MAY 1998

1. Tad Szulc sees reduced isolation of Cuba

2. Report on semi-annual meeting of AmCham Cuba board

3. UNCHR rejects U.S. condemnation of Cuba human rights

4. U.S. medical trade show in Cuba

5. Canadian Prime Minister visits Cuba

6. New Jamaican and French investments

7. EU-U.S. talks continue, missed deadline on complaints to WTO

8. Trips to Cuba

9. Panelists expect gradually expanding Church-led freedoms

10. Proponents of U.S. sales of medicine and foods challenge figures

1. TAD SZULC FORESEES REDUCED ISOLATION OF CUBA. Some 80 members and guests heard Tad Szulc, Castro biographer and award-winning reporter, share his views on results of “the second most important date in the history of communist Cuba since January 2, 1959". At the April 16 AmCham Cuba lunch, Szulc examined the importance of the Pope’s arrival in Cuba. January 26, 1998, he said, signaled a change in perspective for Cubans - they can now look to the future instead of the past 40 years. For the rest of the world, he said the visit and media reports on it justify revived recognition of Cuba - now shown to be what it really is and “no longer dangerous in the Cold War context”. One result, he reported, is a rash of resumed ties with Cuba by Latin American institutions as a direct consequence of the Pope’s visit. Szulc said this “historical shift” should be seen as an advantage to all, and used to build bridges of engagement.

Szulc said that the historic meeting resulted from extensive work by both Pope John Paul II and Castro, and that “the miracle of the Pope’s visit” was Castro’s only option for changing the global view of Cuba and drawing attention to his nation. He said the visit was a dignified option that proved to be successful.

Szulc said the U.S. government’s embargo policy regarding Cuba “has not worked” and “is making...transition harder for them,” but he recognized that U.S. cooperation helped make the meeting successful and meaningful. He urged Americans, as well as Cubans, to look to the future, so the U.S. can play a constructive role. As a first step, he said, the U.S. can exchange academics, musicians, and writers to create dialogue, not subversion.

AMCHAM CUBA/MIAMI WILL FOCUS ON CUBA CLAIMS JUNE 24. A prominent Miami attorney, George R, Harper, will examine Claims against the Cuban Government: Practical and Legal Considerations, in a lunch address in the Alhambra Room, Biltmore Hotel, Coral Gables. Havana-born Harper earned his law degree cum laude from the University of Miami. He chaired the Florida Bar’s Post Castro Cuba seminar and is active in ASCE (the Association for the Study of the Cuban Economy), the World Trade Center Cuba Committee and the Greater Miami Chamber of Commerce Cuba Committee. He chaired the October 1997 Cuba Program of the Inter-American Bar Association, and authored Cuba and Peruvian Agrarian Reform: At the Crossroads (1970) and Assessing the Risk: Helms-Burton and the New Cuban Foreign Investments Law (1995). To reserve, contact AmCham Cuba/Miami, 305-358-8992.

2. AMCHAM CUBA’S APRIL 16 DIRECTORS’ MEETING. ELECTIONS: The board renewed the two-year terms of all corporate board members. Of these, the Executive Committee is composed of Alexander O. Batard/Ian Davis, Fluor Daniels; Joseph Perez, Goya Foods; James Powers, Lone Star Industries, and four ex officio officers, Edward L. Bartholomew, President; Frederick E. Tetzeli, Executive Vice President; Amb. Nicolas R. Arroyo, Vice President; and Phoebe Lansdale, Executive Director and Treasurer, plus Matias Travieso-Diaz, Secretary. We added a new Vice President, Carlos Porro, our Miami representative.

Other corporate representatives on the board continue to be Francis Urbany, BellSouth; Joseph W. Hagin II/Amb. Robert F. Corrigan, Chiquita Brands; Michael Wilson, Florida Power & Light, Kevin Kearney, Marriott International; and Kenneth M. Crosby, Merrill Lynch. A few vacancies were held for new corporate members. Also re-elected were Edward Marasciulo, Vice President.

ADVISORY COUNCIL. The Council was represented by its newest member, Ambassador Tim Towell of the Foreign Policy Group.

APPRECIATION FOR SPONSORS. The board adopted a resolution to acknowledge four firms whose timely and generous support made possible the success of the luncheon occasion at the National Press Club. The corporate sponsors were Bernard A. Levine, Inc., New York state food brokers, Goya Foods, Kellogg Caribbean Services of Puerto Rico, and Lone Star Industries.

