|
Seven bad reasons in support of the lifting
of the Cuban trade embargo and how to refute
them
Franz Eugen Wagner, Ph.D.
I take it that the debate question for
discussion: "What would benefit Cuba now"
revolves principally around the issue of
Cuban trade embargo. Since I have but a
limited amount of time to discuss a complex
topic that requires detailed attention and
disquisition I shall try to be as concise as
possible and deal with the arguments for and
against in its most essential aspects. I
shall deal with the objections against the
embargo that I have heard most often,
followed by a rebuttal.
1. The Cuban trade embargo is unfair. It is
not sanctioned by international law. It
should be given up unconditionally
"Unconditionally". This much has Fidel
Castro said in an interview with a
Venezuelan journalist in the early 90’s,
although lately he has agreed, after 40
years of unwillingness to even broach the
subject , to discuss the issue of monetary
compensation to the American companies he
confiscated in the 60's, if, as a quid pro
quo, the United States is willing to factor
in the "damages" that the embargo has caused
to Cuba. Getting the cues from Castro, one
so-called NGO in Cuba , the Asociacion
Nacional de Economistas Cubanos (ANEC) in
declarations to be submitted to a conference
devoted to financing the development of poor
nations, held in Mexico in March
2002,claimed that due to the various actions
of the embargo, the well being of the Cuban
people had been affected to the tune of no
less than $70 billion dollars since 1960!
However, Castro's cohorts cannot even agree
on the extent of the "damages " brought
about by the embargo. According to the
declarations of Fernando Ramirez, ranking
Cuban diplomat in the
United States,
before the International Trade Commission in
September of 2000, the embargo has now
caused different economic damages, $300
billion, not $70 billion! which includes the
outlandish and unquantifiable "compensation
for human misery." Given the wide
discrepancy in the figures providedby
Castro's own minions , one cannot but
conclude that neither of these figures is
reliable, both having been pulled out of
Castro's bag of magic tricks, much in he
same manner a magician pulls rabbits out of
his hat. So much for the trust we must place
in Castro's statistics.
The embargo was not unfair and whatever
damage it may have initially brought about,
was self inflicted. It was Fidel Castro’s
action that was both unfair and harmful to
the Cuban nation as well as the American and
Cuban investors, for it involved downright
theft and helped fuel the animosity of the
U.S. government against his regime. It must
be remembered that what prompted the U.S. to
slap such a measure is the fact that Castro
expropriated American properties, beginning
with land, and never made arrangements to
pay for such properties, as international
law requires. On
October 25, 1960,
Fidel Castro, with a stroke of a pen,
confiscated 166 enterprises belonging to to
American companies or individuals, including
Sears Roebuck, Woolworth, General Electric,
International Harvester, Remington, Otis
Elevators and even a Coca Cola distributor.
The confiscation of all American assets
amounted to more than a billion dollars at
1960’s dollar value. It was preceded by
confiscation of land, about 76,000 acres,
which belonged to American businesses (we
will not consider the confiscation of land
in the hands of Cubans), carried out by the
so-called Agrarian Reform Institute which
promised, but never delivered, 20-year
promissory bonuses and had no intention of
redeeming them, alas!, not even of printing
them. To this day, both Cuban and American
owners of land at the time Castro took over
in 1959 are still waiting for their 4-1/2%
interest yielding bonds! In addition, the
U.S. Foreign Claims Settlement Commission
has certified 5,911 claims of
U.S. nationals against the government of
Cuba
totaling approximately $6 billion, with
interest, dating back to the early 1960's.
Cuba's frozen assets, until Bill Clinton
unfroze them before leaving office, were a
meager $125 million, before $97 million were
paid to the families of the pilots of
Brothers to the Rescue shot down by Castro's
air force in 1996.
The U.S. has not placed in the front burner
the issue of monetary compensation for the
stolen land, and other real property, but in
exchange it has simply said that if Cuban
American relations are to improve, he should
at least respect such human rights as
freedom of speech, freedom of the press,
free monitored elections, etc., in other
words rights enshrined in the UN Universal
Declaration of Human Rights. To this
proposition he has given a resounding NO.
What is good even for the Sandinistas, and
the Chilean Socialists who have agreed to
play by the rules of democracy (at least as
a tactic) ) is not good for him. The
question we must then ask ourselves is: if
he is so popular that there is no need to
submit to the mechanisms of "formal"
democracy, as his followers maintain, why
doesn’t he allow the exercise of human
rights in his country? Why has his
government even reject the idea of a United
Nations supervised plebiscite evaluative of
his performance? I think the words of the
Foreign Affairs Secretary of Mexico, Jorge
Castaneda said on April 23, 2002, help to
answer these questions. It is because Cuba
is, and I quote the Secretary, an
"antidemocratic and human rights violating
regime."
2. The embargo has lasted more than 40 years
and it has not worked. Castro is still
there. Let’s abandon it.
Somehow the length of time a measure is
applied has something to do with its merits.
This is a peculiar and whimsical argument
The Cold War lasted 50 years and only then
the Soviet Union collapsed. George Keenan
had predicted in the 40’s that the Soviet
Union would implode, but his belief was
rejected while his idea of containment of
the Soviet Union was accepted.. The
steadfast opposition of the West to Soviet
hegemonism made the implosion of the Soviet
Union possible. It shows that some policies
require long periods of time to be
successful. and considerable amount of
patience, something Americans are always
short of. even if their national interest or
human and economic costs are not at stake,
as is the case with Cuba.
In addition, by this logic, we would have to
reformulate our policy towards rather
unsavory characters. The Mafia has been
fought in earnest since the 60’s and is
still around; the Narco-Marxist guerillas in
Colombian have been trying for more than 40
years to overturn the constitutional
government of that country, let the latter
give up the struggle! The drug trade has
been fought seriously since the 70’s and it
has not waned, yet those of us who are not
Libertarians, would not abandon this
struggle. Moreover, diabetics, to push this
argument into a droll reductio ad absurdum,
have to take insulin all their lives, but no
one says to them: the medication has not
cured you, give it up! This is a bad
argument because it assumes that the
struggle against international evil should
be arbitrarily circumscribed by a time
limit. The case of Myanmar merits
consideration in this context. After tough
economic sanctions by practically all the
countries of the industrialized world,
international isolation, and pressure from
the Asian Regional Grouping, the military
junta of Maynamar released from prison the
popular leader Mrs. Aung San Suii Kyi
although it does not seem to be willing to
enter into a dialog with her and her
followers. In the case of Cuba, the European
Union, while enforcing the economic
sanctions against Myanmar, has sabotaged the
efforts of the American embargo, by enabling
the Cuban satrapy to survive thanks to its
investments. Why it adopted different
stances in the case of Myanmar and Cuba
cannot be explained in ethical terms but if
we follow the money-making trail, we might
find the answer. It shows that money
acquisition at any cost is the policy
approved by the governments of the European
Union. Myanmar was probably not as
profitable as Cuba for geographic and
economic reasons.
