was ic restrictions on Cuba but believes his initia- one-third of the island’s food and medicine. So beginning to improve somewhat, the experi- tive was a “stand-alone bill that both sides of the question is not when will the U.S. change ment with capitalism was halted. I believe that the aisle can support.” its policy. This is the wrong question. Castro saw this newfound independence as a In addition, Rep. Jerry Moran (R-KS) has “The question is when will the Cuban threat to his power. After all, the most effec- introduced legislation — along with Jo Ann regime change its policy. Years of foreign tive way for a communist dictator to hold onto Emerson (R-MO) to ease payment restric- investment have not improved the lives of tions on cash sales of food to Cuba, a bill average Cubans, only the lives of those who See Gutiérrez, page 10 February 2007 ❖ CubaNews 3 US/CUBA RELATIONS Fidel’s illness spurs Congress to push for end to sanctions BY ANA RADELAT Cuban-American travel restrictions, with little bol of something that could not be tolerated,” ven as the White House refuses to success. said Thompson, who is black. change its policy toward Havana, Fidel “Almost five decades of status quo politics But more modest bills that would ease trav- ECastro’s continued illness is encouraging have only served to divide families and el and trade restrictions are expected to have lawmakers to move quickly on a series of bills ensure the stability of the regime,” said Joe the greatest success. that would ease U.S. sanctions against Cuba. Garcia, a former director of the Cuban Ameri- Flake and Sen. Larry Craig (R-ID) plan to Rep. Charles Rangel (D-NY), new chairman can National Foundation and now executive re-introduce legislation that would allow Cuba of the House Ways and Means Committee, director of Washington-based NDN. to purchase oil drilling equipment from introduced his perennial legislation that While legislation to weaken the embargo American manufacturers. would lift the entire embargo as well as a has won majority support in Congress before, Flake said that would ensure this Cuba and more modest bill that would end the embar- President Bush’s vow to veto the legislation its joint venture partners — China, Spain, go’s travel restrictions. had always kept it from final approval. Canada, India and other nations — would use Reps. Jo Ann Emerson (R-MO), Stephanie But Delahunt now says he’d be “very sur- the most environmentally sensitive equip- Herseth (D-SD), Jerry Moran (R-KS) and prised” if Bush vetoed his legislation. Other ment available when they drill an area just 60 Mike Ross (D-AR) introduced a bill Feb. 15 lawmakers also suggest Fidel Castro’s death miles from Florida’s shores that is known as that directs the U.S. Treasury Department to or his continued illness would make Bush the North Cuban Basin. less eager to reissue his veto threat. issue general licenses to farmers who want to The area is a promising field, estimated to travel to Cuba, and allow temporary visas to FLAKE: ‘AN IRRATIONAL POLICY’ contain 4.6 billion to 9.3 billion barrel of oil, as well as large quantities of natural gas. be issued to Cuban technicians so they could And an expected increase in support on “If you can’t stop the drilling, you want to inspect U.S. chicken processing plants and Capitol Hill for re-engagement with Cuba — make sure it’s done in the safest way possi- other agriculture facilities. especially now with Democrats in control of ble,” Flake told us. The bill would also reverse a Bush admin- both the House and Senate — may result in istration requirement that the Cuban govern- veto-proof majorities for legislation that would CUBAN ECONOMY STRONG ment pay cash to U.S. food exporters before ease travel and trade restrictions. Ironically, while Castro’s continued illness shipments leave the United States. Rep. Sam Farr (D-CA), a member of the helps the political climate in Congress to ease It would allow Cuban financial institutions House Agriculture Committee, has encour- Cuba sanctions, it comes at a time when the to make direct payment to U.S. banks. Cuban aged farmers to “come back to us with details Cuban government, now headed by Raúl Ca- officials say using third-party intermediaries on what we can attack” on the restrictions. stro, may have diminished interest in new has driven up the cost of buying American “You certainly have a number of members openings toward the United States. farm products. of Congress who have humored the Bush Thanks to a sharp rise in nickel and cobalt administration in this irrational policy who prices, free Venezuelan oil and new invest- SEVEN MONTHS OF UNCERTAINTY will be less inclined when Castro is gone,” ments by the Chinese, Cuba’s GDP rose Another member of the House Cuba Work- Rep. Jeff Flake (R-AZ) told CubaNews. about 8% last year, according to the CIA (the ing Group, Rep. Bill Delahunt (D-MA), has Like Rangel, Rep. Bennie Thompson (D- Cuban government claimed growth of 12.5%). filed a bill that would allow Cuban-Americans MS), new head of the House Homeland Secu- “I sense a confidence that wasn’t there to visit their families in Cuba without restric- rity Committee, wants to lift the entire embar- before,” said Kirby Jones, president of the US- tions — reversing a Bush administration poli- go. Thompson said a delegation of Mississip- Cuba Trade Association. “They’re saying ‘you cy that limited such trips to once every three pi farmers that traveled to Cuba with him in guys can continue with the embargo — we’re years and to immediate family only. 2005 “saw a lot of potential.” He says Castro’s dealing with the rest of the world.” As Fidel’s chances of returning to power permanent departure from power would The improved economy also makes it easi- have dimmed — he stepped down from power make it easier to debate the end of sanctions. er for Raúl to avoid sweeping reforms, said nearly seven months ago — a number of exile “In some ways, he was for some people like Flake, adding that “by all accounts, they are groups lobbied President Bush to end the the rebel flag is for African-Americans, a sym- under less pressure to change.” Tourism arrivals to Cuba fall 3.6% in 2006 — first drop since 9/11 he number of tourists visiting Cuba dipped 3.6% last year due to The Canadian Association of Tour Operators warned Cuba last year high prices and not uncertainty over Fidel Castro’s health, that it was losing out to other Caribbean destinations due to the lack of T according to travel industry sources quoted Jan. 25 by Reuters. adequate service for tourists, theft of luggage at airports and hotels, A tour operator in Havana reported only one cancellation — by a and a failure to attend to complaints. group of Russian tourists — due to fears of political turmoil if and Despite the recent slowdown, Spain’s Sol Meliá hotel conglomerate when the ailing Castro dies. has announced the opening of its 24th property in Cuba, and its 8th in Official statistics show that 2.2 million tourists visited Cuba in 2006, Varadero: the five-star Meliá Las Antillas, with 350 rooms. down from 2.3 million in 2005 — marking the first drop since the As part of its renovation program, Sol Meliá hopes to offer “a supe- Sept. 11 terrorist attacks in the United States. rior product, with more personalized service, a variety of vacation des- Canadian tourism, the source of 27% of Cuba’s arrivals or about tinations, creative entertainment and an exquisite selection of fine cui- 600,000 a year, dipped for the first time in years. The number of sine,” said Ida Tamborrino, director of resorts for Sol Meliá Cuba. tourists visiting Cuba from Spain, Italy, Germany and France declined The chain has a 37% market share in Cuba, and accounts for 22% of last year, while Britain became Cuba’s second market after Canada. the island’s 44,000 hotel rooms. “Cancún and the Dominican Republic offered better deals,” a Cana- Meanwhile, Tribuna de La Habana says the 397-room Meliá Habana dian diplomat told Reuters. Tour operators said Cuba lost its compet- — located in Havana’s Miramar district — will undergo a total renova- itive edge when it revalued its currency by 8% in 2005. They said tion. Among other things, the hotel’s Servicio Real executive service tourists get more quality for their money elsewhere. will be expanded to encompass 98 suites on the 7th, 8th and 9th floors. 4 CubaNews ❖ February 2007 FOREIGN TRADE China’s Haier Group keeps Cuba stocked with fridges BY VITO ECHEVARRÍA the island — a sizeable number considering name. The 21-inch and 29-inch TV sets appar- ne year ago, when the Cuban govern- Cuba’s population of 11.2 million. The units ently equipped with such applications as a cal- ment decided to buy energy-efficient are being made available to Cuban families by endar, timetable, message device, alarm clock Orefrigerators as part of its nationwide the government at subsidized prices. and phone book. “Energy Revolution” initiative to slash electri- CubaNews attempted to contact Haier’s In addition, the local industry will assemble city consumption, it chose the Haier Group — head office in Shanghai to get more informa- Panda washing machines, with Cuba manu- China’s only internationally known appliance tion on the deal, but Sun Yongle, market man- facturing the plastic parts. It’s unclear where on the island these appliances will be made. manufacturer — to supply the local market. ager in charge of Haier’s Cuba business, told us in an e-mail: “I am afraid that the questions Despite Haier’s refusal to discuss dollar fig- In March 2006, Zhou Yun Jie, the compa- ures, press reports assert that Cuban con- ny’s vice-president, presided over a ceremony you asked are all involved with confidential issues. We cannot share with you the details.” sumers are paying as much as $286 per unit along with Cuba’s minister of government, (all prices in U.S. dollars). In some cases, Ricardo Cabrisas, and Ramiro Valdés Menén- In particular, Yongle did not want to say how much the Cuban government paid for the cash-strapped Cubans are reportedly taking dez, president of Cuba’s Grupo de la Electró- out loans to finance these purchases. nica. The event marked the first consignment refrigerators. Assuming that figure is correct, the Haier of Haier refrigerators from its factory in Besides the fridges, Haier is also assemb- refrigerator deal would be worth over $85 mil- Qingdao, China, to Cuba. ling one million TV sets in Cuba, using Chi- lion at retail prices. Cuban exiles who want to Haier eventually shipped 300,000 fridges to nese components under the Atec-Haier brand buy their relatives a refrigerator often turn to shopping websites like Montreal-based Antillas-Express.com, where prices for Sam- High-flying Havana Club opens rum distillery sung and other models range from $335 to over $500. Incredibly, the same site is selling BY LARRY LUXNER Impact, an industry newsletter published LG-brand refrigerators from $615 to $1,500. Havana Club International (HCI), the in New York, reported Feb. 1 that Havana In addition to Haier’s competitive pricing, French-Cuban joint venture that pro- Club has seen average annual compound the Cuban government newspaper Granma Oduces and markets Havana Club rum growth rate of 11.6% between 2000 and has already claimed that energy-efficient around the world, has inaugurated a new 2005, and growth of 12.5% from 2005 to appliances like those provided by Haier are a distillery at San José de las Lajas, 20 miles 2006. That made Havana Club the 13th contributing factor to stabilizing the island’s east of Havana. fastest-growing premium spirit in the world. electricity consumption. Cuba, which has The new $66 million plant is said to be the Havana Club now ranks No. 2 among all