Cuba Pays $60 Million of Indebtedness to Major Creditor Nations     

The week of October 15 Cuba paid $60 million of indebtiness to 14 wealthy creditor nations. Last year Cuba paid $40 million to the same group. The total debt is $2.6 billion after the creditors in 2015 forgave $8.5 billion of $11.1 billion upon which Cuba had defaulted through 1986 plus charges.[1]

These creditor nations known as the Club of Paris are the following: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Italy, Japan, the Netherlands, Spain, Sweden, Switzerland and the United Kingdom.

Under the 2015 agreement, Cuba agreed for the first time to grant the creditors equity in development projects, in areas like manufacturing and agriculture, in exchange for a portion of their debt holdings. Many of these restructuring agreements include the establishment of so-called counter-value funds, under which a percentage of debt is discounted in exchange for the potential profits stemming from participation by a creditor country’s firms in Cuba joint-development projects.

The counter-value funds have an estimated combined value of around $750 million of the $2.6 billion owed. Japan, Spain, France and Italy – Cuba’s largest Paris Club creditors – are furthest along in negotiating swaps.

  • For example, a $46 million French project to develop cattle ranching and dairy products in central Camaguey province is ready to sign, according to France’s ambassador to Cuba, Jean-Marie Bruno.
  • Another example is Spain which has a project ready to manufacture cardboard and another aluminium structures for construction capable of resisting earthquakes and hurricanes, both involving Spanish companies.

This access to Cuban development projects gives the European countries and companies an advantage over U.S. companies who are banned by various U.S. laws from such projects.

This payment happened during dire economic times for Cuba due to the political and economic crisis in its ally Venezuela, declines in Cuban exports and tourism due, in part, to the damages caused by Hurricane Irma.

Cuba’s payment in these circumstances showed the importance Cuba attaches to the 2015 agreement with this group of major creditor nations.

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[1] Reuters, Cash-Strapped Cuba Makes Debt Payment to Major Creditors-Diplomats, N.Y. Times (Oct. 18, 2017); Chow, Cuba Reaches Deal to Pay $2.6 Billion in Arrears to Paris Club, W.S.J. (Dec. 12, 2015); Paris Club, Agreement on the Debt Between Cuba and the Group of Creditors of Cuba (Dec. 12, 2015).

U.N. Human Rights Council’s Sparring Over Cuban Human Rights

This September the U.N. Human Rights Council  in Geneva, Switzerland has encountered two items relating to Cuba: (a)  a Council reprimand of Cuba for its alleged punishing some of its citizens for cooperating with the U.N. on human rights and (b) Cuba’s human rights record.

The Council’s Reprimand

On September 20 the U.N. Human Rights Council reprimanded Cuba by putting it on a list of 29 states that have “punished people, through intimidation and reprisals, for cooperating with the UN on human rights.”  Such reprisals and intimidation include travel bans, asset-freezing, detention and torture.[1]

The  29 states on the list are Algeria, Bahrain, Burundi, China, Cuba, Egypt, Eritrea, Honduras, India, Iran, Israel, Mauritania, Mexico, Morocco, Myanmar, Oman, Pakistan, Rwanda, Saudi Arabia, South Sudan, Sri Lanka, Sudan, Tajikistan, Thailand, Turkey, Turkmenistan, United Arab Emirates, Uzbekistan and Venezuela. (The nine in bold along with 38 other U.N. members are elected by the U.N. General Assembly to serve on the Council.)

The report said the  following about Cuba:

“On 18 October 2016, some mandate holders raised with the [Cuban] Government allegations of harassment and reprisals against human rights defenders and members of the Cubalex Legal Information Center for their cooperation with the United Nations in the field of human rights (see A/HRC/34/75, CUB 3/2016). The allegations were mainly in relation to advocates’ cooperation with the Human Rights Council, its special procedures and the universal periodic review mechanism, and took the form of stop and questioning at the airport and harassment by immigration agents. Additionally, on 23 September 2016, the offices of Cubalex Legal Information Center were raided (CUB 3/2016).” (Report, Section V.B.5.)[2]

