Chronicle on Cuba - March 2008

Economy

March 1: Cuban scientists from nine institutions met to analyze the possibilities to produce ethanol from sugarcane by-products and other alternative sources without sacrificing food. The First National Workshop on Cellulosic Ethanol, held at the ICIDCA (Sugarcane Research Institute), was attended by 42 experts, who reviewed the current situation on the international market and technological processes that are not based on food. The Cuban experts, who gave two master lectures and presented 16 papers at the event, insisted on the danger of using crops to produce ethanol and biodiesel. Participants in the meeting highlighted the international concern about using corn, wheat and soy, which are humankind's basic food, as raw materials to produce biofuels. Cuban scientists and institutions made it clear that the Caribbean island will make the necessary efforts to contribute to debating and analyzing all possible variants to produce biofuels. They noted the importance of carrying out economic studies about today's availability and potential of cellulosic wastes in Cuba. They also debated the used of genetically-modified organisms to obtain a second generation of biofuels that will not be obtained from food. (Prensa Latina, 1/3/08)

March 2: Cuba's vice president Carlos Lage unveiled a plan to reinvigorate key sectors of the country's economy, including its flagging construction and food industries, state-run media reported. Lage announced in Juventud Rebelde newspaper that the country would initiate "a stimulus plan in strategic economic sectors." Lage, a member of parliament since 1976 and a long time member of the Communist party's central committee, also underscored the need to step up Cuba's production capacity and reduce its level of imports. (AFP, 2/3/08)

March 4: The Cuban population decreased by 1,889 in 2007 for the second year in a row, despite a slight increase in the birth rate, the National Statistics Office (ONE) reported. According to the report "Demographic Indicators. Cuba and its Territories", published on the ONE website, the Cuban population decreased from 11,239,043 to 11,237,154. Although the number of births increased in relation to 2006, the combination of deaths and migrants tilted the balance towards a decreasing tendency, according to the ONE. The ONE's predictions are not encouraging, as the Cuban population is expected to decrease by 26,000 by 2020. Meanwhile, demographic aging increased, as 16.2 percent of the Cuban population is over 60 years of age, compared to 15.9 percent in 2006. After the demographic boom in the 1960s and 1970s, when an average of 250,000 children were born, Cuba's population began to decrease in the 1990s, and that tendency persists. [ONE: Indicadores demográficos 2007] (Prensa Latina, 4/3/08)

March 4: Despite strong economic growth in 2006, Cuba still occupies last place in Latin America for both mobile phone and Internet penetration, and is fifth from the last in fixed-line teledensity. The government has blamed the embargo for the country’s poor telecom development, which has prevented the implementation of submarine fibre-optic cables; thus, Cuba has had to rely almost exclusively on satellites for international connectivity. However Etecsa, controlled 73% by the government and 27% by Telecom Italia, holds a monopoly in both fixed and mobile services. It offers GSM, TDMA, and AMPS services through its subsidiary Cubacel, though mobile rates are prohibitive for the vast majority of Cubans. In addition, Cubans cannot legally buy a computer or subscribe to an ISP without having a government permit. (Business Wire, 4/3/08)

March 4: Cuba's new government appears prepared to take urgent action on complex problems such as the country's dual monetary system and the prevalence of wages too low to stimulate production. "They say they're going to devalue the Cuban convertible peso against the national currency," said a 34-year-old woman while standing in line to exchange money in the capital. Speculation is rife. The rumors, which began to spread even before Raúl replaced his ailing brother Fidel as president, point to a possible drop from the current rate of exchange of 25 Cuban pesos for one convertible peso to 20, 16 or even 13 Cuban pesos per convertible peso. The dollar officially stands today at 1.04 convertible pesos. "If it's true, it will benefit the people who depend on their salaries in Cuban pesos," said the woman, who changes 40 convertible pesos a month for Cuban pesos in order to "more or less" cover the price of the food she needs from the farmers' markets. "But people like me, who live on remittances sent from their families abroad, would be hurt," she said. Pavel Vidal, an expert with the Center of Studies on the Cuban Economy, said that thanks to "the growth in gross domestic product and exports in sectors like nickel and professional services," Cuba is in a position to strengthen the Cuban peso against the convertible peso. (IPS, 4/3/08)

March 5: A biotechnology center is expected to be created in Mozambique with the technical and scientific support of Cuba, according to a report in the Mozambican newspaper Notícias, citing Science and Technology Minister, Venâncio Massingue. The paper said that the move had been announced in Havana, as part of the official three-day visit by Mozambican president Armando Guebuza to Cuba, at the invitation of his Cuban counterpart Raul Castro. According to Massingue, who is part of the presidential delegation, Mozambique is expected soon to send technicians to Cuba to specialize in biotechnology. Two Cuban technicians are currently in Mozambique, working in the district of Moamba, in the area of animal husbandry. (MacauHub, 5/3/08)

