Implications for Cuba of Dismissal/Resignation of John Bolton as U.S. National Security Advisor 

While acting as National Security Advisor, John Bolton was a strong advocate for U.S. hostility towards Cuba.[1] His dismissal on September 10 [2] raised the hope that this might lead to the U.S. backing away from at least some of these hostile policies.

Those hopes apparently were unjustified.[3]

On September 12, U.S. Senator Marco Rubio tweeted, “Just spoke to [President Trump] on #Venezuela. It’s true he disagreed with some of the views of previous advisor [John Bolton]. But as he reminded me it’s actually the DIRECT OPPOSITE of what many claim or assume. If in fact the direction of policy changes it won’t be to make it weaker.”

This was confirmed by the President in his tweet later the same day: “In fact, my views on Venezuela, and especially Cuba, were far stronger than those of John Bolton. He was holding me back!”

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[1] E.g., John Bolton’s New Threat Against Cuba, dwkcommentaries.com (Apr. 2, 2019); National Security Advisor Bolton Discusses New U.S. Sanctions Against Cuba, dwkcommentaries.com (April 19, 2019).

[2] Baker, Trump Ousts John Bolton as National Security Advisor, N.Y. Times (Sept. 10, 2019).

[3] Rubio, Tweet (Sept. 12, 2019); Trump, Tweet (Sept. 12, 2019); Trump: My views on Venezuela and Cuba were stronger than those of John Bolton, Cubadebate (Sept. 13, 2019).

 

 

 

U.S. Unjustified Campaign To Discredit Cuba’s Foreign Medical Mission Program 

Over the last several years, the U.S. has been waging a campaign seeking to discredit Cuba’s foreign medical mission program. This campaign includes the State Department’s annual reports on human trafficking that have alleged Cuba has been engaged in illegal forced labor of some of its medical professionals in these programs. Another part was the recent decision to deny U.S. visas to Cuban officials directing the medical mission program.[1] The most recent measure has been the U.S. Agency for International Development (USAID’s) soliciting bids to conduct research and analysis of evidence regarding the forced labor allegation. Some Congressmen also have suggested reactivation of a U.S. program providing U.S. parole visas for such medical professionals to be admitted to the U.S.[2] Unsurprisingly Cuba denies these allegations and condemns these U.S. programs. (Emphases added.)

Here we will look at key parts of this trafficking in persons report, the recent USAID solicitation of bids for research and analysis, Cuba’s response to that solicitation and a demonstration why the U.S. allegations are specious.

U.S. 2019 Trafficking in Persons Report [3]

The most recent such report, which was issued on June 20, 2019, said the following, in part:

  • In November 2018, Cuban healthcare workers filed a class action in the U.S. District Court Southern District of Florida under the Trafficking Victims Protection and the Racketeering Influenced and Corrupt Organization Acts alleging the Cuban government profited from the export of healthcare professionals; the case remains pending.[4] In Brazil, the Cuban government collected revenue for each professional’s services and paid the worker a fraction of the revenue depositing a large percentage of the worker’s wages in an account in Cuba only accessible upon completion of the mission and return to Cuba. . . . Some participants in foreign medical missions as well as other sources allege Cuban officials force or coerce participation in the program; the government has stated the postings are voluntary, and some participants also have stated the postings are voluntary and well-paid compared to jobs within Cuba. Observers report the government does not inform participants of the terms of their contracts, making them more vulnerable to forced labor. The Cuban government acknowledges that it withholds passports of overseas medical personnel in Venezuela; the government provided identification cards to such personnel. Some Cuban medical personnel claim they work long hours without rest and face substandard working and living conditions in some countries, including a lack of hygienic conditions and privacy. Observers note Cuban authorities coerced some participants to remain in the program, including by withholding their passports, restricting their movement, using “minders” to conduct surveillance of participants outside of work, threatening to revoke their medical licenses, retaliate against their family members in Cuba if participants leave the program, or impose criminal penalties, exile, and family separation if participants do not return to Cuba as directed by government supervisors.” (Emphases added.)

USAID’s Solicitation of Research Bids [5]

On August 12, 2019, the U.S. Agency for International Development (USAID) announced that it was offering up to $3 million to organizations that would “investigate, collect, and analyze information related to human rights violations – including forced labor – of Cuban medical personnel exported overseas.”

USAID purported to justify this effort by alleging, “The Cuban regime exploits its medical professionals, teachers and other workers, using them to buy international financial and political support and keep its struggling economy afloat, while pocketing the majority of these workers’ salaries and subjecting them to poor living conditions, constant surveillance, and threatening those who wish to leave their mission. At the same time, Cubans on the island struggle to find adequate healthcare and other basic services while the regime touts the false narrative that it has the best medical care in the world.” (Emphasis added.)

