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Cuba [2]
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Records of the Office of the Chief of Staff (Clinton Administration)
Thomas "Tom" Shea's Files
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FOIA Number: 2016-0920-F
FOIA
MARKER
This is not a textual record. This is used as an
administrative marker by the William J. Clinton
Presidential Library Staff.
Collection/Record Group:
Clinton Presidential Records
Subgroup/Office of Origin:
Chief of Staff
Series/Staff Member:
Tom Shea
Subseries:
OA/ID Number:
8436
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Folder Title:
Cuba [2]
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S
23
7
7
2
found no mention of
July 15th
highlighted provisions
about President's reports
to congress
supposed to take effect
aug. I - Pres. candelay
if reports to Cong. 15 days
before (July 15th?)
104th CONG.-2nd SESS.
and that all funds appropriated for
in support of the goals of the program. such
PUBLIC LAW 104-114 [H.R. 927]; March 12, 1996
fit
CUBAN LIBERTY AND DEMOCRATIC SOLIDARITY
(LIBERTAD) ACT OF 1996
Cuba
For Legislative History of Act, see Report for P.L. 104-114 in
U.S.C.C. & A.N. Legislative History Section.
to seek international sanctions against the Castro government in Cuba, to plan for
support of a transition government leading to a democratically elected government in
Cuba. and for other purposes.
Be it enacted by the Senate and House of Representatives of
me
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.-This Act may be cited as the "Cuban Liberty
and Democratic Solidarity (LIBERTAD) Act of 1996".
(b) TABLE OF CONTENTS.-The table of contents of this Act
follows:
1 Short title; table of contents.
See
2. Findings.
3. Purposes.
4. Definitions.
5. Severability.
TITLE I-STRENGTIENING INTERNATIONAL SANCTIONS AGAINST THE
CASTRO GOVERNMENT
See. 101. Statement of policy.
See. 102. Enforcement of the economic embargo of Cuba.
See 103. Prohibition against indirect financing of Cuba.
Sec 104. United States opposition to Cuban membership in international financial
institutions.
See. 105. United States opposition to termination of the suspension of the Cuban
Government from participation in the Organization of American States.
Sec. 106. Assistance by the independent states of the former Soviet Union for the
Cuban Government.
Sec. 107. Television broadcasting to Cuba.
Sec. 108. Reports on commerce with, and assistance to, Cuba from other foreign
countries.
See. 109. Authorization of support for democratic and human rights groups and
international observers.
Sec. 110. Importation safeguard against certain Cuban products.
Sec. 111, Withholding of foreign assistance from countries supporting Juragua nu-
clear plant in Cuba.
Sec. 112. Reinstitution of family remittances and travel to Cuba.
Sec. 113. Expulsion of criminals from Cuba.
Sec. 114. News bureaus in Cuba.
Sec. 115. Effect of Act on lawful United States Government activities.
Sec. 116. Condemnation of Cuban attack on American aircraft.
TITLE II-ASSISTANCE TO A FREE AND INDEPENDENT CUBA
See. 201. Policy toward a transition government and a democratically elected gov-
ernment in Cuba.
See. 202. Assistance for the Cuban people.
Sec. 203. Coordination of assistance program; implementation and reports to Con-
gress; reprogramming.
Sec. 204. Termination of the economic embargo of Cuba.
Sec. 205. Requirements and factors for determining a transition government.
Sec. 206. Requirements for determining a democratically elected government.
AT. 784
110 STAT. 785
LAWS OF 104th CONG.-2nd SESS.
Mar. 12
Mar. 12
CUBAN LIBERTY ACT
P.L. 104-114
Sec. 2
Sec. 207. Settlement of outstanding United States claims to confiscated property in
(9) The United States has shown a deep commitment, and
Cuba.
considers it a moral obligation, to promote and protect human
TITLE III-PROTECTION OF PROPERTY RIGHTS OF UNITED STATES
rights and fundamental freedoms as expressed in the Charter
NATIONALS
of the United Nations and in the Universal Declaration of
Sec. 301. Findings.
Human Rights.
Sec. 302. Liability for trafficking in confiscated property claimed by United States
(10) The Congress has historically and consistently mani-
nationals.
Sec. 303. Proof of ownership of claims to confiscated property
fested its solidarity and the solidarity of the American people
Sec. 304. Exclusivity of Foreign Claims Settlement Commission certification proce.
with the democratic aspirations of the Cuban people.
dure.
(11) The Cuban Democracy Act of 1992 calls upon the
Sec. 305. Limitation of actions.
Sec. 306. Effective date.
President to encourage the governments of countries that con-
duct trade with Cuba to restrict their trade and credit relations
TITLE IV-EXCLUSION OF CERTAIN ALIENS
with Cuba in a manner consistent with the purposes of that
Sec. 401. Exclusion from the United States of aliens who have confiscuted property
Act.
of United States nationals or who traffic in such property.
(12) Amendments to the Foreign Assistance Act of 1961
SEC. 2. FINDINGS.
made by the FREEDOM Support Act require that the President.
The Congress makes the following findings:
in providing economic assistance to Russia and the emerging
(1) The economy of Cuba 'has experienced a decline of
Eurasian democracies, take into account the extent to which
at least 60 percent in the last 5 years as a result of-
they are acting to "terminate support for the communist regime
(A) the end of its subsidization by the former Soviet
in Cuba, including removal of troops, closing military facilities,
Union of between 5 billion and 6 billion dollars annually;
and ceasing trade subsidies and economic, nuclear, and other
(B) 36 years of communist tyranny and economic mis-
assistance".
management by the Castro government;
(13) The Cuban Government engages in the illegal inter-
(C) the extreme decline in trade between Cuba and.
national narcotics trade and harbors fugitives from justice in
the countries of the former Soviet bloc; and
the United States.
(D) the stated policy of the Russian Government and
(14) The Castro government threatens international peace
the countries of the former Soviet bloc to conduct economic
and security by engaging in acts of armed subversion and
relations with Cuba on strictly commercial terms.
terrorism such as the training and supplying of groups dedi-
(2) At the same time, the welfare and health of the Cuban
cated to international violence.
people have substantially deteriorated as a result of this eco-
(15) The Castro government has utilized from its inception
nomic. decline and the refusal of the Castro regime to permit
and continues to utilize torture in various forms (including
free and fair democratic elections in Cuba.
by psychiatry), as well as execution, exile, confiscation, political
(3) The Castro regime has made it abundantly clear that
imprisonment, and other forms of terror and repression, as
it will not engage in any substantive political reforms that
means of retaining power.
would lead to democracy, a market economy, or an economic
(16) Fidel Castro has defined democratic pluralism as
recovery.
"pluralistic garbage" and continues to make clear that he has
(4) The repression of the Cuban people, including a ban
no intention of tolerating the democratization of Cuban society.
on free and fair democratic elections, and continuing violations
(17) The Castro government holds innocent Cubans hostage
of fundamental human rights, have isolated the Cuban regime
in Cuba by no fault of the hostages themselves solely because
as the only completely nondemocratic government in the West-
relatives have escaped the country.
ern Hemisphere.
(18) Although a signatory state to the 1928 Inter-American
(5) As long as free elections are not held in Cuba, the
Convention on Asylum and the International Covenant on Civil
economic condition of the country and the welfare of the Cuban
and Political Rights (which protects the right to leave one's
people will not improve in any significant way.
own country), Cuba nevertheless surrounds embassies in its
(6) The totalitarian nature of the Castro regime has
capital by armed forces to thwart the right of its citizens
deprived the Cuban people of any peaceful means to improve
to seek asylum and systematically denies that right to the
their condition and has led thousands of Cuban citizens to
Cuban people, punishing them by imprisonment for seeking
risk or lose their lives in dangerous attempts to escape from
to leave the country and killing them for attempting to do
Cuba to freedom.
so (as demonstrated in the case of the confirmed murder of
(7) Radio Marti and Television Marti have both been effec-
over 40 men, women, and children who were seeking to leave
tive vehicles for providing the people of Cuba with news and
Cuba on July 13, 1994).
information and have helped to bolster the morale of the people
(19) The Castro government continues to utilize blackmail,
of Cuba living under tyranny.
such as the immigration crisis with which it threatened the
(8) The consistent policy of the United States towards
United States in the summer of 1994, and other unacceptable
Cuba since the beginning of the Castro regime, carried out
and illegal forms of conduct to influence the actions of sovereign
by both Democratic and Republican administrations, has sought
states in the Western Hemisphere in violation of the Charter
to keep faith with the people of Cuba, and has been effective
of the Organization of American States and other international
in sanctioning the totalitarian Castro regime.
agreements and international law.
110 STAT. 786
110 STAT. 787
LAWS OF 104th CONG.-2nd SESS.
Mar. 12
Mar. 12
CUBAN LIBERTY ACT
P.L. 104-114
Sec. 4
(20) The United Nations Commission on Human Rights
(4) to encourage the holding of free and fair democratic
has repeatedly reported on the unacceptable human rights
elections in Cuba, conducted under the supervision of inter-
situation in Cuba and has taken the extraordinary step of
nationally recognized observers;
appointing a Special Rapporteur.
(5) to provide a policy framework for United States support
(21) The Cuban Government has consistently refused access
to the Cuban people in response to the formation of a transition
to the Special Rapporteur and formally expressed its decision
government or a democratically elected government in Cuba;
not to "implement so much as one comma" of the United
and
Nations Resolutions appointing the Rapporteur.
(6) to protect United States nationals against confiscatory
(22) The United Nations General Assembly passed Resolu-
takings and the wrongful trafficking in property confiscated
tion 47-139 on December 18, 1992, Resolution 48-142 on
by the Castro regime.
December 20, 1993, and Resolution 49-200 on December 23,
1994, referencing the Special Rapporteur's reports to the United
SEC. 4. DEFINITIONS.
Nations and condemning violations of human rights and fun-
As used in this Act, the following terms have the following
damental freedoms in Cuba.
meanings:
(23) Article 39 of Chapter VII of the United Nations Charter
(1) AGENCY OR INSTRUMENTALITY OF ^ FOREIGN STATE.-
provides that the United Nations Security Council "shall deter-
The term "agency or instrumentality of a foreign state" has
mine the existence of any threat to the peace, breach of the
the meaning given that term in section 1603(b) of title 28,
peace, or act of aggression and shall make recommendations,
United States Code.
or decide what measures shall be taken
to maintain
(2) APPROPRIATE CONGRESSIONAL COMMITTEES.-The term
or restore international peace and security.".
"appropriate congressional committees" means the Committee
(24) The United Nations has determined that massive and
on International Relations and the Committee on Appropria-
systematic violations of human rights may constitute a "threat
tions of the House of Representatives and the Committee on
to peace" under Article 39 and has imposed sanctions due
Foreign Relations and the Committee on Appropriations of
to such violations of human rights in the cases of Rhodesia,
the Senate.
South Africa, Iraq, and the former Yugoslavia.
(3) COMMERCIAL ACTIVITY-The term "commercial activity"
(25) In the case of Haiti, a neighbor of Cuba not as close
has the meaning given that term in section 1603(d) of title
to the United States as Cuba, the United States led an effort
28, United States Code.
to obtain and did obtain a United Nations Security Council
(4) CONFISCATED.-A used in titles I and III, the term
embargo and blockade against that country due to the existence
"confiscated" refers to-
of a military dictatorship in power less than 3 years.
(A) the nationalization, expropriation, or other seizure
(26) United Nations Security Council Resolution 940 of
by the Cuban Government of ownership or control of prop-
July 31, 1994, subsequently authorized the use of "all necessary
erty, on or after January 1, 1959-
means" to restore the "democratically elected government of
(i) without the property having been returned or
Haiti", and the democratically elected government of Haiti was
adequate and effective compensation provided; or
restored to power on October 15, 1994.
(ii) without the claim to the property having been
(27) The Cuban people deserve to be assisted in a decisive
settled pursuant to an international claims settlement
manner to end the tyranny that has oppressed them for 36
agreement or other mutually accepted settlement
years, and the continued failure to do so constitutes ethically
procedure; and
improper conduct by the international community.
(B) the repudiation by the Cuban Government of, the
(28) For the past 36 years, the Cuban Government has
default by the Cuban Government on, or the failure of
posed and continues to pose a national security threat to the
the Cuban Government to pay, on or after January 1,
United States.
1959-
(i) a debt of any enterprise which has been
EC. 3. PURPOSES.
nationalized, expropriated, or otherwise taken by the
The purposes of this Act are-
Cuban Government;
(ii) a debt which is a charge on property national-
(1) to assist the Cuban people in regaining their freedom
and prosperity, as well as in joining the community of demo-
ized, expropriated, or otherwise taken by the Cuban
Government; or
cratic countries that are flourishing in the Western Hemisphere;
(iii) a debt which was incurred by the Cuban
(2) to strengthen international sanctions against the Castro
Government in satisfaction or settlement of a con-
government;
fiscated property claim.
(3) to provide for the continued national security of the
(5) CUBAN GOVERNMENT.-(A) The term "Cuban Govern-
United States in the face of continuing threats from the Castro
ment" includes the government of any political subdivision of
government of terrorism, theft of property from United States
Cuba, and any agency or instrumentality of the Government
nationals by the Castro government, and the political manipula-
of Cuba.
tion by the Castro government of the desire of Cubans to
(B) For purposes of subparagraph (A), the term "agency
escape that results in mass migration to the United States;
or instrumentality of the Government of Cuba" means an
110 STAT. 788
110 STAT. 789
LAWS OF 104th CONG.-2nd SESS.
Mar. 12
Mar. 12
CUBAN LIBERTY ACT
P.L. 104-114
Sec. 101
agency or instrumentality of a foreign state as defined in section
(i) sells, transfers, distributes, dispenses, brokers, man-
1603(b) of title 28, United States Code, with each reference
ages, or otherwise disposes of confiscated property, or pur-
in such section to "a foreign state" deemed to be a reference
chases, leases, receives, possesses, obtains control of, man-
to "Cuba".
ages, uses, or otherwise acquires or holds an interest in
(6) DEMOCRATICALLY ELECTED GOVERNMENT IN сивл.-The
confiscated property,
term "democratically elected government in Cuba" means a
(ii) engages in a commercial activity using or otherwise
government determined by the President to have met the
benefiting from confiscated property, or
requirements of section 206.
(iii) causes, directs, participates in, or profits from,
(7) ECONOMIC EMBARGO OF сивл.-The term "economic
trafficking (as described in clause (i) or (ii)) by another
embargo of Cuba" refers to-
person, or otherwise engages in trafficking (as described
(A) the economic embargo (including all restrictions
in clause (i) or (ii)) through another person,
on trade or transactions with, and travel to or from, Cuba,
without the authorization of any United States national who
and all restrictions on transactions in property in which
holds a claim to the property.
Cuba or nationals of Cuba have an interest) that was
(B) The term "traffics" does not include-
imposed against Cuba pursuant to section 620(a) of the
(i) the delivery of international telecommunication sig-
Foreign Assistance Act of 1961 (22 U.S.C. 2370(a)), section
nals to Cuba;
5(b) of the Trading with the Enemy Act (50 U.S.C. App.
(ii) the trading or holding of securities publicly traded
5(b)), the Cuban Democracy Act of 1992 (22 U.S.C. 6001
or held, unless the trading is with or by a person deter-
and following), or any other provision of law; and
mined by the Secretary of the Treasury to be a specially
(B) the restrictions imposed by section 902(c) of the
designated national;
Food Security Act of 1985.
(iii) transactions and uses of property incident to lawful
(8) FOREIGN NATIONAL.-The term "foreign national"
travel to Cuba, to the extent that such transactions and
means-
uses of property are necessary to the conduct of such travel;
(A) an alien; or
or
(B) any corporation, trust. partnership, or other juridi-
(iv) transactions and uses of property by a person
cal entity not organized under the laws of the United
who is both a citizen of Cuba and a resident of Cuba,
States, or of any State, the District of Columbia, or any
and who is not an official of the Cuban Government or
commonwealth, territory, or possession of the United
the ruling political party in Cuba.
States.
(14) TRANSITION GOVERNMENT IN CUBA.-The term "transi-
(9) KNOWINGLY.-The term "knowingly" means with knowl-
tion government in Cuba" means a government that the Presi-
dent determines is a transition government consistent with
edge or having reason to know.
