China Grants Credit to Cuba to Build Port Terminal in Santiago

Official talks on July 22, 2014 in Havana between Xi Jinping and Raul Castro. Photo: granma.cu

HAVANA TIMES — China granted Cuba several new loans on Tuesday, including one for the construction of a port terminal in Santiago de Cuba, according to the agreements signed during the visit to the island by Chinese President Xi Jinping, reported dpa news.

The loans from Peking are interest-free, while there are also new trade agreements and donations. The official Cuban media did not disclose the amounts involved.

The new lines of credit for Cuba add to the loans and investment agreements granted by China to Venezuela and Argentina during the earlier legs of the trip of President Xi Jinping to the region. Havana and Santiago de Cuba are his last stops before returning to China later Wednesday.

The governments of Beijing and Havana signed a total of 29 agreements to enhance cooperation and economic relations, according to information released by the state television.

The first “concessional credit line” will be aimed at “building a multipurpose terminal in the port of Santiago de Cuba,” states the text of the agreement.

Other loans are meant to postpone payment of the Cuban debt with Beijing and make possible the installing of digital television on the island, which is being carried out with Chinese technology.

Other contracts provide for cooperation in the sugar and oil industries as well as Cuba’s sale to China of nickel derivatives.

Xi Jinping visited Fidel Castro at his Havana home. Photo: Alex Castro/granma.cu

Xi took part in official talks in the afternoon on Tuesday with his Cuban counterpart, Raul Castro. In the morning he visited former President Fidel Castro, active in recent days with foreign policy matters.

Xi gave Fidel Castro a bronze bust of 175 kilograms depicting the Cuban revolutionary in his youth.

In his first visit to Cuba as head of state, Xi was granted the Jose Marti order, the highest distinction awarded by the Cuban state.

The Chinese leader travels on Wednesday to Santiago de Cuba, from where he will return to his country. Cuba’s second largest city, located in the east of the country, is still recovering from the devastating hurricane “Sandy” in October 2012.

Before reaching Cuba, the Chinese leader was in Venezuela and Argentina. Last week he also participated in the summit of the emerging group of BRICS nations (Brazil, Russia, India, China and South Africa) held in Fortaleza and Brasilia.

The BRICS group approved the creation of two alternative institutions to the World Bank and the International Monetary Fund (IMF), focused on their interests.

In Venezuela, Xi and President Maduro signed 38 agreements that include the sharp increase in the South American country’s oil sales to China.

Caracas will go from providing the current amount of 524,000 barrels per day to nearly double. The increase will be covered by a new line of Chinese credit of US $4 billion, which should ensure the supply of one million barrels of oil per day through 2016.

Xi also announced in Buenos Aires investments of almost $7 billion for the construction of two hydroelectric dams and the modernization of the railway.


20 thoughts on “China Grants Credit to Cuba to Build Port Terminal in Santiago

  • Do you really think Mr. Downey that the Castro regime would change it’s policies even if the embargo was lifted? I oppose the embargo because it is in my view counter-productive to US interests, but unlike Mr. Goodrich, I do not think that the people of Cuba would have a better life. The embargo does not result in the Castro regime opposing purchases from the US by the Universal Trade Management Corporation SA – Visit any of the shops including those owned by Gaviota (Cuban military owned) and you will find shelves bearing US products. IF I were the Castros I would forbid purchases by government agencies of US products. “Reason” does not apply in Cuba – and it is necessary to visit there to know the truth.

  • China does not have friends it has supplicants. The objective is clearly power and any “help” it offers comes with strings atttached. If you doubt that, ask the “partners” in the ASEAN group. Ask Vietnam about the Chinese drilling for oil in Vietnames waters! Like all bullies, China is agreeable as long as it gets it’s way!

  • Mr. Downey, you insult Cuba by describing it as “defenseless”. With over 35,000 currently serving in the military, with a record of military involvement in 13 other countries and including participating in the Yum Kippur war, with a history of intervention in Angola for 13 years it is grossly inaccurate to describe Cuba as defenseless. Yes, the military is an outstanding example of Parkinson’s Law – with a multitude of high ranking officers – many of them as old as President Raul Castro Ruz and with uniforms bearing almost as many medals as Breschnev. Also there are the commercial activities of Gaviota to consider. It is managed by Colonel Luis Alberto Rodriguez, the son-in-law of the President. Gaviota is a holding company for the Cuban Defense Ministry and owns almost 25% of the hotel rooms in Cuba. It also owns Aerogaviota and operates civilian aircraft.
    Get with the facts Mr. Downey.

  • “And America wonders why no one in the world likes them??” No we don’t. In fact, I think the US still does OK in the popularity contest department. At least it would seem so based on the immigration requests we receive.(#1 in the world) The Castro regime, despite the subsidies from only a handful of countries, forgiven loans, and various and sundry freebies, continues to decline economically, socially, and demographically. |Do the work and check recent declines in GDP, population growth, agricultural output, and even sports. Lefties like you refuse to see the hard facts that belie these truths and appear to prefer to foist Cuba upon some pedestal of hope for a world that has never existed. Your blind loyalty to the socialist utopia, the New Man and all the other bullsh*t that goes along with it is admirable. Little by little Cuba is transforming into a society much like what exists in eastern Europe after the collapse of the Soviet bloc. A small group of “Haves” and a large group of “Have-nots”. Worse yet, these economic demarcations are occurring along racial lines in Cuba. Cuba is NOT becoming more socialist, more equal, more color-blind and less capitalistic. On the contrary, the opposite is happening. No one wants Cuba to “bend over” for the US. Yes, Cuba is going to “take it in the shorts” but they are going to do it to themselves.

  • Indeed

Leave a Reply

Your email address will not be published. Required fields are marked *