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 21 Pesos since 16 April 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
21	21	16 April 2000 to 14 May 2000
20	21	27 January 2000 to 15 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
21	20	13 January 1999 to 18 February 1999

GTE TO OPERATE TELEPHONE SERVICE BETWEEN DOMINICAN REPUBLIC AND CUBA- The Washington, D.C.-based Federal Communications Commission (FCC) has authorized a subsidiary of Irving, Texas-based GTE Corporation (1999 revenues exceeding US$25 billion) to provide “international message telephone service between the United States and [the Republic of] Cuba by transiting the Dominican Republic.”  GTE Corporation and New York City, New York-based Bell Atlantic Corporation (1999 revenues exceeding US$31 billion) are seeking authorization from the FCC for a merger of the companies.  Recently, Bell Atlantic Corporation announced a decrease in some long distance telephone rates from the United States to the Republic of Cuba.  According to a media release by the company, the Bell Atlantic International Savings Plan “will reduce international calling rates by 40% to the 33 most often-called” countries and “New York is the gateway to world, making international calling a regular occurrence for many of our long distance customers.”  The FCC granted the authorization to CODETEL International Communications Incorporated (CIC), which is identified as a Delaware-based corporation.  CIC plans to offer the service to the Republic of Cuba through the facilities of Santo Domingo, Dominican Republic-based Compania Dominicana de Telefonos (CODETEL), an authorized carrier in the Dominican Republic with which CIC is affiliated.  CODETEL is a wholly-owned subsidiary of GTE Corporation.  CIC first contacted the United States Department of State in 1995 to obtain an opinion should a formal request be made to the FCC.  The formal request was made to the FCC in 2000 [See Page 9].  During the last several years, the United States Department of State has implemented a policy designed to increase “people-to-people” contact between the citizens of the United States and the citizens of the Republic of Cuba.  The authorization by the FCC of the request by CODETEL is, according to a senior-level official within The White House, consistent with this policy.  The FCC (at the direction of the United States Department of State) has not authorized an increase in undersea cable links between the United States and the Republic of Cuba.  The one existing undersea copper cable link lies from the State of Florida to the Republic of Cuba.  The one existing undersea copper cable link, which has 120 circuits and is approximately forty years old, is owned by New York City, New York-based AT&T (1999 revenues exceeding US$53 billion). The FCC has authorized an increase in the number of available circuits (using satellites) as requested by United States-based telecommunications companies.  There are now 1,020 direct dial circuits (undersea and satellite) between the United States and the Republic of Cuba.  CODETEL will be able to provide additional circuits to their customers within the United States who use the services of GTE Corporation and, eventually, Bell Atlantic Corporation.  Empresa de Telecomunicaciones de Cuba S.A. (ETECSA) is 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.  ETECSA has direct dial telephone service agreements with New York City, New York-based AT&T Corporation; San Juan, Puerto Rico-based AT&T de Puerto Rico; Miami, Florida-based IDB WorldCom Services, Inc.; MCI International; Telefonica Large Distancia de Puerto Rico, Inc. (TLDI); Worldcom, Inc.; Kansas City, Kansas-based Sprint Communications Company, L.P.; and Tulsa, Oklahoma-based Wiltel.  Sprint Communications Company is a provider of ETECSA’s Internet access with the United States.  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 US$86,009,863.00 in 1998 as its share of the revenues generated from United States-origin telephone calls, which average in cost from approximately US$.60 to approximately US$3.00 per minute.  ETECSA has not chosen to establish direct dial long distance telephone service agreements with companies other than the existing United States-based telecommunications companies, although other companies have sought agreements with ETECSA.  The FCC will not have global statistics for 1999 available until October 2000, although ETECSA will have received approximately the same total value in payments, directly and indirectly, in 1999 from United States-based telecommunications companies as in 1998.
 

