President Trump Condemns Cuba at the United Nations

On September 19, U.S. President Donald Trump addressed the United Nations General Assembly.[1]  Most media attention has focused on his bellicose remarks about North Korea and Iran. But he also condemned Cuba and Venezuela. Here the focus is on the general theses he advanced, his comments about Cuba and reactions to the speech.

Trump’s Speech

His fundamental thesis was the U.S.’ “renewing this fundamental principle of sovereignty” and “our success depends on a coalition of strong, independent nations that embrace their sovereignty, to promote security, prosperity and peace for themselves and for the world.” (Emphasis added.)

In short, the world needed strong, effective sovereign nations. As he stated, the U.S. does “not expect diverse countries to share the same cultures, traditions, or even systems of government. But we do expect all nations to uphold these two core sovereign duties:  to respect the interests of their own people and the rights of every other sovereign nation. This is the beautiful vision of this institution, and this is the foundation for cooperation and success.” (Emphasis added.)

Strong, sovereign nations let diverse countries with different values, different cultures, and different dreams not just coexist, but work side by side on the basis of mutual respect. Strong, sovereign nations let their people take ownership of the future and control their own destiny.  And strong, sovereign nations allow individuals to flourish in the fullness of the life intended by God. (Emphasis added.)

President Trump’s subsidiary premise was the assertion that “in fulfilling our obligations to our own nations, we also realize that it’s in everyone’s interest to seek a future where all nations can be sovereign, prosperous, and secure.”

On the other hand, this was not a universal action item for every sovereign nation. As he stated, “we believe that no nation should have to bear a disproportionate share of the burden, militarily or financially.  Nations of the world must take a greater role in promoting secure and prosperous societies in their own regions.” (Emphasis added.)

“That is why in the Western Hemisphere, the United States has stood against the corrupt and destabilizing regime in Cuba and embraced the enduring dream of the Cuban people to live in freedom.  My administration recently announced that we will not lift sanctions on the Cuban government until it makes fundamental reforms.” (Emphasis added.)

President Trump then went on at length about Venezuela’s problems, at least some of which he also sees in Cuba. In his words, “The problem in Venezuela is not that socialism has been poorly implemented, but that socialism has been faithfully implemented. From the Soviet Union to Cuba to Venezuela, wherever true socialism or communism has been adopted, it has delivered anguish and devastation and failure.  Those who preach the tenets of these discredited ideologies only contribute to the continued suffering of the people who live under these cruel systems.” (Emphasis added.)

Reactions to the Speech[2]

Trump’s comments on sovereignty were criticized by the Foreign Minister of Sweden, Margot Wallstrom: “This was a bombastic, nationalist speech. . . .  This was a speech at the wrong time to the wrong audience.”

Vali R. Nasr, the Dean of the Johns Hopkins School of Advanced International Studies., said, “It looks like we will respect the sovereignty of countries we like, whether they are dictatorships or democracies, but we will not respect the sovereignty of countries we don’t like.” Nasr added, “His definition of sovereignty comes from a very narrow domestic prism.”

This speech generally did not get good reviews. For example, the editorial from the Guardian in London concluded that Trump “brought little clarity as to the wider strategy he contemplates. Threats and grandstanding are just bluster, not policy. Crises require a deftness the Trump administration has failed to demonstrate. He wants allies to back him, but seems oblivious that his lack of personal credibility is an obstacle to international cooperation. An “America First” approach runs counter to the UN’s multilateralism. His credo could be summed up by his claim that nations acting in their own self-interest create a more stable world. The question is what rules would states operate under? Not the UN’s, Trump’s response appeared to suggest. The president may want to speak of “principled realism”, but he is a reckless and dangerous leader, sitting, alas, in a most powerful position.”

These thoughts were echoed by a Guardian reporter, Julian Borger, who said the speech was full of “fulminations” of fear, especially his threat to “completely destroy North Korea,” which came just minutes after the U.N. Secretary General had told those at the Assembly and implicitly Trump himself, “Fiery talk can lead to fatal misunderstandings.” More generally, “Trump punched yawning holes in his own would-be doctrine, singling out enemies, expressing horror at their treatment of their people and threatening interference to the point of annihilation. What was left . . . was a sense of incoherence and a capricious menace hanging in the air.”

The New York Times’ editorial said, “In all this fury, before a world body whose main purpose is the peaceful resolution of disputes, there was hardly a hint of compromise or interest in negotiations.” “Mr. Trump’s dark tone and focus seemed a significant deviation [from previous U.S. presidents], not least his relentlessly bellicose approach to North Korea.” On the other hand, “Mr. Trump’s largely benign comments about the United Nations were encouraging.”

The Washington Post editorial also criticized “Mr. Trump’s schoolboy taunts of ‘Rocket Man,’ his sobriquet for North Korean dictator Kim Jong Un, and his threats, if the United States is ‘forced to defend itself or its allies . . . to totally destroy North Korea.’ The leader of a powerful nation makes himself sound simultaneously weak and bellicose with such bluster.” This editorial also said “there was something discordant in using the United Nations podium to proclaim the virtue, essentially, of national selfishness over international cooperation and multilateral organization. No doubt Presidents Xi Jinping of China and Vladimir Putin of Russia will welcome this aspect of Mr. Trump’s address. They, too, have insisted on the unassailable ‘sovereignty’ of their formidable states and demanded that others not lecture them about values such as democracy and human rights, which they fear and abhor.” The editorial concluded, “Mr. Trump seemed to repudiate his own advocacy for human dignity and freedom when he said that “we do not expect diverse countries to share the same cultures, traditions or even systems of government” — as if democracy should be optional under the U.N. Charter.”

Surprisingly the Post’s respected foreign affairs columnist, David Ignatius, had a generally favorable reaction to the speech. He said, “the most surprising thing about President Trump’s address to the [U.N.] . . .  was how conventional it was. He supported human rights and democracy; he opposed rogue regimes; he espoused a global community of strong, sovereign nations.”

The editorial by the Wall Street Journal generally approved of the speech, but thought that Trump gave too narrow a definition to “national interest” by failure to include respect for the rights of the nation’s own people. Trump’s concept of sovereignty “also leaves authoritarians too much room to claim dominant [regional] spheres of influence,” such as Chinese and Russian leaders in the South China Sea and Ukraine. In short, Trump needs to learn “there is no substitute for U.S. leadership on behalf of American values and interests if he wants to build a more peaceful world.”

The speech’s negative comments about Cuba were rejected by that country’s Foreign Minister, Bruno Rodriguez, who  said that Trump “lacks the moral authority to criticize Cuba, a small and solidary country with extensive international cooperation.” Rodriguez also said in an interview with Telesur that the speech “was an unusual, aggressive, dominating, blatantly imperialist speech. Sovereignty [for Trump] means sovereignty for the United States, enslavement for all others; [it] completely ignores the concept of sovereign equality that inspires the [U.N.].” These comments were echoed by Cuba’s delegation to a Bilateral Commission meeting with the U.S.; the delegation said it protested “the disrespectful, unacceptable and meddling statements” by Trump at the U.N. Rodriguez also condemned the President’s aggressive comments against Venezuela and expressed Cuba’s solidarity with that country and its leaders. Granma, however, did publish the full text of the Trump speech.

Conclusion

There is much to criticize in the President’s speech. Foremost was his threat that the U.S. might have ”no choice but to totally destroy North Korea.” (Emphasis added)

His perceived need for “strong sovereign nations” totally ignores all the destruction and pain inflicted on the world by such nations throughout history. This emphasis also ignores the multilateral efforts, especially after World War II, to develop multilateral, international treaties and institutions, including the United Nations, to protect the world against the excesses of strong sovereign nations. Yes, like all human institutions, the U.N. is not perfect and can and should be improved. Although Trump had some kind words for the U.N. and the Marshall Plan after World War II, he said the U.S. could no longer enter into “one-sided alliances or agreements.”

The Prime Minister of the United Kingdom, Theresa May, in her September 20 speech to the General Assembly implicitly gave the proper retort to the main thesis of Trump’s speech, that strong sovereign states were the appropriate building blocks for the contemporary world.[3] She said the following:

  • “The only way for us to respond to this vast array of challenges is to come together and defend the international order that we have worked so hard to create and the values by which we stand. For it is the fundamental values that we share, values of fairness, justice and human rights, that have created the common cause between nations to act together in our shared interest and form the multilateral system. And it is this rules-based system which we have developed, including the institutions, the international frameworks of free and fair trade, agreements such as the Paris Climate Accord and laws and conventions like the Non-Proliferation Treaty, which enables the global cooperation through which we can protect those values”
  • “If this system we have created is found no longer to be capable of meeting the challenges of our time then there will be a crisis of faith in multilateralism and global cooperation that will damage the interests of all our peoples. So those of us who hold true to our shared values, who hold true to that desire to defend the rules and high standards that have shaped and protected the world we live in, need to strive harder than ever to show that institutions like this United Nations can work for the countries that form them and for the people who we represent.”
  • “This means reforming our United Nations and the wider international system so it can prove its worth in helping us to meet the challenges of the 21st Century. And it means ensuring that those who flout the rules and spirit of our international system are held to account, that nations honor their responsibilities and play their part in upholding and renewing a rules-based international order that can deliver prosperity and security for us all.”

Trump’s comments on Cuba were a reprise of his June 2017 speech in Miami, Florida with severe criticism of Cuba that was enthusiastically received by the many older Cuban-Americans in the audience.[4] Both speeches, however, lacked nuance and failed to acknowledge the accomplishments of the Cuban Revolution, especially in health and education. It also is difficult to understand the basis for Trump’s assertion that the Cuban government was “destabilizing” or that it was “thoroughly corrupt.”

Both speeches also ignored the fact that Trump in June was only proposing to change two aspects of President Obama’s normalization policies: (a) banning U.S. persons from doing business with Cuban entities owned or controlled by the Cuban military or secret services and (b) banning U.S. citizens from going to Cuba on individual person-to-person travel, the latter of which has been subjected to criticism in this blog.[5]

The U.N. speech also failed to acknowledge that simultaneously and incongruously in Washington, D.C. the U.S. and Cuba were holding the sixth session of their Bilateral Commission that was established in the Obama Administration as a means to discuss the many unresolved issues that had accumulated in the nearly 60 years of strained relations; this session will be discussed in a subsequent post.

President Trump’s U.N. speech boasted about the U.S. announcing “that we will not lift sanctions on the Cuban government until it makes fundamental reforms.” This presumably refers to the U.S. embargo (blockade) of Cuba, which no longer serves any legitimate purpose for the U.S. and which, therefore, should be unilaterally terminated by the U.S. Moreover, the embargo soon will be the subject of a General Assembly resolution that again will condemn that U.S. policy and again undoubtedly will be overwhelming adopted.[6]

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[1] White House, Remarks by President Trump to the 72nd Session of the United Nations General Assembly (Sept. 19, 2017); Landler, Trump Offers a Selective View of Sovereignty in U.N. Speech, N.Y. Times (Sept. 19, 2017); Jaffe & DeYoung, In Trump’s U.N. speech, emphasis on sovereignty echoes his domestic agenda, Wash. Post (Sept. 19, 2017).

[2] Assoc. Press, Reaction to Trump’s UN General Assembly Speech, N.Y. Times (Sept. 19, 2017); Editorial, The Guardian view on Trump at the UN: bluster and belligerence, Guardian (Sept. 19, 2017); Borger, A blunt, fearful rant: Trump’s UN speech left presidential norms in the dust, Guardian (Sept. 19, 2017); Editorial, Warmongers and Peacemakers at the U.N., N.Y. Times (Sept. 19, 2017); Editorial, Trump undermines his own advocacy for human dignity, Wash. Post (Sept. 19, 2017); Ignatius, The most surprising thing about Trump’s U.N. speech, Wash. Post (Sept. 19, 2017); Editorial, Trump Shock at Turtle Bay, W.S.J. (Sept. 20, 2017); Cuban Foreign Minister Condemns Trump’s Aggressive Address at UN, CubaDebate (Sept. 19, 2017); Cuban Foreign Minister in Telesur interview condemns Trump’s aggressive speech at UN, CubaDebate (Sept. 19, 2017); Reuters, Cuba Calls Trump’s U.N. Address ‘Unacceptable and Meddling,’ N.Y. Times (Sept. 19, 2017); Statement by President Trump to the seventy-second session of the United Nations General Assembly, Granma (Sept. 20, 2017).

[3] Theresa May’s speech to the UN General Assembly 2017 (Sept, 20, 2017).

[4] President Trump Announces Reversal of Some U.S.-Cuba Normalization Policies, dwkcommentaries.com (June 19, 2017).

