Still Uncertainty Over What Happened to U.S. Diplomats in Cuba

A lengthy New York Times article reviews the different theories that have been offered about what happened to some U.S. diplomats in Cuba starting in December 2016. The article then concludes by saying that to this date no one really knows the cause(s).[1]

The article, however, presses the question of whether the diplomats symptoms “are primarily psychogenic — or ‘functional’ — in nature. If true, it would mean that the symptoms were caused not by a secret high-tech weapon but by the same confluence of psychological and neurological processes — entirely subconscious yet remarkably powerful — underlying hypnosis and the placebo effect. They are disorders, in other words, not of the brain’s hardware but of its software; not of objective injuries to the brain’s structure but of chronic alterations to how the brain functions, typically following exposure to an illness, a physical injury or stress. . . . [Such disorders are] the most misunderstood, debilitating and denigrated ailments known to medicine.”

Nevertheless, the State Department and the diplomats themselves have rejected this theory.

According to the article, one of the leading experts on such disorders is Dr.Mark Hallett, “who is the Chief of the Medical Neurology Branch and the Human Motor Control Section of the National Institute of Neurological Disorders and Stroke (NINDS), which is part of the National Institutes of Health. He  obtained his A.B. and M.D. at Harvard University, had his internship in Medicine at the Peter Bent Brigham Hospital and his Neurology training at Massachusetts General Hospital plus fellowships in neurophysiology at the NIH and in the Department of Neurology, Institute of Psychiatry in London.”

Last year the National Institutes of Health asked Dr. Hallett to examine the diplomats, but the State Department did not appoint him to the task force for such examinations, and that  Department and NINDS have instructed De. Hallett not to speak with the author of the Times article.

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[1]  Hurley, Was It an Invisible Attack on U.S. diplomats, or Something Stranger?, N.Y. Times (May 15, 2019). This blog has many posts about the issues posed by the medical problems of some U.S. diplomats in Cuba (and more recently in China). See the “U.S. Diplomats’ Medical Problems in Cuba, 2016–??” section of List of Posts to dwkcommentaries—Topical: CUBA.

 

U.S. Reactions to New U.S. Anti-Cuba Policies 

U.S. objections to the new U.S. policies regarding Cuba (and Venezuela and Nicaragua) have been registered by a Bloomberg News editorial; by the U.S. Chamber of Commerce; by Representative Eliot Engel, the Chair of the House Committee on Foreign Affairs and other representatives and by groups and individuals outside the government. They will be discussed first.[1]

Then we will look at support for the policies from three Cuban-American legislators (Sen. Marco Rubio (Rep., FL), Sen. Robert Menendez (Dem., NJ) and Rep.Mario Diaz-Balart (Rep., FL); from Sen. Rick Scott (Rep., FL); and from Walter Russell Mead of the Wall Street Journal.

Given the legitimate current U.S.  preoccupation with the Mueller Report and its implications, there have been no editorials (to date) on these Cuba policy changes in other leading newspapers (New York Times, Washington Post and Wall Street Journal) or by the sponsors of the pending Senate bill to end the U.S. embargo of Cuba (Senators Amy Klobuchar (Dem., MN), Patrick Leahy (Dem., VT) and Mike Enzi (Rep., WY)) or by the Chair of the House ‘s Cuba Working Group Steering Committee (Tom Emmer (Rep., MN).

Critics of the New Policies[2]

  1. The Bloomberg Editorial.

Although it was worthy for the U.S. to seek to persuade Cuba to stop helping Venezuela’s Maduro, Bloomberg says the new policies are “the wrong way to get results.”

In fact, says Bloomberg, the new U.S. policies and actions will “inflict real damage on Cuba,” and  “that’s unlikely to make the country’s rulers budge. Instead, opening the [U.S.] floodgates for litigation against Canadian and European companies doing business in Cuba will fracture the international front against Maduro — not to mention swamping U.S. courts with troublesome lawsuits.” In fact, such litigation is “more an attack on America’s friends than on Cuba or Venezuela.”

Moreover, according to Bloomberg, “Aside from dividing what could have been a U.S.-led coalition [against Venezuela’s Maduro], the new escalation will play into the hands of aging hardliners, encouraging Cuba to seek help from Russia and China, and weaken potent internal forces for change.”

  1. Engage Cuba

Engage Cuba, the leading bipartisan coalition of businesses and others who support U.S.-Cuba normalization, issued the following critical comments:

(Statement by James Williams, President of Engage Cuba)

  • “President Trump is doing this for one reason, and one reason only: to appease fringe hardliners in South Florida ahead of the 2020 election. The only way to get property claimants what they deserve is through diplomatic negotiations, which President Trump just threw off the table. . . This lets the Cuban government off the hook and shifts the burden to American, European and Canadian companies. American companies and our closest allies will now be paying instead of the Cuban government.”
  • “The hypocrisy of the Trump administration cozying up to the most brutal dictatorships in the world in Saudi Arabia, Russia and North Korea, but claiming to care about democracy and human rights in Cuba, is like living in a parallel universe. President Trump himself tried for years to open up a Trump Hotel and golf resort in Cuba.”
  • “U.S. travel and remittances are the lifeblood of the private sector entrepreneurs in Cuba. These restrictions are a cruel betrayal and a knife in the back of Cuban civil society and the prospects for a growing independent private sector in Cuba. The Cuban people are already struggling under tremendous difficulties, and these actions only make it worse. We need a policy that focuses on empowering the Cuban people and advancing American interests, not continuing a 60-year failed policy that only serves fringe domestic politics in South Florida.”

(Property Claim Lawsuits)

  • “The Trump administration has chosen to break precedent with every administration since President Clinton by failing to waive Titles III and IV of the the LIBERTAD Act, commonly referred to as the Helms-Burton Act after its sponsors. When Title III takes effect on May 2, American companies and foreign firms will be subject to lawsuits in U.S. courts over the use of properties that were nationalized by the Cuban government following the 1959 revolution. Title IV will also take effect, requiring the denial of U.S. visas for anyone “trafficking” in confiscated Cuban properties, as well as their relatives.”
  • “In opposition to international law, Title III affords claimant rights to Cuban Americans who were Cuban citizens at the time their property was confiscated. Currently, there are 5,913 certified claims of seized American property in Cuba, but the State Department has estimated there could be a flood of up to 200,000 claims with the full activation of Title III.”
  • “Due to Title III’s potential to jeopardize U.S. trade interests, every U.S. administration since the law’s enactment in 1996 has suspended its implementation, typically for a period of six months. Today’s announcement marks the first time Title III has been fully activated and U.S. firms will be subject to lawsuits.”
  • “Companies from the biggest U.S. trade partners, including the European Union, Canada, and Mexico, will also be subject to property claim lawsuits under Title III, though most countries will protect their companies from having to pay damages to U.S. property claimants. The EU and Canada have threatened retaliation in the World Trade Organization.”
  • “Meanwhile, U.S. adversaries like Russia and China are unlikely to comply with Title III lawsuits and will instead align themselves with Cuba against this extraterritorial U.S. policy. By maintaining a trade embargo, the U.S. has already left a vacuum in Cuba for adversarial influence. As Cuba continues to be isolated by the Trump administration, it will increasingly turn to Russia and China, who offer them favorable credit terms and invest in high-profile projects.”

