Are Cruises To Cuba Popular? 434,000 Passengers May Pay US$585 Million To Find Out

As Of 11 July 2017, The Three Largest United States Cruise Lines Could For 2017/2018/2019:

Deliver 434,000 Passengers To Cuba

272 Sailings To Cuba

US$585 Million In Gross Revenues To The Companies

US$60 Million Spent In Cuba By Passengers

US$17 Million In Port Fees To Cuba

And, transporting, housing, and feeding those potential passengers could mean an additional US$125+ Million to United States airlines and US$55+ million to hotels and restaurants located in South Florida.  Gross United States airline revenues for 2017, excluding the cruise-related revenues, are projected to be US$172 million for United States-Republic of Cuba routes.

The three (3) largest United States-based cruise lines have announced more than 272 itineraries amongst their brands for the 2017, 2018 and 2019 sailing seasons which include the Republic of Cuba.  Additional itineraries are expected to be announced.  And, smaller cruise lines are also operating in the Republic of Cuba marketplace.   

Miami, Florida-based Norwegian Cruise Lines Holdings Ltd

Miami, Florida-based Carnival Corporation & plc

Miami, Florida-based Royal Caribbean Cruises Ltd

In 2016, the three cruise lines combined operated a fleet of approximately 144 vessels, managed approximately 14 brands, earned approximately US$28.8 billion in gross revenues, and employed approximately 218,000 men and women.

If each vessel sails at capacity, a total of more than 434,000 passengers will visit the Republic of Cuba from 2017 through 2019.

The gross revenues to the cruise lines from the 272 Republic of Cuba sailings would be projected to exceed US$585 million from 2017 through 2019.

The 434,000 passengers would be projected to spend approximately US$60 million while in the Republic of Cuba [approximately US$140.00 per person in expenditures and organized/non-organized excursions including cost(s) for tour(s), meals (government-operated and privately-operated), ground transportation (privately-operated classic car tours), sundries and souvenirs (including spirits, coffee, tobacco, artwork and crafts)].  Some passengers could spend considerably more (cigars for example) given the United States duty-free personal exemption of US$800 per person.  

Vessel port charges in the Republic of Cuba may exceed US$17 million, ranging up to approximately US$79,000.00 for the largest vessels (684-passenger to 2,052-passenger).

Complete Analysis In PDF Format

Memo From NSC To POTUS: This Week For Title III Suspension; Capitulate, Incapacitate or Negotiate?

Will NSC Side With State, Treasury, Justice, Or DOJ On Title III
Will HR McMaster Enable Or Render Impotent The Negotiator-In-Chief
HR McMaster Can Preserve Of Obliterate President Trump’s Ability To Negotiate
They Voted For Him And Now Want to Incapacitate Him
He Was Elected To Disrupt The Status Quo; Enabling Title III Would Preserve It
A New Polemic On Executive Branch Authority

TO:      The Honorable
             Lt. General H.R. McMaster
             Assistant to the President for National Security Affairs
             The White House
             Washington, DC

DATE: 11 July 2017

RE:      Decision Soon For Suspension Of Title III Of The Cuban Liberty And Democratic Solidarity Act of 1996

This week, the Trump Administration will determine whether to continue a suspension of Title III of the Cuban Liberty and Democratic Solidarity Act of 1996 (“Libertad” or “Helms-Burton”). Codified in Title 22, Sections 6021-6091 of the U.S. Code. P.L. 104-114. 

What is Title III?A provision that permits lawsuits to be filed in United States Federal Courts by individuals and companies who have claims against the government of the Republic of Cuba, and specifically against those deemed to be “trafficking” or making use of the asset upon which there is a claim. However, the filings would not be limited to the 5,913 certified claimants- filings could be made by almost anyone including individuals who are Cuban but unborn when their parents or grandparents’ assets were expropriated by the government of the Republic of Cuba. Stated simply, what was focused upon 5,913 could quickly become hundreds of thousands or millions.

From the text of the statute: "(2) Additional suspensions.--The President may suspend the effective date under subsection (a) for additional periods of not more than 6 months each, each of which shall begin on the day after the last day of the period during which a suspension is in effect under this subsection, if the President determines and reports in writing to the appropriate congressional committees at least 15 days before the date on which the additional suspension is to begin that the suspension is necessary to the national interests of the United States and will expedite a transition to democracy in Cuba."

On 5 January 2017, The Honorable John F. Kerry, then-United States Secretary of State, signed the most recent suspension. The next suspension would be implemented in August 2017. Since the inception of the statute in 1996, each occupant of the Oval Office has signed a suspension. The President may rescind a suspension at any time.

There are four (4) principal reasons to advise The Honorable Donald J. Trump, President of the United States, to suspend Title III of the Cuban Liberty and Democratic Solidarity Act of 1996:

First, the Trump Administration Initiatives announced on 16 June 2017 are not operational, thus their impact, positive or negative, may not yet be assessed. The regulations and lists to be issued by the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury, the Bureau of Industry and Security (BIS) of the United States Department of Commerce, and the United States Department of State are not complete and are not to be activated until 15 September 2017.

Second, the continuing suspension of Title III can provide both focus and pressure upon the United States and the Republic of Cuba to reach a settlement to compensate the 5,913 claims certified by the United States Foreign Claims Settlement Commission (USFCSC) under the auspice of the United States Department of Justice. The certified claims are valued without interest at US$1,902,202,284.95 and with interest at approximately US$8 billion. Of the 5,913 claims certified by the USFCSC, thirty (30) companies account for approximately 57% of the value without interest. An important point of history: the foundation of “the embargo” rests upon the seizure without compensation by the government of the Republic of Cuba of an oil refinery owned by a United States company.  

As you know, the Obama Administration deemed a resolution of the certified claims as a “top priority,” but had only two (2) discussions (not negotiations) with representatives of the government of the Republic of Cuba in 2,923 days (766 days if calculated from 17 December 2014); this was woefully inadequate. President Trump can correct this failure of leadership.

Third, the continuing suspension of Title III will preserve for President Trump his ability to negotiate a settlement on behalf of the 5,913 certified claimants- United States citizens and United States companies. Any effort to constrain the President from directly or indirectly guiding his negotiating team erodes the unique powers of the Executive Branch to conduct foreign policy. And, negotiating a settlement based upon US$1.9 billion or US$8 billion is far less complicated than attempting to bridge restitution for what could approach US$100 billion or more by those who do not have certified claims if Title III is enabled.

Fourth, if Title III is not suspended there would not only be a disruption to the ability of President Trump to negotiate a settlement on behalf of the certified claimants during his first term, but the disruption would extend through his second term and through the terms of his successors. The reason would be potentially hundreds of thousands of claims that would become eligible to be heard by United States Federal Courts. Most impactful, is Title III prohibits the dismissal of claims proceedings in United States Federal Courts once they are filed. As most of the proceedings would be filed in the State of Florida, the impact upon the judicial process would be substantial, crippling; and would result in more non-related significant cases being delayed from adjudication.

Those who support the use of Title III have a singular goal- prevent, potentially in perpetuity, a resolution on behalf of the certified claimants. They would prohibit President Trump from engaging his DNA- to negotiate a deal. And, this prohibition would not solely be for the remaining 1,289 days of President Trump’s first term, nor the 1,460 days of this second term… it would likely be in perpetuity as the current and future government of the Republic of Cuba would never have the financial capacity to absorb the judgments issued by United States Federal Courts- even if they were inclined to do so.

Recommendation:

Unlike his predecessors, President Trump should issue a sharply-worded conditional signing statement in conjunction with a further six-month suspension of Title III.

The signing statement should create a twelve-month “window of opportunity” within which National Security Council (NSC) staff would engage directly with representatives of the thirty (30) certified claimants with the largest values of assets expropriated without compensation. Potentially, a third-party United States-based negotiator could be retained to represent the interests of the certified claimants to the government of the Republic of Cuba.

If an agreement with the government of the Republic of Cuba is concluded by the end of the twelve-month period, the Trump Administration would remove remaining financial regulations under the auspice of the OFAC and BIS which impact the government of the Republic of Cuba.

Blog Post Links:

http://kavulich-john.squarespace.com/blog/2017/2/6/update-on-title-three-suspension-of-libertad-act-helms-burton

http://www.cubatrade.org/blog/2017/1/12/h2uudthnn6be8hfgxifqsrdo4aqpb0?rq=claims

Complete Analysis In PDF Format

Norwegian Cruise Lines Adds 27 Sailings Including Cuba In 2018; Potential For 52,272 Passengers

Norwegian Cruise Line Enhances Summer 2018 Deployment In Alaska And The Caribbean

Norwegian Sun to become second Norwegian ship to offer all-inclusive cruises to Cuba and the Bahamas from Port Canaveral and guest favorite Norwegian Jewel will cruise Alaska in the summer 2018 season

Miami, Florida, U.S. - Jul 10, 2017
 
Norwegian Cruise Line today announced updates to the their summer 2018 deployment, featuring exciting new opportunities for guests to set sail to their dream destinations, while unpacking just once and enjoying the most free and flexible cruising experience at sea. New for 2018, Norwegian Sun will reposition to Port Canaveral and offer all-inclusive four day cruises to Havana, Cuba and Key West, and three-day cruises to the Bahamas. Norwegian Jewel will rejoin the youngest fleet sailing to Alaska in summer 2018, with a multitude of exciting itineraries including seven- and nine-day sailings from Seattle, Seward and Vancouver. 

“Alaska continues to be one of the most popular destinations we sail to around the world. We are thrilled to be significantly increasing capacity in the region in summer 2018 with the redeployment of Norwegian Jewel and the inaugural season for Norwegian Bliss, providing more opportunities for our guests to experience a vacation of a lifetime in this incredible pristine destination,” said Andy Stuart, president and chief executive officer for Norwegian Cruise Line. “Our all-inclusive model aboard Norwegian Sky has been very well-received and as we evaluated the opportunity to expand upon that concept, we felt that Port Canaveral was the ideal location to offer our guests a value-rich on board experience and exciting action-packed ports-of-call, including an overnight call in Havana, Cuba.”

Following her fall/winter season in South America and a dry dock enhancement, Norwegian Sun will spend her summer 2018 season sailing all-inclusive cruises from Port Canaveral, offering four-day itineraries that call on Key West and Havana, Cuba, along with three-day cruises to the Bahamas. Norwegian Sun accommodates 1,936 guests, providing freedom, flexibility and superior guest service with 16 dining options, 12 bars and lounges, entertainment options for all ages and more. All guests sailing aboard one of Norwegian Sun’s Cuba or Bahamas cruises from Port Canaveral will also enjoy unlimited complimentary beverages included in their cruise fare as a part of the ship’s all-inclusive program. Norwegian Sun’s new itineraries include the following: 

•Norwegian Sun will undergo a two-and-a-half week dry dock in Victoria, British Columbia as a part of the Norwegian Edge™, the brand’s revitalization program encompassing the entire guest experience, and re-enter service on April 19, 2018 where she will begin her journey to the east coast with a 17-day Panama Canal cruise departing from Seattle.  

•Norwegian Sun’s four-day cruises to Cuba will depart Port Canaveral each Monday, beginning May 7, 2018, and feature a call on Key West, Florida and an overnight stay in Havana, returning to Port Canaveral each Friday. Norwegian Sun will transport guests to the heart of the action in both Key West and Havana, calling in Key West’s Old Town district and Havana Harbor, located in the heart of  Old Havana, a UNESCO World Heritage site. Norwegian Sun will offer guests the opportunity to experience the wonderful culture and incredible history of Cuba, along with the warmth and friendliness of the Cuban people during OFAC-compliant* shore excursions. 

U.S. Companies Impeded By The Perils Of Cuba's Ideological Brake-Pad

The Perils Of The Ideological Brake Pad
U.S. Companies Are Unnaturally Constrained
Commercial Malpractice
5 Titans Of Failure
Role Of Trustee

Representatives of the Government of the Republic of Cuba continue to regale audiences throughout the United States and in other countries with narratives of overwhelming desire by companies throughout the world to engage with the Republic of Cuba.