1998 Telephone Traffic Billed In The United States For Telephone Calls To The Republic Of Cuba

Number of Messages	Number of Minutes	U.S. Carrier Revenue	Payout to Foreign Carriers	Retained Revenue
16,689,430	141,761,485	US$127,996,214.00	US$86,009,863.00	US$41,986,351.00

1998 Traffic Billed In Foreign Countries: Originating Or Terminating In The United States

Number of Messages	Number of Minutes	Receipts From Foreign Carriers
359,930	1,206,937	US$719,931.00

1998 Traffic Billed In Foreign Countries: Transiting The United States (By Country Of Origin)

Receipts From Foreign Carriers	Payout To Foreign Carriers	Retained Revenue	Total U.S. Carrier Retained Revenue
US$1,937,042.00	US$846,846.00	US$290,196.00	US$42,996,478.00

1998 Telephone Traffic Billed In The United States For Telephone Calls

Country	Population	Number Of Messages	Number Of Minutes
Cuba	11,184,919	16,689,430	141,761,485.00
Dominican Republic	8,389,231	64,137,351	439,057,321.00
Haiti	8,104,678	15,603,673	99,986,280.00
Jamaica	2,652,443	47,945,294	291,487,463.00
El Salvador	6,174,958	19,490,049	198,892,640.00
Canada	31,006,347	842,606,850	3,881,035,995.00
Mexico	100,294,036	425,925,969	3,020,570,877.00

FCC CONTINUES TO AUTHORIZE TELECOMMUNICATIONS SERVICE UPGRADES TO CUBA- The Washington, D.C.-based Federal Communications Commission (FCC) continues to authorize United States-based companies to upgrade the quality of long distance telephone services being provided between the United States and the Republic of Cuba.
 

In May 1999, the FCC authorized Sprint Communications Company L.P. to acquire and operate additional satellite facilities for provision of service between the United States and Cuba.  The partial text of the FCC authorization follows: 1) Pursuant to Section 214 of the Communications Act of 1934, as amended, to lease and operate one additional 2 Mbps (E-1) digital satellite circuit between the United States and Cuba.  Sprint is currently authorized by the Commission to provide service directly to Cuba.  2) The application was placed on public notice on March 31, 1999.  No opposing comments were received.  We find that the present and future public convenience and necessity require a grant of the application.  3) Sprint is authorized to lease and operate one additional 2 Mbps digital satellite circuit between the United States and Cuba via an INTELSAT AOR satellite.

In May 1999, the FCC authorized Sprint Communications Company L.P. to lease and to operate one additional 2 Mbps (E-1) digital satellite circuit (which increases overall capacity, especially for data) between the United States and the Republic of Cuba via an INTELSAT AOR satellite.

In January 1999, the FCC authorized Sprint Communications Company, L.P. to upgrade an existing private line circuit (which increases the capacity of the line and, thus, the number of conversations) between the United States and the Republic of Cuba from 64 kbps to 256 kbps.

Recently, Sprint Communications Company, L.P. requested another authorization from the FCC to upgrade an existing private line circuit between the United States and the Republic of Cuba.  The upgrade increases the capacity of the line and, thus, the number of conversations.

In March 1996, the FCC authorized AT&T Corp. to (1) lease from Comsat and to operate 30 64-kbps satellite circuits between appropriately licensed United States earth stations and an appropriate INTELSAT satellite over the Atlantic Ocean, connecting with similar circuits between the satellite and an earth station in the Republic of Cuba, furnished by AT&T Corp.’s correspondent and (2) multiplex the circuits authorized in (1) through the use of Digital Circuit Multiplex Equipment, to derive up to 120 circuits from the 30 circuits authorized.

Some of the at least six regional sea-bed fiber-optic telecommunications cables being installed or planned to be installed from 1999 through 2001 outside of the 12-mile territorial waters of the Republic of Cuba, contain a short “stub” which will permit connection to the Republic of Cuba when permitted by the FCC.

