Cuba says islanders perform miracles for their wages to endure the whole month

Cuba says islanders perform miracles for their wages to endure the whole
month
11 / 25 / 2010

The island nation says it will update its economic model to make it
"more socialist." MADRID, 24 Nov. (EUROPA PRESS) The ruling Communist
Party of Cuba (PCC) has recognized the islanders have become
"specialists in domestic figures" because they have to perform
"miracles" for their salaries to endure the whole month in a "sort of
subsistence economy."

In an article released on Wednesday, 'Granma' Daily refered to the
"economic sinners" who due to "incompetence", "ignorance" or "those who
violate the law " do not fit within the precepts settled by the
socialist model.

"We, Cubans, have specialized in domestic figures: some of us perform
miracles for wages to last the whole month, others send their bills to
relatives abroad for them to ship remittances and there are some naughty
who make a living out of nowwhere but not from real jobs, "says the text.

This has created a sort of 'subsistence economy',which is divorced from
reality instead a bad habit prevail in some many common places of the
Cuban economy, but this situation can't be afforded anymore, this is
"unsustainable."

That is why 'Granma' Daily insists on the need for all Cubans to think
about these "problems" and assimilate each of the rules contained in
'Draft Guidelines for the Economic and Social Policy. "

This economic program will be discussed in April at the Sixth Congress
of the PCC, containing a total of 291 measures, promoting et al, private
investment to reduce subsidies and the state's staff, as part of the new
strategies launched by the Cuban President Raul Castro since he took
office four years ago.

http://www.cubaheadlines.com/2010/11/25/28034/cuba_says_islanders_perform_miracles_for_their_wages_to_endure_the_whole_month.html

CG Repatriates 27 Cuban Migrants

CG Repatriates 27 Cuban Migrants
November 24, 2010
U.S. Coast Guard

MIAMI -- Crewmembers from the Coast Guard Cutter Pea Island repatriated
27 Cuban migrants to Bahia de Cabañas, Cuba, Tuesday.

Watchstanders at the Coast Guard Sector Key West, Fla., command center
received notification from the crew of the vessel Yankee Freedom II that
they were on scene with a rustic vessel with Cuban migrants aboard and
Cuban migrants in the water approximately 10 miles southwest of
Marquesas Key, Fla., Thursday.

The crew of the Yankee Freedom II rescued 19 Cuban migrants from the
water and maintained contact with the eight Cuban migrants remaining on
the rustic vessel until Coast Guard and Florida Fish and Wildlife
Conservation Commission assets arrived on scene.

Once on scene with the Yankee Freedom II, Coast Guard Station Key West
boatcrews and the FWCC boatcrew safely embarked the 27 Cuban migrants
aboard the FWCC vessel.

The 27 Cuban migrants were later transferred to the Coast Guard Cutter
Pea Island.

For more information on how to legally immigrate to the United States,
call U.S. Citizenship and Immigration Services (USCIS) at 1-800-375-5283
or visit the USCIS website at www.uscis.gov.

Once aboard Coast Guard cutters, all migrants receive food, water,
shelter and basic medical attention.

The Pea Island is a 110-foot patrol boat homeported in Key West.

http://www.military.com/news/article/coast-guard-news/cg-repatriates-27-cuban-migrants.html

Cuba deal boosts China's Latin American oil plans

Cuba deal boosts China's Latin American oil plans
Wed Nov 24, 2010 8:39pm GMT
* Cuban refinery is China's latest Latin American deal
* Asian giant set to get 500,000 bpd of crude from deals
* Panama Canal expansion may boost Cuba as oil center
By Esteban Israel

HAVANA, Nov 24 (Reuters) - China is taking another great leap forward in
its Latin American energy plans, raising Cuba's energy importance in the
process, with a deal to lead a $6 billion refinery expansion project on
the communist island, experts said this week.

The project, to be funded mostly by China's Eximbank, is the latest of
several significant moves in the region for the Asian power as it
continues to expand its global influence.

For Cuba, the refurbishing of its antiquated refinery in the coastal
city of Cienfuegos will provide an outlet for oil it hopes to tap soon
in the Gulf of Mexico, while also laying the groundwork for the island
to possibly become a key oil transhipment point for the Caribbean basin.

