Vol. VIII, No. 9 www.cubatradenews.com September 2006 ‘No news’ is ’s biggest news For one month, Cuban institutions, led by pushing for drastic political transformation. a collective of politicians while Fidel Castro Communist Party daily Granma in early has been recovering from surgery, have been August provocatively headlined a front- functioning normally. page article “The transition already Although Cuban American leaders in happened, stupid!” Miami immediately called for — and However, Spokesman Tony Snow told President George W. Bush and Secretary of reporters that the White House would only State Condoleezza Rice indirectly revisit the embargo if there was substantial encouraged — massive civil disobedience political change in Cuba. on the island, there are no signs of unrest, “There is no change in policy, and that’s both inside and outside the government. the most important thing to keep in mind,” Dissidents kept a relatively low profile Snow said at a press conference in throughout August. The only visible Crawford, Tx. Aug. 8. measure Cuba’s armed forces have taken Reacting to the lack of “transition” news was to call reservists to duty. from Cuba, Thomas Shannon, the State Cuba’s continued normalcy suggests a Department’s head of hemispheric affairs, lack of influence on the island by a U.S. photo Minrex Also see ‘verbatim,’ p. 3 Continued on page 5 administration and exile groups that are Raúl Castro: Low profile Embargo Updatet Economy OFAC BLACKLISTS DUTCH-CUBAN BANK JAMAICAN JV PROPOSES FIBER LINK Raising concerns among U.S. agricultural exporters already Trans-Caribbean Cable Co. Ltd. (TCCC Jamaica), hit by stagnating Cuba sales, the U.S. Treasury Department’s one of three companies licensed by the Jamaican government Office of Foreign Assets Control (OFAC) temporarily to operate fiber-optic undersea cables to the Caribbean island, withheld several Cuban payments. At the same time, OFAC wants to build a link to Cuba. sent “cease and desist” letters to U.S. companies being paid Theoretically, construction could begin as early as December by Cuba with letters of credits facilitated by a subsidiary of this year, the Jamaica Gleaner reports. Dutch financial giant ING Barings. Mostly due to the U.S. embargo, previous proposals to Continued on next page connect Cuba to the world with a fibre-optic link have failed. Up to now, Cuba must rely on more expensive and lower- U.S. exports to Cuba, 2006 performing satellite connections to connect to the Internet. (Jan.-Jun., mln US$) TCCC Jamaica is a joint venture between Jamaica Network Month Total % change Access Point Ltd. (JNAP) and Trans-Caribbean Cable Co. January 35.246 +14.6 LLC. Trans-Caribbean Cable Co. LLC, a Bedminster, N.J.- February 29.325 +31.1 based carrier-neutral project development company, is headed by Brian Crawford, a former executive for AT&T Submarine March 32.522 -23.1 Systems, New World Network and Pacific Gateway Exchange. April 45.387 +21 Crawford didn’t respond before deadline to questions May 18.215 -27.5 regarding U.S. embargo restrictions. June 24.308 -29.2 Trans-Caribbean Cable Co.’s proposed Trans-Caribbean Total ‘06 185.003 -3.9 Cable Network (TCCN) would connect the Caribbean with the United States and the world via a hub in Miami. TCCC Source: U.S. Department of Commerce, USITC Continued on next page E c o n o m y Jamaican JV, from previous page Proposed TCCN fiber-optic network Jamaica’s original license permits the company to build a cable from Kingston to . TCCC Jamaica recently asked Jamaica’s Office of Utilities Regulation to amend its license to include an undersea cable from Kingston to Santiago de Cuba.

TCCC created a new cooperation model it calls “virtual s consortium,” which is different from both the traditional consortium and private models.

E m b a r g o

rade & Investment New

OFAC blacklists, from previous page OFAC blacklisted Netherlands Caribbean Bank N.V.,

