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 since 1 October 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 of the Republic of Cuba maintains a fixed exchange rate for its international dealings and a more flexible exchange rate for domestic use.  The government of the Republic of Cuba 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.
 

CADECA Buy	CADECA Sell	From / To
21	22	2 October 1999 through 5 December 1999
20	22	13 September 1999 to 1 October 1999
20	20	1 September 1999 to 12 September 1999
20	21	13 August 1999 through 31 August 1999
22	22	16 June 1999 to 12 August 1999
22	21	13 April 1999 through 15 June 1999
21	21	15 March 1999 to 12 April 1999
20	21	4 March 1999 to 14 March 1999
21	21	19 February 1999 to 3 March 1999
21	20	13 January 1999 to 18 February 1999
21	22	26 November 1998 to 12 January 1999
21	21	15 July 1998 to 25 November 1998
19	21	1 April 1998 to 14 July 1998
20	22	12 March 1998 to 31 March 1998
21	23	11 February 1998 to 11 March 1998
23	23	August 1997 to 10 February 1998

DONALDSON, LUFKIN & JENRETTE HAS INVESTMENT IN CUBA-RELATED INSURANCE COMPANY- A subsidiary of New York City, New York-based Donaldson, Lufkin & Jenrette (1998 assets exceeding US$50 billion) will be one of the owners of the newly-established London, United Kingdom-based HLF Insurance Holdings (which will have revenues of approximately US$400 million and a presence in forty-one countries).  HLF Insurance Holdings, will reportedly become the sixth-largest insurance brokerage in the world.  Donaldson, Lufkin & Jenrette is a subsidiary of New York City, New York-based The Equitable Companies Incorporated (1998 assets exceeding US$150 billion) which is a subsidiary of Paris France-based AXA SA.  Approximately three years ago, Donaldson, Lufkin & Jenrette purchased London, United Kingdom-based Phoenix Partnership (now known as DLJ Phoenix).  In March 1999, DLJ Phoenix established DLJ Phoenix Private Equity Limited, a venture capital fund with non-United States-based investors and United States-based investors.  HLF Insurance Holdings will be created from the merger of London, United Kingdom-based Lambert Fenchurch PLC and London, United Kingdom-based Heath Group.  The new company will have a substantive market position in marine insurance, aviation insurance, protection and indemnity insurance, reinsurance, international construction insurance, professional indemnity insurance, kidnap and ransom insurance, and fine arts insurance.  In November 1998, Lambert Fenchurch PLC, a broker for London, United Kingdom-based Lloyds of London, signed an agreement with Republic of Cuba government-operated National Bank of Cuba, whereby Lambert Fenchurch PLC agreed to serve as guarantor (as a broker) for US$100 million in trade credits.  The agreement, a form of political risk insurance, was to permit Republic of Cuba government-operated companies to obtain financing for trade and investments, and result in lower interest rates (currently between 14% and 22% on an annual basis).  Thus far, none of the funds have been made available due to existing financial obligations to third countries by the National Bank of Cuba having yet to be resolved.  London, United Kingdom-based Lambert Fenchurch Marine Group Limited, through its Hull and Liability Division, provides insurance for much of the Republic of Cuba’s maritime shipping activity.  Prior to the merger with Heath Group, Lambert Fenchurch PLC reported that it was the 4th-largest insurance brokerage in the United Kingdom and the 8th-largest insurance brokerage in the world.

INTERNATIONAL CHAMBER OF COMMERCE TO ESTABLISH OFFICE IN HAVANA- Mr. Adnan Kassar, President of the International Chamber of Commerce (ICC), reported that the organization will establish an office in the city of Havana in conjunction with the Republic of Cuba government-operated Chamber of Commerce of the Republic of Cuba.  The ICC reports 7,000 members in 137 countries.  Mr. Kassar reported that the Chamber of Commerce of the Republic of Cuba will host the annual meeting of Latin American and Caribbean Chambers of Congress in Havana in October 2000.  Mr. Kasser is also the Chairman and Chief Executive Officer of Beirut, Lebanon-based Fransabank, which has had a representative office within in the Republic of Cuba since 1996.  Mr. Hector Manuel Perez Paez, President of the Chamber of Commerce of the Republic of Cuba, reported that the Chambers of Commerce of the group of 77 non-aligned countries will meet in Havana from 21 March 2000 to 23 March 2000.

