U.S. firm readies 1st Cuba-bound commercial cargo
Illinois-based Archer Daniels Midland Co. was waiting for final approval
from the
U.S. Commerce Department to transport the corn, having already received
approval
to sell it, the New York-based U.S.-Cuba Trade and Economic Council reported.
"The shipment will consist of 24,000 metric tons of corn from farms located
in
Illinois, Missouri, Ohio, Kentucky, Indiana, Minnesota, and Wisconsin,"
the
organization's members-only weekly publication, Economic Eye on Cuba, said
on
Monday.
A copy of the publication seen by Reuters said Archer Daniels Midland was
deliberately including corn from various states "to reinforce the significance
of the
first shipment."
ADM spokeswoman Karla Miller confirmed the company hoped to ship soon.
"We are waiting for all the paperwork to be completed by various government
departments. We signed a number of contracts with the Cubans for delivery
in
December and ho pe to fulfill those contracts," she said in a telephone
interview.
"We are close."
Devastated by Hurricane Michelle in early November, Cuba reached out to
the
United States for food, signing contracts last month to buy around $30
million
worth of American wheat, corn, soybeans, rice, frozen chicken, and other
products in the first commercial sale of U.S. food to Havana in four decades.
Grain industry giants ADM and Cargill Inc. were among a number of companies
which signed contracts with Cuban state-run food importer Alimport.
The U.S. slapped an embargo on trade with Cuba soon after President Fidel
Castro
swept into power in 1959 and installed a communist government. But last
fall, the
U.S. Congress enacted legislation that eased some restrictions to allow
cash sales of
food and medicine to the island.
ADM has contracted the Singapore-registered and Mexican-owned bulk carrier
M.V. Ikan Mazatlan for the first U.S. shipment, which will be loaded at
a company
facility in Ama, Louisiana, the U.S.-Cuba trade council said, adding that
loading
would take 15 hours, with the ship expected in Havana four days after departure.
The M.V. Ikan Mazatlan was expected to be the first of more than a dozen
vessels
that will make the trip in the coming weeks.
Florida-based Crowley Maritime Corp. reported it had signed a contract
with Cuba
to begin transporting U.S. poultry in December to the island.
"We are hopeful that these initial, direct shipments of poultry from the
United States
to Cuba will result in ongoing direct vessel service for licensed cargo,"
Crowley
said.
The commercial transactions under way are unprecedented in four decades
of
hostile relations between Cuba and the United States, which have no formal
diplomatic ties.
Havana and Washington have stressed, however, that the sales are exceptional
because of the hurricane damage.
"The United States will allow the sales of food and medicines as permitted
by U.S.
laws. The embargo is still in place," acting U.S. Assistant Secretary of
State Lino
Gutierrez said in Miami earlier this month.
For their part, various Cuban officials have said the purchases are due
to Hurricane
Michelle and they have no plans to continue buying American until they
can do so
on a credit basis and earn dollars by selling their goods to the United
States.
Copyright 2001 Reuters.