JPRS ID: 9466 LATIN AMERICA REPORT

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• Collection: JPRS
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00850R000300070001-0
• Release Decision: RIF
• Original Classification: U
• Document Page Count: 33
• Document Creation Date: November 1, 2016
• Sequence Number: 1
• Content Type: REPORTS

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JPRS L%9466
2 January 1981
Lati n America Report
(FOUO 1 /81) _
Fg~$ FOREIC N BROADCAST INFORMATION SERVICE
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NOTE
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JPRS L/9466
2 January 1981
LATIN AMERICA REPORT -
_ (FOUO 1/81)
CONTENTS
COUNTRY SECTION _
INTER-AMERICAN AFFAIRS
_ Pilcomayo Termed Key Project for Argentine-Paraguayan Integration
(Estela Araujo; LA OPINION, 9 Nov 80) 1
CUBA
'BOHEMIA' Round Table Discusses SDPE
(BOHEMIA, 21 Nov 80) 3
Achievements of Mechanized Work Unit Assessed
(Andres Rodrigue~; BOHEMIA, 7 Nov 80) 14
Review of C~nstruction Projects in Holguin Noted
(Alberto Pozo; BOHEMIA, 14 Nov 80) 21
Effect of Cane Rust on Sugar Plantings Described
(Andres Rodriguez; BOHEMIA, 14 Nov 80) 27
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COUNTRY SECTION INTER-AMERICAN AFFAIRS
u
P ILCOMAYO TERMED KEY PROJECT FOR ARGENTINE-PARAGUAYAN INTEGRATION
B~enos Aires LA OPINION in Spanish 9 Nov 80 p 11
[Article by Estela Araujo]
[Text] The n.ame of the enterprise to be awarded the contract for the construction
of the ~ncarnacion-Posadas bridge will be announced on 15 November. This is a new
under~aking in the integration of Argentina with Paraguay which must be carried
out because of floods which the Yacyreta Dam wi7i cause at the stations of the _
ferrynoats which formerly linked Encarnacion and Posada.
The railroad bridge wil~ be completed by 1985. Its budget is $80 millfon.
2liis bridge, considered a landmark in Latin American integration, will enable
Argentina to be linked to Bolivia by means of the Trans-Chaco highway, now under
, construction, and with Brazil by means of the Amistad Bridge which ~oins Brazil
and Paraguay neaz Itaipu.
The bids of the 11 eligible enterprises range from 162,463 to 303,498 pesos. ~
The possibilities of physical linkage with Paraguay are no~t exhausted with the
Yacyreta and Corpus dams nor with the Clorinda-Puerto Elsa bridge over the Paraguay
River nor the Encarnacion-Posadas bridge over the Parana River, to which will be '
added those whicH the dams make necessary.
'Ihere is a little known, almost forgotten pro~ect which offers the possibility of
a real link with Bolivia as well as with Paraguay: the Pilcomayo Pro~ect.
The Pilcomayo River has a b asin of 260,O~J0 square kilometers, half of which is in
Bol.ivian territory, 30 percent in Paraguay and 20 percent in Argentina. Its basic
characteristic is that it is a very irregular rive~ with great floods, has a chang-
ing channel and, like the Berme~o, carries a large amount of sedi~ent. It origi-
nates in Bolivia in the (;ordil~era Real, and its flooding is due to the heavy
rainfall in the low area, which occurs before i~ arrives in Paraguay-Argentine
territory. Since there are areas of much seepage, at times it becomes a small
arroyo. After passing the tripartite boundarq marker at Esmeralda, the point where
the three countries come togather (Boliv~a, Argentina and Paraguay), it crosses -
the Patino swamp which makes any navigati~rn difficult.
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Other problems which occur along its course are the large roots, the banks and
its constant changes of channel.
In 1860 Commodore Page, who belonged to a family of navigators, was abl~ to
navigate it for 250 kilom~:ters in the Alpha but he was not able to withstand the
difficulties of the voyage and died in the attempt. In spite of the fact that the
expedition had three vessels which had been expressly made ior it, there were such
difficulties that in order to move forward, when they practically ran aground be-
cause of lack of water, they built dikes to increase the volume ef water and thus
_ get nearer to its source.
At the Foiirth Meeting of the Ministers of the Plate Basin, it was agreed that a
study should ~e made of the multiple use of the Pilcomayo River, with the cvnsent
' of the thr.ee ~nterested nations. In 1974 an agreement was signed making the town
of V111a Montes, (Tarija Department), the starting point for a navigable canal,
which is the basic element of the project, 1Pading to its confluence with the
Pa-raguay~ River. Additional benefits would be: potable water, irrigation and
hydruelectric power.