March 6: Sherritt International Corp., the company producing oil and gas off Cuba's coast, said fourth- quarter profit increased 6.2 percent as oil prices rose. Net income rose to C$83.5 million ($84.6 million) from C$78.6 million a year earlier, Toronto-based Sherritt said in a statement. Sherritt gained from crude-oil prices that averaged 50 percent higher in the fourth quarter than a year earlier, boosting profit excluding some costs in the oil and gas business by 29 percent to C$65.6 million. The gain helped the company overcome falling profit in its metals unit as nickel prices slid. ``Strong oil prices, steady production and operating efficiencies helped drive profitability growth,'' Sherritt said in the statement. Nickel prices were ``lower than in the prior year, when stainless steel demand was stronger,'' the company said. Nickel is a key ingredient in stainless steel production. Sherritt mines and processes nickel in Cuba in a joint venture with the socialist government and produces oil and gas off the island's coast. The company also provides power to Cuba and is working on a 150-megawatt expansion at its Boca de Jaruco power plant, taking its total capacity in Cuba to 526 megawatts. Boosting the island's infrastructure will help protect the company from any change in the political regime, Sherritt has said. (Bloomberg, 6/3/08)

March 7: Cuba and Bolivia signed a negotiations protocol to enlarge and deepen the Accord for Economic Complementation between the two countries. Also on the list was the meeting's document for the Managerial Commission of the agreement. Bolivian Deputy Economic Relations and Foreign Trade Minister Pablo Guzman Laugier and Cuban Deputy Foreign Trade Minister Pedro Luis Padron inked the accords. The Bolivian representative said his country hopes to expand trade with the island as part of the framework of the Bolivarian Alternative for the Peoples of the Americas (ALBA), to eliminate taxes and non-tariff measures in their bilateral exchanges. Objects of negotiations were access to markets and trade regulations, both very important for developing links. The aim of the South American country, Laugier said, is to export products with greater added value, generate employment and develop internal markets. Cuba is interested in helping in the Bolivian industrialization process, the island's deputy minister said, mentioning as an example the medical collaboration in that nation. (Prensa Latina, 8/3/08)

March 9: A state export insurer will be able to collect unpaid export-related payment of 3 billion won ($31 million) from Cuba. The payment was due seven years ago. Cuba could not dodge the payment because the country was suffering from an electrical shortage and needed Korean-made power generators and low-energy consuming electronics. The Korea Export Insurance Corporation said that the head of the company, Cho Hwan-eik, plans to visit Cuba and recoup 2 million euros. That was the payment for tires exported by Hankook Tire in 2001. The amount is 1.4 million euros plus 6-percent annual interests. These are good conditions for collecting unpaid balance. Relations were rocky at the beginning. The corporation and the Havana branch of the Korea Trade Investment Promotion Agency tried to persuade Cuban bureaucrats to pay, but they were unwilling. The country’s electrical shortage, however, got serious two years ago and relations improved. Cuba came to desperately need Korean goods. Korea’s exports to Cuba jumped sevenfold in the last four years because of surging exports of electronics to the communist nation. (JoongAng Daily, 10/3/08)

March 11: A group of Dutch entrepreneurs has begun a trade mission to Cuba. Representatives from more than 20 companies are taking part in the mission, making it the largest Dutch economic delegation ever to visit Havana. The names of the companies making the journey are being kept secret, chiefly to avoid sanctions by the United States, which still imposes a trade embargo against Cuba. However, Dutch newspaper “NRC Handelsblad” reports that representatives from the Rabobank and three Rotterdam-based shipping companies are among the delegation. NGOs such as CNV (the National Federation of Christian Trade Unions in the Netherlands) and Pax Christi have been urging Dutch companies to begin cooperating with the Cuban government once a number of conditions have been met. These include the improvement of Cuban workers' rights and a discussion of the position of the country's trade union leaders and dissidents. (Radio Netherlands, 11/3/08)

March 12: Cuba will strengthen its participation in the World Trade Organization and other international economic and trade organizations to defend national and third world interests, said an official source. A document from the Foreign Trade Ministry (MINCEX) on the work goals for 2008, says that the country will reinforce its participation in the United Nations Conference on Trade and Development (UNCTAD), in particular the 12th ministerial conference of that organization in April. Cuba also aims to make stronger its integration in the regional and international economy, for which it will intensify the fight against the US embargo, The Bush Plan, and other measures of the US government that affect the Caribbean country's trade interests. It will also increase links with the region through the implementation of planned actions in the agreements of the Bolivarian Alternative for Latin America (ALBA) and the Peoples Trade Treaty. The country will enlarge its economic, trade and cooperation relations with the Caribbean Community (CARICOM), reinforce its presence in the Association of the Caribbean States, strengthen coordination and agreements with the Africa, Caribbean and Pacific Group and CARIFORUM. (Prensa Latina, 12/3/08)

March 13: Deficient public transport, one of the most pressing problems inherited by Cuba's new president, Raul Castro, has taken a great leap forward over the last year thanks to thousands of buses imported from China. It is the most noticeable change to life in Cuba since Raul Castro took over as caretaker when his brother Fidel Castro fell ill and stepped aside in July 2006. The transfer of power was completed when Raul Castro was formally named president, raising hopes among some Cubans that the improvements he has overseen in transport might be spread to housing and other social services. The lines at Havana bus stops are now much shorter with new buses running 10 or 15 minutes apart, and the sight of Cubans racing desperately to catch a lone bus already packed with passengers is less frequent. "This is improvement, compared to the apocalypse we were living through," said state employee Jose, 51, amazed to see two buses arriving simultaneously. Flashy articulated buses have replaced the notoriously uncomfortable "camels" or humped-back buses Cuba resorted to when the loss of Soviet aid took the communist island nation to the brink of collapse in the 1990s. (Reuters, 13/3/08)