Unfortunately, there are too few corresponding narratives provided by the government of the Republic of Cuba to illustrate commensurate engagement and, specifically, desire becoming reality.  Companies have wanted to do more than the government of the Republic of Cuba has wanted them to do. 

The list of companies, including those within the United States, who want to export to, import from, provide services for, and invest within the Republic of Cuba is reported ever-increasing; the Ministry of Foreign Affairs (MINREX) and Ministry of Foreign Trade (MINCEX) offer they are inundated with proposals so much so that telephone calls (and voice mail) and correspondence (letters, emails, text messages) do not receive prompt responses- or a response.  

For most governments, an enviable challenge; for the government of the Republic of Cuba the activity represents a potentially harmful velocity by an ideologically-masked vehicle whose ultimate destination may be unknown, but whose ultimate result is certain: disruption and change; each unalterable.

If there are so many desirous, why has the number of United States companies with agreements to export to, import from, provide services for, and create direct investments within the Republic of Cuba remained unnaturally constrained?  

Since 17 December 2014, approximately fifty (50) United States companies have an operational presence (no direct foreign investment (DFI)) in the Republic of Cuba: The companies are primarily focused within the travel sector (supporting visitors from the United States who have the highest net-profit margin for any visitor to the Republic of Cuba) and further still focused upon bringing revenues to the Republic of Cuba.  Some companies have donated their products and/or services.  This operational presence does not include companies which export healthcare products, food products and agricultural commodities to the Republic of Cuba under provisions of statutes enacted in 1992 and 2000. 

If perhaps 2% of the meetings and receptions and conferences held since 17 December 2014 in Washington DC, throughout the United States and in Havana, not including the hundreds of delegations (official and unofficial) whose participants were representatives of United States companies meeting (usually) with representatives of MINREX and MINCEX had resulted in agreements, the bilateral commercial landscape would resemble today a formidable obstacle to any commercial, economic or political disruption.  Some would argue that the landscape would be impervious to interference.  That’s not what the government of the Republic of Cuba wanted; they preferred the interest to the reality.

The interest of United States companies served as bait for the government of the Republic of Cuba to entice the interest of companies in other countries.  It worked.  Unfortunately for the government of the Republic of Cuba, if one who is fishing runs out of bait (a marketplace that purportedly has revenues to support itself and companies seeking to participate in that marketplace), the fish (in this instance companies, financial institutions and governments) will turn elsewhere for nourishment.  That’s happening… and it shouldn’t.  

The commercial, economic and political elasticity of fifty-seven (57) years, the barrier from reality which protected the government of the Republic of Cuba from changes it abhorred, which maintained a rolling status quo, no longer exists.  There are no more lifeguards to cushion or harbor the Republic of Cuba.  Monies provided by benefactors with near-permanence and nearly devoid of obligation now require fiscal discipline, meaning political discipline… and change.

Tragically for the United States business community, the Obama Administration and the government of the Republic of Cuba engaged in eight (8) years of commercial malpractice.  That neither party modeled for an 8 November 2016 election outcome other than a victory for the nominee of the Democrat Party was both a preventable and catastrophic failure.  

Complicit, and yet-to-be held accountable in the multi-year series of undernourished opportunities are Members of Congress, advocates and lobbyists (both self-professed above-the-radar and below-the-radar), academics and commentators who insularly focused upon seeking legislative remedies rather than regulatory remedies and adhered to discussionary-exclusion.  Now, despite squandering the final twenty-five (25) months of the Obama Administration, they seek financial and political support from United States companies to create resistance to what the Trump Administration may implement.  Astounding audacity.

Remembering some of the most egregious Titans of Failure: 1) two commercial imports authorized- coffee and charcoal 2) 50% of what was required for direct correspondent banking 3) two meetings about certified claims in 2,923 days (766 days if calculated from 17 December 2014) 4) limited removal of financial transaction restrictions (complete removal would have encouraged banking and credit card/charge card/debit card activity) 5) Cabinet Secretaries disagreeing about whether their delegations could include representatives of United States companies.  However, more than two hundred (200) representatives of the United States government visited the Republic of Cuba during the final twenty-six months of the Obama Administration- including the President, First Lady, Second Lady and six (6) members of the Cabinet.

Although permitted by regulations implemented during the Obama Administration and thus far uninterrupted during the Trump Administration, why has the government to the Republic of Cuba not permitted representative offices (other than airlines), retail stores, distribution centers, assembly facilities, manufacturing operations, ferry services (even on a trial basis) and not permitted United States companies to directly export to the 200+ categories of licensed businesses?  Each of these activities are authorized by the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury, Bureau of Industry and Security (BIS) of the United States Department of Commerce, and United States Department of State.

Because of an ideological brake pad which impedes momentum, impedes efficiency, impedes creativity, impedes decision-making and most onerously impedes the cessation of conversation (ending “talk” and “talk about the talk” and embellishment and aggrandizing about “talk”), the pivot from nothing to something remains inconsistent and too often illusory; determining the glide-path from nothing or little to something has become an exhausting exercise.  

It’s almost as though the government of the Republic of Cuba wants United States companies to be uninterested as the result has more political value- victimization.  To whom does it have political value?  Isn’t a goal to create greater disposable income for the citizenry and diminish their dependence upon the government?  

The government of the Republic of Cuba needs to cease focusing upon the “embargo” and focus upon using existing United States statutes, regulations and policies to mitigate its impact upon the nation… that could have been a breathtakingly successful strategy from January 2009 through January 2017.

There are United States companies who believe they can provide value to the 11.3 million citizens of the Republic of Cuba; the government of the Republic of Cuba does not believe the management of those companies.  

The only means to determine if the suspicion by the government of the Republic of Cuba is warranted is to permit a presence, monitor that presence, evaluate that presence, and then determine its value.  That means accepting risk.  That means having confidence.

Thus far, the government of the Republic of Cuba is working the equation in reverse order- devoid of evidence; which potentially means more years of expensive “talk.”

The strategy of the government of the Republic of Cuba should be to take (make) advantage of the interest by United States companies.  

MINREX and MINCEX report that executives of United States companies want (in some instances described as “desperate”) into the Republic of Cuba marketplace- on terms that exist for companies in other countries who enter the Republic of Cuba marketplace.  Let them in.  

That generosity by United States companies to contravene prevailing political atmospherics in the United States is waning….  No company in the United States needs to access the Republic of Cuba marketplace; that’s difficult for an ego in the Republic of Cuba to absorb, but until it is appreciated the bilateral commercial, economic and political relationship will continue to be one of simultaneously tapping the brake and the accelerator.  A successful direction is not rotational.  

The government of the Republic of Cuba serves as trustee for the livelihood of 11.3 million occupants of the 800-mile archipelago.  Sometimes, acting against the interests of the trustee is acting for the interests of those who are served. 

There are sixty-eight (68) days until the OFAC, BIS, and Department of State issue their revisions to existing regulations.  

The distance in time until 15 September 2017 needs to be used wisely by stakeholders in Washington DC and in Havana.

Complete Text In PDF Format

US Embassy In Havana Invites (Again) Officials From Government Of Cuba To 4th Of July Party; What About FAR?

The United States Department of State extended invitations to representatives of the government of the Republic of Cuba to attend the annual 4th of July gathering at the Ambassador's Residence in the city of Havana, Republic of Cuba.

The United States Department of State has extended this invitation for many years, preceding, during and subsequent to the Obama Administration's re-establishment of diplomatic relations on 20 July 2015.

However, the United States Department of State will not confirm if representatives of the Revolutionary Armed Forces of the Republic of Cuba (FAR) were invited to the gathering this year.

The Trump Administration has announced plans to restrict commercial engagement with FAR-controlled entities. 

It's Not The Percentage That Matters; It's The Locations......

An academic has written that the Revolutionary Armed Forces of the Republic of Cuba (FAR) does not control 60% of the economy within the Republic of Cuba. 

The percentage of control is not as important as what entities are controlled- specifically the location of those entities:

Hotels, restaurants, retail stores, ground transportation in Old Havana… where almost all individuals subject to United States jurisdiction who visit the Republic of Cuba under the educational (which includes “people-to-people”) category want to visit or need to visit to be in compliance with regulations administered by the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury and soon-to-be published (by 16 September 2017) list of restricted/prohibited entities by the United States Department of State. 

Important to remain focused on the impact rather than upon the percentage.

Southwest Airlines Joins Others In Reducing Schedules For Cuba Routes

Southwest Airlines to consolidate Cuba service with focus on Havana
Scheduled Service to Varadero and Santa Clara to end Labor Day 2017

Release   
Jun 28, 2017

Southwest Airlines Co. (NYSE: LUV) today announced that it will concentrate its future service to Cuba in Havana (HAV) and will cease operations in both Varadero (VRA) and Santa Clara (SNU) at the end of day on Monday, Sept. 4, 2017. Southwest® currently serves Havana twice daily nonstop from Ft. Lauderdale-Hollywood International Airport (FLL) and once daily nonstop from Tampa International Airport (TPA) and has applied with the U.S. Department of Transportation for a third daily roundtrip between Ft. Lauderdale and Havana.

"Access to Cuba remains important to our South Florida Customers and this shift in focus will answer their continued calls for our low-fare value with bags fly free1 in serving the Cuban capital," said Steve Goldberg, Southwest Airlines Senior Vice President of Ground Operations and lead Executive sponsor for Florida. "Our decision to discontinue the other Cuba flights comes after an in-depth analysis of our performance over several months which confirmed that there is not a clear path to sustainability serving these markets, particularly with the continuing prohibition in U.S. law on tourism to Cuba for American citizens."

The carrier is reaching out to Customers who held reservations for travel involving Varadero and Santa Clara on Sept. 5 and beyond to offer refunds of purchased tickets in those markets.

About Southwest Airlines Co.

In its 47th year of service, Dallas-based Southwest Airlines (NYSE: LUV) continues to differentiate itself from other air carriers with exemplary Customer Service delivered by more than 54,000 Employees to more than 100 million Customers annually.  Southwest today proudly operates a network of 101 destinations in the United States and nine additional countries with more than 3,900 departures a day during peak travel season. Service to Turks and Caicos begins Nov. 5, 2017, subject to requisite government approvals.

Based on the U.S. Department of Transportation's most recent data, Southwest Airlines is the nation's largest carrier in terms of originating domestic passengers boarded. The Company operates the largest fleet of Boeing aircraft in the world, the majority of which are equipped with satellite-based WiFi providing gate-to-gate connectivity.  That connectivity enables Customers to use their personal devices to view video on-demand movies and television shows, as well as nearly 20 channels of free, live TV compliments of our valued Partners. Southwest created Transfarency®, a philosophy which treats Customers honestly and fairly, and in which low fares actually stay low. Southwest is the only major U.S. airline to offer bags fly free® to everyone (first and second checked pieces of luggage, size and weight limits apply, some airlines may allow free checked bags on select routes or for qualified circumstances), and there are no change fees, though fare differences might apply. The airline proudly unveiled a bold new look:  Heart.  A new logo, aircraft livery, interior design featuring a new seat and Flight Attendant galley, Employee-designed uniforms, and an updated airport experience all showcase the dedication of Southwest Employees who connect Customers with what's important in their lives.

From its first flights on June 18, 1971, Southwest Airlines launched an era of unprecedented affordability in air travel described by the U.S. Department of Transportation as "The Southwest Effect," a lowering of fares and increase in passenger traffic whenever the carrier enters new markets.  With 44 consecutive years of profitability, Southwest is one of the most honored airlines in the world, known for a triple bottom line approach that contributes to the carrier's performance and productivity, the importance of its People and the communities they serve, and an overall commitment to efficiency and the planet. The 2016 Southwest Airlines One Report™ can be found at SouthwestOneReport.com.