The cost of retaining the embargo is
minuscule for the U.S.. It is Cuba, not the
U.S. the country that is bearing the costs.
While it is true that part of the
agricultural surplus of wheat and rice could
be sold to
Cuba
and, indeed, Congress has already passed a
law authorizing such sales. It has not
authorized the sale of Cuban commodities to
the U.S. for which, incidentally, the
domestic market has no need. I shall return
to this important point in due course. The
inability of agricultural interests to sell
to Cuba is currently cushioned by farm
subsidies mechanisms (e.g. the Agricultural
Allocation Bill that authorizes funding of
up to $78 billion dollars for subsidies to
the agricultural sectors and for food stamps
recipients). Hence talk of American business
interests being harmed by the embargo is
unadulterated twaddle, especially if we bear
in mind that the amount of the commerce
embargoed by the United States constitutes,
as Bert Corzo points out in his highly
informative article "Si al embargo" (Cuba
Net Debates, March 11,2001) only 10% of the
commerce of Cuba with the world has been
embargoed. According to Katheleen Parker of
the Chicago Tribune (March 14, 2001) 150
countries enjoy formal trade relations and
business associations with Cuba, thus
circumventing the embargo. As of 2002, there
were 412 "mixed enterprises" in Cuba,
operated with foreign capital and Cuban
government involvement. Spain accounts for
the largest amount of foreign investment in
Cuba, followed by Canada, Italy, France,
Mexico and Great Britain. China and Germany
also have been increasing economic
involvement in Cuba, Furthermore, according
to Ernesto Senti, Vice Minister of Foreign
Investments and Economic Collaboration of
Cuba, no less than 46 countries are doing
business in Cuba witha total investment of
about 5,000 million dollars. The same
individual has disclosed that European
nations constitute 52% of the business
associations that have invested in Cuba
(Cuba Nueva, March 7th, 2002). Indeed, The
European Union (EU) is the island's main
trading partner, accounting for around 35%
of Cuban exports, while over one million EU
tourists visit Cuba each year (The News
Mexico.Com, November 6, 2002). Cuba can
purchase in these European countries, and in
Canada, whatever she needs to insure its
economic well being. Hence all this talk
that the American trade embargo is
"strangling" Cuba's standard of living is
unmitigated balderdash. The "strangler" must
be searched elsewhere and every unbiased
Cuban knows where he can be found.
American investments in pre-1959 Cuba were
never that substantial, even after inflation
is taken into account as the current foreign
investments. As Corzo reminds us, it is not
the embargo that concerns so much the Cuban
dictator, but the inability to obtain
subsidies and credits from the United States
which would ultimately be footed by the
American people, due to no payments or
endlessly delayed payments. We should be
wary of opening lines of credit to a country
whose external debt is, as of 2002, 1.5
billion dollars with Western countries and
1.2 billion dollars with the former
Socialist countries As Corzo points out,
Cuba has not serviced its external debt
since 1992! In addition, according to
Reuters, diplomats from the four
economically stronger countries of the
European Union have disclosed that Cuba owes
more than 150 million dollars of commercial
credits just for the years 2001-2002, and
that three of the four countries which
issued those credits had not been paid on
time. Cuba is also indebted to Mexico, Spain
and Venezuela and is constantly seeking to
renegotiate its debt to many countries, e.g.
Mexico. In March 2002, it "restructured" its
$380 million debt to this Latin American
country. On May 24, 2002, Venezuela 's
state-owned oil monopoly Petroleos de
Venezuela (PDVSA), according to
certainsources within PDVSA, notified the
Cuban government of its intention to stop
delivering around 53,000 barrels a day of
crude oil due to lack of payment, the
Caracas newspaper El Nacional has reported .
A PDVSA commission headed by Vice President
Jorge Kamkof recommended that company
president Ali Rodriguez end a bilateral
agreement under which PdVSA supplies Cuba
crude oil under favorable financial terms,
El Nacional reported, citing a company
document.In addition Alejandro Teran,
representing the Asociation of Trial Lawyers
of Venezuela in his suit against President
Hugo Chavez before the Supreme Tribunal of
Venezuela has reported that after examining
certain documents to which he was able to
gain access, Cuba. Petroleos de Venezuela
Sociedad Anonima was owed by Cuba $15
million. (El Nacional, June 26,
2002).However, according to more recent
figures originating in PDVSA, Cuba's debt to
Venezuela is much higher: $142 million
dollars (Dow Jones, July 25, 2002). In spite
that the majority of PDVSA's board of
directors opposed further deliveries of oil
without firm guarantees of payment by Cuba,
Chavez' appointed company's president, Ali
Rodriguez, said that the issue of payments
had been "resolved." Since no mention was
made by the Chavez government of how it
intended to collect payment on the debt, one
must assume that such a step is not
contemplated as of now. Under the agreement
with
Cuba,
80% of Venezuela's oil deliveries are to be
paid within 90 days of receipt. The
remaining 20% is sold in soft terms: payable
in 15 years with an additional two-year
grace period and an interest rate of only
2%.
Frank Calzon (Miami Herald, March 14, 2002)
has pointed out that one of the best kept
secrets is that the trade embargo has saved
U.S. taxpayers millions of dollars. Because
of the trade embargo, he goes on to say,
American banks aren't among the consortium
of European and Canadian creditors (known as
the Paris Club) which lent $11,200 millions
to Castro and have been waiting for years to
be paid. According to the Miami Herald
(April 8, 2002) Cuba suspended payment of
its debt to the Paris Club in 1986. In 2000,
it could not pay $175 million owed to the
French credit company COFACE. On Sepmber
Additionally, since about 1997, Castro has
indebted
Cuba
to the tune of $3,000 millions by securing
loans from private lenders just to finance
its annual deficit. Castro's inability to
pay his debts was so pronounced that in
years 2000 and 2001, France, Chile, South
Africa, Spain, Thailand and other countries,
canceled shipments to Cuba or refused to
provide export insurance to the Cuban
regime.
