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S E C R E T SECTION 01 OF 03 HAVANA 010104 
 
SIPDIS 
 
SIPDIS 
 
INR/IAA FOR BOB CARHART 
 
E.O. 12958: DNG: CO 05/03/2016 
TAGS: PGOV EFIN ECON PINR CU
SUBJECT: "GREEN EYESHADE" SOBERON:  CUBA'S SENIOR ECON GUY 
 
Classified By: MICHAEL E. PARMLY FOR REASONS 1.4 b/d 
 
¶1. (C) Summary:  Unhindered by his modest background in 
accounting, Central Bank President Francisco Soberon has 
become one of Castro's key advisors.  The architect of GOC 
efforts to recentralize the economy, Soberon has recently 
eclipsed most other ministers in influence and public 
profile (with the exception of Foreign Minister Felipe 
Perez Roque).  Soberon can be rigid and doctrinaire, 
motivated by loyalty to Castro and firm marching orders to 
stamp out corruption.  He leads an ascetic lifestyle 
supported in large part by his wife's earnings as a 
perfume representative.  Described as savvy, charming and 
smart, foreign bankers nonetheless comment that Soberon 
lacks expertise in his field.  Despite this shortcoming, 
Soberon knows how market economies work and may favor 
economic liberalization, potentially positioning him to 
play a role in a post-Castro transition economy.  End 
summary. 
 
Architect of Dedollarization 
---------------------------- 
 
¶2. (C) Francisco Soberon Valdes led an unexciting career 
in the shipping business before taking over as head of 
Cuba's National Bank in 1995 and the newly inaugurated 
Central Bank in 1997 (Cuba's version of the Federal 
Reserve).  He took on the modernization of a banking 
sector that previously relied on pencils, paper and 
calculators.  He introduced ATMs, debit cards, and 
interest payments on deposits.  Soberon was a protege of 
Raul Castro's, and his support for moderate economic 
reforms in the '90s placed him in the "reformist camp" of 
GOC officials.  He remained, however, outside Fidel's 
inner circle. 
 
¶3. (C) Soberon's career took off in 2004 amidst Castro's 
campaign to recentralize the Cuban economy, rolling back 
the reforms of the '90s and reasserting state control. 
Soberon was the likely architect behind several 
resolutions of the campaign, most notably, the November 
2004 "dedollarization," that replaced the USD with the 
Convertible Peso (CUC), and an April 2005 "revaluation" 
that arbitrarily increased the value of the CUC against 
all hard currencies.  Soberon's one-two punch of 
"dedollarization and revaluation" vacuumed up millions of 
dollars in hard currency for the regime. 
 
¶4. (C) Soberon not only liberated Castro from the 
"demeaning" circulation of "Yankee dollars," but safely 
stashed them in Central Bank coffers.  The influx of hard 
currency reportedly bolstered the GOC's credit rating, and 
may have already been leveraged toward specific projects. 
Castro recently funded the purchase of a thousand Chinese 
buses, 400 Chinese cars and motorcycles (for use by the 
electric company), a dozen Chinese locomotives, seven 
Russian jets, the rehabilitation of a moribund oil 
refinery, and a spate of construction projects in 
preparation for the upcoming Non-Aligned Movement summit. 
The GOC is currently negotiating the purchase of 8000 
additional Chinese vehicles.  Aside from lucrative 
handouts from Venezuela's Hugo Chavez, Castro has 
Francisco Soberon to thank for his spending spree. 
 
Qualifications 
-------------- 
 
¶5. (S) Soberon's modest background in accounting would not 
qualify him to act as Central Bank President in a modern 
country.  On the other hand, he is one of very few GOC 
officials who understand modern economies and 
international markets.  Japanese Ambassador Tatsuaki Iwata 
observed, "Soberon knows more about Cuba's foreign debt 
than anyone on or off the island."  Iwata also said that 
Soberon needed no reference materials to cite the location 
of every "dollar, euro and yuan" in the Cuban banking 
system.  (Note:  Japan is one of Cuba's largest creditors 
and engages in regular debt negotiations with the Central 
Bank.  End note.) 
 
¶6. (S) Despite these accolades, Soberon did not require 
high-level technical skills to set himself apart in Cuba's 
isolated command economy.  Another Japanese diplomat told 
us that a businessman who has known Soberon fifteen years 
described him as "an ordinary technician" whom he was 
 
HAVANA 00010104  002 OF 003 
 
 
"surprised to see rise to Central Bank President." 
According to former Canadian Commercial Counselor Sylvain 
Fabi, a well-respected foreign banker claimed Soberon 
"didn't know what he was talking about" and would never 
have made it to a high position outside Cuba.  British 
Ambassador John Dew described Soberon's tenure in London 
(where the banker spent six years with a Cuban shipping 
company) as "nondescript." 
 
¶7. (S) Professional expertise aside, most observers agree 
Soberon is smart.  In his dealings with the Canadian 
Embassy, Fabi described him as a "tricky guy," adept at 
blindsiding the Canadian ambassador with unexpected topics 
of discussion.  Like other regime officials, Soberon has 
developed the ability to "monologue" his interlocutors 
into submission.  Reuters journalist Marc Frank, whom the 
Central Bank president has granted personal interviews, 
said Soberon hadn't changed much in ten years but now "he 
lies a lot more." 
 
