C. African Republic neighbors to send help






BANGUI, Central African Republic (AP) — Central African Republic’s neighbors agreed on Friday to dispatch a contingent of soldiers to intervene in the troubled country, where a coalition of rebel groups is seeking to overthrow the president of nearly a decade.


Representatives from the 10-nation Economic Community of Central African States meeting in Gabon, though, did not specify how many troops they could contribute nor did they outline how quickly the military assistance would arrive.






President Francois Bozize had pleaded for international help Thursday as fears grew that the rebels would attack the capital of 600,000 next. Former colonial power France already has said that its forces in the country are there to protect French interests and not Bozize’s government.


“We are now thinking about the arrangements to make so that this mission can be deployed as quickly as possible, said Gabon’s Foreign Affairs Minister Emmanuel Issoze-Ngondet.


The announcement came as military officials in Central African Republic reported renewed fighting in the third largest city of Bambari, which fell under rebel control five days ago.


The military said it had taken country of the town, located about 385 kilometers (240 miles) from the capital, a claim that could not be immediately corroborated.


The ongoing instability prompted the United States to evacuate about 40 people, including the U.S. ambassador, on an U.S. Air Force plane bound for Kenya, said U.S. officials who insisted on anonymity because they weren’t authorized to discuss the operation.


The United States has special forces troops in the country who are assisting in the hunt for Joseph Kony, the fugitive rebel leader of another rebel group known as the Lord’s Resistance Army. The U.S. special forces remain in the country, the U.S. military’s Africa Command said from its headquarters in Stuttgart, Germany.


The evacuation of the U.S. diplomats came in the wake of criticism of how the U.S. handled diplomatic security before and during the attack on its consulate in Benghazi, Libya, on Sept. 11. The ambassador and three other Americans were killed in that attack.


French diplomats are staying despite a violent demonstration outside its embassy earlier this week. Dozens of protesters, angry about a lack of help against rebel forces, threw rocks at the French Embassy in Bangui and stole a French flag. French Foreign Minister Laurent Fabius spoke via phone with Bozize, asking him to take responsibility for the safety of French nationals and diplomatic missions in Central African Republic.


Bozize on Thursday urgently called on former colonial ruler France and other foreign powers to help his government fend off rebels who are quickly seizing territory and approaching the capital. But French President Francois Hollande said France wants to protect its interests in Central African Republic and not Bozize’s government.


This landlocked nation of some 4.4 million people has suffered decades of army revolts, coups and rebellions since gaining independence in 1960 and remains one of the poorest countries in the world. The current president himself came to power nearly a decade ago in the wake of a rebellion in this resource-rich yet deeply poor country.


Speaking to crowds in Bangui, a city of some 600,000, Bozize pleaded with foreign powers to do what they could. He pointed in particular to France. About 200 French soldiers are already in the country, providing technical support and helping to train the local army, according to the French defense ministry.


“France has the means to stop (the rebels) but unfortunately they have done nothing for us until now,” Bozize said.


Bozize’s government earlier reached out to longtime ally Chad, which pledged to send 2,000 troops to bolster Central African Republic’s own forces.


The rebels behind the most recent instability signed a 2007 peace accord allowing them to join the regular army, but insurgent leaders say the deal wasn’t fully implemented. The rebel forces have seized at least 10 towns across the sparsely populated north of the country, and residents in the capital now fear the insurgents could attack at any time, despite assurances by rebel leaders that they are willing to engage in dialogue instead of attacking Bangui.


The rebels have claimed that their actions are justified in light of the “thirst for justice, for peace, for security and for economic development of the people of Central African Republic.”


Despite Central African Republic’s wealth of gold, diamonds, timber and uranium, the government remains perpetually cash-strapped.


The rebels also are demanding that the government make payments to ex-combatants, suggesting that their motives may also be for personal financial gain.


Paris is encouraging peace talks between the government and the rebels, with the French Foreign Ministry noting in a statement that negotiations are due to “begin shortly in Libreville (Gabon).” But it was not immediately clear if any dates have been set for those talks.


The U.N.’s most powerful body condemned the recent violence and expressed concern about the developments.