Cuba
owes more than $10 billion.
In a study released in the summer of 2002,
the European Union said that foreign
investment in
Cuba
was plummeting.
The EU study noted that direct foreign
investment in the island during the past
five years peaked at $488 million in 2000
and fell to $38.9 million in 2001. The study
blamed
Cuba's
state-run economy, the red tape involved
with practicing capitalism in a communist
economy, excessive utility costs because of
state monopolies and the arbitrary
application of laws toward foreign business.
It also cited the embargo as a reason-- but
not as the sole or most important reason, I
may add.
Moreover, according to a 2002 recent article
in the Economist magazine: "Cuba is $11
billion in debt. They cannot pay their
bills. The sugar industry is failing.
Tourism is down 20 percent, he roads, water
and electricity are a mess. Cuba is not a
good place for investors. As a result,
foreign businessmen, frustrated by the
bureaucracy, are leaving Cuba in droves"
More than $1 billion is owed to Argentina,
England, Canada, Venezuela and Russia.On
September 4, 2001, France froze $175
millions in short term commercial credits
because the Cuban regime did not pay those
credits in a timely manner. A detailed
account of why Cuba can be regarded as one
of the most indebted countries in the world,
a true economic basket case, was documented
in the Economist article. In all
seriousness, can the trade embargo be also
heldmostly responsible for Castro's
inability to put all the loans he has
received to good use or for his inability to
pay themon time as contractually agreed? It
is to this economic basket case that many
supporters of the end of the embargo would
like to extend American bank credits to sell
American goods and hold American taxpayers
as their ultimate guarantors. Finally, Dr.
Miguel Farias Jr. reminds us that not only
Castro's regime has defaulted in all foreign
loans, but, according to Forbes magazine,
Fidel Castro has stashed more than $1.4
billion in offshore accounts (Letter to the
Editor, Wall Street Journal, May 17, 2002,
p. A11).
The U.S.-Cuba Trade and Economic Council of
New York recently compiled a series of
reports on how international credit
reporting agencies evaluate Cuba. According
to the Miami Herald (April 8, 2002):
"The results weren't promising. Moody's
Investors Service, for example, gives Cuba a
Caa rating. Issuers rated Caa are considered
'very poor financial security.' The results
of the Dun & Bradstreet International Risk &
Payment Review weren't much better. That
report noted that exporters shipping to the
Republic of Cuba should prepare for payment
delays of 210 to 300 days. No rating...is
available from Standard & Poors...The
Council wrote to the Central Bank of the
Republic of Cuba more than a year ago
offering to undertake a credit rating
analysis of the country. The rating agency
has yet to receive a response."
The Ministry of Foreign Trade of Cuba asked
in February 2002 several of its creditors,
mostly banks and trading firms to
renegotiate $1 billion in commercial debt.
According to the U.S.-Cuba Trade and
Economic Council, Cuba's foreign debt stands
at $19.9 billion, not including the $24
billion owed to the defunct Soviet Union, a
debt that Castro has said he will not
service because the
Soviet Union
no longer exists. Moreover, according to the
2002 Index of Economic Freedom,
Cuba
ranked 153rd. Only Libya, Iraq and North
Korea ranked lower.
This dismal picture of Cuba's economic well
being is sharpened when we are reminded that
in 1959, the year Castro took power, Cuba
ranked third among Latin American countries
in gross domestic product (now ranks
twelfth) and that eleven million Cubans
produced in 2001 what four million Cubans
produced in 1940. These and other
interesting statistics are brought to light
in Carlos Alberto Montaner's article "La
desmoralizacion de los comunistas" (Cuba
Nueva, January 7, 2002). Finally, since the
embargo has not seriously damaged the
economic well being of the country, why is
Castro making such a fuss about it? The
other reason besides his need to obtain a
fresh supply of credits to bolster his
decrepit system of government is that the
end of the embargo would represent a
political victory for him. It would show
that the most powerful country in the world
had been unable to make Cuba comply with the
United Nations Universal Declaration of
Human Rights. Anyone who knows the flatulent
pride of the dictator cannot underestimate
how this pride, as well as the fact that his
political capital in Latin America, would be
enhanced by the ending of the embargo The
question then becomes, why should the United
States assist him, either through it's
companies or directly, in preserving his
tyranny without at least compelling him to
take steps to fully abide by basic human
rights? What makes supporters of the lifting
of the embargo believe American business
more successful in having its credits
honored than the Paris Club has been? The
track record is there for all to see.. In
this light, the endeavors of senators, such
as Byron Dorgan and Christopher Dodd
collapse for lack of persuasiveness.
According to the Wealth of Nations Triangle
Index Composite 1996-2000, published by a
number of reputable investment and security
firms,incorporating data from the United
Nations Human Development Program , out of
41 countries ranked, Cuba occupied the 39th
place,only above Nigeria and Vietnam. Costa
Rica, on the other hand occupied the 10th.
Can anyone seriously claim that this
extremely poor ranking is attributable to
the 10% of the external commerce that
Cuba
has lost as a result of the embargo?
When it comes to freedom of speech,
conditions could not be worse for Cubans
wishing to exercise it. The yearly
publication of Freedom House, Freedom in the
World 2001-2002, which rated political
rights and civil liberties in 142 countries
reveals that
Cuba
ranked among the ten worst countries when
evaluated in terms of the two previously
mentioned variables.
After more than 40 years of penury and
dictatorship, Cuba has nothing to show for
it, except in the area of education and even
there, education has been put at the service
of indoctrination and political correctness.
Students who are not "integrated" into the
Revolution, i.e. willing to support it
zealously, are barred from universities and
advanced technical schools. However, in
spite of having thousands of university
graduates, the productive capacity of goods
and services in Cuba is the second lowest in
Latin America In this connection, Prof.