March 13: In a near-record drop, Cuban coffee output fell to 4,400 tons of semi-processed beans this season, far short of the 8,200 tons produced in the previous crop. “It is estimated that approximately 9,200 tons of coffee will be produced in 2008, for a 62 % increase above the previous year’s output," said the official newspaper Granma. The publication blamed low production on natural disasters, insufficient investments on the plantations and a pest infestation. (Reuters, 13/3/08)

March 14: Mexico and Cuba put six years of testy relations behind them with a visit by Mexican Foreign Minister Patricia Espinosa and the rolling-over of $400 million in Cuban debt. Mexico's Foreign Trade Bank (Bancomext) has opened a new $25 million credit line aimed at kick-starting stagnant trade with Cuba, the state bank's director general Mario Laborin said. Repayment of the $400 million will be spread over 15 years, at 6 percent interest and a five-year grace period before principal is due, he added. The new credit line will be increased with more trade, which sank to $200 million in the absence of financial guarantees. (Reuters, 14/3/08)

March 15: For the first time, Russia has devoted to Cuba the opening day of the International Travel and Tourism Fair (Intorurmarket) starting at the Moscow-based Krocus Expo, a source from the Cuban delegation said. This is in recognition of the interest of Russian travellers for Cuba as a destination, said director of the office of MINTUR (the Cuban Ministry of Tourism) in Russia, Carlos Oscar Hernandez said. He told the press that Deputy Director of the Federal Tourism Agency of Russia, Natalia Shenguelia, and Deputy Minister of MINTUR Maria Elena Lopez will attend the opening of the largest stand ever presented by Cuba in this fair. We will have a very busy day, as our ministry and firms including Cubanacan, Havanatur and Gaviota will present their products, he added. (Prensa Latina, 15/3/08)

March 17: The Cuban press has increased its criticism of diverse issues affecting the country, particularly calling for further preventive actions against "social misconduct," corruption and "criminal activities." The weekly paper Tribuna de la Habana published several articles in this regard, one of them about the on-going theft of L-shaped steel frames that support high tension power lines. Criticism of some of the ills affecting the Cuban society is generally directed against sectors of the population that are accused of "social misconduct," without acknowledging in the least the possibility of errors on the part of the government. (EFE,17/3/08)

March 17: Communist Cuba has partially lifted a decades-old ban on farmers buying supplies in the latest sign that new President Raul Castro is looking to individual initiative to stimulate food production. Agricultural sources told the press that Cuba plans to open stores for farmers to buy tools, herbicides, boots and other supplies for the first time since the state took over all the country's shops in the 1960s. "For the first time, all supplies are not being assigned by the central government. It's a market crack in the monopoly and centralization that it is sure to spread," a local agriculture specialist said, asking not to be named. "It doesn't seem like much, but this is a very important first step," he said.   State-run companies recently sent buyers abroad to purchase tools, hand held machinery and supplies such as fencing, seed and fertilizer, presumably to sell in their outlets across the country, a local business source said. The farmers will be able to buy supplies in Cuba's hard currency, the CUC or convertible peso, which is worth 24 times more than the Cuban pesos that state wages are paid in. (Reuters, 17/3/08)  

March 19: Cuba fosters a stable political and social atmosphere and offers guarantees and incentive facilitating the development of economic and commercial relations, said Cuban ambassador to India Miguel Angel Ramirez. The diplomat spoke of the island’s facilities and business perspectives at a seminar on India, Latin America and the Caribbean: Big Trade and Investment Opportunities. The event, which was organized by the Confederation of Indian Industry (CII) and sponsored by the Foreign Ministry, have been attended by representatives from Argentina, Colombia, Cuba, Chile, Ecuador, Mexico, Panama, Peru, Dominican Republic, Surinam and Trinidad and Tobago and Indian businessmen. (Solvision, 19/3/08)

March 19: Compared to last year’s figures for the same period, sugar production has increased by 29% during this year’s sugar cane harvest, which will conclude next May, reported Liobel Pérez, chief spokesperson for the Ministry of the Sugar Industry. According to Pérez, during the 2007-2008 harvest, which began in December, "efficiency and sugar yield per hectare have been improved.” He added that 53 sugar mills are currently in use, nine more than last year. (EFE, 19/3/08)

March 19: By unanimous vote, the Chilean Senate green-lighted two Free Trade Agreement initiatives with Cuba and Colombia, reported parliamentary sources. In the case of the island, it is the Economic Complementation Agreement between Chile and Cuba, signed in Montevideo, on December 20, 1999. Senator Roberto Muñoz Barra, president of the Senate’s Foreign Affairs Commission, said that, according to Cuban government statistics, the island has been experiencing an economic growth, reaching 12.5 % in 2006 with an inflation rate of 5.5. (EER, 19/3/08)