[5] Posts to dwkcommentaries,com: President Trump Announces Reversal of Some Cuba Normalization Policies (June 19, 2017); U.S. Reactions to Trump Reversal of Some U.S.-Cuba Normalization Policies (June 21, 2017); Cuban Reactions to Trump Reversal of Some U.S.-Cuba Normalization Policies  (June 22, 2017); This Blogger’s Reactions to Trump Reversal of Some U.S.-Cuba Normalization Policies (June 23, 2017). Other posts have criticised the proposed ban on individual person-to-person travel to Cuba, E.g., Cuban Entrepreneurs Issue Policy Recommendations to Trump Administration (July 19, 2017).

[6] Last year’s U.N. General Assembly resolution against the embargo is discussed in an earlier post. Other posts about the embargo are listed in the “U.S. Embargo of Cuba” section of List of Posts to dwkcommentaries—Topical: CUBA .

President Raúl Castro Discusses Cuba-U.S. Relations

On July 14, Raúl Castro Ruz, Army General, First Secretary of the Communist Party of Cuba Central Committee and President of the Councils of State and Ministers, addressed a session of Cuba’s legislature (the National Assembly of People’s Power).[1]

A previous post discussed his remarks about Cuba’s private sector. He also made the following comments about the history of Cuba-U.S. relations.[2]

Present Castro’s Comments

President Trump’s Policies Regarding Cuba

“This past June 16, the President of the [U.S.], Donald Trump, announced his administration’s policy toward Cuba, nothing novel for sure, since he retook a discourse and elements from the confrontational past, which showed their absolute failure for over 55 years.”

“It is evident that the U.S. President has not been well informed on the history of Cuba and its relations with the [U.S.], or on the patriotism and dignity of the Cuban people.”

Cuba-U.S. Relations, 1789-2014

“History cannot be forgotten, as they have at times suggested we do. For more than 200 years, the ties between Cuba and the [U.S.] have been marked, on the one hand, by the pretensions of the northern neighbor to dominate our country, and on the other, by the determination of Cubans to be free, independent, and sovereign.”

“Throughout the entire 19th century, invoking the doctrines and policies of Manifest Destiny, of Monroe, and the ‘ripe fruit,’ different U.S. administrations tried to take possession of Cuba, and despite the heroic struggle of the mambises,[3] they did so in 1898, with a deceitful intervention at the end of the war which for 30 years Cubans had waged for their independence, and which the U.S. troops entered as allies and then became occupiers. Negotiating with Spain behind Cuba’s back, they militarily occupied the country for four years, demobilizing the Liberation Army, dissolving the Revolutionary Cuban Party – organized, founded, and led by Martí – and imposed an appendix to the Constitution of the nascent republic, the Platt Amendment, which gave them the right to intervene in our internal affairs and establish, among others, the naval base in Guantánamo, which still today usurps part of the national territory, the return of which we will continue to demand.”

“Cuba’s neocolonial condition, which allowed the [U.S.] to exercise total control over the economic and political life of the island, frustrated, but did not annihilate, the Cuban people’s longing for freedom and independence. Exactly 60 years later, January 1, 1959, with the triumph of the Revolution led by Comandante en Jefe Fidel Castro, we became definitively free and independent.”

“From that moment on, the strategic goal of U.S. policy toward Cuba has been to overthrow the Revolution. To do so, over more than five decades, they resorted to dissimilar methods: economic war, breaking diplomatic relations, armed invasion, attempts to assassinate our principal leaders, sabotage, a naval blockade, the creation and support of armed bands, state terrorism, internal subversion, the economic, commercial, financial blockade, and international isolation.”

Cuba-U.S. Relations, 2014-2017

“Ten administrations held office until President Barack Obama, in his statement of December 17, 2014, without renouncing the strategic goal, had the good sense to recognize that isolation had not worked, and that it was time for a new focus toward Cuba.”

“No one could deny that the [U.S.], in its attempts to isolate Cuba, in the end found itself profoundly isolated. The policy of hostility and blockade toward our country had become a serious obstacle to relations with Latin America and the Caribbean, and was rejected almost unanimously by the international community. Within U.S. society, growing majority opposition to this policy had developed, including among a good portion of the Cuban émigré community.”

“In the Sixth Summit of the Americas in Cartagena de Indias, Colombia, in 2012, Ecuador refused to participate if Cuba was not permitted to attend, and all Latin American and Caribbean countries expressed their rejection of the blockade and Cuba’s exclusion from these events. Many countries warned that another meeting would not take place without Cuba. As such, we arrived in April 2015 – three years later – to the Seventh Summit in Panama, invited for the very first time.”

“Over the last two years, and working on the basis of respect and equality, diplomatic relations have been reestablished and progress made toward resolving pending bilateral matters, as well as cooperation on issues of mutual interest and benefit; limited modifications were made to the implementation of some aspects of the blockade. The two countries established the bases from which to work toward building a new type of relationship, demonstrating that civil coexistence is possible despite profound differences.”

“At the end of President Obama’s term in office, the blockade, the Naval Base in Guantánamo, and the regime change policy, remained in place.”

Cuba-U.S. Relations, 2017–

“The announcements made by the current U.S. President, last June 16, represent a step back in bilateral relations. This is the opinion of many people and organizations in the [U.S.] and around the world, who have overwhelmingly expressed their outright rejection of the announced changes. This sentiment was also expressed by our youth and student organizations, Cuban women, workers, campesinos, Committees for the Defense of the Revolution, intellectuals, and religious groups, on behalf of the vast majority of the nation’s citizens.”

“The U.S. government has decided to tighten the blockade by imposing new obstacles on its businesspeople to trade and invest in Cuba, and additional restrictions on its citizens to travel to the country – justifying these measures with out-dated rhetoric regarding the Cuban people’s exercise and enjoyment of human rights and democracy.”

“President Trump’s decision disregards the support of broad sectors of U.S. society, including the majority of Cuban émigrés, for lifting of the blockade and normalization of relations, and only satisfies the interests of an increasingly isolated, minority group of Cuban origin in South Florida, who insist on harming Cuba and its people for having chosen to defend, at any cost, their right to be free, independent, and sovereign.”

“Today, we reiterate the Revolutionary Government’s condemnation of measures to tighten the blockade, and reaffirm that any attempt to destroy the Revolution, whether through coercion and pressure, or the use of subtle methods, will fail.”

“We likewise reject manipulation of the issue of human rights against Cuba, which has many reasons to be proud of its achievements, and does not need to receive lessons from the [U.S.] or anyone else.”

“I wish to repeat, as I did so in the CELAC Summit held in the Dominican Republic in January of this year, that Cuba is willing to continue discussing pending bilateral issues with the [U.S.], on the basis of equality and respect for the sovereignty and independence of our country, and to continue respectful dialogue and cooperation in issues of common interest with the U.S. government.”

“Cuba and the [U.S.] can cooperate and coexist, respecting our differences and promoting everything that benefits both countries and peoples, but it should not be expected that, in order to do so, Cuba will make concessions essential to its sovereignty and independence. [N]or will it negotiate its principles or accept conditions of any kind, just as we have never done throughout the history of the Revolution.”

“Despite what the government of the [U.S.] does, or does not decide to do, we will continue advancing along the path sovereignly chosen by our people.”

Conclusion

Castro’s review of the history of these relations was succinct, fact-based, fair and necessary for the two countries’ moving forward in a positive direction.

Moreover, the two countries, as Castro said, should be “willing to continue discussing pending bilateral issues . . . on the basis of equality and respect for the sovereignty and independence of [each] country, and to continue respectful dialogue and cooperation in issues of common interest.” The two countries should be able to “cooperate and coexist, respecting our differences and promoting everything that benefits both countries and peoples.”

These principles should govern U.S. relations with Cuba and every other country in the world.

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[1] Castro Ruz, We will continue to advance along the path freely chosen by our people, Granma (July 17, 2017).

[2] Various aspects of this history have been discussed in the posts identified in List of Posts to dwkcommentaries–Topical: CUBA.

[3]Mambises” refers to the guerrilla Cuban independence soldiers who fought against Spain in the Ten Years’ War (1868–78) and Cuban War of Independence (1895–98).

 

Raúl Castro Discusses Socio-Economic Issues in Report to Seventh Congress of the Communist Party of Cuba

Raúl Castro
Raúl Castro

The major event of the first day (April 16) of the four-day Seventh Congress of the Communist Party of Cuba was the two-hour, live televised address by Raúl Castro, the First Secretary of its Central Committee (and also President and General of the Army).[1]

Prior posts provided an overview of the Congress and Castro’s discussion of Cuba-U.S. relations. Most of his address, however, concerned the country’s internal socio-economic and other issues, which will be covered in this post.

A word of caution is necessary for my interpretation of what Castro had to say through an English translation and through his way of speaking about and around an issue. I especially invite corrections and amplifications.

The Congress’ Agenda

 The Congress, Castro said, would consider theses principal draft documents: (1) a summary of the performance of the national economy over the five-year period from 2011-2015, including a report on the results of the implementation of the economic and social policy guidelines of the Party and Revolution and updating of the guidelines for the period 2016-2021; (2) the fundamental elements of the national economic and social development plan through 2030, the nation’s vision, priorities and strategic sectors; (3) the conceptualization of Cuba’s socialist socio-economic model of development; and (4) progress towards meeting the objectives agreed upon by the First Party Conference and directives of the Party Central Committee’s First Secretary.

These documents, he insisted, must not be considered finished works, or an ideological prism, but will be enriched during the Commission’s debates, and subsequently submitted to periodic review, maintaining a dynamic vision of their content.

On this occasion, he clarified, a major process of public debate and consultation on these documents was not held, because they are considered a continuation of the lines agreed upon five years ago, to update the country’s socio-economic model

Additionally, he said, these documents reflect the collective work of many different professionals, and were analyzed during two Central Committee Plenums, a process which led to the submission of 900 opinions and suggestions, included in the latest version.

Raúl noted that this is the first time a Party Congress has considered the conceptualization of the country’s socio-economic model, one which outlines the essential foundations of the society to which Cubans aspire, to be reached via the process of updating underway.

The conceptualization and the basis of the National Economic and Social Development Plan through 2030, following their analysis during the Congress, will not be approved at this event, but rather will go on to be debated by Party and Young Communist League members, representatives of mass organizations and different sectors of society, with the aim of enriching and perfecting said plan, Raúl noted.

Status of the Guidelines Established by Sixth Congress

Raúl noted that when the economic Guidelines were adopted five years ago at the prior Party Congress, it was made clear that “the process of implementation will not be an easy path, free of obstacles and contradictions,” and that the fundamental transformations in the updating of the economic model would take over five years to implement.

Efforts to implement the Guidelines have been systematic, he stated, although only 21% of the 313 approved guidelines had been implemented, while 77% are in that process and 2% have yet to be initiated. However, he admitted, the slow implementation of legal regulations and their assimilation have delayed approval of approved policies.

“The main obstacle we have faced, just as we had predicted, is the issue of out-dated mentalities, which give rise to an attitude of inertia or lack of confidence in the future. There also remain, as was to be expected, feelings of nostalgia for the less difficult times in the revolutionary process, when the Soviet Union and socialist camp existed. At the other extreme there have existed veiled ambitions to restore capitalism as a solution to our problems.” (Emphasis added.)

“When evaluating the pace of transformations underway, we must not lose sight of the fact that in Cuba, we will never allow so-called ‘shock-therapies’ to be applied, frequently used to the detriment of the poorest sectors of society. This premise, which corresponds to our principle that no one will be abandoned to their fate, greatly affects the speed of progress made in the process of updating the country’s economic model, while the impact of the global financial crisis and specifically the effects of the economic blockade against Cuba, are also undeniable.” (Emphasis added.)

Neoliberal policies which encourage the accelerated privatization of state property and social services, such as health, education and social security, will never be applied under Cuba’s socialist model. Even with its current economic limitations, Cuba has preserved and perfected social services for the population in the spheres of Education, Health, Culture, Sports and Social Security. However, we must continue to stress the importance of progressively improving the quality of these services.” (Emphasis added.)

Decisions made with regard to the Cuban economy will never, under any circumstance, mean a break with the ideals of equality and social justice of the Revolution and much less rupture the strong union between the majority of the people and the Party. Neither will we allow such measures to generate instability or uncertainty within the population.” (Emphasis added.)

Cuba’s Economic Performance

“Amid an unfavorable international environment, characterized by the global economic crisis that began at the end of the last decade, in the five-year period between 2011-2015 the gross domestic product of our country grew at an average annual rate of 2.8%.” But this was “not enough to ensure the creation of the productive and infrastructure conditions required to advance development and improve the population’s consumption.” (Emphasis added.)

Indeed, “wages and pensions are still unable to satisfy the basic needs of Cuban families. Although the average wage increased by 43% in the period 2010-2015, this was concentrated in the last two years, a result of decisions benefiting Public Health workers, foreign investment, the sports sector and through the decentralization of state enterprise sector payment systems. However, it has not been possible to extend wage increases outlined in the approved policy to the majority of budgeted activities.”(Emphasis added.)

