New York Times
November 15, 2001
By Christopher marquis

WASHINGTON, Nov. 14 - For the first time since the United States imposed trade sanctions against Cuba four decades ago, Havana is negotiating a deal with American producers to buy food and agricultural products to replenish stocks destroyed by a recent hurricane.

Cuban and American diplomats agreed today to use United States ships to deliver the goods to the island, clearing a final hurdle to the sales, officials said. Cuba offered last week to pay cash for the purchases, eliminating the need for American financing. Congress has restricted such financing.

Cuba's top diplomat in the United States, Dagoberto Rodríguez, specified the products that his government sought, including lumber, corn, wheat, rice and soy, with a total value of less than $3 million, according to people familiar with the talks.

Last year, Congress approved the sale of food and agricultural products to Cuba under heavy pressure from farm producers who were seeking new markets. But there have been no sales because lawmakers critical of President Fidel Castro barred United States government or private financing, and Mr. Castro balked at the terms.

Last week, after Cuba had suffered its most disastrous hurricane in 50 years, Washington offered to provide Cuba with aid, with the proviso that it not be distributed by the government. Havana responded politely, saying it would not require the cooperation "kindly offered" but would instead like to buy food, medicine and other materials to restock its reserves.

The hurricane ruined up to one million acres of sugar cane and as much as 20 percent of the citrus crop, Cuban authorities reported. At least 450,000 houses were destroyed, with fatalities limited to five people thanks to an extensive evacuation.

After nearly a week of discussions, the Bush administration is prepared to approve licenses to allow the cash sales to proceed, a State Department official said today. The small value of the purchases suggested that Cuba might be using the catastrophe to cut into in the American embargo rather than seek actual relief.

"The potential political benefits to Cuba from these sales cannot not be discounted," said John S. Kavulich, president of the U.S.-Cuba Trade and Economic Council, which advises companies interested in Cuba.

The Cuban request has stirred a flurry of activity among American farm groups. Exporters of wheat, dairy, rice and other products are circulating a draft letter to President Bush urging him to "take whatever action is necessary" to expedite licenses and work with Congress to ease trade restrictions.

Cuba spends $700 million to $1 billion a year to obtain food from competitors of the United States.