Has A Lobbying Organization Created A "Tainted Proceeding" For Air Carriers With USDOT Applications?

Has A Lobbying Organization Created A “Tainted Proceeding” For Air Carriers With USDOT Applications?

Washington, DC-based EngageCuba may have created a basis for litigation against the United States Department of Transportation (USDOT) by United States-based air carriers that do not receive from the USDOT desired routings for the Republic of Cuba.

The USDOT application criteria (https://www.regulations.gov/#!documentDetail;D=DOT-OST-2016-0021-0001) does not include a measure relating to the advocacy/lobbying activities by an air carrier as a means test for awarding routes:

“The Department’s principal objective in this proceeding will be to maximize public benefits. In this regard, the Department will consider which applicants will be most likely to offer and maintain the best service for the traveling and shipping public. The Department will also consider the effects of the applicants’ service proposals on the overall competitive environment, including effects on market structure and competition in the U.S.-Cuba market, and any other market(s) shown to be relevant.  In addition, where relevant, the Department will consider other factors historically used for carrier selection.”

A relevant portion of a 22 March 2016 letter from EngageCuba to The Honorable Anthony Foxx, Secretary of United States Department of Transportation in Washington DC, includes:

"While many U.S. companies have expressed interest in doing business in Cuba, [Atlanta, Georgia-based] Delta [Air Lines] is one of the select few who, by supporting Engage Cuba, have signaled a true commitment to public policy change. We are proud to offer our support of Delta’s proposal to offer scheduled passenger service to Cuba."

That the letter includes the statement, "... is one of the select few who, by supporting Engage Cuba…" can be inferred as creating a political litmus test, rather than a purely commercial context, for the designation of routing authorities.

This effort may be construed as a lobbying organization seeking to influence the USDOT by conveying that a supporting company is doing what others are not, or have not been invited (permitted) to do, relating to advocating for a change in United States policy, and should thus be awarded route authority instead of a company that is not a (financial) supporter of the lobbying organization, but may have a superior business plan.

If Delta Air Lines receives a route authority, might another air carrier have a basis for (administratively) litigating that a lobbying organization supported by Delta Air Lines wrote a letter to the United States Secretary of Transportation stating that Delta Air Lines should be awarded route authority(s) not because of market analysis or competitive analysis or superior business plan, but because the company is lobbying for a "public policy change."

From an executive at an air carrier: "… a business risk… they will contact me for something and I will remind them of their support for Delta Air Lines."

From an executive at an air carrier: "We will carefully review all DOT route decisions to confirm that they were awarded on the commercial merits."

One Year Later... What Did New York Companies Get From Governor Cuomo's Visit To Cuba

One Year Later…. What Did New York State Companies Get For Governor Cuomo’s Estimated US$200,000.00 One-Night Visit To Cuba?

One year ago today, The Honorable Andrew Cuomo (D), Governor of the State of New York, returned from a 20 April 2015 to 21 April 2015 visit to the Republic of Cuba.

He traveled with representatives of seven (7) New York-based companies and fifteen (15) members of his staff- seven (7) of whom had a focus upon relations with the media. 

What have the companies reported….

108,000 New Hotel Rooms In 14 Years..... That's 7,714 Rooms Per Year

The government of the Republic of Cuba has reported a goal of constructing 108,000 hotel rooms throughout the country during the next fourteen (14) years.  

There was no mention as to the number of rooms for each property. 

There was no mention as to what categories (one star to five star) of properties would be created.

That's 7,714 new hotel rooms per year...

If each property has two hundred (200) rooms, that's 38 hotels per year...

If each property has three hundred (300) rooms, that's 26 hotels per year.....

The government of the Republic of Cuba has not indicated whether these properties would be owned by Republic of Cuba government-operated companies, managed by Republic of Cuba government-operated companies, managed as joint ventures with non-Republic of Cuba-based companies, or owned and managed by non-Republic of Cuba-based companies.

In May 2016, H.E. Manuel Marrero, Minister of Tourism of the Republic of Cuba, shared the following:

  • Gross tourism revenue in 2015 was US$2.8 billion [of which approximately 16% was reported by Palma de Mallorca, Spain-based Melia Hotels International].
  • 127 new investment projects are in progress of which 76 are foreign management hotel joint ventures signed with 17 international companies.  Another 23 contracts are expected to soon be authorized.
  • The Republic of Cuba approximately 66,000 hotel rooms [primarily of one-star to three-star categories based upon international standards].
  • Currently, hotel rooms are being contructed at a rate of 2,400 per year; by 2019 the rate should exceed 5,000 per year.
  • 33% of current and future tourism capacity will be managed by Republic of Cuba government-operated Gaviota, controlled by the Revolutionary Armed Forces of the Republic of Cuba.  Gaviota expects to add 30 new hotels by 2018.
  • The Republic of Cuba has 16,000 rooms operated as privately-owned residencies (Casa Particulars) and 1,700 privately-owned restaurants (Paladares).

 

USITC Releases 449-Page Report On Trade (Potential) With Cuba

18 April 2016
United States International Trade Commission
Washington, DC

U.S. EXPORTS OF AGRICULTURAL, MANUFACTURED GOODS TO CUBA COULD INCREASE IF U.S. TRADE RESTRICTIONS WERE LIFTED, BUT SIGNIFICANT CUBAN BARRIERS TO FOREIGN TRADE AND INVESTMENT WOULD REMAIN

This report examines Cuban imports of goods and services from 2005 to the present; the effects of U.S. restrictions on trade with and travel to Cuba; and Cuban nontariff measures, institutional and infrastructural factors, and other barriers that may inhibit or otherwise affect the ability of firms to conduct business in and with Cuba. It also presents a qualitative and quantitative sectoral analysis of potential U.S. exports of goods and services to Cuba in the event that U.S. restrictions are lifted and Cuban import barriers are reduced. 

The U.S. International Trade Commission (Commission or USITC) conducted this investigation at the request of the U.S. Senate Committee on Finance. To produce this report, the Commission used information from a variety of sources, including publicly available literature and data, interviews and fieldwork, and the Commission’s public hearing. The Commission used qualitative and quantitative measures to analyze the effects of U.S. restrictions and to estimate the potential for increased U.S. exports of goods and services to Cuba in the event that statutory, regulatory, or other trade and travel restrictions are lifted.

CLICK HERE FOR COMPLETE REPORT IN PDF FORMAT

US Department Of State Issues Report On Cuba (The Report Contains Commercial Information)

2015 Country Reports on Human Rights Practices
13 April 2016

Media Note
Office of the Spokesperson
Washington, DC

On April 13, 2016, Secretary Kerry submitted the 2015 Country Reports on Human Rights Practices (commonly known as the Human Rights Reports) to the U.S. Congress. The reports, now in their 40th year, document the status of human rights conditions in 199 countries and territories around the world.

Mandated by Congress, the Human Rights Reports help inform U.S. foreign policy and congressional allocation of foreign aid and security sector assistance. They also serve as a reference for other governments, international institutions, non-governmental organizations, legal professionals, human rights advocates, scholars, interested citizens, and journalists.