Although “a set of measures are being introduced designed to remove obstacles that discouraged the different productive forms of our agriculture, . . . these have not yet matured, and the growth rate of agricultural production is still insufficient. . . . [As a result,] on average, each year the country must spend approximately two billion dollars on food imports, half of which we could produce in Cuba and even export the surplus.” (Emphasis added.)

There has been an “increase in prices for agricultural products.” The “fundamental factor in the rising prices resides in insufficient production levels unable to satisfy demand.” Rising prices, however, have resulted in “the resurgence of a trend of speculation and hoarding, benefiting the few and negatively impacting the majority of the population.” The Party and the government “cannot remain unresponsive to citizen’s frustration at the unscrupulous manipulation of prices by intermediaries whose sole consideration is to make more money.” (Emphasis added.)

As a result, “despite the reduction or elimination of certain subsidized basic family goods, that is, from the famous ration book, which are now available in the unregulated market at non-subsidized prices, a high number of basic products and services continue to be subsidized.” (Emphasis added.)

“The export of medical services and tourism continue to expand, contributing more than half of the hard currency earnings of the country, while the influence of [Cuba’s] traditional exports [nickel], hit by falling prices, was reduced.”

“The undeniable international prestige of Cuban medicine . . . holds huge potential which is still not exploited in all its dimensions, for example the provision of medical services to foreign patients in Cuba, for which investments are being made which will also ultimately benefit the Cuban population, which accesses public health care free of charge.” (Emphasis added.)

“In the national Public Health system, a series of measures designed to reorganize, rationalize and regionalize services is being carried out, with the aim of improving the health of the population, the quality of patient care and satisfaction, and the efficiency and sustainability of the sector, while also ensuring its continued development. The perfecting of management structures and adjustments to staff rosters led to a reduction of 152,000 [physician] positions and over 20,000 doctors reallocated. These decisions, in addition to others geared toward ensuring a more rational use of resources, saw the Health budget decrease by more than two billion pesos.” (Emphasis added.)

“In regards to tourism, [since 2011], more than 10,900 new rooms were put into operation and a further 7,000 were renovated, complemented by an increase of over 14,000 rooms rented in CUC by self-employed workers, and the deployment of additional hotel facilities and services, which have facilitated the continued upward trend in this important branch of the economy, which has great potential to promote the development of other sectors and generate production linkages.”

Future Issues for the Cuban Economy

Demographic changes

“Cuba’s increasingly aging population and high number of people migrating from the countryside to the cities, due to a series of socio-economic and cultural factors which are difficult to reverse, represent a strategic problem to the nation’s development. A policy to combat this situation was created, which included 76 measures and 252 actions, to be implemented gradually and in accordance with the performance of the economy with results seen over the long-term.” (Emphasis added.)

Eliminating the duel currency system

Eliminating Cuba’s dual currency system–the Cuban Convertible Peso (CUC) and the Cuban Peso (CUP)–will continue to be difficult but necessary for “updating of the Cuban economic model.” Such a change “will contribute to establishing the necessary conditions to overcome the damaging effects of egalitarianism and fulfilling the socialist principle: ‘From each according to his ability, to each according to his work.’” (Emphasis added.)

Such a change will allow correction of the so-called “inverted pyramid” situation where lower-skilled workers like hotel bus boys and gas pump operators earn more through tips In hard currencies and illegal sales of gasoline than higher-skilled workers like physicians. This lamentable situation “does not allow work to be compensated in a fair manner, in accordance with its quantity, quality and complexity, or living standards to reflect citizens’ legal income.” This situation also generates “an unmotivated workforce and cadres, which also discourages employees from seeking out positions of greater responsibility.” (Emphasis added.)

Maintaining state ownership of the means of production

“We reaffirm the socialist principle of the predominance of the ownership of all the people over the basic means of production, as well as the need to relieve the State of other activities not decisive to the development of the nation.” Yet “state employment was reduced from 81.2% in 2010 to 70.8% in 2015.” (Emphasis added.)

“In socialist and sovereign Cuba, the ownership of the basic means of production by all the people is and will continue to be the main form of the national economy and the socio-economic system and therefore constitutes the basis of the actual power of workers.” (Emphasis added.)

“In an effort to strengthen the role of the socialist state enterprise and its autonomy, we have advanced in the separation of state roles from those of enterprises, gradually modifying relations between government bodies and enterprises, with directors afforded greater faculties in order to successfully carry out their responsibilities.”

“The state enterprise system, which constitutes the main management mode in the national economy, finds itself in at a disadvantage when compared to the growing non-state sector which benefits from working in monetary system with an exchange rate of one CUC to 25 CUP, while the state system operates on a basis of one CUC to one CUP. This serious distortion must be resolved as soon as possible and a single currency reestablished.” (Emphasis added.)

“This anomaly in addition to the modest performance of our national economy, has prevented us from making substantial progress in the implementation of guidelines linked to the gradual elimination of unnecessary gratuities and excessive subsidies, bearing in mind that a general salary increase for all workers has still not been achieved, nor has the stable supply of certain goods in the unregulated market.” (Emphasis added.)

Encouraging private ownership of property

“One of the novel aspects that has attracted the most attention and even some controversy, is the question of property relations, and logically so, as depending on the predominance of one form of ownership over another, a country’s social system is determined.”

The recognition of the existence of private property has generated more than a few honest concerns from participants in the discussions prior to the Congress, who expressed concerns that on doing so we would be taking the first steps towards the restoration of capitalism in Cuba. In my role as First Secretary of the Central Committee of the Party, I have the duty to assert that this is not, in the least, the purpose of this conceptual idea.”

“This is precisely about . . . calling things by their name and not hiding behind illogical euphemisms to mask reality. The increase in self-employment and the authorization to contract a workforce has led in practice to the existence of medium, small and micro private enterprises, which today operate without proper legal status and are regulated under the law by a regulatory framework designed for individuals engaged in small business conducted by the worker and his/her family.

“Guideline No.3 approved by the 6th Congress and which we intend to maintain and strengthen in the updated draft categorically specifies that ‘In the forms of non-state management, the concentration of property shall not be allowed’ and it is added ‘nor of wealth;’ therefore, the private company will operate within well-defined limits and will constitute a complementary element in the economic framework of the country, all of which should be regulated by law.” (Emphasis added.)

We are not naive nor do we ignore the aspirations of powerful external forces [i.e., U.S.] that are committed to what they call the ‘empowerment’ of non-state forms of management, in order to create agents of change in the hope of putting an end to the Revolution and socialism in Cuba by other means.” (Emphasis added.)

Cooperatives, self-employment and medium, small and micro private enterprise are not in their essence anti-socialist or counter-revolutionary and the enormous majority of those who work in them are revolutionaries and patriots who defend the principles and benefit from the achievements of the Revolution.” (Emphasis added.)

Encouraging private enterprise

Non-state employment increased from 18.8% in 2010 to 29.2% in 2015. “Just over half a million Cubans [now] are registered as self-employed; they provide services and generate much-needed production. An atmosphere that does not discriminate against or stigmatize duly authorized self-employment is being defined; however there have been cases of corruption and illegalities, the confrontation of which has proved, once again, to be too little too late, as is the example of evasive behaviors in terms of tax payments and illegal exercise of prohibited activities.” (Emphasis added.)

“Just as we aspire to greater efficiency and quality in state sector production and services, we also favor the success of non-state forms of management, on the basis, in all cases, of strict compliance with current legislation.” (Emphasis added.)

The creation and operation of non-agricultural cooperatives continues in an experimental phase, mainly in trade, gastronomy, technical services, mini-industry and construction.” (Emphasis added.)

“Within this activity, some achievements have also been made, but deficiencies have likewise been revealed, which stem from insufficient preparation and dissemination of the approved policy and regulations issued . . .– inadequate organization and accounting control, price increases and limited access to supplies and services in the wholesale market.”

“At the same time, the management and control of this experiment by the corresponding bodies has been unsuitable, which is why we decided to focus efforts on consolidating already created cooperatives and to advance gradually.”

Recognizing the role of the market

Recognizing the market in the functioning of the our socialist economy does not mean that the Party, government and mass organizations are no longer fulfilling their role in society – which is to combat any situation which may harm the population, nor must we adopt the attitude that ‘t’s a government matter, so I can’t get involved.’ We must remember that I, the party, I, the government, at any level, I, a member of a mass organization am involved in solving any problem that might affect our people.” (Emphasis added.)

The introduction of the rules of supply and demand is not at odds with the principle of planning. Both concepts can coexist and complement each other for the benefit of the country, as has been successfully shown by China’s reform process and the renovation process in Vietnam, as they call it. We have used the term updating to describe our process as we are not changing the fundamental objectives of the Revolution.” (Emphasis added.)

“Positive aspects of this process are the experiences seen in several provinces with the recent adoption of a series of organizational measures, among them, an increase in stockpiling in order to guarantee products in state markets, prompting a reduction in supply and demand chain prices: a matter which requires constant monitoring by all institutions involved..”

Encouraging foreign investment

“The Foreign Investment Policy was approved, recognized as important and necessary to the development of the country, and a new law put into effect, which while offering incentives and legal protection to investors, also preserves national sovereignty, ensures the protection of the environment and rational use of natural resources.” (Emphasis added.)

“The Mariel Special Development Zone was built and offers additional incentives to attract national and foreign investors. The Zone also benefits from a legal framework and the necessary infrastructure to establish and expand production with the aim of generating exports and substituting imports; promoting exchanges of technology and management systems about which the country knows practically nothing; creating jobs and long-term sources of financing; and developing logistics to facilitate high levels of efficiency.” [2] (Emphasis added.)

“Without underestimating in the slightest the obstacles presented by the U.S. blockade and its extraterritorial application, we must do away with archaic prejudices toward foreign investment and continue to advance with the formulation, design, and establishment of businesses.” (Emphasis added.)

The destination of investments has changed substantially. “Five years ago the production and infrastructure sectors received 45% of investments, [whereas in 2015, it was] 70%. Furthermore, greater rigor and control in ensuring that investment plans are successfully carried out has also been seen, with an overall improvement seen in relevant indicators. However, issues still remain with regard to quality assurance and availability of a suitably qualified and motivated work force, while poor planning and a lack of comprehensiveness persist, the result of inadequate training, which leads to deadlines not being met and problems with the quality of work.” (Emphasis added

Limiting foreign indebtedness

“A series of measures aimed at the reorganization of the external finances of the country and in particular the restructuring of debt were implemented, an area in which significant results have been achieved which, together with the fulfillment of financial commitments made, contributes to restoring the international credibility of the Cuban economy and favors greater possibilities for trade, investment and financing for development.”

“We cannot pull back in this sphere and with this aim we must ensure a proper balance in the taking of loans and their structure, the payment of restructured debts, the current debt, and compliance with the plan. We must never again fall into debt.” Emphasis added.)

Issues for the Communist Party of Cuba

In Cuba we have a single Party, of which we are proud, which represents and guarantees the unity of the Cuban nation, the main strategic arm on which we have relied to build the work of the Revolution and defend it from all kinds of threats and aggression. It is therefore no coincidence that we are attacked and demands made of us, from almost all over the planet, to weaken us, to divide us into several parties in the name of sacrosanct bourgeois democracy. These are concepts that should not give rise to confusion, not today, not ever. If they manage some day to fragment us, it would be the beginning of the end, never forget that! If they manage some day to fragment us, it would be the beginning of the end in our homeland, of the Revolution, socialism and national independence, forged with the resistance and sacrifice of several generations of Cubans since 1868.” (Emphasis added.)

The Party now has 670,000 members, which has declined, “impacted by the negative demographic trends affecting the country, a restrictive growth policy maintained since 2004, and shortcomings in efforts to train, retain, and motivate potential members. It is also true however, that this trend has decelerated over recent years.” (Emphasis added.)

“The existence of a single party presupposes stimulating the broadest and frankest exchange of views, both within the party organization and in its link to the grassroots with the workers and the population. The Party is obliged to permanently strengthen and perfect our democracy, for which it is essential to definitively overcome false unanimity, formalism and simulation. The Party has the duty to promote and guarantee the increasing participation of citizens in fundamental decisions of society. We have no fear of different opinions or disagreement, as only frank and honest discussion of differences between revolutionaries will lead to the best decisions. (Emphasis added.)

We know that the Party and the Revolution have the majority support of the people, this is a fact that nobody can deny, however, we are aware that in certain sectors of the population there are manifestations of a lack of commitment and interest in the affairs of our political life, and negative opinions remain regarding the merit of some members and cadres, as well as their disengagement from our people.” (Emphasis added.)

