Remittances To Cuba Are Topics Today At The White House And Department Of State Media Events

The White House
Washington DC
20 July 2021

Q And on the Cuba meeting that happened last night --

MS. PSAKI: Mm-hmm.

Q It was a virtual event -- a handful of people, primarily from South Florida. Has there been any conversation about having other meetings on that here? And what more might the President do himself on this issue? What might he do or say? I know the administration continues to monitor it every day, of course.

MS. PSAKI: Well, at the President's direction, we are actively pursuing measures that both the Cuban people -- that that support both the Cuban people and hold the Cuban regime accountable. And that has been the prism through which the President has made his decision. So that includes working closely with the private sector and Congress to identify viable options to make the Internet more accessible to the Cuban people. We’re looking at options. There are a lot of ideas out there. We are also looking to leverage our international -- international organization partners to increase humanitarian assistance flows to Cuba, and work with our international partners to help both voice concern and put public pressure on, but also work with international organizations. The Treasury Department via the Office of Foreign Assets Control will continue to explore designated Cuban officials responsible for violence, repression, and human rights violation against peaceful protesters in Cuba. And we will form a remittance working group to identify the most effective way to get remittances directly into the hands of the Cuban people. On the last piece, I would note that what the President said yesterday -- or sorry, not yesterday -- last week stands, which is that there has been longstanding concern about if you return remittances, if you return to a place where remittances are allowed, that that money or funding does not get into the hands of the regime or allow them to pad their pockets. That's certainly something that we're mindful when we're looking at -- that will be a point of discussion in these working groups.

Q And the President still hasn't met with any of these people who've met with other White House officials on the issue?

MS. PSAKI: I don't have -- he has not. We certainly remain open to, as we are engaging at quite a high level. I don't have anything to preview in terms of meetings at his level, but you can tell he's asked his team to take a number of steps and look into a range of options.

The United States Department of State
Washington DC
20 July 2021

QUESTION: There is a – there’s news of a working group on remittances. Can you explain a little bit about that? Is there an intention at all to restart remittances in some way, even if it’s in a different way from before?

MR PRICE: Sure, let me give you a little more context. And you heard this from the White House, and my colleague at the White House I believe spoke to this earlier today. But as you know, we have consistently stood with the Cuban people, including in the context of the recent protests across the island nation. We will continue to support the Cuban people in their legitimate aspirations for human rights, for democracy, for the values that have for far too long – since 1959 at least – been denied to them.

As part of that, we will always look for ways to support them but also to the Cuban regime accountable. This includes our efforts to build international pressure against the abuses of the regime, designating sanctions against those responsible for the violence, for the repression that has followed the recent protests. And when it comes to assisting the Cubans, we’ll look at any number of ways. And that includes – you mentioned both remittances, and we also spoke to helping to facilitate internet access as well.

When it comes to remittances, as you heard, we will form a remittances working group to identify the most effective ways to get remittances – this is important – directly into the hands of the Cuban people. Beyond that, we are also reviewing our plans to augment staffing at our embassy in Havana to facilitate the consular activities, the engagement with civil society, and to make sure we have an appropriate security posture as well.

When it comes to internet access, we are working with the private sector as well as with Congress, which, of course, has a keen interest in all of this, to identify viable options to make the internet more accessible to the Cuban people and will also leverage our international partners, including international organizations, to do what we can to increase humanitarian assistance flows to Cuba.

Now, when it comes to the other side of the equation, holding the regime accountable, the Treasury, specifically via their Office of Foreign Assets Control, will continue to explore designating Cuban officials who are responsible for what we have seen – namely the violence, the repression, the human rights violations – again, against these peaceful protestors in Cuba who were and are doing nothing more than exercising their universal rights.

We’re also working diligently with the international community to collectively condemn this repression and support the Cuban people, who very clearly are demanding the freedom and the rights that have long been denied to them.

When it comes to remittances, Shaun, the administration, as I said before, is focused on allowing such transfers only if we can guarantee that the money flows directly into the hands of the Cuban people. We are going to, as we explore this issue, make sure that we are doing everything we can to see to it that those proceeds go to the Cuban people and that they do not go into the regime’s coffers. Again, this is a regime that has denied its people of resources and of rights, and I think we have seen that come to the fore in Cuba in recent days. And we’re, as you heard from the White House, very closely studying how we might affect this going forward.

QUESTION: Can I just press you on one point about – you were saying planning to augment staff at the embassy. Is that something that’s going to happen imminently? And what have you done specifically to engage civil society? Could you explain a bit more what these extra people will be doing?

MR PRICE: Sure. The staffing at our embassy will serve to enhance our diplomatic, our engagement – our diplomatic activity, our engagement with civil society, our consular service engagement, all of which will be in service of helping the Cuban people to secure greater degrees of human rights, of freedom, of the universal rights that have been denied to them for far too long.

So I don’t have anything to offer in terms of time frame, but we do know that if we are going to be doing all we can to support the aspirations of the Cuban people we need to have a presence on the ground that will appropriately position us to do just that.

