By Pascal Fletcher
HAVANA, July 23 (Reuters) - Cuba's President Fidel Castro has criticized the appearance of local "millionaires" in Cuban society, accusing them of amassing private wealth while state teachers, doctors and police have to survive on low salaries.
In a long address to Cuba's National Assembly, broadcast by state television on Wednesday night, Castro made clear he deeply disliked the socially divisive effects of the cautious, market-leaning economic reforms introduced by the island's communist government since 1993.
"We now have elements of capitalism (in our society)...we know that only too well," the 71-year-old Cuban leader said.
"The more contact we have with capitalism, and the more we perceive what happens, the more repulsion I feel," he added.
Castro took aim at what he said was an emerging number of home-grown "millionaires" in Cuban society, who were amassing wealth through renting out homes given to them by the state, or through running private home restaurants known as "paladares". These activities are now legal, although subject to tax.
Foreign diplomats said that the Cuban leader's clear continuing aversion to the concept of individual wealth suggested that he would not welcome further market-oriented reforms that accentuated income differences between Cubans.
Some of the new private entrepreneurs, Castro said, were earning as much as 1,000 U.S. dollars a month, equivalent to around 20,000 Cuban pesos, a small fortune by Cuban standards.
He contrasted this with the low salaries of state teachers, doctors and police, who earn between 150 and 400 Cuban pesos, ($7.50 and $20) depending on their rank and specialty.
Castro said some of Cuba's new rich, whom he referred to sarcastically as "criollitos" (little Creoles), were being tempted into speculation and corruption, such as, for example, attempting to bribe officials to obtain favors.
"I know them, these 'criollitos', when they get hold of a little money, watch out!" he said. He singled out those representing foreign and Cuban companies, adding that, with "invitations here, trips there ... they soon obtain a house".
"This excess money which a lot of people have is causing us a lot of damage," he said.
"Today, we are no longer living in a crystal vase," he added, referring to the economic crisis, triggered by the collapse of the Soviet bloc, which had forced the communist- ruled island to open up to foreign tourism and investment.
"Now we are surrounded by microbes, vices and temptations...money here, hard currency there," Castro went on.
Even the idea that Cuba's new rich might be able to buy their own cars appeared distasteful to the Cuban leader.
"If we start selling cars to all those who have dollars...(we will have) a whole class of rich people driving around Havana," he said. Ordinary Cubans are not permitted to buy new private cars in hard currency, except in exceptional cases authorized by the government.
Castro added that he included among the financially privileged those Cubans who received hard currency cash remittances sent by family members living abroad.
Foreign diplomats said the inflow of remittances, estimated at between $500 million to $1 billion a year, was a major source of hard currency income for the cash-strapped island.
The Cuban leader's suggested solution to the new income differences was "taxes for those who earn more, resources for those who earn less". He said the state should also make more products available for people to spend their money on.
He added the government would try, wherever possible, to raise the salaries of state workers, most of whom earn pesos.
21:41 07-23-98
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