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July
26 1993
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President Fidel Castro Ruz marking the 40th anniversary of the
assault on the Moncada and Carlos Manuel de Cespedes Garrisons at the
Heredia Theater in Santiago de Cuba.
(Source:
Radio Havana in Spanish, recorded: July 27, 1993, by Foreign Broadcast Information Service
(FBIS),
USA, remarks in the text are from the USA-administration)
Warning:
this text is translated by the USA-administration and from USA
databases, recording Cuban radio broadcasts!
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 Distinguished guests, Comrades: We
wanted a simple, quiet event, a solemn but austere event to address you.
We would have liked to invite all those who attended the Sao Paulo Forum.
We would have liked to invite the diplomatic corps. We would have liked to
invite many reporters, but that would have meant expenses in air
transportation, fuel, and all that, and above all we wanted austerity. We
would have liked to have all the people of Santiago de Cuba join us as
they have done on other occasions, but we all know that we are having
transportation problems. We did not want a huge mobilization. It is not
easy to speak during a huge demonstration. One has to make a huge physical
effort to speak at a huge demonstration. 3. As has already been said, we
are marking the 40th anniversary of the beginning of our armed
revolutionary struggle and 34 and ½ years of revolution. A colossal job
has been done in those years. This is not the moment for recalling what
has been done. This is a moment for thinking about how we are going to
defend what has been achieved. Many things were possible, in spite of the
unjust and cruel blockade, because there was the socialist camp and,
especially, the Soviet Union. The Soviet Union was a formidable support
that allowed us to resist not only the blockade but also countless
aggressions by imperialism. That allowed us to forge for ourselves a place
in the history of past decades. Our country's prestige grew considerably.
Cuba was barely known throughout the world, and it was not known for its
best virtues. 4. The socialist bloc crumbled. I will not tell you that the
socialist bloc, or better said, the socialist countries in Eastern Europe,
were products of authentic revolutions. However, the USSR was the result
of an authentic revolution. I recently had the opportunity to talk about
the prowess of the USSR when I answered a question at the forum. I talked
about what the USSR did for itself and for the world, what it did in its
historic struggle against fascism. 5. There is what it did for us.
However, that authentic revolution has also crumbled, or, to be more
exact, was made to crumble. This was a terrible blow for our country, in
every sense. It affected us politically, militarily, and, especially,
economically. 6. I do not want to mention statistics but it is necessary
to recall how our country, which in 1989 imported $8.139 billion in goods,
only two years later received imports amounting to only $2.236 billion. 7.
And this severe reduction did not happen over a three-year period: It came
about, practically, in one year: from 1991 to 1992, but to be more exact,
from 1990-when the reductions began. However, the really severe reductions
took place when the Soviet Union disappeared. It was then when we were
subjected, practically, to a double blockade. 8. The year 1992 was a hard
year. 9. As if this trial were not enough, we additionally had to endure
very adverse circumstances of another nature that further aggravated our
situation. 10. The second half of 1992 was dry. The first half of 1993,
from a climatic point of view, was really hellish. The so-called Storm of
the Century swept through the island, from one end to the other, during a
season that is not a storm or hurricane season. 11. Our sugar production,
which in 1992 was 7 million tons of sugar, something that was described as
a true feat, was considerably reduced: During that 1991-1992 harvest we
produced 7.03 million tons of sugar. The 1992-1993 harvest yielded only
4.28 million arrobas, that is, 2 million-I said arrobas; I meant tons of
sugar. That is, we produced 2.75 million tons less. 12. It is true that we
had not planned on 7 million tons for this year. We were suffering the
consequences of a deficit in fertilizers and other problems. We hoped for
a harvest slightly higher than 6 million tons. Revenues were down by
approximately $450 million this year and under these difficult conditions,
in a situation in which our imports had practically been reduced to 25
percent. I repeat: This year we received $450 million less in sugar
revenues alone, and approximately $1.719 billion are expected this year in
imports. 13. The storm of the century had already affected us for an
estimated $1 billion. It swept away a sizable portion of the tobacco
harvest, the plantain farms, and other crops. It caused considerable
damage to homes and industrial, agricultural, and social facilities. That
compounded the situation even more. 14. There were other adverse factors.