In addition, USAID said, “the information collected should also document the effects of these practices on Cubans on the island. The data collected would be used for advocacy within Cuba, in Latin America and with regional and international bodies, such as the Inter-American Commission on Human Rights (IACHR) and the United Nations Human Rights Council (UNHRC) in an effort to pressure the Cuban regime to improve the living conditions of doctors and other workers, and promote greater respect for labor and other basic human rights for all Cuban citizens.”

Cuba’s Response[6]

In an August 30 Declaration, the Cuba Foreign Ministry “energetically denounces and condemns the recent aggression of the government of the United States against Cuba via a USAID program designed to fund actions and information searches to discredit and sabotage the international cooperation being provided by Cuba in the health area in dozens of countries for the benefit of millions of persons.  This is an endeavor added to the crude pressures exercised against a number of governments in order to obstruct Cuban cooperation and to the earlier efforts for the same purpose such as the special ‘parole’ program designed to steal human resources trained in Cuba.”

“The heart of this immoral calumny consists of alleging, with no factual foundations whatsoever, that Cuba is involved in the traffic of persons or in the practice of slavery, and wishing to degrade the meritorious work that hundreds of thousands of Cuban health professionals and technicians are voluntarily undertaking, and have been undertaking, throughout history, in a number of countries, especially in the Third World.”

This is “an affront to the bilateral and intergovernmental cooperation programs, all lawfully set up between the Cuban Government and the governments of dozens of countries, which have been consistent with the [U.N.] guidelines referring to South–South cooperation and which have responded to the health requirements that those same governments have defined in a sovereign manner.”

“This is an attack against the efforts in solidarity which have received the acknowledgement of the international community and the specific praise from the most senior officials of the United Nations, the World Health Organization and the Pan-American Health Organization.”

“These lies reveal the low morality of the [U.S.] government and its politicians who devoted themselves to the business of aggression against Cuba.  The campaign has millions of dollars of funds and the complicity of a number of the mass media giants and, particularly, of unscrupulous reporters who have sacrificed their so-called impartiality and objectivity in the service of the political interests of the [U.S.] government.”

“For decades . . . in those nations having more unfavorable economic conditions, that cooperation has been provided, and is being provided, as a gesture of solidarity; its expenses are covered by Cuba practically in their entirety. Likewise, and following the [U.N.] conceptions on cooperation between developing countries, this is being offered in various nations on the basis of complementarity and partial compensation for services rendered.”

Cuba has provided “self-sacrificing and humanist professionals ready and willing to work of their own free will in the most difficult of conditions, and of the ideas of health coverage that years of successful experience has permitted us to build up.”

“The Cuban technicians and professionals participating in those programs do so in an absolutely free and voluntary manner.  While serving their missions, they continue to be paid their entire Cuban salaries and they also receive stipends from the destination countries, along with other forms of compensation.”

“In cases where Cuba receives compensation for the cooperation being provided, those . . . [countries] distinguish themselves by contributing a highly valued, fair and totally lawful amount for the funding, sustainability and development of the massive and free health system that is accessible to each and every Cuban, as well as for the cooperation programs that are carried into many parts of the world.”

“Access to health is a human right.  The United States is committing a crime when it wishes to deny that or to obstruct it for political reasons or as aggression.”

This Cuban criticism was echoed in an August 31 tweet by President Miguel Diaz-Canel, who said, “The carelessness, the lie, the perversity of the empire crumble before the moral height accumulated by the dignified history of the Cuban missions in health.”

The Specious U.S. Allegation of Illegal Forced Labor [7]

The contention that Cuban medical personnel in Cuba’s foreign medical mission program are engaged in illegal forced labor is meritless for at least the following reasons:

