Why Is USDA Stonewalling Response To Follow-Up About FMD/MAP Funding For Which It Previously Provided Answers?

Why Is The USDA Stonewalling A Response To A Follow-Up Question About FMD/MAP Funding For Which It Previously Provided Answers?

Since 7 August 2019, the United States Department of Agriculture (USDA) has refused to respond to a question relating to Foreign Market Development (FMD) and Market Access Program (MAP) funding available for use in the Republic of Cuba.

The five-year Agriculture Improvement Act, known as the “Farm Bill” signed into law on 20 December 2018 by The Honorable Donald J. Trump, President of the United States, authorized FMD and MAP program funding to be used in the Republic of Cuba.

Why won’t the USDA answer as to what, if any, requests for using FMD and MAP funding have been made to the USDA since 9 May 2019? The answer was not a secret in April 2019 and not a secret in May 2019. Since August 2019, the USDA seems to have deemed the answer to be classified.

Texts Of Two Emails To USDA:

9 September 2019

I am writing to follow-up my request of 7 August 2019 relating to FMD/MAP funding for the Republic of Cuba included in the 2018 Farm Bill. There is a concern as to why the USDA, which is normally prompt with its responses to questions submitted by media, has chose not to respond to a request of more than one month ago. My question: Since your most recent response to me on 9 May 2019, has the USDA "received any requests, to authorize the redirection of already allocated funds to Cuba this fiscal year."?

7 August 2019

I am writing to follow-up your response to me of 9 May 2019 relating to FMD/MAP funding for the Republic of Cuba included in the 2018 Farm Bill. My question: Since your response to me on 9 May 2019, has the USDA "received any requests, to authorize the redirection of already allocated funds to Cuba this fiscal year."?

Text Of Email From USDA:

11 October 2019

"Thank you for your inquiry. We apologize for the delayed response. As of the conclusion of the 2019 federal fiscal year, the Foreign Agricultural Service can report that:

The 2018 Farm Bill, which authorized the expenditure of USDA market development funds in Cuba, was passed in December 2018. At that point, USDA had already allocated FY 2019 funding for the Market Access Program (MAP) and the Foreign Market Development (FMD). USDA did not subsequently receive any requests to authorize the redirection of already allocated funds to Cuba.

FY 2020 applications for MAP and FMD were due to USDA by June 28, 2019. USDA is currently reviewing the applications and expects to announce FY 2020 funding allocations later this fall.

Best regards, FAS Press Team"

The following are posts by the Economic Eye On Cuba relating to the MAP/FMD funding available for the Republic of Cuba:

Post From 12 May 2019:

https://www.cubatrade.org/blog/2019/5/12/2abai1pugt44khnn3wps4pt0f0wvcl?rq=FMD

Post From 8 April 2019:
https://www.cubatrade.org/blog/2019/4/7/7cb0as049n0xbcz6emunepm577w2zj?rq=FMD

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Carnival Corporation Looses Another Motion In Libertad Act Case... Discovery Continues

8 October 2019

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA
Case No. 19-cv-21724-BLOOM/McAliley

HAVANA DOCKS CORPORATION, Plaintiffs,
v.
CARNIVAL CORPORATION, Defendant.


“THIS CAUSE is before the Court upon Defendant Carnival Corporation’s Motion to Certify Interlocutory Appeal, ECF No. [49] (“Motion”). The Court has reviewed the Motion, the record in this case, and is otherwise fully advised. For the reasons that follow, the Motion is denied.”

Excerpt…

“The Court finds that Carnival has not overcome the strong presumption against interlocutory appeals and that no exceptional circumstances exist that would warrant § 1292(b) certification. The issue raised by the Defendant also does not merit deviation from the general principle that appeals be conducted after final judgment.”

LINK To 6-Page Court Document In PDF Format

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Cuba Government Files 308-Page Motion To Dismiss Libertad Act Case Brought By Exxon Mobil Corporation

United States District Court For the District Of Colombia

Oral Hearing Requested

EXXON MOBIL CORPORATION, Plaintiff,

v.

