Cuba not a threat to Puerto Rico…yet – By : MARTHA DREYER DUPERRAY

Cuba not a threat to Puerto Rico…yet

By : MARTHA DREYER DUPERRAY
Edition: February 19, 2015 | Volume: 43 | No: 6

All local business sectors are keeping an eye on Cuba but few—if any—are taking any concrete action until the rules of the game are clear, much as it occurred 40 years ago.

Despite the announcement Dec. 17 by President Barack Obama to end 54 years of estrangement and two days of talks in Cuba on re-establishing full diplomatic relations and easing the U.S. trade embargo, much remains to be done. Both countries must surmount strong pressures at home—the U.S. from Republican leaders in Congress and powerful Cuban-American groups, and Cuba from hardliners deeply concerned the rapprochement could undermine the communist system founded by Fidel Castro.

Puerto Rico Secretary of State David Bernier, who will be heading a large contingent of local business leaders to Cuba in May, said he is convinced Puerto Rico must take baby steps in dealing with Cuba. «Not much, but something,» he said is the formula to follow. He noted there are a small number of opportunities in the short term, including export of food, grains, milk and medicine. Last year, Puerto Rico exported $190,000 in food to Cuba.

«The problem has existed so long that it can’t change overnight,» he said, adding, «Once relations have been OK for many years, you will begin to see ventures in manufacturing and the sciences.» Technology will be big, Bernier said, as not only do we already have it, but we can also explain it in Spanish. There is also finance, he added, while tourism should get a boost here as more Europeans visit Cuba and will undoubtedly pass through Puerto Rico.

For example, Bernier noted that Puerto Rico and the Dominican Republic were in conversations for two years before being able to announce their recent agreements.

The secretary of State’s wait-and-see attitude is almost universal in Puerto Rico and its business community. Some two-dozen interviews by CARIBBEAN BUSINESS on the opening of Cuba showed a great deal of interest…but a great deal of hesitancy as well.

Banking

Among the Puerto Rico sectors with deep interest in Cuba is banking.

Puerto Rico Bankers Association Executive Director Arturo Carrión told CARIBBEAN BUSINESS that all local banks are interested in having a presence in Cuba some day. He said that collectively, the banks—through the Bankers Association— are planning to go to Cuba on the upcoming May trip by the State Department or some other organization such as the Puerto Rico Chamber of Commerce.

Banco Popular Chairman & CEO Richard Carrión has already expressed a strong interest in opening up in Cuba and he hopes to do so before he retires. But at this time, Carrión said he doesn’t think it is a very real possibility until more meaningful changes are achieved in the relationship. «So, I think that may be a while off, but we are definitely interested,» he commented.

«I have been to Cuba a couple of times and there is a lot of cultural affinity. We have several Cubans in our top management team, so we’re into it. But I do think it will be a while,» he said.

And the Bankers Association’s Carrión concurs.

«The trip to Cuba will be to study and analyze that market since it would be new territory for U.S.- chartered banks like Puerto Rico banks. And don’t forget,» he added, «the trade embargo against Cuba hasn’t been lifted. That has to be approved by Congress and with a Republican majority in both chambers, it looks like an uphill battle. Although there seems to be some support from both parties, it isn’t a sure thing.»

As with other industries, the Bankers Association executive director feels Puerto Rico banks have a strategic advantage in the Cuban market as «we are culturally close to the Cuban people—we speak their language and know them well—but then so do banks in South Florida.»

He expressed doubts, however, as to whether it is even feasible to go to Cuba and set up a private financial banking system, as most of the population there barely makes any money, and certainly not enough to save much.

In addition to Banco Nacional de Cuba and several savings & loans cooperatives, there are foreign banks doing business in Cuba including those from Spain, the United Kingdom, France, Mexico, Lebanon, the Netherlands and Trinidad & Tobago, for a total of eight local banks and 12 foreign.

In a related development, American Express said it would start doing business in Cuba after the Obama administration lifts a ban on U.S. banks and credit card companies. Currently, there are no terminals or merchant relationships in Cuba, although MasterCard has announced that next month it will enter the market and become the first major credit card company to handle U.S. card transactions in Cuba.