The 2015 Reports highlight the intensified global crackdown by an increasing number of states on members of civil society. Government efforts to stifle civil society were achieved through overt or direct means including through harassment, intimidation, detention, and restrictions on their ability to operate; through the implementation of overly broad counterterrorism or national security laws to control the freedom to assemble and to suppress dissent; and through more nuanced yet burdensome bureaucratic procedures such as the passage of NGO legislation that restricts the operating space for human rights organizations. The collective result of these measures has led to the silencing of independent voices, a growing impoverishment of political discourse, and diminishing avenues for peaceful expression and change.

CLICK HERE FOR COMPLETE TEXT IN PDF FORMAT

Economic Eye On Cuba Newsletter- US Food/Ag Exports To Cuba Increase 32%

ECONOMIC EYE ON CUBA©
April 2016

Cuba Purchasing Agricultural Equipment; Gulfwise LLC Receives 1st BIS License- 1
Google Opens Technology Center In Havana; High-Speed Internet For 40 At A Time- 2
US Department Of Commerce Misstates Colgate-Palmolive’s Timetable In Cuba- 2
February 2016 Food/Ag Exports Increased 32% Compared To February 2015- 3
No Exports Of Products Authorized By 2015/2016 Initiatives- 3
February 2016 Healthcare Product Exports- 4
February 2016 Humanitarian Donations- 5
U.S. Port Export Data- 15
Speaking Schedule- 16

CLICK HERE FOR COMPLETE DOCUMENT IN PDF FORMAT

 

US Department Of Commerce Misstates Colgate-Palmolive's Timetable in Cuba

Information provided by the United States Department of Commerce on 21 March 2015, in conjunction with the visit to the Republic of Cuba by President Barack Obama, was not accurate:

21 March 2016
United States Department of Commerce

DEPARTMENT OF COMMERCE FACT SHEET: Economic development in the wake of President Obama’s regulatory changes on exports and travel to Cuba

Colgate-Palmolive: Colgate-Palmolive implements its Bright Smiles program, which provides free dental care and dental hygiene products to children in Havana.

Republic of Cuba activity by New York, New York-based Colgate-Palmolive Company (2015 revenues US$16.034 billion) commenced prior to the 17 December 2014, the date upon which President Obama announced changes to the commercial, economic and political relationship with the Republic of Cuba.  

From the company on 5 April 2016:

Colgate Palmolive’s Bright Smiles, Bright Futures program provides oral health education and screening to millions of children in more than 80 countries as part of an effort to reduce and prevent cavities among children. The global program, celebrating its 25th anniversary, has reached more than 850 million children around the world with its education curriculum. This award-winning curriculum is translated into 30 languages. Colgate’s well-established partnerships with governments, schools and communities -- combined with a committed network of volunteer dentists and educators -- make the program work. 

With government approval, we brought a humanitarian program modeled on Bright Smiles, Bright Futures to Cuba in 2014. In our first year, we ran the program in one municipality of Havana and reached approximately 10,000 children. Additionally, we presented our plan to dentists and representatives from the Ministry of Health at the Cuban Dental Congress in November 2015. 

Today, we’re extending our reach in Havana as well as expanding the program to the provinces of Cienfuegos and Pinar del Río in partnership with the Ministry of Health. With this expansion, we expect to reach more than 170,000 children by the end of 2016.” 

A question is why would the United States Department of Commerce include Colgate-Palmolive Company in its Fact Sheet when it knew that the activities of the company pre-dated 17 December 2014.

Given that the government of the Republic of Cuba presents its healthcare system as encompassing and an accomplishment on behalf of its 11.3 million citizens in spite of United States laws and regulations, surprising that it would authorize a United States-based company to engage in a country-wide humanitarian dental program.  

However, a goal of the authorization may be to encourage Colgate-Palmolive to both export products to the Republic of Cuba and eventually manufacture products within the Republic of Cuba, as does London, United Kingdom-based Unilever (2015 revenues approximately US$73 billion), an Anglo-Dutch multinational consumer goods company co-headquartered in Rotterdam, Netherlands, and in the United Kingdom.  Its products include food, beverages, cleaning agents and personal care products.

On 22 January 2016, Unilever reported plans to "invest in Mariel, Cuba’s Special Development Zone. Partnering with state-owned company Intersuchel, we will build a $35 million homecare factory to open in 2017.  Cuba has a new overseas investor in its Mariel Special Development Zone and a new joint venture to celebrate.

Unilever and state-owned firm Intersuchel have signed a deal which will see the formation of a new company, Unilever-Suchel S.A. and a $35 million investment (equivalent to €32.3 million) in a personal and homecare factory which is set to open in 2017.

The factory will manufacture some of our top-selling personal and homecare international brands, including Sedal shampoo, Rexona deodorant, Omo detergent, Lux soap and Close-Up toothpaste. Unilever will take a 60% stake in the venture, and Intersuchel will hold 40%. The factory is expected to generate 300 direct jobs.

Unilever will invest in Mariel’s Special Development Zone, which allows foreign and domestic companies to trade and invest with fewer regulations and is designed to encourage overseas investment.

The signing ceremony for the joint venture was attended by Dutch Foreign Trade Minister Lilianne Ploumen, Ana Teresa Igarza, General Director of the Mariel Special Development Zone, Fabio Prado, President of Unilever Mexico & Greater Caribbean and Pedro Fraga, President of Intersuchel S.A."

Unilever reported that a company in a joint venture with a Republic of Cuba government-operated entity that expects to market the products of the joint venture to Republic of Cuba government-operated companies, need to be prepared to accept up to 720 days for account receivables.  Unilever reports that its operations have had a maximum wait of 180-days to receivable a payment.

Google Opens Technology Center In Havana... High Speed Internet For 40 At A Time

California-based Google has opened is technology center in the city of Havana, Republic of Cuba.  The facility has twenty Chrome notebooks, one hundred Google cardboard virtual reality visors, and two cameras for transmitting video to YouTube, owned by Google.

Republic of Cuba government-operated Empresa Nacional de Telecomunicaciones de Cuba S.A. (ETEC S.A.) is providing the facility with high-speed Internet, which is not available to the public.  The facility will be open five days a week and can accommodate forty customers (limited to one hour per session).

Reportedly, the partner in the Republic of Cuba is paying approximately US$900.00 per month to ETEC SA for high-speed Internet access- which provides the users of Chrome notebooks with a connection approximately seventy-times that of existing Wi-Fi locations throughout the Republic of Cuba.

According to ETEC SA, as of March 2016, an average of 200,000 people per day access the Internet from eighty-five (85) public Wi-Fi hotspots located throughout the country; in December 2015, the number was 150,000 users per day.  ETEC SA plans to create an additional sixty (60) wi-fi hot spots and establish one hundred (100) Internet cafes in 2016.  As of 31 December 2015, there were three hundred and forty-five (345) Internet cafes with a combined 11,187 computers.  The Republic of Cuba has 11.3 million citizens.

The Republic of Cuba accesses the Internet through an undersea fiber-optic cable connected to Venezuela in 2011, which became fully-operational in 2013.

From Google on 21 March 2016:

"¡Adelante! We’re thrilled to partner with the Museo Orgánico Romerillo in Havana, Cuba, which is showcasing the work of local artist Kcho. It will also feature some of the latest Google products including Cardboard and Chromebooks, connected to local carrier ETECSA’s Internet network. We hope this installation will enable people for whom Internet access is scarce to browse the web and find information.