CORPORACIÓN CIMEX, S.A.,

Edificio Sierra Maestra

Calle Primera Esquina

Miramar, Playa, La Habana, Cuba,

AND

UNIÓN CUBA-PETRÓLEO

Avenida Salvador Allende No. 666

Entre Soledad y Oquendo

Municipio Centro Habana, La Habana

Cuba,

Defendants.

DEFENDANTS CORPORACIÓN CIMEX, S.A. AND UNIÓN CUBA-PETRÓELO’S MOTION TO DISMISS WITH PREJUDICE AND FOR A PARTIAL STAY

For the reasons presented in their supporting Memorandum of Points and Authorities, Defendants Corporación CIMEX, S.A. and Unión Cuba-Petróleo, by their undersigned counsel, hereby respectfully move the Court for an Order to dismiss this action with prejudice, pursuant to Fed. R. Civ. P. 12(b)(1) and (2), for lack of subject-matter jurisdiction and for lack of personal jurisdiction.

In addition, Defendants move the Court to stay further proceedings on the issue of personal jurisdiction until final determination of subject-matter jurisdiction, including appellate decision on an interlocutory appeal taken of right by Defendants from any adverse ruling on their contention that the Foreign Sovereign Immunities Act, 28 U.S.C. §§ 1330(a), 1602 et seq., requires dismissal of the action.

LINK To Today’s Primary Court Filing In PDF Format- Part A

LINK To Today’s Primary Court Filing In PDF Format- Part B

LINK To Today’s Primary Court Filing In Word Format

LINK To All Case Filings


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Carnival Corporation's 12-Page Response To Libertad Lawsuit? Who Are You & We Don't Believe You.

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA
Case No.: 19-cv-21725-King

JAVIER GARCIA-BENGOCHEA, Plaintiff,
vs.
CARNIVAL CORPORATION, d/b/a Carnival Cruise Lines, a foreign corporation, Defendant.


CARNIVAL CRUISE LINES’S AMENDED ANSWER TO COMPLAINT AND AFFIRMATIVE DEFENSES

Pursuant to Federal Rule of Civil Procedure 15(a)(1)(A), Defendant Carnival Corporation (“Carnival”) answers Plaintiff’s Complaint (“Complaint”) as follows:

PARTIES

1. Plaintiff, Javier Garcia-Bengochea, is a U. S. Citizen and a resident of Jacksonville, Duval County, Florida.

RESPONSE: Carnival lacks knowledge or information sufficient to form a belief about the truth of the allegations in paragraph 1, and accordingly, denies same

LINK To 12-Page Court Document In PDF Format

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2nd Consecutive Month Of 100%+ Increase In Ag/Food Exports To Cuba; Up 18.6% Year-To-Year

ECONOMIC EYE ON CUBA©
October 2019

August 2019 Food/Ag Exports To Cuba Increase 107%- 1
Cuba Ranked In August 45th of 229 U.S. Food/Ag Export Markets- 2
Cuba Year-To-Year Exports Increase 18.6%- 2
August 2019 Healthcare Product Exports US$339,437.00.00- 2
August 2019 Humanitarian Donations US$555,103.00- 3
Obama Administration Initiatives Exports Continue To Increase- 3
U.S. Port Export Data- 16


AUGUST 2019 FOOD/AG EXPORTS TO CUBA INCREASE 107%- Exports of food products and agricultural commodities from the United States to the Republic of Cuba in August 2019 were US$31,724,133.00 compared to US$15,322,008.00 in August 2018 and US$28,627,776.00 in August 2017.

United States exports from January 2019 through August 2019 were US$217,838,612.00 compared to US$184,513,128.00 from January 2018 through August 2018, representing an increase of 18.6%.

The total value of agricultural commodity and food product exports from the United States to the Republic of Cuba since December 2001 is US$6,093,051,830.00.

The data represents the U.S. Dollar value of product exported from the United States to the Republic of Cuba under the TSREEA. The data does not include transportation charges, bank charges, or other costs associated with exports; the government of the Republic of Cuba reports unverifiable data that includes transportation charges, bank charges, and other costs.