A virtual lack of automated-teller machines (ATMs) in the country needs to be dealt with and this, one source pointed out, could be a perfect situation for a Puerto Rico company familiar with the different requirements of these machines in warm climates.

Tourism

Puerto Rico Tourism Co. (PRTC) Executive Director Ingrid Rivera Rocafort isn’t worried.

«I see Cuba’s reopening as a great opportunity for us to showcase the region as all eyes will be on the Caribbean as a destination,» she said.

Asked whether it will hurt Puerto Rico tourism, she replied, «While it won’t have a significant impact, we need to fine-tune what we are already doing successfully and continue to strengthen our product.»

To make this happen, Rivera is coordinating a task force with the industry—Meet Puerto Rico and the Puerto Rico Hotel & Tourism Association—just to make sure Puerto Rico continues to strengthen its access points and efforts.

She admitted that once Cuba is open to travel and the embargo ends, which won’t happen for a while, there will be curious U.S. visitors, but she doesn’t think it will hurt Puerto Rico. «Whoever visits us will continue to do so, and we will continue to build air access to other U.S. cities and destinations abroad.»

Rivera noted that Puerto Rico enjoys a strategic location and is cost-effective to reach. «Cuba needs ports infrastructure as we did at Pier 3 [in Old San Juan], and I am sure they will do it, but it will take time so it won’t be now. We have always competed with Cuba for Latin American and European visitors, so now the only difference is that we are going to do the same for U.S. travelers.»

The PRTC executive director said she sees no problem with cruiseship travel. «Last year we were up 16.5%, and this fiscal year, we are up 31% to 1,585,000 passengers, breaking all records.»

In terms of hotels, she said Cuba has about 60,000 nonluxury hotel rooms, compared with Puerto Rico’s 15,000. Puerto Rico is smaller, however, in square miles and while in Cuba they focus on all-inclusive hotel vacations, in Puerto Rico we are focused on a different vacation offering that runs the gamut from bed & breakfasts to luxury hotels with everything in between, plus culture, museums, etc.

Rivera said Cuba has a major learning curve ahead of it to prepare for U.S. tourists in terms of service, accessibility, language, training programs and more. They aren’t better or worse than us, just different.

She concluded that the impact over the next couple of years will be minimal and not in any way major. «Here we will continue to plan ahead and market our strengths. Plus,» she added, «we still have the tremendous advantage that it’s an easy plane ride to Puerto Rico, a quick and easy vacation, and perhaps above all, there’s no need for a passport, visa or similar document, or money exchange as there will be in Cuba.»

Meanwhile, veteran hotelier Hugh Andrews, CEO of International Hospitality Enterprises Inc., operators of seven hotels and two casinos in Puerto Rico, voiced similar sentiments as did others in the industry.

«Think about it,» he said. «Twenty years ago, the Dominican Republic was nothing and now it has 65,000 rooms and more in construction. And 20 years ago, Cancún, Mexico, was nothing and today, it has 32,000 rooms and more under construction. And there’s no doubt that, although it will take a while, Cuba will grow as well, as people are always looking for new destinations.»

Andrews noted that today, Cuba is already running high occupancies in its hotels as, other than visitors from the U.S., it has been open to the world for many years.

On the other hand, he said the legal status of a plot of land would stop many chains from going in. «A large amount of land has been expropriated by the government and Cubans will be returning to claim it back. In the case of a U.S. hotel corporation, should a company build a hotel on one of these properties,» he explained, «these people can go after the chain’s millions of dollars in assets on the mainland.»

Based on a study he did for Swiss hotels some 10 years ago, Andrews said there is a big fear on the part of international hotel companies to go to Cuba with the unanswered question of whether they are putting their assets at risk. Even Spain’s Meliá chain doesn’t want to take a risk, so they are hotel managers, and not owners, in Cuba, where they operate 27 hotels and a combined 13,000 rooms, he said. Interestingly, the Spanish hotel chain recently announced it plans to open in September its largest hotel in the world in Cuba.