Southwest Airlines previously reported that the company might reduce schedule to the Republic of Cuba:

http://www.cubatrade.org/blog/2017/5/19/southwest-airlines-ceo-speaks-of-pulling-the-plug-on-non-havana-flights?rq=Silver

Other United States Airlines Announce Reductions And Suspensions:

http://www.cubatrade.org/blog/2017/4/22/what-does-jetblue-know-or-doesnt-know-seeking-additional-routes-to-cuba?rq=Silver

http://www.cubatrade.org/blog/2017/4/15/spirit-airlines-is-third-us-carrier-to-cease-us-cuba-operations?rq=Silver

http://www.cubatrade.org/blog/2017/3/13/silver-airways-suspending-cuba-service-on-22-april-2017-may-seek-frontiers-mia-hav-route?rq=Silver

Rep. Crawford Withdraws Legislation.... Good News For Certified Claimants

Politico
Arlington, Virginia
27 June 2017

CRAWFORD DROPS CUBA COMPROMISE BILL: Rep. Rick Crawford (R-Ark.) has put on hold a proposed update to legislation that would lift financing restrictions on U.S. agricultural exports after failing to get Florida GOP Reps. Mario Diaz-Balart and Ileana Ros-Lehtinen on board, Crawford’s spokesman told our Pro Agriculture colleague Catherine Boudreau. The proposal, a working text never formally introduced, was designed to allay the Cuban-American lawmakers’ concerns about the potential thawing of relations between the two countries by imposing a 2 percent transaction fee on all agricultural sales to Cuba. Sellers would pay the fee, and the revenue would be directed to the thousands of U.S. companies and citizens that have certified claims of property confiscated by the Cuban government — worth $8 billion total. Rep. Carlos Curbelo (R-Fla.) told el Nuevo Herald earlier this month that he supported the excise tax idea, though “no definitive agreement” had been reached.

“Crawford greatly appreciated the good faith effort from Rep. Curbelo in finding a compromise that worked for both American agriculture and aggrieved Cuban Americans,” Crawford’s spokesman James Arnold told POLITICO in an email. “Unfortunately, even his support for the idea wasn’t enough to bring others on board, despite months of negotiations and other concessions.”

Back to Plan A: Crawford is willing to work with the Florida lawmakers again, but for now the Arkansas Republican will pursue passage of his original bill (H.R. 525) that would allow U.S. agricultural goods to be sold to Cuba using credit instead of cash upfront or through third-party guarantees, the current requirement due to the embargo. The legislation has 41 mostly Republican co-sponsors and broad support from the U.S. farming industry.

Why This Legislation Was Never A Good Idea:

http://www.cubatrade.org/blog/2017/5/29/0t6ts1bv3by20ot3mi9bydvdqv3e86?rq=Crawford

http://www.cubatrade.org/blog/2017/6/4/xagpzv70sjpnask50nzx9tbfyn5pp0?rq=Crawford

Cuba (Again) Remains "Trivial" To Royal Caribbean CEO Despite Company Increasing Projections For Cuba Passengers & Revenues By Almost 200%

Richard Fain
Chairman and Chief Executive Officer
Royal Caribbean Cruises, Ltd.

26 June 2017
CNBC Interview (http://video.cnbc.com/gallery/?video=3000630763)

Question: When it comes to Cuba policy it seemed;that the new policy would almost help your company because its going to be much tougher for the individual just to get on a plane and go, but still relatively easy when it comes to getting on a cruise and going to Cuba.

Fain: Cuba has been good for us and and changes he made had really no negative effect.  I don't think I'd look for a positive effect, I'd rather understand exactly what they're doing and that would help us.  But as interesting as Cuba is in the long term, it's really a trivial part of our business today.

Question: Really, because you fought for hard for it, all of the cruise companies fought so hard for it.  Why, if it's so trivial?

Fain: We I think we do see Cuba as a wonderful destination for Americans.  We think a lot of people will want to go there and we think over time it will grow.  But it is still very small and likely remain small for a while.

http://www.cubatrade.org/blog/2017/2/3/royal-caribbean-cruises-increases-2017-cuba-projections-175-for-passengers-150-for-revenues?rq=royal%20caribbean

http://www.cubatrade.org/blog/2017/5/27/cuba-nearing-half-billion-dollar-marketplace-valuation-for-cruise-lines?rq=royal%20caribbean

Cuba Is "Trivial" Part Of Business Says Royal Caribbean Cruises Chairman & CEO; Not Quite Accurate
January 26, 2017

http://www.cubatrade.org/blog/2017/1/26/cuba-is-trivial-part-of-business-says-royal-caribbean-cruises-chairman-ceo-not-quite-accurate?rq=richard%20fain

Mr. Richard D. Fain, Chairman and Chief Executive Officer of Royal Caribbean Cruises, Ltd. (2016 revenues exceeded US$8 billion), referred to the company's planned April 2017 to May 2017 sailings to the Republic of Cuba as a "trivial part of our business" during an appearance on CNBC's "Power Lunch" program on 26 January 2017.

Mr. Fain is correct about the economic impact of the Republic of Cuba to the company based upon announced activity for 2017.  He is not accurately reflecting the commensurate effort by the company to obtain authorization from the government of the Republic of Cuba.

Reportedly, members of the Chicago, Illinois-based Pritzker family have substantive shareholdings in Royal Caribbean Cruises, Ltd.; at one reporting they were the third-largest shareholder in the company.  The Honorable Penny Pritzker (net worth reported as US$2.4 billion) served as United States Secretary of Commerce during the Obama Administration from 26 June 2013 to 20 January 2017 and visited the Republic of Cuba twice during her tenure.

For the Republic of Cuba sailings, the company is using its 2,270-passenger Empress of the Seas (692ft), which was placed in service on 25 June 1990.  

The "Godmother" of the Empress of the Seas is the Republic of Cuba-born, Florida-based singer Ms. Gloria Estefan.

With four (4) announced itineraries (one departing from Miami, Florida and three from Tampa, Florida), if the Empress of the Seas was fully-occupied for each sailing, the total number of passengers would be 6,408 with gross revenues of approximately US$8.3 million.  In 2016, Royal Caribbean Cruises, Ltd. vessels carried six million passengers.  The four Republic of Cuba sailings would represent .11% of the total passengers carried by the company and .10% of gross revenues to the company.

ROYAL CARIBBEAN INTERNATIONAL OPENS SAILINGS TO CUBA
Adventure Seekers Can Now Visit Havana On Empress of the Seas from Miami or Tampa

MIAMI, Dec. 9, 2016 – Salsa music, dominoes, Mojitos and historic Havana neighborhoods are easier to reach than ever before for guests on Royal Caribbean International. The newly revitalized Empress of the Seas will make history for the cruise line with its first visit to Cuba during a 5-night sailing departing Miami on April 19, 2017. The ship will then reposition to Tampa offering two itineraries with calls to Havana on April 30 (7-night sailing) and May 20 (5-night sailing). These Empress of the Seas sailings are now open for sale.

Empress of the Seas will homeport in Tampa for the 2017 summer season – the cruise line’s first-ever summer program from the destination – offering a series of 4- and 5-night sailings, including port calls to destinations in Cuba. Empress will provide vacationers with the opportunity to discover the timeless sights, sounds and culture of this island nation. Details of the summer itineraries will be released at a later date.

“Royal Caribbean is the world’s most exciting adventure company, and we’re thrilled to introduce culture-seeking travelers to Cuba. As the unrivaled innovators of the cruise experience, no company is better positioned to help adventurers explore and experience this culturally rich destination,” said Michael Bayley, President and CEO, Royal Caribbean International.

Guests sailing onboard Empress of the Seas and visiting Cuba can enjoy curated people-to-people experiences created to immerse vacationers in the natural beauty of Cuba, its architecture, cuisine, music and art.  All cruises will be designed in accordance with current U.S. to Cuba travel regulations.

While in Cuba, guests will explore Old Havana – a UNESCO World Heritage site – some of the city’s most notable squares, historic neighborhoods, a local artisan market, Havana’s rum museum as well as Hemingway’s former residence and favorite haunts. Local experts will immerse guests in the history, culture and people of Cuba. These authentic encounters will give guests an unforgettable taste of what has made Cuba the gem of the Caribbean.

The authentic experiences aren’t limited to land. The vibrant culture will extend to Empress of the Seas, from cortaditos and café con leche in Café Royal to salsa music, guests will have a range of onboard activities developed to bring the spirit of the island to life during the entire journey. The revitalized Empress will bring the shipboard Cuban flair together with signature amenities, such as a thrilling rock-climbing wall for adrenaline seekers; updated pool and whirlpools; a Vitality Spa with an extensive treatment menu; and a complimentary Adventure Ocean youth program. Empress also will offer a variety of dining options with the casual atmosphere of the Windjammer Café and fine dining at Royal Caribbean’s signature steakhouse Chops.

The summer program on Empress of the Seas provides travelers with more opportunities to sample the unique Royal Caribbean experience from Tampa. Two other Royal Caribbean ships, Rhapsody of the Seas and Brilliance of the Seas, will offer Caribbean itineraries from the homeport during the winter season. Guests interested in being one of the first to experience Cuba with Royal Caribbean can contact their travel professional, call Royal Caribbean at 1-866-562-7625 or visit RoyalCaribbean.com/Cuba.

Royal Caribbean International is an award-winning global cruise brand with a 46-year legacy of innovation and introducing industry “firsts” never before seen at sea.  The cruise line features an expansive and unmatched array of features and amenities only found on Royal Caribbean including, jaw-dropping, Broadway-style entertainment and industry-acclaimed programming that appeals to families and adventurous vacationers alike. Onboard, guests are catered to with the cruise line’s world-renowned friendly and engaging Gold Anchor Service by every staff and crew member. Royal Caribbean has been voted “Best Cruise Line Overall” for 13 consecutive years in the Travel Weekly Readers Choice Awards.

The cruise line sails 25 of the world’s most innovative cruise ships to the most popular destinations in Bermuda and the Caribbean, Europe, Canada and New England, Alaska, South America, Asia, and Australia and New Zealand. Media can stay up-to-date by following @RoyalCaribPR on Twitter, and visiting RoyalCaribbeanPressCenter.com. For additional information or to make reservations, vacationers should call their travel agent; visit RoyalCaribbean.com; or call (800) ROYAL-CARIBBEAN.

Biography Of Mr. Fain:

"Richard D. Fain serves as Chairman and Chief Executive Officer of Royal Caribbean Cruises Ltd. (NYSE: RCL). More than five million guests sail each year aboard the company's cruise lines. RCL owns and operates Royal Caribbean International, Celebrity Cruises and Azamara Club Cruises and is part of joint ventures that operate Pullmantur and TUI Cruises. The company's 49 ships sail to nearly 500 ports on all seven continents.

Fain became the cruise line company's chairman and CEO in 1988, and has guided its growth to its current place on the S&P 500, as well as its listing by the Ethisphere Institute as a 2016 World's Most Ethical Company.Fain is chair of the University of Miami Board of Trustees, and serves on the board of the Posse Foundation and the executive committee of the World Travel and Tourism Council.

He has been recognized with the Federal Maritime Commission's Earth Day Award, the Travel Weekly Lifetime Achievement Award, the South Florida Business Journal Ultimate CEO Award, the Ellis Island Medal of Honor, and membership in the South Florida Business Hall of Fame. The French government honored Fain as a Chevalier de la Legion d'Honneur, while the Finnish government named him a Commander, First Class, of the Order of the Lion.

Fain holds a B.S. degree in economics from the University of California at Berkeley and an M.B.A. from the Wharton School of Business at the University of Pennsylvania. Fain and his wife, Colleen, have four children and six extraordinary grandchildren."

Vice President Pence Comments On New Policy Towards Cuba

THE WHITE HOUSE
Office of the Vice President
22 June 2017
 
REMARKS BY VICE PRESIDENT PENCE AT THE WILSON CENTER
 
Ronald Reagan Building and International Trade Center
Washington, D.C.
 
excerpts....

Our partnerships and alliances throughout the region are critical to our national interests.  The President has said -- in his words -- it’s best for America to have freedom in the Western Hemisphere.  And last Friday, on that count, as Jane just mentioned, the President took decisive action to end the last administration’s failed policy toward Cuba and support the courageous Cuban people in their six-decade struggle for liberty.
 
Under this administration, the United States now will restrict financial transactions with repressive military, security and intelligence services of the Castro regime and instead redirect lawful commerce to entrepreneurs, to private enterprises in Cuba, and to all those brave Cuban citizens who yearn for freedom and for a brighter future.
 