The data contains information on exports from the United States to the Republic of Cuba- products within the Trade Sanctions Reform and Export Enhancement Act (TSREEA) of 2000, Cuban Democracy Act (CDA) of 1992, and regulations implemented (1992 to present) for other products by the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury and Bureau of Industry and Security (BIS) of the United States Department of Commerce.

The TSREEA re-authorized the direct commercial (on a cash basis) export of food products (including branded food products) and agricultural commodities from the United States to the Republic of Cuba, irrespective of purpose. The TSREEA does not include healthcare products, which remain authorized and regulated by the CDA.

LINK To Complete Report In PDF Format

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Don’t Know This EU Man- And You Follow Cuba-Related Issues? Learn About Him; Advocate For Another Rolled-Up Sleeves Dinner

On 5 October 2019, The Financial Times (owned by Tokyo, Japan-based Nikkei, Inc.), published an article on page two about him.  The sub-headline- “Sondland’s role shows how president relies on contacts rather than formal diplomacy.”   

The most instructive European Union (EU)-related portion of the article: “Mr. Sondland flaunts his role as trusted consigliere to the president and his inner circle.  At an embassy function in Brussels on Monday, he recalled a ‘family dinner’ with incoming top EU officials at the New York home of Ivanka Trump and Jared Kushner.  ‘We sat in the kitchen together, rolled up our sleeves and had a great discussion about our relationship, the areas where we agree, and the areas where we disagree,’  Mr. Sondland said of the occasion attended by Charles Michel, European Council president-elect, and Josep Borrell, the nominee for EU foreign policy chief.”  The article continued, “To critics of the administration, Mr. Sondland’s role shows Mr. Trump’s disdain for formal diplomatic process and over-reliance on personal contacts.” 

The article is also instructive by connecting Ambassador Sondland with Mr. Kushner, Senior Advisor to the President & Director- Office of American Innovation.   

Perhaps, Ambassador Sondland could replace the recently-departed Mr. Jason Greenblatt, Assistant to the President and Special Representative for International Negotiations, as a member of a proposed troika that would shepherd an agreement for a settlement to the certified claims against the Republic of Cuba, absent which is materially and increasingly impacting companies located within the member countries of the EU. 

Given that the process to settle the certified claims has similar context to a real estate negotiation, the backgrounds of Ambassador Sondland and Mr. Kushner would suggest an ideal partnership.    And, a partnership that could bring to fruition an agreement by 3 November 2020.

Ambassador Sondland and Mr. Kushner have already shared a dinner in New York City with H.E. Josep Borrell, current Minister of Foreign Affairs, European Union and Cooperation of Spain, and incoming High Representative of the EU for Foreign Affairs and Security Policy; and Spain-based companies are most impacted by twenty (20) lawsuits filed thus far in the United States using Title III of the Cuban Liberty and Democratic Solidarity Act of 1996 (known as “Libertad Act”).  Due to his connectivity with Spain, Minister Borrell could well be the linkage that has been missing to the government of the Republic of Cuba.   

There is already a commonality of interests among Messrs. Sondland, Kushner and Borrell- rolling-up sleeves to settle disputes.   

Troika To Negotiate Settlement Of Certified Claims Against Cuba? Kushner, Greenblatt & Feinberg
https://www.cubatrade.org/blog/2018/11/18/lojx6s6oe5epgonh6mub855d5ak143?rq=Jared%20Kushner

Jared Kushner's Importance Reinforced By How President Trump (And Others) Recognize Him
https://www.cubatrade.org/blog/2018/11/30/yr7hp1sxibnu85bzl173l7djgg3f39?rq=Jared%20Kushner

From Wikipedia: “Gordon D. Sondland (born 1957) is the United States Ambassador to the European Union.  He is also the founder and chairman of Provenance Hotels, co-founder of the merchant bank Aspen Capital.  He was a major donor to Donald Trump’s 2016 presidential campaign. 