experienced constant blackouts, had far fewer most modern in Cuba and one of rums in Europe, thanks partly to a power cuts in 2006. the largest in the world, ac- marketing campaign that associates Haier, China’s largest appliance maker, had cording to Manuel Arias, HCI’s the brand with Cuba’s vibrant music $2.1 billion in sales last year. Its U.S. sub- director of domestic sales. and culture, says the Sun-Sentinel. sidiary operates a 110-acre industrial park in An article in the state-run Havana Club claims it is now the South Carolina, where it produces refrigera- business magazine Opciones top-selling liquor in Italy, outpacing tors for Wal-Mart, The Home Depot, Lowe’s, quoting Arias said exports of Bacardi and all other kinds of spir- Best Buy and other large retailers. Havana Club may reach 5.0 mil- its. The brand also is strong in Is Haier therefore exposing itself to Helms- Spain and growing fast in Ger- lion nine-liter cases by 2013, up Burton violations by manufacturing in Cuba? from last year’s 2.6 million cases many. Global sales likely topped $200 million in 2006, with profits up Steve Pinter, an attorney with the — which includes around Washington-based Eren Law Firm, says no. 900,000 boxes sold in Cuba. 20%, industry analysts said. Arias noted that for the first “If Haier America [headquartered in New Sales are so brisk that industry York] is the division selling appliances to tracker IWSR of London recently time, Havana Club sold more than 100,000 cases locally in a single Cuba, it would be a violation of the Cuban named the brand the fastest-grow- Assets Control regulations administered by ing internationally in the decade month — in December 2006. “Sales registered their highest OFAC. It would be a massive enforcement ending in 2005, the South Florida matter under the Trading With the Enemy Sun-Sentinel reported Feb. 12. gains in grocery chains across Cuba, which means that our Act, a possible criminal case and would cer- Havana Club rum sales jumped tainly entail heavy civil monetary penalties, 16.4% during the period, ISWR said Añejo Blanco, 3 Años, Especial and 7 Años brands are being because Haier America is a ‘U.S. person’ with- in its Elite Brands List. in the meaning of the OFAC regulations,” Havana Club is now 79th on the acquired by Cubans who appre- ciate the quality of our interna- Pinter told CubaNews. Impact list of top 100 spirits brands “But this scenario would not be a Helms- worldwide, right behind Skyy vodka tionally famous rums.” Arias added that “Cuba is pre- Burton issue. The U.S. government has juris- (made by Campari) and just ahead of diction over Haier America, not over the Da Roca, a Brazilian aguardiente pared for the day when the criminal U.S. blockade against our is-land Chinese [parent] company,” he said. made by Caninha da Roca Industria e In any event, Haier America doesn’t seem Comercio Ltda. — which we’ve had to live with for more than 40 years — is broken, and you’ll be too concerned about maintaining a low profile Bacardi, by comparison, ranks sixth on in the United States — far from it. the top 100 list, with 2006 sales of 19.3 mil- able to drink Havana Club in every country in the world without exception.” The company’s U.S.offices are located at an lion cases — a drop of 0.5% from 2005 sales attention-grabbing landmark building in mid- of 19.5 million (topping the list, by the way, Details: Philippe Coutin, Director-General Havana Club Int’l, Pernod Ricard, 2 rue de town Manhattan. Haier America also made is South Korea’s Jinro, with 2006 sales of international news when it, along with U.S. 67.8 million cases). Solferino, 75007 Paris. Tel: +33 1 4411- 7720. E-mail: [email protected]. private equity firms, made a failed 2005 bid to buy the long-established U.S. appliance brand Maytag for about $1.3 billion. February 2007 ❖ CubaNews 5 POLITICAL BRIEFS

AP SURVEY: MOST AMERICANS WANT US-CUBA TIES In their own words … Sixty-four percent of Americans recently polled “We hope that the European Union will continue to work with the Cuban by the Associated Press say they don’t like Fidel government so that there will be improvement in some things that have been Castro, while nearly as many — 62% — think the a little difficult. That’s the important thing, that we maintain a dialogue.” United States should re-establish diplomatic rela- — Sylvia Heal, deputy speaker of Great Britain’s House of Commons and Labor tions with Cuba. Nevertheless, 48% of those MP, urging Brussels to build on common ground with the Castro regime. polled said the U.S. government should continue its trade embargo against Havana. “Gary Marx is an accomplished, veteran journalist who has consistently While it’s no surprise that 89% of respondents given our readers accurate, incisive an insightful coverage from Cuba, working think Cubans will be better off or about the same under sometimes difficult conditions. We remain committed to coverage of once Castro is gone, it is a bit of a shock that 27% Cuba and its people, and we are assessing our options of how to proceed.” didn’t know enough about Fidel to form an opin- — George de Lama, managing editor of the Chicago Tribune, after Cuba said Feb. ion — despite the millions of dollars the U.S. has 21 it would not renew Marx’s credentials because his stories were “too negative.” spent over the years trying to undermine him. Also surprising is that, despite all the talk of “We’re losing ground to foreign countries. They’ve been putting a lot of Cuba being “forbidden fruit” for U.S. tourists, money in the Cuban tourism industry and real estate. By the time ... Castro’s 46% of those polled said they would not at all be no longer an influence, it’ll be too late.” interested in vacationing there. Another 40% said — Leonardo García, executive director of the Southwest Florida Hispanic they would travel there if the ban were lifted. Chamber of Commerce, in comments to the Fort Myers News-Press. According to the AP survey of 1,005 adults, a majority of Hispanics surveyed say it is likely “Our past experience has shown us that the local community has strong that Castro’s regime will be replaced by a democ- emotions tied to any significant issues relating to Fidel Castro ... The Orange racy, while just 38% of non-Hispanics think that Bowl has been designated by the county, as well as the city of Miami, as a pos- will happen. Among Hispanics, 70% say Cubans sible site for people and community leaders to gather peacefully, if necessary. will be better off after Castro, compared with As such, no city tax dollars will be spent on this event other than to address public-safety needs.” 53% of non-Hispanics. Among Republicans, 82% had an unfavorable — Official statement issued by Miami’s Office of Communications regarding a proposed large-scale public event in the Orange Bowl when Fidel Castro dies. opinion of Castro, while 59% of Democrats felt that way. Similarly, 62% of Republicans doubted the prospects for democracy in a post-Castro “The real celebration should wait until Cuba is free of communist tyranny.” Cuba, compared with 50% of Democrats. — Jan. 31 editorial in the Miami Herald. Likewise, 72% of Democrats say they want diplomatic ties with Cuba, compared to only 51% “I hope that the lack of dialogue about or with Cuba is only a temporary situ- of Republicans. ation. We cannot help the people of Cuba if we cannot talk to them.” The survey, conducted Jan. 30-Feb. 1, has a — José Miguel Insulza, secretary-general of the Organization of American States, margin of error of +/- 3.1 percentage points. speaking in Jamaica. Insulza noted that it is the Castro government — “not the people and country of Cuba” — that’s been excluded from the OAS since 1962. JUDGE UPHOLDS FLA. LAW ON FACULTY CUBA TRIPS A federal judge has upheld a Florida law “The rise in the number of people in the world who ‘consume’ programs transmitted by satellite and cable, fraudulently pirating [the signal] is worri- restricting students, faculty members, and some. It shows the Bush administration’s double standard: On the one hand, researchers at the state’s public colleges and uni- they severely punish TV signal piracy in their own country; on the other, they versities from traveling to Cuba and four other promote its use in Cuba.” countries that the U.S. government considers ter- — Feb. 9 statement in Cuba’s Communist newspaper Granma, following a crack- rorist states, the Chronicle of Higher Education down on the sale of satellite dishes used secretly by Cubans to view banned shows. reported Feb. 5. In a preliminary ruling issued in U.S. District “The attention they are giving it now gives us confidence TV Martí is work- Court in Miami, Judge Adalberto J. Jordan ing. If they are so worried about it, that only means one thing: it’s working.” denied a challenge that the ACLU of Florida had — Alberto Mascaro, chief of staff for the Office of Cuba Broadcasting, filed on behalf of the Faculty Senate at Florida in a Feb. 10 statement to the Miami Herald. International University. Faculty members had asked the judge to lift “I invited a group of Chilean tourists to a lobster dinner in return for their the travel restrictions, arguing that the law violat- stroller. I would have to stop eating for months to get a new one. Instead, I ed their First Amendment rights and impinged gave away a few plates of food for it.” on the federal government's ability to regulate — Eddie, a 30-year-old headwaiter at a popular restaurant in Old Havana, foreign commerce. telling the South Florida Sun-Sentinel how he secured a $100 baby stroller by giv- The law prevents students, professors, and ing away $150 worth of lobster tails while a cashier agreed to look the other way. researchers at Florida’s public universities and community colleges from using state or federal “It is Venezuela that will give Cuba the real-time connectivity it needs. This funds, or private foundation grants administered will open the huge world of Internet business to the island and Cuba’s human by their institutions, to travel to Cuba, Iran, capital could transform Havana into another Mumbai.” North Korea, Sudan, and Syria. — University of New Mexico sociology professor Nelson Valdes, comment- The law was passed last May after a Florida ing on a proposed fiberoptic cable connecting Cuba and Venezuela. International University professor and his wife were accused of spying for Cuba. 6 CubaNews ❖ February 2007 year. Other formerly communist states in professionals and millions in resources are Population — FROM PAGE 1 Eastern Europe are struggling with declining funneled to Venezuela and other Latin Ameri- drop to 0.3 to 0.5% growth in the 1990s, after populations as well. can countries in exchange for oil and other the onset of the Special Period. And now, “These countries have been seeing essentials. growth has screeched to a halt altogether. declines for 15 or 20 years now. Maybe Cuba Statistics show the obvious explanations for Authorities in Cuba took a little longer because their mortality the population halt. At 10.1 per 1,000 in 2006, see in this trend the nat- Cuba’s birth rate is ural behavior of an edu- now the lowest in over cated population with a a century. high ratio of women in In addition, abortion the working force, remains a key method where family planning of keeping the rate low and wide access to (see CubaNews, April health-care access keep 2006, pages 8-9). families small. This is Also a factor is high- similar to the demo- er mortality due to the graphics trends of some aging of the popula- developed European tion, as well as a steady countries like Italy. and sizeable emigra- But in the case of tion rate that has Cuba, the trend is also exceeded 2.8 per 1,000 probably linked to dwin- over