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Special Note Regarding Cuba:

This page contains articles published by the governments of the United States and Cuba which are reproduced without alteration. Inclusion of these articles does not imply endorsement of the views being expressed. Rather, the articles are reproduced to demonstrate the unfortunate rift that exists between the United States and Cuba. I leave the interpretation of these articles and the views being expressed, to you, the reader.


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Background Notes For Cuba

U.S. Department of State Background Notes: Cuba, April 1998

Released by the Bureau of Inter-American Affairs.

OFFICIAL NAME: Republic of Cuba

PROFILE

Geography

Area: 110,860 sq. km. (44,200 sq. mi.); about the size of Pennsylvania.
Cities: Capital--Havana (pop. 2 million). Other major cities--Santiago de Cuba, Camaguey, Santa Clara, Holguin, Guantanamo, Matanzas, Cienfuegos, Pinar del Rio.
Terrain: Flat or gently rolling plains, hills, mountains up to 2,000 meters (6,000 ft.) in the southeast.
Climate: Tropical, moderated by trade winds; dry season (November-April); rainy season (May-October).

People

Nationality: Noun and adjective--Cuban(s).
Population: 11 million; 70% urban, 30% rural.
Avg. annual growth rate: 0.41%.
Ethnic groups: Spanish-African mixture.
Language: Spanish.
Education: Years compulsory-6. Attendance--92% (ages 6-16). Literacy--95%.
Health: Infant mortality rate--7.2/1,000. Life expectancy--78 yrs. for women, 73 yrs. for men.
Work force (4.5 million): Government and services--30%. Industry--22%. Agriculture--20%. Commerce--11%. Construction--11%. Transportation and communications--6%.

Government

Type: Communist state; current government assumed power January 1, 1959.
Independence: May 20, 1902.
Constitution: February 24, 1976.
Branches: Executive--president, council of ministers. Legislative--National Assembly of People's Government. Judicial--People's Supreme Court.
Political party: Cuban Communist Party (PCC).
Suffrage: All citizens age 16 and older, except those who have applied for permanent emigration. National Assembly elections were held in 1998.
Administrative subdivisions: 14 provinces, including the city of Havana, and one special municipality (Isle of Youth).

Economy

GDP (1997 est.): Purchasing power parity $16.9 billion.
Real annual growth rate (1997): 2.5%.
Per capita income: $1,540.
Natural resources: Nickel, cobalt, iron ore, copper, manganese, salt, timber.
Agriculture: Products--sugar, citrus and tropical fruits, tobacco, coffee, rice, beans, meat, and vegetables.
Industry: Types--sugar and food processing, oil refining, cement, electric power, light consumer and industrial products.
Trade: Exports--$1.9 billion (FOB, 1997 est.): Sugar and its by-products, nickel, seafood, citrus, tobacco products, rum. Major markets--Russia 25%, Canada 15%, Netherlands 11%. Imports--$3.3 billion (CIF, 1997 est.): petroleum, food, machinery, chemicals. Major suppliers--Spain 14%, Russia 12%, Mexico 9%.
Official exchange rate: 1 Cuban peso=U.S.$1 (official rate). 23 Cuban pesos=U.S.$1 (internal exchange rate).

PEOPLE

Cuba is a multiracial society with a population of mainly Spanish and African origins. The largest organized religion is the Roman Catholic Church. Santeria, a blend of native African religions and Roman Catholicism, is the most widely practiced religion in Cuba. Officially, Cuba has been an atheist state for most of the Castro era. However, a constitutional amendment adopted on July 12, 1992 changed the nature of the Cuban state from atheist to secular, enabling religious believers to belong to the Cuban Communist Party (PCC).

HISTORY

Spanish settlers established sugar cane and tobacco as Cuba's primary products. As the native Indian population died out, African slaves were imported to work the plantations. Slavery was abolished in 1886.

Cuba was the last major Spanish colony to gain independence, following a 50-year struggle begun in 1850. The final push for independence began in 1895, when Jose Marti, Cuba's national hero, announced the "Grito de Baire" ("Call to arms from Baire"). In 1898, after the USS Maine sunk in Havana Harbor on February 15 due to an explosion of undetermined origin, the United States entered the conflict. In December of that year Spain relinquished control of Cuba to the United States with the Treaty of Paris. On May 20, 1902, the United States granted Cuba its independence, but retained the right to intervene to preserve Cuban independence and stability under the Platt Amendment. In 1934, the amendment was repealed and the United States and Cuba reaffirmed the 1903 agreement which leased the Guantanamo Bay naval base to the United States. The treaty remains in force and can only be terminated by mutual agreement or abandonment by the United States.

Until 1959, Cuba was often ruled by military figures, who either obtained or remained in power by force. Fulgencio Batista, an army sergeant who established himself as Cuba's dominant leader for more than 25 years, fled on January 1, 1959, as Castro's "26th of July Movement" gained control. Castro had established the movement in Mexico, where he was exiled after the failed July 26, 1953, attack on the Moncada army barracks at Santiago de Cuba. Within months of taking power, Castro moved to consolidate his power by imprisoning or executing opponents. Hundreds of thousands of Cubans fled the island.

Castro declared Cuba a socialist state on April 16, 1961. For the next 30 years, Castro pursued close relations with the Soviet Union until the advent of perestroika and the subsequent demise of the U.S.S.R. During that time Cuba received substantial economic and military assistance from the U.S.S.R.--generally estimated at $5.6 billion annually--which kept its economy afloat and enabled it to maintain an enormous military establishment. In 1962, Cuban-Soviet ties led to a direct confrontation between the United States and the Soviet Union over the installation of nuclear-equipped missiles in Cuba, resolved only when the U.S.S.R. agreed to withdraw the missiles and other offensive weapons. Soviet subsidies ended in 1991 with the end of the Soviet Union. Former Soviet military personnel in Cuba--numbering around 15,000 in 1990--were withdrawn by 1993.

Russia still maintains a signal intelligence-gathering facility at Lourdes and has provided funding to preserve the still uncompleted thermonuclear plant at Juragua.

GOVERNMENT

Cuba is a totalitarian state controlled by President Fidel Castro, who is Chief of State, Head of Government, First Secretary of the Communist Party (PCC), and commander in chief of the armed forces. Castro exercises control over all aspects of Cuban life through the Communist Party and its affiliated mass organizations, the government bureaucracy, and the state security apparatus. The Ministry of Interior is the principal organ of state security and control. In addition to the routine law enforcement functions of regulating migration, controlling the Border Guard and the regular police forces, the Ministry's Department of State Security investigates and actively suppresses organized opposition and dissent.

From January 1959 until December 1976, Castro ruled by decree. The 1976 constitution, extensively revised in 1992, enshrines the PCC as "the highest leading force of the society and state." In addition to Fidel Castro and his brother Raul Castro, the center of party power is the 24-member Politburo. There are 149 members in the Central Committee.

Executive and administrative power is vested in the Council of State and the subordinate Council of Ministers, over which Fidel Castro presides, supported by six vice presidents. Legislative authority rests with the National Assembly of People's Power, which meets annually for about five days, and is state-controlled. When not in session, the Assembly is represented by the Council of State. Fidel Castro is president of the Council of State, and his brother, Raul Castro, is first vice president, which places him first in the line of succession. Raul Castro is also the Minister of the Revolutionary Armed Forces.

The Communist Party is constitutionally recognized as Cuba's only legal political party. The party's Politburo and Central Committee together include most of the country's military and civilian leaders. The party monopolizes all government positions, including judicial offices. Though not a formal requirement, party membership is a de facto prerequisite for high-level official positions and professional advancement in most areas, although non-party members are sometimes allowed to serve in the National Assembly.

In 1992, the National Assembly amended the 1976 constitution, abolishing references to the former Soviet bloc, outlawing discrimination for religious beliefs, permitting foreign investment, giving Fidel Castro new emergency powers, and allowing direct elections to the National Assembly of candidates approved by "mass organizations" controlled by the Communist Party.

Although the constitution grants limited rights of assembly and association, these rights are subject to the requirement that they may not be "exercised against … the existence and objectives of the socialist State." The government denies citizens the freedom of association. The Penal Code specifically outlaws "illegal or unrecognized groups." Cubans do not have the right to change their government, to freedom of expression, or freedom to travel to and from Cuba without restriction. The government and party control all electronic and print media. Since 1992, the Cuban Government has eased the harsher aspects of its repression of religious freedom. In preparation for the visit of Pope John Paul II in January 1998, the government further relaxed its restrictions on religion, especially toward the Roman Catholic Church.

Although the constitution theoretically provides for independent courts, it explicitly subordinates them to the National Assembly and to the Council of State. The People's Supreme Court is the highest judicial body. Due process is routinely denied to Cuban citizens, especially in cases involving political offenses. The constitution states that all legally recognized civil liberties can be denied to anyone who opposes the "decision of the Cuban people to build socialism."

The Cuban Government's human rights record is abysmal. It systematically violates fundamental civil and political rights of its citizens. The government uses incessant harassment in the form of detention, threat of long-term imprisonment, exile, physical injury, and search and seizure of private property to intimidate pro-democracy and human rights activists. There are hundreds of political prisoners. Since 1994, when it invited the UN High Commissioner for Human Rights to visit, the Cuban Government has refused permission for international human rights monitors, including the UN Special Rapporteur for Human Rights, to visit Cuba.

National Security

Under Castro, Cuba became a highly militarized society. From 1975 until the late 1980s, massive Soviet military assistance enabled Cuba to upgrade its military capabilities and project power abroad. The tonnage of Soviet military deliveries to Cuba throughout most of the 1980s exceeded deliveries in any year since the military build-up during the 1962 missile crisis. In 1990, Cuba's air force, with about 150 Soviet-supplied fighters, including advanced MiG-23 Floggers and MiG-29 Fulcrums, was probably the best equipped in Latin America. In 1994, Cuba's armed forces were estimated to have 235,000 active duty personnel.

