President Trump Proclaims His “Success” on Cuba  

On December 31 President Trump released a lengthy recital of his administration’s alleged successes over its first three years and as an obvious prelude to his re-election campaign.[1]

In that recital President Trump said the following about Cuba:

“President Trump has promoted democracy throughout the Western Hemisphere and imposed heavy sanctions on the regimes in Venezuela, Cuba, and Nicaragua.”

“The President reversed the previous Administration’s disastrous Cuba policy.”

“President Trump has enacted a new policy aimed at stopping any revenues from reaching the Cuban military or intelligence services, imposed stricter travel restrictions, and reaffirmed the focus ensuring the Cuban regime does not profit from U.S. dollars.”

“Earlier this year, the Trump Administration put a cap on remittances to Cuba.”

“President Trump is enabling Americans to file lawsuits against persons and entities that traffic in property confiscated by the Cuban regime, the first time that these kind of claims have been available for Americans under the Helms-Burton Act.”

Conclusion

These statements are correct if one ignores the self-congratulatory evaluation of the administration’s actions. For those like this blogger, they are deplorable actions.[2]

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[1] White House, President Donald J. Trump Has Delivered Record Breaking Results For The American People In His First Three Years in Office (Dec. 31, 2019).

[2] See List of Posts to dwkcommentaries—Topical: Cuba.

 

Cuba’s Suffering from Continued U.S. Hostility  

After the Obama Administration had taken steps to improve U.S. relations with Cuba, the Trump Administration has gone in the opposite direction, as discussed in many earlier posts.[1]

U.S. Actions and Policies Against Cuba

These negative actions and policies include the following: continuation of U.S. embargo of Cuba; elimination of one of the “general licenses” for U.S. nationals to travel to Cuba; cancelation of right of U.S. cruise ships to make stops on the island; reducing amount of money U.S. nationals legally may remit to relatives and friends in Cuba; allowing litigation in U.S. federal courts over alleged trafficking in U.S.-owned property on the island under the Halms-Burton Act; additions to the U.S. “Cuba Restricted List” of entities and sub entities with which U.S. nationals may not transact business; U.S. negative reports on Cuban human rights, religious freedom and human trafficking; unilateral U.S. report about increasing Cuban Internet access; U.S. consideration of re-designating Cuba as a State Sponsor of Terrorism and of re-instituting U.S. parole for Cuban medical professionals; additional U.S. sanctions against Cuba for its alleged support of Venezuela.[2]

While there are recent bilateral bills in Congress to end the embargo and enhance U.S. nationals’ rights to travel to Cuba, they have not received, and are unlikely to receive, any consideration in the current Senate and perhaps the House of Representatives.[3]

Negative Impact on Cuba of U.S. Actions and Policies[4]

The negative impact, especially of the recent U.S. limiting the ability of Americans to travel to the island, has especially harmed Cuba’s emerging private sector. For example, a website and app used to make reservations, rate restaurants, and pay for meals at most restaurants throughout Cuba (AlaMesa) had to reduce its staff from 20 to 12 in response to a 30 to 40% decline in reservations.

But “Cuba’s economic woes go beyond U.S. policy. The island, with one of the world’s last communist governments, has been caught in a perfect storm. Its economy has been stagnant for years, averaging only about 1 percent annual growth. Its centrally-planned economy imports over two-thirds of its food. Its ally, Venezuela, has been in political and economic turmoil, causing an overall decline in oil shipments from the South American country. The island’s medical exchange program, a major source of revenue, also took a blow. Last November, Cuba recalled 8,517 medical professionals from Brazil in response to President Jair Bolsonaro’s tough stance against Cuba.”

The U.S. allowance of litigation over alleged trafficking in Cuba property owned by Americans is seen as discouraging foreign investment today.

Recently “there have been shortages in basic goods such as eggs, cooking oil and chicken.”

Cuban Government’s Response to Rough Economic Conditions[5]

At the July 13 closing  session of the National Assembly, President Diaz-Canel reported that a series of emergency measures announced that month aimed to stimulate domestic production and he hoped for slight growth this year. “Even in the eye of the hurricane of adversity that the enemy conceived to suffocate us, the Cuban economy can grow slightly, thanks to the fact that we have the potential to resist and continue advancing in our development.” He added that the economy grew 2.2% in 2018, compared with an earlier estimate of 1.2%, and that stronger base would make it harder to reach this year’s goal of 1.5% growth.