which facilitated letter of credit payments by Cuban state map: TCCC, Cuba T

food importer Alimport SA to U.S. sellers, in late July. The proposed Jamaica-Cuba link is in bold red Spokeswoman Molly Millerwise said OFAC put the Curaçao- based bank on the list of “specially designated nationals and blocked persons” because it is 50-percent owned by “Cuban nationals.” NCB is a 50-50 joint venture of ING Barings with OFAC’s actions caught exporters at a politically vulnerable Gilmar Project Finance Establishment (Grupo ACEMEX) time. Congress, which has been exporters’ main channel of and Banco Popular de Ahorro. pressure on the Bush Administration, is out of session. The According to a foreign finance executive in , parliament will reconvene after Labor Day Sept. 5, but Netherlands Caribbean was among several foreign banks who sessions will only last 15 days before midterm elections, stopped dealing in U.S. dollars with Cuban clients recently. severely limiting the agenda. Because of this, Alimport should have absorbed the shock quickly. Our editorial advisory board: “I can’t imagine that the Cubans don’t have working contingency plans,” the businessman told Cuba Trade & •Chris Aberle, director of sales, FCStone Group, Des Investment News. “So I would expect no great shakes in Moines actual business.” •Michelle Butler, CEO, Navarretta Group, San Diego OFAC’s interpretation of the law is forcing Cuba to adhere •Jorge A. Echave, general manager, Vitality Foodservice, to a complicated and costly payment procedure. Alimport Dade City, Fla. usually opens up a letter of credit with a third-country bank •Kirby Jones, president, US-Cuba Trade Association, when a U.S. exporter’s goods have arrived at a U.S. port. Washington, D.C. Once the exporter has received the money from the third- •David Lyons, editor, Daily Business Review, Miami. country bank, the ship can leave the port. Due to this •John McAuliff, executive director, Fund for arrangement, if payments and goods are withheld, Cuba must Reconciliation & Development, . bear the additional cost caused by any delay. •Phil Peters, vice pres., Lexington Institute, Arlington, Va.

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2 Tracking Verbatim: Raúl Castro ‘Disposed to normalize relations’ the Embargo Below we reprint excerpts from an interview with Communist Party daily Granma by Raúl Castro that some interpreted as tending an olive branch towards the United by Paolo Spadoni States. Most of the statements were aimed at Washington. The interview ran on Information blockade? Granma’s front page Aug. 15, under the headline “Important statements by Raúl.” The Cubans already broke it About his low relations on an equal public profile: plane. What we do not While the end of Fidel Castro’s “If you are referring accept is the arrogant rule over Cuba appears in sight now to those in other and interventionist that he has temporarily relinquished countries who policy frequently power to his brother Raul due to entertain themselves assumed by the current illness, the Bush administration is by speculating about administration of that stepping up efforts to bring about the if I am going to appear country.” collapse of the island’s communist on television or in the Raúl Castro went on system and its transition toward a papers or not; well, I to quote a Fidel Castro more democratic form of appeared with Fidel speech of 1986: “As we government. on [August 13] and have demonstrated The latest report of the when I received many times, Cuba is not Commission for Assistance to a Free President [Hugo] remiss to discussing its Cuba, approved by President Bush Chávez , although prolonged differences in July, includes a set of really those with the United States recommendations ranging from comments don’t Defense Minister Raúl Castro and to go out in search tighter enforcement of existing bother me in the of peace and better economic sanctions against the slightest. What does interest me greatly relations between our people. But that Castro regime to an offer of is what our people are thinking (…). would have to be on the basis of the most prioritized assistance to a Cuban As a point of fact, I am not used to unrestricted respect for our condition as transition government that moves making frequent appearances in public, a country that does not tolerate shadows rapidly on the road to democracy. except at times when it is required. on its independence (…).” Yet, the core of Bush’s plan lies in Many tasks related to defense should its attempt to empower Cubans who not be made public and have to be On the ‘Bush Plan’: want change by breaking handled with maximum care, and that “For a while now we have been the’“regime’s information blockade” has been one of my fundamental adopting measures to confront those through broadcasting and the responsibilities as [defense] minister. plans. These were reinforced particularly Internet. Over the next two years, Moreover, I have always been discreet, when the current U.S. government the U.S. government will make that is my way, and in passing I will initiated the unbridled warmongering available $80 million of taxpayers’ clarify that I am thinking of continuing policy that it has maintained to date, money to intensify the Spanish- in that way. But that has not been the including the announced intention to language transmissions in Cuba of fundamental reason why I don’t appear attack without previous warning any of its Miami-based TV Marti via very often in the mass media; simply, those places that they call the ‘sixty or satellite, expand third-country it has not been necessary. Effectively, more dark corners of the world.’” broadcasting into the island, and [Fidel Castro’s July 31] Proclamation provide civil society groups with the gave the information that could be On Washington’s transition plans necessary equipment to receive given at that time and moreover, and the secret appendix: uncensored news from abroad. proposed specific tasks for everyone. “What other form exists for obtaining But there is one major problem The main thing is to dedicate oneself these goals that is not military with the U.S. plan. in body and soul to fulfilling them.” aggression? Thus, the country adopted Cuba’s information blockade has the pertinent measures for counteracting already been broken and a policy of On U.S. policy: that real danger. (…) The United States engagement may prove itself way “At this juncture, they should be very government is not revealing the contents more effective than one of clear that it is not possible to achieve of that appendix because it is illegal. Its confrontation and hostility in anything in Cuba with impositions and publication must be demanded, above all Continued on next page threats. On the contrary, we have now that they have spoken about its always been disposed to normalize Continued on next page