Andrews concluded, «Cuba represents a threat to us just as every new destination does. Twenty years ago, the Dominican Republic was a joke and look at it today. People are curious about a new destination, but remember it is just the U.S. market. Until now, everyone else from every other country has been able to go there, so it is nothing new…particularly for Canadians who have charters to Cuba from just about every city in Canada.»

Travel

When President Obama announced he planned to relax banking and commerce relations with Cuba, he vowed to relax travel restrictions as well.

A ban on travel to Cuba by American tourists can only be lifted by Congress, but Obama promised to talk to lawmakers about ending the full economic embargo. Interestingly, in the short term, U.S. licensed travelers will be allowed to bring home Cuban cigars.

Travel agents from here and outside the island all agreed that Puerto Rico has little to fear once Cuba opens up and allows Americans to enter without prior permission. One travel agency said searches for the words «Cuba» and «vacation» jumped 360% on Dec. 18, the day after the announcement. Travel guru Arthur Frommer said that as with Puerto Rico and other Caribbean islands, «Cuba has magnificent beaches and a fascinating history. And pent-up desire for U.S. travel to Cuba will obviously cut into a certain amount of traffic.»

But travel agents in Puerto Rico countered that because hotel capacity, air routes and other tourism-oriented infrastructure in Cuba are badly in need of improvement, the full impact of the liberalization won’t be felt for a number of years. If anything, one added, the lifting of restrictions would only help encourage visits to the Caribbean region as a whole.

As of this writing, American Airlines, Delta, United and JetBlue have expressed interest in fl ying to Cuba. American already operates 20 chartered flights a week out of Miami and would like to add regular flights to the route as well. Currently, trips are limited to those visiting close family members, humanitarian missions and educational tours.

Meanwhile, interviews with several travel agencies in Puerto Rico showed that, as is being seen in other industries, there was interest in learning what was going to happen, but no actions being taken yet, other than by Viajes Carelys on Américo Miranda Avenue near Centro Médico in San Juan, which already sells trips to Cuba via Santo Domingo.

Raenette DiCicco, owner of one of Puerto Rico’s oldest travel agencies, 4 Seasons Travel, said there is no need for travel agencies from here to open in Cuba as everything can be done locally. «Actually,» she explained, «companies such as Tauck Tours in Connecticut have been selling tours to Cuba for three years, as well as two or three more agencies such as Isram, a New York Jewish agency that covers the world. And here at 4 Seasons,» she added, «we sell luxury tours to Cuba dealing with education, art and history.»

DiCicco noted that all transactions by travel agencies with Cuba must be done in cash through bank checks. «Due to U.S. restrictions, no credit cards are accepted there,» she explained.

In terms of the effects of opening Cuba to U.S. tourists, DiCicco said the pricing of hotels and vacation packages in Cuba will hurt the Dominican Republic more than Puerto Rico in areas such as Punta Cana and La Romana. English will be a problem but, based on four visits she has made to Cuba, she said the young people are speaking it more. «And,» she concluded, «with so much Canadian and European business, they have built resorts and hotels that, if nothing else, are much more service-oriented than in Puerto Rico.»

Travel agents told CARIBBEAN BUSINESS that Canada is responsible for 70% of Cuba’s tourism today, with some 150 flights a month between the two countries.

Another industry expert said he didn’t expect the expansion to Cuba of upscale restaurants such as Mortons, which has locations around the world, including in the Caribe Hilton Hotel in San Juan. «Just as destinations such as Cuba and many Far East countries, there isn’t enough money for this,» he said. A visitor to Cuba himself on several occasions, he said, «the infrastructure sucks and its streets make Puerto Rico’s look like yellow brick roads.» He said he noted large contingents of tourists from Europe, especially from Spain, Norway, Finland and Italy.

In terms of cruiseship business, all travel agents interviewed by CARIBBEAN BUSINESS agreed it would take some years for Puerto Rico to feel any adverse effects. As one said, there is no depth in Havana Harbor, so ships will have to go to Mariel, which they described as similar to going to Bayamón from San Juan, but involving lots of logistical problems.

