Cuba kicks out some foreign companies

In a further sign of economic retrenchment, Cuban officials have closed scores of foreign businesses that were welcomed here a decade ago to bail out the nation's faltering economy. Some of Europe's largest companies formed joint ventures or other arrangements with Cuba's state-run enterprises, including Swiss food giant Nestle, cigarette producer British American Tobacco and Spanish hotel-management giant Sol Melia. Sherritt International of Canada also has invested heavily in boosting Cuba's oil, nickel and energy production.

But many smaller companies also took advantage of the economic opening in the 1990s, importing everything from toys to spark plugs to hospital equipment to sell in Cuba. Diplomats and business executives say it is primarily these small and medium operators who have been asked to leave Cuba as Fidel Castro and other officials express confidence the island's economy has recovered sufficiently to withstand the companies' departure.

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Rather than reaching out to European companies, Castro is strengthening economic ties with Venezuela, an important ally now providing Cuba 90,000 barrels of discounted oil daily. Cuban officials also are counting on an economic lift from China, which has promised to invest hundreds of millions of dollars to boost nickel production, a key Cuban export.

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But some diplomats and business officials do not share Castro's optimism about Cuba's economic future. Local manufacturing and other activities remain severely hampered by a dearth of investment and an unmotivated workforce. Cuba also does not have the hundreds of millions of dollars needed to repair its deteriorating electrical grid, water system and other infrastructure. By pushing foreign investors out, Cuba risks permanently damaging its international reputation even though it may need those investors should the island suffer another economic collapse.

I hope the Cuban government throws out all foreign companies, so that everyone involved in propping up the regime loses their shirts.