(10) OFFICIAL OF THE CUBAN GOVERNMENT OR THE RULING
the requirements and factors set forth in section 205.
POLITICAL PARTY IN CUBA.-The term "official of the Cuban
(15) UNITED STATES NATIONAL.-The term "United States
national" means-
Government or the ruling political party in Cuba" refers to
any member of the Council of Ministers, Council of State,
(A) any United States citizen; or
central committee of the Communist Party of Cuba, or the
(B) any other legal entity which is organized under
the laws of the United States, or of any State, the District
Politburo of Cuba, or their equivalents.
of Columbia, or any commonwealth, territory, or possession
(11) PERSON.-The term "person" means any person or
of the United States, and which has its principal place
entity, including any agency or instrumentality of a foreign
of business in the United States.
state.
(12) PROPERTY.-(A) The term "property" means any prop-
SEC. 5. SEVERABILITY.
erty (including patents, copyrights, trademarks, and any other
If any provision of this Act or the amendments made by this
form of intellectual property), whether real, personal, or mixed,
Act or the application thereof to any person or circumstance is
and any present, future, or contingent right, security, or other
held invalid, the remainder of this Act, the amendments made
interest therein, including any leasehold interest.
by this Act, or the application thereof to other persons not similarly
(B) For purposes of title III of this Act, the term "property"
situated or to other circumstances shall not be affected by such
does not include real property used for residential purposes
invalidation.
unless, as of the date of the enactment of this Act-
(i) the claim to the property is held by a United States
TITLE
I-STRENGTHENING
INTER-
national and the claim has been certified under title V
of the International Claims Settlement Act of 1949; or
NATIONAL SANCTIONS AGAINST THE
(ii) the property is occupied by an official of the Cuban
CASTRO GOVERNMENT
Government or the ruling political party in Cuba.
(13) TRAFFICS.-(A) As used in title III, and except as
provided in subparagraph (B), a person "traffics" in confiscated
SEC. 101. STATEMENT OF POLICY.
property if that person knowingly and intentionally-
It is the sense of the Congress that-
110 STAT. 790
110 STAT. 791
LAWS OF 104th CONG.-2nd SESS.
Mar. 12
Mar. 12
CUBAN LIBERTY ACT
P.L. 104-114
Sec. 102
(1) the acts of the Castro government, including its massive,
systematic, and extraordinary violations of human rights, are
(1) Civil. PENALTIES.-Subsection (b) of section 16 of the
Trading with the Enemy Act (50 U.S.C. App. 16(b)), as added
a threat to international peace;
(2) the President should advocate, and should instruct the
by Public Law 102-484, is amended to read as follows:
United States Permanent Representative to the United Nations
"(b)(1) A civil penalty of not to exceed $50,000 may be imposed
to propose and seek within the Security Council, a mandatory
by the Secretary of the Treasury on any person who violates any
international embargo against the totalitarian Cuban Govern-
license, order, rule, or regulation issued in compliance with the
ment pursuant to chapter VII of the Charter of the United
provisions of this Act.
Nations. employing efforts similar to consultations conducted
"(2) Any property, funds, securities, papers, or other articles
or documents, or any vessel, together with its tackle, apparel,
by United States representatives with respect to Haiti;
(3) any resumption of efforts by any independent state
furniture, and equipment, that is the subject of a violation under
of the former Soviet Union to make operational any nuclear
paragraph (1) shall, at the direction of the Secretary of the Treasury,
facilities in Cuba, and any continuation of intelligence activities
be forfeited to the United States Government.
by such a state from Cuba that are targeted at the United
"(3) The penalties provided under this subsection may be
States and its citizens will have a detrimental impact on United
imposed only on the record after opportunity for an agency hearing
in accordance with sections 554 through 557 of title 5, United
States assistance to such state; and
States Code, with the right to prehearing discovery.
(4) in view of the threat to the national security posed
"(4) Judicial review of any penalty imposed under this sub-
ment's continuing blackmail to unleash another wave of Cuban
by the operation of any nuclear facility, and the Castro govern-
section may be had to the extent provided in section 702 of title
5, United States Code.".
their way to United States shores, further depleting limited
refugees fleeing from Castro's oppression. most of whom find
(2) CONFORMING AMENDMENT; CRIMINAL FORFEITURE.-Sec-
tion 16 of the Trading with the Enemy Act is further amended
humanitarian and other resources of the United States, the
by striking subsection (b). as added by Public Law 102-393.
President should do all in his power to make it clear to the
(3) CLERICAL AMENDMENTS.-Section 16 of the Trading with
Cuban Government that-
the Enemy Act is further amended—
(A) the completion and operation of any nuclear power
(A) by inserting "SEC. 16." before "(a)"; and
facility, or
(B) in subsection (a) by striking "participants" and
(B) any further political manipulation of the desire
inserting "participates".
of Cubans to escape that results in mass migration to
(e) DENIAL OF VISAS TO CERTAIN CUBAN NATIONALS.-It is
the United States,
the sense of the Congress that the President should instruct the
will be considered an act of aggression which will be met
Secretary of State and the Attorney General to enforce fully existing
with an appropriate response in order to maintain the security
regulations to deny visas to Cuban nationals considered by the
of the national borders of the United States and the health
Secretary of State to be officers or employees of the Cuban Govern-
and safety of the American people.
ment or of the Communist Party of Cuba.
(f) COVERAGE OF DEBT-FOR-EQUITY SWAPS BY ECONOMIC EMBAR-
EC. 102. ENFORCEMENT OF THE ECONOMIC EMBARGO OF CUBA.
GO OF CUBA.-Section 1704(b)(2) of the Cuban Democracy Act of
(a) POLICY.-
1992 (22 U.S.C. 6003(b)(2)) is amended—
(1) RESTRICTIONS BY OTHER COUNTRIES.-The Congress
(1) by striking "and" at the end of subparagraph (A);
hereby reaffirms section 1704(a) of the Cuban Democracy Act
(2) by redesignating subparagraph (B) as subparagraph
of 1992, which states that the President should encourage
(C); and
foreign countries to restrict trade and credit relations with
(3) by inserting after subparagraph (A) the following new
Cuba in a manner consistent with the purposes of that Act.
subparagraph:
(2) SANCTIONS ON OTHER COUNTRIES.-The Congress fur-
"(B) includes an exchange, reduction, or forgiveness
ther urges the President to take immediate steps to apply
of Cuban debt owed to a foreign country in return for
the sanctions described in section 1704(b)(1) of that Act against
a grant of an equity interest in a property, investment,
or operation of the Government of Cuba (including the
(b) DIPLOMATIC EFFORTS.-The Secretary of State should ensure
countries assisting Cuba.
government of any political subdivision of Cuba, and any
United States diplomatic personnel abroad understand and,
agency or instrumentality of the Government of Cuba) or
their contacts with foreign officials, are communicating the rea-
of a Cuban national; and"; and
for the United States economic embargo of Cuba, and are
(4) by adding at the end the following flush sentence:
rging foreign governments to cooperate more effectively with the
"As used in this paragraph, the term 'agency or instrumentality
of the Government of Cuba' means an agency or instrumentality
mbargo. (c) EXISTING REGULATIONS.-The President shall instruct the
of a foreign state as defined in section 1603(b) of title 28,
lecretary of the Treasury and the Attorney General to enforce
United States Code, with each reference in such section to
ully the Cuban Assets Control Regulations set forth in part 515
'a foreign state' deemed to be a reference to 'Cuba'."
(g) TELECOMMUNICATIONS SERVICES.-Section 1705(e) of the
title 31, Code of Federal Regulations.
Cuban Democracy Act of 1992 (22 U.S.C. 6004(e)) is amended
(d) TRADING WITH THE ENEMY ACT.-
by adding at the end the following new paragraphs:
110 STAT. 792
110 STAT. 793
Mar. 12
CUBAN LIBERTY ACT
P.L. 104-114
LAWS OF 104th CONG.-2nd SESS.
Mar. 12
Sec. 106
"(5) PROHIBITION ON INVESTMENT IN DOMESTIC TELE-
President submits a determination under section 203(c)(3) that
COMMUNICATIONS SERVICES.-Nothing in this subsection shall
a democratically elected government in Cuba is in power.
be construed to authorize the investment by any United States
(2) TRANSITION GOVERNMENT.-Once the President submits
person in the domestic telecommunications network within
a determination under section 203(c)(1) that a transition
Cuba. For purposes of this paragraph. an 'investment' in the
government in Cuba is in power-
domestic telecommunications network within Cuba includes the
(A) the President is encouraged to take steps to support
contribution (including by donation) of funds or anything of
the processing of Cuba's application for membership in
value to or for, and the making of loans to or for, such network.
any international financial institution, subject to the mem-
"(6) REPORTS TO CONGRESS-The-President/shall@submit
bership taking effect after a democratically elected govern-
to the-Congress on a semiannual-basis a report detailing
ment in Cuba is in power, and
ments made to Cuba by any United States person as.a result
(B) the Secretary of the Treasury is authorized to
of the provision of-teleconmunications.serviccsauthorized.by
instruct the United States executive director of each inter-
this subsection."
national financial institution to support loans or other
(h) CODIFICATION OF ECONOMIC EMBARGO.-The economic
assistance to Cuba only to the extent that such loans
pargo of Cuba, as in effect on March 1, 1996. including all
or assistance contribute to a stable foundation for a demo-
rictions under part 515 of title 31. Code of Federal Regulations,
cratically elected government in Cuba.
be in effect upon the enactment of this Act, and shall remain
(b) REDUCTION IN UNITED STATES PAYMENTS TO INTERNATIONAL
ffect, subject to section 204 of this Act.
FINANCIAL INSTITUTIONS.-1 any international financial institution
103. PROHIBITION AGAINST INDIRECT FINANCING OF CUBA.
approves a loan or other assistance to the Cuban Government
over the opposition of the United States, then the Secretary of
(a) PROIHIBITION.-Notwithstanding any other provision of law,
the Treasury shall withhold from payment to such institution an
loan, credit, or other financing may be extended knowingly
amount equal to the amount of the loan or other assistance, with
a United States national, a permanent resident alien, or a
respect to either of the following types of payment:
States agency to any person for the purpose of financing
(1) The paid-in portion of the increase in capital stock
sactions involving any confiscated property the claim to which
of the institution.
wned by a United States national as of the date of the enactment
(2) The callable portion of the increase in capital stock
his Act, except for financing by the United States national
of the institution.
such claim for a transaction permitted under United States
(c) DEFINITION.-For purposes of this section, the term "inter-
national financial institution" means the International Monetary
(b) SUSPENSION AND TERMINATION OF PROHIBITION-
(1) SUSPENSION.-The President is authorized to suspend
Fund, the International Bank for Reconstruction and Development,
the prohibition contained in subsection (a) upon a determination
the International Development Association, the International
made under section 203(c)(1) that a transition government in
Finance Corporation, the Multilateral Investment Guaranty Agency,
Cuba is in power.
and the Inter-American Development Bank.
(2) TERMINATION.-The prohibition contained in subsection
SEC. 105. UNITED STATES OPPOSITION TO TERMINATION OF THE
(a) shall cease to apply on the date on which the economic
SUSPENSION OF THE CUBAN GOVERNMENT FROM
embargo of Cuba terminates as provided in section 204.
PARTICIPATION IN THE ORGANIZATION OF AMERICAN
(c) PENALTIES.-Violations of subsection (a) shall be punishable
STATES.
uch civil penalties as are applicable to violations of the Cuban
The President should instruct the United States Permanent
Control Regulations set forth in part 515 of title 31, Code
Representative to the Organization of American States to oppose
ederal Regulations.
and vote against any termination of the suspension of the Cuban
(d) DEFINITIONS.-As used in this section-
Government from participation in the Organization until the Presi-
(1) the term "permanent resident alien" means an alien
dent determines under section 203(c)(3) that a democratically
lawfully admitted for permanent residence into the United
States; and
elected government in Cuba is in power.
(2) the term "United States agency" has the meaning given
SEC. 106. ASSISTANCE BY THE INDEPENDENT STATES OF THE FORMER
the term "agency" in section 551(1) of title 5, United States
SOVIET UNION FOR THE CUBAN GOVERNMENT.
Code.
(a) REPORTING REQUIREMENT.-Not later than 90 days after
104. UNITED STATES OPPOSITION TO CUBAN MEMBERSHIP IN
the date of the enactment of this Act, the President shall submit
INTERNATIONAL FINANCIAL INSTITUTIONS.
to the appropriate congressional committees a report detailing
(a) CONTINUED OPPOSITION TO CUBAN MEMBERSHIP IN INTER-
progress toward the withdrawal of personnel of any independent
state of the former Soviet Union (within the meaning of section
ONAL FINANCIAL INSTITUTIONS.-
(1) IN GENERAL-Except as provided in paragraph (2), the
3 of the FREEDOM Support Act (22 U.S.C. 5801)), including advis-
Secretary of the Treasury shall instruct the United States
ers, technicians, and military personnel, from the Cienfuegos
executive director of each international financial institution
nuclear facility in Cuba.
(b) CRITERIA FOR ASSISTANCE.-Section 498A(a)(11) of the For-
to use the voice and vote of the United States to oppose the
admission of Cuba as a member of such institution until the
eign Assistance Act of 1961 (22 U.S.C. 2295a(a)(11)) is amended
by striking "of military facilities" and inserting "military and intel-
110 STAT. 794
110 STAT. 795
LAWS OF 104th CONG.-2nd SESS.
Mar. 12
Mar. 12
CUBAN LIBERTY ACT
P.L. 104-114
Sec. 106
ce facilities, including the military and intelligence facilities
"(4) The assistance is provided under the secondary school
ourdes and Cienfuegos"
exchange program administered by the United States Informa-
(c) INELIGIBILITY FOR ASSISTANCE.-
tion Agency."
(1) IN GENERAL-Section 498A(b) of that Act (22 U.S.C.
(d) FACILITIES AT LOURDES, CUBA.-
2295a(b)) is amended—
(1) DISAPPROVAL OF CREDITS.-The Congress expresses its
(A) by striking "or" at the end of paragraph (4);
strong disapproval of the extension by Russia of credits equiva-
(B) by redesignating paragraph (5) as paragraph (6); and
lent to $200,000,000 in support of the intelligence facility at
(C) by inserting after paragraph (4) the following new
Lourdes, Cuba, in November 1994.
paragraph:
(2) REDUCTION IN ASSISTANCE.-Section 498A of the Foreign
"(5) for the government of any independent state effective
Assistance Act of 1961 (22 U.S.C. 2295a) is amended by adding
30 days after the President has determined and certified to
at the end the following new subsection:
the appropriate congressional committees (and Congress has
"(d) REDUCTION IN ASSISTANCE FOR SUPPORT OF INTELLIGENCE
not enacted legislation disapproving the determination within
FACILITIES IN CUBA.-
that 30-day period) that such government is providing assist-
"(1) REDUCTION IN ASSISTANCE-Notwithstanding any
ance for, or engaging in nonmarket based trade (as defined
other provision of law, the President shall withhold from assist-
in section 498B(k)(3)) with, the Cuban Government; or"
ance provided, on or after the date of the enactment of this
(2) DEFINITION.-Subsection (k) of section 498B of that
subsection, for an independent state of the former Soviet Union
Act (22 U.S.C. 2295b(k)) is amended by adding at the end
under this Act an amount equal to the sum of assistance
the following new paragraph:
and credits, if any, provided on or after such date by such
"(3) NONMARKET BASED TRADE.-As used in section
state in support of intelligence facilities in Cuba, including
498A(b)(5), the term 'nonmarket based trade' includes exports,
the intelligence facility at Lourdes, Cuba.
imports, exchanges, or other arrangements that are provided
"(2) WAIVER.-(A) The President may waive the require-
for goods and services (including oil and other petroleum prod-
ment of paragraph (1) to withhold assistance if the President
ucts) on terms more favorable than those generally available
certifies to the appropriate congressional committees that the
in applicable markets or for comparable commodities, includ-
provision of such assistance is important to the national secu-
ing-
rity of the United States, and, in the case of such a certification
"(A) exports to the Cuban Government on terms that
made with respect to Russia, if the President certifies that
involve a grant, concessional price, guaranty, insurance,
the Russian Government has assured the United States Govern-
or subsidy;
ment that the Russian Government is not sharing intelligence
"(B) imports from the Cuban Government at pref-
data collected at the Lourdes facility with officials or agents
erential tariff rates;
of the Cuban Government.