No longer will America enrich the Cuban regime at the expense of the Cuban people.  Because America stands for opportunity, not oppression; for liberty, not tyranny.  The Cuban regime must make real progress on human rights and individual freedom.  And as the President has said, our policy will not change until all political prisoners are freed, freedoms of assembly and expression are respected, all political parties are legalized, and free and internationally supervised elections occur.  That’s what American leadership looks like.  (Applause.) 
 
But, as we all know, Cuba is not the only nation in the region where democracy and freedom are in steep decline and at risk of being completely eradicated.  It’s increasingly true of the troubled nation of Venezuela.  Venezuela’s collapse into authoritarianism and anarchy has been heartbreaking to see.  The people of that once-rich nation now suffer rampant crime and grinding poverty on a daily basis.
 
Just as we stand with the people of Cuba, under President Trump, the United States stands with the people of Venezuela.  The United States of America condemns the Maduro regime’s abuse of power and the abuse of its people, and we call upon the Maduro regime to restore a robust democracy and the rule of law, and do it now.  (Applause.) 
 
And we also -- I was with the President in Miami at the close of our conference when he announced that we were abandoning the last administration’s policy on Cuba and implementing -- new approach demanding that if -- Cuba live up to the empty promises it made to the last administration about advancing reforms.  And we’ll hold them to that.
 
 
 

Updated List: United States Companies With A Presence In Cuba Since 17 December 2014

United States Companies With A Presence In Cuba Since 17 December 2014
No Manufacturing/Assembly/DFI
Many Licenses Issued By OFAC/BIS Not Yet Disclosed & Implemented
 

LINK TO COMPLETE LIST IN PDF FORMAT

Cuba Reports 145% Increase In Visitors From US During First Six Months Of 2017

The Ministry of Foreign Affairs of the Republic of Cuba (MINREX) reported 284,565 individuals using a United States passport visited the Republic of Cuba during the period 1 January 2017 through 31 May 2017.  

The 284,565 did not include individauls of Cuban descent (meaning having a passport issued by the government of the Republic of Cuba and using that passport to enter/exit the Republic of Cuba) who may also have a United States passport and reside in the United States.

MINREX reported that the 285,565 represented an increase of approximately 145% compared with the same period in 2016.  MINREX reported the value for individuals of Cuban descent increased by approximately 45% compared to the same period in 2016, but did not provide the number of visitors.

During the period 1 January 2016 to 31 May 2016, air services from the United States to the Republic of Cuba remained operational using charter flights.  Regularly-scheduled commercial airline service commenced on 31 August 2016, so date-to-date comparisons need be carefully evaluated.   

In 2016, the total number of visitors to the Republic of Cuba who hold United States passports and/or Cuban passports was 614,433, representing an increase of 34% compared to 2015.

In 2016, the total visitors to the Republic of Cuba who did not hold Republic of Cuba passports was 284,937 compared to 161,233 in 2015.

In 2016, the total visitors to the Republic of Cuba who held Republic of Cuba passports was 329,496 compared with approximately 350,000 in 2015.

According to The Miami Herald, total passengers (United States passport holders and Republic of Cuba passport holders) traveling from Miami International Airport (MIA) to the Republic of Cuba was 588,433 compared to 444,667 in 2015.

According to the Miami-Dade Aviation Department, total passengers arriving and departing for the Republic of Cuba through MIA was 1,029,045 (arrivals- 518,247 & departures- 510,798) in 2016 compared to 808,791 (arrivals- 412,778 & departures- 396,013) in 2015, representing a year-to-year 25% increase in arrivals and 29% increase in departures.

In 2016, United States air carriers requested a combined 3,404,496 seats on an annual basis from the United States to the Republic of Cuba.  In 2016, the Republic of Cuba reported approximately 4,000,000 visitors.  The Republic of Cuba has approximately 66,547 hotel rooms, primarily in the one-star to three-star category based on United States ratings.

In 2016, the United States Department of Transportation (USDOT) awarded route authorities to eight (8) air carriers for US-HAV routes and seven (7) air carriers for non-US-HAV routes.

For the US-HAV routes, the USDOT awarded 1,242,748 seats on an annual basis.

For the non-US-HAV routes, the USDOT awarded 1,060,148 seats on an annual basis.

The USDOT awarded a total of 2,302,896 seats.

The total number of visitors to the Republic of Cuba in 2016 was 4,035,577 compared to 3,524,779 in 2015.  The Republic of Cuba expects 4,199,977 visitors in 2017.
 

US Department Of State.... Cuba Not Mentioned During Ten Bilateral Meetings With OAS Members

Remarks

John J. Sullivan
Deputy Secretary of State
Cancun, Mexico

June 20, 2017

excerpts.....

MODERATOR: (Via interpreter) Good afternoon. Welcome to this press conference of the Deputy Secretary of State John Sullivan. He will start with a brief declaration and then he will answer some questions. I will assign the persons that will be allowed to ask the questions. Please use your mikes.

MODERATOR: (Via interpreter) Thank you. The first question will be for Tracy Wilkinson, the LA Times.

QUESTION: Hi, thank you very much. You spoke today passionately, I would say, about the need for this organization to be relevant, but you all were not able to agree – you all were not able to agree on a resolution for Venezuela. How do you explain that failure? And do you think that the recent reversal by the United States vis-a-vis Cuba has weakened your hand in a forum like this?

DEPUTY SECRETARY SULLIVAN: With respect to the U.S. change in – that the President announced in its – in our policy with respect to Cuba, I’m not sure that that had any effect on votes. It hasn’t been mentioned to me. I’ve had almost 10 – nine or 10 bilateral meetings today to discuss this resolution, and that was not raised by any country. I – so the thoughts I would leave you with are this is an ongoing process. We’ve got 20 votes. We’re hopeful to get more. But the process is continuing under the able leadership of our hosts, the Mexican Government. Thank you.

Daily Chronology Of Statements About Cuba From Trump Administration

THE WHITE HOUSE
Office of the Press Secretary
20 June 2017
  
PRESS BRIEFING BY PRESS SECRETARY SEAN SPICER
James S. Brady Press Briefing Room
 
MR. SPICER:  Good afternoon.
Sean, regarding the President’s Cuba policy, the Cuban foreign minister just yesterday said that it is “a grotesque spectacle.”  Does the President have any reaction to that?
 
MR. SPICER:  The policy the President laid out for Cuba first and foremost is something that will help the Cuban people.  It will stop making -- encouraging payments to the military and help them economically lift themselves up.  That is the greatest form of human rights that we can push for right now, to make sure that those efforts that we do and that the American citizens who travel or do business in Cuba follow the law.
 
Our goal is to make sure that the policies for this government first and foremost help the Cuban people.  And I think that’s what the President has done, and we will continue to advocate for.

THE WHITE HOUSE
Office of the Press Secretary
19 June 2017
  
PRESS GAGGLE BY PRESS SECRETARY SEAN SPICER
James S. Brady Press Briefing Room
 
MR. SPICER:  Good afternoon.

Q    Thanks a lot, Sean.  We got a reaction today from Cuba's foreign minister as it relates to U.S.-Cuba policy, which was announced by the President last week.  And one of the things he said is, under no circumstances will Cuba release any of those fugitives that President Trump asked Cuba to release.  What kind of pressure can be brought to bear on the Cuban government to get that particular element of what the President wanted actually taking place?
 
MR. SPICER:  The number-one piece of what the President did was to lay the groundwork for empowering the Cuban people to develop greater economic and political liberty.  That was at the heart of what this did.  It was a promise that he made during the campaign trail.  And I think instead of empowering the Cuban military and its ability to control the money that goes through, which was not getting to the people, the President's actions that he took on Friday are going to help empower the people and make sure that not only does he maintain a promise that the American people follow the law, but the bigger result is that we empower the Cuban people.  And I think that's the real big takeaway that I have.
 
     Q    Do you anticipate the President announcing any further sanctions on the Cuban government to get various things related to Cuban rights solved or these fugitives brought back to America?
 
     MR. SPICER:  I think -- let's let the first -- we're one business day into these actions that the President took.  I think they're being widely hailed as a step in the right direction to accomplishing -- empowering the Cuban people.  Let's give it a little time.  But as the President says on a variety of subjects, let's not project what we're going to do and make sure that we see how things -- and reserve the right to go forward.

THE WHITE HOUSE
Office of the Press Secretary
13 June 2017
  
PRESS GAGGLE
BY PRINCIPAL DEPUTY PRESS SECRETARY SARAH SANDERS
 
Aboard Air Force One
En Route Washington, D.C.

Sarah, do you have any more details on the announcement that's expected on Friday about changes to Cuba policy?  What parts of the Obamacare administration's policy is the President planning to roll back?  And what is he planning to announce in Miami?
 
     MS. SANDERS:  There aren't any final decisions on that front yet.  But as soon as we have information on that, I would be happy to share it with you.
 
     Q    Just to follow up on that, you mean there's no final decisions?  Or you just don't have them to provide for us?
 
     MS. SANDERS:  My understanding is there's not a final decision and that it's all still being reviewed at this time.
 
     Q    But he is going down there despite the fact that no final decision --
 
     MS. SANDERS:  Again, we haven't made an announcement about that specifically, but we'll keep you posted when we do.

The Wall Street Journal
Washington, DC
13 June 2017

Excerpts:

“The general approach is to allow as much of this continued commercial and engagement activity to go on as possible because we do see the sunny side...we see the benefits of that to the Cuban people,” said Mr. Tillerson, who appeared before the committee as a witness. “But on the other hand, we think we have achieved very little in terms of changing the behavior in the regime in Cuba, its treatment of people, and it has little incentive today to change that.”

He added: “In fact, our concern is they may be one of the biggest beneficiaries of all of this, which just again promotes the continuance of that regime.”

“As we’re developing these business relationships and as we’re enjoying the benefits of the economic and development side, are we inadvertently or directly providing financial support to the regime? Our view is we are,” Mr. Tillerson told lawmakers.

Thomson Reuters
Washington, DC
13 June 2017

Excerpts:

U.S. Secretary of State Rex Tillerson on Tuesday said Cuba "must begin to address human rights challenges" if it wants Washington to preserve a move toward more normal relations started under former President Barack Obama.

Under questioning from Democratic Senator Tom Udall, Tillerson agreed that moves toward more normal relations with the United States have helped some Cubans lift themselves out of poverty and provided opportunities for U.S. companies.

However, Tillerson said there is a "dark side" to relations with Cuba, noting that the government in Havana continues to jail political opponents and harass dissidents.

"If we're going to sustain the sunny side of this relationship, Cuba must, absolutely must, address these human rights challenges," Tillerson told the Senate Foreign Relations Committee at a hearing on the broad State Department budget.

He said the Trump administration's view is that the new U.S. policy is providing financial support to the Cuban government, which would violate U.S. law.

"We are supportive of the ... economic development, as long as it is done in full compliance with our existing statutes, and not provide financial support to the Cuban regime," Tillerson said. "That's the focus of our current policy review."

El Nuevo Herald
Miami, Florida
12 June 2017

Statements by Ms. Helen Aguirre Ferre, Special Assistant to the President and Director of Media Affairs at The White House....

“The president has not seen the final proposal and has not approved it. He is a very independent president in his way of thinking and it would not be the first time he throws something back to be reviewed,” White House spokeswoman Helen Aguirre Ferré said.  

Aguirre Ferré said a proposal to prohibit business with GAESA, “is one of the many possibilities discussed. It is being considered as one of the many options.  “But almost everything is being looked at.”

THE WHITE HOUSE
Office of the Press Secretary
12 June 2017
 
PRESS BRIEFING BY PRESS SECRETARY SEAN SPICER
 
Q    My other question was, there are widespread stories and speculation that when the President goes to Miami this Friday he will undo the executive orders from the Obama administration that eased relations with Cuba.  Can you confirm whether he will undo all of them or some of them?
 