The President also said there will be price controls and policies aimed at stimulating local production to meet increased consumer demand without sparking inflation.

The next week of July 15, Cuba experienced power outages and fuel shortages that prompted citizen concern about the possible emergence of a “Special Period II” of harsh economic shortages. Cuba Energy Commissioner Raul Garcia sought to reassure citizens that the power outages were due to breakdowns in power plants, not oil shortages, and that those outages would be fixed by the end of the week.

These measures came at a time when falling Cuban imports have caused scattered shortages of food, hygiene and other products across the country. Diaz-Canel admitted the country was suffering from a liquidity crisis and bureaucracy and was short on fuel. He called on officials and the public to join together in the national emergency and each do their part to move the country forward. “Putting aside vanities and selfishness, practicing honesty, industriousness and decency, we will also be contributing to GDP,” he said.

On August 2, the Cuban government for the first time published details of its foreign exchange earnings from services such as telecommunications, hotels, health and education assistance, in an apparent concession to creditors. The biggest export earner in 2018 was health services at $6.4 billion, followed by “support services” at $1.3 billion while hotel and related services garnered $970 million, followed by telecommunications at $722 million and transportation and support services, which includes everything from airlines to docking fees, at around $600 million. Total exports were $18.6 billion in 2013 and $14.5 billion last year, down from $18.6 billion in 2013. Imports fell from $15.6 billion to $12.6 billion.

All of these developments have resulted in an increase in the country’s foreign debt from $11.9 billion in 2013 to $18.2 billion in 2016, an increase of almost 53% percent.

Cuba Introduces Price Controls[6]

In early July  President Miguel Diaz-Canel announced that the government had adopted a series of emergency measures to fight economic stagnation and dwindling foreign currency earnings that began in 2015 as the economy of key ally Venezuela imploded, and that have been aggravated by a series of new U.S. sanctions. The measures included increased wages and pensions for more than 2 million state employees, amounting to more than 8 billion pesos annually, or close to 13 percent of this year’s budget. The President also said there will be price controls and policies aimed at stimulating local production to meet increased consumer demand without sparking inflation.

The other shoe dropped on July 30, when the President announced a ban on all retail and wholesale price increases except for products imported and distributed by the state where already-set profit margins cannot be increased. In recent weeks, regional authorities have slapped price controls on taxi fares, beverages and haircuts, among other items. The price controls differ from province to province.

These price controls are especially difficult for the private sector.

For example, on August 15, retail prices in Havana were set for some basic foods such as beans, pork, lemons, bananas, onions and cabbage. The retail price of pork, a staple of the Cuban diet, was set at 45 pesos a pound, although market sellers said it previously went for some 65 pesos a pound. And farmers still charge 28 pesos a pound for pork. Another example is lemons, which used to sell for 30 pesos a pound,  now has a new maximum price of 10 to 15 pesos, which is the same price that farmers charge for the lemons.

On August 12, Cuba  Minister of Finance and Prices, Meisi Bolaños, stated, “We are going to be rigorous with those who try, by means of devices, to evade and violate the new measures approved to avoid the increase in prices. . . . We cannot allow that measures like these that the country approves to boost the  economy and generate greater capacity to buy in the population to be spoiled by a few unscrupulous that cause Cubans to lose confidence in state control.” The Minister also denied that the purpose of the measures is “to stop the development of non-state forms.”

Economists assert that such price controls are ineffective. Andrew Zimbalist, a Cuba expert at U.S.’s Smith College, said, “Such measures are usually okay for short periods of time, but if they stay in place they begin to create serious distortions in the economy.” A similar opinion was expressed by Pavel Vidal, a former Cuban central bank economist who teaches at Colombia’s Universidad Javeriana Cali. He said, “The more they control prices in formal markets, the more inflation and instability there will be in informal markets and the less incentive the productive sector has.”

