Cubans, aTwitter with thoughts of their next Revolution

The changes sweeping through the despotic regimes of the middle east have proven the value of Facebook, Twitter and other social-media venues. Seems that guys like Mark Zuckerberg deserve some credit for their role in overthrowing tyrants.

What can Mubarak do to save himself and his regime? He can order his military to start shooting. Undoubtedly some of his forces are loyal and will carry out those orders, if they're given. What would it take to gather world attention? One tank and its crew firing on protesters in Tahrir Square would do the trick. Would the bad news push Mubarak from office? Or maintain his hold? Hard to say.

As long as Obama sits on his hands while assuring Mubarak the US believes the Egyptian people should speak for themselves, we know Mubarak can open fire on crowds without fears of reprisals from one of his most loyal supporters -- Obama. Not quite the message Obama delivered to the Egyptian people in his big speech to them last year in Cairo.

Nevertheless, if Egyptians remain in contact with one another, they may well be able to maintain the bonds that make revolution possible and successful.

It's up to the US to give Cubans the ability to unite. Yes, Castro has the guns, but what's to stop the US from smuggling cell phones to Cuba? With the spectacular leverage of technology, it's beginning to look as though the pen, or word, is at least as mighty as the sword.


Will Cuba Be the Next Egypt? The most striking difference between the two countries is Internet access.

Developments in Egypt over the last two weeks brought Cuba to my mind. Why does a similar rebellion against five decades of repression there still appear to be a far-off dream? Part of the answer is in the relationship between the Castro brothers—Fidel and Raúl—and the generals. The rest is explained by the regime's significantly more repressive model. In the art of dictatorship, Hosni Mubarak is a piker.

That so many Egyptians have raised their voices in Tahrir Square is a testament to the universal human yearning for liberty. But it is a mistake to ignore the pivotal role of the military. I'd wager that when the history of the uprising is written, we will learn that Egypt's top brass did not approve of the old man's succession plan to anoint his son in the next election.

Castro has bought loyalty from the secret police and military by giving them control of the three most profitable sectors of the economy—retail, travel and services. Hundreds of millions of dollars flow to them every year. If the system collapses, so does that income. Of course the Egyptian military also owns businesses. But it doesn't depend on a purely state-owned economy. And as a recipient of significant U.S. aid and training for many years, the Egyptian military has cultivated a culture of professionalism and commitment to the nation over any single individual.

In Cuba there are no opposition political parties or nonstate media; rapid response brigades enforce the party line. Travel outside the country is not allowed without state approval. If peaceful dissidents with leadership skills can't be broken, they are eventually exiled. Or they are murdered.

The most striking difference between Cuba and Egypt is access to the Internet. In a March 2009 Freedom House report on Internet and digital media censorship world-wide, Egypt scored a 45 (out of 100), slightly worse than Turkey but better than Russia. Cuba scored a 90, making it more Net-censored than even Iran, China and Tunisia. Cellphone service is too expensive for most Cubans.

Yet technology does somehow seep into Cuba. When Fidel took the life of prisoner of conscience Pedro Boitel in 1972 by denying him water during a hunger strike, the world hardly noticed. By contrast, news of the regime's 2010 murder of prisoner of conscience Orlando Zapata Tamayo hit the Internet almost immediately and was met with worldwide condemnation. The military dictatorship was helpless to contain the bad publicity.

In a similar fashion, when the Ladies in White—a group of wives, sisters and mothers of political prisoners—walking peacefully in Havana were roughed up by state security last year, the images were captured on cellphones and immediately showed up on the Web. It was more bad PR for the Castro brothers and their friends like Mexican President Felipe Calderón and Spanish President José Luis Zapatero.