March 19: Imperial Tobacco Group Plc, the maker of Davidoff and West cigarettes, said costs related to its takeover of Altadis SA will lop 140 million pounds ($281 million) from the current fiscal year's profit. The company also said it will continue a partnership between Altadis and Cuba's government under which cigars made in the country are sold. Tobacco and cigar assets whose disposal has been ordered by the European Commission as part of the takeover have drawn interest from ``a number of parties,'' Chief Executive Officer Gareth Davis said. The assets should be sold in coming months, according to the CEO, who spoke at an analyst meeting made available on the company's Web site. (Bloomberg, 19/3/08)

March 19: According to official magazine Bohemia, the Cuban economy will lose millions and domestic market prices will increase in 2008 due to the triple effect of the US embargo, the dollar devaluation and higher international market prices of food commodities. The critical international situation indicates that we are in for another pull of the belt, commented the article. "There is increased pressure on the domestic market," said the publication, in reference to the internal commercial network dealing in hard currency, which in 2007 already saw mark-ups in the prices of milk and mayonnaise, among other products. (AFP, 19/3/08)

March 19: The Cuban government said it planned to build 30 new hotels between 2008 and 2010 with the aim of increasing the number of rooms available to international tourists from 46,000 to 56,000. The hotels will be built through joint ventures involving the Cuban government and foreign companies, mainly from China and Spain, according to an article that appears on the Tourism Ministry's Web site. An official with that portfolio was quoted in the article as saying that other hotel projects currently are in the negotiation phase. Ten of the new hotels will be in Havana and will be located in the Marina Hemingway and Monte Barreto districts, the city's historical center and Tarara beach, where a complex will be built that will include apartments for rent, a marina and a hotel. The Cuban capital is the main destination for foreign tourists to the communist-ruled island and, together with the nearby Varadero resort, also on the northern coast, generates 70 percent of the nation's tourism revenue. (EFE, 19/3/08) 

March 20: The Cuban tourism market will likely open up at the passing of Fidel Castro, which might cause problems for Barbados' tourism market. That concern came from Barbados’ Minister of Tourism Richard Sealy at a post-Cabinet Press conference at Government Headquarters. "The morning that [Castro's] eyes don't open, and Cuba opens up in a big way, we can have some problems in this part of the world. "It is going to be largely untapped and will have a lot of potential as far as tourism development is concerned," he warned. "So we need to monitor it and continue to make sure that we are nimble and do what we have to do as policymakers to make it easier and more attractive to invest in Barbados," he said. (Nation News, 20/3/08)

March 20: Over 1,000 people have been evacuated due to flooding triggered by a storm in the eastern tip of Cuba. So far no deaths or injuries have been reported. According to the official press, huge waves crashed over the sea wall of the coastal city of Baracoa and destroyed more than 20 homes. The storm also damaged some 200 buildings, obstructed traffic and covered a considerable stretch of the local airport’s runway with debris. The storm began with waves higher than five metres, causing extensive flooding, a phenomenon described by the Cuban AIN news agency as worst seen in the city in the past 50 years. Baracoa, which is located some 1,100 km east of Havana, and has a population of around 80,000, is Cuba’s oldest city and the biggest tourist destination in the Guantanamo province. (EFE, IANS, 21/3/08)

March 21: Communist Cuba has issued what appears to be the first public report on prices and inflation in the private sector, in an unusually realistic acknowledgment of the key role the informal economy plays in island life. In its ''Survey of Prices in the Informal Sector,'' the National Office of Statistics estimated that the cost of goods and services purchased from private sources rose 4 percent from February 2007 to the same month in 2008. According to the study, the goods and services most frequently obtained from private sources are rice, cheese pizzas, eggs, pork, manicures, vegetable oil, lard and the informal exchange of the regular pesos that government workers earn for the convertible pesos needed to buy items at more expensive stores. The report studied government-sanctioned markets where farmers may sell any excess agricultural goods after meeting production quotas, as well as commerce by licensed tradesmen and small business owners. It also considered illicit activities such as the surreptitious sale of food, medicine and other products stolen from state warehouses and factories. (AP, 21/3/08)

March 22: When ailing Fidel Castro resigned last month, stock prices of US companies that stand to benefit from more business with Cuba rallied. Six days later, those shares retreated as his brother Raul Castro, Cuba's first new leader in 49 years, was installed and picked old-guard revolutionaries to help him govern. That dashed forecasts of a rapid transition from communism to capitalism and the end to the embargo the United States has kept against Cuba since 1962. "Anyone who thinks there will be a for-sale sign up by a bankrupt Cuban government is wrong," said the manager of a Canadian company, who spoke on condition of anonymity because of the sensitivity of doing business in Cuba. As Raul Castro moves to raise living standards, welcomes new foreign investment in mining, oil, tourism, possibly agriculture and even ethanol, opportunities will open up, said the executive, but only for non-US companies. Within weeks of formally taking office, his government has moved to allow Cubans to buy consumer goods that were banned until now, such as computers and DVD players. The increased consumption longed for by Cubans will benefit European companies already producing goods in Cuba, such as ice cream and soft drinks by Nestlé, beer by the world's second largest brewer InBev, soap and shampoo by Anglo-Dutch giant Unilever, and cigarettes by Brazil's Souza Cruz, a subsidiary of the British American Tobacco group. Foreign businessmen have spent years struggling to make money in Cuba's inefficient state-run economy since it opened up to foreign investment and tourism after the 1991 collapse of the Soviet Union. (Reuters, 22/3/08)