The Council’s Assistant Secretary-General, Andrew Gilmour, said, “There is something grotesque and entirely contrary to the Charter and spirit of the United Nations, and particularly this Council, that people get punished, through intimidation and reprisals, for cooperating with the U.N. on human rights,”

Complaint about Cuba’s Human Rights

On September 19, under the Council’s Agenda Item 4: “Human Rights Situations Requiring Council Attention,” a U.S. diplomat expressed U.S.’ deep concern about the human rights situation in Syria, the Democratic Republic of Congo, Burundi, Sudan, Myanmar, South Sudan, Russia, Iran, Democratic Republic of Congo, (North Korea), China, DPRK (North Korea), Hong Kong, Belarus, Turkey, Venezuela and Cuba. (Emphasis added.)[3]

The diplomat’s statement about Cuba was very short: “We urge Cuba to release political prisoners and cease the harassment of civil society groups.” (Emphasis in original.)

The U.S. statement about Venezuela, Cuba’s closest ally, was longer. It said, “We condemn the Maduro regime’s repressive actions to violate human rights including by suppressing dissent and peaceful protests in Venezuela.  We call on it to dissolve the illegitimate Constituent Assembly and restore Venezuela’s democratic institutions; hold free, fair, and credible elections as soon as possible; and provide humanitarian assistance for the Venezuelan people.” (Emphasis in original.)

Cuba’s Response.

The same day (September 19), Cuba’s Permanent Representative to the Council, Ambassador Pedro L. Pedroso Cuesta, made the following longer response:[4]

  • “Is it politicization, double standards and selectivity, [all] bad practices, that will end up prevailing in the work of the Human Rights Council? Many of us hope not.”
  • “However, what we have heard in the debate of this theme, as well as in others last week, suggests that some promote that this is the way to go by this body.”
  • “Several countries continue to seek to stand as paradigms for the promotion and protection of human rights and use this and other agenda items to criticize other countries, while xenophobia, racism and intolerance increase in their own territories to a highly worrying level.”
  • “How can one think they are seriously concerned about human rights situations in countries of the South, when they promote wars and interventions against them, and then ignore or keep their hands off the suffering they caused with these actions to citizens whose rights are supposedly sought to improve?”
  • “Why do they oppose implementing the right to development and thereby improve the situation of millions of people living in poverty?”
  • “Cuba rejects manipulation for political ends and double standards in the treatment of human rights. The accusations against my country made by the [U.S.] representative, as well as unfounded, are inconsistent with the need to promote an objective, non-politicized and non-discriminatory debate on human rights issues.”
  • “I must also draw attention to the fact that such statement, centered on the alleged violations of others, aims at ignoring all human rights violations occurring in its territory, and the deep international concern caused by the language of exclusion that appears in that country.”
  • “We demand the cessation of the economic, commercial and financial blockade imposed on Cuba for more than 55 years. The measures of June 16 to reinvigorate this blockade are doomed to failure, and will not achieve their purpose of weakening the Revolution or bending the Cuban people.”
  • “We reiterate our solidarity with the Venezuelan Government and people and call for an end to all interference in the internal affairs of that country. We demand respect for the legitimate right of the Venezuelan people to continue building the social model that drives the Bolivarian Revolution.”
  • “Let us not let the failure of the defunct Commission on Human Rights repeat itself in the Council. It is our duty to work for cooperation and respectful dialogue to prevail, and politicization, selectivity and double standards disappear once and for all.”

As mentioned in a previous post, U.S. Vice President MIke Pence at the U.N. Security Council Meeting  on September 20 complained about Cuba and certain other countries being members of the U.N. Human Rights Council in light of what he said was its oppression and repression, a charge rejected by Cuba at that same meeting and by Cuba’s Foreign Minister at the General Assembly on September 22.   https://dwkcommentaries.com/2017/09/24/u-s-cuba-relations-discussed-in-u-n-proceedings/

Conclusion

These developments at the Council do not involve the potential imposition of sanctions of any kind on Cuba. Instead they are, I believe, verbal sparring on an international stage. (If I am missing some potential sanctions, please advise in a comment to this post.)

