June 1998

CONTENTS OF THIS ISSUE

1. Pope calls Cuba’s bishops to discuss Cuba after his visit

2. Albright attends OAS meeting to keep Cuba off of agenda

3. Bahamas return Cuban refugees

4. Congressional proposals discussed on the Hill with NGOs

5. Foreign investment and Tourism continue to rise

6. UNESCO calls Cuba cultural bridge between Latin America and Caribbean

7. Upcoming Events of interest

1. POPE CALLS CUBA’S BISHOPS TO REVIEW RELATIONS WITH GOVERNMENT

Because of the lack of progress in Cuba, the Pope has called for a review in Rome of church- state relations that could lead the church to increase pressure for meaningful change in the area of human rights and freedom of religion. Cuba’s thirteen Roman Catholic Bishops are to meet with the Pope and the Heads of all Vatican departments June 8-13 to discuss Cuba after the Pope’s visit.

The church cited several reasons for the review, including a backlog of missionary visa approvals, blockage of access to the mass media, government warehouses’ refusal to sell powdered milk to parishes operating soup kitchens, thus forcing them to shop in the more expensive dollar market, Cuba’s exiling at least one missionary (which the government denies), and government insis-tence that Caritas, the church’s humanitarian relief agency, coordinate with officials on selecting who gets aid and how it will be distributed. (- Reuters)

2. U.S. SECRETARY OF STATE ATTENDS OAS MEETING TO KEEP CUBA OFF OF AGENDA. Readmission of Cuba, excluded from the Organization of American States since 1962, was a main issue at the General Assembly meeting in Caracas, Venezuela June 1-3. Most OAS members oppose the U.S. confrontation with Cuba and its 36-year old embargo, favoring instead dialogue with Castro’s government that could lead to its eventual return to the OAS. The presence of U.S. Secretary of State Madeleine Albright minimized serious talk of Cuba’s readmittance. Albright is the first Secretary of States to attend the OAS General Assembly since George Schultz in 1989. While it was unlikely that Cuba would be readmitted because of its general lack of democracy, the U.S. still found it necessary to send its top foreign policy maker to stop serious talk on the possibility.

The report of the OAS Inter-American Human Rights Commission presented to the General Assembly reiterated that Cuba lacks democratic elections, harasses human rights advocates, and has no free press. The report also criticized Washington’s policy of isolating Cuba, saying it was “not the ideal way to create a peaceful and gradual change to a pluralist and civil society.”

3. CUBAN REFUGEES SENT BACK BY THE BAHAMAS. The Bahamas has been a haven for Cuban refugees, but no more. On May 31, the Bahamas deported 61 refugees to Cuba and 71 more May 26, despite an asylum offer from Nicaragua. Luther Smith, Bahamas Permanent Secretary of Foreign Affairs, said his country does not want to “open...the floodgates for more (Cubans).” The Cuban American National Foundation chastised the Bahamas, accusing it of using the refugees “as pawns” to discourage others from seeking asylum. While the fate of the refugees is unknown, Cuban-American exiles asserted they will be severely punished.

Cuba tightened security around Nicaragua’s embassy in Havana, after Nicaragua had offered visas to the refugees, saying would-be emigrants should apply through legal channels rather than illegally seek foreign embassy asylum (- Washington Post, AP, Reuters, May 27).

4. CONGRESSIONAL PROPOSALS ON CUBA DISCUSSED WITH U.S. NGOS. At an Advocacy Committee Meeting hosted June 3 by Inter-Action, an organization of U.S. non- governmental organizations (NGOs), Congressional staffers discussed Cuba bills now before Congress, specifically those introduced by Sen. Jesse Helms (R-NC), Sen. Christopher Dodd (D- CT), and Rep. Esteban Torres (D-CA). Their spokespersons (Roger Noriega for Helms, Janice O’Connell for Dodd, and Eric Reuther for Torres) gave brief overviews of the proposals.