They also commented that the most popular cruises today are six-port, seven-day sailings, and hitting Cuba would limit this to only four or five ports.

Mari Jo Laborde, chief sales & marketing officer for the PRTC, said she expects travelers to visit both Puerto Rico and Cuba or at least fl y to Cuba with a connection in Puerto Rico. «We don’t see the relaxation of travel restrictions as a threat,» she added. «We see it as an opportunity.» And the Caribbean Tourism Organization agreed, saying: «Last year we welcomed more than 12 million Americans to our shores and the opportunity to substantially increase that number will be welcomed.»

Telecommunications

To put it mildly, Cuba has a very rudimentary cellphone system and limited wirelines. And, as in other areas of development, Cuba has to jump over the intermediate phases to enter the 21st century in the area of telecom.

Telecom companies in Puerto Rico, not only carriers, but also tower/antenna installers and others, have experience in designing modern cell systems for mountainous tropical terrain. As a result, telecom expansion in Cuba would be wireless- based, not wireline-based.

CARIBBEAN BUSINESS has ascertained that the U.S. government would be willing to help out a great deal in this particular area of development since the more connectivity Cuba has, the better are the chances that democracy will spread.

Yet, as already noted in other industries, conversations by CARIBBEAN BUSINESS with several leaders in the telecommunications field resulted in the same wait-and-see answers.

Luis Romero, owner of his own telecom company, Optivon, and a well-known leader of Puerto Rico’s telecom sector for decades, confirmed there is tremendous opportunity in the telecom market in Cuba from a service standpoint, as it is highly underserved and one of the most expensive Internet connections in the world, with far less infrastructure than Haiti.

Romero voiced the commonly held theory that, as a result of 54 years of a Communist regime, these things don’t exist because Cuba’s leaders were afraid of giving access to its people and, as a result, heavily restricted Internet access. «Wirelines, cellular, cable TV, Internet access…they are all poorly served,» he said.

So, with all this needing to be done, why are Romero and others in the industry very hesitant to go in? «It’s a big challenge,» he said. «Other than the lack of money and currency problems, you realize you have to be a minority partner under the existing rules and have to allow Castro to take about as much as he wants.»

He confirmed—as did all others interviewed in this field—that the demand for all areas of communications is so great as to require investments of billions and billions of dollars. «That’s OK,» he added, «but the question is will you get a reasonable return on investment as is happening in China?» The strategic question is who is going to bring in the money? Will Puerto Rico companies invest in Cuba? And, most importantly, will they receive more than investing in Puerto Rico to cover the risk?

Romero pointed out that the Cuban market has been open to the rest of the world and yet no one—Germany, China, etc.—has done anything. «Capitalists want their money back,» he emphasized.

He said his company is currently evaluating if it would receive a better return on investment in Puerto Rico or Cuba. «If I invest $1 million in Cuba, what is the profit and —equally important—will I get it back? If the answer is positive, then it’s worth exploring especially now that the government here—through Prepa.com [Puerto Rico Electric Power Authority’s website] and the Aqueduct & Sewer Authority—is going into telecom to compete with us. In view of this, maybe it would be better to go there instead.»

Manufacturing

Rodrigo Masses, co-director of the Puerto Rico Manufacturers Association’s International Committee, which is joining Secretary of State Bernier on his upcoming trip to Cuba, and associate of Manchester Trade Ltd.—»building bridges through trade»—is himself a Cuban who arrived in Puerto Rico at the age of one.

Actively involved in seeking manufacturing opportunities for Puerto Rico companies when Cuba opens up, Masses said he went to Cuba for the first time a few years ago and saw how things were worsening due to the loss of the delivery of 100,000 barrels of oil a day from Venezuela and about $2 billion that had been banked there by Russia.