I have not seen any Cuban response to the Council’s reprimand. In any event, Cuba as soon as possible should end any harassment of Cubalex Legal Information Center and any of its officers and employees.

Any reforms of the Human Rights Council would seem to lie with the General Assembly, which I assume would only do so after significant study, analysis and voting, and I am unaware of any such study being proposed or conducted.

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[1] U.N. Human Rts. Council, Report of the Secretary-General: Cooperation with the United Nations, Its representatives and mechanisms in the field of human rights (# A/HRC/36/31, Sept. 15, 2017)(Advance unedited version); U.N. Human Rts Council, Oral presentation by the Assistant Secretary-General for Human Rights of the Report of the Secretary-General on cooperation with the UN, its representatives and mechanisms in the field of human rights (No. 36/31 Sept. 20, 2017); U.N. Human Rts Council, Report highlights rising reprisals against human rights defenders cooperating with the UN (Sept. 20, 2017); Reuters, Record Number of States Punishing Human Rights Activism: U.N., N.Y. Times (Sept. 20, 2017).

[2] See earlier post to dwkcommentaries: Cuban Police Search and Seize Property of Independent Legal Center (Oct. 7, 2016) (CUBALEX is the Center in question); More Cuban Arrests of Dissidents ( Dec. 2, 2016) (arrest of Alfredo Ferrer Tamayo, who is ‎affiliated with Cubalex).

[3] U.S. Mission Geneva, Statement by the United States of America (Sept. 19, 2017).

[4] Cuba rejects manipulation of human rights issue in Geneva, Granma (Sept. 21, 2017).

U.S.-Cuba Relations Discussed in U.N. Proceedings

During the week of September 18-22, U.S.-Cuba relations was one of many topics of discussion at the U.N. General Assembly and the U.N. Security Council. Here are those details.

U.S. Statements

 As discussed in a prior post, on September 19, U.S. President Donald Trump delivered a lengthy speech to the General Assembly that, in part, criticized Cuba. He said,

  • The U.S. “ has stood against the corrupt and destabilizing regime in Cuba and embraced the enduring dream of the Cuban people to live in freedom.  My administration recently announced that we will not lift sanctions on the Cuban government until it makes fundamental reforms.”
  • “From the Soviet Union to Cuba to Venezuela, wherever true socialism or communism has been adopted, it has delivered anguish and devastation and failure.  Those who preach the tenets of these discredited ideologies only contribute to the continued suffering of the people who live under these cruel systems.”

The next day (September 20) U.S. Vice President Mike Pence appeared at the Security Council to support reform of the U.N. peacekeeping function and to vote in favor of a resolution to that effect that was adopted that day.[1] Here is a photograph of the Vice President and U.S. Ambassador Nikki Haley at the Council.

He also said the following about Cuba:[2]

  • To “keep the peace most effectively, this body must have the credibility to pursue peace by advancing the cause of human rights. It’s no coincidence that some of the most dangerous regimes in the world are also some of the worst abusers of human rights.”
  • “That was the purpose under which the U.N. Human Rights Council was formed. But the truth is, the Human Rights Council doesn’t deserve its name. As we look at the membership of the council today, we see nations that betray these timeless principles upon which this institution was founded. Today, the United Nations Human Rights Council actually attracts and welcomes many of the worst human rights violators in the world. A clear majority of the Human Rights Council’s members fail to meet even the most basic human rights standards. [One of them is Cuba,] an oppressive regime that has repressed its people and jailed political opponents for more than half a century.” (Emphasis added.)

