Cuban President Raul Castro
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Raul Castro to ease economic controls in Cuba

2 August 2010 Last updated at 06:35 BST

Cuban President Raul Castro has pledged to ease state control of the economy, but has ruled out wide-ranging market reforms.

However he said the role of the state in Cuba would be reduced in some areas, with more workers allowed to be self-employed or to set up small businesses.

Urgent measures would aim to cut the "overloaded" state payroll, he added.

The BBC's Michael Voss reports from Havana.