Technology-induced international pressure is making the regime increasingly reluctant to flatten critics the old-fashioned way. In an interview in Argentina's Ambito Financiero on Jan. 27, internationally recognized Cuban blogger Yoani Sánchez said the "style" of state repression has shifted from aggressive arrests and long sentences to targeted attempts at defamation and isolation. Ms. Sanchez also said that uniformed police are "distancing themselves from the political theme, not by orders from above, but because they no longer want to be associated with the repression." Now, she said, the intimidation and arbitrary arrests are largely carried out by the secret police in civilian clothes.

A little more space has emboldened the population. Ms. Sánchez also said in the interview that she is "optimistic about the slow and irreversible process of interior change in Cubans. In that the citizen critic will grow, will have less fear, and will feel that the mask is increasingly unnecessary and that it doesn't any longer translate into privileges and subsidies."

Last week a leaked video of a Cuban military seminar on how to combat technology hit the Internet. It demonstrates the dictatorship's preoccupation with the Web. The lecturer warns about the dangers of young people with an appealing discourse sharing information through technology and trying to organize. Real-time chat, Twitter and the emergence of young leaders in cyberspace—aka "a permanent battlefield"—are perils outlined in the hour-long talk. The lecturer also shares his concerns about U.S. government programs that try to increase Internet access outside of officialdom on the island.

On Friday, the regime further displayed its paranoia by charging U.S. Agency for International Development contractor Alan Gross with spying. Mr. Gross has been in jail for 14 months for giving Cuban Jews computer equipment so they could connect with the diaspora.

With very limited access, Cubans are already using the Internet to share what has until now been kept in their heads: counterrevolutionary thoughts. If those go viral, even a well-fed military will not be able to save the regime. But for now, Cubans can only dream about the freedoms Egyptians enjoy as they voice their grievances.

Cuban Medicine Men

What is it that allows Americans to believe the myths about the Cuban healthcare system? It must be that people are desperate to believe that it's possible to keep people healthy without spending a lot -- a lot -- of money.

A Cuban Fairy Tale From PBS What public television didn't tell you about health care in Castro's socialist state

In his memoir covering four years in Cuba as a correspondent for Spanish Television, Vicente Botín tells about a Havana woman who was frustrated by the doctor shortage in the country. She hung a sheet on her balcony with the words "trade me to Venezuela." When the police arrived she told them: "Look, compañeros, I'm as revolutionary as the next guy, but if you want to see a Cuban doctor, you have to go to Venezuela."

That story was not in the three-part report by Ray Suarez on Cuban health care that aired on PBS's "NewsHour" last week. Nor was the one about the Cuban whose notice of his glaucoma operation arrived in 2005, three years after he died and five years after he had requested it. Nor was there any coverage of the town Mr. Botín writes about close to the city of Holguín, that in 2006 had one doctor serving five clinics treating 600 families. In fact, it was hard to recognize the country that Mr. Suarez claimed to be describing.

The series was taped in Cuba with government "cooperation" so there is no surprise that it went heavy on the party line. Still, there was something disturbing about how Mr. Suarez allowed himself to be used by the police state, dutifully reciting its dubious claims as if he were reporting great advances in medical science.

Castro's military dictatorship marks 52 years in power next week. But the "revolution" is dead. A new generation of angry, young Cubans now vents on Internet blogs and through music, mocking the old man and his ruthless little brother. On Nov. 29, in the city of Santa Clara, hundreds of students launched a spontaneous protest when they were denied access to a televised soccer match they had paid to watch. What began as a demand for refunds soon turned to shouts of "freedom," "down with Fidel" and "down with socialism," according to press reports.

Dissent is spreading in Cuba like dengue fever because daily life is so onerous. One of the best documented sources on this subject is the Botín narrative ("Los Funerales de Castro," 2009, available in Spanish only), which pulls back the curtain on "the Potemkin village" that foreigners see on official visits to Cuba. Behind the façade is desperate want. Food, water, transportation, access to health care, electricity, soap and toilet paper are all hard to come by. Even housing is in short supply, with multiple families wedged into single-family homes. The government tries to keep the lid on through repression. But in private there are no limits to the derision of the brothers Castro.