The Vice President added that the Security Council “must reform the Human Rights Council’s membership and its operation. . . .   [The U.S. calls] on the Security Council and this entire body to immediately embrace reforms of the membership and practices of the Human Rights Council and end the [latter’s] blatant bias against our cherished ally Israel.”[3]

Cuba’s Response

The Cuban response to both of these U.S. statements was provided in a speech at the General Assembly on September 22 by Cuba’s Foreign Minister, Bruno Rodriguez Parrilla, as shown in the following photograph. [4]

The following are his lengthy comments about these speeches and other aspects of the U.S.-Cuba relationship:

  • The U.N.’s “2030 Agenda for Sustainable Development lacks the means for its implementation, due to the egoism and lack of political will of the [U.S.] and other industrialized countries.”
  • “What is the miraculous recipe that President Donald Trump recommends to us in the absence of the financial flows of the Marshall Plan? Who will contribute the resources for that? How can this be reconciled with the ‘America First’ idea advanced by Presidents Reagan and Trump?”
  • “President Trump ignores and distorts history and portrays a chimera as a goal to be pursued. The production and consumption patterns . . . of neoliberal capitalism are unsustainable and irrational and will inexorably lead to the destruction of the environment and the end of the human species.”
  • “Can anyone forget about the consequences of colonialism, slavery, neocolonialism and imperialism?”
  • “Could the several decades of bloody military dictatorships in Latin America be referred to as an example of a successful capitalism? Does anyone know of any recipe of neoliberal capitalism that has been better applied than those which destroyed the Latin American economies in the 1980s?”
  • “It is both indispensable and urgent for the [U.N.] to work in order to establish a new participatory, democratic, equitable and inclusive international economic order, as well as a new financial architecture that take into account the needs and peculiarities of developing countries and the asymmetries that exist in world trade and finances as a result of centuries of exploitation and plundering”
  • “Industrialized countries have the moral duty, the historical responsibility as well as sufficient financial and technological means for that.”
  • “Not even the rich will enjoy the announced prosperity if climate change is not stopped. Cuba regrets the decision taken by the government of the [U.S.], which has been historically the principal greenhouse-gas emitting government in the planet, to withdraw its country from the Paris Agreement.”
  • “The U.S. government has come here to tell us that, in addition to prosperity, the other two ‘beautiful pillars’ of international order are sovereignty and security.”
  • “We all share the common responsibility to preserve the existence of human beings in the face of a nuclear threat. An important contribution to the achievement of that goal was the historical adoption of the Treaty on the Prohibition of Nuclear Weapons . . . , which proscribe the use and the threat of use of those weapons that have the capacity to annihilate the human species. Obviously, the [U.S.] strongly opposed this treaty. It announced that it will invest 700 billion dollars in military expenditures and is developing an extremely aggressive nuclear and military doctrine based on the threat to use and the use of force.”
  • “NATO member States [act] against international peace and security and International Law by promoting military interventions and non-conventional wars against sovereign States.”
  • “The illegal imposition of unilateral coercive measures and the use of financial, legal, cultural and communicational instruments to destabilize governments as well as the denial of peoples’ right to self-determination have become customary.”
  • “The covert use of . . . [Information and Communications Technology] to attack other States increases, while several developed countries strongly oppose the adoption of international treaties that would regulate cooperation in order to achieve a safe cyberspace.”
  • “The U.S. President manipulates the concepts of sovereignty and security to his exclusive benefit and to the detriment of all others, including his allies. The attempt to resort to military threats and force to stop the irreversible world trend to multi-polarization and polycentrism will seriously jeopardize international peace and security, which should be defended and preserved through international mobilization.”
  • “The principles of sovereign equality, respect for the territorial integrity and non-interference in the internal affairs of States should be observed. The UN Charter and International Law admit no re-interpretation.”
  • “The [U.N.] reform should pursue the principal goal of responding to the pressing needs of peoples and the great disadvantaged majorities. Multilateralism should be protected and reinforced in the face of the imperialist interests of domination and hegemony.The democratization of the Security Council, both in terms of its composition and its working methods, is a most urgent task. The strengthening of the General Assembly and the recovery of the functions that have been usurped from it are indispensable.”
  • “The ‘patriotism’ invoked in the U.S. statement is a perversion of humanism, the love and loyalty to the homeland and of the enrichment and defense of national and universal culture. It embodies an exceptionalist and supremacist vision of ignorant intolerance in the face of diverse political, economic, social and cultural models.”
