Diplomats spoke of "fatal" Cuban economy in cable

Diplomats from several countries said Cuba's economic situation could become "fatal" within two to three years while a Chinese diplomat groused that discussing reforms with the Cuban government was "a real headache," according to a purported U.S. cable obtained by WikiLeaks and published on Thursday by the Spanish newspaper El Pais, Reuters reported.

The cable was written in February, before the communist-led government announced significant economic reforms in September.
It chronicled a breakfast meeting hosted by a U.S. diplomat for economic and commercial counselors from China, Spain, Canada, Brazil, Italy, France and Japan.

The cable talked generally abut Cuba's economic problems, which forced the government led by President Raul Castro to slash imports, stop payments to many creditors and freeze foreign business accounts in Cuban banks.

"All diplomats agreed that Cuba could survive this year without substantial policy changes but the financial situation could become fatal within two to three years," said the cable, classified confidential and apparently authored by Jonathan Farrar, chief of the U.S. Interests Section in Havana.

The interests section substitutes for an embassy because the United States and Cuba, at ideological loggerheads for five decades, have no official diplomatic relations.

"Italy said (Cuban government) contacts had suggested Cuba would become insolvent as early as 2011," the cable said.

"Even China admitted to having problems getting paid on time and complained about Cuban requests to extend credit terms from one to four years," the cable said. "France and Canada responded with 'welcome to the club.'"
It said China's representative complained "in visible exasperation" that Cuba insists on keeping majority control of all joint ventures.

The group was described as pessimistic about the possibility of "meaningful" economic reform, with the Brazilian saying it had the potential of being politically "destabilizing."

"Any discussions around Chinese-style reforms, particularly regarding foreign investment, have been difficult and 'a real headache,' according to the Chinese," the cable said.