Mr. Suarez's report, by contrast, is like a state propaganda film. In one segment, an American woman named Gail Reed who lives in Cuba tells him that the government's claim of its people's longevity is due to a first-rate system of disease prevention. He then parrots the official line that Cuba's wealth of doctors is the key ingredient. What is more, he says, these unselfish revolutionary "foot soldiers" go on house calls. "It's aggressive preventive medicine," Mr. Suarez explains. "Homes are investigated, water quality checked, electrical plugs checked."

An abundance of doctors? Not in the Cuba Mr. Botín lived in.

In 2006 the government claimed there were 65,000 doctors. That number, he says, was "a figure that many professionals considered inflated." When Cubans complained they couldn't get care, he notes that the state upped the number "magically" to 71,000 five months later. Given Fidel's habit of making things up, it's hard to know how many competent doctors the government has trained. But there is no disputing the fact that thousands of medics have been sent overseas in large numbers to earn hard currency for the regime. There is also no question that Cubans are paying the price at home.

As to doctors checking on water quality and electricity outlets, the PBS reporter might be surprised to learn that most Cuban homes have no running water or power on a regular basis. This is true even in the capital.

In 2006, Mr. Botín says, a government minister admitted that 75.5% of the water pipes in Havana were "unusable" and "recognized that 60% of pumped water was lost before it made it to consumers." To "fix" the problem, the city began providing water in each neighborhood only on certain days. Havana water is also notoriously contaminated. Foreigners drink only the bottled stuff, which Cubans can't afford. In the rest of the country the quality and quantity of the water supply is even less reliable.

Mr. Suarez also reported that, according to Ms. Reed, Cuba is suffering an "embargo of medicine." But there is no embargo on food or medicine. The problem is that the government lacks the money to pay for new medicines that are protected under patent.

Reporters who want access to Cuba know that they have to toe the Castro line. I get that. Mr. Suarez must figure that his American audience does not.

Cuba -- Soon to be a nation of Tax Evaders

If Cubans can build rafts and sail them to Florida, they can outsmart Castro's tax collectors. Unfortunately, the overbearing weight of a communist dictatorship crushes the creativity out of most Cubans. They must do what they can do to survive, which means they cannot do what they would like to do and thrive. The endless support for the regime takes most of the little they have. And the great fear of the regime that its citizens are not loyal has stopped the government from allowing the development of a fishing industry and an offshore oil & gs drilling business. There's no chance a suspicious government would allow some its most valuable citizens a chance to cross the Gulf in a work boat pointed north into the open waters.

Cuba self-employed to pay taxes up to 50 percent

Oct 25, 1:41 pm

HAVANA (Reuters) – Cuba has set income tax rates at 25 to 50 percent for its soon to be expanded private sector, with the biggest earners paying the most taxes, according to official decrees published on Monday.

The rates will range from nothing for those making 5,000 pesos -- equivalent to $225 -- or less a year to 50 percent for those in the highest bracket, which is more than 50,000 pesos, or $2,252.

The new tax rates came out in the Official Gazette as the government prepares to cut 500,000 workers from state payrolls and issue 250,000 new licenses for self-employment to create new jobs in President Raul Castro's biggest economic reform so far.

Those making more than 5,000 pesos will have to pay taxes, starting at a rate of 25 percent and rising from there as income increases.

The cash-strapped government is looking to the self-employed to increase tax revenues to help pay for expensive social programs such as free health care and education.

Last week the government, in a story in Communist Party newspaper Granma, warned that tax scofflaws "will feel the weight of the law imposed upon them by those mandated to enforce it, the National Tax Office."

The gazette, where the government publishes in thick legalese its new laws and decrees, is not usually a hot seller, but on Monday in Havana people could be seen lining up at newsstands to buy copies, then quickly leafing through them on the street.

INTEREST IN STARTING BUSINESSES

Many Cubans have expressed interest in opening their own businesses, with the hope of earning more than the country's $20 a month average salary.