Provenance Hotels 

Sondland’s company Provenance Hotels owns and manages hotels throughout the U.S. including the Hotel Max, and Hotel Theodore in Seattle, Washington; Hotel Murano in Tacoma, Washington; Hotel deLuxe, Hotel Lucia, Sentinel, Dossier, and Heathman Hotel in Portland, Oregon; The Hotel Preston in Nashville, Tennessee; and Old No. 77 Hotel and Chandlery in New Orleans, Louisiana.  

In 1998, Sondland purchased and redeveloped four hotels in Seattle, Portland, and Denver including Seattle's Alexis Hotel in partnership with Bill Kimpton. Sondland also is a principal in Seattle's Paramount Hotel.  Through Provenance Hotels, Sondland is developing hotel projects throughout the US, including in Seattle, Hermosa Beach, CA and Los Angeles, CA. Provenance Hotels specializes in adaptations of old buildings such as with the Hotel Murano in Tacoma, WA, which used to be a conference Sheraton, but now includes glass art by 46 artists including Seattle's Dale Chihuly.  Provenance is also known for designing or remodeling each hotel around themes that contain elements that relate to a location’s history, art, culture, and local businesses. 

In 2013, Sondland and Provenance completed a renovation of Portland’s historic Governor Hotel, renaming it Sentinel.  In December 2015, Sondland and Provenance announced the establishment of the company's first real estate investment fund, Provenance Hotel Partners Fund I. The $525 million fund was created specifically for hotel real estate investment and, at the time of its announcement, was the fourth largest fund ever launched in the state of Oregon.  In 2017, Provenance Hotels expanded its practice of revitalizing and rebranding hotels with locally-inspired art and design as a service to other hoteliers.  

United States Ambassador to the European Union 

Sondland donated $1 million to the inaugural committee of Donald Trump.  On March 12, 2018, the Wall Street Journal reported that President Trump selected Sondland to be the next United States Ambassador to the European Union.  On May 10, 2018, the White House announced that Sondland’s nomination had been sent to the U.S. Senate.  He was confirmed by the Senate on June 28, 2018.  On July 9, 2018, Sondland presented his credentials at the European Commission and to President of the European Council Donald Tusk.  

Sondland's nomination received bipartisan support during his confirmation hearing before the Senate Foreign Relations Committee on June 21, 2018.  Both Sen. Ron Wyden (D-Ore.) and Sen. Thom Tillis (R-N.C.) testified in support of Sondland. Sen. Wyden suggested that Sondland’s "family history is both fascinating and instructive as to why he has the experience and understanding to serve as the U.S. Ambassador to the E.U.," noting how his Jewish parents fled Nazi Germany before coming to the United States. 

As Ambassador, Sondland has made strengthening US-EU trade relations a top priority.  He has supported using a strong US-EU economic partnership to counter what Sondland has called “economic aggression and unfair trade practices” from China.  In pursuit of this end, Sondland has promoted the idea of giving European governments access to the Committee on Foreign Investment in the United States (CFIUS) to allow them to better screen investors.  

Sondland has also pledged to work with the EU to address global security threats.  He has been the Trump Administration's lead in talks with EU member countries on the U.S.'s decertification and withdrawal from the Iran Nuclear Deal.  Sondland has repeatedly criticized EU member countries' creation of a "special purpose vehicle" (SVP) to bypass reimposed U.S. sanctions on Iran, calling the SPV a "paper tiger."  Sondland has also been a vocal opponent of the construction of Russia’s Nord Stream 2 pipeline, which would transport gas across the Baltic Sea to the EU.[26] He has argued that the pipeline would leave the EU dependent upon Russia for its energy needs and increase Russia’s leverage on key U.S. allies in NATO.  Sondland argued that "Putin uses energy as a political weapon. The EU should not rely on a bare-chested version of the Harry Potter villain Lord Voldemort as a supplier, even if his gas is a bit cheaper."  Sondland has also worked on data protection rules regarding U.S. compliance with the EU-US privacy shield.  

