U.S. Secretary Of Agriculture Discusses Changing Payment Terms For Exports To Cuba

Ag Secretary Purdue visits Illinois; talks trade, immigration, regulation

By Tim Landis Tribune News Service
The State Journal-Register
Springfield, Illinois

8 August 2017

U.S. Secretary of Agriculture Sonny Perdue met with farmers and local ag officials in Springfield on Monday during a stop on his five-state, Midwest listening tour.

"Q. What’s the future of trade relations with Cuba?

A. The problem with Cuba is their inability to pay for it. Some people would support the ability to go to the private market for capital. That would be helpful to agriculture.

I support the president in not rewarding a nation that’s oppressed the people like the Cuban people have been oppressed over the years. I do not favor using taxpayer-funded credits for Cuba. I think that would be very selfish on our part in agriculture in the U.S. While we think it’s a good market, actually there are better markets to go after in Southeast Asia, in Europe, South Korea, Japan, and developing markets in other places."

A reason why legislation to permit private sector payment terms for agricultural exports from the United States to the Republic of Cuba continues to fail?

http://www.cubatrade.org/blog/2016/5/11/want-to-have-a-legislative-victory-then-be-specific-define-payment-terms?rq=want%20a%20

Air China Establishes Office In Havana, Cuba

HAVANA, Aug. 3 (Xinhua) -- China's flagship airline, Air China, opened on Thursday a commercial office in Cuba to boost tourism cooperation between the two nations and the Caribbean area.

In a ceremony chaired by China's ambassador to Cuba Chen Xi and Air China's general manager in Cuba Zhang Xin, the office opened to facilitate travel between the Cuban capital and Beijing through the direct flight which has been operating since the end of 2015.

"The Air China brand has been increasingly popular in Cuba and the Caribbean countries. From today on, we will offer better services to all passengers with this office," Zhang said.

He introduced that since the inaugural flight of Air China to Cuba about 24,000 travelers of different nationalities have chosen to take this airline.

"There have been 156 flights between Beijing and Havana and we have maintained regularity, safety and comfort in all its trips," he said.

For his part, Ambassador Chen said the opening of this office, together with the existing regular flights, will promote cooperation in the tourism and air transport sectors.

"This direct flight has played an important role in facilitating personal exchanges between China and Cuba as well as Latin America. In addition, it has greatly contributed to the development of cooperation in different areas," Chen said.

The diplomat stated that Sino-Cuban relations are at their best after more than half a century of ties and without a doubt this direct link will help promote the visit of Chinese tourists to the island.

"Cuba has very attractive natural resources for Chinese tourists, very warm people, as well as a picturesque landscape, blue seas and fine beaches," he said.

Chen said that cooperation in tourism and air transport will have great potential and good prospects due to the interest of Chinese travelers to know Cuba and different Caribbean nations.

With a duration of almost 20 hours of flight and a technical stop in Montreal, Canada, Air China's flight to Cuba is the only direct link between China and the Caribbean region.

Why Did An Obama Administration NSC Official Perpetrate A Falsehood To “The Hill”?

He argues that the statutory speed limit for Republic of Cuba-related policy and regulatory changes was reached by 20 January 2017 and there was no opportunity to exceed it… in reality, the Obama Administration was doing 35 mph in a 55 mph zone for 766 days.  Couldn’t it have at least considered 45 mph or braved 60 mph?

An argument as to strategy versus statute would have a foundation; one that could be argued.  This is not that argument.  This is a progressive re-write of history to disguise culpability for a dissolving attempt at normalized relations between the United States and Republic of Cuba.

United States companies appreciated and continue to appreciate the risks relating to commercial engagement with the Republic of Cuba; and some were prepared to accept those risks; the Obama Administration unilaterally created limitations as to how the United States private sector defined opportunity.  That wasn’t their job.

The policy and regulatory changes that were critical for commercial engagement with the Republic of Cuba, which would have likely compelled the government of the Republic of Cuba to accept that engagement, were denied by the Obama Administration.

The comments by the individual are likened to knowingly spreading as fertilizer falsehoods with an expectation that the more they are spread, the more factual they will become: the Obama Administration did all that it could do; applaud those efforts.

The Trump Administration can do what it will because of what the Obama Administration and Castro Administration did not do… by choice, not by law.  Most of the “disadvantages” to United States companies were inflicted by the Obama Administration.

The comments by the individual are efforts to promote legislative activity to then profit from it as a consultant; presenting as a hero to those who sought more- i.e., Obama Administration staff did all that was possible.

The article on 26 July 2017 in The Hill provided a sound narrative, sadly one of too few, as to what the Obama Administration did and did not do.  There are, however, twofold concerns with the article.  Important to note that the Castro Administration shares culpability for what did not happen.