CANADA FEED CORN IMPORT UPDATE- The Canadian Grain Commission reported that various ports within Canada exported 4,000 tons of feed corn to the Republic of Cuba in October 1999, compared to no such exports in October 1998.  A similar quantity of feed corn was reported exported from various ports within Canada in September 1999 to the Republic of Cuba, compared to no such exports in September 1998.

WHEAT IMPORT UPDATE- The Republic of Cuba imported 52,750 tons of wheat between 1 November 1999 and 24 November 1999 from ports in France.
 

Total Imports of Wheat (in tons)	Reporting Period
52,750	1 November 1999 to 24 November 1999
145,080	1 July 1999 to 1 October 1999
98,168	1 June 1999 to 30 June 1999
51,660	1 May 1999 to 26 May 1999
101,017	1 April 1999 to 30 April 1999
26,250	1 March 1999 to 31 March 1999
447,000	July 1998 to March 1999
256,000	July 1997 to March 1998

CHINA AND VIETNAM RICE IMPORT UPDATE- The government of the People’s Republic of China reported that 13,125 tons of rice were exported to the Republic of Cuba in October 1999.  The government of the People’s Republic of China reported 174,443 tons of rice exported to the Republic of Cuba for the period January 1999 to October 1999.  Approximately 200,000 tons of rice are under contract to be delivered from the People’s Republic of China to the Republic of Cuba for 1999.  The government of Vietnam is expected to export 75,000 tons to 100,000 tons of rice to the Republic of Cuba in 1999.

COFFEE EXPORT UPDATE- The International Coffee Organization (ICO) reported that the Republic of Cuba exported 480,000 kilograms (8,000 sixty-kilogram bags) of coffee in October 1999, compared to 411,960 kilograms (6,866 sixty-kilogram bags) in October 1998.  The ICO reported that from November 1998 through October 1999, the Republic of Cuba exported 4,855,740 kilograms (80,929 sixty-kilogram bags), compared to 7,585,740 kilograms (126,429 sixty-kilogram bags) from November 1997 through October 1998, reflecting the Republic of Cuba’s poor 1998-1999 coffee harvest (August through February).

LASER SURGERY USE UPDATE- According to Dr. Isaac Kaplan (a South African national residing in Israel, and considered the pioneer in the use of laser surgery) the use of laser surgery techniques are advanced within the Republic of Cuba.  Dr. Kaplan was a keynote speaker at the recently held 13th International Laser Surgery Congress in the city of Havana.  The use of laser techniques include carbon dioxide lasers and video technology to treat chronic thorax-related illnesses at the Republic of Cuba government-operated Medical-Surgical Research Center (CIMEQ).

CHINA COMPANY HAS JOINT VENTURE TO CONSTRUCT HOTEL- Beijing, People’s Republic of China-based, People’s Republic of China government-operated Construction and Engineering Corporation (CSCEG) and Republic of Cuba government-operated Habaguanex S.A., (which manages the restoration of the colonial district, known as “Old Havana,” in the city of Havana) have established a joint venture to design, construct, and operate a hotel near Havana’s China Town district.  The government of the People’s Republic of China also has a joint venture restaurant in the resort area of Varadero, 140 kilometers east of Havana, a recently established rice growing joint venture, an agreement to upgrade telecommunications, and agreements to export machinery to Republic of Cuba government-operated companies.