“In the most recent period we have seen an increase in actions aimed at fostering the values of a consumer society; division, apathy, discouragement, alienation, and a lack of confidence in the leadership of the Revolution and the Party, sowing a matrix of opinions that attempts to present us as a society without a future. (Emphasis added.)

“In these circumstances, it is necessary to strengthen intelligent, solid and systematic preventive work and raise the demands and supervision by the bodies responsible for confronting political and ideological subversion, and increase the combativity of members, vigilance in work places and ideological work with younger generations, strengthening the irreplaceable role of the family and school. I repeat: Strengthening the irreplaceable role of the family and school!”

“In the Central Report to the 6th Congress[ in 2011] I referred to the need to gradually undertake, without precipitation or improvisations, the creation of a properly prepared reserve of cadres, with sufficient experience and maturity to take on the new and complex tasks of leadership in the Party, the state and the government. I also expressed the benefit and need to limit the exercise of fundamental political and state positions to a maximum of two consecutive five-year terms, which will be determined by the Central Committee in the case of the Party and mass organizations, and our Parliament as regards the State and government. (Emphasis added.)

“I believe that this matter of strategic importance has also advanced, although the next five years, for obvious reasons, will be decisive and we must introduce additional limits on the composition of the higher bodies of the Party, that is to say, the Central Committee, the Secretariat and the Political Bureau, a transitional process that should be implemented and conclude with the celebration of the next Congress. This is a five-year period of transition to avoid doing things in haste. It is not about getting rid of one person to replace them with another who is 10 years younger and so on. We are behind, and what we want to do, precisely, is to ensure that this flows naturally, and it must be well stipulated in the laws or regulations to be established.”

We propose establishing 60 as the maximum age to join the Central Committee. (Emphasis added.)

The inclusion of younger alternate members on the Central Committee could also be established at another time. The idea is to have a method, a route, a proposal to ensure that we are never surprised by things,that they evolve naturally. In this case, in the future, new members must be less than 60 years of age. No one should think that if you can’t be at a certain leadership level of the country, you can’t do anything, but the experience of some countries has shown us that this is never positive, and even though it is a well-known secret, never forget, that during the final stage of the Soviet Union, over a short period of time, three First Secretaries of the Party died.” (Emphasis added.)

That is why we propose establishing 60 as the maximum age to join the Central Committee, and 70 to assume a leadership position in the Party, which in addition to the limit of two consecutive terms in political positions will guarantee the systematic rejuvenation of the entire system of Party cadre, from the grassroots. And I repeat that subsequently this will need to be regulated precisely, because there will be those who at 75 or 80 years of age can undertake an important task, but not an important leadership activity, for obvious reasons, and because of the very experience with which we are speaking to you.” (Emphasis added.)

‘If this proposal is approved by the Congress, appropriate modifications will be made to the Party Statutes. We believe that this same policy must be implemented in state and government institutions, and in mass organizations.”

“In my case, it is no secret that my second term as President of the Councils of State and Ministers will conclude in 2018, and I will relinquish these responsibilities to whoever is elected.” Emphasis added.)

“These modifications in the area of positions and age limits on the assumption of leadership roles must be established in the Constitution of the Republic, which we propose reforming in the next few years, taking into account the important transformations associated with the updating of our economic and social model, and its conceptualization. Everything we have been doing must be reflected in the Constitution, at the moment that modifications which must be included are ready, and above all, when they have been discussed by the population.”

“The current Constitution, approved by popular referendum in 1976, 40 years ago, and partially reformed in 1992 and 2002, reflects historical circumstances, and social and economic conditions, which have changed with the passing of time, and the current implementation of the Economic and Social Policy Guidelines of the Party and the Revolution.”

“The process of reform, which must be previously approved by the National Assembly, in accordance with its constituent powers, implies broad popular participation, including the holding of a constitutional referendum.”

“This will be an opportunity to codify in our Magna Carta other issues which require a constitutional foundation.”

“I must emphasize that within the scope of these constitutional changes, we will propose reaffirming the irrevocable nature of the political and social system established in the current Constitution, which includes the leadership role of the Communist Party of Cuba in our society, which is Article 5 in the current Constitution.” (Emphasis added.)

Issues for Workers’ Central Union of Cuba (CTC)

“In any Western press agency where you might read something that refers to [the CTC] . . . they add in parentheses: ‘the only one,” as if that were a crime. They want to shape the world – you already know who I mean: the [U.S.] and all those accompanying them – to adjust the world to their advantage, that is what they want to do, and that’s why today we must be more alert than ever. They themselves have said: 50 years of blockade did not work and we could not isolate Cuba, on the contrary, we were running the risk of isolating ourselves in Latin America. We [the U.S.] must change that. And how [is the U.S.] . . . going to change this? With other methods, more difficult to combat. Hence the importance of these issues which must be sufficiently clear in our minds and in our people. (Emphasis added.)

“These are concepts that should not give rise to confusion, not today, not ever. If they manage some day to fragment us, it would be the beginning of the end in our homeland, of the Revolution, socialism and national independence, forged with the resistance and sacrifice of several generations of Cubans since 1868.”

Ideological Challenges

The influence on our reality of the complexities of the world in which we live, the [U.S.] policy of hostility and harassment, the actions aimed at introducing platforms for neoliberal thought and the restoration of capitalism supported by a perverse strategy of political-ideological subversion, which undermine the very essence of the Revolution and Cuban culture, history and the values forged within it, the undeniable existence of accumulated problems in society, to which are added the process of the implementation of the Guidelines itself and the profound changes in which we are immersed, as well as the new scenario of relations between Cuba and the [U.S.], are facts that present greater challenges to ideological efforts. These programs target sectors that the enemy identifies as the most vulnerable and include young people, intellectuals, workers associated with non-state forms of management, and communities with greater material and financial difficulties. (Emphasis added.)

At the same time as we safeguard the historical memory of the nation and perfect differentiated ideological work, with special emphasis on youth and children, we must reinforce anti-capitalist and anti-imperialist culture among ourselves, fighting with arguments, conviction and resolve the attempts at establishing patterns of petty bourgeois ideology characterized by individualism, selfishness, the pursuit of profit, banality, and the intensifying of consumerism. (Emphasis added.)

The best antidote to political subversion is working with integrity and without improvisation, doing things well, improving the quality of services to the population, not allowing problems to accumulate, enhancing knowledge of the history of Cuba, national identity and culture, exalting the pride of being Cuban and fostering an atmosphere of legality, defense of public property, respect for the dignity of people, values and social discipline across the country. (Emphasis added.)

Conclusion

It was not easy to unpack Raúl Castro’s lengthy address, which came without any captioned divisions and subdivisions and which, in my judgment, did not have a precise logical structure. The above is my attempt to add such captions, highlighting and structure to better understand what he was saying.

Obviously Cuba is struggling with how to integrate free enterprise and free markets into its state-run economy. It is finding that is not an easy endeavor.

However, I am reminded that as a senior college student in 1960-61 I read a book on that very subject by a Polish economist, Oskar Lange, The Economic Theory of Socialism, in which he put Marxian and neoclassical economics together. He advocated the use of market tools (especially the neoclassical pricing theory) in economic planning of socialism and Marxism. He proposed that central planning boards set prices through “trial and error”, making adjustments as shortages and surpluses occurred rather than relying on a free price mechanism. Under this system, central planners “would arbitrarily pick a price for products manufactured in government factories and raise it or reduce it depending on whether it resulted in shortages or gluts. After this economic experiment had been run a few times, mathematicians capable of solving complex simultaneous equations would be able to plan the economy If there were shortages, prices would be raised; if there were surpluses, prices would be lowered. Raising the prices would encourage businesses to increase production, driven by their desire to increase their profits, and in doing so eliminate the shortage. Lowering the prices would encourage businesses to curtail production in order to prevent losses, which would eliminate the surplus. Therefore, it would be a simulation of the market mechanism, which Lange thought would be capable of effectively managing supply and demand. Proponents of this idea argue that it combines the advantages of a market economy with those of socialist economics.

I also was struck with Castro’s frank admissions of the many problems in the economy and the Party: failure to provide most Cubans with an adequate income, inadequate production of food, declining Party membership and the competing ideology of capitalism, wealth and consumerism. There was some irony to Castro’s admissions or complaints. As president of Cuba and head of the Party, he maintains near-total control of the country. And the slowness he derided is an essential part of his own policy. Castro repeated Saturday that Cuba’s reforms would be “with neither haste nor pause” and that the country would never feel the “shock therapy” experienced by other socialist states.

Castro touched on the problems associated with an aging and urbanized population. However, he did not connect the increasing departure of young Cubans seeking better economic opportunities, such as those recently transiting through Central America, as contributing to the aging population. Aren’t those young Cubans voting with their feet on the current and future economic prospects in Cuba? And there is no countervailing movement of great numbers of young people to come and live in Cuba. Neither of these groups see Cuba as utopia.

Like most observers, I was surprised to hear Castro, age 85, call for term and age limits for future leaders of the Party and the government.

Unsurprising was the continued hostility towards the U.S. and its ideas.

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[1] Congress documents will be submitted to a broad discussion, Granma (April 16, 2016); 7th Party Congress underway, Granma (April 16, 2016); Raúl Castro, Central Report to 7th Congress of Communist Party of Cuba, Granma (April 16, 2016) (text in original Spanish); Raúl Castro, Central Report to 7th Congress of Communist Party of Cuba, Granma (April 17, 2016) (text in English translation); Burnett, Raúl Castro Urges Cubans to Remain Alert to U.S. Efforts to Alter Communist System, N.Y. Times (April 16, 2016); Reuters, Castro Hardens Rhetoric, Warns Cubans to Be Alert to U.S. Intentions, N.Y. Times (April 16, 2016); Assoc. Press, Raul Castro Presents Grim Picture of Cuban Reforms, N.Y. Times (April 16, 2016); Torres, Raúl Castro proposes age limits on key jobs in CCP, Miami Herald (April 16, 2016); Raúl Castro derides US democracy in speech to Cuban Communist Party, Guardian (April 16, 2016); Editorial, Rhetoric and reality in Cuba, El Pais (April 17, 2016).

[2] The new deep-water port at Mariel, Cuba just west of Havana and its associated industrial park have been discussed in a prior post: Port of Mariel Cuba Has Great Potential for U.S. Business (April 1, 2016).

President Obama’s Eloquent Speech to the Cuban People

On March 22, U,s, President Barack Obama addressed the past and future of U.S.-Cuba relations in a lengthy and eloquent speech at Havana’s Alicia Alonso Grand Theater. The in-person audience of 1,000 included Cuban President Raúl Castro and other officials and U.S. officials and business people. By live television, the audience also included the Cuban people. {1]  Below are photographs of the exterior of the Theater and of President Castro and other Cuban officials in a balcony at the Theater for the speech.

Theater exterior

Castro + @ speech

 

 

 

 

Here we will examine the speech itself, and a subsequent post will look at the reactions to the speech in Cuba and the U.S.

Summary of the Speech

Obama recognized that the two countries shared many things, including being colonized by Europeans and helped by slaves from Africa as well as patriotism and pride, love of family and hope for our children.

The last 50 years, however, have caused many disruptions in our countries’ connections. We are like two brothers who have been estranged for years even as we share the same blood.

The December 17, 2014, joint announcement of our two governments seeking restoration of normal relations was prompted by the U.S. recognition that its policies, including the embargo, were not working and needed to change and that the U.S. needed to help the Cuban people. Obama was in Cuba to end the last remnant of the Cold War and to declare that Cuba need not fear the U.S.

Even though the U.S. was not seeking to force change on Cuba, Obama stated that there were important universal rights that were as important for Cubans as they were for U.S. citizens: equality before the law; right to education, food and housing; freedom from arbitrary arrests; rights to practice their religious faith, assemble, organize, protest peacefully, criticize the government and elect their government leaders. Here is a photograph of President Obama giving the speech.

Obama speech

Text of the Speech

Here then is the actual text of his speech with an opening quotation from a poem by Cuba’s revered national poet, Jose Marti, that offered friendship and peace to both his friend and his enemy, “’Cultivo una rosa blanca’ [I plant a white rose]. Today, as the President of the United States of America, I offer the Cuban people el saludo de paz [the greeting of peace].”

“Havana is only 90 miles from Florida, but to get here we had to travel a great distance — over barriers of history and ideology; barriers of pain and separation.  The blue waters beneath Air Force One once carried American battleships to this island — to liberate, but also to exert control over Cuba.  Those waters also carried generations of Cuban revolutionaries to the United States, where they built support for their cause.  And that short distance has been crossed by hundreds of thousands of Cuban exiles — on planes and makeshift rafts — who came to America in pursuit of freedom and opportunity, sometimes leaving behind everything they owned and every person that they loved.”