He added that while Brazil put in $1 billion for the improved Mariel port and a $1 billion line of credit to buy food, it is also suffering reverses along with Russia and Venezuela, making Cuba’s financial future somewhat shaky. And, he said, two years ago, Cuba was receiving $2.5 billion a year in transfers—more than its net earnings from tourism and agriculture, and more than what is received in «food stamps,» or welfare programs, in Puerto Rico.

Although manufacturing companies in Puerto Rico aren’t standing in line to open facilities in Cuba due to lack of infrastructure, among other things, Masses said the Cuban government has already allowed small businesses to open beauty parlors and restaurants, and is allowing farmers to sell excess produce in open markets. «And even though it looks like we are only taking baby steps, we are actually going to be taking gigantic ones in the future,» he indicated. «There is no doubt in my mind that if we don’t move forward, others will, meaning now is the time to start planning.»

Masses has no doubt Cuba will return to what it was in the 1950s, representing a most important opportunity to Puerto Rico as its door to the U.S. in so many areas. «Puerto Rico and Cuba have a beautiful history since the 1870s, with two fl ags the same. Cubans think of Puerto Ricans as brothers, which will lead to many things,» Masses said.

He cautioned that nothing in manufacturing, tourism or other areas will be reserved for Puerto Rico, whose business leaders and executives will ultimately have to find opportunities there on their own in competition with others from around the world who are interested in being a part of Cuba’s future as well.

Some pertinent questions and answers

Q: What kind of Visa—if any—is needed to travel to Cuba?

A: Normally, the few travel agencies that handle travel arrangements to Cuba will obtain the Cuban government’s tourist visa and, under existing federal rules, you must certify that you qualify under federal law to travel to Cuba under one of 12 permissible categories.

Q: How much it cost to travel to Cuba and what are the existing airline routes?

A: There are flights to Havana, Santiago, Holguín and Varadero. Most flights originate in Miami or Tampa, Fla., and average fares are $360 to $500 one way from these U.S. cities to Cuba.

Q: How much are hotels in Cuba?

A: Depending on the time of year, what the regime refers to as five-star hotels run from $82 per person single to a high of $250 for a double, and most include breakfast. The Meliá Havana Hotel, which also includes breakfast, averages from $67 per person single to $174 double, again depending on the time of year. Interestingly, Cubans aren’t allowed to book hotel rooms.

Q: Where should a visitor exchange U.S. dollars to Cuban convertible pesos (known as CUCs) for travel to Cuba?

A: Money exchange is done upon arrival in Cuba for CUCs; the exchange rate is $1 equals 89 CUCs. This is one of two currencies circulated in Cuba, the other being Cuban pesos (known as CUPs), which is also called the moneda nacional (national currency). But most prices are quoted in CUCs. It is recommended that any money exchange be done at the airports and not in the streets, and that travelers’ checks, with the possible exception of Thomas Cook, not be used as they create exchange problems.

Q: How much are taxis in Cuba?

A: Government taxis cost the equivalent of $8-$12 for typical routes, and visitors pay in CUCs, not dollars. This isn’t unlike other large cities, where visitors have to pay with the country’s currency.

Q: What government agency in Cuba does one visit to get help to expand sales to Cuba?

A: The first contact is the Foreign Ministry, which will provide a road map to follow.

Q: What restrictions exist in terms of tourism travel?

A: U.S. tourists must fall within one of 12 categories.

Q: Is there a Chamber of Commerce or similar business organization in Cuba?

A: No.

Q: How difficult it is to get permits if any are needed to do business in Cuba?

A: Tedious. Cubans will be vetted ideologically and a business can’t be a threat to the regime. However, those in the know say the manner in which the regime handles business inquiries will probably change fast with these latest happenings.

Some interesting Cuba information you may not know

  • Average gross wage: $17 a month; $200 a year
  • Income tax paid when renewing work papers each year: 70% of yearly income
  • Doctors are among highest earners at $200 a month, but many moonlight as cab drivers and waiters to earn extra cash.
  • Puerto Rico’s highways and streets, as bad as they are, are in much better condition than Cuba’s.
  • There are about 60,000 hotel rooms with a marked lack of facilities such as Internet, golf and easy communications, but reports indicate the regime is planning to build 19 golf courses for American visitors.
  • Airport is insufficient for major airline traffic.
  • Only marina in Havana is called Hemingway, which lacks depth.
  • Old Havana, unlike Old San Juan, is dilapidated.
  • Cost of Internet connection is one of the highest in the world, with wirelines, cellular, cable TV and Internet access all poorly served.