Cuban military power has been sharply reduced by the loss of Soviet subsidies. Lack of fuel has resulted in reduced training and military exercises. Lack of spare parts and new material has resulted in the mothballing of planes, tanks, and other military equipment. Today, the Revolutionary Armed Forces number about 60,000 regular troops. The country's two paramilitary organizations, the Territorial Militia Troops and the Youth Labor Army, have a reduced training capability. Cuba also adopted a "war of the people" strategy that highlights the defensive nature of its capabilities. The government has, however, maintained a large state security apparatus, under the Ministry of Interior, to repress dissent within Cuba.

Principal Government Officials

President, Council of State and Council of Ministers, First Secretary of the Communist Party, and Commander in Chief--Fidel Castro
First Vice President, Council of State and Council of Ministers, Second Secretary of the Communist Party, General of the Army and Minister of the Revolutionary Armed Forces (FAR)--Raul Castro
Minister of Foreign Relations--Roberto Robaina
Ambassador to the United Nations--Bruno Rodriguez

ECONOMY

Under the slogan "Socialism or Death," the Cuban Government continues to proclaim Cuba a socialist or communist nation with an economy organized under Marxist-Leninist precepts. Most means of production are owned and run by the government. About 75% of the labor force is employed directly by the state.

Responsibility for running the economy and for economic policy rests with the Council of State, although the government has devolved some authority to ministries and enterprises in recent years.

Minimal public services are provided by the state, either free of charge or for nominal fees. Access to education generally is adequate, but urban housing and medical facilities have deteriorated, as has transportation.

In 1997, the Cuban Government created the Cuban Central Bank to play a role in monetary policy similar to that of a central bank in a market economy. The National Bank of Cuba continued as a commercial bank, and the Cuban Government is creating additional commercial banks. Some foreign banks have begun limited operations in Cuba.

The major sectors of the Cuban economy are tourism, nickel mining, and agriculture, especially sugar and tobacco. Sugar, long the mainstay of the Cuban economy, was surpassed by tourism in the late 1990s as the main source of foreign exchange. Remittances from abroad, estimated at $500 - 800 million annually, are a major source of income in Cuba, and help sustain many families. An estimated 40% of the population have access to dollars. The Cuban Government stopped producing its annual statistical survey on the Cuban economy in 1990.

The Cuban Government defaulted on most of its international debt in 1986, and remains outside of international financial institutions such as the World Bank. To finance imports, the government relies heavily on short-term loans. Because of its poor credit rating, an $11 billion hard currency debt, and the risks associated with Cuban investment, interest rates have reportedly been as high as 22%.

The Cuban economy suffered a 35% decline in gross domestic product between 1989 and 1993 because of the loss of Soviet subsidies. In October 1990, Castro announced that Cuba had entered a "special period in time of peace" and that the economy would function as if in time of war until the crisis had passed. Most goods are now rationed, and many previously imported from the Soviet Union simply have disappeared.

Economic growth resumed in the mid-1990s after the Cuban Government launched a concerted program to attract foreign tourism and investment. The Cuban Government estimated growth in 1997 at 2.5%. Estimated per capita income in 1997 was $1,540. Living conditions in 1998 are well below the 1990 level.

To deal with the severe shortages brought on by the end of Soviet subsidies and the failure of socialist economic policies, the Cuban Government in the mid-1990s permitted Cubans to offer certain services privately under strict government regulation and scrutiny. It appears that employment in this sector peaked in 1996 at around 206,000 and fell in 1997 to about 170,000. In 1997, the Cuban Government introduced heavy taxes on this sector which forced many out of business. In 1994, the government introduced agricultural markets at which state and private farmers could sell at market prices what they have produced above the quota required by the state. This has helped to alleviate grave food shortages and nutritional problems.

A popular example of this kind of venture has been small restaurants in private homes, known as "paladares." These seek to serve international visitors, but are subject to rules limiting employment of anyone outside of the owner's immediate family and forbidding sales of lobster or shrimp. Such rules are frequently violated, but restaurants and other entities are often closed for minor infractions.

While continuing to limit private investment by Cuban citizens, the Cuban Government is actively courting international investment. It has attracted investment from Canada, Italy, the United Kingdom, Mexico, Spain, France, and other countries. Foreign entities cannot own 100% of the equity of an investment, and must include a Cuban Government entity as a majority partner in the venture. Estimates of the amount of international investment paid in vary widely, but it is thought to be between $1.1 billion to $1.4 billion since 1990.

Cuban officials said early in 1998, there were a total of 332 joint ventures. Many of these are loans or contracts for management, supplies or services, normally not considered equity investment in Western economies. Nevertheless, Cuban officials said in early 1998, that they intend to be more selective in the investment they permit in Cuba. Investors are constrained by the U.S. Cuban Liberty and Democratic Solidarity Act (also known as the Libertad or Helms-Burton Act) which provides for sanctions for those who "traffic" in property expropriated from U.S. citizens. As of March 1998, 15 executives of three foreign companies have been excluded from entry into the U.S. Over a dozen companies had pulled out of Cuba or altered their plans to invest there due to the threat of action under the Libertad Act.

Tourism, a top Cuban official said, is the "heart of the economy." The Cuban Government is stressing its beaches and has actively encouraged sex tourism to attract Europeans, Canadians, and Latin Americans. Cuban officials expect 1.4 million tourists in 1998, an increase of 20% over 1997. The Cuban Government forecasts 1998 gross revenue from tourism as $1.8 billion.

In 1993, the Cuban Government made it legal for its people to possess and use the U.S. dollar. Since then, the dollar has become the major currency in use. Many businesses, including many run by the Cuban Government, and individuals do not accept Cuban pesos.

Those with access to dollars can purchase imported goods at government-run dollar stores that are not accessible to average Cubans with pesos who must shop in understocked peso stores. Thus, those jobs that can earn dollar tips from foreign tourists and business travelers have become highly desirable. It is not uncommon to meet skilled doctors, teachers, engineers, and scientists working in restaurants or as taxi drivers.

Sugar remains an important part of the Cuban economy, with large amounts of land, labor, and other resources dedicated to its production. Sugar production in 1989 was over 8 million tons, but fell to about 3.5 million tons in the 1994-1995 sugar harvest, one of the worst on record. With increased fertilizers and management attention, the 1995-1996 harvest improved, according to official Cuban estimates, to about 4.4 million tons. Cuba was unable to sustain this level of output, however, and the 1996-1997 harvest declined. The threat of U.S. actions against those who finance the sugar harvest--where there are extensive numbers of confiscated properties--had a major impact on the 1996-97 harvest. Prospects for future harvests are considered poor unless the Cuban Government undertakes substantial reform of the sugar industry, something it has not been willing to do.

Cuba is not a party to the Nuclear Non-Proliferation Treaty (NPT). It signed the Treaty of Tlatelolco, a Latin American regional non-proliferation regime, but has not ratified the treaty and brought it into force. Cuba has entered into an agreement with the IAEA to apply safeguards to individual nuclear facilities, including the partially completed Juragua nuclear power plant. The reactors that would be installed are of the VVER-400 type, an advanced model of the Soviet pressurized water reactor. There are serious concerns about the safety of the plant. However, since the plant does not appear to be economically viable, no international investors have been willing to provide funds for completion of the facility.

Cuban failure to launch serious economic reforms has led to the development of a large black market and growing corruption.

FOREIGN RELATIONS

Cuba's once-ambitious foreign policy has been scaled back and redirected as a result of economic hardship and the end of the Cold War.

Cuba aims to find new sources of trade, aid, and foreign investment, and to promote opposition to U.S. policy, especially the trade embargo and the 1996 Libertad Act. Cuba has relations with over 160 countries and has civilian assistance workers--principally medical--in more than 20 nations.

Cuba has largely abandoned the support for guerrilla movements that typified its involvement in regional politics in Latin America and Africa. In 1959, Cuba aided armed expeditions against Panama, the Dominican Republic, and Haiti. During the 1960s and 1970s , Guatemala, Colombia, Venezuela, Peru, and Bolivia faced Cuban-backed guerrilla insurgencies. Although these movements failed to take control of governments, they inflicted heavy loss of life and economic damage in each of the countries. Cuba's support for Latin guerrilla movements, its Marxist-Leninist government, and its alignment with the U.S.S.R., contributed to its isolation in the hemisphere. In January 1962, the Organization of American States (OAS) suspended Cuba. Cuba now has diplomatic or commercial relations with most countries in Latin American and the Caribbean.

Throughout the 1970s and 1980s, Cuba expanded its military presence abroad--deployments reached 50,000 troops in Angola, 24,000 in Ethiopia, 1,500 in Nicaragua, and hundreds more elsewhere. In Angola, Cuban troops, supported logistically by the U.S.S.R., backed the Popular Movement for the Liberation of Angola (MPLA) in its effort to take power after Portugal granted Angola its independence. Cuban forces played a key role in Ethiopia's war against Somalia, and remained there in substantial numbers as a garrison force for a decade. Cubans served in a non-combat advisory role in Mozambique and the Congo. Cuba also used the Congo as a logistical support center for Cuba's Angola mission.

In the late 1980s, Cuba began to pull back militarily. Cuba unilaterally removed its forces from Ethiopia; met the timetable of the 1988 Angola-Namibia accords by completing the withdrawal of its forces from Angola before July 1991; and ended military assistance to Nicaragua following the Sandinistas' 1990 electoral defeat. In January 1992, following the peace agreement in El Salvador, Castro stated that Cuban support for insurgents was a thing of the past.

U.S.-CUBAN RELATIONS

The United States recognized the new Cuban Government on January 7, 1959. However, bilateral relations deteriorated rapidly as the regime expropriated U.S. properties and moved toward adoption of a one-party Communist system. In response, the United States began imposing economic sanctions in 1960, culminating with a comprehensive economic embargo in 1962. The United States broke diplomatic relations on January 3, 1961. Tensions between the two governments peaked during the abortive "Bay of Pigs" invasion by anti-Castro Cubans supported by the United States on April 7, 1961, and the October 1962 missile crisis.

In 1975, U.S.-Cuban normalization talks ended when Cuba launched a large-scale intervention in Angola. However, the U.S. and Cuba established interests sections in their respective capitals on September 1, 1977. Currently, the U.S. interests section in Havana and the Cuban interests section in Washington, DC, are under the protection of the Swiss embassy.

