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Baracoa (bäräkō´ä), city (1996 est. pop. 50,000), Guantanamo prov., SE Cuba, a port near the eastern extremity of the island. It is a processing and export center for a region producing bananas, coconuts, and cacao. Founded c.1512 by the Spanish explorer Diego de Velázquez, Baracoa is the oldest settlement in Cuba.