U.S. DOLLAR UNCHANGED IN VALUE AGAINST THE PESO- Republic of Cuba government-operated Cajas de Cambio S.A. (CADECA) sold the Convertible Peso, equal to US$1.00, for 21 Pesos and purchased the U.S. Dollar for 20 Pesos since 27 January 2000.  The official international exchange rate of one Peso to one U.S. Dollar, in effect for more than thirty years, remained unchanged.  The government of the Republic of Cuba maintains a fixed exchange rate for its international dealings and a more flexible exchange rate for domestic use.  The government of the Republic of Cuba does not fluctuate the value of the Peso for commercial transactions regardless of any fluctuation with the value of the U.S. Dollar or other currencies on the international market.  The Peso and the U.S. Dollar circulate freely in the Republic of Cuba.
 

CADECA Buy	CADECA Sell	From / To
20	21	27 January 2000 to 16 April 2000
21	21	24 December 1999 to 23 January 2000
21	22	2 October 1999 through 23 December 1999
20	22	13 September 1999 to 1 October 1999
20	20	1 September 1999 to 12 September 1999
20	21	13 August 1999 through 31 August 1999
22	22	16 June 1999 to 12 August 1999
22	21	13 April 1999 through 15 June 1999
21	21	15 March 1999 to 12 April 1999
20	21	4 March 1999 to 14 March 1999
21	21	19 February 1999 to 3 March 1999

INTERNATIONAL TRADE COMMISSION HAS BEGUN “FACT-FINDING INVESTIGATION” OF CUBA- The Washington, D.C.-based International Trade Commission (USITC), “an independent, quasi-judicial federal agency that provides objective trade expertise to both the legislative and executive branches of government, determines the impact of imports on United States industries, and directs actions against certain unfair trade practices, such as patent, trademark, and copyright infringement… and investigate[s] and publish[es] reports on United States industries and the global trends that affect them” has commenced a general factfinding investigation to assess the economic impact on the United States of United States sanctions on the Republic of Cuba.  The investigation, The Economic Impact of U.S. Sanctions with Respect to Cuba (Inv. No. 332-413), was requested by the Committee on Ways and Means of the United States House of Representatives in a letter received by the USITC on 15 March 2000.  As requested, the USITC will include the following in its report: 1) an overview of U.S. sanctions with respect to Cuba 2) a description of the Cuban economy, Cuban trade and investment policies, and trade and investment trends 3) an analysis of the historical impact of U.S. sanctions on both the U.S. and Cuban economies, especially on affected sectors, and to the extent possible, on U.S. exports, imports, employment, consumers, and investment and 4) an evaluation of the current impact on U.S.-Cuban bilateral trade, investment, employment, and consumers of the economic sanctions on trade and investment with Cuba, with particular attention to the effects on U.S. services, U.S. agriculture, and other sectors for which the impact is likely to be significant.  The economic analysis will include information on the above factors to the extent data are available and using, as appropriate, a combination of quantitative and qualitative analyses.  A report will be submitted to the Committee on Ways and Means of the United States House of Representatives by 15 February 2001.  A public hearing in connection with this investigation will be held on 19 September 2000, at 9:30 a.m. at the USITC Building, 500 E Street S.W., Washington, D.C.  Requests to appear at the public hearing should be filed no later than 5:15 p.m. on 29 August 2000, with Ms. Donna R. Koehnke, Secretary, United States International Trade Commission, 500 E Street S.W., Washington, D.C.  20436; Telephone: (202) 205-2000.

