O

Diplomatic representation: none; protecting power in the US is
Czechoslovakia--Cuban Interests Section; Counselor Jose Antonio Arbesu
FRAGA; 2630 and 2639 16th Street NW, Washington DC 20009; telephone (202)
797-8518 or 8519, 8520, 8609, 8610; US--protecting power in Cuba is
Switzerland--US Interests Section; Principal Officer John J. TAYLOR;
Calzada entre L y M, Vedado Seccion, Havana; telephone 320551 or 320543

Flag: five equal horizontal bands of blue (top and bottom) alternating
with white; a red equilateral triangle based on the hoist side bears a white
five-pointed star in the center

- Economy
Overview: The Soviet-style economy, centrally planned and largely
state owned, is highly dependent on the agricultural sector and foreign
trade. Sugar provides about 75% of export revenues and is mostly exported
to the USSR and other CEMA countries. The economy has stagnated since
1985 under a program that has deemphasized material incentives in the
workplace, abolished farmers' informal produce markets, and raised prices
of government-supplied goods and services. Castro has complained that
the ongoing CEMA reform process has interfered with the regular flow of
goods to Cuba. Recently the government has been trying to increase
trade with Latin America and China. Cuba has had difficulty servicing
its foreign debt since 1982. The government currently is encouraging
foreign investment in tourist facilities. Other investment priorities
include sugar, basic foods, and nickel. The annual $4 billion Soviet
subsidy, a main prop to Cuba's threadbare economy, may be cut in view
of the USSR's mounting economic problems.

GNP: $20.9 billion, per capita $2,000; real growth rate - 1%
(1989 est.)

Inflation rate (consumer prices): NA%

Unemployment: 6% overall, 10% for women (1989)

Budget: revenues $11.7 billion; expenditures $13.5 billion,
including capital expenditures of $NA (1989 est.)

Exports: $5.5 billion (f.o.b., 1988);
commodities--sugar, nickel, shellfish, citrus, tobacco, coffee;
partners--USSR 67%, GDR 6%, China 4% (1988)

Imports: $7.6 billion (c.i.f., 1988);
commodities--capital goods, industrial raw materials, food, petroleum;
partners--USSR 71%, other Communist countries 15% (1988)

External debt: $6.8 billion (convertible currency, July 1989)

Industrial production: 3% (1988)

Electricity: 3,991,000 kW capacity; 14,972 million kWh produced,
1,425 kWh per capita (1989)

Industries: sugar milling, pet