NICKEL PRODUCTION AND NEW REFINERY UPDATE- H.E. Marcos Portal, Minister of Basic Industry of the Republic of Cuba, reported that construction of a new nickel plus cobalt refinery continues to be planned in Moa, Holguin Province, 800 kilometers northeast of the city of Havana.  The Republic of Cuba is expected to produce approximately 70,000 tons of nickel plus cobalt in 1999, compared to 68,000 tons in 1998.  Nickel production for 1999 had originally been forecasted to be 73,000 tons.  International nickel prices have recently traded as high as approximately US$8,000.00 per ton, compared to US$4,000.00 per ton twelve months ago.  The Republic of Cuba is the world’s sixth-largest nickel producer and world’s twelfth-largest cobalt producer.  There are currently three nickel plants operating in Holguin Province.  Two of the plants are operated by the government of the Republic of Cuba, and one (located in Moa) is a joint venture with Toronto, Canada-based Sherritt International Corporation.  The joint venture includes a nickel refinery in Fort Saskatchewan, Canada.  A fourth plant (located in Camariocas, Holguin Province), which is not yet operational, has an annual production capacity 25,000 tons.  The plant was approximately 70% completed when the then-U.S.S.R. collapsed in 1991.  In May 1999, Russian Federation-based RAO Norilsk Nickel signed a Letter of Intent with Republic of Cuba government-operated Caribbean Nickel S.A. to complete the plant and to operate the plant.  In 1997, Caribbean Nickel S.A. signed a joint venture agreement valued at US$650 million with Melbourne, Australia-based Westminer Holdings Ltd., a subsidiary of Melbourne, Australia-based Western Mining Corporation (WMC), to construct a plant and refinery in the Pinares de Mayari area of Holguin Province. The venture, in which WMC holds 65% of the shares, has yet to begin construction due to previously low nickel prices and a lack of financing.  Caribbean Nickel S.A. also has a joint venture with San Felipe Mining Ltd., a subsidiary of London, United Kingdom-based Billiton Plc (the third-largest mining company headquartered in the United Kingdom), to construct a nickel plant in central Camaguey Province, approximately 500 kilometers east of Havana.  The project, in which San Felipe Mining Ltd., holds 75% of the equity, is in an exploratory phase.  Nickel produced within the Republic of Cuba is considered to be Class II with an average 90% nickel content.  Approximately 100% of the nickel produced within the Republic of Cuba is exported for refining in Canada, to countries on the European continent, and to countries in Asia.  Gross export earnings from nickel plus cobalt are the second-largest gross export-related source of U.S. Dollars, with sugar being the largest gross U.S. Dollar export earner.  Republic of Cuba government-operated National Minerals Resource Center of the Republic of Cuba reported that 1) Holguin Province has 34% (second largest) of the world's known proven reserves (800 million tons) of nickel plus cobalt 2) Holguin Province has 2.2 billion tons of probable reserves of nickel plus cobalt 3) lesser quantities of reserves of nickel plus cobalt are located in other areas of the Republic of Cuba and 4) the Republic of Cuba has the world's second largest reserves of cobalt.

REPLACEMENT OF KEROSENE WITH GAS PROGRAM TO CONTINUE- Mr. Pedro Fernandez, Director of Domestic Fuels of Republic of Cuba government-operated Cuba Petroleo, reported that the US$25 million program already commenced in the city of Havana and in the city of Santiago de Cuba (800 kilometers east of Havana) would be expanded in 2000 to include the capitals of each of the thirteen provinces within the Republic of Cuba.  The goal of the existing program is to provide 300,000 households in Havana and 100,000 households in Santiago de Cuba with liquid gas in place of kerosene.  The existing program in Havana is under the auspices of a joint venture with London, United Kingdom-based Transfigura Company.  The existing program in Santiago de Cuba is under the auspices of a joint venture with Courbevoie, France-based Elf Aquataine.  Mr. Fernandez reported that the expanded program, presumably with the same non-Republic of Cuba-based partners, would initially include 200,000 households.  He reported that during the next five years, approximately US$80 million would be 1) invested to produce gas cylinders, gas stoves, gas regulators, and related equipment within the Republic of Cuba and 2) used to import raw materials to produce the cooking gas.  H.E. Dr. Carlos Lage, a Vice President of the Council of State of the Republic of Cuba, recently reported that approximately 50% of the residents of Havana (where approximately 20% of the 11 million citizens of the Republic of Cuba reside) used gas for cooking.  The 80% of the population living outside of Havana primarily use kerosene.  Vice President Lage reported that a program valued at US$50 million had commenced to substitute imported naphtha (a petroleum derivative compound) for Republic of Cuba-produced natural gas, with a goal of increasing usage in Havana from 145,000 households to 245,000 households, which would then eliminate the need to import 87,000 tons of naphtha at a cost of approximately US$200.00 per ton, and decreasing the use of more expensive, less efficient, and dangerous kerosene.  The naphtha substitution program is reportedly being financed using credits obtained from non-Republic of Cuba-based financial institutions (public and private) which were based upon the projected savings when the program is completed.  A family of four pays a fixed rate of 3.10 Pesos per month for natural gas. When new gas meters are installed, users will pay 11 centavos per cubic meter, or an estimated 3.37 Pesos per month for a family of four.  Twenty pound cylinders of liquid gas are sold to Republic of Cuba nationals for 2.45 Pesos, and 100 pound cylinders for 12.00 Pesos.

