U.S. DOLLAR UNCHANGED AGAINST THE PESO- Republic of Cuba government-operated Cajas de Cambio S.A. (CADECA) sold the Convertible Peso, equal to US$1.00, for 22 Pesos and purchased the U.S. Dollar for 21 Pesos as it has since 13 April 1999.  CADECA had sold the Convertible Peso for 21 Pesos and purchased the U.S. Dollar for 21 Pesos from 15 March 1999 to 12 April 1999.  CADECA purchased the U.S. Dollar for 20 Pesos and sold the U.S. Dollar for 21 Pesos from 4 March 1999 to 14 March 1999. CADECA sold the Convertible Peso, equal to US$1.00, for 21 Pesos and purchased the U.S. Dollar for 21 Pesos from 19 February 1999 through 3 March 1999. CADECA had sold the Convertible Peso, equal to US$1.00, for 21 Pesos and purchased the U.S. Dollar for 20 Pesos from 13 January 1999 to 18 February 1999. CADECA purchased the U.S. Dollar for 21 Pesos and sold the Convertible Peso for 22 Pesos from 26 November 1998 to 12 January 1999.  CADECA purchased the U.S. Dollar for 21 Pesos and sold the U.S. Dollar for 21 Pesos from 15 July 1998 through 25 November 1998. CADECA purchased the U.S. Dollar for 19 Pesos and sold the U.S. Dollar for 21 Pesos from 1 April 1998 to 14 July 1998. CADECA 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.  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.

UNITED STATES LAW FIRM TO CONSULT WITH CUBA LAW FIRM ON BEHALF OF CLIENT- Attorneys within an office located outside of the United States of one of the largest law firms in the United States have been asked by a non-United States-based corporate client to identify Republic of Cuba-based legal counsel with respect to a transaction between the non-United States-based corporate client and a Republic of Cuba government-operated entity located in a third country. The Republic of Cuba-based legal counsel will then be paid directly by the non-United States-based corporate client of the United States-based law firm.  Attorneys within the office located outside of the United States of the United States-based law firm will then interact with the Republic of Cuba-based legal counsel with respect to the legal matter.

ARAMARK CORPORATION PROMOTING CUBAN FOOD AT BASEBALL GAME- Philadelphia, Pennsylvania-based ARAMARK Corporation (1998 revenues US$6.4 billion) issued a national media release promoting the company’s “Cuban-influenced menus” being offered at the 3 May 1999 exhibition baseball game between the Baltimore, Maryland-based Baltimore Orioles Major League Baseball Team and the National Team of the Republic of Cuba.  The exhibition baseball game will be played at Baltimore, Maryland’s Oriole Park at Camden Yards.  ARAMARK Corporation is a global managed services company providing food and support services, uniform and career apparel, and childcare and early education programs.  ARAMARK Corporation has more than 150,000 employees serving 15 million people at 500,000 locations in 12 countries every day. ARAMARK Corporation is the “leading provider of fan amenities including concession, premium catering, restaurant, retail merchandise and cleaning services for stadiums and arenas serving more than 25 professional sports teams and major league sports teams and 50 million fans each year at more than 45 sporting and concert venues.  ARAMARK Corporation also manages services at 19 convention centers and 15 national and state parks, resorts and other tourist destinations.” ARAMARK Corporation is the contract food service and retail service provider at Oriole Park at Camden Yards.  According to the media release, “There will be a special party from 5:00 p.m. to 7:30 p.m. in the Bullpen area.  The featured dish will be Lechon Asado, Cuban-style pork sandwiches made from whole pigs marinated and seasoned in garlic, mojo, bitter orange, and fresh lemon and very slowly flame- roasted.  The Lechon Asado will be served with Moros con Cristiano (traditional slow-cooked black beans and rice) and Tostones (fried green plantains).  Thirsty fans can choose ‘Cuban’ beer [presumably Hatuey brand produced by Hamilton, Bermuda-based Bacardi International Limited; Hatuey is not produced within the Republic of Cuba] or mojitos, a drink made with rum, simple syrup, fresh mint, and a splash of soda.  Salsa dancers and Latin music provided by the band Cubanismo will entertain the crowds. At Bambino's Rib Stand, Cuban-spiced ribs and Lechon Asado will be served, and even Boog's BBQ will add the slow-cooked pork sandwiches to its traditional line-up.  The Pastimes Cafe menu will include Picadillo, a traditional Spanish stew of ground beef, tomatoes, green peppers, green olives and potatoes served over rice with fried plantains. The Eutaw Street area will be decorated with a Caribbean theme.”  The exhibition baseball game will be broadcast live in most areas of the United States by Los Angeles, California-based FOX Sports Net, a subsidiary of Los Angeles, California-based Fox Broadcasting Company.  FOX Sports Net will also broadcast a taped version of the exhibition baseball game during the same evening.