"(C) exchange arrangements that include advance
"(B) At the time of a certification made with respect to
delivery of commodities, arrangements in which the Cuban
Russia under subparagraph (A), the President shall also submit
Government is not held accountable for unfulfilled
to the appropriate congressional committees a report describing
exchange contracts, and arrangements under which Cuba
the intelligence activities of Russia in Cuba, including the pur-
does not pay appropriate transportation, insurance, or
poses for which the Lourdes facility is used by the Russian
finance costs; and
Government and the extent to which the Russian Government
"(D) the exchange, reduction, or forgiveness of debt
provides payment or government credits to the Cuban Govern-
of the Cuban Government in return for a grant by the
ment for the continued use of the Lourdes facility.
Cuban Government of an equity interest in a property,
"(C) The report required by subparagraph (B) may be
investment, or operation of the Cuban Government or of
submitted in classified form.
a Cuban national.
"(D) For purposes of this paragraph, the term 'appropriate
"(4) CUBAN GOVERNMENT.-(A) The term 'Cuban Govern-
congressional committees' includes the Permanent Select
ment' includes the government of any political subdivision of
Committee on Intelligence of the House of Representatives and
Cuba, and any agency or instrumentality of the Government
the Select Committee on Intelligence of the Senate.
"(3) EXCEPTIONS TO REDUCTIONS IN ASSISTANCE.-The
of Cuba.
"(B) For purposes of subparagraph (A), the term 'agency
requirement of paragraph (1) to withhold assistance shall not
or instrumentality of the Government of Cuba' means an agency
apply with respect to-
"(A) assistance to meet urgent humanitarian needs,
or instrumentality of a foreign state as defined in section
1603(b) of title 28, United States Code, with each reference
including disaster and refugee relief;
"(B) democratic political reform or rule of law activities;
in such section to 'a foreign state' deemed to be a reference
"(C) technical assistance for safety upgrades of civilian
to "Cuba'.".
nuclear power plants;
(3) EXCEPTION.-Section 498A(c) of the Foreign Assistance
"(D) the creation of private sector or nongovernmental
Act of 1961 (22 U.S.C. 2295A(c)) is amended by inserting after
organizations that are independent of government control;
paragraph (3) the following new paragraph:
"(E) the development of a free market economic system;
110 STAT. 796
110 STAT. 797
LAWS OF 104th CONG.-2nd SESS.
Mar. 12
Mar. 12
CUBAN LIBERTY ACT
P.L. 104-114
Sec. 109
"(F) assistance under the secondary school exchange
ta grant by the Cuban Government of an equity, interest
program administered by the United States Information
hin a property, investment, or operation of the Cuban
Agency; or
Government or of a Cuban national.
"(G) assistance for the purposes described in the
(6) A description of the steps taken to, assure that raw
Cooperative Threat Reduction Act of 1993 (title XII of
materials and semifinished or finished goods produced by facili
Public Law 103-160).".
ties in Cuba involving foreign nationals do not enter the United
107. TELEVISION BROADCASTING TO CUBA.
States market, either directly or through third countries or
(a) CONVERSION TO UHF.-The Director of the United States
parties.
formation Agency shall implement a conversion of television
(7) An identification of countries that purchase, or have
roadcasting to Cuba under the Television Marti Service to ultra
purchased, arms or military supplies from Cuba or that other
frequency (UHF) broadcasting.
wise have entered into agreements with Cuba that have a
(b) PERIODIC REPORTS.-Not later than 45 days after the date
military application, including
the enactment of this Act, and every three months thereafter
(A)-a-description-of-the-military supplies, equipment
the conversion described in subsection (a) is fully implemented,
or other material sold, bartered, or exchanged between
Director of the United States Information Agency shall submit
Cuba and such countries,
report to the appropriate congressional committees on the progress
(B) a listing of the goods, services, credits, or other
ade in carrying out subsection (a).
consideration received by Cuba in exchange for military
(c) TERMINATION OF BROADCASTING AUTHORITIES.-Upon
supplies, equipment; or material, and
ansmittal of a determination under section 203(c)(3), the Tele-
(E) the terms or conditions of any such agreement.
Broadcasting to Cuba Act (22 U.S.C. 1465aa and following)
the Radio Broadcasting to Cuba Act (22 U.S.C. 1465 and
SEC. 109. AUTHORIZATION OF SUPPORT FOR DEMOCRATIC AND
llowing) are repealed.
HUMAN RIGHTS GROUPS AND INTERNATIONAL OBSERV-
ERS.
108. REPORTS ON COMMERCE WITH. AND ASSISTANCE TO, CUBA
FROM OTHER FOREIGN COUNTRIES.
(a) AUTHORIZATION.-Notwithstanding any other provision of
(a) REPORTS REQUIRED Not than 90 days after the date
law (including section 102 of this Act), except for section 634A
the enactment of this Act, and by January of each year
of the Foreign Assistance Act of 1961 (22 U.S.C. 2394-1) and
ereafter until the President submits a determination under sec
comparable notification requirements contained in any Act making
203(c)(1) the President shall submit a report to the appropriate
appropriations for foreign operations, export financing, and related
ngressional committees on commerce with and assistance to;
programs, the President is authorized to furnish assistance and
ba from other foreign countries during the preceding month
provide other support for individuals and independent nongovern-
mental organizations to support democracy-building efforts for
T(b) CONTENTS OF REPORTS:-Each report required by.subsection
Cuba, including the following:
shall, for the period covered, by the report, contain the following,
(1) Published and informational matter, such as books,
the extent such information is available:
videos, and cassettes, on transitions to democracy, human
(1): A description of all bilateral assistance provided to
rights, and market economies, to be made available to independ-
Cuba by other foreign countries, including humanitarian,assist,
ent democratic groups in Cuba.
lance.
(2) Humanitarian assistance to victims of political repres-
(2) A description of Cuba's commerce with foreign countries,
sion, and their families.
including an identification of Cuba' tradingspartners and the
(3) Support for democratic and human rights groups in
extent of such trade
Cuba.
(3) description of the joint ventures completed, or under
(4) Support for visits and permanent deployment of
consideration, by foreign nationals and business firms involving
independent international human rights monitors in Cuba.
(facilities in Cuba, including an identification of the location
(b) OAS EMERGENCY FUND.-
of the facilities involved and a description of the terms of
(1) FOR SUPPORT OF HUMAN RIGHTS AND ELECTIONS.-The
agreement of the joint ventures and the names of the parties
President shall take the necessary steps to encourage the
that are involved. 1
Organization of American States to create a special emergency
(4):A determination as to whether or any of the facilities,
fund for the explicit purpose of deploying human rights observ-
described in paragraph (3), is the subject of claim against
crs, election support, and election observation in Cuba.
Cuba by a United States national
(2) ACTION OF OTHER MEMBER STATES.-The President
(5) A, determination of the amount of debt of the Cuban
should instruct the United States Permanent Representative
Government that is owed to each foreign country, including
to the Organization of American States to encourage other
(A) the amount of debt exchanged forgiven, or reduced
member states of the Organization to join in calling for the
under the terms of each investment or, operation. Cuba
Cuban Government to allow the immediate deployment of
involving foreign nationals; and
independent human rights monitors of the Organization
(B) the amount of debt owed the foreign country that
throughout Cuba and on-site visits to Cuba by the Inter-Amer-
has: been. exchanged, forgiven, or reduced in return for
ican Commission on Human Rights.
110 STAT. 798
110 STAT. 799
LAWS OF 104th CONG.-2nd SESS.
Mar. 12
Mar. 12
CUBAN LIBERTY ACT
P.L. 104-114
Sec. 111
(3) VOLUNTARY CONTRIBUTIONS FOR FUND.-Notwithstand-
of Cuba's refusal to sign the Nuclear Non-Proliferation Treaty
ing section 307 of the Foreign Assistance Act of 1961 (22
or ratify the Treaty of Tlatelolco.
U.S.C. 2227) or any other provision of law limiting the United
(2) Cuba has not signed the Treaty on the Non-Proliferation
States proportionate share of assistance to Cuba by any inter-
of Nuclear Weapons or ratified the Treaty of Tlatelolco, the
national organization. the President should provide not less
latter of which establishes Latin America and the Caribbean
than $5,000,000 of the voluntary contributions of the United
as a nuclear weapons-free zone.
States to the Organization of American States solely for the
(3) The State Department, the Nuclear Regulatory Commis-
purposes of the special fund referred to in paragraph (1).
sion, and the Department of Energy have expressed concerns
(c) DENIAL OF FUNDS TO THE CUBAN GOVERNMENT.-In
about the construction and operation of Cuba's nuclear reactors.
implementing this section, the President shall take all necessary
(4) In a September 1992 report to the Congress, the General
steps to ensure that no funds or other assistance is provided to
Accounting Office outlined concerns among nuclear energy
the Cuban Government.
experts about deficiencies in the nuclear plant project in
SEC. 110. IMPORTATION SAFEGUARD AGAINST CERTAIN CUBAN PROD.
Juragua, near Cienfuegos, Cuba, including-
UCTS.
(A) a lack in Cuba of a nuclear regulatory structure;
(a) PROHIBITION ON IMPORT OF AND DEALINGS IN CUBAN PROD-
(B) the absence in Cuba of an adequate infrastructure
UCTS.-The Congress notes that section 515.204 of title 31, Code
to ensure the plant's safe operation and requisite mainte-
of Federal Regulations, prohibits the entry of, and dealings outside
nance;
the United States in, merchandise that-
(C) the inadequacy of training of plant operators;
(1) is of Cuban origin;
(D) reports by a former technician from Cuba who,
(2) is or has been located in or transported from or through
by examining with x-rays weld sites believed to be part
Cuba; or
of the auxiliary plumbing system for the plant, found that
(3) is made or derived in whole or in part of any article
10 to 15 percent of those sites were defective;
which is the growth, produce, or manufacture of Cuba.
(E) since September 5, 1992, when construction on
(b) EFFECT OF NAFTA-The Congress notes that United States
the plant was halted, the prolonged exposure to the ele-
accession to the North American Free Trade Agreement does not
ments, including corrosive salt water vapor, of the primary
modify or alter the United States sanctions against Cuba. The
reactor components; and
statement of administrative action accompanying that trade agree-
(F) the possible inadequacy of the upper portion of
ment specifically states the following:
the reactors' dome retention capability to withstand only
(1) "The NAFTA rules of origin will not in any way diminish
7 pounds of pressure per square inch, given that normal
the Cuban sanctions program. Nothing in the NAFTA
atmospheric pressure is 32 pounds per square inch and
would operate to override this prohibition.".
United States reactors are designed to accommodate pres-
(2) "Article 309(3) [of the NAFTA] permits the United
sures of 50 pounds per square inch.
States to ensure that Cuban products or goods made from
(5) The United States Geological Survey claims that it
Cuban materials are not imported into the United States from
had difficulty determining answers to specific questions regard-
Mexico or Canada and that United States products are not
ing earthquake activity in the area near Cienfuegos because
exported to Cuba through those countries."
the Cuban Government was not forthcoming with information.
(c) RESTRICTION OF SUGAR IMPORTS.-The Congress notes that
(6) The Geological Survey has indicated that the Caribbean
section 902(c) of the Food Security Act of 1985 (Public Law 99-
plate, a geological formation near the south coast of Cuba,
198) requires the President not to allocate any of the sugar import
may pose seismic risks to Cuba and the site of the power
quota to a country that is a net importer of sugar unless appropriate
plant, and may produce large to moderate earthquakes.
officials of that country verify to the President that the country
(7) On May 25, 1992, the Caribbean plate produced an
does not import for reexport to the United States any sugar pro-
earthquake numbering 7.0 on the Richter scale.
duced in Cuba.
(8) According to a study by the National Oceanic and
(d) ASSURANCES REGARDING SUGAR PRODUCTS-Protection of
Atmospheric Administration, summer winds could carry radio-
essential security interests of the United States requires assurances
active pollutants from a nuclear accident at the power plant
that sugar products that are entered, or withdrawn from warehouse
throughout all of Florida and parts of the States on the coast
for consumption, into the customs territory of the United States
of the Gulf of Mexico as far as Texas, and northern winds
are not products of Cuba.
could carry the pollutants as far northeast as Virginia and
SEC. 111. WITHHOLDING OF FOREIGN ASSISTANCE FROM COUNTRIES
Washington, D.C.
(9) The Cuban Government, under dictator Fidel Castro,
SUPPORTING JURAGUA NUCLEAR PLANT IN CUBA.
in 1962 advocated the Soviets' launching of nuclear missiles
(a) FINDINGS.-The Congress makes the following findings:
to the United States, which represented a direct and dangerous
(1) President Clinton stated in April 1993 that the United
provocation of the United States and brought the world to
States opposed the construction of the Juragua nuclear power
the brink of a nuclear conflict.
plant because of the concerns of the United States about Cuba's
(10) Fidel Castro over the years has consistently issued
ability to ensure the safe operation of the facility and because
threats against the United States Government, most recently
110 STAT. 800
110 STAT. 801
LAWS OF 104th CONG.-2nd SESS.
Mar. 12
Mar. 12
CUBAN LIBERTY ACT
P.L. 104-114
Sec. 116
that he would unleash another perilous mass migration from
who are family members of Cuban nationals who are resident
Cuba upon the enactment of this Act.
in Cuba, insist on such actions by the Cuban Government
(11) Despite the various concerns about the plant's safety
as abrogation of the sanction for departure from Cuba by refu-
and operational problems, a feasibility study is being conducted
gees, release of political prisoners, recognition of the right of
that would establish a support group to include Russia, Cuba,
association, and other fundamental freedoms.
and third countries with the objective of completing and operat-
ing the plant.
SEC. 113. EXPULSION OF CRIMINALS FROM CUBA.
(b) WITHHOLDING OF FOREIGN ASSISTANCE.-
The President shall instruct all United States Government
(1) IN GENERAL.-Notwithstanding any other provision of
officials who engage in official contacts with the Cuban Government
law, the President shall withhold from assistance allocated,
to raise on a regular basis the extradition of or rendering to the
on or after the date of the enactment of this Act, for any
United States all persons residing in Cuba who are sought by
country an amount equal to the sum of assistance and credits,
the United States Department of Justice for crimes committed
if any, provided on or after such date of enactment by that
in the United States.
country or any entity in that country in support of the comple-
tion of the Cuban nuclear facility at Juragua, near Cienfuegos,
SEC. 114. NEWS BUREAUS IN CUBA.
Cuba.
(a) ESTABLISHMENT OF NEWS BUREAUS.-The President is
(2) EXCEPTIONS.-The requirement of paragraph (1) to with-
authorized to establish and implement an exchange of news bureaus
hold assistance shall not apply with respect to-
between the United States and Cuba, if the exchange meets the
(A) assistance to meet urgent humanitarian needs,
following conditions:
including disaster and refugee relief;
(1) The exchange is fully reciprocal.
(B) democratic political reform or rule of law activities;
(2) The Cuban Government agrees not to interfere with
(C) the creation of private sector or nongovernmental
the establishment of news bureaus or with the movement in
organizations that are independent of government control;
Cuba of journalists of any United States-based news organiza-
(D) the development of a free market economic system:
tions, including Radio Marti and Television Marti.
(E) assistance for the purposes described in the
(3) The Cuban Government agrees not to interfere with
Cooperative Threat Reduction Act of 1993 (title XII of
decisions of United States-based news organizations with
Public Law 103-160); or
respect to individuals assigned to work as journalists in their
(F) assistance under the secondary school exchange
news bureaus in Cuba.
program administered by the United States Information
(4) The Department of the Treasury is able to ensure
Agency.
that only accredited journalists regularly employed with a news
(3) DEFINITION.-As'used in paragraph (1), the term "assist-
gathering organization travel to Cuba under this subsection.
ance" means assistance under the Foreign Assistance Act of
(5) The Cuban Government agrees not to interfere with
1961, credits, sales, guarantees of extensions of credit, and
the transmission of telecommunications signals of news bureaus
other assistance under the Arms Export Control Act, assistance
or with the distribution within Cuba of publications of any
under titles I and III of the Agricultural Trade Development
United States-based news organization that has a news bureau
and Assistance Act of 1954, assistance under the FREEDOM
in Cuba.
