Exchange Rates Unchanged-1
National Bank Of Cuba Exchange Rates-1
RE/MAX Real Estate Has Cuba Agent-2
May 1998 United States Exports To Cuba-3
Sherritt International Six Month Report-3
Wheat Import Update-3
Citrus Update-4
New Bio-Fertilizer In Use-4
Cubanacan Reports Profits Up 23%-4
Construction Materials Update-4
Placenta-Based Biopla For AIDS Patients Is Exported-4
New Golf Courses Planned-5
Fuel Imports To Be Less Than Planned-5
Energy Savings Update-5
Energy Grid Modernization Update-5
Kings’ Gardens Tourism Up 50%-6
Government Allocates US$50 Million For Drought Relief-6
New Security Law-6
Vice President Visits Colombia-6
Monthly Food Price Check-7
Annual Member Luncheon Update-8
EXCHANGE RATES UNCHANGED- 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, as it
has since 14 July 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.
CADECA purchased the U.S. Dollar for 24 Pesos and sold the U.S. Dollar
for 24 Pesos in August 1996. 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.
NATIONAL BANK OF CUBA EXCHANGE RATES- The following are the biweekly
official U.S.-Cuba Trade and Economic Council, Inc. exchange rates between the
Republic of Cuba Convertible Peso, equal to one U.S. Dollar, and selected
international currencies as of 8 August 1998. 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.
RE/MAX REAL ESTATE HAS CUBA AGENT- The rights to operate a RE/MAX
real estate franchise within the Republic of Cuba has been held, since
November 1991, by San Juan, Puerto Rico-based RE/MAX of the Caribbean Basin,
Inc., an independently owned and operated franchise of Denver, Colorado-based
RE/MAX. For additional information, contact Mr. Patrick Murphy at
telephone (787) 728-8249. In June 1998, Parsippany, New Jersey-based
Coldwell Banker Real Estate Corporation (1997 turnover US$100 billion),
a subsidiary of Parsippany, New Jersey-based Cendant Corporation (1997
revenues US$5 billion), has awarded a master franchise agreement for Bermuda
and 30 Caribbean Sea-area countries (encompassing 750 islands) to Cayman
Islands-based Coldwell Banker Island Affiliates. The master franchise
agreement includes provisions (right of first refusal) for the Republic
of Cuba. The President of Coldwell Banker Island Affiliates, Mr.
J.C. Calhoun, is an individual subject to United States law who resides
in the Cayman Islands and is the President of Coldwell Banker Cayman Islands
Realty. Coldwell Banker Island Affiliates is a company which is controlled
by individuals not subject to United States law. Coldwell Banker
Island Affiliates reports receiving an increasing number of inquires from
individuals seeking to obtain the franchise for the Republic of Cuba, with
offers in excess of US$1 million. When awarded, however, Coldwell
Banker Island Affiliates reports that because of the size of the Republic
of Cuba, there may be multiple franchises awarded for the country.
Coldwell Banker franchises more than 2,800 independently-owned and independently-operated
real estate offices with a combined 62,000 sales associates. Coldwell
Banker Real Estate Corporation joins an increasing number of United States-based
companies that are including the Republic of Cuba in franchise agreements,
license agreements, distributorship agreements, and agency agreements for
commercial activity within the Republic of Cuba.
MAY 1998 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 May 1998 was US$37,890.00.
The reported values are on an F.A.S. (Free Along Side Ship) basis- the
cost of freight is excluded.
SHERRITT INTERNATIONAL SIX MONTH REPORT- Toronto, Canada-based
Sherritt International Corporation, the largest foreign investor within
the Republic of Cuba, with operations including nickel plus cobalt mining,
oil and gas exploration and production, power generation, communications,
tourism, food processing, and agriculture, reported January 1998 through
June 1998 net earnings of CA$20.6 million (US$13.59 million), compared
to CA$20.5 million (US$13.53 million) during the same period in 1997.