First, United States companies had 766 days throughout which to engage with the Republic of Cuba; and the expectation by many beginning at the end of 2015 and continuing through the first ten months (or more) of 2016 was for an 8 November 2016 transition from one member of the Democrat Party to another member of the Democrat Party.  The focus is about fluidity rather than point-to-point. 

Most United States companies were not hesitant as they did not expect disruption to Obama Administration policies and regulations from its successor; quite the contrary- they expected at minimum continuity and at maximum expansion. 

That United States companies were hesitant because of the potential that policies and regulations might be reversed is a component of the hesitancy; the primary reason for hesitancy was that the Obama Administration did not do more throughout the 766 days despite advocacy to do so.  More should have been done in a front-loaded manner to provide ample opportunity for United States companies to present to and contract with the government of the Republic of Cuba well-before the third quarter of 2016.  The Obama Administration never planned for an end to their legacy-building efforts; they were wrong to do so.  They waited too long.  They never did what was difficult. 

Second, the two concluding paragraphs of the article provide, without challenge or refute, that the reason for what the Obama Administration did not do was due to the constraint of a statute or statutes, rather than due to a constraint of vision.

Mr. Mark Feierstein, Senior Director for Western Hemisphere affairs at the National Security Council (NSC) during the Obama Administration, has been asked to provide the statute(s) that he posited as the reason(s) for what the Obama Administration did not do with respect to policy and regulatory changes relating to the Republic of Cuba.  He has chosen not to respond.  That’s not surprising.  What he was quoted as saying was demonstrably untrue, was false; what some might consider a lie.

Some of what the Obama Administration did (and partially didn’t) do:

·        authorize only two commercial (agricultural) imports- coffee and charcoal; there is no statutory limitation as to number.  There is no statute that proscribes zero products or one product or two products or three products or more.  There is no statute that requires coffee instead of mango or tobacco; charcoal instead of bricks or alcoholic beverages. 

·        50% of what was required for direct correspondent banking- Republic of Cuba government-operated banks were not permitted to have accounts with United States-based banks, but United States-based banks were permitted to have accounts with Republic of Cuba government-operated banks.  Result was continuation of an inefficient and expensive three-country process to send and receive funds relating to authorized transactions.  One small United States bank located in the state of Florida has an account with a Republic of Cuba government-operated bank; to send and receive funds, transactions use a Panama-based bank, which receives revenues from the transactions.  And the statute(s) that required this?

·        limited removal of international financial transaction restrictions (complete removal would have encouraged large-scale banking and credit card/charge card/debit card activity; three United States banks have authorized their Mastercard-branded products.  No Visa.  No American Express.  No Discover).

·        two meetings about the 5,913 certified claims in 2,923 days (766 days if calculated from 17 December 2014).  The Libertad Act of 1996 encourages the settlement of the certified claims.

·        Cabinet Secretaries disagreeing about whether their delegations could include representatives of United States companies.  Two said no; one said yes.  Was one in violation of United States law? 

None of the above-referenced were prohibited by a statute or statutes.  They were limited by timid decision, not limited by law.  The driving equivalent is choosing to travel at 35 mph when the speed limit is 55 mph.  At least two results: impeding traffic which wants to move at a faster pace and increasing the time until reaching a destination.  For United States companies, they were left with less opportunity to decide and fewer opportunities about which to decide.

Each of the following 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.  Although permitted by regulations and policies implemented during the Obama Administration and thus far uninterrupted during the Trump Administration, the Castro Administration has not permitted United States companies to have:

·        representative offices (other than airlines)

·        retail stores

·        distribution centers

·        assembly facilities

·        manufacturing operations

·        ferry services (even on a trial basis)

·        permit United States companies to directly export to the 200+ categories of licensed businesses; products could have payment/financing terms and include machinery, agricultural equipment, restaurant equipment, beauty salon supplies, and many other products

If Mr. Feierstein had said that because the Castro Administration had not permitted all or most or some of these activities, the Obama Administration believed that further expansive policy and regulatory changes were inappropriate, there would be an argument for that position.  This is not, however, what Mr. Feierstein presented and what The Hill reported.

It’s revisionism.  That’s being polite.

In Cuba, Obama policies only went so far

BY MELANIE ZANONA - 07/26/17

HAVANA — Hanging in the office of a mechanics garage in central Havana, where Julio Álvarez has made a living off of renovating classic American cars and chauffeuring tourists around the island, a round yellow sign reads: “We use genuine Chevrolet parts.”

But those words do little to convey how hard Álvarez works behind the scenes to obtain American goods from the United States — a chronic challenge facing many Cubans despite a series of regulatory changes from President Obama designed to ease restrictions on trade and commerce between the U.S. and Cuba.