  • Medical education in Cuba is free and requiring medical graduates to pay the country back by such participation seems entirely appropriate and may indeed be a contractual or quasi-contractual obligation.
  • International medical aid has been a significant part of the Cuban people’s tradition of international solidarity, and some Cuban medical personnel have said that such service had a major positive impact on their lives and medical careers.
  • The relevant standard for evaluating the allegationthat Cuba’s international medical mission program violates international law is the International Labor Organization’s Forced Labour Convention, 1930.
  • That multilateral Convention or treaty provides that “for the purposes of this Convention, the term forced or compulsory labour shall not include . . . any work or service which forms part of the normal civic obligations of the citizens of a fully self-governing country.” (Art. 2(2)(b).) (Emphasis added.)
  • Although it is true that the Cuban government receives direct payment from other countries for the foreign medical mission program and that the Cuban government retains some of those payments before paying the Cuban medical professionals, it also is true that such payments to those professionals exceed what they would have earned for similar services in Cuba. In addition, some of the payments to the Cuban professionals are deposited in Cuban accounts only accessible upon their completion of service and return to Cuba. But such practices do not constitute proof of forced labor.
  • While it also is true that some Cuban medical professionals who have participated or are now participating in the foreign medical mission program allege that they were coerced into doing so, the report indicates that the Cuban government and other participants deny that allegation and that there has been no independent adjudication of that allegation. (Emphases added.)
  • Also relevant to this allegation is Cuban medical professionals’ undoubted awareness of the significantly higher compensation they potentially could obtain if they were able to relocate in the U.S. or certain other countries.
  • A detailed study by Indiana State University’s Emeritus Professor of International Politics and Latin America, Dr. H. Michael Erisman, has rejected this accusation of forced labor.

The latest report on Cuba also fails to mention that the U.S. and Cuba apparently had friendly bilateral discussions about other human trafficking issues during the Obama Administration (2015 through January 17, 2017) and the Trump Administration (2017-2018).

The hypocrisy of the State Department’s repeated assertion of this claim of forced labor without recognizing the ILO’s Forced Labour Convention is shown by Secretary of State Pompeo’s congratulating the ILO on its centennial anniversary only one day after the release of the 2019 Trafficking in Persons Report. The Secretary said:

  • “The dignitaries that convened in Paris in 1919 to end the Great War knew that any lasting peace needed to be rooted in the protection of individual rights, including the rights of workers and employers to associate freely and bargain collectively. “
  • The United States proudly hosted the first International Labor Conference in 1919 and the “war-time conference that enshrined the ILO’s enduring founding principles and aims in the Declaration of Philadelphia. As strong supporters of the ILO and its mission, we reflect on the important role played by Americans to create and sustain this organization, including David Morse, who served as ILO Director-General for 22 years, and under whose leadership the ILO won the Nobel Peace Prize.”
  • “As the ILO enters its second century pursuing objectives critical to economic prosperity and security around the world, the United States recommits itself to advancing the rights of workers globally.

Another rebuttal of the U.S. allegations about the medical mission program recently was provided by a U.S. citizen, Dr. Graham Sowa, who has a Cuban medical degree and who now is a resident in internal medicine in a Florida hospital. He did not participate in the Cuban medical mission program, but his Cuban friends who are now physicians have done so and who totally reject this allegation. Sowa said, ““Cuba says they want to provide humanity with medical care. It is their commitment toward international solidarity.”

Conclusion

No matter how many times the U.S. alleges that Cuba’s foreign medical mission program engages in illegal forced labor does not make it so. The U.S. has not even publicly submitted an attempted legal justification for these allegations.  The U.S. is wasting money on this specious claim.

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[1]  New U.S. Government Hostility Towards Cuba’s Medical Mission Program, dwkcommentaries.com (Aug. 14, 2019)

[2] Senators Rubio and Menendez Call for Restoring U.S. Parole Program for Cuban Doctors, dwkcommentaries.com (Jan. 11, 2019). See also posts listed n the “Cuban Medical Personnel & U.S.” section of List of Posts to dwkcommentaries—Topical: CUBA.

[3] State Department Unjustly Downgrades Cuba in Annual Report on Human Trafficking, dwkcommentaries.com (June 22, 2019).

[4]  Pais, Health Organization Accused of Trafficking Doctors to Brazil, Courthouse News Service (Dec. 3, 2018)  The class action complaint, which was filed November 30, 2018, alleges that the Pan American Health Organization collected over $75 million since 2013 by enabling and managing the illegal trafficking of Cuban medical professionals in violation of the Trafficking Victims Protection Act and the Racketeering Influenced and Corrupt Organizations Act. Nothing of substance has happened so far in this case. The last docket entry was on July 2, 2019, for an order setting a hearing on July 18, 2019, for Pan American Health’s objections to and appeal from a magistrate judge’s order denying its motion to transfer the case to the U.S. District Court for the District of Columbia. (Civil Docket, Rodriguez v. Pan American Health Org., Case #: 1:18-cv-24995-DPG (Aug. 30, 2019).

[5] Eaton, USAID plans to spend up to $3 million to investigate Cuban doctors, Cuba Solidarity Campaign (Aug. 12, 2019).

[6] Cuba Foreign Ministry, Statement: The Government of the United States Is Earmarking Millions of Dollars To Obstruct Cuban Medical Cooperation (Aug. 30, 2019); The regime blames the US for complaints about the exploitation of Cuban doctors, Diario de Cuba (Aug. 29, 2019); Diaz-Canel described the ‘attacks’ and the ‘attacks by the US on the slae of medical services, Diario de Cuba (Sept. 1, 2019).