CANADA’S YORK MEDICAL ANNOUNCES RECEIPT OF UNITED STATES PATENTS- Mississauga, Canada-based York Medical, Inc., announced that two United States patents have been granted on products York Medical has licensed from the Republic of Cuba government-operated Centre of Molecular Immunology.  York Medical is a licensing and development company established for the purpose of commercializing innovative life-sciences products and technologies originating in Cuba.  All products in development by York Medical are available under license for the major world markets.  United States patent No. 5,891,996, granted on 6 April 1999, covers York Medical’s new humanized and chimeric monoclonal antibodies (MAbs) that recognize epidermal growth factor receptor (EGF-r) and pharmaceutical compositions containing the antibodies.  York Medical’s group of MAb-based oncology products includes a diagnostic to EGF-r, a stand-alone therapeutic and a radio labeled therapeutic.  United States patent No. 5,894,018, granted on 13 April 1999, covers York Medical’s EGF cancer vaccine and pharmaceutical compositions containing autologous EGF and method of treating EGF-dependent diseases.  The patent was previously granted in Canada in January 1999 and in Japan in September 1998.  According to the media release, “the granting of these patents in the United States extends York Medical’s proprietary rights in the area of monoclonal antibodies and supports our position as a leading source of novel anticancer therapies,” said Mr. David G.P. Allan, President and Chief Executive Officer of York Medical. “With each of the products covered by these patents in or about to enter Phase II clinical trials, we are in a position to offer potential licensees an extensive range of advanced, proprietary anti-cancer products.”  For information, contact York Medical at telephone (416) 864-3580; Facsimile (416) 864-1043; E-mail: dallan@yorkmedical.on.ca

CANADA’S NORTHERN ORION EXPLORATIONS REPORTS LOSS FROM GOLD OPERATIONS IN CUBA- Vancouver, Canada-based Northern Orion Explorations Limited, reported financial results for the fourth quarter of 1998 and for the year ended 31 December 1998. A substantial loss was reported and partially attributed to the “writedown of the Delita [Mantua mine] project in Cuba resulting from the continued low gold price.”  For the year ended 31 December 1999, “the Mantua mine in Cuba produced 16,323 ounces (of which Northern Orion’s share is 8,161 ounces) of gold at an average cash cost of US$244.00 per ounce.  Production in the fourth quarter of 1998 was 4,850 ounces of gold at an average cash cost of US$267.00 per ounce. The continued low gold price and poor leach kinetics resulted in a re-evaluation of the mine and process plans, leading to a significant increase in the process cust-off grade and resulting in lower forecast total gold production and higher project cash costs.  The gold phase of operations at Mantua are expected to continue until mid 1999.”  The media release continues: “With the collapse of metal prices and mining and exploration equities, Northern Orion continues to take the steps necessary to reduce its level of exploration activity and other expenditures.  This will allow the Company to conserve its resources and focus its efforts on its highest priority projects [in] … and Mantua.”

FRENCH COMPANY TO CONSTRUCT HEALTH AND BEAUTY RESORT- Paris, France-based Ebrard Group and Republic of Cuba government-operated Servimed S.A., announced plans to construct a health and beauty resort on an islet located off the northern coast of Villa Clara Province, 270 kilometers east of the city of Havana.  The resort, the first of its kind in the Republic of Cuba, is scheduled to be completed in 2001.  Last month, Ebrard Group announced an agreement with Servimed S.A., to upgrade thermal spas and to market mud-based Republic of Cuba-produced cosmetics and healthcare products.  Servimed, a subsidiary of Republic of Cuba government-operated Cubanacan S.A., is the primary provider of U.S. Dollar-based healthcare tourism.

