2003_08/CubaNews 8/8/03 12:47 PM Page 1

Vol. 11, No. 8 August 2003

www.cubanews.com

In the News Cuba’s power structure undergoes its

Texas port bonanza biggest housecleaning since mid-’70s Corpus Christi signs shipping agreement BY DOMINGO AMUCHASTEGUI CONRADO MARTÍNEZ CORONA with Cuba’s Alimport ...... Page 3 ver the last six months, Cuba has seen the Age 54 and white, promoted from the ranks of most extensive overhaul of its ruling Communist Youth Union (UJC) to the PCC’s Onomenklatura since before the holding of Central Committee (CC) and president of Poder Organopónicos the First Communist Party Congress in 1975. Popular in the city of Havana. Food shortage sparks growth of neigh- Cuba’s dismal economic performance and Removed after political clashes with current borhood organic farms ...... Page 4 President Fidel Castro’s persistent reluctance to UJC leaders, Martínez was appointed head of the adopt the necessary reforms to lift Cuba out of Havana Convention Bureau. He was replaced by its current situation has forced him to replace Juan Contino Aslan, 43 and white. Contino, who Experts meet in Miami more than a dozen Party and government big- has a degree in economics, was promoted from Economists present over 50 Cuba papers shots — thereby giving ordinary Cubans the the ranks of UJC’s top leadership to the CC in 1991; he’s been head of the CDR (Cuba’s neigh- at ASCE conference ...... Page 6 impression that change is really in the air. Yet these cosmetic changes are aimed only at borhood spy network) for the last 10 years. neutralizing criticisms like those articulated last A member of the Council of State, Contino was Camagüey calling month by academic economist Juan Triana, who actively supported by Raúl Castro in opposition to Cuba’s largest province tries to lure tour- told foreign reporters in Havana that Cuba must Roberto Robaina in the 1980s. ists and their dollars ...... Page 7 enact sweeping economic reforms in order to get ROBERTO F. GARCÍA DÍAZ the economy moving again (see page 5). Castro’s overhaul has involved the following First secretary of the PCC in Isla de la Juven- Newsmakers leaders in the Cuban Communist Party (PCC) tud. Mid 40s, white, engineer; promoted from Washington lobbyist Brent Gibadlo leads and Cuba’s Poder Popular, or people’s assembly: See Party, page 2 efforts by newly formed ATRIP to lift the travel ban on Cuba ...... Page 8 No easing of U.S. embargo likely -- even Sugar in crisis as debate on travel ban picks up steam Cuba’s latest zafra leaves future of sugar industry in doubt ...... Page 10 BY ANA RADELAT Rangel’s colleagues in the Cuba Working hen U.S. lawmakers return from their Group are likely to have better luck. They plan Business briefs August recess, Congress is expected to to introduce three other amendments to the bill that would strip Treasury of money to enforce Cubana opens Barcelona-Santiago route; W push for greater opportunities for trade and travel to Cuba. restrictions on American travel to Cuba, lift the no more power blackouts ...... Page 12 But the White House and Republican leaders $1,200 annual cap on cash remittances Cuban- are likely to block all such attempts — just as Americans send to their families on the island FX regs tightened they’ve done since President Bush took office. and hamper the government’s ability to enforce “The same things will come up, and the same a ban on the use of U.S. bank credits in food and Cuba puts new foreign-exchange controls things will fail,” predicted Dennis Hays, execu- medical sales to Cuba. on banks, state entities ...... Page 13 tive vice-president of the Cuban American Rep. Jeff Flake (R-AZ), who has sponsored National Foundation. the travel amendment for three years in a row, Provinces: Santiago de Cuba Just like last year, a fight between Congress said allowing American travel to Cuba is an and the Bush administration is expected to issue of freedom. “The U.S. government cannot Santiagueros have disproportional influ- break out in September, when the House of Rep- tell us where to go,” he quipped. ence on rest of island ...... Page 14 resentatives considers the bill that funds the While the Cuba amendments could win majo- Treasury Department, the U.S. Postal Service rity support in the Republican-controlled House, CubaNews (ISSN 1073-7715) is published monthly and a number of smaller agencies. the threat of a veto by President Bush may per- by Luxner News Inc. © 2003. All rights reserved. Rep. Charlie Rangel (D-NY) will probably suade House and Senate negotiators to strip the Subscriptions: $429/year. For subscription or edito- introduce an amendment that would end the provision out of a final Treasury Department rial inquiries, call toll-free (800) 365-1997, send a fax spending bill, just as they’ve done before. to (301) 365-1829 or e-mail us at [email protected]. U.S. embargo on Cuba. But that measure is not expected to win majority support. See Congress, page 9 2003_08/CubaNews 8/8/03 12:47 PM Page 2

2 CubaNews ❖ August 2003

Party — FROM PAGE 1 ESTEBAN LAZO HERNÁNDEZ ical services and other positions until his pro- within the ranks of UJC cadres. Replaced by First secretary of the PCC in the city of motion to the Party leadership in the early mathematician Elizabeth Cámara Báez, mid- Havana for nearly 10 years. Age 59 and black. 1980s, Balaguer served as ambassador to the 30s, black, promoted from the ranks of the Served more than 30 years as a Party cadre, Soviet Union under Gorbachev. He was also UJC cadres to the CC. and provincial leader in Matanzas and first secretary of the Party in Santiago de Cuba and Granma, and the man chosen by MANUEL MENENDEZ CASTELLANOS Santiago de Cuba. Politburo member since the mid-1980s. Raúl Castro in 1992 to replace expelled First secretary of the PCC in the province of On Jun. 24, Lazo was transferred to other Politburo member Carlos Aldana. Cienfuegos. Age 51, white. A technician in the duties within the Politburo, supervising the As a Politburo member, Balaguer super- oil industry, he was promoted from the ranks CC’s departments of education and ideology. vised three departments — the two recently of the state-controlled union movement to the (see CubaNews, July 2003, page 2). handed over to Lazo Hernández and the CC in 1991, and transferred to the auxiliary The real reasons for Lazo’s removal seem Department of International Relations, which apparatus of the Council of State. he continues to head. Replaced by Lazara M. López Acea, black to be associated with his lack of enthusiasm over Martínez Corona’s removal and the out- Yet these days, this department has lost and in her early 40s. A forestry specialist by considerable prestige due to the current roles profession, promoted to CC in 1997. She has come of the 2002-03 elections in the capital city, along with Lazo’s own health problems. of Felipe Pérez Roque as minister of foreign been a member of the provincial nomenkla- affairs (working very closely with Fidel Cas- tura for the last 10 years. Replaced by Politburo member Pedro Saez Montejo, who is 50 and black. tro), Ricardo Alarcón and Interior Minister JOSÉ ANTONIO DÍAZ PÉREZ Saez Montejo was a UJC cadre while teach- Abelardo Colome Ibarra. In addition, reports indicate that Balaguer’s health is worsening. First secretary of the PCC in the province of ing history, and from there was promoted to Sancti Spíritus. Age 40, white, mechanical Party cadre and provincial leader, first in La MIGUEL M. DÍAZ-CANEL BERMUDEZ engineer by profession; promoted from ranks Habana and Sancti Spíritus, then back to La Habana as PCC first secretary. He’s been First secretary of the PCC in the province of of UJC cadres, with 10 years of experience in Villa Clara for the last nine years. Age 43, Party work. He was transferred to the CC’s repeatedly praised in public by Raúl Castro. white, electronics engineer by profession. central apparatus. JOSÉ R. BALAGUER CABRERA Replaced by Miguel Acebo Cortiñas, 48, Díaz-Canel comes from the ranks of UJC’s top white. Agronomics engineer, promoted from Age 71, white. Politburo member and leadership and was promoted to the CC in ranks of UJC cadres and with 20 years of physician who joined the Rebel Army in 1958 1991. In 1997, he was one of six candidates experience in Party work in Villa Clara and always enjoyed leadership positions selected to join the Politburo, where he has province. A member of the CC since 1991 and under the protection of Raúl Castro. become very close to Pedro Saez Montejo. In member of National Assembly since 1998. Comandante in Cuba’s FAR, head of med- See Party, page 13

EXCERPTS FROM FIDEL CASTRO’S JUL. 26 SPEECH BLASTING THE EUROPEAN UNION The following is the translation of a July 26 speech given by President making processes. This absurd condition, which was never accepted, Fidel Castro to mark the 50th anniversary of the attack on the Moncada practically paralyzed the flow of aid for a number of projects. Barracks in Santiago de Cuba, as published in the English-language The European Union [should] feel ashamed of the measly and inef- version of the official Communist Party daily newspaper Granma: fective aid it offers [Third World] countries. In early June, the European Union adopted an infamous resolution, While Cuban soldiers were shedding their blood fighting the drafted by a small group of bureaucrats ... and promoted by an indi- forces of apartheid, the countries of the European Union exchanged vidual of markedly fascist lineage and ideology: [Spanish President] billions of dollars worth of trade every year with the South African José María Aznar. They decided to eliminate or reduce to a minimum racists, and through their investments, reaped the benefit of the what they define as “humanitarian aid” to Cuba. cheap, semi-slave labor of the South African natives. How much of this aid has been provided in the past few years, The government of Cuba, out of a basic sense of dignity, relinqui- which have been so difficult for the economy of our country? shes any aid or remnant of humanitarian aid that may be offered by In 2000, the so-called humanitarian aid received from the the European Commission and governments of the European Union. European Union was $3.6 million; in 2001 it was $8.5 million; in 2002, Our country will only accept this kind of aid — no matter how $600,000. And this was before the application of the just measures modest — from regional or local autonomous governments, non-gov- [imprisonment of dissidents to sentences of up to 28 years] that Cuba ernmental organizations and solidarity movements which do not adopted ... to defend the security of our people against the threats of impose political conditions on Cuba. imperialist aggression. The European Union is fooling itself when it states that political What does this amount really mean ... in comparison with the eco- dialogue should continue. The sovereignty and dignity of [the nomic blockade imposed by the U.S. government ... and with regards Cuban] people are not open to discussion with anyone, much less to which, as a result of the extraterritorial and brutal Helms-Burton with a group of former colonial powers historically responsible for Act, which threatened the economic interests of the European Union the slave trade, the plunder and extermination of entire peoples, and itself, the latter reached a shameful “understanding” where it the underdevelopment and poverty suffered today by billions of pledged not to support its businesspeople in their dealings with human beings whom they continue to plunder through unequal Cuba, in exchange for vague promises that the [Helms-Burton] Act trade, the exploitation and exhaustion of their natural resources, an would not be applied to its investments in the United States? unpayable foreign debt, the brain drain and other means. Cuba’s payments to the countries of the EU for goods imported The European Union lacks the necessary freedom to take part in over the last five years totaled some $7.5 billion, or an approximate a fully independent dialogue. Its commitments to NATO and the average of $1.5 billion annually. On the other hand, over the last five United States render it incapable of engaging in a constructive years, these countries only purchased an average of $571 million exchange. worth of imports from Cuba annually. Who is actually helping whom? Countries from the former socialist community will soon join the Moreover, this much-touted humanitarian aid usually comes with European Union, albeit the opportunistic leaders who govern them, bureaucratic delays and unacceptable conditions [such as] the parti- more loyal to the interests of the United States than those of Europe, cipation of European non-governmental organizations in all decision- will serve as Trojan horses of the superpower within the EU. 2003_08/CubaNews 8/8/03 12:47 PM Page 3