the past 12 years dling living standards (see CubaNews, April and fears of the future 2004, pages 2-4). — something Cuban Lisandro Pérez, a scholars on the island sociology professor at rarely mention. Florida International “It seems like Cuba’s University, says he’s beginning to fit the not surprised Cuba’s Eastern European population is falling. model of population decline,” said Thomas rate continues to remain low,” said Boswell. “Part of it is that Cuba has historically had Boswell, a University of Miami geography “Usually in communist countries, they tried lower birth rates than the rest of Latin Am- professor who specializes in immigration and to employ women more. So their participation erica, even before the revolution,” Pérez told population issues. in the labor force rises, and fertility rates go CubaNews. “And now, life is hard in Cuba, and “Needless to say, not many people are down. There’s also a housing crunch in virtu- people are not looking to have large families.” immigrating to Cuba, so they don’t have the ally all communist countries, and this is very Furthermore, since the US-Cuba migration replenishment to compensate for the rate of much true for Cuba as well.” accords were signed in 1994, there’s been a decline caused by low natural increase.” In addition to the chronic shortages of sustained period of significant emigration — In fact, Russia — which has only 143 mil- housing, food, transport and energy, Cubans about 20,000 people a year. lion inhabitants today, less even than Bangla- are facing a new phenomenon — the decline “If you had a situation where there was a desh — is losing close to a million people a of the health-care services — as hundreds of See Population, page 7 February 2007 ❖ CubaNews 7 ENVIRONMENT Cuba’s environmental challenge: Facts and policies BY DOMINGO AMUCHASTEGUI Several initiatives, like the Cortinas Rompe deliberately neglected. Aqueducts, sewers and uba’s environmental degradation has Vientos and the Cordón La Habana, failed and other infrastructure were left to rot, leading to witnessed four major stages. The first were not followed up. proliferation of shantytowns, while resources C was under Spanish rule, when colonizers For years, Cuban authorities dragged their were focused on major projects in rural areas. cut down forests in their appetite for Cuban feet, making things even worse. Collecting public waste became a major timber for ship construction, and to provide The alliance with the Soviet Union and other problem — one which is still largely unre- infrastructure for the nascent sugar industry. COMECOM economies proved fatal in this solved. Century-old sewers saw no major im- There was also widespread poaching of man- regard. Soviet tankers exacerbated pollution provements or reapirs, while political cam- atees, crocodiles, alligators, parrots, and many levels in Cuba's major ports; their industries paigns centered on unfulfilled promises for the other valuable species, as well as widespread, did not care about environmental safety stan- supply of fresh water, roads and schools. uncontrolled urban development. dards nor contaminating emissions; their oil- In fact, building roads to connect Cuba’s Second, after independence and under the consuming power plants were among the keys to the mainland for the sake of promoting dominance of the United States came the apo- worst examples of this. tourism created additional strains on the envi- gee of the sugar industry. With it, Cuba saw its ronment, altering marine life and natural habi- forested area reduced from 90% of the island’s tats. Massive deployment of agricultural mach- territory to 59% by the early 20th century. inery and transportation onto the fields by Between the 1920s and the 1950s, extensive state agribusiness deteriorated the soil by com- ranching took an additional toll on Cuba’s LUXNER LARRY pacting it heavily. forests, while factories for food-processing, While all of this was seriously affecting textiles, paper, breweries and other industries Cuba’s agricultural and urban environment, — along with power plants, oil refineries and nature was also playing a role, bringing warm- cement factories — were built along bays and er temperatures, fewer cold fronts, less rain, river banks. They all became the dump yards changes in wind patterns, more frequent and for these highly polluting industries. stronger hurricanes, and major droughts. The consequences of all this were disas- Eventually, desertification and semi-deserti- fication came to affect 14% of Cuba’s land area, trous, not only in the short term but for many Smoke belches from a factory just outside Havana. years to come. mainly in the provincees of Santiago de Cuba, The third and fourth stages coincide with Guantánamo, Camagüey and the southwestern These installations, located near major bays plains of Pinar del Río. the advent of the Cuban Revolution. The de- in Havana, Cienfuegos, Nuevitas and Santiago bate, especially since the 1980s, focuses on Looking at this third stage, members of the de Cuba, hastened environmental degradation. Washington-based Association for the Study of what's been done to make things better or At the time, there was no awareness among worse, and it is this fourth stage in particular the Cuban Economy (ASCE) have presented Cuban officials nor the readiness to allot studies between the 1990s and the early 2000s that will be discussed here. resources to deal with such matters. In this What was done to stop the impact of the dis- promoting the notion that “socialism in Cuba regard, Cuba didn’t differ much from most engendered environmental degradation” astrous environmental policies implemented other capitalist and developing countries dur- (Díaz-Briquets/Pérez López, ASCE 1998). between 1898 and 1958? ing the first half of the 20th century. Among the most recent papers is that of Not much, in fact — with the exception of Extensive sugar cane planting undermined Larry Daley (2004) who states the following: specific programs like the massive planting of efforts in reforestation in various areas, mak- “The much touted ecology restoration projects timber and fruit trees since 1959, the protec- ing the multiple impact of the sugar industry, tion of the Ciénaga de Zapata swamps and a one of the filthiest in the world, even worse. of the present government have also failed to national recycling plan implemented in 1961. Cities in general, especially Havana, were make a difference. For example, some ecologi- cal remediation work in Cuba has been sup- ported by the United Nations. “However, the area remediated is little more Population — FROM PAGE 6 — is alarming. Over the last five decades, Havana than an experimental plot, too small to make healthy birth rate, emigration [to the U.S.] endured Cuba’s highest emigration rate, even a local difference. Reviewing results of would not be a factor,” he said. but this outflow was offset by faster natural this and similar projects suggests that the pres- Since 2001, every one of Cuba’s 14 ent regime in Cuba, even in the present dire growth and a steady movement of immi- situation, is still more interested in the propa- provinces have seen a drop in growth grants from the countryside to the capital. rates. Two of them, the city of Havana and ganda value than actual scientific work.” In the mid-1990s, municipal authorities Yet the idea that socialism “engendered en- Villa Clara, are in fact losing population. began enforcing strict rules for newcomers Eleven provinces — Pinar del Río, Isle of vironmental degradation” exonerates Spanish and “deported” many illegal settlers to their colonialism and 60 years of capitalism of any Youth, Sancti Spíritus, Camagüey, Las provinces of origin at the same time that Tunas, Holguín, Granma, Santiago de responsibility. According to Daley, nothing has emigration was gaining momentum. been done, except sheer propaganda. Cuba and Guantánamo — were near zero Villa Clara has also been losing popula- growth at the end of the period. Regardless of any insightful criticism on the tion, though not as rapidly. Some 7,500 peo- performance of Cuban authorities in the field Matanzas and Ciego de Avila also signif- ple left the province since 2001. Cama- icantly slowed their pace of growth but are of environmental policies from the 1960s to the güey’s balance is around zero, though in 1980s, facts and policies over the last 20 years better off than the other provinces. Only the last two years, its population as well has La Habana province grew at a relatively show a very different picture from the one been dropping. some ASCE experts are trying to paint. healthy rate — just over 0.5% annually dur- This gloomy forecast raises doubts about ing the past six years. Cuba’s work force and represents a tremen- Political analyst Domingo Amuchastegui is a The city of Havana’s net loss of 41,000 dous burden for future generations. former Cuban government intelligence official people since 2001 — 0.3% of the population Larry Luxner contributed to this story. who defected in 1994. This article will be con- tinued in the March 2007 issue of CubaNews. 8 CubaNews ❖ February 2007 AGRICULTURE Cuba makes push to convert sugarcane to electricity BY PATRICIA GROGG / INTER PRESS SERVICE that of electricity obtained from fossil fuels, of the group that designed the project. uba is making another effort to boost and biomass is non-polluting, because accord- This is the first time the process has been power generation from sugarcane bio- ing to experts it does not increase the amount tried, and it is part of the Cuban program to Cmass to meet the high electricity demand of carbon dioxide in the atmosphere. modernize 11 out of the 17 existing distilleries of the sugar industry itself, and gradually Owing to the fall in sugar production last and build seven new ones, in order to increase increase its contribution to the national grid. decade, the industry’s share of the country’s production to between 300,000 and 500,000 “Five tons of bagasse (stalk residue) are total electricity generation fell from 10% to 5.6% litres of ethanol a day. equivalent to approximately one ton of fuel oil. between 1990 and 2002. So far in Cuba, alcohol has been manufac- We are sitting on a gold mine here,” Paulino In 2002 the sector underwent restructuring, tured only from molasses, a byproduct of sugar López, head of the Sugar Ministry's energy with the closure of 71 sugar mills and a reduc- refining, and has been used almost entirely for development program, told IPS. tion in the area planted in sugarcane. The aim making rum. But the goal of the development Bárbara Hernández, head of the Ministry’s was to increase efficiency in the face of ever plan is to produce alcohol as fuel. Energy Management Department, said that for lower prices on the international market. “There are three main products in this flexi- ble industrialization strategy: high-quality the time, being the exploitation of that “gold SAVING POWER, ONE BATEY AT A TIME mine” is based on the industrial and agricultur- sugar, alcohols, and electrical energy,” the The price of sugar began to improve in late company’s directors explained to IPS. al infrastructure that is already available, as 2005, reaching 17c/lb in April 2006. It current- plans to produce electricity above and beyond The Duquesne distillery has a production ly stands at around 10c/lb. Given the rallying capacity of 50,000 liters of ethanol a day. “The the needs of the industry require investments in prices, the Cuban government decided to that have not yet been made. idea is to diversify, so as not to depend on a sin- invest in the reactivation of the industry and to gle product,” Pérez said. “For now, we’re managing with what we