Experts also have criticized Cuba’s verbose regulations of the private sector that were introduced at the end of 2018. They concluded that these “regulations approved by the Council of Ministers were written in reverse: excessive documents (29) and processes that represent obstacles in the application process for licenses, cracking down on violations, excessive inspections, the definition of twenty-two oversight agencies for the private sector (with specific departments to deal with them), the new requirement of a bank account with two months’ worth of taxes as credit in this account, needing to pay payroll taxes from the very first employee, etc.”

Conclusion

 Obviously Cuba is in a very perilous situation that the U.S. has helped to create. All who support normalization of the two countries relations need to voice their opinions to their senators and representatives and to Trump Administration officials.

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[1] See List of Posts to dwkcommentaries—Topical: CUBA.

[2] E.g., Sabatinni, Trump Doubles Down on Failed Cuba Policy, N.Y. Times (July 24, 2019); U.S. Updates Cuba Restricted List (July 26, 2019); U.S. State Dep’t, State Department Updates the Cuba Restricted List (July 26, 2019); U.S. State Dep’t, List of Restricted Entities and Subentities Associated With Cuba as of July 26, 2019 (July 26, 2019); New U.S. Government Hostility Towards Cuba’s Medical Mission Program, dwkcommentareis.com (Aug. 14, 2019); “U.S. (Trump) and Cuba, 2016-2017,”  “U.S. (Trump) and Cuba (2018),” “U.S. (Trump) and Cuba, 2019,” “U.S. Parole Program for Cuban Medical Professionals, 2019,” “Cuba, Venezuela and U.S., 2019,”  “Cuba Restricted List, 2019,”  “ Helms-Burton Act Title III Authorization, 2019” and U.S. Embargo of Cuba, 2019” sections  in List of Posts to dwkcommentaries—Topical: Cuba.

[3] See these posts to dwkcommentaries.com: New Bill To End U.S. Embargo of Cuba (Feb. 9, 2019); Senator Leahy’s Senate Floor Speech To End Embargo of Cuba (Feb. 18, 2019); Congressional Bipartisan Bills for Reversal of U.S. Policies Regarding Cuba (Aug. 13, 2019).

[4] Sesin, In Cuba, entrepreneurs see a steep decline with Trump policies, NBC News (July 6, 2019); Cuba Says Fuel Shortage, Blackouts Are Temporary, Being Fixed, Reuters (July 19, 2019); Frank, Cuba hopes for slight growth as Trump pummels Caribbean island, Reuters (July 13, 2019).

[5]  Kuritzkes, The End of Cuba’s Entrepreneurship Boom, Foreign Policy (July 15, 2019); The decline in tourism from the United States to Cuba already feels strongly on island, France23 (July 18, 2019);Taylor, Cubans Talk About Impact of Trump Administration Travel Policy Changes, Travel Pulse (July 22, 2019); Myers, A Visit To Cuba Reveals Economic Pain of Trump’s Travel Ban, Travel Weekly (July 29, 2019); Eaton, Cuba Trying to Attract Tourists and Investors Even as U.S. Clamps Down, Tampa Bay Times (July 30, 2019); Reuters, Cuba Reveals Health, Hotel, Other Service Earnings, N.Y. Times (Aug. 2, 2019); Whitefield, Cuba Feels the Pinch of the Trump administration’s travel restrictions, L.A. Times (Aug. 11, 2019); Torres, Cuba’s foreign debt is on the rise despite big profits from medical services abroad, Miami Herald (Aug. 12, 2019);Myers, Taking the pulse of demand for Cuba travel, Travel Weekly (Aug. 13, 2019); The Cuban economy is increasingly indebted, official figures reveal, Diario de Cuba (Aug. 15, 2019).