“Like so many people in both of our countries, my lifetime has spanned a time of isolation between us.  The Cuban Revolution took place the same year that my father came to the United States from Kenya.  The Bay of Pigs took place the year that I was born. The next year, the entire world held its breath, watching our two countries, as humanity came as close as we ever have to the horror of nuclear war.  As the decades rolled by, our governments settled into a seemingly endless confrontation, fighting battles through proxies.  In a world that remade itself time and again, one constant was the conflict between the United States and Cuba.”

“I have come here to bury the last remnant of the Cold War in the Americas. I have come here to extend the hand of friendship to the Cuban people.”

“I want to be clear:  The differences between our governments over these many years are real and they are important.  I’m sure President Castro would say the same thing — I know, because I’ve heard him address those differences at length.  But before I discuss those issues, we also need to recognize how much we share.  Because in many ways, the United States and Cuba are like two brothers who’ve been estranged for many years, even as we share the same blood.”

“We both live in a new world, colonized by Europeans.  Cuba, like the United States, was built in part by slaves brought here from Africa.  Like the United States, the Cuban people can trace their heritage to both slaves and slave-owners.  We’ve welcomed both immigrants who came a great distance to start new lives in the Americas.”

“Over the years, our cultures have blended together. Dr. Carlos Finlay’s work in Cuba paved the way for generations of doctors, including Walter Reed, who drew on Dr. Finlay’s work to help combat Yellow Fever.  Just as Marti wrote some of his most famous words in New York, Ernest Hemingway made a home in Cuba, and found inspiration in the waters of these shores.  We share a national past-time — La Pelota [baseball]– and later today our players will compete on the same Havana field that Jackie Robinson played on before he made his Major League debut. And it’s said that our greatest boxer, Muhammad Ali, once paid tribute to a Cuban that he could never fight — saying that he would only be able to reach a draw with the great Cuban, Teofilo Stevenson.”

“So even as our governments became adversaries, our people continued to share these common passions, particularly as so many Cubans came to America.  In Miami or Havana, you can find places to dance the Cha-Cha-Cha or the Salsa, and eat ropa vieja [shredded pork or beef].  People in both of our countries have sung along with Celia Cruz or Gloria Estefan, and now listen to reggaeton or Pitbull. Millions of our people share a common religion — a faith that I paid tribute to at the Shrine of our Lady of Charity in Miami, a peace that Cubans find in La Cachita.”

“For all of our differences, the Cuban and American people share common values in their own lives.  A sense of patriotism and a sense of pride — a lot of pride.  A profound love of family.  A passion for our children, a commitment to their education.  And that’s why I believe our grandchildren will look back on this period of isolation as an aberration, as just one chapter in a longer story of family and of friendship.”

“But we cannot, and should not, ignore the very real differences that we have — about how we organize our governments, our economies, and our societies.  Cuba has a one-party system; the United States is a multi-party democracy.  Cuba has a socialist economic model; the United States is an open market.  Cuba has emphasized the role and rights of the state; the United States is founded upon the rights of the individual.”

“Despite these differences, on December 17th 2014, President Castro and I announced that the United States and Cuba would begin a process to normalize relations between our countries. Since then, we have established diplomatic relations and opened embassies.  We’ve begun initiatives to cooperate on health and agriculture, education and law enforcement.  We’ve reached agreements to restore direct flights and mail service.  We’ve expanded commercial ties, and increased the capacity of Americans to travel and do business in Cuba.”

“And these changes have been welcomed, even though there are still opponents to these policies.  But still, many people on both sides of this debate have asked:  Why now?  Why now?”

“There is one simple answer:  What the United States was doing was not working.  We have to have the courage to acknowledge that truth.  A policy of isolation designed for the Cold War made little sense in the 21st century.  The embargo was only hurting the Cuban people instead of helping them.  And I’ve always believed in what Martin Luther King, Jr. called ‘the fierce urgency of now’ — we should not fear change, we should embrace it.”

“That leads me to a bigger and more important reason for these changes:  Creo en el pueblo Cubano.  I believe in the Cuban people. This is not just a policy of normalizing relations with the Cuban government.  The United States of America is normalizing relations with the Cuban people.”

“And today, I want to share with you my vision of what our future can be.  I want the Cuban people — especially the young people — to understand why I believe that you should look to the future with hope; not the false promise which insists that things are better than they really are, or the blind optimism that says all your problems can go away tomorrow.  Hope that is rooted in the future that you can choose and that you can shape, and that you can build for your country.”

“I’m hopeful because I believe that the Cuban people are as innovative as any people in the world.”

“In a global economy, powered by ideas and information, a country’s greatest asset is its people.  In the United States, we have a clear monument to what the Cuban people can build: it’s called Miami.  Here in Havana, we see that same talent in cuentapropistas [self-employed workers], cooperatives and old cars that still run.  El Cubano inventa del aire. [Cubans invented the air.]”

“Cuba has an extraordinary resource — a system of education which values every boy and every girl. And in recent years, the Cuban government has begun to open up to the world, and to open up more space for that talent to thrive.  In just a few years, we’ve seen how cuentapropistas  can succeed while sustaining a distinctly Cuban spirit.  Being self-employed is not about becoming more like America, it’s about being yourself.”

“Look at Sandra Lidice Aldama, who chose to start a small business.  Cubans, she said, can ‘innovate and adapt without losing our identity…our secret is in not copying or imitating but simply being ourselves.’”

“Look at Papito Valladeres, a barber, whose success allowed him to improve conditions in his neighborhood.  ‘I realize I’m not going to solve all of the world’s problems,’ he said.  ‘But if I can solve problems in the little piece of the world where I live, it can ripple across Havana.’”

“That’s where hope begins — with the ability to earn your own living, and to build something you can be proud of.  That’s why our policies focus on supporting Cubans, instead of hurting them.  That’s why we got rid of limits on remittances — so ordinary Cubans have more resources.  That’s why we’re encouraging travel — which will build bridges between our people, and bring more revenue to those Cuban small businesses. That’s why we’ve opened up space for commerce and exchanges — so that Americans and Cubans can work together to find cures for diseases, and create jobs, and open the door to more opportunity for the Cuban people.”

“As President of the United States, I’ve called on our Congress to lift the embargo. It is an outdated burden on the Cuban people.  It’s a burden on the Americans who want to work and do business or invest here in Cuba.  It’s time to lift the embargo.  But even if we lifted the embargo tomorrow, Cubans would not realize their potential without continued change here in Cuba. It should be easier to open a business here in Cuba.  A worker should be able to get a job directly with companies who invest here in Cuba.  Two currencies shouldn’t separate the type of salaries that Cubans can earn.  The Internet should be available across the island, so that Cubans can connect to the wider world and to one of the greatest engines of growth in human history.”

“There’s no limitation from the United States on the ability of Cuba to take these steps.  It’s up to you.  And I can tell you as a friend that sustainable prosperity in the 21st century depends upon education, health care, and environmental protection.  But it also depends on the free and open exchange of ideas.  If you can’t access information online, if you cannot be exposed to different points of view, you will not reach your full potential.  And over time, the youth will lose hope.”

“I know these issues are sensitive, especially coming from an American President.  Before 1959, some Americans saw Cuba as something to exploit, ignored poverty, enabled corruption. And since 1959, we’ve been shadow-boxers in this battle of geopolitics and personalities. I know the history, but I refuse to be trapped by it.”

“I’ve made it clear that the United States has neither the capacity, nor the intention to impose change on Cuba.  What changes come will depend upon the Cuban people.  We will not impose our political or economic system on you.  We recognize that every country, every people, must chart its own course and shape its own model.  But having removed the shadow of history from our relationship, I must speak honestly about the things that I believe — the things that we, as Americans, believe.  As Marti said, ‘Liberty is the right of every man to be honest, to think and to speak without hypocrisy.’”

“So let me tell you what I believe.  I can’t force you to agree, but you should know what I think.  I believe that every person should be equal under the law. Every child deserves the dignity that comes with education, and health care and food on the table and a roof over their heads. I believe citizens should be free to speak their mind without fear, to organize, and to criticize their government, and to protest peacefully, and that the rule of law should not include arbitrary detentions of people who exercise those rights. I believe that every person should have the freedom to practice their faith peacefully and publicly. And, yes, I believe voters should be able to choose their governments in free and democratic elections.”

“Not everybody agrees with me on this.  Not everybody agrees with the American people on this.  But I believe those human rights are universal. I believe they are the rights of the American people, the Cuban people, and people around the world.”

“Now, there’s no secret that our governments disagree on many of these issues.  I’ve had frank conversations with President Castro.  For many years, he has pointed out the flaws in the American system — economic inequality; the death penalty; racial discrimination; wars abroad.  That’s just a sample.  He has a much longer list. But here’s what the Cuban people need to understand:  I welcome this open debate and dialogue. It’s good.  It’s healthy.  I’m not afraid of it.”

“We do have too much money in American politics.  But, in America, it’s still possible for somebody like me — a child who was raised by a single mom, a child of mixed race who did not have a lot of money — to pursue and achieve the highest office in the land.  That’s what’s possible in America.”

“We do have challenges with racial bias — in our communities, in our criminal justice system, in our society — the legacy of slavery and segregation.  But the fact that we have open debates within America’s own democracy is what allows us to get better.  In 1959, the year that my father moved to America, it was illegal for him to marry my mother, who was white, in many American states.  When I first started school, we were still struggling to desegregate schools across the American South.  But people organized; they protested; they debated these issues; they challenged government officials.  And because of those protests, and because of those debates, and because of popular mobilization, I’m able to stand here today as an African-American and as President of the United States.  That was because of the freedoms that were afforded in the United States that we were able to bring about change.”

“I’m not saying this is easy. There’s still enormous problems in our society.  But democracy is the way that we solve them.  That’s how we got health care for more of our people.  That’s how we made enormous gains in women’s rights and gay rights.  That’s how we address the inequality that concentrates so much wealth at the top of our society.  Because workers can organize and ordinary people have a voice, American democracy has given our people the opportunity to pursue their dreams and enjoy a high standard of living.”

“Now, there are still some tough fights.  It isn’t always pretty, the process of democracy.   It’s often frustrating.  You can see that in the election going on back home.  But just stop and consider this fact about the American campaign that’s taking place right now.  You had two Cuban Americans in the Republican Party, running against the legacy of a black man who is President, while arguing that they’re the best person to beat the Democratic nominee who will either be a woman or a Democratic Socialist. Who would have believed that back in 1959?  That’s a measure of our progress as a democracy.”

“So here’s my message to the Cuban government and the Cuban people:  The ideals that are the starting point for every revolution — America’s revolution, Cuba’s revolution, the liberation movements around the world — those ideals find their truest expression, I believe, in democracy.  Not because American democracy is perfect, but precisely because we’re not.  And we — like every country — need the space that democracy gives us to change.  It gives individuals the capacity to be catalysts to think in new ways, and to reimagine how our society should be, and to make them better.”

“There’s already an evolution taking place inside of Cuba, a generational change.  Many suggested that I come here and ask the people of Cuba to tear something down — but I’m appealing to the young people of Cuba who will lift something up, build something new.  El futuro  de Cuba tiene que estar en las manos del pueblo Cubano. [The future of Cuba must be in the hands of the Cuban people.]”

English “And to President Castro — who I appreciate being here today — I want you to know, I believe my visit here demonstrates you do not need to fear a threat from the United States.  And given your commitment to Cuba’s sovereignty and self-determination, I am also confident that you need not fear the different voices of the Cuban people — and their capacity to speak, and assemble, and vote for their leaders.  In fact, I’m hopeful for the future because I trust that the Cuban people will make the right decisions.”

“And as you do, I’m also confident that Cuba can continue to play an important role in the hemisphere and around the globe — and my hope is, is that you can do so as a partner with the United States.”

“We’ve played very different roles in the world.  But no one should deny the service that thousands of Cuban doctors have delivered for the poor and suffering. Last year, American health care workers — and the U.S. military — worked side-by-side with Cubans to save lives and stamp out Ebola in West Africa.  I believe that we should continue that kind of cooperation in other countries.”

“We’ve been on the different side of so many conflicts in the Americas.  But today, Americans and Cubans are sitting together at the negotiating table, and we are helping the Colombian people resolve a civil war that’s dragged on for decades. That kind of cooperation is good for everybody.  It gives everyone in this hemisphere hope.”

“We took different journeys to our support for the people of South Africa in ending apartheid.  But President Castro and I could both be there in Johannesburg to pay tribute to the legacy of the great Nelson Mandela. And in examining his life and his words, I’m sure we both realize we have more work to do to promote equality in our own countries — to reduce discrimination based on race in our own countries.  And in Cuba, we want our engagement to help lift up the Cubans who are of African descent, who’ve proven that there’s nothing they cannot achieve when given the chance.”

