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April 19, 2006

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Cuba launches program with Canadian firm to increase nickel and cobalt production

HAVANA, 19 (AP) - Cuba, among the world's largest nickel and cobalt producers, has launched a program with Canadian mining firm Sherritt International Corp. (TSX:S) to increase output by about half to 49,000 tonnes annually, state media said Wednesday.

The government's Cubaniquel and Sherritt are now in the "construction phase" of their expanded production program at the Moa mining facility in the eastern province of Holguin, the Communist Party newspaper Granma reported.

The daily quoted Cuban Basic Industries Minister Yadira Garcia as saying that the expanded production program was "the toughest goal the Canadians and the Cubans have faced" in the mining program.

According to Cuban figures released when the plan was announced a year ago, the expansion will increase nickel and cobalt production at the plant by around 50 per cent, from about 35,000 tonnes in 2004.

Nickel is needed to produce stainless steel and cobalt is used for creating alloys necessary for jet engines and in high technology components.

The $450-million-US expansion project was announced in Havana in March 2005 by Cuban President Fidel Castro and Sherritt International President Ian Delaney.

Ex-Caracas Oil Head: Don't Invest in Cuba

By Fabiola Sanchez, Associated Press Writer. April 17, 2006.

CARACAS, Venezuela (AP) -- Venezuela's plans to refurbish an idled Soviet-era refinery in Cuba represent a lost investment for this oil-rich South American nation, a former president of the state-run oil company said Monday.

The Cuban government and state oil company Petroleos de Venezuela SA, or PDVSA, announced an agreement last week for PDVSA to invest US$83 million (euro69 million) to rehabilitate the facility in the southern coastal city of Cienfuegos to refine, store and distribute crude oil.

But former PDVSA president Guaicaipuro Lameda criticized the deal, saying the refinery is too old to run profitably and too many of its Russian-made parts would have to be replaced.

"Making an investment to make that refinery function doesn't permit recovering the investment," said Lameda, who resigned in 2002 and quickly became one of the government's most outspoken critics.

Lameda accused Venezuelan President Hugo Chavez of investing in the aging refinery as a means of giving economic support to his close ally, Cuban leader Fidel Castro.

The rehabilitated refinery would produce about 15,000 barrels of gasoline, 14,000 barrels of diesel, 7,000 barrels of jet fuel, 33,000 barrels of fuel oil and 1,000 barrels of liquefied petroleum gas per day, according to PDVSA.

Production is expected to meet local demand, plus a surplus of about 9,000 barrels of gasoline and 600 barrels of aviation fuel to be exported each day to the Caribbean market.

Cuba will control 51 percent of the new joint venture, called PDV-CUPET SA, with Venezuela holding the rest.

Lameda said a 2001 economic-risk study showed that revamping the refinery would be a bad investment.

"Today it's less profitable because it's passed more time inactive," he said.

Since taking office in 1999, the left-leaning Chavez has moved to strengthen ties with communist-led Cuba.

Venezuela, the world's fifth-largest oil exporter, ships roughly 100,000 barrels of oil a day to Cuba under preferential terms, while Castro's government has sent thousands of doctors to treat the poor in this South American nation.

Venezuela is expanding its refining operations throughout Latin America. PDVSA plans to build a refinery in Brazil and increase output at refineries in Jamaica and Uruguay.

Demonstrators Bring 'Vamos A Cuba' Protests To School Board

WPLG Click10.com, April 19, 2006.

Demonstrators convened outside the Miami-Dade County school board building Tuesday to protest a Spanish-language travel book about Cuba that some Cuban immigrants feel doesn't belong on school shelves.

"Vamos a Cuba" was pulled from Marjory Stoneman Douglas Elementary School earlier this month after a parent who emigrated from the communist country complained to school administrators that the book doesn't accurately represent life there.

The book is geared toward second- and third-grade readers, and details the events and institutions in Cuba born under Fidel Castro's regime.

School officials said the book includes images of smiling children wearing uniforms of a communist youth group and a carnival celebrating the Cuban revolution of 1959.

In a letter to the school board, Superintendent Rudy Crew states that the book paints those events in a benign way and has called for the removal of the book from all schools.

But the school board voted 6-3 against yanking the book from school shelves, instead leaving it up to individual schools to decide.