[6] The Government of Havana sets maximum prices for sale of products, Cubadebate (July 28, 2019); Frank, Cuba, battling economic crisis, imposes sweeping price controls, Reuters (July 30, 2019); Vela, Cuba’s Price Control Is Short-Term Fix To Production Problems, Economist Says, ABC10 News  (July 30, 2019); Fuentes Puebla & Romeo Matos, Price control, a necessary complement to the salary increase in the budgeted sector, Cubadebate (Aug. 1, 2019); The Cuban Government warns that it will be relentless in the face of ‘artifice’ to avoid its price cap, Diario de Cuba (Aug. 13, 2019); Reuters, Cuban Government Imposes Price Controls as It Seeks to Keep Lid on Inflation, N.Y. Times (Aug. 15, 2019); Fernandez, It’s a Long and Winding Road for Cuba’s Private Sector, Havana Times (Aug. 15, 2019).

 

 

U.S. Reiterates Its Negative Assessment of Cuba

On May 13, 2019, Kimberly Breier, U.S. Assistant Secretary of State, Bureau of Western Hemisphere Affairs, delivered a speech in Bogota, Colombia to the Concordia Americas Summit. [1]

As expected, she had negative comments about Venezuela, Cuba and Nicaragua. Here is what she said about Cuba:

  • “In Cuba, the regime has not fundamentally changed, and it continues to aid and abet the Maduro regime in Venezuela. This is unacceptable for the United States and for the region. The U.S. Administration has been unwavering in our focus to promote freedom in this hemisphere. We seek a stable, prosperous, and free country for the Cuban people. We will not turn a blind eye to the ongoing and systemic human rights abuses and repression by the Communist Cuban regime against its people or tolerate Cuba’s indefensible support for Maduro in Venezuela.”
  • “So we are taking action. The State Department’s historic decision on Title III of the LIBERTAD Act recognizes the reality of Cuba today, which is no closer to transitioning to democracy and freedom than it was over 20 years ago. We have also continued adding entities to the Cuba Restricted List to strip the regime of support to its security services and have increased efforts to assist democratic actors, small businesses, and Internet connectivity on the island.”

The Concordia Summit was founded in 2011 with the “mission” of being a “member-based organization dedicated to actively fostering, elevating, and sustaining cross-sector partnerships for social impact.” Its “vision” is to “create a global community where challenges are solved collaboratively and inclusively.” These exceedingly general statements could cover almost anything.

Concordia also says that it has focused on the “unique captivation of Latin America, with its vibrant dynamics but challenging issues. The region’s critical position on the global stage, and the interconnected nature of its challenges with the success of the Western Hemisphere, aligns with Concordia’s ethos to create an inclusive, collaborative global community. Latin America has remained a focal point for Concordia since 2011, with the evolution of the organization’s on-the-ground work in Colombia resulting in the establishment of the Concordia Americas Initiative.”[2]

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[1] U.S. Embassy in Havana, Western Hemisphere: remarks on “A New Era in the Americas” at the 2019 Concordia Americas Summit (May 13, 2019).

[2]  Concordia, About [Concordia].

 

Cuba Foreign Minister Denounces U.S. Policies

On April 25, Cuba Foreign Minister Bruno Rodriguez held a press conference in Havana to issue his usual lengthy  statement, this time primarily to denounce U.S. National Security Advisor John Bolton’s recent announcement of additional changes in U.S. policies regarding the  island nation.[1]

Whereas Bolton honored the survivors of the 1961 U.S. attack on the Bay of Pigs (Playa Girōn), Rodriguez reminded everyone that Cuba defeated that invasion.

Although Bolton said the Monroe Doctrine was “alive and well,” Rodriguez retorted, “No one should forget that the Monroe Doctrine has historically been associated with the use of force by US imperialism in Latin America and the Caribbean.”

Rodríguez also said Bolton was a “pathological liar” for having unashamedly stated on April 17 that Rodriguez recently had acknowledged the presence of 20,000 Cuban thugs in Venezuela.

This lie, Rodriguez said, was repeated in a recent communique from the U.S. State Department to all of its embassies around the world asserting that the new U.S. measures of economic, political and communications blockade against Cuba were based upon the alleged presence of Cuban military and intelligence officers in Venezuela. According to Rodriguez, this U.S. document also instructed its ambassadors to urge other governments to publicly condemn Cuba’s behavior and to use all economic and diplomatic instruments against Cuba.

The Cuba Foreign Minister challenged Bolton and the U.S. to prove their statements that Rodriguez said were lies. Implicitly he was saying the U.S. could not do so and, therefore, should rescind such claims and apologize.