“We’ve been a part of different blocs of nations in the hemisphere, and we will continue to have profound differences about how to promote peace, security, opportunity, and human rights.  But as we normalize our relations, I believe it can help foster a greater sense of unity in the Americas — todos somos Americanos [we are all Americans].”

“From the beginning of my time in office, I’ve urged the people of the Americas to leave behind the ideological battles of the past.  We are in a new era.  I know that many of the issues that I’ve talked about lack the drama of the past.  And I know that part of Cuba’s identity is its pride in being a small island nation that could stand up for its rights, and shake the world. But I also know that Cuba will always stand out because of the talent, hard work, and pride of the Cuban people.  That’s your strength. Cuba doesn’t have to be defined by being against the United States, any more than the United States should be defined by being against Cuba.  I’m hopeful for the future because of the reconciliation that’s taking place among the Cuban people.”

“I know that for some Cubans on the island, there may be a sense that those who left somehow supported the old order in Cuba.  I’m sure there’s a narrative that lingers here which suggests that Cuban exiles ignored the problems of pre-Revolutionary Cuba, and rejected the struggle to build a new future.  But I can tell you today that so many Cuban exiles carry a memory of painful — and sometimes violent — separation.  They love Cuba.  A part of them still considers this their true home. That’s why their passion is so strong.  That’s why their heartache is so great.  And for the Cuban-American community that I’ve come to know and respect, this is not just about politics. This is about family — the memory of a home that was lost; the desire to rebuild a broken bond; the hope for a better future the hope for return and reconciliation.”

“For all of the politics, people are people, and Cubans are Cubans.  And I’ve come here — I’ve traveled this distance — on a bridge that was built by Cubans on both sides of the Florida Straits.  I first got to know the talent and passion of the Cuban people in America.  And I know how they have suffered more than the pain of exile — they also know what it’s like to be an outsider, and to struggle, and to work harder to make sure their children can reach higher in America.”

“So the reconciliation of the Cuban people — the children and grandchildren of revolution, and the children and grandchildren of exile — that is fundamental to Cuba’s future.”

“You see it in Gloria Gonzalez, who traveled here in 2013 for the first time after 61 years of separation, and was met by her sister, Llorca.  ‘You recognized me, but I didn’t recognize you,’ Gloria said after she embraced her sibling.  Imagine that, after 61 years.”

“You see it in Melinda Lopez, who came to her family’s old home.  And as she was walking the streets, an elderly woman recognized her as her mother’s daughter, and began to cry.  She took her into her home and showed her a pile of photos that included Melinda’s baby picture, which her mother had sent 50 years ago.  Melinda later said, ‘So many of us are now getting so much back.’”

“You see it in Cristian Miguel Soler, a young man who became the first of his family to travel here after 50 years.  And meeting relatives for the first time, he said, ‘I realized that family is family no matter the distance between us.’”

“Sometimes the most important changes start in small places. The tides of history can leave people in conflict and exile and poverty.  It takes time for those circumstances to change.  But the recognition of a common humanity, the reconciliation of people bound by blood and a belief in one another — that’s where progress begins.  Understanding, and listening, and forgiveness. And if the Cuban people face the future together, it will be more likely that the young people of today will be able to live with dignity and achieve their dreams right here in Cuba.”

“The history of the United States and Cuba encompass revolution and conflict; struggle and sacrifice; retribution and, now, reconciliation.  It is time, now, for us to leave the past behind.  It is time for us to look forward to the future together — un future de esperanza [a future of hope].  And it won’t be easy, and there will be setbacks.  It will take time.  But my time here in Cuba renews my hope and my confidence in what the Cuban people will do.  We can make this journey as friends, and as neighbors, and as family — together.  Si se puede.  Muchas gracias. [Yes we can. Many thanks.]”

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[1] White House, Remarks by President Obama to the People of Cuba (March 22, 2016); Agence France-Press, President’s Full Speech in Cuba, N.Y. times (Mar. 22, 2016) (complete video of speech); Davis, Obama in Havana Speech, Says Cuba Has Nothing To Fear from U.S., N.Y. Times (Mar. 22, 2016); Reuters, Obama Challenges Communist-Led Cuba With Call for Democracy, N.Y. Times (Mar. 22, 2016); Assoc. Press, In Cuba, Obama Calls for Burying ‘Last Remnant of Cold War,’ N.Y. Times (Mar. 22, 2016); Eliperin & DeYoung, Obama addresses the Cuban nation: “It is time now for us to leave the past behind,’ Wash. Post (Mar. 22, 2016).

 

 

 

 

 

 

 

 

 

Resolving U.S. and Cuba Damage Claims

On December 8, the U.S. and Cuba held discussions in Havana about the two countries’ damage claims: (1) U.S. claims to recover damages for U.S. property interests that were expropriated by the Cuban government at the start of the Cuban Revolution in 1959.; (2) U.S. courts’ money judgments against Cuba; (3) Cuba’s claims for alleged damages resulting from the U.S. embargo of Cuba; and (4) Cuba’s alleged damage claims for Cubans personal injuries and deaths from U.S. hostile actions.

This post will briefly examine those claims, the recent U.S.-Cuba discussions on the subject and an analysis of the issues by Washington, D.C.’s Brookings Institution.

Summary of the Claims

  1. Cuba’s Expropriation of U.S. Property[1]

Some 5,913 U.S. corporations and individuals have $1.9 billion worth of claims (without interest) for factories, farms, homes and other assets that were nationalized in Cuba after Fidel Castro’s rebels came to power in 1959. These claims have been registered and validated by the U.S. Justice Department’s Foreign Claims Settlement Commission. They are now worth roughly $8 billion when including 6.0 percent annual interest. These claims (without interest) have been categorized by the Brookings Institution’s report discussed below:

Claimants Claims Amount ($USD)
Corporate 899 1,677,280,771
Individual 5,014 229,199,112
TOTAL 5,913 1,906,479,883

 

Nevertheless, the Brookings’ report identifies these potential issues with respect to the claims validated by the U.S. Commission: (1) Whether to recognize the Commission rulings as a legitimate procedure in which cuba did not participate; (2) Whether to accept or challenge its valuations of lost properties; (3)  Whether Cuba should recognize accumulated interest as awarded by the Commission on its certified claims or whether to negotiate an alternative benchmark interest rate or other formula for partial payments.

2. U.S. Court Judgments Against Cuba[2]

In U.S. courts various plaintiffs have sued the Cuban Government, which did not appear in the cases. As a result the courts entered default judgments against Cuba, now totaling $2 billion.

3. U.S. Embargo of Cuba[3]

In a 2015 report to the United Nations General Assembly, Cuba asserted that the accumulated economic damages from the U.S. economic sanctions had reached $121 billion. The annual report offers some estimates on sectoral damages but does not discuss methodology. An earlier 1992 Cuban statement detailed these estimated cumulative losses among others:: (a) $3.8 billion for losses in the tourist industry; (b) $400 million for losses in the nickel industry; (c) $375 million for the higher costs of freighters; (d) $200 million for the purchase of sugarcane crop equipment to substitute for U.S.-manufactured equipment; and (e) $120 million for the substitution of electric industry equipment

4. Cubans Killed or Injured by Alleged U.S. Hostilities[4]

The Cuban government claims that U.S. “acts of terrorism against Cuba have caused 3,478 deaths and 2,099 disabling injuries.” Examples of such alleged acts include (a) U.S.-supported hostilities in Cuba resulting in 549 deaths between 1959-1965; (b) the Bay of Pigs invasion resulting in 176 deaths and over 300 wounded of whom 50 were left incapacitated; (c) the explosion of the French vessel La Coubre on March 4, 1960 in Havana Harbor, resulting in 101 deaths including some French sailors; (d) the terrorist bombing of Cuban Airlines Flight 455 in 1976 killing all 73 persons on board including 57 Cubans; (e) the September 11, 1980 assassination of Cuban diplomat Félix García Rodriguez in New York City; (f) Numerous aggressions from the U.S. naval base in Guantanamo resulting in the deaths of Cuban citizens; and (g) suspicions that the U.S. employed biological warfare to spread fatal dengue fever in Cuba.

Recent U.S.-Cuba Discussions[5]

Immediately before the December 8 discussions, a U.S. State Department spokesperson said the U.S. expected this to be “a first step in what we expect to be a long and complex process, but the United States views the resolution of outstanding claims as a top priority for normalization.”

Afterwards a U.S official said that reaching a settlement of these claims was “a top priority” for the U.S. and that these talks were “fruitful” and would continue in 2016. This official also said that the U.S. had provided information on the additional $2 billion in judgments awarded to plaintiffs who had sued the Cuban government in U.S. courts, proceedings that ­Havana does not recognize.

Other than the above sketchy summary, very little has publicly emerged about the specifics of the talks. It sounds as if the discussions were akin to the pretrial discovery process in U.S. civil lawsuits when parties learn about each other’s evidence and arguments.

A Cuba legal expert, Pedro Freyre, said, “It’s the first time the two countries are going back to look at this history and try to sort out a system for fixing it.” The Cubans, he added, were “very tough, very clever” in such negotiations.

Brookings Institution’s Analysis[6]

Richard Feinberg
Richard Feinberg

On the same day as the U.S.-Cuba discussions (December 8), the Brookings Institution released a cogent report on the subject by Richard Feinberg, a nonresident senior fellow in Brookings’ Latin American Initiative. [7]

Introducing the report at a press conference, Feinberg said, “The convening of these talks in Havana [is] a major milestone in the process of gradual full normalization of relations between the United States and Cuba, especially important with regard to commercial relations. Property ownership and claims are at the strategic heart of the Cuban revolution, dating from the early 1960s and also a major cause, perhaps the major cause, of the conflict between the United States and the Cuban revolution. The seizure of U.S. properties was the proximate cause of the imposition of U.S. economic sanctions back in the early 1960s.” These talks are of “strategic importance in the bilateral relationship.”

Feinberg also emphasized that both the U.S. and Cuba “agree on the principle of compensation” for expropriation of property.” Indeed, he said, to do so is in Cuba’s national interest. It “wants to demonstrate [that] it is not a rogue nation . . . [that] it is a nation of laws” and it “wants to remove major irritants to its international diplomacy and commercial relations” and “to attract international investment.”

Another point made by Feinberg was Cuba was not so poor that it could not pay any compensation, especially if the payments were spread out over time, as seems likely.

In addition to setting forth information about the above claims, the report examined the following ways of resolving these claims.

  1. The Grand Bargain

The Report asserts that “a much more promising alternative approach” is “to take advantage of the very size and complexity of the conflicting claims and to make their resolution the centerpiece of a grand bargain that would resolve some of the other remaining points of tension between the two nations, and embrace an ambitious, forward-looking development strategy for Cuba.”

In such a grand bargain, “the settlement of U.S. claims could be wrapped in a package of economic opportunities for Cuba. Importantly, the United States could further relax its economic sanctions (amending or repealing Helms-Burton), providing more trade and investment opportunities – and the capacity for Cuba to earn the foreign exchange needed to service debt obligations. In turn, Cuba will have to accelerate and deepen its economic reforms, to offer a more attractive business environment for investors and exporters. Politically, the Cuban government could present a significant softening of the U.S. embargo as a victory, offsetting any concessions made in the claims negotiations. A comprehensive package might also be more attractive to the U.S. Congress; formal Congressional consent would enhance the measures’ legitimacy and durability and help to close off any court challenges, should some claimants be unsatisfied with the final settlement.”

“The [U.S.] strategic goals in a massive claims resolution process must be political: to heal the deep wounds of past conflicts, to lay foundations for peaceful coexistence and the non-violent resolution of disputes, to avoid jeopardizing fiscal balances and crippling debt burdens, to build investor confidence and international reputation, and to help render the Cuban economy more open and competitive. . . . In the interests of both Cuba and the United States, the twentieth-century trauma of massive property seizures should be transformed into a twenty-first century economic development opportunity.”

“Wrapping a claims settlement within a more sweeping diplomatic package could have large advantages. A robust accord could help overcome long-simmering bilateral animosities and reconcile the fractured Cuban family. Potentially embarrassing ‘concessions’ by either party could be masked by larger victories on more weighty or emotive issues. What to some might appear the unseemly materialism or inequity of property claims would be subsumed within a higher-toned humanitarian achievement. Having turned the page on a half-century long era of conflict, Cuban society could begin in earnest on a new path toward social peace and shared prosperity. The claims settlement, which would bolster investor confidence, could also be linked to a reformed economic development model for Cuba actively supported by the international community.”

2. Lump-Sum Settlement

Separate resolution of the damage claims could be done in a lump-sum settlement, whereby “the two governments negotiate a total amount of financial compensation that is transferred in a lump-sum or global indemnity to the plaintiff government which in turn assumes the responsibility to distribute the transferred monies among its national claimants.” Such a settlement would provide “greater efficiency in coping with large numbers of claims; enhanced consistency in the administration and adjudication of claims; promoting fairness among claimants in setting criteria for evaluating claims and distributing awards; and upholding professionalism and integrity in the national claims commission.” In addition, sometimes lump-sum arrangements “allow the two governments to address other matters, such as broader investment and trade relations.”

