FROM THE ARCHIVES: May 3, 2003
Venezuelan Oil Exports to Cuba Back to Normal -Official
DOW JONES NEWSWIRES

HAVANA (AP)--Venezuela's oil exports to Cuba have returned
to normal after disruptions during a two-month strike in
Venezuela, the Venezuelan ambassador here said.

"Exports of oil and derived products have been normal for
two weeks," Julio Montes told reporters on Friday.

A general strike that collapsed in February paralyzed
Venezuela's oil industry and brought exports to a near halt.
Venezuela's government says output is now back to normal at
more than 3 million barrels a day.

Venezuela has a pact to sell Cuba 53,000 barrels a day under
preferential financial terms - providing one-third of the
island's oil imports. Montes said Cuba was making payments
on its US$144 million debt in the deal. He added the debt
was being refinanced but didn't elaborate.

During his four years in office, Venezuelan President Hugo
Chavez has forged strong ties with Fidel Castro's
government. Under another cooperation deal, more than 3,600
Venezuelans have traveled to Cuba for free medical treatment
since 2000, Montes said. He said Cuba has spent at least
US$120 million treating the Venezuelans.

Resentment over the Cuba oil deal was part of what prompted
most management workers at Venezuela's state oil monopoly to
join the general strike to force Chavez's resignation. Oil
executives complained the pact amounted to giving
Venezuela's oil away free. Chavez fired more than 15,000
workers from the oil company for striking.

Montes dismissed the former executives' allegations, noting
oil is sold to Cuba at international rates. Under the deal
signed in 2000, Cuba has a 15-year repayment period,
two-year grace period and a 2% interest rate. Venezuela has
similar agreements with other Latin American and Caribbean
countries.

Montes also said Cuba's exports to Venezuela - mostly
medicine and technology - have increased to US$82 million in
2003 from US$25 million in 2002. Venezuela is negotiating to
import prefabricated houses from Cuba , Montes added.

Updated May 3, 2003 5:41 p.m.