3 Verbatim: Raúl Castro Economy

‘Disposed to normalize,’ from previous page Cuba hosting big Summit existence in order to threaten Cuba. (…) We could not rule The organizers of the 14th Non-Aligned Movement out the risk of somebody going crazy, or even crazier, within summit, Sept. 11-16 in Havana, expect at least 60 heads the U.S. government.” of state, delegations from 116 nations, and hundreds of reporters to participate in the event at the convention On Radio/TV Martí: center in a western suburb of the capital. “Previously, they were using, at varying intervals, a military The summit is one of the largest international events airplane known as Comando Solo. From this past August 5, the island has hosted in nearly three decades. they began using another type of aircraft that has effected Part of the nearby Miramar Business Center will be daily transmissions. On August 11, it did so in conjunction converted into a press center, complete with 200 computers with the aforementioned Comando Solo. In fact, on the 5th and Internet access and 300 laptop hookups. and 6th, our radars detected that transmissions were being Visiting heads of state include Iran’s president, made from international waters, in outright violation of the Mahmoud Ahmadinejad, Indian Prime Minister agreements of the International Telecommunications Union, Manmohan Singh, and Pakistani President Pervez to which the United States is a signatory. (...) Moreover, these Musharraf. transmissions are affecting broadcasting in our country.” •

Tracking the Embargo (contd.) Since 1990, when broadcasting of the highly politicized TV Marti began, the Castro government has successfully facilitating the Cuban people’s access to independent jammed the station’s signal, making its transmissions almost information and exposing them to different values and ideas. impossible to be seen anywhere on the island. The jamming A frequent issue raised by U.S. scholars who support is at times so heavy that Cubans cannot even tune into Washington’s embargo against its communist neighbor is national channels. Furthermore, the number of viewers is that other countries’ engagement with Cuba, especially since likely to remain fairly small despite U.S. attempts to beam the demise of the former Soviet Union in the early 1990s, TV Marti into Cuba via satellite and provide more people has failed to produce substantial changes on the island. In with parabolic antennas. effect, leaving aside Fidel’s health troubles, the political landscape in Cuba has remained virtually unaltered and the No interest in bias government continues to enjoy a monopoly on all media The reality is that Cubans are eager to gain true knowledge outlets and maintains strict control on Internet use. of different societies and draw their own conclusions about However, people-to-people contacts promoted by foreign the things they might be missing out. They are not interested countries through tourism, academic, cultural, and religious in receiving biased information that simply reflects the views activities have had a profound and lasting impact on Cuba’s of the anti-Castro exile community in the United States. communist society. A decade and a half of international According to the Bush administration’s estimates, the tourism, for instance, has contributed more to changing island’s weekly listeners of Radio Marti, whose shortwave Cubans’ minds and their attitude toward the Castro signal is not jammed by Cuban authorities, represent less government than almost 50 years of U.S. sanctions, often than 2% of the Cuban audience. In contrast, on certain days used by Cuban officials as a scapegoat for the shortcomings when atmospheric conditions allow some Florida TV of their system. channels to be seen on the coast East of Havana with regular antennas, Cubans spend countless hours watching English- Quite informed language programs they can barely understand. A large number of Cubans, mainly in Havana, are quite As U.S. Secretary of State Condoleeza Rice recently said, informed about how people from other countries live their “a genuine transition to political and economic freedom must lives and the kinds of freedoms they enjoy under different be led by the people of Cuba.” In order to influence that political and economic systems. Although individual transition, the United States should relax travel restrictions perceptions may not always be accurate, there is little doubt on American travel to the island and foster people-to-people that Cubans’ demands or hopes for change (even if free contacts, rather than wasting millions of dollars of taxpayers’ healthcare and education tend to be taken for granted) are money to infiltrate an iron curtain that no longer exist. in most cases a direct consequence of daily contacts with foreign visitors, including those from the United States. Paolo Spadoni is a visiting assistant professor in the Cubans learned about the virtues of alternative systems department of political science at Rollins College in Winter neither from state media nor from U.S. broadcasting. Park.