3. Two-Tier Resolution

Another way for separate resolution of the U.S. expropriation damage claims is what Brookings calls a two-tier solution, “whereby corporate claimants can choose either to seek creative bargains, or join individual claimants in a lump-sum settlement.”

The 5,014 individual claims validated by the U.S. Commission total about $229 million (without interest). Of these, only 39 amount to over $1 million each while only four were valued at over $5 million. A lump-sum cash settlement of these claims could be shared share equitably by all or with caps on those over a certain figure, such as $ 1 million.

The 899 corporate claims are heavily concentrated: the top 10 corporate claims are valued at nearly $1 billion while the top 50 at $1.5 billion. “The corporate claimants could be given the opportunity to be included in a lump-sum settlement—albeit possibly facing an equity hair-cut to limit the burden on Cuba and to ensure a minimum payment to the smaller claimants—or to ‘opt out’ of the general settlement and instead seek alternative remedies” in Cuba, such as a voucher for new investment; a right to operate a new business; a final project authorization for a new venture; a preferred acquisition right for a venture; Cuba sovereign bonds; and restoration of properties.

Conclusion

Although I hope that the Brookings’s “grand bargain” or more limited negotiated solution is reached, a Miami Herald article emphasizes the difficulties in reaching any settlement. First, some of the claims that were validated by the U.S. Foreign Claims Settlement Commission could be stricken from the list that the U.S. may negotiate if the claims have not always been owned by a U.S. citizen or business. Second, the U.S. government is not authorized to negotiate the previously mentioned U.S. courts’ default judgments against Cuba. As a result, U.S. attorneys for the plaintiffs in those cases could seek to seize any assets in the U.S. of the Cuban government such as a Cuban plane or ship to satisfy the outstanding judgments. Third, Cuba also has to fear that any payment of U.S. claimants for expropriated property will invite demands for similar payments by Cuban exiles around the world and by Spanish claimants after some Spanish courts have ruled that Spain’s 1986 settlement of such claims with Cuba is not binding on at least some Spanish claimants. Fourth, the time to complete such a settlement at the end of the Obama Administration is rapidly shrinking, and a new administration in January 2017 may not be as willing to do such a deal.[8]

I, therefore, reiterate the solution proposed in a prior post: an agreement by the two countries to submit all of their damage claims against each other for resolution to the Permanent Court of Arbitration at the Hague in the Netherlands under its Arbitration Rules 2012 before a panel of three or five arbitrators.[9]

My experience as a lawyer who handled business disputes in U.S. courts and in international arbitrations leads me to believe that arbitration is the appropriate way to resolve these claims by the two governments. The International Court of Arbitration was established in the late 19thcentury to resolve disputes between governments. It would be a third-party, neutral administrator of the proceedings and the arbitrators who would be selected would also be neutral. Finally it has an existing set of arbitration rules and procedures. Moreover, in the arbitration process, both sides would gain a better understanding of the opponent’s evidence and argument that could lead to a settlement before the arbitrators would be asked to render an award.

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[1] Brookings, Reconciling U.S. Property Claims in Cuba: Transforming Trauma into Opportunity (Dec. 2015); Resolution of U.S. and Cuba’s Damage Claims (April 6, 2015).

[2] Id.

[3] Id.; U.N. General Assembly Again Condemns U.S. Embargo of Cuba (Oct. 30, 2014).

[4] Brookings, Reconciling U.S. Property Claims in Cuba: Transforming Trauma into Opportunity (Dec. 2015).

[5] Robles, Cuba and U.S. to Discuss Settling Claims on Property, N.Y. times (Dec. 4, 2015); U.S. State Dep’t, Daily Press Briefing (Dec. 7, 2015); U.S. State Dep’t, Press Release: United States and Cuba Hold Claims Talks in Havana (Dec. 7, 2015); Reuters, U.S., Cuba to Negotiate Billions in Claims Against Each Other, N.Y. Times (Dec. 7, 2015); Assoc. Press, Cuba, US Begins Talks on Confiscated Property, Damages,, N.Y. Times (Dec. 8, 2015); Miroff, In major breakthrough, Cuba and U.S. discuss $1.9 billion in property claims, Wash. Post (Dec. 8, 2015); Schwartz, U.S., Cuba Hold First Talks on Rival Claims, W.S.J. (Dec. 8, 2015); Briefing on compensation held between the governments of Cuba and the United States, Granma (Dec. 9, 2015).

[6] Brookings, Reconciling U.S. Property Claims in Cuba: Transforming Trauma into Opportunity (Dec. 8, 2015); Feinberg, Reconciling U.S. Property Claims in Cuba (Dec. 2015); Brookings Institution, Cuba Media Roundtable (Dec. 8, 2015).

[7] Brookings is a non-governmental organization that “brings together more than 300 leading experts in government and academia from all over the world who provide the highest quality research, policy recommendations and analysis on a full range of public policy issues.” Feinberg is a professor of international political economy in the School of Global Policy and Strategy (formerly the School of International Relations and Pacific Studies) at the University of California, San Diego. Previously, Feinberg served as special assistant to President Clinton for National Security Affairs and senior director of the National Security Council’s Office of Inter-American Affairs; his other government positions include positions on the policy planning staff of the U.S. Department of State and in the Office of International Affairs in the U.S. Treasury Department.

[8] Torres & Garvin, Claim game: U.S., Cuba try to hash out differences over property, Miami Herald (Dec. 12, 2015).

[9] Resolution of U.S. and Cuba’s Damage Claims (April 15, 2015).

The Reopening of U.S. and Cuba Embassies

On the morning of July 20, 2015, Cuba officially opened its Embassy in Washington, D.C., and the United States did likewise in Havana although the ceremonial opening of the latter will be on August 14 when Secretary of State John Kerry goes to Havana to preside over that event.[1]

This post will focus on the ceremonial opening of the Cuban Embassy; subsequent posts will discuss the afternoon’s joint press conference at the U.S. Department of State by U.S. Secretary of State John Kerry and Cuba’s Foreign Minister Bruno Rodriguez as well as reactions to the reopening of the embassies.

Opening of Cuba’s Embassy

Cuban Embassy
Cuban Embassy (Photo by Andrew Hamik)

Cuba’s opening was celebrated in the morning by the raising of its flag in front of its former Interests Section building. It was the same flag that was removed 54 years ago when the two countries severed diplomatic relations.

The event was attended by more than 500 people, including U.S. Assistant Secretary of State Roberta Jacobson, who led the U.S. delegation in negotiations with Cuba after the December 17, 2014, announcement of rapprochement; Tom Malinowski, Assistant Secretary for Democracy, Human Rights and Labor of the State Department, who has participated in those negotiations; Jeffrey DeLaurentis, current charge d’affaires of the U.S. Embassy in Havana; Ben Rhodes, U.S. Deputy National Security Advisor who led 18 months of behind-the-scenes secret negotiations with Cuban officials with the aim of restoring diplomatic ties; Wayne Smith, a Cuban expert who was forced to leave the U.S. Embassy in Havana in 1961 when the two countries broke diplomatic ties; U.S. Senators Patrick Leahy (Dem, VT), Amy Klobuchar (Dem., MN) and Jeff Flake (Rep., AZ) along with U.S. Representatives Barbara Lee (Dem., CA), Donna Edwards (Dem., MD), Kathy Castor (Dem., FL), Karen Bass (Dem., CA) and Raul Grijalva (Dem., AZ).[2]

Afterwards Senator Klobuchar, the author of a bill to end the U.S. embargo (Freedom to Export to Cuba Act), said in a press release, “The opening of the Cuban embassy in Washington, DC, marks an important step in modernizing our relationship with Cuba after more than 50 years of isolation. This evolution in our relationship with 11 million people 90 miles off of our shore was long overdue, and it is now time to not only open our own fully equipped and staffed embassy in Havana, but to lift the trade embargo once and for all. Passing my bipartisan bill to lift the embargo would benefit the people of both of our countries by boosting U.S. exports and allowing Cubans greater access to American goods.”[3]

Foreign Minister Rodriguez’s Speech

The attendees then went inside the Embassy, where they heard a speech by Cuba’s Foreign Minister, Bruno Rodriguez. Here are excerpts from those remarks.

The Cuban flag now flying in front of the Embassy “embodies the generous blood that was shed, the sacrifices made and the struggle waged for more than one hundred years by our people for their national independence and full self-determination, facing the most serious challenges and risks. Today we pay homage to all those who died in its defense and renew the commitment of the present generations, fully confident on the newer ones, to serve it with honor.”

“We evoke the memory of José Martí, who was fully devoted to the struggle for the freedom of Cuba and managed to get a profound knowledge about the United States: In his “North American Scenes” he made a vivid description of the great nation to the North and extolled its virtues. He also bequeathed to us a warning against its excessive craving for domination [over Cuba] which was confirmed by a long history of disagreements.”

“We’ve been able to make it through this date thanks to the firm and wise leadership of Fidel Castro Ruz, the historic leader of the Cuban Revolution, whose ideas we will always revere with utmost loyalty. We now recall his presence in this city, in April of 1959, with the purpose of promoting fair bilateral relations, as well as the sincere tribute he paid to Lincoln and Washington. The purposes that brought him to this country on such an early time [of the Cuban Revolution] are the same that have pursued throughout these decades and coincide exactly with the ones that we pursue today.”

“This ceremony has been possible thanks to the free and unshakable will, unity, sacrifice, selflessness, heroic resistance and work of our people and also the strength of the Cuban Nation and its culture.”

“I bring greetings from President Raúl Castro, as an expression of the good will and sound determination to move forward, through a dialogue based on mutual respect and sovereign equality, to a civilized coexistence, even despite the differences that exist between both governments, which makes it possible to solve bilateral problems and promote cooperation and the development of mutually beneficial relations, just as both peoples desire and deserve.”

“We know that this [rapprochement] would contribute to peace, development, equity and stability in the continent; the implementation of the purposes and principles enshrined in the U.N. Charter and in the Proclamation of Latin America and the Caribbean as a Zone of Peace, which was signed at the Second Summit of the Community of Latin American and Caribbean States held in Havana.”

“Today, the re-establishment of diplomatic relations and the re-opening of embassies complete the first stage of the bilateral dialogue and pave the way to the complex and certainly long process towards the normalization of bilateral relations.”

“The challenge is huge because there have never been normal relations between the United States of America and Cuba, in spite of the one and a half century of intensive and enriching links that have existed between both peoples.”

“The Platt Amendment, imposed [on Cuba by the U.S.] in 1902 under a military occupation, thwarted the liberation efforts that had counted on the participation or the sympathy of quite a few American citizens and led to the usurpation of a piece of Cuban territory in Guantánamo. Its nefarious consequences left an indelible mark in our common history.”

“In 1959, the [U.S.] refused to accept the existence of a fully independent small and neighboring island and much less, a few years later, a socialist Revolution that was forced to defend itself and has embodied, ever since then, our people’s will.”

“I have referred to history to reaffirm that today an opportunity has opened up to begin working in order to establish new bilateral relations, quite different from whatever existed in the past. The Cuban government is fully committed to that.”

“Only the lifting of the economic, commercial and financial blockade which has caused so much harm and suffering to our people; the return of the occupied territory in Guantánamo; and the respect for Cuba’s sovereignty will lend some meaning to the historic event that we are witnessing today.”

“Every step forward will receive the recognition and the favorable acceptance of our people and government, and most certainly the encouragement and approval of Latin America and the Caribbean and the entire world.

“We reaffirm Cuba’s willingness to move towards the normalization of relations with the [U.S.] in a constructive spirit, but without any prejudice whatsoever to our independence or any interference in the affairs that fall under the exclusive sovereignty of Cubans.”

[For the U.S.] to insist in the attainment of obsolete and unjust goals, only hoping for a mere change in the methods to achieve them will not legitimize them or favor the national interest of the [U.S.] or its citizens. However, should that be the case, we will be ready to face the challenge.”

“We will engage in this process, as was written by President Raúl Castro in his letter of July 1st to President Obama, “encouraged by the reciprocal intention of developing respectful and cooperative relations between our peoples and governments. From this Embassy, we will continue to work tirelessly to promote cultural, economic, scientific, academic and sports relations as well as friendly ties between our peoples.”

“We would like to convey the Cuban government’s respect and recognition to the President of the [U.S.] for urging the U.S. Congress to lift the blockade as well as for the change of policy that he has announced [last December], but in particular for the disposition he has showed to make use of his executive powers for that purpose.”