  • “In developed countries, the loss of legitimacy of political systems and parties worsens and electoral abstentionism is on the rise. Corruption, whether legal or illegal, has turned into metastasis. So is the extreme case of the so-called ‘special interests’ or corporate payments in exchange for benefits in the country that spends the highest amount of money in electoral campaigns and where, paradoxically, a candidate with the lowest number of popular votes can be elected or entitled to govern with a negligible support by voters.”
  • There has been an increasing and unheard-of use of science and technology to exercise hegemony, mutilate national cultures and manipulate human behavior, as is the case of the so-called ‘big data’ or psychometry, used for political and advertising purposes. Seven consortia keep a strict control of whatever is read, watched or heard in the planet. Technologies are being monopolized. The governance of digital networks is dictatorial and discriminatory and, despite appearances, the digital divide between rich and poor countries is increasing.”
  • “The opportunities and rights of youths, migrants and workers are curtailed and their human rights are openly and systematically violated”
  • On September 20, “U.S. Vice-President, Michael Pence, ridiculously ignoring the functions of the Security Council and attempting to establish new prerogatives, said that [the Security Council] should modify the composition and methods of the U.N. Human Rights Council, which ‘doesn’t deserve its name’ because ‘a clear majority of the Human Rights Council members fail to meet even the most basic human rights standards.’ I suppose he is not including, in this case, his own country, which will in fact deserve to be included because of its pattern of systematic violations of human rights, namely the use of torture, arbitrary detentions and imprisonment–as occurs at the Guantanamo Naval Base–, the assassination of African-Americans by law enforcement agents, the killing of innocent civilians perpetrated by its troops and the xenophobia and repression against immigrants –including minors– as well as its scarce adherence to international instruments.”
  • “On June 16, . . . President Trump announced the new Cuba policy of his administration, which is a setback in U.S.-Cuba bilateral relations and undermines the bases established two years ago to advance towards a new type of relation between our countries, characterized by respect and equality. The U.S. Government has decided to tighten the economic, commercial and financial blockade by imposing new obstacles to the already limited possibilities its business community had to trade with and invest in Cuba as well as additional restrictions on U.S. citizens willing to travel to our country.”
  • “Those decisions ignore the support from broad sectors in the U.S., including the majority of Cuban émigrés, to the lifting of the blockade and the normalization of relations. They only serve the interests of a group of Cuban origin, based in South Florida, which is an ever more isolated and minoritarian group that insists in harming Cuba and its people for having decided to defend, at all costs, the right to be free, independent and sovereign. Today we reiterate our condemnation of the measures aimed at tightening the blockade and reaffirm that any strategy intended to destroy the Revolution will fail.”
  • “Likewise, we reject the manipulation of the human rights issue against Cuba, which has a lot to be proud of and has no need to receive lessons from the [U.S.] or anyone.”
  • We “express our strongest condemnation of the disrespectful, offensive and interventionist statement against Cuba and the Cuban government, made [by President Trump]. We remind him that the [U.S.], where flagrant human rights violations are committed, which raise deep concern among the international community, has no moral authority to judge my country. We reaffirm that Cuba will never accept any preconditions or impositions, nor will it ever renounce any of its principles.”
  • “Regarding the alleged incidents that. . . have affected U.S. diplomatic officials in Havana we categorically affirm that the Cuban government rigorously and seriously abides by its obligations under the Vienna Convention on Diplomatic Relations in relation to the protection and the integrity of all diplomats without any exception, including those from the [U.S.] Cuba has never perpetrated nor will it ever perpetrate actions of this sort. Cuba has never allowed nor will it ever allow its territory to be used by third parties with that purpose. The Cuban authorities, based on the preliminary results of the priority investigation that is being carried out with a high technical component, following instructions from the top level of our government, has taken into account the data contributed by the U.S. authorities and so far has found no evidence whatsoever that could confirm the causes or the origin of the health disorders referred to by U.S. diplomats and their relatives. The investigation to clarify this issue continues, and in order to be able to arrive to a conclusion, it will be crucial to count on the cooperation of the U.S. authorities. It would be unfortunate if a matter of this nature is politicized.”
  • “As was expressed by the Cuban President Raul Castro Ruz, Cuba is willing to continue negotiating all pending bilateral issues with the United States, on the basis of equality and absolute respect for the sovereignty and independence of our country; and maintaining a respectful dialogue and cooperation in areas of common interest with the U.S. government.”
  • “Cuba and the [U.S.] can cooperate and coexist, respecting their differences and promoting everything that benefits both countries and peoples, but no one should expect Cuba to make concessions that affect its sovereignty and independence.”
  • “The Cuban people will not cease in their legitimate claim for the lifting and total elimination of the economic, commercial and financial blockade and will continue to denounce the strengthening of that policy. In November Cuba will once again present to the [U.N.] General Assembly [a resolution for ending the U.S. blockade of Cuba]. “