4 E c o n o m y

MILITARY GETS ANOTHER MINISTRY ‘No News,’ from p. 1 The Council of told Latin American journalists in mid-August that while State and Politburo the transition had aleady begun, it’s going to happen in appointed Ramiro “slow motion.” Valdés Menéndez, Meanwhile, First Vice President and defense minister 74, a veteran of the Raúl Castro, to whom Fidel Castro temporarily delegated revolutionary the country’s and party’s leadership after surgery July 30, movement, to head has kept a relatively low profile and didn’t make his first the Informatics and public appearance until more than a week after the Communications temporary transfer of power (also see p. 3, Raúl Castro Ministry. Valdés, verbatim). Vice President Carlos Lage in early August who is succeeding traveled to Bolivia and Colombia, signaling normalcy to civilian Ignacio observers abroad. A political skirmish with Costa Rica’s González Plana, is President Oscar Arías was managed, Fidel Castro-style, yet another member by Vice President Carlos Lage.. of the armed forces Parliament President Ricardo Alarcón said Aug. 6 that to play a top role in Fidel Castro would return to power, but abandon day-to- Cuba’s economy. day work. This would leave a collective to execute policy. As president of “Even though it’s not clear whether all core players the Grupo de Valdés Menéndez accept the idea of collective government,” one foreign Electrónica, Valdés observer said, “they share, for now, three positions: No gained “vast experience” in the industry and showed outside intrusion, national unity, and continuity of the “positive results,” an official note said. Valdés visited China current social, political and economic model. Once four times while in charge of the group. Grupo de Electrónica transition issues have been settled, reforms can be tackled.” imports and assembles computers and appliances. Phil Peters, an analyst with conservative think tank In the 1970s, Valdés was interior minister, but he Lexington Institute in Washington, suggests that if current disappeared from the political stage in 1986 for nearly a trends continue, there will be “plenty of time to turn over decade. the reins of government, and for Cubans to become The note said about his predecessor only that he was accustomed to the change.” “assigned to other tasks.” advertisement Focused. Low Prices.

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5 E c o n o m y HOUSING PROGRAM LAGGING The billion-dollar “Programa de Vivienda” (Housing Central Santiago gets makeover Program) will not meet its ambitious goals, Communist Party Following the model of Old Havana, the center of daily Granma reports. Cuba’s second-largest city, Santiago de Cuba, is about During the last quarter of 2005 and the first half of 2006, to see a major conserviation program. 79,410 homes and apartments were built and refurbished in The “Proyecto Centro” in Santiago encompasses 380 Cuba. More than 48,000 were completed during the first six blocks and will be managed by the office of the months of the year, approaching a likely goal of 119,000 for “Conservador de la Ciudad,” headed by architect Omar the 15-month period. Original plans talked about 150,000 López López points out that the project will mainly be projects. about stopping the deterioration of buildings, not According to official estimates, around 500,000 homes and restoring them. apartments are needed to cover the existing housing deficit; Officials didn’t put a price tag on the first phase of the nearly half of existing homes need substantial repairs. project, which is expected to last through 2010. Eastern Construction activity seems to be picking up steam after a Santiago province is among the poorest in the country. slow start and repeated calls to people to take charge. The Part of the funds from Old Havana’s restoration comes program is mostly based on the self-initiative by owners and from tourism. Dozens of hotels and gastronomy businesses tenants. It’s the owners’ responsibility to plan and execute are owned by Habaguanex S.A., a subsidiary of the the project. The state provides material, labor and expertise Oficinia del Historiador in Havana. at subsidized prices. The program prioritizes applicants who The best-known attractions within Proyecto Centro are suffered hurricane damage and those with “political merit.” the cathedral, the Emilio Bacardí Museum, and the former Forty-five percent of all renovation projects finished Moncada military barracks, made famous by Fidel through June this year were repairs to hurricane-damaged Castro’s 1953 assault. roofs. Most of the new roofs are made of metal and thus more stable, Granma said.

