Chapter 11

The Cuban
Connection
Other than teaching scuba diving to tourists in Puerto Rico, the best job I
ever had was as the Area Marketing Director for Latin America for Carrier,
the air conditioning giant subsidiary of United Technologies. At the time
United Technologies was one of the top ten largest multi-national
companies in the world, publicly traded on NYSE under the symbol UT.
I had gotten this job through a local Miami head hunter, ironically the first
and only time I ever used the services of a personnel agency. It was an
executive dream job for a young guy like myself.

It came with a very

healthy salary

I envisioned myself

and incredible benefits package.

working there until retirement. My girlfriend was even more thrilled with my
prestigious new job and the security of being a UT employee really
appealed to her.

Their small but luxurious office was located in Coral Gables at 2100
Ponce De Leon Avenue was staffed by seven executive managers and
their secretarial staff.

Each manager was responsible for a different

group of countries. They told me I was one of nineteen job applicants and
was chosen for my articulate language skills which really meant my
Spanish was good enough to do daily business with some fifteen major
distributors in Latin America.

I was assigned to the Caribbean territory

group of distributors since I had already visited those countries in the Coast
Guard and was familiar with the many odd quirks and laid-back pace of
island culture. Only Mexico works slower than the Caribbean. Robert York
was the honcho in charge of all the managers and he reported directly to
headquarters in Syracuse, N.Y.
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I reported to the VP of Marketing for Latin America - a guy named Bill Stowe
who was extremely savvy and knowledgeable about international trade, an
area in which I was totally lacking real hands on experience. I was told
that I'd be traveling extensively throughout Latin America and that was
exciting to me.

I must have been about 28 at the time and was the

youngest guy on the executive staff by at least five or six years.

But my first overseas assignment would turn out to be my last. I was

sent

to

Jamaica

to

meet

with

our

local

distributors

Conditioning located at 85 Hagley Park Road in Kingston.

CAC

Air

It was only a

three day trip and they put me up at the Pegasus Hotel in New
Kingston.
explore

My mission was to evaluate their inventory situation and

the

possibility

of establishing

a room

air conditioning

manufacturing facility on the island.

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Almost any major business

on the island of Jamaica is
owned

either

by

Butch

Stewart (most notably known

as the owner of the Sandals
Hotel chain and Air Jamaica)
and the

Matalon

whose

ICD

owned

CAC

family

corporation
and

the

bauxite mining operation in Jamaica amongst other enterprises. Both

entities were multi-millionaires
clout.

at the time and wielded great political

Vernon Matalon and his son Paul were the ones I met with

along with their CAC General Manager Keith Hobbs and Director of
Operations Mac McCullough,
quite well and attentively.

both of whom greeted and treated me

They ran CAC efficiently and profitably. In

short, I was very impressed with their operation.

At this time in history Butch Stewart also owned and operated a local
factory that pumped out Friedrich room air conditioners (RAC) whose
prices

Carrier

manufactured

simply
locally.

could

not

We also

compete

with

had to compete

unless
with

we

too

Daikin, a

Japanese company which produced a very energy efficient RAC unit

that was

popular

in the islands

due to the

prohibitive

costs of

electricity. Although Carrier sold over 80% of the big commercial and
industrial

units in the

Carribbean,

our market share

market was shameful, at least in my opinion.

of the RAC

If I recall correctly, we

had less than a 40% market share.

In my free time I played tourist and took in the local sights, enjoying
myself thoroughly.

Now being in the air conditioning business, I was

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automatically making mental notes of what brand of room air conditioners

were being used by local restaurants, hotels, shops, etc. and I was
dismayed to see only one Carrier RAC for every twenty or so of our
competitors.

This

only confirmed my assertion that we needed to

manufacture locally in order to really compete in that market segment.

Carrier by far, makes the highest quality air conditioners and also the
most expensive.

Like everything else in life, people get what they pay for.

Air conditioning was invented by Willis

was

no longer

enough

Carrier,

but his name

alone

to remain ahead of the pack in this very

competitive industry.