Nickel prices dropped more than $1,000 per ton, partly as a result of the
surplus minerals former socialist countries had and were throwing into the
market from their reserves. It reduced the price of that raw material
considerably. Nickel sulfur prices dropped almost $2,000 per ton. Shrimp
prices dropped $1,600. Lobster prices dropped more than $500. Practically
all the export prices' dropped, regardless of the other effects I
mentioned such as tobacco. That reduces exports. 15. That is the situation
I am telling you about clearly and honestly. I am not doing it to sadden
or discourage you but to let you know the truth. I know there were great
expectations surrounding this event marking the 40th anniversary in
Santiago de Cuba, not only in Cuba but outside Cuba. Well, at least it
proves that the Cuban revolution does exist and that Cuba is something.
16. There was talk about packages of measures, miraculous formulas. There
are no packages of measures and there are no miraculous formulas, nor can
there be. In other words, if we truly could magically pull things out of a
hat, the first thing we would do is liberate the world of imperialism
without shedding a single drop of blood. [applause] 17. We would not be
excessively considerate to capitalism or its agents either, although we
cannot say this very bluntly here, in front of our friends from the Sao
Paulo Forum, and it is not that I think they are capitalists-may God keep
me from accusing hem of that [laughter]-and Father D'Escoto even less, or
Father Pizarro, two or our illustrious guests this evening, and the two
are priests. [applause] 18. As I said recently, right now, under the
current circumstances, they cannot contemplate the construction of
socialism. There are no and there cannot be any miracles. The only
miracles possible are those produced by man's dignity, intelligence, and
honor. 19. There are ideas, objectives, strategies, and wills. There is
the need to make greater efforts and to face problems. 20. One of the most
serious problems we have-and the people must begin to know more about
this, although I think that the people know pretty much about it, but not
enough, I believe-is our most grave foreign exchange shortage. I say
foreign exchange because that is the only kind of currency we can use to
make purchases. 21. Before, there were foreign currencies and agreed-on
foreign currencies-the ruble, the mark. The currency of the socialist
countries was agreed-on foreign currency, or foreign exchange. 22. When
the Soviet Union and the socialist bloc disappeared, the agreed-on
currencies disappeared. Some agreements of this nature are still in
effect, with China and Vietnam. However, the bulk of our trade was with
the European socialist countries and with the Soviet Union. Nowadays we
have to pay everything with foreign exchange, to the last cent. We have to
pay with the money we receive from the sale of goods whose production, as
I have said, has been reduced, and these sales have been negatively
affected by the international economic crisis. 23. Many things have to be
bought with foreign exchange. We have to buy, first of all, fuel, so that
the country may keep moving. If there were no fuel we would have a unique
problem, a problem different from those we endured during the first years
of the revolution. During the first years of the revolution, by selling
our sugar at world prices we were able to buy 8 tons of fuel for each ton
of sugar. I have to insist on this; I have to make it clear. Nowadays,
fuel has monopoly prices and sugar has garbage prices, marginal prices, as
I have often said. Now, with 1 ton of sugar we can buy only 1.4 or 1.5
tons of oil. The country did not have this kind of problem in 1959 or in
1960, or when the blockade began and the Soviets came to our aid and
bought sugar from us. At that time they paid for our sugar at the world
market price and began to sell oil to us. 24. Later, as our relations
improved, we began receiving really fair prices for our products: sugar
and other products. When the oil prices boom occurred, our sugar prices
also went up, as a result of the agreements we had with the Soviet Union.
25. Now our sugar has a very small purchasing power in relation with oil.
If at this moment the oil-sugar price ratio were what it was in 1959 or
1960, our difficulties would be considerably smaller because with 1
million tons of sugar we could practically buy the essential amount of oil
we need under these circumstances. 26. That is one of the country's
serious problems. We must purchase oil, food, medicine, raw material, and
spare parts with foreign exchange. We must purchase everything with
foreign exchange. How have we managed so far without these [words
indistinct] the country's import capacity? It is unbelievable, a real
historic capability, that despite the great sacrifices, the country has
been able to function in an organized manner. That is one of our tasks.
The problems caused by the collapse of the socialist bloc will not be
solved from one day to the next, in a few days, a few months, or even a
few years. When will we be able to import $8 billion again? We must think
about that. All those who want to help the country and the revolution in
good faith must think about it. When will we be able to do it again? The
country has not lost hope for doing so some day. But now is not the time.