LAW REGULATES FOOD RESERVES The Council of Ministers in June published a regulation for material reserves. Cuba maintains an extensive system of warehouses to provide food security to the entire population in times of war or natural disasters. The 14-page “Reglamento del Sistema de Reservas Materiales” prescribes that all business entities, including foreign joint ventures, must participate in preparations. Most goods, however, are stored in warehouses run by the Ministry of Economy and Planning and the armed forces. A large share of Cuban food and agricultural purchases in the United States goes towards Cuba’s emergency reserve system.

Central Santiago photo Cubatravel.cu Storms trigger cooperation During Hurricane Ernesto, the National Hurricane STORM BRINGS DROUGHT RELIEF Center in Miami and Cuba’s meteorological institute cooperated on storm tracking. Among others, Cuba Cuba mainly benefited from Tropical Storm Ernesto’s allowed U.S. Air Force C-130 “” to fly passage through the eastern part of the island. While 500,000 into Cuban airspace twice a day. The cooperation started people were evacuated and minor damage was inflicted by three years ago, but for the first time, the National the storm, it also filled reservoirs in eastern Cuba, which Hurricane Center officially thanked Cuba for its has been suffering from the drought of the century during cooperation. the past few years. The rains benefited mainly the eastern provinces of Las Tunas, Camagüey, Granma, Santiago de Cuba and Guantánamo. Reservoirs in Santiago and Guantánamo, most Flying in Cuban affected by the drought, are now at 94 percent and 91 percent airspace: U.S. of capacity, respectively. Air Force C-130 Camagüey province, which was only partially in the path ‘Hurricane Hunter’ of Ernesto, now is the driest on the island, with reservoirs remaining at 49.5 percent of capacity.

6 E c o n o m y Chávez pushing for offshore oil JV In a two-hour speech Aug. 10 at an oil camp in Venezuela, technology of Petrobras we would support oil exploration in President Hugo Chávez said he urged Fidel Castro in a Cuba,” Chávez said. personal message to retake the project of deep-water oil Petrobras pulled out of Cuba after a failed offshore attempt exploration, with the participation of state company PdVSA in the 1990s. However, the Brazilian state company opened and Brazil’s Petrobras. an office in Havana last year, partly to pursue its offshore “Yesterday night, I told Fidel that it would be interesting interests on the island. to revive the project of deep-water drilling in Cuba,” AFP Canada’s Sherritt International Inc. is seeking partners for quoted Chávez as saying. “Petrobras has the most advanced offshore blocks it leased from the Cuban government. drilling technology.” Although it cooperates with Cuba in many areas, PdVSA has “We could go together, Petrobras and PdVSA. With the not yet been involved in offshore exploration efforts in Cuba. NICKEL PRICE KEEPS RISING Nickel prices on the London Metal Exchange hit a new Up, up, up record of $34,000 per ton for cash buyers Aug. 29 and are Nickel price on LME, 2006 (cash buyers) predicted to remain on high levels as LME inventories are low and demand for stainless steel remains high. Nickel is Cuba’s main export product and No. 2 hard- currency generator. Nickel prices on the LME have doubled since the beginning of the year. Major new nickel mining projects, including a Chinese joint venture in Cuba, have been delayed. Demand for stainless steel, mainly driven by industrial growth in China and India, for the first time in years began to soften towards the end of last year. However, demand has recovered and is showing no signs of slowdown even during low-demand summer months in the northern hemisphere. While some observers believe prices may still rise, they expect a slowdown cycle to take effect in the mid-term, possibly due to lower import demand in China. BANK BOOSTING CUBA LOANS Venezuela swaps ambassadors in Havana Venezuela’s Banco Exterior (Bancoex) is seeking to increase Venezuela replaced one high-profile ambassador in its line of credit for both Venezuelan and Cuban companies Havana with another one. Adán Chávez, the president’s from $100 million to $300 million, El Tiempo de Caracas older brother, left the embassy Aug. 5 to become minister reported. A Bancoex official said that $88 million of the $100 of the nation’s Presidencia. President Hugo Chávez million line of credit has been used. confirmed Sept. 2 the appointment of Alí Rodríguez, former Bilateral trade of non-traditional goods such as metal leftist guerrillero, head of state oil company PdVSA, and products, construction, food, furniture, textiles and shoes could OPEC president. Rodríguez, 69, a crucial power broker rise to between $400 million and $500 million this year, the in the Venezuelan bank official said. government, resigned as foreign ‘MILAGRO’ CAPACITIES EXPANDING minister Aug. 9 after suffering a The government increased the number of surgeons at the minor heart attack. Instituto de Oftalmología in Havana, a core part of the As foreign minister, “Operación Milagro” surgery program, from 14 to 34 and he worked for close built 20 new surgery rooms. Operación Milagro, which relations with Cuba provides free eye surgery to thousands of low-income Latin Alí Rodríguez and was chief Americans, is financed largely by the Venezuelan government. promoter of the Twenty clinics in Cuba and dozens in other Latin American ALBA cooperation agreement with Cuba and Bolivia. countries have provided free surgery to 265,000 patients under Venezuela is Cuba’s No. 1 trade partner and main supplier the program. The program is expected to eventually treat of oil. Bilateral trade is expected to increase to $1.8 billion millions of people. this year from $1.6 billion last year, thanks to ALBA. The expansion will allow the Havana clinic to perform surgery on up to 500 patients daily.