(New Restrictions on Remittances,Travel, and Financial Transactions)

  • “Bolton also announced there will be new limits on non-family travel to Cuba and U.S. remittances to the island, a heavy blow to Cuba’s nascent private sector (roughly one-third of the workforce) which greatly depends on remittances and U.S. travelers to keep their small businesses alive. Remittances will now be capped at $1,000 per quarter, a dramatic departure from the $4 billion that flowed to the Cuban people after the Obama administration lifted all limits on remittances in 2015.”
  • “Five Cuban government-run businesses will be added to the list of entities with which direct financial transactions are barred. New Department of Treasury regulations will prohibit U.S. banks from processing “U-Turn transactions,” Cuba-related funds transfers from a bank outside the U.S. that pass through U.S. financial institutions before being transferred to banks abroad where neither the originator nor the beneficiary is a U.S. national.”
  1. U.S. Chamber of Commerce

“Six decades of trying to isolate Cuba has failed to bring change to the island, and today’s move only doubles down on this strategy. The U.S. Chamber’s support for a new approach to Cuba is founded in our profound conviction that more engagement with the Cuban people — on the basis of free enterprise and free markets — is essential to democratic change and improvements in the Cuban people’s lives.”

“We strongly support U.S. government efforts to protect the property rights of U.S. citizens abroad, but full implementation of Title III is unlikely to achieve those aims and is instead more likely to result in a protracted legal and diplomatic morass that ensnares U.S. courts, companies and partners. . . . Furthermore, it is difficult to see how this action squares with the administration’s earlier commitment to hold harmless U.S. companies legally authorized and previously encouraged to do business in Cuba.”

“Many American companies will now be subjected to countersuits in Europe, Canada, Latin America, and elsewhere. Today’s announcement threatens to disrupt our trade ties to these countries, which are among our closest allies and best customers. Instead, we should be working with them to make the case for democratic change in Cuba.”

  1. Center for Democracy in the Americas

Another U.S. group that supports U.S.-Cuba normalization, the Center for Democracy in the Americas, said through its executive director (and former Obama National Security Advisor) Emily Mendrala, “Capping remittances is mean-spirited, and can only be understood as the U.S. government’s attempt to create economic hardship among the Cuban people. Ambassador Bolton’s speech conflated Cuba with Venezuela, and he announced a policy approach that does the same. The two countries are different, living through very different moments, and to exploit events in Venezuela to settle Cold War scores with Cuba is a distraction from real needs in Venezuela.”

  1. Cuba Educational Travel

Collin Laverty, president of Cuba Educational Travel, added other critical comments. First, “the measures on remittances and travel threaten the economic survival of Cuban families and the viability of thousands of independent small businesses allowed to operate since 2010 under reforms implemented by former President Raúl Castro.” Second, “The only winners here are a handful of members of Congress and those stuck in the past that support them. The losers are millions of Cubans on and off the island and the overwhelming majority of Americans that support engagement with Cuba.”

  1. Current and Former Federal Government Officials

Representative Eliot Engel (Dem., NY), the Chair of the House Committee on Foreign Affairs, stated, ““President Trump’s rejection of over two decades of bipartisan consensus on a key piece of U.S. policy toward Cuba will further isolate the United States from our Latin American and European allies and diminish our ability to promote democracy in Cuba and Venezuela. Sadly, this decision will do nothing to resolve U.S. property claims in Cuba—an important goal toward which we must continue to strive.”

Similar statements were issued by Representatives Kathy Castor (Dem., FL), James McGovern (Dem., MA), Barbara Lee (Dem., CA) and Donna Shalala (Dem., FL).

Benjamin Rhodes, a former Obama adviser who helped negotiate the December 2014 U.S.-Cuba normalization agreement, said, “Restricting remittances that can be sent to Cubans will directly hurt the Cuban people. This is a shameful and mean-spirited policy.”

Mark Feierstein, a former National Security Council’s Director for the Western Hemisphere, tweeted: “As Bolton delivers speech in Miami today on Cuba, it’s useful to keep in mind that according to public opinion polls, most Cuban-Americans approve the measures taken by the Obama Administration to support the Cuban people. The [National Security Council]. . . is out of step with majority opinion in Miami.” In another tweet  he stated, “What we’re leading the Cuban people toward is a darker day, where there will be less economic opportunity.”

  1. Other Americans

Tim Fernholz, who covers space, the economy and geopolitics for Quartz, has addressed the new policies’ adverse effects on the emrging Cuban private sector. He says, “The Trump administration is setting out to crush free markets in Cuba.” These policies “will damage Cuba’s nascent private sector far more than a ruling regime that has out-lasted six decades of US embargo. Trump is pulling the rug out from Cuba’s cuentrapropistas—literally, self-employed—eliminating their sources of capital and revenue and reducing their influence during the all-important transition to a post-Castro Cuban government. . . . US policy toward Cuba, meanwhile, is defined by a near-theological belief that isolating the Cuban people will lead them to abandon national self-determination.”

Supporters of the New Policies[3]

The two Cuban-American Senators and one of the Cuban-American U.S. Representatives, as expected, endorsed at least some of the new U.S. policies. So did Senator Rick Scott. So did Walter Russell Mead, who is the James Clarke Chace Professor of Foreign Affairs and the Humanities at Bard College, a Distinguished Fellow in American Strategy and Statesmanship at the Hudson Institute, and The Wall Street Journal’s Global View columnist.

Senator Marco Rubio (Rep., FL) said, “”By no longer suspending Title III of the Freedom Act, the Trump administration is the sixth of impunity by the Castro regime. The United States is opening the door to justice and enabling victims of the Cuban dictatorship to rightfully sue their perpetrators. Today, as we commemorate the value of the fallen heroes in the Bay of Pigs invasion, history is once again being written. ”

Senator Robert Menendez (Dem., NJ) offered a similar statement: “By fully implementing Title III of the LIBERTAD Act, the United States is rightly providing U.S. citizens with the means to hold the Cuban regime accountable through the U.S. justice system.”