AUGUST UNITED STATES EXPORTS TO CUBA- The Foreign Trade Division of the United States Bureau of the Census of the United States Department of Commerce in Washington, D.C., reported that the value of United States exports (defined as products exiting the borders of the United States whether sold or donated) to the Republic of Cuba in August 1999 was US$91,533.00.  The reported values are on an F.A.S. (Free Along Side Ship) basis- the cost of freight is excluded:
 

HS Code	Description	District	August 1999 Value  In US$	Year-To-Date  Value in US$
1302310000	Agar-Agar	Miami, FL		3,730
3926909810	Laboratory Ware	Miami, FL		8,226.00
49019900050	Technical, Scientific, and Professional Books	Miami, Fl.		9,429.00
8517902000	Parts For Telephonic Switching Apparatus	Miami, FL		16,000.00
8703240075	Pass Veh, Spark Ign, NESOI, NEW, 3000 cc & 6 cylinder	Miami, FL		24,000.00
9802200000	Medicinal & Pharmaceutical Products, Donated	Miami, FL		2,369,584.00
9802300000	All Wearing Apparel, Donated For Relief/Charity	Miami, FL	11,096.00	184,112.00
9802400000	Articles Donated For Relief or Charity, NESOI (Not Elsewhere Specified Or Indicated)	Puerto Rico		18,000.00
9802400000	Articles Donated For Relief or Charity, NESOI (Not Elsewhere Specified Or Indicated)	Miami, FL	80,437.00	1,213,599.00
9809005000	Shipments Under US$20,001.00, Not Identified By Kind	Miami, FL		2,545.00
TOTAL US$			US$91,533.00	US$3,849,225.00

 
MONTHLY FOOD PRICE CHECK- The following is the monthly free-market price check for the cities of Havana, Camaguey, and Santiago de Cuba, 500 kilometers and 850 Kilometers east of Havana, respectively.  This Monthly Food Price Check compares end of November 1998 prices with end of November 1999 prices.  The government of the Republic of Cuba has reported that the average monthly wage is approximately 230 Pesos (versus 217 Pesos in January 1999, 214 Pesos in 1998, and 203 Pesos in 1997).  In September 1999, the Ministry of Labor and Social Security of the Republic of Cuba reported that more than 1.5 million nationals (out of a workforce of 4,500,000) were receiving U.S. Dollar bonuses and U.S. Dollar-related bonuses, of which 334,000 workers received U.S. Dollar cash bonuses and the remainder received the right to purchase certain products sold for U.S. Dollars through certificates or receive free certain products sold for U.S. Dollars.  In July 1998, the Ministry of Finances and Prices of the Republic of Cuba reported that 1,100,000 Republic of Cuba nationals (out of a workforce of approximately 4,500,000), or 24%, were receiving U.S. Dollar or U.S. Dollar-related bonuses equal to 1 to 7 times their monthly wage.  In July 1997, approximately 1,300,000 workers (out of a then reported workforce of approximately 4,200,000), or 30%, were reported to have received U.S. Dollar or U.S. Dollar-related bonuses equal to 1 to 7 times their monthly wage.  Republic of Cuba-based analysts and non-Republic of Cuba-based analysts estimate that 35% of Republic of Cuba nationals have access to U.S. Dollars, although the percentage with access to U.S. Dollars is highest in the city of Havana, where approximately 20% of the island’s 11 million citizens reside.  The government of the Republic of Cuba reports that approximately 56% of Republic of Cuba nationals have access to United States Dollars.  All Cubans receive a limited subsidized monthly food ration (which generally provides nutrition for approximately two weeks), free health care and education, and pay no more than 10% of their wage for housing.  Workers, with the exception of the self-employed all receive various forms of social security coverage.  KEY: LB- per pound.  U- Per unit.  ( )- End of November 1998 price.  NA- not available. SSB-soda-sized bottle.  S- Soft.  H- Hard.  B- Bunch.  All prices are in Cuban Pesos.
 