Rodriguez attacked the new U.S. restrictions on remittances as  not only hurting the interests and incomes of Cuban people, of every family that has those ties; they also harms the freedom and the right of people in the U.S.to send remittances to relatives or others in Cuba. These restrictions also will greatly damage the self-employed sector of the Cuban economy.

The U.S. activation of Title III of the Helms-Burton Act, the Foreign Minister continued, “will damage Cuban entities and will generate greater difficulties and shortcomings for our people. Its declared goal is to suffocate the economy and punish the Cuban people.”

The Cuban diplomat stressed that despite the adverse economic impact that these measures will have, they will not alter Cuban resistance to this latest U.S. attempt to  overthrow the Cuban Revolution.

He claimed the U.S. foreign policy was a real threat to our hemisphere, to turn it into a zone of conflict from a region declared a zone of peace. Such a threat threatens international peace and security. Therefore, the international community needs to stop this folly and irresponsibility, to act before it is too late and to stop this dangerous escalation for the good of the peoples of Cuba, the U.S.,the region and all those of the planet. “The world cannot afford to remain impassive while it is summoned by threats to destroy countries with impunity as has happened in other regions of the planet..”

“Cubans trust in the force of truth, of law and of justice. We appeal to governments, parliaments, political forces, social, popular, protests, indigenous movements, representatives of civil society, writers and artists, academics, scientists, journalists, intellectuals. We await the action of the General Assembly of the United Nations, of the World Trade Organization and of other multilateral entities.

Rodriguez emphasized the vast difference in the sizes of the two countries. U.S. Gross Domestic Product (GDP) is more than 200 times that of Cuba, its territory is 89 times larger that of the Island, its population is 30 times greater,. Moreover,  the U.S. has a quarter of a million soldiers in 800 military bases in 80 countries and today acts as superpower on the planet.

Rodriguez said Cuba will continue to seek stronger relations with a wide array of U.S. interests, including businesses, in spite of what it regards as a “hostile” Trump administration and the tightening of American sanctions against the island.

“We will continue to expand our ties with all United States sectors … we will use all the tools on hand to intensify communication and cultural relations between our people. So, while the government of the United States attempts to shut off and tighten, Cuba will continue to be even more open to healthy relations,” he said.

Conclusion

On May 1 essentially the same message was delivered by the Cuban Foreign Ministry’s Deputy Director for the United States, Johana Tablada.[2]

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[1] Cubans trust in the force of truth, of law and of justice..(Live Broadcast), Granma (April 25, 2019); Assoc. Press, Cuba Challenges US to Provide Proof of Venezuela charges, N.Y. Times (April 25, 2019); Reuters, Cuba Dubs Bolton ‘Pathological Liar’ Over Venezuela Troops Charges, N.Y. Times (April 25, 2019).

[2] Mojena, U.S. lies to justify further attacks on Cuba, Granma (May 2, 2019).

U.S. and Cuban Churches Denounce U.S. Embargo and Recent Additional U.S. Actions Against Cuba

On April 26 the National Council of  the Churches of Christ in the USA and the Cuban Council of Churches issued the following Joint Statement. [1]

“Today, Friday, April 26, the fifth day after Easter Sunday, we come together once again as two Christian ecumenical councils to affirm our faith and love in Jesus Christ. Like the disciples walking to Emmaus (Luke 24:13-35), we desire to walk together with the resurrected Christ and share with him the bread that he has blessed with us and for us.”

“Our Councils have prayed, walked and worked together for many years. We have done so not only to witness to all the blessings we have received from God as a fruit of our unity in love, faith, and hope, but also to testify to the power of the Holy Spirit in all times of challenge to our dream of bringing our peoples and nations together. We have stood for peace when many cried for war. We have taken a stand for family unity when others tried to divide our families.”

“Since 1968, the National Council of the Churches of Christ in the USA has called for normal diplomatic relations with Cuba, for the removal of the economic blockade [embargo] imposed on Cuba, and for removal of travel restrictions.”