Support Act, and any other program of assistance or credits
(b) ASSURANCE AGAINST ESPIONAGE.-In implementing this sec-
provided by the United States to other countries under other
tion, the President shall take all necessary steps to ensure the
provisions of law.
safety and security of the United States against espionage by Cuban
SEC. 112. REINSTITUTION OF FAMILY REMITTANCES AND TRAVEL TO
journalists it believes to be working for the intelligence agencies
CUBA.
of the Cuban Government.
(c) FULLY RECIPROCAI.-As used in subsection (a)(1), the term
It is the sense of the Congress that the President should-
"fully reciprocal" means that all news services, news organizations,
(1)(A) before considering the reinstitution of general
and broadcasting services, including such services or organizations
licenses for family remittances to Cuba, insist that, prior to
that receive financing, assistance, or other support from a govern-
such reinstitution, the Cuban Government permit the unfet-
mental or official source, are permitted to establish and operate
tered operation of small businesses fully empowered with the
a news bureau in the United States and Cuba.
right to hire others to whom they may pay wages and to
buy materials necessary in the operation of the businesses,
SEC. 115. EFFECT OF ACT ON LAWFUL UNITED STATES GOVERNMENT
and with such other authority and freedom as are required
ACTIVITIES.
to foster the operation of small businesses throughout Cuba;
Nothing in this Act prohibits any lawfully authorized investiga-
and
tive, protective, or intelligence activity of a law enforcement agency,
(B) if licenses described in subparagraph (A) are
or of an intelligence agency, of the United States.
reinstituted, require a specific license for remittances described
in subparagraph (A) in amounts of more than $500; and
SEC. 116. CONDEMNATION OF CUBAN ATTACK ON AMERICAN AIR-
(2) before considering the reinstitution of general licenses
CRAFT.
for travel to Cuba by individuals resident in the United States
(a) FINDINGS.-The Congress makes the following findings:
110 STAT. 802
110 STAT. 803
LAWS OF 104th CONG.-2nd SESS.
Mar. 12
Mar. 12
CUBAN LIBERTY ACT
P.L. 104-114
Sec. 201
(1) Brothers to the Rescue is a Miami-based humanitarian
Cuba, included arrests, strip searches, house arrests, and in
organization engaged in searching for and aiding Cuban refu-
some cases sentences to more than 1 year in jail.
gees in the Straits of Florida, and was engaged in such a
(b) STATEMENTS BY THE CONGRESS.-(1) The Congress strongly
mission on Saturday, February 24. 1996.
condemns the act of terrorism by the Castro regime in shooting
(2) The members of Brothers to the Rescue were flying
down the Brothers to the Rescue aircraft on February 24, 1996.
unarmed and defenseless planes in a, mission identical to hun-
(2) The Congress extends its condolences to the families of
dreds they have flown since 1991 and posed no threat whatso-
Pablo Morales, Carlos Costa, Mario de la Pena, and Armando
ever to the Cuban Government, the Cuban military, or the
Alejandre, the victims of the attack.
Cuban people.
(3) The Congress urges the President to seek, in the Inter-
(3) Statements by the Cuban Government that Brothers
national Court of Justice, indictment for this act of terrorism by
to the Rescue has engaged in covert operations, bombing cain-
Fidel Castro.
paigns, and commando operations against the Government of
Cuba have no basis in fact.
(4) The Brothers to the Rescue aircraft notified air traffic
TITLE II-ASSISTANCE TO A FREE AND
controllers as to their flight plans, which would take them
INDEPENDENT CUBA
south of the 24th parailel and close to Cuban airspace.
(5) International law provides a nation with airspace over
the 12-mile territorial sea.
SEC. 201. POLICY TOWARD A TRANSITION GOVERNMENT AND A DEMO-
(G) The response of Fidel Castro's dictatorship to Saturday's
CRATICALLY ELECTED GOVERNMENT IN CUBA.
afternoon flight was to scramble 2 fighter jets from a Havana
airfield.
The policy of the United States is as follows:
(1) To support the self-determination of the Cuban people.
(7) At approximately 3:24 p.m., the pilot of one of the
(2) To recognize that the self-determination of the Cuban
Cuban MiGs received permission and proceeded to shoot down
one Brothers to the Rescue airplane more than 6 miles north
people is a sovereign and national right of the citizens of
Cuba which must be exercised free of interference by the
of the Cuban exclusion zone, or 18 miles from the Cuban
coast.
government of any other country.
(8) Approximately 7 minutes later, the pilot of the Cuban
(3) To encourage the Cuban people to empower themselves
fighter jet received permission and proceeded to shoot down
with a government which reflects the self-determination of
the second Brothers Lo the Rescue airplane almost 18.5 miles
the Cuban people.
north of the Cuban exclusion zone, or 30.5 miles from the
(4) To recognize the potential for a difficult transition from
Cuban coast.
the current regime in Cuba that may result from the initiatives
(9) The Cuban dictatorship, if it truly felt threatened by
taken by the Cuban people for self-determination in response
the flight of these unarmed aircraft, could have and should
to the intransigence of the Castro regime in not allowing any
have pursued other peaceful options as required by inter-
substantive political or economic reforms, and to be prepared
national law.
to provide the Cuban people with humanitarian, developmental,
(10) The response chosen by Fidel Castro, the use of lethal
and other economic assistance.
force, was completely inappropriate to the situation presented
(5) In solidarity with the Cuban people, to provide appro-
to the Cuban Government, making such actions a blatant and
priate forms of assistance-
barbaric violation of international law and tantamount to cold-
(A) to a transition government in Cuba;
blooded murder.
(B) to facilitate the rapid movement from such a transi-
(11) There were no survivors of the attack on these aircraft,
tion government to a democratically elected government
and the crew of a third aircraft managed to escape this criminal
in Cuba that results from an expression of the self-deter-
attack by Castro's Air Force.
mination of the Cuban people; and
(12) The crew members of the destroyed planes, Pablo
(C) to support such a democratically elected govern-
Morales, Carlos Costa, Mario de la Pena, and Armando
ment.
Alejandre, were United States citizens from Miami flying with
(6) Through such assistance, to facilitate a peaceful transi-
Brothers to the Rescue on a voluntary basis.
tion to representative democracy and a market economy in
(13) It is incumbent upon the United States Government
Cuba and to consolidate democracy in Cuba.
to protect the lives and livelihoods of United States citizens
(7) To deliver such assistance to the Cuban people only
as well as the rights of free passage and humanitarian missions.
through a transition government in Cuba, through a democrat-
(14) This premeditated act took place after a week-long
ically elected government in Cuba, through United States
wave of repression by the Cuban Government against Concilio
Government organizations, or through United States, inter-
Cubano, an umbrella organization of human rights activists,
national, or indigenous nongovernmental organizations.
dissidents, independent economists, and independent journal-
(8) To encourage other countries and multilateral organiza-
ists, among others.
tions to provide similar assistance, and to work cooperatively
(15) The wave of repression against Concilio Cubano, whose
with such countries and organizations to coordinate such assist-
membership is committed to peaceful democratic change in
ance.
110 STAT. 804
110 STAT. 805
LAWS OF 104th CONG.-2nd SESS.
Mar. 12
Mar. 12
CUBAN LIBERTY ACT
P.L. 104-114
Sec. 202
(9) To ensure that appropriate assistance is rapidly pro-
(ii) Assistance in addition to assistance under clause
vided and distributed to the people of Cuba upon the institution
(i) may be provided, but only after the President certifies
of a transition government in Cuba.
to the appropriate congressional committees, in accordance
(10) Not to provide favorable treatment or influence on
with procedures applicable to reprograining notifications
behalf of any individual or entity in the selection by the Cuban
under section 634A of the Foreign Assistance Act of 1961,
people of their future government.
that such assistance is essential to the successful comple-
(11) To assist a transition government in Cuba and a
tion of the transition to democracy.
democratically elected government in Cuba to prepare the
(iii) Only after a transition government in Cuba is
Cuban military forces for an appropriate role in a democracy.
(12) To be prepared to enter into negotiations with a demo-
in power, freedom of individuals to travel to visit their
relatives without any restrictions shall be permitted.
cratically elected government in Cuba either to return the
United States Naval Base at Guantanamo to Cuba or to renego-
(B) DEMOCRATICALLY ELECTED GOVERNMENT.-Assist-
ance to a democratically elected government in Cuba may,
tiate the present agreement under mutually agreeable terms.
(13) To consider the restoration of diplomatic recognition
subject to an authorization of appropriations and subject
and support the reintegration of the Cuban Government into
to the availability of appropriations, consist of economic
Inter-Ainerican organizations when the President determines
assistance in addition to assistance available under
that there exists a democratically elected government in Cuba.
subparagraph (A), together with assistance described in
(14) To take steps to remove the economic embargo of
subparagraph (C). Such economic assistance may include-
Cuba when the President determines that a transition to a
(i) assistance under chapter 1 of part I (relating
democratically elected government in Cuba has begun.
to development assistance), and chapter 4 of part II
(15) To assist a democratically elected government in Cuba
(relating to the economic support fund), of the Foreign
Assistance Act of 1961;
to strengthen and stabilize its national currency.
(ii) assistance under the Agricultural Trade Devel-
(16) To pursue trade relations with a free, democratic,
and independent Cuba.
opment and Assistance Act of 1954;
(iii) financing, guarantees, and other forms of
SEC. 202. ASSISTANCE FOR THE CUBAN PEOPLE.
assistance provided by the Export-Import Bank of the
United States;
(a) AUTHORIZATION.-
(iv) financial support provided by the Overseas
(1) IN GENERAL.-The President shall develop a plan for
Private Investment Corporation for investment projects
providing economic assistance to Cuba at such time as the
in Cuba;
President determines that a transition government or a demo-
(v) assistance provided by the Trade and Develop-
cratically elected government in Cuba (as determined under
ment Agency;
section 203(c)) is in power.
(vi) Peace Corps programs; and
(2) EFFECT ON OTHER LAWS.-Assistance may be provided
(vii) other appropriate assistance to carry out the
under this section subject to an authorization of appropriations
and subject to the availability of appropriations.
policy of section 201.
(b) PLAN FOR ASSISTANCE.-
(C) MILITARY ADJUSTMENT ASSISTANCE.-Assistance to
(1) DEVELOPMENT OF PLAN.-The President shall develop
a transition government in Cuba and to a democratically
a plan for providing assistance under this section-
elected government in Cuba shall also include assistance
in preparing the Cuban military forces to adjust to an
(A) to Cuba when a transition government in Cuba
is in power; and
appropriate role in a democracy.
(c) STRATEGY FOR DISTRIBUTION.-The plan developed under
(B) to Cuba when a democratically elected government
in Cuba is in power.
subsection (b) shall include a strategy for distributing assistance
(2) TYPES OF ASSISTANCE.-Assistance under the plan devel-
under the plan.
oped under paragraph (1) may, subject to an authorization
(d) DISTRIBUTION.-Assistance under the plan developed under
of appropriations and subject to the availability of appropria-
subsection (b) shall be provided through United States Government
tions, include the following:
organizations and nongovernmental organizations and private and
(A) TRANSITION GOVERNMENT.-(i) Except as provided
voluntary organizations, whether within or outside the United
in clause (ii), assistance to Cuba under a transition govern-
States, including humanitarian, educational, labor, and private sec-
ment shall, subject to an authorization of appropriations
tor organizations.
(e) INTERNATIONAL EFFORTS-The President shall take the nec-
and subject to the availability of appropriations, be limited
to-
essary steps-
(1) to seek to obtain the agreement of other countries
(I) such food, medicine, medical supplies and equip-
and of international financial institutions and multilateral
ment, and assistance to meet emergency energy needs,
organizations to provide to a transition government in Cuba,
as is necessary to meet the basic human needs of
and to a democratically elected government in Cuba, assistance
the Cuban people; and
comparable to that provided by the United States under this
(II) assistance described in subparagraph (C).
Act; and
110 STAT. 806
110 STAT. 807
LAWS OF 104th CONG.-2nd SESS.
Mar. 12
Mar. 12
CUBAN LIBERTY ACT
P.L. 104-114
Sec. 203
(2) to work with such countries, institutions, and organiza-
SEC. 203. COORDINATION OF ASSISTANCE PROGRAM: IMPLEMENTA-
tions to coordinate all such assistance programs.
TION AND REPORTS TO CONGRESS; REPROGRAMMING.
(f) COMMUNICATION WITH THE CUBAN PEOPLE.-The President
(a) COORDINATING OFFICIAL.-The President shall designate a
shall take the necessary steps to communicate to the Cuban people
coordinating official who shall be responsible for-
the plan for assistance developed under this section.
(1) implementing the strategy for distributing assistance
(g) REPORT TO CONGRESS. Not later, than the
described in section 202(b);
date-of-the enactment of this Act, the President. shall. transmity
(2) ensuring the speedy and efficient distribution of such
to the appropriate congressional committees a report describing
assistance; and
in detail the plan developed under this section!
(3) ensuring coordination among, and appropriate oversight
(h) REPORT ON TRADE AND INVESTMENT RELATIONS
by, the agencies of the United States that provide assistance
(1) REPORT TO: CONGRESS The President, following the
described in section 202(b), including resolving any disputes
transmittal. to the Congress of a determination under section
among such agencies.
203(c)(3) that a. democratically elected government in Cuba
(b) UNITED STATES-CUBA COUNCIL.-Upon making a determina-
is in power, shall submit to the Committee on Ways and Means
tion under subsection (c)(3) that a democratically elected govern-
of the House of Representatives and the Cominittee on Finance
ment in Cuba is in power, the President, after consultation with
of the Senate and the appropriate congressional committees
the coordinating official, is authorized to designate a United States-
a report that describes
Cuba council-
(A) acts, policies, and practices which constitute signifi:
(1) to ensure coordination between the United States
cant barriers to; or distortions of, United States trade in
Government and the private sector in responding to change
goods or services or foreign direct investment with respect}
in Cuba, and in promoting market-based development in Cuba;
and
to Cuba;
(2) to establish periodic meetings between representatives
(B) policy objectives of the United States regarding
of the United States and Cuban private sectors for the purpose
trade relations with a democratically elected government
of facilitating bilateral trade.
in Cuba, and the reasons: therefor, including possible
(c) IMPLEMENTATION OF PLAN; REPORTS TO CONGRESS.-
(i) reciprocal extension of, nondiscriminatory rade
(1) IMPLEMENTATION WITH RESPECT TO TRANSITION GOVERN-
treatment (most favored-nation, treatment);
MENT.-Upon making a determination that a transition govern-
(ii) designation of Cuba as a beneficiary developing
ment in Cuba is in power, the President shall transmit that
country under title of the Trade Act of 1974 relating
determination to the appropriate congressional committees and
to the Generalized System of Preferences) or as a bene.
shall, subject to an authorization of appropriations and subject
ficiary country under the Caribbean Basin Economic
to the availability of appropriations, commence the delivery
Recovery Act, and the implications of such.designation
and distribution of assistance to such transition government
with respect to trade with any other country that is
under the plan developed under section 202(b).
such a beneficiary developing country or beneficiary
(2) REPORTS TO CONGRESS. The President shall trans
country, or is a party to the North American Free
mit to the appropriate congressional committees a report setting
Trade Agreement; and
forth the strategy for providing assistance described infsection
(iii): negotiations regarding afree trade, including
202(b)(2) (A) and (C) to the transition government in Cuba
the accession of Cuba to the North American Free
under the plan of assistance developed under section 202(b),
Trade Agreement;
the types of such assistance, and the extent to which such
(C) specific trade negotiating objectives of the United
assistance has been distributed in accordance. with the plan.
States with respect to Cuba, including the objectives
(B) The President shall transmit the report later than
described in section 108(b)(5) of the North American Free
90. days after. making the determination referred to in para
Trade Agreement Implementation Act (19 U.S.C
graph (1), except that the President shall transmit the report
in preliminary form not later than 5*days after making that
3317(b)(5)); and
determination.