Food Product	Havana	Camaguey	Santiago de Cuba
Rice (LB)	5 (5)	3.5 (3.5-4)	5 (4-5)
Black Beans (LB)	10 (15-18)	8 (13)	13 (12)
Pork (LB)	25 (25)	14 (15)	15 (14-15)
Cooking Fat (LB)	15 (15)	14 (14)	15 (15)
Lamb (LB)	25 (25)	14 (12-13)	14 (14)
Ham (LB) boned	35 (45)	29 (30)	25 (25)
Garlic (U)	2-3 (2-5)	1.5 (2-3)	.70-1 (2)
Onion (LB)	13-15 (8-10)	8 (7-8)	8 (10-12)
Tomato (LB)	15 (8-10)	5 (NA)	6 (10)
Lettuce (B)	10 (5)	3 (2)	2 (3)
Cucumber (LB)	5-7 (4)	4 (4)	1.5 (1.5)
Carrots (LB)	10 (3)	2 (3)	3 (3)
Malanga (LB)	4 (4-5)	4 (5)	4 (5)
Yucca (LB)	2 (2)	1 (1)	1 (1)
Sweet Potato (LB)	1.5 (1.5)	1 (1.2-1.4)	1 (1)
Squash (LB)	2 (3)	1 (1.2)	1 (1)
Tomato Sauce (BSB)	10 (12)	9 (10)	10 (10)
Limes (U)	.50-1 (.50-1)	.10 (.05-.10)	.10 (.10)
Oranges (U)	.50-1 (1)	.25 (.35)	.25 (.25)
Tangerines (U)	.20-.30 (.20-.30)	.20 (.33)	.20 (.25)
Grapefruit (U)	1 (1)	NA (NA)	.25 (NA)
Papaya (LB)	4 (3-4)	1.5 (1.2)	1 (1)
Banana (U) Fruit	.50-1 (.50-1)	.50-.60 (.50-.60)	.50-.60 (.50-1)
Banana (U) Soft Cooking	1-4 (2-5)	1-1.5 (1-3)	1.5-2 (2-3)
Banana (U) Hard Cooking	.50 (.50-1)	.25 (.33)	.15 (.30-.40)
String Beans (B)	8 (6)	3 (4)	2 (3.5)
Avocado	NA (6-8)	NA (NA)	NA (2-5)
Peanuts (LB)	9 (8)	8 (7)	10 (8)
Corn Meal (LB)	5 (4)	3.5 (3)	3 (3.5)

Mr. John S. Kavulich II, President of the U.S.-Cuba Trade and Economic Council, has accepted an invitation from the Commonwealth of Massachusetts Port Authority (Massport) to deliver the keynote address at a seminar, “Is Cuba a Market for US Medical Sales” on 9 December 1999 from 10:00 a.m. to 12:00 p.m. at the World Trade Center Boston in Boston, Massachusetts.  The seminar is being sponsored by the International Marketing Department of Massport which assists New England-based companies with identifying commercial opportunities.  For additional information, please contact Ms. Margot N. DeNoie, Trade Representative for Latin America of Massport at telephone (617) 476-4122 or E-mail: mdenoie@massport.com

Mr. John S. Kavulich II, President of the U.S.-Cuba Trade and Economic Council, has accepted an invitation from Ronan, Montana-based Travel Learning Conferences, Inc., to speak at the annual Nonprofits in Travel Conference (NPTC) at the Omni Shoreham Hotel in Washington, D.C., on 10 February 2000.  The NPTC is “the premiere national forum for nonprofit organizations offering life-long learning through educational travel programs.  The mission of these organizations is educational, and they use travel revenue to subsidize their non-travel programs, provide educational outreach, and maintain strong and loyal connections with members/alumni.”  For additional information, please access www.nptc2000.com on the Internet or contact Ms. Sara Swan, Program Coordinator, at telephone: (406) 676-2255 or facsimile: (406) 676-8524 or e-mail: tlc@ronan.net