We’re excited that Cuban children will be able to try out virtual reality to explore sites from around the world -- from Stonehenge to Port Hercule -- the same way that children in other countries do. These efforts, which are all led by our Access team, are just a start, but an important one. They demonstrate what might be possible in the future.

They come as other US technology firms and other companies increase their efforts in Cuba to bring a variety of services to the island -- including potentially WiFi and broadband providers as well. We’re also exploring additional possibilities around increasing and improving internet access, but they’re at early stages. We’ve always been very open about the fact that we want to make available as many of our products as possible throughout the world, because we believe that access to information and technology can improve lives.

In 2014, we launched Google Chrome, Google Play for Free Apps, and Google Analytics in Cuba. Later, after steps were taken toward normalizing relations between Cuba and the US, we introduced Toolbar in Cuba in January 2015 to help people search the web more easily.

We know, from the experience of many countries around the world, that new technologies and improved internet access can help people in their daily lives, provide new information and experiences, and help harness a country’s creativity and ingenuity. We hope to have the chance to offer more services to the Cuban people in the future."

Cuba Purchasing Agricultural Equipment; GulfWise LLC Receives 1st BIS License

Cuba Purchasing Agricultural Equipment; GulfWise LLC Receives 1st BIS License

Alabama Setting US Pace For Commercial Export/Assembly Activities In Cuba
1st & 2nd Agricultural Parts/Equipment Export Licenses
1st Agricultural Equipment Sale

Foley, Alabama-based GulfWise Commerce LLC (www.gulfwisecommerce.com), affiliated with 100-year-old Foley, Alabama-based The Woerner Companies (2015 revenues exceeded US$40 million; www.woerner.com), received a license from the Bureau of Industry and Security (BIS) of the United States Department of Commerce on 31 March 2016 to export advanced planting and harvesting equipment valued at US$108,184.00.  The BIS application was submitted at the end of January 2016.

The purchaser is Republic of Cuba government-operated Tecnotex SA for use by the Republic of Cuba government-operated Indio Hatuey Research Station, a Matanzas, Republic of Cuba-based agricultural research institution.  Tecnotex SA (affiliated with the Revolutionary Armed Forces of the Republic of Cuba) imports equipment, technology, and construction materials.  

The agreement was negotiated in late 2015 and agreement-in-principle was concluded in January 2016, pending BIS approval.  Formal purchase contract in process of completion. 

There are two principal pieces of equipment: (a) Rear load Sprig Harvester, 42 in. with hook chain with box carrier attachment valued at US$49,962.00 and (b) Sprigmaster Broadcast with 12 sides, spring loaders and swivel coulters valued at US$51,944.00.  Supporting parts and equipment include: (a) Gear boxes and Ogura clutch (for the Sprigger); (b) Multiple power belts; (c) Hydraulic motors; (d) Multiple Harvester teeth; and (e) Assorted miscellaneous parts are valued at US$6,278.00.  The estimated weight of the shipment will be approximately 18,000 pounds.

The equipment, which is being manufactured in Alabama and expected to be delivered soon through the Port of Mobile, Alabama, will assist in establishing grass-covered areas for purposes ranging from erosion control to the creation of pasturage and the establishment or improvement of parks and recreational areas, such as playgrounds and sport facilities.

The discussions commenced in 2014 when GulfWise Commerce LLC initiated a dialogue with researchers at the University of Matanzas regarding multiple agriculture production issues in the Republic of Cuba.  That dialogue led to an assessment of specialized equipment needed and to subsequent negotiations for a possible sale, which led to an application to the BIS.  

Representatives of GulfWise LLC and The Woerner Companies have made five (5) visits to the Republic of Cuba; the first in 2012.  Two representatives of the Indio Hatuey Research Station visited Alabama in 2015.

Significant about the transaction is the decision by the government of the Republic of Cuba to not focus upon a United States-based multinational (for example, Illinois-based Caterpillar or Illinois-based John Deere), but rather have the first export to the Republic of Cuba of durable (non-healthcare-related) commercial equipment be from a private company.

Mr. Robert L. Muse (www.robertmuse.com; 202-887-4990), the Washington, DC-based attorney who represented GulfWise Commerce LLC in the BIS licensing process, said the significance of the transaction is “… the government of Cuba clearly rewarded the patient efforts of a privately-owned company willing to invest the time to identify and fill the needs of Cuba’s rapidly changing rural economic landscape.”

Paint Rock, Alabama-based Cleber LLC has received authorization from the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury and the BIS to create a tractor warehouse/assembly facility in Mariel Special Development Zone located near the city of Havana, Republic of Cuba.  The government of the Republic of Cuba has authorized the assembly facility.  The first year investment is US$1.4 million (which has been obtained according to the company); total long term investment US$5 million.

The city of Mobile, Alabama, has been a part of the Sister Cities International program (Society Mobile-La Habana) with the city of Havana, Republic of Cuba.

Since 2001, Alabama-based companies have been exporters of food products and agricultural commodities (poultry) from the United States to the Republic of Cuba under provisions of the Trade Sanctions Reform and Export Enhancement Act (TSREEA) of 2000.

During the last six years, the Port of Mobile, Alabama, has ranked 8th of 34 United States ports that have processed exports from the United States to the Republic of Cuba.

Let's Make A Deal.... Door 1, Door 2 Or Door 3

A “Let’s Make A Deal!”

Door One- President Obama
Door Two-Nominee of the Republican Party
Door Three- Nominee of the Democratic Party

Republican National Convention
Cleveland, Ohio
18 July 2016 to 21 July 2016

Democratic National Convention
Philadelphia, Pennsylvania
25 July 2016 to 28 July 2016

When the individual accepts their nomination to be the Republican Party’s candidate for President of the United States, there will be 184 days (4,416 hours) until Inaugural Day on 20 January 2017.

When the individual accepts their nomination to be the Democratic Party’s candidate for President of the United States, there will be 177 days (4,248 hours) until Inaugural Day on 20 January 2017.

The number of days remaining until Inaugural Day is shared with President Barack Obama.

The nexus between President Obama and President Raul Castro is fixed, limited by time- days and hours and minutes and seconds.  

The governments of the United States and the Republic of Cuba have calculators- arithmetic calculation and political calculation.

For President Obama, there is a desire to remove as many regulatory and to-be-negotiated (5,913 certified claims being the primary) obstacles as possible so that a successor will have a cleansed pathway to removing remaining legislative impediments.  

For President Castro, his legacy will be defined by what he chose to do or chose to avoid with respect to the United States… at a unique moment: His counterpart in The White House seeks a permanence when he may seek flexibility and prefer uncertainty.  Breathing room.  President Castro needs to determine which of three doors he will choose.  Almost any decision may be viewed as a capitulation or as a victory.  

Until 20 January 2017, Presidents Obama and Castro have one certainty.  A clock that is counting down.  No matter how much oratory is directed towards that clock, neither president can change it.    

But, it’s President Castro who is the “game show contestant.”  He must select Door One, Door Two, or Door Three.  And, unlike much of television programming, there will be no rerun of this program.

Watch For Green, Yellow And Red Lights.....