“The members of the Security Council reiterate their demand that the armed groups immediately cease hostilities, withdraw from captured cities and cease any further advance towards the city of Bangui,” the statement said.


___


Goma reported from Libreville, Gabon. Associated Press writers Krista Larson in Dakar, Senegal; and Jason Straziuso in Nairobi, Kenya contributed to this report.


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Windows Phone Store doubled in size this year









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McCartney, ‘God particle’ scientist get honors






LONDON (AP) — Stella McCartney, who designed the uniforms worn by Britain’s record-smashing Olympic team, and Scottish physicist Peter Higgs, who gave his name to the so-called “God particle,” are among the hundreds being honored by Queen Elizabeth II this New Year.


The list is particularly heavy with Britain’s Olympic heroes, but it also includes “Star Wars” actor Ewan McGregor, eccentric English singer Kate Bush, Roald Dahl illustrator Quentin Blake, and Jamie Lowther-Pinkerton, the royal aide who helped organize the watched-around-the-world wedding of Prince William to Kate Middleton.






McCartney was honored with the title of Officer of the Order of the British Empire, or OBE, in part for her work creating the skintight, red-white-and-blue uniforms worn by British athletes as they grabbed 65 medals during the 2012 games hosted by London. McCartney is the designer daughter of ex-Beatle Paul McCartney and his first wife Linda, and she has moved to make the family name almost as synonymous with fashion as it is with music, setting up a successful business and a critically-acclaimed label.


Higgs’ achievements, which made him a Companion of Honor, touch on the nature and the origins of the universe. The 83-year-old researcher’s work in theoretical physics sought to explain what gives things weight. He said it was while walking through the Scottish mountains that he hit upon the concept of what would later become known as the Higgs boson, an elusive subatomic particle that gives objects mass and combines with gravity to give them weight.


For decades, the existence of such a particle remained just a theory, but earlier this year scientists working at the European Organization for Nuclear Research, or CERN, said they’d found compelling evidence that the Higgs boson was out there. Or in there. Or whatever.


All of Britain’s gold medalists from this year’s games were on the list, with cyclist Bradley Wiggins and sailor Ben Ainslie honored with knighthoods. Sebastian Coe, who masterminded the games as chairman of the London organizing committee, was made a Companion of Honor — a prestigious title also awarded to Higgs.


Honors lists typically include a sprinkling of star power, and this year was no different. Ewan McGregor, who came to public attention through his role as the heroin-addled anti-hero of British drug drama “Trainspotting,” was awarded an OBE. The 41-year-old actor is also known for his turn as a young Obi-Wan Kenobi in the “Star Wars” prequels.


“Babooshka” singer Kate Bush said she was delighted to be made a Commander of the Order of the British Empire, or CBE, for a musical career which has resulted in a string of quirky hits including “Wuthering Heights,” ”Cloudbusting,” and “Man With The Child In His Eyes.”


Other art world honorees included artist Tracey Emin and Quentin Blake, whose spiky, exuberant illustrations are best known through the work of his collaborator Roald Dahl.


Politicians, policemen, and spies got honors too. Scotland Yard chief Bernard Hogan-Howe was awarded a knighthood; former British foreign minister Margaret Beckett was made a Dame Commander of the Order of the British Empire. Former Prime Minister Tony Blair’s wife Cherie was made a CBE for her charity work. MI5 chief Jonathan Evans was made a Knight Commander of the Order of Bath.


Also honored was the man credited with helping pull off the wedding of the decade: Jamie Lowther-Pinkerton, principal private secretary to the Duke and Duchess of Cambridge (as Prince William and his wife are formally known) was made a Lieutenant of the Royal Victorian Order.


Britain’s honors are bestowed twice a year by the monarch, at New Year’s and on her official birthday in June. Although the queen does pick out some lesser honors herself, the vast majority of recipients are selected by government committees from nominations made by officials and members of the public.


In descending order, the honors are knighthoods, CBE, OBE, and MBE — Member of the Order of the British Empire. Knights are addressed as “sir” or “dame.” Recipients of the other honors, such as the Order of the Companions of Honor given to Higgs and Coe or the Royal Victorian Order personally picked out by the queen, receive no title but can put the letters after their names.