The English-language edition of the book is titled "A Visit to Cuba."

Chavez Seeking to Militarize Venezuela

By Fabiola Sanchez, Associated Press Writer. April 18, 2006.

CARACAS, Venezuela - President Hugo Chavez constantly warns Venezuelans a U.S. invasion is imminent. Now he's begun training a civilian militia as well as the Venezuelan army to resist in the only way possible against a much better-equipped force: by taking to the hills and fighting a guerrilla war.

Supporters of the president, a former paratroop commander, are increasingly taking up his call. Chavez wants 1 million armed men and women in the army reserve, and 150,000 have already joined, surpassing the regular military's force of 100,000. Now Venezuelans are also organizing neighborhood-based militia units for Chavez's Territorial Guard.

Critics of Chavez say the real goal of the mobilization is to create the means to suppress internal dissent and defend Chavez's presidency at all costs. Thousands of Territorial Guard volunteers - housewives, students, construction workers - are undergoing training, earning $7.45 per session.

"We're going to be a country of soldiers," declares Roberto Salazar, an unemployed 49-year-old, after scrambling under barbed wire, wading through a mud trench and skirting burning tires with other volunteers.

Venezuela's citizen-soldiers come mostly from the slums where Chavez draws his fiercest support. They train on weekends, learning how to handle assault rifles and run obstacle courses through clouds of tear gas.

"Venezuelans need to know how to be military people so that we can defend our fatherland and our president," Salazar says.

Chavez insists the plotters of a 2002 coup that briefly unseated him had Washington's blessing. The United States quickly recognized the interim leaders; U.S. intelligence documents indicate the CIA knew dissident military officers were plotting against Chavez.

Chavez now says all Venezuelans must be prepared for a "war of resistance," and has noted that the hills around Caracas provide excellent cover.

U.S. troops would "bite the dust," he maintains, if they try to oust him and seize Venezuela's vast oil reserves. Top defense officials say Venezuela must prepare for "asymmetrical" war - military parlance for using non-conventional means against a traditional army.

Venezuela's army reserve has grown from 30,000 in 2004, says Gen. Alberto Muller Rojas, a top military adviser to Chavez.

The reservists are to be issued some of the army's older Belgian FAL assault rifles once Venezuela receives 100,000 new Kalashnikovs from Russia - approximately one for every regular soldier.

U.S. officials express concern that Chavez could be trying to export revolution. Chavez calls that an invention, and says the weapons will be needed for the 1 million Venezuelans he wants to arm. The civilian militias will not be issued firearms but their commanders say weapons would be made available in an emergency.

Critics also accuse Chavez of trying, Cuban-style, to consolidate power by assigning soldiers community tasks like serving as crossing guards and treating the poor in health clinics.

"The military devotion to Chavez is one of two keys to Chavez's survival. The other is the devotion of the poor," says Larry Birns of the Washington-based Council on Hemispheric Affairs. "It's an act of desperation to form an armed civilian militia. He may have reached that point where he feels a faction of the military is untrustworthy."

Rather than trying to topple Chavez with an invasion, it's more likely Washington is trying to undermine him by courting potential rivals within the military, Birns says.

Chavez has in turn sought to reward loyalty, granting handsome pay raises throughout the military. He expelled a U.S. military attache in February, accusing him of espionage. Washington expelled a Venezuelan diplomat in retaliation and has denied any attempts to overthrow Chavez.

In a recent interview, U.S. Ambassador William Brownfield resisted making judgments about the reserve force.

It's up to Venezuela's government and people to decide "how big a reserve force they want, what sort of chain of command they believe this reserve force should have, whether this reserve force should in fact be located in each and every block or town or village throughout the country," Brownfield said.

Chavez reminds his people the United States invaded Grenada and Panama to topple regimes it considered hostile. In both cases, resistance quickly crumbled.

Cuba's defeat of a CIA-trained force at the Bay of Pigs in 1961 is the model Chavez wants to follow.

The national guard has even enlisted an army of 500 Indians to defend the country with poison-tipped arrows, Chavez said recently, adding: "If they had to take a good shot at any invader, you'd be done for in 30 seconds, my dear gringo."

Associated Press writer Natalie Obiko Pearson contributed to this report.

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