Jorge Luis Romeu points out that "According
to the 1953 census, the last before Castro,
Cubans had the highest socioeconomic level
and income per capita in all of Latin
America. There was one physician per 1,000
inhabitants, more than 70 percent of the
adult population could read and write, more
than 50 percent of the population was urban,
and radio, newspapers, roads and railroads
covered the entire country." (The Syracuse
Post Standard, May 21, 2002).
Costa Rica,
without dictatorship and political
indoctrination, compares more than favorably
to Cuba in the field of literacy, education
and health.
Costa Rica's
population literacy rate of 94.8% is almost
identical to Cuba's of 94.5%, according to
recent statistics. In Costa Rica.Only 2% of
the those between 15 and 24 years of age are
illiterate. (Znet, " A letter from Cuba,
August 7, 2001; the World Development
Indicators.World Bank, for 1998, gives an an
average of 95% for both countries).
Furthermore , Costa Rica throughout its
recent history has invested more than 20%%
of its national budget on primary and
secondary education. (.In the case of Cuba
the education budget has been sharply
reduced. In 1989, it was 1,664 million
pesos. Nine years later, it was down to 964
million pesos , according to the UN Economic
Commission for Latin America and the
Caribbean (ECLA). Taking population
increases into account, this means the
amount spent on educating each person in
Cuba
fell by nearly half — from 152 pesos to 87.
Compare this figures with the amount of the
education budget of Costa Rica for 1996:
99,631.00 million colones, or 22.8% of the
total budget (Europa Yearbook, Year 2000).
In 1980-1981, when it was generously
subsidized by the Soviet Union, Cuba's
infant mortality rate, according to the
World Bank, Unesco and WHO was 19/1000 live
births; that of Costa Rica was even better,
18/1000 live births. More recent statistics
show that Costa Rica now has 11.8/1000 live
births, whereas
Cuba
a much higher infant mortality rate, 20/1000
live births (Statesman Yearbook, 2000).
Chile, now a democracy, has 9.36 /1000 live
births. Moreover, in a number of social
indicators, Costa Rica, let me repeat it,
without dictatorship and totalitarianism ,
excels Cuba. For example, with only a
population of 4,188,000 inhabitants, Costa
Rica surpasses Cuba (with a population of
11,800,000 inhabitants) in average annual
income ($4,450 versus $1,700), and in GDP,
if we consider that Costa Rica has a
population of only 4 million: ($15.85
billion versus $18 billion, ( See Robert T.
Buckman's Latin America 2000; Statesman
Yearbook 2002; World Book Encyclopedia 2001;
and World Almanac Book of Facts, 2002).One
caveat is in order: the average salary of a
working Cuban is 250 pesos per month (the
current rate of exchange is 20 pesos to a
dollar). This nominal income would have to
be augmented somewhat given that food
rations are sold at subsidized prices, and
health care, however poor, and education,
however doctrinaire, are added monetary
values to the salary. In spite of these
adjustments, the average Cuban does not earn
$1,700, per annum, but considerably less.
Another caveat is that Cuban statistics are
derived from many sources which are not
subjected to critical scrutiny before or
after they are released. Further, the extant
Cuban poverty is aggravated by the presence
of nutritional deficits in the diet of many
Cubans, deficits that cannot be attributed
to the embargo. According to the Report on
Food Insecurity in the World, 2001,
published by the United Nations Organization
for Agriculture and Food (FAO), there were,
during the period 1997-1999, 1.9 million
malnourished persons in
Cuba,
or 17.0% of the country's population. This
in a country that has a fertile soil and a
climate allows for year round harvests, and
has received millions of dollars from the
United Nations to surmount the failures of
Cuban agriculture.
The United Nations Human Development Index
for 1999 gave
Costa Rica
one of the highest ratings of human
resources among developing nations.
Reporters Without Borders in its first
worldwide press freedom index made public in
2002, reports that Costa is among the
countries in the
Western Hemisphere
with most freedom of the press. It ranked
15, ranking higher than the United States of
America. Only Canada surpassed it with a
rank of 5.
With these facts I have enumerated in mind
would anyone of sound mind, if given the
choice of living in a democratic country
like Costa Rica or a totalitarian,
oppressive country like Cuba be mad enough
to choose the latter? Can anyone with a
straight face claim that the differences in
overall social welfare in Costa Rica and
Cuba are due to the American trade embargo?
3.The American embargo has caused hardships
to the Cuban people, but not to Castro and
his stalwarts. Why punish the former?
The argument is wrongly framed. Again, what
has caused substantive hardships to the
Cuban people was the end of the Soviet aid
after the collapse of the Soviet Union and
the Eastern block. Soviet patronage and
subsidies in excess of $4.5 billion a year
enabled Castro to better face the trade
embargo and intervene militarily in African
countries with Soviet weaponry w ithout
totally crippling the dole addicted Cuban
economy. But let us examine the wrongs
inflicted on the Cuban people by the Castro
dictatorship that cannot be even tenuously
linked to the current economic relations of
the country with the rest of the world. Any
measure such as the lifting of the embargo
that would reward the forces of evil that
Castro represents, without the instauration
of human rights in that unhappy island would
be nothing short but a betrayal of the
West's most cherished democratic traditions.
Let us then descend in this pit of iniquity
that is the Cuban regime, to fully
understand why there can't be a relief to
this regime, a relief that is not even
dictated by the perceived national interest
of the United States.
In a book unpublished as of this writing,
entitled The Human Cost of Social Revolution
, Armando M. Lago (Ph.D in Economics,
Harvard University) and Juan Carlos Espinosa
mention some hardships inflicted on the
Cuban people that advocates of the end of
the embargo ignore. Dr. Lago and Espinosa
list by name persons who have died in
Castro's prisons since 1959: 30,000 of them
executed; 5,000 due to beatings and lack of
medical care while imprisoned; 2,000 as a
result of extra judicial assassinations. In
addition, they write, 60,000have died while
trying to escape
Cuba
by sea since he came to power. Consider that
only in the exodus of 1994 by sea, it is
estimated that 4000 persons died by
drowning, twice as many of the deaths that
occurred between 1953-1958 on both sides
during the struggle against Fulgencio
Batista's dictatorship.* The magnitude of
the crimes committed by the Cuban regime can
be best appreciated when one realizes that
Augusto Pinochet has been accused of killing
about 3,000 human beings during the early
stages of his coup in Chile yet has been
more intensely pilloried than Castro for his
horrendous assassinations and abuses of
human rights.