“Today, after our two nations began to make significant progress toward normalized relations, we are facing a critical moment that threatens to erase the gains already made.  We, therefore, reaffirm our solidarity in Christ and stand together to:

  • Work together to end the blockade — rejected by the vast majority of United Nations member countries — which has an extraterritorial effect, and for normal relations between our people and nations;
  • Express our opposition to the Trump Administration’s addition of new restrictions on travel between Cuba and the United States;
  • Express our opposition to the decision by the Trump Administration to no longer maintain the suspension of Title III of the Helms-Burton legislation, an action that will further hinder the quality of life of the Cuban people and will create enormous and unnecessary legal problems worldwide;
  • Express our opposition to the limitation and restriction of family remittances from the United States to Cuba;
  • Advocate for the reopening and normalization of consular services between the two countries, on a humanitarian basis, since it will facilitate the access to visas and the normalization of relations among families and between our peoples.”

“Finally, these recent actions by the Trump Administration will hinder us as we pursue together God’s mission and will be another obstacle to develop further our relations, partnerships, and the spiritual growth of the churches in the United States and Cuba. We, therefore, call on the churches in our countries along with all our partner ecumenical bodies, faith-based organizations, and all people of good will in our region and around the world to join us in our advocacy, solidarity, and action for a better present and future for our two countries, churches and people.”

“All this is from God, who reconciled us to himself through Christ,
and has given us the ministry of reconciliation; that is,
in Christ God was reconciling the world to himself,
not counting their trespasses against them, and
entrusting the message of reconciliation to us.” 

– Corinthians 5:18-19 NRSV”

The National Council of Churches of Christ in the USA, which was formally organized in 1950,  has 38 member communions with 45 million people in over 100,000 congregations.

The Cuban Council of Churches (CIC), which was founded in 1941, is the leading institution of the ecumenical movement in Cuba, with 52 churches and Christian institutions as members, including Protestants, Reformists, Evangelists, Pentecostals, Episcopalians, and Orthodox; in addition to other ecumenical institutions and associate members.

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[1] National Council of Churches, Joint Statement: Facing a Critical Moment (April 26, 2019); Council of Churches of Christ of the United States and the Council of Churches of Cuba pronounce themselves against the blockade, Granma (April 28, 2019).

 

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

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

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

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

Critics of the New Policies[2]

  1. The Bloomberg Editorial.

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

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

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

  1. Engage Cuba

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

(Statement by James Williams, President of Engage Cuba)

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

(Property Claim Lawsuits)

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

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

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

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

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

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

  1. Center for Democracy in the Americas

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

  1. Cuba Educational Travel

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

  1. Current and Former Federal Government Officials

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

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

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

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

  1. Other Americans

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

Supporters of the New Policies[3]

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

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

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

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

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

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

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

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

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

Conclusion

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

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

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

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

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Professor LeoGrande’s Argument Against U.S. Litigation Over Cuban Expropriated Property

Senator Patrick Leahy in his lengthy February 15 speech on the Senate floor, which was repeated in a prior post, had appended to his remarks an article about Cuba by a noted U.S. expert on the country, Professor William L. LeoGrande of American University. Here is the text of that article, “President Trump Risks Alienating Allies Over Cuban American Property Claims” from OnCubaNews (2/13/19).

“The Trump administration is seriously considering whether to allow Title III of the Cuban Liberty and Democratic Solidarity Act (Helms-Burton) to go into effect in March, according to National Security Adviser John Bolton. On January 16, Secretary of State Mike Pompeo announced that he was suspending Title III for just 45 days instead of the usual six months while the administration reviews whether its implementation would promote democracy in Cuba. He warned foreign companies doing business on the island that they had better ‘reconsider whether they are trafficking in confiscated property and abetting this dictatorship.’”

“Title III allows U.S. nationals to file suit in U.S. courts against anyone ‘trafficking’ in their confiscated property in Cuba—that is, anyone profiting from it. If President Trump allows Title III to go fully into effect, he will open the door to as many as 200,000 law suits by U.S. nationals, most of them Cuban Americans, whose property was taken by the Cuban government after 1959. U.S. courts would be swamped, the ability of U.S. companies to do business on the island would be crippled, and allies abroad might retaliate for U.S. suits brought against their companies in Cuba. Once the suits have been filed, there will be no way to undo the resulting legal chaos and the tangle of resulting litigation could take years to unwind.”