Currently, about 85 percent of the country's labor force of more than 5 million works for the state. Castro, who took over from his ailing older brother Fidel Castro in 2008, wants to trim that number and cut costs.

As of the end of 2009, there were only 143,000 licensed self-employed, although thousands more worked for themselves illegally.

Reaction on the street to the thick decrees, which came out in two separate editions of the gazette, was mixed.

Antonio Soria, a shoemaker working for the state, said he intends to start his own business and views it as a chance to help both himself and the state.

"As a private shoemaker I can retire and have financial support for the future," he said.

"This is a way to contribute to the state's income. Remember that health care and education are free and now that we have the chance to have small businesses, we have to help the country."

Transport worker Ibrahim Fernandez said he supports the private sector expansion, but worried taxes will be too high to encourage small businesses.

"From what I've been able to understand, the topic of the licenses has a defect, which is that they are overcharging taxes. Very expensive, the taxes," he said.

In last week's Granma story, the government outlined a new tax code it said was friendlier to small businesses because while it requires new taxes, it also allows bigger tax deductions.

For the first time since Cuba nationalized small businesses in 1968, the self-employed will be able to legally hire workers.

The regulations issued on Monday said they would have to pay a labor tax amounting to 25 percent of the average salary for their work.

The Old Man and the Oil Under the Cuban Sea

It takes a lot to keep a bootheel on the necks of every Cuban. That's one reason Fidel gets along without an oil industry. However, life in Cuba is getting tougher. Partly because life in those nations that have been Cuba's benefactors is getting tougher too. Especially Venezuela, where Chavez will soon begin to struggle over how to finance his failing socialist experiment.

Cuba needs oil but lacks the competence to find it. Moreover, the Cuban leaders trust no Cubans out on the open sea in boats that might sprint for the US. Hence, Fidel has tried to force his 11 million island prisoners to live an oil-free life. Too bad he and his comrades lack the expertise to convert Cuba's sugar crop into ethanol. But, that's what happens when the state spends everything on perpetuating itself.

Castro is 84, and his health is slipping. Thus, one of these days, he'll croak and his brother Raul will most likely liberalize the economy. Drilling for oil will hlep. But the lack of refineries in Cuba means the only way to convert oil into something useful is to sell it for cash and buy refined products which will power the antique vehicles that still provide most individual transportation. Then, if the state can buy enough diesel fuel, it can unhitch the mules from the city buses and once again use the engines to power them.

Cheap energy is essential to building a prospering economy. But it's not possible to produce and use cheap energy when dictatorships rule.

HOUSTON — Five months after the BP oil spill, a federal moratorium still prohibits new deepwater drilling in the American waters of the Gulf of Mexico. And under longstanding federal law, drilling is also banned near the coast of Florida.

Cuba currently produces little oil. But oil experts say the country might have reserves along its north coast as plentiful as that of the international oil middleweights, Ecuador and Colombia — enough to bolster its faltering economy and cut its dependence on Venezuela for its energy needs.

The advent of drilling in Cuban waters poses risks both to the island nation and the United States.

Ocean scientists warn that a well blowout similar to the BP disaster could send oil spewing onto Cuban beaches and then the Florida Keys in as little as three days. If the oil reached the Gulf Stream, a powerful ocean current that passes through the region, oil could flow up the coast to Miami and beyond.

The nascent oil industry in Cuba is far less prepared to handle a major spill than even the American industry was at the time of the BP spill. Cuba has neither the submarine robots needed to fix deepwater rig equipment nor the platforms available to begin drilling relief wells on short notice.

And marshaling help from American oil companies to fight a Cuban spill would be greatly complicated by the trade embargo on Cuba imposed by the United States government 48 years ago, according to industry officials. Under that embargo, American companies face severe restrictions on the business they can conduct with Cuba.