On my last day at CAC's offices I was perusing their annual and

quarterly sales reports and I was puzzled by what I found.
buying large numbers of RAC units, over

CAC was

one million dollars worth

from us per quarter, but less than two dozen were in the warehouse. I
certainly

didn't

see them

in the streets of Jamaica

McCullough where some 300 units went in one month.

and asked

Nervously, he

referred me to Keith, who casually informed me with his trademark

grin, that he sold them in a package deal to a developer
condos in Montego Bay.
further.

building

It made sense to me and I didn't pursue it

I just hoped he'd sell even more and make me look good in

my new job.

We then traded ideas and comments on cutting costs

and inventory control before breaking for lunch.

There was a cricket

game in progress across the street from CAC that caught my interest
so I went to watch my first cricket match. The game was somewhat
like baseball and intrigued

me as a local vendor sold me a quick

lunch of jerk pork and rice, which I devoured

in the stands. The

surroundings were a far cry from any major league ball park, but were
quite cozy with a fresh ocean breeze keeping all the spectators cool
and fresh.
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When I walked back to CAC after lunch, I realized I was the first to
return so I loitered about the warehouse.

It was there that I noticed a

few dozen Carrier RAC boxes stacked up and strapped on pallets on

a truck bed wrapped

in clear plastic.

I wondered

if that was how

Carrier shipped from the Syracuse factory so I walked over to check

the shipping labels. What I found was disturbing.
incoming

shipment

Havana, Cuba!

but an outgoing

This was not an

one, and the destination

was

The shipment was being sent to the Transportation

Authority of the Cuban government no less. There were about seven

pallets and I checked the shipping labels of each
were destined

for

Havana.

not surprised

Almost

Six pallets however had shipping labels for

a Lt. Smith at Guantanamo Bay. Needless

but

them.

considering

to say

I was

shocked

the volume of RACs they had been

buying from us which was far

more

than

market

the

could

Jamaican

ever

support.

There were four units on each

pallet.

It was no big secret that Jamaican businesses did a thriving and quite
lucrative trade with Cuba and never really honored the U.S. trade
embargo imposed following Castro's coupe.

But U.S. manufactured

products

to

were

circumstances,

not

allowed

to

be

sold

Cuba

under

any

even indirect routes, according to U.S. federal law

and Carrier's distributorship agreements.

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But being new on the job, I opted not to say anything to Keith, Mac,
or the Matalons until I could ascertain if the bosses in Coral Gables
and Syracuse were aware of the illicit business.

After lunch we

chatted a bit and then I was delivered to the airport for my return
trip to Miami.

We parted as friends and they were totally unaware

of my unexpected discovery. I could think of nothing else on my

way home and pondered how I should breach the subject to Stowe
and York.

This i s King Street in Kingston, about two kilometers from where I visited Carriers CAC
office at 85 Hagley Park Road and found a half million dollars of room air conditioners to
be shipped to Cuba in violation of U.S. federal law.

I remained silent for a few days thinking and hoping that there might
be some explanation that I overlooked.

I sure as hell didn't want to

make accusations that would backfire in my face and make a fool of

myself.

So I pulled out the sales records for CAC for the last two

years and discovered

they purchased well over $5 million of RAC

units, and then noticed that about 80% of them were ordered for 220
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volts when all of Jamaica was 110 volts!

I called a local travel agent

and asked if they knew what voltage was used in Cuban residential,
commercial, and office outlets.

The answer was not what I wanted to

hear - 220 volts.

I guess in retrospect, I should have just kept quiet, but doing so would in
my mind, make complicit

to the illegal sales, and set me up to be a

potential defendant in a prosecution.

I argued with myself for yet a

few more days trying to figure out the best way to approach

my

bosses about this. Did they know? I wondered. How could they not? To
be sure I had to ask. I went first to Bill Stowe about it and casually asked
"Have you ever wondered how CAC is selling all those RAC units on an
island stricken with poverty". He glanced at me knowingly and simply
answered "No". As I searched for a follow-up remark, Bill made it clear that
he was not going to entertain any, and excused himself saying that he
had a conference call to make. It was now clear to me that Stowe wasn't
even going to discuss the subject, so obviously he was aware of the
situation.