March 23: A fire has scorched some 500 hectares (1,234 acres) in the Hatibonico wildlife refuge in the eastern province of Guantanamo, Cuba's official AIN news agency reported. Area residents have joined firefighters and rangers in battling the blaze, which officials said was of "considerable proportions," some 970 kilometers (603 miles) east of Havana. "Currently, the flames are yielding to efforts to extinguish them and authorities are investigating the cause of the disaster," AIN said, adding that the blaze started in a dry strip west of Guantanamo Bay, where there are oddly shaped hills. The Hatibonico wildlife refuge's approximately 5,220 hectares (12,888 acres) are home to animals and plants considered to be "in danger of extinction," AIN said. (EFE, 25/3/08)

March 24: Cuba has begun decentralizing the state-dominated agriculture sector in what appears to be the first major move by new President Raul Castro to improve efficiency and cut bureaucracy. At meetings across Cuba, farmers are being told decisions ranging from land use to resource allocation and sales will no longer be taken at the 17-floor agriculture ministry in Havana but at the local level, farmers who attended said. In addition, local municipal offices will be streamlined and will take more into account the activities of private farmers and cooperatives, not just state farms, they said. Cuba watchers say this will provide more leeway for private initiative to raise food output, Raul Castro's top economic priority since he began running the country on a temporary basis in mid-2006. "This represents a major shift from a vertical to horizontal approach and a change in bureaucratic mentality from a national to territorial one," a local agriculture expert said on Monday, like others interviewed asking not to be named."They are moving decision-making closer to the producers and recognizing that the private sector with just a fraction of the land produces 70 percent of our produce," he said. (Reuters, 24/3/08)

March 24: Carlos Lage, the man behind the Cuban economy, toured the eastern coastal city of Baracoa, promising funds to rebuild dozens of homes destroyed by 16-foot waves. Lage, who was passed up for the country's No. 2 political job last month, said the state would help rebuild the 47 homes destroyed last week by an onslaught of giant waves, the state press reported. In addition, nearly 200 damaged homes would be repaired. The storm, which originated in the Atlantic north of Cuba, destroyed a day care center, a farmers market, a park and some local government offices. About 1,000 families were left without electricity during the 20-hour storm. Lage, who did not say how much would be spent on the recovery effort, said Baracoa's picturesque seaside malecon would be repaired and strengthened against future storms. Lage, joined by local officials, toured the damaged buildings and met with families who lost their homes. Local authorities said it was the worst natural disaster to strike the area in 50 years. (Sun Sentinel, 25/3/08)

March 24: Canadians continue to flock to Cuba, with seemingly little worry of any political fallout after longtime president Fidel Castro's handover of power to his brother Raul.   Tourism industry representatives report "business as usual'' in the Caribbean island's tourism sector, even following the February handover of the presidency to Raul Castro. "There is literally no impact at this point in terms of traffic,'' said Pierre LePage, executive director of the Canadian Association of Tour Operators. “The transition from Fidel to his brother has had more impact in the U.S. in the media and in terms of political impact. But in terms of Canadian clients, there is no difference.'' The Cuban Tourist Board in Toronto reported a 29 per cent increase in Canadian travelers this January and February compared to last year. The board said 660,387 visitors came from Canada in 2007. (Ottawa Citizen, 24/3/08) 

March 25: The Cuban government has suspended the business licenses of 14 foreign firms for alleged illegal activities tied to state agencies controlled by GAESA, the powerful commercial consortium of the Cuban Armed Forces. According to sources within the Ministry for Foreign Commerce and the Cuban Chamber of Commerce, the foreign commercial representatives were notified of the cancellation of their business licenses March 17 and 18, following an internal investigation that questioned alleged irregularities in the agreements established between the Tecnotex company and retail chain TRD Caribe, both under the administration of GAESA. “There was an `explosion' at Tecnotex for shady relations with foreign businessmen,'' said an employee of the foreign commerce ministry who requested anonymity. “More than just friendships were proven to exist; there were some shady dealings.'' The commerce ministry employee added that, ''the decision came from the highest level,'' with instructions to act “quickly and energetically.'' Although a complete list of the foreign firms that have had their licenses revoked has not been made available, an individual employed by the Cuban Chamber of Commerce told the press that two Italian companies, Agridea and Bella SRL, have been blacklisted. Both companies provided merchandise to Tecnotex and TRD Caribe, among other government-controlled retailers. (The Miami Herald, 25/3/08)

March 25: In the course of the last year, trade between Cuba and Panama increased tenfold to reach 500 million USD, a sign of normalization in bilateral relations, interrupted in 2004, said the new Panamanian ambassador to the island, Luis Gómez. Today, trade volume with Cuba reaches approximately 500 million USD per year, Gómez told media representatives. According to Cuban official statistics, in March, 2007 that figure was scarcely 50 million USD. (Reuters, 25/3/08)  

March 25: Turkish Energy & Natural Resources Minister Hilmi Guler said Turkish Petroleum Corporation (TPAO) could cooperate with Cuba in oil and natural gas exploration, as it does in Kazakhstan, Azerbaijan and Libya. "TPAO is eager to join natural gas and oil exploration tenders in Venezuela, Colombia, Mexico and Ecuador," Guler told reporters after meeting Marta Lomas Morales, the Cuban minister of Foreign Investments and Economic Cooperation, in capital Ankara. Guler said the corporation will also carry out research in Cuba. "We may cooperate with Cuba in oil and natural gas exploration," he said. “Turkey will set up a technical team to deal with joint energy projects with Cuba and it will visit Cuba in coming days," he also said. (AA, 25/3/08) 