While Obama made it legal for Cuban nationals to open bank accounts in the U.S. last March, private Cuban businesses were not authorized to set up their own financial accounts in the country. There are also limited services and restrictions on the allowed transactions for Cubans who do have U.S. accounts.

Speaking through a translator, Álvarez explained that he has to purchase automobile parts in America using U.S. dollars, but as a business owner, he isn’t allowed to have his own bank account in the country. That means he has to borrow someone else’s credit card in the U.S. — a process that he says ends up costing him 20 percent more.

“The only way I can restore all these cars is importing parts from the U.S. … But I don’t have a credit card or bank account to pay the people who sell the parts,” Álvarez said. “So I need to use a credit card from a friend. And normally people charge you to use their card.”

“It’s very expensive to give life to these cars,” he added.

One month after President Trump announced that he was reversing some of Obama’s efforts to thaw relations between Washington and Havana, it’s clear that things still haven’t even fully melted yet.

Cuban entrepreneurs, economists and officials — who support lifting the embargo — acknowledged during a three-day visit to Cuba’s capital by The Hill that some of Obama’s policy changes toward the country didn’t go as far as they could have.

Part of the reason is that the Obama administration had only been implementing changes for two years before Trump took over. But it’s also because Obama, who was eager to push ahead with the historic rapprochement, made changes unilaterally, meaning some of his policies lacked the teeth to be fully realized.

One example is the promise that American cash and credit would flow through the country.  In an effort to make it easier for Americans to travel to Cuba, Obama made it legal for banks to allow U.S. travelers to use debit and credit cards while visiting. Yet years after the move, only a small Florida-based bank has actually followed through.

Nervous financial institutions have been afraid to operate in Cuba because they are worried that Obama’s policies, which were all done through executive order, could just as easily be undone by Trump.

The failure to allow the transactions has created headaches for American travelers, who should carry around huge wads of cash in Cuba. It’s also an issue for U.S. companies trying to do business there. 

U.S. hotels that have opened up in Cuba have to use third-party banks to secure the necessary financing.

And Airbnb, which considers Cuba its fastest-growing market, uses intermediaries to pay Cuban hosts. Sometimes that involves delivering money directly to a host’s doorstep, a process that can take 15 days and may be impractical.
“They pay us in cash. Airbnb sends money to all the Cubans,” said Julia de la Rosa, co-owner of La Rosa de Ortega B&B, which is listed on Airbnb. “It is a very complex mechanism.”

In his package of regulatory changes announced last year, Obama also allowed so-called U-turn transactions, which would permit U.S. banks to process international transactions between Cuba and other non-U.S. parties. That has been a top priority for Cuba, since most dollar-denominated transactions are cleared through the U.S. financial system.

But even though the banks are allowed to process such transactions, they aren’t required to do so, and thus have been reluctant to handle them amid the cloud of uncertainty.

The banks are likely wary of facing hefty fines. The U.S. has penalized international banks in the past for violating U.S. sanctions because of processing Cuban financial transactions.

“Former President Obama issued a measure to make it possible, the use of the U.S. dollar, the U.S. currency, in international transactions related to Cuba. … It couldn’t be implemented,” said María de la Luz B’Hamel, director of North American commercial policy for Cuba’s Ministry of Foreign Trade and Investment.

“Because at the same time, the Treasury Department did not stop announcing and applying sanctions and measures against companies and banks because of transactions that they had in the past. … By nature, [banks] are conservative, but if they are threatened in that way, it’s even worse.”

Even before Trump was sworn into office, Cubans had been pressing the White House to offer more flexibility when it comes to bank accounts and to provide greater assurances to U.S. financial organizations that have been too scared to engage with Cuba.

“We had been discussing this when Obama’s administration came,” Álvarez said. “We have talked to two banks, but nothing has been done.”

Challenges in shipping

Another knotty issue is allowing goods and packages to be shipped to Cuba from the U.S.  The U.S. Postal Service resumed direct mail service to Cuba last March, but packages and gifts are subject to weight restrictions, and their retail value can’t exceed $800. That’s why it is common to see people in the airport lugging toys, home goods and other U.S. products onto Cuba-bound flights.

The Obama administration did, however, authorize sending direct cargo. FedEx got approval to start scheduled flights to Cuba beginning this April. But the cargo company had to get an extension until October 2017, citing “operational challenges.”

“The extension … is needed in order to address operational challenges in the Cuban market,” FedEx said in a statement to reporters at the time. “FedEx is continuing to work to establish ground support services necessary for express delivery services for our customers.”  Cubans are thus still facing hurdles in trying to obtain goods from the U.S.

