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Austria- Shilling Denmark- Krone Norway- Krone Sweden- Krona Australia- Dollar Canada- Dollar United States- Dollar Portugal- Escudo The Netherlands- Guilder Belgium- Franc France- Franc Switzerland- Franc United Kingdom- Pound Sterling Italy- Lira Germany- Mark Finland- Markka Spain- Peseta Mexico- Peso Japan- Yen |
.0796 .1471 .1324 .1264 .6217 .6688 1.000 .00055 .4974 .0272 .1671 .6668 1.6563 .0568 .5607 .1845 .0066 .1076 .7116 |
HARD ROCK CAFE COMING TO CUBA?- Mexico City, Mexico-based ECE S.A., has established a joint venture with London, United Kingdom-based The Rank Group Plc to construct and to operate Hard Rock Cafe restaurants in all South American countries (excluding Brazil) and in the Republic of Cuba. ECE S.A. is a publicly-traded company which operates Hard Rock Cafe restaurants, AllStar Cafe restaurants, and Rainforest restaurants within Mexico. The cost of construction of a Hard Rock Cafe restaurant ranges from US$3 million to US$40 million (Orlando, Florida). Mr. Horace Dawson, Vice President for Business Affairs and General Counsel of Orlando, Florida-based Hard Rock Cafe International, Inc., the wholly-owned subsidiary of The Rank Group Plc, reports that the company has continually been approached by individuals and companies seeking franchise rights for the Republic of Cuba. Several years ago, Republic of Cuba government-operated Cubanacan S.A., the largest tourism company within the Republic of Cuba, had discussions with a Hard Rock Cafe franchisee, who has since sold the franchise rights for Caribbean Sea-area countries back to The Rank Group Plc. The Hard Rock Cafe trademark is registered within the Republic of Cuba. United States-based companies are permitted by the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C., to register trademarks and patents within the Republic of Cuba. For additional information, contact Mr. Horace Dawson of Hard Rock Cafe International, Inc., at telephone: (407) 351-6000 or Mr. Eric Zinser of ECE S.A. at telephone: 011 525 327 7120.
ROCK MUSIC GROUP WANTS TO PERFORM IN CUBA- One of the most successful non-United States-based rock music groups in history, in terms of albums sold and concert revenues, is interested in performing in Revolution Square in the city of Havana in early 1999. United States-based companies and non-United States-based companies have expressed interest in being sponsors of the performance. United States-based television program distributors have expressed interest in broadcasting the performance. Portions of the revenues from the performance may be designated for healthcare within the Republic of Cuba. Representatives of the group have visited the Republic of Cuba.
WARNER MUSIC GROUP OF CANADA AWARDS GOLD RECORD TO CUBAN GROUP- Toronto, Ontario, Canada-based Warner Music Group of Canada, has awarded a Gold Record (65,000 copies sold) for a Compact Disc (CD) produced by the "Buena Vista Social Club" under the direction of Mr. Ry Cooder, a United States-based musician. The CD has sold more than 1 million copies worldwide.
UNITED STATES UNIVERSITIES INCREASE PRESENCE IN CUBA- More than 100 United States-based university students are currently studying at Republic of Cuba government-operated universities within the Republic of Cuba. Thirty-three students of the approximately 100 students are from the University of Buffalo, New York, while the remainder are from Tulane University in New Orleans, Louisiana; Wake Forest University in Winston-Salem, North Carolina; St. Mary's University in San Antonio, Texas; Harvard University in Cambridge, Massachusetts; and Johns Hopkins University in Baltimore, Maryland. The students from Harvard University reportedly assisted with designing the botanical gardens in the city of Cienfeugos, 254 kilometers east of the city of Havana. The Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C., permits, under license, university students to participate in educational programs within the Republic of Cuba. Thus far, however, no students who are Republic of Cuba nationals have been permitted to study at universities within the United States.