The deployment of Cuban troops to Ethiopia and the discovery of Soviet troops in Cuba in 1979 led President Carter to establish the Caribbean Joint Task Force Headquarters in Florida and warned that Cuban troops would not be allowed to move against neighboring countries.

In April 1980, 10,000 Cubans stormed the Peruvian embassy in Havana seeking political asylum. Eventually, the Cuban Government allowed 125,000 Cubans to illegally take to boats to go to the United States from the port of Mariel, or the "Mariel boatlift." Quiet efforts to explore the prospects for improving relations were initiated by the United States in 1981-82, but ceased as Cuba continued to intervene in the Latin region. In 1983, the United States and regional allies liberated Grenada, forcing the withdrawal of Cuban forces stationed there.

In 1984, the United States and Cuba negotiated an agreement to resume normal immigration, interrupted in the wake of the 1980 Mariel boatlift, and to return to Cuba persons who had arrived during the boatlift who were "excludable" under U.S. law. Cuba suspended this agreement in May 1985 following the U.S. initiation of Radio Marti broadcasts to Cuba, but it was reinstated in November 1987. In March 1990, TV Marti transmissions began to Cuba. Since its inception, Cuba has jammed TV Marti and blocked Radio Marti on the AM band. Radio Marti on short wave has a large audience.

The principal U.S. concerns regarding Cuba are its undemocratic system and lack of respect for human rights, and the potential danger of future mass exoduses. The principal objective of U.S. policy toward Cuba is to promote a peaceful transition to democracy and respect for human rights. U.S. policy seeks to do this by maintaining pressure on the Cuban Government; supporting the Cuban people; forging a multilateral effort to press for democratic change; and keeping migration in safe, legal, and orderly channels. President Bush set free and fair elections under international supervision, respect for human rights, and an end to efforts to subvert its neighbors as the conditions for improving relations with Cuba. In October 1992, the Cuban Democracy Act (CDA) was enacted, codifying portions of the embargo and providing for measures in support of the Cuban people and for improved telecommunications with Cuba and sale of medicines. Other provisions ban most U.S. subsidiary trade with Cuba and exclude any vessel which stops in Cuba from entering U.S. ports for 180 days. It provides for humanitarian donations by U.S. non-governmental organizations to Cuba. Since its enactment, more than $2 billion worth of humanitarian assistance for Cuba has been licensed, including $275 million in medical items. Since 1992, 50 licenses have been issued for sale of medicines or travel to Cuba by representatives of pharmaceutical companies. The U.S. Federal Communications Commission (FCC) approved five U.S. carriers to provide direct telecommunications service between the U.S. and Cuba.

In 1994, regular immigration talks were initiated between the United States and Cuba, prompted by another mass exodus of Cubans that summer. The two governments agreed in September 1994 to direct Cuban migration into safe, legal, and orderly channels. The U.S. committed itself to admit a minimum of 20,000 Cuban immigrants each year, and Cuba pledged to discourage irregular and unsafe departures. Under a May 1995 agreement, the United States began returning Cubans interdicted at sea or entering the U.S. Naval Base at Guantanamo Bay, and Cuba agreed to reintegrate the returnees into Cuban society, with no action to be taken against the returned migrants as a consequence of their attempt to immigrate illegally. The U.S. Interests Section verifies Cuban compliance with that provision through regular visits to the homes of returnees throughout Cuba. Interdicted Cubans who can demonstrate a well-founded fear of persecution in Cuba are resettled in third countries, rather than returned to Cuba.

While the United States engaged in efforts to promote democratic change, the development of an independent civil society, and support for the Cuban people, in February 1996 the Cuban Government moved aggressively against 140 groups of pro-democracy and human rights activists who were seeking to hold a meeting under the auspices of their umbrella organization "Concilio Cubano." The Cuban Government never responded to Concilio's request to legally hold a meeting, and in mid-February began an island-wide crackdown against dissidents--arresting, interrogating, and harassing them. On February 24, 1996, the day the meeting was to be held, the Cuban Government ordered the shootdown of two unarmed civilian aircraft in international airspace. Three U.S. citizens and one legal permanent resident, all members of the Miami-based exile organization Brothers to the Rescue, were killed when their planes were shot down by Cuban MiGs.

On February 26, 1996, President Clinton ordered five punitive measures in response to the shootdown. He suspended direct charter flights to Cuba; sought to obtain international condemnation of Cuba's actions; committed to reach agreement with Congress on the pending Helms-Burton legislation; announced that some form of justice was due to the families of the victims and ordered that funds be transferred from the Cuban Government's blocked accounts in the United States to the families; and set restrictions on the movement of Cuban diplomats in the U.S.

On March 12, 1996, President Clinton signed into law the Cuban Liberty and Democratic Solidarity Act (also known as the Libertad or Helms-Burton Act). The Libertad Act has four main parts:

In accordance with the provisions of the Act, the President suspended the Title III lawsuit provisions because he determined suspension to be necessary and in the national interest and that it will expedite a transition to democracy in Cuba.

On March 20, 1998, President Clinton announced measures intended to respond to the historic visit of Pope John Paul II to Cuba in January and to support the Cuban people. The measures include: resuming direct humanitarian charter cargo and passenger flights to Cuba; reinstituting legal remittances by Cuban Americans and Cuban families living in the United States to their close relatives in Cuba at the level of $300 per quarter (such remittances were suspended in August 1994 in response to the migration crisis); simplifying and expediting the issuance of licenses for the sale of medicines and medical supplies to Cuba. The President also said he would work with Congress to develop bipartisan legislation on the transfer of food and expansion of humanitarian assistance to the Cuban people.

Support for the Cuban people has been a key element of U.S. policy beginning with the CDA and strengthened by President Clinton's initiatives in October 1995 to encourage groups in the U.S. to develop contacts on the island. The 1995 initiatives included licensing U.S. non-governmental organizations (NGOs) to assist Cuban NGOs; allowing sales and donations of communications equipment to Cuban NGOs; establishing news bureaus; increasing academic, cultural, and educational exchanges; and allowing under a general Treasury license once-a-year visits to relatives in Cuba in cases of humanitarian emergencies.

The measures announced March 20 enhance this policy of support for the Cuban people. They support the religious opening, expand humanitarian assistance, and assist development of independent civil society. The measures are in response to the Cuban people, not to anything the Cuban Government has done. Hundreds of political prisoners remain in Cuban jails, including the four leaders of the Dissident Working Group. The U.S. Government has repeatedly made clear, however, that it will consider responding reciprocally if the Cuban Government initiates fundamental democratic change.

Interests Sections

Havana: U.S. Interests Section
Calzada between L and M, Vedado
(tel. (53) (7) 33-3551 through 33-3559).

Principal Officer--Michael Kozak
Deputy Principal Officer--John Boardman
Consul--Ronald Kramer
Public Affairs Adviser--Douglas Barnes

Washington, DC: Cuban Interests Section
2630 16th Street, NW, Washington, DC 20009 (tel. 202-797-8518).

Principal Officer--Fernando de Remirez
Deputy Principal Officer--Felix Wilson

TRAVEL AND BUSINESS INFORMATION

The U.S. Department of State's Consular Information Program provides Travel Warnings and Consular Information Sheets. Travel Warnings are issued when the State Department recommends that Americans avoid travel to a certain country. Consular Information Sheets exist for all countries and include information on immigration practices, currency regulations, health conditions, areas of instability, crime and security, political disturbances, and the addresses of the U.S. posts in the country.

Public Announcements are issued as a means to disseminate information quickly about terrorist threats and other relatively short-term conditions overseas which pose significant risks to the security of American travelers. Free copies of this information are available by calling the Bureau of Consular Affairs at 202-647-5225 or via the fax-on-demand system: 202-647-3000. Travel Warnings and Consular Information Sheets also are available on the Consular Affairs Internet home page: http://travel.state.gov and the Consular Affairs Bulletin Board (CABB). To access CABB, dial the modem number: (301-946-4400 (it will accommodate up to 33,600 bps), set terminal communications program to N-8-1 (no parity, 8 bits, 1 stop bit); and terminal emulation to VT100. The login is travel and the password is info (Note: Lower case is required). The CABB also carries international security information from the Overseas Security Advisory Council and Department's Bureau of Diplomatic Security. Consular Affairs Trips for Travelers publication series, which contain information on obtaining passports and planning a safe trip abroad, can be purchased from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 371954, Pittsburgh, PA 15250-7954; telephone: 202-512-1800; fax 202-512-2250.

Emergency information concerning Americans traveling abroad may be obtained from the Office of Overseas Citizens Services at (202) 647-5225. For after-hours emergencies, Sundays and holidays, call 202-647-4000.

Passport Services information can be obtained by calling the 24-hour, 7-day a week automated system ($.35 per minute) or live operators 8 a.m. to 8 p.m. (EST) Monday-Friday ($1.05 per minute). The number is 1-900-225-5674 (TDD: 1-900-225-7778). Major credit card users (for a flat rate of $4.95) may call 1-888-362-8668 (TDD: 1-888-498-3648).

Travelers can check the latest health information with the U.S. Centers for Disease Control and Prevention in Atlanta, Georgia. A hotline at (404) 332-4559 gives the most recent health advisories, immunization recommendations or requirements, and advice on food and drinking water safety for regions and countries. A booklet entitled Health Information for International Travel (HHS publication number CDC-95-8280) is available from the U.S. Government Printing Office, Washington, DC 20402, tel. (202) 512-1800.

Information on travel conditions, visa requirements, currency and customs regulations, legal holidays, and other items of interest to travelers also may be obtained before your departure from a country's embassy and/or consulates in the U.S. (for this country, see "Principal Government Officials" listing in this publication).

U.S. citizens who are long-term visitors or traveling in dangerous areas are encouraged to register at the U.S. embassy upon arrival in a country (see "Principal U.S. Embassy Officials" listing in this publication). Registering with the embassy may help you to replace lost identity documents or help family members contact you in case of an emergency.

Further Electronic Information:

Department of State Foreign Affairs Network. Available on the Internet, DOSFAN provides timely, global access to official U.S. foreign policy information. Updated daily, DOSFAN includes Background Notes; Dispatch, the official magazine of U.S. foreign policy; daily press briefings; Country Commercial Guides; directories of key officers of foreign service posts; etc. DOSFAN's World Wide Web site is at http://www.state.gov.