US$14 MILLION OIL PIPELINE UNDER CONSTRUCTION- The Ministry of Basic Industry of the Republic of Cuba reported that construction had commenced on a 45 kilometer, US$14 million pipeline linking the oil fields located in the resort area of Varadero, Matanzas Province, 140 kilometers east of the city of Havana, with an existing pipeline linking the super tanker port in Matanzas Province with Cienfuegos, 250 kilometers southeast of Havana.  The new pipeline, expected to be completed in 2000, will transport oil from one of the Republic of Cuba’s most productive oilfields to the supertanker port in Matanzas Province without having to be transported through waters surrounding the tourism resort area of Varadero.  The pipeline is expected to save more than US$11 million in annual shipping costs, as well as, protecting the environment in Varadero.

WHEAT IMPORT UPDATE- The Republic of Cuba imported 48,411 tons of wheat from 1 April 1999 to 21 April 1999 from the port of Rouen, France.
 

Total Imports of Wheat (in tons)	Reporting Period
48,411	1 April 1999 to 21 April 1999
35,286	1 April 1999 to 14 April 1999
22,161	1 April 1999 to 7 April 1999
26,250	1 March 1999 to 31 March 1999

RICE IMPORT UPDATE- The Republic of Cuba imported 11,000 tons of rice on 27 April 1999 from the port of Rouen, France.
 

Total Imports of Rice (in tons)	Reporting Period
11,000	27 April 1999

GOVERNMENT PLANS TO COMPLY WITH WTO SUBSIDY ELIMINATION- H.E. Manuel Millares, Minister of Finances and Prices of the Republic of Cuba, confirmed that Republic of Cuba government-provided subsidies to Republic of Cuba government-operated companies would be eliminated by 2003, in compliance with the rules of the World Trade Organization (WTO), of which the Republic of Cuba is a member.  Subsidies, mainly to the sugar industry (710 million Pesos) and non-sugar agriculture (315 million Pesos), were a reported 1.3 billion Pesos in 1998, compared to more than 4 billion Pesos in 1994.  The 1999 budget of the government of the Republic of Cuba includes 1.1 billion Pesos for subsidies, mainly to the sugar industry and to non-sugar agriculture.

GOVERNMENT EXPANDS COMPETITION WITH PRIVATE MARKETS- The Ministry of Internal Trade of the Republic of Cuba reported that fifteen butcher shops would be established in the city of Havana during 1999 to exclusively sell fresh pork products and processed pork products at prices below those offered at Republic of Cuba government-operated “private” farmers markets, where prices have remained stable for three years despite a stronger Peso.  Pork is the preferred meat of Republic of Cuba nationals.  The government of the Republic of Cuba previously announced the establishment of restaurants that would sell products at prices less than could be found at Republic of Cuba government-operated “private” farmers markets.

TOURISM UPDATE- The Ministry of Tourism of the Republic of Cuba reported 497,809 tourist arrivals from January 1999 through March 1999, 31.9% above the same period in 1998.  Compared with the same period in 1998, tourist days reportedly increased 23.6%, gross direct revenues and indirect revenues reportedly increased 24%, gross direct profits and indirect profits reportedly increased 26.8%, the occupancy rate reportedly increased 78.5%, and costs were reported to decrease 1.5%.  The primary sources of tourists continued to be Canada, Germany (which continues to have substantial increases), Italy, France, and Spain. The Ministry of Tourism of the Republic of Cuba previously reported that 1.7 million tourists would visit the Republic of Cuba in 1999, compared to 1.4 million tourists visiting the Republic of Cuba in 1998.  Combined direct gross tourism revenues (US$1.2 billion) and indirect gross tourism revenues (US$800 million) are expected to be US$2 billion.  Gross profits have been reported to have averaged approximately 30%.  Gross profit calculations do not include payments to non-Republic of Cuba-based companies.  Non-Republic of Cuba-based companies reportedly receive the majority share of gross profits.