Representative Mario Diaz-Balart (Rep., FL) issued a lengthier statement, which is extracted below:

  • “At long last, victims of confiscated properties will finally have the chance to pursue claims to recoup losses suffered at the hands of the Castro regime.”
  • “President Trump and his administration have demonstrated remarkable solidarity with the Cuban people and the regime’s other victims in tightening sanctions by prohibiting financial transactions with the Cuban military.
  • “Cutting off resources and investment to the regime in Cuba will benefit both U.S. national security interests and regional security interests for neighbors in our hemisphere.”

Senator Scott stated, “Americans can finally sue for property stolen by the Cuban regime. We must continue to do everything we can to cut off the money supply to the Castro Regime, which continues to prop up dangerous dictators like Nicolas Maduro in Venezuela and Daniel Ortega in Nicaragua.”

Walter Russell Mead. He starts with the proposition that Venezuela presents the key challenge of Latin America. “Left to accelerate, the breakdown of governance and civilized life in Venezuela can only create more refugees, enrich arms smugglers and drug cartels, allow forces like Hezbollah to insinuate themselves more deeply in the region. On the other hand, a return to some kind of stability under a pro-business government would initiate an economic recovery that would help the people of Venezuela and their neighbors alike, and deprive the terror cartels of much of their arms and funding. Crucially, if Venezuelan oil production recovers, it would help stabilize world energy markets and significantly increase American leverage with both Russia and Iran.”

“The continued collapse of Venezuela’s economy means the Cuban regime is also facing disaster. From the Trump administration’s point of view, this is a historic opportunity. If Cuba . . . abandons socialism on Mr. Trump’s watch, the president’s prestige at home and abroad would soar.”

Therefore, says Mead, the Trump Administration hopes for “historic victories in Cuba and Venezuela.” That plus  “the fear of a costly defeat have combined to persuade the Trump administration to adopt some of the most far-reaching economic sanctions ever imposed.” In short, no previous U.S. president “has been willing to impose sanctions that alienate powerful allies to this degree over Caribbean policy. That Washington is pressing ahead suggests how high a priority Venezuela has become for the administration.”

Conclusion

There are so many reasons to oppose the new U.S. policies towards Cuba, as this blogger does. Just refer to the above section regarding such opposition and to the similar discussion in the previous posts cited in footnote 1.

As always, this blog invites reasoned comments, pro or con, or corrections from all readers of this post.

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[1] Prior posts have discussed (a) the April 17 announcement of the U.S. allowance of litigation over alleged trafficking in American-owned Cuba property that was expropriated by the Cuban government, circa 1959-60; (b) National Security Advisor John Bolton’s April 17 announcement of additional Cuba sanctions; (c) Cuban reactions to these changes; and (d) European and other countries’ reactions to these changes. These changes take effect in the midst of Cuba’s current dire economic situation, which was the subject of another post.

[2] Editorial, Cuba Is a Problem That Trump Is Making Worse, Bloomberg (April 22, 2019); Press Release, Engage Cuba Statement on New Cuba Sanctions (April 17, 2019); Engage Cuba, Memorandum: New Sanctions on Cuba Announced April 17, 2019 (April 2019); U.S. Chamber of Commerce, Statement on Cuba and Title III of the LIBERTAD Act (April 17, 2019); Center for Democracy in the Americas, CDA STATEMENT:Cuba Sanctions announcement (April 17, 2019); Cuba Educational Travel, CET Statement on President Trump’s Cuba Policy Changes (April 17, 2019); Engel on Implementation of Article III of the Helms-Burton Act (April  17, 2019); U.S. Rep. Castor: The Trump Administration’s Announcement of New, Hardline Restrictions on Cuba Brings Pain to Families, Hurts Growing Cuban Private Sector (April 17, 2019); McGovern Statement on Trump Administration;’s Reckless Policy Change Toward Cuba (April 17, 2019); Congresswoman Barbara Lee Slams President Trump’s Backwards Policy Towards Cuba (April 17, 2019); Caputo, Trump crackdown on “3 stooges of socialism’ has 2020 thrust, Politico (April 17, 2019) (Rep. Shalala quotation); Reuters, Trump’s Cuba Hawks Try to Squeeze Havana Over Venezuela Role, N.Y Times  (April 18, 2019) (Rhodes quotation); Feierstein Twitter Account; Fernholz, Cuba’s entrepreneurs are under attack by Donald Trump, Quartz  (April 22, 2019).

[3] Press Release, Rubio Commends Trump Administration’s Move to Hold Cuba Accountable (April 17, 2019); Press Release, Rubio Highlights Importance of Trump Administration’s Commitment to Democracy in Latin America (April 17, 2019); Press Release, Menendez Statement on Announcement to Let Cuban Americans File Suit over Property Confiscated by Cuban Regime (April 17, 2019); Diaz-Balart: Trump Administration’s Full Implementation of Title III Is a Monumental Decision   (April 17, 2019); Press Release, Sen. Rick Scott Applauds President Trump For Fully Implementing Title III of the Libertad Act (April 17, 2019); Mead, Trump Takes Aim at Caracas and Havana, W.S.J. (April 22, 2019).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cuban Reactions to New U.S. Anti-Cuba Measures

Naturally the Cuban government and its officials condemned the new U.S. measures. Other Cubans voiced various opinions on this subject.

Cuban Government[1]

“Today, the 17th of April, we celebrate another anniversary of the start of the military aggression at the Bay of Pigs (Playa Girón) in 1961. The decisive response of the Cuban people in defense of the Revolution and socialism resulted in the first military defeat of imperialism in the Americas, in just 72 hours. Oddly enough, it is the date chosen by the current government of the United States to announce the adoption of new aggressive measures against Cuba and to reinforce the application of the Monroe Doctrine.”

“The Revolutionary Government rejects in the most energetic of terms the decision to permit hereinafter that action is taken in US courts against Cuban and foreign entities outside the jurisdiction of the United States, and that of intensifying the impediments for entry into the United States of the executives of companies that legally invest in Cuba and their relatives in properties that were nationalized.  These are actions envisaged in the Helms-Burton Act that were rejected a long time ago by the international community, that the Cuban nation has repudiated from the time when they were enacted and applied in 1996, and whose fundamental aim is to impose colonial protection over our country. Cuba also repudiates the decision to return to limiting the remittances which Cuban residents in the US send to their families and next of kin, to restrict even further travel by American citizens to Cuba and to apply additional financial penalties.”

“It energetically rejects the references that in Cuba attacks have been produced against American diplomats. They would like to justify their actions, as usual, using lies and blackmail. On last 10 April, General of the Army Raúl Castro declared: ‘Cuba is blamed for all evils, using lies in the worst style of Hitlerian propaganda.’To cover up and justify the evident failure of the sinister coup d’ét maneuver of designating, from Washington, a usurper “president” for Venezuela, the government of the United States resorts to slander.”