Political involvement 

Sondland was a member of the transition team for Governor Ted Kulongoski's administration and was appointed by Kulongoski to serve on the board of the Governor's Office of Film & Television.  He was appointed the commission’s chair in 2002 and has served in that capacity until 2015.  During his tenure on the film board, Sondland was instrumental in bringing the production of such television series as Leverage, The Librarians and Grimm to Oregon  and presided over the state securing the production of feature-length films such as Wild starring Reese Witherspoon, Thumbsucker starring Tilda Swinton and The Ring Two starring Naomi Watts. At the 2015 Oregon Film Annual Governor’s Awards, Sondland received the "Achievement in Film Service Award" for his role in growing Oregon’s film industry.  

Sondland also served as Oregon liaison to the White House. As an advisor to Kulongoski, Sondland suggested appointing Ted Wheeler as state treasurer, which Kulongoski did in 2010. In 2007 President George W. Bush appointed Sondland as a member of the Commission on White House Fellows.  Sondland collaborates with President Bush and Jay Leno on an annual charitable auction of an autographed vehicle, with proceeds benefiting the Fisher House Foundation and the George W. Bush Foundation’s Military Service Initiative.  He was a blunder for Mitt Romney's 2012 Presidential campaign, and in 2012, Sondland was selected to serve as a member of Mitt Romney's presidential transition team.  

During the 2016 United States presidential election, Sondland initially supported Donald Trump, but cancelled a fundraiser and repudiated Trump for his attacks on Khizr and Ghazala Khan.  In April 2017, it was revealed that 4 companies registered to Sondland donated $1 million to the Donald Trump inaugural committee.  As a result of his political involvement, Sondland and his businesses have been the subject of increased press coverage, especially among local media outlets. However, recent attempts to criticize his business practices in publications like Willamette Week and Eater Portland were later corrected. 

Philanthropy 

Sondland serves on the board of trustees at the Oregon Health & Science University foundation and the board of visitors of the Sanford School of Public Policy at Duke University.  Sondland joined the board of trustees at the Portland Art Museum - one of the oldest and largest art museums in the U.S. - in 1996 and was elected chair of the executive committee in 2009.  The Trustee Room, a Contemporary Gallery, and the Grand Staircase at the Portland Art Museum are also named after Sondland and his wife Katherine Durant. 

Sondland founded the Gordon Sondland and Katherine J. Durant Foundation in 1999, which was established to "help families and boost communities".  The Foundation has given millions of dollars to various non-profits including $1,000,000 to the Portland Art Museum to endow permanent access for children under the age of eighteen.  The Foundation helped establish a Distinguished Chair in Spine for pediatric orthopedic spine research at the Texas Scottish Rite Hospital for Children in 2012.  In 2012, the Foundation used the proceeds from the auction of a 2009 Ford F-150 that was previously owned by former President George W. Bush for a donation to the Fisher House Foundation.  Sondland is also a National Finance Co-Chairman of the George W. Bush Presidential Center in Dallas.  

Sondland and the Foundation partnered with the River Club in 2013 to provide breakfast for the foreseeable future for students of the Simonga Basic School in Zambia.  In 2014, the Foundation gave a $1,000,000 endowment to Oregon Health & Science University to establish the Sondland-Durant Distinguished Research Conference, a cancer research summit to begin in 2016.  In 2017, the Center for Innovation and Entrepreneurship at Duke University was created with the support of the Foundation.    

Sondland is married to Katherine Durant, who is the founder and managing partner of Atlas/RTG, a holding company with a portfolio of shopping centers throughout Oregon.  Until 2016, Durant was the Chairperson of the Oregon Investment Council, the body that oversees the over $85 billion Public Employees Retirement System Fund.  They have two children.  In January 2018, Sondland and Durant were featured as the "January Power Couple" in Oregon Business.”

LINK To Complete Analysis In PDF Format

Libertad Act Lawsuit Statistics Updates: 20 Lawsuits, At Least 24 Law Firms & 73 Attorneys... So Far.