Pecking Order 
------------- 
 
¶8. (C) Soberon has effectively marginalized Minister of 
Economy and Planning Jose Luis Rodriguez, whom Frank 
described as "alive but insignificant."  Minister of 
Foreign Trade Marta Lomas has also taken a back seat. 
Most significantly, Soberon increasingly overshadows his 
former supervisor:  Vice President of the Council of State 
Carlos Lage.  Last year, a rumor circulated that Lage knew 
nothing about Soberon's new foreign exchange controls 
until he read about it in the paper. 
 
¶9. (C) Soberon regularly appears at Castro's side during 
public addresses and television appearances.  He sat close 
to Castro during a 2004 visit by Chinese President Hu 
Jintao.  In December 2005, Soberon joined Foreign Minister 
Felipe Perez Roque (a favored Castro lapdog) in outlining 
GOC goals before the National Assembly.  A rumor recently 
circulated that Soberon would be promoted into the 
Politburo or Central Committee.  Rumors have circulated 
since 2003 that Soberon is slotted for Rodriguez' job as 
Minister of Economy. 
 
Making Him Tick 
--------------- 
 
¶10. (S) Soberon is likely motivated by a desire to improve 
Cuba's credit rating (downgraded by Moody's in 2002 to 
"speculative grade, very poor").  Soberon has also been on 
a decade-long campaign to stamp out corruption.  A 
Resolution introduced in December 2004 ordered that all 
hard currency earnings be deposited directly into the 
Central Bank, and was clearly aimed at undercutting 
corrupt state managers.  These motivations coincide with 
observations that Soberon is ideological, but far more 
technical than political.  Marc Frank does not consider 
the banker a "hard-core communist," though his nationalism 
and leftist sentiments are unmistakable (exemplified by a 
dismissive attitude toward foreign investment).  Sylvain 
Fabi described Soberon as "ideologically rigid and 
doctrinaire."  All the same, Soberon's associations with 
reformers during the '90s indicate he may favor economic 
(if not political) liberalization. 
 
A Humble Lifestyle 
------------------ 
 
¶11. (S) Observers describe Soberon as reserved, genteel 
and smart.  He is well-dressed, cultured and charming with 
both men and women.  He is an art-lover.  According to one 
observer, "Soberon looks like he could step out of a Rolls 
Royce in downtown London."  Maximo Lopez, a Cuban 
businessman working for a German company, has known 
Soberon since childhood.  Lopez foots the bill when they 
dine out, explaining that Soberon and his deputy, Jorge 
Barrera, are such "militants" that they actually live off 
their state salaries (27 CUC per month).  According to 
Lopez, Soberon owns one good suit as befits his office, 
but depends on his wife's earnings as a perfume 
representative for Yves Saint Laurent.  (Note:  Lopez told 
P/E officer that despite his marital status, Soberon is 
gay.  Lopez also mentioned that Castro refers to Soberon 
in anger as "that little 'maricon'" -- a pejorative term 
for homosexuals.  Of course, Castro's abuse may be nothing 
 
HAVANA 00010104  003 OF 003 
 
 
more than a macho man's interpretation of Soberon's 
refined mannerisms.  End Note.) 
 
Comment 
------- 
 
¶12. (S) Soberon is not considered personally ambitious and 
has no following among the general public.  His loyalty 
and non-threatening demeanor make him a useful tool of 
Castro's.  His progress towards meeting payment 
commitments and boosting Cuba's hard currency reserves 
have improved Cuba's reputation with some foreign 
creditors.  Corruption drives the Cuban economy and will 
continue to do so (despite Castro's clean-up campaign) but 
Soberon is as close as you get to the "face of fiscal 
responsibility."  His departure from the scene could open 
the way for a GOC raid on its own reserves, with an 
ensuing devaluation or even a run on the bank.  Soberon is 
therefore as relevant a figure in the Cuba of today as the 
Cuba of tomorrow.  He may one day find himself in the 
position of guiding a slow and deliberate opening of the 
Cuban economy.  End Comment. 
 
¶13. (U) Bio Note:  Soberon was a student leader and 
founder of the Union of Communist Youth (UJC).  He served 
in the army during the Cuban missile crisis, and 
volunteered for several sugar cane harvests during the 
60s.  He holds an ambiguous degree in social sciences 
(probably granted by the GOC) and has a background in 
accounting.  He began his professional career by working 
at the Ministry of Foreign Trade (MINCEX) as an office 
boy.  Still in his early twenties, Soberon worked as a 
commercial representative at Cuba's Foreign Trade Office 
in Montreal.  He joined the Communist Party in 1970.  By 
his early thirties he was deputy director of a state 
shipping company, then lived six years in London as a 
managing director of the Anglo-Caribbean Shipping Company 
"ACEMEX" (he has written three books on shipping matters). 
Soberon headed ACEMEX for twelve years before he was 
tapped to head Cuba's National Bank in 1995 and the 
Central Bank in 1997.  Soberon eventually became a 
delegate to the National Assembly, and was elected to the 
Council of State in 2003.  He is married.  End Bio Note. 
PARMLY