A unit of state-owned China National Petroleum Corp [CNPET.UL] expects
to begin work in early 2011 on the project that will more than double
the refinery's capacity to 150,000 barrels daily and include
construction of a liquefied natural gas terminal.

Venezuela, Cuba's closest ally, will provide financial guarantees in the
form of oil, a pattern followed by Beijing in other deals for energy in
Latin America.

In the past two years, China has financed projects and formed joint
ventures in Venezuela, Brazil and Ecuador which are expected to bring it
at least 500,000 barrels of crude oil per day.

It has leased a 5 million barrel storage facility on the Caribbean
island of St. Eustatius and reportedly talked with San Antonio,
Texas-based refining giant Valero Energy Corp. (VLO.N: Quote) about
buying its refinery on the island of Aruba.

The oil marriage of China with Latin America is one made in energy
heaven, said analyst RoseAnne Franco at energy and mining consulting
firm Wood Mackenzie in Houston.

"The regions are clearly of complementary interest. China is looking for
energy security while Latin America is eager for new consumer capital
markets," she said. "There is a good foundation there for the relationship."

MODERNIZING CUBAN INFRASTRUCTURE

The Cienfuegos project is part of larger modernization of Cuba's energy
infrastructure. Brazil is financing the refurbishing and expansion of
the port at Mariel, which will be the logistical platform for offshore
oil operations in the Gulf of Mexico set to begin next year.

Venezuela, Cuba's principal ally and top trading partner, is
refurbishing a tanker port at Matanzas and rehabilitating a
cross-country pipeline to the Cienfuegos refinery. It has also committed
to constructing a 150,000 barrel per day refinery at Matanzas, which is
about 60 miles (96 km) east of Havana.

The expectation that Cuba will find significant offshore oil reserves is
driving much of the work.

Several companies are planning to sink exploratory wells off Cuba's
northern coast starting next year.

The U.S. Geological Survey has estimated Cuba has about 5 billion
barrels of oil and 10 trillion cubic feet of natural gas offshore, but
Cuba says it could have at least 20 billion barrels of oil.

The other, larger piece of the puzzle is the expansion of the Panama
Canal, which is supposed to be finished by 2014 and will allow bigger
oil tankers to use the waterway linking the Pacific and Atlantic oceans.

Cuba is well positioned to serve as both a refining center and oil
transhipment point for the newly expanded canal, said Jonathan
Benjamin-Alvarado, a Cuban oil expert at the University of Nebraska in
Omaha.

"Cuba doesn't solve anybody's energy issues, but it expands the
opportunities of the global markets to have Cuba as another point of
transhipment or hub for oil services and activities," he said.

"There is a need for expansion and diversification of both refining and
storage capacity in the region, and Cuba fits perfectly," he said.

Should normal relations with the United States ever be restored, Cuba,
just 90 miles (145 km) from Florida, would be well positioned to serve
the U.S. market, said Jorge Pinon, an oil expert at Florida
International University in Miami. (Editing by Jeff Franks and Todd Eastham)

http://af.reuters.com/article/energyOilNews/idAFN2417046320101124?sp=true

Cuba creditors hopeful as storm season nears end

Cuba creditors hopeful as storm season nears end
2010-11-24 14:44:46 GMT (Reuters)
* Creditors hoping Cuba has unused cash reserve for storms
* Cuba said gradually opening up frozen bank accounts
* Still dragging feet on foreign debt payments, dividends
By Marc Frank

HAVANA, Nov 24 (Reuters) - With hurricane season almost over and Cuba
having passed its second year in a row without a major storm, creditors
are hoping the communist country will be in better financial shape to
pay its bills.

Diplomatic and business sources said this week the Cuban government may
have a cash reserve that it set aside in case of hurricanes and could
now use at least part of it to cut debt or reopen frozen bank accounts.

"We had been building up reserves since 2009. Hurricanes could have cost
us billions this year," a local economist said.

This year, despite an unusually active Atlantic hurricane season, Cuba
was struck only glancing blows by three storms that did little damage.