“It accuses Cuba of being responsible for the soundness and steadfastness shown by the Bolivarian and Chavista government, the people of that country and the civilian-military union which defends the sovereignty of their nation. It brazenly lies when it declares that Cuba keeps thousands of troops and security forces in Venezuela, influencing and determining what is happening in that sister country.”

“It has the cynicism of blaming Cuba for the economic and social situation besetting Venezuela after years of brutal economic penalties, conceived and applied by the United States and a number of allies, precisely to economically suffocate the population and to cause its suffering. Washington has gone to the extremes of pressuring the governments of third countries to attempt to persuade Cuba to withdraw this presumed and unlikely military and security support and even for it to stop providing backing and solidarity to Venezuela. The current US government is known, in its own country and internationally, for its unscrupulous tendency of using lies as a resort in domestic and foreign policy matters.   This is a habit coinciding with the old practices of imperialism.”

“Still fresh in our minds are the images of President George W. Bush, with the support of the current National Security Advisor John Bolton, lying shamelessly about the supposed weapons of mass destruction in Iraq, a fallacious argument that served as an excuse to invade that country in the Middle East.”

“History also records the blowing up of the battleship “Maine” in Havana and the self-provoked incident in the Gulf of Tonkin, episodes that served as excuses to unleash wars of pillage in Cuba and Vietnam. We should not forget that the United States used fake Cuban insignia painted on the planes that carried out the bombing runs as a prelude to the aggression at the Bay of Pigs, in order to cover up the fact that they were really American planes”

“It must remain clear that US slander rests upon complete and deliberate lies. Its intelligence services possess more than enough proof, surely more than any other State, to know that Cuba has no troops nor does it participate in any operations of a military or security nature in Venezuela, even though it is a sovereign right of two independent countries to decide how they shall cooperate in the sector of defense, something that does not correspond to the United States to question. That accuser keeps over 250,000 soldiers on 800 military bases abroad, some of these in the American hemisphere.”

“Their government also knows that, as Cuba has publicly and repeatedly declared, the nearly 20,000 Cuban collaborators, over 60 % of them women, are in that Latin American nation to fulfill the same tasks that approximately another 11,000 Cuban professionals are fulfilling in 83 nations:   contributing to provide basic social services, fundamentally in the area of health, a fact that is acknowledged by the international community. It must remain absolutely clear that steadfast solidarity with the sister Bolivarian Republic of Venezuela is Cuba’s right as a sovereign State and it is also a right that forms part of the tradition and essential principles of the foreign policy of the Cuban Revolution.”

“No threats of reprisals against Cuba, no ultimatum or blackmail by the current US government is going to divert the internationalist conduct of the Cuban nation, despite the devastating human and economic damages caused our people by the genocidal blockade.”

“It behooves us to remember that Mafioso threats and ultimatums were already being used in the past when Cuba’s internationalist efforts were supporting the liberation movements in Africa while the US was backing the scurrilous regime of apartheid. They would have liked Cuba to renounce its commitments of solidarity with the peoples of Africa in exchange for promises of pardon, as if the Revolution had anything whatsoever that needed to be pardoned by imperialism.”

“At that time, Cuba rejected blackmail, as it rejects it today, with utmost disdain.”

“Last April 10th, General of the Army Raúl Castro recalled: ‘In 60 years of facing aggression and threats, we Cubans have demonstrated the iron-clad will to resist and overcome the most difficult of circumstances. Despite its immense power, imperialism does not have the capacity to crush the dignity of a united people, who are proud of their history, and of the freedom they have attained by the strength of so much sacrifice.’”

“The Government of Cuba calls on all members of the international community and on the citizens of the United States to stop the irrational escalation and the policy of hostility and aggression of the government of Donald Trump. With complete justification, year after year the Member States of the United Nations have called practically unanimously for the end to this economic war.  The peoples and governments of our region must see to it that, for the benefit of all, the principles of the Proclamation of Latin America and the Caribbean as a Zone of Peace prevail.”

“Last April 13th, the President of the Councils of State and Ministers Miguel Díaz-Canel Bermúdez declared: ‘Cuba continues to trust in its strength, its dignity and also in the strength and dignity of other independent and sovereign nations.  But it also continues to believe in the American people, in the Land of Lincoln, that they should be ashamed of those who act on the fringes of universal law on behalf of the entire American nation.’ Once again, Cuba repudiates the lies and threats, and reiterates that its sovereignty, independence and commitment to the cause of the peoples of Latin America and the Caribbean are not negotiable.”

“Two days away from commemorating the 58th anniversary of the Playa Girón Victory, a historical point in national geography where the mercenary forces sent by imperialism tasted the dust of defeat, the Cuban Revolution reiterates its firm determination to face up to and prevail over the escalated aggression of the United States.”

Cuban Government Officials[2]

Cuban President Miguel Diaz-Canel responded defiantly with these tweets: ‘Cubans do not surrender, nor do we accept laws about our destinies that are outside the Constitution. In Cuba we Cubans will not change the attitude towards those who hold the sword against us.’ He added,  ‘No one will rip the (Fatherland) away from us, neither by seduction nor by force, We Cubans do not surrender.’’”

In another tweet, Diaz-Canel said,  ‘Title III is not worse than the I and II, which are in the portfolio of actions against all the people of Cuba, Cubans do not give up.”

Also initially responding with tweets was Cuba Foreign Minister Bruno Rodriguez. He “called it an attack on international law, Cuban sovereignty and countries that would do business with the island: Aggressive escalation by US against Cuba will fail. Like at Giron, we will be victorious.’”

On state television, Rodriguez said, ‘”We will always be willing to have a dialogue based on absolute respect, but if the U.S. government has chosen a confrontational path we will not hesitate to defend the gains of the revolution at any cost.’” According to Rodríguez, ‘These decisions of Washington are an aggressive escalation of the US against Cuba that ‘will fail.’”

In another tweet, he also repudiated the ‘aggressive discourse, calumnies and measures to intensify the blockade announced by the US National Security Adviser [Bolton that] constitute a new aggression against the people of Cuba, the American people, Cuban emigration and sovereign states.’”

.”’But now there are nefarious interests in the government of that country, an increasingly monopoly, more McCarthyist policy against Our America and against our people, based on true slander.’”

“’We, of course, will not give up one bit of our principles. We will continue our solidarity support to the sister Bolivarian Republic of Venezuela and we will follow the course that our people, now in a free and universal referendum, has confirmed towards an increasingly just, advanced, increasingly inclusive Cuban socialism and the foreign policy of the Revolution Cubans will continue to be the same, as the Constitution confirms. Our principles are unchangeable and invariable.’”

  Other Cubans[3]

The most cogent opinion on these issues was provided by Rafael Rojas, who is one of Cuba’s most distinguished historians with many publications and the holder of university positions around the world. He wrote the following 10 objections to what he calls “the Bolton Doctrine” in Madrid’s El Pais.

