Castro: improved relations - but not at any cost

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1 Castro: improved relations - but not at any cost ISSUE NUMBER JANUARY 2017 Highlights this issue: New high yielding tobacco variety being introduced Emphasis on revitalised conversation with youth Some US ports withdraw from agreements following Florida Governor s threat Russia says defence cooperation to be strengthened State supporting new construction-related industries President Castro has said that while he hopes that relations with the US will continue to normalise, Cuba will not sacrifice its independence and sovereignty to achieve this. In his first formal intervention on future relations with the US since President Trump took office, he told the summit of the Community of Latin American and Caribbean States (CELAC) that Cuba was willing to: continue negotiating pending bilateral issues with the United States, on the basis of equality, reciprocity and respect for the sovereignty and independence of our country, and to continue the respectful dialogue and co-operation on issues of common interest with the new government of President Donald Trump. Speaking on January 25 in Punta Cana in the Dominican Republic, he warned however, that it should not be expected that to do so Cuba will make concessions inherent to its sovereignty and independence. After noting that Cuba and the US can coexist in a civilised manner, he went on to speak in a hemispheric context. President Castro said that it would be desirable for the new United States government to opt for respect for the region, although it is a matter of concern that intentions have been declared that endanger our interests in the areas of trade, employment, migration and the environment, among others. Prior to President Trump taking office Ben Rhodes, the outgoing Deputy National Security Adviser to President Obama had observed that if the incoming US administration were to roll back the Cuba policy, it would significantly set back our position and our ability to co-operate with countries across the hemisphere. The speech was broadcast live on Cuban television. At the summit, CELAC members passed resolutions calling for the end of the US embargo, and the return to Cuba of the naval base at Guantánamo.

2 Emphasis on revitalised conversation with youth Cuba s Union of Young Communists (UJC) has said that one of the main challenges facing the organisation is to remain in the vanguard of Cuban youth. Speaking to the Cuban media about the organisation s plans to celebrate its 55th anniversary in April, Susely Morfa González, the UJC s First Secretary, was quoted by Granma as saying that as a political organization, we want to strengthen young people ideologically, but in a fresh, revitalised way, that comes close to their interests and leaves traces. Announcing a series of activities aimed at putting young people at the centre of events, she said: Our aim is for young people, militants or not from our organization, to feel committed to Cuba and its revolutionary project. We want to convey to them both enthusiasm and teachings. The UJC also said that it would reinstate a previous campaign to promote awareness and affiliation of adolescents and young people. In other youth-related developments, members of the Cuban National Assembly have begun a series of meetings with students of universities, high schools and technical colleges to explain the country s political and electoral system. The initiative follows discussions in the National Assembly and research that indicated that greater awareness was required. A report in Granma said that Yolanda Ferrer, President of the International Relations Committee of the Assembly, had used a meeting at the University of Havana to explain the merits of Cuba s model of democracy. She observed that it is indigenous, and that electoral campaigns should not be seen as the key issue in the process. In a further demonstration of the importance of the future role of Cuban young people, President Castro and other members of the country s historic leadership joined the traditional March of the Torches in Havana involving thousands of young people paying homage to Cuba s National Hero, José Martí, on his birthday. Before the parade began, the President of the University Student Federation (FEU), Jennifer Bello, urged the participants to ratify their commitment to the defence of their homeland and the Cuban revolution and to march to reaffirm that this is the young Revolution of Fidel, Raúl and the new generations. Since the passing of Fidel Castro, a redesigned and more attractive Granma has carried stories on an almost daily basis emphasising the important role of young people. In addition, it has been reported that the need to bring the people closer to [a better] knowledge of the Cuban Political System has been repeatedly stressed at meetings between members of the National Assembly and the Cuban media. Cuba State supports small construction-related industries. Cuba intends to encourage the growth of small industries producing construction materials from local raw materials as a part of the planned process of economic decentralisation.