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Cubas famous Varadero Beach receives about 3 million tourists a year

It was still possible however for Bob York to be in the dark about it
because he rarely had time to sit in on meetings let alone investigate sales
to such a small market as Jamaica. His attention was saved for bigger
priorities like the impending collapse of the Mexican economy and the
like.

As the new kid on the block, I really did not command the

respect

of York's

attention,

and to corner

him on such a subject

would be very difficult for me. None the less, I had to try.

I waited

until day's end when I saw him packing up his briefcase alone in his
corner

office.

"Excuse

me Mr. York"

Gorcyca, what's on your mind?

I almost

whispered.

"Yes

How was your trip to Jamaica?" he

asked as he chose to indulge me as he continued to sort through

papers on his desk and placing more in his briefcase.

"Well that's

what I wanted to talk to you about Mr. York" There was silence so I
continued

and decided to take a round about route to a subject I

suspected would be a touchy one. "I was going through some old
CAC purchase orders and noticed they bought an awful lot of 220 volt
RAC units."

After more silence he looked up at me for the first time

and replied "And?" as if he really didn't know.

"Well, what do you

suppose they do with all those 220 units when the whole island is
wired for 11O?" This time there was no delay and no silence "Why the
hell don't you ask them?" "Well I'm afraid the answer they give me
might not want to our liking Mr. York."

"If it's the Cuba thing you're

getting at, I don't want to hear it and this conversation

place - do you understand?"

never took

was his emphatic and final response.

Not wanting to lose my great new job, I made light of the matter and
simply replied "No problem Mr. York" as I slid away back to office with
all doubts now erased in my mind.

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They not only knew about the Cuban sales, they now knew that I
knew as well.

I wisely

chose

not to raise the subject again with

anyone from United Technologies.

with

me and

continued

to

night. I could not let myself

But the

nag

matter

did

not sit well

my conscience, as I lay awake at

be part of this, no matter

how petty it

might seem to most people. I would not risk my job, but somehow,
I'd put a stop to it and I decided to do so anonymously.
The following day, instead of going to lunch, I went to a pay phone
and called the local Miami office of the FBI and after I told the
receptionist what I wanted to report, she transferred
woman agent.

me first to a

I didn't identify myself other than as an employee of

United Technologies.

I didn't

even disclose

my trip but merely

advised her that what was going on and suggested that a stern letter
to UT headquarters
sales.

She

transferred

would probably put a quick stop to the Cuban

instead

suggested

me to another

I speak

to

someone

else

male agent, who expressed

interest and said he'd refer the matter to investigators

and

very little

at the U.S.

Federal Trade Commission.

I was surprised that the FBI would not

get

After

involved

themselves.

all

the

Trade

Embargo

was

established by executive order - a federal law, and federal laws are

enforced by the FBI. I pointed this out to the agent on the phone who
openly laughed at me but said he'd pass the information along to
"people who cared about this sort of thing".

I'm not really sure what happened between the FBI and FTC but
about five days later, some government agent came to the office and
asked to speak with Robert York privately.

I was not privy to the

conversation but I could see that it appeared to be a friendly one

when I went to make copies near York's office.

I asked

Maria his

secretary what was going on and she just shrugged her shoulders.
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After the man left, York immediately summoned Bill Stowe into his
office and closed the door.

They were in there together a good 30

minutes before the meeting ended.

I pretended to be preoccupied

and uninterested when in reality I would have given my left arm to

hear what was said in that room.

Havanas Malecon Waterfront i s a popular spot for locals to gather and socialize

The following day, Bill Stowe called me into the conference room and
closed the door. "I have some bad news for you my friend" he began.
"We're moving this office up to Syracuse to consolidate costs and
your position here in Miami is being eliminated."

