The timing was awful. Last April, Marcos Portal, Cuba´s basic industries minister, trailed round Europe, seeking funds to develop the island´s vast nickel reserves. Before setting off, as a member of Cuba´s Council of State, Mr. Portal had voted to execute three highjackers who had seized a ferry in a bid to reach the United States. The executions, and the jailing of dozens of democracy activists, plunged relations between Cuba´s Communist government and the European Union into acrimony. Mr. Portal was received politely, but returned with nothing substantial.

Nickel is a potential bonanza for Cuba. Exports of nickel and cobalt totalled $600m last year, more than sugar. The island is the world´s sixth-biggest nickel producer and holds 30% of the world´s reserves of the metal, used in stainless steel and other alloys. The United States is a big nickel-importer, and Cuba´s natural market; but the trade embargo means that American firms can do no more than sniff around. So Europe takes three-quarters of Cuba´s nickel. Canada´s Sherritt International and various European banks have invested $400m in one nickel-concentrate plant, run as a joint venture, and in two state-owned plants. Output at the plants has tripled, but investors have balked at building costly new facilities.

That means that Cuba will find it hard to take advantage of current high prices for nickel. The government wants to boost output, from 72,000 tonnes last year to 300,000 tonnes by 2007 and 150,000 tonnes within 15 years, by enlarging the plants. But that would cost $1.2 billion. European diplomats say little of the money has been secured. Several potential investors have come, looked, and gone again. Australia´s Western Mining reneged on a plan to build a $1 billion nickel plant and refinery. An unfinished `plant for ferro-nickel at Las Camariocas has been moth-balled since the collapse of the Soviet Union. Cuba´s former sponsor, BHP-Billiton, an Anglo-Australian group, has completed a study of a 300m-tonne deposit at San Felipe in central Cuba, but is in no hurry to invest the $1 billion needed to develop it.

So Cuban officials have looked elsewhere. In January, Cubaniquel signed a supply agreement with China´s state-owned mining firm, together with letters of intent for investment of $34m in nickel projects. But nothing may result: even the Chinese are wary of Cuba nowadays.