ETECSA PERMITTING DIRECT DIAL RESIDENCE TELEPHONE SERVICE FOR SOME CUBA NATIONALS- 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, has authorized Republic of Cuba national to have direct dial international residential service, including telephone calls to the United States.  The direct dial international residential service is only available in residences where telephone lines have been upgraded from analog to digital, which thus far reportedly includes approximately 150,000 telephone lines out of a reported total of approximately 400,000 telephone lines within the Republic of Cuba.  At this time, only six-digit telephone numbers beginning with 20, 22, 23, 24, 81, 97, 98, and 65 in the city of Havana are available for the direct dial international residential service.  A deposit of at least US$25.00 is required and, at present, monthly long distance telephone bills may not exceed US$100.00.  Reportedly, the decision by ETECSA is based, in part, on a desire to obtain additional revenues from telephone calls made by Republic of Cuba nationals to the United States, which are now approximately 90% in the form of collect calls, of which ETECSA receives less revenue than from a direct dial telephone call.  In addition, with some Republic of Cuba nationals having computers in their residences, access, although expensive, to the Internet may increase.  Some Republic of Cuba nationals have created Internet servers for which they provide (for a monthly fee payable in U.S. Dollars) e-mail and Internet access to other Republic of Cuba nationals.
 

Calling Area	U.S. Dollar Rate Per Minute  (Republic of Cuba National Residence)	U.S. Dollar Rate Per Minute  (Non-Republic of Cuba National Residence)
United States And Canada	US$2.00	US$2.45
Central America, Caribbean, And Mexico	US$2.60	US$3.40
South America	US$3.40	US$4.45
Asia, Africa, Middle East, Europe	US$4.40	US$5.85

During the last six years, ETECSA has placed into operation fifty digital switching stations and a countrywide microwave digital switching system.  In July 1998, H.E. Dr. Carlos Lage, a Vice President of the Council of State and Executive Secretary of the Council of Ministers of the Republic of Cuba, reported that US$900 million would be invested through the year 2004 to upgrade telecommunications within the Republic of Cuba, specifically focusing upon: 1) digitalization of the telecommunications system in all major cities within the Republic of Cuba 2) increase in the number of telephones per resident from 3 units per 100 citizens to 9 units per 100 citizens and 3) the installation of 50,000 public telephones.

BELLSOUTH EARNS REVENUE FROM TELEPHONE CALLS TO CUBA FROM 19 COUNTRIES- Atlanta, Georgia-based BellSouth Corporation (1999 revenues exceeded US$25 billion) provides “telecommunications, wireless communications, cable and digital TV, directory advertising and publishing, and Internet and day services” to customers in 19 countries.  BellSouth Corporation receives revenues from wholly-owned subsidiaries, partially-owned companies, or affiliated companies in countries including Argentina, Brazil, Chile, Germany, India, Israel, Panama, Peru, and Venezuela, when individuals place telephone calls to the Republic of Cuba or receive telephone calls from the Republic of Cuba.  Chile BellSouth (which is 100%-owned by BellSouth Corporation) advertises rates for telephone services between Chile and the Republic of Cuba.  The OFAC authorizes companies subject to United States law to have non-controlling investments in third country companies that have commercial activities within the Republic of Cuba provided that the investments do not result in control in fact of the third country company and provided that a majority of the revenues of the third country company are not produced from commercial activities within the Republic of Cuba [OFAC 4 March 1994].  Members of the Board of Directors of BellSouth Corporation include Mr. Leo F. Mullin, President and Chief Executive Officer, of Atlanta, Georgia-based Delta Air Lines, Inc. (1999 revenues exceeded US$14 billion).  Since 1962, Delta Air Lines has had route authorities between the United States and the Republic of Cuba from the following cities: Havana to Houston, Los Angeles, New Orleans, San Francisco, and San Juan.  Caracas, Venezuela-based Aeropostal-Alas de Venezuela (ALAS), which services the Republic of Cuba, has a code-sharing agreement with Delta Air Lines.  In the 6 April 1998 issue of the Atlanta Business Chronicle, Mr. E. Todd Clay, a spokesperson for Delta Air Lines, said that when commercial service to the Republic of Cuba is re-authorized, the company will “like other Caribbean and Latin American countries, . . . look at the opportunities there.”