[7] State Department Unjustly Downgrades Cuba in Annual Report on Human Trafficking, dwkcommentaries.com (June 22, 2019); Guzzo, Are Cuban physicians human trafficking victims? No way, says Brandon doctor with Havana degree, Tampa Bay Times (Aug. 29, 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).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Venezuelan Power Outage Causes New Crisis

On March 7 Venezuela had a major electrical power outage that continues to this day. On March 11 this outage resulted in harsh words and actions by the United States, Cuba and Venezuela. When and how it will end, the public does not know.

Secretary Pompeo’s Morning Comments [1]

On the morning of March 11, U.S. Secretary of State Mike Pompeo at a press conference at the State Department said Cuba and Russia “have played [a central role] and continue to play in undermining the democratic dreams of the Venezuelan people and their welfare.” He followed with these comments about Cuba:

  • “No nation has done more to sustain the death and daily misery of ordinary Venezuelans, including [its] . . .  military and their families, than the communists in Havana. Cuba is the true imperialist power in Venezuela. The Cuban government of Miguel Diaz-Canel provides political cover for Maduro and his henchmen so that they may stay in power. It is Cuba that has offered Maduro its unwavering solidarity. It’s Cuba that calls Venezuela’s true government, led by Interim President Juan Guaido, which 54 of the world’s democratic nations recognize as a legitimate government—Cubans call this a puppet government of the United States.”
  • “Yet it’s Cuba that’s trained Venezuelans’ secret police and torture tactics, domestic spying techniques, and mechanisms of repression the Cuban authorities have wielded against their own people for decades. Members of the Cuban military and intelligence services are deeply entrenched in the Venezuelan state. Cuban security forces have displaced Venezuelan security forces in a clear violation of Venezuelan sovereignty. I even hear that Maduro has no Venezuelans around him. Many of his personal security and closest advisors are acting not at the direction of the Venezuelan people, and frankly, perhaps not even at the direction of Maduro, but rather at the direction of the Cuban regime. They provide physical protection and other critical material and political support to Maduro and to those around him. So when there’s no electricity, thank the marvels of modern Cuban-led engineering. When there’s no water, thank the excellent hydrologists from Cuba. When there’s no food, thank the Cuban communist overlords.”
  • “Why is Cuba asserting so much influence in Venezuela? What’s in it for them? Follow the ideology, follow the corrupt elites, and perhaps most importantly, follow the money. Cuba’s communist revolutionaries share a natural affinity with Maduro’s socialists. They both disdain private property rights, the rule of law, and free and fair elections. The very same economic theories that have decimated the Cuban economy since 1959 have now turned Venezuela’s economy, one of the richest in Latin America, into a case of decline that economists study with amazement and horror. Both of these countries routinely violate the basic human rights of their peoples.”
  • “The two nations also share a feature: a deeply corrupt ruling class. Maduro learned from the Castros that the best way to stay in power is to buy enough generals to protect you and make sure that the only way to be rich, or even to avoid poverty, is to feed off the regime and stay in its good graces.”
  • “Lastly, there’s an economic relationship between Cuba and Venezuela as well. The Maduro regime sends up to 50,000 barrels of oil to Cuba per day, and Cuba needs this cheap Venezuelan energy to prop up its tottering socialist economy, while Maduro needs Cuban expertise in repression to keep his grip on power. That’s a match made in hell.”

Cuba’s Response Regarding Venezuela [2]

“The Revolutionary Government strongly condemns the sabotage perpetrated against the power supply system in Venezuela, which is a terrorist action intended to harm the defenseless population of an entire nation and turn it into a hostage of the non-conventional war launched by the government of the United States against the legitimate government headed by comrade Nicolás Maduro Moros and the civic and military union of the Bolivarian and Chavista people.”

“This adds to the ruthless economic and financial warfare imposed on Venezuela with the clear intention to subjugate, through shortages and deprivations, the political and sovereign will of a people that has not been brought to its knees.”

“This is an escalation of a non-conventional war led by the US government against that sister nation, which is taking place after the failed provocation  orchestrated on February 23 with the intention of carrying by force an alleged humanitarian aid into Venezuela, thus challenging the legitimate authorities of that country and violating International Law and the principles and norms of the United Nations Charter, with the purpose of causing widespread death and violence as a pretext for a “humanitarian intervention.”