August 2003 ❖ CubaNews 3 SHIPPING Alimport accord fuels optimism at Port of Corpus Christi BY LARRY LUXNER This ship continues on to Florida and up the Alimport deal together. arge statues of Jesus Christ look out East Coast. We have told port officials that we Corpus Christi is hardly the only Texas port over the ports of both Havana and are prepared to offer the space that opens up pursuing trade opportunities with Cuba. L Corpus Christi, Tex. in Corpus Christi to carry cargoes to Cuba, Galveston, which handled 3.4 million tons Other than that, the two cities had little in and that could be upwards of 1,000 tons.” of cargo in 2002, was the first port from which common until last month, when Cuban gov- Posner said such cargo could be anything U.S. wheat was shipped to Cuba following the ernment agency Alimport signed an agree- from frozen chicken to beans and grains — as devastation of Hurricane Michelle. long as it can be packaged and palletized. ment with Corpus Christi port officials. COMPETITION WITH OTHER TEXAS PORTS Under the pact, signed Jul. 10 in Havana, The fact that Corpus Christi is located close Alimport promises to encourage its exporters to major farms and ranches puts it at a com- “We think the [Corpus Christi-Alimport to move their products through Corpus petitive advantage compared to other ports in agreement] is an indication of strong support Christi, which at 45 feet is the deepest port on Texas and along the Gulf Coast, said Bonilla. for a continued opening of trade with Cuba,” the Gulf of Mexico. The deal calls for initial “Many of the commodities sought by Cuba said John Peterlin, senior director of market- bulk shipments, followed by development of are located in south Texas, including sorgh- ing at the Port of Galveston. refrigerator and containerized shipping. um, rice, corn, nuts and cotton,” he said. “We Peterlin said his port shipped over 150,000 “It’s the first strategic planning and specifi- are able to deliver these products to the port tons of bulk food commodities to Cuba last cally trade-oriented agreement that Cuba has docks at minimal expenses. We also don’t year through ADM Farmland, a local subsidi- initialed with any American port,” said Port have the onerous freight charges by land or ary of Archer Daniels Midland of Decatur, Ill. Chairman Ruben Bonilla in a phone interview rail, or barge traffic costs down the Missis- Other Texas ports that have explored po- from Corpus Christi. “We will demonstrate sippi River that other ports might have.” tential business with Cuba include Beaumont, Freeport and Houston, though officials of that we’ll be able to ship agricultural and food DEAL IMPORTANT TO AGRIBUSINESS INTERESTS commodities to Cuba cost-effectively and those ports couldn’t be reached for comment. more expeditiously than competing ports.” Bonilla, a Texas attorney of Mexican parent- Not only does the agreement open the age, said “I think Cuban representatives were Texas agricultural sector to “tremendous eco- OIL PORT SEEKS TO DIVERSIFY able to share an uncanny personal bond with nomic opportunities and new markets,” said Corpus Christi, located 150 miles north of our leadership in Corpus Christi” thanks to Bonilla. “It also compels the Port of Corpus the U.S.-Mexican border and 853 nautical the city’s strong Hispanic heritage. Christi to expand its present cold-storage miles from Havana, is the nation’s sixth- The Texas-Cuba Trade Alliance, formed facilities” from the current 100,000 sq feet to largest port in volume. last February, estimates that Texas farmers around 125,000 sq feet. It handled 81 million tons of cargo last year could export as much as $54 million a year to “We have the only cold-storage warehouse — 87% of it petroleum from Venezuela, Mex- Cuba under the Trade Sanctions Reform Act along the Gulf that is right on the dock. Ships ico, Nigeria, Kuwait and other oil-producing of 2000, which authorizes U.S. food sales to can unload directly from the vessel into the countries. But volume is down from 89 million Cuba on a cash-up-front basis. warehouse without any loss of quality or tons in 2000, forcing port officials to diversify “For the beef industry in west Texas, this is refrigeration,” he said. into non-petroleum cargoes. Hence the agree- a big issue, as with cotton and grains, and the “We also want to develop a container termi- ment with Alimport. produce industry, which could export many nal. We recently purchased 1,100 acres of “As we seek to diversify, so does Cuba, and of the fruits and vegetables that Cuba is inter- land and are now discussing with potential there’s a lot of sentiment in Texas for the ested in acquiring as their tourism industry operators the establishment of Corpus Christi elimination of the embargo and the easing of develops,” said alliance president Cynthia as a major container hub, but that’s probably travel restrictions,” Bonilla told CubaNews. Thomas, who helped put the Corpus Christi- three to five years away.” “With all due respect to the Cuban-American community in Miami, it makes absolutely no FIRST U.S. VESSEL CALLS ON HAVANA HARBOR IN 40 YEARS sense that we punish Cuba because of its leadership and deny food to its people while The American flag was hoisted briefly which allows the export of such prod- we continue to supply food to North Korea.” over the entrance to Havana Bay on Jul. ucts — along with timber and paper — According to the Corpus Christi Caller- 10 for the arrival of the first U.S.-regis- on a cash-only basis. Times, two shipping lines are poised to pick tered cargo vessel in four decades. Most of that volume of 1.4 million tons up Alimport’s business: C&S Shipping, head- The 323-foot warehouse barge, towed has been shipped by Crowley Liner quartered in Australia, and Houston-based by a tug from Alabama, unloaded 1,614 Services using foreign flag vessels. United Americas Shipping Lines. Both have tons of newsprint and six tons of timber “This is the first time in 40 years that obtained licenses to carry U.S. agricultural in Havana, reported Reuters. a vessel with a U.S. flag and a U.S. crew commodities into Cuba. “We look forward to returning on a has been in a Cuban port,” said May- “We are confident we are in a position to regular basis, at least once a month,” bank company official Turner Fabian, said Jack Maybank, president of May- start carrying some of [Alimport’s] grain car- who’s seeking contracts to ship lumber goes,” said United Americas President Joe bank Shipping Co. Inc. of Charleston, S.C., which owns the barge. and grain. “We will be coming back once Hinson, indicating that grain shipments to a month for the next six months.” Cuba could begin as early as late August or Maybank has a deal with Cuba to ship 10,000 tons of paper made in the United The new link to Havana came a day early September. after Cuba signed a pact with the Texas Howard Posner, a Tampa-based representa- States by Montréal-based Abitibi Conso- lidated Inc., one of the world’s largest port of Corpus Christi to begin bulk tive of Sea Trade Reefer Chartering — a part- shipping operations later this month. ner of C&S Shipping — said his company is newsprint manufacturers. Since December 2001, the Castro gov- Details: Jack Maybank Jr., VP/Develop- prepared to provide service to Cuba on an ment, Maybank Shipping Co., 525 E. Bay inducement basis if space is available. ernment has bought $480 million worth St., #200, Charleston, SC 29403. Tel: “We have a service calling into Corpus of U.S. grains and food products under Christi every three weeks from Australia. the Trade Sanctions Reform Act of 2000, (843) 723-7891. Fax: (843) 723-7894. 2003_08/CubaNews 8/8/03 12:47 PM Page 4

4 CubaNews ❖ August 2003 AGRIBUSINESS Cubans embrace organic farming to satisfy food demand

hey call it “la esquina verde” or “the Cubans euphemistically refer to the post- cultural curriculum in Cuban universities and green corner.” It’s in a residential dis- Soviet collapse of their economy as “the Spe- vocational high schools has been completely T trict of Havana, where Ydelio Yzqui- cial Period.” Before that, Cuba’s state-owned revamped to reflect the change from a high- erdo and two other men grow lettuce, parsley, agricultural enterprises were similar to large input, industrialized agriculture to a low- basil and other vegetables on a plot about a corporate farms in California. input, organic system, Rosset said. Vocational city block long and a half-block wide. The Cuban state farms tilled huge tracts of high schools are producing biological pesti- It’s one of several thousand organic gar- land with large machinery, burning Soviet- cides that they sell. Income from the sales dens — known here as organopónicos — that supplied oil to run the farm equipment and provides up to 50% of some schools’ budgets. have sprung up in Cuba since 1991, when the irrigation pumps and using petroleum-based Rosset said the development of organopóni- collapse of the Soviet Union led to a severe chemicals to control pests and fertilize crops. cos is just one way Cubans have restructured downturn in Cuban food production. As a When the Soviets turned off the oil spigot, their agriculture. In 1993, farmers’ markets result, Cuba’s organic food movement has food production crashed made the country a world leader in low-input and the Cuban popula- sustainable agriculture. Organopónicos range tion’s daily caloric and from less than an acre to six acres in size. protein intake fell 30% Cuba today has more than 81,000 acres of

during the 1990s, com- LARRY LUXNER organopónicos. The gardens produce about pared to a decade earli- 250 pounds of food a year for each of Cuba’s er. Out of necessity, 11.2 million people and have generated things changed. 300,000 jobs, said Peter Rosset, co-director of For the first time, Food First and the Institute for Food and De- velopment Policy in Oakland, Calif. Rosset said, a large- “When I first came here in 1993, there was scale, export-oriented none of this,” Rosset said in Havana. “This farming system was came from nothing.” Rosset was among 90 converted to an alterna- U.S. farmers, educators and others who re- tive food production sys- cently visited Cuba to study its agriculture. tem using low-input, Denise O’Brien, an organic farmer from the sustainable techniques. Organic produce for sale along a highway south of Havana. Iowa town of Atlantic, said she ranks Cuba’s Cuba’s agricultural organic agriculture at the top of the world. scientists had been researching organic farm- were allowed, and the following year, the gov- “The quality of their produce is consistently ing before the Special Period, but the govern- ernment broke up 75% of the state farms and high, which shows they have the infrastruc- ment was caught off guard when organopóni- gave the land to farmers who organized them- ture in place,” O’Brien said. “It’s really quite cos began to sprout spontaneously. selves into production cooperatives. remarkable.” “It was a push from the bottom and the gov- Although Cubans are hesitant to release The Cuban economy and food production ernment didn’t know what to do until it real- agriculture statistics, Rosset said, production dropped precipitously after the Soviet Union ized just how much food the organopónicos has increased at least 100% for some crops stopped sending its one-time communist ally could produce,” he said. “Now, the scientists and 200% for others. The Cuban government massive subsidies. The economic calamity are scrambling to stay up with the farmers.” eventually hopes to divest itself of all agricul- worsened with the U.S. trade embargo, which Urban agriculturalists can earn as much as tural enterprises except for livestock and crop banned trade and travel between the two $200 a month, which is 10 times what a doctor genetics, he said. countries until U.S. food exports to Cuba on a makes in Cuba. “There are millionaire farm- Food grown at Havana’s green corner goes cash-basis only began in December 2001. ers by Cuban standards,” he said. The agri- to a workers’ enterprise, which established the garden eight years ago. The enterprise buys seed, organic crop protection products, Poll: Miami Cubans care more about local issues natural fertilizers and technical assistance from a “tienda consultoria” or consulting store uban-Americans in South Florida are the political system in Cuba should change. in the neighborhood. softening up their once-hardline views 49% of respondents said they’d vote for a “We take our produce to the workers’ cen- Con Cuba, concludes a survey by the candidate who advocates continuing the ter and we can sell what’s left over to the pub- Southwest Voter Research and Education U.S. embargo against Cuba. But that per- lic,” said Yzquierdo, who taught agriculture at Project, a leading Latino think tank. centage rises to 62% among respondents a vocational school before becoming a farmer. The poll questioned 600 Cuban-American aged 65 or older, and drops to only 34% On a recent Sunday, a steady stream of cus- residents of Miami-Dade County between among the under-45 crowd. tomers stopped by the green corner to buy Jun. 24 and Jul. 1. Among its findings: Interestingly, 41% of respondents agree 62% of those polled thought it’s more lettuce, broccoli and other vegetables right that Washington and Havana should take out of the field. Yzquierdo and the other two important to spend time and money improv- steps to allow Americans to retire in Cuba if ing the quality of life in South Florida, com- farmers earn a salary, plus incentives based pared with 19% who said it was more impor- they wish to, while 70% of those surveyed on production. He likes his job. tant to work for political change in Cuba. believe that U.S. politicians mislead people “I always worked in agriculture,” Yzquier- 65% want local politicians to focus on local about their stand on Cuba just to get votes. do said. “We don’t use any chemicals and only issues, versus 12% who said politicians Details: Alvaro Fernández, Florida Dir., organic fertilizer, so the workers eat fresh, should focus more on international issues. Southwest Voter Research Education Project, healthy food all year round and they feel bet- 49% said the U.S. should use force to over- 2555 Collins Ave, PH-210, Miami Beach, FL ter. We earn a good wage, and we are doing a throw Fidel Castro, though 68% said the cit- 33140. Tel: (305) 531-2520. E-mail: alfer- good thing. We feel very good about this.” izens of Cuba should decide how and when [email protected]. URL: www.svrep.org. – COPYRIGHT 2003, REPRINTED WITH PERMISSION BY THE DES MOINES REGISTER 2003_08/CubaNews 8/8/03 12:47 PM Page 5