HSBC REPUBLIC EXECUTIVE MENTIONS CUBA- Mr. Clive Bannister, Chief Executive Officer of Group Private Banking at London, United Kingdom-based HSBC Republic (a subsidiary of London, United Kingdom-based HSBC Holding plc) said that “there will be tremendous opportunities in Cuba” during a discussion of global marketing strategies.  HSBC Republic manages US$140 billion in assets for 60,000 clients.  Recently, HSBC Holdings plc purchased New York City, New York-based Republic New York Corporation (1999 assets exceeded US$50 billion).

CANADA COMPANY PLANNING US$600 MILLION TOURISM JOINT VENTURE-  Montreal, Canada-based Thibault, Messier, Savard and Associates Inc. (TMS), a real estate development company, reported that the company has commenced a feasibility study subsequent to the establishment of a joint venture to develop a 9,000-room resort valued at US$600 million at Paredon Grande, a yet-to-be developed key (connected to Jardines del Rey, known as King’s Gardens, archipelago, 400 kilometers to 600 kilometers east of the city of Havana along the Republic of Cuba’s central-northern coast).  The joint venture (presumably on a 50%-50% basis), Paredon Grande, is between TMS and Republic of Cuba government-operated Cubanacan S.A.  TMS already has one joint venture, El Senador, with Cubanacan, a project valued at US$56 million which is reportedly 60% completed, that includes two hotels (with a combined 762 rooms), 11 restaurants, and other entertainment facilities on Cayo Coco, the central key of Jardines del Rey.

NEW PORT FACILITY ON CAYO COCO EXPECTED TO REDUCE CARGO COSTS BY 39%- In April 2000, Republic of Cuba government-operated Asociacion Portuaria inaugurated a new US$3 million port at Kasas on Cayo Coco, the central key of Jardines del Rey (known as King’s Gardens) archipelago, 400 kilometers to 600 kilometers east of the city of Havana along the Republic of Cuba’s central-northern coast.  The new port is the largest off the main island, and will handle barge and passenger traffic. The port of Kasas has a capacity of 1,200 tons of cargo per day, and can accommodate vessels with a capacity of 300 passengers.  Before the port of Kasas was operational, all heavy equipment, construction materials, and supplies were transported to Cayo Coco via causeway.  According to Mr. Aldo Ortiz, Director of the port of Kasas, transporting one ton of cargo by causeway is approximately US$68.00, while transporting one ton of cargo by sea is US$27.00.  He said that 7% of construction budgets for properties on Cayo Coco were transportation costs, and that the amount would be reduced to 3% when transportation cargo by sea.

COLOMBIA COMPANY EXPORTING INFLUENZA VACCINE TO CUBA- Mr. Miguel Galindo, Director of the Vaccination Program of the Ministry of Public Health of the Republic of Cuba, reported that Haemophilus Influenzae bacteria, the cause of some forms of meningitis, pneumonia, and other serious ailments, would be eliminated within the Republic of Cuba by 2003. Colombia based-Laboratorios Biotoscana has been exporting an Influenza vaccine to the Republic of Cuba for more than one year.  All Republic of Cuba nationals up to two years of age have been vaccinated.  In December 1998, the Ministry of Health of the Republic of Cuba reported that it had purchased an unspecified quantity of Haemophilus Influenzae vaccine valued at US$2.5 million from an unnamed Italy-based pharmaceutical company.  The vaccine was to be administered to children up to 18 months of age.  An average of 139 cases per year of Haemophilus Influenzae have been reported in the Republic of Cuba since 1994.  In December 1998, the Ministry of Public Health of the Republic of Cuba reported that a Republic of Cuba-produced vaccine for Haemophilus Influenzae was expected to be available in 2000.  Mr. Galindo reported that the vaccine would soon begin clinical trials. In October 1999, H.E. Gilberto Rodriguez Ochoa, Minister of Health and Social Development of Venezuela, reported that the government of Venezuela would purchase approximately 1 million doses of Republic of Cuba-produced Influenza vaccine.