“The experience of Cuba’s own history and the history of other countries in the region show that these actions are a prelude of violent acts of a larger scope, as was the case of the armed invasion through Bay of Pigs in 1961.  The international community has accumulated sufficient evidence to be on the alert.”

“The usurper and self-proclaimed ‘president’ made in the US has publicly said that, when the time comes, he would invoke Article 187 of the Constitution to authorize the use of foreign military missions in the country; and has repeated exactly the same phrase used by his American mentors: ‘All options are on the table.’”

“He just needs to receive an order from Washington, since it is known that, during his tour around South America, he already asked certain governments to support a military intervention in his country.”

“The offensive launched against Venezuela has been accompanied by a ferocious campaign of McCarthyist propaganda and lies coordinated by the National Security Advisor of that country, John Bolton, as a pretext to apply by force the Monroe Doctrine, for which he has counted on the active participation of the anti-Cuban Senator Marco Rubio, who has frantically resorted to social networks, thus evidencing his interest and personal and conspiratorial involvement in the maneuvers perpetrated against Venezuela.”

One of the most relentless and shameless statements made has been the slanderous assertion that Cuba has ‘between 20 and 25 thousand troops in Venezuela’ which ‘exercise control’ on that sister and sovereign nation and  ‘keep’ the members of the glorious and combative National Bolivarian Armed Forces ‘under threat.’  Cuba categorically rejects that lie and equally strongly refutes any insinuation that there is some level of political subordination by Venezuela to Cuba or by Cuba to Venezuela.”

“It is absolutely not true that Cuba is taking part in operations carried out by the National Bolivarian Armed Forces or the security services.  This is a slanderous rumor deliberately disseminated by the government of the United States.  When Bolton as well as other politicians and officials of the US government rely on such rumors, they are deliberately lying to pursue aggressive political purposes.  They have sufficient data and information and know the truth.”

“Cuba does not interfere in the internal affairs of Venezuela, just as Venezuela does not interfere in Cuba’s internal affairs.”

“Unlike the United States, which has about 80 military bases in Latin America and the Caribbean, including the one that is usurping the Cuban territory in Guantánamo; and around 800 in the entire planet, with more than 250 000 quartered troops, Cuba does not have any base in any country; or specialists in torture and police repression; or secret prisons; or naval or air forces prowling around the coasts or the immediate air space of sovereign States; or satellites watching every single detail.”

“The Revolutionary Government warns and denounces that the tendency of the government of the United States to lie without any limit or restraint whatsoever has already had dangerous consequences in the past that could replicate in the present.”

Maduro’s Comments [3]

Early on Tuesday, the Venezuelan foreign ministry said that talks on keeping some U.S. representation collapsed due to hostility from Washington and that the presence of U.S. diplomats entails risks for peace and stability.

Later in a televised statement to the country, Maduro said the electrical problems would be resolved by the end of the week. He also said, “his opponents in Venezuela and the United States Government [are] responsible for these blackouts, which became frequent in the country under his Administration and despite the fact that almost all the stations of the National Electric System (SEN) are under the protection of the public force under his orders. [Our opponents] are going to insist on their attacks so I ask for maximum awareness and understanding if new attacks affect the service of their people, in their community, in their state, maximum understanding.” Maduro also said President Donald Trump was the “main [one] responsible for the cyber attack” to [Venezuela’s electrical power system].”

Pompeo’s Late Night Comments [4]

At 9:50 pm (EDT) Secretary Pompeo issued the following tweet: “The U.S. will withdraw all remaining personnel from [the U.S. Embassy in Caracas] this week. This decision reflects the deteriorating situation in [Venezuela] as well as the conclusion that the presence of U.S. diplomatic staff at the embassy has become a constraint on U.S. policy.” (Emphasis added.) This was reiterated in the following statement by the State Department: “this decision reflects the deteriorating situation in Venezuela as well as the conclusion that the presence of U.S. diplomatic staff at the embassy has become a constraint on U.S. policy.”

Conclusion

Pompeo’s comment that the “presence of U.S. diplomatic staff at the embassy has become a constraint on U.S. policy” could be read as a hint that the U.S. was planning some kind of military intervention. A former U.S. diplomat who has worked in Caracas, Brett Bruen, said this announcement “appeared hasty and lacked the details . . . to make sense of what American actions and policy are” and “played into Mr. Maduro’s warnings that the United States was the actual power behind an attempted coup.”

It is well documented that Venezuela has been experiencing a devastating economic crisis with outrageously high inflation, lack of food and medical supplies and the exodus of millions of its citizens to neighboring countries.

At the same time it is difficult to trust the conflicting statements by the governments of the U.S., Cuba and Venezuela. I pray that there will be no U.S. military intervention.

