Cuba & Mexico: “Toma chocolate….(NO) paga lo que debes”
Our friend Alberto De La Cruz reported on Cuban foreign debt yesterday.
This is simply the latest episode in a movie that we know very well: "Castro no paga"!
Over at American Thinker, I opined on a couple of reasons for this Mexican generosity.
The official explanation is that Mexico wants to improve domestic relations with Cuba. The PRI is back in power and wants to "warm up" relations after the chill under PAN President Fox and Calderon.
Don't buy that. This is about Mexico's domestic politics. It's always been about domestic politics between Mexico and Cuba.
I recall when Cuba built a huge embassy in Mexico City. It was intended to rival the US Embassy and project Cuba as an international leader.
Here is my AT post:
"So you improve relations with a country by writing off their debts? I am anxious to hear how Mexicans will react to this "generosity toward Cuba."
I spoke to a couple of friends in Mexico on Sunday and they don't understand this move.
One businessman said: "I sell to Cuba and we are down to cash up front before we ship anything."
It makes no sense for Mexico to waive so much Cuban debt. My guess is that President Pena Nieto is "throwing a big bone" to the left. As we've reported before, President Pena Nieto has tackled a couple of the left's sacred cows, the teachers' unions and PEMEX, the oil monopoly.
He needs to distract the left and waiving Cuban debt is a good way to do it."
Let me repeat: This is about Mexico and another president pandering to the left. The left is about to explode in Mexico over PEMEX reforms and that's what this is about!
President Pena-Nieto is reminding the left that Mexico still loves Cuba and he is "eating" millions of dollars to prove it.
It's also a recognition that Cuba is a terrible investment. In fact, it's such a lousy investment that Mexico has to write off almost $500 million!