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ITEM
EXPORTS OF GOODS & SERVICES
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1995
2935.6
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1996
3834.4
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ITALY'S STET AND AT&T FORM LATIN AMERICAN VENTURE- The Italian government-controlled telecommunications company, STET, and United States-based AT&T have established a joint venture to develop the Latin American telecommunications market, expected to increase 70% during the next four years and eventually have US$35 billion in earnings. STET, the world's fifth largest telecommunications company in terms of revenues, controls 4 million fixed and 300,000 mobile phones in Latin America and the Caribbean. STET owns significant equity interests in the national telecommunications companies of the Republic of Cuba, Argentina, Bolivia, Chile, and Venezuela; is currently negotiating a major project in Brazil; and owns 25% IMPSTAT of the satellite communications company. AT&T has holdings in 15 Latin American and Caribbean countries. STET and AT&T officials said the joint venture did not include the Republic of Cuba.
DELTA AND AIR JAMAICA JOIN FORCES- Delta Airlines and Air Jamaica signed an agreement to transform the Montego Bay International Airport into one of the Caribbean's most important transfer points. Delta Airlines and Air Jamaica will also work together with Delta Airlines connections in Atlanta, Fort Lauderdale, and Cincinnati. Air Jamaica recently began three weekly flights to the city of Havana and plans to extend service to the island's second-largest city, Santiago de Cuba, 900 kilometers to the east.
CUBAN OFFICIALS ATTEND FOURTH OF JULY ACTIVITY- More than 250 diplomats, journalists, and Republic of Cuba citizens attended the United States Interests Section's annual Fourth of July gathering at the official residence of the Chief of the United States Interests Section. Republic of Cuba officials, present at the gathering for the first time since 1995, included Mr. Jose Arbesu, Director of the Department of the Americas of Communist Party of the Republic of Cuba, and Mr. Carlos Fernandez de Cossio, Director of the United States Department of the Ministry of Foreign Relations of the Republic of Cuba, among others.
TOURISM INDUSTRY UPDATE- The government of the Republic of Cuba carried out a week long inspection of the tourism industry which include 2,353 facilities and 13 audits of the most important government-operated tourism corporations. The number of tourists visiting the Republic of Cuba increased 12.2% from January 1997 through April 1997 compared to the same period in 1996. Sources reported that the planned increase was 19%. Gross earnings increased 7% due to a 6.7% decline in the average number of days that tourists visited the island. Plans to improve efficiency did not materialize with costs per U.S. Dollar earned increasing 1%. Ministry of Tourism officials demanded that industry managers and other officials reviewed other problems detected by the inspection such as poor marketing, inflexible pricing, the inability to adjust spending to lower than expected demand, and corruption. H.E. Carlos Lage Davila, Vice President of the Council of State of the Republic of Cuba, warned against the practice of hiding inefficiency by funding government-set treasury payments at the expense of paying bills and maintenance. H.E. Jose Luis Rodriguez, Minister of Economy and Planning of the Republic of Cuba reported that 1% increase in costs per U.S. Dollar earned was particularly troubling as the industry had reduced costs by 15% from 1995 through 1996. Minister Rodriguez reported that the 1% cost increase from January 1997 through April 1997 translated into a loss of US$3 million. The Ministry of Tourism of the Republic of Cuba reported that 1,004,000 tourists spent US$1.3 billion in 1996, easing somewhat a U.S. Dollar shortage and trade deficit of more than US$1.7 billion. The industry plans 1.2 million tourists in 1997, gross revenues of US$1.5 billion, and net profits of up to US$500 million. More than 2 million tourists are expected by the year 2000, producing gross revenues of US$2.5 billion.
BEER INDUSTRY RECEIVES INVESTMENT- The official daily newspaper, Granma, reported that eight beer bottling plants have been organized into the quasi-autonomous Beer Association, which was granted US$8 million to modernize equipment toward reaching 1989's production of 35 million twenty-four bottle cases of beer, compared to the 10 million cases produced in 1995. The majority of the production will be sold in Pesos as part of the government's effort to withdraw excess currency from circulation. The Beer Association is also expected to compete in the island's tourism and U.S. Dollar markets, which are dominated by canned Bucanero, Cristal, Mayabe, and Hatuey brands, produced in Holguin Province, 724 kilometers east of the city of Havana The modern factory, with German technology, recently established a joint venture with Canadian capital to produce beer for the domestic U.S. Dollar market and for export.