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[1] U.S. State Dep’t, Remarks to the Press (Mar. 11, 2019);Sanger, Kurmanaev & Herrera, Pompeo Accuses Cuba and Russia of Propping Up Venezuelan Ruler, N.Y. Times (Mar. 11, 2019).

[2] Cuba Foreign Ministry, Statement by the Revolutionary Government of Cuba: Cuba Condemns the Terrorist Sabotage Against the Power Supply System in Venezuela (Mar. 11, 2019).

[3] Assoc. Press, Venezuela says breakdown in talks led to US pullout, Wash. Post (Mar. 12, 2019); 

In the middle of the massive blackout, Maduro called the collectives to “active resistance,” El Comercio (Mar.12, 2019). 

[4] Wong & Victor, In Setback in Venezuela, U.S. Is Withdrawing Diplomats From Its Embassy, N.Y. Times (Mar. 12, 2019); U.S. State Dep’t, On the Withdrawal of U.S. Diplomatic Personnel from Venezuela (Mar. 11, 2019).

U.S. Authorizes U.S. Litigation Against Entities on Cuba Restricted List

On January 16, 2019, U.S. Secretary of State Mike Pompeo extended for 45 days the right to bring certain lawsuits in U.S. federal courts  by Americans who owned property in Cuba that was confiscated by its government. The stated reasons for this 45-day extension, instead of the long-standing practice of granting six-month extensions was to “permit us to conduct a careful review of the right to bring action under Title III [of the Helms-Burton or LIBERTAD Act] in light of the national interests of the United States and efforts to expedite a transition to democracy in Cuba and include factors such as the Cuban regime’s brutal oppression of human rights and fundamental freedoms and its indefensible support for increasingly authoritarian and corrupt regimes in Venezuela and Nicaragua.”  [1]

Secretary Pompeo’s New Statement [2]

On March 3, Secretary Pompeo issued another statement on this subject with two parts.

The first part granted “an additional suspension for 30 days through April 17, 2019, of the right to bring an action under Title III [of this federal statute as] necessary to the national interests of the United States and will expedite a transition to democracy in Cuba.” with the below exception. Beginning March 19, suspension shall not apply to:

The second part of this statement, however, contained an exception to this further suspension. Beginning March 19, this suspension will not apply to the “right to bring an action against a Cuban entity or sub-entity identified by name on the State Department’s List of Restricted Entities and Sub-entities Associated with Cuba (known as the Cuba Restricted List), as may be updated from time to time.” This exception protects, for now any foreign firm from such U.S. litigation.

The Cuba Restricted List [3]

This statement explained that the “Cuba Restricted List identifies entities and sub-entities under the control of Cuban military, intelligence, or security services. These security services are directly responsible for the repression of the Cuban people. We encourage any person doing business in Cuba to reconsider whether they are trafficking in confiscated property and abetting the Cuban dictatorship.”

The first such Restricted List was promulgated by the State Department in November 2017,, with a list of 180 entities and subentities that the Department had determined were owned or controlled by “the large military-run corporations that dominate the Cuban economy. These include GAESA and CIMEX, the holding companies that control most retail business on the island; Gaviota, the largest tourism company; and Habaguanex, the firm that runs Old Havana.

This list was amplified on November 14,  2018, with the addition of 26 subentities. According to the State Department, “direct financial transactions [by U.S. nationals] with these entities are generally prohibited because they would disproportionately benefit those entities or personnel at the expense of the Cuban people or private enterprise in Cuba.”

Cuba’s Reaction  [4]

Also on March 4 the Cuba’s foreign Ministry issued the following lengthy rejection of this U.S. move:

  • “The Ministry of Foreign Affairs rejects in the strongest terms the new escalation in the US aggressive behavior against Cuba.”
  • “Since its entry into force in 1996, the Helms-Burton Act has sought to universalize the economic blockade through brutal and illegal pressures exerted by the United States against third countries, their governments and companies.  It is intended to suffocate the Cuban economy and generate or increase shortages among the population with the purpose of imposing in Cuba a government that serves the interests of the US.”
  • “Given the illegitimate character of the goals they pursue, which are contrary to International Law, the Helms-Burton Act and the blockade arouse universal rejection, which has been reiterated for almost three decades at the most important regional and international fora.  The most recent example of that was the United Nations General Assembly meeting held on November 1, [2018] when said policy was rejected through 10 consecutive votes, thus leaving the US in complete isolation.”
  • “Title II of the Helms-Burton Act states that the overthrowing of the revolutionary government, the subsequent tutelage by a US intervenor and the ultimate establishment of a counterrevolutionary government subordinated to Washington would unequivocally pursue the return or compensation to former owners for all the properties they or their descendants might claim, regardless of whether or not they were US citizens at the moment when nationalizations took place or the fact that they abandoned them. During all that period, the economic blockade would continue to be fully implemented.”
  • “Consequently, Cubans would be forced to return, reimburse or pay to US claimants for the house where they live, the area on which their communities are built, the arable land  where they farm  their products, the school where their children are educated, the hospital or polyclinic where  they receive medical assistance, the place where their workplace is located or where they have a private business, and also for subsidized services such as electricity, water, and communications enjoyed by the population.”
  • “This is an aspiration that can only be conceived by the minds of those who identify Cuba s a colonial possession.  According to the Helms-Burton Act, the economic blockade would be lifted only when that ambition is fulfilled.”
  • “This law relies on two fundamental lies: the notion that nationalizations carried out soon after the triumph of the Revolutionary were illegitimate or inappropriate and that Cuba is a threat to the US national security.”
  • “Cuban nationalizations were carried out in accordance with the law, strictly abiding by the Constitution and in conformity with International Law. All nationalizations included processes of fair and appropriate compensation, something that the US government refused to consider.  Cuba reached and honored global compensation agreements with other nations which are today investing in Cuba, such as Spain, Switzerland, Canada, United Kingdom, Germany and France.”
  • The real threat against regional peace and security are the irresponsible declarations and actions of the US government as well as the destabilizing plans against Latin America and the Caribbean aimed at pursuing the stated purpose of imposing the Monroe Doctrine.”
  • [Cuba’s] Reaffirmation of   Cuban Dignity and Sovereignty Act of December 24, 1996, states that the Helms-Burton Act is illegal, inapplicable and has no legal value or effect whatsoever. It considers null and void any claim under that law by any natural or juridical person.”
  • “According to that [Cuban] law, claims for compensation for nationalized properties could be part of a process of negotiation on the based on equality, mutual respect between the governments of Cuba and the United States, and be “reviewed together with the indemnifications the Cuban State and people are entitled to as a result of the damages caused by the blockade and   aggressions of every sort, of which the US government is responsible”. It also makes it clear that those who resort to procedures or mechanisms under the Helms-Burton Act to the detriment of others shall be excluded from possible future negotiations.”
  • “The Cuban Government reiterates to all economic partners and foreign companies operating in Cuba that full guarantees will be granted to foreign investments and joint projects. Article 28 of the Cuban Constitution, which was ratified by an overwhelming majority on February 24, 2019, also recognizes those guarantees, which are also included in [Cuban] Law No. 118 on Foreign Investments of March 29, 2014.”
  • “Today’s [U.S.] decision imposes additional obstacles to our economic development and progress goals, but the United States will keep on failing to achieve its main purpose of submitting by force the sovereign will of Cubans and our determination to build socialism. The majority feelings of the peoples of Cuba and the United States in favor of improving relations and establishing a civilized and respectful coexistence shall prevail.”

Other Reactions

John Bolton, U.S. National Security Advisor commented the same day in the following tweet: “Cuba’s role in usurping democracy and fomenting repression in Venezuela is clear. That’s why the U.S. will continue to tighten financial restrictions on Cuba’s military and intel services. The region’s democracies should condemn the Cuba regime.”

Senator Marco Rubio (Rep., FL) had a similar tweet: “Today expect the United States to take the first in a series of steps to hold the regime in #Cuba accountable for its 60 years of crimes & illegality which includes its support for the murderous #MaduroCrimeFamily. Justice is coming. And more to come.”

Rubio also joined with U.S. Senator Rick Scott (Rep., FL) and U.S. Representative Mario Diaz-Balart (Rep., FL) in issuing the following lengthier statement supporting this Trump Administration move. [5]

Senator Rubio made the initial comments of the Press Release,“‘President Trump is sending a strong message that the United States will not sit idly by while the Cuban regime continues to support the Maduro crime family at the expense of the Venezuelan people,’ Rubio said. ‘For 60 years, the Cuban regime has forced millions into exile, destabilized neighboring countries, given safe harbor to fugitives from justice and to international terrorists, and made millions trafficking in stolen property. By beginning the process of implementing Title III of the Helms-Burton Libertad Act, the United States is holding the Cuban regime accountable for its crimes, including its support for the murderous Maduro crime family. Justice is coming — and it is just getting started.’”