  • “1. In the conflict between the United States, Cuba, Nicaragua and Venezuela, the symbolic dimension weighs heavily. From Washington, Havana, Caracas, Managua and, of course, Miami, these differences are assumed as inertias or continuations of the Cold War. But in most of the world this is not the case: the conflict between communism and anti-communism is marginal on the planetary level. To have announced the new policy in Miami, on the anniversary of the failed Bay of Pigs invasion of 1961, is to persist in that local, archaic entanglement that favors Manichaeism and the binary visions of contemporary politics.”
  • “ The announcement of the new measures from Miami, by Bolton, reinforces a double and harmful subordination: that of the policy towards Venezuela, Nicaragua and Cuba to the sphere of the “national security” of the United States and that of the Washington agenda for those countries to the electoral cycles in the state of Florida.”
  • “ The sanctions against the three regimes adopt a totally unilateral sense at a time when various global institutions and diplomatic initiatives (OAS, UN, Lima Group, International Contact Group of the European Union, Prosur, Uruguayan and Mexican chanceries) try to arrange multilateral actions to face the Venezuelan and Nicaraguan crisis.”
  • “ During the last two decades, the US Department of State has maintained a differentiated policy for Venezuela, Cuba and Nicaragua. It is evident that these regimes act coordinated in a permanent strategy of promoting authoritarian alternatives to democracy in the hemisphere, but, at the same time, the differences between the three political systems, the peculiarities of their respective relations with civil society and society are indisputable [as are] the opposition and nuances of its international commitments and Government priorities.”
  • “The definition of these regimes as “troika of tyrannies” is not only a theoretical simplification, that almost the whole of Latin America and the European Union, plus the UN, China and India, Africa and the Middle East do not share, but an incentive to the deployment of a greater diplomatic and military collaboration of those governments among themselves and with their allies in the world, especially Russia and Iran.”
  • “The application of Titles III and IV of the Helms-Burton Act, passed in 1996, had been postponed by all the governments of the United States until now: the second by Bill Clinton, the two by George W. Bush and the two of Barack Obama [and the two??? by Trump]. The reason was always a mixture of recognition of the global unpopularity of the embargo against Cuba and the complications that could arise in relations with Europe, Canada, Latin America and Asia, in case of demands to companies from those regions that operated in Cuba with confiscated properties. The thousands of cases of Cuban-American citizens that will be presented before the US justice system, in addition to being complicated and burdensome, will generate costs at the international level, as already observed with the European Union’s appeal to the World Trade Organization (WTO).”
  • “Restrictions on American tourist trips and remittances from Cuban-Americans from the United States will not only affect the income of Miguel Diaz Canel’s government: they will also damage the small market sphere that attempts to articulate within the island. The new policy towards Cuba returns to the old paradox of the republican right to promote capitalism, closing the external ways by which capitalism can reproduce itself.”
  • “The sanctions against the Central Bank of Venezuela continue the punitive strategy undertaken so far by the Trump administration against the financial networks of the Government of Nicolás Maduro. Who announces that measure in Miami is the same one that recently proposed the sending of 5,000 soldiers to the border between Colombia and Venezuela and the same government that already openly complains about the inability of its ally, President Ivan Duque [Colombia’s current president], to reduce drug trafficking.”
  • “ The measures against the Government of Daniel Ortega also try to affect the sources of income of the Sandinista State, through the freezing of funds from the Corporate Bank of Nicaragua and the official investment and export agency, ProNicaragua, headed by the son of the presidential couple, Laureano Ortega Murillo. So far, this type of personalized sanctions has not yielded results in Cuba or Venezuela, in terms of promoting greater economic and political openness. Daniel Ortega, a leader so discredited by the Latin American left, gains prestige with the Bolton doctrine.”
  • “ The purpose of the unilateral US offensive against Venezuela, Cuba and Nicaragua is not, apparently, a flexibilization but a breakdown of those regimes. But for that to happen, unlikely scenarios would have to occur: a military uprising in Venezuela, a coup in Nicaragua or a popular uprising in Cuba. In a possible conjuncture of simultaneous economic asphyxia in the three countries should not rule out a greater cohesion against the external enemy, despite the greater or lesser wear and tear of their respective leaders. Not even the collapse of one of those regimes would necessarily mean the collapse of the other two.”

Another article critical of the new U.S. measures in tones similar to those  expressed by the Cuban government and its officials appears in Granma, the official newspaper of the Communist Party of Cuba.

On the other hand, some Cubans disagreed with the Cuban government’s lengthy and vitriolic attacks on the new U.S. measures. These articles were an editorial in Diario de Cuba and one of its articles by Elias Amor; this Internet periodical is published in Madrid, Spain and says that “the  views expressed are not those of any government, nor of any corporate entity other than K&M Productions, LLC, of Boston, Massachusetts.”

A surprising opinion on the new U.S. policies was voiced by Antonio Rodiles, a member of the Cuban opposition, when saying he supported the new U.S. restrictions. “”Pressure is needed. In what other way will it be possible to stop a regime like this? I do not see another Possibility.”

Conclusion[4]

 The lengthy declaration by the Cuban Government was to be expected. Criticism of the official position of the Cuban Government on these issues from  Dario de Cuba was also to be expected as it always publishing such pieces and makes one wonder whether it secretly is funded by the U.S. government.

Most persuasive are the 10 reasons advanced by respected historian Rafael Rojas. I agree that the speech by John Bolton seems erroneously anchored in the views of the Cold War, which has been over for some time; that the new measures seem derived from U.S. political concerns about the state of Florida in national politics; that the new measures totally ignore multilateral efforts to solve the many issues in Cuba, Venezuela and Nicaragua; that the new U.S. measures encourage these three countries to seek help from Russia and Iran; that the previous U.S. waiver of enforcement of provisions of the Hale-Burton Act were based on realistic assessments that the related U.S. embargo of Cuba was rejected by virtually every country in the world whereas enforcement of those provisions of the Act would generate costs at the international level, including tension with U.S. allies; that the restriction of U.S. remittances and travel to Cuba will harm emerging Cuban free enterprise; and that the true purpose of these new U.S. measures does not appear to encourage actions consistent with U.S. interests, but instead to cause a breakdown of their regimes.

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[1] Cuba Foreign Ministry, Declaration of the Revolutionary Government of Cuba: The Cuban revolution reiterates its firm determination to face the escalation in aggression by the United States (April 18, 2019).

[2] Solomon, Reichmann & Lee (AP), Trump Cracks Down on Cuba, Nicaragua and Venezuela, Wash. Post (April 17, 2019); DeYoung, Trump administration announces new measures against Cuba, Wash. Post (April 17, 2019); Reuters, Trump’s Cuba Hawks Try to Squeeze Havana Over Venezuela Role, N.Y. Times ( April 17, 2019).