August 2003 ❖ CubaNews 5 POLITICAL BRIEFS

ALARCÓN: U.S. NOT AN IMMEDIATE THREAT TO CUBA In their own words … One of the most surprising things about Fidel Castro’s angry Jul. 26 speech marking the 50th “Despite the good intentions of the administration to negotiate the safety of anniversary of the start of the Cuban Revolution these folks, that is an oppressive regime, and given the environment in Cuba, it’s just not right.” was the omission of any real verbal attacks — Florida Gov. Jeb Bush, criticizing the White House’s decision to send back 12 against the United States. Cubans suspected of hijacking a boat. The Cubans were intercepted Jul. 15 The explanation was provided by Ricardo Alar- by the U.S. Coast Guard in international waters off the Bahamas. cón, chairman of Cuba’s National Assembly, in an interview with the Mexican daily La Jornada. “Our policy is one of a safe, orderly and legal migration. We expect that poli- He said that after more than a year of serious cy to be implemented and carried out in a consistent way.” threats against Cuba, the Americans “seem to — White House Press Secretary Scott McClellan, talking to reporters Jul. 31. have reached the conclusion, not surprisingly, that now is not the right time.” According to Alarcón, what made tensions “This isn’t just some Republican; it’s someone this community went to the mat for. It isn’t about the 12 that got returned, but the 11 million [in Cuba] and much worse since last year was an accusation by the promises made over three years ago to the Cuban-American community.” John R. Bolton, the Bush administration’s contro- — Joe García, executive director of the Cuban American National Foundation, versial under-secretary for arms control and expressing the exile community’s increasing frustration with President Bush. international security, that Cuba was engaged in a program to develop weapons of mass destruc- “With the island’s economy now perhaps at its most perilous low point since tion — particularly given that the justification to the early 1990s, Castro may once again be putting his unique appreciation of attack Iraq was precisely that it was engaging in ‘revolutionary principle’ above more pragmatic considerations. And it does not production of WMDs. seem likely, furthermore, that his current campaign against the Europeans Alarcón also mentioned that Defense Secretary will abate anytime soon.” Donald Rumsfeld and Secretary of State Colin — Brian Latell, director of the Central America and Caribbean project at Powell — in the midst of the Iraq crisis — never the Washington-based Center for Strategic and International Studies. formally stated that the U.S. wouldn’t attack Cuba, as they did in the case of North Korea. “The independence of Cuba is priceless. Perhaps tactically we lost, but This, he said, indicates that the Pentagon has strategically we won because we are saving the revolution.” no intention of attacking Cuba at this time, which — Rafael Dausa, the Cuban Foreign Ministry official in charge of North doesn’t preclude later action against Cuba. American relations, speaking to the Los Angeles Times. Alarcón also told the Mexican daily that Wash- ington, for the first time in 40 years, is arguing “I cannot understand why our government is threatening to take away my that any further hijackings constitute a threat to Social Security check for riding my bicycle in Cuba.” U.S. national security. Given the new doctrine of — Joan Slote, a 75-year-old grandmother from San Diego, recounting her experi- preemptive war and regime change, he said that ences at last month’s “Freedom to Travel conference in Washington. Cuba must remain extremely alert because “the element of surprise is absolutely in the hands of “Any other country except Cuba is fine with me.” the aggressor.” — Adalberto Chávez, whose wife and son — refugees on a boat intercepted by the Alarcón concluded that current entanglements Coast Guard — are at Guantánamo awaiting resettlement in a third country. in Afghanistan and Iraq — along with economic problems and the 2004 presidential elections — “The embargo ... has accomplished nothing. We’ve watched Cuba slowly and are forcing the Bush administration to exercise surely slip into the last century. I suggest we no longer sit idly by — that we “greater prudence regarding any involvement in bomb Cuba with Sears and Roebuck catalogs.” another war.” — Idaho Republican Larry Craig, speaking at the same conference. KEY ECONOMIST SAYS GROWTH URGENTLY NEEDED “Americans should be able to travel to Cuba, without restrictions on money, Leading economist Juan Triana, head of the baggage or any other arbitrary measure. What better way to share the University of Havana’s Center for Studies of the rewards of democracy than through people-to-people exchanges?” Cuban Economy, told foreign reporters last — Mike Enzi (R-WY), who along with Max Baucus is leading month that to meet the goals of Cuban society, the effort in the Senate to repeal the Cuba travel ban. “economic growth is fundamental.” In order to achieve such a growth, said Triana, “As the Congress recognized in 2000, expanded trade in agricultural goods “we therefore need to reactivate those measures is good for the Cuban people and good for American farmers. We look for- [reforms from the 1993-95 period], to oxygenate ward to persuading our colleagues and the [Bush] administration that sharing those measures, and other measures that will American values through increased travel will promote our national interest.” allow us to achieve greater growth dynamics.” — Max Baucus (D-MT), co-sponsor of a Senate bill to repeal the Cuba travel ban. Airing such an approach is quite significant, because it shows considerable concern over the “Castro’s popularity in Latin America is totally associated with his personali- current state of economic stagnation and the offi- ty and his history, but not his policies. There was a time 30 or 40 years ago cial reluctance to move ahead with reforms. It when many Latin americans saw him and Cuba as a model for the rest of also contradicts Fidel Castro’s position voiced the continent. But Castro lost that debate.” before the National Assembly in September 1995 — Jeffrey Davidow, former U.S. ambassador to Mexico, who that the current cycle of reforms was over. now heads the San Diego-based Institute of the Americas. – DOMINGO AMUCHASTEGUI 2003_08/CubaNews 8/8/03 12:47 PM Page 6

6 CubaNews ❖ August 2003 UPCOMING EVENTS Scholars present over 50 papers at ASCE’s Miami meeting

he following papers are scheduled to Matthew McPherson and William Trumbull, Paolo Spadoni, University of Florida. West Virginia University. be presented Aug. 7-9 at the 13th annu- REMITTANCES T al meeting of the Association for the “Tourism in the Caribbean After Castro,” Study of the Cuban Economy in Miami. Art Padilla, North Carolina State University. “El remitente cubano, algunas característi- These papers are listed generally in the “Taxation Levels in Cuba — and Other cas particulares,” Joaquín Pérez Rodríguez, order of discussion. Topics of Rhetorical Interest,” Nicolás Bendixen & Associates. For more information on the organization, Sánchez, College of the Holy Cross. “Challenges and Opportunities of Market- please contact ASCE’s treasurer, Antonio “Cuba — Communism and Capitalism: ing Remittances to Cuba,” Manuel Orozco, Gayoso, at PO Box 567, McLean, VA 22101- Infrastructure, Development and Financing,” Inter-American Dialogue. 0567, call him at (703) 917-0842 or e-mail him John K. Dunn, University of Rhode Island, “¿Como convertir remesas familiares en at [email protected]. and Michael A. DeAngelis, consultant. una política pública de desarrollo?” Ricardo Puerta. HEMISPHERIC ECONOMIC INTEGRATION LABOR ISSUES TRANSITION ISSUES “Hemispheric Economic Integration: Status “Cuba’s Labor Market: Current Conditions and Prospects,” Robert Devlin, Inter-Ameri- and Future Prospects,” Luís Locay, University “Macroeconomic Policy Implementation in can Development Bank. of Miami. Early Transition: Lessons for Cuba from “Hemispheric and Regional Economic Inte- “The Growth of the Independent Union Poland and Romania,” Jennifer Gauck, gration: A Perspective from Central America,” Movement in Cuba: Challenges and Opportu- Central European and Eurasian Law Initia- Isaac Cohen. nities,” Christopher Sabatini, National Endow- tive, American Bar Association. “Implications for Florida and Cuba of West- ment for Democracy. “Plan de tránsito económico para Cuba,” ern Hemisphere Economic Integration,” “The International Labor Movement’s Alfie Ulloa, Universidad de Chile. Jorge Arrizurieta, Florida FTAA. Views on Cuban Trade Unions,” Stanley “Reform of the Armed Forces in a Post- Gacek, AFL-CIO. Castro Cuba,” Armando F. Mastrapa, Cuban MACROECONOMICS Armed Forces Review. EXTERNAL SECTOR ISSUES “The Evolution of Output and Productivity “The Legacies of Socialism: Implications in Cuba in the 1990s,” Ernesto Hernández- “The Cuban External Sector in 1990-2003: for the Cuban Transition,” Jorge Pérez-López. Catá, SAIS, Johns Hopkins University. Achievements, Failures and Challenges,” “Transition in Cuba: Lessons From Iraq,” “Cuba’s Dual Exchange Rates and Rolando H. Castañeda. Alberto Luzárraga. Household Poverty: Breaking the Link,” Ed “Las relaciones económicas Cuba-EU: “Looking to the Future from the Past: Canler, Textile Rubber & Chemical Company. ¿Abre Cotonú una opción con futuro?” Generational Roles,” Sergio Díaz-Briquets, “El desempleo actual en Cuba,” Manuel Francisco León. Casals & Associates. García Díaz, Universidad de Granada. “Bridging the Gap: IMF and World Bank “The Internet and Cuba,” Roger Panetta. Accession for Socialist Countries,” Daniel P. ENVIRONMENTAL ISSUES Erikson, Inter-American Dialogue. INVESTMENT ISSUES “Cuban Central Banking and Foreign “An Action Plan for Biodiversity Preserva- CUBANS ABROAD AND MIGRATION tion in Cuba,” Argelio Maldonado, World Investment After Decree-Law 172 of 1997,” Wildlife Fund. “Economic and Social Situation of Cubans José Gabilondo, Albany Law School. “Environmental Concerns for a Cuba in in the United States: A First Look from the “Foreign Investment in Cuba: Then and Transition,” Eudel Cepero. 2000 U.S. Population Census,” Daniel Pérez- Now,” Eric Baklanoff, University of Alabama. “Recruitment of Scientists and Develop- López, Virginia Tech. “A ‘Smart Sanctions’ Approach Toward ment of International Funding Resources in “Cuba: The Next Retirement Haven?” Cuba,” Brian Alexander, Giraldilla.com. Post-Castro Cuba,” Larry Daley, Oregon State Matías F. Travieso-Díaz, Shaw Pittman, and University. Armando A. Musa, Holland & Knight. AGRICULTURE AND SUGAR “The Changing Face of the Cuban Commu- “National Disasters and Cuba’s Agricultural STUDENT PAPERS nity in the U.S.: Rapproachment with Castro?” Performance: Is There a Correlation?” José “The Impact of the Dual Economy on Benigno Aguirre, University of Delaware. Alvarez, University of Florida. “Family Farms: The Cornerstone of the Cuba’s Social Structure,” Benjamin Fernán- HUMAN RIGHTS dez, College of the Holy Cross. Agricultural Sector in the Cuba of the “Dissident Democracy: A Quest for Free- “The Scope of Human Rights and of Cuba’s Future,” José Ricardo. dom in Castro’s Cuba,” Nicky Faeth, Univer- Human Rights Obligations,” María Domín- “Rebuilding the Cuban Sugar Industry,” sity of California Santa Barbara. guez, Human Rights Institute, St. Thomas Juan Tomás Sánchez. “Transitions in Cuba: Implications on Child University School of Law. Development,” Cristina Mendoza, Tufts “La Ley Mordaza: The Logic of Oppres- SPECIAL TOPICS University. sion,” Aldo Leiva, Abadin Jaramillo Cook “Discriminación racial en el campo cubano," “The Cuban Sugar Industry: Unrecognized Hefferman and Martínez. Dominga González Suárez, Universidad de Truths Behind its Demise,” John Tocco, “Human Rights and Reconciliation: Rebuil- Granada. College of the Holy Cross. ding a Rights-Based Society,” Marifeli Pérez- “Santiago vs. Havana: Cuba’s Underground “Strengths and Weaknesses of the Cuban Stable, Florida International University. Economy in Comparative Perspective,” Ted Tourism Industry,” Mark Spiers, College of Henken, Baruch College, CCNY. the Holy Cross. US-CUBA ECONOMIC RELATIONS “Procesos electorales y élites políticas en la “Cuba’s Dollar Food Market and U.S. Ex- Cuba del tercer milenio,” Domingo Amuchas- ECONOMIC ISSUES ports,” James E. Ross, University of Florida. tegui. “What If US-Cuban Trade Were Based on “U.S.-Based Travel to Cuba,” María C. “A Tale of Two Tyrants: Francisco Franco Fundamentals Instead of Political Policy: Werlau, Orbis International. and Fidel Castro,” Alfred G. Cuzán, University Estimating Potential Trade With Cuba,” “The U.S. Role in the Cuban Economy,” of West Florida. 2003_08/CubaNews 8/8/03 12:47 PM Page 7