Senator Scott added, “The Administration’s plan to fully and immediately implement Title III and IV of the Libertad Act signals to the international community that the United States is serious about its commitment to freedom and democracy in Cuba. Allowing American citizens to sue for stolen property in Cuba and denying foreign nationals involved in trafficking stolen property entry into the United States is a huge step toward cutting off the money supply to the Castro Regime. It is clear that where we see instability, chaos and violence in Latin America, we also see the fingerprints of the Castro regime and their money – and this action by the administration is an important step in stabilizing the entire region. President Trump’s strong action on the Libertad Act will further hold the Cuban regime accountable. I urge him to continue with the planned implementation this month so we can help begin a new day of freedom and democracy for Cuba and its people.”

Representative Diaz-Balart stated, “Today, the Trump Administration took another important step toward righting some of the wrongs perpetrated by a dictatorship that brutally oppresses its people and opposes U.S. interests at every opportunity. Shamefully, for nearly twenty-two years since the LIBERTAD Act’s enactment, unscrupulous businesses have ignored this important provision in U.S. law and have chosen to partner with tyrants. This is just the first action of many regarding the Administration’s actions on Title III. Justice for the victims of the Castro regime’s confiscations is long overdue. Years of consecutive extensions may have lulled some into a false sense of impunity. Yet now companies which willingly entangle themselves in partnerships with the anti-American, illegitimate, and oppressive regime in Cuba are on notice that they will be held responsible for their part in callously benefiting from the extensive losses suffered by victims of the regime. I will continue to work with the Administration, Senator Rubio, and my congressional colleagues to ensure the United States continues to pressure the Castro regime and move forward with the full implementation of Title III.”

 Conclusion

This U.S. announcement may have only symbolic significance.

First, according to the Associated Press, “virtually none of the businesses [on the State Department’s Cuba Restricted List has] . . . any links to the U.S. legal or financial systems, meaning the ability to sue [in the U.S.] is unlikely to have any effect on the Cuban economy or foreign businesses that work with the socialist government.” In lawyer’s language, any lawsuit in a U.S. court against an entity on the Cuba Restricted List should be subject to a very strong objection for lack of personal jurisdiction over the Cuban entity, meaning any such case very likely would be dismissed at the commencement of the case. [6]

Second, another potential defense to a U.S. lawsuit might be sovereign immunity.

Third, it would be insane for any U.S. claimant to sue any of the Cuban entities in a Cuban court, which would throw out any such case and perhaps impose some penalty on the claimant for bringing such a case.

Fourth, if any of the Cuban entities are present in other countries of the world, a lawsuit there by a U.S. claimant presumably would not be subject to a lack of personal jurisdiction defense, but other defenses might be available plus other countries’ possible hostility to the overall purposes of the Helms-Burton Act and U.S. policies towards Cuba.

Finally Cuba correctly observes that it recognizes that it has an international legal obligation to compensate foreign owners of expropriated property and that it has settled many (all?) such claims by non-U.S. persons. Moreover, under the U.S.-Cuba rapprochement in 2015-16 the two counties had discussions about the U.S. claims although the details have not been publicly released. A major impediment to such a negotiated settlement is Cuba’s lack of financial resources for such payments. Therefore, this blogger has suggested in another post that the only realistic result is for the two countries to reach an overall settlement, including Cuba’s claims against the U..S., which would have the net effect of the U.S. government’s paying the U.S. claims for expropriated property,   =================================

[1] Update on Trump Administration’s Threat To Allow U.S. Litigation Over Cuba’s Expropriated Property, dwkcommentaries.com (Jan. 30, 2019).

[2] State Dep’t, Secretary Enacts 30-Day Suspension of Title III (LIBERTAD Act) With an Exception (Mar. 3, 2019); Reuters, Foreign Partners Excluded From U.S. Lawsuits Against Cuban Firms: Official, N.Y. times (Mar. 4, 2019). 

[3] New Restrictions on U.S. Travel to Cuba and Transactions with Certain Cuban Entities, dwkcommentaries.com (Nov. 8, 2017);More Cuban Businesses Forbidden to U.S. Visitors, dwkcommentaries.com (Nov. 16, 2018).

[4] Cuba Foreign Ministry, Declaration of the Ministry of Foreign Affairs: Cuba Strongly Rejects New Aggressive Escalation by the United States (Mar. 4, 2019).

[5] Press Release: Rubio, Scott, & Diaz-Balart Commend Trump Administration’s Decision to Hold the Communist Cuban Regime Accountable for Crimes (Mar. 4, 2019).

[6] Assoc. Press, Trump Symbolically Tightens Embargo on Cuba, N.Y. Times (Mar. 4, 2019). See The Personal Jurisdiction Requirement for Civil Lawsuits in U.S. Courts, dwkcommentaries.com (Aug. 8, 2011).

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

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

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

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

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

Conclusion

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

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

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.