PESOS IN CIRCULATION UNCHANGED- H.E. Jose Luis Rodriguez, Minister of the Economy and Planning of the Republic of Cuba, reported that efforts by the government to reduce the number of Pesos in circulation had thus far stalled, but that a continuing economic recovery and more U.S. Dollars in circulation would further strengthen the value of the Peso.
BET SELLING COMMERCIAL TIME FOR INTERVIEW WITH PRESIDENT CASTRO- Washington, D.C.-based Black Entertainment Television, Inc., (BET) will air a one hour previously-taped interview with H.E. Dr. Fidel Castro Ruz, President of the Republic of Cuba, on the program “BET Tonight” hosted by Mr. Tavis Smiley, at 11:00 p.m. (EST) on Thursday, 28 January 1999. BET reports that the program will reach 55 million households. BET is offering a rate of US$3,500.00 per 30-second commercial for a package of four (4) commercials that will include two (2) 5-second open and close billboards denoting program sponsorship. Purchasers of the package will also receive an advertising discount (US$2,500.00 per commercial and two 5-second open and close billboards denoting program sponsorship) on any rebroadcast of the interview with President Castro. For additional information, contact Mr. Elverage D. Allen at BET. The telephone number is (312) 819-8600 and the facsimile telephone number is (312) 819-8684.
CLUB MED EXCLUDES CUBA FROM ADVERTISEMENT IN THE NEW YORK TIMES- Paris, France-based Club Mediterranee S.A., did not include mention of its property within the Republic of Cuba within the text of a two-page advertisement listing its other properties in The New York Times on 17 January 1999. Since 1997, Club Mediterranee S.A. has managed a 266-room property in the resort area of Varadero, 140 kilometers east of the city of Havana. The property is owned by Gaviota S.A., which is a affiliated with the Revolutionary Armed Forces of the Republic of Cuba. The Club Med II, one of the largest passenger (439) sailing vessels in the world, which is operated by Club Mediterranee S.A., first visited the Republic of Cuba in February 1998 and is expected to return in 1999. Madrid, Spain-based Iberia Airlines included mention of its service to the Republic of Cuba in an advertisement in The New York Times on 1 July 1998 which showed a map that included two routings between Spain and the Republic of Cuba (city of Havana and resort area of Varadero). The text of the advertisement said that Iberia is “working with American Airlines” and its customers can access “... anywhere American Airlines flies in the U.S. to any of Iberia’s 95 worldwide destinations.” Dallas Fort Worth, Texas-based American Airlines, Inc., and Hounslow, Middlesex, United Kingdom-based British Airways have a combined 10% share in Iberia Airlines. British Airways, which is seeking to establish a global marketing alliance with American Airlines, is scheduled to begin service from the United Kingdom to the Republic of Cuba in 1999.
DAIMLERCHRYSLER ESTABLISHES SIXTH SERVICE CENTER- MCV Comercial S.A., a joint venture between a Middle East-based subsidiary of Stuttgart, Germany-based DaimlerChrysler AG and Republic of Cuba government-operated Unecamoto, a division of the Ministry of Steel, Mechanical and Electronic Industry (SEME) of the Republic of Cuba, have established a sixth service center within the Republic of Cuba. The newest service center is in the city of Santiago de Cuba, 850 kilometers east of the city of Havana. The service centers provide support for an increasing number of Mercedes-Benz cars, Mercedes-Benz vans, Mercedes-Benz trucks, Mercedes-Benz buses, and vehicles equipped with Mercedes-Benz engines, in use throughout the Republic of Cuba. The service centers sell Mercedes-Benz motors, Mercedes-Benz gear boxes, and other Mercedes-Benz vehicle parts. Mr. Karim Ghabbour, President of MCV Commercial said that Mercedes-Benz vehicles and Mercedes-Benz engines were increasingly present in the tourism, sugar, construction, and other industries. MCV now has service centers in the cities of Havana, Santa Clara, Santiago de Cuba, Camaguey, Holguin, and in the resort area of Varadero.
TRANSTUR TO PURCHASE 700 VEHICLES IN 1999- Republic of Cuba government-operated Transtur, which is affiliated with the Ministry of Tourism of the Republic of Cuba, which reports that in 1998 it provided transportation (group charters and individual rentals) to 53% of all tourists upon their arrival in the Republic of Cuba, announced that the company had purchased, with delivery expected during the first half of 1999, more than 700 vehicles. The purchase includes more than 200 Grandeur vehicles produced by Seoul, South Korea-based Hyundai Group; 50 tour buses produced by Goteborg, Sweden-based AB Volvo; and 120 Samurai vehicles produced by Shizuoka, Japan-based Suzuki Motor Corporation. Transtur reported revenues of US$39 million in 1998.