7 E m b a r g o U.S. Patent Office denies Cuba ‘Havana Club’ rights The U.S. Patent and Trademark Office declared Cuba’s Bacardi’s Havana Club, whose launch is planned for Florida, registration of the Havana Club trademark as “canceled/ will be a -made clear rum, not dark as the Cuban expired,” allowing Bermuda-based rum maker Bacardi Ltd. original. to begin selling Puerto Rican rum under the name in the United States. Watchdog group targets Bacardi contributions The National Foreign Trade Council warned that the Citizens for Responsibility and Ethics (CREW) accused decision may produce backlash for U.S. trademarks in Cuba Sen. Mel Martinez (R-Fla.) before the Federal Election and elsewhere. Commission (FEC) of having accepted illegal contribu- The Patent Office’s determination marked the end of a tions from Bacardi USA. CREW alleges that in 2004 decade-long battle between Cuba and French liquor giant Martinez, a leading anti-Castro activist in Congress, re- Pernod Ricard on one side, and exile Cuban-owned Bacardi ceived $60,000 in illegal campaign contributions from the on the other side. The battle over the rights to the Havana liquor giant owned by exile Cubans. Club name in the United States went all the way to the U.S. Supreme Court, as well as to the World Trade Organization ‘TRANSITION’ FUNDS STALL IN SENATE in Geneva. Am amendment that would have set aside up to $80 million A turning point in the court battle came in 1999 when to finance opposition groups and a transition government in Bacardi managed to have a clause inserted in U.S. trademark Cuba stalled in the U.S. Senate in early August due to law that prevents the United States from renewing Cuban Democratic objections. Minority Leader Dick Durbin (D-Ill.) trademarks that were confiscated from their owners. said he would revive the issue after summer break in The recent Patent Office’s ruling came a few days after the September. The legislation was sponsored by Sens. Bill U.S. Treasury’s Office of Foreign Assets Control (OFAC) Nelson (D-Fla.), Mel Martinez (R-Fla.) and John Ensign (R- denied a Cuban government agency the license needed for Nev.). “The [amendment’s] message will be, `The United U.S. trademark renewal. A federal appeals court told Pernod States stands with you’,” Sen. Nelson told Forbes magazine. Ricard in June it never had the right to pursue the matter in “Be ready to assert your independence.” U.S. courts because it didn’t hold the proper OFAC license. The measure was recommended in the president’s Bacardi claims it bought the brand from the Arechabala “Assistance to a Free Cuba” report. family, who made Havana Club rum in Cuba from 1935 to CUBA TRAVEL GROUP AT ASTA SHOW 1960, when it fled the island. Pernod Ricard said in a statement it would appeal in a U.S. The Travel Industry Committee on Cuba (TICC), a U.S. court against the Patent Office decision and that it was association that promotes travel to Cuba, announced it will “confident” to regain the U.S. rights of Havana Club. Bacardi have a booth that the annual ASTA trade show, the world’s officials said they would now fight for the rights to the Havana largest convention of travel agents, in Orlando Sept. 10-12. Club name outside the United States. TICC will host a reception at the event Sept. 11. In other news, Andrea Holbrooke of Holbrooke Travel in Gainesville, Fla. advertisement agreed to serve as acting chair of TICC. NEW! Cuba Trade & Investment News ++Life is fast++ is announcing its NEWS FLASH service. Receive substantial, up-to-the minute, late-breaking news about Cuba as it happens, ...Let us help you directly to YOUR e-mail account. stay ahead... News Flash service for Cuba Trade subscribers: $75/year Standalone News Flash service: $100/year