Dr. Lago and Espinosa have not been, of
course, the only ones to have documented
human rights abuses in
Cuba.
Agustin Blazquez and Jaums Sutton refer to
the United Nations involvement in such
documentation in "Against All Hope: The
Struggle Goes On," NewsMax.com, March
21,2002 . They write:
....it wasn't until 1988 that a group of
U.N. ambassadors was able to visit Cuba for
11 days and documented "137 cases of
torture, 7 disappearances, political
assassinations and thousands of violations"
of human rights. This trip was summarized
"in a 400-page report, which was the longest
report ever to appear on the agenda of the
U.N .
This 1988 report included "locking political
prisoners in refrigerated rooms; blindfolded
immersions in pools; intimidation by dogs;
firing squad simulations; beatings, forced
labor; confinement for years in dungeons
called gavetas; the use of loudspeakers with
deafening sounds during hunger strikes;
degradation of prisoners by forced nudity in
punishment cells; withholding water during
hunger strikes; forcing prisoners to present
themselves in the nude before their families
(to force them to accept plans for political
rehabilitation); denial of medical
assistance for the sick; and forcing those
condemned to die to carry their own coffins
and dig their own graves prior to being
shot.
* In 1959, the Cuban press reported that
about 23,000 had died in the course of the
revolution, but never documented those
figures with names or statistics. There is
reason to believe that this claim was
nothing but a canard used to show how
beneficial the deliverance from the Batista
dictatorship would be to the country.
Advocates of the end of the embargo do not
like to talk about Castro-inflicted
hardships on his thousands of victims and
the Cuban people in general.. It is obvious
that they fail to mention these hardships
because these dreadful calamities cannot be
attributed to the embargo. The United
Nations Commission on Human Rights has
condemned Cuba for serious violations of
human rights nine times out of ten, between
1990 and the year 2000. In April 2002, the
same Commission, in its annual meeting
called on Cuba to grant civil and political
rights to its citizens and to allow the
entry in Cuba of a U.N. human rights
representative to help its officials comply
with the resolution. a proposal, not
surprisingly, Castro's government rejected
this U.N. request.. Cuba is also described
as the most critical situation for freedom
of expression in the Hemisphere in the
Report on Intellectual Freedom in the
Americas (Year 2000) of the Inter-American
Commission on Human Rights, and every major
human rights organization, such as Latin
America Watch, Human Rights Watch; Pax
Christi; Reporters Without Frontiers (RSF),
a Paris-based organization which has
described the Cuban regime as "a predator of
press freedom" (The News, May 4, 2002).In
it's first worldwide press freedom index
released in 2002, RSF reports that Cuba is
among the six countries with least press
freedom. Out of 139 countries evaluated,
Cuba ranked 134. Amnesty International has
repeatedly drawn attention to violations of
human rights in Cuba. However, this these
human rights violation and suppression
freedom of the press are not seen as an
additional justification of the embargo by
proponents of its lifting. These are the
same "double standards" individuals are the
one that did not mind economic sanctions
against apartheid South Africa or against
Haiti under the military rule of Cedras and
his fellow generals.
At the beginning of 2002, the highest court
in Belgium accepted for eventual
adjudication the lawsuit signed by thousands
of Cubans victims of the regime, accusing
the two Castro brothers and some of his
highest military cronies of crimes against
humanity. However, the fact that the Belgian
court found enough merit in the complaint to
accept it, leaves Congressmen Charles
Rangel, Jose Serrano, Christopher Dodd,
Ralph Nader and some other U.S. legislators
of rice and wheat producing states, unmoved
or cynically indifferent.
It should be borne in mind, to return to the
role the Soviet Union paid in recent Cuban
history, that this country paid higher than
world market prices for Cuban sugar* and
took thousands of Cubans to be educated in
its universities and technical schools. It
also sold oil to Cuba at depreciated values.
It armed Cuba with "grants" that were not
considered debts. In short, Cuba became the
"welfare case" of the Eastern block. Instead
of, at least, improving the economy with
market reforms, as the Chinese have done,
Cuba preserved, with only minor deviations,
its Stalinist command economy which is
simply inept as the fall of the Soviet Union
has shown. . Many thinking heads from Henry
Kissinger to Senator Christopher Dodd, tell
us it is time to end the embargo, but they
never provide a sound argument for doing so,
They do not explain, to give one example
only, what the embargo has to do with the
fact that a hospital in Cuba is using
toothpaste to clean its sheets for lack of
soap. Soap is not an imported item. To
appeal to the embargo to account for this
ineptness is simply silly. The embargo does
not explain why Cubans in the Island have to
beg their relatives in the U.S. to send them
aspirin, penicillin, insulin, cold and
asthma medications, as well as many other
basic medications, because none can be found
in Cuban pharmacies (Can the Cuban
government not buy them in Canada with the
hard currency it's tourists leave in the
Island every year?). Neither can the embargo
explain why even sugar has been rationed in
the past, or why no adult Cuban can drink a
glass of milk after 40 years of Revolution,
or why Cubans still need to use ration cards
to purchase limited amounts of staples not
embargo related. The journalist Jeff Jacoby
reported in the Boston Globe (March 14,
2002, p. A15) that in one state-owned store
he visited that caters to Cubans with pesos,
he found that not only milk was unavailable,
but that also laundry soap, toothpaste,
salt, matches, fruits, green vegetables,
cheese and meat were also unavailable.
Again, since many of these staples are not
imported, why should the Cuban trade embargo
be blamed for their scarcity, especially
when they can be bought at state-owned store
that deal only in dollars?
We must bear in mind that
Cuba
has the money to build it’s medical
biotechnological sector for export or to
treat patients from abroad willing to pay in
dollars.. There is in Cuba aspirin and
penicillin for those foreign patients,
indeed. It should also be pointed out that
since 1992, the U.S. Treasury Department has
licensed the transfer of $230 million of
humanitarian aid to Cuba--more than the U.S.
humanitarian provided to any other country.
An account of how this aid was distributed
is the least congressmen that favor the end
of the trade embargo could ask of Castro's
regime.