MR. SPICER:  (Laughter.)  That's a good try.  I will say that when we have an announcement on the President's schedule, we'll let you know.  But just stay tuned.  We have a very busy week -- an ambitious agenda this week.

THE WHITE HOUSE
Office of the Press Secretary
30 May 2017
 
PRESS BRIEFING BY PRESS SECRETARY SEAN SPICER

And my second question, I did want to mention that before he left to go abroad, the President praised Philippine President Duterte for his action against drug dealers and dealing with them. Various human rights groups have condemned President Duterte, saying that a lot of the executions of drug dealers have been done without trial.  Does the President stand by his words of praise for the Philippine President?
 
MR. SPICER:  I think the President recognizes the need to combat drugs, but he also believes in human rights.  It's something that he’s worked with several countries -- it's one of the reasons that he’s reviewing the Cuba policy, et cetera.  He wants -- human rights is something that’s very strong to him.  It's something that he’s discussed in private with several countries.

Statements From The White House About Cuba.... Chronology
http://www.cubatrade.org/blog/2017/3/12/6rhpts5hb63h4xirou3am6ycrexpbk

THE WHITE HOUSE
Office of the Press Secretary
19 March 2017

Readout of the President’s Day        
 
....  He spoke to President Michelle Bachelet of Chile to discuss our bilateral relationship, including our close cooperation on trade and security issues.  President Trump expressed concern over the situation in Venezuela, and the leaders agreed on the importance of advancing democratic principles throughout the Western Hemisphere. 

EFE
Washington, DC
8 March 2017

Excerpts from interview with Ms. Helen Aguirre Ferre, Special Assistant to the President and Director of Media Affairs at The White House....

"The president has been very clear that they are going to evaluate all the agreements that the prior administration (of Barack Obama) made with Cuba," said Aguirre Ferre, who is of Nicaraguan heritage.

...in Trump's judgment, "Cuba did not offer any concessions, with all that it was given in what has been the normalization and reestablishment of agreements and diplomatic behavior."

Cuba is hosting "fugitives from US justice, it has to turn over those people and also talk about the importance of free elections and free political prisoners," Aguirre Ferre said.

Trump's adviser avoided commenting on whether there has been any contact as yet between the Trump administration and Cuba, saying that that it a question for the State Department.

The White House
Office of the Press Secretary
16 February 2017

Remarks by President Trump in Press Conference

THE PRESIDENT:  ... We had dinner with Senator [Marco] Rubio [R-Florida] and his wife, who is, by the way, lovely.  And we had a really good discussion about Cuba because we have very similar views on Cuba.  And Cuba was very good to me in the Florida election as you know, the Cuban people, Americans.  

The White House
Office of the Press Secretary
3 February 2017

Press Briefing

Mr. Spicer:  With that, I’m going to go my first Skype question seat.   Jackie Nespral from NBC 6 in South Florida.  Jackie.

Question:  Good afternoon.  On behalf of the viewers of South Florida, thanks so much for this opportunity.  You know, a lot of focus on foreign affairs this week, a new sanctions announced today against Iran, and of course Miami, as you know, is home to the largest Cuban-American community in the country.  And during the campaign, President Trump talked about his discontent with the warming of U.S.-Cuba relations implemented by President Obama.  And in the last days of his administration, he ended the "wet foot, dry foot" policy, leaving thousands of Cubans in limbo.

So my question is twofold.  A, has there been any contact between your administration and the Cuban government?  And B, are there any plans to change the current policy right now?

Mr. Spicer:  Thanks, Jackie.  We are in the midst of a full review of all U.S. policies towards Cuba.  The President is committed to an agenda of ensuring human rights for all citizens throughout the world.  And as we review those policies in Cuba, that will be forefront in their policy discussions, but there is nothing that we have on that front at this point.

The White House
Office of the Press Secretary
24 January 2017

Press Briefing

Question:  Does the President have any plans to change US policy towards Cuba there are a lot of changes that took place during the last Administration and the Executive Orders as it relates to US-Cuba relations?

Mr. Spicer:  I have to follow-up with you we've got nothing that we're ready to announce at this point.

Committee on Foreign Relations
United States Senate
Washington, DC
21 January 2017

Written answers by Mr. Rex Tillerson, nominee to be United States Secretary of State, as published by the Committee on Foreign Relations.

Question: Despite the Obama Administration’s controversial and misguided decision to normalize relations with Cuba and its hope that this could lead to improved governance and human rights, Cuban officials continue to arrest dissidents and violate the rights of citizens, and tourism revenues benefit only government officials and a small minority of the population. How do you plan to approach the United States’ relationship with Cuba? How will you support human rights defenders and democracy activists in Cuba? What bilateral and/or multilateral pressure will you exert to lessen authoritarian rule in Cuba?

Tillerson: If confirmed, I will engage with Cuba but continue to press for reform of its oppressive regime. I will support human rights defenders and democracy activists in Cuba, empower civil society, defend freedom of expression, and promote improved Internet access and I will ask our allies to do the same.

Will you continue to support programs that promote democratic voices and initiatives in Cuba like Radio and TV Marti?

Yes, if I am confirmed.

What steps will you take to pressure the Castro regime to return American political fugitives like New Jersey cop-killer Joanne Chesimard?

If confirmed, I will engage bilaterally and multilaterally to bring these fugitives to justice.

Will you work with the Treasury Department to ensure that no revenue from American businesses goes directly toward supporting the Cuban military and the regime?

Yes, if I am confirmed.

NOTE: On 9 June 2016, The Honorable Paul Ryan (R-WI), Speaker of the United States House of Representatives, issued "Achieving U.S. Security Through Leadership & Liberty"  The second paragraph of the document included this sentence: "A first step should be to ban financial transactions with the Cuban military."  http://www.cubatrade.org/blog/2016/6/11/speaker-of-the-house-paul-ryan-wants-to-rescind-starwood-hotel-management-agreement?rq=Paul%20Ryan

What steps will you take to encourage the government of Cuba to release political prisoners, artists, journalists, and other Cubans being detained for politically-motivated reasons?

If confirmed, I will press Cuba to meet its pledge to become more democratic and consider placing conditions on trade or travel policies to motivate the release of political prisoners.

What steps will you take to promote judicial reform in Cuba?

I will work bilaterally and multilaterally to identify training and technical assistance opportunities to assist with judicial reform, if I am confirmed.

On October 12, 2016, PEOTUS Donald Trump stated, “The people of Cuba have struggled too long. Will reverse Obama’s Executive Orders and concessions towards Cuba until freedoms are restored.” Do you stand by PEOTUS Trump’s commitment to reverse the Obama Administration’s Cuba regulations until freedoms are restored on the island?

Yes. There will be a comprehensive review of current policies and executive orders regarding Cuba to determine how best to pressure Cuba to respect human rights and promote democratic changes.

On October 14, 2016, VPEOTUS Mike Pence reiterated this commitment by stating, “When Donald Trump and I take to the White House, we will reverse Barack Obama’s executive orders on Cuba.” Do you stand by VPEOTUS Pence’s commitment to reverse the Obama Administration’s Cuba regulations?

Yes, if I am confirmed.

United States Secretary of State Designate Rex Tillerson
United States Senate Committee on Foreign Relations
Confirmation Hearing Opening Statement
11 January 2017

Excerpts…..

Good morning.

I am honored to have the backing of Senator Cornyn and Senator Cruz from my home state of Texas. I also want to thank Senator Nunn for his commitment to nuclear non-proliferation, and Secretary Gates for his service to eight presidents and his own leadership as President of the Boy Scouts of America.

Chairman Corker, Ranking Member Cardin, and Members of the Committee, it is an honor to appear before you today as President-elect Trump’s nominee for Secretary of State and to seek the approval of this Committee and the full Senate for my confirmation.

But our leadership demands action specifically focused on improving the conditions of people the world over, utilizing both aid and economic sanctions as instruments of foreign policy when appropriate.

And we must adhere to standards of accountability. Our recent engagement with the government of Cuba was not accompanied by any significant concessions on human rights. We have not held them accountable for their conduct. Their leaders received much, while their people received little. That serves neither the interest of Cubans or Americans.

Abraham Lincoln declared that America is “the last best hope of Earth.” Our moral light must not go out if we are to remain an agent of freedom.

Trump's Cuba Moves 'An Epic Disaster' for Entrepreneurs Renewed ties were supposed to lead to economic progress. And now it's all at a standstill.

Trump's Cuba Moves 'An Epic Disaster' for Entrepreneurs
Renewed ties were supposed to lead to economic progress. And now it's all at a standstill.

By David Whitford
Editor-at-large
Inc. Magazine

Last week, hopeful belief collided with hard fact. President Trump, as he promised he would during the campaign, began dismantling former President Obama's historic overture to Cuba.

Before an adoring crowd in Miami's Little Havana, the U.S. President attacked his predecessor's "terrible and misguided deal with the Castro regime," promising that, "We will enforce the ban on tourism. We will enforce the embargo," and otherwise set about dismantling his predecessor's legacy. A particular target of Trump's new policy: U.S. dealings with companies tied to Cuba's military, which covers broad swathes of the tourist industry from nightclubs to hotels and resorts.

This wasn't supposed to happen. At the end of 2014, Obama signed an executive order moving to officially open ties with the island nation; consequently all signs were pointing to a long-awaited thaw. Among other things, the U.S. would establish a diplomatic outpost in the country, Cuban businesses could export to the U.S. and U.S. companies could enter the Cuban market. Companies like Google and Airbnb would soon establish business ties with Cuba.

In its February 2017 issue, Inc. published an article, Crashing Into Cuba, which offered a look at the entrepreneurs breaking into this long-forbidden market. In it, I wrote: "Everybody wants to believe that we're at the beginning of the end of an era; that no one--not unforgetting Cuban émigrés in Miami, not Fidel's ghost, not a brash and unpredictable President Trump--can halt the momentum now. That the embargo must be, will be, swept aside, and the rivers of commerce will flow."

Ah, but as you know, that's not exactly how things turned out. John Kavulich, longtime head of the U.S.-Cuba Trade and Economic Council in New York, believes both countries could have planned for this day better by at least entertaining the possibility that Donald Trump--not Hillary Clinton--might win the election. "But the brilliant negotiators in the Obama administration and in Cuba never had that conversation," Kavulich says. "So November 8 comes along and it all blows up. Companies that had licenses [to operate in Cuba] are now scared to use them. Regulations that could have been changed weren't. It's an epic disaster for large, medium, small, and micro entrepreneurs in both countries."

Here are three things to keep in mind about Trump's Cuba moves: 

1. President Trump has no plans to close the recently reopened U.S. embassy in Havana,nor curtail in any way diplomatic relations. Meaning the door to a direct dialog between the countries, closed from 1961 to 2014, remains open. Trump was clear: he wants to keep negotiating, and has promised "a much better deal." Though how much the Cubans will be willing to engage with the U.S. remains to be seen. 

2. Travel is still possible. U.S. airlines can still land at Cuban airports. U.S. cruise ships can still call at Cuban ports. And U.S. citizens, as long as they fall within one of 12 authorized categories, can still enter Cuba with a U.S. passport. One notable exception: so-called individual people-to-people travel, a loosely enforced allowance under which adventurous American tourists were lately free to visit Cuba on their own. Among the biggest beneficiaries were the ordinary Cubans who opened small restaurants (paladares) catering to tourists and converted their homes to B&Bs (casas particulares). Fewer tourists means less business for Cuba's massive Armed Forces Business Enterprises Group (GAESA), which is said to control 60 percent of the nation's economy. But for some in Cuba's budding entrepreneurial class, otherwise subsisting on meager state salaries, the impact could be catastrophic. It could mean the difference between people getting three square meals a day and going hungry, says Cuban émigré turned American entrepreneur, Saul Berenthal, who stays in touch with friends on the island. 

3. Nothing President Trump announced last week is effective immediately. All is contingent on the issuance of new regulations due in 90 days from the Office of Foreign Assets Control (OFAC). Until then, presumably, it's business as usual, albeit within the strict limits that were there all along. U.S. companies in those few industries exempt from the longstanding embargo--such as agricultural commodities and medical supplies--can still pursue deals with Cuban companies. And if they can get in under the deadline, well, "The forthcoming regulations will be prospective," according to Treasury, "and thus will not affect existing contracts and licenses." Best hurry, though: The current OFAC backlog on issuing such licenses is 180 days. 

