The Hindu : International : China, Cuba agree on loan extension

Online edition of India's National Newspaper
Wednesday, Nov 24, 2004

International

International

China, Cuba agree on loan extension

HAVANA, NOV. 23. The Chinese President, Hu Jintao, ended his first day of a state visit to Cuba by witnessing a marathon signing of 16 agreements with the Cuban Government, including deals to buy nickel, build a nickel production plant and launch exploration projects for the mineral.

Mr. Hu and the Cuban President, Fidel Castro, looked on as several Ministers and business executives from both countries signed the accords, which also included a 10-year extension to pay back loans given to Cuba in the early 1990s.

Mr. Hu was to spend two days in Havana. After arriving on Monday, he met Mr. Castro for several hours before the agreements were signed. Under the nickel accords, starting next year Cuba will provide 4,000 metric tonnes of a nickel derivative annually to China, adding to 20,000 metric tonnes by 2009.

Last year, Cuba became the world's fifth largest nickel producer, generating 75,000 metric tonnes worth more than $400 millions. The business ventures will be 51 per cent Cuban and 49 per cent Chinese, and involve China's Grupo MINMETALS as well as Cuban nickel businesses.

Interest-free loans

As for the loan extension, Cuba will have another 10 years to pay off four different interest-free loans received from China between 1990 and 1994 during hard economic times known in Cuba as ``the special period.''

China will also donate $6 millions to Cuban hospitals and health clinics, as well as cloth for school uniforms worth about another $6 millions. The country also agreed to finance 1 million televisions for Cuba.

Other agreements included cooperation in the fields of biotechnology, telecommunications and meteorology, as well as plans to teach Chinese to Cuban students.

Mr. Castro received Mr. Hu and his wife, Liu Yongqing, in Havana's Palace of the Revolution. The 78-year-old Cuban leader, who shattered his left kneecap and broke his right arm in an accidental fall last month, sat in a wheelchair, his leg propped up.

Mr. Hu, who came to Cuba on a personal invitation from the Cuban leader, praised its Socialist revolution in a written message given to the press upon his arrival. He highlighted friendship between the two nations, saying ``Chinese-Cuban ties have passed the test of changing and adverse international circumstances.''

Relations between the two countries were tense during the Cold War, when the Caribbean island had a strong alliance with the Soviet Union. But since the Berlin Wall fell in 1989, political and commercial relations between Cuba and China have steadily strengthened.

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