August 2003 ❖ CubaNews 7 TOURISM Cultural, eco-attractions top Camagüey tourism potential BY OUR HAVANA CORRESPONDENT like La Belén, where gazelles, zebras, rhinoc- crown jewel of Cubanacán here. The nearby he algae-infested shore along Playa eros and other newly introduced African mam- 3-star Club Amigo Mayanabo has 225 rooms, Santa Lucía is one of many minor mals live side by side with native species. and Club Caracol, also three stars, has 150 T headaches for tourist authorities in Camagüey also has a rich cultural life. rooms. Club Santa Lucía (252 rooms) is hop- Camagüey today. Inhabitants of this province are known as ing for a 3-star designation, while a fifth facili- This hot destination for tourists in the early both camagüeyanos and agramontinos (after ty belongs to Formatur and serves as a hotel 1990s is now trying to recover past glories, Ignacio Agramonte, general of the rebel army school under the ownership of Cubanacán. after the refurbishment of four hotels and the during Cuba’s first war against Spanish rule). But nearby tourist resorts like Holguín, imminent opening of a fifth one. Camagüey was the birthplace of both Cayo Coco and Cayo Guillermo had overtak- Camagüey is Cuba’s biggest province, Carlos J. Finlay, the Cuban doctor who dis- en the leading position of Santa Lucia, leaving measuring 15,997 sq kms (6,179 sq miles) covered that the mosquito transmits yellow the once-proud beach resort to deteriorate. and covering 14.4% of the island’s land area. fever, and Nicolas Guillen, Cuba’s national Algae began growing along the shallow Sandwiched in between Ciego de Avila to poet. The province also has its own ballet, waters near the beach, and sand erosion start- the west and Las Tunas to the east, the which is an offspring of the original company ed to expose the rock bottom. province has 800,000 inhabitants and an agri- led by Alicia Alonso and founded by her ex- And while the sand is still fine and white, culture-based economy; its main industries husband, choreographer Fernando Alonso. ecological regulations forbid the use of ani- are sugar, food processing, fishing, mining, PARADISE RECONSTRUCTED mals to collect algae because they can con- cement, steel and manufacturing. taminate the water. It also has three large shipping ports, two After 1995, hotel construction in Santa Roque Romero, a Cubanacán representa- airports and an extensive highway infrastruc- Lucia ground to a halt, due to the lack of finan- tive in Camagüey, said Santa Lucia aims to ture (see CubaNews, April 2003, pages 15-16). cial resources. As a result, state tourism enti- become an outstanding nautical center, Camagüey’s national attractions include not ty Cubanacán decided to assume manage- helped by its long coastline and the world’s only beaches like Santa Lucía, but also the ment of the present-day Hotel Brisas Santa second-biggest coral reef after Australia. In tranquil waters and great biodiversity found Lucía (formerly the Hotel Cuatro Vientos) all, Camagüey has 1,027 hotel rooms at pres- in the nearby northern coastal keys of Sabinal together with a Spanish company, and begin ent, though its potential is estimated at 17,000 and Romano, and Cayo Tortuga along the repairing the existing facilities at a cost of sev- — so there’s plenty of room for growth. southern coast. eral million dollars. According to Romero, diving in the coral The province boasts inland protected areas The 4-star property, with 400 rooms, is the reef and other interesting underwater sites is the province’s top attraction, followed by bird- watching, sport fishing and other activities. ECOLOGISTS SLAM CUBA’S TRADE IN LIVE DOLPHINS But the most daring option of Santa Lucía’s tourist fare is a “show with sharks.” This Cuba has become the world’s leading mals, for which Guevara was responsi- adventure trip consists of taking visitors to a exporter of live dolphins for “dolphinari- ble, were packed in ice and flown to ums” and other controversial “swim- Anguilla in a Russian charter plane. diving site 25 meters deep, where they can with-dolphin” tourist projects. The dolphins’ conditions at that park watch a professional diver feed a group of Between 1995 and 2000, Cuba sold 82 were recently investigated by Whale and three bull sharks without any hand or body dolphins, more than either Russia or In- Dolphin Conservation Society chief protection — making the experience unique donesia, which exported 65 and 42 dol- executive Niki Entrup, and are now the in the world. A multimedia presentation phins respectively over the same period. subject of protests orchestrated by shows how tourists descend in their Cuba stepped into the lucrative trade Toronto activist Gwen McKenna and the aqualungs, guided by three expert divers, one in 1990, after the United States banned German Dolphin Conservation Society. of whom feeds the sharks and half an hour dolphin captures. It has since supplied And last year, the Office of Foreign later surfaces safe and sound. wild dolphins to entities like Anguilla- Assets Control — a unit of the U.S. Trea- based Dolphin Fantaseas, which mana- sury Department — began investigating ON THE DRAWING BOARD ges a swim-with-dolphins project on the whether Americans illegally bought dol- Among immediate projects is a dolphinari- Caribbean island of St. Lucia. phins from Cuba through a broker in um in Ensenada del Uvero, at the entrance to Newly captured Atlantic bottlenosed the Dominican Republic. Nuevitas bay. This project will offer tourists dolphins bring $40,000 to $70,000 on the A Treasury official told CubaNews the chance to swim with dolphins (see related international market, though park own- that the case is still under investigation. story). A seafood restaurant, Bucanero, was ers recoup that investment quickly by Violations of the U.S. embargo against completed last year in the Boca region, and a charging tourists up to $150 to swim Cuba can bring corporate fines of up to recreational park is now set to open in the with and touch the popular creatures. $1 million and tens of thousands of dol- next few months. According to media reports, a key fig- lars in individual fines. Another project in downtown Camagüey is ure in Cuba’s dolphin trade is Celia Wildlife activist Ric O’Barry, who was the remodeling of both the Cabaret Caribe Guevara, the 39-year-old daughter of the once a dolphin trainer for the TV series and the El Castillito soda shop. A recreational famous revolutionary. “Flipper,” traveled to Cuba recently to in- complex is being built along Calle República Havana’s National Aquarium, where fluence Guevara to stop exporting dol- to be managed by state-run Cubasol. This Guevara is chief marine mammal veteri- phins, but she refused to meet him. complex will include a pool, conference hall, narian, recently provided six dolphins to He had hoped to explain an alternative playroom and area for photographic exhibits. Dolphin Fantaseas. way of making money, along the lines of Cuba also supplied the seven dolphins a program in Key West, Fla., where On the drawing board are plans for a drug- now at Manatí Park Bavaro, near Punta tourists visit dolphins in the wild without store museum, optical shop and beauty salon Cana in the Dominican Republic. interfering with their environment. — as well as construction of the 40-room Hot- Noticias Aliadas reports that the mam- – LARRY LUXNER el Santa María together with Cubanacán, Ci- mex and other potential foreign investors. 2003_08/CubaNews 8/8/03 12:47 PM Page 8

8 CubaNews ❖ August 2003 NEWSMAKERS Brent Gibadlo’s ATRIP lobbies to lift the Cuba travel ban

BY LARRY LUXNER month at ATRIP’s 8th-floor headquarters in a “They can start tour packages even without ashington, home to no less than a Washington office building, said “my greatest investment regulations repealed. But we’re dozen organizations aimed at ending claim to fame was my Cuba work, but during also in the process of talking to hotels, air- Wthe U.S. embargo against Cuba, now my interview with Flake, I was nervous to lines and cruise lines.” has yet another lobby in its midst: the one- bring it up. The congressman then told me María Teresa Aral, vice-president of ABC month-old Association of Travel Related how much he hated Fidel Castro, and that we Charters, told CubaNews she decided to sup- Industry Professionals (ATRIP). should lift the embargo tomorrow.” port ATRIP because “it’s the right thing to do” But Brent Gibadlo, the group’s executive Gibadlo said his old boss “never pushed for — even though the charters would undoubt- director, says ATRIP is different. a change of policy because we thought Castro edly suffer once all Americans are able to “We’re a business organization, so we don’t receive any grant funding,” he told CubaNews. “Other Cuba groups cover a wide spectrum, including the embargo, human rights and