Helms’ bill would authorize $100 million in U.S. government donations of food and medicine over four years via CRS (Catholic Relief Service) and “truly independent” relief organizations.The Dodd and Torres bills promote sale of medical supplies and food supplies instead of government aid. Castro has rejected Helms’ offer as “humiliating and absolutely unacceptable”, citing government honor and “diabolical” plans invented after the Pope’s visit.

Discussion brought out differences of views:

On the one hand, Sen. Helms’ representative said the debate on Cuba’s need for food and medicines, promoted in support of the Dodd and Torres bills, is “irrelevant, since needy Cubans do not have incomes with which to purchase them” and “Fidel does not want to spend...foreign exchange on such purchases”, even though his per capital health expenditures are far below those of Costa Rica, Guatemala, or even Honduras. Noriega said that $25 million in U.S. funds to strengthen Cuban NGOs and Radio and TV Marti would not be excessive, and would equal U.S. funds for feeding poor Haitians, and that legislation to facilitate food and medical sales to Cuba would be “a propaganda victory for Castro”.

On the other hand, speakers for WOLA (Washington Office on Latin America) and OXFAM/America said the Helms bill is “not primarily a humanitarian response to the health and nutrition problems of the Cuban people”, but would maintain restrictions on sale of medecine and food, continue restrictions on donations, and impose conditions unacceptable to beneficiaries. They noted that the Cuban Catholic Church had rejected the Helms offer on grounds that it would require distribution of government aid which the church does not do. The NGOs said the Helms bill calls for political steps with which they cannot live - support for opposition groups in Cuba, Radio and TV Marti broadcasts from the U.S. base in Guantanamo, embargo enforcement, and steps to indict Castro for downing the Brother-to-the-Rescue planes in February 1996.

While the lively discussion did not improve the likelihood that any of these bills will reach the floor before the U.S. November elections, it was reported that Rep. Ros-Lehtinen (R-FL), chair of the Western Hemisphere Subcommittee of House International Relations, may start hearings on the Torres bill this summer. Copies of the bills are enclosed for corporate members

5. REPORTS OF RISING FOREIGN INVESTMENT AND TOURISM . Figures from the U.S.- Cuba Trade and Economic Council indicate that over $1.7 billion (US) has been committed or delivered in Cuba by over 25 countries. Another $5.6 billion in foreign investment is announced but not yet committed. The largest amount in place is $600 million from Canada, while Mexico has the largest projected investment, $1.8 billion. Even small countries like Uruguay and Honduras have invested or plan to invest in Cuba. For details, see the U.S.-Cuba Trade and Economic Council home page at http://www.cubatrade.org.

Cuban sources say the tourist boom continues, with 1997 earnings at $1.5 billion and contracts with rapidly growing foreign partnerships. Cuba now offers 179 hotels with 27,370 rooms, of which 30% are under management contracts with prestigious international chains that con-tribute marketing networks and trade knowledge. The Ministry of Tourism estimates that by the year 2000 there will be over 40,000 hotel rooms in Cuba, with accommodations for over 2 million tourists a year (- Cuban News from Havana; Cuban Interest Section. May 23/no. 201).

6. CUBA, A “CULTURAL BRIDGE” BETWEEN CARIBBEAN AND LATIN AMERICA? UNESCO (UN Educational, Scientific, and Cultural Orgn.) expects Cuba to be a “bridge” between English, French, and Dutch-speaking Caribbean nations and the rest of Latin America, says UNESCO’s Regional Cultural Advisor, Edwin Bully. Bully describes Cuba as Caribbean in spirit but also Latin, and therefore a natural link between the two subregions.(- Cuban News from Havana; Cuban Interest Section, May 23, 1998/no. 201)

OPINION CORNER. This month’s column is offered by Edward Marasciulo, AmCham Cuba Vice President:

Cuba-watchers face a maze of conflicting causes. Many of us seem to be playing out a game of poker. Most cards seem to be held in a pat hand played by the cold warriors who have singled out Fidel Castro as the most hated dictator in the history of Latin America. They wish to dictate a policy of blocking all contact with the island.