FORESTRY ACT APPROVED- The National Assembly of People's Power of the Republic of Cuba approved a comprehensive Forestry Act on 21 July 1998. The 70-article Forestry Act, two years in the drafting, regulates the use of Republic of Cuba forests, creates a forestry fund, seeks to preserve precious wood species, and extend forest acreage. Currently, 21% of the Republic of Cuba's territory is covered by forests. Plans call for 27% of the national territory to be covered by forest by 2015. The Forestry Act comes at a time of increasing interest by non-Republic of Cuba-based companies seeking to use Republic of Cuba forests, and increasing environmental concerns amongst Republic of Cuba nationals.
LLOYDS OF LONDON DESIGNATES NEW AGENT- Lloyds of London designated Republic of Cuba government-operated Marinter S.A. as its new agent in the Republic of Cuba. The company replaces the single agent maintained by Lloyds in the past, and represented the company's expectations that its operations on the island would increase.
LLOYD'S REGISTER OF SHIPPING DOCUMENTS CUBAN COMPANY AND VESSELS- London, United Kingdom-based, Lloyd's Register of Shipping presented a certificate to certify compliance with the International Security Code (ISC) to Republic of Cuba government-operated Petrocost S.A., a company which is affiliated with the Ministry of Fisheries of the Republic of Cuba. ISC certificates were also presented to Republic of Cuba government-operated vessels: Coral Reef, Hyalite, and Caribbean Flower.
BRASPETRO NEGOTIATING PROJECT IN CUBA- Rio de Janerio, Brazil-based Braspetro Oil Services Company, a unit of Rio de Janeiro, Brazil-based Petroleo Brasileiro SA (known as Petrobas) is continuing to negotiate with Republic of Cuba government-operated Cuba Petroleum S.A. (Cupet) to supply offshore oil exploration/production equipment.
SPANISH TREASURY SECRETARY VISITS- H.E. Juan Costa, Secretary of the Treasury of Spain, reported that his 22 July 1998 to 26 July 1998 visit to the Republic of Cuba had further strengthened financial relations. He announced that the government of Spain would provide technical and material assistance to the National Tax Office (NTO) of the Republic of Cuba.
OFFICIAL SAYS EURO COULD REPLACE U.S. DOLLAR FOR CUBA TRADE- "Cuba stands to gain more than many Latin American countries from the 1999 introduction of the Euro," said H.E. Juan Costa, Secretary of the Treasury of Spain, speaking at a three-day seminar in the city of Havana which focused on the introduction of the Euro currency. He said that the benefits would be twofold. First, the Republic of Cuba would no longer have to exchange U.S. Dollars for various currencies when doing business with the European Union (EU), and, in the future, perhaps when doing business with other countries. Second, the Republic of Cuba will benefit from various EU cooperation programs being planned, using the Euro currency. The Republic of Cuba conducts more than 30% of its trade with companies located in EU-member countries, receives 50% of its financing and investments from the public and private sectors of EU-member countries, and receives 70% of its tourists from EU-member countries. "The Euro will save us millions," said Mr. Luis Torres, Vice President of Republic of Cuba government-operated Banco de Inversiones S.A., speaking to the 100 mostly Republic of Cuba-based business executives at the seminar, the first of a series planned about the introduction of the Euro currency. Mr. Torres explained that the United States government prohibited third countries from using U.S. Dollars when doing business with the Republic of Cuba, resulting in the Republic of Cuba having to exchange U.S. Dollars for various EU-member currencies. Mr. Torres said the constant exchanging of currencies would end with the introduction of the Euro currency, implying that part of the Republic of Cuba's foreign exchange reserves could be held in the Euro currency. He said that the European Investment Bank (EIB) would grant billions of Euro-based trade credits to countries in the Caribbean Sea-area, including the Republic of Cuba.
SPAIN NEGOTIATING TAXATION TREATY- The government of Spain expects to soon complete a taxation treaty with the government of the Republic of Cuba. In February 1998, the Republic of Cuba signed a tax treaty with Lebanon.