I was saddened by

the news and wondered if the Syracuse move story was genuine, or if
in fact they realized I made some calls about the Cuban connection.
Either way,

it didn't

matter,

I was given fifteen

days notice and

severance pay, and my dream job was gone as quick as it came. My

girlfriend was angry with the news, but I never got past sad. Strangley
enough though, in my last two weeks on the job, I saw a large order
for RAC units to CAC canceled without explanation. Stranger still, the
entire office closed

down

in about two months

and relocated to

Syracuse. Several of the staff opted to remain in Miami and forfeited

their career with UT.

To this day, I still don't know what to believe

about the motives and reasons behind my termination and hold no

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grudges against a fine company

whose Jamaican

distributor

may

have been a bit too zealous.

To be clear however, my anger over this episode was only one hyposcsry.
There was a story carried in the Miami Herald newspaper of a Cuban who
was arrested and jailed for trying to ship an air conditioner to his 70 year old
parents in Havana. Yet when a huge Fortune 500 corporation does the
same thing on a large scale for years, it is quite convenient for our law
enforcers to just look the other way with a wink and a nod.

Truthfully, the blockade against Cuba is an

injustice and only and outdated act of
revenge that should have been stopped
when Clinton moved into the white house.
The United Nations agreed when 188
countries voted that the sanctions should
be lifted in a record vote of 188 to 2
Only America, and Israel disagreed. The
majority of the world was ignored. Worse
still, all but one poll taken in the U.S. indicate that over 90% of Americans
want to abolish the embargo and normalize trade with Americas neighbor. I
was told by friends at a Clinton dinner in 1997, that it would not come to
pass until Fidel Castro passed away. Our leaders are supposed to serve
the will of the majority of citizen and not vice versa! Just look at the chart
below and try to justify Americas stance on Cuba. It is morally indefensible
and I would love to debate any Florida Senator on this issue who cant live
without his old Cuban voters.

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Polls of Americans over the years concerning sanctions against Cuba

Dont be shocked nor surprised when China starts investing the billions of
dollars to rebuild Cuba, as America could have been doing for the last 20
years. Its ironic and shameful that citizens from Communist China can take
a vacation any where in the world that they choose, but American citizens
who allegedly live in a democracy, cannot take a two week vacation in Cuba
without going through a third country to do it! Wealthy Americans visit Cuba
illegally by the hundreds without any repercussions, but if John Q. Citizen
from Patterson, New Jersey tries to do the same, he will be arrested. Why
the selective justice President Obama? Stop the bullshit already and be fair
everyone in the world and not just those who support your regime.

The people of Cuba did nothing to have their lives controlled and
manipulated for 50 years by a foreign government. Further Americas
intransigence at the United Nations is simply alienating what little allies and
friend we have left in the world. I defy any American leader to explain how

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the embargo on Cuba has helped America in any way over the last two
decades. It is failed policy and one that 90% of Americans do not want.

The Cuba situation clear ly demonstrates the inhumane and mean-spiritless

driven by Americas shadow government that simply want to send a
message to the world that if you do not do what America wants, you will
suffer. Frankly President Obama, other countries need to please their
citizens, not the United States of America. If you had any sense of ethics,
you also would listen to the voice of Americans citizens and not the paid
lobbyists who gifts great vacation packages to half of our Congress. Stifling
the progress of a sovereign people who pose no threat to America is
inhumane, unethical, and beneath the dignity of the people you are
supposed to be serving. Should you ever have the audacity to challenge the
human rights issues of another country again, the world remain you of how
you use Cuba for secret prisons and subject the citizens of that nation to
commercial extortion of a nation you still want us to believe is free and just.
Your actions as President betray all the words you ever spoke as a
candidate. We the people are not fooled sir. You hear not the voice of
insolence but the voice of the American conscience which has had enough
of your smoke and mirror deceptions. almost as bad as your predecessor.

Cpyright 1995-2014 By Bruce A. Gorcyca All Rights Reserved

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