Those who profess the Obama Administration Initiatives to be "irreversible" are wrong; the government of the Republic of Cuba can impede them, stop them and reverse them. It's happened before.

The President avoided using the phrase "regime change," but impacting the behavior of the government of the Republic of Cuba is precisely the goal of the Obama Administration Initiatives, particularly those targeting non-state enterprises and self-employed individuals- which the government of the Republic of Cuba has yet to authorize.

The Obama Administration Initiatives are focused upon supporting the recreation of a middle class abridged as a result of the 1959 Revolution that needs more, wants more, will work for more, and is willing to be vocal about their desires.

The United States business community is focusing upon this resurrected group, along with existing Republic of Cuba government-operated entities, to create and then support product and service export opportunities. This will not be a race; it will be a walk.

The President traveled a great distance, physically, politically, metaphorically; with the only certainty being uncertainty... and the government of the Republic of Cuba, in response, accepted donations, agreed to purchase nothing, and only accepted from United States companies what offerings would increase revenues.

Very much a local train- with many stops, some unplanned, perhaps a derailment or two.... and no specific timetable for arrival. Oh, and crew changes along the way....

US Newspapers Coming To Cuba Hotels Courtesy Of Airlines

Visitors and residents of Havana (and throughout the Republic of Cuba) will soon have access to the print editions of newspapers from throughout the United States as a result of the resumption of regularly-scheduled commercial airline service from the United States.

Throughout the world, properties managed by United States-based companies provide newspapers to their guests, especially guests who are members of loyalty programs.

With flights expected to operate primarily from the cities of Atlanta, Chicago, Dallas, Los Angeles, Miami, New York, Tampa, Washington DC, newspapers from those locations are expected to be transported to the Jose Marti International Airport (and other airports) each day and then distributed to hotels.  Arlington, Virginia-based USA Today is expected to have the largest distribution platform throughout the Republic of Cuba, followed by The Miami Herald, The New York Times, The Wall Street Journal, The Washington Post, The Tampa Tribune, and The Los Angeles Times.

Stamford, Connecticut-based Starwood Hotels & Resorts Worldwide (2015 revenues exceeded US$5.7 billion) will be managing three properties in the Republic of Cuba (Gran Caribe-owned Hotel Inglaterra; Habaguanex-owned Hotel Santa Isabel and Gaviota-owned Hotel Quinta Avenida, which will be re-branded as a Four Points by Sheraton).  Gaviota is controlled by the Revolutionary Armed Forces of the Republic of Cuba.

Bethesda, Maryland-based Marriott International (2015 revenues exceeded US$14 billion) is in discussions with Republic of Cuba government-operated companies to identify properties to manage within the Republic of Cuba.

Seattle, Washington-based Starbucks Corporation (2015 revenues exceeded US$14 billion) has a presence within many branded properties managed by Starwood Hotels & Resorts Worldwide and Marriott International.  While Starbucks will likely seek stand-alone location(s) within the Republic of Cuba, with a focus upon resort properties, there will eventually be operations within hotels- both for retail and foodservice (restaurants, room service, in-room coffee makers, etc.).  Newspapers are sold at Starbucks locations.

Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with more than 1,270 properties in some 100 countries and over 180,000 employees at its owned and managed properties. Starwood is a fully integrated owner, operator and franchisor of hotels, resorts and residences under the renowned brands: St. Regis®, The Luxury Collection®, W®, Design Hotels, Westin®, Le Méridien®, Sheraton®, Four Points® by Sheraton, Aloft®, Element®, and the recently introduced Tribute Portfolio™. The company also boasts one of the industry’s leading loyalty programs, Starwood Preferred Guest (SPG®).

NOTE: The Libertad Act ("Helms-Burton") of 1996 authorizes individuals and companies subject to United States law to engage in direct negotiations with the government of the Republic of Cuba to settle claims registered with the Foreign Claims Settlement Commission under the auspice of the United States Department of Justice.  As a result of a series of mergers and acquisitions during the last fifty-seven years, a US$51,128,927.00 claim initially made by New York-based International Telephone & Telegraph Corporation (ITT) is now controlled by Starwood Hotels and Resorts Worldwide (and, soon, Marriott International), which can use this value as a means to secure opportunities within the Republic of Cuba.

Marriott International, Inc. (NASDAQ: MAR) is a global leading lodging company based in Bethesda, Maryland, USA, with more than 4,300 properties in 85 countries and territories.  Marriott International reported revenues of nearly $14 billion in fiscal year 2014. The company operates and franchises hotels and licenses vacation ownership resorts under 19 brands, including: The Ritz-Carlton®, Bvlgari®, EDITION®, JW Marriott®, Autograph Collection® Hotels, Renaissance® Hotels, Marriott Hotels®, Delta Hotels and Resorts®, Marriott Executive Apartments®, Marriott Vacation Club®, Gaylord Hotels®, AC Hotels by Marriott®, Courtyard®, Residence Inn®, SpringHill Suites®, Fairfield Inn & Suites®, TownePlace Suites®, Protea Hotels® and MoxyHotels®. Marriott has been consistently recognized as a top employer and for its superior business ethics. The company also manages the award-winning guest loyalty program, Marriott Rewards® and The Ritz-Carlton Rewards® program, which together surpass 54 million members.

Expect Starbucks In Cuba.... Including Within Starwood & Marriott Properties

There is little doubt that Seattle, Washington-based Starbucks Corporation (2015 revenues exceeding US$14 billion), will have a presence within properties to be managed in the Republic of Cuba by Stamford, Connecticut-based Starwood Hotels & Resorts Worldwide (2015 revenues exceeded US$5.7 billion) and Bethesda, Maryland-based Marriott International (2015 revenues exceeded US$14 billion).  Starwood Hotels & Resorts Worldwide is being acquired by Marriott International.

Starbucks has a presence within many branded properties managed by Starwood Hotels & Resorts Worldwide and Marriott International.  While Starbucks will certainly seek stand-alone location(s) within the Republic of Cuba, with a focus upon resort properties, there will likely be operations within hotels- both for retail and foodservice (restaurants, room service, in-room coffee makers, etc.).

Starwood Hotels & Resorts Worldwide will be managing three properties in the Republic of Cuba (Gran Caribe-owned Hotel Inglaterra; Habaguanex-owned Hotel Santa Isabel and Gaviota-owned Hotel Quinta Avenida, which will be re-branded as a Four Points by Sheraton).  Gaviota is controlled by the Revolutionary Armed Forces of the Republic of Cuba.

Marriott International is in discussions with Republic of Cuba government-operated companies to identify properties to manage within the Republic of Cuba.

The Libertad Act ("Helms-Burton") of 1996 authorizes individuals and companies subject to United States law to engage in direct negotiations with the government of the Republic of Cuba to settle claims registered with the Foreign Claims Settlement Commission under the auspice of the United States Department of Justice.  As a result of a series of mergers and acquisitions during the last fifty-seven years, a US$51,128,927.00 claim initially made by New York-based International Telephone & Telegraph Corporation (ITT) is now controlled by Starwood Hotels and Resorts Worldwide (and, soon, Marriott International), which can use this value as a means to secure opportunities within the Republic of Cuba.