FINANCE MINISTER OF PEOPLE’S REPUBLIC OF CHINA VISITS CUBA- H.E. Xiang Huaicheng, Minister of Finance of the People’s Republic of China, is visiting the Republic of Cuba from 10 May 2000 to 13 May 2000.  The government of the People’s Republic of China provides the government of the Republic of Cuba with trade credits for imports, loans, and grants (food, healthcare, and education).  People’s Republic of China government-operated companies are participating in joint ventures and economic associations in the areas of telecommunications, agriculture, tourism, pharmaceuticals, and light industry.

TOBACCO HARVEST 12% LOWER THAN ORIGINALLY REPORTED- The 2000 tobacco harvest (January to May) may be below the 1999 tobacco harvest of 40,000 tons.  This information contradicts April 2000 statements by Mr. Eduardo Rodriguez, Deputy Production Director of Republic of Cuba government-operated Union de Empresas del Tobacco, who reported that the 2000 tobacco harvest would be 45,000 tons, an increase of 12% from the 1999 tobacco harvest of 40,000 tons.  He said that 26,250 tons, or more than 60% of the total tobacco harvest, would be from Pinar del Rio Province (150 kilometers west of the city of Havana), where the highest quality tobacco is grown.  The 2000 tobacco harvest from Pinar del Rio Province is the highest reported in ten years.  [However, Granma, the daily newspaper of the Communist Party of the Republic of Cuba, had reported that the total tobacco harvest would be 53.2 million tons].  Mr. Rodriguez had also said that tobacco wrapper leaf production was above expectations and that cigar exports could reach 170 million units in 2000, compared with 160 million units expected, and 148 million cigars (128 million hand-rolled) exported in 1999.  Mini-cigar exports and cigarette exports were also expected to increase in 2000.  Pinar del Rio Province has reportedly achieved its minimum plan of 26,250 tons.  However, drought in the central portion and eastern portion of the Republic of Cuba has reduced the tobacco harvest from an expected 20,000 tons to 10,000 tons to 15,000 tons.  The National Weather Institute of the Republic of Cuba reported that rainfall throughout the Republic of Cuba for the period December 1999 through March 2000 was 80% below average, and more than 80% below average in the central portion and eastern portion of the Republic of Cuba.  Portions of the Republic of Cuba received rainfall in late April 2000.  Approximately 20% of farmland within the Republic of Cuba is irrigated. Unit production of cigars for export in 2000 is unlikely to increase above the 148 million units produced in 1999, and plans to export up to 20 million mini-cigars will be reduced, while plans to increase cigarette exports by 100% may be achieved by importing tobacco.  Gross revenues from tobacco and cigar sales were approximately US$280 million in 1999.  Madrid, Spain-based Altadis has a 50% interest in Republic of Cuba government-operated Habanos S.A., the exclusive distributor of Republic of Cuba-produced cigars.  BrasCuba, a 50%-50% joint venture between Rio de Janeiro, Brazil-based Souza Cruz (a subsidiary of London, United Kingdom-based British American Tobacco plc.) and Republic of Cuba government-operated Union de Empresas del Tobacco, controls the production and sale of all cigarettes for export.

