Hu visits Cuba to bolster trade 

Published: 5:01PM Tuesday November 18, 2008

Source: Reuters

Chinese President Hu Jintao arrived in Cuba for a two-day visit to promote further economic ties with the island struggling to recover from three hurricanes and the ongoing effects of the global financial crisis.

No sooner had Hu landed than Cuban television said the two countries had already signed accords for China to continue purchasing nickel and sugar from Cuba and to provide agricultural products to the Caribbean country.

More agreements on economic, education and other matters were expected to be signed during a visit Cuba hailed as an indication of the close relations between the two Communist-run countries.

Hu, making his second trip to Cuba, was greeted at Havana's airport by First Vice President Jose Ramon Machado Ventura, a dragon dance performed by Cuban youths, and some 50 members of the local Chinese community who waved Cuban and Chinese flags.

"My visit is aimed at increasing friendship and cooperation between our two nations, and working together with our Cuban comrades to build a promising future," Hu said in a statement.

Hu offered "sincere good wishes that the Cuban people achieve continuous new advances in the construction of socialism."

China is Cuba's largest trading partner after Venezuela at $2.3 billion in 2007 and is looking to increase that number.

The Asian giant currently buys about 400,000 tons of sugar annually from Cuba and is estimated to get close to half of Cuba's annual nickel production of 75,000 tons a year.

Due to damage from hurricanes Ike, Gustav and Paloma, which caused $10 billion in damage when they rampaged through the island this year, Cuba may be hard-pressed to promise more of either product in the near-term.

Chinese loans have helped Cuba rebound from the hardships that followed the 1991 collapse of its Cold War benefactor, the Soviet Union, and those loans are starting to come due.

Western diplomats said it was likely that restructuring those debts and future credits will be on the agenda as Hu meets with Cuban officials, including President Raul Castro.

Hu was scheduled on Tuesday to visit a school near Havana where hundreds of future Chinese diplomats, translators and functionaries are studying Spanish.

On Tuesday evening, he was to attend a ceremony where other accords with Cuba will be signed, then depart on Wednesday en route to Peru for an Asian-Pacific Economic Cooperation summit.

It was not known if Hu would meet with former Cuban leader Fidel Castro, who was in power when Hu visited in 2004.

The ailing, 82-year-old Castro has not been in public since undergoing intestinal surgery in July 2006 and was formally replaced as president by brother Raul Castro in February, but occasionally meets with visiting heads of state.

Even though the two countries are run by communists, they have very different policies. While China long ago adopted market economics, Cuba still has a Soviet-style command system where more than 90 percent of the economy is in state hands.

"This visit is an expression of the existing excellent ties between both parties and governments and constitutes a gesture of close friendship between the people of Cuba and China," Granma, the newspaper of Cuba's ruling Communist Party, said on Monday in a front-page story.

Hu came to Cuba from Costa Rica, where he said the Central American nation was benefiting from closer relations with Beijing after it cut diplomatic ties to Taiwan last year.

On Saturday, Hu attended the G20 global economy meeting in Washington.


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Provocative, unflinching, Thursday 9:30pm
Back Benches - giving politics back to the people
The way New Zealand wakes up weekdays, 6:30am
No one gets you closer, weeknights 7pm
Looking out for the little guy, Wednesday 7:30pm
Meet the people that bring you the news
TV ONE weekdays, 6am
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Te Karere, Maori News - 4pm weekdays, TV ONE
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