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Posted October 15, 2007 by publisher in Cuba-World Trade

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By Marc Frank | Reuters

Revolutionary allies Cuba and Venezuela signed a raft of economic accords on Monday aimed at furthering cooperation, including plans for nickel and oil development and a billion-dollar petrochemical complex in Cuba.

Venezuelan President Hugo Chavez and acting Cuban President Raul Castro presided over the signings, the latest in a series of such events as the two countries cement their political and economic ties in fierce opposition to the U.S. presence in the region.

Ailing President Fidel Castro and Chavez in 2004 founded the Bolivian Alternative for the Americas, under which Monday’s accords were signed, as an alternative to U.S.-led free trade initiatives.

So far just Bolivia and Nicaragua have joined the pact.

The two countries have already formed 19 joint ventures in many different sectors, especially energy where they are upgrading a Cuban super-tanker port, operating oil tankers and putting into operation a long dormant oil refinery in central Cienfuegos province abandoned when the Soviet Union collapsed.

The new plans signed on Monday call for building a plant to turn liquefied natural gas back into gas and study the potential to build a fertilizer plant and other petrochemical plants around the refinery.

The countries also plan to upgrade Cuban low-quality crude oil, and explore for oil in four offshore blocks in Cuba’s Gulf of Mexico waters and two blocks along the north coast in western Cuba.

A joint venture to mine nickel waste and turn it into ferro-nickel and letters of intent for the construction and fishing industries were also signed.

Chavez signed a presidential decree authorizing formation of a joint venture to build and administer an underwater fiber optics cable between the two countries meant to bypass the U.S. embargo.


Monday was the last day of a three-day visit by Chavez that included repeated calls to form a confederation of states, a long meeting with Fidel Castro and a live phone conversation with the Cuban leader during Chavez’s regular weekly television program broadcast on Sunday from Cuba.

“Cuba and Venezuela could easily form a confederation of states ... This is no delirium,” Chavez said at the signing on Monday.

The phone chat with Castro was the first time Cubans have heard their president speak live since he handed over power in July 2006 to undergo the first of at least three major operations for an undisclosed intestinal problem. He has not appeared in public since.

A 17-minute video of the meeting with Chavez showed an alert if still gaunt Castro with a stronger voice than in previous videos.

“I am delighted that Fidel Castro has had an opportunity to have a chance to discuss things with his good friend President Chavez. It is too bad that in almost half a century of misrule in Cuba, he has never had the same kind of conversation with his own people,” said U.S. State Department spokesman Tom Casey when asked about Castro’s call to Chavez’s TV show.

Bilateral trade between Venezuela and Cuba was $2.5 billion in 2006, mainly Venezuelan oil and related exports to Cuba and not including Venezuelan payments for massive Cuban medical and educational assistance valued in the billions of dollars by both parties.

Since 2004 Cuba has reported double digit economic growth and a doubling of imports after years of crisis, helped further by soft Chinese credits and high prices for its nickel exports and despite a strengthening of longstanding U.S. economic sanctions.

  1. Follow up post #1 added on October 16, 2007 by publisher with 3905 total posts

    And this from Prensa Latina…

    Raul Castro Bids Chavez Good Bye

    Havana, Oct 16 (Prensa Latina) Cuban First Vice President Raul Castro Ruz said good bye to Venezuelan President Hugo Chavez Tuesday, after the Venezuelan President fulfilled three days on a working visit to Cuba to increase bilateral cooperation.

    Both leaders were at Havana"s Jose Marti International Airport, where Raul Castro said good bye to Chavez, accompanied by other high Cuban leaders.

    Chavez made his 298th edition of his Sunday TV program “Alo, Presidente” from the Cuban central city of Santa Clara, dedicated to the 40th anniversary of the death of Ernesto Che Guevara.

    Chavez and Raul Castro also presided the signing of 14 new collaboration projects, in the fields of agriculture, energy, telecommunications, construction and others.

    The telephone conversations between Cuban President Fidel Castro and Chavez during the Sunday program in Santa Clara had also a great repercussion, with images published and dialogues about world topics and bilateral exchange.


    So, I find it interesting that Raul was with Chavez. I thought they didn’t like each other. This latest visit by Chavez just might be the first step in Chavez’s plan for a united Latin America.

    Will Chavez take over for Fidel and Raul when they are incapacitated? Don’t dismiss the idea.

    Chavez could be the next Hitler and Cuba could be the next Poland (or Italy).

    Cuba consulting services

  2. Follow up post #2 added on October 16, 2007 by Curt

    If Chavez takes over Cuba will be much more free than it is now. The Cuban people will also enjoy much more freedom under Chavez than if the right wing exile leadershio in Miami takes over Cuba.

  3. Follow up post #3 added on October 16, 2007 by Curt

    Also Publiher, you insult me and my relatives who suffered during the Holocaust when you compare a noble man like Chavez to Hitler. There are no political prisoners in Venezuela and Chavez never murdered any of his opponents.

  4. Follow up post #4 added on October 17, 2007 by manfredz with 464 total posts

    i have a feeling under the surface Chavez is anything but a bleeding heart liberal who cherishes his people having total freedom…
    not sure whether he is a man who yearns power, power and more power for the sake of power , or if he has a vision on what his country and latin america should be like and that he needs substantial power to achieve it.
    Curt you’re rigth, relatively speaking, I accept that given the choice between Chavez and the Miami crowd runs the country, Chavez would be the better choice, but don’t think either is really good for the Cuban people and hope they will have other options open to them.

  5. Follow up post #5 added on October 17, 2007 by publisher with 3905 total posts

    Chavez is Castro with money. Don’t forget that.

    Cuba consulting services

  6. Follow up post #6 added on October 17, 2007 by cubanpete with 127 total posts

    Hugo and Fidel:  the new “Gordo y Flaca”.

    For change (cambio) we can believe in.

  7. Follow up post #7 added on October 18, 2007 by abh with 244 total posts

    it’s been a little while, but cubanpete brought a smile to my face

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