CUBA TO PRODUCE 90% OF “ESSENTIAL” MEDICINES IN 1999- H.E. Dr. Carlos Dotres, Minister of Health of the Republic of Cuba, reported that Republic of Cuba government-operated companies would in 1999 produce 90% of unidentified “essential” medicines required by the country’s 11 million citizens. Minister Dotres reported that Republic of Cuba government-operated companies would in 1999 increase the production of unidentified “less essential” medicines required by the country’s 11 million citizens. Republic of Cuba government-operated U.S. Dollar pharmacies (which were originally established for the use of non-Republic of Cuba nationals) recently increased restrictions upon Republic of Cuba nationals seeking to purchase products at the pharmacies, regardless of whether the Republic of Cuba nationals possessed U.S. Dollars.
PHARMACEUTICAL AND MEDICAL EQUIPMENT PRODUCTION WAS 1.2% OF GDP IN
1998- H.E. Rosa Elena Simeon, Minister of Science, Technology, and
the Environment of the Republic of Cuba reported that Republic of Cuba-based
pharmaceutical (especially vaccines) production and medical equipment
production accounted for 1.2% of the 1998 Gross Domestic Product (GDP).
According to sources within the government of the Republic of Cuba, pharmaceutical
and medical equipment gross export revenues in 1998 were between US$120
million and US$140 million. In September 1998, Minister Simeon said
that the biotechnology sector had the potential to export between US$800
million and US$1 billion in human-related, animal-related, and plant-related
products during the next five years. Minister Simeon explained in
an interview with the monthly magazine, Business Tips on Cuba, that
the 1998 U.S. Dollar budget of the Republic of Cuba biotechnology sector
was between US$50 million and US$70 million. The government of the
Republic of Cuba previously reported substantial increases in pharmaceutical
exports, particularly to countries in Latin America, Africa, and to the
Middle East. The government of the Republic of Cuba has been using
pharmaceutical product exports as one means of repaying foreign debt, particularly
to countries within Latin America. Previously-provided pharmaceutical
export U.S. Dollar values from senior-level sources within the government
of the Republic of Cuba were as high as US$290 million for 1997.
The National Statistics Office (NSO) of the Republic of Cuba published
the following information on the gross revenue value of pharmaceutical
exports:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DENIM PRODUCTION PROPOSAL FROM CANADIAN COMPANY- A Toronto, Canada-based company is seeking a US$1 million investment to produce denim clothing within the Republic of Cuba for export to retail stores throughout Canada. The proposal: export Canadian-produced denim to the Republic of Cuba. The denim would then be sewn into clothing and re-exported back to Canada as “finished product.” Canada has no quota on Republic of Cuba-produced denim products. Reportedly, five-button denim pants can be produced less expensively within the Republic of Cuba than in Pakistan. The Republic of Cuba has, reportedly, 130 factories (with equipment from Italy-based companies and Spain-based companies) producing textiles. The Ministry of Light Industry of the Republic of Cuba, which overseas the textile factories, is, reportedly, prepared to invest up to US$2 million in the proposal from the Toronto, Canada-based company. The Toronto, Canada-based company believes that its proposal would be available to an individual subject to United States law by complying with the 4 March 1994 opinion from the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C., which states that: “a U.S. business or individual subject to U.S. law may make a secondary market investment in a third-country business which has commercial dealings within the Republic of Cuba provided that the investment does not result in control-in-fact of the third-country business by the U.S. investor and the third-country company does not derive a majority of its revenues from business activity within the Republic of Cuba. Secondary market investment that falls short of a controlling interest in such a business is not prohibited.”
FRANCE INCREASES TRADE CREDITS IN 1999 AND REPORTS 10% INCREASE IN TRADE IN 1998- The Honorable Ivon Roe D’Albert, Ambassador of France to the Republic of Cuba, reported that the government of France would provide the Republic of Cuba with US$200 million in trade credits in 1999, compared to US$185 million in 1998, and US$160 million in 1997. He said that the trade credits would, in part, be repaid through the delivery of raw sugar. Sources within France report that bilateral trade with the Republic of Cuba was US$330 million in 1998, compared to US$298 million in 1997. Republic of Cuba exports to France were reportedly US$50 million in 1998, consisting mainly of raw sugar, shellfish, and tobacco products, while 66% of France exports to the Republic of Cuba were bulk food commodities with the remainder consisting mainly of machinery for transportation, power generation, and communications. The number of French nationals visiting the Republic of Cuba are expected to increase from 1998's record of 110,000 due to Paris, France-based Air France adding a third weekly flight, four existing regularly-scheduled charter flights operated by Paris, France-based AOM and Paris, France-based CORSAIR. Reportedly, more than fifty France-based companies are conducting commercial transactions on a regular basis with Republic of Cuba government-operated companies.
BELIGUM TO RESCHEDULE US$20 MILLION IN SHORT TERM DEBT- The Honorable Eric Derycke, Minister of Foreign Affairs of Belgium, arrived in the city of Havana, Republic of Cuba, on 10 January 1999 for a five-day visit. This is the first visit of a Minister of Foreign Affairs of Belgium since the 1959 Republic of Cuba revolution. On 12 January 1999, Minister Derycke signed a letter of intent with H.E. Roberto Robaina, Minister of Foreign Affairs of the Republic of Cuba, to reschedule US$20 million in short term debt. The Republic of Cuba has US$200 million in long term debt to Belgium. The government of Italy rescheduled US$73 million in Republic of Cuba short term debt in September 1998. The government of the Republic of Cuba has been forced to increase requests to reschedule short term debt and medium term debt with many governments and companies due to 1) a continuing decreased raw sugar production and 2) a continuing decrease in commodity prices. H.E. Jose Luis Rodriguez, Minister of the Economy and Planning of the Republic of Cuba, reported on 8 January 1999 that the Republic of Cuba’s financial situation was extremely difficult, but minimum financing (reportedly at interest rates ranging from 8% to 20%) had been arranged for 1999. The government of the Republic of Cuba reportedly requires a minimum of US$2 billion in short term credits in 1999 to function at its current level.
