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. 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.
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NATIONAL BANK OF CUBA EXCHANGE RATES- The following are the biweekly
official exchange rates between the Republic of Cuba Convertible Peso,
equal to one U.S. Dollar, and selected international currencies as of 28
May 1999. The National Bank of the Republic of Cuba cautions that
these rates do not necessarily reflect the exchange rates at all Republic
of Cuba government-operated banks as each bank is authorized to establish
its own exchange rates:
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U.S. MEDICAL/HEALTHCARE EXHIBITION SCHEDULED FOR 25 JANUARY 2000- Westport, Connecticut-based PWN Exhibicon International L.L.C., has confirmed that the U.S. Medical/Healthcare Exhibition will be held in the city of Havana from Tuesday, 25 January 2000, to Saturday, 29 January 2000. The U.S. Medical/healthcare Exhibition has been licensed by the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C. Individuals authorized to participate in the U.S. Medical/Healthcare Exhibition include executives and representatives of United States-based companies and their subsidiaries that manufacture, distribute, market, and retail, health care sector informational materials, medical equipment, medical instruments, medical supplies, medicated products, medicines, and pharmaceuticals. For information regarding participation, sponsorship, and costs, please contact Mr. Peter W. Nathan at telephone (203) 222-8660 or facsimile telephone (203) 222-8335.
JUNE 1999 ISSUE OF CIGAR AFICIONADO HAS SALES INCREASE OF 62% IN CUBA- The June 1999 issue of Cigar Aficionado magazine thus far has an increase in distribution of 62% above the previous issues of the magazine distributed within the Republic of Cuba. The cover story of the June 1999 issue is “CUBA: Is It Time To End The Embargo?” and the issue contains a “Complete Travel Guide For Americans.” Cigar Aficionado, which has the largest distribution within the Republic of Cuba of any United States-published magazine, is published by New York City, New York-based M. Shanken Communications, Inc. Other magazines published by M. Shanken Communications include: Wine Spectator, Food Arts, Impact, Impact International, Market Watch, Hamptons Country, Aspen Country, and the Cigar Insider newsletter.
UNITED STATES CITIZENS PARTICIPATE IN REGATTA AND MARLIN TOURNAMENT- Mr. Jose Miguel Diaz Escrich, Director of the Hemingway Marina and Nautical Club, a subsidiary of the Republic of Cuba government-operated Cubanacan S.A., reported that 292 United States-registered vessels would participate in sailing events and in fishing events within the Republic of Cuba from 31 May 1999 to 5 June 1999. Mr. Diaz reported that 242 boats and more than 1,000 individuals subject to United States law were expected to participate in the annual Havana Cup Regatta from Tampa, Florida, to Havana; and that an additional 50 vessels were expected to participate in the annual Ernest Hemingway Marlin Tournament. Mr. Diaz reported that Republic of Cuba government-operated companies and Republic of Cuba-based joint ventures were sponsoring the events, including payments (entry fees, fuel, electricity, etc. at the Hemingway Marina and Nautical Club), thus complying with Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C., regulations for “fully hosted travel” to the Republic of Cuba for individuals subject to United States law. The OFAC defines the term “fully hosted” as all expenses within the Republic of Cuba (including travel to and from the Republic of Cuba if using a Republic of Cuba government-operated air carrier, such as Cubana Airlines, or other means of transportation operated by a Republic of Cuba government-operated entity) on behalf of the individual subject to United States law are paid for by an individual or entity not subject to United States law. No direct or indirect payments are permitted. A “fully hosted” traveler may return to the United States with an unlimited amount of informational materials (books, magazines, newspapers, music tapes, video tapes, etc.) and an unlimited amount of artwork. A “fully hosted” traveler may not return to the United States with any other Republic of Cuba-produced products (such as cigars, rum, coffee, tee shirts, etc.). Of 1,500 vessels that docked at the Marina Hemingway in 1998, approximately 60% were United States registered.
YORK MEDICAL BEGINS PHASE II CLINICAL TRIALS OF CUBAN CANCER VACCINE-
Mississauga, Canada-based York Medical Inc., reported that Health Canada
(similar to the Food and Drug Administration of the United States Department
of Health and Human Services) had approved the start of a Phase II clinical
trial to evaluate its cancer vaccine in advanced lung cancer patients.
York Medical is a licensing and development company established for the
purpose of commercializing innovative life-sciences products and technologies
originating in the Republic of Cuba. The following is a summary of
a media release by York Medical: The vaccine contains recombinant human
epidermal growth factor (EGF) conjugated to a highly immunogenic recombinant
bacterial protein, P64. The goal of the vaccine is to stimulate the
body's immune system to produce anti-EGF antibodies to inhibit the growth
of EGF receptors over expressing cancer cells by removal of available EGF.