27. If we must seek convertible foreign exchange through various routes,
we will. Tourism grows and increases revenues by a high percentage each
year. Our gross revenue from tourism is nearing the 500 million pesos
mark. In 1993 our gross revenue from tourism will be more than 500 million
pesos, or dollars; $500 million in gross revenue, in net revenue. Tourism
is growing at a rate of 30 and 40 percent a year. However, it is
insignificant when compared to what we have lost in exports. Our
production of oil has grown, however, it is still very little when
compared to the huge demand for oil. For our economy to make progress, for
our economy to be functional, with at least little difficulty, we must
import at least 7 million tons of oil. We were using approximately 14
million tons of oil. This oil came from the USSR. Our population had
grown. Electricity was available in 95 percent of homes. We built our
electricity network and our generators to bring electricity to 95 percent
of the homes. That is an increase and our oil production helps. At times
we must start up certain power plants. They help generate electricity but
do not fully meet our needs. 28. This is why we must increase our income
in convertible foreign exchange. It is vitally important for the country.
Some of the measures that we have talked about lead to this. We have
mentioned the famous de-penalization for the holding of convertible
foreign exchange. That sole word, that sole phrase has unleashed much
speculation and rumor. It is one of the measures to improve the entry of
convertible foreign exchange. 29. Another way is to increase the number of
permits for family visits to Cuban citizens, or people of Cuban origin,
who reside abroad. Another measure aimed at this is a greater opening to
foreign capital investment. Who would have thought that we, so
doctrinaire, we who fought foreign investment, would one day view foreign
investment as an urgent need? We received (?factories), loans, and many
other things from the socialist bloc, but it has disappeared and we are
getting nothing. We are getting nothing from the non-existent USSR and
socialist bloc or from any international financial institution, which are
all dominated by the United States. Well then, greater opening for foreign
investment is one of the solutions we have to tackle the difficult
situation we face. We must also promote all productive and service
activities that will generate convertible foreign exchange and make a
greater effort to build tourist facilities and create employment. We must
give these measures a strong boost. 30. We can also implement several
measures involving our internal economy and services; we have not excluded
such measures. I do not wish to get ahead on matters that must be
carefully analyzed and weighed, even though we must act quickly. Acting
quickly does not mean being sloppy or acting rashly. We must not do things
that we will regret later because consequences were unforeseen. 31. Among
other things, we must confront the excess currency problem. It could be
harmful if it gets out of hand. In 1970 we had excess currency. We had
some 3.5 billion [currency not specified]. Today we have more people and
our economy has grown. However, circulating currency is three times more
today than it was in 1970. It is somewhere in the range of 9 billion
pesos. In 1970 it was possible to reduce the excess currency in
circulation in ways that are not easily accessible to us now. 32. Why did
the excess of circulating currency grow? Because not even during the
special period was the revolution willing, nor is it willing now, nor will
it ever be willing to sacrifice the people. In other countries they would
have adopted the famous hock [preceding word in English] measure. They
would have liberated prices, which would have had terrible effects on the
retired and low income sectors. They seek a balance between supply and
demand, mercilessly sacrificing the vast majorities. 33. However, our
revolution did not leave a single worker destitute, not even during the
special period. Nor did it forsake a single citizen-not a single
pensioner, not a single child, not a single mother, not a single
low-income family nucleus. It did not leave a single university
graduate-or the thousands upon thousands of doctors, engineers, and
specialists of all kinds who have graduated from our universities-without
a job. Their jobs are guaranteed. They have the right to acquire whatever
small amount is theirs-without having to request it. They receive it
through their [six-second break in transmission] consumer goods provoked a
[words indistinct] accumulating. Many people in this country live with
what they have, but there are people who avail themselves of the situation
to speculate in many [17-second break in reception]. 34. The famous
de-penalization of hard currency was widely commented upon. What are the
sources of this hard currency? There are various [five-second break in
reception] foreign investments, a large number of offices and personnel
which work in offices, and specific income in foreign currency received
[three-second break in reception]. Tourism is an extremely important
source of convertible currency, which reaches the people in many forms.