increase sugarcane planting. have,” she said. Sugar mills that remain active The pride and joy of this agroindustrial com- In this new climate, the Heriberto Duquesne plex is that all the sugar it produces is refined after the 2002 restructuring have geared up for molasses manufacturing company located in co-generation of electricity, for their own needs in a nearby mill which is self-sufficient in elec- Remedios, in the province of Villa Clara, 268 tricity, generated from bagasse and cane straw. and for those of nearby communities. km from Havana, started a project in 2006 to “It’s the only refinery in the country at pres- Longer-term plans are to generate surplus produce alcohol from sugarcane juice, using ent that is self-sufficient in electricity and does electricity and sell it to the national grid, but adapted Brazilian technology. not consume oil,” the directors said. officials declined to say how much capital Among other advantages of this system The sugar mill generates three megawatts of would be needed for this. which, it is hoped, will spread to other distiller- electricity, to be boosted to 4.5 megawatts next According to the UN’s Economic Commis- ies in the country, is that it spares more year. According to officials, it supplies the mill, sion for Latin America and the Caribbean, the bagasse for electricity generation and it is 40% the distillery, the refinery and about 2,000 peo- potential for local production of electricity less polluting than making alcohol from ple in the batey, as the community of workers’- based on bagasse and recoverable sugarcane molasses, said engineer Eloy Pérez, a member housing in a sugar factory is called in Cuba. residues could be optimised by using high- pressure, high-temperature boilers connected to extraction-condensing turbogenerators. An ECLAC study indicated that this technol- Nebraska, N. Dakota, Delaware plan ag missions ogy would endow 44 selected sugar mills with ebraska Gov. Dave Heineman will $20 million and [Heineman’s] had two 30s.” an installed capacity of about 2,000 megawatts. make his third trip to Cuba this Agriculture and business representatives Hernández emphasised that the plans for NMarch, leading a delegation that will are expected to accompany the governor on improving energy efficiency in the sugar include state agriculture director Greg Ibach the Mar. 25-28 trip. industry have been a part of the national devel- as well as Richard Baier, chief of the Nebra- In related news, North Dakota’s agricul- opment program for that purpose since 2005. ska Department of Economic Development. ture commissioner, Roger Johnson, says he The national program is based primarily on It will be the fifth Nebraska mission to has been invited to bring a delegation of electricity savings, and includes an increase in Cuba since Heineman took office, the North Dakota food exporters and processors the use of renewable energy sources. Lincoln Journal-Star reported Jan. 19. to Cuba in May. Cuba continues to depend mainly on oil for Taking advantage of the Trade Sanctions “The Cubans are very interested in the electricity generation. But sugarcane biomass Reform and Export Enhancement Act — commodities and products that North is its principal and oldest source of clean ener- which allows U.S. companies to export food Dakota has to offer,” Johnson said in a state- gy, along with hydroelectric power. to Cuba on a cash-only basis — Nebraska ment. He is organizing a trip to Havana May 21-25, to finish signing contracts for a $20 In 2005, the sugar industry accounted for has already filled a $30 million order for dry million purchase agreement. 4.5% of total electricity generation, Hernández edible beans and other commodities. said. This was achieved by 56 mills which So far, $10 million worth of products has Lt. Gov. Rick Sheehy led a trade group to processed some 12 million tons of sugarcane. been contracted and delivered by North Cuba in 2006 that ended with a memoran- Research studies quoted by Hernández pre- Dakota producers, Johnson said. “We hope to dict that during the present sugar harvest, up dum of understanding and prospects for finish contracting the remaining $10 million to 36.5 kwh/ton of sugarcane could theoreti- another $30 million in sales. and act on any future sales contracts.” cally be generated, according to potential bio- Ibach said Nebraska has been “one of the Likewise, the state of Delaware is sending mass amounts and industrial efficiency. more aggressive states” in doing business a delegation to Cuba for the first time, “In 2007 we are aiming for 40 sugar mills to with Cuba. CubaNews has learned. Agriculture Secre- be self-sufficient in electricity, out of the 50 that “I can’t really think of another state that tary Michael Scuse will lead as 12-member will operate during the harvest (which began Cuba is showing more deference to right team to look into potential exports of poultry, in January), and for the sector to contribute now than Nebraska,” he said. Among sales grains and fruit to the island. 21.5% of the electricity it generates to the from other states, “I think the next largest – LARRY LUXNER national grid,” the official explained. one that’s been made public was for less than The cost per kilowatt is four times less than February 2007 ❖ CubaNews 9 AGRICULTURE AGRICULTURE BRIEFS CUBA BUYS DDGS FROM U.S. GRAIN PRODUCERS Piña no longer king in Ciego de Avila Cuba is importing its first shipment of U.S. distiller’s dried grains with solubles (DDGS) uban pineapple production tumbled from are working hard to accelerate the production since December 2005. 30,232 tons in 1991 to only 936 tons in of in-vitro plants of the Cayena lisa species, A shipment of 8,000 metric tons was pur- C2005, admits an unusually frank article in which have productive and resistant genes. chased by Alimport, Cuba’s sole food purchas- Granma, the Cuban Communist Party daily. William Almaguer, a specialist who works at ing agency, according to the U.S. Grains “Now it is easier to find the fruit in Havana, the same enterprise, said pineapple cultivation Council’s Feb. 16 newsletter. selling for 10-12 pesos each, than in Ciego de is very demanding, but that “in spite of the dif- “The United States requires all purchases Avila,” which has traditionally produced most ficulties, we are morally committed to increas- by Cuba be paid for in advance of shipment,” of Cuba’s pineapple crop, the said USGC official Chris Corry. “The Council newspaper reported Feb. 7. is pleased to see a U.S. grain co-product mak- According to Granma, Quin- ing its way into this market.” tin Domínguez Martin, direc- USGC officers visited Cuba in January 2006 tor of the Pineapple Enterprise

LARRY LUXNER LARRY to foster relationships with Alimport and iden- in Ciego de Avila, “had the dif- tify areas where technical support is needed, ficult task of explaining to local such as in formulating livestock rations. journalists the reasons for this Details: Chris Corry, Director of International catastrophe.” Relations, US Grains Council, 1400 K Street, As main factors of the pro- NW, Suite #1200, Washington, DC 20005. Tel: duction drop, Domínguez re- (202) 789-0789. Fax: (202) 898-0522. ferred to the lack of nutrients in the soil, lack of chemical fer- UN PRAISES GUANTÁNAMO FERTILIZER GARDEN tilizers, severe weather condi- tions, above all scant rainfall. An environmental program aimed at reduc- The article also admits that ing pollution levels in the Sur-Isleta neighbor- “organizational problems were hood of the city of Guantánamo has been rec- not absent from this scenario.” ognized by the United Nations, reports the Other factors include a Pineapple vendor hawks his fruit at a neighborhood market in Vedado. local Venceremos newspaper. longer-than-usual planting The Ecological Processing Center for Solid cycle, a low rate of sprouts per plant, the ing production. Today, a light illuminates our Urban Waste, (CEPRU in Spanish) was decline in weight of fruit and the fall in yield as path forward.” praised by the UN’s Small Donations Program the final result. The pineapple is one of Cuba’s most popular for effectively turning a garbage dump into an Domínguez said pineapple production costs fruits, along with mango, banana and citrus organic fertilizer-producing garden. are rising. One hectare planted with the fruit fruits. Production has traditionally been con- CEPRU, created in 2000,says its new garden requires an investment of 2,993 convertible centrated in Ciego de Avila province, located has helped spur the recovery of several pesos ($3,232) for the first harvest; for the sec- 460 kms east of Havana. species of flora and helped to protect and ond harvest, an additional CUC 1,800 ($1,944) According to Granma, “cooperatives and rehabilitate degraded ecosystems. individual farmers of the western provinces is required, mainly for fertilizers, pesticides BEE PRODUCTS THE NEW BUZZ AT HAVANA EVENT and herbicides. have filled in where Ciego de Avila failed. For “Recovery will be difficult, although not several months now, pineapple has been a Three new Cuban apicultural health prod- impossible,” said Domínguez, noting that one steady offer in big and small farmers markets, ucts were unveiled at the 1st Latin American tone of the herbicide Fusilade costs $21,000 on together with banana, guava and papaya, Meeting of Apiculture and the 2nd Cuban the international market. although high prices make them less accessi- Congress of Apiculture (CUBAPI), held He said local laboratories in Ciego de Avila ble to low-income consumers.” recently in Havana and attended by over 300 participants from 20 countries. These new products are made by the Natio- Cuban coffee crop 65% bigger in 2007 nal Reference Laboratory for Health Investi- gations in Sancti Spiritus province. The insti- uba’s coffee production reached 8,117 almost all Cuban coffee is grown, and the area tution, founded in 1986, has developed 30 tons of semi-processed beans during the was spared hurricane damage this season. medications, cosmetics and other products. Cjust now concluding harvest, compared The state increased by up to 100% what it One of the newest, Prolasmin — a mixture with 4,917 tons in 2005-06, Reuters reported. pays for beans this harvest. of honey, propoleum extract and noni juice — Assuming 1,000 kg per ton, output during Through 2000, Cuba earned around $20 mil- is a nutritional supplement with antioxidant this harvest comes to 135,283 bags of 60 kg lion annually from coffee exports, but in recent and immunological properties, according to each, compared with 81,950 bags in 2005-06. years low prices and declining production have the center’s director, Ana González Guerra. Picking begins in August and ends in March, cut export revenues by around 75%, according Cuba plans to increase its honey production though around 98% of beans are harvested to government export data. and yield in kilograms per beehive, as part of from October into early January. In exchange for low-interest government a project extending to 2015. The island has According to Reuters, this is the first time in credits and subsidized supplies, growers in the potential to produce nearly 10,000 tons of a number of years Cuba has reported total cof- Cuba must sell all of their coffee to the state at honey, according to Adolfo Pérez, director of fee output, which had declined in recent years prices well below what the beans fetch on the the Apiculture Research Center. due to weather and other problems. black market. Cuban beekeepers currently have about The information was released by Rubén Local analysts said the system has led to low 140,000 beehives, and need another 60,000 to Martínez, vice-president of the state-run production and the