Diario las Américas., 1958-02-23
Fourteen Firms Said to
be Ready to buy Cuban
Nickel Mine From U.S.A.

ment to spell out what taxes must
be paid. Officials from these firms,
the General Services Administra.
ton (GSA), and the State Depart
ment have been comforting on and
off for the past three months with
Cuban Government officials in
Havana on the matter.
The mine at Nicaro is owned by
the U. S.. Government, but a subSi-
diary of National Lead Co., and a
small Cuban private interests
group operate the mine that an
nually produces $4,000, 900 pounds
of finished products. Nickel is be-
ing used In increasing quantities
in the production of rockets and
missiles as it is valued for its
toughness, durability, and high
heat-resistance.
The United States started the
plant in 1912, today it represents a
net investment of $85, 000,0 600. 1t
is now operated on a profitable
basis, primarily because the Unit
ed States pays relatively few taxes,
about $4,000 a year that go
mostly towards Cuban workers So
cial security and retirement funds,
+. US. firms have hesitated in bid
ding for Nicaro because the Cuban
Government has told GAS that the
new owners will have to abide by
the "Cuban New Industry" law
passed by the Congress in 1858.
The law, aimed at encouraging for
eign private industry to set up
shop in Cuba, exempts new indus
try for a ten-year period from pay
ing certain taxes and import du-
ties on plant equipment.
However, the law does not eX-
empt payment of the stiff import
duty on fuel. But under its pre-.
sent contract with the Cuban Gov
erHment, Nicaro need not pay the
fuel import duty. U. S. officials
have pointed out that since NicarO
uses a great quantity of fuel 10
make the finished nickel it would
be almost impossible to operate
profitably while paying the import
duty on fuel.
The officials have expressed con-
fidence thhat the Cuban Govern
ment will allow new owners the
exemption on fuel. However, the
Government of President Fulgen-
clio Batista is facing mounting po-
litical opposition that charge the
government 'is giving away our
natural resources" For this rea-
son it is estimated the tax matter
will not be cleared up until after
June 1 presidential election.
GSA announced last November
the mine was for sale. II said the
Cuban government did not want to
buy it but the Cuban Government
had expressed hope that private
Cuban interest would from part Of
the new ownership.
us officials think It possible
that the Cuban Government might
insist that at least Is per cent Of
the stock be offered to the Cuban
public as the U.S-owned Cuban
Telephone Company did several
years ago. However, many us
firms may be wary of offering
stock to foreign nationals, it is be
lieved.
Ira D. Beynon who handles the
mine for GSA said in November
the announcement was made tt
curb rumorS that the us. Govern
ment was making secret deals with
certain us firms to buy Nicaro
The huge mine, a town in itself
has its own water and power sup
ply, police and fire departments
docks, stores, hospital, etc. Abou'
20 us families live there.
Nicaro is located in Orient'
Province where rebel outfits ar,
fighting Government forces. How
ever, it is 85-100 miles across
mountain range from the battle
scenes.