[3] Rojas, Ten Objections to the Bolton doctrine, El Pais (April 18, 2019); Capote, Let’s talk Cuban about the Helms-Burton, Granma (April 17, 2019); Editorial, The Helms-Burton Act and the responsibility of the Cuban regime, Diario de Cuba (April 18, 2019); Amor, Will the Cubans be impoverished by the Helms-Burton Law?, Diario de Cuba (April 20, 2019).

[4] As always corrections and opinions about this post are welcome. Are there any other significant Cuban statements on these new U.S. measures? If so, add them in comments to this post.

Economist Critiques Cuban Economy

Carmelo Mesa-Lago, a professor emeritus of economics and Latin American studies at the University of Pittsburgh and the author of 45 books on Cuba, recently delivered his critique of the Cuban economy in the New York Times.[1]

He opens with the assertion, “For the past 60 years, Cuba has been unable to finance its imports with its own exports and generate appropriate, sustainable growth without substantial aid and subsidies from a foreign nation. This is the longstanding legacy of Cuba’s socialist economy.” These foreign nations were Spain in the colonial era, the U.S. (circa 1903 -1958), the Soviet Union (circa 1959-1988) and Venezuela (21st century). Yet “despite the staggering foreign aid subsidies it has received, [Cuba’s] . . . economic performance has been dismal.”

“In the past seven years, growth has been a third of the officially set figure needed for adequate and sustainable growth, while investment has been one third of the required rate. Industrial, mining and sugar production are well below 1989 levels, and the production of 11 out of 13 key agricultural and fishing products has declined. Cuba is now facing its worst economic crisis since the 1990s.”

According to Mesa-Lago, “Cuba’s woes are a result of the inefficient economic model of centralized planning, state enterprises and agricultural collectivization its leaders have pursued despite the failure of these models worldwide. In his decade in power, President Raúl Castro tried to face his brother Fidel’s legacy of economic disaster head on by enacting a series of market-oriented economic structural reforms. He also opened the door to foreign investment, but so far, the amount materialized has been one-fifth of the goal set by the leadership for sustainable development.”

Although Cuba has adopted some reforms to allow some private enterprise, Mesa-Lago says Cuba needs “to accelerate and deepen reforms. China and Vietnam’s market socialism model under Communist Party rule could provide a way forward.”

If such reforms are carried out and foreign investors are allowed to hire and pay a full salary directly to their employees, he concludes, “there will be a significant improvement in the economy and the government can undertake the desperately needed monetary unification that will attract more investment and eliminate the economic distortions that plague the economy.”

As noted in a recent post to this blog, the Cuban economy also faces the challenges of an aging, declining population with the latter being caused, in part, by the limited opportunities for economic success, especially for younger Cubans. [2]

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[1] Mesa-Lago, Cuba Can Move From Foreign Economic Dependence, N.Y. Times (Mar. 28, 2019).

[2] See also posts listed in the “Cuban Economy” section of List of Posts to dwkcommentaries—Topical: CUBA.

 

Senator Leahy’s Senate Floor Speech To End Embargo of Cuba

As mentioned in a prior post, on February 7, Senator Amy Klobuchar (Dem., MN) introduced the Freedom To Export to Cuba Act (S.428) with cosponsors Patrick Leahy (Dem., VT) and Michael Enzi (Rep., WY)./

On February 15, Senator Leahy delivered a lengthy and persuasive speech on the Senate floor supporting this bill and ending the embargo. Here is the text of that speech.

After commending Senator Amy Klobuchar (Dem., MN) for introducing this bill and urging other Senators to support the bill,, Senator Leahy said, “This bill is about ending the anachronistic prohibitions in U.S. law that for decades have limited U.S. engagement with Cuba, including preventing American companies from exporting their products to Cuba.  The fact that legislation to do so is even necessary is illustrative of the absurdity of the situation in which we find ourselves.  Companies from Europe, Russia, China, Mexico, and every other country can sell their products to Cuba, which is just 90 miles from our coast, but American manufacturers and retailers are largely shut out of the Cuban market. . . . This bill would enable American companies to compete, which every believer in a free market should support.”

“It is also important for Senators to know that punitive actions by the Trump Administration last year to further restrict the right of Americans to travel to Cuba have had devastating consequences for Cuba’s fledgling private sector – the very people the White House and supporters of the restrictions profess to want to help.  The fact that they have said nothing about the harm they are causing Cuba’s struggling entrepreneurs demonstrates that they care more about continuing their failed policy of sanctions, regardless of who they hurt, than about helping the Cuban people or about protecting the right of Americans to travel freely.” 

“The latest ill-conceived attempt by the White House to punish Cuba would permit Title III of the Helms-Burton Act to go into effect.  This would allow, among others, individuals who were Cuban citizens when their property in Cuba was expropriated half a century ago to sue in U.S. courts any Cuban, foreign, and even American company whose business in Cuba today uses that property.  That could be an airport, port, warehouse, hotel, restaurant, you name it.  Virtually every American and foreign company investing in Cuba would suddenly be liable for treble damages.”

“The purpose, as the law’s authors made clear when it was enacted 23 years ago, is to harm Cuba’s economy by making it completely inhospitable for foreign investment.”

“As my friend in the House, Representative Jim McGovern (Dem., MA), has pointed out –

  • ‘It’s no mystery why Presidents Clinton, Bush, Obama, and Trump blocked Title III from going into effect every six months for the past 23 years.’
  • ‘It is hypocritical – it penalizes companies for doing what American companies do all over the world.’
  • It is contrary to international law, which recognizes the right of expropriation and requires compensation.’
  • ‘It is an extraterritorial sanction that guarantees a response from our trading partners, like Canada, Spain and the EU, including complaints at the World Trade Organization.’
  • ‘And if you care about agriculture, be warned: It will open a new front in the trade war, with all the repercussions that can bring.’
  • ‘It will allow Cuba to claim victim status and rally international support.’
  • ‘It will clog our courts with lawsuits.’
  • ‘It will make it impossible to negotiate compensation for U.S. claims in Cuba, and, in the end, hurt the very Americans who seek compensation for the property they lost.’
  • ‘It will divide us from friends and allies who are now working for a peaceful solution in Venezuela.’
  • ‘And it will guarantee that new investment in Cuba will come from the Russians, Chinese and others who are hostile to the United States, and whose state-owned companies can’t be sued in U.S. courts.’

“I agree with my friend in the other body [Rep. McGovern].  What the White House is considering would trigger an avalanche of unintended consequences that would bring U.S. commerce with Cuba to a halt, harm relations with our allies in this hemisphere and beyond, and make resolving property claims more difficult.  I ask unanimous consent that a piece by William LeoGrande on Title III of the Helms-Burton Act published in the February 13, 2019 issue of OnCubaNews be printed in the Record following my remarks.” [This article will be published in a separate post to this blog.]

