EXCHANGE RATES CHANGE- Republic of Cuba government-operated Cajas de Cambio S.A. (CADECA) sold the Convertible Peso, equal to one U.S. Dollar, for 21 Pesos and purchased the U.S. Dollar for 21 Pesos. CADECA had purchased the U.S. Dollar for 19 Pesos since 1 April 1998. CADECA had purchased the U.S. Dollar for 20 Pesos and sold the U.S. Dollar for 22 Pesos from 12 March 1998 to 31 March 1998. CADECA purchased the U.S. Dollar for 21 Pesos and sold the U.S. Dollar for 23 Pesos from 11 February 1998 to 11 March 1998. CADECA purchased and sold the U.S. Dollar for 23 Pesos from August 1997 through 10 February 1998. CADECA began April 1997 purchasing the U.S. Dollar for 26 Pesos and selling the U.S. Dollar for 26 Pesos. In April 1995, the U.S. Dollar could be purchased on the unofficial market for 40 Pesos, as CADECA did not yet exist. 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 government 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.

USCTEC AWAITING PACKAGE DELIVERY RULING FROM THE OFAC- The U.S.-Cuba Trade and Economic Council, at the request of healthcare product company members, wrote to the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C., on 26 February 1998 to learn if United States-based package delivery companies would be permitted to transport healthcare products (medical equipment, medical instruments, medical supplies, medicated products, medicines, and pharmaceuticals) from the United States to the Republic of Cuba which have received an export license (sale or donation) from the Bureau of Export Administration (BXA) of the United States Department of Commerce in Washington, D.C.. Executives from United States-based healthcare product companies believe that the ability to use United States-based package delivery companies to transport healthcare products to the Republic of Cuba could create additional export opportunities as transportation costs could be lessened and made more efficient, and there could be additional export opportunities for healthcare products whose delivery is time-sensitive, such as for operations, etc.

DHL WORLDWIDE EXPRESS TO RECEIVE CORRECTED GUIDELINES- In June 1998, the U.S.-Cuba Trade and Economic Council reported to a United States-based healthcare product company that DHL Worldwide Express could transport a package containing brochures and video tapes to a hospital located in the city of Havana, Republic of Cuba. The company contacted DHL Worldwide Express and was informed that such shipments to the Republic of Cuba were limited to five brochures, no video tapes, and that the package could only be delivered to a residence. The U.S.-Cuba Trade and Economic Council then contacted DHL Worldwide Express to re-confirm the information that had been provided to the United States-based healthcare company. On 26 June 1998 the U.S.-Cuba Trade and Economic Council wrote to the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C., to seek clarification as to the discrepancy between DHL Worldwide Express and OFAC regulations which exempt informational materials from any restrictions. On 10 July 1998 the OFAC replied to the U.S.-Cuba Trade and Economic Council [see attached letter], and confirmed that packages may be sent from the United States to the Republic of Cuba using the services of DHL Worldwide Express under the following conditions: 1) documents may be sent, including video tapes, music tapes, books, magazines, etc. 2) there are no quantity limitations per package and 3) that the shipments may be addressed to residences and to offices. The OFAC said that the United States Customs Service of the United States Department of the Treasury would contact DHL Worldwide Express to make certain that the company understands existing OFAC regulations. As of 17 July 1998, DHL Worldwide Express continued to report that a package sent from the United States to the Republic of Cuba could only contain up to five documents and no video tapes. According to the DHL Worldwide Express office in Havana, a package sent to the United States may contain only documents and one video tape.

DHL WORLDWIDE EXPRESS RATES- According to DHL Worldwide Express, a package sent from the United States to the Republic of Cuba costs more than a package sent from the United States to the Republic of Cuba, a package takes three business days to reach the United States from the Republic of Cuba and four days to reach the Republic of Cuba from the United States.

Document Weight Less Than 8 Ounces 1 Pound 2 Pounds 3 Pounds 100 Pounds 110 Pounds (maximum)

The United States To Cuba US$75.20 US$80.40 US$96.20 US$112.00 US$1,202.10 US$1,323.10

Cuba To The United States US$25.00 US$39.00 US$47.00 US$55.00 US$456.00 100 pounds maximum

From The United States To Cuba: Havana Matanzas Varadero Santiago de Cuba Holguin Ciego de Avila Cienfeugos Granma Guantanamo Isle de la Juventud Pinar del Rio Sancti Spiritus Villa Clara Las Tunas

Delivery Time 4 Business Days 4 Business Days 4 Business Days 5 Business Days 5 Business Days 5 Business Days 5 Business Days 5 Business Days 5 Business Days 5 Business Days 5 Business Days 5 Business Days 5 Business Days 5 Business Days

From Cuba To The United States Havana

Delivery Time 3 Business Days

UNDP TO FINANCE MARKETING OF CUBAN BIOTECHNOLOGY PRODUCTS- The United Nations Development Fund (UNDP) will provide US$300,000.00 for the purpose of increasing marketing programs for Republic of Cuba-produced biotechnology products.