NICKEL INDUSTRY HURT BY LOW PRICES- Toronto, Canada-based Sherritt International Corporation reported its nickel plus cobalt mining, refining, and sales operations, all 50%-50% joint ventures with the Republic of Cuba government operated Union de Niquel, under the auspice of the Ministry of Basic Industry of the Republic of Cuba, sustained a first quarter 1999 operating loss of CA$500,000.00 (US$365,000.00), the first such loss ever reported by the company. Sherritt International Corporation reported that despite a record 7,030 tons of nickel plus cobalt sulfide produced at its mine and processing plant located within Republic of Cuba (Moa, Holguin Province), and a record production of 722 tons of finished cobalt and 7,179 tons of finished nickel at its Fort Saskatchewan, Canada-based refinery, revenues were CA$40 million (US$28.8 million) compared to CA$51.4 million (US$37 million) during the first quarter of 1998.  Nickel prices averaged US$2.20 per pound during the first quarter of 1999, a decrease of 15% from the first quarter of 1998. Cobalt prices averaged US$15.94 per pound during the first quarter, a decrease of 36% from the first quarter of 1998.  The plant in Moa is the most efficient of three nickel plus cobalt plants operating in Holguin Province, 850 kilometers east of the city of Havana.  Nickel plus cobalt is the second-largest U.S. Dollar-earning export after raw sugar.  Given the information provided by Sherritt International Corporation, despite increased 1999 production plans to 73,000 tons, compared to 68,000 tons in 1998, and 61,500 tons in 1997, nickel plus cobalt production may be operating at overall loss thus far in 1999.  Plans to place a fourth nickel plant into operation, to construct at least two more nickel plants that would be operated as joint ventures, and the construction of a nickel refinery, have been stalled as a result of continuing depressed nickel plus cobalt prices.

CITRUS PRODUCTION UPDATE- The Ministry of Agriculture of the Republic of Cuba reported that citrus fruit production from September 1998 through March 1999 was 650,000 tons, an increase of 16% from the same period during the 1997-1998 citrus harvest (September-July).  The 1998-1999 harvest is expected to total 756,000 tons, compared to approximately 650,000 tons produced in 1997-1998, and 690,000 tons produced in 1996-1997.  The Republic of Cuba’s most productive citrus orchard, Victoria de Giron, accounted for 317,000 tons through March 1999.  Victoria de Giron and those on Isla de la Juventud (the location of the country’s largest grapefruit orchards) are operated with Tel Aviv, Israel-based Grupo BM.  The thirteen other fruit orchards within the Republic of Cuba are operated by Republic of Cuba government-operated Corporation National del Citrico (CNC).  Oranges account for 60% of the total citrus production; grapefruit account for 30% of total citrus production, and limes and tangerines account for a combined 10% of total citrus production.  The majority of the annual citrus production is processed into orange frozen concentrate (65 degree Brix) and grapefruit frozen concentrate (58 degree Brix), other types of frozen concentrate, juices, and oils for export to countries located in Europe, and to Mexico and Canada. Approximately 50,000 tons of fresh fruit, mainly grapefruit, is shipped to countries in Europe, The Americas, and to Canada. The Republic of Cuba was the world’s largest citrus exporter, producing one million tons of fruit during the 1989-1990 harvest, 800,000 tons of which was exported to the former U.S.S.R. and former U.S.S.R.-dominated countries.

SUGAR PRODUCTION UPATE- H.E. General Ulises Rosales del Toro, Minister of Sugar of the Republic of Cuba, reported on 25 April 1999 that 3.6 million tons of raw sugar had been produced, with 73 of 114 mills that participated in the raw sugar harvest still grinding.  Raw sugar production could be 3.7 million tons to 3.8 million tons when grinding is completed in May 1999.  The 1997-1998 raw sugar harvest (December to May) produced 3.2 million tons.