Conclusion

The above comments by President Trump and Vice President Pence, while not surprising from their administration, are a most unfortunate retreat from the efforts by President Obama and President Castro to normalize the two countries’ relations and abandon U.S. hostility towards the island.

The U.N. Human Rights Council was created by the U.N. General Assembly on March 15, 2006, by resolution 60/251. Therefore, it seems unlikely that the U.N. Security Council has any authority to make changes in the structure of the Human Rights Council, and Vice President Pence’s suggestion that this be done seems inappropriate unless it was intended as a call for the Security Council to recommend that this be done.

The lengthy comments by Cuba’s Foreign Minister Rodriguez are also not surprising with perhaps one exception. With respect to the medical problems of some U.S. diplomats stationed in Cuba, he said, “The investigation to clarify this issue continues, and in order to be able to arrive to a conclusion, it will be crucial to count on the cooperation of the U.S. authorities. It would be unfortunate if a matter of this nature is politicized.” All reports to date have indicated that the two countries are cooperating on investigating these issues, and the Foreign Minister’s comment seems to suggest that future U.S. cooperation was questionable. Is this so? If so, that would be most unfortunate and inadvisable for many reasons. The statement about  the possible U.S. politicization of this issue is also surprising unless it was an indirect reference to the letter to the Trump Administration by five Republican U.S. Senators led by Senator Marco Rubio (FL) that called for several U.S. actions against Cuba over this problem, including closure of the U.S. Embassy in Havana, as was discussed in an earlier post.

This coming November there will be a General Assembly debate and vote on Resolution A/72/50 42: Necessity of ending the economic, commercial and financial embargo imposed by the United States of America against Cuba.[5] It is widely assumed that this will be adopted by an overwhelming margin; the similar resolution last year passed, 191-0 (with two abstentions by the U.S. and Israel), as discussed in a prior post.

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[1] U.N. Security Council, Resolution 2378 (2017).

[2] White House, Remarks by the Vice President to the UN Security Council (Sept. 20, 2017); Assoc. Press, Pence Applauds UN Resolution on Peacemaking Reform, N.Y. Times (Sept. 20, 2017); Reuters, Pence Tells U.N. That America First Does Not Mean America Alone, N.Y. Times (Sept. 20, 2017).

[3] The same day (September 20) the U.N. Human Rights Council in Geneva, Switzerland issued a reprimand of Cuba while U.S. and Cuba representatives traded comments on Cuban human rights. This will be discussed in a subsequent post.

[4] Rodriguez, Cuba will never accept any preconditions or impositions (+ Video), Granma (Sept. 22, 2017); Reuters, Cuba Urges U.S. Not to Politicise Allegations of Harmed Diplomats, N.Y. Times (Sept. 22, 2017); Assoc. Press, Cuban Official: Still No Clue on US Diplomat Health Issue, N.Y. [InformationTimes (Sept. 22, 2017).

[5] U.N., Report of the Secretary-General, Necessity of ending the economic, commercial and financial embargo imposed by the United States of America against Cuba, No. A/72/94  (July 26, 2017)

President Trump Condemns Cuba at the United Nations

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

Trump’s Speech

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

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

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

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

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

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

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

Reactions to the Speech[2]

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

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

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

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

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

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

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

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

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

Conclusion

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Bleak Economic Prospects for Cuba

 Although Cuba has reported a 1.1% increase of Gross Domestic Product (GDP) for the first six months of 2017, the prospects for the rest of the year are bleak.[1] Here are the problems:

  • Possible deepening of Venezuelan crisis and further reduction of its oil exports to Cuba.
  • Possible increased cost of oil from Russia, Angola, Algeria and other suppliers in the Caribbean.
  • Possible reduction of American travel to the island.
  • During the first half of this year Cuba paid $ 2.306 billion on its external debt and still has to catch up on current payments to foreign suppliers.
  • Decreased Cuban nickel production and drops in international prices for this commodity.
  • Reduced sugar production.
  • Elusive foreign investment on the island, and complicated, lengthy Cuban process for approval of same.
  • Recent Cuban government measures to control and stifle the country’s private sector.