3. UNCHR DISAGREES WITH U.S. ON CUBA HUMAN RIGHTS PERFORMANCE. For the first time in seven years, the United Nations Commission on Human Rights in Geneva turned down a U.S. resolution to criticize Cuba’s human rights record and called for an investigation of abuses. A State Department spokesman acknowledges that, despite active diplomatic efforts, it was surprised by last minute vote changes by expected supporters. Media observers point out that the vote does not mean Cuba has changed its policy of repression or that Commission members are less concerned than in the past. The media generally felt the measure failed on April 21 because non-supporters viewed opposition and abstentions as a way to send a strong message defying U.S. pressures to isolate Cuba. Canada, despite outspoken opposition to the U.S. embargo, voted with the U.S. to criticize Cuba’s record on human rights and political prisoners, as did 14 others including Britain, France, and Argentina, the lone Latin American supporter. Costa Rica and other Latin American nations abstained. Cuba, China, and Russia were among the 19 votes defeating the resolution.Castro is in Geneva May 13-20 for the WHO annual assembly.

The media reported May 11 that Cuba recently reestablished diplomatic relations with Guatemala, Haiti, and the Dominican Republic, ended a diplomatic spat with Spain, and witnessed defeat in the UN of U.S. human rights criticism.

Castro looks forward to riding a wave of international support.

4. U.S. TRADE SHOW IN CUBA PLANNED. The Treasury Department has issued a license to a Connecticut firm, PWN Exhibition International, to mount a medical trade exhibition in Cuba. To be held in Havana at the end of the year, it will be the first since a 1959 travel agents’ show. The organizer, Peter Nathan, noted that U.S. firms need licenses from the Treasury Department to participate.

While U.S. officials deny that approval of the show greatly changed U.S. policy, covered by exemptions allowed for sending food and medical equipment from the U.S. to Cuba, John Kavulich, president of the U.S.-Cuba Trade & Economic Council, said optimistically that trade show go-ahead is the “most significant change in U.S. commercial policy toward Cuba in almost 40 years” (--USA Today April 7).

5. PRIME MINISTER CHRETIEN VISITS CUBA. A two-day visit to Cuba by Canada’s Prime Minister Jean Chretien at the end of April was the first by a Western leader in more than a decade. It was viewed by the media as “the highest point in relations between Canada and Cuba in 22 years”.

Canada is increasingly vocal in criticizing U.S. policy towards Cuba. Defying its powerful neighbor, Canada is openly and aggressively expanding diplomatic and trade relations with Cuba. Chretien began his visit by dedicating, jointly with Fidel, a new $40 million Havana airport terminal, half financed by Canada. He said that Canada’s “constructive engagement” seeks to reintroduce Cuba into hemispheric cooperation, by, for example, recently proposing Cuba’s re-entry into the Organization of American States (OAS), and, with Brazil, calling on Latin American leaders to include Cuba in hemispheric talks and initiatives.

At the same time, Canada promotes human rights and political freedom, calling for changes in Cuban policy but, the media notes, not at the sacrifice of economic growth. Canada uses its economic influence on the island to press for release of Cuban political prisoners and steps toward democracy, even though the New York Times in an editorial May 2 said Castro gave Chretien’s request for release of four prominent dissidents held for a year without trial “the brush-off, as he did John Paul II” earlier this year. “Imprisoning people for peaceful expression of political views is a travesty”, concluded the Times, and in cases of illness is “a death sentence.”

Three Canadian “sweeteners” for Cuban cooperation were announced before Chretien’s visit: (1) permission to reside in Canada to twelve former political prisoners and relatives who had been freed pursuant to the pope’s requests (- Washington Post, 8 April) [three more were sent to Canadian exile May 1]; (2) settlement for Can$12 million of a claim by Confederation Life Insurance, Canadian firm, for reimbursement of expropriated property, which Chretien cited as a move that will “stimulate...Canadian investment in Cuba and...nurture [our]...economic relationship” (- Cuba-Info, 30 April); and (3) arrangements for a Canadian credit card Transcard to be available to Cubans to ease the use of hard currency remittances from abroad (-- Journal of Commerce, 27 April).

Cuban-Canadian trade is estimated to have passed $490 million last year (-- Reuters, 27 April) in peas, poultry, sulphur, wheat, nickel, sugar, shrimp, and cigars (-- The Washington Times, 25 April). Canada is Cuba’s largest single foreign investor and tourist provider. Its commitments for mining, communications, infrastructure, energy, and oil exceeded $427 million at the end of 1997 (- Reuters, 27 April).

6. JAMAICA AND FRANCE EXPAND INVESTMENTS. New data on Jamaica’s response to Cuba’s growing tourism indicates that Sandals Resorts, which operates several hotels in Caribbean countries, will invest $980 million to build and operate hotels with the state-owned Cubanacan. A first hotel, costing $21.7 million, will create 350 rooms in the Varadero resort. Two other hotels in Cayo Coco and Veradero, focusing on European tourists, should be completed in two years, according to Sandals’ Gordon Stewart. The Cubanacan president said the Jamaican venture supports government plans for 14,000 new resort rooms in five years to meet unprecedented tourism demand increases (- Journal of Commerce, April 9).