“We are particularly reminded of President Carter’s decision to open the respective Interests Sections back in September of 1977.” We also “express our gratitude to the members of Congress, scholars, religious leaders, activists, solidarity groups, business people and so many U.S. citizens who worked so hard for so many years so that this day would come.”

“To the majority of Cubans residing in the [U.S.] who have advocated and called for a different kind of relation of this country with our Nation, we would like to express our recognition. Deeply moved, they have told us that they would multiply their efforts and will remain faithful to the legacy of the patriotic emigration that supported the ideals of independence.”

“We would like to express our gratitude to our Latin American and Caribbean brothers and sisters who have resolutely supported our country and called for a new chapter in the relations between the [U.S.] and Cuba, as was done, with extraordinary perseverance, by a lot of friends from all over the world.”

“From this country José Martí organized the Cuban Revolutionary Party to conquer freedom, all the justice and the full dignity of human beings. His ideas, which were heroically vindicated in his centennial year, continue to be the main inspiration that moves us along the path that our people have sovereignly chosen.”

Opening of U.S. Embassy

 With the ceremonial opening of the U.S. Embassy in Havana not happening until August 14, the changes there were subtler. There was no raising of the U.S. flag. There was no changing of the sign on the building. The U.S. diplomats who previously worked in the Interests Section now worked in the Embassy. A future post will review the ceremonial opening of the Embassy, now scheduled for August 14.

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[1] This post is based upon the following: Ahmed & Davis, U.S. and Cuba Reopen Long-Closed Embassies, N.Y. Times (July 20, 2015); Schwartz, Embassies Reopen, as U.S., Cuba Restore Ties, W.S.J. (July 20, 2015); Ayuso, ‘Mojito diplomacy’ as Cuba reboots US relations in reopened embassy, El Pais (July 21, 2015); Gómez, Cuban flag waves in U.S. capital, Granma (July 20, 2015); Gómez, The flag day, Granma (July 21, 2015).

[2] The famous Cuban-American jazz pianist and a resident of Minnesota, Nachito Herrera, was invited to attend the opening of the Cuban Embassy, but unfortunately had to decline because of previously scheduled performances at the Dakota Jazz Club in Minneapolis with his new group The Universals, featuring saxophonist Mike Phillips, who has worked with Prince and Stevie Wonder; Cuban drummer Raul Pineda; Senegal bassist Cheikh Ndoye; and violinist Karen Briggs. (Bream, On special day for Cuba, Nachito Herrera gets emotional at the Dakota, StarTribune (July 21, 2015).) As previously noted in this blog, Nachito has frequently performed at Minneapolis’ Westminster Presbyterian Church.

[3] A similar press release was issued by Senator Leahy.

Assessment of the Status of U.S.-Cuba Reconciliation

Three recent articles in Cuba’s state-controlled media offer the Cuban government’s assessment of the current status of U.S. reconciliation. The lead article was Cuban journalists’ interview of Josefina Vidal, Cuba’s lead diplomat for the negotiations with the U.S. This post will summarize these three articles [1] and then offer an evaluation of Cuba’s assessment.

Current Status of Negotiations

Several days after the failure of the countries to reach an agreement about re-establishing diplomatic relations, Vidal remained optimistic. In the five months since the December 17th announcement of rapprochement and the mutual release of certain prisoners, she thought there had been progress in the process of normalization of relations. The removal of Cuba from the U.S. list of state sponsors of terrorism was to happen by the end of May, as it in fact did on May 29th, and Cuba’s Interests Section in Washington, D.C. has obtained a U.S. banking relation that was necessary for the effective operation of the Section and of a future Cuban embassy. [2]

In addition, for about the last two years, she added, the countries have been discussing and progressing on “technical” matters, including collaboration on infectious diseases, narcotics trafficking, immigration (including the U.S. “wet foot/dry foot” policy under its Cuban Adjustment Act) and their respective enforcement of their own domestic laws with visitors from the other country.

Moreover, said Vidal, the Cuba-U.S. interactions “are respectful, they are professional. We are treating each other as equals, on a foundation of respect and total reciprocity.”

Also supportive of reconciliation of the two countries have been visits to Cuba by U.S. federal and state government officials and U.S. business groups. [3]

 Re-establishment of Diplomatic Relations

Although the parties had not reached agreement on the details of re-establishing diplomatic relations at their negotiations in Washington, D.C. on May 21-22, Vidal suggested that progress had been made on these details, which conceivably could be resolved through direct communications without another negotiating session.

The remaining issues, she said, focused on the future “conduct of diplomats” and “the functioning of a diplomatic mission,” all under the U.N. Charter and the Vienna Convention on Diplomatic Relations, which both parties recognize as establishing or confirming the international law on the subjects. More specifically, Vidal said, “We must talk about the number of people, what kind of staff” the embassies will have or “what type of rank these officials [are] going to have” and “what privileges and immunities.” [4]

These comments by Vidal (and by Jacobson in the footnote) suggest that the provisions of the Vienna Convention provide flexibility and thus room for negotiation on the details of the functioning of the two countries’ embassies and diplomats. Indeed, that assumption is confirmed by the following relevant provisions of the Convention:

  1. Under Article 7, “the sending State may freely appoint the members of the staff of the mission. In the case of military, naval or air attachés, the receiving State may require their names to be submitted beforehand, for its approval.” However, Article 11 provides “the receiving State may require that the size of a mission be kept within limits considered by it to be reasonable and normal, having regard to circumstances and conditions in the receiving State and to the needs of the particular mission” and also “may equally, within similar bounds and on a non-discriminatory basis, refuse to accept officials of a particular category.”
  1. With respect to diplomatic personnel’s travel and conduct, Article 26 states, “Subject to its laws and regulations concerning zones entry into which is prohibited or regulated for reasons of national security, the receiving State shall ensure to all members of the mission freedom of movement and travel in its territory.” However, Article 41 provides, “Without prejudice to their privileges and immunities, it is the duty of all persons enjoying such privileges and immunities to respect the laws and regulations of the receiving State. They also have a duty not to interfere in the internal affairs of that State.” In addition, Article 41 states, “The premises of the mission must not be used in any manner incompatible with the functions of the mission as laid down in the present Convention or by other rules of general international law or by any special agreements in force between the sending and the receiving State.”

Vidal’s concern about the “conduct of diplomats” and “the functioning of a diplomatic mission” was an allusion to Cuba’s objection to certain recent covert or secret or “discreet” programs by the U.S. Agency for International Development (USAID) allegedly to promote democracy and human rights in Cuba and to public seminars for Cuban journalists at the U.S. Interests Section in Havana that will be discussed below.

 Future Issues for Discussion and Resolution

According to the Vidal interview, Cuba has presented to the U.S. the following “preliminary list” of other issues that need to be discussed and resolved for full normalization of relations: (a) the U.S. “lifting of the blockade [embargo];” (b) “the return of the territory illegally occupied by the Guantanamo Naval Base;” (c) “an end to illegal broadcasts by Radio and Televisión Marti;” (d) an “end to [U.S.] programs which were originally conceived to promote regime change” in Cuba and which for fiscal year 2016 have requests for funding of $20 million, especially in light of President Obama’s statement at the recent Summit of the Americas that the purpose of U.S. policy regarding Cuba was not regime change; [5] (e) “compensation for our country and our people for the damages caused by U.S. policy [primarily the embargo or blockade] over 50 years; ” and (f) restitution of Cuba’s frozen funds in the U.S.

The U.S., on the other hand, say the Cubans, has identified at least one issue for discussion in the second phase of negotiations: “compensation for the properties [of U.S. nationals] which were nationalized in Cuba at the beginning of the Revolution.” [6]

Moreover, Vidal said, the parties have not yet discussed how these issues would be discussed or resolved: “if a mechanism [such as commissions or groups] will be created;” or whether the issues would be discussed as a whole or separately.

According to the Gomez article in Granma, “the greatest challenge facing Cuba and the United States is establishing a relationship of civilized co-existence based on respect for their profound differences.”

 Conclusion

The Obama Administration and this blogger concur in the need for the U.S. to end the embargo (or “blockade” in Cuba’s view), which requires action by the U.S. Congress. Prior posts have discussed pending bills in the Senate and House of Representatives to do just that and urged U.S. citizens to press both chambers to pass such bills. Another post recommended submitting Cuba’s claim for money damages ($1.2 trillion as of last October) from the embargo/blockade to the Permanent Court of Arbitration where the U.S. can mount counter-evidence and arguments.

With respect to Guantanamo Bay, as discussed in a prior post, Cuba’s continually saying that the U.S. is “illegally” occupying the territory does not make it so and I do not think the U.S. would ever agree to such a legal conclusion. If Cuba continues to assert that contention, as I expect that it will, then the parties should submit the dispute for resolution by the Permanent Court of Arbitration.

The New York Times editorial board and this blogger agree with Cuba’s contention that the U.S. improperly has mounted covert, secret or “discreet” and ill conceived USAID programs to promote regime change in Cuba and that the U.S. should cease any and all such programs. Instead, it should propose joint-programs to the Cuban government for enhancement of Cuban human rights and democracy, and if and only if the Cubans agree, then the programs could proceed. (These issues were discussed in posts of 4/4/14, 4/9, 4/9, 8/12, 8/13 and 8/14).

The U.S. claims for money damages for compensation for Cuba’s expropriation of property owned by U.S. nationals and interests will obviously be discussed, as stated above, and in the likely event that the parties will not agree to the amount of such compensation, that too should be submitted to the Permanent Court of Arbitration.

In this process of working on the many issues that have accumulated over the last 50-plus years, both sides must recognize, as I think they do, the need to build mutual trust during the initial stages of diplomatic relations and, if all goes well, to the possible future relaxation of any restrictions. It does not help the process for bystanders, like Senators Marco Rubio and Bob Menendez, to loft scathing and premature criticisms of the process and to attempt to create new legislative roadblocks and impediments to that process.

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[1] This post is based upon the following: Josefina Vidal discusses recent talks in Washington, Granma (May 26, 2015); Gómez, Seven key points, Granma (May 25, 2015); Cańedo, Cuba-United States after 17D [December 17], Cubadebate (May 25, 2015).

[2] Immediately after the May 21-22 negotiations in Washington, D.C., Assistant Secretary of State Roberta S. Jacobson, the U.S.’ lead diplomat, shared Vidal’s optimism. Jacobson said, “This round of talks was highly productive. . . . We have made significant progress in the last five months and are much closer to reestablishing relations and reopening embassies. . . . [W]e have gotten much closer than we were each time we talk. . . . I remain optimistic that we will conclude, but we still have a few things that need to be ironed out and we’re going to do that as quickly as possible.” On the other hand, according to Jacobson, “I’m also a realist about 54 years that we have to overcome.”

[3] These visits have included congressional trips in January, February (Senate and House), and May, and a visit by a major business delegation in March.

[4] Assistant Secretary Jacobson in her comments after the latest round of negotiations concurred that the Vienna Convention established the parameters for the functioning of the countries’ embassies and conceded that “there [is] a range of ways in which our embassies operate around the world in different countries. We expect that in Cuba, our embassy will operate within that range and so it won’t be unique. It won’t be anything that doesn’t exist elsewhere in the world. There are various circumstances in which embassies operate in somewhat restrictive environments. . . .[W]e have confidence that . . . our embassy will be able to function so that our officers can do their jobs as we expect them to do worldwide, but in highly varying locations around the world. So I have every expectation that it will fall within the range of other places where we operate.”

[5] Cuba correctly points out that USAID, on the one hand, proclaims on its public website that its Cuba programs “Provide humanitarian assistance (basic foodstuff, vitamins and personal hygiene supplies) to political prisoners and their families; Promote human rights and fundamental freedoms, as well as support for independent civil society by strengthening leadership skills and providing opportunities for community organizing; and Facilitate information flow to, from and within the island” and that through four named private “partners” it has spent and will spend a total of $14.2 million for these programs for the three fiscal years ending 9/30/15 and an additional $20 million in Fiscal Year 2016.  USAID, on the other hand, has carried out these programs unilaterally, without the prior knowledge or consent, of the Cuban government. In addition, the U.S. Department of State at its Interests Section in Havana has hosted seminars for journalists and a Public Information Center with a lending library and Internet-enabled computers available to Cubans and others. Assistant Secretary Jacobson said at the May 22nd press conference, “[W]e have continued to request funds from Congress for various activities in support of the Cuban people [and] that those programs have changed over time since they began in 1996” and they might be changed in the future.

[6] A prior post discussed the issue of Cuba’s compensating U.S. owners of property expropriated in the Cuban Revolution. Moreover, the U.S. already has identified at least the following additional issues for further discussion and negotiation: extradition of persons for crimes in their home country (2/24/15 post) and Cuban human rights and democracy (posts of 3/27, 3/28, 3/29, 3/30 and 4/1), and such discussions already have been commenced.