The prospect of an accident is emboldening American drilling companies, backed by some critics of the embargo, to seek permission from the United States government to participate in Cuba’s nascent industry, even if only to protect against an accident.

“This isn’t about ideology. It’s about oil spills,” said Lee Hunt, president of the International Association of Drilling Contractors, a trade group that is trying to broaden bilateral contacts to promote drilling safety. “Political attitudes have to change in order to protect the gulf.”

Any opening could provide a convenient wedge for big American oil companies that have quietly lobbied Congress for years to allow them to bid for oil and natural gas deposits in waters off Cuba. Representatives of Exxon Mobil and Valero Energy attended an energy conference on Cuba in Mexico City in 2006, where they met Cuban oil officials.

Right now, Cuba’s oil industry is served almost exclusively by non-American companies. Repsol, a Spanish oil company, has contracted with an Italian operator to build a rig in China that is scheduled to begin drilling several deepwater test wells next year. Other companies, from Norway, India, Malaysia, Venezuela, Vietnam and Brazil, have taken exploration leases.

New Mexico’s governor, Bill Richardson, a Democrat who regularly visits Cuba, said Cuba’s offshore drilling plans are a “potential inroad” for loosening the embargo. During a recent humanitarian trip to Cuba, he said, he bumped into a number of American drilling contractors — “all Republicans who could eventually convince the Congress to make the embargo flexible in this area of oil spills.”

“I think you will see the administration be more forward-moving after the election,” Mr. Richardson said.

Despite several requests in the last week, Cuban officials declined to make anyone available for an interview.

Currently, the United States, Mexico and Cuba are signatories to several international protocols in which they agreed to cooperate to contain any oil spill. In practice, there is little cooperation between Washington and Havana on oil matters, although American officials did hold low-level meetings with Cuban officials after the BP blowout.

“What is needed is for international oil companies in Cuba to have full access to U.S. technology and personnel in order to prevent and/or manage a blowout,” said Jorge Piñón, a former executive of BP and Amoco. Mr. Piñón, who fled Cuba as a child and now briefs American companies on Cuban oil prospects, said the two governments must create a plan for managing a spill.

Several American oil and oil service companies are eager to do business in Cuba, Mr. Piñón said, but they are careful not to identify themselves publicly because they want to “protect their brand image in South Florida,” where Cuban-Americans who support the embargo could boycott their gasoline stations and other products.

There are signs the Obama administration is aware of the safety issues. Shortly after the BP accident, the Office of Foreign Assets Control, the agency that regulates the embargo, said it would make licenses available to American service companies to provide oil spill prevention and containment support.

Charles Luoma-Overstreet, a State Department spokesman, said licenses would be granted on a “application-by-application basis,” but he would not comment on the criteria.

Mr. Piñón said it appeared that an American company could apply for a license before an emergency but that a license would be issued only after an accident had occurred. “We’re jumping up and down for clarification,” he said.

One group — Clean Caribbean & Americas, a Fort Lauderdale cooperative of several oil companies — has received licenses to send technical advisers, dispersants, containment booms and skimmers to Cuba since 2003. But it can only serve the member companies Repsol and Petrobras, not Cuba’s government.

Economic sanctions on Cuba have been in effect in one form or another since 1960, although the embargo has been loosened to allow the sale of agricultural goods and medicines and travel by Cuban-Americans to the island.

Mr. Hunt of the drillers’ group said that the association had sent a delegation to Cuba in late August and had held talks with government officials and Cupet, the Cuban national oil company.

He said that Cuban officials, including Tomás Benítez Hernández, the vice minister of basic industry, asked him to take a message back to the United States. “Senior officials told us they are going ahead with their deepwater drilling program, that they are utilizing every reliable non-U.S. source that they can for technology and information, but they would prefer to work directly with the United States in matters of safe drilling practices,” Mr. Hunt said.

Mr. Benítez became the acting minister last week when the minister of basic industry, the agency that oversees the oil industry, was fired for reasons still unclear.