NEW SOL MELIA HOTEL- H.E. Dr. Carlos Lage, a Vice President of the Council of State of the Republic of Cuba, said that tourism was the most important sector of the economy and would continue to develop much faster than other sectors, such as sugar. Vice President Lage was speaking at the 20 July 1998 partial opening of the Sol Melia Confort Hotel in the City of Havana. The 409-room, five-star hotel, is the second-largest to be built in the Republic of Cuba, after the Melia Cohiba (also managed by Madrid, Spain-based, Grupo Sol Melia S.A.) and is one of eleven new hotels managed by various non-Republic of Cuba companies expected to open throughout the country in 1998. The hotel was constructed in 23 months by Spain-based Cuneca S.A. and Republic of Cuba government-operated Cubanacan S.A.. The hotel will be administered by Miramar S.A., a joint venture between Cubanacan S.A. and Grupo Sol Melia. Vice President Lage said that the tourism industry was increasing at a faster rate in 1998 than the average 19% annual rate maintained since 1990, with hotel occupancies averaging between 54% and 64%.
GOVERNMENT STUDIES NEW MEASURES TO REDUCE LIQUIDITY- H.E. Fidel Castro Ruz, President of the Republic of Cuba, said that the government would adopt new, "and perhaps less popular" measures, to reduce the money supply, as those taken to date were no longer sufficient. Senior-level Republic of Cuba government sources said that the measures would include a tax on farmers and cooperatives. A 25% decrease in raw sugar production, drought, high interest rates for financing, lower commodity export revenues, corruption, mismanagement, and other problems have many Republic of Cuba-based economists and non-Republic of Cuba-based economists predicting a decrease in the Gross Domestic Product (GDP) in 1998, a 1% to 3% increase in the budget deficit, and an increase in the number of Pesos in circulation. H.E. Manual Millares, Minister of Finances and Prices of the Republic of Cuba, said that a series of measures adopted in 1994 to reduce excess Pesos in circulation and to strengthen the Peso had proved successful through 1997, but that new measures were now required. A freeze on Peso wages; increased taxes on tobacco and alcohol; increased fees for electricity, transportation, postage, fuel, and water; a new income tax on self-employed Republic of Cuba nationals; elimination of most Republic of Cuba government subsidies; and an increased availability of Republic of Cuba-produced and non-Republic of Cuba-produced products for sale (at unit prices approximately 2.5 times wholesale cost to obtain more profits and, thus, reduce currency in circulation while simultaneously increasing available Republic of Cuba government revenues) in Pesos and in U.S. Dollars, had reduced the number of Pesos in circulation from 12 billion in 1994 to 9.5 billion as of 1 July 1998. Minister Millares said that the budget deficit had been reduced from 5 billion Pesos, or 33.5% of the GDP in 1993, to 459 million Pesos, or 2% of the GDP in 1997. He said that the Peso had increased in value from 150 Pesos to the U.S. Dollar to the current 21 Pesos to the U.S. Dollar. However, the government of the Republic of Cuba has, within the last two weeks, reduced the value of the Peso against the U.S. Dollar by 9%. Minister Millares said the measures adopted in 1994 were now losing their effect as the majority of the population had been forced to use most or all of their savings, and wealth was becoming more concentrated. According to the government of the Republic of Cuba, 14.1% of savings account holders controlled 77.8% of Peso savings in 1994, and 13.2% controlled 85% of more than 5 billion in Peso savings in 1997. Minister Millares said that the increased production of Republic of Cuba-produced products and Republic of Cuba-produced services, increasing the relationship between productivity and wages, and a continued restrictive monetary policy was required to further reduce liquidity.