U.S. Foreign Affairs on CD-ROM (USFAC). Published on an annual basis by the U.S. Department of State, USFAC archives information on the Department of State Foreign Affairs Network, and includes an array of official foreign policy information from 1990 to the present. Contact the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 371954, Pittsburgh, PA 15250-7954. To order, call (202) 512-1800 or fax (202) 512-2250.

National Trade Data Bank (NTDB). Operated by the U.S. Department of Commerce, the NTDB contains a wealth of trade-related information, including Country Commercial Guides. It is available on the Internet (www.stat-usa.gov) and on CD-ROM. Call the NTDB Help-Line at (202) 482-1986 for more information.

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Cuba History

Before Columbus' voyage to Cuba, the island was inhabited by Indians.  They survived mainly on agriculture and fishing.

The three tribes on the island were the Tainos, the Ciboneys, and the Guanajatabeyes.

It was the Taino Indians, a part of the race of Arawaks, who were most common on Cuba.  They had come there during the 1400s from South America.

In Cuba, they lived in a peaceful society.  They farmed such crops as corn, beans, squash, and yams.  The Indians slept in hammocks, which the Spanish would share with the rest of the world after discovering them.

They had some religious beliefs.  The Tainos would hold small gatherings and burn tobacco.  They believed in life after death and a supernatural being.

The Indians wore no clothes, but they did know how to weave.  They hunted for small game, including many birds and ducks.  They fished with harpoons and nets, and kept the fish in small ponds until they were ready to eat them.

In 1492, Christopher Columbus and his ships arrived at the island.  Their mission was to conquer the island, convert the natives, and make money for Spain.

Upon first seeing the Europeans, the Cuban Indians fled.  Eventually Columbus' guides coaxed the Cubans into meeting the Spanish.

Columbus had to return, but left some men on the island.  He would return with others to colonize Cuba and claim it for Spain.

During the first half of the 16th century, the Cuban natives were basically wiped out.  They would be replaced by Spanish settlers in the coming years.

Many were murdered by Spanish troops, while others were enslaved in mines to search for gold.  The conditions there were bad enough to kill most of them; indeed, by the mid 1500s, most of the native population had died.

Some Indians, led by Hatuey, fought against the Spanish.  Their rebellions were ruthlessly put down, and Hatuey was captured and burned alive.

As a result, the Spanish began importing slaves.  This started as early as 1512, and continued until 1865.  Tens of thousands of slaves were brought from Africa and other places to replace the dead natives.

Though little gold was found in Cuba, much was found in the rest of Latin America.  Cuba served as a stop-over point to these areas.

In 1607, Havana became Cuba's capital.  A government was formed, and municipalities were established.  The island became quite prosperous from its position as a Spanish hub and its sugar production.

However, the island was plagued by piracy.  Pirates would capture ships headed to Cuba or raid cities.  No city was safe, and this caused many problems.

The Spanish Government wanted to profit from Cuba as much as possible.  In the end of the 17th century, piracy became less common and things developed more easily.

The Spanish Crown completely owned the tobacco industry, which prompted a rebellion from tobacco growers.  Spain put this down, and set up a company to control all Cuban trade. 

In 1762, the English took Havana.  They allowed trade with the rest of the world.  Slave imports and prosperity for Cuba both increased greatly.

The English traded Cuba for Florida to the Spanish.  The Spanish were then pressured to allow free trade, and the country remained wealthy.

Sugar became more important.  It beat tobacco as the most important crop, and the Revolution in Haiti brought an end to competition with that nation.

Havana grew with Cuba's prosperity.  It became a huge city for the times, and in 1728, gained a university.  A postal service was created in 1764 and a newspaper in 1763.  In 1790, the city gained lamps in the streets. 

The major difference between Cuba and other Spanish colonies during this time was that Cuba's economic production largely remained on the island and was put towards developing it, rather than being returned to Spain.

During the 19th century, Cuban prosperity rose.  Fierce opposition to the colonialist Spanish, who always wanted a piece of the  peoples' profits, ultimately resulted in Cuba's freedom.

In 1818, the Spanish officially allowed free trade with Cuba.  A year earlier, the Spanish and British had agreed to end slavery.

However, during the 1820s, half a million slaves were brought to Cuba.  The slave traders easily bribed the local officials.  It wasn't until 1888 that the Cubans abolished slavery.

Cuba was one of the last countries in the New World to still be a Spanish colony.  Many Cubans were beginning to feel separate from Spain, and some pressed for Cuban independence.

Spain also mistreated the populace.  The Cubans were denied the rights that Spanish people had, and the Spanish Government insisted on maintaining full power.

On October 10, 1868, Carlos Manuel de Céspedes began the 10 Years' War.  It went poorly for the Spanish, but they tricked the Cubans into accepting peace.

Spain returned to its old ways in Cuba.  An economic crisis brought on by the war allowed American companies to purchase huge amounts of land there.

The next War of Independence came in 1895.  Important leaders like José Martí and Antonio Maceo were killed, but the Cuban rebels fought on.  The war went terribly for Spain, and no end was in sight.

In 1898, the United States launched a war on Spain.  It quickly won, and took Cuba as one of the spoils of its victory.  Throughout the century the United States had from time to time often tried to buy Cuba, and now it finally had it.

The 20th century brought great change to Cuba.  During the first part of the century, American influence was extremely high.  It ended with the Revolution of 1959.

During the first few years of the 1900s, an American military government ruled Cuba.  It was headed by Leonard Wood, and would remain in power until 1902, when a Cuban Government replaced it.

For many years, the Cuban parties often fought and cheated their way into office.  Once there, they would commonly enrich themselves, robbing millions of dollars from the treasury.

American companies also prospered during this period.  US companies owned 75% of the sugar industry and 60% of Cuba's land.  The wealthy Cuban elite became even richer, but the poor continued to live in poverty.

In 1928, President Machado gave himself another term without reelection.  Opposition to him was successful by 1933, when a revolution forced him to flee.

Shortly after, the Sergeants' Revolt caused Fulgencio Batista to rise to power.  For many years, he would run the country, usually through puppet presidents.

Batista lost the 1944 election and stepped down.  He lived in Miami until American business and Mafia interests convinced him to return.

A coup in 1952 brought back Batista.  He ruled as dictator until the triumph of the Revolution in 1959.  From then on, US power over Cuba was no more.

The new government of Fidel Castro didn't get along well with the US.  Eventually, they turned to the Soviet Union for aid and Mr. Castro announced Cuba was a socialist country.  It has remained such ever since, making tremendous social gains but being hurt greatly by the destruction of its trading partners.

Copyright (c) 1998 by Team 18355. 
All rights reserved.  The Cuban Experience
(Reproduced With Permission)




Chronology of Cuban Affairs, 1958-1998

Released by the Bureau of Inter-American Affairs, January 12, 1998

Mar 14, 1958

The U.S. government suspends arms shipments to the Batista government.

 

 

Jan 1, 1959

Revolutionary forces seize control of Havana.

 

 

Jan 7, 1959

The United States recognizes the new Cuban government.

 

 

Jan 1959

Trials and executions of former Batista regime officials begin.

 

 

May 17, 1959

Agrarian Reform Law expropriates farmlands over 1000 acres and forbids foreign land ownership.

 

 

May 8, 1960

Diplomatic relations between Cuba and the Soviet Union resume.

 

 

Jun 28, 1960

Castro confiscates American-owned oil refineries without compensation.

 

 

Aug 6, 1960

Nationalization of U.S. and foreign-owned property in Cuba begins.

 

 

Aug 7, 1960

The Cuban Catholic Church condemns rise of communism in Cuba. Castro bans religious TV and radio broadcasts.

 

 

Oct 19, 1960

U.S. imposes economic embargo on Cuba, except food and medicine.

 

 

Oct 24, 1960

Remaining American-owned property in Cuba nationalized.

 

 

Jan 3, 1961

President Eisenhower breaks diplomatic relations with Cuba.

 

 

Apr 17, 1961

U.S.-supported Cuban exiles invade Cuba at the Bay of Pigs.

 

 

Dec 2, 1961

Castro declares, "I am a Marxist-Leninist, and will be one until the last day of my life."

 

 

Jan 22, 1962

Cuban membership in the Organization of American States (OAS) is suspended.

 

 

Feb 7, 1962

The U.S. government bans all Cuban imports and re-export of U.S. products to Cuba from other countries. The U.S. will also cut off aid to countries that furnish assistance to Cuba.

 

 

Oct 2, 1962

U.S. ports are closed to nations allowing their ships to carry arms to Cuba, ships that have docked in a socialist country are prohibited from docking in the United States during that voyage, and the transport of U.S. goods is banned on ships owned by companies that trade with Cuba.

 

 

Oct 14, 1962

The Cuban Missile Crisis begins when U.S. reconnaissance aircraft photograph Soviet construction of intermediate-range missile sites in Cuba.

 

 

Oct 26, 1962

In a secret communication, Soviet Premier Nikita Khrushchev agrees not to break the U.S. blockade and offers to withdraw Soviet missiles from Cuba if the United States pledges not to invade Cuba and if President Kennedy would order Jupiter missiles removed from Turkey.

 

 

Oct 27, 1962

Cuba downs a U-2 plane. In a letter to Khrushchev, President Kennedy proposes immediate Soviet withdrawal of the missiles in exchange for an end to the blockade. Privately, the USG informs the Soviet Union it will withdraw U.S. missiles from Turkey once the crisis ends.

 

 

Oct 28, 1962

Radio Moscow announces that the Soviet Union has accepted the proposed solution.

 

 

Nov 21, 1962

President Kennedy terminates the quarantine measures against Cuba.

 

 

Feb 8, 1963

The Kennedy administration prohibits travel to Cuba and makes financial and commercial transactions with Cuba illegal for U.S. citizens.

 

 

Jul 8, 1963

All Cuban-owned assets in the United States are frozen.

 

 

Jul 1964

Members of the OAS vote to enact economic sanctions and to break diplomatic links with Cuba.

