Good Neighbors Mean Good Business

It would probably take something as unlikely as a Cuban attack on the Panama Canal to prevent what now seems almost inevitable: restoration of diplomatic relations between Washington and Havana. In recent weeks the Administration has lifted travel restrictions for Americans who wish to visit Cuba and begun bilateral talks with Havana on a new fishing agreement--necessary since both countries claim 200-mile offshore limits, but are only 90 miles apart. One plan currently under consideration by Washington is to set up an American-staffed "interest" section attached to the Swiss Embassy in Havana, which now represents the U.S., as a first step toward normalization of relations.

The first group to visit the island under the new travel rules was a team of basketball players from South Dakota, accompanied by the state's Democratic Senators, George McGovern and James Abourezk. The South Dakotans were blasted off the court by the Olympic-class Cuban roundballers, but McGovern came home full of zeal for ending the 16-year-old trade embargo. Last week another U.S. group with a keen interest in that project went to Havana: 50 business leaders from Minnesota.

Most of the businessmen represented firms that did business in Cuba before the revolution: Honeywell, Pillsbury, General Mills, Bemis. They want to be in on the ground floor when the embargo is lifted--which virtually all consider certain to happen. But their Cuban hosts, cabled TIME Correspondent Chris Ogden, who traveled with the group, seemed doubtful at first. Over and over they asked their guests whether they really thought the embargo would end. Groaned one Minnesotan later: "How many times do you have to tell your wife you love her?"

"They obviously want badly to trade with the U.S.," said John Ray, vice president of the H.B. Fuller Co., an adhesive and chemicals manufacturer. "They could buy our products from our plants overseas, but they are not interested. They want it from the U.S. directly." The reason is partly economic: freight rates are lower and delivery dates more precise from the U.S. But the Cubans also want a legitimate trading relationship and acceptance as an equal partner.

Groaning Buffets. The Cuban welcome could hardly have been warmer. There were frozen daiquiris at the airport and buffets groaning with fresh lobster, shrimp, glazed red snapper and other delicacies that ordinary Cubans seldom see. Premier Fidel Castro himself showed up to chat, joke and sign autographs for the businessmen.

Dressed as usual in starched fatigues, combat boots and pistol belt, Castro expressed his admiration for American businessmen ("When they see an opportunity, they don't waste time"), but warned his visitors not to set their hopes too high. Cuba was interested in advanced technology, fertilizer and farm equipment, he said. "But I would be lying to you if I tried to make you think that tomorrow many commercial opportunities will immediately emerge." He argued that the embargo contradicts the Carter Administration's human rights policy because its purpose is to "damage a people." He added: "The U.S. defends free trade, so why not with us?"

Next day Castro spent nearly four hours talking with some of the businessmen and reporters in his office. "No problem can be solved by war or violence," Castro said. What was needed was "cooperation to solve problems that affect all countries." The executives got the clear message that Castro is very eager to normalize relations--and Cuba's No. 1 salesman sent home 50 impressed lobbyists for the cause. Said Control Data's Robert Chinn: "I wasn't applauding his ideology, I was cheering his performance. It was spectacular."

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