Havana, March 17 (RHC - Late Edition)--Cuban President Fidel Castro announced a major economic change for the country in a special meeting Thursday evening in Havana with the nations principal leaders and representatives of political and grass roots organizations present.

Reading from a Cuban Central Bank proclamation, the country's leader announced that the exchange rate of the Cuban peso to the Cuban convertible peso - which is on a par with the US dollar - will drop from 26 to 24:1. This represents a 7% increase in the value of the Cuban peso which is the currency most people receive as salary in Cuba. Buying convertible pesos with Cuban pesos will now be 25:1 in lieu of 27:1.

The announcement was received with cheers and loud applause followed by an obviously pleased Fidel Castro saying that the measure gave him tremendous satisfaction and that the strengthening of the nation's currency rewards the extraordinary confidence in the economy demonstrated by the people of Cuba, along with the discovery of oil on the island. The proclamation goes into effect when the banks open Friday.

"Let's see what they make of this now," mused the Cuban leader about the likely handling of the news by the United States. In light of Cuba's recent rejection of the US dollar as legal tender in Cuba, Fidel Castro then opined on the disasters that have become nations whose economies have been artificially linked to the dollar, such as Argentina, or have taken the dollar as their main currency, such as Ecuador. The opposite has happened in Cuba, he said.

Prior to making the announcement of the strengthening of the peso, the Cuban president had responded to criticism by the population of his announcement last week on International Women's Day that rice and pressure cookers would be made available to the entire population in an effort to save on energy.

Before beginning to respond to a selection of some 26,000 opinions that had been presented to local authorities across the country in response to his speech, Fidel Castro, himself a baseball fan, reassured those present that he would be sure to finish before an important baseball game this evening.

One of the greatest concerns among the comments collected was where the energy resources would be coming from to support the use of some seven million electric cookers. Fidel Castro responded that the savings of energy by using these efficient cookers would far exceed the energy needed to use them. Inefficient cookers, kerosene and gas would no longer be used for cooking rice and beans, so the saving would be immediate, he said.

Others asked: How are we to cook using electricity with constant black outs? A good question, responded the Cuban president. Extensive measures have been taken to prevent further problems with the national grid. A total of $34 million had been spent upgrading one electrical plant alone, he said, and there would be major changes before the end of the year in terms of electric generation. By the second quarter of 2006, Fidel Castro promised that baring unforeseen circumstances such as accidents, there would be no more black-outs in the country.

Commenting that he enjoyed receiving the opinions of Cubans - critical or not - the President read out another comment that said he had only made the announcement about the distribution of pressure and rice cookers to ingratiate himself with the country's women just before municipal elections. Well, he answered, if that's true he was ingratiating himself in a manner that was just, and in an attempt to solve major problems of cooking for the people and energy for the country. Kerosene, for example, is used by a large number of people in Cuba and is dangerous and its smell enters the food it cooks. It is also an inefficient use of energy. And this has nothing to do with the elections, added Fidel Castro. In Cuba nobody buys votes - tell that to the rest of the world.

As to those who would not be able to afford the very low price of the cookers, the Cuban president said that all people on social assistance will be given one for free. They will thus be within the reach of everyone on the island, regardless of income.

After reading the Cuban Central Bank resolution, with everyone in a good mood and in time for the baseball game tonight, Fidel Castro then led everybody in singing The International.

(RHC) 18-03-2005