other issues. Our interest is much more U.S.- LARRY LUXNER focused. We are setting up an efficient, very focused trade association that fills a specific niche that has not been there. I think busi- nessmen will see this as a wise investment.” He adds: “Our goal is to eliminate the ban that prohibits American citizens from travel- ing to Cuba. That’s why ATRIP exists.” Gibadlo, 28, is the former legislative direc- tor for Rep. Jeff Flake (R-AZ), co-chairman of the House Cuba Working Group. He an- nounced the birth of ATRIP at a Jun. 26 news conference, describing the organization as “a voice to professionals in the travel industry who support the Constitutional right to free- dom of travel for all Americans.” As such, ATRIP has hired the Washington Brent Gibadlo is executive director of the Association of Travel Related Industry Professionals. law firm of Patton Boggs LLP for an undis- closed sum, and has begun aggressively lob- deserved a reward. I think the best way to travel to Cuba directly. bying members of Congress to support an cause Castro pain is to lift the travel ban. “Once the travel ban is lifted, we would end to the travel ban. That’s exactly what he doesn’t want.” eventually lose the exclusivity we have right A Jul. 15 seminar co-sponsored by ATRIP, Gibadlo left Flake’s staff a year ago to at- now, but that would take time while they the Center for International Policy, USA*En- tend graduate school. He’s currently earning come up with bilateral agreements,” said Aral, gage and The Lexington Institute attracted an MBA at the University of Virginia in Char- whose airline moved over 30,000 passengers some 200 people eager to hear Flake and lottesville and will soon turn the day-to-day between Miami and Havana, Santiago de three other lawmakers explain why they sup- operations of ATRIP over to someone else. Cuba and Holguín last year. “As a business- port a change in Washington’s Cuba policy. woman, I’m looking at our future after we ac- “Liberals and conservatives see this issue ATRIP TARGETS TOUR OPERATORS, CHARTERS complish the lobbying effort, and there will differently, but this is such a clear-cut exam- Asked why the word Cuba isn’t in the orga- always be opportunities for charter flights to ple of government infringing on your person- nization’s name, Gibadlo replied: “If we put all the islands, including Cuba.” al freedoms,” said Gibadlo, and Jeff [Flake] is Cuba in the title, we’d look like a foreign-poli- about as conservative as you can get.” cy group.” Besides, he said, “we’re not strict- SUPPORT FROM USTOA, SILENCE FROM OFAC ly Cuba-focused. Our members are interested In late July, ATRIP also convinced the CAUSING CASTRO PAIN in the ability of Americans to travel anywhere, United States Tour Operators Association to A graduate of South Carolina’s College of though Cuba obviously is the No. 1 example come onboard. Charleston, Gibadlo joined Flake’s staff in of that right.” Bob Whitley, president of USTOA, says his January 2001 after working two years for Membership in ATRIP costs anywhere association speaks for 800 tour operators who another conservative Republican, Rep. Mark from $500 to $7,500 — depending on the size together move 10 million Americans a year on Sanford — now governor of South Carolina. of the organization or company hoping to join vacation packages worth over $9 billion. “As a member of the House International — and is open to any group or individual who USTOA also has 58 corporate members Relations Committee, Sanford took a trip to supports “the lifting of unjustified barriers to who represent a combined 140 airlines, hotel Cuba and came back with the revelation that the right of Americans to travel freely.” chains and other brands. our policy wasn’t working after 40 years. He Initial supporters of ATRIP include the “We strongly believe that tourism is the was the first Republican to offer the amend- American Society of Travel Agents (with way for people to learn about other countries, ment that would [deny funding to] the Trea- 20,000 members); the National Tour Opera- and that politics should not play a role in this,” sury Department to enforce the travel ban.” tors Association (2,000 members) and various said Whitley, who has never been to Cuba. That’s how Gibadlo got interested in Cuba airline charter companies such as Marazul “From a business point of view, Cuba of — a passion that’s only intensified with time. Charters Inc., Cuba Travel Services, ABC course would be a major tourist destination Said Flake: “Few people on Capitol Hill Charters Inc. and Xael Charters Inc. for Americans, so from that standpoint, we’d know more about Cuba than Brent. He hand- “We wanted tour operators right away love to see the travel ban lifted.” led this issue for us and did a great job.” because they are the folks who benefit imme- In the meantime, Treasury’s Office of For- Gibadlo, speaking with CubaNews last diately from lifting the ban,” said Gibadlo. eign Assets Control (OFAC) has gotten tough 2003_08/CubaNews 8/8/03 12:47 PM Page 9

August 2003 ❖ CubaNews 9 with Americans who violate the travel ban. ting the food and medicine legislation passed, This time, says Gibadlo, “we’re lobbying for According to Gibadlo, OFAC Director Rich- but finally it did pass. I think the same is true one co-sponsorship at a time, and obviously ard Newcomb declined an invitation to speak of the travel ban,” he told CubaNews. “There’s focusing on Republican members, since that’s at the Jul. 15 conference, which featured Joan a growing sentiment on Capitol Hill that any where the bulk of our votes are.” Slote — a 75-year-old woman who has been foreign policy that’s been in place 40 years Brian Alexander, former executive director threatened with nearly $10,000 in fines for and hasn’t achieved its objective is a failure.” of the now-defunct Cuba Policy Foundation, taking an unauthorized bicycle trip to Cuba. As to how to achieve that, Cibrian says try- says he hopes ATRIP can do what CPF didn’t. ing to lobby hardline Florida lawmakers like “This organization can succeed and move HOW TO LOBBY MEMBERS OF CONGRESS Reps. Ileana Ros-Lehtinen and Lincoln Díaz- forward, irrespective of what went on with Balart is a complete waste of time. CFP. But they’ll have to generate political re- “The tougher OFAC cracks down on people “Their votes are not worth pursuing,” he sults.” He insists that CPF folded not because traveling [to Cuba] illegally, the easier our job said, advising ATRIP to focus instead on “non- grant money dried up — as has been previ- gets, since more people become aware of a Florida members of the House and Senate ously reported by CubaNews — but because bad law,” said Gibadlo. “This case of a grand- who don’t have that captive constituency.” “we believed it would be very difficult to ach- mother who went on a bicycle tour and now Gibadlo agrees: “For instance, I think Bob ieve results in the current political climate.” has her social-security check withheld to pay Menendez might be tough, but there’s a host Alexander added: “The House leadership the fine just adds fuel to the fire.” of other Democrats in New Jersey who have will resist any efforts to ease sanctions. But I think a group like this representing industry can at least show there is support in the U.S. for a change in policy, and when that support does not lead to change in policy, I hope that “Our goal is to eliminate the ban that prohibits Americans ATRIP will be able to illustrate that it’s a mino- rity of powerful lawmakers who are subvert- from traveling to Cuba. That’s why ATRIP exists.” ing the majority will.” — BRENT GIBADLO, EXECUTIVE DIRECTOR OF ATRIP The House is likely to take up the bill in the first week of September, with the Senate fol- lowing shortly after. Gibadlo predicts it could win 275 votes in the House and maybe 60 votes in the Senate, though he discounts the In mid-October, ATRIP will present a 3-day all supported the travel ban, and maybe they possibility that President Bush — who has “U.S.-Cuba Travel Conference” in Cancún, have Cuban-Americans in their districts who never vetoed any bill — would veto this one if Mexico, to push its agenda; 50 to 100 travel think the ban should be lifted.” passes both houses of Congress. professionals are expected to attend. Last year, when Flake’s measure to lift the So what if Gibadlo gets what he wants and David Cibrian, a San Antonio attorney who Cuba travel ban came to a vote in the House, Americans are suddenly free to fly to Havana? spoke at the ATRIP conference, calls himself it passed by a margin of 262-167, compared to “Our model is to put ourselves out of busi- a “longtime Republican and first-generation a 240-186 vote in 2001. Yet in 2001, the Senate ness, realistically within two to three years,” Cuban-American” who strongly opposes the never got around to considering it, and in he said. “But even if the Cuba ban were lifted, current U.S. policy on Cuba. 2002, the measure was stripped out of the there are still travel restrictions to other coun- “There was a lot of skepticism about get- Treasury-Postal bill in conference committee. tries, so we might stick around.”

lifting the travel ban come to the Senate floor. tions are skeptical that Castro would allow a Congress — FROM PAGE 1 Noriega, a former aide to Sen. Jesse Helms flood of U.S. visitors to Cuba. A Senate measure that would make it easi- (R-NC), has been serving as U.S. ambassador In a Jul. 15 conference on Cuba, Washing- er for U.S. businesses and farm groups to visit to the Organization of American States. He’ll ton attorney Robert Muse said many “myths” Cuba and sell food will probably meet the take the place of Bush’s previous nominee, surround such arguments. One of them, he same fate. That measure was sponsored by the controversial Otto Reich, who was given a said, is that the end of travel restrictions Sen. Byron Dorgan (D-ND) and included by one-year recess appointment because Demo- would mean the end of a “more complicated the Senate Appropriations Committee in a $17 crats blocked his confirmation. and entrenched commercial embargo.” This billion spending bill that would fund both the In return for releasing his hold, Baucus misunderstanding stiffens resistance to end- Department of Agriculture and the Food and was promised by Frist and Lugar that he ing travel restrictions among GOP leaders Drug Administration next year. could bring up his Cuba travel bill as an and the White House, said Muse. But the chairman of the House Appropri- amendment to a Senate State Department Another misconception, he said, is that lift- ations Committee, Rep. Bill Young (R-FL), spending bill in the fall. ing the travel ban would translate into large opposes any weakening of the embargo and “By working together, the Senate majority numbers of Americans flocking to Cuba. will insist that the measure be excluded from leader, the chairman of the Foreign Relations Muse doubts this would happen because any final agriculture spending bill crafted by Committee and I were able to successfully Cuba doesn’t have the “hotel and hospitality House and Senate negotiators. reach an agreement with both the nomination infrastructure” to accommodate them, and One small victory for the anti-sanctions of Mr. Noriega and Cuba travel legislation,” that “there’s less interest by Americans in camp occurred in July, when Senate Majority said Baucus. traveling to Cuba than is often assumed.” Leader Bill Frist (R-TN) and Senate Foreign While it’s not illegal to travel to Cuba, the Muse also said arguments that the travel Relations Committee Chairman Richard Lu- U.S. embargo prohibits spending money on restrictions are unconstitutional are false and gar (R-IN) were forced to compromise with such travel without a license from Treasury’s counterproductive. Sen. Max Baucus (D-MT) over a Cuba bill. Office of Foreign Assets Control. The 9th U.S. Circuit Court of Appeals up- For months, Baucus had held up a vote on When he introduced his bill in April, Bau- held Cuba travel restrictions in 1996. But the nomination of Robert Noriega — Bush’s cus said unfettered U.S. travel to Cuba would Muse said lobbyists who argue that Cuba candidate to run the State Department’s topple Castro because “his way of governing such restrictions are unconstitutional may be Western Hemisphere department — through wouldn’t be able to survive the influx of Ame- met with lawmakers who say, “If so, why don’t a Senate procedure known as a “hold.” ricans and democratic ideas that would flood you stop bothering me about passing legisla- Baucus had placed the hold on Noriega be- his island if the embargo were lifted.” tion and instead file a lawsuit to have the trav- cause GOP leaders wouldn’t allow his bill on But others who’ve studied the travel restric- el ban struck down by the courts?” 2003_08/CubaNews 8/8/03 12:47 PM Page 10