Transfers or remittances of money from abroad is an extremely important
source of convertible currency in the country, one of the sources that
exist in the country, and it circulates in the country-or, to say it
better, it is in the people's hands. 35. A system was established for some
time: Money could be sent in hard currency and it was collected in dollars
in Cuba, but in a special period situation the dollar.... [pauses] the
peso loses a lot of its value and then no one sends hard currency to be
exchanged for pesos. Other means are sought to send them. They enter the
country practically in a clandestine way that is impossible to prevent
because hundreds of thousands of tourists travel; and all that is
necessary is for a small portion of those tourists to travel with the
intention of distributing or redistributing.... [pauses] let us say
distributing foreign currency, and they can do it. We will not dedicate
our police to persecuting all the convertible currency that enters the
country through the tourism sector because we would have no tourism. 36.
The famous tips are a world-wide custom which we countered for a long time
but it is a reality that eventually prevailed. There were also mechanisms
and many restaurant workers changed the hard currency tips au par with the
Cuban peso. However, as the Cuban peso lost value, less and less hard
currency was exchanged for pesos, and it was accumulated and circulated in
one way or another. There are stores for tourists, and sometimes the
workers personally told the tourist: Buy me a pair of shoes or buy me this
or that. Do me a favor. Do not give me money because I cannot buy anything
with money. Do me a favor. Buy me that. If you are going to give me a tip
give it to me in products. That is what they told the tourists, and this
does not precisely help tourism. There were other ways of bringing money
and products into the country. 37. The packages have existed for a very
long time and there was a high charge for them, especially because they
were luxury items-at least not as essential as medicine or food. At a
certain moment following the special period we maintained the high cost or
the right to send other merchandise; however, there was a considerable
reduction in costs for sending packages with medicines. Not too long ago
this also held true for food packages. If there is a shortage of medicines
and thousands of packages arrive with medicines, this causes no harm to
the country-this benefits the country at a time when we have a shortage.
It would not make sense otherwise; it is some aid, we need to take into
account it is medicine. There are people who are very subjective with the
question of medicines. They believe that if they do not have a certain
brand they believe they will not get better. One of the measures taken was
to reduce to a minimum the cost of sending packages of medicines. Food
packages were also authorized a minimum charge. The same thing applies, if
a few thousand families-1,000, 10,000, 100,000-may receive a food package;
this does not harm the country. 38. But forwarding money is something that
is done everywhere. There are many countries in the world where most of
the income in convertible foreign exchange is money remittances from
abroad. Mexicans, for example, send billions [currency not specified] back
to their country. Dominicans send plenty as well-another group of citizens
who migrated for economic reasons. Cuba has had various types of
migrations abroad. Prior to the revolution many people migrated for
economic reasons, despite the fact that they were not allowed in, or their
entry was very much restricted. After the revolution a number of people
left due to political reasons. They migrated for political reasons,
beginning with the Batista followers, and then all those who because of
the revolutionary laws, the agrarian reform laws, the urban reform laws,
and all those measures that affected the country's privileged sectors,
marked the start of a significant political migration. But because
imperialism fully opened the doors for all those ho wanted to leave Cuba
including medics, doctors, professors, engineers, technicians-all those
who wanted to leave-many people took the opportunity the revolution
provided to migrate. They migrated really for economic reasons. The
migration phenomena takes place all over the world, from lesser developed
countries, from poorer countries, to the richer countries. 39. Today, one
of the biggest tragedies of the developed capitalist world is that
hundreds of millions of people want to emigrate there and they are not
allowed in. Many do so illegally, as best they can. The Americans built a
huge wall along the Mexican order that is 2,000 or 3,000 km long. At one
time they also left the doors wide open to all those who wanted to
emigrate from the socialist countries; today those doors are closed
completely. Today they are building a virtual wall that goes from the
Baltic Sea to the Mediterranean Sea and drafting laws so no person can
emigrate from the former Eastern European countries to the West. 40. This
creates huge problems in Europe, in Germany, with the immigration, with
all the existing unemployment, which has caused violence, xenophobia
against the immigrants who are precisely the ones who perform the worst
jobs-jobs the citizens of these countries refuse to do. It is a worldwide
phenomena. There were also many Cubans who migrated for economic reasons.