 

 

Oct 1965

Over 3000 Cubans leave in a boatlift from Camarioca to the United States.

 

 

Nov 6, 1965

Beginning of the Freedom Flights program, which allows 250,000 Cubans to come to the United States by 1971.

 

 

1966

Father Miguel Laredo is tried for allegedly assisting in the attempted escape of a Cubana Airlines engineer. In addition, priests and other clergymen are required to enter into military service.

 

 

Nov 2, 1966

The Cuban Adjustment Act allows 123,000 Cubans to apply for permanent residence in the U.S.

 

 

Jan 2, 1968

Castro announces petroleum rationing.

 

 

Mar 13, 1968

The Great Revolutionary Offensive is launched, culminating in the nationalization of the remaining private sector and mobilization of manpower for agricultural production.

 

 

Jan 2, 1969

Castro announces sugar rationing.

 

 

Jul 1972

Cuba joins the Council for Mutual Economic Assistance, the communist bloc trade association.

 

 

Oct 1973

Cuba sends 500 tank drivers to aid Syria during the Yom Kippur War.

 

 

Nov 1974

Assistant Secretary of State William Rogers and Assistant to the Secretary of State Lawrence Eagleburger conduct secret normalization talks with Cuban officials in Washington and New York. The talks end over Cuban involvement in Angola.

 

 

Jul 29, 1975

OAS members vote to lift collective sanctions against Cuba. The U.S. government welcomes the action and announces its intention to open serious discussions with Cuba on normalization.

 

 

Oct 1975

Cuba begins deployment of 35,000 combat troops to support the Marxist regime in Angola.

 

 

Dec 20, 1975

President Ford declares that Cuban involvement in Angola and support of the Puerto Rican independence movement ends efforts to improve relations.

 

 

Dec 22, 1975

Castro declares continued support for revolutionary movements in Angola and Puerto Rico.

 

 

Feb 24, 1976

Under a new constitution, Castro becomes head of the government as of President of the Council of Ministers, commander of the armed forces, and First Secretary of the communist party. The PCC is institutionalized within the formal governmental structure. Article 54 prohibits the practice of faith or the establishment of religious organizations in opposition to revolutionary principles.

 

 

Mar 18, 1977

U.S. government lifts prohibition on travel to Cuba and allows U.S. citizens to spend $100 on Cuban goods during their visits.

 

 

Apr 1977

200 Cuban trainers arrive in Ethiopia. Cuba supports the Katangan rebellion, causing the government of Zaire to break-off diplomatic relations. Cuba maintains troops in the Congo, Mozambique, Guinea, Guinea-Bissau, and Equatorial Guinea.

 

 

Apr 27, 1977

The United States and Cuba sign agreements on fishing rights and maritime boundaries.

 

 

Sep 1977

The United States and Cuba open interests sections in each others capitals.

 

 

Jan 1978

Cuba begins deployment of 20,000 troops to Ethiopia.

 

 

Jul 31, 1978

Castro calls for the removal of U.S. bases from Guantanamo Bay. Bombings of the Cuban United Nations Mission, the Cuban Interests Section, and the Soviet Mission by anti-Castro exile groups follow throughout the fall. In December, the U.S. government announces that the full force of the law will be used against those responsible for these terrorist actions.

 

 

Jul 1979

Cuban-supported Sandinistas overthrow the government of Anastasio Somoza in Nicaragua.

 

 

Aug 30, 1979

Senator Frank Church, the chairman of the Foreign Relations Committee, announces discovery of a Soviet combat brigade of 3000 troops in Cuba.

 

 

Oct 1, 1979

President Carter reaffirms that troops from Cuba would not be permitted to move against neighboring countries and establishes a Caribbean Joint Task Force Headquarters in Florida.

 

 

Apr 1980

10,000 Cubans storm the Peruvian embassy in Havana seeking political asylum. After the easing of immigration restrictions, a flotilla of refugees (eventually 125,000) begins an exodus from the port of Mariel in Cuba for the United States.

 

 

May 14, 1980

President Carter demands that the Cuban government impose an orderly departure and orders a blockade to prevent private boats from traveling to Cuba to pick up refugees. The Cuban government closes Mariel harbor in September.

 

 

Sep 11, 1980

An attache of the Cuban Mission to the United Nations is assassinated by anti-Castro terrorists. Secretary of State Muskie issues a statement terming the murder "reprehensible."

 

 

Dec 22, 1980

The first of several meetings between U.S. and Cuban officials to discuss the repatriation of the Marielitos occurs.

 

 

Sep 23, 1981

The U.S. government announces plans to establish Radio Marti to broadcast to Cuba.

 

 

Mar 1982

U.S. envoy Vernon Walters meets with Castro in Havana to discuss outstanding issues.

 

 

Apr 9, 1982

Charter air links between Miami and Havana are halted by the U.S. government.

 

 

Apr 19, 1982

USG effectively bans travel to Cuba by prohibiting monetary expenditures in Cuba by U.S. citizens.

 

 

Oct 25, 1983

The U.S. intervention of Grenada begins following a leftist coup and the discovery that Cubans are being used to build an airstrip that could have been used for military aircraft.

 

 

Jan 11, 1984

A presidential commission on Central America headed by Henry Kissinger reports that the Soviet and Cuban intervention in the region has created a major security problem for the United States.

 

 

July 31, 1984

U.S. and Cuban officials hold talks on migration issues.

 

 

Dec 14, 1984

The United States and Cuba conclude a migration pact under which Cuba agrees to accept the return of Marielitos.

 

 

Jan 21, 1985

U.S. bishops visits Cuba. They meet with Castro and request the release of 250 political prisoners.

 

 

May 20, 1985

Radio Marti begins broadcasts to Cuba. The Cuban government immediately jams the signal. Castro later suspends the 1984 U.S.-Cuban immigration agreement.

 

 

1986

The Cuban government begins to grant long-term visas to foreign priests and nuns.

 

 

Nov 19, 1987

The United States and Cuba conclude a new immigration pact which reinstates the 1984 agreement.

 

 

Mar 1988

The UN Human Rights Commission sends a team to report on the human rights situation in Cuba.

 

 

Aug 23, 1988

President Reagan signs a trade act that ends licensing requirements for importing recordings, printed material, and other media from Cuba.

 

 

Nov 1988

At the intercession of the U.S. Catholic Conference, Cuba agrees to release 44 political prisoners.

 

 

Nov 20, 1989

The Treasury Department limits travel related expenses for U.S. citizens to Cuba at $100 per day.

 

 

Mar 23, 1990

The first test of TV Marti is launched. It is jammed by the Cuban government.

 

 

May 20, 1991

In a meeting with Cuban dissidents, President Bush calls for Castro to release political prisoners and hold elections.

 

 

Sep 11, 1991

Soviet President Mikhail Gorbachev states that he will withdraw all Soviet troops from Cuba.

 

 

1991

The Fourth Communist Party Congress resolves to allow members of religious groups to join the party.

 

 

Dec 1991

Termination of Soviet economic subsidies worth approximately $6 billion annually.

 

 

Jul 1992

Changes to the Cuban constitution include measures to attract foreign investment without compromising Castro's hold on power. The official designation of the Cuban government is changed from "atheist" to "secular." Religious discrimination is also forbidden.

 

 

Oct 15, 1992

Congress passes the Cuban Democracy Act, which prohibits foreign-based subsidiaries of U.S. companies from trading with Cuba, travel to Cuba by U.S. citizens, and family remittances to Cuba. The law allows private groups to deliver food and medicine to Cuba.

 

 

Oct 1, 1993

The United States and Cuba reach an agreement at the working level on the repatriation of 1500 criminal Cuban migrants. High level GOC approval was never forthcoming.

 

 

Aug 1994

Following Castro's declaration of an open migration policy, a new boat lift begins when 30,000 refugees set sail from Cuba as economic conditions continue to deteriorate. A "picket line" established by the U.S. Coast Guard prevents additional seaborne migrations.

 

 

Sep 1, 1994

Talks on migration open in New York City between Cuban and U.S. officials.

 

 

Sep 9, 1994

The U.S. and Cuba issue a joint communique agreeing to take measures to ensure that migration between the two countries is safe, legal, and orderly. The U.S. agrees that total legal migration to the U.S. will be a minimum of 20,000 per year.

 

 

May 2, 1995

The U.S. and Cuba issue a joint statement reaffirming their commitment to promote safe, legal, and orderly migration. Under this accord, Cubans interdicted at sea or who enter the Guantanamo Naval Base illegally are returned to Cuba provided that they do not have any protection concerns. Returned Cubans are monitored by personnel from the United States Interests Section.

 

 

Oct 5, 1995

President Clinton announces measures to expand people-to-people contacts between the U.S. and Cuba, to allow U.S. NGO's to fund projects in Cuba, and to provide AID funding to U.S. NGO's for Cuba-related projects.

 

 

Nov 1995

The Concilio Cubano is formed to organize the first human rights conference in which all human rights groups on the island were expected to participate.

 

 

Jan 1996

The GOC denies Concilio legal recognition. Concilio requests permission for the conference to take place February 24, 1996.

 

 

Feb 1996

The GOC begins an island-wide crackdown on Concilio Cubano. During the next 3 months over 200 Concilio leaders and supporters would be arrested, interrogated, and harassed.

 

 

Feb 24, 1996

Cuban MIG's shoot down in international airspace two civilian aircraft belonging to the Miami-based group Brothers to the Rescue. Three Americans and one Cuban Legal Resident are killed.

 

 

Mar 12, 1996

President Clinton signs the Cuban Liberty and Democratic Solidarity (Libertad Act) which enacts penalties on foreign companies doing business in Cuba, permits U.S. citizens to sue foreign investors who make use of American-owned property seized by the Cuban government, and denies entry into the U.S. to such foreign investors.

 

 

Jul 16, 1996

President Clinton suspends enforcement of Title III provisions of the Libertad Act permitting suits to be filed in U.S. courts against foreign investors who are profiting from U.S.-claimed confiscated property. Title III itself is allowed to go into effect on August 1.

 

 

Nov 19, 1996

Pope John Paul II receives Castro at the Vatican. The Pope accepts an invitation to visit Cuba.