Álvarez, whose fleet of classic cars includes a black 1959 Chevy Impala and pink 1955 Chevy Bel Air, says he can’t always fly to America to personally pick up automobile parts that he has purchased. In that case, Álvarez has to first have the parts shipped to Panama and then shipped to Cuba, which he says can slow down his business.  “It can take at least six months to get parts in Cuba,” Álvarez said.

While Cubans had pressed for more changes, those who were involved in the policymaking said they believe the Obama administration went as far as it legally could without violating the embargo — something only Congress could lift.

“In the Obama administration, we went as far as the law would allow in making it easier to travel to and engage in commerce with Cuba,” said Mark Feierstein, Obama’s senior director for Western Hemisphere affairs at the National Security Council. 

“Now it’s up to Congress, which has the authority to lift the embargo and end a policy that hurts the Cuban people and disadvantages American companies and workers.” 

http://thehill.com/policy/transportation/343754-in-cuba-obama-policies-only-went-so-far

 Complete Analysis In PDF Format

OFAC Issues New Guidance For Cuba Regulations- Adds "Subentities"

UPDATED JULY 25, 2017

Department of the Treasury

Office of Foreign Assets Control (OFAC)

Frequently Asked Questions on President Trump’s Cuba Announcement

1.      How will OFAC implement the changes to the Cuba sanctions program announced by the President on June 16, 2017?  Are the changes effective immediately?

OFAC will implement the Treasury-specific changes via amendments to its Cuban Assets Control Regulations. The Department of Commerce will implement any necessary changes via amendments to its Export Administration Regulations. OFAC expects to issue its regulatory amendments in the coming months. The announced changes do not take effect until the new regulations are issued.

2.      What is individual people-to-people travel, and how does the President’s announcement impact this travel authorization?

Individual people-to-people travel is educational travel that: (i) does not involve academic study pursuant to a degree program; and (ii) does not take place under the auspices of an organization that is subject to U.S. jurisdiction that sponsors such exchanges to promote people-to-people contact. The President instructed Treasury to issue regulations that will end individual people-to-people travel. The announced changes do not take effect until the new regulations are issued.

3.      Will group people-to-people travel still be authorized?

Yes. Group people-to-people travel is educational travel not involving academic study pursuant to a degree program that takes place under the auspices of an organization that is subject to U.S. jurisdiction that sponsors such exchanges to promote people-to-people contact. Travelers utilizing this travel authorization must: (i) maintain a full-time schedule of educational exchange activities that are intended to enhance contact with the Cuban people, support civil society in Cuba, or promote the Cuban people’s independence from Cuban authorities, and that will result in meaningful interaction between the traveler and individuals in Cuba; and (ii) be accompanied by an employee, consultant, or agent of the sponsoring organization, who will ensure that each traveler maintains a full-time schedule of educational exchange activities. In addition, the predominant portion of the activities engaged in by individual travelers must not be with prohibited officials of the Government of Cuba or prohibited members of the Cuban Communist Party (as defined in the regulations). Once OFAC issues the new regulations, new individual people-to-people travel will not be authorized.

4.      Will organizations subject to U.S. jurisdiction that sponsor exchanges to promote people-to-people contact be required to apply to OFAC for a specific license?

No. To the extent that proposed travel falls within the scope of an existing general license, including group people-to-people educational travel, persons subject to U.S. jurisdiction may proceed with sponsoring such travel without applying to OFAC for a specific license. It is OFAC’s policy not to grant applications for a specific license authorizing transactions where a general license is applicable.

Once the State Department publishes its list of entities and subentities with which direct transactions will not be authorized and OFAC issues its regulations, no new transactions, including travel-related transactions, may be initiated with these identified entities and subentities. Prior travel arrangements that may involve these entities or subentities will still be authorized.  See FAQ 8.

5.      How do the changes announced by the President on June 16, 2017 affect individual people-to-people travelers who have already begun making their travel arrangements (such as purchasing flights, hotels, or rental cars)?

The announced changes do not take effect until OFAC issues new regulations. Provided that the traveler has already completed at least one travel-related transaction (such as purchasing a flight or reserving accommodation) prior to the President’s announcement on June 16, 2017, all additional travel-related transactions for that trip would also be authorized, including if the trip occurs after OFAC issues new regulations, provided the travel-related transactions are consistent with OFAC’s regulations as of June 16, 2017. Once the State Department publishes its list of entities and subentities with which direct transactions will not be authorized and OFAC issues its regulations, no new transactions may be initiated with these identified entities and subentities. Prior travel arrangements that may involve these entities or subentities will still be authorized.  See FAQ 8.

