COM CONVERSATION WITH HOLGUIN BISHOP EMILIO

C O N F I D E N T I A L SECTION 01 OF 02 HAVANA 000743

SIPDIS

SIPDIS

E.O. 12958: DECL 08/02/2017
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 "popular dissidence," which
he characterized as a form of "generalized disgruntlement

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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 of Cuban
state security; the secretary indicated that "the
presence" had been trying to glare through the office
window since the meeting began. 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