10 CubaNews ❖ August 2003 COMMODITIES Bitter 2003 harvest leaves sugar industry’s future in doubt BY ARMANDO H. PORTELA years — considering that 2002 yields stood at drainage of the fields, and deprives rootstalks he first “big test” after the downsizing 30 tons/hectare (35,500 arrobas/caballería). from oxygen and nutrients. of Cuba’s sugar sector has failed. The When he assumed control of the Sugar To alleviate the problem and avoid yields T poorest harvest since 1933 leaves little Ministry in 1997, Rosales announced a plan to from falling sharply, each year the fields must hope that Cuba can manage a short-term re- rebuilt the industry’s capacities by 2002, sta- be deeply plowed and the soils generously covery of its shattered sugar industry unless bilizing raw sugar output at 7 million tons and fertilized. Following the harvest, heavy trac- key structural changes are introduced soon. agricultural yields at 54 tons per hectare (see tors must till the soils 12 to 20 inches deep. Deprived of the support of Soviet-style sub- CubaNews, May 2003, page 11). But even with this, the fields won’t last for sidies, each harvest since 1991 has turned Since then, just the annual replanting effort more than three to five years — after which into a frustrating endeavor that usually disap- — the core of the Sugar Ministry’s strategy they need to be replanted at an average cost points analysts and worsens Cuba’s desperate — has cost the island around $650 million, or of $400 per hectare. financial situation instead of encouraging eco- 8% of Cuba’s 1997-2001 exports. In the mean- Unable to meet all working stages of this nomic recovery. time, income from sugar exports during that simple scheme, the government focuses on After sacrificing almost half of Cuba’s sugar period fell from $845 million to $440 million. readying the combines for an imminent har- mills and 60% of its plantations, the crop that officially ended Jun. 21 was not the turning point many had expected. This harvest barely yielded two million metric tons. No official figure has been released, and estimates fluc- tuate from 1.9 to 2.1 million tons — down 40% from the 3.6 million tons produced in 2002. The simplistic view of dismantling the worst-performing mills and purging 60% of the lowest-yielding plantations failed to over- come the inefficiency of a sector that custom- arily uses bad weather as a scapegoat for the industry’s mishaps. EXCUSES, EXCUSES Talking about Cuba’s “extremely difficult” 2002-03 harvest, Sugar Minister Ulises Rosa- les del Toro was quoted by official media last month as saying that “lack of financing, lack of cohesion and understanding of the restruc- turing, and excessive rains” were to blame. While the rains weren’t dramatically unusu- al for this time of year, other factors which are more likely to account for the pathetic harvest are poor organization, untimely allocation of That plan apparently misjudged the finan- vest, ultimately keeping yields low. Poor resources, inadequate management of priori- cial needs of the sugar industry, which de- wages and difficult working conditions make ties, pitiful mill repairs, frequent production mands a relatively high intake of fuels, the sector unattractive. stoppages, excessivly long operations and the machinery, chemicals and spare parts in a At present, the government pays sugarcane lack of incentives for workers. centralized structure that leaves little room growers 24.90 pesos per 100 arrobas. That’s Authorities had planned to produce 2.7 mil- for producers to make their own decisions. equivalent to 96¢ at current exchange rates, lion tons in a 90-day, low-cost harvest to begin even though at January-June average spot sometime between late December and early REFORMS DESPERATELY NEEDED prices that sugar would be worth $21.60. January, grinding at a minimum 80% opera- A sugar harvest is an intricate string of A grower selling his sugarcane to the state tional capacity in 71 mills. thus makes barely $44.95 per hectare, assum- Instead, output fell short of the target by dependent events which cannot be fixed by focusing on one matter at a time. Moreover, ing he has the best yields in the country. 25%. Most mills started several weeks late, By comparison, the sugarcane grown in while grinding was extended to 180 days in 78 it’s hard, if not impossible, to change the fate such a parcel would be worth $1,000 at cur- mills, operating well below 70% capacity — an of the sugar sector without massive invest- rent soft world prices. By selling 150 pounds indication that production costs (which have ments. And that’s unlikely in the absence of of pork on the free market, the same grower not yet been disclosed) were deceptive. far-reaching reforms that soften the central could earn five times more than he could with Shortly after the failure become evident, grip over producers and traders. one hectare of sugarcane. authorities said the industry would overcome Take for instance the agricultural system. Perhaps the outspoken Ramón Castro, the the current slump by 2007. At that point, said Since the 1970s, Soviet-designed sugarcane eldest of the three Castro brothers, gave the Oscar Almazán, president of the Cuban harvesters, weighing 4.2 tons each and modi- best description of the Cuban sugar indus- Association of Sugar Technicians, agricultural fied by Cuban engineers, have processed 75% try’s current sorry state of affairs when he yields averaging 54 tons per hectare (63,800 of the sugar harvest. These heavy machines, told a recent Havana radio program: arrobas per caballería) would allow the pro- followed by loaded trucks, severely compact “I don’t like even to walk into the sugar duction of up to 4 million tons. the soils in the plantations, especially if they fields. There is so much clumsy work done But that target seems well beyond the real are wet; in past years the harvest customarily that if Alvaro Reynoso [a renowned 19th-cen- capacity of the industry, as it demands a sus- runs deep into the rainy season. tury Cuban sugar expert] was resurrected, tained 18.8% annual growth for the next four Compacting the soils, in turn, causes bad he’d die again of sorrow.” 2003_08/CubaNews 8/8/03 12:47 PM Page 11

August 2003 ❖ CubaNews 11 BOOKSHELF BUSINESS BRIEFS

LIGHT MANUFACTURING SECTOR REORGANIZED Exile dreams and propaganda posters Cuba’s light manufacturing sector expects to sell $165 million worth of goods in the local ¡Revolución! Cuban Poster Art by Lincoln y Heart/De Memoria: Cuban Women’s hard-currency retail market, up from $4.5 mil- Journeys In and Out of Exile goes be- Cushing explores the world of the poster — one of the most popular art forms in Castro’s lion in 1992. And at least $13 million worth of B yond the politics and rhetoric to show goods will be exported, up 30% from last year. Cuba. Since 1959, the government has spon- how Cuba was experienced by the people All that’s according to an article in Granma, directly affected by Castro’s revolution. sored over 10,000 posters on a fascinating Poignant stories of families separated by range of cultural, social and political themes. which quotes Jesús Pérez Othon, minister of the 1962 missile crisis or broken apart by ex- ¡Revolución!, produced with unprecedented light industry, as saying that his target is to access to Cuban national archives, assembles have at least 50% of Cuba’s manufactured ile are retold in this goods selling on the shelves of dollar stores. 208-page volume 150 of these powerful works of popular art. From the 1960s through the 1980s, these At present, Cuba’s light-industry sector has edited by María de seven companies, 123 economic enterprises los Angeles Torres. posters rallied the Cuban people to the huge task of building a new society, promoting mas- and organizations, 10 joint ventures and eight Eleven women, economic associations. all born in Cuba sive sugar harvests and national literacy cam- paigns; celebrating films, music, dance and Articles most in demand, he said, are Unión but now living in Suchel perfumes, cosmetics and toiletries the U.S. or Europe, baseball with a unique graphic wit and exu- berant colorful style. manufactured by Unión Suchel. Another suc- wistfully describe cessful company is Unión de Muebles Judo, their mixed feel- They also glorify Che Guevara and the rev- ings about the olution, of course, and promote a variety of which supplies furniture for Cuba’s hotels. homeland they left international causes ranging from Puerto Meanwhile, two large spinning mills — one behind. Rican independence and Congolese rebels to in Havana and one in Santiago de Cuba — Chronicling atti- solidarity with African-Americans and opposi- have been converted into industrial parks in tudes about Castro tion to U.S. involvement in Vietnam. order to reduce overall fuel consumption. One poster shows the vampire-fanged head Similarly, six enterprises are now located at and the Cold War, the personal essays in By of Richard Nix- the Palatino Graphic Industrial Park in La Heart provide a history of the Cuban exile Habana province, said Granma. community and its relationship to the island. on on the body of a hawk whose In Las Tunas, another plant has been recon- All of the major waves of exiles are repre- figured to produce latex surgical gloves, while sented (Operation Pedro Pan, Freedom talons are rip- ping into Indo- factories that make soles and plastic footwear Flights, Mariel, etc.) and the women’s heart- have also been modernized, including those felt stories about leaving the country, or being china. Another making guayaberas, suits and swimsuits, as refused reentry, are emotionally recounted. depicts a bolt of well as envelopes, napkins, embroidered As identities are reconstructed, the women lightning slicing in By Heart consider the difference between Uncle Sam’s hat goods and even newspapers and magazines. off in the name “We are directing a highly changing indus- “exile” and “nation” and what it means to of solidarity with them to be demarcated by a political and/or try to bring it into line with fashion and com- the Cuban Revo- petition, and to respond to client demands,” geographical boundary. Nevertheless, they lution, while a are united by their “shared points of refer- Pérez Othon told Granma. third shows a “We still have a lot to learn, especially in ence,” that is, having grown up in the age of man crucified the Cuban revolution. relation to marketing mechanisms. Prospects Contributors: Liz Balmaseda, Tania Bru- on a dollar sign symbolizing foreign debt. for increasing production are infinite. We are guera, Madelin Cámara, Carmen Díaz, Jose- With an introduction illuminating the rich presently working very hard on creating new fina de Diego, Teresa de Jesús Fernández, social and artistic history of the posters, this lines. During this year we are proposing to Nereida García-Ferraz, Ana Mendieta, Raquel 132-page book offers a window into the story launch no less than 1,000 new articles main- Mendieta Costa, Achy Objeas and Mirta Ojito. of Cuba and a truly revolutionary chapter in taining a tight quality/price relationship so Price: $19.95 paper (ISBN 1-59213-011-9). graphic design. that they are genuinely competitive.” Details: Temple University Press, 1601 N. Price: $19.95 paper (ISBN 0-81183-582-0). Broad Street, Philadelphia, PA 19122-6099. Details: Chronicle Books, 85 Second St., 6th Tel: (215) 204-8787. Fax: (215) 204-4719. Floor, San Francisco, CA 94105. Tel: (415) BUSINESS GUIDE TO CUBA URL: www.temple.edu/tempress. 537-3730. URL: www.chroniclebooks.com. The Business Guide to Cuba is the most comprehensive research report on Cuban business and politics available today. D.C. photo exhibit portrays life in Cuba With more than 300 pages of exclusive An exhibit running until Sep. 9 at Bossa Bis- information, data, charts and maps on all with me — folk whose culture, socioeconomic productive sectors of the economy — as tro & Lounge in Washington’s Adams Morgan background, health, age and world view often well as a list of official contacts, business district features the work of local photogra- varied greatly from my own,” he said. “The practices and even Cuban street slang — pher Shawn Davis, who visited Cuba last year crossing of our paths offers the opportunity to the Business Guide to Cuba is your No. 1 to document the lives of two subjects: a Hav- give and take, to forge a brand of honest com- resource on potential investment opportu- ana flower vendor and a man with AIDS. munication and to discover common bonds.” nities and pitfalls in this emerging market. The show of black-and-white and color pho- Davis, 28, recently had his photographs of Copies of the guide are available for only tos, titled Cuba: Through My Eyes, opened Jul. homeless AIDS and cancer victims in Wash- $99 each, shipping and handling included. 29 and follows similar portrayals of everyday ington exhibited at the René Portocarrero To order your copy, call us toll-free today life in West Africa by Davis, who spent three Gallery of Havana’s National Theater. at (800) 365-1997, fax us at (301) 365-1829 years in Mali and Guinea as a volunteer with Details: Bossa Bistro & Lounge, 2463 18th or send an e-mail to [email protected]. the Peace Corps and the World Food Program. Street, NW, Washington, DC 20009. Tel: (202) Visa, MasterCard and Amex accepted. “These are people who shared their lives 258-8260. URL: www.shawndavisphoto.com. 2003_08/CubaNews 8/8/03 12:47 PM Page 12