Bottom line: Even before Trump announced his new policy, most American entrepreneurs with dreams of winning the race in Cuba had gotten way ahead of themselves. As Kavulich says, "The starting gun hadn't even been fired yet, and they were already at the hundred yard line."

And now? "Anyone that gives you any perspective with a lot of adjectives that are positive in nature, hang up on them," he advises. "They have the courage of their ignorance. That's not a reality that those of us involved in this for 25 years want, but one we have to appreciate in its context."

The Speech; The Response; The Hysteria; The Analysis; The Impact; The Unknowns

For Cuba: Be A Victim Or Be Opportunistic

For Companies: Pressure Or Acquiesce

For Advocates & Lobbyists: A New Strategy

For Travelers: Be Flexible

For History: Blame Obama Administration & Government Of Cuba

With public and private sector hysteria beginning to subside, an analysis of the impact of the statements by The Honorable Donald J. Trump, President of the United States, officials of the Trump Administration and Members of Congress and the texts (where available) of the announced policies and regulations to be implemented by the Trump Administration can commence.

Did President Donald Trump "effective immediately, I am canceling the last administration's completely one-sided deal with Cuba,"?  No, he did not.

Did the government of the Republic of Cuba receive more from the Obama Administration than it provided to the Obama Administration? From a commercial/financial perspective, absolutely. Did the government of the Republic of Cuba agree to changes that would resemble hooking itself to Thanatron and Mercitron devices? No, it did not; at least not intentionally.  

The Honorable Benjamin Rhodes, Assistant to the President and Deputy National Security Advisor for Strategic Communication during the Obama Administration and one of the negotiators during the year-long non-public bilateral discussions with the government of the Republic of Cuba, shared his views as to the negative impact of changes to Obama Administration policies and regulations.

He conveniently (and self-servingly) vanquishes the irony and tragedy relating to the reason(s) for President Trump residing in a commercial, economic and political space to make, meaningful or not, changes to Obama Administration policies and regulations.

It’s because of what the Obama Administration could have done and did not do... and what the government of the Republic of Cuba could have done and did not do.

The Chairman and Chief Executive Officer of a Fortune Magazine 100-largest listed United States-based company offered that the events of Friday [16 June 2017] reminded him of a scene in the motion picture, The Godfather, during which Don Corleone, speaking at a meeting managed by Don Barzini, says "... I'm going to blame some of the people in this room" when discussing the safety of his son, Michael Corleone, while referencing the death of another son, Sonny Corleone.

According to the executive, "Obama didn't do enough, the Cubans didn't do enough, and Trump is doing too much... I blame all of them for where we are today." The executive noted that the Washington, DC-based United States Chamber of Commerce, of which the company is a longtime member, last placed a reference to the Republic of Cuba on its Internet site on 16 October 2016, before issuing a statement (and publishing it on the Internet site) on 16 June 2017. “Where were they for eight months?”

For United States-based companies, there exists an opportunity, not an ideal opportunity, pretty much an “gun-to-the-head” opportunity, but an opportunity nevertheless.

The Trump Administration has fired a starting pistol for a ninety-day (90) race by United States-based companies to sign with Republic of Cuba government-operated entities (presumably including military-affiliated) as many agreements as possible and have those agreements implemented before new regulations are promulgated.

According to the Trump Administration, agreements signed and implemented before the new regulations are promulgated are expected to be permitted to continue. The stated goal is to not interrupt existing commercial activities.    

According to the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury, “any Cuba-related commercial engagement that includes direct transactions with entities related to the Cuban military, intelligence, or security services that may be implicated by the new Cuba policy will be permitted provided that those commercial engagements were in place prior to the issuance of the forthcoming regulations.” LINK TO OFAC DOCUMENT

However, what if an agreement requires a license from the OFAC and/or a license from the Bureau of Industry and Security (BIS) of the United States Department of Commerce? Will those license applications be given expedited review? The OFAC recently reported a six-month (180-day) backlog to process license applications.

There are license applications pending with the OFAC by United States-based (but in some cases not United States-controlled) hotel management companies for contracts to manage properties within the Republic of Cuba that are controlled by the Revolutionary Armed Forces of the Republic of Cuba (FAR).

There are some FAR-controlled hotels in the Republic of Cuba, specifically within the city of Havana, whose occupancy rates since 2014 have consisted of more than 60%+ individuals subject to United States jurisdiction.

Another unknown is within the OFAC guidelines issued on 16 June 2017 reference is made to “lawful commercial activities” being permitted to continue. Will all commercial activities authorized (licensed) during the Obama Administration continued to be viewed as lawful?

The final unknown is the response from the government of the Republic of Cuba.  Will it work with United States-based companies during the next ninety days to advance, negotiate, agree and implement an expanded presence for United States-based companies?  Or, with the government of the Republic of Cuba continue to use the interest of United States-based companies as bait to entice companies in other countries to engage the Republic of Cuba marketplace?

Decisions for Cuba: Rebrand

Re-brand and/or transfer ownership.  The most efficient and most transparent means for the government of the Republic of Cuba to adhere to the new and newly-branded United States policies and regulations is to transfer ownership of Cimex (which includes Havanatur and Fincimex- financial services including credit/debit card processing) and Gaviota (travel, ground transportation) to an existing or a new Republic of Cuba government-operated entity.  

Where the decision not to transfer assets will become most acute is for those operations that were managed by Republic of Cuba government-operated Habaguanex and earlier in 2017 were absorbed by GAESA (Enterprise Administration Group), which is controlled by FAR.  

Habaguanex assets include most hotels, restaurants, retail stores, kiosks, service operations, and notable attractions within the area identified as "Old Havana," which is an essential, and often required component destination for individuals subject to United States jurisdiction who visit the Republic of Cuba within the twelve authorized categories of travel.  

The government of the Republic of Cuba is in a precarious place- for many governments, companies and financial institutions in Europe, Asia and in The Americas, decisions to export, import, provide services and create Direct Foreign Investment (DFI) during the last thirty-one months were based, solely or in part, upon a belief in a stable, preferably increasing, revenue stream from visitors subject to United States jurisdiction, and a limited, but optically-significant presence by United States-based companies.

The response by the government of the Republic of Cuba to the Trump Administration initiatives will not have the elasticity of previous years due to the increasingly negative pressures upon the economy of the Republic of Cuba by prices for imports and exports, lack of available financing sources, and decreasing beneficial relationships such as with Venezuela.

The most desired, but not necessarily the most likely, is for the government of the Republic of Cuba to create opportunities as soon as possible for United States-based companies to establish offices (including law firms), establish retail outlets, establish distribution centers, establish assembly operations, and establish manufacturing operations with entities affiliated with and/or controlled by the FAR and non-FAR entities. Overwhelm the Trump Administration with requests from United States-based companies.

The commercial, economic and political equations remain unaltered: With approximately two million inhabitants (citizens and residents) of Cuban descent residing in the United States, and residing (voting) in the electorally-sensitive states of Florida and New Jersey, they [likely] will be the determiners of the direction, dynamic, and impact of the bilateral relationship for the United States with the Republic of Cuba for the duration of the Trump Administration.

There is certainly a fairness issue in having what represents approximately eighteen (18%) of the population of the Republic of Cuba, currently 11.3 million, determine the bilateral relationship for a nation of 325 million… less than 1% controlling more than 99%.

If the Republic of Cuba continues commercial, economic and political policies which retard opportunities for its citizenry, as the United States defines those opportunities, and thus enacts limitations to prosperity and success, the Republic of Cuba will be hostage to the interests of the United States.

It’s dishonest to absolve, hold harmless, the government of the Republic of Cuba for contributing the landscape upon which the Trump Administration initiatives will seek to land and then impact the 800-mile long archipelago. There are consequences for action and for inaction.

During the twenty-five (25) months of the Obama Administration initiatives, the government of the Republic of Cuba permitted one property to be managed by a United States-based hotel company, permitted United States-based cellular operators to authorize roaming for their customers, permitted United States-based cruise lines to add cities to their itineraries, permitted a resumption of regularly-scheduled commercial airline service, and permitted its citizens to rent rooms and their residences to visitors.

The common-denominator for each of those permissions? Revenue to the Republic of Cuba with little challenge (real or imagined) to control and meaningful changes to existing operational structures. This is not to discard the importance and impact of increasing access to the Internet, and resulting exponential interest in social media and other forms of internal and external communication.

What was absent from a commercial perspective? Anything formidable. Anything shocking. Anything challenging.

No United States companies were permitted to establish representative offices (other than airlines sub-contracting ticket offices), no retail operations, no food service operations, no distribution centers, no assembly operations, no manufacturing operations. What most United States companies wanted to do, they were not permitted to do- other than spend time and spend money on numerous visits to the city of Havana to engage in dialogue.

Is how the United States views the Republic of Cuba fair? Probably not. Is it an affront to a country’s sovereignty?   Probably so. Is it a reality of disproportionate displacement of bilateral muscularity? Yes, it is and it is extremely difficult to change.

The government of the Republic of Cuba can accept and be abnormally impacted by the commercial, economic and political reach, including, the geographical proximity of the United States… and develop a strategy to benefit from it.

Or, the government of the Republic of Cuba can adhere to commercial, economic and political policies that maintain a less than stellar quality of opportunity for its citizens- restraining the trajectory of a demonstrable and permanent level of personal accomplishment- that which is not dependent upon or subordinated to the state.

The question that underlies everything: What is the pride of the Republic of Cuba worth? At what point in the historical timeline does the nation move forward from being hostage to history?

The Trump Administration Changes

The foundation of the Trump Administration initiatives requires the Republic of Cuba to do what three (3) statutes require: The Cuban Democracy Act (CDA) of 1992, the Libertad Act of 1996, and the Trade Sanctions Reform and Export Enhancement Act (TSREEA) of 2000. That’s nothing astonishing. Nothing surprising there.

The decision to restrict (not necessarily prohibit because there is expected to be relief for existing relationships) transactions with entities affiliated with and/or controlled by the Revolutionary Armed Forces of the Republic of Cuba (FAR) is meaningful, impactful, and disruptive.

However, this decision does not result in a binary choice- military-controlled or non-Republic of Cuba government-operated (meaning “private” as some Members of Congress and others have pronounced) as there are other Republic of Cuba government-operated companies which own and/or manage hotels, restaurants, ground transportation, and retail stores.

The choice for travelers is not between staying in a private residence or not visiting the Republic of Cuba. There are hotels in the Republic of Cuba which are owned by Republic of Cuba government-operated companies not officially controlled and/or affiliated with the FAR.

Consequences

Now the consequences of the wasted time on legislative efforts in from 2009 through 2014, and then again from December 2014 through January 2017 are singularly apparent, instructive, and impactful.

The focus all along should have been laser-like focus upon advocating and lobbying, as those distinctions are required, the Obama Administration to make changes to policies and regulations.

Unfortunately, the United States business community was unable to persuade The Honorable Benjamin Rhodes to 1) support direct correspondent banking 2) to support an increase in the variety of products that could be commercially imported beyond coffee and charcoal 3) to focus upon a settlement of the certified claims or 4) convince the government of the Republic of Cuba to authorize more of the Obama Administration initiatives which, if permitted, would have hobbled the activism of the Trump Administration.

The Trump Administration is reversing the most commercially-impactful optic and bilateral revenue stream of the most disruptive component of the Obama Administration’s initiatives- which also is the most statutorily-abused component of the Obama Administration initiatives… self-directed “people-to-people” travel within the Educational category of those authorized within the TSREEA, the statute which codified twelve (12) categories of travel to the Republic of Cuba and specifically prohibited travel for the purpose of tourism.

However, while self-directed “people-to-people” travel within the Educational category will be rescinded in favor of group travel, the OFAC has not yet defined “group” in terms of numbers. Will a group be defined as five, ten, fifteen, twenty, fifty? A smaller group could be efficiently distributed within one larger Airbnb-affiliated residence or several smaller Airbnb-affiliated residences.