The Atlantic hurricane season officially runs June through November, and
there are no late season storms in sight.

"President Raul Castro is a military man. I'm sure he has been putting
aside what he can and expecting the worst," a Western diplomat said.

"So perhaps now they are breathing a little easier and will pay some of
our companies what they owe them. At least the situation will not get
worse," the diplomat said.

Cuba's economy was battered when two devastating hurricanes struck in
2008, causing what the government said was $10 billion in damage, and
then the global financial crisis hit the island hard.

Those events combined with poor planning and inefficiency within the
Cuban system left the country without enough cash to pay its bills and
few places to turn for help.

Cuba is under a strict U.S. trade embargo and excluded from most
international lending organizations that could help in a pinch, while
many creditors have tired of its repeated rescheduling of debt.

UNPAID DEBTS, FROZEN BANK ACCOUNTS

Many debts to governments and business were restructured or went unpaid,
foreign company bank accounts frozen, dividends owed joint venture
partners postponed and imports drastically reduced beginning in 2009.

Western diplomats and businessmen said Cuba was gradually unblocking the
funds, but at the same time still dragging its feet on foreign debt
payments and dividends owed its foreign partners operating in the country.

Cuba last reported its foreign debt at $17.8 billion in 2007. Most
analysts agree it is now well over $20 billion -- or close to 50 percent
of the gross domestic product and some 25 percent more than annual
export revenues.

Castro has pounded away at the need for Cuba to get its economic house
in order and pay its bills since taking over from his brother Fidel
Castro in 2008.

The country's growing debt service payments are a key reason for
Castro's push to overhaul Cuba's Soviet-Style economy, according to
government insiders.

The reforms, to be discussed at a Communist Party congress in April,
include drastic budget cuts and layoffs and ending most state subsidies.

They would also grant state-run companies more autonomy and give an
opening to small private businesses and foreign investment, cooperatives
and other "non-state" forms of running enterprises.

"Work with the maximum rigor to increase the country's credibility in
international economic relations through strictly fulfilling contracted
obligations," a discussion document for the congress states, while
emphasizing the need to increase exports and cut imports.

Castro has reportedly established a blue-ribbon commission to figure out
Cuba's foreign debt troubles.

"Short, medium and long term debt should be reprogrammed as quickly as
possible," and this time around "new payment schedules met," the
congress document states.

For that, more than one diplomat said, the country should start by
returning to the negotiating table with the Paris Club of creditor
nations. Negotiations broken off in 2001. (Editing by Jeff Franks and
Mohammad Zargham)

http://www.forexpros.com/news/forex-news/cuba-creditors-hopeful-as-storm-season-nears-end-176752

Cuba might lift restrictions, let baseball players sign abroad

Posted on Wednesday, 11.24.10
BASEBALL
Cuba might lift restrictions, let baseball players sign abroad

After years of rising defections, Cuba might let its players sign with
foreign leagues -- except Major League Baseball.
BY UZIEL GOMEZ AND JORGE EBRO
jebro@ElNuevoHerald.com

Something is moving silently within Cuban baseball that, if it comes to
pass, would end five decades of imposed tradition and push Cuban players
into what was once derided as ``the slave game.''

The Cuban Federation of Baseball is considering a proposal that would
permit Cuban players to join professional leagues in other countries, a
source close to the federation told El Nuevo Herald.

Federation vice president Antonio Castro, son of Cuban leader Fidel
Castro, floated the proposal to members of the Cuban delegation during
the 17th International Cup in Taipei, Taiwan, according to the source.

``Many rumors had been heard about Cuba looking for some sort of deal
with professional circuits,'' said Carlos Pérez, president of Miami
Sports Consulting, an agency that represents several Caribbean players.
``But we'd have to wait and see if this will work out or if it's just
another idea dead on arrival.''

The initiative would allow Cuban players to join professional leagues
and keep 60 percent of their wages, while the government collects the
remaining 40 percent, the sources said.

The countries where Cubans would be permitted to play are: Taipei,
Japan, South Korea, Mexico, Venezuela, Nicaragua and Italy.