(D) actions proposed or anticipated to: be undertaken,
(3) IMPLEMENTATION WITH RESPECT TO DEMOCRATICALLY
and any proposed legislation necessary or appropriate, to
ELECTED GOVERNMENT.-The President shall, upon determining
achieve any of such policy and negotiating objectives.
that a democratically elected government in Cuba is in power,
(2) CONSULTATION.-The President shall consult with the
submit that determination to the appropriate congressional
Committee on Ways and Means of the House of Representatives
committees and shall, subject to an authorization of appropria-
and the Committee on Finance of the Senate and the appro-
tions and subject to the availability of appropriations, com-
priate congressional committees and shall seek advice from
mence the delivery and distribution of assistance to such demo-
the appropriate advisory committees established under section
cratically elected government under the plan developed under
135 of the Trade Act of 1974 regarding the policy and negotiat-
section 202(b).
ing objectives and the legislative proposals described in para-
(4) ANNUAL REPORTS TO CONGRESS.-Not later than 60
graph (1).
days after the end of each fiscal year, the President shall
transmit to the appropriate congressional committees a report
110 STAT. 808
110 STAT. 809
LAWS OF 104th CONG.-2nd SESS.
Mar. 12
Mar. 12
CUBAN LIBERTY ACT
P.L. 104-114
on the assistance provided under the plan developed under
Sec. 205
section 202(b), including a description of each type of assistance.
203(c)(3) that a democratically elected government in Cuba
the amounts expended for such assistance, and a description
is in power, on the progress being made by Cuba toward the
of the assistance to be provided under the plan in the current
establishment of such a democratically elected government.
fiscal year.
The action of the President under subsection (a) shall cease
(d) REPROGRAMMING.-Any changes in the assistance to be pro-
to be effective upon the enactment of a joint resolution described
vided under the plan developed under section 202(b) may not be
in paragraph (2).
made unless the President notifies the appropriate congressional
(2) JOINT RESOLUTIONS.-For purposes of this subsection,
committees at least 15 days in advance in accordance with the
the term "joint resolution" means only a joint resolution of
procedures applicable to reprogramming notifications under section
the 2 Houses of Congress, the matter after the resolving clause
634A of the Foreign Assistance Act of 1961 (22 U.S.C. 2394-1).
of which is as follows: "That the Congress disapproves the
action of the President under section 204(a) of the Cuban Lib-
SEC. 204. TERMINATION OF THE ECONOMIC EMBARGO OF CUBA.
erty and Democratic Solidarity (LIBERTAD) Act of 1996 to
(a) PRESIDENTIAL ACTIONS.-Upon submitting a determination
suspend the economic embargo of Cuba, notice of which was
to the appropriate congressional committees under section 203(c)(1)
submitted to the Congress on
with
the
blank
space
that a transition government in Cuba is in power, the President,
being filled with the appropriate date.
after consultation with the Congress, is authorized to take steps
(3) REFERRAL TO COMMITTEES.-Joint resolutions intro-
to suspend the economic embargo of Cuba and to suspend the
duced in the House of Representatives shall be referred to
right of action created in section 302 with respect to actions there-
the Committee on International Relations and joint resolutions
after filed against the Cuban Government, to the extent that such
introduced in the Senate shall be referred to the Committee
steps contribute to a stable foundation for a democratically elected
on Foreign Relations.
government in Cuba.
(4) PROCEDURES.-(A) Any joint resolution shall be consid-
(b) SUSPENSION OF CERTAIN PROVISIONS OF LAW.-In carrying
ered in the Senate in accordance with the provisions of section
out subsection (a), the President may suspend the enforcement
601(b) of the International Security Assistance and Arms
f-
Export Control Act of 1976.
(1) section 620(a) of the Foreign Assistance Act of 1961
(B) For the purpose of expediting the consideration and
(22 U.S.C. 2370(a));
enactment of joint resolutions, a motion to proceed to the consid-
(2) section 620(f) of the Foreign Assistance Act of 1961
eration of any joint resolution after it has been reported by
(22 U.S.C. 2370(f)) with respect to the "Republic of Cuba";
the appropriate committee shall be treated as highly privileged
(3) sections 1704, 1705(d), and 1706 of the Cuban Democ-
in the House of Representatives.
racy Act of 1992 (22 U.S.C. 6003, 6004(d), and 6005);
(C) Not more than 1 joint resolution may be considered
(4) section 902(c) of the Food Security Act of 1985; and
in the House of Representatives and the Senate in the 6-
(5) the prohibitions on transactions described in part 515
month period beginning on the date on which the President
of title 31, Code of Federal Regulations.
notifies the Congress under paragraph (1) of the action taken
(c) ADDITIONAL PRESIDENTIAL ACTIONS.-Upon submitting a
under subsection (a), and in each 6-month period thereafter.
etermination to the appropriate congressional committees under
ection 203(c)(3) that a democratically elected government in Cuba
SEC. 205. REQUIREMENTS AND FACTORS FOR DETERMINING A TRANSI-
in power, the President shall take steps to terminate the economic
TION GOVERNMENT.
mbargo of Cuba, including the restrictions under part 515 of title
(a) REQUIREMENTS.-For the purposes of this Act, a transition
1, Code of Federal Regulations.
government in Cuba is a government that-
(d) CONFORMING AMENDMENTS.-On the date on which the
resident submits a determination under section 203(c)(3)-
(1) has legalized all political activity;
(1) section 620(a) of the Foreign Assistance Act of 1961
(2) has released all political prisoners and allowed for inves-
(22 U.S.C. 2370(a)) is repealed;
tigations of Cuban prisons by appropriate international human
rights organizations;
(2) section 620(f) of the Foreign Assistance Act of 1961
(22 U.S.C. 2370(f)) is amended by striking "Republic of Cuba";
(3) has dissolved the present Department of State Security
(3) sections 1704, 1705(d), and 1706 of the Cuban Deinoc-
in the Cuban Ministry of the Interior, including the Committees
racy Act of 1992 (22 U.S.C. 6003, 6004(d). and 6005) are
for the Defense of the Revolution and the Rapid Response
Brigades; and
repealed; and
(4) section 902(c) of the Food Security Act of 1985 is
(4) has made public commitments to organizing free and
repealed.
fair elections for a new government-
(e) REVIEW OF SUSPENSION OF ECONOMIC EMBARGO.-
(A) to be held in a timely manner within a period
(1) REVIEW.- the President takes action under subsection
not to exceed 18 months after the transition government
(a) to suspend the economic embargo of Cuba, the President
assumes power;
shall immediately so notify the Congress. The President shall
(B) with the participation of multiple independent
report to the Congress no less frequently than every 6 months
political parties that have full access to the media on
thereafter, until he submits a determination under section
an equal basis, including (in the case of radio, television,
or other telecommunications media) in terms of allotments
110 STAT. 810
110 STAT. 811
LAWS OF 104th CONG.-2nd SESS.
Mar. 12
Mar. 12
CUBAN LIBERTY ACT
P.L. 104-114
Sec. 207
of time for such access and the times of day such allotments
(A) conducted under the supervision of internationally
are given; and
recognized observers; and
(C) to be conducted under the supervision of inter-
(B) in which-
nationally recognized observers, such as the Organization
(i) opposition parties were permitted ample time
of American States, the United Nations, and other election
to organize and campaign for such elections; and
monitors;
(ii) all candidates were permitted full access to
(5) has ceased any interference with Radio Marti or Tele-
the media;
vision Marti broadcasts;
(2) is showing respect for the basic civil liberties and human
(6) makes public commitments to and is making demon-
rights of the citizens of Cuba;
strable progress in-
(3) is substantially moving toward a market-oriented eco-
(A) establishing an independent judiciary;
nomic system based on the right to own and enjoy property;
(B) respecting internationally recognized human rights
(4) is committed to making constitutional changes that
and basic freedoms as set forth in the Universal Declaration
would ensure regular free and fair elections and the full enjoy-
of Human Rights, to which Cuba is a signatory nation;
ment of basic civil liberties and human rights by the citizens
(C) allowing the establishment of independent trade
of Cuba;
unions as set forth in conventions 87 and 98 of the Inter-
(5) has made demonstrable progress in establishing an
national Labor Organization, and allowing the establish-
independent judiciary; and
ment of independent social, economic, and political associa-
(6) has made demonstrable progress in returning to United
States citizens (and entities which are 50 percent or more
(7) tions; does not include Fidel Castro or Raul Castro; and
beneficially owned by United States citizens) property taken
(8) has given adequate assurances that it will allow the
by the Cuban Government from such citizens and entities on
speedy and efficient distribution of assistance to the Cuban
or after January 1, 1959, or providing full compensation for
(b) people. ADDITIONAL FACTORS.-In addition to the requirements in
such property in accordance with international law standards
and practice.
subsection (a), in determining whether a transition government
in Cuba is in power, the President shall take into account the
SEC. 207. SETTLEMENT OF OUTSTANDING UNITED STATES CLAIMS TO
CONFISCATED PROPERTY IN CUBA.
extent to which that government-
(1) is demonstrably in transition from a communist totali-
(a), REPORT TO CONGRESS.-Not later than-180 days after the
tarian dictatorship to representative democracy;
date of the (enactment of this Act the Secretary of State: shall
(2) has made public commitments to, and is making demon-
provide report to the appropriate congressional committees
strable progress in-
containing an assessment of the property dispute question in Cuba,
(A) effectively guaranteeing the rights of free speech
including-
and freedom of the press, including granting permits to
(1) an estimate of the number and amount of claims to
privately owned media and telecommunications companies
property confiscated by the Cuban Government that are held
to operate in Cuba;
by United States nationals in addition to those claims certified
(B) permitting the reinstatement of citizenship to
under section 507 of the International Claims Settlement Act
Cuban-born persons returning to Cuba;
of 1949;
(C) assuring the right to private property; and
(2) an assessment of the significance of promptly resolving
(D) taking appropriate steps to return to United States
confiscated property claims to the revitalization of the Cuban
citizens (and entities which are 50 percent or more bene-
economy;
ficially owned by United States citizens) property taken
(3) a review and evaluation of technical and other assist-
by the Cuban Government from such citizens and entities
ance that the United States could provide to help either a
on or after January 1, 1959, or to provide equitable com-
transition government in Cuba or a democratically elected
pensation to such citizens and entities for such property;
government in Cuba establish mechanisms to resolve property
(3) has extradited or otherwise rendered to the United
questions;
States all persons sought by the United States Department
(4) an assessment of the role and types of support the
of Justice for crimes committed in the United States; and
United States could provide to help resolve claims to property
(4) has permitted the deployment throughout Cuba of
confiscated by the Cuban Government that are held by United
independent and unfettered international human rights mon-
States nationals who did not receive or qualify for certification
itors.
under section 507 of the International Claims Settlement Act
of 1949; and
SEC. 206. REQUIREMENTS FOR DETERMINING A DEMOCRATICALLY
(5) an assessment of any areas requiring legislative review
ELECTED GOVERNMENT.
or action regarding the resolution of property claims in Cuba
For purposes of this Act, a democratically elected government
prior to a change of government in Cuba.
in Cuba, in addition to meeting the requirements of section 205(a),
(d) SENSE OF CONGRESS.-It is the sense of the Congress that
is a government which-
the satisfactory resolution of property claims by a Cuban Govern-
(1) results from free and fair elections-
ment recognized by the United States remains an essential condition
110 STAT. 812
110 STAT. 813
LAWS OF 104th CONG.-2nd SESS.
Mar. 12
Mar. 12
CUBAN LIBERTY ACT
P.L. 104-114
Sec. 302
for the full resumption of economic and diplomatic relations between
(9) International law recognizes that a nation has the abil-
the United States and Cuba.
ity to provide for rules of law with respect to conduct outside
its territory that has or is intended to have substantial effect
TITLE III-PROTECTION OF PROPERTY
within its territory.
(10) The United States Government has an obligation to
RIGHTS OF UNITED STATES NATIONALS
its citizens to provide protection against wrongful confiscations
by foreign nations and their citizens, including the provision
of private remedies.
SEC. 301. FINDINGS.
(11) To deter trafficking in wrongfully confiscated property,
The Congress makes the following findings:
United States nationals who were the victims of these
(1) Individuals enjoy a fundamental right to own and enjoy
confiscations should be endowed with a judicial remedy in
property which is enshrined in the United States Constitution.
the courts of the United States that would deny traffickers
(2) The wrongful confiscation or taking of property belong-
any profits from economically exploiting Castro's wrongful sei-
ing to United States nationals by the Cuban Government, and
zures.
the subsequent exploitation of this property at the expense
of the rightful owner, undermines the comity of nations, the
SEC. 302. LIABILITY FOR TRAFFICKING IN CONFISCATED PROPERTY
free flow of commerce, and economic development.
CLAIMED BY UNITED STATES NATIONALS.
(3) Since Fidel Castro seized power in Cuba in 1959-
(a) CIVIL REMEDY.-
(A) he has trampled on the fundamental rights of the
(1) LIABILITY FOR TRAFFICKING.-(A) Except as otherwise
Cuban people; and
provided in this section, any person that, after the end of
(B) through his personal despotism, he has confiscated
the 3-month period beginning on the effective date of this
the property of-
title, traffics in property which was confiscated by the Cuban
(i) millions of his own citizens;
Government on or after January 1, 1959, shall be liable to
(ii) thousands of United States nationals; and
any United States national who owns the claim to such property
(iii) thousands more Cubans who claimed asylum
for money damages in an amount equal to the sum of-
in the United States as refugees because of persecution
(i) the amount which is the greater of-
and later became naturalized citizens of the United
(I) the amount, if any, certified to the claimant
States.
by the Foreign Claims Settlement Commission under
(4) It is in the interest of the Cuban people that the
the International Claims Settlement Act of 1949, plus
Cuban Government respect equally the property rights of
interest;
Cuban nationals and nationals of other countries.
(II) the amount determined under section
(5) The Cuban Government is offering foreign investors
303(a)(2), plus interest; or
the opportunity to purchase an equity interest in, manage,
(III) the fair market value of that property, cal-
or enter into joint ventures using property and assets some
culated as being either the current value of the prop-
of which were confiscated from United States nationals.
erty, or the value of the property when confiscated
(6) This "trafficking" in confiscated property provides badly
plus interest, whichever is greater; and
needed financial benefit, including hard currency, oil, and
(ii) court costs and reasonable attorneys' fees.
productive investment and expertise, to the current Cuban
(B) Interest under subparagraph (A)(i) shall be at the rate
Government and thus undermines the foreign policy of the
set forth in section 1961 of title 28, United States Code, com-
United States-
puted by the court from the date of confiscation of the property
(A) to bring democratic institutions to Cuba through
involved to the date on which the action is brought under
the pressure of a general economic embargo at a time
this subsection.
when the Castro regime has proven to be vulnerable to
(2) PRESUMPTION IN FAVOR OF THE CERTIFIED CLAIMS.-
international economic pressure; and
There shall be a presumption that the amount for which a
(B) to protect the claims of United States nationals
person is liable under clause (i) of paragraph (1)(A) is the
who had property wrongfully confiscated by the Cuban
amount that is certified as described in subclause (I) of that
Government.
clause. The presumption shall be rebuttable by clear and
(7) The United States Department of State has notified
convincing evidence that the amount described in subclause
other governments that the transfer to third parties of prop-
(II) or (III) of that clause is the appropriate amount of liability
erties confiscated by the Cuban Government "would complicate
under that clause.
any attempt to return them to their original owners".
(3) INCREASED LIABILITY.-(A) Any person that traffics in
(8) The international judicial system, as currently struc-
confiscated property for which liability is incurred under para-
tured, lacks fully effective remedies for the wrongful
graph (1) shall, if a United States national owns a claim with
confiscation of property and for unjust enrichment from the
respect to that property which was certified by the Foreign
use of wrongfully confiscated property by governments and
Claims Settlement Commission under title V of the Inter-
private entities at the expense of the rightful owners of the
national Claims Settlement Act of 1949, be liable for damages
property.
computed in accordance with subparagraph (C).
110 STAT. 814
110 STAT. 815
LAWS OF 104th CONG.-2nd SESS.