6.      How does the new policy impact other authorized travel to Cuba by persons subject to U.S. jurisdiction?

The new policy will also impact certain categories of educational travel as well as travel under support for the Cuban people, as set forth in the National Security Presidential Memorandum signed by the President on June 16, 2017.  In addition, following the issuance of OFAC’s regulatory changes, travel-related transactions with prohibited entities identified by the State Department will not be permitted, unless otherwise authorized by OFAC.  Guidance will accompany the issuance of the new regulations.

7.      Will persons subject to U.S. jurisdiction be required to apply to OFAC for a specific license to engage in Cuba-related travel and transactions consistent with the other authorized categories of travel?

To the extent that proposed travel falls within the scope of an existing general license, persons subject to U.S. jurisdiction may proceed with such travel without applying to OFAC for a specific license. It is OFAC’s policy not to grant applications for a specific license authorizing transactions where a general license is applicable. Once the State Department publishes its list of entities and subentities with which direct transactions will not be authorized and OFAC issues its regulations, no new transactions may be initiated with these identified entities and subentities. Prior travel arrangements that may involve these entities or subentities will still be authorized.  See FAQ 8.

8.      How do the changes announced by the President on June 16, 2017 affect authorized travelers to Cuba whose travel arrangements may include direct transactions with entities related to the Cuban military, intelligence, or security services that may be implicated by the new Cuba policy?

The announced changes do not take effect until OFAC issues new regulations. Consistent with the Administration’s interest to avoid negatively impacting Americans for arranging lawful travel to Cuba, any travel-related arrangements that include 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 travel arrangements were initiated prior to the State Department listing of the entity or subentity. Once the State Department adds an entity or subentity to the list, new direct financial transactions with the entity or subentity will not be permitted, unless authorized by OFAC.

9.      How do the changes announced by the President on June 16, 2017 affect companies subject to U.S. jurisdiction that are already engaged in the Cuban market and that may undertake direct transactions with entities related to the Cuban military, intelligence, or security services that may be implicated by the new Cuba policy?

 The announced changes do not take effect until OFAC issues new regulations.  Consistent with the Administration’s interest in not negatively impacting American businesses for engaging in lawful commercial opportunities, Cuba-related commercial engagement that includes direct transactions with entities and subentities related to the Cuban military, intelligence, or security services that may be implicated by the new Cuba policy will be permitted after the issuance of new regulations by OFAC, provided that those commercial engagements were in place prior to the issuance of the forthcoming regulations. For example, businesses will be permitted to continue with transactions outlined in contingent or other types of contractual arrangements agreed to prior to the issuance of the new regulations, consistent with other CACR authorizations.

10.  Does the new policy affect the means by which persons subject to U.S jurisdiction may purchase airline tickets for authorized travel to Cuba?

No. The new policy will not change the means by which persons subject to U.S. jurisdiction traveling to Cuba pursuant to the 12 categories of authorized travel may purchase their airline tickets.

11.  Can I continue to send authorized remittances to Cuba?

Yes. The announced policy changes will not change the authorizations for sending remittances to Cuba. Additionally, the announced changes include an exception that will allow for transactions incidental to the sending, processing, and receipt of authorized remittances to the extent they would otherwise be restricted by the new policy limiting transactions with certain identified Cuban military, intelligence, or security services. However, consistent with the President’s policy announcement, changes will be made to the definition of prohibited members of Government of Cuba that may exclude certain persons from receipt of such remittances.

12.  How will the new policy impact existing OFAC specific licenses?

The forthcoming regulations will be prospective and thus will not affect authorized transactions under existing specific licenses, unless explicitly noted.

13.  How will U.S. companies know if a Cuban counterpart is affiliated with a prohibited entity or subentity in Cuba?

The State Department will be publishing a list of entities and subentities with which direct transactions generally will not be permitted. Guidance will accompany the issuance of the new regulations. The announced changes do not take effect until the new regulations are issued.

14.  Is authorized travel by cruise ship or passenger vessel to Cuba impacted by the new Cuba policy?

Persons subject to U.S. jurisdiction will still be able to engage in authorized travel to Cuba by cruise ship or passenger vessel.

Following the issuance of OFAC’s regulatory changes, travel-related transactions with prohibited entities and subentities identified by the State Department generally will not be permitted.  Guidance will accompany the issuance of the new regulations.

For more information on the National Security Presidential Memorandum visit: https://www.whitehouse.gov/blog/2017/06/16/fact-sheet-cuba-policy.

Guidance In PDF Format

Those With Preferential Access To Obama Administration Seek From Trump Administration What They Couldn’t Get

Those With Preferential Access To Obama Administration Seek From Trump Administration What They Couldn’t Get.  Really?  Yes.  

Time To Shift From Relational To Transactional?

Game Of Chicken Using Repelling Magnets

Brilliant To Focus Upon FAR

On 18 July 2017, an event in Washington DC made use of eight (8) Republic of Cuba nationals who are licensed to engage in some of the 200+ categories of government-authorized self-employment in the Republic of Cuba. 