APRIL 2000 MONTHLY FOOD PRICE REPORT- The following is the monthly free-market price check for the cities of Havana, Camaguey (500 kilometers east of Havana), and Santiago de Cuba (850 kilometers east of Havana) which compares end of April 2000 prices with end of April 1999 prices.  The government of the Republic of Cuba manages food markets were prices are established by the government of the Republic of Cuba.  The government of the Republic of Cuba has a stated policy of seeking to increase the supply and quality of products sold at Republic of Cuba government-operated food markets with a goal of having prices lower than at Republic of Cuba government-operated food markets (“farmers markets”) where prices are established by Republic of Cuba national sellers within ranges established by the government of the Republic of Cuba.  The government of the Republic of Cuba has reported that the average monthly wage is approximately 223 Pesos (versus 217 Pesos in January 1999, 214 Pesos in 1998, and 203 Pesos in 1997).  [The government of the Republic of Cuba reported in December 1999 that the average monthly wage in 1999 increased to 223 Pesos from 211 Pesos in 1998 (although the government of the Republic of Cuba had previously reported that the average monthly wage in 1999 was approximately 230 Pesos and that the average monthly wage in 1998 was 217 Pesos)].  In 1999, the government of the Republic of Cuba reported that the number of Republic of Cuba nationals receiving U.S. Dollar bonuses or U.S. Dollar-based bonuses was 1,796,000 (out of a total reported workforce of 4,500,000) and that the total value of the bonuses (U.S. Dollar bonuses and U.S. Dollar-based bonuses), reported to be equal to 1 to 7 times the average monthly wage, was US$52.3 million, an increase of 18.9% from 1998.  In July 1998, the Ministry of Finances and Prices of the Republic of Cuba reported that 1,100,000 Republic of Cuba nationals (out of a workforce of approximately 4,500,000), or 24%, were receiving U.S. Dollar or U.S. Dollar-related bonuses equal to 1 to 7 times their monthly wage.  In July 1997, approximately 1,300,000 workers (out of a then reported workforce of approximately 4,200,000), or 30%, were reported to have received U.S. Dollar or U.S. Dollar-related bonuses equal to 1 to 7 times their monthly wage.  The government of the Republic of Cuba reported in December 1999 that access to U.S. Dollars increased to 62% in 1999, compared to 56.3% in 1998, and 49.5% in 1997.  [Republic of Cuba-based economists and non-Republic of Cuba-based economists believe that the percentage of Republic of Cuba nationals with continuing access to U.S. Dollars in 1999 was 27% to 35%].  The percentage with access to U.S. Dollars is highest in the city of Havana (population 2.4 million) where approximately 20% of the island’s 11 million citizens reside.  All Cubans receive a limited subsidized monthly food ration (which generally provides nutrition for approximately two weeks), free health care and education, and pay no more than 10% of their wage for housing.  Workers, with the exception of the self-employed all receive various forms of social security coverage.  KEY: LB- per pound.  U- Per unit.  #- End of April 2000 price.  (  )- End of April 1999 price.  NA- not available.  SSB-soda-sized bottle. S- Soft. H- Hard. B- Bunch.  All prices are in Cuban Pesos.
 

Food Product	Havana	Camaguey	Santiago de Cuba
Rice (LB)	5 (4-5)	4 (4.5-5)	5 (5-6)
Black Beans (LB)	8 (8)	6 (8)	10 (9)
Pork (LB)	25 (25)	16 (15)	15 (15)
Cooking Fat (LB)	15 (20)	15 (16)	14 (15)
Lamb (LB)	25 (25)	14 (14)	15 (14)
Ham (LB) boned	35 (37)	29 (29)	NA (NA)
Garlic (U)	1 (1-2)	.80-1 (.50-1)	.50-1 (1-2)
Onion (LB)	3-6 (3-4)	2 (2)	3 (3)
Tomato (LB)	4-10 (3)	2 (2)	2 (3)
Lettuce (B)	3 (4)	1 (2 small)	1 (2 small)
Cabbage (U)	5 (4)	3 (3)	1 (3)
Cucumber (LB)	1-2 (2)	3 (2)	1 (1.2)
Carrots (LB)	2 (3)	1.5 (1.5)	2 (3)
Malanga (LB)	3-4 (3-4)	3 (3)	3.5 (3)
Yucca (LB)	2 (1.5)	1 (1)	1 (1)
Sweet Potato (LB)	1.5 (1.5)	1.5 (1.5)	1 (1.5)
Squash (LB)	2 (2)	1 (2)	1.5 (1.5)
Tomato Sauce (BSB)	10 (10)	8 (8)	10 (8)
Limes (U)	.50-1 (.50-1)	.20 (.20)	.12 (.10)
Oranges (U)	.50-1 (.50-1)	.20 (.20)	.33 (.25)
Tangerines (U)	.50 (.50)	.25 (NA)	.25 (NA)
Grapefruit (U)	1 (1)	NA (NA)	NA (.50)
Pineapple (U)	6-15 (6-10)	NA (4-6)	8-15 (5-10)
Papaya (LB)	4 (4)	1.5 (1.5)	1 (1)
Banana (U) Fruit	.50-1 (.50-1)	.50 (.60)	.50 (.50)
Banana (U) Soft Cooking	2-4 (2-4)	1.5-3 (1.5-2)	1-2 (1.5-2)
Banana (U) Hard Cooking	.33 (.50-1)	.20 (.25)	.25 (.15)
String Beans (B)	5 (5)	2 (3)	2 (2)
Peanuts (LB)	10 (8)	9 (15)	10 (10)
Corn Meal (LB)	8 (4)	3 (3.6)	3 (3)