The New Year’s honors carried the usual batch of courtiers — even the royal household’s switchboard operator got a medal — as well as senior civil servants, soldiers, charity executives, successful entrepreneurs, established academics, volunteers, and community workers. Some of the more eclectic honors included the OBE handed to card game columnist Andrew Michael Robson “for services to the game of Bridge,” and OBE given to river conservationist Andrew Douglas-Home “for services to Fishing.”


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Humidity Levels Explain U.S. Flu Winter Peak









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Former City regulator knighted







A former head of the Financial Services Authority and a founding member of the Bank of England’s Monetary Policy Committee have been recognised in the New Year Honours.






Hector Sants, who was in charge of regulation at the start of the credit crisis, has been knighted.


It is in recognition for services to financial regulation.


Alan Budd, who was on the first Monetary Policy Committee in 1997, becomes a Knight of the Grand Cross.


Sir Hector said his award was a “testament to the hard work of everyone at the FSA during the crisis, their willingness to learn lessons and to bring about the changes that were necessary”.


Sir Hector began his City career as a stockbroker at Phillips and Drew, later taking senior positions at the investment banks UBS and Credit Suisse.


He took the job as head of the FSA two months before the collapse of Northern Rock in 2007, which was followed by huge government bailouts for two leading banks, Royal Bank of Scotland and Lloyds TSB.


MPs criticised the FSA for its handling of regulation during the credit crunch and accused it of being “asleep at the wheel”, but he has also been praised for his work at the regulator and for pressing banks to boost their reserves.


Sir Hector is joining Barclays bank in January to improve the bank’s reputation with governments and regulators internationally.


He will be directly responsible for making sure all its 140,000 staff obey the law in the more than 50 countries where it operates and that it is held in higher esteem by governments and regulators.


While at the FSA, Sir Hector personally warned the then chairman of Barclays, Marcus Agius, that Bob Diamond might not be a suitable choice to become the bank’s chief executive in 2010.


He also conveyed the FSA’s worries about the bank’s culture, including the attitudes of its most senior staff to risk-taking, tax laws and banking regulations.


Earlier this year, the FSA fined Barclays £59.5m for its part in the Libor rate-rigging scandal, after which Mr Diamond left the left the bank.


Entrepreneurship recognised


Sir Alan, a professor of economics, was also the first chairman of the government’s independent forecasting body, the Office for Budget Responsibility (OBR), but left after just three months in the job.


He was an adviser to Chancellor Norman Lamont during the Exchange Rate Mechanism crisis of the early 1990s and headed the inquiry into whether former Home Secretary David Blunkett misused his position.


He also headed the inquiry into the UK’s gambling laws which led to their liberalisation.


Sir Alan Budd’s career has also linked him with Barclays and Credit Suisse.


He was senior economic adviser to Barclays in 1989-1991, and is currently a senior adviser to Credit Suisse First Boston.


He was knighted in 1997.


Industry and the economy make up 12% of the New Year Honours list, with Priscilla Newell, Chair of the Royal Mail Pension Trustees, becoming a dame and Sherry Coutu, a long-time supporter of UK start-ups, a CBE for services to entrepreneurship.


Harriet Vine and Rosie Wolfenden, co-founders of cult jewellery brand Tatty Devine are made MBEs.


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C. African Republic president seeks foreign help






BANGUI, Central African Republic (AP) — The president of Central African Republic on Thursday urgently called on France and other foreign powers to help his government fend off rebels who are quickly seizing territory and approaching the capital, but French officials declined to offer any military assistance.


The developments suggest Central African Republic could be on the brink of another violent change in government, something not new in the history of this resource-rich, yet deeply impoverished country. The current president, Francois Bozize, himself came to power nearly a decade ago in the wake of a rebellion.






Speaking to crowds in Bangui, a city of some 600,000, Bozize pleaded with foreign powers to do what they could. He pointed in particular to France, Central African Republic’s former colonial ruler.


About 200 French soldiers are already in the country, providing technical support and helping to train the local army, according to the French defense ministry.


“France has the means to stop (the rebels) but unfortunately they have done nothing for us until now,” Bozize said.