The randomized Phase II clinical trial, under the direction of Dr. Mark
Vincent as lead investigator at the London (Canada) Regional Cancer Centre,
will assess the safety and immunogenicity of the vaccine in stage III or
IV patients with non small cell lung cancer. Secondary objectives
will be the preliminary assessment of efficacy (survival benefit, objective
response) and quality of life. Lung cancer incidence is increasing,
especially in women. In 1996 there were over 180,000 new cases in the United
States with approximately 50% more than that in Europe and Japan.
Surgery is currently the primary and most effective treatment for early
disease. The addition of radiotherapy and chemotherapy results is
only marginally significant prolongation of survival. In patients with
advanced non small cell lung cancer, stages IIIb or IV, who are unresponsive
to therapy or refuse therapy, the median survival is approximately four
months. The expression of EGF receptor (EGF-r) is important for the
growth regulation of some types of epithelial tumors. Over expression of
EGF-r may be associated with the continuing
growth of cancer cells, metastatic spread and poor prognosis.
The vaccine was developed by Republic of Cuba government-operated Centre
of Molecular Immunology (CIM), which has a joint venture with York Medical.
A Phase I study demonstrated the safety and immunogenicity of the vaccine,
supporting the submission of the Phase II Canadian Investigational New
Drug (IND) application. In a further ongoing study within the Republic
of Cuba involving advanced stage lung cancer patients not amenable to further
standard treatment, the mean and median survival times in patients showing
an immunogenic response are significantly longer than either historical
controls or non-responders. Interim results had three patients surviving
18 months compared to the approximate four month expected median survival
time. In addition to its EGF vaccine, York Medical is developing,
also through its joint venture partner CIM, a family of therapeutic and
diagnostic products based on its monoclonal antibody targeting solid tumors
including head, neck, breast and lung. DiaCIM-h-R3, designed to identify
tumors over-expressing EGF-r, was the first of these products to be approved
by Health Canada to enter clinical trials in Canada.
ACCOR TO DOUBLE NUMBER OF PROPERTIES MANAGED IN CUBA- Evry Cedex, France-based Accor S.A reported that the company would double within the next eighteen months the number of properties managed within the Republic of Cuba, from five hotels to ten hotels, and have 2,000 rooms under management by December 1999. Accor S.A. manages properties owned by Republic of Cuba government-operated Gran Caribe S.A. Accor S.A. plans to eventually manage thirty hotels within the Republic of Cuba. Accor S.A. and Minneapolis, Minnesota-based Carlson Companies (1998 revenues US$22 billion) are partners in Carlson-Wagonlit Travel, the second-largest travel network in the world with 4,100 locations in 125 countries.
GRUPO SOL MELIA OPERATIONS UPDATE- Madrid, Spain-based Grupo Sol Melia S.A. reported that its three properties in the resort area of Varadero, 140 kilometers east of the city of Havana, which are operated in conjunction with Republic of Cuba government-operated Cubanacan S.A., would have gross revenues of US$80 million in 1999, more than expected. The twelve properties (4,200 total rooms) within the Republic of Cuba operated by Grupo Sol Melia S.A. are expected to have gross revenues exceeding US$153 million. The company plans to operate twenty properties (6,200 rooms) within the Republic of Cuba by 2001.
BASQUE (SPAIN) COMPANIES INCREASE ACTIVITY- Basque, Spain-based companies are increasing their commercial activity within the Republic of Cuba, reported Mr. Conrado Hernandez, Director of the city of Havana office of the Basque government’s Sociedad para la Promocion y Reconversion Industrial. During the last eight months BK-Ceti, Ecomat, and Orona have established joint ventures and economic associations to produce valves, produce pumps, produce high pressure gas tanks, and manufacture elevators. Projects under negotiation include: 1) the complete modernization of a sugar mill, including plantations and by-products production 2) the modernization of the Republic of Cuba’s largest steel works 3) modernization of a nickel plant 4) modernization of thermoelectric plants and 5) the marketing of Republic of Cuba-produced pharmaceuticals to countries in Europe.
LUGGAGE WRAPPING SERVICE PLANS EXPANSION- Argentina-based Sugai-Bags reported that its cellophane luggage wrapping economic association with Republic of Cuba government-operated Empresa Cubana de Aeropuertos y Servicios was wrapping an average of 150 pieces of luggage per day at a price of US$4.00 per piece of luggage. The economic association operates at the Jose Marti International Airport in the city of Havana and at the Juan Gomez International Airport in Matanzas, 140 kilometers east of Havana. Additional airports are expected to be added.
TRINIDAD AND TOBAGO SIGN INVESTMENT PROTECTION AND PROMOTION AGGREEMENT- H.E. Ralph Maraj, Minister of Foreign Relations of Trinidad and Tobago, signed an Investment Promotion and Protection Agreement, two agriculture technical cooperation accords, and an agreement on drug trafficking. Trinidad and Tobago is the Republic of Cuba’s largest Caribbean Sea-area trading partner, with bilateral trade estimated at US$50 million in 1998. Trinidad and Tobago exports petroleum, petroleum-related products, and petroleum-related chemicals to the Republic of Cuba and imports construction materials, prefabricated housing materials, and shellfish.