 

 

Aug 16, 1996

President Clinton appoints Ambassador Stuart Eizenstat as the Special Representative for the Promotion of Democracy in Cuba.

 

 

Dec 2, 1996

The European Union adopts the Common Position on Cuba, conditioning developmental assistance to Cuba on fundamental, democratic change.

 

 

Jan 3, 1997

President Clinton suspends the right to sue provisions of Title III, pointing to the progress made under the U.S.-led multilateral initiative to promote democratic change in Cuba.

 

 

Jan 28, 1997

The President releases a report on assistance the U.S. and rest of the international community would provide to a transition government in Cuba.

 

 

Feb 12, 1997

The Administration approves licenses for U.S. news organizations to open bureaus in Cuba. Only CNN is allowed in by the Cuban Government.

 

 

Apr 11, 1997

U.S.-EU Understanding. The EU agrees to suspend WTO case against the Libertad Act and other components of U.S. legislation. The U.S. and EU agree to work together to develop binding international disciplines to deter investment in confiscated property. U.S. agrees to seek presidential waiver authority for Title IV of the Libertad Act if such disciplines are developed and adhered to.

 

 

Jul 16, 1997

Cuban state security arrests the Dissident Working Group on charges of enemy propaganda.

 

 

Jul 16, 1997

President Clinton for the third time suspends the right to sue provisions of Title III.

 

 

Aug-Dec 1997

USG approves a license request by Archdiocese of Miami to charter a cruise ship to take pilgrims to Cuba during the Pope's visit, and licenses for other religious groups and media to use charter aircraft to go to Cuba for the Pope's visit.

[End of Document]


Cuba Government

LOGO PCC

INFORMATION OF THE DEPARTMENT OF INTERNATIONAL
RELATIONS CENTRAL COMMITTEE OF COMMUNIST PARTY OF CUBA.

The 5th congress of the Communist Party of Cuba reaffirmed the socialist direction of the revolution and the basic principles of its Martí and Marxist-Leninist ideology. It outlined the policies needed for us to continue developing in conditions of full independence and sovereignty, despite the systematic and brutal economic war introduced by the United States imperialists against the Cuban nation.

 The forum, held in the City of Havana from 8 to 10 October, approved the central committee report given by the first secretary, Commander-in-Chief Fidel Castro Ruz, on the work carried out since the previous congress and one resolution each on the political document "The Party of unity, democracy and human rights that we defend", on economic policy and on the revision of the organization's statutes.

 The congress, after a substantial renewal, elected a new central committee made up of 150 members, which ratified Comrade Fidel at the head of the organization and Army General Raúl Castro Ruz as second secretary and selected a new political bureau, formed of 24 comrades, 18 re-elected and six who newly joined the organ.

 The assembly also paid posthumous tribute to the heroic guerrilla Commander Ernesto Che Guevara and his comrades who fell in Bolivia 30 years ago and whose remains were honored by the people at the end of the congress in the José Martí Memorial in Revolution Square and accompanied to the city of Santa Clara, the setting of one of the greatest military victories of our liberation war, which was led by the unforgettable internationalist hero.

 The forum critically, exhaustively and analytically debated the main problems and situations that have marked the life of the nation and the Party's activity since the last congress and the challenges, dangers and difficulties that we have had to face and overcome after the disappearance of the socialist camp, to which was added the intensified imperialist blockade. All of this put the Cuban revolution at the most dangerous crossroads in its history.

 The gathering also noted the factors that have allowed us to resist. Among these, what stood out in first place was the heroic conduct of the people, their identification and confidence in the Party and the unity between revolutionaries as the architects of this victory.

 The congress adopted as its own the strategic orientation contained in the central committee report, whereby the bases of the revolution's historic continuity are and will be only in the preservation of socialism, its ideology, the improvement of our democracy, the strengthening of our Party and state, the inseparable link with the people and, in particular, in the growing participation and revolutionary formation of our youth.

 The assembly identified with the appraisal whereby our ability to resist and to find a stable and definitive way out of the special period will be determined by the ever more efficient contribution of everyone to the country's economy.

 The congress denounced the way that the economic war that imperialism is currently waging against Cuba is being accompanied by an ideological and political offensive aimed at trying to destroy the nation's revolutionary tradition, at confusing us, at discouraging us and dividing us with the goal of us renouncing our Martí and Marxist-Leninist ideology, which brings with it the need to offer a firm and creative reply to such proposals.

 Likewise, the congress fully identified with the evidence presented of biological warfare, which demonstrates the genocidal action that is being attempted against our people and that affects plants, animals and people. The congress adopted as its own the high appraisal and recognition expressed during the debates of the role played by our Revolutionary Armed Forces and the Ministry of the Interior in the preservation of the nation's defensive capability and our people's safety and tranquility.

 The congress ratified what was expressed in the central committee report on the foreign policy of our Party and state. This policy establishes that Cuba's legitimate aspiration is to guarantee peace and tranquility for our people and the right to defend the Cuban nation's socialist future, by understanding that this is the only possible option in order to guarantee the independence, sovereignty and social justice conquered.

 The criminal dangers that are now being attempted against this noble and unrenounceable aim were denounced and the congress reaffirmed that the Cuban revolution will live while there remains one communist, one revolutionary, one patriot to defend it.

 The congress approved the document "The Party of unity, democracy and human rights that we defend". This had previously been analyzed and supported by six-and-a-half million Cubans of over 14 years old, which became a virtual democratic plebiscite of our people.

A central idea of the approved text is that our history brought forth and brings forth the liberating principles for whose victory successive generations of Cubans have struggled, since the Cuban revolution is one sole revolution.

 Another basic lesson that our historical development offers and that the document upholds is that Yankee imperialism constitutes our people's main enemy, including since before the nation was fully formed. It has unleashed an insane economic war against Cuba.

The congress reaffirmed the political and historical substantiation of the existence in Cuba of one sole Martí and Marxist-Leninist party as a guarantee of the unity and cohesion of our people. This was ratified in the resolution on the revision of the statutes. This resolution pointed out the validity of the principles of democratic centralism as a cornerstone of the structure and working of the organization and the collective leadership.

 The changes introduced into the statutes are aimed at preserving those normative concepts of an essential character on which is based the organic life and the work of the Party. The changes are also aimed at suppressing those aspects that, due to their being complementary or of a methodological character, should form part of the rules and regulations.

 Other changes are related to modifications in the structure of the leadership organs, as well as to extending the procedure of co-opting onto the central committee, currently limited to intermediate bodies, among other decisions.

 In its resolution on the economy, the fifth congress recalled the serious upheavals caused to the nation in the years since the previous congress by the disintegration of the USSR and the disappearance of the socialist camp, our main partners until then. This resulted in the special period in which we are living.

Important transformations also happened in the working of the world economy, like the process of globalization, the large-scale action of the ever more powerful transnational companies and the boom of neoliberalism as a theory and practice that they are trying to impose on the Third World. All this represents a world economic scenario of the predominance of the capitalist system and of the growing polarization between development and underdevelopment.

In its desire to destroy the revolution, the United States government took advantage of such an occasion in order to intensify the economic blockade imposed against Cuba since more than 37 years ago and whose cost to our economy is calculated at some 60,000 million dollars.

 In that direction, the congress recalled how they first of all introduced the so-called Torricelli Act in 1992 and later the Helms-Burton Act in their determination to internationalize the blockade and virtual economic war against our country, to which is also added proven evidence of biological warfare.

 Faced with this complex, adverse and hostile scenario, the revolution's efforts were first concentrated on slowing down the tumbling economy in order to then relaunch growth, carrying out the transformations needed to adapt ourselves to the new international situations and, at the same time, guarantee the country's prospective development and the preservation of its socialist essence.

 A group of transformations was introduced to this effect, such as the reorientation of foreign trade and external economic relations, the opening-up to the investment of foreign capital, the boost to tourism, the decriminalization of the possession and use of hard currency, the co-operativization of state farms, the opening of agricultural and industrial markets and the expansion of self-employed work, among others, on the basis of popular consensus and state control and regulation. The congress underlined that the adoption of this body of measures, combined with the heroic force of the people, has allowed us to stop economic decline and to begin the recovery, the phase in which we now find ourselves and on which this congress determined new guidelines to follow. These guidelines were based on the following concepts:

- It is realistic to anticipate that in the close future, the current restrictions for the country will continue or grow in terms of sources of foreign financing and a suitable solution to the problem of foreign debt.

- This is why our own efforts are the cornerstone in the whole design and execution of our economic policy. The central objective of this policy is efficiency, since this constitutes one of the greatest potentials that the country has. The country has at its disposal an economic and social infrastructure as well as human and natural resources and resources of scientific and technological development, an infrastructure created throughout more than three decades.

As part of the concrete guidelines approved by the congress, it raised the need to increase the production and export of non-sugar-cane agriculture; the recovery of the strategic role of the sugar agroindustry, which was in decline over the last years; the diversification of exports, modifying their structure in favor of products with greater value added and with services of a high level; strengthening technological and work discipline and energy efficiency; the substitution of imports and the potentiation of domestic savings; the use of modern business management techniques and the downsizing of our branches of industry, among other measures.

The congress also proposed the best use of fiscal, monetary-financial, commercial and tariff policies with the basic aim of helping the development and stabilization of the economy, the consolidation of the revaluing of the national currency and the control of inflationary processes and the deepening of the reform of the banking and financial system.

In the area of trade, the congress determined the geographical diversification of foreign trade, the multiplication of links with the economic integration plans in the region and the promotion of foreign investment, with priority given to projects that contribute to the success of the national economic plans.

A central concept was the agreement of the congress regarding the fundamental role that planning must continue to play in the running of the economy, even when, it affirmed, "space has been opened for the operation of market mechanisms under state regulation".

It is up to the socialist state, the congress emphasized, "to correct the distortions inherent in market mechanisms in order to reduce their negative effects and, above all, to take into account that their inevitable presence presupposes challenges and dangers that it is crucial to confront economically, politically, ideologically and socially".