(* The previous statement must be qualified,
at least for certain periods of time of
Cuban-Soviet economic relations. As Robert
E. Quirk points out in his biographical book
Fidel Castro, in the 60's the Soviet Union
"consented to buy increasing amounts of
Cuban sugar at the fixed rate of six cents a
pound through 1970--2.1 million long tons in
1965, 3 million in 1966 and 5 million in
each of the succeeding years. The agreed to
price was lower than the prevailing rate,
but higher than the average paid on the
world market in the previous years.")
It is not the trade embargo, but the world
sugar market that has also created, in large
measure, the dire straits in which Cuba
finds itself. Sugar exports constitute 75%
of the total exports of the island. Cuba
used to export between 4 and 5 million
metric tons to the Soviet block at inflated
prices. This is gone, although
Russia
continues to buy 2 million tons at world
prices. In addition the European Union (EU),
has become the first producer of sugar,
according to the most recent
statistics--about 15 million tons.
(1997-98). The European Union has subsidized
its sugar producers, enabling it to dump
sugar at depressed world prices in the
international market. The EU has agreed in a
recent Gatt Uruguay Round Agreement to make
some adjustments to its dumping policy. But
the European Union is not prepared to make
significant sacrifices when it comes to its
sugar exports. Figures from 1993. indicate
that Cuba did not have to compete with this
European behemoth before the Revolution. In
the 90’s, because of the subsidized market
offered by the Soviet block to Cuba, the
island was insulated from competition in the
world market. It must also be borne in that
the Soviet Union absorbed almost 2/3 of its
sugar production at artificially set prices.
Thus, the dire straits in which the economy
of Cuba finds itself is the accumulation of
three factors : (1) the end of Soviet
"welfare" for Castro; (2) the ineptness of
the command, centralized economy; and (3)
the low sugar prices worldwide due to
dumping and a glut of sugar , especially
since the early 90's. None of these factors
are attributable to the U.S. embargo. The
fact of the matter is that the European
Union has depressed sugar prices in the
developing world by 12% in the short run and
17% in the long run are doing more harm to
Cuba than the Cuban trade embargo This is
not to say that the Cuban trade embargo is a
mere bugbear; but it only has had the impact
of collaterally but minimally compounding
Castro’s self-inflicted wounds, not of
creating them.
It may be said that the burgeoning Cuban
biotechnology industry could replace the
lost Soviet aid and become a significant
source of hard currency. It is
unquestionable that Cuba has invested a
significant amount in its biotechnology
industry. Its most important center of
research, the Center for Genetic Engineering
and Biotechnology employed about 1000
persons as of 2002. Cuban biotechnological
products, reached markets in over 40
countries, according to recent statistics.
However, thse sales have netted Cuba only
about $100 million. Some reasons have been
advanced for this state of affairs: (1)
Transnational companies, while not immune to
intellectual property rights thefts, are
increasingly able to protect these rights
under WTO regulations (2) Cuba's lower
priced drugs (most of which are sold to
developing countries at prices that do not
allow large margins of profit) are the
result of Cuba's piracy, i.e. of copying,
without paying for them, patented processes
and thus ignoring intellectual property
rights, a case in point being the
genetically engineered protein erythropoetic
(EPO), which was invented in the United
States. Potentially, the
U.S.
would be its most lucrative market but
Cuba
faces obstacles like the U.S. Cuban
Democracy Act (1992) which prohibits the
export of any item that might help the
development of the biotechnology sector.
Because of this fact, it is Cuba, not the
United States, that should be expected to
make concessions, such as the restoration of
human rights in the Island. In any event,
the biotechnology sector is far from taking
the place of the sugar industry or tourism
as the main source of hard currency for
Cuba.
Tourism, however, has given the dictatorship
a new lease on life .It has become the main
source of hard currency for the Cuban
government .It is claimed that Cuba's gross
revenue from tourism was about $1,900
million dollars in 1999, surpassing sugar
and nickel. In 2001, 1,8 million tourists
visited the Island, mostly Canadians and
Europeans. However, these figures do not
shed light on the monetary benefits tourism
brings to
Cuba.
They mask the fact that after foreign
investors, tour operators, transportation
firms and hotel management companies take
their cut, the Cuban government net earnings
is probably $500 million annually . It is
far from clear which amount represents 43%
the balance of payments, as the Central Bank
of Cuba reports. However, it must not be
overlooked that Cuban exiles, whose family
ties are cleverly exploited by Castro, have
consecutively pumped into the Island in the
last few years at the very leasthundreds of
millions of dollars per annum by having
their family reunions in Cuba and sending
cash remittances to their relatives.
According to R. Richard Newcomb, of the
Office of Foreign Assets Control for the
Department of the Treasury (OFAC), in the
year 2001, up to 200,000 Americans visited
Cuba, more than half, Cuban Americans
traveling under special licenses.
Roberto Rodriguez in his article "El
embargo, que embargo?" in Junta Patriotica
(October 1st, 1999) writes that the per
annum dollar disbursement of the Cuban
exileswho visit and send money to their
relatives in Cuba . is at least $600 million
per annum. The president of the U.S. Cuba
Trade and Economic Council, John Kavulich
estimates that the remittances of exiles can
be thought to be anywhere between $375
million and $1 billion. The previous figures
differ, but not extremely, from the figures
provided by James B. Cunningham, the U.S.
Deputy Representative to the United Nations
on the Economic, Commercial and Financial
Embargo Against Cuba at the General Assembly
Plenary, who declared in 2001 that $800
million in direct cash remittances and $350
million in humanitarian donations have been
received in Cuba from the United States.
Reliable statistics on how much money Cubans
in the United States and American citizens
visitors have spent in
Cuba
are hard to locate, even as guess estimates.
We know that , for instance, of the 150,000
authorized visitors to Cuba who flew in from
the United States alone, in 1998, 82,000 of
them of Cuban origin and 68,000 native
Americans.
The Cuban population ( roughly ll million)
obtains its hard currency, mainly, by either
working in the tourist and tobacco
industries or by receiving it from Cubans
abroad. It thus seems that the Cuban exile
community, whose leaders are described by
Castro as a "mafia" is, if the previous
figures are correct, ironically, among the
strongest but unwitting and emotionally
exploited mainstay of the dictatorship.
