By FRANK DAVIES
Herald Staff Writer
WASHINGTON -- In a rare face-to-face meeting, the top Cuban official in
the
United States Monday urged U.S. business representatives and consultants
to
consider ``the enormous possibilities of investment, if we can have normal
relations.
``The Cold War is over, and we have no interest in creating tensions,''
said
Fernando Remirez, who heads the Cuban Interests section here. In a brief
speech,
he touted Cuba's accomplishments in health care and education while
acknowledging ``major problems and many shortcomings'' in the Cuban economy.
Remirez spoke to about 25 corporate and business association representatives
who held a day-long conference on the potential for doing business in the
island,
two months after the Clinton administration announced changes in policy
that allow
the restricted sale of medical and agricultural products to Cuba.
Despite Remirez's conciliatory tone and the very small opening in the Cuban
market, much of the discussion at the conference focused on the recent
crackdown on dissent in Cuba, including the trial of four dissidents sentenced
to
prison terms Monday.
The top State Department official for Cuba policy, Michael Ranneberger,
told the
participants after Remirez left that ``the deplorable human rights situation''
in Cuba
was one more reason not to reconsider lifting the longstanding embargo
on trade
with the island.
``There is some wishful thinking that the administration wants to get out
from under
the embargo, and that's not true,'' Ranneberger said. ``We're interested
in more
people-to-people contact, not with the Cuban government.''
He said the recent changes were designed to promote more exchanges with
the
Cuban people, such as the upcoming Baltimore Orioles game in Havana, and
``were not about business.''
Meanwhile, on a tour of Canadian cities, Cuba's Foreign Investment Minister
Ibrahim Ferradaz said the island-nation's economy will expand 2.5 percent-to-3
percent this year because of a record number of tourists and increased
sugar
exports.
Ferradaz is attempting to attract new investment.
``The year 1998 was complicated for Cuba because there were many ups and
downs in international markets, with more downs than ups,'' Ferradaz said
at a
breakfast in Ottawa.
Brushing aside questions about human rights violations, Ferradaz said Cuba's
economy grew 1.2 percent in 1998, less than half 1997's 2.5 percent growth.
The
El Nino weather pattern slashed average annual rainfall in Cuba by 50 percent
last
year which, along with hurricane Georges, halved sugar exports, Ferradaz
said.
Unlike the United States, Canada has had unbroken relations with Cuba and
is
one of its major trading partners. However, a slight opening is coming
for U.S.
businesses in Cuba.
The first set of regulations on how U.S. businesses can get licenses to
deal with
potential buyers in Cuba may come out this week. In a brief interview after
his
speech, Ranneberger said he was not sure what nongovernmental entities
in Cuba
could do business with a U.S. company.
Several participants at the conference, including representatives of
telecommunications and energy companies, pressed Ranneberger on why U.S.
policy allowed extensive trade with China and Vietnam, despite their poor
human
rights records, and blocked doing business with Cuba.
Ranneberger said there was an important difference: China was much further
along
in economic reforms, allowing outside companies to provide salaries and
benefits
directly to workers -- something Cuba refuses to do. And he said ``the
simple
reality'' is that Congress supports the embargo.
One consultant who advises companies on prospects for U.S.-Cuba relations
said
in the last year U.S. Treasury officials have made it easier and faster
to get licenses
to explore business possibilities in Cuba.
``Some of the barriers have been going down,'' said John Kavulich, president
of
the U.S.-Cuba Trade and Economic Council. ``Companies are bolder and more
vocal about getting and using information.''
Kavulich conceded that even with a license to do business in Cuba for health
care
products, for example, sales may be limited. He cited a company licensed
to do up
to $1 million in business that reported sales of about $29,000.This report
was
supplemented by Bloomberg Business News in Canada.
Copyright © 1999 The Miami Herald