The congress likewise confirmed that the changes taking place in the Cuban business system will be directed at maintaining the "predominence of socialist state ownership", while admitting other new forms of ownership. The congress confirmed that the state, as the representative of the whole people, exercises social ownership over state companies and plays a regulatory role by means of different directives, laws, enactments and other dispositions. On broaching the prospects of the national economy, the forum proposed considering that the growth in gross domestic product in the coming years could be in the range of between 4 and 6 per cent a year on average, depending on the efficiency levels that we reach, the increase in exports and the performance of the flow of foreign financing.

This growth will be strongly determined by tourism and the performance of traditional exportable products (sugar, nickel, tobacco, fish and others).

 In the case of tourism, it was proposed receiving more than two million tourists and a gross income greater than 2,600 million dollars, increasing sugar production to seven million tons and that of nickel to 100,000 tons a year and increasing the national production of vegetables to 2.5 million tons, as some concrete aims.

 In the social sphere, the congress established that the guarantee and defense of the revolution's achievements -- including the high level of equity expressed in the equality of opportunity of access to services like education, health and sport and culture -- will continue being the "inescapable responsibility" of the socialist state.

These achievements, combined with the absence of any kind of discrimination due to social class, territory, race or gender constitute pillars on which rests the equality of opportunity that the socialist revolution guarantees all our people.


  
City of Havana, November 1997
Department of International Affairs
Communist Party of Cuba Central Committee

Castro Speech Data Base


Cuba Business Law

No information in file.


Commercial Guide of Cuba

No information in file.


Treaties to which Cuba is a Member

GATT General Agreement on Tarrifs and Trade, 1947

The Organization of American States Cuba is a memeber of the OAS, however by resolution of the Eigth Meeting of Consultation of Ministers of Foreign Affairs (1962) the current Government of Cuba has been excluded from participation in the OAS.

Summary of the WTO

WTOThe official site

SELA - The Latin American Economic System

Economic Commission for Latin America and the Caribbean (a commission of the United Nations)

The United Nations


Cuba Labor Law

CHAPTER XI
LABOR SYSTEM
Article 30.
Foreign investment activities must observe the labor and social security legislation in effect in Cuba, with the adjustments included in this Act.

Article 31.
1. The workers in activities corresponding to foreign investments shall be, as a rule, Cubans or foreigners permanently residing in Cuba.

2. However, the management and administrative bodies of joint ventures or totally foreign capital companies, or the parties to international economic-association contracts, may determine that certain top administrative positions or some posts of a technical nature shall be filled by persons who are not permanent residents in the country and, in those cases, determine the labor conditions to be applied and the rights and obligations of those workers. Nonpermanent residents in the country who are contracted are subject to the country's current legislation covering immigration and foreigners.

Article 32.
1. Joint ventures, the parties to international economic-association contracts and totally foreign capital companies may be authorized to create an economic stimulus fund for Cubans or permanent residents in Cuba who are working in activities corresponding to foreign investments.

2. The contributions to the economic stimulus fund shall be made out of earned profits. The amount of these contributions shall be agreed upon between the joint ventures, foreign investors and national investors who are party to international economic-association contracts, and totally foreign capital companies, on the one hand, and the Ministry of Foreign Investment and Economic Cooperation, on the other hand.

Article 33.
1. The workers in joint ventures who are Cuban or permanent residents in Cuba, with the exception of the members of the management or administration, are contracted by an employing entity proposed by the Ministry of Foreign Investment and Economic Cooperation, and authorized by the Ministry of Labor and Social Security.

The members of the management or administration of a joint venture are designated by the general shareholders' meeting and hired directly by the joint venture.

Only in exceptional cases, with the proper authorization, may a joint venture directly employ all the persons who work in that company, and always in accordance with current legal provisions in the field of hiring.

2. The persons working for the parties to international economic-association contracts are contracted by the Cuban party, in accordance with current legal provisions in the field of employment.

3. In totally foreign capital companies, the services of Cuban workers and foreign workers residing permanently in Cuba, with the exception of the members of the management and administrative body, shall be hired through a contract between the company and an employing entity proposed by the Ministry of Foreign Investment and Economic Cooperation, and authorized by the Ministry of Labor and Social Security.

The members of the management and administration of the company with totally foreign capital are designated by the company and directly hired by it.

4. Payments to Cuban workers and foreign workers residing permanently in Cuba are made in national currency which must be obtained beforehand from convertible foreign currency, except in the case described in Article 27 of this Act.

ARTICLE 34.
1. The employing entity discussed in the previous Article individually contracts and directly hires Cuban workers and permanent residents. This employing entity pays those workers their wages.

2. When a joint venture or company with totally foreign capital considers that a specific worker does not meet the requirements of the job, it can request that the employing entity replace that worker with another. Any labor dispute is settled with the employing entity, which pays the worker, at its own expense, the indemnification to which he or she is entitled, determined by the competent authorities. In pertinent cases, the joint venture or company with totally foreign capital compensates the employing entity for such payments, in accordance with the procedure established, and always in compliance with existing legislation.

Article 35.
Notwithstanding what is stipulated in the preceding articles of this Chapter, the authorization approving the foreign investment can in exceptional cases establish special labor regulations.

Article 36.
The technological advances consisting of innovations and other tangible goods which are covered by intellectual property law and which are developed within the framework of an international economic association or by Cuban workers in a foreign capital company are covered under current legislation in the field.

Article 37.
The Ministry of Labor and Social Security is empowered to issue as many complementary legal provisions as it considers necessary for the best application of what is described in this Chapter, especially in the fields of hiring and labor discipline.


Cuba Environmental Law

CHAPTER XVI
ENVIRONMENTAL PROTECTION
Article 54.
Foreign investment is conceived and stimulated in the context of the country's sustainable development, which implies that during the course of the investment, environmental conservation and the rational use of natural resources shall be carefully undertaken.

Article 55.
The Ministry of Foreign Investment and Economic Cooperation, in pertinent cases, submits the investment proposals it receives for the consideration of the Ministry of Science, Technology and the Environment, so that the latter may evaluate the investment's suitability from the environmental point of view and determine whether an environmental impact evaluation is required, as well as the suitability of granting the pertinent environmental licenses and establishing a control and inspection program in accordance with current legislation.

Article 56.
1. The Ministry of Science, Technology and the Environment institutes the measures which may be required to properly control situations that could lead to damage, dangers or risks for the environment and the rational use of natural resources.

2. The person or company responsible for the damage or harm is obliged to reestablish the previous environmental situation, repair the material damage and indemnify the injured parties.


Cuba's Banking and Finance System

CHAPTER IX
THE BANKING SYSTEM
Article 26.
1. Joint ventures, foreign investors and national investors which are party to international economic-association contracts, jointly or individually, and totally foreign capital companies shall open accounts in freely convertible currency in any bank in the National Banking System, through which they shall receive and make payments related to their operations.

2. Joint ventures and national investors who are parties to international economic-association contracts may open and operate accounts in freely convertible currency in banks located abroad, with the authorization of the National Bank of Cuba.

Article 27.
Joint ventures, parties to international economic-association contracts and totally foreign capital companies can be authorized on an exceptional basis by the Executive Committee of the Council of Ministers to effect certain charges and payments in nonconvertible national currency.

Article 28.
Joint ventures, foreign investors and national investors who are parties to international economic-association contracts, and totally foreign capital companies can arrange loans in foreign currency:

a) With a bank in the National Banking System or a financial entity approved by the National Bank of Cuba;

b) With banks or financial entities abroad, in accordance with existing legal regulations covering this matter.


Cuba Visas and Immigration

U.S. Embargo Against Cuba An overview of the Cuban Assets Contol Regulations


Cuba's Foreign Investment Law

Presentation of the
Draft of a Law
on Foreign
Investment

Ernesto Meléndez Bachs
5th Ordinary Period of Sessions
National Assembly of the People´s Power
September 4, 1995
Commander-in-Chief Fidel Castro.
Compañero Ricardo Alarcón, President of the
National Assembly of the People's Power.

Esteemed deputies and guests.

Distinguished members of the Diplomatic Corps:

By decision of the Government, it corresponds to the Ministry for Foreign Investment and Economic Cooperation to present the draft of a Law on Foreign Investment to this session of the National Assembly of the People's Power for its examination and approval. The renewal, every certain number of years, of the legal instrument regulating foreign investment is an international practice designed to adapt such instruments to changing internal and external conditions — which, in the specific case of our country, have had great transcendence in the economic field.

Decree-Law 50 of 1982 was our first revolutionary legal base for normalizing and organizing the process of foreign investments. The first foreign investment was made in tourism in 1988. This process was subsequently opened to include other branches of the economy. In 1991, economic associations in citrus fruits, mining, oil exploration, and several in the manufacturing sector were functioning with foreign capital supplied by enterprises from eight countries.

We had confirmed that certain branches of the economy could be most conveniently developed by the economic association of Cuban entities with international enterprises possessing capital, technologies, access to markets, and broad experience in the new conditions of the world economy in which Cuba has had to develop in the past few years. When the Special Period was established, the promotion of foreign investment was considered necessary, and in the Resolution on Economic Development of the 4th Congress of the Communist Party of Cuba, the stimulation of foreign investment was also included as a complement to the country's efforts to promote the growth of its economy. The Constitutional reform of 1992 made it possible to advance in this direction.

During 1993 and 1994 and the early months of this year, we have seen an increase in the influx of foreign capital and in the establishment of new joint ventures and other forms of association. By the end of last July, 212 associations had been authorized and were functioning.

The number of mixed-capital enterprises and associations that have started up operations in the last 20 months surpasses the total of all those operating in the preceding years. Not only has growth been quantitative. At present, these associations have expanded to 34 economic sectors, including agricultural activities, mining, manufacturing, construction, tourism, tranportation, communications, and other services. The sources of capital invested have become more diversified. In 1991, it came from eight countries; at present, it comes from more than 50 nations.

The experience gained and the studies we have made have enabled us to introduce new forms of association such as those providing financing for our sugar-cane, tobacco, and rice crops; initial investments in real estate such as the Lonja del Comercio, and even Cuban investments abroad in activities such as construction, shipbuilding, nickel and cobalt refining, and banking. This has made it possible, although still on a modest scale, to increase exports, boost our foreign-exchange earnings, modernize and put into operation factories and installations that had been semiparalyzed, recover plantations that had been in danger of total loss, acquire technologies to which we had not had access, and assimilate managerial abilities.