Al.s~ being con5idered is a connection, by means of a 200 km roate, with the. pro- ~
~ected 1.a.*_e~r�al canal of the Bermejo River at approximately kilometer 700 on th~
Berme,;o !:ive~. -
' Tize Arge?~~~.ne~-yolivian work group is at the present time working on this pro~ ect, ~
anci th.e s:udies are considered to be well advanced.
At one t:ime tiie Paraguayan press discussed the intervenCion of the Foreign Ministry
of Paragt~ay at th~ Paraguayan-Argentine Commission with reg,3rd to tne construction -
_ o~ a uam ori the Riacho Porteno because, acc~cding to some sources, this river being
toc_ated ~.r.. ~ ormasa and being a tributary of the Pilcomayo, the dam might decrease
tL12 ta:'cer�s volw-ne of water. This incident, without consequences at the level of
Fo~ei~ re~_arioiis, shews, ho~aever, the importance attributed to the Pilcomayo as
~all .~s ::li~ dif.ficulty which the San Martin Palace has always had in negotiating -
and ~o~ning to a~;reement with sensitive Paraguayan patriotism.
i~~)}~1~T!n1~': i~.A OPIN?ON, 1980
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C~O: 3U1.0
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COUNTRY SECTION ~A
' BOHH~3"'tIA' ROUND TABLE DISCUSSES SDPE
Havana BO~IIA in Spanish 21 Nov SO pp 16-23
[Participants in BOHF3yIA Round Table: Gilberto Diaz, vice president of JUCEPLAN;
Dr Marta Lugioyo, deputy chief arbiter of l~~tional State Arbitration; Arnaldo Ala-
yon, director of credit to basic industry of the National Bank of Cuba; Wilfredo
Marrero, director of financing to agriculttme of the State Comm.ittee for Finance; _
and journalist Raul Lazo, BOHIIKIA Economic Section]
[Text] As the S~ond Party Congress approachES, this MR [Round
Table] offers an overall view of the progress in the process of
implementation of the SDPE [Economic Mana~ent and Pla~nning
Systeml, one of the most important econo~mic aspects of the the-
ses and reso~utions approved during that great event of the Cu-
ban communists. This work includes the development of four sub-
~ systems; banking, finan~ce, state ~rbitration and the stimula-
tion funds. -
A BOHQ~lIA rourid table like this one which aspires to bring the reader a report and
- succinct analysis of progress in the implementation of the SDPE is almost obliged
to begin raith a question in order to learn not only the results but sanething
equally important. This is the method, the form followed by the National Cou~aission
for Implementation of the SDPE to supervise the i.mplementation si.n~e this, to a
great degree, can supervise in time and form those tasks i.n the implementation time-
table that are developed according to plans. It also means that, when there are
difficulties, it becomes necessary to take measures that can guarantee fulfillment
of the plans .
Gilberto Diaz: ~t the first PCC [Co~ununist Party of Cuba] Congress, the imp~.~nenta-
tion of the SDPE was approved in one of its resolutions and i.n a w~rk program in
which the tasks, dates and organizations in charge of execution were specified. ,
In order to carry out those objectives, a mechanism of supervision over all those
tasks to determine the deg~ee of fulfillment was crea.ted by the National Couanission
~ for Implementation. Since the basic tasks of the system ended in 1978, the first
inspection was made on 11 February of the past year, using a questionnaire and very
detailed work tl~~ough which all progress in the implementation of the SDPE was
gathered in the budgeted enterprises and units. Later there were municipal and pro-
vincial plenary sessions to make a detailed analysis oF the implementation timet,ablP.
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,
In the second inspection, a similar method was used but improved bas~d on the ex�-
periences of the �irst= much more prc~ise conclusions were reached. Thi~ became a
r~port f~hat covers everything up to the present stage on the eve of the Second Party
_ Congress.
Journalist: The b~nk, to a great de~ee, b~ anes a mirror of the SDPE since many of
_ the mechanisms af' the system are reflected in its activities. We would like to laiow _
how bank activity has been developed in reldtion to the functions ass~_~ed to it by .
the SDPE.