Mar. 12
CUBAN LIBERTY ACT
P.L. 104-114
Mar. 12
Sec. 302
action was timely filed with the Foreign Claims Settlement
(B) If the claimant in an action under this subsection
Commission under title V of the International Claims Settle-
(other than a United States national to whom subparagraph
ment Act of 1949 but was denied by the Commission, the
(A) applies) provides, after the end of the 3-month period
described in paragraph (1) notice to-
court shall accept the findings of the Commission on the claim
as conclusive in the action under this section.
(i) a person against whom the action is to be initiated,
(C) A United States national, other than a United States
or
(ii). a person who is to be joined as a defendant in
national bringing an action under this section on a claim cer-
the action,
tified under title V of the International Claims Settlement
at least 30 days before initiating the action or joining such
Act of 1949, may not bring an action on a claim under this
section before the end of the 2-year period beginning on the
person as a defendant, as the case may be, and that person,
after the end of the 30-day period beginning on the date the
date of the enactment of this Act.
notice is provided, traffics in the confiscated property that
(D) An interest in property for which a United States
is the subject of the action, then that person shall be liable
national has a claim certified under title V of the International
to that claimant for damages computed in accordance with
Claims Settlement Act of 1949 may not be the subject of a
subparagraph (C).
claim in an action under this section by any other person.
(C) Damages for which a person is liable under subpara-
Any person bringing an action under this section whose claim
graph (A) or subparagraph (B) are money damages in an
has not been so certified shall have the burden of establishing
for the court that the interest in property that is the subject
amount equal to the sum of-
of the claim is not the subject of a claim so certified.
(i) the amount determined under paragraph (1)(A)(ii),
and
(6) INAPPLICABILITY OF ACT OF STATE DOCTRINE.-No court
of the United States shall decline, based upon the act of state
(ii) 3 times the amount determined applicable under
paragraph (1)(A)(i).
doctrine, to make a determination on the merits in an action
(D) Notice to a person under subparagraph (B)-
brought under paragraph (1)
(7) LICENSES NOT REQUIRED.-(A) Notwithstanding any
(i) shall be in writing;
other provision of law, an action under this section may be
(ii) shall be posted by certified mail or personally deliv-
ered to the person; and
brought and may be settled, and a judgment rendered in such
action may be enforced, without obtaining any license or other
(iii) shall contain-
(I) a statement of intention to commence the action
permission from any agency of the United States, except that
under this section or to join the person as a defendant
this paragraph shall not apply to the execution of a judgment
against, or the settlement of actions involving, property blocked
(as the case may be), together with the reasons there-
under the authorities of section 5(b) of the Trading with the
for;
Enemy Act that were being exercised on July 1, 1977, as
(II) a demand that the unlawful trafficking in the
a result of a national emergency declared by the President
claimant's property cease immediately; and
before such date, and are being exercised on the date of the
(III) a copy of the summary statement published
enactment of this Act.
under paragraph (8).
(4) APPLICABILITY.-(A) Except as otherwise provided in
(B) Notwithstanding any other provision of law, and for
this paragraph, actions may be brought under paragraph (1)
purposes of this title only, any claim against the Cuban Govern-
ment shall not be deemed to be an interest in property the
with respect to property confiscated before, on, or after the
transfer of which to a United States national required before
date of the enactment of this Act.
the enactment of this Act, or requires after the enactment
(B) In the case of property confiscated before the date
of this Act, a license issued by, or the permission of, any
of the enactment of this Act, a United States national may
not bring an action under this section on a claim to the con-
agency of the United States.
(8) PUBLICATION BY ATTORNEY GENERAL.-Not later than
fiscated property unless such national acquires ownership of
the claim before such date of enactment.
60 days after the date of the enactment of this Act. the Attorney
General shall prepare and publish in the Federal Register
(C) In the case of property confiscated on or after the
date of the enactment of this Act, a United States national
a concise summary of the provisions of this title, including
a statement of the liability under this title of a person traffick-
who, after the property is confiscated, acquires ownership of
ing in confiscated property, and the remedies available to
a claim to the property by assignment for value, may not
United States nationals under this title.
bring an action on the claim under this section.
(b) AMOUNT IN CONTROVERSY.-An action may be brought under
(5) TREATMENT OF CERTAIN ACTIONS.-(A) In the case of
a United States national who was eligible to file a claim with
this section by a United States national only where the amount
the Foreign Claims Settlement Commission under title V of
in controversy exceeds the sum or value of $50,000, exclusive of
the International Claims Settlement Act of 1949 but did not
interest, costs, and attorneys' fees. In calculating $50,000 for pur-
poses of the preceding sentence, the applicable amount under
so file the claim, that United States national may not bring
subclause (I), (II), or (III) of subsection (a)(1)(A)(i) may not be
an action on that claim under this section.
(B) In the case of any action brought under this section
tripled as provided in subsection (a)(3).
(c) PROCEDURAL REQUIREMENTS.-
by a United States national whose underlying claim in the
110 STAT. 817
110 STAT. 816
LAWS OF 104th CONG.-2nd SESS.
Mar. 12
Mar. 12
CUBAN LIBERTY ACT
P.L. 104-114
Sec. 303
(1) IN GENERAL.-Except as provided in this title. the provi-
the amount of the recovery and the amount of the certified
sions of title 28, United States Code, and the rules of the
claim; and
courts of the United States apply to actions under this section
(iii) if there is no recovery in the action, the United
to the same extent as such provisions and rules apply to any
States national may receive payment on the certified claim
other action brought under section 1331 of title 28, United
under a claims agreement described in clause (i) to the
States Code.
same extent as any certified claimant who does not bring
(2) SERVICE OF PROCESS.-In an action under this section,
an action under this section.
service of process on an agency or instrumentality of a foreign
(B) In the event some or all actions brought under this
state in the conduct of a commercial activity, or against individ-
section are consolidated by judicial or other action in such
uals acting under color of law, shall be made in accordance
manner as to create a pool of assets available to satisfy the
with section 1608 of title 28, United States Code.
claims in such actions, including a pool of assets in a proceeding
(d) ENFORCEABILITY OF JUDGMENTS AGAINST CUBAN GOVERN-
in bankruptcy, every claimant whose claim in an action so
MENT.-In an action brought under this section. any judgment
consolidated was certified by the Foreign Claims Settlement
against an agency or instrumentality of the Cuban Government
Commission under title V of the International Claims Settle-
shall not be enforceable against an agency or instrumentality of
ment Act of 1949 shall be entitled to payment in full of its
either a transition government in Cuba or a democratically elected
claim from the assets in such pool before any payment is
government in Cuba.
made from the assets in such pool with respect to any claim
(e) CERTAIN PROPERTY IMMUNE FROM EXECUTION.-Section
not so certified.
1611 of title 28, United States Code, is amended by adding at
(g) DEPOSIT OF EXCESS PAYMENTS BY CUBA UNDER CLAIMS
the end the following new subsection:
AGREEMENT.-Any amounts paid by Cuba under any agreement
"(c) Notwithstanding the provisions of section 1610 of this chap-
entered into between the United States and Cuba settling certified
ter, the property of a foreign state shall be immune from attachment
claims under title V of the International Claims Settlement Act
and from execution in an action brought under section 302 of
of 1949 that are in excess of the payments made on such certified
the Cuban Liberty and Democratic Solidarity (LIBERTAD) Act of
claims after the application of subsection (f) shall be deposited
1996 to the extent that the property is a facility or installation
into the United States Treasury.
used by an accredited diplomatic mission for official purposes.".
(h) TERMINATION OF RIGHTS.-
(f) ELECTION OF REMEDIES.-
(1) IN GENERAL.-All rights created under this section to
(1) ELECTION.-Subject to paragraph (2)-
bring an action for money damages with respect to property
(A) any United States national that brings an action
confiscated by the Cuban Government-
under this section may not bring any other civil action
(A) may be suspended under section 204(a); and
or proceeding under the common law, Federal law, or the
(B) shall cease upon transmittal to the Congress of
law of any of the several States, the District of Columbia,
a determination of the President under section 203(c)(3)
or any commonwealth, territory, or possession of the United
that a democratically elected government in Cuba is in
States, that seeks monetary or nonmonetary compensation
power.
by reason of the same subject matter; and
(2) PENDING SUITS.-The suspension or termination of
(B) any person who brings, under the common law
rights under paragraph (1) shall not affect suits commenced
or any provision of law other than this section, a civil
before the date of such suspension or termination (as the case
action or proceeding for monetary or nonmonetary com-
may be), and in all such suits, proceedings shall be had, appeals
pensation arising out of a claim for which an action would
taken, and judgments rendered in the same manner and with
otherwise be cognizable under this section may not bring
the same effect as if the suspension or termination had not
an action under this section on that claim.
occurred.
(2) TREATMENT OF CERTIFIED CLAIMANTS.-(A) In the case
(i) IMPOSITION OF FILING FEES.-The Judicial Conference of
of any United States national that brings an action under
the United States shall establish a uniform fee that shall be imposed
this section based on a claim certified under title V of the
upon the plaintiff or plaintiffs in each action brought under this
International Claims Settlement Act of 1949-
section. The fee should be established at a level sufficient to recover
(i) if the recovery in the action is equal to or greater
the costs to the courts of actions brought under this section. The
than the amount of the certified claim, the United States
fee under this subsection is in addition to any other fees imposed
national may not receive payment on the claim under any
under title 28, United States Code.
agreement entered into between the United States and
Cuba settling claims covered by such title, and such
SEC. 303. PROOF OF OWNERSHIP OF CLAIMS TO CONFISCATED PROP-
national shall be deemed to have discharged the United
ERTY.
States from any further responsibility to represent the
(a) EVIDENCE OF OWNERSHIP.-
United States national with respect to that claim;
(1) CONCLUSIVENESS OF CERTIFIED CLAIMS.-In any action
(ii) if the recovery in the action is less than the amount
brought under this title, the court shall accept as conclusive
of the certified claim, the United States national may
proof of ownership of an interest in property a certification
receive payment under a claims agreement described in
of a claim to ownership of that interest that has been made
clause (i) but only to the extent of the difference between
by the Foreign Claims Settlement Commission under title V
110 STAT. 818
110 STAT. 819
LAWS OF 104th CONG.-2nd SESS.
Mar. 12
Mar. 12
CUBAN LIBERTY ACT
P.L. 104-114
Sec. 306
of the International Claims Settlement Act of 1949 (22 U.S.C.
SEC. 304. EXCLUSIVITY OF FOREIGN CLAIMS SETTLEMENT COMMIS-
1643 and following).
SION CERTIFICATION PROCEDURE
(2) CLAIMS NOT CERTIFIED.-If in an action under this
Title V of the International Claims Settlement Act of 1949
title a claim has not been so certified by the Foreign Claims
(22 U.S.C. 1643 and following), as amended by section 303, is
Settlement Commission, the court may appoint a special mas-
further amended by adding at the end the following new section:
ter, including the Foreign Claims Settlement Commission, to
make determinations regarding the amount and ownership of
"EXCLUSIVITY OF FOREIGN CLAIMS SETTLEMENT COMMISSION
the claim. Such determinations are only for evidentiary pur-
CERTIFICATION PROCEDURE
poses in civil actions brought under this title and do not con-
stitute certifications under title V of the International Claims
"SEC. 515. (a) Subject to subsection (b), neither any national
Settlement Act of 1949.
of the United States who was eligible to file a claim under section
(3) EFFECT OF DETERMINATIONS OF FOREIGN OR INTER-
503 but did not timely file such claim under that section, nor
NATIONAL ENTITIES.-In determining the amount or ownership
any person who was ineligible to file a claim under section 503,
of a claim in an action under this title, the court shall not
nor any national of Cuba, including any agency, instrumentality,
accept as conclusive evidence any findings, orders, judgments,
subdivision, or enterprise of the Government of Cuba or any local
or decrees from administrative agencies or courts of foreign
government of Cuba, nor any successor thereto, whether or not
countries or international organizations that declare the value
recognized by the United States, shall have a claim to, participate
of or invalidate the claim, unless the declaration of value or
in, or otherwise have an interest in, the compensation proceeds
invalidation was found pursuant to binding international
or nonmonetary compensation paid or allocated to a national of
arbitration to which the United States or the claimant submit-
the United States by virtue of a claim certified by the Commission
ted the claim.
under section 507, nor shall any district court of the United States
(b) AMENDMENT OF THE INTERNATIONAL CLAIMS SETTLEMENT
have jurisdiction to adjudicate any such claim.
ACT OF 1949.-Title V of the International Claims Settlement Act
"(b) Nothing in subsection (a) shall be construed to detract
from or otherwise affect any rights in the shares of capital stock
of 1949 (22 U.S.C. 1643 and following) is amended by adding
of nationals of the United States owning claims certified by the
at the end the following new section:
Commission under section 507.".
"DETERMINATION OF OWNERSHIP OF CLAIMS REFERRED BY DISTRICT
SEC. 305. LIMITATION OF ACTIONS.
COURTS OF THE UNITED STATES
An action under section 302 may not be brought more than
2 years after the trafficking giving rise to the action has ceased
"SEC. 514. Notwithstanding any other provision of this Act
to occur.
and only for purposes of section 302 of the Cuban Liberty and
Democratic Solidarity (LIBERTAD) Act of 1996, a United State
SEC. 306. EFFECTIVE DATE.
district court, for fact-finding purposes, may refer to the Commis-
(a) IN GENERAL.Subject to subsections (b) and (c), this title
sion, and the Commission may determine, questions of the amount
and the amendments made by this title shall take effect on August
and ownership of a claim by a United States national (as defined
1, 1996.
in section 4 of the Cuban Liberty and Democratic Solidarity
(b) SUSPENSION AUTHORITY.-
(LIBERTAD) Act of 1996), resulting from the confiscation of prop-
(1) SUSPENSION AUTHORITY.-The President may. suspend
erty by the Government of Cuba described in section 503(a), whether
the effective date under subsectionI(a) for a period of not
or not the United States national qualified as a national of the
more than 6 months the President determines and reports
United States (as defined in section 502(1)) at the time of the
in writing to the appropriate congressional committees at least
action by the Government of Cuba.".
15 days before such effective date that the suspension is nec-
(c) RULE OF CONSTRUCTION.-Nothing in this Act or in section
essary to the national interests of the United States and will
514 of the International Claims Settlement Act of 1949, as added
expedite a transition to democracy in Cuba.
by subsection (b), shall be construed—
(2) ADDITIONAL SUSPENSIONS. The President may suspend
(1) to require or otherwise authorize the claims of Cuban
the effective date under subsection (a) for additional periods
nationals who became United States citizens after their prop-
of not more than 6 months each, each of which shall begin
erty was confiscated to be included in the claims certified
on the day after the last day of the period during which a
to the Secretary of State by the Foreign Claims Settlement
suspension is in effect under this subsection, if the President
Commission for purposes of future negotiation and espousal
determines and reports in writing to the appropriate congres-
of claims with a friendly government in Cuba when diplomatic
sional committees at least 15 days before the date on which
relations are restored; or
the additional suspension is to begin that the suspension is
(2) as superseding, amending, or otherwise altering certifi-
necessary to the national interests of the United States and
cations that have been made under title V of the International
will expedite a transition to democracy in Cuba.
(c) OTHER AUTHORITIES.-
Claims Settlement Act of 1949 before the date of the enactment
(1) SUSPENSION.-After this title and the amendments of
of this Act.
this title have taken effect-
110 STAT. 820
110 STAT. 821
LAWS OF 104th CONG.-2nd SESS.
Mar. 12
Mar. 12
CUBAN LIBERTY ACT
P.L. 104-114
Sec. 401
(A) no person shall acquire a property interest in any
potential or pending action under this title; and
(b) DEFINITIONS.-As used in this section, the following terms
(B) the President may suspend the right to bring an
have the following meanings:
action under this title with respect to confiscated property
(1) CONFISCATED; CONFISCATION.-The terms "confiscated"
for a period of not more than 6 months if the President
and "confiscation" refer to-
determines and reports in writing to the appropriate
(A) the nationalization, expropriation, or other seizure
congressional committees at least 15 days before the
by the Cuban Government of ownership or control of prop-
suspension takes effect that such suspension is necessary
erty-
to the national interests of the United States and will
(i) without the property having been returned or
expedite a transition to democracy in Cuba.
adequate and effective compensation provided; or
(2) ADDITIONAL SUSPENSIONS.-The President may suspend
(ii) without the claim to the property having been
the right to bring an action under this title for additional
settled pursuant to an international claims settlement
periods of not more than 6 months each, each of which shall
agreement or other mutually accepted settlement
begin on the day after the last day of the period during which
procedure; and
a suspension is in effect under this subsection, if the President
(B) the repudiation by the Cuban Government of, the
determines and reports in writing to the appropriate congres-
default by the Cuban Government on, or the failure of
sional committees at least 15 days before the date on which
the Cuban Government to pay-
the additional suspension is to begin that the suspension is
(i) a debt of any enterprise which has been
necessary to the national interests of the United States and
nationalized, expropriated, or otherwise taken by the
will expedite a transition to democracy in Cuba.