The primary focus of the event was to sway the Trump Administration to limit the reach of its regulatory and policy revisions expected to be implemented in September 2017.  In so doing, however, they unmasked the reason for another agenda.

The Honorable Jeff Flake (R- Arizona) and The Honorable Patrick Leahy (D- Vermont), members of the United States Senate, and an advocacy/lobbying organization chose to shield the reason for a component of the necessity for such an event:  their failures with the Obama Administration.

These Members of Congress along with others from both chambers- Democrat, Republican, Independent and advocates and lobbyists, (above the radar and below the radar) had eight (8) years of the Obama Administration (including twenty-five (25) months from 17 December 2014 when the official rapprochement was announced by Presidents Barack Obama and Raul Castro) during which they enjoyed preferential access to officials of the Obama Administration- within The White House, the United States Department of State, United States Department of Commerce, United States Department of Justice, and United States Department of the Treasury and preferential access to officials of the Castro Administration- Ministry of Foreign Affairs, Ministry of Foreign Trade, Ministry of Interior, Revolutionary Armed Forces, and Chamber of Commerce.  The numbers of exchanges (public and undisclosed) in Washington DC and in Havana was counted in the hundreds.

Now, along with lessening the impact of to-be-revised regulations and policies, they seek from the Trump Administration new regulations and policies- what they failed to obtain from the Obama Administration when there was a stated desire from The White House for full-throttled engagement and these individuals had their emails responded to within minutes. 

They want continued political (financial) support to perpetuate this malpractice; to support their livelihood and relevance.  The support should be decapitated. 

There mustn’t be a repeat of the same mistakes by the same individuals.  United States companies should not listen to advice from those who failed to obtain more (including the most basic commercial requirements) when they should have been able to do so and now want to be supported and paid to prevent changes to what they failed to secure while promoting their unique access to and influence of officials in Washington DC and Havana.

If change is desired, why are these individuals determined to maintain the most illusory pathway?  These are the brilliant political strategists who squandered twenty-five months seeking legislative remedies- which were never going to happen, rather than seeking regulatory remedies- which should have been easy to obtain given the self-promoted unique access to the Obama Administration which was claimed by these individuals.

The narrative becomes more absurd when the letter they created and sent under the signatures of the eight Republic of Cuba nationals to the United States Department of State, United States Department of the Treasury and United States Department of Commerce includes the following passages:

·       “Third, we recommend greater flexibility for Cubans wishing to open bank accounts in the United States. Many Cuban entrepreneurs purchase goods and services in the United States to help run their businesses. Cubans are legally permitted to open bank accounts in the U.S., but there are restrictions on the allowable transactions, and limited and uncertain account services, impairing businesses in both countries.”

·       “Expand the allowable transactions for Cubans holding bank accounts in the U.S. to include business-related transactions including the acquisition of goods for business use. 

·       Do not close, and allow access to U.S. bank accounts held by Cubans when the Cuban individual is not present in the U.S.  

·       Make public statements clarifying the intent of the Administration to allow Cubans to open bank accounts in the U.S. (limiting risk for banks).” 

There is value in what the letter requests.  That’s not the issue.  The issue is to not permit the history to be obscured by the present.  

For twenty-five months, the Obama Administration and the government of the Republic of Cuba engaged in 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.  Where was the forward-thinking (evaluating the impact of the unexpected) political intelligence in Washington DC and in Havana?  What were Members of Congress, advocates, lobbyists, and diplomats talking about? 

What the Trump Administration seeks to do is a direct result of what the Obama Administration did not do in terms of expanded regulations and issuance of licenses; and what the Castro Administration did not do in terms of enlarging the portfolio of opportunities for United States companies.   

What the Obama Administration did (and partially didn’t) with the purported support from some Members of Congress, advocates and lobbyists; if the supporters were unable to obtain these easily digestible (and critically important) regulatory/policy changes, what value (access) do they have with the Trump Administration?

·       authorize only two commercial agricultural imports- coffee and charcoal; there was no statutory limitation as to number.

·       50% of what was required for direct correspondent banking- Republic of Cuba government-operated banks were not permitted to have accounts with United States-based banks, but United States-based banks were permitted to have accounts with Republic of Cuba government-operated banks.  Result was continuation of an inefficient and expensive three-country process to send and receive funds relating to authorized transactions.  One small United States bank located in the state of Florida has an account with a Republic of Cuba government-operated bank; to send and receive funds, transactions use a Panama-based bank, which receives revenues from the transactions.

·       limited removal of international financial transaction restrictions (complete removal would have encouraged large-scale banking and credit card/charge card/debit card activity; three United States banks have authorized their Mastercard-branded products.  No Visa.  No American Express.  No Discover).