March 25: The governments of Venezuela, Cuba, Nicaragua and Bolivia finalized the constitutive agreement of the ALBA Bank, with a subscribed capital of 1 billion USD, reported the Venezuelan minister of finance, Rafael Isea. The agreement was signed in Caracas by representatives of the four countries that make up the Bolivarian Alternative for the Americas (ALBA), which the Dominican Republic joined last January, Isea said in a press release. (EFE, 25/3/08)

March 26: Cuba's new President Raul Castro has begun discreetly lifting some of the many restrictions on daily life as he tries to meet popular demands for better living standards in the socialist state. In the first month since he took over as president from his ailing brother, Raul Castro's government decided to allow Cubans to buy computers, DVD players and other appliances, including air-conditioners and toasters. Cuba's first new leader in half a century has also launched a restructuring of agriculture to reduce bureaucratic bottlenecks and boost food production. Allowing private farmers and cooperatives more leeway to buy tools, seeds and fertilizer is a step toward curbing the state's stranglehold on farming, local specialists said. Even as he begins making modest reforms, the low profile Raul Castro hasn't announced them in the Communist Party newspaper Granma or on state television. "These changes are already happening. Don't expect to see any announcements in Granma, that will never happen," one official said, asking like others interviewed that his name not be used. (Reuters, 26/3/08)

March 26: CIMEX, the main state-run business conglomerate in Cuba, is trying to satisfy the demand for farm implements with a "market test" being conducted in four provinces. Executives for the firm explained to the press that the program was begun last November with the sale in the CIMEX chain of stores of 23 types of agricultural tools and other items, with the aim of expanding it to other parts of the country before the end of 2008. The project is a response to the absence of conventional means of distribution outside the state apparatus to get these items directly into the hands of the rural work force. The items are priced in Cuban convertible pesos, or CUCs. One CUC is equal to $1.08, while the ordinary peso is worth less than 4 cents. "The objective is to broaden our offerings and position ourselves in a new segment of the market that has demonstrated buying ability and need," said the director of the CIMEX stores, Lluraldi Caba. He offered no estimates about the size of the demand in the sector or data about the sales made to date, and he refused to provide information about where the products come from because - he said - of the risk for the country's economic activity as a result of the US embargo. Among the items being sold in the CIMEX stores in the provinces of Holguin, Ciego de Avila, Villa Clara and La Habana are machetes, files, tools, nails, sickles and hoes. (EFE, 26/3/08)  

March 26: Turkish State Minister and Deputy Prime Minister Cemil Cicek and Cuban Minister of Foreign Investment and Economic Cooperation Marta Lomas Morales signed the 8th Term Joint Economic Commission Turkey-Cuba protocol. Under the protocol, the second loan --which was provided by Turkish Eximbank to Cuba and is worth of 15 million euros -- was opened to the use of Cuba. The total worth of the loan is 25 million euros. Cicek said that the protocol envisages cooperation between Turkey and Cuba to explore and produce natural gas and oil in third countries. He added that also the two countries will also start to cooperate in renewable energy, energy productivity, wind and sun energy, and biogas areas. (Turkish Press, 27/3/08)

March 26: Cuban Vice President Esteban Lazo Hernandez said that he hopes to see a continuation of the historic friendship and collaboration between the peoples and communist parties of Cuba and the Ukraine. Lazo met with Piotr Simonenko, first secretary of the Ukrainian Communist Party and his delegation on visit to the island. The vice president made special mention of his country’s solidarity with over 23,000 children and relatives affected by the Chernobyl nuclear accident, treating them at hospital facilities in Cuba. (Granma, 26/3/08)

March 27: The top United Nations human rights body called on Sudan to tackle human rights violations and prosecute those responsible for abuses. But in a diplomatic manoeuvre to avoid a divisive vote, the resolution proposed by Egypt on behalf of African countries acknowledged measures by Sudan to improve human rights even though they had not yet had the desired effect. The 47-member Human Rights Council, in which Islamic and African countries backed by Russia, China and Cuba, have an effective majority, passed the resolution by consensus. (Reuters, 28/3/08)

March 27: Cuba will host next year the 21st Latin American Congress on Poultry Farming, which will be preceded by several international events. In statements published by the digital edition of the Trabajadores weekly, Lazaro Quiros, director of the poultry farming industry on the island, announced that the congress will be attended by the main producers and specialists from the region. Also present will be representatives from the Latin American and the World associations of poultry farming, of which Cuba is a member. In parallel with the congress and under the maxim that food security is the guarantee of the future, Cuba will also host the Avimundo 2009 poultry-farming exhibition. This congress in Havana will be preceded by the 23rd World Congress on Poultry Farming, scheduled from June 30th to July 4th later this year in Australia, and by several international exhibitions. (CAN, 27/3/08)