Tourism, as we have seen, has benefited the
Cuban government and the Canadian and
European hotel consortia, but not the
average Cuban, since it has helped create a
two-tier economy, one tier made of Cubans
with access to dollars, especially those
working in the tourist industry who receive
tips in dollars, and the other tier without
such an access. The Cuban Labor Ministry ,
aware of the potentially explosive of this
situation has declared that as of 2001 ,out
of 4.3 million workers, 1.1 million will
receive a "portion" of their salaries in
dollars. However, it is not been specified
how substantial such a "portion" will be
even for this fourth of the population.
Furthermore, many Cubans complain that in
spite of the declaration of the Cuban Labor
Ministry, they are still being entirely paid
in devalued pesos, which do not allow them
access to the special government stores,
selling only to tourists and buyers with
dollars all sorts of much needed goods not
found elsewhere in the country .These goods
range from condensed milk to TV sets and
good quality garments. In a country where a
bottle of shampoo costs $6.00, one wonders
how quickly the "portion" of the salary of a
minority of Cuban workers are to receive in
dollars would disappear if they were to shop
in these "dollarized" stores This economic
apartheid is deeply resented by many Cubans
who view themselves as second class citizens
in their own country, unable to buy anything
in dollar-only stores, but also unable to
use the beaches and hotels frequented by
foreign tourists, which means the best
facilities Cuba has to offer.
Finally, some advocates of lifting the
embargo claim that the infusion of tourist
dollars and of investments that the end of
the embargo would allow would benefit the
Cuban people. However, it is not well know
that, as Joel Mowbray writes: "Doing
business with Cuba unavoidably props up the
regime because of the way Castro has
designed the rules of the game. Castro
double-dips from joint ventures: first by
splitting the profits, and secondly by
stealing from the Cuban workers. Foreign
companies don't employ Cuban workers; they
rent them. Companies must pay Castro for
each worker, in cash, and the regime in turn
pockets 95 percent, doling out the remaining
5 percent in pesos." (National ReviewOn
line, May 24, 2002).The end of the embargo
would allow Castro to expand its
exploitation of the Cuban people by doing
what he does now to a larger number of
exploited victims.
4. The next reason in favor of doing away
with the embargo runs as follows: Look here,
there is money to be made in Cuba.
Remember Coolidge’s, the "business of
America is business?" If everything else
fails, appeal to greed . There are some
salivating mouths claiming that 6 billion
dollars worth of goods and commodities could
be sold to Cuba. But unless the U.S. takes
the place of the Soviet Union and initially
subsidizes the Cuban economy with credits
and loans (coming out of American tax paying
pockets), and rebuild its shattered
infrastructure at a cost of billions upon
billions of dollars, the U.S. would have to
buy Cuban sugar produced by workers paid now
10 dollars per month in order to enable
Cubans to have money to pay for all these
goodies, without any guarantees that the
large portion of the profits made would not
go first to the apparatus of repression
(armed forces, secret police and Communist
Party cadres) and to the modernization of
its weapons systems and only lastly, to the
Cuban people. Moreover, one must ask: what
happens to the sugar industry of Florida now
producing 25% of the sugar consumed in the
U.S.?.
Furthermore , according to the American
Sugar Alliance, 80-85% of the sugar produced
in the U.S. is consumed here. The remainder
15% is imported from 40 foreign
countries--about 1,5 million tons. Under WTO
and NAFTA rules the
U.S.
is required to bring in AT LEAST that
amount, even if the U.S. does not need it
now! Any sale of Cuban sugar to a sugar
producing country like the U.S. would mean
that there would be less of the market for
the American sugar industry to go around..
In addition, what would happen abroad to
Brazil’s sugar market, one of the largest
producers of sugar, (even if a significant
amount of that country's sugar is used to
produce ethanol)? and to the Dominican
Republic’s or Mexico's market? to mention
only three sugar producing countries in our
hemisphere. We should ponder, in this
context, the following statement issued on
August 10, 2000 by Joseph Terrell, Director
of Public Affairs of the American Sugar
Alliance: "We are well aware of the
challenges lifting the Cuban embargo could
have on the US sugar industry. Also, quota
holders in other countries are monitoring
the situation closely as well because they
could stand to lose…we are monitoring this
closely." A similar view has been advanced
by the general manager of the Louisiana
Sugar Cane Cooperative and
secretary/treasurer of the Louisiana Farm
Bureau Foundation, Jackie Theriot, who said:
Lifting the embargo -- without holding Cuba
to production limits -- would flood the U.S.
market with sugar, dropping the prices and
bankrupting the domestic industry. (quoted
by Kevin Blanchard in his article "Now no
Time to Help Cuba," The Advocate ONLINE
(April 11, 2002) However, it is unlikely
that Castro's Cuba would accept being
hamstrung by production limits and it would
go against the free trade ideology espoused
by Washington these days.
Is the U.S. going to harden the grip of
Castro by granting him even a significantly
diminished market opening at the expense of
its own sugar industry? Imperil the
Brazilian sale of sugar to the U.S. just to
please Castro? Is the U.S. going to finance
the the conversion of Cuban sugar into
ethanol, as means to reduce the worldwide
glut of sugar even though the prospects of
creating a large U.S. ethanol market is
still an economic entelechy? Moreover,
consider that during one year, in the decade
of the 50’s (1959, for example) Cuba’s sugar
quota in the U.S. totaled 1.256 million
metric tons, roughly the same amount that
the U.S. now imports from 40 countries! It
is well known that when Cuba lost its
generous American sugar quota in the 60’s
this amount was allocated to other
countries. which used the allocation to
maintain their sugar industry and increase
their production. What would be the ripple
effect of the Cuban re-intervention in the
American sugar market, given that it will be
considerably less than what it sold in the
50’s and will offer sugar at a low price to
gain a foothold in the market? This
macroeconomic assessment has not been
addressed in the public arena by Castro’s
acolytes and foot soldiers in this country.