SUGAR PRODUCTION REPORTED TO BE PROFITABLE DESPITE LOW PRICES- H.E. General Ulises Rosales del Toro, Minister of Sugar of the Republic of Cuba, reported that said the 1998-1999 raw sugar harvest would be profitable despite international sugar prices which are at their lowest levels in fourteen years.  He said that to produce one ton of raw sugar within the Republic of Cuba during the 1998-1999 raw sugar harvest cost an average of 331 Pesos or US$164.00, compared to 400 Pesos during the 1997-1998 raw sugar harvest.  Minister del Toro explained that while international raw sugar prices now averaged US$.0417 per pound (US$140.00 per ton to US$160.00 per ton), the 1998-1999 raw sugar harvest had been contracted to non-Republic of Cuba-based purchasers at an average of US$200.00 per ton.  Republic of Cuba 1998-1999 sugar exports are expected to be 3.1 million tons to 3.2 million tons worth approximately US$620 million (based upon Minister del Toro’s information), with a gross profit of approximately US$125 million.  The Republic of Cuba sugar industry is the second-largest gross direct and indirect revenue source. Tourism is the largest.  Sugar is the Republic of Cuba’s primary U.S. Dollar-earning export (45% of total Republic of Cuba reported exports in 1998) despite a decrease in raw sugar production from an average 7.5 million tons during the period 1987-1991, to less than 4 million tons during each of the last five years.  The Republic of Cuba sugar industry is the largest employer (500,000 Republic of Cuba nationals out of a total workforce of approximately 4.5 million) with, perhaps, an additional 1.5 million Republic of Cuba nationals economically dependent upon the sugar industry.  The former U.S.S.R. at one time purchased raw sugar from the Republic of Cuba at preferential prices equivalent to approximately US$800.00 per ton.

CUBALSE REORGANIZED- Republic of Cuba government-operated Cubalse Corporation has been reorganized into a holding company with seventeen subsidiaries.  Established in 1974 from what had been the Service Enterprise for the Diplomatic Corps, Cubalse was the first Republic of Cuba government-operated company to conduct transactions within the Republic of Cuba in U.S. Dollars.  Cubalse is the Republic of Cuba’s second-largest non-tourism-oriented Republic of Cuba government-operated conglomerate after Cimex S.A.  Cubalse reported 1998 gross revenues of US$266 million and reported 1998 gross profits of 27% of gross revenues, or US$71.82 million. Cubalse subsidiaries include:
 

Lares Inmobiliaria S.A.	Real estate, has nine joint ventures to construct offices and condominiums and at least four additional joint ventures are expected to be signed this year.
Meridiano S.A.	Operates more than 100 U.S. Dollar retail stores within the Republic of Cuba; Continental S.A. operates twenty-two restaurants and cafeterias, a catering company, the Burgui brand fast food chain, Bim Bom ice cream parlors, Donaneli bakeries, Aster laundries, and a golf course.
Automotriz S.A.	Automotive sales, rentals, and services; operates three vehicle agencies (Multimarcas, Peugeot, and Fiat), and 15 Oro Negro service stations.  The company is the government of the Republic of Cuba’s exclusive exporter of antique cars.
Finalse S.A.	Financing and related services
Gale y Asociados S.A	Law firm
Dita S.A.	Sale and service of computers, software, high technology equipment, and household appliances.
Orion S.A.	Construction
Inverco S.A.	Investment management; import-export activities, some Republic of Cuba-based production activity.
Raliz S.A.	Pest control, operates a veterinarian clinic, pet stores, and a pet beauty parlor.
Transport Cubalse S.A.	Truck freight transportation
Arandia S.A.	Non-commercial freight and handles all related shipping matters.
Naviera S.A.	Specializes in maritime shipping to Caribbean Sea-area countries.
Grafos S.A.	Advertising
Fotovideo S.A.	Photo and video sales, services, and editing, for commercial and non-commercial uses.
Agencia Empleadora S.A.	Identifies and places Republic of Cuba nationals as employees for Cubalse companies, joint ventures, diplomatic missions, non-Republic of Cuba-based media companies with offices within the Republic of Cuba, and international agencies.