“The U.S. Foreign Claims Settlement Commission has certified 5,913 claims of U.S. nationals whose property was seized. These are the claims that Cuba recognizes and that the United States and Cuba had begun to discuss during the Obama administration. But Title III takes the unusual position of allowing naturalized Cuban Americans who lost property to also file suit against alleged traffickers. Normally, international law recognizes the sovereign right of governments to dispose of the property of their own citizens. According to the Department of State, by including Cuban Americans who were not U.S. citizens when their property was taken, Title III creates the potential for an estimated 75,000-200,000 claims worth ‘tens of billions of dollars.’”

“Back in 1996, when the law was being debated in Congress, angry opposition from U.S. allies Canada, Mexico, and the European Union, whose companies doing business in Cuba would be the targets of Title III law suits, led President Bill Clinton to insist on a presidential waiver provision in Title III. As a result, the president has the authority to suspend for six months the right to file Title III law suits, and he can renew that suspension indefinitely. Every six months since the Cuban Liberty and Democratic Solidarity Act was passed, successive presidents, Democrat and Republican alike, have continued the suspension of Title III.”

“U.S. allies have denounced Title III’s extraterritorial reach. Mexico, Canada, the United Kingdom, and the European Union all passed laws prohibiting compliance with it. The European Union also filed a complaint with the World Trade Organization, which it did not pursue after President Clinton suspended Title III. In fact, the principal justification both President Clinton and President George W. Bush offered for continuing the suspension was the need to maintain cooperation with European allies.”

“If President Trump does not renew the suspension, all these old wounds with allies will be reopened as U.S. claimants try to haul foreign companies into U.S. courts for doing business in Cuba. We already have enough tough issues on our agenda with Mexico, Canada, and Europe without adding another one. At this very moment, Washington is trying to muster their support in dealing with the Venezuelan crisis, support that could be endangered if the administration picks a fight with them over Title III.”

“U.S. businesses would not be exempt from potential liability. A Cuban American family in Miami claims to have owned the land on which José Martí International Airport was built, so any U.S. carrier using the air field could conceivably be sued under Title III. Another family that owned the Port of Santiago could file suit against U.S. cruise ships docking there.”

“Moreover, it would be almost impossible for a U.S. or foreign company to know in advance whether a proposed business opportunity in Cuba might become the subject of Title III litigation. “This will effectively end for decades any attempt to restore trade between the U.S. and Cuba,” attorney Robert Muse told the Tampa Bay Times.”

“When President Trump announced new sanctions on Cuba back in June 2017, senior administration officials said they were designed “to not disrupt existing business” that U.S. companies were doing in Cuba. If the president fails to continue the suspension of Title III, business relations will be disrupted far more severely and irreparably than they would be by any regulatory change.”

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Leahy, Statement of Senator Leahy On the Freedom To Export To Cuba Act (Feb. 15, 2019); LeoGrande, Trump and Cuban-American property claims, OnCubaNews (Feb. 11, 2019). See also President Trump Considering Another Hostile Action Against Cuba, dwkcommentaries.com (Jan. 18, 2019); Update on Trump Administration’s Threat To Allow U.S. Litigation Over Cuba’s Expropriated Property, dwkcommentaries.com (Jan. 30, 2019).

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Reaction

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

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

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

Proposed Resolution of U.S.-Cuba Issues

The 60 years of U.S. hostility towards Cuba (with the two-year respite (2014-2016) under President Obama) have left many important unresolved issues.[1] Here is at least a partial list of those issues:

  1. U.S. ending embargo (blockade) of Cuba?
  2. U.S. response to Cuba’s claims for alleged damages from embargo & other acts?
  3. U.S. closing its detention facility at Guantanamo Bay?
  4. U.S. paying Cuba for use of Guantanamo Bay, 1960— ?
  5. U.S. returning Guantanamo Bay to Cuba or entering into new lease of territory?
  6. Cuba paying U.S. persons for expropriated property, 1959-60?
  7. U.S. ending unilateral “democracy promotion” activities in Cuba?
  8. Mutual extradition of the other’s criminal suspects & convicts?
  9. Cuba improving human rights?
  10. U.S. & Cuba resolving responsibility for medical problems of U.S. diplomats in Cuba, 2016-??
  11. U.S. ending or modifying U.S. ban on transactions with certain Cuban entities on the State Department’s “Cuba Restricted List”?
  12. U.S. possible restoration of parole for Cuban medical professionals?
  13. U.S. possible allowance of lawsuits for expropriated Cuban property?
  14. U.S. possible re-designation of Cuba as a “state sponsor of terrorism” due to Cuban military aid to Venezuela?
  15. U.S. possible adoption of other U.S. hostile acts against Cuba proposed by President Trump, National Security Advisor Bolton, Secretary of State Pompeo, Senator Rubio, et al.?

Many of these issues were discussed in the meetings of the two countries in 2015-17 although the substance of the discussions have not been publicly disclosed.

If I were President with a supportive Congress,  I would work for the following comprehensive bilateral resolution:of these issues:

  • U.S. ends embargo (blockade) of Cuba;
  • U.S. ends unilateral “democracy promotion” efforts in Cuba;
  • U.S. closes detention facility at Guantanamo Bay;
  • U.S. pays Cuba for its use of Guantanamo Bay, 1960 to date;
  • U.S. and Cuba enter into new lease of Guantanamo Bay at fair market value rental;
  • U.S. pays Cuba for alleged damages caused by U.S. embargo (blockade);
  • Cuba agrees to pay fair market value, with interest, to U.S. owners of expropriated property (potentially with funds provided by U.S. paying Cuba for past use of Guantanamo Bay; for future use of Guantanamo Bay under new lease; and for alleged damages caused by U.S. embargo (blockade));
  • U.S. abolishes Title III of Helms-Burton Act allowing U.S. owners of expropriated property to sue persons trafficking in property owned by U.S. persons that were expropriated by Cuba (1959-60);
  • U.S. agrees not to reintroduce parole for Cuban professional medical personnel;
  • U.S. agrees not to re-designate Cuba as “state sponsor of terrorism;”
  • U.S. and Cuba enter into new agreement on mutual extraditions;
  • U.S. and Cuba agree on bilateral ways to improve Cuban human rights and Internet access; and
  • U.S. and Cuba resolve issues regarding medical problems of US diplomats in Cuba (2016-??).

The proposal to have the U.S. use some or all of its payments to Cuba for Guantanamo usage and alleged Cuban damages from the embargo for the U.S. to pay for the U.S. claims for Cuba’s expropriations  is based on the painful realization that Cuba does not have the resources to pay for any significant portion of these U.S. claims.

Cuba repeatedly has asserted that the U.S. use of Guantanamo Bay is an illegal occupation and the property should be returned to Cuba. Because of the  U.S. argument to legally have occupied the territory under the 1903 lease and because of U.S. current national security concerns, however, the U.S. would not and should not agree to this Cuban proposal, especially since Cuba is developing closer relationships with Russia and China, which potentially could occupy Guantanamo to enhance their threats to the U.S.

Failure to reach agreement on any of these issues may well result in narrowing the issues, and any unresolved issues should be submitted to a binding international arbitration at the Permanent Court of Arbitration at the Hague in the Netherlands. Based on this blogger’s experience as a corporate litigator in U.S. courts, I note that many cases like the one proposed for arbitration of the Cuban and U.S. claims frequently are settled before they go to trial.

One example of narrowing the issues is Cuba’s recognition with other countries that it has an international legal obligation to pay for expropriated property, which is the major premise of the U.S. claims for expropriated property. That would leave important, subsidiary issues: are the claimants valid owners of the Cuban properties; what were the fair market values of the properties at the time of expropriation; and what is a fair rate of interest on the claims?

I invite anyone with other ideas for a comprehensive bilateral resolution of outstanding issues or objections to my proposed resolution to share them in reasoned comments to this post.

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[1] These issues are discussed in many posts listed in List of Posts to dwkcommentaries—Topical: CUBA.