There was a sufferance from delusion of importance by some Members of Congress and those advocates and lobbyists who proclaimed that the Obama Administration initiatives were “irreversible.” They were naïve, they were devoid of appreciating the political process; they were self-serving and confident in their magnificence, which resulted in a courage of their ignorance.

Protecting The Traveler

Perhaps, the only means for the United States government to assist travelers with identifying locations to avoid is the creation and distribution of an App or a Geiger Counter (“FAR-Finder”); without such real-time access to data, visitors could potentially claim entrapment if penalized for engaging in financial transactions with a prohibited entity and not having the means to proactively identify a prohibited entity.  

Who would the OFAC hold responsible for incurring penalties for unauthorized transactions?  The United States-based cruise line, tour operator and travel agent?  The individual traveler?

If a traveler (or group of travelers) visit a location, and reasonably in-good-faith believe the cruise line, tour operator and travel agent would only include a location that was authorized, who will be held accountable? 

Decisions for the United States: Will all travel/transportation-related (tours, ground transportation, restaurants, other services) transactions with Republic of Cuba government-operated Havanatur and Republic of Cuba government-operated Gaviota, each indirectly controlled through subsidiaries by the Revolutionary Armed Forces of the Republic of Cuba (FAR) be permitted to continue when there are other Republic of Cuba government-operated entities providing the same or similar services, but which are not controlled by FAR? Is that the unstated objective despite statements to the contrary?

A Last Question

Is the pride of the government of the Republic of Cuba worth meaningfully impacting US$1.2 billion (gross revenues from visits by individuals subject to United States jurisdiction) in 2016 and a projected US$1.5 billion in 2017; along with opportunities for hundreds of thousands of Republic of Cuba nationals? It may be so.

COMPLETE ANALYSIS IN PDF FORMAT

Previous Posts….

The App

The United States Department of State is to issue a list of entities within the Republic of Cuba that are deemed to be affiliated with and/or controlled by the Revolutionary Armed Forces of the Republic of Cuba (FAR), specifically those under the auspice of the Enterprise Administration Group (GAESA) and Corporacion Cimex SA (Cimex).

With the FAR having an ever-expanding landscape throughout the economy of the Republic of Cuba and, specifically, both vertical and horizontal integration within the hospitality industry, there will be a challenge for individuals subject to United States jurisdiction to identify hotels, restaurants, retail stores, and service providers that would be prohibited from transactions.

Thus, the United States Department of State, and likely the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury using the Specially Designated National (SDN) List, may consider creating an App which could be downloaded to a computer and wireless device and in real time, like GPS, provide a notification to the user if the establishment they are about to enter is on the prohibited list.

Such an App would then be updated in real time to add establishments and to remove establishments- as some may be transferred to other Republic of Cuba government-operated entities and may, perhaps, become registered independent businesses not subject to the list.

The "FAR-FINDER"

Could the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury soon require all individuals subject to United States jurisdiction who visit the Republic of Cuba within the twelve (12) authorized categories to carry an enhanced Geiger Counter?

The government of the Republic of Cuba reported that more than 600,000 individuals subject to United States jurisdiction visited the country in 2016, with overall visitors increasing by 145% during the first six (6) months of 2017 compared with the first six months of 2016.

The cost of a Geiger Counter generally ranges from US$300.00 to more than US$1,000.00, depending upon its level of accuracy.

The OFAC could offer software which would be implanted within a Geiger Counter (newly-marketed as the "FAR Finder") enabling the device to accurately detect when it is nearing an entity affiliated with and/or controlled by the Revolutionary Armed Forces of the Republic of Cuba (FAR).

Imagine thousands of travelers disembarking from a cruise ship attempting to determine if their device, rather than the device of someone nearby, is informing them of looming FAR-related doom?

Would each traveler be required to have a device? Or, would a group be permitted to share a device? What if a group-member becomes disoriented by conflicting noises from the device and stumbles into a prohibited location?

Would the device be programmed, via cellular roaming and Internet access, to immediately transmit the transgression to the OFAC which would then use automated software to issue a summons to the email address of the guilty party?

Perhaps, the government of the Republic of Cuba will make the process easier by placing signage at each FAR-related location.... "We'd love for you to join us, but you can't... you're embargoed." Oh, but of course they will.

What's a potential result? As in the 1920's with Prohibition, those activities which are deemed unlawful will earn more than if they were lawful.

Could This Be Required For All Travelers To Cuba? The "FAR-FINDER"

Could the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury soon require all individuals subject to United States jurisdiction who visit the Republic of Cuba within the twelve (12) authorized categories to carry an enhanced Geiger Counter?

The government of the Republic of Cuba reported that more than 600,000 individuals subject to United States jurisdiction visited the country in 2016, with overall visitors increasing by 145% during the first six (6) months of 2017 compared with the first six months of 2016. 

The cost of a Geiger Counter generally ranges from US$300.00 to more than US$1,000.00, depending upon its level of accuracy.

The OFAC could offer software which would be implanted within a Geiger Counter (newly-marketed as the "FAR Finder") enabling the device to accurately detect when it is nearing an entity affiliated with and/or controlled by the Revolutionary Armed Forces of the Republic of Cuba (FAR).

Imagine thousands of travelers disembarking from a cruise ship attempting to determine if their device, rather than the device of someone nearby, is informing them of looming FAR-related doom?

Would each traveler be required to have a device?  Or, would a group be permitted to share a device?  What if a group-member becomes disoriented by conflicting noises from the device and stumbles into a prohibited location?

Would the device be programmed, via cellular roaming and Internet access, to immediately transmit the transgression to the OFAC which would then use automated software to issue a summons to the email address of the guilty party?

Perhaps, the government of the Republic of Cuba will make the process easier by placing signage at each FAR-related location.... "We'd love for you to join us, but you can't... you're embargoed."  Oh, but of course they will.

What's a potential result?  As in the 1920's with Prohibition, those activities which are deemed unlawful will earn more than if they were lawful.....

Official Response From The Government Of The Republic Of Cuba (Spanish & English)

Declaración del Gobierno Revolucionario
Enviado por editor en Vie, 16/06/2017 - 20:44

Cualquier estrategia dirigida a cambiar el sistema político, económico y social en Cuba, ya sea la que pretenda lograrlo a través de presiones e imposiciones, o empleando métodos más sutiles, estará condenada al fracaso

El 16 de junio de 2017, el presidente de los Estados Unidos, Donald Trump, en un discurso cargado de una retórica hostil, que rememoró los tiempos de la confrontación abierta con nuestro país, pronunciado en un teatro de Miami, anunció la política de su gobierno hacia Cuba que revierte avances alcanzados en los dos últimos años, después que el 17 de diciembre de 2014 los presidentes Raúl Castro Ruz y Barack Obama dieran a conocer la decisión de restablecer las relaciones diplomáticas e iniciar un proceso hacia la normalización de los vínculos bilaterales.

En lo que constituye un retroceso en las relaciones entre los dos países, Trump pronunció un discurso y firmó en el propio acto una directiva de política denominada “Memorando Presidencial de Seguridad Nacional sobre el Fortalecimiento de la Política de los Estados Unidos hacia Cuba” disponiendo la eliminación de los intercambios educacionales “pueblo a pueblo” a título individual y una mayor fiscalización de los viajeros estadounidenses a Cuba, así como la prohibición de las transacciones económicas, comerciales y financieras de compañías norteamericanas con empresas cubanas vinculadas con las Fuerzas Armadas Revolucionarias y los servicios de inteligencia y seguridad, todo ello con el pretendido objetivo de privarnos de ingresos. El mandatario estadounidense justificó esta política con supuestas preocupaciones sobre la situación de los derechos humanos en Cuba y la necesidad de aplicar rigurosamente las leyes del bloqueo, condicionando su levantamiento, así como cualquier mejoría en las relaciones bilaterales, a que nuestro país realice cambios inherentes a su ordenamiento constitucional.

Trump derogó asimismo la Directiva Presidencial de Política “Normalización de las relaciones entre los Estados Unidos y Cuba”, emitida por el presidente Obama el 14 de octubre de 2016, la cual aunque no ocultaba el carácter injerencista de la política estadounidense, ni el objetivo de hacer avanzar sus intereses en la consecución de cambios en el orden económico, político y social de nuestro país, había reconocido la independencia, la soberanía y la autodeterminación de Cuba y al gobierno cubano como un interlocutor legítimo e igual, así como los beneficios que reportaría a ambos países y pueblos una relación de convivencia civilizada dentro de las grandes diferencias que existen entre los dos gobiernos. También admitía que el bloqueo era una política obsoleta y que debía ser eliminado.

Nuevamente el Gobierno de los Estados Unidos recurre a métodos coercitivos del pasado, al adoptar medidas de recrudecimiento del bloqueo, en vigor desde febrero de 1962, que no solo provoca daños y privaciones al pueblo cubano y constituye un innegable obstáculo al desarrollo de nuestra economía, sino que afecta también la soberanía y los intereses de otros países, concitando el rechazo internacional.

Las medidas anunciadas imponen trabas adicionales a las muy restringidas oportunidades que el sector empresarial estadounidense tenía para comerciar e invertir en Cuba.

A su vez, restringen aún más el derecho de los ciudadanos estadounidenses de visitar nuestro país, ya limitado por la obligación de usar licencias discriminatorias, en momentos en que el Congreso de los Estados Unidos, como reflejo del sentir de amplios sectores de esa sociedad, reclama no solo que se ponga fin a la prohibición de viajar, sino también que se eliminen las restricciones al comercio con Cuba.

Los anuncios del presidente Trump contradicen el apoyo mayoritario de la opinión pública estadounidense, incluyendo el de la emigración cubana en ese país, al levantamiento total del bloqueo y a las relaciones normales entre Cuba y los Estados Unidos.

En su lugar, el Presidente estadounidense, otra vez mal asesorado, toma decisiones que favorecen los intereses políticos de una minoría extremista de origen cubano del estado de Florida, que por motivaciones mezquinas no desiste de su pretensión de castigar a Cuba y a su pueblo, por ejercer el derecho legítimo y soberano de ser libre y haber tomado las riendas de su propio destino.

Posteriormente haremos un análisis más profundo del alcance y las implicaciones de este anuncio.

El Gobierno de Cuba denuncia las nuevas medidas de endurecimiento del bloqueo, que están destinadas a fracasar como se ha demostrado repetidamente en el pasado, y que no lograrán su propósito de debilitar a la Revolución ni doblegar al pueblo cubano, cuya resistencia a las agresiones de cualquier tipo y origen ha sido probada a lo largo de casi seis décadas.

El Gobierno de Cuba rechaza la manipulación con fines políticos y el doble rasero en el tratamiento del tema de los derechos humanos. El pueblo cubano disfruta de derechos y libertades fundamentales, y exhibe logros de los que se siente orgulloso y que son una quimera para muchos países del mundo, incluyendo a los propios Estados Unidos, como el derecho a la salud, la educación, la seguridad social, el salario igual por trabajo igual, los derechos de los niños, y el derecho a la alimentación, la paz y al desarrollo. Con sus modestos recursos, Cuba ha contribuido también a la mejoría de los derechos humanos en muchos lugares del mundo, a pesar de las limitaciones que le impone su condición de país bloqueado.

Los Estados Unidos no están en condiciones de darnos lecciones. Tenemos serias preocupaciones por el respeto y las garantías de los derechos humanos en ese país, donde hay numerosos casos de asesinatos, brutalidad y abusos policiales, en particular contra la población afroamericana; se viola el derecho a la vida como resultado de las muertes por armas de fuego; se explota el trabajo infantil y existen graves manifestaciones de discriminación racial; se amenaza con imponer más restricciones a los servicios de salud, que dejarían a 23 millones de personas sin seguro médico; existe la desigualdad salarial entre hombres y mujeres; se margina a emigrantes y refugiados, en particular los procedentes de países islámicos; se pretende levantar muros que denigran a vecinos; y se abandonan los compromisos internacionales para preservar el medio ambiente y enfrentar el cambio climático.