In addition, in the case Dominican Republic,
the European Union subsidized exports have
already caused a 20% income loss of income
in that country. If Cuba’s sales of sugar
take a slice of the American market, both
the domestic and international suppliers,
such as the Dominican Republic, Brazil, and
Mexico (who incidentally, has been
encouraged to develop an ethanol industry)
are going to feel even more severely
impacted. Even if Cuba did not make efforts
to create a capital intensive industry, as
the cane sugar producers in the U.S and
producers of sugar in the world have done
it, Cuban sugar would be produced more
cheaply, as already indicated, doubtlessly,
with Communist government subsidies in order
to retain a share of of the American market.
To reiterate, no one raises the issue of how
much damage the sugar import-export status
quo in this country and abroad . would
undergo. especially if we are aware that an
influx of Cuban sugar would do damage to
it--especially considering that the U.S. is
already the 4thth largest sugar producer in
the world, trailing Brazil, India and China.
Typical defenders of lifting sanctions need
to address the economic repercussions that
such a policy would create, especially in
publications accessible to the general
reader so the American public understands
what the stakes are. Finally, what appears
to be at best an American zero-sum game
would be in the end to what purpose? To prop
a hardened totalitarian dictatorship
unwilling to make the slightest concession
in the arena of human rights, judged to be
the worst violator of these rights in this
hemisphere? Surely, in exchange for the
turmoil the removal of the embargo would
cause, the least the U.S. should expect is
the democratization of the Island and a
reintroduction of Cuba into the comity of
democratic nations. It is time to disabuse
those who advocate the lifting of the Cuban
trade embargo of the notion that the lifting
of this embargo will carry with it no
serious economic consequences for the U.S.,
especially if it is accompanied by the
lifting of price supports, subsidies and
protective barriers which have hitherto
sheltered American sugar producers. While
the latter is not likely in the short run,
it must be kept in mind that Cuban sugar is
bound to play an important role in
post-embargo Cuban American relations. and
in disrupting the present delicate status
quo.
5. If we end the embargo, Latin American
countries, none of which officially support
the embargo, will be more sympathetic to the
U.S. It might usher in another "Good
Neighbor Policy".
That is one way of seeing it based entirely
on undisciplined speculation. But a more
plausible way of seeing the situation shows
that it will send a message to Hugo Chavez,
the leftist demagogue currently President of
Venezuela and admirer of Fidel Castro, who
has spoken of an "axis of power" with Cuba
and other likeminded countries, , to the
Colombian NarcoMarxist guerrillas (FARC) who
have been fighting against their government
since 1964, to the leftist Zapatista
Liberation Army guerrillas of Chiapas,
Mexico, and even to the Sandinistas of
Nicaragua and the members of the FMLN of El
Salvador, not to mention to the thousands of
U.S. haters in Latin America who will
rejoice in the fact that the Caribbean petty
tinhorn dictator was eye-ball to eye-ball
with the imperialistic gringo 500 lb.,
gorilla and the gorilla blinked after 40
years of intense staring. The prestige of
Castro, who once described the United States
as " a vulture feeding on the bodies of
humanity," will be tremendously enhanced and
a free shot of adrenalin will be given to
Anti-Americanism and Marxism-Leninism in
Latin America. Chavez of Venezuela is
becoming increasingly strident in his class
war and truculent language.- --especially
after witnessing the indecisive and
frightened attitude of Clinton vis-a-vis
Castro, and the refusal of Congress to fund
the anti guerilla war in the sums requested
by the Colombian President; wary of sliding
into another Vietnam. The ripple effect
would be a vindication of Castro and would
produce consequences in Latin America that
cannot be foreseen but are not likely to be
minor. Indeed, a crypto-Marxist like Chavez
has realized that opposition to the
Castroite tyranny has waned of late in the
U.S. thanks to the likes of Dodd, Rangel and
Waters, and the simplistic Council on
Foreign Relations, who have concluded that
Castro must now be openly aided.
6. Democrat sympathizers usually argue that
economic sanctions must invariably be
opposed. Is it ethical stance to make the
people pay for the "sins" of its leaders?
Hence the Cuban embargo must go.
This is a very weird sort of logic. Those
that advance this "ethical" proposition are
those who usually favored the economic
sanctions against South Africa during the
apartheid regime, and against Cedras' Haiti,
(was Rep. Charles Rangel opposed to the
economic sanctions against Haiti or actively
promoted it?), against the Burmese junta, or
against Yugoslavia, but do not favor
economic sanctions against Cuba’s tyrannical
regime. There are tyrannies and then there
are tyrannies, it seems, and they select
which they are going to oppose by applying a
simplistic litmus test: Is it a Communist
tyranny or is it a right wing tyranny?
Sometimes they remain silent about certain
embargoes for other political reasons. For
instance, they remain silent about the
economic sanctions against Iraq, while
raising a hue and cry about the trade
sanctions of Cuba, yet it is alleged that
hundred of thousands of Iraqi children have
died as a result of the U.N. embargo.
.Perhaps it is just a question of listening
to their "Master's voice." Perhaps they
remember what Clinton said, about Iraq in
the late 90’s:, according to Shyam Bhatia
and Daniel McGrory, authors of recently
published book :Brighter than the Baghdad
Sun: Saddam Hussein’s Threat to the United
States. These authors report that Clinton is
alleged to have said: "Sanctions (of Iraq)
will stay until the end of time, or as long
as Saddam lasts."
Remember, in this context, what his
Secretary of State Madeleine Albright said
about Saddam Hussein, as reported in Robert
Kaplan’s book The Coming Anarchy?: "Saddam
is the most dangerous man since Hitler." If
this is the case, why not try to persuade
Congress to remove the threat by any means
at the US’s disposal? The U.S. government
has not been as damning of Castro, and yet
we have not seen the Congressional Black
Caucus of the Democratic Party, or Senator
Dodd, carry water for Iraq as they have done
it for Castro's Cuba.
Inconsistency, whim, opportunism, and in
many cases pro-Communist sympathies, as is
clearly the case with Congressman Serrano,
is what governs the actions of a certain ilk
of Democrat politician, not a reasoned
assessment of the true national interest. .
After all, Democrats like Charles Rangel
(who is on friendly terms and has visited
the Caribbean tyrant in his lair), the
notorious Maxine Waters, and Christopher
Dodd did not want to ruffle the feathers of
Clinton when it comes to Iraq, but know that
his feathers were not that easily ruffled
when it came to Cuba. It seems that they get
their cues an |