·       two meetings about the 5,913 certified claims in 2,923 days (766 days if calculated from 17 December 2014).

·       Cabinet Secretaries disagreeing about whether their delegations could include representatives of United States companies. 

·       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; and more than one hundred (100) representatives of the government of the Republic of Cuba visited the United States during the same period.

Although permitted by regulations and policies implemented during the Obama Administration and thus far uninterrupted during the Trump Administration, the government to the Republic of Cuba has not permitted United States companies to have:

·       representative offices (other than airlines)

·       retail stores

·       distribution centers

·       assembly facilities

·       manufacturing operations

·       ferry services (even on a trial basis)

·       permit 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.

Why aren’t Members of Congress and advocates and lobbyists holding public events in Havana with representatives of the National Assembly of People’s Power to seek support from the government of the Republic of Cuba and its citizens to make changes to regulations and policies which would make easier and make permanent direct engagement with United States companies?  Because, they will argue, pressure, transparency and enlightenment are not effective tools in Havana; whatever they have been and continue to use in Havana and in Washington DC haven’t been effective and sustainable tools.

Members of Congress, United States government officials, advocates and lobbyists who spent twenty-five months attending self-congratulatory cocktail parties, meetings (public, undisclosed and secret), conferences (including exclusive use of facilities at The White House), hearings, and media events are responsible for the fragility of the presence in the Republic of Cuba by United States companies. 

By focusing upon interacting with those with whom they agreed, they neglected to listen to voices with historical commercial perspective, with a not unexpected result.

There remain too many licenses and authorizations issued by the OFAC, BIS, and United States Department of State that have yet to be implemented- and the validity of some licenses may expire before what could have been will have been.

The most callous example of political duplicity by some Members of Congress, advocates and lobbyists relate to introducing legislation to change the cash-in-advance payment requirement of the Trade Sanctions Reform and Export Enhancement Act (TSREEA) of 2000 which re-authorized the direct export of food products and agricultural commodities from the United States to the Republic of Cuba.  Since the first exports in December 2001, more than US$5.4 billion in food products and agricultural commodities have been exported from the United States to the Republic of Cuba on a cash-in-advance basis.

Two questions have never been answered: 1) Why have no United States companies or financial institutions publicly stated that they would, if permitted by United States law, provide payment terms to a Republic of Cuba government-operated entity?  2) Why has the government of the Republic of Cuba refused to state what payment terms it would seek- 30 days, 60 days, 90 days, 180 days, 365 days, 720 days?

Until these questions are answered, those in the United States supporting a change to TSREEA and the government of the Republic of Cuba are engaging in a game of Chicken using repelling magnets- they will neither align nor collide.

There are opportunities to advocate for restraint by the Trump Administration.  To do so, however, requires tri-partisan and transparent negotiations with those who seek an expansive use of regulations and policies. 

A thirty-three-plus (33+) month history by some advocates and lobbyists insulting, belittling, and admonishing as irrelevant those Members of Congress (and officials of the Trump Administration, including the President) with whom they disagree is unlikely to create an atmosphere within which anything would be accomplished.  Many of these advocates and lobbyists have become toxic.

The Trump Administration is brilliant in focusing its attention toward entities controlled directly or indirectly by the Revolutionary Armed Forces (FAR) of the Republic of Cuba because no chairman, chief executive officer, or president of a substantive (especially publicly-held) United States company will publicly profess a desire/preference to work with a military-controlled, but civilian operated entity (company).  No executive wants to participate in a non-military-focused press conference surrounded by individuals wearing uniforms (or who are known to have uniforms in their closets).

So, what to do?  First, United States companies should jettison the activities of outside advocates and lobbyists; Second, employees (not outside representatives) should directly, and quietly, meet with Members of Congress- specifically the six (6) of Cuban descent, three (3) in the United States Senate and three (3) in the United States House of Representatives; and Third, meet with representatives of the Trump Administration, with a focus upon the National Security Council (NSC) and National Economic Council (NEC).  United States companies can directly influence the deciders. 

Important to remember (and not exaggerate) that the current universe of United States-based companies with engagement outside of TSREEA-related transactions and Cuban Democracy Act (CDA) of 1992-related transactions (healthcare product exports) with Republic of Cuba government-operated entities (companies) is approximately fifty (50), not including travel agents and tour operators.  Also, those United States companies with licenses who have not implemented them will need to be public with their intentions as some of the issued licenses are for significant and supportable activities unrelated to the transportation, housing and guiding of visitors to the Republic of Cuba.

The focus of the meetings should be to present and then defend each Republic of Cuba government-operated entity (including any FAR-affiliated entity (company)) which the United States company deems essential to maintain its current and profitable operation(s), whether that engagement consists of exporting to, importing from, providing services to, or receiving services from a FAR-affiliated entity (company).