On April 30, France’s confederation of international business, CNPF, announced a major increase in investments in Cuban tourism, energy, and industry over the past year, and strong prospects for French firms.

7. EU-U.S. TALKS CONTINUING, MISSED DEADLINE ON WTO COMPLAINTS. The European Union allowed its complaint in the World Trade Organization against the Helms-Burton Act to run out, instead of dropping or renewing it (-- Journal of Commerce, 23 April). This occurred even as Nigel Gardner, spokesman for European Trade Commissioner Sir Leon Brittan, indicated that “the talks are continuing at the moment” and “we would clearly like to reach a deal” (-- Reuters, 27 April). Brittan and Stuart Eizenstat, U.S. UnderSecretary of State, were reported by the Financial Times April 28 to have agreed to intensify negotiations to achieve at least an outline settlement before President Clinton meets EU leaders May 18.

Both sides are optimistic about early agreement in Brussels concerning sanctions against foreign firms using confiscated property in Cuba and violations of the Iran-Libya Sanctions Act (-- Reuters, 27 April). However, there is no agreement on exactly what assets the arrangement should cover. The U.S. is pressing for EU agreement to take tougher action against future asset confiscation, while the EU urges the U.S.to give a “strong political commitment to forswear future extraterritorial legislation imposing U.S. policies on other countries”. EU officials are quoted as pointing out that if a European company is punished under either American legislative act, the EU complaint would be revived immediately (-- CubaINFO, 30 April).

8. TRIPS TO CUBA. Alamar Associates will host its second “US-Cuba Business Summit” September 10-13 in Cancun and Havana. Co-sponsored with USA*Engage and the Commonwealth Development Corporation of the United Kingdom, it offers a day in Cuba with Cuban Ministers’ presentations, plus one night in a Havana hotel. Alamar says the summit will address the reality of the Cuban economy, foreign investment laws and procedures, developing joint ventures in Cuba, the potential for U.S. companies, and implications of current U.S. laws. The $3250 advance fee includes conference briefing materials, two nights and meals in Cancun, charter airplane costs to and from Havana, and a program for spouses. Information can be obtained from Alamar at 202-778-1718.

Pastors for Peace has scheduled its 8th Caravan to Cuba for July 10. Call 301-776-0208.

The Center for Cuban Studies has announced its 10-12 day Cuba trips for the rest of the year, focusing on architecture and historical preservation July 21 and January 16, 1999; art July 22 and January 8; film and jazz in December; public health July 24 and November 7, Cuba’s Jewish community May 20, July 24, September 18, and December 12; and various education topics June 24 (early childhood education), July 22 and December 23 (African roots), July 22 and January 8 (political and social issues for Latin Americanists), June 3 and January 9 (social services), and Cuba’s legal system (July 25 and November 7). Call 212-242-0559.

9. PANEL SEES CHURCH AS GRADUALLY GAINING FREEDOMS. Several speakers at a panel convened by the Institute for U.S.-Cuba Relations April 30 agreed that, following Pope John Paul II’s visit, the Church may be having some success as it works to “gradually bring freedoms” to Cuba’s people.

Regarding recent relaxation in some U.S. controls affecting Cuba following the pope’s visit, Michael Ranneberger of the State Department said these did not change U.S. policy to enhance freedoms and hasten humanitarian reforms, and that the reforms are not intended to improve government-to-government relations.

Roger Noriega, Senate Foreign Relations Committee staff, said he witnessed popular non-support for Castro at the Pope’s January 25 mass and quoted John Paul II, once back in Rome, as saying he had hoped for a Poland-type solution to Cuba’s dictatorship which, Noriega said, “hangs on by a thread.” He added that Castro’s last comment as the pope left was, “we have no intention of changing our system; socialism is the system of the future!”

The Washington Times’ Tom Carter called justifications offered by U.S. proponents of various viewpoints “spurious”. He said those urging engagement with Castro ignore continuing human rights violations, and those crying for further tightening of the embargo overlook the lack of success of the unilateral U.S. effort so far. He agreed that the pope had helped the church gain space in which to do its work, but sees limits in its potential. For example, Castro will never “give away” children’s minds to parochial schools. He said Fidel won in the short run, but the church will benefit over the long run if Cubans assume responsibility for their future.

For the U.S. Catholic Conference, Tom Quigley said the pope’s pastoral views of course had political implications, and that his message reveals the moral setbacks which have tarnished “Che’s ?new man’” image, like the failure of Cuba’s education and health care systems to reach many poor people. As a result, Caritas and other NGOs play growing roles in delivery, still, however, meeting only a fraction of the needs. Quigley said the pope’s visit had enabled the people to celebrate a new kind of hope, looking forward instead of focusing on the past and present problems.