On 21 March 2000, Starbucks Coffee Company (Nasdaq: SBUX) and Marriott International, Inc. (NYSE: MAR) reported a long-term licensing agreement to open coffeehouse locations in select Marriott Hotels, Resorts and Suites; Marriott Conference Centers; and Renaissance Hotels, Resorts and Suites properties.  “Starbucks and Marriott are a natural fit,” said Jim Alling, senior vice president, Business Alliances for Starbucks. “Both companies are intensely focused on offering unsurpassed customer service, best-of-class products and convenience.”  Under the long-term licensing agreement, fully-branded Starbucks licensed stores, kiosks or carts will open in Marriott International properties across the United States and Canada. The licensed units will offer handcrafted espresso beverages, drip coffee and a selection of freshly baked pastries.  The agreement, which remains in force, allows Starbucks to reach more consumers in a new venue and gives Marriott the ability to offer the leading brand of specialty coffee to their guests. 

Marriott International, Inc. (NASDAQ: MAR) is a global leading lodging company based in Bethesda, Maryland, USA, with more than 4,300 properties in 85 countries and territories.  Marriott International reported revenues of nearly $14 billion in fiscal year 2014. The company operates and franchises hotels and licenses vacation ownership resorts under 19 brands, including: The Ritz-Carlton®, Bvlgari®, EDITION®, JW Marriott®, Autograph Collection® Hotels, Renaissance® Hotels, Marriott Hotels®, Delta Hotels and Resorts®, Marriott Executive Apartments®, Marriott Vacation Club®, Gaylord Hotels®, AC Hotels by Marriott®, Courtyard®, Residence Inn®, SpringHill Suites®, Fairfield Inn & Suites®, TownePlace Suites®, Protea Hotels® and MoxyHotels®. Marriott has been consistently recognized as a top employer and for its superior business ethics. The company also manages the award-winning guest loyalty program, Marriott Rewards® and The Ritz-Carlton Rewards® program, which together surpass 54 million members.

Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with more than 1,270 properties in some 100 countries and over 180,000 employees at its owned and managed properties. Starwood is a fully integrated owner, operator and franchisor of hotels, resorts and residences under the renowned brands: St. Regis®, The Luxury Collection®, W®, Design Hotels, Westin®, Le Méridien®, Sheraton®, Four Points® by Sheraton, Aloft®, Element®, and the recently introduced Tribute Portfolio™. The company also boasts one of the industry’s leading loyalty programs, Starwood Preferred Guest (SPG®).

Semantics Are Important... The Words "Blockade" Versus "Embargo"

The government of the Republic of Cuba uses the word "blockade" to describe the impact of United States laws and regulations and policies.

The government of the United States uses the word "embargo" to describe the impact of United States laws and regulations and policies.

Merriam-Webster Dictionary

Blockade
verb block·ade \blä-ˈkād\

Simple Definition of Blockade:

To place a blockade on (a port or country) : to stop people or supplies from entering or leaving (a port or country) especially during a war

Full Definition of blockade

block·ad·ed or block·ad·ing

Transitive verb

To subject to a blockade

Block, obstruct

block·ad·er noun

Embargo
noun em·bar·go \im-ˈbär-(ˌ)gō\

Simple Definition of embargo

A government order that limits trade in some way

Full Definition of embargo

plural em·bar·goes

An order of a government prohibiting the departure of commercial ships from its ports

A legal prohibition on commerce <a trade embargo>

Stoppage, impediment; especially :  prohibition <I lay no embargo on anybody's words — Jane Austen>

An order by a common carrier or public regulatory agency prohibiting or restricting freight transportation

 

 

Interesting Remarks By President Obama During His Visit To Argentina

Remarks on 23 March 2016 by President Barack Obama during his visit to Argentina

"And I think one of the great things about America -- and I said this in Cuba -- is we actually engage in a lot of self-criticism."

"The one thing that I will say is true, though, is that everything we do today is designed to take into account transparency, human rights, to speak out on behalf of those issues.  Even where we don’t feel that we can force changes on a government, we're still going to speak out about them.  So I made a historic trip to Havana, and I said the people of Cuba have nothing to fear from me, but you should know what I really believe.  I believe that democracy is better than a one-party or one-person dictatorship.  I believe in freedom of speech and freedom of assembly, and that people shouldn’t be arbitrarily detained."

"And I said this to President Castro in Cuba.  I said, look, you've made great progress in educating young people.  Every child in Cuba gets a basic education -- that's a huge improvement from where it was.  Medical care -- the life expectancy of Cubans is equivalent to the United States, despite it being a very poor country, because they have access to health care.  That's a huge achievement.  They should be congratulated.  But you drive around Havana and you say this economy is not working.  It looks like it did in the 1950s.  And so you have to be practical in asking yourself how can you achieve the goals of equality and inclusion, but also recognize that the market system produces a lot of wealth and goods and services.  And it also gives individuals freedom because they have initiative."

VIP Services At Jose Marti International Airport

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LINK TO DETAILS IN PDF FORMAT

 

President Obama's Speech In Havana, Cuba

REMARKS BY PRESIDENT OBAMA
TO THE PEOPLE OF CUBA
Gran Teatro de la Habana
Havana, Cuba
10:10 A.M. CST

PRESIDENT OBAMA:  Thank you.  (Applause.)  Muchas gracias.  Thank you so much.  Thank you very much.

President Castro, the people of Cuba, thank you so much for the warm welcome that I have received, that my family have received, and that our delegation has received.  It is an extraordinary honor to be here today.

Before I begin, please indulge me.  I want to comment on the terrorist attacks that have taken place in Brussels.  The thoughts and the prayers of the American people are with the people of Belgium.  We stand in solidarity with them in condemning these outrageous attacks against innocent people.  We will do whatever is necessary to support our friend and ally, Belgium, in bringing to justice those who are responsible.  And this is yet another reminder that the world must unite, we must be together, regardless of nationality, or race, or faith, in fighting against the scourge of terrorism.  We can -- and will -- defeat those who threaten the safety and security of people all around the world.

To the government and the people of Cuba, I want to thank you for the kindness that you’ve shown to me and Michelle, Malia, Sasha, my mother-in-law, Marian.

“Cultivo una rosa blanca.”  (Applause.)  In his most famous poem, Jose Marti made this offering of friendship and peace to both his friend and his enemy.  Today, as the President of the United States of America, I offer the Cuban people el saludo de paz.  (Applause.)

Havana is only 90 miles from Florida, but to get here we had to travel a great distance -- over barriers of history and ideology; barriers of pain and separation.  The blue waters beneath Air Force One once carried American battleships to this island -- to liberate, but also to exert control over Cuba.  Those waters also carried generations of Cuban revolutionaries to the United States, where they built support for their cause.  And that short distance has been crossed by hundreds of thousands of Cuban exiles -- on planes and makeshift rafts -- who came to America in pursuit of freedom and opportunity, sometimes leaving behind everything they owned and every person that they loved.

Like so many people in both of our countries, my lifetime has spanned a time of isolation between us.  The Cuban Revolution took place the same year that my father came to the United States from Kenya.  The Bay of Pigs took place the year that I was born. The next year, the entire world held its breath, watching our two countries, as humanity came as close as we ever have to the horror of nuclear war.  As the decades rolled by, our governments settled into a seemingly endless confrontation, fighting battles through proxies.  In a world that remade itself time and again, one constant was the conflict between the United States and Cuba.