Top Cuban dissident blogger tells his story

Anyer Antonio Blanco Rodríguez, named by CNNMexico as the second-best blogger in modern-day Cuba and who, among other honors, was sent to Gdansk, Poland, and Warsaw by the Lech Walesa Foundation for his work, has strong thoughts about the country he lives in and loves… strong enough to have landed him in jail in Cuba for a few days.

In an exclusive interview with CARIBBEAN BUSINESS, Blanco Rodríguez, a native of Santiago de Cuba, which he said was similar to Ponce, noted that under the current salaries and taxes paid in Cuba, an average worker winds up with about $60 a year in net income, hardly enough to do much of anything. And hotel workers, he added, aren’t even paid the $16-$20 a month they earn directly by the establishment they work for, but by the government, which sometimes throws in an extra $5 for tips.

«For instance,» he said, «there are no movie theaters to speak of and no money to go to them anyway. So, some people have an old projector, which they connect to their computer to show pirated movies at home on a sheet stretched across a wall. And the whole neighborhood comes.»

Asked what some of the first things Cuba needs in terms of Puerto Rico, should the loosening of ties with the U.S. continue, he said he understands the Cuban government will be looking to talk with associations of homebuilders and construction, both areas in dire need of input and help.

«Our electricity is oil-fired, not coal,» he said, suggesting that the facilities be turned into biomass plants. «And,» he added, «anyone connected with telecommunications including cellphones, will find opportunities, not to mention those dealing in paving of highways and streets as well as the badly needed improvements at the Hemingway Harbor in Havana and the airport.»

In terms of communications, the United Nations estimates that only some 27% of Cubans have access to the Internet. And Blanco Rodríguez said that for him to work as a blogger, he pays $4.50 to access the Internet for one hour—until recently it was $6—and $1 for every Tweet he sends, although he can’t receive any feedback.

Another problem, he said, is the large number of unwanted pregnancies by young girls. «Sex as soon as one reaches puberty and without love is rampant,» he said. «Condoms that we get from China are frequently outdated and burst, and birth-control pills are expensive. On the other hand, abortions are legal in Cuba and practiced often and openly.»

The young blogger also sees the need for improved higher education. «We have three good universities— Oriental, Central and Havana—but the others need help. In fact, all of Cuba needs help badly to come into the 21st century, which we have never even come close to.»

Asked if he had heard of any action already taking place between Puerto Rico and Cuba, Blanco Rodríguez and people he is associating with here said there are strong rumors that local law firm McConnell Valdés has already partnered with a Cuban law firm. Furthermore, after hearing about the lack of new vehicles, Bella International’s Carlos López-Lay, whose Cuban father-in-law started the firm, is looking into possibilities in the future.

McClintock long-time observer of Cuba

Twenty-two years ago, on Jan. 27, 1993, former Puerto Rico Secretary of State and Senate President Kenneth McClintock filed his very first package of measures as a freshman senator. One of them, Senate Resolution 22, which was approved unanimously five days later, authorized his Federal & Economic Affairs Committee to study the local implications of the eventual reopening of Cuba to the U.S. market. The report was filed in June 1994 and follow-up hearings were held in August 2000.

Why did McClintock show—and continue to show—such interest in Cuba throughout the years?

«I believed then and I believe now that the enormous risks Cuba could represent for Puerto Rico could be turned into enormous opportunities,» said McClintock, who actually has never been to Cuba.

He said some initial observations include the fact that Puerto Rico has a geographical and logistical advantage over Cuba, which needs to be studied.