DIRECT FLIGHTS RESUMED BETWEEN UNITED STATES AND CUBA- On 15 July 1998 Miami, Florida-based, Airline Brokers Company, Inc. (ABC), operated the first direct Miami-Havana charter flight since February 1996- a chartered United Airlines Boeing 767-300 carrying a reported 203 passengers. Approximately twenty companies, including Dallas/Fort Worth, Texas-based, American Airlines, either have or are awaiting licenses from Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C., to operate air charter services between the United States and the Republic of Cuba. More than 100 United States-based companies either have or are awaiting licenses from the OFAC to provide travel services and/or to provide air charter services between the United States and the Republic of Cuba.

PRESIDENT CASTRO TO VISIT JAMAICA ON 29 JULY 1998- The government of Jamaica reported that H.E. Dr. Fidel Castro Ruz, President of the Republic of Cuba, would visit the island from 29 July 1998 to 31 July 1998. President Castro is also expected to visit the Dominican Republic, Barbados, Grenada, and Portugal this year. Jamaica-based Sandals Hotels and Jamaica-based SuperClubs each manage hotels within the Republic of Cuba. Air Jamaica services the Republic of Cuba.

CHINESE OFFICIALS TO VISIT- H.E. Qian Qichen, First Deputy Prime Minister of the People's Republic of China, and H.E. Yan Jiechi, First Deputy Minister of Foreign Affairs of the People's Republic of China, are expected to visit the Republic of Cuba in July 1998.

CUBA EXCHANGES AMBASSADORS WITH GUATEMALA- The Republic of Cuba and Guatemala exchanged ambassadors for the first time in 36 years. Within The Americas, only Costa Rica, Paraguay, El Salvador, and Honduras currently do not have full diplomatic relations with the Republic of Cuba, although each country has trade relations with the Republic of Cuba.

SUGAR PRODUCTION UPDATE- The Republic of Cuba is expected to produce 3.2 million tons of raw sugar for the 1997-1998 harvest, compared to 4.2 million tons in 1996-1997 and 4.445 million tons in 1995-1996. Total world sugar cane production for the 1997-1998 harvest is expected to be 87.910 million tons, compared to 85.310 million tons in 1996-1997 and 87.344 million tons in 1995-1996. The Republic of Cuba will have the ninth largest 1997-1998 raw sugar harvest after Brazil (16.033 million tons), India (13.804 million tons), People's Republic of China (7.391 million tons), Australia (5.904 million tons), Mexico (5.564 million tons), Thailand (4.330 million tons), Pakistan (3.892 million tons), and the United States (3.275 million tons).

CUBA TO BE DISCUSSED AT 23 JULY 1998 SUGAR SEMINAR IN WASHINGTON, D.C.- Mr. Nicholas Kominus, President of the Washington, D.C.-based, United States Cane Sugar Refiners' Association, will discuss "TRQ Disruption- Thoughts on the return of Cuba and the arrival of Mexico to the U.S. sugar market" at the J.W. Marriott Hotel in Washington, D.C., on 23 July 1998. A half-day seminar is being sponsored by the United States Cane Sugar Refiner's Association and the Washington, D.C.-based, Sweetener User Association.

MORE CRUISE SHIP ARRIVALS PLANNED- A subsidiary of Republic of Cuba government-operated Cubanacan S.A., Viajes Tours (formerly Viajes Fantastico), reported that the company would coordinate land arrangements for cruise ships making regularly-scheduled visits to the Republic of Cuba during the 1998-1999 tourism season (December-March). Cruise ships flying flags from France, Greece, Germany, and the United Kingdom are expected.

LIBRARY COMPUTER LINK- Mr. Eliades Acosta Matos, Director of the Republic of Cuba's government-operated Jose Marti National Library, reported that by September 1998 all provincial libraries would be linked by computer to the Jose Marti National Library, which currently has a data base of more than 100,000 materials that local users can access.