diversion of 10-20% of the achieve optimum output. The island produced Mountain Agriculture Group, which is respon- crop, most of which is exported. Cuba imports over 6,900 tons of honey, reported the daily sible for Cuba’s coffee output. lesser-quality coffee from Vietnam and else- newspaper Juventud Rebelde. Above-average rainfall has broken a 3-year where to meet domestic demand. Details: Center for Apicultural Investigations, drought in eastern and central Cuba, where – FROM OUR HAVANA CORRESPONDENT Havana. URL: www.eeapi.cu. 10 CubaNews ❖ February 2007 FOREIGN TRADE British investors launch Cuba magazine; details sketchy BY VITO ECHEVARRÍA Matthew Pickles, the Havana-based editor for more youthful image, complete with emerg- group of British investors has launched “Doing Business in Cuba,” a 28-page section ing young Cuban actors, fashion models, and a glossy annual publication that high- within the magazine that is written by Ernst & musicians of various stripes like roqueros and A lights Cuban culture, art, and chic tour- Young Caribbean out of Barbados. rappers — used material and photos from ist destinations. “As Ernst and Young, we have produced a Cuba-based photographers but was head- The 136-page inaugural issue of Cuba Abso- detailed business guide on Cuba for the past quartered in Barcelona, Spain. lutely contains articles penned by the BBC’s three years or so which you can download in The H was funded by the U.K. growth fund full for 2006 from Havana correspondent, Stephen Gibbs, cultu- Ceiba Finance Ltd. It has since scaled down the Cuba Absolutely its ambitions from being Havana’s answer to ral historian Juliet Barclay and Silvia Gómez, web site,” Pickles an authority on Cuban art and culture, as well the successful Miami Beach lifestyle maga- told CubaNews in a zine Ocean Drive, to serving as a hip annual as professional-grade layouts and images by phone interview German photographer Sven Creutzman. guide on fun things to do in Havana. from Havana. “For “No, there are no mulatas on the pages of Despite some features celebrating Cuba’s 2007, we produced past, such as a profile on writer Ernest Cuba Absolutely,” quips Pickles. a summarized ver- Noting the cautious approach its owners Hemingway and a piece on restoration efforts sion of our guide underway in Old Havana, the magazine feels want to take towards distributing the maga- and included it with- zine, Pickles says: “The idea is to set up a dis- compelled to remind its readers of current in the magazine. events with a lengthy article on last Septem- Therefore, this is tributorship with those [foreign companies] ber’s Non-Aligned summit in Havana. only available in interested in Cuba, [such as] a relationship When approached by CubaNews about who hard-copy format.” with Cuba specialists like travel agencies.” was financing the magazine, its London-based Like Thomas, though, Pickles refused to Though neither Pickles nor Thomas would sales manager, Daniel Thomas, told us in an reveal any names of funding sources for the confirm who some of those businesses would e-mail only that “Cuba Absolutely is a small magazine. Asked if Ernst & Young Caribbean be, one likely place to find copies of Cuba independent production which is being pro- itself was helping fund Cuba Absolutely, as Absolutely would be Virgin Atlantic’s airline duced by Absolutely Publishing Ltd., a com- opposed to simply providing material for the offices throughout Great Britain, given that pany registered in the British Virgin Islands. magazine, Pickles insisted that aside from its the magazine itself mentions Virgin as one of The investors in the magazine are English business guide, “Cuba Absolutely has nothing its top corporate sponsors. and would prefer to remain private.” whatsoever to do with Ernst & Young, an im- Other sponsors include Havana Club Inter- Thomas also noted that Cuba Absolutely is portant point given sensitivities here in Cuba.” national, Caribbean Select Travel, Cuba Real being sold in Europe, Canada and the United Pickles said the magazine is an experiment Tours and BVI-based Coral Capital Group States, both online and through distributors for its investors, given that “the next issue will Ltd. One of Coral Capital’s directors happens on both sides of the Atlantic. Some 10,000 not be until the end of the year.” to be Mark Entwistle, Canada’s former copies of the inaugural issue were printed, Pickles also rejected comparisons between ambassador to Cuba. One place you won’t find Cuba Absolutely is Cuba Absolutely and another glossy Havana Details: Matthew Pickles, Ernst & Young in Cuba itself. lifestyle magazine that was launched in 2004 Caribbean, Havana. Tel: +53 7 204-4658 or “Cubans are very sensitive about what writ- with European funding, The H Magazine. +53 5 268-9547. E-mail: mattpickles@hot- ten materials are distributed here,” said The latter publication — which stressed a mail.com. URL: www.cubaabsolutely.com.

OFAC clears cancer drug for U.S. trials Gutiérrez — FROM PAGE 2 power is to ensure that people are kept he Cuban monoclonal antibody nimotuz- Still, children in the U.S. suffering from pon- tine glioma have had to wait while the treat- down by chains of dependence.” mab, an anti-epidermal growth factor He added: “The Cuban system amounts T receptor (EGFr), has received the requi- ment —because it is Cuban — secures licens- ing specific to U.S. embargo rules. to nothing more than indentured servi- site license from the Treasury Department’s tude. Yet the exploitation of workers is Office of Foreign Assets Control (OFAC) to The license recently obtained by YM Biosciences for nimotuzumab only permits the rarely acknowledged by those who call for begin clinical trials in the United States. a lifting of the embargo. The record shows Medical Education Cooperation with Cuba importation of the antibody to begin clinical tri- als; marketing the treatment requires a distinct that the regime can manage trade and Inc. (MEDICC) reports that nimotuzumab is investment while remaining repressive.” license from OFAC. slated for testing to treat pediatric glioma, a Gutiérrez, perhaps sensitive to criticism type of brain tumor that strikes children. These licenses are wholly separate from, and that Bush seeks to dominate a post-Castro David Allan, chairman and CEO of Toronto- in addition to, the standard testing and Cuba politically and economically, said based YM BioSciences, explained in a press approval procedures set out by the Food and “the focus should not be on Miami, Wash- release that “diffuse pontine glioma is an inop- Drug Administration (FDA). ington or New Jersey,” but on Cuba itself. erable malignant brain cancer that only affects “In essence, a biotech product of Cuban ori- “We recognize that the future of Cuba is children and...is a treatment-resistant tumor so gin has to undergo double approval,” says Dr. in the hands of the Cuban people,” he that children currently suffering from it have Normando Iznaga, chief development officer declared. “To the people of Cuba, I say few treatment options.” for the Center for Molecular Immunology. “It this: our president has absolutely no impe- Nimotuzumab is already in Phase III clinical must be approved by OFAC and by the FDA.” rialist intentions. We have no military trials (combined with chemotherapy) for pon- Response to the application for trial design is plans to occupy Cuba, and we will not con- tine glioma in Europe and has been approved currently before the FDA, with a decision fiscate any property. The greatest threat and is available to cancer sufferers in several expected soon. The agreement between YM against Castro is not the U.S. government, countries including India, China and Argen- and CIM established a joint venture for testing but the spirit of freedom in the hearts of tina. Furthermore, the monoclonal antibody is and marketing nimotuzumab in the U.S., the Cuban people.” in Phase II trials for lung cancer in Canada. Canada, Europe, Japan and elsewhere. February 2007 ❖ CubaNews 11 EDUCATION RELIGION BRIEFS CUBAN EPISCOPALS NAME FIRST WOMAN BISHOP ISH educates kids of diplomats, expats The Rev. Nerva Cot Aguilera — the first woman bishop ever named by the Episcopal BY VITO ECHEVARRÍA able to international schools, and the award of Church in the developing world — says she’ll riving through Havana’s leafy Miramar an IB diploma has been recognized by large bring a “feminine touch” to leadership of her diplomatic and business district, it’s numbers of universities and national educa- rapidly expandng congregation in Cuba. Dhard not to notice the International tion systems as an entry qualification for “Our mission is not to copy what our broth- School of Havana — home to schoolchildren many prestigious universities in Europe, ers have done until now,” said Cot, 69, in a from all over the world. North America and elsewhere.” report carried Feb. 9 by Reuters, adding that Morris added: “I know of cases where uni- ISH, a private school in a country whose qualities such as tenderness and the ability to versities have offered students up to a year’s educational system is government-run, was listen and mediate will help unite her church originally called the Hillside School when exemption from undergraduate studies be-- cause of their possession of an IB diploma. like a “real family.” British educator Phyllis Howard Powers cre- Cot, a former schoolteacher, was appointed ated it in 1965 for the schoolchildren of for- suffragan or auxiliary bishop during a service eign diplomats working in Havana. in Matanzas and will be consecrated Jun. 10 at By the time the school’s name changed to Havana’s Episcopal Cathedral. ISH in 1988, it had relocated to its current site “Her appointment is a wonderful reminder on Calle 18. The school offers courses in mar- that in some nations, leadership is primarily tial arts, and students taking part in swim- about gifts for service and not about gender,” ming courses get access to the pool at Club PHOTO COURTESY ISH said U.S. Presiding Bishop Katharine Jefferts Havana. ISH’s current enrollment is 191 stu- Schori, who took office in November as the dents representing 41 countries and all grade first woman to lead the church. levels, from kindergarten up to 12th grade. “Since relations between the government As Havana’s expatriate business communi- and the churches improved, we have seen ty grew — thanks largely to Cuba’s economic explosive growth in all the churches, not just opening in the early 1990s — demand for the Students at ISH mob visiting UN boss Kofi Annan. ours,” said Cot, estimating there are now at school’s services also grew, and today, ISH least 10,000 Episcopalians on the island. also teaches the children of non-diplomats. The faith was brought to Cuba by American ISH is really intended for English-speaking Students are also able to submit themselves for and be awarded the ISH Graduation missionaries in the 19th century. Cuba was a kids, but also admits children who do not diocese of the U.S. church until 1967. speak English as long as they participate in an Diploma which is issued by the school and is intensive English class in addition to their internally assessed.” Recently, ISH was affected by an outbreak OFAC: MEN ABUSED RELIGIOUS TRAVEL LICENSE regular courses. of dengue fever. According to the school’s Secondary-school students enroll in some- Two Florida residents have been charged website, last September two students came with violating U.S. sanctions against Cuba by thing called an IGCSE Curriculum (Interna- down with the illness, spurring the school tional General Certificate for Secondary Edu- using nonexistent churches to get religious nurse to maintain constant contact with the travel licenses that