Like “many issues, Members of Congress have strong feelings pro and con about U.S. relations with Cuba.  It is no secret that, after more than half a century of a policy of isolation that has achieved none of its objectives and primarily hurt the Cuban people, I, like Senators Klobuchar and Enzi and many others in this body, favor closer relations.”

“Conversely, there are those in Congress and the Trump Administration who believe strongly that we should ratchet up the pressure on the Cuban government in an attempt to achieve those elusive goals.”

“I have often spoken publicly about the lack of political freedom and civil liberties in Cuba.  But I also think it is important to try to be objective:  to criticize when called for and to acknowledge positive changes when they occur.”

“I recognize that those who favor maintaining the failed economic embargo have a longstanding, visceral antagonism and resentment toward the Cuban government.  While they rarely, if ever, mention the corrupt and brutal Batista regime that enjoyed unqualified U.S. support until it was overthrown in 1959, they have legitimate reasons to criticize the mistreatment of the Cuban people by the current government and its support for the corrupt and repressive Maduro regime in Venezuela.”

“But they too should acknowledge that threatening and bullying Cuba has not worked.  In fact it has made the situation worse, and provided an excuse for the Cuban government to blame its own failures on us.  They should also acknowledge positive changes in Cuba, but they never do.  Not ever.  It is almost as if they are psychologically, ideologically, or emotionally incapable of saying one positive thing about the Cuban government, no matter what positive things it does.”   

“Perhaps they are afraid that if they did, they would alienate their donors in the Cuban-American community.  Of course, we know that Cuban-Americans are divided about the U.S. embargo.  Some are hardcore believers in the embargo, and they always will be.  But at least as many – and increasing numbers – oppose the embargo, especially those who were born after the Cuban revolution.” 

“I wonder what the pro-embargo isolationists would say if the Cuban government were to stop harassing and abusing dissidents who favor a more democratic system.  Would those who oppose the embargo say anything positive?” 

“What if the Cuban government decided to embrace a free market economy and let private businesses flourish?  Would those who oppose the embargo say anything positive?”

“I doubt it.  I doubt it because no matter what positive reforms occur in Cuba, they will continue to defend the embargo until Cuba is a full-fledged democracy and those who currently hold power either die or are voted out of office.” 

“We all want Cuba to become a democracy, where civil and political rights are respected, and the sooner the better.  But those same defenders of the embargo support billions of dollars in U.S. aid – and weapons sales – to countries that are led by authoritarian, brutal, and corrupt dictatorships and monarchies, some of which have held power for decades or generations.”    

“How do the pro-embargo diehards reconcile that?  They don’t and they can’t.”

“The fact is, Cuba is changing.  Not nearly as fast as we and the Cuban people would like, but it is changing in ways that few would have predicted not very long ago.”

“Last year, Raul Castro’s hand-picked successor, Miguel Diaz-Canel, became President and he promised a government more accessible and responsive to the people’s needs.  How he delivers on that promise remains to be seen.”   

“Since 2010, after the Cuban government recognized that the Internet is essential if Cuba wants to be part of the modern world, Internet access has exploded.  The government has opened hundreds of public Wi-Fi hot spots and cyber cafes in the past five years, and home Internet access became legal and available in 2017.  Today, almost half of the Cuban people have personal cell phones that were illegal just a decade ago.”

“As others have pointed out, these changes have encouraged new forms of communication, networking and organizing via social media.”

“But change does not come easily in Cuba, as it does not in many countries.  Last July, the government announced onerous new regulations on the private sector, covering a wide range of issues:  food safety, labor contracts, procurement, taxation, limits on the size of private businesses.  The new rules were an attempt by hardliners to crack down on the private sector, which was criticized for black marketeering.”

“But private entrepreneurs resisted, and they challenged the regulations as contradictory to the government’s own plans that recognizes the private sector as important to economic growth and employment. They appealed to government officials and spoke publicly about the harm the new rules would have on their businesses.”

“When the final regulations were issued, several that had caused the most resentment were dropped.  According to the Minister of Labor and Social Security, the decision to revise the rules was due to ‘the opinion and experiences of those directly involved.’”

“The government also retreated on a new law – Decree 349 – requiring artists, musicians and performers to register with the state and pay a large commission on their earnings from private engagements, and it banned work with objectionable content and empowered inspectors to shut down any offensive exhibition or performance.  Clearly, an attempt to further limit free expression.”

“Since the 1980s, Cuban artists have had more freedom to be critical of the government than other social sectors, and so it was not surprising that Decree 349 ignited widespread protests.  After social media was used to mobilize opposition within the Cuban arts community and among artists abroad, the government agreed not to enforce the law until implementing regulations are drafted in consultation with the arts community.”

“According to one observer, ‘during [the latter half of last year], nearly 8.9 million Cubans debated the draft of a new constitution in their workplaces, neighborhoods and schools.  Communist Party members were told not to argue with even the most radical proposals for amendments, and the ensuing debates were freewheeling, often lasting past their scheduled time.  Among the main topics: whether the president and state governors should be directly elected by voters; whether the concentration of wealth and property should be allowed; whether term limits and age limits for leaders were a good idea; and whether the Communist Party should be subordinated to the constitution and hence the law.”  Not long ago it would have been unthinkable to openly debate these issues, especially as part of a constitutional reform process.”

“One article that attracted intense debate recognized same-sex marriage, and was promoted by Raul Castro’s daughter, a long-time activist for LGBTQ rights. The proposal sparked strong opposition from evangelical churches supported by the Catholic Church.  Gay rights advocates countered with campaigns of their own.  The chance of a significant ‘no’ vote on the entire constitutional reform led the government to drop the provision from the final draft of the constitution with a pledge to consider it later.”

“This surge in mobilization by well-organized constituencies utilizing social media to resist government policy, from burdensome private sector regulations to gay marriage, is unprecedented in Cuba.  The government’s willingness to not only tolerate these organized challenges but to change policies in response to them, is significant. “   

“As has been noted, none of these issues dealt with the rigid structure of the Cuban system.  Cuba remains a one party state, in which those who challenge the system are treated as criminals.  But the precedent of organized interest groups mounting successful campaigns to challenge and change government policy is now established, which is positive.” 

“None of the longstanding critics of the Cuban government in the U.S. Congress or the Cuban-American community [has] acknowledged any of this, nor are they likely too.  For them, anything less than a wholesale change of government in Cuba is unworthy of mention, even though they apply a very different standard – a double standard – to other authoritarian governments.  In fact, they would ridicule anyone who regards such changes as positive or worthy of recognition.”