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
 

In the Matter of                                                                                                )
                                                                                                                            )
CODETEL International Communications                                                    )
Incorporated                                                                                                      )

            Adopted:  April 13, 2000                                                                                                                         Released:  April 14, 2000

By the Chief, Telecommunications Division:

1. In this Order, we grant CODETEL International Communications Incorporated (“CIC”) authority, pursuant to Section 214 of the Communications Act of 1934, as amended,  and 47 C.F.R. § 63.18(e)(4), to provide international message telephone service between the United States and Cuba by transiting the Dominican Republic.

2. CIC is a Delaware corporation holding global facilities-based authority, and is regulated as dominant on the U.S.-Dominican Republic and U.S.-Venezuela routes.   On December 20, 1999, CIC filed the instant Application (“Application”) seeking Section 214 authority to provide international message telephone service between the United States and Cuba by transiting the Dominican Republic.  CIC plans to offer service to Cuba through the facilities of Compañia Dominicana de Teléfonos (CODETEL), an authorized carrier in the Dominican Republic with which CIC is affiliated within the meaning of Section 63.09(e) of the Commission’s rules.   On January 14, 2000, we placed the Application on public notice.   We received no comments or petitions to deny.

3. In a letter dated July 22, 1993,  the U.S. Department of State informed the Commission of the Executive Branch’s policy guidelines for implementation of the telecommunications provisions of the Cuban Democracy Act of 1992, which provides that “telecommunications services between the United States and Cuba shall be permitted.”   Among the policy guidelines are the following requirements:  1) the proposals must have the potential to be operational within a year; 2) settlements must not be more favorable to Cuba than the current 50/50 split of the $1.20 per minute accounting rate; 3) proposals must be limited to equipment and services necessary to deliver a signal to Cuba; 4) proposals must utilize modes of communications already in place between the U.S. and Cuba ; and 5) carriers shall report the number of circuits activated by facility on June 30 and December 31 of each year and on the one-year anniversary of the FCC authorization.

4. Upon consideration of the Application, we find that a grant of the Application will serve the public interest subject to the conditions set forth below.  The Application is consistent with the Executive Branch guidelines set forth in the Department of State letter.  CIC states that it would be able to begin carrying traffic within 30 days after authorization because the circuitry is already in place.  We therefore find that the proposal has the potential to be operational within a year.

5. CIC states that the settlement rate for the traffic to Cuba shall be $0.60 per minute delivered, the current U.S.-Cuba settlement rate, which is also the same as the rate paid by CODETEL for its Dominican Republic-Cuba traffic.  We find that the proposed settlement is no more favorable to Cuba than the current 50/50 split of the $1.20 per minute accounting rate for U.S.-Cuba traffic.

