CUBA NEWS
May 12, 2004

CUBA NEWS
The Miami Herald

Use of dollars cut back, Castro government says

Fidel Castro's government answered a U.S. panel's suggestions for hastening the fall of the regime by restricting Cubans' ability to spend U.S. dollars on the island.

By Nancy San Martin, nsanmartin@herald.com. Posted on Tue, May. 11, 2004 in the Miami Herald.

In an move apparently aimed at punishing Cubans who benefit from cash sent by relatives in the United States, the Cuban government late Monday announced that most sales in dollars would be frozen in retaliation for new proposals by the Bush administration to hasten a democratic transition on the communist-ruled island.

Sales of goods at dollar stores, except for food and hygiene products, ''are suspended until further notice,'' state television announced, The Associated Press said.

The announcement was described as a reaction to ''brutal and cruel'' measures proposed last week by the Commission for Assistance to a Free Cuba, a Cabinet-level group formed in October and ordered by Bush to come up with ways to speed the fall of Cuba's socialist system.

The Cuban statement said the U.S. proposals ''are directly aimed at strangling our development and reducing to a minimum the resources in hard currency that are essential for the necessities of food, medical and educational services and other essentials,'' the AP reported.

The scope of the new measure and details on the implementation were not immediately clear, but broadcasters hinted that the dollar stores may reopen with even higher prices than their already-inflated prices. The suspension means those with access to dollars will no longer be able to purchase shoes, clothing and other so-called luxury items in the same manner.

HARD TIMES AHEAD

The announcement warned that ''days of work and sacrifice await'' and indicated that "the brutality of the measures adopted by the U.S. government sadly will raise prices.''

Observers said the decree signaled that President Fidel Castro was ready to play hard-ball by creating panic in the Cuban population in response to the measures in the 500-page commission report unveiled in Washington last week. The move also may be a tactic to create an infusion of dollars in the Cuban economy.

''The Cuban government is going to attempt to portray the Bush administration's decisions as detrimental to the quality of life for the 11.2 million citizens on the island,'' said John Kavulich, president of U.S.-Cuba Trade and Economic Council, a New York-based organization that monitors Cuba's economy.

''This is another measure to keep the grasp on Cuban society,'' said Andy Gomez, a senior fellow at the University of Miami's Institute for Cuban and Cuban-American Studies. "This has tremendous psychological impact. It emphasizes that those who get help face reprisals.''

Many Cubans depend on dollar stores to purchase goods that are either not available or are of poor quality at the state-run shops that accept Cuban pesos. The dollar stores have flourished since the economic collapse that followed the fall of the former Soviet Union and an end to subsidies in the early 1990s.

EFFECTS ON LIFE

If maintained, the measure could have dramatic effects on life in Cuba. Cash remittances are a core element of the Cuban economy. At least $400 million to $600 million are sent to the island each year in cash transfers.

Among the immediate actions outlined in the U.S. commission report is restricting annual remittances of $1,200 sent by Cuban Americans only to immediate relatives on the island. Members of Cuba's Communist Party, estimated at some 800,000 people, also would be barred from receiving cash transfers.

The recommendations also limit family visits by Cuban Americans to once in three years instead of the current one per year and cuts the authorized per diem for a family visit from $164 to $50.

Policy on Cuba will cost Bush votes, group warns

A group of exiles says new restrictions on travel to Cuba will hurt relatives on the island -- not Fidel Castro's government.

By Luisa Yanez. lyanez@herald.com. Posted on Tue, May. 11, 2004

A new Bush administration policy limiting travel and cash remittances to Cuba will cost the president votes in South Florida come November, a group of exiles who favor eased relations with the island warned Monday.

Four days after President Bush's announcement, leaders of five organizations said at a press conference they will encourage exiles to work against the president's reelection -- putting them at odds with other exiles who support Bush's new policy.

''Some 140,000 Cuban exiles visited the island last year; 100,000 of those lived in South Florida,'' said Andres Gomez, head of the Antonio Maceo Brigade. "This will mean many of those who can't travel to the island will vote against Bush -- and for a candidate who allows travel to Cuba.''

The group of exiles, who often stage political battles with staunch anti-Castro exiles because they favor an easing of the U.S. embargo on the island, called the new restrictions ''a violation of their civil rights.'' The restrictions will be a blow to the Cuban people who depend on money from relatives in Miami-Dade and elsewhere in the United States to get by, they said.

Without their ragtag humanitarian aid, their relatives, not Fidel Castro's government, will suffer, they said.

''This is a political mistake and it's inhumane,'' said Max Lesnick of the Alianza Martiana. ''This will boomerang'' on the administration.

But other groups such as the powerful Cuban American National Foundation support tighter travel restrictions.

The group that held the press conference blamed the tightening of rules on ''the Cuban right who have no feelings for those on the island,'' Gomez said.

Last week, Bush said he will cut back Cuban Americans' family visits to the island from once a year to once every three years.

He'll also limit the length of a visit to 14 days, cut the amount U.S. visitors can spend there, and limit which relatives can travel there.

He also will restrict who can receive money, which can no longer be sent to individuals but only to a single household.

The president called for spending an extra $45 million over the next two years, putting the tighter sanctions in place and also the purchase of an airplane to better fight Cuba's jamming of Radio and TV Martí.

Felix Ramirez, 51, who arrived in the United States in 1969 and says he visits the island three times a year and sends cash to relatives regularly, said he has a terminally ill sister in Matanzas. He fears he won't see her again.

''She's dying,'' he said. "In three years, she'll be dead and buried and I can visit her bones in some cemetery.''



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