QUESTION: Yeah, I have two follow-ups. Last week, President Biden said pretty clearly that he was not going to consider remittances. I’m wondering what changed between that conversation with Chancellor Merkel and today. I think you flicked at it a little bit by saying that you want to make sure that the money is going to go to the Cuban people, but that was something that could have been considered last week as well. So, what’s changed in the last few days?

And then also when you’re talking about augmenting staffing in Embassy Havana, what kind of precautions is the State Department taking to make sure that they are not victim to some of the illnesses that we’ve seen in years past there? Thanks.

MR PRICE: Thank you. So, what you heard from President Biden last week was the concern that I expressed today, and that is namely the fact that we are going to do everything we can as we study this issue to devise ways to ensure that these remittances – that in many cases are hard-earned funds from Cuban Americans and their associates back here in the United States to Cubans on the island – to ensure that they go directly to the people. That has been the concern with remittances in the past.

Look, we are all about devising ways that we can support the Cuban people, but we have to make sure that these tactics, these tools, these procedures in this case, do, in fact, support the Cuban people. We’ve engaged in a number of consultations, including with senior members of Congress on this. And we are confident that through studying the issue we may be able to devise ways to do just that, to affect these remittances, to ensure that the funds get into the hands of the Cuban people, while ensuring that they do not, on the other hand, go into the coffers of the regime.

QUESTION: Is it fair then to assume – sorry – that after the President’s comments members of Congress and others in the government said, “Hey, let’s take another look at this. There is a way we could at least study getting the money directly to the Cuban people, as opposed to it going to the regime”?

MR PRICE: As we have seen these peaceful protests take place on the island, the Cuban people demand the legitimate aspirations for human rights, for greater degrees of freedom, for liberty. We have made clear that we are going to thoroughly investigate any, and all ways that we can support those legitimate aspirations. We have been in regular contact with members of Congress, of course both before the protests of recent days and in the aftermath. We have heard good ideas from members of Congress; we’ve shared our ideas with members of Congress and other important stakeholders as well. So, this idea – of course, there’s nothing new about this particular idea. It’s always been on the table. But what is new is the announcement that we are going to study it very carefully, very closely to determine what and how we might be able to move forward in a way that supports the Cuban people without adding to the coffers of the regime.

MR PRICE: To your second question —

QUESTION: Yes. Thank you.

MR PRICE: — and staffing at the embassy, of course we have spoken very clearly about the priority we attach to the safety, the security, the well-being of our personnel around the world. We have also spoken just yesterday of the unexplained health incidents that have plagued our personnel around the world, and it’s no secret that Havana was a site of some of these incidents. So, as you know, I am not in a position to detail security precautions or measures that we may take, but every time we deploy our personnel overseas, we do so taking into account precautions and doing everything we can to see to it that our people are protected, that they have what they need to do their job effectively, and that their safety, well-being, and welfare is an utmost priority.

QUESTION: So, in other words, you have confidence that Embassy Havana and its environs are safe for diplomats in order for them to return. There’s not a concern that this – these illnesses could crop up again. There’s —

MR PRICE: Well, so what we said is that we’re going to review planning to augment personnel back at the embassy. We are taking every consideration into account, as you expect we would. The safety and security concerns are certainly one of those issues we’re going to take into account. But we’re just starting this process, so I don’t want to prejudge it right now.

QUESTION: Ned, on the remittances, I’m just a little confused about how you – when you say you want it to go directly to the Cuban people. Well, obviously that’s what – every administration has wanted that. But is there a percentage fee or a percentage of an amount that is sent to Cuba that you’re okay with that is taken by – a processing fee, administrative fee, whatever you want to call it – by a bank, which is obviously state-run, or a state-controlled enterprise, or one that has to pay the government, like Western Union or something like that? Is there a maximum percentage that you’re prepared to allow?

Because short of flying remittances – cash, from remittances into the embassy and then having people come to the embassy to hand it out to people, I don’t see how you’re going to get – it’s got – there’s a transaction here that doesn’t involve – unless you are going to do that – that doesn’t involve U.S. officials. So, when you say you want the money to go directly to the Cuban people, is there an amount that can – that is acceptable to go to a Cuban Government-owned or controlled entity?

MR PRICE: Well, of course, there’s not an amount that is acceptable to us to go into the coffers of the Cuban Government. After our – after all, our goal is to support the Cuban people and to help them achieve their aspirations, the aspirations that this very regime has, for far too long, denied to the Cuban people. So again, what we are doing is forming a remittance working group to identify the most effective ways to get remittances directly into their hands.

QUESTION: I get that. But does that mean that no fee is the only thing that’s acceptable? No percentage cut of whatever is sent is – there can’t be any —

MR PRICE: Again, when it comes to this working group, which was just announced yesterday and spoken to today, when it comes to our planning for Embassy Havana, these are – they are just now – the planning for these are just now underway, so I don’t want to get ahead of where we are. But it’s something we’re looking at very, very closely.