Players would not be allowed to sign with Major League Baseball clubs
because of the United States trade embargo on Cuba.

Antonio Castro's proposal was submitted to his father, Fidel, and his
uncle, President Raúl Castro, the sources said. It has the support of
the national federation, although figures such as former star shortstop
Germán Mesa are said to oppose it.

``Should this be put into practice, it would generate a very interesting
panorama,'' said attorney Jaime Torres, who represents players José
Contreras of the Phillies and Alexei Ramírez of the White Sox. ``Let's
say a kid goes to Mexico to play. There, he could look at Major League
Baseball and compare. Nobody could prevent him from playing in the
United States, if he so wished.''

PURSUING DREAMS

If approved, the proposal would doubtlessly make it easy for players to
go abroad -- most of them with years of experience -- and pursue their
baseball dreams.

Cuba might have no alternative but to give a green light to the project.
As has happened with the timid moves in the economic sector, immobility
could be a worse choice.

Recently, former player Victor Mesa recommended that the government
allow players to sign contracts with foreign teams to slow down
defections, which have risen alarmingly in recent years.

``Other countries do it, so why can't we? In the end, they're stealing
our players, even those in the minor leagues,'' Mesa said. ``I favor
they be inserted into foreign teams after eight years of playing in our
national series. And through our channels, too, not as free agents.''

Mesa's comments were made public shortly after El Nuevo Herald announced
the defection of Yasiel Balaguer, a 17-year-old center fielder who is
looking to settle in a third country before signing with a major-league
team.

After pitcher René Arocha escaped the island in 1991, defections by
baseball players rose from a trickle to a flood. In 2009 alone, 35
players fled the country. This year, Cuba's favorite pastime lost
several figures, among them Leonys Martín, an experienced player on the
national team.

Several sources say that more than 350 players have left the island over
the past several years. Currently, there were about 20 Cubans on
major-league rosters.

A MONEY MAKER

The total value of the contracts signed between 2009 and 2010 by Cuban
players in the majors exceeds $70 million.

In the late 1990s, Cuba considered the idea of allowing veteran players
to participate in foreign leagues. Several played in semiprofessional
leagues in Asia and Europe, among them the legendary Omar Linares, who
played professionally in the twilight of his career in Japan.

The baseball authorities ``have a problem with so much talent that has
gotten away from them, so they want to stay on the good side of both God
and the Devil,'' Pérez said.

``The Cuban government wants to be both owner and agent, to satisfy the
players and simultaneously to keep control over them. It will profit,
because 40 percent of a contract is an abusive share. We'll wait and see
what happens.''

http://www.miamiherald.com/2010/11/24/1940622/cuba-might-lift-restrictions-let.html

China company to lead $6B Cuba refinery update

China company to lead $6B Cuba refinery update
Project will include refinery, LNG terminal
By Esteban Israel, Reuters November 22, 2010

HAVANA - A unit of China National Petroleum Corp (CNPC) is set to begin
in 2011 a $6-billion expansion project at Cuba's Cienfuegos refinery in
one of the biggest investments ever on the communist-led island, a
source close to the project said Monday.

The blockbuster deal will be financed mostly by China's Eximbank and
backed by financial guarantees in the form of oil from Venezuela, Cuba's
close socialist ally and leading trade partner, the source said.

State-owned CNPC's Haunqiu Contracting and Engineering Corp is expected
to start the project in the first quarter with completion planned for
the end of 2013.

The Italian unit of French oilfield service company Technip will do
design and engineering for the project and assist in construction.

The expansion will increase the capacity of the Soviet era refinery 155
miles southeast of Havana to 150,000 barrels per day from 65,000.

But it will also include construction of a liquefied natural gas
terminal with capacity to process 2 million tons of gas annually, and a
150 megawatt electricity generation plant.

"It is one of the biggest investments in the history of Cuba. It's a
minimum of $4.5 billion just for the refinery and another $1.3 billion
for the LNG terminal," an executive involved with the project told Reuters.

The expanded refinery could play an important role in processing Cuban
oil if the island finds significant quantities of petroleum in its
waters in the Gulf of Mexico.

