Last week, the American corporation ITT announced it had negotiated an agreement with the Italian firm, Stet International, in which ITT is giving Stet International permission to use its assets in Cuba for ten years in return for a substantial monetary payment. It reinforces the principle of respect for the property rights of U.S. citizens, and serves as a disincentive to investment in Cuba. The Department has a number of companies under investigation for possible trafficking, and will continue to pursue all evidence and leads. Meanwhile, we must sadly admit that the situation in Cuba is deteriorating. The economy is in desperate straits.
Financial constraints are severe.
The sugar harvest will be lower than expected. Tourism is a major source of income, but is not growing at the rate the Cuban government had hoped. Economic reforms have been circumscribed, not liberalized. Because salaries and rations are so low, pilfering, crime, and prostitution are common. The dollar is the major currency in the shadowy underground economy on which much of the population must rely for basic survival.