I have come here to bury the last remnant of the Cold War in the Americas.  (Applause.)  I have come here to extend the hand of friendship to the Cuban people.  (Applause.)  
I want to be clear:  The differences between our governments over these many years are real and they are important.  I’m sure President Castro would say the same thing -- I know, because I’ve heard him address those differences at length.  But before I discuss those issues, we also need to recognize how much we share.  Because in many ways, the United States and Cuba are like two brothers who’ve been estranged for many years, even as we share the same blood.

We both live in a new world, colonized by Europeans.  Cuba, like the United States, was built in part by slaves brought here from Africa.  Like the United States, the Cuban people can trace their heritage to both slaves and slave-owners.  We’ve welcomed both immigrants who came a great distance to start new lives in the Americas.

Over the years, our cultures have blended together.       Dr. Carlos Finlay’s work in Cuba paved the way for generations of doctors, including Walter Reed, who drew on Dr. Finlay’s work to help combat Yellow Fever.  Just as Marti wrote some of his most famous words in New York, Ernest Hemingway made a home in Cuba, and found inspiration in the waters of these shores. 

We share a national past-time -- La Pelota -- and later today our players will compete on the same Havana field that Jackie Robinson played on before he made his Major League debut.  (Applause.)  And it's said that our greatest boxer, Muhammad Ali, once paid tribute to a Cuban that he could never fight -- saying that he would only be able to reach a draw with the great Cuban, Teofilo Stevenson.  (Applause.)  

So even as our governments became adversaries, our people continued to share these common passions, particularly as so many Cubans came to America.  In Miami or Havana, you can find places to dance the Cha-Cha-Cha or the Salsa, and eat ropa vieja.  People in both of our countries have sung along with Celia Cruz or Gloria Estefan, and now listen to reggaeton or Pitbull.  (Laughter.)  Millions of our people share a common religion -- a faith that I paid tribute to at the Shrine of our Lady of Charity in Miami, a peace that Cubans find in La Cachita.

For all of our differences, the Cuban and American people share common values in their own lives.  A sense of patriotism and a sense of pride -- a lot of pride.  A profound love of family.  A passion for our children, a commitment to their education.  And that's why I believe our grandchildren will look back on this period of isolation as an aberration, as just one chapter in a longer story of family and of friendship.

But we cannot, and should not, ignore the very real differences that we have -- about how we organize our governments, our economies, and our societies.  Cuba has a one-party system; the United States is a multi-party democracy.  Cuba has a socialist economic model; the United States is an open market.  Cuba has emphasized the role and rights of the state; the United States is founded upon the rights of the individual.

Despite these differences, on December 17th 2014, President Castro and I announced that the United States and Cuba would begin a process to normalize relations between our countries.  (Applause.)  Since then, we have established diplomatic relations and opened embassies.  We've begun initiatives to cooperate on health and agriculture, education and law enforcement.  We've reached agreements to restore direct flights and mail service.  We've expanded commercial ties, and increased the capacity of Americans to travel and do business in Cuba.

And these changes have been welcomed, even though there are still opponents to these policies.  But still, many people on both sides of this debate have asked:  Why now?  Why now?

There is one simple answer:  What the United States was doing was not working.  We have to have the courage to acknowledge that truth.  A policy of isolation designed for the Cold War made little sense in the 21st century.  The embargo was only hurting the Cuban people instead of helping them.  And I've always believed in what Martin Luther King, Jr. called “the fierce urgency of now” -- we should not fear change, we should embrace it.  (Applause.)  

That leads me to a bigger and more important reason for these changes:  Creo en el pueblo Cubano.  I believe in the Cuban people.  (Applause.)  This is not just a policy of normalizing relations with the Cuban government.  The United States of America is normalizing relations with the Cuban people.  (Applause.)

And today, I want to share with you my vision of what our future can be.  I want the Cuban people -- especially the young people -- to understand why I believe that you should look to the future with hope; not the false promise which insists that things are better than they really are, or the blind optimism that says all your problems can go away tomorrow.  Hope that is rooted in the future that you can choose and that you can shape, and that you can build for your country.  

I'm hopeful because I believe that the Cuban people are as innovative as any people in the world.

In a global economy, powered by ideas and information, a country’s greatest asset is its people.  In the United States, we have a clear monument to what the Cuban people can build: it’s called Miami.  Here in Havana, we see that same talent in cuentapropistas, cooperatives and old cars that still run.  El Cubano inventa del aire.  (Applause.)  

Cuba has an extraordinary resource -- a system of education which values every boy and every girl.  (Applause.)  And in recent years, the Cuban government has begun to open up to the world, and to open up more space for that talent to thrive.  In just a few years, we've seen how cuentapropistas can succeed while sustaining a distinctly Cuban spirit.  Being self-employed is not about becoming more like America, it’s about being yourself.

Look at Sandra Lidice Aldama, who chose to start a small business.  Cubans, she said, can “innovate and adapt without losing our identity…our secret is in not copying or imitating but simply being ourselves.”

Look at Papito Valladeres, a barber, whose success allowed him to improve conditions in his neighborhood.  “I realize I’m not going to solve all of the world’s problems,” he said.  “But if I can solve problems in the little piece of the world where I live, it can ripple across Havana.”
That’s where hope begins -- with the ability to earn your own living, and to build something you can be proud of.  That’s why our policies focus on supporting Cubans, instead of hurting them.  That’s why we got rid of limits on remittances -- so ordinary Cubans have more resources.  That’s why we’re encouraging travel -- which will build bridges between our people, and bring more revenue to those Cuban small businesses. That’s why we’ve opened up space for commerce and exchanges -- so that Americans and Cubans can work together to find cures for diseases, and create jobs, and open the door to more opportunity for the Cuban people.

As President of the United States, I’ve called on our Congress to lift the embargo.  (Applause.)  It is an outdated burden on the Cuban people.  It's a burden on the Americans who want to work and do business or invest here in Cuba.  It's time to lift the embargo.  But even if we lifted the embargo tomorrow, Cubans would not realize their potential without continued change here in Cuba.  (Applause.)  It should be easier to open a business here in Cuba.  A worker should be able to get a job directly with companies who invest here in Cuba.  Two currencies shouldn’t separate the type of salaries that Cubans can earn.  The Internet should be available across the island, so that Cubans can connect to the wider world -- (applause) -- and to one of the greatest engines of growth in human history.

There’s no limitation from the United States on the ability of Cuba to take these steps.  It’s up to you.  And I can tell you as a friend that sustainable prosperity in the 21st century depends upon education, health care, and environmental protection.  But it also depends on the free and open exchange of ideas.  If you can’t access information online, if you cannot be exposed to different points of view, you will not reach your full potential.  And over time, the youth will lose hope.

I know these issues are sensitive, especially coming from an American President.  Before 1959, some Americans saw Cuba as something to exploit, ignored poverty, enabled corruption.  And since 1959, we’ve been shadow-boxers in this battle of geopolitics and personalities.  I know the history, but I refuse to be trapped by it.  (Applause.)  