As of 8 October 2019, which is 159-days since the Trump Administration made operational Title III of the Cuban Liberty and Democratic Solidarity Act of 1996 (known as “Libertad Act”):

Twenty (20) lawsuits filed
Court Filing Fees US$130,960.00
Twenty-Four (24) Law Firms
Seventy-Three (73) (68) Attorneys
One Hundred-And-Three (103) companies/individuals, excluding attorneys, are lawsuit parties
Seventy-Two (72) plaintiffs
Four (4) Class Action status requests
Sixty-seven (67) defendants
Five (5) companies notified as will be added as defendants unless prompt settlement

Lawsuits have been filed in the United States District Courts in Southern Florida (16), Washington DC (1), Washington State (1), Nevada (1) and Delaware (1)


Law firms retained by plaintiffs/defendants: Akerman; Arent Fox; Baker & McKenzie; Boies Schiller Flexner; Coffey Burlington; Colson Hicks Eidson; Cueto Law Group; Ewusiak Law; Hogan Lovells; Holland & Knight; Jones Walker; Kozyak Tropin & Throckmorton; Law Offices Of Paul Sack; Manuel Vazquez PA; Margol & Margol; Mayer Brown; Pacifica Law Group; Rabinowitz, Boudin, Standard, Krinsky & Lieberman; Reid Collins & Tsai; Rice Reuther Sullivan & Carroll; Rivero Mestre; Rosenthal, Monhait & Goodess; Steptoe & Johnson; Venable

Title III authorizes lawsuits in United States District Courts against companies and individuals who are using a certified claim or non-certified claim where the owner of the certified claim or non-certified claim has not received compensation from the Republic of Cuba or from a third-party who is using (“trafficking”) the asset.

LINK To Updated Report

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Plaintiffs Appeal Dismissal Of Lawsuit In Spain Against Melia Hotels; Plaintiffs Sue In U.S.; Why Did Melia Hotels Offer US$5 Million Then US$3,197.75?

Dismissal Of Case In Spain Against Melia Hotels International Is Appealed
Class Action Status Request For Case In U.S. Against Melia Hotels International Is Pending
Within Two Weeks, US$5 million Became US$3,197.75
How Did 100% Become .06%?
Could An Offer From 2002 Become Evidence In 2019?

On 29 May 2019, descendants of Mr. Rafael Lucas Sanchez Hill, acting as Central Santa Lucia S.A., filed a lawsuit in Spain seeking US$10 million from Palma de Mallorca, Spain-based Meliá Hotels International seeking damages for the use of land upon which a hotel is located in the Republic of Cuba. The lawsuit is not using provisions of Title III of the Cuban Liberty and Democratic Solidarity Act of 1996 (known as "Libertad Act").

On 3 September 2019, the court in Spain dismissed the lawsuit on grounds of jurisdiction.  On 30 September 2019, the plaintiffs filed an appeal. 

LINK To Spain Court Appeal

LINK To All Spain Court Filings

On 12 March 2002, Meliá Hotels International reportedly offered US$5 million to the descendants of Mr. Rafael Lucas Sanchez Hill as payment for "trafficking" relating to the Sol Rio de Oro Hotel in response to enactment in 1996 of the Libertad Act.

Title III of the Libertad Act authorizes lawsuits in United States District Courts against companies and individuals who are using a certified claim or non-certified claim where the owner of the certified claim or non-certified claim has not received compensation from the Republic of Cuba or from a third-party who is using (“trafficking”) the asset.   

Title IV of the Libertad Act restricts entry into the United States by individuals who have connectivity to unresolved certified claims or non-certified claims.  Employees of one Canada-based company is currently known to be subject to this provision based upon a certified claim.

On 26 March 2002, Sol Melia International, reportedly believing the [George W. Bush Administration; 20 January 2001 to 20 January 2009] United States Department of State would neither implement Title III nor Title IV of the Libertad Act, Melia Hotels International withdrew the offer of US$5 million and proposed US$3,197.75 representing a value (.06%) based upon the twenty-nine (29) acres of land occupied by the Sol Rio de Oro Hotel of the approximately 120,000 acres of land claimed by the descendants of the owners of the property. The US$3,197.75 was determined by Melia Hotels International as the corresponding percentage of the US$5 million tax loss carry-forward amount with the Internal Revenue Service (IRS) in the 1960's.