Asimismo, son motivo de preocupación las violaciones de los derechos humanos cometidas por los Estados Unidos en otros países, como las detenciones arbitrarias de decenas de presos en el territorio ilegalmente ocupado por la Base Naval de Guantánamo en Cuba, donde incluso se ha torturado; las ejecuciones extrajudiciales y las muertes de civiles causadas por bombas y el empleo de drones; y las guerras desatadas contra diversos países como Irak, sustentadas en mentiras sobre la posesión de armas de exterminio masivo, con consecuencias nefastas para la paz, la seguridad y la estabilidad de la región del Medio Oriente.

Recordamos que Cuba es Estado Parte de 44 instrumentos internacionales sobre los derechos humanos, mientras que los Estados Unidos lo es solo de 18, por lo que tenemos mucho que mostrar, opinar, y defender.

Al confirmar la decisión de restablecer las relaciones diplomáticas, Cuba y los Estados Unidos ratificaron la intención de desarrollar vínculos respetuosos y de cooperación entre ambos pueblos y gobiernos, basados en los principios y propósitos consagrados en la Carta de las Naciones Unidas. En su Declaración, emitida el 1 de julio de 2015, el Gobierno Revolucionario de Cuba reafirmó que “estas relaciones deberán cimentarse en el respeto absoluto a nuestra independencia y soberanía; el derecho inalienable de todo Estado a elegir el sistema político, económico, social y cultural, sin injerencia de ninguna forma; y la igualdad soberana y la reciprocidad, que constituyen principios irrenunciables del Derecho Internacional”, tal como refrendó la Proclama de América Latina y el Caribe como Zona de Paz, firmada por los Jefes de Estado y Gobierno de la Comunidad de Estados Latinoamericanos y Caribeños (CELAC), en su II Cumbre, en La Habana. Cuba no ha renunciado a estos principios ni renunciará jamás.

El Gobierno de Cuba reitera su voluntad de continuar el diálogo respetuoso y la cooperación en temas de interés mutuo, así como la negociación de los asuntos bilaterales pendientes con el Gobierno de los Estados Unidos. En los dos últimos años se ha demostrado que los dos países, como ha expresado reiteradamente el Presidente de los Consejos de Estado y de Ministros, General de Ejército Raúl Castro Ruz, pueden cooperar y convivir civilizadamente, respetando las diferencias y promoviendo todo aquello que beneficie a ambas naciones y pueblos, pero no debe esperarse que para ello Cuba realice concesiones inherentes a su soberanía e independencia, ni acepte condicionamientos de ninguna índole.

Cualquier estrategia dirigida a cambiar el sistema político, económico y social en Cuba, ya sea la que pretenda lograrlo a través de presiones e imposiciones, o empleando métodos más sutiles, estará condenada al fracaso.

Los cambios que sean necesarios en Cuba, como los realizados desde 1959 y los que estamos acometiendo ahora como parte del proceso de actualización de nuestro modelo económico y social, los seguirá decidiendo soberanamente el pueblo cubano.

Como hemos hecho desde el triunfo del 1ro. de enero de 1959, asumiremos cualquier riesgo y continuaremos firmes y seguros en la construcción de una nación soberana, independiente, socialista, democrática, próspera y sostenible.

La Habana, 16 de junio de 2017
Declaration of the Revolutionary Government
Submitted by editor on Fri, 06/16/2017 - 20:44

Declaration of the Revolutionary Government
Submitted by editor on Fri, 06/16/2017 - 20:44

Any strategy aimed at changing the political, economic and social system in Cuba, whether it seeks to achieve it through pressures and impositions, or by using more subtle methods, will be doomed to fail

On June 16, 2017, the President of the United States, Donald Trump, in a speech full of hostile rhetoric, which recalled the times of the open confrontation with our country, pronounced in a Miami theater, announced the policy of his Government to Cuba that reverses progress achieved in the last two years, after the presidents Raúl Castro Ruz and Barack Obama on December 17, 2014 announced the decision to reestablish diplomatic relations and begin a process towards the normalization of bilateral ties .

In what constitutes a setback in relations between the two countries, Trump made a speech and signed a policy directive called "Presidential Memorandum of National Security on Strengthening US Policy towards Cuba" Elimination of individual "people-to-people" educational exchanges and greater oversight of US travelers to Cuba, as well as the prohibition of the economic, commercial and financial transactions of US companies with Cuban companies linked to the Revolutionary Armed Forces and Intelligence and security services, all with the aim of depriving us of income. The US president justified this policy with alleged concerns about the human rights situation in Cuba and the need to rigorously apply the laws of the blockade, conditioning its lifting, as well as any improvement in bilateral relations, for our country to make changes inherent in Its constitutional order.

Trump also repealed the Presidential Policy Directive "Normalization of US-Cuba Relations," issued by President Obama on October 14, 2016, which, while not obscuring the intrusive nature of US policy, nor the goal of To advance its interests in the pursuit of changes in the economic, political and social order of our country, had recognized the independence, sovereignty and self-determination of Cuba and the Cuban government as a legitimate and equal interlocutor, as well as the benefits it would bring To both countries and peoples a relationship of civilized coexistence within the great differences that exist between the two governments. He also admitted that the blockade was an obsolete policy and should be eliminated.

Again, the United States Government resorted to coercive methods of the past, adopting measures to intensify the blockade, in force since February 1962, which not only causes damage and deprivation to the Cuban people and constitutes an undeniable obstacle to the development of our economy, But also affects the sovereignty and interests of other countries, inciting international rejection.

The announced measures impose additional obstacles to the very restricted opportunities that the US business sector had to trade and invest in Cuba.

In turn, they further restrict the right of US citizens to visit our country, already limited by the obligation to use discriminatory licenses, at a time when the United States Congress, as a reflection of the broad sectors of that society, Calls not only for an end to the travel ban, but also for the lifting of restrictions on trade with Cuba.

President Trump's announcements contradict the majority support of American public opinion, including that of Cuban emigration in that country, the total lifting of the blockade and the normal relations between Cuba and the United States.

Instead, the US president, again badly advised, makes decisions that favor the political interests of an extremist minority of Cuban origin in the state of Florida, who for petty reasons does not give up his claim to punish Cuba and its people, for To exercise the legitimate and sovereign right to be free and to have taken the reins of his own destiny.

Later we will do a more thorough analysis of the scope and implications of this announcement.

The Cuban Government denounces the new measures to tighten the blockade, which are destined to fail as has been shown repeatedly in the past, and which will not achieve its purpose to weaken the Revolution or to defeat the Cuban people, whose resistance to the aggressions of Any type and origin has been proven over almost six decades.

The Government of Cuba rejects manipulation for political purposes and double standards in the treatment of human rights. The Cuban people enjoy fundamental rights and freedoms, and exhibit achievements of which they are proud and are a chimera for many countries in the world, including the United States itself, such as the right to health, education, social security , Equal pay for equal work, children's rights, and the right to food, peace and development. With its modest resources, Cuba has also contributed to the improvement of human rights in many parts of the world, despite the limitations imposed by its status as a blockaded country.

The United States is not in a position to give us lessons. We have serious concerns about the respect and guarantees of human rights in that country, where there are numerous cases of murders, brutality and police abuses, particularly against the African American population; The right to life is violated as a result of gun deaths; Child labor is being exploited and there are serious manifestations of racial discrimination; Threatening to impose more restrictions on health services, which would leave 23 million people without health insurance; There is wage inequality between men and women; Migrants and refugees are marginalized, particularly those from Islamic countries; Is intended to erect walls that denigrate neighbors; And abandon international commitments to preserve the environment and address climate change.

Human rights violations committed by the United States in other countries, such as the arbitrary detention of dozens of prisoners in the territory illegally occupied by the Guantánamo Naval Base in Cuba, where they have even been tortured, are also a matter of concern; Extrajudicial executions and the deaths of civilians caused by bombs and the use of drones; And the wars unleashed against various countries like Iraq, based on lies about the possession of weapons of mass destruction, with dire consequences for the peace, security and stability of the Middle East region.

We recall that Cuba is a State Party to 44 international instruments on human rights, while the United States is only 18, so we have much to show, speak up, and defend.

In confirming the decision to reestablish diplomatic relations, Cuba and the United States ratified their intention to develop respectful and cooperative ties between the two peoples and governments, based on the principles and purposes enshrined in the Charter of the United Nations. In its Declaration, issued on July 1, 2015, the Cuban Revolutionary Government reaffirmed that "these relations must be based on absolute respect for our independence and sovereignty; The inalienable right of every State to choose the political, economic, social and cultural system, without interference in any way; And sovereign equality and reciprocity, which are inalienable principles of international law, "as endorsed by the Latin American and Caribbean Proclamation as a Zone of Peace, signed by the Heads of State and Government of the Community of Latin American and Caribbean States ( CELAC), at its II Summit, in Havana. Cuba has not renounced these principles and will never give up.

The Government of Cuba reiterates its willingness to continue respectful dialogue and cooperation on issues of mutual interest, as well as the negotiation of pending bilateral issues with the United States Government. In the last two years, it has been demonstrated that the two countries, as the President of the Councils of State and Ministers, General of the Army Raúl Castro Ruz, have repeatedly expressed, can cooperate and coexist civilly, respecting differences and promoting everything that benefits To both nations and peoples, but it should not be expected that Cuba will make concessions inherent in its sovereignty and independence, nor will it accept any kind of conditionality.

Any strategy aimed at changing the political, economic and social system in Cuba, whether it seeks to achieve this through pressures and impositions, or by using more subtle methods, will be doomed to failure.

The changes that are necessary in Cuba, such as those made since 1959 and those that we are undertaking now as part of the process of updating our economic and social model, will continue to be decided sovereignly by the Cuban people.

As we have done since the triumph of the 1st. January 1959, we will assume any risk and continue to be firm and secure in building a sovereign, independent, socialist, democratic, prosperous and sustainable nation.

The App & The 90-Day Race

The App

The United States Department of State is to issue a list of entities within the Republic of Cuba that are deemed to be affiliated with and/or controlled by the Revolutionary Armed Forces of the Republic of Cuba (FAR), specifically those under the auspice of the Enterprise Administration Group (GAESA) and Corporacion Cimex SA (Cimex).

With the FAR having an ever-expanding landscape throughout the economy of the Republic of Cuba and, specifically, both vertical and horizontal integration within the hospitality industry, there will be a challenge for individuals subject to United States jurisdiction to identify hotels, restaurants, retail stores, and service providers that would be prohibited from transactions.

Thus, the United States Department of State, and likely the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury through the use of the Specially Designated National (SDN) List, may consider creating an App which could be downloaded to a computer and wireless device and in real time, like GPS, provide a notification to the user if the establishment they are about to enter is on the prohibited list.

Such an App would then be updated in real time to add establishments and to remove establishments- as some may be transferred to other Republic of Cuba government-operated entities and may, perhaps, become registered independent businesses not subject to the list.

The 90-Day Race

The Trump Administration has now fired a starting pistol. The race is for United States-based companies to sign as many agreements as possible and have those agreements implemented, before the new regulations, expected within ninety (90) days, are promulgated.

Those agreements are expected to be permitted to continue; but, what if they require a license from the OFAC or from the Bureau of Industry and Security (BIS) of the United States Department of Commerce? Will those license applications be given expedited review?

Another unknown is within the OFAC guidelines issued today reference is made to “lawful commercial activities” being permitted to continue. Will those activities authorized during the Obama Administration continued to be viewed as lawful?

The final unknown is the response from the government of the Republic of Cuba.  Will it work with United States-based companies during the next ninety days to advance, negotiate, agree and implement an expanded presence for United States-based companies?  Or, continue to use the interest of United States-based companies as bait to entice companies in other countries to engage the Republic of Cuba marketplace?

The most desired, but not necessarily the most likely, is for the government of the Republic of Cuba to create opportunities as soon as possible for United States-based companies to establish offices (including law firms), establish retail outlets, establish distribution centers, establish assembly operations, and establish manufacturing operations with entities affiliated with and/or controlled by the Revolutionary Armed Forces of the Republic of Cuba (FAR) and non-FAR entities.