DIRECT TELEPHONE SERVICE RE-ESTABLISHED- In February 1999, Republic of Cuba government-operated Empresa de Telecomunicaciones de Cuba S.A. (ETECSA), a joint venture operated by the Ministry of Communications of the Republic of Cuba within which Brussels, Belgium-based Stet International (a subsidiary of Rome, Italy-based Telecom Italia) has a 29% interest), suspended direct dial telephone service agreements with New York City, New York-based AT&T Corporation; Washington, D.C.-based MCI Worldcom; Jackson, Mississippi-based LDDS Communications; Miami, Florida-based IDB Communications; and Tulsa, Oklahoma-based Wiltel due to nonpayment of a then US$19 million in combined payments due from these companies for the last three months of 1998 and which were due to be paid to ETECSA by 31 January 1999.  For several weeks, customers within the United States then experienced difficulties with direct dial calls to the Republic of Cuba.  However, the United States-based telephone companies then re-routed telephone calls through third countries, and ETECSA continued to receive revenues from the telephone calls, although in some cases less than previously earned.  AT&T, MCI, WilTel, LDDS, and IDB, had been withholding payments due to having received writs of garnishment pending appeal of a lawsuit seeking to use the funds to collect damages (US$187.6 million) awarded in 1997 by a United States Federal Court in Miami, Florida, against the government of the Republic of Cuba in conjunction with a lawsuit commenced by relatives of three individuals subject to United States law of Cuban descent who were killed as a result of a shoot down by aircraft operated by pilots under the direction of the Revolutionary Armed Forces of the Republic of Cuba in February 1996.  ETECSA said agreements with Kansas City, Kansas-based Sprint International and San Juan, Puerto Rico-based Telefonica Larga Distancia of Puerto Rico (TLDI) were not suspended as they maintained their payments.  Sprint is the provider of the Republic of Cuba’s Internet connections with other countries, and TLDI does limited Republic of Cuba transactions.  In August 1999, the United States Court of Appeals in Atlanta, Georgia, overruled the United States Federal Court in Miami, Florida.  In March 2000, the payments were then re-authorized.  ETECSA has now re-established the 1,020 direct dial circuits.  Approximately 135 million minutes worth of telephone calls were placed between the United States and the Republic of Cuba in 1998, with approximately 90% of the telephone calls being placed from the United States to the Republic of Cuba.  Direct dial telephone services were re-authorized by the Cuban Democracy Act signed into law by President George Bush in 1992.  Direct dial telephone services were implemented in 1994.  ETECSA received approximately US$85 million (excluding the US$19 million paid in March 2000) in 1998 as its approximately 45% share of the revenues generated from United States-origin telephone calls, which average in cost from approximately US$.60 to approximately US$3.00 per minute.

BELL ATLANTIC PRICES SOME CUBA CALLS AT US$.69 PER MINUTE- New York City, New York-based Bell Atlantic Corporation (1999 revenues exceeding US$31 billion) is decreasing some long distance telephone rates from the United States to the Republic of Cuba.  The Bell Atlantic International Savings Plan “will reduce international calling rates by 40% to the 33 most often-called” countries.  “New York is the gateway to world, making international calling a regular occurrence for many of our long distance customers,” said a media release by the company.

MEMBERS OF CONGRESS VISIT CUBA- The Honorable J. Joseph Moakley (D-Massachusetts) and The Honorable James McGovern (D-Massachusetts) are visiting the Republic of Cuba from 15 April 2000 to 20 April 2000 in conjunction with a group of educators seeking to establish academic, cultural, and research exchange programs.

SPAIN COMPANY OBTAINS FIRST CONTRACT TO MANAGE AN AIRPORT IN CUBA- Madrid, Spain-based Aeropuertos Espanoles y Navegacion Aeria (AENA) and Republic of Cuba government-operated Instituto de Aeronautica Civil de Cuba (IACC) signed an agreement whereby AENA will manage for seven years the Cayo Coco International Airport, currently under construction on Cayo Coco, the central islet of a chain of islets known as King’s Gardens, 450 kilometers to 550 kilometers east of the city of Havana.  Cayo Coco International Airport will be the first airport within the Republic of Cuba to be managed by a non-Republic of Cuba government-operated company.    The agreement included a US$21 million loan issued by Cataluna, Spain-based Banco de Sabadell to complete construction of the Cayo Coco International Airport.  Repayment of the loan will reportedly be made, in part, from revenues from airport operations and from a portion of the US$20.00 departure tax currently levied on passengers departing the Republic of Cuba.  AENA currently has a contract to develop U.S. Dollar retail stores and other U.S. Dollar-generating operations the Jose Marti International Airport in Havana.  AENA manages forty-three airports in Spain, as well as, airports in Mexico and Colombia.

