Empresas y finanzas

Raul Castro dashes expectations for new reforms

By Esteban Israel

SANTIAGO DE CUBA (Reuters) - Cuban President Raul Castrodashed expectations he would announce new economic reforms onSaturday in a speech that instead warned Cubans not to get usedto hearing good news.

The speech marking the 55th anniversary of the start of theCuban revolution broke little new ground as Castro stressedausterity for Cuba and appeared to dampen rising expectations.

Cubans had said they hoped Castro would say more about howfar and how fast he wants to take Cuba down the road of reform.

In last year's July 26 speech, Castro pleased Cubans byacknowledging that wages were too low and promising economicchanges.

"Really, I had other expectations," said retiree AntonioRodriguez. "I thought they were going to give new things, butwhat he did was say the same things they've been saying."

Since taking over in February from ailing older brotherFidel Castro, Raul Castro, 77, has pushed through reforms thatraised hopes for change in one of the world's last communiststates.

Instead, he told 10,000 people gathered at the Moncada armybarracks in the eastern city of Santiago de Cuba, "Therevolution has done and will continue doing what it can to keepadvancing and reduce the inevitable consequences of the currentinternational crisis."

But, he said, people "have to get accustomed to notreceiving only good news."

In a July 11 speech to the National Assembly, Castro warnedthat wage increases may be slowed by the stumbling worldeconomy, said Cuba needs to raise its retirement age by fiveyears and called for a better tax system.

Cuban expert Phil Peters at the Lexington Institute inVirginia said he had expected more in Saturday's speech, whichis traditionally considered the year's most important addressfor Cuban leaders.

"What strikes me is that with the big economic problemsRaul faces, all he's done so far is agriculture reform andcalls for austerity."

Castro began his presidency with a flurry of small, butsymbolic changes that included allowing Cubans to buy cellphones and computers and go to tourist facilities previouslyreserved for foreigners.

Trying to combat rising import costs, he has undertakenbroad reforms in agriculture to increase food output byallowing private farmers and cooperatives -- more productivethan state-run operations -- to cultivate more land.

Castro spoke at an old army barracks where he was part of arebel band led by Fidel Castro that attacked on July 26, 1953,to ignite an insurrection against U.S.-backed dictatorFulgencio Batista.

Many of the rebels died and the Castros were captured andjailed, but in January 1959 Fidel Castro took power in Cubaafter Batista fled the country.

The older Castro, 81, has not appeared in public since hisJuly 26, 2006 speech, after which he underwent intestinalsurgery and handed power to his brother.

Castro also said Cuba would not let down its guardmilitarily against its arch-foe, the United States, no matterwho wins the U.S. presidential election in November.

"The defence will not be overlooked, independent of theresults of the next U.S. presidential elections. Preparationfor the defence of the country goes well," he said.

(Additional reporting by Nelson Acosta and Marc Frank;editing by Todd Eastham)

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