March 27: Mexican tour operators wish to send 100,000 tourists to Cuba, which is a nine percent growth compared to 2007. A release of Cuba's Tourism Ministry office in Mexico said the goal involves the promotion of tour companies, hotel chains and travel agencies operating in Mexico. For the first time they will run prime time TV adds featuring the wonders of Cuban products, geography and hospitality. In addition to the media, they coordinate joint operation with Mexican tour operators. In addition to Havana and Varadero, the ads will show Cayo Santamaria, Cayo Coco and Cayo Largo, among other destinations in central and east Cuba. (Prensa Latina, 27/3/08)

March 27: Cuba and Belarus signed a final protocol agreement during the 7th Intergovernmental Commission of both parts from March 25 to 27, which was praised by the Cuban representative for its quality of trade. Vice minister for Cuban Foreign Investment and Economic Collaboration, Ricardo Guerrero, noted that the agreement paves the way in several sectors and aids banking exchange. Víctor Anatolievich Gaisionok, vice minister of Foreign Affairs of the Republic and president of the Belarus delegation to the Commission assured that Cuba is a strategic focus for his nation.The official also called for strengthening political and economic relations between both parts. The 7th Commission identified common interests in priority sectors of the national economy such as in informatics, communication, transportation, construction, iron and steel industry and biotechnology. (ACN, 27/3/08)

March 27: Cuba is taking economic actions to turn Basic Units of Cooperative Production, farmer associations working lands handed over by the state in usufruct, into the major providers of food for the population. During a recent meeting with local agricultural producers in this eastern city, deputy agriculture minister Alcides Lopez said that his ministry will allocate more resources for the Basic Units of Cooperative Productions or UBPC (by their Spanish acronyms), according to their profitability. The cooperatives will be given a specific credit line that will allow them to increase their technical capabilities, meet higher production schedules and create future potential to purchase the resources and items they need, the deputy minister said. Lopez pointed out that the salary system, directly linked to the contribution made by each worker, will be rigorously applied to all producers, according to the founding principles of the agricultural organization, which have been distorted in some entities. The Cuban government official underscored the social objective of the Basic Units of Cooperative Production, which is to guarantee food supply to nearby communities, where they will directly sell their produce and will reduce the participation of intermediary enterprises; those enterprises will become providers of services to the agricultural organizations. (ACN, 27/3/08)

March 27: The First Vice President of the Cuban Councils of State and Ministers, Jose Ramon Machado Ventura, visited several production facilities in the eastern province of Camaguey. After a two-day working visit to this province, Machado Ventura said he had been able to see enthusiasm among workers due to the economic recovery that the country is experiencing, including the availability of raw materials and the investments being carried out. “There is enthusiasm among workers and confidence in the recovery, of which they are a very important element,” he said. “I am not exaggerating if I say that I saw confidence, stability and increase in some of the plans compared to past years. They have higher goals but they are very objective,” he added. (ACN, 28/3/08)

March 30: The introduction of new disease-resistant tobacco varieties and more extensive areas under irrigation areas are some of the measures Cuba is currently applying to increase tobacco production. According to authorities linked to production and research, tobacco outputs have considerably increased in the last few years, while better results are expected from a raise in payments to tobacco producers. Raul Relova, head of TabaCuba Supervision and Control, said the country will step up irrigation from the safest sources, which will result in a 30 percent or more increase of the agricultural output. TabaCuba will also rise up to 50 percent the price to be paid to farmers involved in tobacco production. (Prensa Latina, 30/3/08)

March 30: In ten years, Cuba could be able to generate 500 MW by wind energy, not to mention the power that could be obtained from other renewable sources that are now being tested in the country. Manuel Menéndez, head of the Group of Coordination and Support of the Council of State, spoke about advances in the Comprehensive Program for the Development of Alternative Energy Sources at the conclusion of the Eighth International Workshop of the Cubasolar agency. “We are studying all possibilities, but we have opportunities to move forward in obtaining energy from biomass, sunlight and wind, among other sources,” he said. Regarding wind energy, measurements show favorable perspectives to continue the construction of wind farms in Gibara, Holguín, and in areas of Maisí, in Guantánamo. Menéndez said that the first wind measurements at 50 meters of height were recently finished in the northern coastline of Ciego de Ávila, within a series of research efforts that continue in this province. (Cuba Headlines, 30/3/08)

March 30: Forty-seven years after golf was virtually wiped off the island of Cuba, the game may soon make a comeback, the St. Petersburg Times reported. Cuban tourism officials are reportedly considering a major investment in new golf courses across the island to boost its sagging tourism industry. ''The message coming from the Cubans is: bring us golf projects,'' Mark Entwistle, a former Canadian ambassador to Cuba who represents one investor group, told the press. A dozen golf projects around the island are on the drawing board, the newspaper added, each consisting of hundreds of villas and apartments built around the courses. (The Miami Herald, 30/3/08)

March 30: Cuban Vice President Carlos Lage said investments in Cuba will grow four times more than in the last 10 years. "Between 1995 and 1998, we had 1.5 billion pesos annual programs, but this year the country must invest over six billion pesos," Lage told the local press during a visit to Matanzas. According to Lage, this process is larger than in previous years, and of greater importance for the local economy and peoples' lives. "The country must invest with greater organization and efficiency. We can reduce costs, time, to do more and increase investments," Lage noted. Lage made the statement at the end of a tour of the western Cuban province of Matanzas, where he also visited cattle breeding farms, a food industry, a population settlement and a store under construction. Accompanied by the province's main authorities, Lage learned about plans to build hotels in the Varadero beach resort, located in the northern coast. (Prensa Latina, 30/3/08)