6. CIC states that the authority requested is limited to the equipment and services necessary to deliver traffic to Cuba.  CIC plans to deliver traffic to Cuba by transiting the Dominican Republic.  In a letter dated March 10, 1995, the U.S. Department of State has informed the Commission that it has no objection to the proposed transiting arrangement.   We find that CIC’s request for authority is limited to the equipment and services necessary to deliver traffic to Cuba.

7. CIC’s states that its proposed arrangement uses methods of communication already in place between the U.S. and Cuba.  Specifically, CIC will lease half circuits to the midpoint in a submarine cable owned by CODETEL to carry traffic between the U.S. and the Dominican Republic. Traffic is handed off by CIC to CODETEL at the midpoint.  For the Dominican Republic-Cuba portion, the traffic will use satellite circuits already in use for CODETEL’s traffic with Cuba.  We find that that this routing arrangement uses modes of communication that are already in place.

8. CIC agrees to report circuit usage to the Commission on June 30 and December 31 of each year and on the one-year anniversary of this authorization.

9. This authorization is subject to CIC’s obtaining all necessary licenses and authorizations from the Departments of Treasury and Commerce for the proposed business activity, as described in the Department of State letter.

B.     Dominant Carrier Safeguards

10. For each international section 214 application we must examine whether it is necessary to impose the Commission's international dominant carrier safeguards on an applicant in its provision of service on the route or routes for which the applicant seeks authorization.   CIC is not presently affiliated with any foreign carrier in Cuba and therefore will not be subject to dominant carrier safeguards on the U.S.-Cuba route at this time.

11. The Commission also considers other public interest factors that may weigh in favor of, or against, granting an international Section 214 application, including national security, law enforcement, foreign policy and trade concerns.   The Executive Branch has not raised any such concerns with this application and we know of no other countervailing public interest considerations.

12. We find that a grant of CIC’s application will serve the public interest under Section 214 of the Act, by increasing competition on the U.S.-Cuba international services route and providing more choices to U.S. consumers.

13. Accordingly, IT IS HEREBY CERTIFIED that the present and future public convenience and necessity require a grant of the above-captioned application to the extent specified in this Order.  Therefore, IT IS ORDERED that Application File No. ITC-19991220-00781 is GRANTED, and CODETEL International Communications Incorporated (“CIC”) is authorized pursuant to Section 63.18(e)(4) of the Commission’s rules, 47 C.F.R. § 63.18(e)(4), to provide international message telephone service between the United States and Cuba transiting the Dominican Republic, subject to all current and future Commission regulations, including those specifically listed below.

14. IT IS FURTHER ORDERED that CIC shall comply with the requirements specified in Sections 63.11, 63.14, 63.17, 63.19, 63.21 and 63.22 of the Commission’s rules.  47 C.F.R. §§ 63.11, 63.14, 63.17, 63.19, 63.21 and 63.22.

15. IT IS FURTHER ORDERED that the service authorized herein must be implemented within one year from the date of release of this order.

16. IT IS FURTHER ORDERED that this authorization is subject to the applicant’s obtaining all necessary licenses and authorizations from the Departments of Treasury and Commerce.

17. IT IS FURTHER ORDERED that this authorization is subject to revocation without a hearing in the event that the Department of State or the Federal Communications Commission determines that the continuation of communications between the United States and Cuba is no longer in the national interest.

18. IT IS FURTHER ORDERED that CODETEL International Communications, Inc. shall file a Section 214 application for any additional circuits it proposes to establish between the U.S. and Cuba.

19. IT IS FURTHER ORDERED that acceptance of this Authorization shall be deemed acceptance of the conditions set forth herein.

20. IT IS FURTHER ORDERED that this authorization, issued pursuant to Section 0.261 of the Commission’s Rules, is effective upon release.  Petitions for reconsideration under Section 1.106 or applications for review under Section 1.115 of the Commission’s Rules may be filed within 30 days of public notice of this order (see Section 1.13).
 
 

 FEDERAL COMMUNICATIONS COMMISSION
 
 

 Rebecca Arbogast
 Chief
 Telecommunications Division
 International Bureau