12 CubaNews ❖ August 2003 The Ondangwa factory will initially produce United States, Israel and South Africa. BUSINESS BRIEFS generic vaccines and drugs for common ail- Other possibilities include sugar, honey, cof- ments. Only in its second phase will it start to fee, chocolate and other types of citrus, say DAMEX BUILDS SHRIMP BOATS IN SANTIAGO produce antibiotics and anti-retrovirals (ARVs) Fukui. According to Japanese experts, Cuba State enterprise Damex expects to build for AIDS treatment. could someday supply 10% of Japan’s $3 billion seven shrimp boats by year’s end as part of a Julio César Ayala, a Cuban pharmaceutical organic foods market. contract involving a Dutch company and the expert in Namibia to set up the factory, said Last year, Japan imported $28 million worth Cuban Fishing Ministry. Damex, headquar- the plant could eventually produce up to 500 of Cuban goods and shipped $25.9 million in tered in Santiago de Cuba, builds and repairs million tablets, 52 million capsules and five exports to Cuba, according to JETRO. all kinds of vessels at El Níspero shipyard, million bottles of oral suspensions a year. Details: Tadashi Minemura, JETRO-Mexico, which is owned by the Oriente Shipyard Co. He said the venture would also target South Paseo de las Palmas 239, Piso 3, Lomas de Since the venture began in 1989, Damex has Africa, Botswana and Angola — all of which Chapultepec, 11000 Mexico DF. Tel: +52 55 built tugboats, barges, hulls and 72-meter-long have been hit hard by AIDS in recent years. 5202-7900. E-mail: [email protected]. Ro-Ro vessels, in addition to providing other services; its chief foreign clients are Curaçao, SAREX UPS POLYPROPYLENE BAG PRODUCTION CUBANA TO FLY BARCELONA-SANTIAGO ROUTE Chile, Costa Rica, Guatemala, Jamaica, In three years of operation, state entity State-owned airline Cubana de Aviación has Martinique, Mexico and South Africa. Sarex has produced over 40 million polypro- inaugurated a new seasonal route between pylene sacks — replacing imports which pre- Santiago de Cuba and Barcelona. C-COM TO EXPAND MOBILE PHONE NETWORK viously cost Cuba $4 million a year. The flights will operate until September, Mobile phone company C-COM will expand That amount equals investment in the allowing Spanish tourists to take advantage of its services this year to all of Cuba’s key tour- Havana factory, which is equipped with Italian city tours as well as excursions to Gran ist destinations. Currently, the service is avail- and Austrian technology. Piedra, Baconao Park, El Saltón and Baracoa. able only in Havana, Matanzas and Varadero. This year, Sarex expects to produce 21 mil- State-run Cubanacán S.A. is in charge of The company, founded in January 2001, lion bags. Of that total, two million will be operating this new route through Spanish tour handled 200,000 calls during the first half of exported, since the product “is gaining wholesalers specializing in Santiago de Cuba, 2003 — relatively small compared to the mil- ground in the international market because of such as Politour and Travelplan. lions of calls handled by much larger Cubacel. their high quality and competitive prices.” Using GSM-based phones allows C-COM Sarex operates under the perfeccionamiento CIENFUEGOS HOTEL REOPENS AS ALL-INCLUSIVE clients to send and receive messages in text empresarial system, which gives the company The Horizontes Rancho Luna, the largest format; forward, identify and receive calls, more autonomy to make deals, and encour- hotel in Cienfuegos province, will reopen in and access voice-mail, multi-conferences with ages labor discipline and high quality. the next few weeks, reports Cuban media. the up to six participants, data transfer and nation- 222-room hotel has undergone a $10 million JAPAN URGES CUBA TO TAP ORGANIC MARKET al long-distance as well as overseas calls. restoration and enlargement; it will now oper- To date, C-COM has signed 120 roaming Cuba could boost its exports of organic ate as an all-inclusive resort; its international contracts with 55 countries, mainly in Europe products significantly, says Eiji Fukui, an offi- diving center will be complemented by other and Latin America. cial of the Japan External Trade Organization options including an Italian restaurant, an (JETRO). Fukui, part of a visiting delegation Internet café and a multipurpose hall. SUGAR MINISTRY HOPES TO PROMOTE TOURISM of Japanese executives representing seven big The three-star hotel — geared largely Cubanacán S.A. and the Sugar Ministry may food companies, said one possibility is the towards Canadian vacationers — will also get soon open a specialized shop in the province export of grapefruit; he said Cuba could get a a gymnasium, sauna and massage parlor; of Villa Clara to sell Mulata rum, as well as a 5% share of Japan’s $800 million grapefruit miniature-golf course, pharmacy, recreation restaurant serving typical Cuban food. market, which is currently dominated by the club and kiddie swimming pool. The Marcelo Salado Museum, one of seven cultural facilities devoted to the history of Cuba’s sugar industry, is located in the town BLACKOUTS A THING OF THE PAST, SAYS POWER CZAR of Caibarién; it’ll play a major role in the deve- in those years the country was only generat- lopment of tourism throughout the region. uba’s top electricity official says there’s virtually no chance of power cuts this ing a tiny percentage of its needs.” The two partners plan to create tourist cir- Puentes stressed the importance of “devel- cuits, in which vacationers will tour sites of Csummer, of the kind Cubans remem- oping a culture of saving in the population natural, historic and cultural interest on trains ber from the early 1990s. Víctor Puentes, head of the government via the media and the education system.” pulled by 19th-century steam locomotives. The high price of crude on the internation- Representatives from both Cubanacán and agency regulating electricity demand in Cuba, told the Communist daily Granma al market, he added, is another reason for the Sugar Ministry expect the project to be saving, because Cuba produces very heavy ready by November. that “for the first time this year, the island is generating all its electricity with domestic oil and has to import diesel for other needs. NAMIBIA, CUBA TO PRODUCE ANTI-AIDS DRUGS oil.” He said Cuba is producing 11,000 tons The official also commented that the poor of crude oil per day, and national electricity quality of Cuban crude leads to frequent and The government of Namibia says it’s com- demands can be met with 9,000 tons. costly maintenance operations at the island’s mitted to establishing a pharmaceutical plant He also said that demand is very close to thermoelectric stations, meaning that gener- in cooperation with Cuba. Abraham Iyambo, Cuba’s generating capacity at peak hours. ating capacity falls, causing power cuts. the African country’s acting foreign minister, “This was created in 1997 to establish rig- Cuba pays for part of the oil produced by told The Namibian that he’s given a local orous controls for high-use industrial enter- Canadian and other multinationals involved pharmaceutical company, Zenith Enterprises prises, which since then have been working in the drilling and extraction of petroleum, Inc., the go-ahead to produce anti-retroviral outside of peak hours,” he said. “Irrigation he said, confirming that “work is underway HIV drugs in the city of Ondangwa. in the agricultural sector is likewise under- to ensure that electricity supplies are not Marta Lomas Morales, Cuba’s minister of taken outside hours of high consumption.” lacking, while everything will be done to foreign investment and economic cooperation, Granma reports that Cuba’s inhabitants reduce consumption and extra measures will says the joint venture represents an invest- “remember with distress the long power be taken during the summer period.” ment of $17.5 million over the next three cuts of the last decade, particularly in sum- Puentes also told Granma that Cuba is years. Lomas was recently in Windhoek, the mer, when energy demand increases due to mulling the development of solar energy, but capital, to encourage trade and investment high temperatures and vacation periods, but that it “has proved very expensive to date.” between the two countries. 2003_08/CubaNews 8/8/03 12:47 PM Page 13

August 2003 ❖ CubaNews 13 FINANCE New foreign-exchange regs apply to banks, state entities BY PHILIP PETERS are cancelled, and those that want to maintain The regulations partially reverse a policy of On Jul. 16, Cuba’s Central Bank enact- these accounts must re-apply within 15 days. decentralization that has changed Cuba’s for- ed new foreign-exchange controls for For those who win approval, the Central Bank eign trade sector over the past decade. While T all Cuban banks and state enterprises. will determine the amount of foreign curren- they may not bring back the day when a gov- The new regulations, intended to “ensure cy they may hold in those accounts. erning ministry approved every personnel efficient use of financial resources,” establish decision and every transaction in a Cuban the peso convertible as the only means of pay- state enterprise, they do erode a degree of ment to denominate and execute transactions auto-nomy that had been extended to Cuban now carried out by Cuban entities in U.S. dol- managers — one that created efficiencies lars or other foreign currency.” internally and improved Cuba’s ability to do The regs respond to Cuba’s hard-currency business with foreign partners. crunch brought on by reduced sugar and The impact on Cuba’s investment climate tourism income, and low economic growth. In will most likely be small, and negative. The a sense, they formalize a phenomenon that term “exchange controls” always spells risk has grown in the past two years: the strict to international investors. husbanding of all available foreign exchange The resolution grants two explicit excep- Because joint ventures with foreign inves- to pay for essential imports, including U.S. tions. Joint ventures may continue to transact tors are exempt from the new regulations, food commodities — which are bought with- all business in foreign currency, and Cuban there is no threat to their ability to repatriate out credit, with cash, at time of delivery. citizens may continue to hold dollar accounts profits. However, many of these joint ventures Under Resolution 65/2003, all Cuban state in Cuban banks. are suppliers or creditors to Cuban customers enterprises and all Cuban banks are required However, some entities will do business dif- whose payments are in arrears — and the to convert foreign currency holdings to “con- ferently. A state-owned hotel that earns dollar new currency conversion process seems like- vertible pesos” — the Cuban currency that is and euro income from tourism will apparently ly only to delay payments. used interchangeably with the dollar in Cuba have to convert those hard-currency earnings By centrally amassing and managing and that trades on a par with the dollar. to convertible pesos on an ongoing basis. Cuba’s stock of convertible currency, the Businesses that need foreign exchange will As the hotel needs euros, for example, to Central Bank may earn higher interest or need the Central Bank’s approval to purchase buy specialty foods and kitchen equipment limit Cuba’s exposure to exchange rate fluc- it with their convertible peso reserves. The from a supplier in Madrid, it’ll pay a 200-euro tuation, yielding marginal benefits. As a policy resolution implies that this approval process fee to Cuba’s Central Bank for every 10,000 measure, it is of a piece with the belt-tighten- will not have the effect of restricting trade. euros it buys, and it will not be able to make a ing occurring elsewhere in the economy. “In no case,” the resolution states, will the normal, same-day currency transaction. But the new currency regulations do noth- Central Bank’s approval be used to “impede What will be the impact? ing to increase the flow of foreign exchange or obstruct” payments to settle debts or obli- First of all, it’ll make Cuba’s convertible to Cuba. Government could only achieve that gations overseas. peso less convertible from the point of view of result by changing some of the basic rules However, entities will pay a 2% fee and wait the banks and enterprises that hold them. and incentives that govern economic activity up to two weeks to obtain foreign exchange. Instead of a same-day trade at par, there will – an option that is not in play in Cuba today. The licenses now granted to banks and be a delayed transaction with a 2% surcharge. The writer is vice-president of the Lexington enterprises to have accounts in foreign banks In effect, that will act as a 2% tax on imports. Institute, a think tank based in Arlington, VA.

Raúl Castro. His new job isn’t yet known. and led a major census of Cuba’s handicapped Party — FROM PAGE 2 Pedro Saez Montejo, first secretary of the children — an achievement that earned her the last six or seven years, he’s also been PCC in the province of La Habana, transferred praise and recommendations by Fidel Castro. there to replace Lazo Hernández (see page 2). praised repeatedly by Raúl Castro, privately COUNCIL OF MINISTERS as well as in public. Replaced by Iván Ordaz Curbelo, white, age Replaced in Villa Clara by Roberto López 37, with a degree in social sciences. He comes Public Health (MINSAP): Dr. Damodar Hernández, white, in his mid 40s, with a from the ranks of UJC cadres and did Party Peña Penton, white, 41, specialist in internal degree in geography. López Hernández, a work for 17 years. More recently, Ordaz medicine. led Cuban mission to Guatemala in teacher by profession, spent 15 years as a UJC Curbelo was promoted to the CC. late 1998, following Hurricane Mitch. Played leading role in anti-dengue campaign in 2002; and Party cadre in the province of Villa Clara. ANGEL GARATE DOMINGUEZ At the time of his designation, he was not a praised in public and private by Fidel Castro. professional cadre at the provincial level. First secretary of the Poder Popular in the Construction (MICONS): Fidel Fernando More recently, he was promoted to the CC. province of La Habana. Was removed and Figueroa de la Paz, white, age 46, a civil engi- appointed vice-minister of transportation. neer by profession. JORGE L. SIERRA CRUZ Replaced by Evelio Saura Perot and Transport (MITRANS): Carlos Manuel First secretary of the PCC in the province of Armando Regino Cuellar. Pazo Torrado, white, age 40, expert in geo- desics and cartography, former head of the Holguín. White, 42, a mechanical engineer by MARCIA COBAS RUÍZ profession with a master’s degree in mathe- CC’s Department of Construction, Transport matics and information technology. White, mid 40s, with a degree in chemistry. and Communications for many years. Simultaneously promoted to CC and Polit- For years, she supervised the laboratory at Finance & Prices: Georgina Barreiro Fajar- buro in 1997 after becoming a Party member the Camilo Cienfuegos sugar mill. In 1987, do, white, age 39, with a master’s degree in five years earlier, following a long political Cobas Ruíz became a Party cadre, working in finance and credit, and with 16 years of expe- career within the provincial UJC leadership. municipalities throughout the city of Havana. rience at Cuba’s Central Bank, where she was Like Díaz-Canel, who replaced him in Hol- More recently, she’s become a member of most recently vice-president (for more details, guín, Sierra Cruz has been praised often by the provincial Executive Bureau of the PCC see CubaNews, July 2003). 2003_08/CubaNews 8/8/03 12:47 PM Page 14