This process has been carried forward in an orderly way, with negotiations examined one by one, based on the criterion of what is beneficial for the country, without permitting the interests of sectors, territories or institutions to take precedence over those of the nation. In every phase of the process, the economic and social development of the country is present and holds first place.

We speak with complete clarity to the entrepreneurs of other countries with whom we associate. We are a socialist country that has been and is respectful of the agreements to which we have committed and will commit ourselves. They operate in a stable country, without terrorism, without drugs, without the kidnapping of executives — a sovereign nation with an honest government.

In synthesis, this is our policy and our experience with regard to foreign investments in Cuba. Thirteen years after the promulgation of Decree-Law 50, we consider that a new legal instrument covering this question is needed to provide guarantees and to clarify the procedures necessary to facilitate the development and effectiveness of this process. Following instructions received from the executive branch of the Government, a team of jurists was organized in 1994 to formulate the ideas and proposals that should characterize the new Law. For this purpose, similar legislation was studied, mainly that of China, Vietnam, and some Latin-American countries. Also studied in depth were the experiences derived from Decree-Law 50.

Several draft versions of the proposed Law circulated for months among the different state organizations, and opinions were received and discussed that made it possible to enrich the bill.

In the month of August, in close coordination with the Presidency of the National Assembly, we carried out a process of explanation, clarification, and analysis of the bill with the Commission for Juridical and Constitutional Matters and the Commission for Economic Matters and, subsequently, with the deputies for all the provinces and the Special Municipality of the Isle of Youth. The result of these exchanges enabled us to improve the draft of the Law.

The proposal that you are about to analyze contains a preamble of 5 points, 17 chapters, 58 articles, a special disposition, 3 transitory and 2 final dispositions. Permit me to point out some noteworthy aspects:

  • the case-by-case approval of foreign investments, specifically by the Council of Ministers or by the Commission designated for this, is maintained. It is a principle of the Government that the proposals for foreign investment that are approved must be for the economic and social benefit of the country;
  • the same guarantees are offered as those usually found in other countries, such as no expropriation — except for reasons of national interest and with due indemnification, full protection of the investment, the investor's option to sell his part of the business at any moment, compensation at the end of the period of association, protection against claims based on law, and the free transfer abroad of profits and capital;
  • diaphanously, the Law stipulates the possibility of foreign investment in any sector, excluding the institutions of the armed forces — except for their entrepreneurial system — and the public services of health and education.
  • the participation of foreign capital in joint ventures is not limited, and the partners come to an agreement as to the percentage of participation of each in the capital of the firm, which is included in the authorization granted;
  • The possibility of creating enterprises totally based on foreign capital, which may be convenient in certain cases, is added to the legal forms of investment. Nevertheless, in the text of the Law, incentives for mixed-capital associations are given priority;
  • a glossary is included which allows us to express clearly the meaning of the main terms used in the Law, thus avoiding misunderstandings or erroneous interpretations;
  • investments in real estate, absent as an option from the previous legislation, are contemplated;
  • as in Law-Decree 50, mixed-capital enterprises and associations with foreign capital will be favored by payment of a profit tax of 30%. Enterprises using only foreign capital will contribute according to the prevailing tax legislation.
  • the Law includes a declaration authorizing the operation of Free Zones and Industrial Parks. At present, a proposal for legislation on this is in preparation;
  • both foreign and Cuban partners have stressed the need for more rapid responses and precise procedures during the process of negotiation, consultations, and reaching final decisions. This is solved in the Law, which clearly defines the participants and the stages involved and sets two maximum time-limits — seventy days for responding to the presentation of proposals for investments and thirty days for their inscription in the corresponding register following their approval;
  • a part of the Law is devoted to listing ways to conciliate the process of foreign investments with our duty to protect the environment.

Compañeros deputies and guests, we can assure you that the draft of the Law on Foreign Investment that we are about to examine has been submitted to a process of elaboration that we can qualify as rigorous and serious. During its different stages of preparation, we have sought out the maximum number of opinions and made an exhaustive study of its legal and technical aspects.

Our enemies, who thus far have done everything possible to interfere with and obstruct our policy of locating new markets and attracting foreign investment, have launched recent campaigns in an effort to avert and impede, with this step, the confirmation of Cuba's will to make available to the international community a Law on Foreign Investment consistent with the ascendent process of recovery of our national economy.

The aim of this Law is to promote and provide incentives for foreign investment within our territory. It will help to strengthen our links with the international community and, in particular, with entrepreneurial, banking, and financial circles. This Law confirms the seriousness with which Cuba is pursuing its policy of opening up to foreign investment within the context of its socialist principles and setting forth clearly its policies and norms. On the basis of all the above, we submit this draft of the Law on Foreign Investment for the approval of our Assembly.

The Aim of the Law
is to Promote and Provide Incentives for Foreign Investment within our National Territory

This Law Confirms
the Seriousness with which Cuba is Pursuing its Policy of Opening Up
to Foreign Investment

I, RICARDO ALARCON DE QUESADA, President of the Republic of Cuba's National Assembly of the People's Power,

LET IT BE KNOWN: That the Republic of Cuba's National Assembly of the People's Power, in session on September 5th, 1995, during the Fifth Regular Session of the Fourth Legislature, has approved the following:

WHEREAS: In today's world, without the existence of the socialist bloc, with a globalizing world economy and strong hegemonistic tendencies in the economic, political and military fields, Cuba, in order to preserve its accomplishments despite the fierce blockade to which it is subjected; lacking capital, certain kinds of technology and often markets and in need of restructuring its industry, can benefit from foreign investment on the basis of the strictest respect for national independence and sovereignty, given that such investment can usher in the introduction of innovative and advanced technology, the modernization of its industries, greater efficiency in production, the creation of new jobs, improvement in the quality of the products and services it offers, cost reduction, greater competitiveness abroad, and access to certain markets, which as a whole would reinforce the efforts the country must undertake for its economic and social development.

WHEREAS: The Constitution of the Republic, as it was modified in 1992, recognizes among other forms of property, joint ventures, companies and economic associations which are established in conformity with the law and, in regard to state property and in exceptional cases, when such action is deemed useful and necessary for the country, provides for the partial or total transference of ownership of economic objectives with the goal of developing them.

WHEREAS: The changes taking place in the national economy, aimed at actively promoting and boosting the investment of foreign capital in Cuba and broadening the possibilities in terms of the forms and areas of investment, among other essential factors, surpass the legal possibilities offered until now by Decree-Law No. 50, «On Economic Association among Cuban and Foreign Entities,» approved on February 15, 1982.

WHEREAS: In order to broaden and facilitate foreign participation in the nation's economy, it is convenient to adopt new legislation that may provide greater security and guarantees to the foreign investor and allow the country to obtain financial resources, technology and new markets in any productive sector and in the service sector in which mutual interests have been identified, for the fundamental purpose of achieving sustainable development in the country and recovery of the national economy.

THEREFORE: The National Assembly of the People's Power, making use of the authority conferred upon it by Article 75, paragraph b) of the Constitution of the Republic, resolves to issue the following

LAW NUMBER 77
FOREIGN INVESTMENT ACT
CHAPTER I
PURPOSE AND CONTENT
Article 1.
1. This Act has the purpose of promoting and encouraging foreign investment in the territory of the Republic of Cuba in order to carry out profitable activities that contribute to the country's economic capacity and sustainable development, on the basis of respect for the country's sovereignty and independence and the protection and rational use of natural resources, and of establishing, for that purpose, the basic legal regulations under which this should be realized.

2. The norms contained in this Act comprise, among other elements, the guarantees granted to investors, the sectors of the economy which can receive foreign investments, the forms that these may adopt, the various types of investments, the procedure for their authorization, the regulations for these investments relating to banking, taxation, and labor, and the norms related to protection of the environment and the rational use of natural resources.

CHAPTER II
GLOSSARY
Article 2.
In this Act, the following terms are used with the definitions indicated in each case:

a) International economic association:

Joint action by one or more national investors and one or more foreign investors within the national territory for the production of goods, the offering of services, or both, for profit, in its two forms, which consist of joint ventures and international economic-association contracts.

b) Authorization:

Document issued by the Executive Committee of the Council of Ministers or a Government Commission, for the realization of one of the forms of foreign investment authorized by this Act, for a specified period.

c) Foreign capital:

Capital originating outside the country, as well as the part of profits or dividends belonging to the foreign investor that may be reinvested in accordance with this Act.

d) Top management posts:

Positions corresponding to person responsible for the direction and administration of the joint ventures and of the company with totally foreign capital as well as the representatives of the parties to international economic-association contracts and the management personnel of companies with totally foreign capital.

e) Government Commission:

Commission designated by the Executive Committee of the Council of Ministers with the authority to approve foreign capital investments in its area of competence in correspondence with what is stipulated in this Act.

f) Administrative concession:

Unilateral action on the part of the Government of the Republic, whereby an entity is granted the right to exploit a public service or a natural resource, or to execute a public work under terms and conditions to be determined.

g) International economic-association contract:

Pact or agreement among one or more national investors and one or more foreign investors, for the joint realization of actions appropriate to an international economic association, without the establishment of a legal entity distinct from each of the parties.

h) Company with totally foreign capital:

Commercial entity with foreign capital, without the involvement of any national investor. i) Joint venture:

Cuban commercial company which adopts the form of a registered-share corporation, in which one or more national investors and one or more foreign investors participate as stockholders.

j) Employing entity:

Cuban organization with legal status, authorized to establish a contract with a joint venture or a company with totally foreign capital, through which it supplies, at the company's request, the workers of various skills needed by the company, who will be employed by that organization.

k) Assets:

Salaries, income and other remuneration, as well as increases, compensations and other additional payments received by Cuban and foreign workers, with the exception of those stemming from the economic stimulation fund, should this exist.

l) Foreign investment:

Capital input by foreign investors, in any of the forms stipulated by this Act.

m) Foreign investor:

The natural or juridical person, with a foreign domicile and foreign capital, that becomes a shareholder in a joint venture or participates in a company with totally foreign capital, or that is party to an international economic-association contract.

n) National investor: