PESO UNCHANGED AGAINST THE U.S. DOLLAR- Republic of Cuba government-operated Cajas de Cambio S.A. (CADECA) purchased the U.S. Dollar for 23 Pesos across the country and sold the Convertible Peso, equal to one U.S. Dollar, for 23 Pesos across most of the country. CADECA sold the Convertible Peso for 24 Pesos in the easternmost parts of the country, for example, in Santiago de Cuba, the island's second-largest city, approximately 900 kilometers southeast of the city of Havana. CADECA began 1997 exchanging the U.S. Dollar for 19 Pesos (buy) and 20 Pesos (sell) in Havana and in the resort area of Varadero; and for 20 Pesos (buy) and 21 Pesos (sell) in the provinces. The official international exchange rate of one Peso to one U.S. Dollar, in effect for more than thirty years, remained unchanged. The government maintains a fixed exchange rate for its international dealings and a more flexible exchange rate for domestic use. The Peso and the U.S. Dollar circulate freely in the Republic of Cuba.
NATIONAL BANK OF CUBA EXCHANGE RATES- The following are the biweekly official exchange rates between the Republic of Cuba Convertible Peso and selected international currencies:
Austria- Shilling
12.8321
12.4082
US$446,050,000.00 ESTIMATED TO CUBA IN 1997- Remittances from individuals subject to United States law to relatives within the Republic of Cuba were estimated to be US$275 million in 1997. There are approximately 1,500,000 individuals (or approximately 375,000 families) subject to United States law whose members are of Republic of Cuba-descent and who reside in the United States. General remittances (almost 100% of which are in the form of cash) are not authorized by the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C. Only special remittances are licensable by the OFAC for a) an extreme humanitarian circumstance or b) for emigration fee payments to the government of the Republic of Cuba. Remittances to the Republic of Cuba (from outside of the United States) by individuals of Republic of Cuba-descent to their relatives residing within the Republic of Cuba are estimated to be approximately US$300 million annually. Long Distance Telephone Service Payments were estimated to be US$80 million. The Cuban Democracy Act (1992) authorizes United States-based communications companies to share revenues with ETECSA, the Republic of Cuba government-operated telephone company. The United States-based companies providing the payments include AT&T, WilTel, Global One, MCI, IDB Worldcom, Worldcom, AT&T Puerto Rico, Sprint, and Telefonica Larga Distancia de Puerto Rico. Overflight Payments to the Republic of Cuba by United States-based air carriers were estimated to be US$6 million. Emigration Fees paid by Republic of Cuba nationals to the government of the Republic of Cuba for passports, medical services, etc., were estimated to be US$1,000,000.00. The government of the United States and the government of the Republic of Cuba have an immigration agreement signed in 1993 that provides for up to 20,000 Republic of Cuba nationals to enter the United States annually. Departure Taxes from the Republic of Cuba for individuals subject to United States law were estimated to be US$1,050,000.00 from approximately 70,000 visitors each paying US$15.00. Travel Visa Payments are estimated to be US$3,500,000.00 from approximately 70,000 individuals subject to United States law. Authorized Daily Expenditures were estimated to be US$70,000,000.00. The OFAC authorizes up to US$100.00 to be spent within the Republic of Cuba by individuals subject to United States law, although most individuals subject to United States law visiting the Republic of Cuba spend an average of US$150.00 to US$200.00 per day. On average, individuals subject to United States law visit the Republic of Cuba for ten (10) days. Product Imports were estimated to be US$7,500,000.00 by individuals subject to United States law who visit the Republic of Cuba. The OFAC authorizes the purchase of up to US$100.00 in Republic of Cuba-origin products for personal use to be imported to the United States. The importation of informational products (books, magazines, music, videos, etc.) is unlimited, as is the quantity and value of artwork. Charter Flight Payments by United States-based air charter companies to the government of the Republic of Cuba were estimated to be US$2,000,000.00 based upon approximately 48,653 passengers.
TELEVISION NETWORKS PREPARE FOR VISIT OF THE POPE- A barge carrying tens of millions of U.S. Dollars in equipment (mobile ground stations, mobile transmission semi-trailer trucks, communications equipment, two-way radios, generators, vehicles, etc.) belonging to various United States-based television networks arrived at the Port of Havana on 8 January 1998. Reportedly, ABC, CBS, CNN, Fox, and NBC are spending between US$2 million and US$5 million each on their coverage, which each network bringing more than 100 personnel. The Republic of Cuba had initially proposed charging all television networks US$10,000.00 per day for the use of each "fly away" ground transmission station, but negotiators eventually settled upon US$5,000.00, which is the typical cost in most countries. The networks are being required to hire Republic of Cuba nationals at US$25.00 per day for crew members, US$35.00 per day for office staff, US$45.00 per day for drivers, US$60.00 per day for translators, and US$80.00 per day for engineers. Of the more than 3,000 travel visas issued by the government of the Republic of Cuba for journalists to visit the Republic of Cuba in conjunction with the visit of His Holiness Pope John Paul II from 21 January 1998 to 25 January 1998, more than 2,000 are arriving from the United States. With the exception of CNN, each television network is reportedly paying US$130,000.00 to the Institute of Television and Radio of the Republic of Cuba for broadcast rights to the individual masses, although negotiations continue as to access of United States-based camera operators as opposed to a "pool" type of arrangement whereby the cameras at the individual masses may be operated by Republic of Cuba nationals.
VOICE OF AMERICA RECEIVES VISA FOR VISIT OF THE POPE- A reporter from United States government-funded Voice of America, the international radio broadcaster, is being provided a travel visa by the government of the Republic of Cuba in conjunction with the visit of His Holiness Pope John Paul II from 21 January 1998 to 25 January 1998.
CUBACEL REACHES LIMIT FOR VISIT OF THE POPE- Cubacel, a Republic of Cuba-based joint venture with investors from Mexico that operates the Republic of Cuba's cellular telephone system, reports that demand has exceeded its supply. Of the 700 cellular telephone lines established for the use of journalists and others visiting the Republic of Cuba in January 1998 in conjunction with the visit of His Holiness Pope John Paul II, 700 reservations have been confirmed, and a waiting list has been established for an additional 100 individuals.
NEW AIRCRAFT FOR CUBANA AIRLINES- According to H.E. Dr. Carlos Lage, Vice President of the Council of State of the Republic of Cuba, Republic of Cuba government-operated Cubana Airlines is negotiating to purchase new aircraft, reportedly Airbus or Boeing, to replace a fleet of forty, twenty-plus-year-old U.S.S.R.-built aircraft. Cubana Airlines already has two DC-10 aircraft and several Fokker turboprop aircraft.
4.5% OF GOVERNMENT BUDGET COMES FROM INCOME TAXES- The National Tax Office (NTO) of the Republic of Cuba reported that 4.5% of the Republic of Cuba's government budget is due to payments from 172,000 Republic of Cuba nationals who are required to file income tax returns. 161,000 of the 172,000 income tax filers are self-employed workers. The NTO reported that 85% of those Republic of Cuba nationals who are required to file income tax returns do so voluntarily.
EMPLOYMENT UPDATE- Mr. Conrado Valladares, Vice Minister of Labor and Social Security of the Republic of Cuba, reported that of the island's 4.5 million workforce, 77% were employed by the government of the Republic of Cuba either directly or through Republic of Cuba government-operated companies; 3% worked under the auspice of joint ventures and economic associations; and 20% worked for themselves, other Republic of Cuba nationals, or in cooperatives.
LOWER OIL PRICES COULD RESULT IN SAVINGS- A 36% decrease in international oil prices during 1997 and expectations that prices could decrease further or, remain at current levels, could result in significant savings for the government of the Republic of Cuba. Oil prices decreased from US$26.37 per barrel on 6 January 1997 to US$16.91 per barrel on 6 January 1998. Various Republic of Cuba-based sources report that the island produced on average of 29,600 barrels of oil (mostly high sulfur) per day in 1996 and in 1997; and imported an average of 120,000 barrels (various quality combustibles and lubricants) per day in 1997. The government of the Republic of Cuba reported that the island consumed 260,000 barrels of oil per day in 1990. The government of the Republic of Cuba reported that a 30% increase in the price of imported oil in 1996 cost the country an additional US$200 million; and placed the total 1996 oil import cost at US$1.051 billion, compared with US$866.2 million reported in 1995.
TOURISM UPDATE- The Ministry of Tourism of the Republic of Cuba reported that while the number of visitors were 1,170,000 in 1997, a 16.5% increase from 1996, income increased 12% and the number of tourist days reported by Republic of Cuba-based hotels increased by 9%, to 8 million tourist days. The most arrivals, in order, were from Italy, Canada, Spain, France, Germany, and Mexico. New markets included Sweden (an increase of 175.4% from 1996), Belgium (an increase of 77% from 1996), United Kingdom (an increase of 77% from 1996), and Brazil (an increase of 56.4% from 1996). The Ministry of Tourism of the Republic of Cuba reported gross revenues of all companies under its jurisdiction, meaning providing services within the tourism industry (including Cubana Airlines, hotels, restaurants, etc.) were US$850 million in 1997, a 12% increase from 1996. Total tourism and related gross revenues were estimated to be US$1.5 billion, compared with US$1.35 billion reported in 1996. The Ministry of Tourism of the Republic of Cuba reported that in 1998 costs would be decreased by US$.04 per U.S. Dollar earned, the island would have a "linear occupation rate" of 63.9%, earn US$.29 per U.S. Dollar invested, begin construction of an additional 1,800 hotel rooms, complete or remodel an 4,000 hotel rooms, and provide US$80 million (an increase of US$30 million from 1997) in credits to Republic of Cuba government-operated companies for the production of products for the tourism industry.
FISHING PRODUCTION UPATE- H.E. Orlando Rodriguez Romay, Minister of Fishing of the Republic of Cuba, reported increased revenues in 1997, but no figures were provided. The catch was 136,500 tons in 1997, compared to 120,000 tons in 1996. The freshwater catch was 60,000 tons, compared to approximately 50,000 tons in 1996. U.S. Dollar export revenues were obtained almost exclusively from the sale of lobster, shrimp, crab, and other types of shell fish. Minister Romay said that, in 1987, 12,000 tons of lobster obtained revenues of US$100.7 million. Today, 9,000 tons of lobster produce the same revenue. Minister Romay said that the 1997 lobster catch was below expectations due to effects of the weather pattern known as "El Nino." He said that shrimp production is expected to increase by 300 tons in 1998 and in 1999, for a total year 2000 production in excess of 3,500 tons.
CITRUS UPDATE- The government of the Republic of Cuba reported that it produced 843,700 tons of citrus fruit during the 1996-1997 harvest (July to July), a 39% increase from the 600,000 tons produced in 1995-1996. The citrus industry reported that the 1996-1997 production was achieved using less acreage than in 1990 when 1,017,000 tons was produced. Granma, the daily newspaper published by the Communist Party of the Republic of Cuba, reported that of the 843,700 tons produced, 490,000 tons were produced by Republic of Cuba military-operated plantations in Jaguey Grande, in Matanzas Province, approximately 100 kilometers east of the city of Havana, and on the Isla de la Juventud, approximately 200 kilometers south of Havana. The National Citrus Corporation (NCC) of the Republic of Cuba reported that it produced 303,685 tons, and non-Republic of Cuba government-operated plantations produced 814,015 tons. The Jaguey Grande plantation produced 440,000 tons and the Province of Havana's Ceibe plantation produced 75,000 tons. All fourteen plantations within the Republic of Cuba were reported to have increased production. 85% of the fruit produced at Republic of Cuba military-operated plantations was exported as fresh, juice, and extracts; while 56% of the fruit produced by the NCC was exported as fresh, juice, and extracts. The remaining fresh fruit, juice, and extracts were sold used for subsidized, domestic, sales to Republic of Cuba nationals. The National Bank of the Republic of Cuba reported that citrus earned US$10.5 million in 1996 compared with US$12.9 million in 1995. Various Republic of Cuba government sources reported that 1997 production increased above that of 1996, but not by the quantities expected, due mainly to a decrease in international market prices. The Republic of Cuba citrus industry has had joint ventures and economic associations with companies in Greece, Chile, and Israel.
RICE PRODUCTION UPDATE- Mr. Miguel Rodriguez, Director of the National Union of Rice Companies of the Republic of Cuba, reported that 1997-1998 rice production would be 225,000 tons, an approximate 20% increase from the 1996-1997 production level. He also reported that non-Republic of Cuba government-operated production would be 150,000 tons. In 1995, Republic of Cuba government-operated rice production was 80,000 tons, non-Republic of Cuba government-operated rice production was 50,000 tons, and imports were 450,000 tons. During the last two years, the government of the People's Republic of China has been providing Republic of Cuba rice producers with technology and new and more efficient cultivation methods.
NEW TUBING PLANT TO OPERATE- A new plant located in the Indalecio Montejo Iron and Steel complex in Ciego de Avila, located approximately 423 kilometers southeast of the city of Havana, is expected to begin production in 1998. The plant, constructed at a cost of approximately US$5 million, is expected to produce 6,000 tons of tubing annually. The Indalecio Montejo Iron and Steel complex produces galvanized tubing for water supply systems and gas supply systems.
INDUSTRIAL PUMP PRODUCTION- In a continuing effort toward reducing imports and creating employment opportunities for Republic of Cuba nationals, The Union of Machine Companies of the Ministry of Sugar of the Republic of Cuba and Spain-based company Itur, will begin production of industrial pumps and other machinery for use in the sugar and other industries, both within the Republic of Cuba and for export.