GREAT BRITAIN SEEKS LARGER TRADE SHARE- Executives from twenty-five British companies visited the Republic of Cuba from 31 June 1997 through 4 July 1997. The delegation was led by Mr. Trevor Jones, the newly elected President of Caribbean Trade Advisory Group to the British Ministry of Foreign Trade, and chief sales executive of De La Rue, the world's largest printer of paper money and other documents, with a longstanding business relationship with the Republic Cuba. Mr. John Stephenson, Trade Secretary attached to the British Embassy in Havana, said the delegation was the sixth to arrive during the last two years, although more than 1,000 British business executives have traveled to the Republic of Cuba since 1995. Mr. Stephenson said that the US$30 million in trade between the two countries in 1996 was below potential and that his government remained interested in seeing trade increase. He said his government believed the Republic of Cuba would eventually emerge as the Caribbean Sea-area's largest economy. There are currently two British investment funds and five joint ventures operating in the Republic of Cuba and numerous other investment proposals being negotiated.
CANADIAN AMBASSADOR AWARDED FRIENDSHIP MEDAL- H.E. Dr. Carlos Lage Davila, Vice President of the Council of State of the Republic of Cuba, honored outgoing Canadian Ambassador Mark Entwistle by awarding him the Republic of Cuba's Friendship Medal. During Ambassador Entwistle's four-year tour of duty: 1) Canada provided and pledged millions of dollars in technical assistance to support reform of the Republic of Cuba's financial system, educational system, and various ministries 2) The Republic of Cuba became Canada's most important Caribbean Sea-area and Central American trading partner, annual trade increasing from less than US$300 million in 1992 to more than US$500 million in 1996 3) Sherritt International Corporation established a joint venture in the nickel industry valued at US$100 million and raised more than US$500 million in a special rights offering targeted for Republic of Cuba investments 4) Wilton Properties Limited and Republic of Cuba government-controlled Gran Caribe tourism corporation established VanCuba Holding S.A. to construct US$400 million in tourism facilities 5) Journey's End established a joint venture with the Republic of Cuba government-controlled Horizontes tourism corporation to remodel and build various hotels 6) Intelcan Techno Systems Inc. won major contracts for the expansion of various Republic of Cuba airports 7) a dozen small Canadian companies, often with the support of Canadian mining companies, came to dominate Republic of Cuba mineral and petroleum exploration and 8) Canada continued as the Republic of Cuba's second most important tourism provider with 156,000 Canadians visiting the island in 1996.
CHOLERA VACCINE GOES TO HUMAN TRIALS- A Cholera Vaccine went to human trials 2 July 1997 when seven Republic of Cuba volunteers were injected with the vaccine. They joined twenty-four Republic of Cuba volunteers testing an AIDS vaccine.
EXPOCARIBE '97 RESULTS- Mr. Carlos Martinez Salsamendi, President of the Chamber of Commerce of the Republic of Cuba, said contracts worth more than 10.4 million Pesos (officially equivalent to one U.S. Dollar) were signed during the annual event held 23 June 1997 to 29 June 1997 in the island's second-largest city of Santiago de Cuba, 900 kilometers east of the capital. Mr. Salsamendi said the figure included contracts worth US$3 million for the export of Republic of Cuba goods and services. He said that 80% of the contracts were with companies located in the eastern part of the country and that the 10.4 million Peso figure exceeded the 8.8 million Pesos worth of contracts signed during the 1996 event, as did the US$3 million export figure compared to US$600,000.00 signed in 1995. Mr. Salsamendi said that seventeen letters of intent were signed during the year's event, of which three were for joint ventures and the remainder various forms of economic association.
SUGAR PLANTING UPDATE- Sugar workers planted 523,150 acres of cane from January 1997 through June 1997, above the 351,250 acre average for the same period during the last 5 years. H.E. Nelson Torres, Minister of Sugar of the Republic of Cuba, said that workers would plant more than 900,000 acres this year, compared to 650,000 in 1996, and a similar amount in 1995. He said that sugar cane would be planted at a similar rate through the year 2000 to replace exhausted plantations and to fully use a currently unused milling capacity of 6 million to 7 million tons of raw sugar. Minister Torres said that planting losses of 30% during the last five years were dramatically reduced in 1997, although he gave no figures. Sources said that there were 3,400,000 acres of cane planted nationwide with a potential yield of 625 tons of cane per acre, compared to the just completed harvest's 375 tons per acre. The industry produced an average 7.5 million tons of raw sugar per year in the 1980's. Production declined to a 50-year-low 3.3 million tons in 1994-95. The 1995-96 harvest produced 4.45 million tons, and the 1996-1997 just completed harvest estimated 4.25 million tons.