QUESTION: Staying on Cuba, you mentioned you’re trying to – working with Congress and the private sector to try and help expand internet access. Does that mean you’re sort of looking towards a private sector solution to this rather than, say, the U.S. military? (Inaudible) happen in other countries often (inaudible) private sector (inaudible) want to go through that route.

MR PRICE: Well, we’re working closely, yes, with the private sector, but we’re also working with Congress, as we are across many of these lines of effort, to identify viable options to make the internet more accessible to the Cuban people. We’re – we will be actively collaborating with our private sector partners to identify ways that may, in fact, be creative to ensure that the Cuban people have access to the free flow of information on the internet.

You’ve heard us say this before, but in the interim and right now – today – we call on Cuba’s leaders to reinstate and to maintain access to all internet and telecommunications services for all people within its borders. We support, just as in Cuba as we do around the world, unrestricted access to the global, open, interoperable, reliable, and secure internet, and we condemn actions by the Cuban Government to restrict this access.

Not only in Cuba but across the board, we very carefully examine and provide funding to support the development, the global deployment, and operation of the latest available secure and reliable technical solutions to internet censorship, to content blocking, and shutdowns. Our programming makes secure circumvention and communication tools available to internet users everywhere who may be – who may seek access to blocked websites and social media platforms, and that includes on Cuba.

We currently provide over $60 million in funding worldwide each year for programs to support that unrestricted access to the global, open, interoperable, reliable, and secure internet. These programs are so important to us precisely because they can help to promote human rights, fundamental freedoms, the free flow of information online, regardless of national boundaries or frontiers, consistent with international human rights norms and standards. We believe that the Cuban people deserve what people around the world deserve, and we’ll be looking at ways to assist that going forward.

QUESTION: On Cuba.

MR PRICE: Staying on Cuba, let’s – sure, yeah.

QUESTION: One more. NBC News has confirmed the administration is looking at over 200 possible cases of these unexplained health incidents. Has the administration gotten any closer to determining who or what is behind them?

MR PRICE: Well, we have spoken to this in some detail, knowing that there’re going to be certain details that we’re not in a position to share broadly. But you heard me, in fact, say this yesterday, that the State Department is committed to ensuring the health, the safety, the well-being of our personnel and their families, and we are working diligently with our partners in the interagency to determine the cause of these incidents. The Secretary was asked about this on the Hill. Other members of the administration have been asked about that. We’re not in a position – we don’t yet know, precisely, the cause of these incidents, but we continue to encourage members of our mission communities around the world to report a potential UHI, or unexplained health incident, to their post’s security and medical personnel.

We are investigating and reviewing reports of incidents from all around the world. We’re also not in a position to confirm numbers. But as you know, Ambassador Spratlen, whom Secretary Blinken appointed to head the Health Incidents Response Task Force, along with our Deputy Secretary of State for Management and Resources Brian McKeon, have been deeply engaged in this. And there have been communications to the entire workforce, to targeted members of the workforce; they have met with members of our workforce who have been – who have suffered from these unexplained health incidents. We are going to continue to do all we can to ensure that we are providing these employees with all the support they need as they deal with this going forward.

Analysis 

Regarding remittances, the Biden-Harris Administration (2021- ) needs to accept reality and then develop and implement decisions based upon what is in Republic of Cuba rather than what they want to be in the Republic of Cuba. 

The end of the discussion has been written- the government of the Republic of Cuba will gain in some measure from the arrival, exchange, and use of electronic remittances from the United States. 

For the Biden-Harris Administration, there remains the same question previously answered by the Trump-Pence Administration (2017-2021) and maintained by the Biden-Harris Administration: The United States government will not permit electronic transfer remittance providers (Western Union Company, MoneyGram, etc.) to have as their counterpart in the Republic of Cuba a financial institution and distribution apparatus that is controlled by and/or affiliated with the Revolutionary Armed Forces (FAR) of the Republic of Cuba. 

In 2020, the Diaz-Canel-Valdes Mesa Administration (2019- ) had options that were non-military controlled and/or affiliated to be the counterpart to Western Union Company.  The choice was to sacrifice the efficient electronic delivery of remittances. 

There are no commercial means to channel what is estimated to be up to US$2.5 billion in electronically-delivered remittances on an annual basis from the United to the Republic of Cuba absent participation of the Diaz-Canel-Valdes Mesa Administration.  

The Republic of Cuba uses the Peso, which is not convertible internationally.  So, any currency brought into the country will need to be changed into the Peso, and the exchange rate is established by the Central Bank of the Republic of Cuba, not the United States Department of the Treasury or the United States Federal Reserve.  

Absent the United States government, through the United States Embassy in Havana, becoming a currency exchange, the question for the Biden-Harris Administration is what level of indigestion is it and interested Members of the United States Congress are prepared to accept because the government of the Republic of Cuba is a stakeholder.

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