LEBANESE COMPANY OBTAINS MIDDLE EAST CIGAR DISTRIBUTORSHIP- Habanos S.A., the Republic of Cuba government-operated company which is the exclusive marketing agent of cigar products, has signed an agreement with Lebanon-based Phoenicia Trading Company. Phoenicia Trading Company has the exclusive distributorship for Republic of Cuba-produced cigars in Lebanon, Syria, and Egypt. Mr. Mohammad Zeidan, President of Phoenicia Trading Company, reported that the company expects to increase its 1997 sales of 3.5 million units to more than 6 million units in 1998. The company is also providing financing for the Republic of Cuba's tobacco production. Mr. Zeidan said that Lebanon was the third most important market for Republic of Cuba-produced cigars, in terms of units sold, after Spain and France, respectively.
CUBALSE REPORTS EARNINGS- Mr. Camilo Garcia, Director of Public Relations of Republic of Cuba government-operated Cubalse S.A., the second-largest Republic of Cuba government-operated conglomerate after Cimex S.A., reported that gross revenues were US$240 million in 1997, an increase of 19% from 1996. Cubalse operates retail stores, serves as the exclusive rental agent for non-Republic of Cuba nationals seeking housing within the Republic of Cuba, operates retail vehicle facilities (Fiat, etc.), and operates vehicle service stations
FIBERGLASS LOBSTER BOAT LAUNCHED- Republic of Cuba government-operated Astigolf S.A., located in Manzanillo, Granma Province, 850 kilometers southeast of the city of Havana, has completed construction on a PVC fiberglass lobster boat. The vessel is 18.90 meters long, 4.86 meters wide, has a middle draft of 1.27 meters, and has an 11 cubic-meter pool to hold live lobsters.
SINGER BARBARA DANES PERFORMS- Ms. Barbara Danes, a blues singer, who is a United States citizen, performed at the Che Guevara Hall at the Casa de la Americas in the city of Havana on 26 December 1997. The Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C., provides licenses for such performances.
COMPUTER VIRUS UPDATE- Republic of Cuba government-operated Empresa de Consultoria y Seguridad Informatica reported that more than 40 computer viruses were detected in the country in 1997 including "Empire Money," "Stone Henge B," new versions of the computer viruses "Jerusalem," and "Viernes 13," and "Soned."
PACKAGE SHIPMENT COST DOUBLES- Ms. Nilda Seret, president and owner of Miami, Florida-based, Cuba Envios, which specializes in transporting packages of clothing, health care products, and other goods to Republic of Cuba nationals, reported that the government of the Republic of Cuba had increased its entry charge from US$10.00 per pound to US$19.00 per pound. The entry charge increase follows a reduction in the amount of goods that an individual may bring with them upon entry into the Republic of Cuba and an increase in the amount of duty on goods that an individual brings into the Republic of Cuba. Various Republic of Cuba government sources said that the recent changes reflect the government's continuing efforts to increase revenues of Republic of Cuba government-operated retail stores.
USCTEC INTERNET COUNTRY ACCESS UPDATE- Worldwide "hits" on the Internet address of the U.S.-Cuba Trade and Economic Council, http://www.cubatrade.org, continue to increase. During the month of December 1997, the site was accessed (in order of the number of "hits") by individuals from businesses, governments, media, and educational institutions in the United States, Canada, Germany, Norway, France, Sweden, Italy, Cuba, United Kingdom, Denmark, Aruba, Dominican Republic, Dominica, Cyprus, Austria, Mexico, Netherlands, South Korea, Peru, Australia, Chile, South Africa, Jamaica, Spain, Brazil, Belgium, Nicaragua, Finland, Venezuela, Japan, Argentina, and the Russian Federation.
USCTEC SPEAKING SCHEDULE UPDATED- On 5 February 1998, Mr. John S. Kavulich II, President of the U.S.-Cuba Trade and Economic Council, will be a featured speaker before The Chicago Council on Foreign Relations, one of the largest (7,000 members) international affairs organizations of its kind in the United States.
Country and Currency
Denmark- Krone
Norway- Krone
Sweden- Krone
Australia- Dollar
Canada- Dollar
United States- Dollar
Portugal- Escudo
Holland- Gilder
Belgium- Franc
France- Franc
Switzerland- Franc
United Kingdom- Pound Sterling
Italy- Lira
Germany- Mark
Finland- Markka
Spain- Peseta
Mexico- Peso
Japan- Yen
Exchange
6.9406
7.4795
8.027
1.5551
1.4619
1.0000
186.3750
2.0539
37.5818
6.0940
1.4788
1.6295
1790.1920
1.8217
5.5238
154.2288
8.5984
131.7752
Re-Exchange
6.7200
7.2365
7.7692
1.5050
1.4154
1.0000
180.4066
1.9883
36.3785
5.9010
1.4312
1.6835
1731.8400
1.7638
5.3498
149.3122
8.3173
127.5264
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