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8 C O N F E R E N C E S & E V E N T S NewsNews fromfrom thethe

•Doing Business with Cuba, USCTA seminar, Arkansas, Sept. 6 SalesSales DepartmentDepartment th •10 International Transportation Fair (FIT), Havana, Sept. 27-30 ++A company controlled by the Navajo nation signed a letter •3rd International Manning, Training & Maritime Transport Fair, Havana, Sept. 28-29 of intent with Alimport S.A. for the sale of pinto beans, yellow •9th Int’l. Congress of Industrial Recycling, Havana, Oct. 9-13 corn, wheat, apples and onions. Navajo Agricultural •Metanica 2006 (Metal and Metal-mechanic industries Products Industry (NAPI) General Manager Tsosie Lewis convention), Havana, Oct. 9-13 was part of a delegation to Havana led by Rep. Tom Udall •4th Int’l. Meeting on Biodiversity and Tourism (BIOTUR), Playa Pesquero, Oct. 26-28 (D-N.M.) and New Mexico Secretary of Agriculture Miley •International Havana Fair (incl. U.S.-Cuba round of Gonzalez. NAPI cultivates 68,000 acres in New Mexico and negotiations), Oct. 30-Nov. 4 employs 400. Navajo President Joe Shirley Jr. described the th •11 World ‘Sports for All’ Fair, Havana, Oct. 31-Nov. 3 letter of intent as a trade agreement between two sovereign •28th New Latin American Film Festival, Havana, Dec. 5-15 nations.++ Call (941) 330-0303 or send an e-mail to ++In July, a New York-area business delegation led by [email protected] for more information on events consultants Tony Martinez and Felix Ortiz of Bronx-based Visionary Trade and Export visited Havana. Alimport S.A. signed one letter of intent to buy oil, mayonnaise and butter from Plantation Foods, and one letter of intent to buy meat E m b a r g o from Titan Capital Management LLC. Manhattan attorney Michael Washor represented both companies. OFAC FINES BAPTISTS Representatives for both companies plan to travel to Cuba The U.S. Treasury Department’s Office of Foreign Assets again in October with specific offers.++ Control (OFAC) said it fined the Alliance of Baptists $34,000 ++Just weeks after Cuba signed a trade agreement with for engaging in tourist activities while traveling in Cuba for Mercosur, a Cuban delegation headed by Foreign Trade religious purposes. OFAC cited trips by four member Minister Raúl de la Nuez visited Uruguay and Paraguay in congregations. Specifically, OFAC said that a group from an August. Part of the trip were “rounds of negotiation” with Alabama member church in 2005 visited tourist sites in Cuba. local businesses in Montevideo and Asunción. ++ The Washington-based Alliance, a roof organization for 117 churches which has criticized the Bush Administration’s Cuba NewNew playersplayers policy in the past, maintains the visits were actually religious work. The Alliance said it will appeal the fine. •The Foreign Trade Ministry in February granted China’s OFAC revoked the Alliance’s travel license last year. Zhengzhou Yutong Bus Co. Ltd. a license to set up a Meanwhile, two of the four Alliance member congregations subsidiary in Cuba. Yutong has sold hundreds of intercity buses whose trips were cited by OFAC received their own travel to Cuba and provides after-sales maintenance services. Cuba licenses anyway. is also negotiating with Yutong to assemble buses on the island. OFAC has denied travel licenses to several major religious •Hotelsa Alimentación S.L. received permission to open groups recently, including American Baptist Churches, the a subsidiary in Cuba. Hotelsa is a Palma de Mallorca-based United Methodist Church, the Disciples of Christ and the group of companies that supplies hotels in Spain, the National Council of Churches. Caribbean and Mexico with food and beverage services and products. The best-known brand of the group is Magic Drinks, OFAC SENDS WARNING TO AGENCIES which provides cocktail products. The U.S. Treasury Department’s Office of Foreign Assets •The Foreign Trade Ministry authorized state company Control (OFAC) sent a letter to Cuba remittance agencies in Representaciones Platino S.A. to become the Cuban agent the United States Aug. 11, warning that sending convertible of Olinet International S.A. The Panamanian company Cuban pesos (CUC) to Cuba violates U.S. restrictions, El distributes brand-name IT and telecom products. Nuevo Herald reported. •The Light Industry Ministry created Holplast S.A. as part The warning was based on findings from recent audits, the of the Grupo Empresarial de Ingeniería y Logística letter said. Cuba in 2004 imposed a surcharge on the exchange Hidráulica. The Holguín-based company will manufacture of U.S. dollars. OFAC said it only allows remittances in U.S. and distribute plastic water tubes. The government is investing dollars, euro, Canadian dollars, British pounds and Swiss in water infrastructure project in response to the drought in francs. eastern Cuba. Some 100 agencies in the United States and Puerto Rico •The Foreign Trade Ministry authorized Empresa are authorized by the Treasury Department to send remittances Comercializadora de Metales S.A. (COMETAL) to directly to Cuba. Remittance services have boomed since the Bush import goods. Among others, the Havana-based company Administration imposed more restrictions on family travel in makes components for modular buildings and builds, installs summer 2004. and maintains elevators.