French President Francois Hollande said Thursday that France wants to protect its interests in Central African Republic and not Bozize’s government. The comments came a day after dozens of protesters, angry about a lack of help against rebel forces, threw rocks at the French Embassy in Bangui and stole a French flag.


Paris is encouraging peace talks between the government and the rebels, with the French Foreign Ministry noting in a statement that negotiations are due to “begin shortly in Libreville (Gabon).” But it was not immediately clear what, if any, dates have been set for those talks.


French Foreign Minister Laurent Fabius, meanwhile, spoke via phone with Bozize, asking the president to take responsibility for the safety of French nationals and diplomatic missions in Central African Republic.


U.S. officials said Thursday the State Department would close its embassy in the country and ordered its diplomatic team to leave. The officials spoke on condition of anonymity because they were unauthorized to discuss the evacuation publicly.


The United Nations Security Council issued a press statement late Thursday reiterating its concern about the situation in the country and condemned the attacks.


“The members of the Security Council reiterate their demand that the armed groups immediately cease hostilities, withdraw from captured cities and cease any further advance towards the city of Bangui,” the statement reads.


Bozize’s government earlier reached out to longtime ally Chad, which pledged to send 2,000 troops to bolster Central African Republic’s own forces. But it was unclear if the Chadian troops had all arrived, and even then, it is far from certain if the combined government forces could withstand rebel attacks.


At least four different rebel groups are involved, though their overall numbers could not immediately be confirmed.


Central African Republic, a landlocked nation of some 4.4 million people, is roughly the size of France. It has suffered decades of army revolts, coups and rebellions since gaining independence in 1960 and remains one of the poorest countries in the world.


The rebels behind the most recent instability signed a 2007 peace accord allowing them to join the regular army, but insurgent leaders say the deal wasn’t fully implemented.


Already, the rebel forces have seized at least 10 towns across the sparsely populated north of the country, and residents in the capital now fear the insurgents could attack at any time, despite assurances by rebel leaders that they are willing to engage in dialogue instead of attacking Bangui.


The rebels have claimed that their actions are justified in light of the “thirst for justice, for peace, for security and for economic development of the people of Central African Republic.”


Despite Central African Republic’s wealth of gold, diamonds, timber and uranium, the government remains perpetually cash-strapped. Filip Hilgert, a researcher with Belgium-based International Peace Information Service, said rebel groups are unhappy because they feel the government doesn’t invest in their areas.


“The main thing they say is that the north of the country, and especially in their case the northeast, has always been neglected by the central government in all ways,” he said.


But the rebels also are demanding that the government make payments to ex-combatants, suggesting that their motives may also be for personal financial gain.


Bozize, a former military commander, came to power in a 2003 rebel war that ousted his predecessor, Ange-Felix Patasse. In his address Thursday, Bozize said he remained open to dialogue with the rebels, but he also accused them and their allies of financial greed.


Those allies, he implied, are outside Central African Republic.


“For me, there are individuals who are being manipulated by an outside hand, dreaming of exploiting the rich Central African Republic soil,” he said. “They want only to stop us from benefiting from our oil, our diamonds, our uranium and our gold.”


___


Larson reported from Dakar, Senegal. Associated Press writer Sarah DiLorenzo in Paris contributed to this report.


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FBI removes many redactions in Marilyn Monroe file






LOS ANGELES (AP) — The FBI has re-issued files it kept on Marilyn Monroe, removing dozens of redactions from entries related to surveillance of the actress for communist ties.


A large section of the files obtained by The Associated Press focuses on Monroe’s 1962 trip to Mexico and her emerging friendship with Frederick Vanderbilt Field, who was disinherited from his wealthy family for leftist views. Field was Monroe’s guide on a trip in which she furniture-shopped for her new home.






The AP appealed the redactions in the file as part of a series of stories on the 50th anniversary of Monroe’s death in 1962, but the bureau previously said it no longer had access to the files. The bureau issued a new version after a request for details on the records’ locations.


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Program helps veterans reintegrate through music






MONTCLAIR, N.J. (AP) — During stressful times as a combat medic in Afghanistan, Mason Sullivan found solace in Vivaldi. New Jersey native Nairobi Cruz was comforted by country music, a genre she had never heard before joining the Army. For Jose Mercedes, it was an eclectic iPod mix that helped him cope with losing an arm during a tour of duty in Iraq.