14 CubaNews ❖ August 2003 GEOGRAPHY Santiago de Cuba has illustrious past, uncertain future most of the southern slope and a large portion of the Sierra Maestra This is the 13th in a series of monthly articles on Cuba’s 14 — the largest and tallest mountain range in Cuba — a sparsely popu- provinces by geographer Armando H. Portela, who has a Ph.D. in geog- lated terrain cut by deep valleys with coffee plantations shaded by trop- raphy from the Soviet Academy of Sciences. Portela resides in Miami. ical forests. Most of the population lives in the cultivated upper Cauto River basin, the Central Valley and the landlocked depression of BY ARMANDO H. PORTELA Santiago de Cuba. he province of Santiago de Cuba was created in 1976 when the Santiago sits on one of the most active seismic zones in the Carib- Castro government redrew all of Cuba’s political boundaries, bean. A 1932 earthquake measured 6.7 on the Richter scale and T dividing the former province of Oriente into five new jurisdic- severely damaged the capital city. tions. Three fresh-water reservoirs have been built since the 1960s in the Located in southeastern Cuba, Santiago covers 6,170 sq kms (2,382 upper Cauto River basin to suit the needs of a growing population, con- sq miles), or only 5.6% of Cuba’s territory. But since the beginning, the trol catastrophic floods and serve agriculture. Together, they can hold province has had a disproportional historical, cultural, demographic over 510 million cubic meters (135 billion gallons) of water. But dam- and economic influence on the rest of the island. ming the Cauto River has caused extensive saline intrusions and con- Two-thirds of the province’s land area is mountainous, including tamination to the basin and nearby croplands, reducing farm yields. POPULATION Santiago de Cuba province has 1.05 million inhabitants, or 9.2% of Cuba’s total. With 169 inhabitants per sq km, it is the second most densely populated province; only the City of Havana is more crowded. LARRY LUXNER

Young men and women at a social event in downtown Santiago de Cuba. 2003_08/CubaNews 8/8/03 12:47 PM Page 15

August 2003 ❖ CubaNews 15 INDUSTRY Santiago de Cuba ranks as Cuba’s second-largest industrial hub after Havana, but the current economic crisis has slowed down or even par- alyzed many facilities. With few exceptions, most industries are con- centrated around the city and port of Santiago de Cuba. One third of Santiago’s industrial production comes from electric power generation and petroleum refining. The 300-megawatt Renté and 500-megawatt Antonio Maceo thermo- electric plants rank among the most important of the country; togeth- er they can generate 25% of Cuba’s electricity. The Hermanos Díaz petroleum refinery, which remained idle for years after the onset of economic chaos in the early ‘90s, is capable of processing 74,000 barrels of crude a day. Another white elephant, the Celia Sánchez textile factory, was designed to produce 95 million sq yards of textiles and 2,000 tons of thread per year; it was completed in the 1980s but never came close to full capacity. Opened in 1955, Santiago’s cement plant accounts for 11% of Cuba’s total cement production. In the 1980s, it produced 500,000 to 600,000 tons a year, reaching a high of 616,000 tons in 1989. But in 1993, out- put fell to 280,000 tons; its current capacity is 400,000 tons per year. Other industries include a large brewery, six rum distilleries, a large Yet population growth has virtually stagnated. During the 1990s, the wheat mill, a newspaper printing plant, a dairy facility and a large pre- province grew at an annual rate of only 0.3% a year, compared to 1.4% fab housing factory. growth during the 1970s and 1.0% growth in the 1980s. This fact is attributed largely to Cuba’s rapidly declining living stan- TOURISM dards. Every year, one out of every 20 santiagueros leaves the pro- vince. Between 1991 and 2002, net migration cost the province 54,000 Santiago lags well behind other provinces in tourism. At present, people, or 5% of population. there are 1,783 rooms in 19 hotels, accounting for 4.5% of Cuba’s lodg- The capital, also named Santiago de Cuba, has 446,000 inhabitants, ing capacity; the largest hotel is the luxurious, 15-story Hotel Meliá making it Cuba’s No. 2 city after Havana. The capital has 42% of the Santiago de Cuba, with 302 rooms. total provincial population, up from 38% in 1981 and 35% in 1970. The development of large hubs in the style of Cayo Coco or Cayo Founded by Diego Velázquez in 1514, Santiago de Cuba is one of the Largo appears unlikely in the short term, but the scenic southern earliest settlements in the Americas; during the first half of the 16th shore of the Sierra Maestra could be the ground for a number of less century, it served as Cuba’s capital. ambitious projects. Santiago was also the scene of the decisive Battle of San Juan Hill INFRASTRUCTURE during the Spanish-American War in 1898, as well as the attack on the Moncada barracks The highway system of Santiago de Cuba province reaches all its Besides the capital, other important cities in Santiago de Cuba pro- economic centers and settlements, but the roads are narrow, twisting vince are Palma Soriano (80,000), Contramaestre (40,000), San Luís and in sad condition, while railroad service is poor. The old, two-lane (34,000), Mayarí Arriba (27,000), La Maya (20,000), Baire (13,000), Central Highway and the Central Railroad are the main links with the Mella (12,000), El Cobre (10,000), El Cristo (9,000), Alto Songo rest of the country. Construction of the National Highway was stopped (7,000), Baraguá (7,000) and Palmarito del Cauto (6,000). over a decade ago, just a few miles from Santiago city limits. The port of Santiago is the second-largest in Cuba, with 13 docks AGRICULTURE and 2,025 meters of berthing space. Its versatile facilities allow the han- Santiago de Cuba has been the least-affected of all Cuban provinces dling of 10.5 million tons of dry cargo —including 450,000 tons of by the recent downsizing of the sugar industry. Thanks to its healthier sugar in the 1980s — and six million tons of liquid annually. Its ware- sugarcane yields — reaching 47.8 tons per hectare (56,500 arrobas per house capacity exceeds 60,000 sq meters (645,000 sq feet). caballería), only one sugar mill was dismantled: Rafael Reyes (former- Antonio Maceo International Airport, south of Santiago, lags well ly known as Unión). behind other Cuban airports in traffic; terminals at Varadero, Cayo Co- Another mill, Los Reynaldos (formerly Baltony) was converted to co and Cayo Largo have become international hubs, while Santiago’s molasses production. Two other mills, América Libre (América) and airport still handles mostly domestic traffic. It can process 600 passen- Paquito Rosales (Borgita) are now among the best-performing sugar gers an hour — a figure well above actual traffic at the airport. mills in all of Cuba. Sugarcane is currently grown on around 75,000 hectares (185,000 acres). In its heyday in the late 1980s, Santiago de Cuba’s eight mills produced over 350,000 tons of sugar per harvest, worth over $190 mil-

lion at the preferential prices paid by the Soviets. LARRY LUXNER Since then, however, sugar production has dropped to 220,000 tons worth $33.4 million at world market prices. In addition to sugar, the province’s mills also produce alcohol and torula yeast. Santiago de Cuba is also the largest coffee producer, accounting for 35% of Cuba’s total production. Yet decades of poor care and continued migration of farmers from the mountains to the cities has depleted the both quality and volume of coffee crops. The province currently pro- duces 5,000 to 7,000 tons of coffee beans per year, down from 15,000 tons in the early 1960s. Coffee-growing waste is a major cause of the widespread pollution of runoff waters in the province, though the recent introduction of clean- er technologies from Colombia has reduced the amount and toxicity of these wastes. Antique Chevrolet is parked on a quiet side street in Santiago de Cuba. 2003_08/CubaNews 8/8/03 12:47 PM Page 16

16 CubaNews ❖ August 2003 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) 365-1829 or send an e-mail to [email protected]. thanks to CubaNews. Now find out what’s happening in the rest of this diverse and Jun. 6-Aug. 31: Exhibit on Cuba, featuring over 70 works by a dozen photographers. fast-growing region. Subscribe to Caribbean UPDATE, a Says curator Terry McCoy: “The goal of the exhibition is to convey Cuba’s present, and monthly newsletter founded in 1985. This to do so with a sense of accuracy and humanity.” Details: Int’l Center of Photography, 1133 publication has been praised by corporate Ave. of the Americas, New York, NY 10036. Tel: (212) 857-0000. URL: www.icp.org. and government executives, as well as by scholars and journalists, for its insightful, Aug. 15-25: Volunteer expedition to study Cuban sandhill cranes at Los Indios Ecolo- timely coverage of the 30-plus nations and territories of the Caribbean and Central gical Reserve, Isla de Juventud. Cost: $2,360. Details: Earthwatch, PO Box 75, Maynard, America. When you receive your first issue, MA 01754. Tel: (800) 776-0188. URL: www.earthwatch.org/expeditions/chavez.htm. you have two options: (a) pay the accom- panying invoice and your subscription will Sep. 1-30: Casa Bacardi and the University of Miami’s Cuban Heritage Collection pres- be processed; (b) if you’re not satisfied, ent a multimedia exhibit on salsa queen Celia Cruz. Cost: $5. Details: Casa Bacardi, 1531 simply write “cancel” on the invoice and return it. There will be no further obligation Brescia Ave., Coral Gables, FL 33134. Tel: (305) 284-2822. URL: www.miami.edu/iccas. on your part. The cost of a subscription to Caribbean Sep. 17-20: Feria Internacional de Transporte, Pabexpo, Havana. Trade show for the UPDATE is $267 per year. A special rate of transportation industry. Details: Miguel A. Cabrera Reyes, Ministry of Transport, Havana. $134 is available to academics, non-profit Tel: +53 7 55-5079 or 55-5082. Fax: +53 7 33-5118. E-mail: [email protected]. organizations and additional subscriptions mailed to the same address. Oct. 4: National Summit on Cuba, Biltmore Hotel, Coral Gables, FL. Event to “examine To order, contact: Caribbean UPDATE, 52 Maple Ave., Maplewood, NJ 07040. Tel: various components of U.S. policy toward Cuba and explore alternative approaches to bet- (973) 762-1565. Fax: (973) 762-9585. ter address the interests of the majority of Cuban-Americans, Cubans on the island, and E-mail: [email protected]. We accept Americans at large.” Cost: $175. Details: Michele Wojcik, World Policy Institute, 66 Fifth VISA, MasterCard and American Express. Ave., 9th Fl., New York, NY 10011. Tel: (212) 229-5953. E-mail: [email protected].

Oct. 13-20: “Inside Cuba” program for travel agents. OFAC-licensed educational tour includes Miami-Havana airfare, lodging at Meliá Cohiba and trips to Trinidad and Santa Clara. Cost: $2,295. Details: Benita Lubic, Transeair Travel, 2813 McKinley Pl. NW, Wash- ington, DC 20015. Tel: (800) 666-4901. Fax: (202) 362-7411. E-mail: [email protected].

Oct. 16-18: U.S.-Cuba Travel Conference, Hotel Gran Meliá Cancún, Mexico. Details: Editor & Publisher Brent Gibadlo, Association of Travel-Related Industry Professionals, 2300 M Street, NW, LARRY LUXNER Suite #800, Washington, DC 20037. Tel: (202) 872-5071. E-mail: [email protected]. Washington correspondent ANA RADELAT

Oct. 18-27: Cuba Study Tour: Sustainable Agriculture and Fair Trade. Includes visits to Political analyst coffee farms, organic gardens, educational institutions, etc. Cost: $2,100 includes Miami- DOMINGO AMUCHASTEGUI Havana airfare, lodging, meals and all tours. Details: Rachel Bruhnke, EcoCuba Exchange Feature writers VITO ECHEVARRÍA Program, Global Exchange, 2017 Mission St., #303, San Francisco, CA 94110. Tel: (415) DOUGLASS G. NORVELL 255-7296 ext 354. URL: www.globalexchange.org/campaigns/cuba/sustainable/index.html. Cartographer ARMANDO H. PORTELA

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