9 C o m p a n y B r i e f s

Toronto-based Sherritt International Corp., Cuba’s largest Iran Railroad Co. will sell Cuba 80 used rail cars valued nickel and oil producer, reported a higher second-quarter at $5.6 million. Forty of the bulk cement cars are scheduled profit, partially thanks to a one-time tax-change gain. Sherritt to be shipped from Bandar Abbas to Havana within the next earned US$50.7 million in the three months ended June 30. five months and the rest would be delivered within 10 months. That is up from a restated profit of $48.65 million for the Iran’s Pars Wagon Co. recently signed an agreement to same period last year. Meanwhile, total revenue fell to $269 deliver 500 new freight cars to Cuba. million from $292 million, despite record-high nickel prices. *** Sherritt blamed “process bottlenecks” in nickel and cobalt The City of Havana started a pilot project with digital traffic production which were resolved during the quarter. Sherritt lights made by China’s Lopus Co. Ltd. Nine of the traffic started construction work in the quarter at its Moa nickel and lights, imported by Grupo Electrónica’s GKT subsidiary, cobalt facility in Cuba, a joint venture with state-owned are already installed along Havana’s Fifth Avenue. The lights Cubaniquel. Sherritt is evaluating a plan to increase indicate to pedestrians and drivers how much time they have production in Moa in phases, allowing for a 4,000-ton left before a change. production boost before the 2008 construction deadline, to *** take advantage of high nickel prices. Universiti Sains Malaysia’s medical school is working *** with Cuba’s Finlay Institute to develop vaccines for Montreal-based Pebercan Inc. said it plans to drill 10 firm tuberculosis and meningitis. The joint venture will first wells during 2006, including six on the recently discovered produce a TB vaccine. Santa Cruz field, three on Seboruco and one on Canasi. The *** company also plans for eight conditional wells, depending on Reflecting its optimism about Cuba, Spanish hotel operator the drilling results of the firm wells. Pebercan said it is trying Grupo Barceló SA said it plans to open six more hotels by to obtain an extension from Cuban authorities to continue oil 2010 on the island for a total of 4,500 rooms. Two of the exploration on some of its onshore blocks. The company hotels would operates on the Santa Cruz field in a joint venture with Sherritt. be located on *** Cayo Santa Havana Club Holdings, the joint venture with Paris-based María and Pernod Ricard SA that distributes Havana Club rum, said Cayo Santa in August that brand sales were up 40 percent in Cuba this Lucía. year. The increase is due to the rise of tourism, but also to Barceló rising consumption among Cubans, an official said. currently *** administers Beijing Hualin Special Vehicle Co. Ltd. sold 15 trash three hotels on pickup and four big trash compacting vehicles to the City of the island, with Havana. The Chinese company, based near Beijing, has a a total capacity Barceló’s first hotel in Cuba: Solymar contract to deliver 92 vehicles to Cuba. of 1,500 rooms.. in Varadero

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