Donald Van Nieuwenhuise, director of petroleum geoscience programs at the University of Houston, said that if an accident occurred in Cuban waters, Repsol or other companies could mobilize equipment from the North Sea, Brazil, Japan or China. But “a one-week delay could be disastrous,” he said, and it would be better for Havana, Washington and major oil companies to coordinate in advance.

Opponents of the Cuban regime warn that assisting the Cubans with their oil industry could help prop up Communist rule. Instead of making the drilling safer, some want to stop it altogether.

Senator Bill Nelson, Democrat of Florida, is urging President Obama to recall a diplomatic note to Havana reinforcing a 1977 boundary agreement that gives Cuba jurisdiction up to 45 miles from Florida. “I am sure you agree that we cannot allow Cuba to put at risk Florida’s major business and irreplaceable environment,” he wrote the president shortly after the BP accident.

Castro's Useful Idiots

Weekend at Fidel's Jeffrey Goldberg is not the first American journalist to cuddle up to Castro.

By MARY ANASTASIA O'GRADY

At most marine parks in the world the animals provide the entertainment. But at the Havana aquarium last month, Fidel Castro had a couple of humans eating out of his hand and clapping like trained seals.

I refer here to the Atlantic Monthly's Jeffrey Goldberg, who traveled recently to Cuba at Castro's invitation with his friend Julia Sweig of the Council on Foreign Relations. Mr. Goldberg has posted a two-part report from his lengthy conversations with the dictator online for the magazine. One part includes details of a day at the aquarium, where Mr. Goldberg, accompanied by Ms. Sweig, seems to have experienced more than one "thrill going up [his] leg" in the presence of Fidel.

The reporter "hope[s] to be publishing a more comprehensive article about the subject in a forthcoming print edition of the Atlantic." I'm guessing that anyone who actually knows something about Castro's Cuba is not the target audience.

Castro again has an urgent need to put a smiley face on his dictatorship. The economy is in dire straits. Food is scarce, electricity is a rarity, and soap and toilet paper are luxuries. Cuba produces almost nothing and this makes it difficult to get hard currency—aka real money—which in turn makes it tough to buy from abroad. Lending sources have dried up.

If the regime is to stay in power, it needs a new source of income to pay the secret police and keep the masses in rice. The best bet is the American tourist, last seen circa 1950 exploiting the locals, according to revolutionary lore, but now needed by the regime. It wants the U.S. travel ban lifted. To prevail, Castro needs to counteract rumors that he is a dictator. Solution: a makeover in the Atlantic. In Mr. Goldberg, he no doubt recognized the perfect candidate for the job.

Fidel's step one was to tell Mr. Goldberg that he is outraged by anti-Semitism. "I don't think that anyone has been slandered more than the Jews," the old man proclaims to his guests. And by the way, Mahmoud Ahmadinejad should "stop picking on the Jews." When Mr. Goldberg asks whether Castro will tell the Iranian himself, Castro says, "I am saying this so you can communicate it." Translation: This should be the headline of your piece so that the American people will recognize my benevolence. Mr. Goldberg complied.

We are supposed to conclude that Cuba is no longer a threat to global stability and that Fidel is a reformed tyrant. But how believable is a guy whose revolution all but wiped out Cuba's tiny Jewish community of 15,000, and who spent the past 50 years supporting the terrorism of the Palestinian Liberation Organization, Syria, Libya and Iran? And how does Castro explain Venezuela, where Cuban intelligence agents run things, Iran is an ally and anti-Semitism has been state policy in recent years? Mr. Goldberg doesn't go there with Fidel.

It also is passing strange that we hear nothing from Mr. Goldberg about poor Alan Gross. Mr. Gross, a U.S. government contractor and a Jew, has been languishing in a Cuban prison since December. His crime: distributing computers to a handful of Cuban Jews who want to establish contact with the diaspora. Is that any way to show love for the Jewish people?