COMMENTS SUGGEST POSSIBLE PRODUCE PRICE AND PERSONAL INCOME CONTROLS- Republic of Cuba government-operated Prensa Latina (PL) News Agency reported that H.E. Alfredo Jordan, Minister of Agriculture of the Republic of Cuba, said that the government would not permit urban farmers to "become rich" by selling agricultural produce. According to PL, Minister Jordan said that prices for agricultural products sold by urban farmers should be equal to the prices for agricultural products found in "traditional markets." H.E. Dr. Fidel Castro Ruz, President of the Republic of Cuba, criticized those Republic of Cuba nationals were earning, in some cases, US$1,000.00 per month from legal self-employed activities, such as operating home-based restaurants, known as Paladares, or renting their homes. At current CADECA exchange rates, US$1,000.00 would be the equivalent of 21,000 Pesos. The average monthly wage of a Republic of Cuba national is 214 Pesos, the equivalent of US$10.19, a physician may earn 400 Pesos per month, the equivalent of US$19.04. Some Republic of Cuba nationals work full time and receive a pension. President Castro said that the solution to the inequity was "taxes for those who earn more, resources for those who earn less."
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Year 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 |
1093.9 1164.1 1225.7 1348.0 1452.3 1532.5 1594.0 1630.2 1679.0 1722.0 |
676.4 690.5 666.3 672.5 924.9 880.5 898.1 959.2 1029.0 1045.0 |
417.5 471.6 559.4 675.5 527.4 651.9 695.0 671.0 650.0 677.0 |
FEES TO INCREASE FOR DOMESTIC TELEPHONE USAGE- The Ministry of Communications of the Republic of Cuba announced that Republic of Cuba nationals will have their monthly telephone service fees increased to 6.25 Pesos (approximately US$.31). The monthly telephone service fee includes 300 minutes of local telephone service, after which the price is 3 centavos (100 Centavos per 1 Peso) per minute from 6:00 a.m. to 6:00 p.m. and 2 centavos (100 centavos per 1 Peso) per minute from 6:00 p.m. to 6:00 a.m. and on Sundays and holidays. Previously, Republic of Cuba nationals residing in the city of Havana and in the city of Santiago de Cuba paid 6.25 Pesos per month and Republic of Cuba nationals residing in other cities paid 5.25 Pesos per month. Non-Republic of Cuba nationals continue to be charged US$10.00 for monthly telephone service and US$.05 per minute for local telephone calls.
FEES TO INCREASE FOR WATER USE- H.E. Dr. Carlos Lage, a Vice President of the Council of State of the Republic of Cuba, reported that US$10 million would be invested in the western part of the city of Havana to upgrade water delivery. The program will benefit 440,000 of the capital's 2.5 million residents, and include new piping, the sale of plumbing fixtures to the population, and the installation of water meters. Currently, all Republic of Cuba households pay 1 Peso per month for water service. When the new water meters are installed, the rate will then be 25 centavos per 1000 liters up to 3,000 liters, 50 centavos per 1000 liters from 3,000 to 4,500 liters, 75 centavos for the next 1,000 liters, then 1 Peso, 1.50 Pesos, etc. Vice President Lage said that Havana's water works were in poor condition- with the city using twice the water of the city of Madrid, Spain, which has twice the population of Havana. The Vice President said that US$600 million would be required to modernize the total water system in Havana.
COOKING GAS UPDATE- H.E. Dr. Carlos Lage, a Vice President of the Council of State of the Republic of Cuba, reported that while most residents of the city of Havana, where approximately 20% of the total population of the country resides, used manufactured gas for cooking, the remaining 80% of the population uses kerosene, liquid gas, and electricity. He said that a US$50 million program to substitute imported nafta (petroleum derivative compound) for Republic of Cuba-produced natural gas aimed at increasing the number of Havana users from 145,000 to 245,000, eliminating the need to import 87,000 tons of nafta at around US$200 per ton, and decreasing the use of more expensive, less efficient, and dangerous kerosene. He said that the government was implementing the program 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. The Vice President said that the program included the production of gas meters as almost none currently exist. A family of four currently pays a fixed rate of 3.10 Pesos per month. When the new meters are installed, users will then pay 11 centavos per cubic meter, or an estimated 3.37 Pesos per month for a family of four. The Vice President said that a US$25 million program was being implemented to provide 300,000 Havana households, and 100,000 city of Santiago de Cuba households, with liquid gas in place of kerosene. The Havana program is under the auspices of a joint venture with London, United Kingdom-based Transfigura Company, and the Santiago de Cuba program is under the auspices of a joint venture with Courbevoie, France-based Elf Aquataine.