I’ve made it clear that the United States has neither the capacity, nor the intention to impose change on Cuba.  What changes come will depend upon the Cuban people.  We will not impose our political or economic system on you.  We recognize that every country, every people, must chart its own course and shape its own model.  But having removed the shadow of history from our relationship, I must speak honestly about the things that I believe -- the things that we, as Americans, believe.  As Marti said, “Liberty is the right of every man to be honest, to think and to speak without hypocrisy.”

So let me tell you what I believe.  I can't force you to agree, but you should know what I think.  I believe that every person should be equal under the law. (Applause.)  Every child deserves the dignity that comes with education, and health care and food on the table and a roof over their heads.  (Applause.)  I believe citizens should be free to speak their mind without fear -- (applause) -- to organize, and to criticize their government, and to protest peacefully, and that the rule of law should not include arbitrary detentions of people who exercise those rights.  (Applause.)  I believe that every person should have the freedom to practice their faith peacefully and publicly. (Applause.)  And, yes, I believe voters should be able to choose their governments in free and democratic elections.  (Applause.)  

Not everybody agrees with me on this.  Not everybody agrees with the American people on this.  But I believe those human rights are universal.  (Applause.)  I believe they are the rights of the American people, the Cuban people, and people around the world.

Now, there’s no secret that our governments disagree on many of these issues.  I’ve had frank conversations with President Castro.  For many years, he has pointed out the flaws in the American system -- economic inequality; the death penalty; racial discrimination; wars abroad.  That’s just a sample.  He has a much longer list.  (Laughter.)  But here’s what the Cuban people need to understand:  I welcome this open debate and dialogue. It’s good.  It’s healthy.  I’m not afraid of it.

We do have too much money in American politics.  But, in America, it's still possible for somebody like me -- a child who was raised by a single mom, a child of mixed race who did not have a lot of money -- to pursue and achieve the highest office in the land.  That's what’s possible in America.  (Applause.)  

We do have challenges with racial bias -- in our communities, in our criminal justice system, in our society -- the legacy of slavery and segregation.  But the fact that we have open debates within America’s own democracy is what allows us to get better.  In 1959, the year that my father moved to America, it was illegal for him to marry my mother, who was white, in many American states.  When I first started school, we were still struggling to desegregate schools across the American South.  But people organized; they protested; they debated these issues; they challenged government officials.  And because of those protests, and because of those debates, and because of popular mobilization, I’m able to stand here today as an African-American and as President of the United States.  That was because of the freedoms that were afforded in the United States that we were able to bring about change.  

I’m not saying this is easy.  There’s still enormous problems in our society.  But democracy is the way that we solve them.  That's how we got health care for more of our people.  That's how we made enormous gains in women’s rights and gay rights.  That's how we address the inequality that concentrates so much wealth at the top of our society.  Because workers can organize and ordinary people have a voice, American democracy has given our people the opportunity to pursue their dreams and enjoy a high standard of living.  (Applause.)  

Now, there are still some tough fights.  It isn’t always pretty, the process of democracy.   It's often frustrating.  You can see that in the election going on back home.  But just stop and consider this fact about the American campaign that's taking place right now.  You had two Cuban Americans in the Republican Party, running against the legacy of a black man who is President, while arguing that they’re the best person to beat the Democratic nominee who will either be a woman or a Democratic Socialist.  (Laughter and applause.)  Who would have believed that back in 1959?  That's a measure of our progress as a democracy.  (Applause.)  

So here’s my message to the Cuban government and the Cuban people:  The ideals that are the starting point for every revolution -- America’s revolution, Cuba’s revolution, the liberation movements around the world -- those ideals find their truest expression, I believe, in democracy.  Not because American democracy is perfect, but precisely because we’re not.  And we -- like every country -- need the space that democracy gives us to change.  It gives individuals the capacity to be catalysts to think in new ways, and to reimagine how our society should be, and to make them better.

There’s already an evolution taking place inside of Cuba, a generational change.  Many suggested that I come here and ask the people of Cuba to tear something down -- but I’m appealing to the young people of Cuba who will lift something up, build something new.  (Applause.)  El future de Cuba tiene que estar en las manos del pueblo Cubano.  (Applause.)   

And to President Castro -- who I appreciate being here today -- I want you to know, I believe my visit here demonstrates you do not need to fear a threat from the United States.  And given your commitment to Cuba’s sovereignty and self-determination, I am also confident that you need not fear the different voices of the Cuban people -- and their capacity to speak, and assemble, and vote for their leaders.  In fact, I’m hopeful for the future because I trust that the Cuban people will make the right decisions.

And as you do, I’m also confident that Cuba can continue to play an important role in the hemisphere and around the globe -- and my hope is, is that you can do so as a partner with the United States.

We’ve played very different roles in the world.  But no one should deny the service that thousands of Cuban doctors have delivered for the poor and suffering.  (Applause.)  Last year, American health care workers -- and the U.S. military -- worked side-by-side with Cubans to save lives and stamp out Ebola in West Africa.  I believe that we should continue that kind of cooperation in other countries.

We’ve been on the different side of so many conflicts in the Americas.  But today, Americans and Cubans are sitting together at the negotiating table, and we are helping the Colombian people resolve a civil war that’s dragged on for decades.  (Applause.)  That kind of cooperation is good for everybody.  It gives everyone in this hemisphere hope.

We took different journeys to our support for the people of South Africa in ending apartheid.  But President Castro and I could both be there in Johannesburg to pay tribute to the legacy of the great Nelson Mandela.  (Applause.)  And in examining his life and his words, I'm sure we both realize we have more work to do to promote equality in our own countries -- to reduce discrimination based on race in our own countries.  And in Cuba, we want our engagement to help lift up the Cubans who are of African descent -- (applause) -- who’ve proven that there’s nothing they cannot achieve when given the chance.

We’ve been a part of different blocs of nations in the hemisphere, and we will continue to have profound differences about how to promote peace, security, opportunity, and human rights.  But as we normalize our relations, I believe it can help foster a greater sense of unity in the Americas -- todos somos Americanos.  (Applause.)    

From the beginning of my time in office, I’ve urged the people of the Americas to leave behind the ideological battles of the past.  We are in a new era.  I know that many of the issues that I’ve talked about lack the drama of the past.  And I know that part of Cuba’s identity is its pride in being a small island nation that could stand up for its rights, and shake the world. But I also know that Cuba will always stand out because of the talent, hard work, and pride of the Cuban people.  That's your strength.  (Applause.)  Cuba doesn’t have to be defined by being against the United States, any more than the United States should be defined by being against Cuba.  I'm hopeful for the future because of the reconciliation that’s taking place among the Cuban people.

I know that for some Cubans on the island, there may be a sense that those who left somehow supported the old order in Cuba.  I'm sure there’s a narrative that lingers here which suggests that Cuban exiles ignored the problems of pre-Revolutionary Cuba, and rejected the struggle to build a new future.  But I can tell you today that so many Cuban exiles carry a memory of painful -- and sometimes violent -- separation.  They love Cuba.  A part of them still considers this their true home. That’s why their passion is so strong.  That's why their heartache is so great.  And for the Cuban American community that I’ve come to know and respect, this is not just about politics. This is about family -- the memory of a home that was lost; the desire to rebuild a broken bond; the hope for a better future the hope for return and reconciliation.