In terms of cruiseships, McClintock noted that the Port of Havana can’t handle the increasingly larger cruiseships, and it would take several years and hundreds of millions of dollars for the harbor to be dredged and cruiseship terminals be built. It will be many years before Cuba can compete as a homeport, so it will remain a destination port for quite some time.Without a doubt it will happen, he said, meaning that in Puerto Rico,we must continue dredging the San Juan Harbor and refurbishing our terminals to be state of the art.

In terms of airports, McClintock doesn’t see Cuba as competition for the foreseeable future either, especially with San Juan’s Luis Muñoz Marín International Airport «now in better hands than when it was managed by the Ports Authority.»

He noted that the lack of first-rate highways in Cuba prevents cruiseship passengers from straying far from Havana during the typical eight-to-12-hour port visit. He said Puerto Rico’s good highway system allows passengers to go as far as El Yunque National Forest to the east and the Arecibo Observatory to the west, and everything in between, during a cruiseship visit without rushing. Eventually, he noted, as infrastructure improves, passengers will be able to travel beyond Havana, but it will take many years.

McClintock concluded, as did everyone interviewed by CARIBBEAN BUSINESS, that Puerto Rico can’t rest on its laurels if it wants to permanently exploit its existing advantages.

Asked if this intense 22-year interest in Cuba could lead to greater things if Hillary Clinton—who McClintock is quite friendly with, and backed and worked for in the last election—runs and wins and offers him an ambassadorship to Cuba, McClintock refused to comment, but his eyes did light up greatly.

Ex-Congressman Robert García talks about Fidel Castro

Former New York Congressman Robert García, who served from 1978-1990, was one of the few to have face-to-face meetings with former Cuban President Fidel Castro while on a mission there in 1980 seeking the release of four U.S. citizens—all Drug Enforcement Administration agents—who had been arrested and imprisoned in Cuba.

«We took off in a small private plane on an ex-officio trip [no commercial planes flew the route at that time] from Miamito Cuba, not announcing our plan to the American public since Cuba and the U.S. didn’t have diplomatic relations at that time and the stance of our government wasn’t to negotiate with Cuba,» said García, who is now living in Puerto Rico.

Accompanying García were Reps. Benjamin Gilman and Hamilton Fish IV, both Republicans from New York, as well as García’s wife, Jane.

«We landed in Havana and were checked into what was the big hotel there in pre-Fidel days, I think the old Riviera,» García said, adding that, «this is where they put most official visitors and I’m sure the room was bugged. We were always followed by a group of men and never let out of their sights.»

García said they were shown into Castro’s office late at night as «for some reason—I suppose intimidation— he always had his meetings at night.»

García said Castro was dressed in military fatigues and boots, and had a big bushy beard. As García described him: «He was an imposing, strong, prominent figure who never smiled. A typical dictator’s manner. Very much in charge and menacing with the power of life and death in his hands.»

Castro, who had studied at the University of Havana Law School, knew English, but refused to speak it with the U.S. delegation, García recalled.

«We finally asked him to free the four Americans who had been imprisoned, but he wouldn’t say yea or nay. And then he just turned around and walked out,» the former congressman said.

García added that during the next few days, they were bused all around Havana to hospitals and schools, and usually offered some very good coffee. Once, he added, the group was given ersatz coffee loaded with chicory. He said good Cuban coffee at that time was given to VIPs, but most was sold expensively to Japan rather than kept for the homefolk.

García said the most impressive and horrible part of the trip was a tour of Combinado Del Este prison, which he described as a human warehouse of misery. «We saw some 12 to 18 men crammed into standing-room-only cell blocks. I will never forget the faces of absolute despair and desperation we saw there that day. A real hell hole.»

The former congressman said the group also spent a day with some «very tough-looking high-ranking military guys with Ray Ban sunglasses on, even indoors. They took us to another facility and brought out the four Americans and, to our surprise, another American who had defected to Cuba after hijacking a plane to Havana and wanted to return to Chicago.»

Then, García said, after a few days, the delegation went to see Castro, again at night. «Our conversation was brief and once again, he hardly spoke. We left, and about a week later, the Americans were released.»

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