March 31: The Chambers of Commerce of Naples, southern Italy, and Cuba have signed in Havana a bilateral collaboration agreement, aimed at developing the trade and economic relations, the local media reported. The agreement was signed by Vito Amendolara, deputy chairman of the Naples Chamber of Commerce, and Patricia Ponte for the Cuban Chamber. The accord is aimed at giving impetus to the exchange of information between Naples and Cuba, at encouraging trade opportunities, investments and cooperation, the local media stressed. It also envisages activities linked to business training and personnel management. Under the accord, the two parties will jointly organise trade fairs and exhibitions in various sectors. The next step in the bilateral relations is the signing of a special agreement in the tourist and accommodation sector. (ANSA, 31/3/08)

March 31: The governments of Brazil and Cuba started a cooperation agreement to strengthen actions in the surveillance of medications. The document said the society needs knowledge on the fields of pharmaceutics, medication inspection, bio-equivalence, clinic investigation and fighting falsification. Dirceu Raposo de Mello, president of the National Sanitary Surveillance Agency of Brazil, and Rafael Perez, director of the Center for Medication Quality Control of Cuba, signed the agreement in the presence of Cuban Ambassador to Brasilia, Pedro Nunez Mosquera. Perez said that the agreement is a result of the visit of Brazilian President Luiz Inacio Lula da Silva to Cuba and a mutual cooperation relation between the two agencies, to strengthen links between Cuban and Brazilian institutions. (Prensa Latina, 31/3/08)

March 31: Gradual recovery and modernization of the Cuban port system has borne its first fruits, mainly in Havana-based port facilities. In early 2007, port productivity reached below 1,000 tons a day, and today we have closed unloading with 1,707 tons a day, on average, Havana Port Investment Group Director Victor Arencibia told Cuba's main TV news show. He added that state-of-the-art handling equipment has increased the level of operation and reorganization in port facilities. Nearly 900 ships operated in Cuban ports in 2007, but there is still much to be done in merchandise unloading, Arencibia stressed. (Prensa Latina, 31/3/08)

March 31: Nuclear physicist and State scientific advisor to Cuba, professor Fidel Castro Diaz-Balart, visited South Africa to extend science and technology collaboration between the two countries from biotechnology to nanotechnology and energy technology. In a lecture at the Department of Science and Technology, Castro Diaz-Balart, son of the former Cuban president, highlighted the importance of the biotech industry in Cuba and how it has become one of the significant generators of income for the country. South Africa's Science and Technology Minister Mosibudi Mangena expressed admiration for Cuba's biotech advancement, which, he said, had allowed its people access to affordable healthcare. Cuba had also advanced biomedical applications of nuclear technology, and assisted innovation of new biotech products for health and farming. Mangena said that South Africa and Cuba had enjoyed scientific and medical exchange programmes since 2001, and looked forward to continued relations. (Engineering News, 31/3/08)

March 31: New municipal agricultural representations are being created along the island. According to official newspaper Granma, the Agriculture Municipal Delegations (Delegaciones Municipales de la Agricultura) will fight against illegalities, and will work on human resources, and of the efficient exploitation of fertile land. Aimed at decentralizing decision making in the agriculture sector, the first Delegation was inaugurated in the municipality of Moralitos, in San Jose, Havana province. (Granma, 31/3/08)

March 31: Colombian President Alvaro Uribe met with a Cuban official delegation and agreed on tightening bilateral ties. A statement from the presidency said that, “it was agreed to stress cooperation in sectors like agriculture and energy” during the meeting with the high-ranking Cuban officials. Uribe also welcomed the support Cuba is giving to Colombia’s efforts towards achieving peace, and thanked Fidel and Raúl Castro in this regard. Orlando Lugo Fonte, a member of the Council of State and president of the Cuban Farmers Association, headed the Cuban delegation. “We are willing to do all we can together for the benefit of our peoples”, Uribe said. (AFP, 31/3/08)

March 31: Russian Transport Minister Igor Levitin arrived in Havana to preside over the 8th Session of the Cuba-Russia Mixed Inter-Governmental Commission for economic-commercial and scientific-technical collaboration. Levitin, who visited the island in July 2007, when agreements were signed in the fields of aeronautics, will meet Cuban Government Minister Ricardo Cabrisas. Both officials will talk at the Cuban Foreign Investment and Economic Collaboration Ministry (MINVEC) shortly before the beginning of the works of the Mixed Commission, the first made here between these two countries in the last eight years. The session will cover seven working groups: financial, energy, transport, science and technology, information and communications, economic collaboration and technical-military. Levitin is travelling with a delegation of over 100 governmental officials, entrepreneurs, and specialists, and will meet with Rogelio Acevedo, president of the Cuban Civil Aeronautics Institute (IACC), and will visit the installations of the Biotechnology and Genetic Engineering Center. Levitin has also planned an interview with Cuban Foreign Trade Minister Raul de la Nuez and a tour on port and railroad installations of the Cuban Transport Ministry. (Prensa Latina, 31/3/08)