3 At a press conference in Havana, officials said that there are currently 23 small industries of this kind, 19 of which were created to produce construction material locally after Hurricane Matthew caused extensive damage in October 2016 in Guantánamo province. Officials said that the National Group for the Local Production and Sale of Construction Materials is providing equipment and tools to support the establishment of these micro-industries. Among the products being produced are concrete and channel slabs. The Ministry of Domestic Trade is responsible for subsequent commercialisation and distribution. Auditors sign code of ethics. Reports in the state media have said that all of Cuba s recently qualified comptrollers and auditors working in the National Audit System are to sign a national code of ethics. Coverage in the state media, which featured pictures of new entrants signing the relevant document, said that the code emphasises the ethical precepts that should govern the conduct and personal action of all those who have responsibility for such work, stressing the values of objectivity, transparency, honesty and justice. Upgrade of Havana hospitals continues. Cuba is continuing to upgrade and renew its health services in Havana, according to an article in Granma written by student journalists. The report said that the repair and renewal of facilities and services in the most important hospitals in the capital was underway to raise the quality of care. The story quoted the Communist Party's First Secretary in Havana, Mercedes López Acea, as saying that one object was to ensure that the population is satisfied by there being a better service. The report also said that changes were being introduced to improve the logistical functioning of institutions. UN supporting livestock co-operatives. Cuba and the United Nations International Fund for Agricultural Development (IFAD) have agreed a project that will see support for the development of livestock co-operatives in four Camagüey municipalities. The project aims to boost the output of small farmers producing beef and diary, increase employment, and to generate improvements in the management of co-operatives. IFAD is a specialised agency of the UN. It principally works to support food production in developing countries through providing financial support for agricultural development projects. New high yield tobacco variety being introduced. A new, high-yield variety of tobacco being grown across farms in Pinar del Río and Artemisa has successfully passed the experimental phase. Corojo 2012 has greater resistance to diseases that affect tobacco crops, and is capable of producing yields of up to 2,350 kg/hectare, as compared to around 2,000 kg currently obtained from other more widely grown varieties. The Cuban media reported that the new variety was first grown by five selected producers on small plots in 2012 and The variety has subsequently been tested over increasingly large areas, indoors for outer leaves and outdoors for filler leaves. As a result, beginning with the campaign, Corojo 2012 has been authorised for cultivation on more than 200 hectares of land. Premium cigarette brand on sale in Cuba. Dunhill, the premium cigarette brand, has been added to the portfolio of Brascuba Cigarrillos SA products available in the Cuban market. The product will contain innovations related to freshness once opened, flavour and design. Brascuba said that Dunhill will be sold at CUC 4 per pack at three thousand sales points in the country. A menthol version is expected to be launched soon. United States Ambassador says both sides benefit from improved relations. In a speech in Washington to celebrate Cuba s National Day, the country s Ambassador to the United States, José Ramón Cabañas, has said that the idea that the US had made only unilateral concessions was wrong. Ambassador Cabañas said that never before in our common history had both nations negotiated for two consecutive years on such a diversity of issues. He went on to add that: We have all seen that important companies and business associations have expressed an interest in improving bilateral relations and regulating trade under the same rules applied to other countries. This task is still pending.

4 The Ambassador noted that both the US and Cuba had achieved unprecedented levels of progress, including 22 agreements covering areas such as health, environmental protection, law enforcement, migration, and travel. Ports withdraw co-operation following Governor s threat. Port Everglades and the Port of Palm Beach have pulled out of plans to sign co-operation agreements with Cuban port and maritime operators. The withdrawal came after Florida Governor Rick Scott threatened to cancel state funding for Florida ports which had a relationship with Cuba. Mr Scott said in a tweet that he was Disappointed some would enter into any agreement with Cuban dictatorship, I will recommend restricting state funds for ports that work with Cuba in my budget. The decision coincided with the arrival of the first export of charcoal from Cuba into Port Everglades, shipped by its tenants, Crowley Maritime Corporation. The decision came as a visit by a Cuban trade delegation began. The visit was to involve the signature of agreements with several US east coast ports, as well as a number of meetings in Washington. Port authorities on the US south-east coast have been keen to encourage increased trade and travel with Cuba, and have been exploring the possibility of establishing a working relationship with the Port of Mariel. Further call to end intelligence sharing. Congresswoman Ileana Ros-Lehtinen, (R-Florida) has joined five former US diplomats (Cuba Briefing January 9, 2016) in publicly urging President Trump to revoke the part of President Obama s policy directive on Cuba which relates to intelligence sharing. Under President Obama s directive, US intelligence sharing with Cuba only relates to drug trafficking, immigration and counterterrorism issues. Media says new trade negotiator has Cuba not-for-profit ties. Recent reports on Buzzfeed suggest that Jason Greenblatt, who has been chosen by US President Donald Trump to lead future trade negotiations, including those with Cuba, has ties to bodies that support a stronger relationship with Cuba. Mr Greenblatt, who is the White House s special representative for international negotiations has, together with his family, run the not for profits Triplets4ACause.com and InspireConversation.com. Both websites have, in the recent past, encouraged closer family ties with Cuba. Mr Greenblatt previously served as a Senior Vice President at the Trump Organization, and acted as the corporation s chief legal officer. Bronx art exchange cancelled. The New York Times has reported that the Museo Nacional de Bellas Artes in Havana will not loan the Bronx Museum any artworks for a planned collaborative exhibition between the two institutions. The Bronx Museum now plans to exhibit about sixty works from private and public collections held outside of Cuba. The first half of the Wild Noise exhibition opened in Havana at the Museo Nacional in 2015 with a loan of more than eighty pieces from the Bronx Museum s permanent collection. No reason has been given for the decision. Europe Slovakia wants more trade. The Slovak Investment and Trade Development Agency (SARIO) and the Cuban Chamber of Commerce have signed a memorandum of understanding during a week-long official visit by the country s State Secretary at the Ministry of Foreign and European Affairs, Lukáš Parízek. The Minister was accompanied by a delegation that included the Slovak Innovation and Energy Agency, Eximbanka, and business representatives. The discussions focused in part on opportunities in alternative energy and mining. According to the Slovak media, the areas of discussion included: A request for the easing of the Cuban visa regime for businessmen regularly visiting Cuba Requests for the creation of a timetable for the delivery of programmes

