COM CONVERSATION WITH HOLGUIN BISHOP EMILIO ARANGUREN

C O N F I D E N T I A L SECTION 01 OF 02 HAVANA 000733

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E.O. 12958: DECL 08/01 2017
TAGS: PHUM EAGR ECON SOCI PREL CU
SUBJECT: COM CONVERSATION WITH HOLGUIN BISHOP EMILIO ARANGUREN

REF(S): A. HAVANA 674


B. HAVANA 685

C. HAVANA 677

Classified by Chief of Mission, Michael Parmly; reason 1.4(b/d).


1. (C) Summary. On June 29, as part of a consular visit to
a US citizen prisoner, COM Parmly and Conoff met with the
bishop of Holguin province, Emilio Aranguren. Aranguren
spoke extensively about the apparent growth of the cattle
population in the countryside, noting that there had not
been a significant increase in the total number of cows but
only in their visibility. The bishop confirmed rumors that
the GOC was distributing small tracts of farmland for
personal use, but discounted the possibility that this
program had generated any economic benefits for independent
farmers. Aranguren also commented on the conflicting
trends of increasing informal economic activity and rising
levels of local government intervention to stifle this
activity. Finally, he pointed out the lack of an organized
dissidence in the region, noting that it was more of a
"popular dissidence" expressed through open criticism of
the system. End Summary.


2. (SBU) The COM commented on the discernible increase
in the number of cows visible from the highway as
compared to his last cross-country trip nine months
ago. Aranguren expressed his belief that there had
not been a significant growth in the cattle population
but only an increase in their visibility. The bishop
attributed the increased visibility to recent
rainfall, which had permitted the cows to graze across
a wider territory. The bishop noted that some
provincial farmers had succeeded in obtaining a cow
for personal use, which might also explain their
increased visibility throughout the countryside. The
bishop went on to conjecture that some of these cows
had been purchased illegally or stolen from state
farms, adding that the majority of jail sentences
handed out in provincial courts were for "cattle
trafficking," i.e. the illegal sale and/or slaughter
of cattle (see ref A).


3. (C) The COM asked Aranguren to confirm rumors that
the GOC was distributing small tracts of farmland for
personal use. The bishop confirmed that a pilot
program to distribute farmland was launched in
Cienfuegos province in 2004. According to Aranguren,
the recipients of the first land grant quickly
converted the previously idle plot into a successful
rice farm. In addition to covering their basic food
needs, the farmers sold the surplus rice harvest
directly to consumers, bypassing the closely monitored
state-run agricultural markets. According to the
bishop, less than a year after the program began,
representatives from the National Union of Independent
Farmers (ANAP) visited the farmers to demand that the
surplus rice harvest be sold in state markets. This
meant that farmers would lose just about all the
profits they were making from selling directly to consumers.


4. (C) The bishop noted that this scenario of
independent farms becoming profitable and the state
subsequently intervening to capture the profits had
also taken place in several other locations across the
eastern provinces. The Cienfuegos scenario was also a
clear example, according to Aranguren, of a general
trend of increasing intervention by local government
authorities to shut down non-regulated enterprises and
bring a greater portion of previously independent
economic activity under state control. This trend has
been exacerbated, according to Aranguren, by rising
uncertainty surrounding Fidel's health.


5. (C) GOC efforts to step up control over non-
regulated enterprises, according to the bishop, had
not resulted in a net decrease in informal economic
activity. On the contrary, Aranguren observed that
informal activities, e.g. the bypassing of state
markets to sell agricultural goods directly to
consumers, had been on the rise in recent years. The
bishop alluded to economic necessity and the
development of more sophisticated methods for evading
regulation as the main factors explaining these
conflicting trends.


6. (C) Acknowledging that worsening economic
conditions had generated growing discontent in the
Eastern provinces, the bishop noted that there was
very little organized dissident activity in the
region. Instead, he referred to the growth of a

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"popular dissidence," which he characterized as a form
of "generalized disgruntlement expressed through open
criticism of the system." Aranguren expressed his
belief that this brand of dissidence was more
prevalent because it was the only form of protest that
was somewhat tolerated by local authorities.


7. (C) Near the end of the meeting, Aranguren's
secretary alerted the bishop to the possible presence

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of Cuban state security. The bishop commented that
this was not the first time such a presence had been
detected. As COM and Conoff were leaving the
bishopric, Aranguren pointed out a young man wearing
dark shades and a female companion standing across the
street. The young man abruptly departed after being spotted.


8. (C) Comment: Bishop Aranguren is new to his post in
Holguin. His candor, indeed, eagerness to talk may reflect
his "rookie" status. However, in the new wave of bishops
under Cardinal Ortega, we find his approach refreshing. It
will be interesting to see if he can sustain such an open
attitude over time, given his hierarchy's more conservative
trends at present. Due to lack of time, we did not pursue
the issue of "Vitral" magazine (see refs B and C),but as
we were leaving, Aranguren indicated a desire to take up
that issue as well. We intend to do just that.
PARMLY