The successful argument will place value on disruption rather than accommodation and maintenance of the status quo; an acknowledgment that engagement with an entrenched adversary (FAR) will require patience. 

United States corporate interests having a role during the Republic of Cuba’s continuing transitions and successions, yes, plural, is a limited means of providing a visible reminder to at least some of the 11.3 million citizens of the Republic of Cuba that commercial, economic and political change is inevitable.

The government of the Republic of Cuba has less commercial and economic elasticity to forestall permitting, whether officially or through unofficial seepage, individual activities which some in the leadership (and next-highest levels) want to delay. 

The focus should be upon encouraging the Trump Administration to permit disruption rather than inflicting penalties- both upon United States companies and Republic of Cuba nationals.

The commercial landscape portrait that may be required to be attractive to the Trump Administration may be simultaneously repugnant to the Castro Administration.  This may be the current bilateral cost of commerce.

Complete Analysis In PDF Format

Another 1,840 Potential Cruise Passengers To Cuba....

As Of 16 July 2017, The Three Largest United States Cruise Lines Could For 2017/2018/2019:

Deliver 436,000 Passengers To Cuba

273 Sailings To Cuba

US$587 Million In Gross Revenues To The Companies

US$61 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 436,000 passengers will visit the Republic of Cuba from 2017 through 2019.

The gross revenues to the cruise lines from the 273 Republic of Cuba sailings would be projected to exceed US$587 million from 2017 through 2019.

The 436,000 passengers would be projected to spend approximately US$61 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

Could Blueberries Join Coffee and Charcoal As Authorized Imports To The US?

Cuba cultivates its first blueberries

Thanks to an international collaboration, the western province of Pinar del Rio has the first areas dedicated in Cuba to the cultivation of the blueberry, a species that has been greatly successful in the world's fruit markets.

More than 720 seedlings from Chile are part of the experiment of the agroindustrial company Enrique Troncoso, in Pinar del Río, whose soils are characterized by being acid and sandy, as demanded by this variety of crop.

The field covers 0.2 hectares and meets the technical standards in other countries, with remarkable results in the production of this type of berries.

Joel Calzadilla, the director of the organization, said that the validation phase will allow them to determine if they can produce them on a large scale in the province, where other species, including citrus, are also encouraged.

Blueberry consumption is growing worldwide and its main producers are the United States, Canada and Chile. Blueberries grow in the wild in the forests of North America and other cold regions, but they are also cultivated.

Source: prensa-latina.cu

US Exports To Cuba Increase 64%

ECONOMIC EYE ON CUBA©
July 2017

May 2017 Food/Ag Exports To Cuba Increased 64%- 1
Healthcare Product Exports US$44,260.00- 2
Humanitarian Donations US$1,257,786.00- 2
Obama Administration Initiatives Product Exports- 3
U.S. Port Export Data- 13
 

LINK TO COMPLETE REPORT

Trump Administration Issues First Suspension Of Title III Of Libertad Act; Will There Be A Second Suspension?

The Trump Administration has issued a six-month suspension of Title III of the Libertad Act of 1996.  This decision was expected.

Not anticipated was to have The Honorable Thomas Shannon, Under Secretary of State for Political Affairs, announce the decision.  Since 1996, the bi-annual notification has generally been made by the President or Secretary of State.  

Within the structure of the United States Department of State, there is the Secretary of State, there are two (2) Deputy Secretaries of State, and six (6) Under Secretaries of State.

The Trump Administration may have lowered the profile of the decision as a political signal that the issue should not have, does not have, or does not (yet) have, significance.  Or, this may be a political signal to the government of the Republic of Cuba that there is an opportunity awaiting a response.

The next decision to suspend Title III of the Libertad Act of 1996 will be in January 2018.
    
Link To Bog Post: Memo From NSC To POTUS: This Week For Title III Suspension; Capitulate, Incapacitate or Negotiate?

U.S. Determination of Six-Month Suspension Under Title III of LIBERTAD

Media Note
Office of the Spokesperson
Washington, DC
July 14, 2017

Under Secretary of State for Political Affairs Thomas Shannon reported on July 14, 2017, to the appropriate congressional committees, consistent with Section 306(c)(2) of the Cuban Liberty and Democratic Solidarity (LIBERTAD) Act of 1996 (Public Law 104-114; 22 U.S.C. 6021-6091) and pursuant to the authority delegated to the Secretary by the President on January 31, 2013, and as authorized under Delegation of Authority 284-1, dated February 13, 2009, that he had made the statutorily required determination in order to suspend for six months beyond August 1, 2017, the right to bring an action under Title III of the Act.
 

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.