allowed thousands of peo- cation), with 10th-graders taking final exams parents of absent students in case they fell ill set by the Cambridge International Examina- ple — posing as devout Christians — to visit as well; the schoolgrounds were also fumigat- the island, Reuters reported Feb. 22. tions Board, and 11th- and 12th-graders tak- ed every weekend to prevent more cases from ing part in ISH’s Graduation Diploma pro- Victor Vasquez and David Margolis alleged- occurring. ly sold the bogus licenses through Miami-area gram, which prepares them for admission to Interestingly, just before the dengue out- universities outside Cuba. travel agencies for $250 to people who other- break, outgoing UN Secretary General Kofi wise could not legally travel to Cuba. ISH is staffed by both Cuban and non- Annan paid ISH a visit; Annan was in Havana Cuban teachers, many of them coming from According to a court statement, over 4,500 to address the Non-Aligned Summit. people used the fraudulently obtained licenses Canada, Netherlands and Great Britain, along Morris would leave us with only the follow- with a support staff of 33 Cuban nationals. to travel to Cuba between April and January, ing comment: “The school has been in exis- under a U.S. Treasury Department exemption The school also has a 13-member board of tence for more than 40 years, and relations directors who are predominantly diplomats for people who engage in “a full-time program between the school and the host-country gov- of religious activities” while in Cuba. from the European Union, Canada, Sweden ernment have always been cordial. It is the and various African and Asian countries — explicit aim and intention of both the board of OUTSPOKEN ARCHBISHOP OF SANTIAGO QUITS many with kids enrolled at ISH. The board’s directors and myself that the good relations vice-chairman is Sven Kühn von Burgsdorff, will be continued indefinitely.” Pedro Meurice Estíu, the archbishop of head of the EU mission in Havana. Details: International School of Havana, Santiago de Cuba who spoke out strongly ISH’s principal is Ian Morris, who before Calle 18, #315, esq. 5ta Avenida, Miramar, La against the Castro regime during Pope John coming to Cuba in 1999 held teaching and Habana. Tel: +53 7 204-2540. Fax: +53 7 204- Paul II’s visit to the island in 1998, has retired, administrative posts in Great Britain, Jamaica, 2723. E-mail: [email protected]. the Miami Herald reported Feb. 12. Ethiopia and El Salvador. Pope Benedict XVI accepted Meurice’s res- “For those students who successfully com- ignation and named Monsignor Dionisio plete the two-year Grade 11 and 12 course Note new mailing address! Guillermo García Ibáñez, as his replacement. with us, [they] may submit themselves as can- Luxner News Inc., which publishes this García Ibáñez was serving as bishop of the didates for external examination and assess- newsletter, has a new mailing address: eastern cities of Bayamo and Manzanillo. ment by the IBO (International Baccalaureate P O Box 1345, Wheaton, MD 20915. During a mass that was televised nationally Organization) which has authorized the Our phone numbers are (301) 452-1105 and attended by Raúl Castro, Meurice — now school to teach its diploma program,” Morris and (301) 933-3552, and the new fax num- 75 and in failing health — blasted commu- told CubaNews in an e-mail from Havana. ber is (301) 949-0065. Our e-mail address nism, scolding Cubans “who have confused “The IBO is probably regarded by most is still [email protected]. Please make fatherland with a [political] party ... culture international educators as the most presti- a note of these changes for your files. with an ideology,” and adding that the poorest gious of the award programs that are avail- Cubans “are those who do not enjoy liberty.” 12 CubaNews ❖ February 2007 11.8% growth in 2004. visit to Havana by Indian Foreign Minister BUSINESS BRIEFS Cuba was aided last year by high prices for Anand Sharma. nickel and cobalt and by a continuing flow of “The economic relations with Cuba are MINISTRY: FEWER JOINT VENTURES IN 2006 tourists. Rodríguez put the number of tourists going very well, but they will go even better,” The number of foreign companies operating for 2006 at 2.22 million — a slight drop from said Cuban Vice President Carlos Lage, who in Cuba continues to drop, according to a the 2.3 million Cuba reported for 2005 to the cautioned however that the mid-February report carried Jan. 29 by Reuters. Caribbean Tourism Organization. talks would not lead to “spectacular leaps” in Joint ventures between the Castro regime bilateral relations. and foreign investors fell to 236 at the end of ACINOX INNOVATION SAVES CUBA MONEY Lage said Sharma’s trip represented “the tra- 2006, down from 258 a year ago and 313 in An innovation at the ACINOX stainless steel ditionally friendly and fraternal relations that 2004, said Marta Lomas, Cuba’s minister of company in Las Tunas saved the island more have always existed between Cuba and India.” foreign investment and economic cooperation. than $2 million in 2006 and helped diversify On the opening day, Sharma underscored “We ended the year with 236,” Lomas told production, reports Granma. “his country’s willingness to increase econom- Reuters. “We are not interested in doing too Pastor Rodriguez Carvajal, an engineer, ic and cooperation relations with Cuba to raise many [joint ventures]. We are only interested came up with a device that laminates and them to the rank of political relations,” said in those that have an impact on the economy.” reduces the diameter of steel beams to obtain the Communist Party daily Granma. “Our two Lomas revealed that China would not pur- wire used to make electrodes and other items countries have worked together in multilateral sue a previously announced $500 million of great demand. forums and also have worked very strongly in investment in a ferronickel plant, and that The innovation has greatly expanded the mutual interests.” Cuba would instead develop the project with variety of goods produced by ACINOX Las India’s state-run oil company signed a six- Venezuela (see box below). Tunas. By substituting costly imports, says year deal in September with Cuba for oil ex- China’s state-owned Minmetals had agreed Granma, “it has contributed to Cuba’s efforts ploration in the Gulf of Mexico. Under the in November 2004, during a visit to Havana by to mitigate the nearly half-century economic, deal, India’s Oil and National Gas Corp. China’s President Hu Jintao, to invest $500 commercial and financial blockade imposed (ONGC) will explore blocs N-34 and N-35, million in Cuba’s nickel industry. Cuba by the United States.” expected a joint venture to produce 68,000 which cover an area of 4,300 sq kms (1,544 sq miles) in Cuban waters. tons a year of ferronickel would come on INDIA SIGNS SCIENCE, TECHNOLOGY ACCORD stream in 28 months. ONGC already has a 30% stake in six other Cuba opened up to foreign investment after India and Cuba have renewed bilateral sci- blocs in which Norway’s Norsk Hydro also the demise of the Soviet Union in 1991, but ence and technology agreements during a has 30$ interest and Spain’s Repsol YPF 40%. unlike China, it has tightened rules for for- eign investors in recent years and closed down ventures it considered of little value. Venezuela, Cuba ink 16 telecom, trade ventures Since 2004, Cuba has given priority to part- nerships with foreign investors in key sectors uba and Venezuela have announced 16 of Internet usage. Officials say that’s such as energy and mining, and it has looked new joint ventures involving telecom- because the current bandwidth restrictions to Venezuela and China for investment. Cmunications, agriculture and steel — and U.S. threats against foreign suppliers of the most important being a deal involving technology to Cuba force them to give pri- TACA BEGINS COSTA RICA-CUBA FLIGHTS giving Cuba access to Venezuela’s new ority to schools, researchers and essential Simón Bolívar satellite. businesses. El Salvador-based TACA International has Critics have accused the government of begun direct flights between Havana and San The accords were signed Jan. 24 between restricting Internet access to limit Cubans’ José, Costa Rica. TACA previously served Venezuelan President Hugo Chávez and exposure to criticism or information from Cuba from its hub in San Salvador. Cuban Vice President Carlos Lage. abroad. The airline’s director of communications, One of the most important deals is the Claudia Arenas, said flights will operate three construction of a new undersea fiberoptic Other agreements call for the creation of times a week using Airbus 320 jets, leaving cable between Venezuela’s La Guáira and joint ventures in ship construction, port San José at 10:45 am and arriving in Havana Siboney (in the eastern province of Santiago repair, insurance, railroad modernization, 2:05 pm. The return flight leaves Havana at de Cuba) that will dramatically expand stainless-steel production, nickel, oil expor- 3:20 pm and arrives in Costa Rica at 4:40 pm. Cuba’s Internet and telephone capacity. tion, tourism and rice production. Julio Duran, president of state-run Tele- “Castro’s government needs the force and CUBA FORECASTS 10% GDP GROWTH IN 2007 com Venezuela, told AP the deal calls for a lungs of Chávez to ensure that Fidel’s death has the smallest impact possible,” Luís Cuba’s economy minister, José Luís Rodrí- line with a capacity of 160 GB per second. Vicente León, director of the Caracas politi- guez, predicts Cuba will see 10% growth this That’s well over 1,000 times the capacity year, following GDP growth of 12.5% in 2006. of Cuba’s current satellite-based Internet cal research firm Datanalisis, told Bloom- An economy whose exports were 90% goods link, which was listed as 65 MB per second berg News Service. “These accords give the and only 10% services in 1989 now leans 70-30 on upload and 124 MB a second on down- Cuban government oxygen to maintain its toward services, he said. Services now load by Cuban Communications Minister connection to the people and minimize the account for 76% of Cuba’s overall economy Ramiro Valdes. risk of imbalance, domestic or foreign, dur- while primary goods, such as crops, amount The new cable, to be ready by 2009, will ing the transition after Fidel dies.” to only 4%. break through what Cuban officials More than 100,000 barrels of Venezuelan Rodríguez acknowledged in an AP interview describe as choking restrictions imposed by oil, supplied daily to Cuba at a 40% discount, that the government’s method of counting the U.S. trade embargo on Cuba, which helped fuel 12.5% growth in the island’s $60 output “has an influence” on the high rate of they blame for blocking possible connec- billion economy last year. growth. Cuba includes social services not tions with existing privately owned fiberop- “Fidel, in the end, managed to secure not counted in UN-standard measures of econom- tic lines in the region. just a good friend in Chávez, but a good ic output. “It’s a very important project, not only for business partner, a guy who'll help prolong But he said that difference “is not the only Venezuela and Cuba, it’s for all Latin his anti-American legacy and provide thing that determines those rates of growth.” American countries,” Duran said during an resources as well as support,” León said. He said that if social services and commerce interview at an informatics convention. “And it’s certainly in Chávez’s interest to be were dropped from the count, Cuba still Cuba has one of the region’s lowest rates sure a leftist government remains in Cuba.” would have shown 9.5% growth last year and February 2007 ❖ CubaNews 13 Cuba and India also are developing strong SANTIAGO HIT