The company reported that despite an increase in nickel plus cobalt production
and oil and gas production, earnings were stagnant due to low international
commodity prices. The company reported Republic of Cuba production
of 13,588 tones of mixed nickel plus cobalt sulphides from January
1998 through June 1998, compared to 12,878 tons during the same period
in 1997, but a decrease in earnings due to a 33% decrease in nickel plus
cobalt prices from US$3.31 a pound in 1997 to the current US$2.25 a pound.
Sherritt International reported oil production in the Republic of Cuba
reached 15,000 barrels per day in June 1998.
WHEAT IMPORT UPDATE- Republic of Cuba grain imports from the
French port of Rouen on 4 August 1998 were 25,000 tons.
CITRUS UPDATE- The 1998 grapefruit harvest began on the
Isla de la Juventud, 150 kilometers south of the city of Havana.
Representatives of the Republic of Cuba's largest grapefruit orchards said
that plans were for a harvest of 35,000 tons, compared to 21,000 tons in
1997. Approximately 2,700 tons of fresh fruit will be shipped during
the month of August 1998 to customers in Canada, in Europe, and in Latin
America. Republic of Cuba-produced grapefruit ripens several weeks
ahead of grapefruit produced in the State of Florida, benefiting Republic
of Cuba exports which have been assisted (marketing and production) during
the last several years by Isreal-based, Chile-based, and Greece-based companies.
Approximately 32,300 tons of grapefruit will be processed into fresh juice,
concentrate, and oils for export.
NEW BIO FERTILIZER IN USE- Azofert, a fertilizer based upon the
micro organism Azozpirillum Brasilense, is being used as a replacement
for imported nitrogen-based fertilizers. Researchers, who developed
the product at the Republic of Cuba National Agricultural Sciences Institute,
said that the fertilizer was particularly effective with grains and cereals,
and could be applied directly or sprayed from aircraft.
CUBANACAN REPORTS PROFITS UP 23%- Republic of Cuba government
operated Cubanacan S.A., the largest of the five Republic of Cuba government
operated hotel companies (Cubanacan, Grand Caribe, Horizontes, Gaviota,
and Habaguenex), reported that tourist days, gross earnings, and net profits
had increased 23% from January 1998 through July 1998, compared to the
same period in 1997. Mr. Juan Jose Vega, President of Cubanacan,
said that the company’s more than 10,000 rooms were averaging more than
60% occupancy, mainly with vacationers from Canada, Italy, France, Germany,
and Spain. Cubanacan celebrated its 11th Anniversary on 6 August
1998. Cubanacan expects to have three new hotels with foreign participation
fully operational before the end of 1998: the [Spain-based] Sol Melia-managed
Confort Habana; the [Germany-based] LTI-managed Old Havana Parque Central;
and the [Jamaica-based] Sandals-managed Beaches Varadero, 140 kilometers
east of the city of Havana. Cubanacan began with 700 rooms and today
has sixteen subsidiaries (vehicle rental, tour operator, retail stores,
air charter, etc.) and more than 21,000 Republic of Cuba national employees.
Cubanacan reported gross revenues of approximately US$300 million in 1997.
CONSTRUCTION MATERIALS UPDATE- Mr. Mario Larrinaga, Vice
President of MATCO S.A., the Republic of Cuba government operated exporter
of construction materials, reported that sales would reach US$40 million
in 1998, 26% above the 1997 level. Mr. Larrinaga said that 85% of
exports were cement, with more than one million tons expected to be sold
mainly to the Dominican Republic and Haiti, and, to a lesser extent, other
Caribbean Sea-area and Central American-area countries. He said that
marble was also an important export, with shipments going to Mexico, Colombia,
Italy, Chile, and the Dominican Republic. Mr. Larrinaga said that
demand for prefabricated low income housing was increasing in Caribbean Sea-area
countries and in Central America-area countries, while Jamaica was the
main importer of ceramics.