HAVANATUR PUBLISHES UPDATED AIRLINE FLIGHT SCHEDULE- Republic of Cuba government-operated Havanatur, a subsidiary of Republic of Cuba government-operated Cimex S.A., the largest conglomerate within the Republic of Cuba, has published an updated airline schedule for countries in Central America and countries in the Caribbean Sea-area. Havanatur is the tour operator within the Republic of Cuba that is the choice of the United States business community for airline, hotel, vehicle rental, and special tour arrangements. For additional information, contact Mr. Joel Sanz, Director- United States and Puerto Rico Division for Havanatur, at telephone: 011 53 7 23 9790 or 011 53 7 23 97 91 or at facsimile: 011 53 7 24 9038 or 011 53 7 24 74 12 or by E-mail at joels@cimex.com.cu. The mailing address is: Corporacion Cimex, edificio Sierra Maestra, call 1 y O, Miramar, Ciudad de la Habana, Republica de Cuba. KEY: 1- Monday, 2- Tuesday, 3- Wednesday, 4-Thursday, 5- Friday, 6- Saturday, 7- Sunday.

Destination		Itinerary	Day	Flight		Departure	Arrival	

Havana to Cancun	direct		3,5	CU-152		09:45		10:45
					7	CU-152		10:30		11:45
									
Cancun to Havana	direct		3,5	CU-153		12:00		13:00
					7	CU-153		16:30		18:00
							
Havana to Nassau	direct		1,4	CU-9250		13:15		14:50
					2,3	CU-9250		13:15		14:15
					5	CU-9250		14:30		15:45
					6	CU-9250		07:45		09:15
					7	CU-9250		15.35		16:35	
	
Nassau to Havana	direct		1,4	CU-9251		15:50		17:25
					2,3	CU-9251		16:15		17:15
					5	CU-9251		17:15		18:15
					6	CU-9251		10:15		11:45
					7	CU-9251		18:35		19:35	

Havana to Montego Bay	Hav to Kin	5	CU-256		08:55		09:30
			Kin to Mbj				10:30		11:00
			Hav to Kin	7	CU-256		18:10		18:50
			Kin to Mbj				19:30		20:05	
	
Montego Bay to Havana	direct		5	CU-257		11:45		14:15
					7	CU-257		21:05		23:35	

	
Havana to Grand Cayman	direct		3,5	CU-9454		15:00		16:00
					7	CU-9454		15:15		16:15
	
	
Grand Cayman to Havana	direct		3,5	CU-9455		17:00		18:00
					7	CU-9455		17:15		18:15
	
Havana to Santo Domingo	Hav-Sdq		4	CU-200		12:40		14:50
			Hav-Stg		7	CU-200		14:40		15:50
			Stg-Sdq			CU-200		16:50		18:05

Santo Domingo to Havana	Sdq-Scu		4	CU-201		16:20		17:40
			Scu-Hav					18:40		19:55
			Sdq-Hav		7	CU-201		19:50		22:15

Havana to San Jose	direct		2	LR-623		12:45		14:00
					4	LR-623		12:45		14:00
					6	LR-623		12:45		14:00

San Jose to Havana	direct		1	LR-622		16:20		19:45
					3	LR-622		16:20		19:45
					5	LR-622		16:20		19:45

Havana to Panama City	direct	Every Day	CM-437		16:20		18:00	

Panama to Havana City	direct	Every Day	CM-438		10:10		12:30	

Havana to Guatemala	Hav to Can	1,3	GU-951		16:50		17:50
			Can to Gua	5,7			17:50		18:05	

Guatemala to Havana	Gua to Can	1,3	GU-950		09:40		12:55
			Can to Hav	5,7			13:35		14:25

Havana to Martinica	Havana to Edf.	5	CU-262		07:15		12:40	

Martinica/Guadalupe 
to Havana		Fdf-Ptp					14:10		14:50
			Ptp-Hav		5	CU-263		16:20		20:55	

Havana to Merida	Havana to Mid	Every 	MX-7901		07:10		08:25
					Day
Merida to Havana	Mid-Havana	Every	MX-7902		18:15		21:20	
					Day

ANNUAL MEMBER LUNCHEON UPDATE- The annual member luncheon of the U.S.-Cuba Trade and Economic Council is being tentatively-scheduled for September 1998 in New York City. Guest speakers being considered are a grouping of the Chairmen, Presidents, and Chief Executive Officers of non-United States-based healthcare companies which export to, import from, have joint ventures with, or have economic associations with, the Republic of Cuba.

OFAC LETTER ATTACHMENT- A photocopy of a 10 July 1998 two-page letter received from the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C., is attached to this issue of the ECONOMIC EYE ON CUBA©.