For all of the politics, people are people, and Cubans are Cubans.  And I’ve come here -- I’ve traveled this distance -- on a bridge that was built by Cubans on both sides of the Florida Straits.  I first got to know the talent and passion of the Cuban people in America.  And I know how they have suffered more than the pain of exile -- they also know what it’s like to be an outsider, and to struggle, and to work harder to make sure their children can reach higher in America.

So the reconciliation of the Cuban people -- the children and grandchildren of revolution, and the children and grandchildren of exile -- that is fundamental to Cuba’s future.  (Applause.)  
You see it in Gloria Gonzalez, who traveled here in 2013 for the first time after 61 years of separation, and was met by her sister, Llorca.  “You recognized me, but I didn’t recognize you,” Gloria said after she embraced her sibling.  Imagine that, after 61 years.

You see it in Melinda Lopez, who came to her family’s old home.  And as she was walking the streets, an elderly woman recognized her as her mother’s daughter, and began to cry.  She took her into her home and showed her a pile of photos that included Melinda’s baby picture, which her mother had sent 50 years ago.  Melinda later said, “So many of us are now getting so much back.”

You see it in Cristian Miguel Soler, a young man who became the first of his family to travel here after 50 years.  And meeting relatives for the first time, he said, “I realized that family is family no matter the distance between us.”

Sometimes the most important changes start in small places. The tides of history can leave people in conflict and exile and poverty.  It takes time for those circumstances to change.  But the recognition of a common humanity, the reconciliation of people bound by blood and a belief in one another -- that’s where progress begins.  Understanding, and listening, and forgiveness. And if the Cuban people face the future together, it will be more likely that the young people of today will be able to live with dignity and achieve their dreams right here in Cuba.   

The history of the United States and Cuba encompass revolution and conflict; struggle and sacrifice; retribution and, now, reconciliation.  It is time, now, for us to leave the past behind.  It is time for us to look forward to the future together -- un future de esperanza.  And it won’t be easy, and there will be setbacks.  It will take time.  But my time here in Cuba renews my hope and my confidence in what the Cuban people will do.  We can make this journey as friends, and as neighbors, and as family -- together.  Si Senate puede.  Muchas gracias.  (Applause.)

END
10:48 A.M. CST      

US$800+ Million Potential Savings/Revenues For Cuba From Obama Administration Initiatives

US$800+ Million Potential Savings/Revenues For Cuba From Obama Administration Initiatives
The consequences of decreasing risk.

17 December 2014 through 17 December 2016

When Presidents Obama and Castro announced in 2014 that the countries would re-establish diplomatic relations, a result was a decrease for the Republic of Cuba to the cost of conducting international commerce.  

In 2015, when the United States removed the Republic of Cuba from the Sanctions List and the respective embassies were re-opened, a result was a decrease for the Republic of Cuba to the cost of conducting international commerce.  

In 2016, when the United States authorized the Republic of Cuba to use the United States Dollar for international transactions, a result was a decrease for the Republic of Cuba in the cost of conducting commerce.  

Prior to the March 2016 change relating to use of the United States Dollar, a transaction valued, for example, at US$50 million could be subject to financial institution fees ranging 25 basis points to 300 basis points, translating into US$175,000.00 to US$1.5 million.  With the Republic of Cuba having approximately US$13 billion in imports for 2015, the potential fees could have ranged from US$32.5 million to US$390 million.   

NOTE: A basis point is a unit of measure used in finance to describe the percentage change in the value or rate of a financial instrument. One basis point is equivalent to 0.01% (1/100th of a percent) or 0.0001 in decimal form. In most cases, it refers to changes in interest rates and bond yields.

The Republic of Cuba has become less operationally unprofitable due to initiatives by the Obama Administration.  

This unprofitability continues to lessen as a result of the increase in authorized and unauthorized travelers, excluding family visits, from the United States visiting the Republic of Cuba and spending on airfares, accommodations (hotels and private homes), ground transportation, meals, gratuities, communications, sundries, souvenirs and other purchases.  

Visitors from the United States have the highest gross revenues and highest net profit margin of any visitor to the Republic of Cuba.

For 2015, gross revenues from United States visitors (non-family) were estimated at US$350 million to US$400 million.  The government of the Republic of Cuba reported 161,000 visitors (non-family) from the United States in 2015, representing a 76.6% increase in visitors (non-family) compared to 2014.  

In 2016, with an expected percentage increase in visitors at minimum matching 2015. gross revenues from visitors (non-family) from the United States may exceed US$660 million.  

With the arrival of regularly-scheduled air services, expected operational by July 2016, the government of the Republic of Cuba will have a meaningful reduction of ticket revenues with the substantial reduction of charter operations, from which it received a significant percentage from each ticket.  This loss of revenue from airline tickets will be more than compensated for by an increase in the number of visitors to the Republic of Cuba.   

The 10% fee to convert United States currency into CUC (Cuba Convertible Currency), initiated in 2004, is terminating; resulting in a loss to the government of the Republic of Cuba of approximately US$100 million to US$200 million.

What has the Republic of Cuba done with the monies earned as a direct result of initiatives created by the Obama Administration?  

What will the Republic of Cuba do with the monies expected to be earned as a direct result of initiatives created by the Obama Administration?

It has not increased imports from the United States.  Food product/agricultural commodity purchases authorized by the Trade Sanctions Reform and Export Enhancement Act (TSREEA) of 2000 decreased 41% in 2015 compared to 2014; and decreased 8% in January 2016 compared to January 2015.  Healthcare product purchases authorized by the Cuban Democracy Act of 1992 increased approximately five-fold in 2015 compared to 2014.

In 2002, the primary wire services, Associated Press and Reuters, would generally publish an article within hours of the release of data for United States exports to the Republic of Cuba.  During the last fifteen years, wire services transitioned to publishing quarterly results…. then transitioned to bi-annual results… and finally to only publishing annual results.  In some respects, the lack of interest was a positive- another recognition of the Republic of Cuba taking its proper place within the marketplace.

The 41% decline in United States exports to the Republic of Cuba in 2015 should have, simply due to the size of the decrease, gained national media attention.  However, the decline generated scant reference.  Why?  Because the dynamic of interest has been altered- there is an expectation of decline and a decline in expectation.  The media story would be if there were an increase.  There has been an anesthetization to the anticipation of decline.

The government of the Republic of Cuba is authorizing Obama Administration initiatives that are expected to result in revenues- from visitors: agreements with United States-based hospitality companies to manage properties in the Republic of Cuba are designed to increase the interest by United States residents to visit the country, citizens of other countries to visit, to increase the desire by non-United States-based hospitality companies and, for those companies who are already there, pressure to increase their level of service, expand their operational footprint, and provide more revenue to the government of the Republic of Cuba.

There is also an effort by the government of the Republic of Cuba to encourage, either officially (through law or regulation) or unofficially (lack of enforcement of law or regulation), remittances to Republic of Cuba nationals from family and friends residing in the United States.

There will not be enthusiasm for using funds to make payments for imports from the United States… unless there is a belief that such investments of scarce resources (meaning that someone may not receive payment on time or at all in order to direct funds towards the United States) will have political value.