PLACENTA-BASED BIOPLA FOR AIDS PATIENTS IS EXPORTED- Republic
of Cuba public health officials announced a placenta-based dietary supplement
used to strengthen patients in intensive care, appeared to improve the
health of AIDS patients. They said BIOPLA (BIOESTIMULADOR PLACENTARIO),
had increased the body weight and survival of forty six AIDS patients during
a ten-month study, and is currently being given to all Republic of Cuba
residents infected with the HIV virus. BIOPLA consists of proteins, amino
acids, and minerals obtained from human placentas after birth. BIOPLA is
currently exported to The Netherlands.
NEW GOLF COURSES PLANNED- The Ministry of Tourism of the Republic
of Cuba reported that the country would construct ten golf courses and
ten “theme” parks within the next several years. The Republic of
Cuba currently has two golf courses- one located in the city of Havana
and one located in the resort area of Varadero, 140 kilometers east of
the Havana.
FUEL IMPORTS TO BE LESS THAN PLANNED- H.E. Jose Luis Rodriguez,
Minister of Economy and Planning of the Republic of Cuba, said that there
would be less fuel available during the second half of 1998 than previously
expected due to the continuing inability of the government to obtain necessary
funding through taxes and product and service revenues (domestic and export).
He urged consumers to decrease energy and fuel consumption. Minister
Rodriguez said that power plants reduced oil consumption by 1.3% from January
1998 through June 1998, which, when combined with lower imported oil prices,
decreased overall energy costs by US$60 million.
ENERGY SAVINGS UPDATE- Mr. Alfredo Lopez, Director of the
National Electric Union of the Republic of Cuba, said peak power demand
(6:00 p.m. to 10:00 p.m.) had decreased 2.5% (50 megawatts) from January
1998 through June 1998, compared with the same period in 1997, thus lessening
blackouts caused by a lack of generating capacity. He credited a
national education campaign aimed at convincing residential and industrial
consumers to decrease energy use. Mr. Lopez said plans to provide
consumers with more energy efficient lighting and to replace refrigerator
seals were behind schedule, but that was expected to change. He said
that 203,000 of 4 million florescent lighting units (purchased from a Canada-based
company) had been sold to date, all in the city of Havana. The units
are being imported at a cost of US$5.25 each, and are sold to the population
for 10 Pesos, or US$.50. Mr. Lopez said that 186,000 of an expected
1.4 million refrigerator seals had also been replaced. The seals
are being imported for US$4.00 each, and installed for 18 Pesos (approximately
US$1.00). Mr. Lopez said that the cost of the new lighting and the
refrigerator seals would, together, save as much 10 liters of imported
fuel per household each month.
ENERGY GRID MODERNIZATION UPDATE- Mr. Alfredo Lopez, Director
of the National Electric Union of the Republic of Cuba, said that work
was proceeding on a three-year plan to upgrade eleven U.S.S.R.-built 100-megawatt
generators and three 125-megawatt Czechoslovakia-built generators, accountable
for 45% of the island's installed capacity. He said that eight of
fourteen contracts had been signed with Europe-based companies, which included
contracts to converting the existing generators to use less expensive,
and more efficient, fuels, as well as, automating various procedures, etc.
He said that work at four of the generators would be completed by the end
of 1998. Mr. Lopez said that a second 250-megawatt generator was being
installed at the Felton thermo electric plant in Holguin Province, 750
kilometers east of the city of Havana, and that a joint venture with Toronto,
Canada-based Sherritt International Corporation to use natural gas to generate
216 megawatts was on schedule in Varadero, Matanzas Province, 140 kilometers
east of Havana. He said that the Electric Union of the Republic of Cuba
had purchased from an Italy-based company 400 interrupters and 20,000 devices
to protect transformers from lightning, 100,000 used hand meters, and a
small number of used trucks and other equipment. He said that billing
procedures were being automated in an effort to improve efficiency and
to reduce fraud, 32,000 cases of which were discovered during the first
six months of 1998, compared to 52,000 cases during all of 1997.