Several companies are planning to sink exploratory wells off Cuba's
northern coast starting next year.

The project greatly expands China's role in Cuba's energy sector, which,
at least publicly, has been small. China is Cuba's No. 2 trade partner.

Beijing is assisting in production of oil along Cuba's northern coast
and has leased an onshore block for exploration near Havana.

CHINESE FINANCING, VENEZUELAN GUARANTEES

The offshore drilling rig to be used in exploring Cuban waters next year
has been under construction in China, but whether the Chinese government
has had a role in that project is not known.

Although final details are still being negotiated by the governments of
China and Venezuela, the source said about 85 per cent of the cost will
be financed by China's Eximbank and secured by China Export & Credit
Insurance Corp.

"But the investment is totally guaranteed by the Venezuelan government,
through off-takes of PDVSA crude oil," said the source.

The Cienfuegos refinery, operated by state-owned CubaPetroleo and
state-owned Petroleos de Venezuela (PDVSA), has been the centrepiece of
the strategic alliance between Cuba and Venezuela.

The refinery was built during the Soviet era, but never operated until
it was activated in 2007 after Venezuela helped refurbish its antiquated
facilities to process part of the 115,000 barrels a day that Venezuela
sends to Cuba at preferential terms.

The most recent official figures showed Cienfuegos was producing about
55,000 barrels per day of oil products.

Refinery expansion will become important for Cuba if significant
offshore oilfields are found in its waters, and the Cienfuegos project
is being done with that in mind.

"The expansion of the refinery is tied to the exploration in the Gulf of
Mexico," the source said.

The U.S. Geological Survey has estimated Cuba has about 5 billion
barrels of oil and 10 trillion cubic feet of gas offshore, but Cuba says
it could have at least 20 billion barrels of oil.

A consortium led by Spanish oil firm Repsol YPF is planning to drill an
exploration well next year, as is Malaysia's Petronas in conjunction
with new partner, Russian firm Gazprom.

Other oil companies such as Brazil's Petrobras, ONGC Videsh, a unit of
India's Oil and Natural Gas Corp, PDVSA, PetroVietnam and Russia's
Zarubezhneft have exploration leases in Cuban waters, with plans to
develop them.

Oil expert Jorge Pinon at Florida International University in Miami said
Cuba has been installing oil storage tanks in Matanzas along the
northern coast and reconstructing a pipeline that runs from there to
Cienfuegos.

"The pieces of the puzzle are falling into place," he said.

http://www.calgaryherald.com/technology/China+company+lead+Cuba+refinery+update/3867458/story.html

Raul Castro: Economy Is Cuba's "First Order of Business"

Raul Castro: Economy Is Cuba's "First Order of Business"

HAVANA – Cuban President Raul Castro said that the economy is the "first
order of business" for all leaders of a country where it is necessary to
apply "true savings programs" and he insisted that the ideas of
predecessor and older brother Fidel "are the basis" for all that is
being done today on the communist island.

The head of state made his remarks at a weekend meeting of the Council
of Ministers to analyze the economic and budget plan for 2011.

"The first order of business for all the political leaders is the
economy and one has to fully throw oneself into its study, performance
and management," Raul Castro said at the session, which was also
attended by leaders of the governing Communist Party.

He also insisted on the need to implement savings programs in Cuba
"because it's the most rapid and secure source for obtaining resources,
avoiding waste" with measures that "only require common sense."

As he had said already a few days ago, he mentioned that the ideas of
Fidel Castro "are the basis" of the policies that are currently being
carried out, an allusion to the plan of cutbacks and layoffs to "update"
the socialist economic model.

He made this statement after alluding to a recent speech by his older
brother at a meeting with students, where the former president "rescued"
a 2005 address in which he warned of the risk of self-destruction for
the Cuban Revolution and the need to correct mistakes.

Cuba is presently immersed in the debate over the economic reform plan,
which will dominate the agenda of the sixth congress of the Cuban
Communist Party, set for the second half of April.

EFE

http://www.laht.com/article.asp?ArticleId=379039&CategoryId=14510