Regardless of the fact that political migration began to evolve to become
economic migration, once they establish themselves, once they have
businesses, they do not even care whether they return to the country or
not. They then also become an economic force. 41. We-precisely due to our
conflicts with the United States and conflicts with the worse elements of
that emigration, those who used to be politicians-had been very strict
regarding all this matter of transferal of money, although it was not
prohibited and it was carried out in a normal fashion in specific amounts
through the banks. This is a source of foreign exchange, of those
currencies that are going around.... [pauses] One goal of de-penalizing
foreign exchange, among others, is to avoid an enormous amount of police
work. In this way we avoid having a large part of our police force chasing
foreign currency throughout the nation, the courts sentencing people for
holding foreign currencies. The same way other matters have been
de-penalized, this can also be de-penalized. The idea is that it is no
longer a crime to hold foreign currency, to exchange currency that is
held, or even to open accounts in foreign currency. I prefer to have them
in bank accounts in foreign currencies. [words indistinct] foreign
currency, if there is no opportunity to use it. This makes no sense. But
now it has. As a result of tourism, many stores have been opened in the
nation. As [words indistinct] one way or another, those who have foreign
currency purchase n those stores. 42. There are the techno-stores, various
types of stores, including the famous Oro [gold] Stores that were so
controversial at one time, in those happy days. It would be nice if we
were living in the days of the Oro Stores. There were hundreds of millions
of dollars in gold then. 43. The Oro Stores secured important resources
for the country's economy. There is not much gold now, but there is more
foreign exchange and there will be increasingly more foreign exchange. The
idea behind this is to acquire foreign exchange, not by confiscating it,
but by the operation of commercial networks that we do not have. 44. There
is a fair number of tourism-related stores. We would have to use this
tourism network, other networks that already exist, and institutions that
would have to be created for that purpose. 45. The idea is to acquire
foreign exchange for the country. This is reason for the de-penalization
of possessing foreign currency. 46. This has been analyzed carefully.
Should the foreign currency be accepted just as it is, the same color, the
same bill? A majority of experts are in favor of issuing either a
convertible Cuban currency or certificates like those used by Cuban
citizens who save part of the foreign exchange they receive for traveling
abroad. For a long time this has been permitted. Sailors, airplane crews,
and others for some time have had authorization to buy in some stores. To
do this they require certificates, and they exchange the foreign currency
for the certificates. 47. The majority is in favor of issuing a
convertible national currency, but all this takes time, much time. 48. We
must see how some things can be handled. However, since we do not have
that national document, it may be necessary to use foreign currencies-some
convertible foreign currencies, not one but several-until we can have a
national convertible currency issued by the Cuban state. But that takes
time, and the measures we must take must be taken now. 49. There are
several steps. I tried to get ahead at the National Assembly. I had no
idea it would create such an uproar in the country and abroad, but I said
it and I meant to say it. It was not a slip of the tongue. I had planned
to talk about it today. I had planned to talk about it in general terms. I
wanted to talk about some general policy principles. However, we did not
have time, and I am glad I said it then because many opinions have been
expressed since then. 50. But that does not mean the Cuban peso will be
replaced even if you have to pay your bus fare in foreign currency and if
you have to buy your booklet with foreign currency. Everyone will continue
to pay expenses in local currency. Everyone will be paid in local
currency. I wish we had all the millions in the world to pay everyone in
convertible foreign currency. How lovely it would be. There would be no
more power outages and we would lack nothing. If we could print our own
foreign exchange many of our problems would be over. All our problems
would be over if we had a machine to print dollar bills, but those little
machines are in Washington and apparently they are very difficult to copy,
and legally they cannot be copied. So we have to resign ourselves to not
having a machine to print dollars, pounds sterling, or German marks. We do
not want to, plan to, nor should we break any laws. You must know that I
am only joking about this. What I am trying to say is that we must obtain
those countries' currencies with a more developed economy through the
procedures we have been talking about, but not to replace our national
currency. The peso will continue to be our national currency. Some day we
hope-life and experience still has lots to teach us-to have a national
convertible currency. Once that is done, anyone coming to the country can
change their foreign currency for our national currency. The Chinese use
that system. The tourists and everyone exchange their money for local
currency. The situation may not be the same; there are huge differences
between one country and another. The Chinese have their currency, and all
foreign exchange entering the country must be exchanged for Chinese
currency. We have not given up that idea. However, the peso will continue
to be our national currency. 51. Some people will want to buy and pay with
dollars, but that would not be correct. There is no reason why one should
pay in dollars or convertible exchange. However, someone will come up and
say: Hey, I will fix that old car for you. You cannot have.
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Republic of Cuba