PENAL CODE ADJUSTED TO NEW REALITIES- The Council of State of the Republic of Cuba issued decree law #175 expanding and modifying the penal code to increase the punishment of white collar crimes, exploitation of prostitution, and the abuse of minors. The crimes of influence peddling, tax evasion, and the conducting of illegal business activity by public officials, were added to the code with sentences of up to fifteen years in prison. For the first time, government executives can be held legally accountable for the actions of their businesses, including improper security measures and waste of materials and other resources. Sentences for various white collar crimes were increased to up to twenty years in cases where serious damage to the economy resulted. Directly or indirectly benefiting from prostitution was made punishable by from two to eight years in prison, sexual abuse of minors up to twenty years, and the use of minors to begin from two to eight years. Fines include the possible confiscation of property, for example, in cases where an individual permits their residence to be used for prostitution or abuse of minors. The police were granted additional authority to fine persons instead of arresting them for minor crimes. Decree Law #175, which takes effect 25 August 1997, expands the ability of judges to use alternative sentencing in cases where an offender faces less than five years in prison. H.E. Roberto Diaz Sotolongo, Minister of Justice of the Republic of Cuba, said the penal code was modified in an effort to stop administrative corruption and develop a tourism industry free from prostitution, gambling, and drugs.
EMPLOYMENT AGENCIES UNDER FIRE- H.E. Carlos Lage Davila, Vice President of the Council of State of the Republic of Cuba, reported that the government would re-organize twenty government-operated tourism employment agencies. Vice President Lage, speaking to industry officials and managers, termed "intolerable" the discovery that officials of an employment agency in the tourism resort area of Varadero accepted bribes in exchange for promised positions. Vice President Lage said the population had a reason for the widespread belief that tourism-related employment went to those who could pay bribes instead of those who are the best qualified.
GOVERNMENT STRENGTHENS BAN ON HOME SALES- H.E. Carlos Lage Davila, Vice President of the Council of State of the Republic of Cuba, said the government's on selling homes would be maintained and that additional measures would be taken to more strictly enforce the policy. More than 80% of the population owns the home where they reside, the majority of which were made available through Republic of Cuba government grants and low cost mortgages. Republic of Cuba citizens are permitted to trade dwellings, a practice known as the "permutta," but are forbidden from exchanging money for real estate. Vice President Lage, speaking to a national meeting of local housing directors, said that the policy had to be maintained to avoid real-estate speculation. Housing authorities have identified 2,486 cases of illegal housing sales over the last 18 months, of which 1,298 were proven and the occupants in many cases expelled and fined.
PRESIDENT CASTRO MEETS BELARUS FOREIGN MINISTER- H.E. Dr. Fidel Castro Ruz, President of the Republic of Cuba, met with H.E. Ivan Antonovich, Minister of Foreign Relations of Belarus. Minister Antonovich delivered a personal letter from H.E. Alexander Lukashenko, President of Belarus, in which he invited President Castro to visit. Minister Antonovich, during his 30 June 1997 through 1 July 1997 visit, signed agreements strengthening relations between the two countries. Russia, Ukraine, and Belarus accounted for the majority of trade with the Republic of Cuba before the collapse of the U.S.S.R. in 1991.
SAINT VINCENT PRIME MINISTER BEGINS VISIT- H.E. James Fits-Allen Mitchell, Prime Minister of Saint Vincent and the Grenadine Islands, arrived 5 July 1997 for a five-day visit at the invitation of H.E. Dr. Fidel Castro Ruz, President of the Republic of Cuba. Prime Minister Mitchell is expected to sign trade, visa, and sports agreements during the visit. Prime Minister Mitchell is the third Caribbean Sea-area head of state to visit the Republic of Cuba in two months, preceded by the Prime Ministers of Jamaica and Grenada. The Minister of Foreign Relations of Guyana and the Vice Minister of Foreign Relations of the Dominican Republic visited Havana in June 1997.
CUBAN ROLLS WORLD'S LONGEST CIGAR- Seventy-year-old Manuel Guzman's name will soon be in the Guinness World Book of Records for rolling the longest cigar. The 2.90 meter "Habano" was fashioned in a week and surpassed the previous record of 2.35 meters rolled in Madrid, Spain. The cigar now on display in Old Havana's Cigar Museum.
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