KINGS’ GARDENS TOURISM UP 50%- The north central keys of
Cayo Coco and Cayo Guillermo reported that tourism increased more than
50% from January 1998 through July 1998. The newest Republic of Cuba tourism
resort, located 450 kilometers east of the city of Havana off Ciego de
Avila Province's northern coast, has been named Kings’ Gardens. Local
representatives of the Ministry of Tourism of the Republic of Cuba said
that they would have little difficulty meeting plans to host 130,000 tourists
in 1998, mainly from Canada, Germany, Spain, and from countries located
in Latin America. King’s Gardens’ is expected to have 5,000 hotel
rooms by the year 2001 and host 320,000 visitors.
GOVERNMENT ALLOCATES US$50 MILLION IN DROUGHT RELIEF- H.E.
Dr. Carlos Lage, a Vice President of the Council of State of the Republic
of Cuba, announced that the government of the Republic of Cuba had allocated
US$50 million from its reserves for drought relief. The Vice President
said that US$28.5 million would be used to increase current rice imports
from 300,000 tons to 373,000 tons, and to increase powdered milk imports
from 33,000 tons to 36,000 tons. He said that an additional US$10
million would go to increase food available in areas of eastern Cuba, 600
kilometers to 1,000 kilometers east of the city of Havana, and US$10 million
to improve the same area's water supply. He said that an additional
150,000 tons of fuel were allocated to the eastern part of the country
where water is currently being delivered by truck to more than 500,000
residents of the area’s 3.5 million residents, and to livestock.
The government of the Republic of Cuba reported April 1998 through July
1998 rainfall was the lowest in 26 years. The rainy season stretches
from April to October. The El Nino-related dry weather is expected
to continue. H.E. Alfredo Jordan, Minister of Agriculture of the
Republic of Cuba, reported extensive damage to livestock, food and export
crops. Sugar cane damage was not quantified, although it reportedly
was extensive in east central Cuba, responsible for approximately 40% of
the island’s total production. Damage to coffee was put at 10% to
15% of the soon-to-be-picked estimated 3,000 tons. Honey production
has also been effected. H.E. Colonel Orlando Romay, Minister of Fishing
of the Republic of Cuba, reported extensive damage to fresh water fish
cultivation due to extremely low reservoir levels across the country; with
some reservoirs, including the Republic of Cuba's largest in central Cuba,
below 10% capacity; other reservoirs were reported to be 30% below capacity;
and almost all reservoirs were reported to be at no more than 50% capacity.
Various senior-level Republic of Cuba-based diplomatic sources reported
that the government of the Republic of Cuba, consistently behind in paying
creditors, and consistently unable to import bulk food commodities necessary
to meet basic individual requirements, is seeking aid and credit.
NEW SECURITY LAW- The government of the Republic of Cuba adopted
decree law No. 186, regulating the creation of new companies and agencies
specializing in security. Senior-level officials of the government of the
Republic of Cuba reported plans to replace the current 110,000-member,
quasi volunteer security guard force with a professional one. The current
force, consisting of largely of retired Ministry of the Interior security
personnel and retired Revolutionary Armed Forces of the Republic of Cuba
personnel, has proved incapable of eliminating an increasing number of
workplace and residence crimes, such as theft. Decree law No. 186
also regulates control of radioactive materials, explosives, and economic
information.
VICE PRESIDENT VISITS COLOMBIA- H.E. Dr. Carlos Lage, a
Vice President of the Council of State of the Republic of Cuba, represented
H.E. Dr. Fidel Castro Ruz, President of the Republic of Cuba, at the 7
August 1998 swearing-in of The Honorable Andres Pastrana, President of
Colombia. Vice President Lage met with President Pastrana, other
Latin American Heads of State, various officials, and business leaders
while in the city of Bogota. The Republic of Cuba reported trade
with Colombia was US$50 million in 1997.