“As we know from our own experience, political reform is difficult.  Our own Electoral College, an anachronism designed to protect a slave-holding minority, remains in effect more than two centuries later.  Five times, in the world’s oldest democracy, it has prevented the winner of the most popular votes from being elected president.”  

“The Cuban people want to live better and they want a lot less government control over their lives.  Armed with cell phones and the Internet they are going to make increasing demands of their government.  This is happening at a time when Venezuela’s economy is collapsing and the survival of the Maduro regime, Cuba’s closest ally in the hemisphere, is in question.  Not surprisingly, the Cuban government is trying to limit the pace of change and to secure other benefactors.  It is turning increasingly to Russia, Algeria, Iran and other countries that welcome the chance to challenge U.S. influence in this hemisphere.” 

“This is a time for the United States to be actively and visibly engaged in Cuba, for Americans to be traveling to Cuba, for expanding educational, cultural, and professional exchanges between the U.S. and Cuba, and for American companies to be competing in Cuba.  It is not a time to return to a failed policy of threats and ultimatums, driven by domestic politics rather than by what is in our national interests.”

“That is why I am cosponsoring the Freedom to Export to Cuba Act.  And it is why I intend to support other bipartisan legislation to replace our failed Cuba policy with one that serves America’s interests, not the interests of a shrinking minority, and not the interests of Russia and other countries that are reaping the economic benefits of our self-defeating policy of isolation.”

Reaction

I concur in the rationale and conclusion of this speech: end the U.S. embargo of Cuba.

While I believe there is valid documentation of the Senator’s assertion that Cuba has limits on free speech and assembly, he views this in isolation from Cuba’s situation. Cuba is a small country facing the vastly larger and more powerful  U.S., which for many years has had various hostile policies and actions against Cuba, including secret and undercover so-called “democracy promotion” programs on the island. In that context, it should be easy to understand why Cuba is concerned about dissidents and free speech and assembly.  Accordingly reliable U.S. assertions about the abolition of so called “democracy promotion” programs on the island should be a precondition to improving Cuban freedoms of speech and assembly.

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Senator Leahy,  Statement of Senator Leahy On the Freedom To Export to Cuba Act (Feb. 15, 2019). 

Wall Street Journal: U.S. Asserting New Plan To Re-Shape Latin America

The Wall Street Journal reports, as recent posts to this blog have indicated, the U.S. has embarked on a new campaign or plan to try to re-shape Latin American politics and governments.[1]

According to the Journal, “The Trump administration’s attempt to force out the president of Venezuela [Maduro] marked the opening of a new strategy to exert greater U.S. influence over Latin America, according to administration officials. In sight isn’t just Venezuela’s Nicolás Maduro, but also Cuba, an antagonist that has dominated American attention in the region for more than 50 years.” This new strategy also aims at  “recent inroads [in the region] made by Russia, China and Iran.”

“The Trump administration is stocked with officials who have long believed Cuba to be the more serious national-security threat.” These officials include Cuba-Americans Mauricio Claver-Carone, a National Security Council official, U.S. Senator Marco Rubio (Rep., FL) and U.S. Rep. Mario Diaz-Balart (Rep., FL). “They cite Cuba’s intelligence operations in the U.S., and its efforts to spread anti-American views in other Latin American countries. The goal, the administration’s thinking goes, is to sever ties that bind Venezuela to Cuba and sink regimes in both countries.”

Third on the target list of these U.S. officials is Nicaragua. “The State Department repeatedly warned of the country’s shift toward autocratic rule, government repression and violence. Nicaraguans are joining the flow of migrants toward the U.S. border with Mexico,” John Bolton, National Security Advisor, said. He added, “The United States looks forward to watching each corner of the [Troika of Tyranny] fall: in Havana, in Caracas, in Managua,” the capital of Nicaragua.

Conclusion

The Journal’s report confirms what was obvious from recent posts to this blog. These are unfortunate and wrong-headed developments.

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[1] Donati, Salama & Talley, U.S. Push to Oust Venezuela’s Maduro Marks first Shot in Plan to Reshape Latin America, W.S.J. (Jan. 30, 2019).

Update on Trump Administration’s Threat To  Allow U.S. Litigation Over Cuba’s Expropriated Property

A prior post reported that the Trump Administration was considering not continuing the waiver of the right of certain owners of Cuban property that was expropriated in 1959-60 to bring litigation in U.S. federal courts.  Here are two updates.

First, Engage Cuba, an U.S. bipartisan coalition supporting normalization of U.S.-Cuba relations, published a strong objection to such a move.[1] Here are the reasons for its objection:

  • “There are 5,913 certified claims of seized American property in Cuba . . . [and] the State Department estimates that a flood of up to 200,000 claims if the suspension [of the right to sue] were ended.”
  • “Property claimants would be more successful in earning compensation through high-level diplomatic engagement, given that foreign companies are unlikely to cooperate.“
  • “Future attempts to encourage legal business with Cuba would be much more difficult . . . [and the authorization of U.S. litigation] would have a chilling effect on the broader effort to continue normalizing relations and could spill into other areas like travel, academic exchange, and research collaboration.”
  • “As U.S companies are not exempt from Title III suits, they could face a slew of lawsuits and would be extremely unlikely to expand operations in Cuba despite their past success on the island.”
  • “Companies based in Europe and Canada are among the top foreign investors in Cuba [and] Canada, the U.K. [and Mexico] all have laws prohibiting their companies from complying with Title III suits . . .[plus the] European Union . . . has indicated it will do [the same] . . . if the law goes into effect. The result could be a retaliatory measure that allows litigation against U.S. companies. These legal tensions could also spill over into other aspects of bilateral relationships with U.S. allies.”
  • “Thousands of U.S. lawsuits against Chinese companies could upset an already delicate trade relationship and provoke retaliation. Meanwhile, the U.S. has already left a vacuum in Cuba for adversarial influence, particularly from Russia and China. As business with U.S. companies becomes less viable for the Cubans, they will increasingly turn to our adversaries, who offer them favorable credit terms and invest in high-profile projects.”
  • U.S. “isolation rarely allows for improvements in human rights, and Cuba is no exception. Strained relations with our allies will only escalate this problem. Without a multilateral effort to hold the Cuban government accountable, the U.S. will have a harder time pushing Cuba toward greater freedom.”

Second, an anonymous Administration source said that it is very likely to act on this  proposal, but limit it to only the 6,000 existing claims and to exempt U.S. companies currently doing business in Cuba. Although this would reduce the harmful effects of such a change, it still is objectionable for the reasons advanced by Engage Cuba.

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[1]   Engage Cuba, Urgent: Trump Administration May Allow Lawsuits for Confiscated Property in Cuba (Jan.—2019).

 

 

 

 

 

 

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