BY CIGARETTE SHORTAGE QUEBEC FIRM ARRANGES SURGERIES IN CUBA investments in biotechnology and joint pro- A chain of debts within the government A Quebec company is offering to arrange duction of medicines. A new plant for the pro- supply system has caused a cigarette short- speedy health-care services for a fee in Cuba, duction of the HR3 antibody, a human mono- age in Cuba’s second-largest city, driving up but patients have to book their own flights. clonal antibody developed by Cuban scientists the black market price of smokes, AP report- Services Sante International charges $200 and used in the treatment of head and neck ed Feb. 10, quoting local news media. per medical file and patients must make their cancer, opened in April in India. The shortage led “a few unscrupulous peo- own flight and insurance arrangements. A factory producing Cuban vaccine against ple” in Santiago to sell Popular-brand ciga- President and founder Lucie Vermette said Hepatitis B has been operating in India since rettes for the equivalent of 95c a pack, nearly Tuesday that in Cuba, hip replacements cost 2002. In addition, New Delhi has cooperated triple the normal price of 33c, according to between $5,000 and $6,000, and cataract oper- with Havana through the work of some 300 the Communist youth daily Juventud Rebelde. ations only $2,000 — about half of what simi- specialists in agriculture, electronics, informa- The reports follow official exhortations for lar operations would cost in Canada, and only tion technology and industrial textiles. Cuba’s state-run press do more reporting on one-tenth of what they’d cost in the United S. KOREAN GENERATOR GRACES 10-PESO NOTE problems faced by Cuban citizens. States. Cuban doctors also do aesthetic sur- According to the paper, the government gery, though heart surgery and other compli- A power generator built by a South Korean retail firm in Santiago de Cuba owes about cated, riskier procedures aren’t available. company appears on the new 10-peso ban- $430,000 to the government’s regional ciga- “The care is given by highly qualified doc- knotes issued by Cuba’s Central Bank. rette wholesaler, which in turn owes $95,000 tors and in five-star hospitals,” said Vermette, After winning a bid in 2005, Hyundai Heavy to BrasCuba, a joint venture between the adding that besides Spanish, most Cuban doc- Industries has been installing 544 package Castro regime and Brazil’s Souza Cruz SA. tors speak English; many also speak some power stations, or PPS systems, in 41 areas The manufacturer stopped shipping ciga- French, Russian or German. around Cuba. rettes to the wholesaler after the debt extend- Translation can be provided if needed. The new bills feature an engraving of the ed past 30 days. Once the patient’s file arrives in Cuba container-sized generators, along with a Span- Juventud Rebelde said that officials were through the Quebec company, doctors can ish slogan that translates to “energy revolu- working to solve the payment problems and give a treatment recommendation and price tion,” on the reverse. had begun to ease the shortage by bringing within about three days, said Vermette, noting Suffering from chronic power shortages, in cigarettes from other areas. that was motivated to start her service after Cuba is putting a significant effort into devel- oping its energy industry. Last year, Fidel It said the shortage had not affected sup- waiting six months to see a specialist. plies that are part of the monthly government Castro personally inspected the installation RECYCLING ENTITY REPORTS VOLUME GROWTH site of one of Hyundai’s PPS facilities. rations, which are nearly free though insuffi- cient for many smokers. The Cuban government’s raw materials re- THIEVES PLAGUE HIGH-TENSION POWER LINES The newspaper scolded local authorities for cycling union (Unión de Empresas de Recu- “deep fissures in the discipline of payment peración de Materias Primas) processed The Castro regime has issued an alert and efficiency among companies in the field” aimed at stopping the rampant theft of con- 380,000 tons of material in 2006, BNamericas and suggested that local businesses needed reported Jan. 15. ductors and other components from electric “an injection of dynamism.” transmission towers. The figure represents “important growth” Despite providing the rations, Cuba’s gov- In early February, the Communist Party over 2005, said deputy director Nolberto ernment has tried to discourage smoking, newspaper Granma published a call to public Álvarez, without specifying how much. banning it from public places in 2005. Still, awareness in connection with a rash of inci- In the eight-month period from January to dents in which parts were cannibalized. smoking is widespread in Cuba. October, 2006, the union accumulated sales of some 197 million pesos. Last year, 1,827 angulars “disappeared” GOVERNMENT OFFICES EXTEND WORKING HOURS from the 110,000-volt network and 267 from The union, established in 1961, groups 27 220,000-volt lines, up from 1,648 and 545 Cuban officials are tackling problems such companies involved in recycling. It has experi- respectively in 2004 — in spite of the height- as child care, poor lighting and insufficient enced average annual growth of over 10% in ened vigilance. transportation for workers so they can keep terms of the value of goods and services sold, Granma admitted that “the lack of building some government offices open later, Granma the daily reported. materials and furniture for decades make this said Feb. 20 in a report later quoted by AP. The group’s strongest revenue growth has element the target of acts of vandalism.” The goal is to have offices open at times been in non-ferrous metals, particularly cop- Apparently the worst-affected areas are the when people can use them before or after per and aluminum, due principally to their city of Havana as well as the provincese of La their own eight-hour workdays, taking advan- higher prices on world markets, Álvarez said. Habana, Cienfuegos, Villa Clara, Camagüey tage of an expanding economy. The growth in processed metals should con- and Holguín, showing theft is widespread. Trabajadores, published by Cuba’s tinue into the future, since the Cuban govern- To combat the problem, all angulars have Communist Party labor federation, reported ment’s introduction of a program calling for been welded to the height of 6 meters, though that some notaries and civil registries in the substitution of high energy consuming inspections show vandals will run higher risks Havana are already working until 8 p.m. and domestic appliances. by stealing angulars beyond that height. officials hope to expand hours at least some While the union is 100% owned by the Towers are reinforced with galvanized steel days of the week at child care centers, pri- Cuban government, its revenue currently elements to help them endure strong winds mary schools, hair dressers and workshops. exceeds costs, making it a self-sustaining and storms. When these are weakened by the The effort is linked to a government cam- business with no state subsidies, said Álvarez. removal of angulars, the towers can topple paign for greater discipline among workers, At the moment, the union collects, process- when hit by winds of only moderate intensity. with a crackdown on absenteeism, overlong es and resells 21 products, including scrap That's exactly what happened on Aug. 24, lunch breaks, sloppy work and theft. steel, copper, aluminum, welded iron, bronze 2006, when Havana and Pinar del Rio were left Officials were working to overcome prob- and stainless steel. It also works with wood, without power because towers missing the lems such as insufficient lighting and trans- recycled paper, cardboard, textiles and tires. necessary elements in their structure came portation at night while supplying meals and “We process the materials and sell them to down and in their fall damaged high-tension child care at different times for workers, other companies, [in] the paper, glass, textile, power lines. Trabajadores reported. and bottling industries. This is to say, we Yet most of the 8,000 or so towers in Cuba The Castro government has been gradually process the materials, add value to them, and are in rural, open spaces, making it nearly expanding services as its economy recovers sell them as primary and secondary material impossible to protect them against theives. from the shortages of the early 1990s. to Cuban industries,” he added. 14 CubaNews ❖ February 2007 PROVINCES Matanzas: Cuba’s tourism, citrus and hydrocarbon leader

BY ARMANDO H. PORTELA hen it comes to natural resources, Matanzas is one of Cuba’s best-

W endowed provinces. LUXNER LARRY Only 90 km (56 miles) east of Havana, Matanzas has excellent agricultural lands, abundant fresh water, an ample and deep bay, good transportation routes, numerous oil deposits and Cuba’s best-known tourist resort, Varadero. One of the island’s most important ecologi- cal reserves, the Ciénaga de Zapata, covers two-thirds of the land area of Matanzas, which with 11,803 sq km (4,559 sq miles) is the 2nd- largest province in Cuba, after Camagüey. This huge marsh, by far the largest of its kind in the Caribbean, has freshwater swamps, saline marshes, hammocks and bogs, rare birds and the endangered Cuban crocodiles. POPULATION In 2006, Matanzas had an estimated 681,695 inhabitants, or 6% of Cuba’s total population, down from 12.9% at the beginning of the 20th century. Its demographic growth has been Farmer and his horse plod along a lonely highway in Matanzas, Cuba’s second-largest province in size. rather modest compared to Cuba’s other pro- known as Progreso, is almost certain to be vinces; centuries of sugar farming and evenly This is the 6th in a series of monthly arti- cles on Cuba’s 14 provinces by geographer turned into a tourist attraction. In Cárdenas, spread croplands have led to the rise of small alcohol is distilled and used to produce rum at towns and villages, rather than large cities. Armando H. Portela, who has a Ph.D. in geo- graphy from the Soviet Academy of Sciences. the nearby Havana Club distillery. Nearly 19% of the province’s people live in Matanzas is also noted for citrus, with its the capital city, also called Matanzas, with Esteban Hernández (Guipúzcoa) will produce orchards producing one-third of Cuba’s citrus 129,346 inhabitants in 2006 (up from 75,000 in crops with the help of Israeli technology and 1959). Other leading cities are Cárdenas, with molasses and other derivatives, while José Smith (Progreso) near Varadero hopes to investment. These orchards are concentrated 80,832 inhabitants, followed by Colón north of Jagüey Grande; some 30,300 (44,520), Jovellanos (27,248), Jagüey Grande make some money as a tourist attraction. Of those, only three sugar mills will be hectares are in production, down from 48,800 (26,726) and Pedro Betancourt (18,000). hectares in 1989. Smaller towns are associated with sugar active in the 2007 harvest: Mario Muñoz, Jesús Rabí and René Fraga. According to the Production comes to 300,000 tons a year, mills or important highway junctions, such as with oranges accounting for 62% of the total Perico (13,000), Martí (11,000), Los Arabos government, the other 12 mills will be dis- mantled and cannibalized to support the pro- and grapefruit another 24%. Jagüey Grande is (10,000), Unión de Reyes (9,500) and Limonar also the site of a fruit-juice concentrate pro- (6,000). duction of those remaining active. The effects of the economic crisis of the In 2002, Matanzas produced 288,000 tons of cessing plant, though because of hurricanes, 1990s were somewhat milder in Matanzas sugar, worth $44.5 million at prevailing world the orchards in 2006 produced only 150,000 than throughout the rest of Cuba. Between prices. That’s a far cry from the nearly one tons — down from 500,000 tons in the 1980s. 1993 and 2000, the provincial economy grew million tons a year produced in the 1980s, INDUSTRY by 0.7% a year, falling to 0.4% from 2000 to when the crop was worth more than $550 mil- The finding of large quantities of hydrocar- 2006 — just above the national average in lion, thanks to preferential prices paid by the bons in Matanzas has pumped renewed vigor both periods but below the province’s annual Soviet Union. into Cuba’s energy-starved economy. 