MONTHLY FOOD PRICE CHECK- The following is the monthly free-market
price check for the cities of Havana, Camaguey, and Santiago de Cuba, 500 and 850 Kilometers
east of the capital, respectively. This Monthly Food Price Check compares end of July
1998 prices with end of July 1997 prices. The average monthly wage is 214
Pesos (versus 203 Pesos in 1997). In July 1998, the Ministry of Finances
and Prices of the Republic of Cuba reported that 1,100,000 Republic of
Cuba nationals (out of a workforce of approximately 4,500,000), or 24%,
were receiving U.S. Dollar or U.S. Dollar-related bonuses equal to 1 to
7 times their monthly wage. Various senior-level Republic of Cuba
government officials continue to confirm, however, that more than 1,400,000
workers (out of a workforce approximately of 4,500,000), or 31%, receive
U.S. Dollar or U.S. Dollar-related bonuses equal to 1 to 7 times their
monthly wage. [In July 1997, approximately 1,300,000 workers (out
of a then reported workforce of approximately 4,200,000), or 30%, received
U.S. Dollar or U.S. Dollar-related bonuses equal to 1 to 7 times their
monthly wage]. An estimated 35% of Republic of Cuba nationals have
access to U.S. Dollars, although the percentage with access to U.S. Dollars
is highest in Havana, where approximately 20% of the island’s 11 million
citizens reside. All Cubans receive a limited subsidized monthly
food ration (which generally does not cover needs for one month), free
health care and education, and pay no more than 10% of their wage for housing.
Workers, with the exception of the self-employed all receive various forms
of social security coverage. KEY: LB-per pound. U-Per unit. ( )-July
1997 price. NA-not available. BSB-beer-sized bottle. S-Soft. H-Hard.
All prices are in Cuban Pesos.
Value in US$
9802200000
Medicinal & Pharmaceutical Products, Donated
Miami, FL
00.00
87,924.00.00
9802300000
All Wearing Apparel, Donated For Relief/Charity
Miami, FL
00.00
112,968.00
9802400000
Articles Donated For Relief Or Charity, Nesio (Not Elsewhere
Specified Or Indicated)
Detroit, MI
00.00
21,000.00
9802400000
Articles Donated For Relief Or Charity, Nesio (Not Elsewhere
Specified Or Indicated)
Miami,FL
37,890.00
573,933.00
TOTAL US$
US$37,890.00
US$795,825.00
|
|
|
|
|
| Rice (LB) |
|
|
|
| Black Beans (LB) |
|
|
|
| Pork (LB) |
|
|
|
| Cooking Fat (LB) |
|
|
|
| Lamb (Boned) |
|
|
|
| Ham (Boned) |
|
|
|
| Garlic (U) |
|
|
|
| Onion (LB) |
|
|
|
| Tomato (LB) |
|
|
|
| Lettuce (Bunch) |
|
|
|
| Cabbage (U) |
|
|
|
| Cucumber (LB) |
|
|
|
| Carrots (LB) |
|
|
|
| Malanga (LB) |
|
|
|
| Yucca (LB) |
|
|
|
| Sweet Potato (LB) |
|
|
|
| Squash (LB) |
|
|
|
| Tomato Sauce (BSB) |
|
|
|
| Limes (U) |
|
|
|
| Oranges (U) |
|
|
|
| Tangerines (U) |
|
|
|
| Grapefruit (U) |
|
|
|
| Pineapple (U) |
|
|
|
| Papaya (LB) |
|
|
|
| Banana Fruit (U) |
|
|
|
| Banana Cooking-S (U) |
|
|
|
| Banana Cooking-H (U) |
|
|
|
| String Beans (Bunch) |
|
|
|
| Peanuts (LB) |
|
|
|
| Corn Meal (LB) |
|
|
|
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 suggestions,
please contact the U.S.-Cuba Trade and Economic Council.