PDVSA, BURMAH CASTROL, AND CUPET OIL REFINERY AGREEMENT NEARING COMPLETION- H.E. Hugo Chavez, President of Venezuela, announced that the Republic of Cuba would be included in the San Jose Pact with Mexico, or Venezuela would unilaterally extend San Jose Pact benefits to the Republic of Cuba.  The San Jose Pact is a bilateral program between Venezuela and Mexico whereby both countries provide long-term credits (as much as 20% of the price of a barrel of oil) to 11 countries (Central American countries and Caribbean Sea-area countries) when oil prices exceed US$14.00 per barrel.  Mr. Hector Ciavaldini, President of Venezuelan government-operated Petroleos de Venezuela (PDVSA), accompanied President Chavez to the Republic of Cuba and toured the Cienfuegos Oil Refinery, 250 kilometers southeast of the city of Havana.  Mr. Ciavaldini reported that PDVSA, Republic of Cuba government-operated CubaPetroleo (CUPET), and Swindon, Wiltshire, United Kingdom-based Burmah Castrol PLC, would invest more than US$100 million to renovate and operate the refinery in 2001.  The Cienfeugos Oil Refinery is expected to produce gasoline, diesel fuel, jet fuel, and lubricants for the Republic of Cuba market and export to Caribbean Sea-area countries.  Mr. Ciappalini said that the Cienfeugos Oil Refinery would process approximately 60,000 barrels of oil per day (approximately the capacity of the refinery) of oil imported from Venezuela.  The Cienfeugos Oil Refinery, which has never been operational, has an estimated capacity of 3 million tons of oil (21 million barrels).  The Cienfeugos Oil Refinery was under construction in 1991 when the former U.S.S.R. collapsed.  Mr. Ciavaldini reported that the oil market within the Republic of Cuba increased by 25% in 1999.  London, United Kingdom-based BP Amoco p.l.c. (1999 revenues US$101 billion) is purchasing Burmah Castrol PLC (1999 revenues approximately US$4.7 billion) for approximately US$5.37 billion.  Currently, BP Amoco p.l.c. is finalizing the purchase of Los Angeles, California-based Atlantic Richfield Company (1999 revenues approximately US$10 billion) for approximately US$34 billion.  Both BP Amoco p.l.c. and Burmah Castrol PLC have substantial commercial operations within the United States.  Republic of Cuba government-operated Cubalub, a subsidiary of the Ministry of Basic Industry of the Republic of Cuba, reported that non-Republic of Cuba-based companies (primarily Burmah Castrol PLC) would sell 12,000 tons of lubricants and other petroleum-based products within the Republic of Cuba in 1999.  Burmah Castrol PLC, through a subsidiary in The Netherlands, has a joint venture with Cubalub to use excess Republic of Cuba refining capacity to process lubricants for sale within the Republic of Cuba and to Caribbean Sea-area countries.  Burmah Castrol PLC has 11% of the global vehicle oil market.

FIVE HYDRO-ELECTRIC PLANTS PURCHASED FROM CHINA- Mr. Jorge Luis Aspiolea, President of the Republic of Cuba government-operated National Hydraulic Resources Center of the Republic of Cuba, has signed an agreement with Beijing, People’s Republic of China-based government-operated based Electric Equipment Corporation (a subsidiary of People’s Republic of China government-operated China Machinery Group) for the purchase of five small hydro-electric plants. Three similar plants are under construction within the Republic of Cuba, financed with a US$10 million credit (which includes technical assistance) from the government of the People’s Republic of China.

SPAIN’S ROTECNA S.A. EXPORTING HOG FARM EQUIPMENT AND TECHNIQUES TO CUBA- Agramunt, Spain-based Rotecna S.A. (1999 revenues of approximately US$13 million), a manufacturer of equipment and developer of techniques used in hog production, has leased and sold hog farm equipment (feeding, drinking, flooring, and penning) and techniques to Republic of Cuba government-operated El Centro Integral Porcino de Palmira.  Rotecna S.A. has exported equipment and techniques to the Republic of Cuba for two years, and, according to the company, the Republic of Cuba is a “most important market.”  The company has a presence within the United States, with a sales office, Rotecna USA, located in Des Moines, Iowa.  Approximately 28% of hog breeding within the United States is located in Iowa.  Before equipment and techniques from Rotecna S.A. were used within the Republic of Cuba, El Centro Integral Porcino de Palmira reported that 50% of newborn piglets did not survive; currently more than 98% of newborn piglets survive. New feed methods introduced by Rotecna S.A. have decreased from 4.5 kilograms of pig feed to 3.9 kilograms of pig feed required for each 1 kilogram of meat produced.  El Centro Integral Porcino de Palmira provides meat for use within the tourism sector of the Republic of Cuba, and provides financing and inputs for all hog production facilities within the Republic of Cuba.

INDONESIA PROHIBITS PIG IMPORTS FROM CUBA- The government of Indonesia reported that the Republic of Cuba was among 28 countries (including the United States) prohibited from exporting pigs to Indonesia because the Republic of Cuba had not been declared safe from epidemic animal disease by the World Animal Health Organization.