Arr.aldo Alayon: I would like, first, to refer to the Cash Plan of the bank which
we can decine as the basic instr~unent to plan and control the movements of cash be-
tween the enterprises, budgeted units and other organizations and the people. This -
means the M~~netary income and expendit.ures uf the ~eople whose balance, which is
~.~nder the responsibility of ~UCEPL,A.'V [Central Planning Board], serves as the basis
for the ~;?.ahcrat~~ 0~1 of Lr.e Cash Plan. Along wi.th the elaboration of the methodology
of the Cash Plari 1!! 1978 ~ cocr~nittees for the national y provincial and muriicipal
_ cash plarl wer'e for~tled. Representatives of or~an.i.zations tied to this activity-- =
for exanple, ~:.II~J~~IN ~ nistry of. Dorr,estic 'IY~ade JUCEPLAN, i-he people's ~overnment
sectors fer~ t~ ade, gastroncxny, transportation, etc the State Gommittee for Labor _
and ~,cx: i.~.:i. ~..r-,~-.t;~ity and others--p~ticipate in these commissions which ar~alyze the
plaru~i.r~~; ~.r.~d ~x~;cuc~oti of the Cash Plan. The Cash P1an proposal for Lhe quarter
elat~ora~:~.~~1 the Lank and er~riched by the opinions of the cormnittees at the dif- -
f~
~eiit E~:~ , inr,l~_~dir~ final examination by the National Cornmittee on the Casr~
- pl.~, ~-;~~i:;4~.i tted ~uarterly to the Executive Committee of the Council of Ministers. -
- Journ~l ist : 4~Y,~r actior~s do thosp comnittees have?
Ar�na:l.t'o 1~.~__~~i~,~l: Let us sa.y, for examp"le, that a provinci~l can.un~rtee reac;hes Lhe
c~~A.clu:~:io~~ i:ha.t *,~i~; sales plan for the merchax:dise is not b2inb mst; b~;ause of de- _
" fic:~enc.i.F~~ in i~`~olesale supply, In ~hat case, the committee suggests nieasures to
correct~ :~~~i~ r~rc^1era. If the prablems must go to the national co~mittee, it sends
tt~~~r~ t~~ 1.t. ;;o ;,~~.t i.t car~ take the pertinent rneasures. All this is done very
quicklv so t:.'ae q~.~ar~ur can be carried out:, according to plan.
Jou~~r�~. u_s* � ~+~~at ar~ Lhe results of the Cash Plan?
Arr~G]. i~~ r~?.~~ro~; : ~ ficarit progress has been achi.eved which becomes concrete in
t~ti,er r~1: trVan those originally p~anned for tY;e Firiances of the people since
~i;:, ;,;'c~r~` ~cn ~!z 197s. '~'he support that the Cash Plan committees offer to the work
ef ::tir t;anl~ ~_ri t.l~,~s area has bcen an importarit factor since they act quickly. This _
per~n.u.t.s ~he~~ to detect problems in tim~ that can cause finan~rial imbalances in the
cash ;.rsome a.tld expenditures of the people. Nevertheless, there are sti.ll not only
~r~ethoc~olog~.cal problems btit also aspects reJ.ated to discipline ir~ the fulfillment -
- of' this ~~~~~~n. Tn the first plare, there is delay in the presentati.on of the cash
p:~.a;is L'y s~~m~ ent~r~ri~es; this causes disorgsriization.
l:rl.l!.~r~~_~ D:i~.z: ~~Je must emphasize that the prob~ems are not caused only by defi- ~
c~.~nci~s -~n nl~.clnino the Cash Plan but in its execution a1so. This is a new mech-
ani�wrr. t;Y:at. ai,~ns at better supervisi.on over all the enterprises that produce or of-
fer m:~t~r:ia1 goods or services to the people. It is linlced to the econornic
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- calculaticn system in trade whose sticnulation mechanism is only weakly developed.
In short, sales mechanisans ~r stimuli are not always present in those enterprises,
making them more l.ike "receiving" enterprises than sellers. We have cases like the
_ whole~ale enterprises, to mention only one example, that "wholesale" to the retail-
ers, forcing them to a~cept shir ts or pan,ts that are no longer worn. The gastrono-
~ mical network might offer a smaller number of dishes than it really could offer.
The lack of individual and management stimulation mechanisms causes this la3mess
which affects the Cash Plan and the ba.iance of expenditures and incane of the peo-
ple. They reflect a major part of the movements of material resources and their
monetary projectioz w;iich concerns the standard of living of the people; tha.t is
why the Cash Plan is so impor tant .