Cuban Government;
(3) PENDING SUITS.-The suspensions of actions under para-
(ii) a debt which is a charge on property national-
graph (1) shall not affect suits commenced before the date
ized, expropriated, or otherwise taken by the Cuban
of such suspension, and in all such suits, proceedings shall
Government; or
be had, appeals taken, and judgments rendered in the same
(iii) a debt which was incurred by the Cuban
manner and with the same effect as if the suspension had
Government in satisfaction or settlement of a con-
not occurred.
fiscated property claim.
(d) RESCISSION OF SUSPENSION.-The President may rescind
(2) TRAFFICS.-(A) Except as provided in subparagraph (B),
any suspension made under subsection (b) or (c) upon reporting
a person "traffics" in confiscated property if that person know-
to the appropriate congressional committees that doing so will expe-
ingly and intentionally-
dite a transition to deinocracy in Cuba.
(i)(I) transfers, distributes, dispenses, brokers, or other-
wise disposes of confiscated property,
TITLE IV-EXCLUSION OF CERTAIN
(II) purchases, receives, obtains control of, or otherwise
acquires confiscated property, or
ALIENS
(III) improves (other than for routine maintenance),
invests in (by contribution of funds or anything of value,
SEC. 401. EXCLUSION FROM THE UNITED STATES OF ALIENS WHO
other than for routine maintenance), or begins after the
HAVE CONFISCATED PROPERTY OF UNITED STATES
date of the enactment of this Act to manage, lease, possess,
NATIONALS OR WHO TRAFFIC IN SUCH PROPERTY.
use, or hold an interest in confiscated property,
(ii) enters into a commercial arrangement using or
(a) GROUNDS FOR EXCLUSION.-The Secretary of State shall
otherwise benefiting from confiscated property, or
deny a visa to, and the Attorney General shall exclude from the
(iii) causes, directs, participates in, or profits from,
United States, any alien who the Secretary of State determines
is a person who, after the date of the enactment of this Act-
trafficking (as described in clause (i) or (ii)) by another
(1) has confiscated, or has directed or overseen the
person, or otherwise engages in trafficking (as described
confiscation of, property a claim to which is owned by a United
in clause (i) or (ii)) through another person,
States national, or converts or has converted for personal gain
without the authorization of any United States national who
confiscated property, a claim to which is owned by a United
holds a claim to the property.
States national;
(B) The term "traffics" does not include-
(2) traffics in confiscated property, a claim to which is
(i) the delivery of international telecommunication sig-
owned by a United States national;
nals to Cuba;
(3) is a corporate officer, principal, or shareholder with
(ii) the trading or holding of securities publicly traded
a controlling interest of an entity which has been involved
or held, unless the trading is with or by a person deter-
in the confiscation of property or trafficking in confiscated
mined by the Secretary of the Treasury to be a specially
property, a claim to which is owned by a United States national;
designated national;
or
(iii) transactions and uses of property incident to lawful
(4) is a spouse, minor child, or agent of a person excludable
travel to Cuba, to the extent that such transactions and
under paragraph (1), (2), or (3).
uses of property are necessary to the conduct of such travel;
or
110 STAT. 822
110 STAT. 823
P.L. 104-114
LAWS OF 104th CONG.-2nd SESS.
Mar. 12
Sec. 401
(iv) transactions and uses of property by a person
who is both a citizen of Cuba and a resident of Cuba,
and who is not an official of the Cuban Government or
the ruling political party in Cuba.
(c) EXEMPTION.-This section shall not apply where the Sec-
retary of State finds, on a case by case basis, that the entry
into the United States of the person who would otherwise be
excluded under this section is necessary for medical reasons or
for purposes of litigation of an action under title III.
(d) EFFECTIVE DATE.-
(1) IN GENERAL.-This section applies to aliens seeking
to enter the United States on or after the date of the enactment
of this Act.
(2) TRAFFICKING.-This section applies only with respect
to acts within the meaning of "traffics" that occur on or after
the date of the enactment of this Act.
Approved March 12, 1996.
110 STAT. 824
Helms-Burton act -
Cuban Liberty and
Democratic Solidarity act
signed March 12, 1996
Copyright (c) 1996 by UMI Company. All rights reserved.
Access No:
9300087846 ProQuest - The New York Times (R) Ondisc
Title:
PRESIDENT AGREES TO TOUGH NEW SET OF CURBS ON CUBA
Authors:
JERRY GRAY
Source:
The New York Times, Late Edition - Final
Date:
Thursday Feb 29, 1996 Sec: A Foreign Desk p: 1
Length: Long (1255 words)
Subjects:
UNITED STATES INTERNATIONAL RELATIONS; CUBA-INTERNATIONAL
RELATIONS-US; LAW & LEGISLATION; FOREIGN INVESTMENTS;
ECONOMIC CONDITIONS & TRENDS; POLITICS & GOVERNMENT;
AIRLINES & AIRPLANES ; CUBAN-AMERICANS; ELECTION ISSUES;
PRESIDENTIAL ELECTION OF 1996; IMMIGRATION & REFUGEES;
EMBARGOES & ECONOMIC SANCTIONS; CIVIL WAR & GUERRILLA
WARFARE; ASSETS, FROZEN; CUBA; UNITED STATES
Names:
CLINTON, BILL (PRES) ; CASTRO, FIDEL (PRES)
Companies:
BROTHERS TO THE RESCUE
Abstract:
Driven largely by the downing of two civilian American
planes by the Cuba military, Congressional negotiators and
the White House agreed on Feb 28, 1996 on a package of
sanctions intended to punish Fidel Castro by curbing
foreign investment in Cuba. The measure, which President
Clinton had previously opposed, would give the weight of
law to the nearly 40-year-old embargo against Cuba. That
would prevent any president from acting on his own to
loosen or tighten sanctions as relations with Cuba change.
Copyright 1996 The New York Times Company. Data supplied by NEXIS
(R) Service.
Article Text:
WASHINGTON, Feb. 28 -- Driven largely by the downing of two civilian
American planes by the Cuban military, Congressional negotiators and the
White House agreed today on a package of sanctions intended to punish
Fidel Castro by curbing foreign investment in Cuba.
The measure, which President Clinton had opposed until this week, would
give the weight of law to the nearly 40-year-old embargo against Cuba that
has been the policy of every American President since Mr. Castro came to
power. That would prevent any President from acting on his own, as Mr.
Clinton and others have in the past, to loosen or tighten sanctions as
relations with Cuba change.
But the package, the most tangible reaction yet to the downing of the
planes last Saturday, also includes more potent provisions that supporters
said would deter foreign investment in Cuba and thus hasten the downfall
of an ailing regime.
One provision would deny visas to anyone -- corporate officer,
principal, controlling shareholder with a stake in a property
confiscated in the 1959 Cuban revolution from someone who is now a United
States citizen. A senior Administration official saidbillions of dollars'
worth of property now controlled by foreign companies in Cuba could be
affected.
'I don't expect our allies will be pleased with this legislation, but
we believe it advances an important part of our foreign policy,' the
official said.
Another provision would allow American citizens whose property was
confiscated by the Castro Government to file suit in the United States
against any foreign company using that property. But in a concession to
win the support of the Administration, it would give the President the
right to waive that rule every six months to keep the courts from being
choked with lawsuits.
No other nation observes the United States embargo on Cuba. Canadian,
Mexican and French companies, among others, have sizable investments
there. Canada, for example, imports about $225 million of Cuban goods a
year and sends Cuba about $160 million worth of Canadian goods. Canada is
expected to challenge the policy under the North American Free Trade
Agreement.
Only last summer, Secretary of State Warren Christopher recommended that
Mr. Clinton veto this bill. But Cuba's downing of the planes, which had
taken off from Florida, put enormous political pressure on the President
to act decisively. Mr. Clinton only narrowly lost Florida to George Bush
in 1992, and the state is considered a key battleground in this election
year.
On Monday, President Clinton imposed limited sanctions against the
Cuban Government, closing off charter air routes, restricting the
movements of Cuban diplomats in the United States and expanding the
broadcasting range of Radio Marti, the Government-supported anti-Castro
radio station.
But Mr. Clinton's actions were roundly criticized as weak and
ineffective by some Cuban-American leaders, by Congressional Republicans
and by nearly all of the Republican Presidential contenders. And when
Congress reconvened on Tuesday after a nearly monthlong recess, supporters
of the stronger bill moved immediately to revive it.
Most of the corporate giants in the United States, as well as the
United States Chamber of Commerce and the Association of Exporters and
Importers, oppose the measure,
'What we hear from the C.E.O.'s is they feel the legislation will make
it impossible for U.S. companies to develop a position within the Cuban
market, while providing more opportunities for companies in other
countries,' said John S. Kavulick, president of the United States-Cuba
Trade and Economic Council, which represents more than 100 companies.
Other officials said the maker of Bacardi rum, which had vast holdings
in Cuba before the revolution, made a major lobbying effort for the
measure.
Senator Christopher J. Dodd, Democrat of Connecticut and general
chairman of the Democratic Party, said, 'The heart of this bill is special
interest legislation par excellence.
But backers of the legislation touted it as the tool that would drive
President Castro from office after 36 years in power. 'He is on the
ropes,' said Representative Dan Burton, a Republican from Indiana and a
co-sponsor of the bill. 'I think this is the last nail in his coffin.'
Representative Robert G. Torricelli of New Jersey, the senior Democrat
on the International Relations Subcommittee on the Western Hemisphere,
said the measure 'makes continued foreign investment by multinational
corporations in Cuba very unlikely.'
'You can either come to the United States and do business, or you can
choose to do business with Fidel Castro and his $300-per-capita national
income, he said.
A jubilant Senator Jesse Helms of North Carolina, the chairman of the
Senate Foreign Relations Committee and the other co-sponsor of the bill,
said, 'I have one message for Mr. Castro today: adios, Fidel.'
The sponsors said a conference bill would be brought to the floors of
the Senate and the House in the next few days and sent to the White House
by early next week.
President Clinton has indicated he will sign the legislation, which is
formally known as the Cuban Liberty and Democratic Solidarity Act but is
more commonly referred to as the Helms-Burton Act.
Opponents argue that in their haste to punish Mr. Castro, supporters of
the bill are turning Washington's policy on Cuba in the wrong direction.
'We seem to have lost sight of the national interest and how best to
promote it,' said Representative Lee H. Hamilton of Indiana, the senior
Democrat on the House International Relations Committee. 'We are voting
today on a conference report that represents far more than a message. If
enacted, it will cast in concrete policy mistakes that will not be easily
undone.
Mr. Hamilton said that if the legislation were approved, it would
isolate the Cuban people and 'increase the risk of violent upheaval, and
increase the risk of a massive flow of refugees to U.S. shores.'
The legislation puts the Clinton Administration in a political vise. On
one side are Washington's allies, especially Canada, which has long
objected to the unilateral trade embargo against Cuba and the limits it
places on their trade. The bill urges the President to seek an
international embargo against Cuba through the United Nations Security
Council.
But Mr. Clinton is facing more pressure in an election year from
opponents who threaten to turn his Cuban policy into a major political
issue.
'The President, in light of the incident Saturday, believes tightening
the embargo on Cuba is necessary now, both to deal with this incident and
promote our overall goal of Democratic change in Cuba,' said Michael D.
McCurry, the White House spokesman.
Differing versions of the legislation passed the Republican-controlled
House and Senate last fall, but were stalled after the Administration
objected to the lawsuit provision in the House bill.
But the legislation was moved to the political front burner after Cuban
MIG fighters shot down the two civilian planes on Saturday. The Clinton
Administration maintains the planes were shot down in international
airspace; Cuba says they were within its territorial limits.
Four people were aboard the two planes, all of them Cuban-Americans
working with Brothers to the Rescue, a Miami-based group of Cuban exiles
opposed to the Castro Government who have harassed Cuba before. Officials
say the four were presumably killed.
F.B.I. Says Pilot Was Informant
Copyright (c) 1996 by UMI Company. All rights reserved.
Access No:
9300089137 ProQuest - The New York Times (R) Ondisc
Title:
A BAD BILL ON CUBA
Source:
The New York Times, Late Edition - Final
Date:
Saturday Mar 2, 1996 Sec: 1 Editorial Desk p: 18
Length: Medium (605 words) Type: EDITORIAL
Subjects:
EDITORIALS; LAW & LEGISLATION; UNITED STATES INTERNATIONAL
RELATIONS; CUBA-INTERNATIONAL RELATIONS-US; EMBARGOES;
CUBA; UNITED STATES
Names:
CLINTON, BILL (PRES) ; HELMS, JESSE (SEN) i BURTON, DAN (REPR)
Companies:
BROTHERS TO THE RESCUE (ORGN)
Copyright 1996 The New York Times Company. Data supplied by NEXIS
(R) Service.
Article Text:
The Clinton Administration has done many things right and one thing
terribly wrong in response to Cuba's shootdown of two unarmed planes flown
by Miami-based exiles.
Providing a Coast Guard escort to accompany an exile flotilla to the
site of the downing today registers American determination to protect the
security of international waters and airspace. Equally important, it
minimizes the risk of either the exiles' or Havana's provoking a new
incident. The Administration's decision earlier this week to suspend
charter flights to Cuba and to impose travel restrictions on Cuban
diplomats in this country made clear that Havana had attacked not just
anti-Castro activists but international law itself.
However, the Administration is about to make a huge mistake by signing
into law a bill, sponsored by Senator Jesse Helms and Representative Dan
Burton, that aims to coerce other countries into joining the American
embargo of Cuba. By dropping his opposition to the bill, Mr. Clinton junks
his own balanced policy for encouraging democracy in Cuba and signs on to
an approach that will inevitably slow the opening of Cuban society and
pick a pointless quarrel with American allies.
The bill threatens foreign companies with lawsuits and their executives
with exclusion from American soil if they use any property in Cuba ever
confiscated from anyone who is now a United States citizen. Some of its
provisions appear to violate international law and trade treaties, and the
Administration had been saying since last summer that it would veto the
measure unless these provisions were removed.
The United States is the only country that maintains an economic
embargo against Cuba, an outdated policy that has failed in 35 years to
topple the Castro Government. Trying to coerce other countries to join the
embargo is offensive to American allies and unlikely to succeed.
Backers of the Helms-Burton bill believe the Cuban economy has been so
enfeebled by the loss of subsidized Soviet trade that the Castro regime
can be brought down with one final shove. But Cuba's economy, though
hurting, has already revived from the depths of the early 1990's. Its
recovery has been built on austerity, limited reforms and new trade
relationships with the rest of the world. It is unrealistic to think that
a reinforced American embargo would bring Mr. Castro down.
What Havana really worries about is the resurgence of opposition in
Cuba itself. Opposition groups have been invigorated by Cuba's widened
contacts with the outside world. They are also encouraged by a more
supportive attitude on the part of Miami-based exile organizations. These
used to view all Cubans who remained on the island, even opposition
activists, with suspicion. Now groups like Brothers to the Rescue, the
organization whose planes were shot down last week, see opposition groups
on the island as a key to political change.
The Castro regime is alarmed by this potential link between domestic
opponents and outside support groups, heralded by Brothers to the Rescue's
previous airborne leafletting of Havana. Indeed, Havana's concern over
this prospect may have been a factor in last week's missile attack against
the exiles' planes. Washington should be doing everything it can to
promote opposition within Cuba by encouraging more human interchange
between the island and the outside world, not less:
The Helms-Burton Act is not an appropriate response to Cuba's murderous
deed. It is a wholesale policy reversal that weakens America's ability to
encourage democracy in Cuba. Mr. Clinton should return to his original
sound position.