COLOMBIA SIGNS COOPERATION AGREEMENTS- The government of the Republic of Cuba and the government of Colombia signed seven cooperation agreements (drug trafficking, repatriation of convicted nationals, tourism, trade, science, education, and culture) on 14 January 1999. H.E. Andres Pastrana, President of Colombia, visited the Republic of Cuba from 14 January 1999 to 17 January 1999. The trade agreement provides for the expansion of an existing preferential trade agreement between the two countries. Bilateral trade was reported to have been US$30 million from January 1998 through October 1998, US$38.4 million in 1997, and US$76.4 million in 1996. The government of the Republic of Cuba was to have imported a minimum of 15,000 barrels of oil from Colombia in 1994 and 1995. The agreement was not implemented.
SURINAME SIGNS INVESTMENT PROTECTION AND PROMOTION AGREEMENT- The government of the Republic of Cuba and the government of Suriname signed an Investment Protection and Promotion agreement on 12 January 1999, the thirty-fourth such agreement signed by the government of the Republic of Cuba. The signing took place during the 11 January 1999 to 13 January 1999 visit of H.E. Jules Albert Wiljenbosch, President of Suriname, to the Republic of Cuba. Suriname is the current president of the Caribbean Economic Community (CARICOM). President Wildenbosch reported that he would seek full membership for the Republic of Cuba in CARICOM. The government of the Republic of Cuba currently has Observer Status. President Wildenbosch reported that he had invited H.E. Dr. Fidel Castro Ruz, President of the Republic of Cuba, to attend the March 1999 CARICOM Summit to be held in Paramaribo, Suriname.
TRINIDAD AND TOBAGO SIGNS TRADE AGREEMENT- The government of the Republic of Cuba and the government of Trinidad and Tobago signed a five-year trade agreement. Bilateral trade in 1996 was US$28.5 million in 1996, almost exclusively exports of oil and derivative products to the Republic of Cuba.
CONSORCIO MADERERO INTERNATIONAL ESTABLISHES HOTEL VENTURE- Consorcio Maderero International, a holding company with capital from Peru and Nicaragua, and Republic of Cuba government-operated Cubanacan S.A., have established Halima S.A., to build and manage four hotels at the resort areas of Cayo Coco and Varadero, 140 kilometers and 450 kilometers, respectively, northeast of the city of Havana. Construction of the first hotel, on Cayo Coco, is expected to begin within the next twelve months.
BRASCUBA MARKETING ROMEO Y JULIETA CIGARETTES- BrasCuba, a joint venture between 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, are marketing Romeo y Julieta brand cigarettes, made with dark tobacco and packaged ten to a box. The rights to the Romeo y Julieta brand name and Romeo y Julieta logo were purchased from Republic of Cuba government-operated Habanos S.A., the exclusive exporter of Republic of Cuba-produced cigars, including the Romeo y Julieta brand. BrasCuba also produces Popular, which reportedly has 47% of the Republic of Cuba’s U.S. Dollar retail store market share; Hollywood brand cigarettes; Continental brand cigarettes; and Souza Cruz brand cigarettes, which is exported to countries within The Americas.
CIMEX REPORTS 1998 GROSS REVENUES OF US$900 MILLION- Republic of Cuba government-operated Cimex S.A., the largest conglomerate operating in the Republic of Cuba, reported gross revenues of US$900 million in 1998, an increase of 14% from gross revenues in 1997. Cimex S.A. reported gross profits in 1998 of approximately US$200 million. Cimex S.A., originally an import-export company, currently has more than eighty subsidiaries including U.S. Dollar retail stores, credit card processing, vehicle service stations, travel, transportation, and real estate. Cimex S.A.’s five U.S. Dollar retail subsidiaries reported having a combined 1,123 individual outlets throughout the Republic of Cuba, including supermarkets, service stations, fast food outlets, photo developing, car washes, and kiosks. Cimex S.A. reports that the company has 19,200 Republic of Cuba national employees. Cimex S.A. reports that the company sells more than 20,000 different Republic of Cuba-produced products.
FOREIGN MINISTER TO VISIT RUSSIAN FEDERATION- H.E. Roberto Robaina,
Minister of Foreign Affairs of the Republic of Cuba, is scheduled to visit
Moscow, Russian Federation, from 18 January 1999 to 20 January 1999.
The government of the Russian Federation reported that bilateral trade
was US$300 million in 1998, compared to bilateral trade of US$386 million
in 1997, and approximately US$500 million in 1996.