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[1] Economists: The picture could complicate Cuba even further this second semester, Diario de Cuba (Aug. 19, 2017).

Why is the Cuban Government Trying To Slow Down the Private Sector? 

                                                                                                              Yesterday’s post described the Cuban Government’s suspension of the issuance of new permits for certain self-employment categories and closing down some paladares (private restaurants).

Why is this happening and what is its impact on Cubans?

Nora Gámez Torres of the Miami Herald reports that certain experts say the suspension is the government’s fear of the emergence of a truly successful entrepreneurial class on the island as a future political opponent of the government. As Ted Henken, a U.S. sociologist and expert on Cuba’s private sector, put it this way: “hardliners in the Cuban government are afraid of the private sector, not only because it competes with state monopolies but because economic autonomy ‘can lead to more political freedom and independence, and create a powerful lobby with a different agenda than those in power currently.’”[1]

This move by the Cuban government is seen as against its economic interest as the private sector generates more than $2.5 billion and up to 18% of the economy’s revenues while the implosion of Cuba’s ally, Venezuela, has a major negative impact on Cuba’s economy.

Meanwhile Cubans planning to open new businesses are upset.  Here are some of their reactions.[2]

  • Sara in anticipation of renting a house in Vedado said, “I have spent months and money invested in arranging the house to rent it to foreign tourists, I already had contacts and I was planning to apply for my license in September.”
  • Sergio, a taxi driver who was planning to move to a home buying and selling office, said he lost more than 1,000 CUCs between chairs and other items he bought to set up an office. The government’s suspension of new licenses “demonstrates that no one can make more than four pesos.”
  • Brian, who already had bought equipment to open an appliance repair shop in Havana, has seen his aspirations frustrated, as he had not yet submitted his license application. “Right now I do not know what to do because I owe money to several people for the purchase of equipment.”
  • The owner of a cafeteria in Havana said that in just two months she planned to open a restaurant in the same place. “Now what do I do with all the cutlery, glasses and even an electric coffee maker I bought? I have to sell them or keep them until they reopen the licensing, but no one knows when that will be. The government wants us to be starving all our lives.”
  • Marta, a bookkeeper who looks for accountants to manage her payments at the bank, said that these closures “affects her a lot. As new entrepreneurs do not emerge, it makes it more difficult for me to get new clients. I have been put into China by these bastards since I only had a few months in this activity.”
  • Lázaro, “They do not want a middle class to emerge and they say they take these measures because there are many raw materials and equipment of illicit origin, and where do these illicit products come from? That comes from the lack of control and disaster of state companies,” he said. “They really screwed us up.”

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[1] Torres, Fear is driving Raúl Castro to punish Cuba’s new entrepreneurial class, experts say, Miami Herald (Aug. 2, 2017).

[2] Fernandez, ‘There is no one here to raise their heads,’ they complain affected by the brake on private work, Diario de Cuba (Aug. 2, 2017).

U.S. Secretary of State Tillerson Criticizes Aspects of U.S.-Cuba Normalization          

U.S. Secretary of State Rex Tillerson on June 13 criticized at least some aspects of U.S. normalization of relations with Cuba. He did so during a Senate Foreign Relations Committee hearing over the State Department’s proposed budget for Fiscal Year 2018 (October 1, 2017—September 30, 2018) that is 30% less than the current budget, including a total elimination of funding for so-called democracy promotion programs through the U.S. Agency for International Development (USAID). [1]

The Committee Chair, Bob Corker (Rep., TN), said that he knew President Trump would announce certain changes to Cuba policy this Friday in Miami and asked Mr. Tillerson to explain these upcoming changes. The Secretary responded as follows:

  • “The general approach is to allow as much of this continued commercial and engagement activity to go on as possible because we do see the sunny side…we see the benefits of that to the Cuban people. But on the other hand, we think we have achieved very little in terms of changing the behavior in the regime in Cuba, its treatment of people, and it has little incentive today to change that. In fact, our concern is they may be one of the biggest beneficiaries of all of this, which just again promotes the continuance of that regime. As we’re developing these business relationships and as we’re enjoying the benefits of the economic and development side, are we inadvertently or directly providing financial support to the regime? Our view is we are.”

Senator Corker said he understood that American businesses are eager to operate in Cuba, but cited Cuba’s continuing shortcomings in free expression and other civil liberties. The Senator added, “I do hope we end up with a policy that, over time, will cause the Cuban people themselves to be able to reach their aspirations. It’s a country that has incredible potential.”

Tillerson also said the Obama policy of engagement had “financially benefited the island’s government in violation of U.S. law” and that Cuba “must begin to address human rights challenges” if it wants the U.S. to continue such normalization. Tillerson acknowledged that normalization has led to an increase in U.S. visitors and U.S. business ties. However, Tillerson added: “We think we have achieved very little in terms of changing the behavior of the regime in Cuba …. and it has little incentive today to change that.”

Tillerson agreed that moves toward more normal relations with the United States have helped some Cubans lift themselves out of poverty and provided opportunities for U.S. companies. But, he observed, there is a “dark side” to relations with Cuba, noting that the government in Havana continues to jail political opponents and harass dissidents. “We are supportive of the continued economic development, as long as it is done in full compliance with our existing statutes to not provide financial support to the regime,” Tillerson said. “That’s the focus of our current policy review.”

The State Department’s proposed budget’s elimination of so called “democracy promotion” programs for Cuba and other countries through the U.S. Agency for International Development (USAID) drew the attention of Senator Robert Menendez (Dem., NJ), a Cuban-American and fierce critic of U.S.-Cuba normalization. He said, ““I am appalled that you have completely zeroed out Democracy Assistance for countries including Cuba, Venezuela, and Nicaragua. As brave citizens continue to risk their lives advocating for the basic freedoms we enjoy here, this budget sends a message that the United States is no longer on their side, and abandoning the pursuit of justice. It effectively withdraws American leadership around the world, pushing the door open for Russia and China to increase their scope of influence.”

As a result, Menendez asked Tillerson, “Does this administration believe that support of democracy and human rights is a reflection of American leadership and values?” After Tillerson said “Yes,” Menendez asked, “How can you say that then when the budget completely zeros out assistance for democracy assistance?” Tillerson then tried to avoid the question by saying that other parts of the budget could be used for the task.”

More generally at the hearing Committee members, both Democrats and Republicans, expressed great skepticism over the proposed budget’s 30% reduction. Senator Corker said he and his staff had quit trying to analyze the details of the proposed budget because such an effort was “a total waste of time” as the proposed budget “is not going to be the budget that we’re going to deal with. It’s just not.” Another member, Senator Lindsay Graham (Rep., SC) became almost “derisive” as he contrasted global needs with the proposed budget that, he said, was putting the lives of U.S. diplomats at risk.

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[1] Rumors of Upcoming Trump Administration Rollback of U.S. Normalization of Relations with Cuba, dwkcommenetaries.com (May 25, 2017): Reuters, Tillerson Signals Tough Trump Administration Stance on Cuba, N.Y. Times (June 13, 2017); Harris, Will Cuts Hurt Diplomacy? Tillerson Tries to Ease Senate’s Worries, N.Y. Times (June13, 2017); Schwartz, Trump Plans Rollback of Obama Cuba Policy, W.S.J. (June13, 2017); Press Release: Corker Credits Secretary Tillerson for Unprecedented Outreach (June 13, 2017); Press Release: Menendez Pushes Tillerson on Cuts to State Department Human Rights (June 13, 2017); U.S. State Dep’t, FY 2018 Budget Testimony (June 13, 2017).