CHINA DONATES US$2.4 MILLION TO PURCHASE PHARMACEUTICAL INPUTS- H.E. Long Youngtu, Deputy Minister of Foreign Trade and Economic Cooperation of the People’s Republic of China, presented a US$2.4 million donation from the government of the People’s Republic of China to the government of the Republic of Cuba for the purchase raw materials for the pharmaceutical industry within the Republic of Cuba.  Unknown is whether the pharmaceutical inputs need be purchased from People’s Republic of China government-operated companies.

VIETNAM HAS NEW CONTRACTS FOR RICE EXPORTS TO CUBA- Republic of Vietnam government-operated Northern Food Corporation (Vinafood 1) signed a contract on 9 April 2000 with Republic of Cuba government-operated Alimport (under the auspice of the Ministry of Foreign Trade of the Republic of Cuba) for the sale of an additional 50,000 tons of 25% broken rice in 2000, and 200,000 tons of 25% broken rice in 2001.  The two companies already had a contract for the sale of 150,000 tons of 25% broken rice for 2000, equal to their contract in 1999.  Prices will reportedly be established on a monthly basis.  As a result, perhaps Thailand may not sell the Republic of Cuba 150,000 tons of 25% broken rice in 2000, as it appears the Republic of Cuba will obtain required quantities of rice from its two regular suppliers, Vietnam and the People’s Republic of China (which has exported 15,000 tons of rice per month to the Republic of Cuba thus far in 2000).  In February 2000, the government of Thailand reported that 150,000 tons (at a then reported price of approximately US$225.00 per ton) of 25% broken rice would be sold to Alimport with payment terms of 365 days, although all of the rice was expected to be delivered to the Republic of Cuba by the end of 2000.  Under the agreement, expected to have been concluded in March 2000, Alimport was to receive 15,000 tons of rice to 20,000 tons of rice each month.  The government of Vietnam reported that 151,345 tons of rice was exported to the Republic of Cuba in 1999.  The government of the People’s Republic of China reported that 226,933 tons of rice was exported to the Republic of Cuba in 1999.  The Republic of Cuba is expected to import between 300,000 tons of rice and 400,000 tons of rice in 2000.  Thailand 25% broken rice was priced at approximately US$175.00 per ton to US$185.00 per ton last week.  Vietnam 25% broken rice was priced at approximately US$157.00 per ton to US$158.00 per ton last week.  Mr. Pedro Alvarez, Director of Alimport, reported that the company imported approximately 350,000 tons of rice in 1998, primarily from Vietnam and the People's Republic of China.  Total Republic of Cuba rice production, including private farmers and Republic of Cuba government-operated cooperatives, was approximately 275,000 tons in 1999, 207,200 tons in 1998, and 329,900 tons in 1997.  Republic of Cuba nationals consume approximately 600,000 tons of rice on an annual basis.

COFFEE EXPORT UPDATE- The International Coffee Organization (ICO) reported that total March 1999 through February 2000 Republic of Cuba coffee exports were reported as 89,133 sixty-kilogram bags (5,347,980 Kilograms) compared to 140,831 sixty-kilogram bags (8,449,860 kilograms) for the period March 1998 through February 1999.  The ICO reported that coffee exports from the Republic of Cuba in February 1999 were 12,931 sixty-kilogram bags (775,860 kilograms), compared to 7,187 sixty-kilogram bags (431,220 kilograms) in February 1998.

2000 UNITED KINGDOM COFFEE IMPORTS FROM CUBA- The government of the United Kingdom reported the following quantities of un-roasted coffee imported from the Republic of Cuba during the period January 2000 and February 2000.
 

February 2000	January 1999 to December 1999
-0-	18 Tons
January 2000	January 1998 to December 1998
18 Tons	108 Tons

UNITED KINGDOM WHEAT EXPORTS TO CUBA- London, United Kingdom-based government of the United Kingdom-operated Home-Grown Cereals Authority has reported that 77,604 tons of wheat was exported from the United Kingdom to the Republic of Cuba during the period July 1999 through March 2000.

