Identifier
Created
Classification
Origin
06HAVANA23623
2006-12-21 16:35:00
CONFIDENTIAL
US Interests Section Havana
Cable title:
CUBA: REGIME ECONOMIC THINKING, PLANNING CONTINUE
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C O N F I D E N T I A L HAVANA 023623
SIPDIS
SIPDIS
STATE DEPT FOR WHA/CCA
E.O. 12958: DECL: 12/21/2016
TAGS: PGOV PINT ECON KDEM CU
SUBJECT: CUBA: REGIME ECONOMIC THINKING, PLANNING CONTINUE
TO EVOLVE
REF: HAVANA 23606 AND PREVIOUS
Classified By: COM Michael E. Parmly for Reason 1.4(d).
C O N F I D E N T I A L HAVANA 023623
SIPDIS
SIPDIS
STATE DEPT FOR WHA/CCA
E.O. 12958: DECL: 12/21/2016
TAGS: PGOV PINT ECON KDEM CU
SUBJECT: CUBA: REGIME ECONOMIC THINKING, PLANNING CONTINUE
TO EVOLVE
REF: HAVANA 23606 AND PREVIOUS
Classified By: COM Michael E. Parmly for Reason 1.4(d).
1. (C) Summary: A well-informed off-island source briefed us
on December 20 on what he had learned of the evolving
activity within the regime leadership to address the economic
situation. Our source reports that the regime for the moment
is focusing new ideas in just two provinces -- Pinar del Rio
and Villa Clara. Our source reports that the top leadership
in those provinces is consulting more with farmers in
particular. The Spanish Ambassador reports similar
ebullience in re-examining economic policy in general. We
find the reports credible, and see them as pointing toward a
new and very different management and leadership style of
Raul and his clique. End Summary.
2. (C) A well-informed source told us December 20 of further
details on the evolving thinking within the regime on
economic policy. (For background, see reftel.) Our source
said he had learned of concentrated efforts in two provinces
-- Pinar del Rio, on the western side of Cuba, and Villa
Clara, in the island's center -- to try new methods of
economic governance and management. Our source pointed to
two specific manifestations of the new style:
--The agricultural sector was the main focus. Party leaders
in the province have had a series of meetings with local
farmers, at which the leaders asked what kinds of policies
the farmers would need to see in order to increase their
production. The answer they got back, according to our
source, was unequivocal: Fix the price structure. The
farmers reportedly complained that at current prices, they
had no incentive whatsoever to work harder to get production
up.
--More broadly, however, the top leadership in the two
provinces had been holding a series of meetings on more
general topics than just farming or even economics. Again,
our source told us, the style was different: Listening,
rather than talking. The comments the officials heard were
predictable, our source reported. Transport and housing were
the main complaints of the population.
3. (C) Although the account above is single-source, we find
it credible. Since at least October, diplomatic sources have
told us of "new thinking" experiments in Villa Clara, wherein
the population was being given greater leeway to pursue
individual economic initiatives. In addition, reftel reports
a single-source comment from a Minrex official about the
kinds of thinking being displayed. At an outbrief on Codel
Flake with the European Chiefs of Mission, Spanish Ambassador
Carlos Alonso Zaldivar, who is consistently among the best
informed in the dip corps, told us he understands there is a
broad re-think, at least about economic policy, within Cuban
ruling circles. Alonso indicated his sources are reporting
ongoing intense discussion behind the scenes, although his
sense is that the discussion is at present confined to only
the highest levels of the Cuban Government. Alonso commented
that much remains frozen by the continuing presence, however
weakened, of Fidel on the scene, but he opined that the
re-thinking is at least an indication that at some level of
the regime, there is a recognition that things are not
working right, notwithstanding the regime's boasting in
public about Cuba's economic and social stability.
4. (C) Comment: When it comes to policy, we are in the
"reading the tea leaves" phase of the post-Castro era. To
date, the clique around Raul has shown a stubborn
determination to eschew any meaningful gestures, be they
economic, social or political, towards the Cuban people. The
reports described here would indicate that at least someone
at the top senses that pursuing an ignore-the-people approach
is not the wisest way to retain power. It is worth noting
that Villa Clara remains a bastion of dissent, where acts of
defiance to the regime have become more frequent of late.
PARMLY
SIPDIS
SIPDIS
STATE DEPT FOR WHA/CCA
E.O. 12958: DECL: 12/21/2016
TAGS: PGOV PINT ECON KDEM CU
SUBJECT: CUBA: REGIME ECONOMIC THINKING, PLANNING CONTINUE
TO EVOLVE
REF: HAVANA 23606 AND PREVIOUS
Classified By: COM Michael E. Parmly for Reason 1.4(d).
1. (C) Summary: A well-informed off-island source briefed us
on December 20 on what he had learned of the evolving
activity within the regime leadership to address the economic
situation. Our source reports that the regime for the moment
is focusing new ideas in just two provinces -- Pinar del Rio
and Villa Clara. Our source reports that the top leadership
in those provinces is consulting more with farmers in
particular. The Spanish Ambassador reports similar
ebullience in re-examining economic policy in general. We
find the reports credible, and see them as pointing toward a
new and very different management and leadership style of
Raul and his clique. End Summary.
2. (C) A well-informed source told us December 20 of further
details on the evolving thinking within the regime on
economic policy. (For background, see reftel.) Our source
said he had learned of concentrated efforts in two provinces
-- Pinar del Rio, on the western side of Cuba, and Villa
Clara, in the island's center -- to try new methods of
economic governance and management. Our source pointed to
two specific manifestations of the new style:
--The agricultural sector was the main focus. Party leaders
in the province have had a series of meetings with local
farmers, at which the leaders asked what kinds of policies
the farmers would need to see in order to increase their
production. The answer they got back, according to our
source, was unequivocal: Fix the price structure. The
farmers reportedly complained that at current prices, they
had no incentive whatsoever to work harder to get production
up.
--More broadly, however, the top leadership in the two
provinces had been holding a series of meetings on more
general topics than just farming or even economics. Again,
our source told us, the style was different: Listening,
rather than talking. The comments the officials heard were
predictable, our source reported. Transport and housing were
the main complaints of the population.
3. (C) Although the account above is single-source, we find
it credible. Since at least October, diplomatic sources have
told us of "new thinking" experiments in Villa Clara, wherein
the population was being given greater leeway to pursue
individual economic initiatives. In addition, reftel reports
a single-source comment from a Minrex official about the
kinds of thinking being displayed. At an outbrief on Codel
Flake with the European Chiefs of Mission, Spanish Ambassador
Carlos Alonso Zaldivar, who is consistently among the best
informed in the dip corps, told us he understands there is a
broad re-think, at least about economic policy, within Cuban
ruling circles. Alonso indicated his sources are reporting
ongoing intense discussion behind the scenes, although his
sense is that the discussion is at present confined to only
the highest levels of the Cuban Government. Alonso commented
that much remains frozen by the continuing presence, however
weakened, of Fidel on the scene, but he opined that the
re-thinking is at least an indication that at some level of
the regime, there is a recognition that things are not
working right, notwithstanding the regime's boasting in
public about Cuba's economic and social stability.
4. (C) Comment: When it comes to policy, we are in the
"reading the tea leaves" phase of the post-Castro era. To
date, the clique around Raul has shown a stubborn
determination to eschew any meaningful gestures, be they
economic, social or political, towards the Cuban people. The
reports described here would indicate that at least someone
at the top senses that pursuing an ignore-the-people approach
is not the wisest way to retain power. It is worth noting
that Villa Clara remains a bastion of dissent, where acts of
defiance to the regime have become more frequent of late.
PARMLY