These three young veterans all say music played a crucial role in alleviating the stresses of active duty. Now, all three are enrolled in a program that hopes to use music to ease their reintegration into civilian life.






“It’s a therapy session without the ‘sit down, lay down, and write notes,’” Mercedes, 26, of Union City, said of the music program. “It’s different — it’s an alternative that’s way better.”


The pilot program, called Voices of Valor, has veterans work as a group to synthesize their experiences into musical lyrics. Guided by musicians and a psychology mentor, they write and record a song, and then hold a CD release party. The program is currently under way at Montclair State University, where students participate through the school’s veteran affairs program.


Developed by husband and wife team Rena Fruchter and Brian Dallow, it is open to veterans of any age and background. No musical experience is required.


Both accomplished musicians, Fruchter and Dallow created the program as part of Music for All Seasons, an organization they founded which runs musical programs for audiences at places ranging from nursing homes to prisons.


Based on their experiences working with children at shelters for victims of domestic violence, Fruchter and Dallow realized that young people too traumatized to talk about what they had been through were nevertheless willing to bang on an instrument or sing — often leading to communication breakthroughs. They felt the same might be true for veterans, or other populations traditionally averse to more overt forms of ‘talk therapy.’


“We’ve had situations in which veterans have been carrying their burdens deep inside for such a long time, and they come into this group and they begin to talk about things that they’ve never talked about before,” Fruchter said. “They really open up, and it translates into some music that is really amazing and incredible and powerful.”


During a recent session of the eight-week program in Montclair, music facilitators Jennifer Lampert, a former Miss USO, and Julio Fernandez, a musician and member of the band Spyro Gyra, lead a small group of young veterans in brainstorming about their experiences.


“Tired of being angry,” ”Easier not to move on,” ”The war at home,” were phrases Lampert extracted from a discussion among the participants and she wrote each phrase in marker on large notepads fastened to a classroom blackboard. As they spoke, Fernandez strummed an acoustic guitar while Lampert sang some of the phrases the students had come up with, adjusting the beat and tempo at their suggestion. Suddenly, a musical lyric emerged: “Sometimes, I wish the past is where I stayed.”


A few weeks later, the group gathered at a sound studio in Union City, where they donned headphones and clearly relished the opportunity to record their collectively written tune, “Freedom,” in a professional studio.


“To see music heal people in that way, it’s beautiful, and the real incredible part is you don’t have to do anything but give in to the music,” Lampert said. She recounted how, time and again, the facilitators of the program had watched some participants start the class with shoulders slumped, hesitant to make eye contact, and afraid to speak up. Through the process of writing music they changed, she said, into group-focused, smiling, active participants unafraid to stand up and belt out a tune.


7/87/8_____


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Stock futures drop before last-ditch effort at “cliff” deal






NEW YORK (Reuters) – Stock index futures fell on Friday as President Barack Obama and top lawmakers planned to make a last-ditch effort at budget talks to prevent the United States from going over the “fiscal cliff.”


Obama and lawmakers will meet at the White House Friday afternoon for talks before a New Year’s deadline to keep large tax hikes and spending cuts from taking effect and threatening the economy with recession.






Investors showed their skepticism about a deal coming in time as the benchmark S&P 500 index was on track for a fifth straight decline.


“Obviously all eyes will be on Washington and the headlines coming out of Washington will dictate today’s market movement,” said Peter Cardillo, chief market economist at Rockwell Global Capital in New York.


“You do have some economic data coming in, but the market is probably not going to pay much attention to that. The big thing is whether Washington will reach a deal by Monday.”


U.S. stocks fell for a fourth straight session on Thursday but managed to recover most of their earlier losses after the House of Representatives, in the barest sign of progress, said it would return to Washington on Sunday night to work on avoiding the cliff.


Highlighting market sensitivity to cliff headlines, on Thursday stocks fell more than 1 percent earlier after Senate Majority Leader Harry Reid warned a deal was unlikely before the deadline.


