China and Cuba have reached an agreement in principle for Beijing to set up an electronic eavesdropping facility in the Caribbean island nation, according to a Wall Street Journal report citing unnamed U.S. officials familiar with highly classified documents. China, which has agreed to pay several billion dollars to Cuba in order to build the spy base, would be able to scoop up electronic communications throughout the southeastern U.S., where many military bases are located, and monitor U.S. ship traffic, the report said.