10. US CLAIMS OF LICENSES APPROVED FOR MEDICAL ITEMS CHALLENGED. At a hearing of the Subcommittee on Trade of House Ways and Means May 7, three Representatives, Diaz-Balard (FL), Menendez (NJ), and Ros-Lehtinen (FL) opposed and about a dozen persons including two Representatives, Torres (CA), Mogli (MA), supported HR 1951, the Dodd-Torres bill to lift restrictions of sales of medicine and food to Cuba.

Advocates of easier U.S. medical shipments to Cuba charged that State Department claims of having approved 36 out of 39 license requests for medicine sales 1992-97 overstated their effectiveness, as approvals had included five for travel to Cuba by representatives of pharmaceutical firms. In addition, according to both the Congressional Research Service and the U.S. Chamber of Commerce, 11 licenses were for international organizations for donations, and eight were based on contracts entered into before the Cuban Democracy Act of 1992 ended such sales. Critics said, further, that approvals were largely awarded to foreign subsidiaries rather than to U.S. firms directly. Dr. Anthony Kirkpatrick, Univ.of South Florida, charged, further, that the State Department distorted World Health Orgn. data and failed to report widespread neurological diseases due to food shortages after Soviet aid ended and the 1992 U.S. Cuban Democracy Act passed.

The U.S. Chamber of Commerce, represented by Richard O’Leary, criticized U.S. policy for condemning 11 million Cubans to inadequate medical resources and substandard nutrition, conferring “quasi-martyr status” on Castro, and failing to achieve intended results of enhancing democratic values or removing the dictator. As a terrible cost of the embargo, he cited its “mutation” into a secondary boycott of important U.S. trading partners (Europe and Canada) which has caused them to enact blocking statutes and to back into “implicit alliance with Castro’s regime”. Finally, he told the Committee that the U.S. Chamber recommends immediate lifting of restrictions on sales of medicine and food, facilitating economic relations with Cuba, and building “institutions for Cuba...to engage in open relations with the world’s market economies.”

Speaking for USA*ENGAGE, former Representative Michael Barnes urged support for the Dodd-Torres bill as consistent with America’s “vital interest in promoting [Cuba’s] peaceful transition to freedom, democracy, and the rule of law” rather than continuing with the embargo which “blocks off all avenues of American influence.” He called for reevaluation of U.S.-Cuba policy and said the proposd legislation is an example of “how we can reach out directly to the Cuban people”.

Other proponents supported the bill either on grounds either that the U.S. should be moving towards a still more humanitarian U.S. stance or regretted the loss of Cuban business to other nations. These witnesses included Pasadena’s mayor, the Wheat Associates, U.S.-European Business Council, CSIS (Center for Strategic International Studies), several attorneys, Cuba-watch groups and U.S. non-governmental organizations, and the U.S. Catholic Conference.

On May 15, Senator Helms, chairman of Senate Foreign Relations, proposed a $100 million aid package for Cuba, similar to the proposal he announced after two of his staff members visited Cuba in January. The new Helms initiative, endorsed by over 20 senators (including Republicans Lott-MS, D’Amato-NY, Hatch-UT, and Democrats Lieberman-CT and Torricelli-NJ), would channel food and medical assistance to the Cuban people through the Catholic Church and independent relief organizations. Co-sponsors say it would respond to humanitarian needs caused by “Castro’s oppressive policies”.

The New York Times said Helms considers the package an effective tool with which to weaken Castro: On the one hand, if Castro allows the aid to come, “it will remove his ability to use deprivation as a tool of oppression.” If, on the other hand, he shuns the help (Castro indicated several months ago that he would, and the media reported this weekend that the Cuban Catholic Church had opposed it in the last few hours), Helms said that “eleven million Cubans will know exactly who is responsible for their daily suffering.”

White House response to Helms’ announcement was cautious. A spokesman for the NSC (National Security Council) said that the ideas are “good starting points”, that the administration is not endorsing it now, and that Secretary Madeline Albright has been asked to work with congressional leaders on the issue.

Relief organizations plan to reply to Helms’ new “Solidaridad Act”. Their draft response objects to tying aid to Cuba to U.S. sanctions because their own policies require that aid be offered on the basis of needs, “not political criteria”.

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We hope many of you can hear attorney George Harper on June 24 in Coral Gables. He is uniquely suited to weigh the legal and practical considerations affecting claims against Cuban expropriation, and will answer questions. Call the AmCham Cuba/Florida office to make reservations for the lunch.

Sincerely,

Phoebe Lansdale

Executive Director