With many market participants away for the holiday-shortened week, volume is expected to remain light, which could exacerbate market swings.


S&P 500 futures fell 8.5 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures lost 67 points, and Nasdaq 100 futures dropped 12.5 points.


Economic data expected on Friday includes Chicago PMI for December at 9:45 a.m. while the National Association of Realtors issues Pending Home Sales for November at 10 a.m. Economists in a Reuters survey forecast a reading of 51 for the main PMI index and a 1 percent rise in pending home sales.


MagicJack Vocaltec Ltd forecast over $ 39 million in GAAP revenue and over 70 cents per share in operating income for the fourth quarter and appointed Gerald Vento president and CEO, effective January 1.


European shares drifted lower in thin trade on Friday, showing little faith among investors that new talks can avert at least some version of a New Year budget crunch in the United States. <.eu></.eu>


The yen fell to its lowest level in more than two years, lifting Japanese stocks to 21-month highs on expectations of drastic monetary easing, while shares in the rest of Asia rose as Washington races to avoid a fiscal crisis.


(Reporting by Chuck Mikolajczak; Editing by Kenneth Barry)


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Cuba has much to lose as ally Chavez fights cancer






HAVANA (AP) — Cubans who were tuned in to the nightly soap opera on a recent Saturday received a sudden burst of bad news, from the other side of the Caribbean.


State TV cut to the presidential palace in Caracas, Venezuela, where President Hugo Chavez revealed that his cancer had returned. Facing his fourth related surgery in 18 months, he grimly named Vice President Nicolas Maduro as his possible successor.






The news shocked not only Venezuelans but millions of Cubans who have come to depend on Chavez’s largesse for everything from subsidized oil to cheap loans. Venezuela supplies about half of Cuba‘s energy needs, meaning the island’s economy would be in for a huge shock and likely recession if a post-Chavez president forced the island to pay full price for oil.


Despite the drama, the news likely wasn’t a surprise to Cuba’s Communist government, and not only because Chavez has been receiving medical care on the island.


Havana learned important lessons about overdependence when the 1991 collapse of the Soviet Union threw the country into a deep crisis. Trying to avoid the consequences of a similar cut, the Cuban government has been diversifying its portfolio of economic partners in recent years, looking to Asia, Europe and other Latin American nations, and is only about half as dependent on Caracas as it was on the former Soviet Union.


Cuba is also working to stimulate its economy back home by allowing more private-sector activity, giving a leg up to independent and cooperative farming, and decentralizing its sugar industry. A stronger Cuban economy would in theory have more hard currency to pay for energy and other imports.


Also getting off the ground is an experiment with independent nonfarm collectives that should be more efficient than state-run companies. And next year, another pilot program is planned for decentralized state enterprises that will enjoy near-autonomy and be allowed to control most of their income.


“This could have good results,” said a Cuban economist who spoke on condition of anonymity because he wasn’t authorized to talk to the foreign media. Cuba “is also thinking of boosting foreign investment in areas of the national economy, including in restricted areas like the sugar industry.”


One of the country’s top goals has been to make the island’s struggling economy less dependent on a single benefactor.


Under the leadership of Chavez, who regularly calls former Cuban President Fidel Castro his ideological father and has followed parts of the Communist leader’s governance playbook, Venezuela has sent billions of dollars a year to Cuba through trade and petro-aid.


Bilateral trade stood at a little over $ 8 billion last year, much of it in Cuban imports of oil and derivatives. In return, Havana primarily provides Venezuela with technical support from Cuban teachers, scientists and other professionals, plus brigades of health care workers. Analysts say those services are overvalued by outside standards, apparently costing as much as $ 200,000 per year per doctor. Experts peg the total Venezuelan subsidy to Cuba at around $ 2 billion to $ 4 billion a year.


While business with Venezuela makes up 40 percent of all Cuban trade, it’s still a far cry from the days when the Communist Eastern Bloc accounted for an estimated 80 percent.


“A (loss of) $ 2 billion to $ 4 billion would definitely pinch. But it is not the same relative weight as the sudden complete withdrawal of the Soviet subsidies in the early ’90s,” said Richard E. Feinberg, a professor of international political economy at the University of California, San Diego. “Cuba’s not going to go back to the days of bicycles. Could it throw the Cuban economy into recession? Yes.”