QUARTERLY TOURIST ARRIVALS DECREASE APPROXIMATELY 17% COMPARED TO 1999- H.E. Ibrahim Ferradaz, Minister of Tourism of the Republic of Cuba, reported that January 2000 through March 2000 tourist arrivals increased 2% to 3% from the same period reported in 1999.  However, the reported increase was actually an approximately 17% decrease from tourist arrivals reported during the same period in 1999.  The average annual increase in tourism arrivals during the first three months of each year, during each of the last five years, has been approximately 20%.  Gross tourism revenues for the period January 2000 through March 2000 were reported to be similar to those during the same period in 1999.  The Ministry of Tourism had previously projected tourist arrivals for 2000 at approximately 2 million, compared with 1.62 million in 1999, which had previously been projected to be approximately 1.8 million.  Year 2000 tourist arrivals are likely to be approximately 1.8 million.  Reportedly, some of the problems within the tourism sector within the Republic of Cuba are a result of 1) higher oil prices are increasing airfares and 2) lower repeat visits due to poor service, lack of available activities outside of resort areas, and the high cost of what activities are available outside of resort areas.  As the government of the Republic of Cuba uses projected tourism revenues to guarantee some financial credits, decreasing increases in annual tourist arrivals may have a negative multiplier effect on other sectors of the economy within the Republic of Cuba.  Gross revenues from tourism were reported as US$1.3 billion in 1999, US$1 billion in 1998, and US$800 million in 1997.  Costs per U.S. Dollar earned were reported as US$.75 in 1999 (planned as US$.67) compared to US$.71 in 1998.

NICKEL EXPORT REVENUES IN 2000 MAY PROVIDE CRITICAL FINANCIAL BENEFIT- H.E. Francisco Soberon, Minister-President of the Central Bank of the Republic of Cuba, reported that nickel plus cobalt production was expected to be 74,000 tons in 2000.  He said that nickel plus cobalt exports were expected to ease the financial difficulties resulting from continuing low international sugar prices, continuing high international oil prices, and, although not specifically stated, decreasing net revenues from tourism.  The Republic of Cuba exports 100% of its nickel plus cobalt production for refining.  There are three nickel plus cobalt mining/processing facilities within the Republic of Cuba, one a joint venture with Toronto, Canada-based Sherritt International Corporation.  The three nickel plus cobalt mining/processing facilities have received approximately US$300 million in combined investment during the last five years.  The three nickel plus cobalt mining/processing facilities have a total capacity of approximately 80,000 tons.  Year 2000 gross revenues from exports of nickel plus cobalt are expected to between US$600 million and US$700 million, which would place nickel plus cobalt as the largest gross U.S. Dollar-earning export of the Republic of Cuba and the second-largest gross U.S. Dollar revenue source after tourism (53% of gross U.S. Dollar earnings in 1999).

JANUARY 2000 UNITED STATES EXPORTS TO CUBA- The Foreign Trade Division of the United States Bureau of the Census of the United States Department of Commerce in Washington, D.C., reported that the value of United States exports (defined as products exiting the borders of the United States whether sold or donated) to the Republic of Cuba in January 2000 was US$708,796.00.  The total value of reported United States exports to the Republic of Cuba in 1999 was US$4,662,014.00.  The reported values are on an F.A.S. (Free Along Side Ship) basis- the cost of freight is excluded:
 

HS Code	Description	District	January 2000 Value  In US$	Year-To-Date  Value in US$
9802400000	Articles Donated For Relief or Charity, NESOI (Not Elsewhere Specified Or Indicated)	San Juan, Puerto Rico	25,000.00	25,000.00
9802400000	Articles Donated For Relief or Charity, NESOI (Not Elsewhere Specified Or Indicated)	Miami, FL	683,796.00	683,796.00
TOTAL US$			US$708,796.00	US$683,796.00

Mr. John S. Kavulich II, President of the U.S.-Cuba Trade and Economic Council, has accepted an invitation from Washington, D.C.-based The American Chamber of Commerce of Cuba in the United States, Inc. (AmCham Cuba) to give a presentation on “Cuba Today From A U.S. Business Perspective” on Tuesday, 16 May 2000, at 12:00 p.m. at the National Press Club in Washington, D.C.  Mr. Peter W. Nathan, President of Westport, Connecticut-based PWN Exhibicon International L.L.C., the company that organized the U.S. Healthcare Exhibition held in Havana, Republic of Cuba, in January 2000, will give a presentation about genesis of the U.S. Healthcare Exhibition.  PWN Exhibicon International L.L.C. is a member of the U.S.-Cuba Trade and Economic Council.  For information, please contact Ms. Phoebe Lansdale at telephone (202) 833-3648; Facsimile telephone (202) 358-3549; or E-mail: amchamcuba@aol.com