FINANCE MINISTER WARNS OF INFLATIONARY PRESSURES- H.E. Manuel Millares, Minister of Finances and Prices of the Republic of Cuba, warned that a five-year-old strategy to increase the value of the Peso and to stabilize the value of the Peso was in danger due to a recent 20% to 30% increase in salaries to approximately 1 million of the 2.7 million Republic of Cuba nationals working in education, healthcare, law enforcement, and other sectors. The increase in salaries came after a ten year Peso wage freeze and is expected to add more than 600 million Pesos this year to the 9.45 million Pesos in circulation at the end of 1998.
EMPLOYEE THEFT INCREASING- Republic of Cuba government-operated media has reported that Republic of Cuba nationals who are employees at the more than 1,000 Republic of Cuba government-operated U.S. Dollar retail stores (not including food and beverage outlets) are systematically stealing from customers. Visits by 4,000 inspectors to the U.S. Dollar retails stores from January 1999 through March 1999 discovered 1,700 violations, all of which involved the overcharging of customers, with employees presumably keeping the difference. The inspectors found that employees often 1) removed price tags 2) sold out-of-date products 3) introduced their own products and 4) in general overcharged customers. Other violations included double-charging and not recording sales. Similar problems, such as 1) reducing serving portions 2) reducing alcohol levels in drinks and using ice to decrease the quantity of liquids and 3) over charging are frequently reported at food and beverage outlets.
CIGAR PRODUCTION UPDATE- H.E. Oscar Basulto, Vice Minister of Agriculture of the Republic of Cuba, reported the country’s 51 cigar factories produced 50 million cigars for export from January 1999 through April 1999. He said that nine new cigar factories would be functioning in 1999. Republic of Cuba government-operated Habanos S.A., the exclusive worldwide marketer of Republic of Cuba-produced cigars, reports that 200 million cigars will be produced in 1999, compared to 160 million cigar produced in 1998, of which a reported 126 million cigars were exported reportedly earning gross revenues of US$170 million.
SUGAR HARVEST 3.796 MILLION TONS- The Republic of Cuba sugar harvest as of 25 May 1999 was 3.796 million tons of raw sugar, an increase of 18% from the 3.2 million tons of raw sugar produced during the 1997-1998 harvest (December-May). The Republic of Cuba exports all but approximately 600,000 tons of raw sugar produced. Reportedly, the cost to produce one ton of raw sugar within the Republic of Cuba is US$164.00.
NON-SUGAR AGRICULTURE PRODUCTION REPORTEDLY INCREASED 26% THUS FAR IN 1999- Non-sugar agriculture production from January 1999 through April 1999 reportedly increased 26%, compared to the same period in 1998. Root and vegetable production reportedly increased 35%.
NEW FOREIGN MINISTER APPOINTED- H.E. Dr. Fidel Castro Ruz, President of the Republic of Cuba, named Mr. Felipe Perez Roque (34 years of age) as Minister of Foreign Affairs of the Republic of Cuba, replacing H.E. Roberto Robaina, who had served in the position since 1993. The government of the Republic of Cuba reported that the decision was due to the “tense international situation, its importance for our country and the rest of the world, and need for a more rigorous, profound, systematic, and energetic work” in the international arena. Minister Perez had served for the last seven years as a personal assistant to President Castro, and, since 1993, as a member of the Council of State of the Republic of Cuba. He is a deputy of the National Assembly of People’s Power of the Republic of Cuba, and has been a member of the Central Committee of the Communist Party of the Republic of Cuba since 1991. In the late 1980’s, he was the President of the Federation of University Students. He is a mathematics teacher by training.
12 July 1999 to 13 July 1999- Mr. John S. Kavulich II, President of the U.S.-Cuba Trade and Economic Council, will be speaking in Toronto, Canada, on the subject of “Accessing International Financing and the Current and Future Role of United States Investors” at the Cuba Business Roundtable sponsored by New York City, New York, office of London, United Kingdom-based The Economist Conferences. The Cuba Business Roundtable will be held at the Four Seasons Hotel in Toronto. For additional information about the conference, contact telephone: (212) 554-0659, facsimile telephone (212) 698-9732, E-mail: cateambrose@eiu.com, Internet: http://www.eiu.com
15 July 1999- Mr. John S. Kavulich II, President of the U.S.-Cuba Trade and Economic Council, will be speaking in Washington, D.C., on the subject of “Cuba: Production, Consumption, and Imports of Food and Agricultural Products” at the annual Attaché Seminar at the Marriott Hotel at Metro Center sponsored by the Washington, D.C.-based U.S. Agricultural Export Development Council. The annual Attaché Seminar is attended by approximately 300 individuals. For additional information about the Attaché Seminar, contact telephone: (202) 887-8992, facsimile telephone (202) 887-8993, E-mail: usaedc@msn.com