That kind of resilience would result largely from Cuba’s successes in courting foreign investors for joint ventures.


Last month, authorities announced a deal with a subsidiary of Brazil’s Odebrecht to manage a sugar refinery, a rare step in an industry that has long been largely off limits to foreign involvement.


China has invested in land-based oil projects, and along with Canada is a key player in Cuba’s important nickel industry. Spain has ventures in tourist hotels and tobacco, while French company Pernod Ricard helps export Cuban liquors. And since 2009, Brazil has been a partner in a massive project to modernize and expand the port at Mariel, west of the capital.


Trade with China alone was $ 1.9 billion and rising in 2010, and Raul Castro paid a visit to Chinese and Vietnamese leaders earlier this year to help cement Asian relationships.


But while Havana says it wants to boost foreign investment, obstacles remain. The approval process for investment projects can be long and cumbersome, and pilferage, disincentives to productivity and government intervention can cut into efficiencies. Foreign companies also pay a sky-high payroll tax.


Feinberg, who wrote a report on foreign investment in Cuba published this month by the U.S. think tank the Brookings Institution, said that while a number of foreign companies are successfully doing business with the island, others have run into problems, sending a chilly message to would-be investors. In particular he noted the recent cases of a government takeover of a food company run by a Chilean businessman accused of corruption, and contentious renegotiations of a contract with Dutch-British personal and home care products giant Unilever amid shifting government demands.


“The Cuban government has to decide that it wants foreign investment unambiguously. I think now there seem to be divisions among the leadership,” Feinberg said. “Some are afraid that foreign investment compromises sovereignty, creates centers of power independent of the leadership or is exploitative.”


He estimated Cuba has left on the table about $ 20 billion in missed investment over the past decade by not following practices typical of other developing nations. Instead, Cuba received $ 3.5 billion in foreign investment in that period.


Experts say a worst-case scenario for Chavez wouldn’t automatically translate into the oil spigot shutting off overnight.


If Chavez’s hand-picked successor, Vice President Maduro, were to take office, he would likely seek to continue the special relationship.


Opposition leader Henrique Capriles has said he wants to end the oil-for-services barter arrangements, but could find that easier said than done should he win. The two countries are intertwined in dozens of joint accords, and poor Venezuelans who benefit from free care by Cuban doctors would be loath to see that disappear.


“You can’t flip the switch on a relationship like this,” said Melissa Lockhart Fortner, a Cuba analyst at the Pacific Council on International Policy, a Los Angeles-based institute that focuses on global affairs. “It would be terrible politics for him. … Switching that off would really endanger his support far too much for that to be really a feasible option.”


For Cuba, Chavez’s latest health scare capped off a year of disappointments in the island’s attempt to wean itself from Venezuelan energy.


Three deep-water exploratory oil wells drilled off the west coast failed to yield a strike, and last month the only oil rig in the world capable of drilling there without violating U.S. sanctions sailed away with no return in sight.


Yet time and again Havana has shown that it’s nothing if not resilient, weathering everything from U.S.-backed invasion and assassination plots in the 1960s to the austere “Special Period” in the early 1990s, when the Soviet collapse sent Cuba’s GDP plummeting 33 percent over four years. When hurricanes damaged the country’s agriculture sector and the global financial crisis squeezed tourism four years ago, Cuba tightened its belt, slashed imports and survived.


“Some people are saying the demise of Chavez is also going to be the demise of Communism in Cuba because the regime’s going to collapse and the people are going to rise up,” Feinberg said. “That’s probably yet another delusion of the anti-Castro exile community.”


Still, many Cubans are nervously tuning into the near-daily updates about Chavez’s health, carried prominently in state media.


“I don’t know what would happen here,” said 52-year-old Havana resident Magaly Ruiz. “We might end up eating grass.”


___


Associated Press writers Andrea Rodriguez and Anne-Marie Garcia in Havana contributed to this report.


___


Peter Orsi on Twitter: www.twitter.com/Peter_Orsi


Latin America News Headlines – Yahoo! News





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