Journalist: In that sense, should the Cash Plan be converted into a valuable in-
- striunent to be considered in planning?
Gilberto Diaz: That plan is indeed being converted into a valuable meGhanism for
_ feedback for~ tne planning process. This should mean that planning the distributior.
and the satisfaction of consum~tion is done based on demand, not supplye This is a
road that we have be~un to take recently. There is a work g~oup that studies all
these problems of deficiencies in trade and has made very interesting proposals
about economic efficiency and stimulation of circulation. The Cash Plan has ended
many of those deficiencies.
Arnaldo Alayon: All these situations of a~cumulation of resources, poor management,
excess inventory and all the inadequacies i.n econanic management evident in the
commercial network and services as well as in the production sphere are also de-
tected through /bank credit/ [in boldface], through loans due from the enterprises
- and pending obligations with the bank. In short, poor business management has re-
percussions on the financial situation and causes the enterprises to default to the
finar:cial organizatior.s: the bank and the State Committee for Finance.
First, the bank had to train its cadres si.nce there was h:~rdly any na.tional exp~ri-
ence in credit matters. It was also neces:~y to draw up a set of general as well
as specific norms for each branch of the economy which would consider the peculiar-
ities of the credit financing of each of the enterprises. This was and is a complex
task since credit is tied to the Cash Plan as we have already seen and to the bud-
- get, the National E~ onomic Plan, the Price System, the consumption and inventory
norms and arbitration. In other words, it is connected to almost all the subsystems
of the SDFE. That is the reason for the complexity indicated above since it is ne-
- cessary to know all those mechanisms and subsystems in order to grant credit cor-
' rectly, keeping in m~nd the factors meritioned above, and to use it and apply it
. correctly as an eleraent of supervision of the fulfillmer~t of the enterprises' ap-
proved plans.
Journalist: Given that canplexity and the fa~t that many of our readers are not
iamiliar with this matter, it wauld be appropriate to define the essence, the func-
tion, of credit under socialism.
_ Arnaldo Alayon: Credit has a mobilizing nature; that is, it represents an impor-
tant control mechanism in the econanic and financial management of the enterprises.
Deficien~ies are reflected itranediately in unendorsed lo~ns. It ;ial.ps the enter-
. prises to expedite the rotation cycle of their means. The objective of the bank,
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tt~er~efor-e, ca?~.no'~ be to deliver a~eater namber of loans but to recover the credit
~:~^anted a.:~ quick:~ y as possibl.e, avoiding icranoriliza.tion of resources in our enter-
E,rises. Thi s helps our economy become more afficient as those resources rotate
~ast.er and c,ertain results are achieved usi.c~ fewer financial and material resources.
Felir~o r~~e_~~.da: G~ ~~en the spectrum of .readers of a nonspecialize~~ magazine like
BOK~2L~1, ~.de ~ari si~..; iify or explain this aspect without losing Lhe essence. The
- fl.~nda~~nental obj~tive of credit is to avoid urinecessary i.iunobilization of resources
in ti~e ~~or,c~~y beyorid those that an open economy like the Gt.ibar_ economy, wit�h a -
gr~Pat depe.nder~;e on forei~nn. Lrade and with supply sources thousands of kilometers
away, ~_Lre~~.dy nas to tolerate. Idle inventories are mentioned and many ~o not under-
s~and t�'c~:~ r~ac~~n for this adjective. FY~equently, tney are idle to the one who has
Lhem a:~d ~.oes r.ot nee~i them but not to the economy. GY~edit pushes those enterprises
~.hat t~av~~ t~-:~~se so-~called idle inventories to get rid of ~hem and make Lhem avail.-
ab1~~ i;~ ~ otk~~rs ~1~no do need them. Here we have a con~rete ~xample of how credit can -
n~ob~.liz: z,~~,oi~;~ces. Of course, thesE excesses are also tied to the need to have _
n~uch :i~r~ ;~e7.iai.~~L� inventory nor^~s so that there can be financial norms that re- _
~ si~ond to a,-c~ ~~~jf~.tively deter~?ined reality. -
T~i~~ essenc~ o~' ~redic cannot be understood without understanding Lhe content and
~~_inctio,z~ ~~~i `:~.z~ ir.ventory and consumption norms and without considerit~ the prob-
?,;m~ ~.~f ~;~r.~c:,~~ `_~~~J_ stirnulation. As the stimulation funds are developed, the~e will
~~~~~;.p ','r.,~~ ises understan.d the in-depth content of the mechanisms and levers to
c;