Being dealt a new hand are humanitarians from all over the world including the U.S. Unlike the warriors, the humanitarians distinguish their sympathies for the Cuban people from their anger at the dictator. Within U.S. law, this group is moving food and medical supplies.

At the table, however, there are several wild cards which may bring more permanent solutions:

One is obviously the Pope who, together with the Catholic Church, has a good record in solving some political problems in the Western Hemisphere, but has not scored in efforts to solve social problems such as those at the root of the Cuban social revolution.

A second wild card is the Canadians, who gladly ignore U.S. hegemony in the Western Hemisphere. As new players in the Inter-American system, Canada openly opposes current U.S. policy toward Cuba even though it has supported the innovative U.S. leadership support for opening up hemispheric NAFTA trade.

Third, the Vatican, Canada, and the U.S. all have direct links with perhaps the wildest of the wildcards - the OAS. Historically, the U.S. has had de facto veto power in the OAS. However, the Cubans seem warm to a Canadian initiative to bring Cuba back into this Inter- American forum where honest debate can occur.

A final wild card, other Latin American nations, may be more readable. OAS members are increasingly renewing diplomatic ties with Cuba. Particularly since the U.S. “fast-track” for Congressional support for trade liberalization died, dragging down with it U.S. leverage, many Latin American governments seem to have concluded that it is time to bravely defy U.S. pressure and re-admit Cuba to the OAS.

It is hard to tell how many chips the U.S. can play in this hypothetical game of poker. While a useful role for the U.S. remains unclear, I believe that doing something may be better than doing nothing.

7. UPCOMING EVENTS. AmCham Cuba strives to inform its members on meetings which may impact on Cuban business interests. Here are some events that may be of interest.

U.S.-CUBA BUSINESS COUNCIL IN NYC JUNE 18. Thursday, June 18, the U.S.-Cuba Business Council will hold the first of four conferences on Cuba’s future as part of its “Cuba Transition”

Project sponsored by USAID (the U.S. Agency for International Development). The USAID program seeks to help U.S. organizations, the private sector, and “a democratic Cuba government” to foster Cuba’s economic development. The June 18 forum on Financial Sector Reform in a Transitional and Democratic Cuba will be held 8:30-12:30 at the Council of the Americas, 680 Park Avenue, followed by the USCBC’s annual meeting. Those interested in the forum as an information source for enhancing preparations for transition in Cuba should contact Tom Cox, “Cuba Transition” Program Director, 5313 Lee Hwy., Suite B, Arlington, VA 22207, tel: 703-241-0038, fax 703-241-0548.

ALAMAR BUSINESS SUMMIT IN HAVANA, SEPT. 9-12. A second annual US-Cuba Business Summit will be held in Cancun, Mexico, and Havana in September. Events sponsored by Alamar Associates include plenary sessions with Cuban Ministers, panel discussions, and break-out workshops to examine “all aspects of the Cuban economy, investment potential and opportunities, case studies of foreign investors now doing business in Cuba, and what US laws permit.” For more information, contact Kirby Jones, Alamar Assoc., 1615 L St. NW, Suite 900, Washington, DC 20036, or visit Alamar’s web site at www.alamarcuba.com.

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AMCHAM CUBA/MIAMI LUNCH TO FOCUS ON CUBA CLAIMS. Prominent Miami attorney George R. Harper will examine Claims against the Cuban Government: Practical and Legal Considerations, at lunch June 24 at the Biltmore Hotel, Coral Gables. Havana-born Harper chaired the Florida Bar’s Post Castro Cuba Seminar and the October 1997 Cuba Program of the Inter-American Bar Association. He is active in the ASCE (Association for the Study of the Cuban Economy), the World Trade Center Cuba Committee, and the Greater Miami Chamber of Commerce Cuba Committee. He has published on Cuban reform efforts, the Helms-Burton law, and Cuba’s Foreign Investments Law. To reserve, contact AmCham Cuba/Miami, 305-358-8992, Carlos Porro, Vice President of AmCham Cuba and Florida Representative. We hope to see many of you there.

Sincerely yours,

Phoebe Lansdale

June 9, 1998 Executive Director