TELECOMMUNICATIONS UPDATE- H.E. Dr. Carlos Lage, a Vice President of the Council of State of the Republic of Cuba, reported that US$900 million would be invested through the year 2004 to upgrade telecommunications: 1) Digitalization of the system in all major cities
PRESIDENT OF THE DEMOCRATIC REPUBLIC OF THE CONGO VISITS- H.E. Laurent Desire Kabila, President of the Democratic Republic of the Congo, made an unannounced visit to the Republic of Cuba on 23 July 1998.
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 country from 29 July 1998 to 31 July 1998. Jamaica-based Sandals Hotels and Jamaica-based SuperClubs each manage hotels within the Republic of Cuba. Air Jamaica services the Republic of Cuba.
PRESIDENT CASTRO TO VISIT BARBADOS ON 31 JULY 1998- The government of Barbados reported that H.E. Dr. Fidel Castro Ruz, President of the Republic of Cuba, will visit the country from 31 July 1998 to 2 August 1998.
PRESIDENT CASTRO TO VISIT GRENADA ON 2 AUGUST 1998- The government of Grenada reported that H.E. Dr. Fidel Castro Ruz, President of the Republic of Cuba, will visit the country from 2 August 1998 to 3 August 1998.
PRESIDENT CASTRO TO VISIT DOMINICAN REPUBLIC ON 20 AUGUST 1998- The government of the Dominican Republic reported that H.E. Dr. Fidel Castro Ruz, President of the Republic of Cuba, will visit the country for six days beginning on 20 August 1998. President Castro will visit Jamaica from 29 July 1998 to 31 July 1998. President Castro is also expected to visit Portugal this year. The Dominican Republic and the Republic of Cuba restored full diplomatic relations in April 1998, after more than thirty years.
PRESIDENT CASTRO TO VISIT SOUTH AFRICA- H.E. Dr. Fidel Castro Ruz, President of the Republic of Cuba, is expected to visit South Africa this year. The Republic of Cuba and South Africa have increased commercial relations during the last several years. President Castro is also expected to visit Portugal in 1998.
PRESIDENT CASTRO INVITED TO COLOMBIA AND ECUADOR- H.E. Dr. Fidel Castro Ruz, President of the Republic of Cuba, has been invited to attend the August 1998 inaugurations of the Presidents of Colombia and Ecuador.
CUBA SEEKS MEMBERSHIP IN INTERNATIONAL ASSOCIATION OF SOMMELIERS- The Republic of Cuba's Master Sommelier, Mr. Fernando Fernandez, during a visit to Vienna, Austria, to attend the "Fiesta del Vino" organized by the International Association of Sommeliers (ASI), said that the Republic of Cuba would seek to become a member of the organization. In conjunction with non-Republic of Cuba-based companies such as Wines and Spirits Distributors, Inc., the Republic of Cuba has increased the variety of wines sold at hotel and non-hotel-based restaurants and in Republic of Cuba government-operated retail stores.
VOLLEYBALL CHAMPIONSHIP EARNS US$1 MILLION- The Republic of Cuba men's volleyball team won the World Championship in Milan, Italy. The championship prize money is US$1 million of which the players and coaches retain a small percentage, the remainder designated for Republic of Cuba government-operated athletic programs.
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. If members have any suggestions, please contact the U.S.-Cuba Trade and Economic Council.
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