1.2% average increase during the 1970s. This year, the government plans to produce The Cárdenas-Varadero, Rangel and AGRICULTURE 120,000 tons, worth $29 million at current Seboruco-Yumurí oilfields have a combined world prices With a production cost of $179 For centuries, sugar cane was the back- yield of more than 27,000 barrels/day, equiva- per ton, the margin of the sugar industry in lent to 44% of national output. The produce — bone of the local economy — but the collapse Matanzas is around $8-10 million. of that industry, along with the emergence of a heavy, dense oil containing 6% sulfur — is Ironically, Matanzas — endowed with some used in specially adapted thermal power oil and tourism, is radically changing the of Cuba’s best soils — suffers the island’s province’s economic base. The downsizing of plants and cement industries. poorest sugar-cane yields. Overall, the The province produced 17.6 billion cubic Cuba’s sugar industry in 2002 left Matanzas province’s sugar lands produce only 30,000 with only eight out of 21 mills still producing feet of natural gas in 2006, or 75% of Cuba’s arrobas per caballería (10.3 tons per acre), total, andsis used to generate electric power. sugar or molasses. well under the 50,000 arrobas per caballería The remaining mills are Mario Muñoz (for- The Antonio Guiteras thermal power plant needed to make farming profitable; some with 330 MW capacity is reportedly the most merly Zorrilla); Mexico (Alava); René Fraga farms yield only 10,000 to 30,000 arrobas. (Santa Rita); Jesús Rabí (Porfuerza), España efficient in the country. It consumes 10,000 Two sugar refineries located in Cárdenas barrels/day of fuel oil. Republicana (España) and Juan Avila (Santo — José Smith and España Republicana — can Domingo). Recently a $33 million investment prepared Two other mills, Cuba Libre (Cuba) and produce roughly 10% of Cuba’s refined sugar, the plant to use domestic crude oil. Autho- though the José Smith refinery, formerly rities say that $50 million would be saved in February 2007 ❖ CubaNews 15 imported fuel, as the plant will produce 90% of its power with Cuban crude. Natural gas is used for power gener- ation at the Energas power plant near Varadero. The 200-MW facility is built and operated in association with Canada’s Sherritt International. Five large grupos electrogenos and a number of minor units installed during 2006 added 96 MW of capacity to the power industry in Matanzas. This year, plans call for a 12% increase in power generation capacity to 704 MW. The electrogen groups — local die- sel-powered generation plants with typ- ically less than 20 MW capacity each — are located in San Pedro de Mayabón, Los Arabos, Playa Larga, Playa Girón, Australia, La Rosa y Chirimoya. The textile mill Bellotex, near the city of Matanzas, is the main supplier of special fabrics for tobacco farming, pro- ducing 19.6 million yards a year. The old Rayonitro chemi- cal plant is a key supplier of fertilizers and sulfuric acid for Cuba. TOURISM Tourism is by far the most lucrative sector of the provincial economy. Varadero, with over 20 kilometers of white-sand beaches, is the No. 2 tourist destination in Cuba, after Havana. Thanks to new hotel construction, Varadero in 2005 had 14,300 rooms — up from 8,000 rooms in 1994. Since 2000 the number of visitors has increased modestly, while earnings trend to shrink. Still vast spaces of vacant lands and low exploited beaches are available at crude, to be shipped later to the Varadero for future developments. port and oil refinery at Cienfuegos Nearly 18,500 people work in tourism. through a 186 km-long pipeline capable of moving 134,000 barrels INFRASTRUCTURE per day. The six-lane National High-way, the However, the Cienfuegos refinery narrow old Central Highway and the — a cornerpiece of the entire sys- Central Railroad link Matanzas to the tem — remains hopelessly idle. rest of the island, while a dense net- The port of Matanzas used to be work of secondary roads and railroad one of the country’s busiest. At its branches reaches all settlements and heyday in the 1980s, more than 300 economic hubs. ships called there annually. In addi- The Via Blanca highway connects tion, 16% of Cuba’s sugar production Matanzas with Havana to the west; an was exported through the port —- electric train, built in 1916, still runs making it 2nd only to Cienfuegos. between Havana and Matanzas. Roads The bulk sugar terminal has a serving tourism areas are in fair shape, nominal capacity of 10,000 tons/day, while others are in very poor condition. though traffic is minimal these days. One of the last engineering projects The downsizing of the sugar indus- completed with Soviet assistance is the try will likely put a further damper petroleum storage and transporting on port activities. facilities of the port of Matanzas. Six miles northeast of Matanzas Originally designed for receiving, is Juan Gualberto Gómez Internatio- storing and distributing nearly all fuel nal Airport, now Cuba’s second- imports for Cuba, the facility was fin- busiest airport after Havana’s José ished just as the Soviet Union was col- Martí International Airport. lapsing, and has never been used to its Completed in the 1990s to replace fullest extent. the aging, inadequate Varadero air- The petroleum facility can receive port and accommodate the growing tankers of up to 150,000 tons and ware- tourism traffic, it can handle up to house half a million cubic meters of two million passengers a year. 16 CubaNews ❖ February 2007 CALENDAR OF EVENTS CARIBBEAN UPDATE If your organization is sponsoring an upcoming event, please let our readers know! You already know what’s going in Cuba, Fax details to CubaNews at (301) 949-0065 or send e-mail to larr [email protected]. thanks to CubaNews. Now find out what’s happening in the rest of this diverse and Feb. 22-Mar. 15: “It is Our Problem Too — The Women of the Prisoners of the Cuban fast-growing region. Spring,” Czech Embassy, Washington. Organized by People in Need and the Center for a Subscribe to Caribbean UPDATE, a monthly newsletter founded in 1985. Cor- Free Cuba, this photo-documentary exhibit looks at the lives of the wives and mothers of porate and government executives, as well the 75 Cuban dissidents jailed by the Castro regime in 2003. No charge. Details: Mary E. as scholars and journalists, depend on this Fetzko, Embassy of the Czech Republic, 3900 Spring of Freedom Street NW, Washington, DC publication for its insightful, timely cover- age of the 30-plus nations and territories of 20008. Tel: (202) 274-9105. URL: www.icdcprague.org/index.php?id=61&id_gallery=6. the Caribbean and Central America. Feb. 27: “Transition and the Cuban Military,” University of Miami. Panel discussion led When you receive your first issue, you have two options: (a) pay the accompany- by Hal Klepak, history professor at the Royal Military College of Canada, and former CIA ing invoice and your subscription will be analyst Brian Latell, author of “After Fidel” (see our profile of Latell, page 8 of this issue). processed; (b) if you’re not satisfied, just Cost: $15. Details: Institute for Cuban & Cuban-American Studies, University of Miami, PO write “cancel” on the invoice and return it. There is no further obligation on your part. Box 248174, Miami, FL 33124-3010. Tel: (305) 284-2822. URL: www.miami.edu/iccas. The cost of a subscription to Caribbean UPDATE is $267 per year. A special rate of Mar. 8: “The New Congress and US-Cuba Policy” Florida International University, Miami. $134 is available to academics, non-profit Comments by Dan Erikson, director of Caribbean programs at Inter-American Dialogue. organizations and additional subscriptions Part of the 2006-07 Cuba Lecture Series. No charge. Details: Cuban Research Institute, mailed to the same address. FIU, 11200 SW 8th St., Miami, FL 33199. Tel: (305) 348-1991. URL: http://cri.fiu.edu. To order, contact Caribbean UPDATE at 116 Myrtle Ave., Millburn, NJ 07041, call us Mar. 9: 4th Arab Latin Fiesta, Mona’s Lebanese Cuisine, Vancouver. Exhibition of Cuban at (973) 376-2314, visit our new website at www.caribbeanupdate.org or send an dancing among other things. Cost: $25 inc. dinner. Details: Chen Lizra, Latidos Productions, e-mail to [email protected]. We accept Vancouver. Tel: (604) 708-2170. E-mail: URL: www.latidosproductions.com/gallery.php. Visa, MasterCard and American Express. Mar. 24: “Habana Abierta in Concert,” Miami-Dade County Auditorium. Group’s music is described as “a fusion of Cuban roots mixed with pop, ruck, funk, reggae and hip-hop that delivers a new species of conga-funk, timba-rock, bolero-blues and son-pop.” Cost: $47, $38 and $29 depending on seating. Details: FUNDarte, Miami. Tel: (305) 547-5414.

Apr. 26: “Doing Business With Cuba,” InfoMart, Dallas. One-day workshop co-sponsored by Texas-Cuba Trade Alliance and International Trade Center/SBDC. Washington lawyer Editor & Publisher Bob Muse and Larry Luxner, publisher of CubaNews, to speak. Cost: $60. Details: Dr. Parr ■ LARRY LUXNER ■ Rosson, Texas A&M University, 464a Blocker Bldg. 2124 TAMU, College State, TX 77843. Tel: (979) 845-3070. Fax: (979) 847-9378. E-mail: [email protected]. URL: www.tcta.us. Washington correspondent ■ ANA RADELAT ■ May 23-29: Or Hadash/Next Generation Jewish Humanitarian Mission to Cuba. Orlando’s Political analyst young Jewish professionals organization to lead mission to support Cuba’s Jewish commu- ■ DOMINGO AMUCHASTEGUI ■ nity. Deadline to register: Feb. 28. Details: Congregation Ohev Shalom, 5015 Goddard Ave., Feature writers Orlando, FL 32804. Tel: (407) 645-5933 x233. Fax: (407) 296-7101. E-mail: orhadash- ■ VITO ECHEVARRÍA ■ [email protected]. URL: www.shalomorlando.org/content_display.html?ArticleID=205511. ■ DOUGLASS NORVELL ■ ■ HELEN J. SIMON ■

Cartographer INTERNATIONAL STOCK PHOTOS ■ ARMANDO H. PORTELA ■ If your business needs high-quality photo- graphs of Cuba — or anywhere else — to (ISSN 1073-7715), founded in 1993, illustrate annual reports, articles, bro- is published every month by Luxner News Inc., PO Box 1345, Wheaton, MD 20915, USA. chures or presentations, you’ve come to Subscriptions: $429/one year, $800/two years the right place. Luxner News Inc. has over (special rates available to academics and non-pro- 13,500 color images on file from 82 coun- fit groups). Please visit www.cubanews.com to learn more about our newsletter. tries in North, South and Central America, To order a subscription, call custo- the Caribbean, Africa, Europe, the Mideast mer service at (301) 452-1105, fax us at (301) 949- and Asia, depicting a variety of topics 0065 or send an e-mail to [email protected]. ranging from agriculture and aerospace to Contents may not be distributed by any means without prior written permission of the publisher. tourism and zoology. For details, please Luxner News Inc. grants authorization to photo- call Luxner News Inc. at (301) 452-1105 copy items for internal or personal use, provided or search our user-friendly website at: the appropriate fee is paid directly to Copyright Clearance Center, 222 Rosewood Drive, Danvers, www.luxner.com MA 01923. For details, visit www.copyright.com.