Article Text:
HAVANA, March 29 Warning of what it described as a campaign by the
United States to 'deceive, confuse and dismantle' the Cuban revolution,
the Cuban Communist Party has called for strengthening ideological and
economic orthodoxy and threatened 'severe punishment' for those who failed
to comply.
The party's Central Committee endorsed a harder political line against
what it said were Washington-supported Trojan horses' and 'fifth
columnists' in its midst. Reports of the rare full session, which was held
last weekendbehind closed doors, only began to emerge this week.
Party leaders also sharply criticized features of the limited opening
of the economy in the last three years, which has rescued the Cuban
economy from the brink of collapse. Instead, they demanded increased
self-reliance and discipline.
The actions come at a moment when relations between Cuba and the United
States are unusually tense, a result of the episode on Feb. 24 in which
the Cuban Air Force shot down two light planes belonging to a Miami-based
Cuban exile group.
In retaliation, President Clinton signed the Helms-Burton Act, which
intensifies and extends the longstanding American economic embargo against
Cuba.
Ordinary Cubans, dissidents and foreign diplomats have expressed
concern at the tone of the documents emerging from the party meeting,
saying they augur a period of increased repression and retrenchment.
'This is a sea change in terms of moving to a much more rigid
ideological position and a much more absolute control by the party of
everything,' said one diplomat here.
In a report to the party conference published this week in Granma, the
official newspaper of the Cuban Communist Party, Defense Minister Raul
Castro, the country's second-most-powerful figure and the President's
brother, argued that Cuba must at all costs avoid reforms of the type that
'undermined the Soviet Union and other socialist countries.'
Self-employed workers and intellectuals here are being used by Cuba's
enemies, he complained, to weaken the authority of the party and the state
and must be brought back into line.
President Fidel Castro led the closed two-day party plenum, the first
since 1992. The full text of his remarks has not yet been made public, but
Granma reported that he had told the 212 members of the Central Committee
that the meeting marked 'the start of an intense ideological battle,'
requiring the mobilization not only of party members 'but of the people as
a whole.'
The effort is necessary because the country is experiencing
'particularly difficult and dangerous moments, warned President Castro,
who is also the head of the Communist Party. 'Revolutionary ideology has
never been more necessary than today.'
Ricardo Alarcon, the Speaker of Parliament, said in an interview that
the Central Committee session was to be followed by 'thousands of meetings
throughout the country to discuss this report' in workplaces and schools.
The Helms-Burton Act will be a main focus of discussion, he said, and
he predicted that the strengthening of the United States sanctions against
Cuba would be especially useful in motivating young people, whose
ideological commitment to the Cuban revolution has flagged considerably in
recent years.
'We are profiting from Helms,' Mr. Alarcon said gleefully. 'He has
served us on a silver plate something that is crucial from an ideological
point of view.
'Of course, we are going to play that card to death.'
Other Cuban officials said the call for ideological orthodoxy reflected
a 'renewed confidence' resulting from a successful sugar harvest and
predictions that the Cuban economy would grow by 5 percent this year,
after contracting by one-third since 1989.
But Vladimiro Roca, a leader of the coalition of dissident and human
rights groups called the Concilio Cubano, contended that the tough line
showed a 'fear and panic among the leadership of losing power.'
The Communist Party views the emergence of a vigorous sector of
self-employed workers as a threat to its absolute control over the
populace, Mr. Roca maintained. The emerging private sector is less
dependent on the state and underlines the inefficiencies of a centralized
economy, he said, and so 'the Government feels it has to brake this.'
In Raul Castro's speech, which was splashed over five pages of Granma
on Wednesday and emphasized in television and radio reports, the Defense
Minister expressed apprehension that the growing number of self-employed
workers 'stimulates old and new forms of criminality' like profiteering
and corruption. The phenomenon also is 'creating the basis for organized
groupings, associations and actions free of the state' that could
'constitute a test tube for the subversive efforts of the enemy, he said.
The solution to that problem, said Carlos Lage, Cuba's chief economic
planner, in another lengthy speech to the conference, is increased
supervision of the embryonic private sector. 'We must guarantee the
control and combat the illicit enrichment' of self-employed workers, he
said.
Mr. Lage also appeared to play down the importance of attracting
foreign involvement in the Cuban economy, arguing that the main source of
growth in the future must come from within, using Cuba's own untapped
resources.
Foreign investment 'is necessary, is important,' he said.
'We have to promote it,' he said, 'but it is not the essential factor
in our economy.'
Officials at Government ministries dealing with economic affairs said
Mr. Lage's remarks did not signal a change in economic strategy and that
reforms would continue, and perhaps even accelerate. But others who work
in sectors dealing with foreigners expressed doubt about his emphasis on
self-reliance and fortifying state control.
'This is a bad sign,' said a young Cuban employed by a private company
that deals with foreign trade. 'We have to have more foreign investment in
order to grow, because we do not have enough capital ourselves.'
Mr. Lage also said that despite the recovery of the Cuban economy,
ordinary Cubans should expect to continue to live with the austerity that
has been the main feature of life here since the collapse of the Soviet
bloc in 1989.
'This is not the moment for wage increases, no matter how justified
they may be, he said.
In his speech, Raul Castro warned of deviations within the Communist
Party itself, singling out for condemnation a respected research institute
called the Center for Studies of America. 'Various comrades were falling
into the spider's web spun by Cuba experts abroad, in reality servants of
the United States and its policy of fomenting a fifth column, he
admonished.
The center is a semi-academic institution that focuses on political and
economic developments in the Western Hemisphere, the United States
included. But economists and political scientists at the institute have
also argued and written in favor of more rapid and profound economic
reforms within Cuba and for dialogue with Washington.
Cuban intellectuals and foreign diplomats here said that a purge of the
institute had begun as a result of Mr. Castro's accusation and that it was
likely to spread to other party research centers he has criticized. The
director of the institute has been replaced by the head of the Communist
Party's polling operations, and other specialists have also been removed
from their posts, they said.
Raul Castro called for a similar campaign in the Government news media,
because 'we lowered our guard' and 'have ceased being vigilant in the
observe of our own rules.' He said some publications used 'a language
supposedly revolutionary that seems intended to serve as a smokescreen for
their true intentions,' which he described as 'a diversionary role.'
Mr. Alarcon defended the dismissals at the institute, saying, 'The
party has a right to say, we don't like this and we are going to make some
changes.' Since the institute had been 'created by the Central Committee
to be a kind of advisory group,' he added, it was perfectly proper to tell
academic experts whose views are considered wrong that 'you are invited to
do something else.'
Caption:
Photo: Cuban leaders have called for a crackdown to enforce ideological
and economic orthodoxy. President Fidel Castro spoke with his brother,
Raul, the Defense Minister, at a meeting of Parliament in December.
(Reuters) (pg. 12)
Copyright (c) 1996 by UMI Company. All rights reserved.
Access No:
9300103940 ProQuest - The New York Times (R) Ondisc
Title:
NEW U.S. CURBS SOUND ALARM FOR CUBA INVESTORS
Authors:
ANTHONY DePALMA
Source:
The New York Times, Late Edition - Final
Date:
Saturday Apr 6, 1996 Sec: 1 Foreign Desk p: 3
Length: Long (1679 words) Illus: Chart, Photo
Subjects:
LAW & LEGISLATION; EMBARGOES & ECONOMIC SANCTIONS; FOREIGN
INVESTMENTS; TELEPHONES & TELECOMMUNICATIONS; CUBA; UNITED
STATES; MEXICO
Companies:
GRUPO DOMOS (MEX)
Copyright 1996 The New York Times Company. Data supplied by NEXIS
(R) Service.
Article Text:
HAVANA Bolted to the front of the old phone company headquarters in
this city's crumbling center is a bronze plaque commemorating Resolution
No. 1 of Cuba's revolutionary Government: the nationalization of the
telephone system on Aug. 6, 1960.
But so much of the old tower's ornate trim is flaking off and coming
down that the sidewalk in front of the building had to be closed.
Both the plaque and the plummeting plasterwork put this relic of
Havana's past squarely in the cross hairs of the latest weapon in the
ideological battle between Cuba and the United States -- the Helms-Burton
Act. The law tightens the 34-year-old embargo against Cuba by trying to
restrict non-American foreign investment here.
Inside the 10-story phone company building are offices of Etecsa, a
joint venture of the Cuban Government and a Mexican company called Grupo
Domos, which bought 49 percent of the decrepit national system in 1994 for
$750 million. It is by far the biggest foreign investment in Cuba since
the Communist Government of Fidel Castro began courting investors.
While company officials say they have no intention of pulling out, they
admit that the uncertainty raised by the new law makes it far more
difficult for them to raise the $300 million they still need to go forward
with their project, which is considered essential for Cuba's development.
Cuba Coming to See Law's Chilling Effect
Shaking confidence in Cuba is exactly what the law's drafters were
after. The Cuban Government initially derided the law as powerless but
later conceded the chilling effect it would have on foreign investment,
while using it as provocation for a crackdown on economic reforms and
political dissent.
The Helms-Burton Act was written and passed after intense pressure from
anti-Castro Cubans in Miami who hoped to undermine the Castro Government.
But many of the most vocal supporters of the bill also operate businesses.
They want to weaken rival businesses, raise the cost of investing in Cuba
and scare off non-American investors so that they can rush in after Mr.
Castro falls and pick up the spoils.
No foreign project has been canceled yet, but international investors
are nervously waiting to see how the United States will enforce the law,
which takes effect Aug. 1, or whether President Clinton will use his
authority to suspend its implementation until after the November
elections.
'We're still doing our evaluations,' said Arturo Lopez, manager of the
Havana Investment Fund, which had raised almost $35 million before the law
was passed. 'This law is going make an investment here a little more
difficult perhaps, but it will not stop it.
Cuban officials say they have attracted $2 billion in foreign
investments, although Western diplomats here estimate the true figure to
be half that. Whatever the real figure, all investments has been thrown
into question by the Helms-Burton Act, which was signed by President
Clinton just weeks after Cuban pilots shot down two unarmed planes flown
by anti-Castro Cuban-Americans on Feb. 24, killing four men.
Many business executives here note that the law could hinder the kind
of transition to a market economy that Washington seems to want. Since
Cubans were given the right to own dollars and foreign companies were
allowed to invest in Cuban businesses, dollars have been buying everything
in Havana, from extra food to a working telephone line.
The 33 exchange at the start of most business telephone numbers here is
now known as the money exchange because it means the holder pays the bill
in dollars, and calls almost always get through. Not far from a sign in
Havana proclaiming 'Socialism or Death' is an outdoor billboard for Adidas
shoes.
Basically, the Helms-Burton Act gives American citizens the right to
sue Domos and other foreign companies in a United States Federal court for
profiting from property that was illegally confiscated during the Cuban
Revolution.
Javier Garza Calderon, president of Domos, said in an interview in
Mexico that he does not believe that the law applies to his company
because he simply rents space in the old phone company building. It is now
owned by the Government but used to belong to the American company ITT and
the Cuban Telephone Company, which it ran, until the revolution. ITT has a
$130 million claim outstanding for all the property it lost in Cuba.
Domos is rapidly renovating alternate space in a building that never
belonged to Americans just in case. But the new law so broadly
interprets deriving benefit from confiscated property it uses the term
'trafficking' that Mr. Garza Calderon concedes that Domos could have
trouble because some equipment, telephone lines and even the heavy black
rotary dial phones still in use in some Cuban households once belonged to
ITT.
'They could be considered to be deriving benefit if a call from Miami
to some woman in Camaguey Province was made on the same old telephone her
grandmother had, said a Western diplomat in Cuba. 'No matter what their
lawyers say, can they be sure that a Federal court somewhere in the United
States will feel the same way?'
Cuban-American leaders in Miami have already installed Domos into what
they call their 'Hall of Shame.
'Here you have a foreign company buying at cut-rate prices property
owned by American citizens, intending to share profits with Fidel Castro
and then laughing all the way to the bank,' said Jorge Mas Canosa, head of
the powerful Cuban American National Foundation.
But Mr. Mas Canosa may have had more than politics in mind. His
Florida-based telecommunications company, Mastec, has been expanding
aggressively in Latin America, and the entrance of the Mexicans represents
increased competition.
Signs of Concern From Many Corners
Domos faces other potential problems. Under the law, Mr. Garza Calderon
and his family could be denied visas to enter the United States, where his
children now study.
Canon, Bayer, Benetton and dozens of other corporations that occupy
space in confiscated Havana mansions also could face similar restrictions
if former property owners have since become American citizens.
The Canadian Government has been among the most vocal opponents of the
new law, asserting that it violates the terms of the North American Free
Trade Agreement. Latinvest Securities reports that stock in the Canadian
mining company Sherritt International, which operates a nickel mine in
Cuba, dropped 24 percent after the two planes were downed.
At first the Cuban Government minimized the effect of the law.
Officials declared outright that there were no American properties in
Cuba, and called the law 'Helms's dream,' after its sponsor, Senator Jesse
Helms, the conservative Republican from North Carolina.
But as investors expressed their concerns, the Government was forced to
reconsider. Roberto de Armas, an economist in the Foreign Ministry, now
concedes that the flow of capital will probably slow until the United
States makes clear how it plans to enforce the law. But he said the
Government's policies will not change.
'The biggest blow to the Americans and their law will be when we give
the figures for economic growth at the end of the year and they see that
growth continues, albeit with problems in some sectors,' Mr. de Armas
said. The expected growth rate for 1996 is between 4 and 5 percent,
depending on the sugar harvest, now under way.
The stakes are high for Mexico, which has taken a lead in Cuban
investments. It was during a state visit by Carlos Salinas de Gortari,
then the President, in June 1994 that the Domos deal was announced. A
project to rebuild the Cienfuegos refinery was also announced then but it
was suspended last September.
An investment like Grupo Domos's was considered an important first step
in strengthening both the Mexican and Cuban economies.
Company Scrambles To Save Its Venture
It turned out that the anchor of Cuba's economy that Domos bought was a
rusting and battered one. For instance, Domos found that when the air
conditioning in critical switching centers failed, workers had simply
opened the windows, letting in dust and salt air that corroded contacts.
Only 18 percent of the long distance calls made to Cuba were completed.
Because Grupo Domos lacked operating experience, it sold 25 percent of
its stake to the Italian phone company Stet last April for $291 million.
Domos wanted an American partner. Since 1992, a change in American law
allowed long distance companies like AT&T and MCI to provide direct
service to Cuba. They are doing so well that on Feb. 26, two days after
the planes were shot down, a record 43,000 calls were registered between
the United States and Cuba.
The signing of the Helms-Burton Act squelched any deal with an American
company. The law specifically prohibits debt-for-equity swaps and bans any
American company from investing in the domestic phone network in Cuba.
Since Domos has already earmarked $180 million for direct investment in
Cuba, it has little choice but to remain. The uncertainty caused by the
Helms-Burton Act makes it virtually impossible for Domos to finance the
$300 million it still owes the Cuban Government. But it now seems that the
Mexican Government, which strongly opposes the new law, will find a way to
help Domos, and Cuba, save face. Although it once turned down Domos, the
Mexican Government's export bank, Bancomext, is expected to come up with a
loan for most of the $300 million.
Mr. Garza Calderon said the Cuban-Americans in Miami who pressured
President Clinton to sign the law are confused. He would like to invite
Mr. Mas Canosa, with whom he does not see eye-to-eye either economically
or politically, to Monterrey to discuss the improvements already made in
Cuba: higher salaries for workers, new switching stations, better service
and more lines.
'It is ridiculous that Mr. Mas Canosa opposes all those benefits for
those Cubans living in Miami and those in Cuba as well,' he said. 'He's
just taking the negative point of view.'
Caption:
Photo: The old telephone company building in Havana, left, is a target
of the new United States law that would allow Americans to sue companies
profiting from illegally confiscated property in Cuba. Barriers at the
building's corner protect pedestrians from falling plaster. (Anthony
DePalma/The New York Times)
Chart: 'A CLOSER LOOK: Sanctions Against Cuba -- The New Arsenal' lists
the major provisions of the Helms-Burton Act.