5 the possibility of Cuban entities using their contacts in other Latin nations to support Slovak product sales through agency agreements. Irish presidential visit planned. Ireland s President, Michael Higgins, is to make an historic official visit to Cuba in February. He will become the first serving Irish President to do so. He will also visit Colombia and Peru. The Americas Mexico returning Cuban refugees. Mexico's government has begun deporting Cubans unable to enter the United States after Washington ended the wet foot, dry foot policy which had previously granted residency and support to most Cubans who reached US soil. Mexican officials said that a first group of 91 Cubans was returned on a Mexican federal police jet on January 20. Caribbean should have done more on trade. The Director General of the Organisation of Eastern Caribbean State (OECS), Dr Didacus Jules, has said that regional governments have missed the chance to explore trade opportunities with Cuba. Dr Jules said that Caribbean nations had allowed the US embargo to prevent them from developing new trade links with Cuba, and warned that there would be great difficulty in doing so under the Presidency of Donald Trump. Speaking on the topic of The effects of Cuba on the OECS at a forum hosted by the Antigua & Barbuda Employers Federation, he questioned what the sub-region had given Cuba in return for the thousands of scholarships and other assistance it had provided. Dr Jules suggested that now President Trump was in office, taking advantage of the opportunities will be fraught with political challenges likely created by US dictation of terms. Reconnecting with Guatemala. WAMOS Air, a Spanish company, is to introduce a Madrid - Havana - Guatemala City service in June. In addition to providing an additional link from Madrid, the service reintroduces a direct air service between Guatemala and Cuba. Russia Defence co-operation to be strengthened. Russia s Deputy Foreign Minister, Sergei Ryabkov, has reportedly said that Russia is and will remain a faithful ally of Cuba. Speaking on January 28 at an event in Moscow to mark the 60th anniversary of Cuba s Armed Forces (FAR), he said that Russia stood shoulder to shoulder with Cuba. A report in the Cuban official media added that Roberto Garcia, the military attaché at the Cuban Embassy in Moscow, had used the event to highlight the continuing co-operation between the defence ministries of the two countries, pointing in particular to the recent signature of a programme to modernise Cuban arms. The report also noted that the Director General for International Co-operation of the Russian Ministry of Defence, Andrei Bujanov, had said that the traditional relations of friendship and co-operation between the armed forces of both countries will be strengthened and developed. China Renewable energy agreements signed. Cuba and China have signed ten new memoranda of understanding aimed at strengthening renewable energy co-operation. Reports in the Cuban media said that the agreements were signed during a three-day Cuba -China renewable energy forum in Havana. The agreements include: Cuba's Electronics Group and the Chinese company Haier establishing an energy-related joint venture, and a centre for research relating to the development of applications connected to renewable energy

6 An agreement between Cuba s Iron and Steel Industry group and the Chinese company Sany, to jointly develop and manufacture wind turbines Another agreement between an unnamed Cuban group and the Chinese consortium Yutong to develop electric powered buses. Over the horizon Cuba is actively encouraging Turkey and Turkish companies to become more involved in its tourism sector through investment and travel programmes. Cuban officials participating in the 21st Eastern Mediterranean International Tourism and Travel Exhibition (EMITT) said that the growth of Cuba s Turkish tourist market during 2016 up by over 40% on 2015 coupled with the introduction of direct flights to Havana by Turkish Airlines, opened up the possibility of a closer tourism relationship. Cuba has said that it will have a large presence at the Moscow International Travel & Tourism Exhibition, which is to be held from March Cuba is anticipating a significant increase in Russian visitor arrivals in Ethiopia and Cuba have agreed to enhance long-standing bilateral relations by increasing co-operation in science and technology. The agreement came during a visit to Ethiopia by the Cuban Vice President, Salvador Mesa. According to the Ethiopian news agency ENA, Cuba will do so though the establishment of a science and technology laboratory, as well as support for an increased transfer of knowledge and technology in the health sector. The relationship dates to the Ethiopia-Somali war in which Cuba played a significant military role. Please do not forward this publication Copyright 2017 The Caribbean Council Cuba Briefing is produced for Cuba Initiative Members and subscribers by the Publications Division of The Caribbean Council, Temple Chambers, 3-7 Temple Avenue, London EC4Y 0HP, United Kingdom. No legal responsibility is accepted for any errors or omissions. Publisher: The Caribbean Council Editor: David Jessop Subscription Rates: 200/US$450 per annum for 45 issues for up to 3 users (a discounted rate for additional users and companies registered in the Caribbean is available on application) For subscription enquiries contact: emily.soar@caribbean-council.org Cuba Briefing is a subscription publication which is available to paying subscribers and members of The Caribbean Council only. It should not be forwarded internally or externally within your organisation. All recipients need to be subscribed directly via The Caribbean Council distribution list. If you have not received this publication directly from the Caribbean Council, and would like to subscribe or be added as part of your company's membership, please contact emily.soar@caribbean-council.org now or subscribe online at Corrections or amendments should be sent to: publications@caribbeancouncil.org

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