It never seems to cross Mr. Goldberg's mind that he is being used in a manner Communists first learned at Lenin's knee. Or perhaps he is happy to be useful. In a follow-up post he explains that since Fidel is not as bad as Pol Pot, Cubans should stop complaining. And to demonstrate further how little he knows about the plight of the Cuban people, he says that the "release" of political prisoners "is currently being negotiated." Wrong. Some have been exiled; some others may receive conditional parole meaning that they can be returned to prison at any time if the regime disapproves of their activities.

Mr. Goldberg is peddling his Castro interviews as serious journalism. But while he was "curious" to get a "glimpse of the great man," he was ill-prepared for the job. Presumably he knew this, which is why he allowed Ms. Sweig to lead him around Havana by the nose.

This set him up for failure because Ms. Sweig—an academic with easy access to the island while critics are banned—is a trusted friend of the dictatorship. "Fidel greeted Julia warmly; they have known each other for more than twenty years," Mr. Goldberg reports.

When Castro declares that the Cuban model no longer works, Mr. Goldberg turns to Ms. Sweig, as if there is something profound to be grasped. He is not saying "the ideas of the Revolution" have failed, she explains, but only that the state "has much too big a role" in the economy. Right, except that the state-owned economy is the idea of the revolution.

It is hardly surprising, then, that what we get from this interview is warmed-over Barbara Walters, another whose heart went pitter patter when she got close to the Cuban despot. This encounter also produced nothing of substance.

Cuban Paper Pushers

What price will Cubans pay for black-market toilet paper in the coming months? How many examples of utter failure are needed to convince dreamers that communism does not work?

Cash-strapped Cuba says toilet paper running short

HAVANA (Reuters) – Cuba, in the grip of a serious economic crisis, is running short of toilet paper and may not get sufficient supplies until the end of the year, officials with state-run companies said on Friday.

Officials said they were lowering the prices of 24 basic goods to help Cubans get through the difficulties provoked in part by the global financial crisis and three destructive hurricanes that struck the island last year.

Cuba's financial reserves have been depleted by increased spending for imports and reduced export income, which has forced the communist-led government to take extraordinary measures to keep the economy afloat.

"The corporation has taken all the steps so that at the end of the year there will be an important importation of toilet paper," an official with state conglomerate Cimex said on state-run Radio Rebelde.

The shipment will enable the state-run company "to supply this demand that today is presenting problems," he said.

Cuba both imports toilet paper and produces its own, but does not currently have enough raw materials to make it, he said.

One of the measures taken to address the cash crunch is a 20 percent cut in imports, which in recent days has become evident in the reduction of goods in state-run stores.

Cuba imports about 60 percent of its food.

Despite the shortages, prices will be cut between 5 percent and 27 percent for some food, drugs and personal hygiene products, officials said.

A visit to a store in Havana's Vedado neighborhood on Friday found that prices had dropped for mayonnaise, barbecue sauce and canned squid.

One customer, who gave his name only as Pedro, complained that "it doesn't look like prices have been lowered for the fundamental products" such as cooking oil.

Ana Maria Ortega, deputy director for military-run retail conglomerate TRD Caribe, said there will be no shortage of basic goods.

"The conditions are in place to maintain the supply of essential products," she said on the same radio program.

Cubans receive a subsidized food ration from the government each month that they say meets their needs for about two weeks.

President Raul Castro told the National Assembly last week that the government had cut its spending budget for the second time this year and has been renegotiating its debt and payments with foreign providers.

Cuba has long blamed the 47-year-old U.S. trade embargo against the island for many of its economic problems. It also said that last year's hurricanes did $10 billion worth of damage that forced the government to spend heavily on imports of food and reconstruction products.

Castro, who replaced his ailing older brother Fidel Castro as president last year, also has complained that Cuba's productivity is too low.

He has taken various steps to boost output, including putting more state-owned land in private hands and pushing for salaries to be based on productivity.