If admitted as evidence by the United States District Court Southern District of Florida where a lawsuit with forty (40) plaintiffs seeking class action status using Title III of the Libertad Act was filed on 11 September 2019 that includes Melia Hotels International S.A. and Melia Hotels USA, LLC. as defendants, the offer in 2002 of US$5 million by Melia Hotels International could be construed as an acknowledgement of culpability.

Other hotel management companies operating in the Republic of Cuba- those already listed as defendants in lawsuits and those notified by plaintiff attorneys as potential defendants in lawsuits could be impacted by the offer in 2002 by Melia Hotels International S.A., particularly as the company has the largest number of properties under management in the Republic of Cuba, and recently inaugurated a new property. LINK To 40-Plaintiff Case.

LINK To Complete Analysis In PDF Format

LINK To EEOC Posts:

https://www.cubatrade.org/blog/2019/9/4/2sv7ypsuz6wyb8aykm25cseuvcpacu?rq=Sanchez%20Hill 

https://static1.squarespace.com/static/563a4585e4b00d0211e8dd7e/t/5d07d7032436580001378fb3/1560794896221/DEMANDA+SANTA+LUCIA+vs+MELIA.pdf 

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If NH Hotel Group Of Spain Is Sued Using Libertad Act, One Defendant Would Be Former U.S. Citizen Who Now Controls Company

Madrid, Spain-based NH Hotel Group (2018 revenues approximately US$1.8 billion) is 94.13% owned by Bangkok, Thailand-based Minor International Public Company Limited (2018 revenues approximately US$2 billion).  LINK: https://www.minor.com/en 

NH Hotel Group manages two properties in the Republic of Cuba: 220-room NH Capri La Habana and 31-room NH Collection Victoria La Habana and one property in the United States: 288-room NH Collection New York Madison Avenue

“William Heinecke is the chairman and CEO of hospitality group Minor International, the company he founded as a cleaning business when he was 17 — still a minor — four years after relocating to Bangkok with his family.  Throughout his 20s and 30s, it evolved into one of Thailand’s leading hospitality chains, and Heinecke said he felt he owed it to the country that “adopted” him to show his dedication to doing business there.  Eight years after becoming a naturalized Thai citizen in 1991, William Heinecke was 42 when he did something drastic: He walked into the U.S. embassy in Bangkok, handed over his passport and renounced his citizenship.” 

“He holds an Honorary Doctorate of Business Administration in Management from Yonok University, Lampang. He also completed the Director Certification Program (DCP) from the Thai Institute of Directors Association (IOD).  Mr. Heinecke is the founder of Minor International Pcl. (MINT) and currently holds the position of Chief Executive Officer of Minor International PLC and is Chairman of the Board of Directors.  Over the five decades of the Minor group’s existence, Mr. Heinecke has led the company and expanded its portfolio of restaurants, hotel businesses and lifestyle brand distribution.  It currently has more than 2,100 restaurants, 160 hotels and 400 lifestyle outlets in 40 countries (excluding the NH Hotel Group portfolio).  MINT is listed on the Thailand Stock Exchange, with revenues of more than 1.5 billion euros and a market capitalisation of 4 billion euros.  Mr. Heinecke is the author of the book “The Entrepreneur – 25 Golden Rules for Global Business Manager””  

From Forbes Magazine October 2019: “William E. Heinecke came to the Kingdom of Thailand in 1963 and founded the Minor Group in 1968.  Almost five decades later the group has grown substantially into a large company with revenue of USD2.5 bn and market cap of over USD5.5bn.  Listed on the Stock Exchange of Thailand in 1988, Minor International Public Company Limited (MINT) is now a global company focused on three primary businesses: restaurants, hospitality and lifestyle brands distribution, all of which are now under one umbrella.  The group currently employs more than 85,000 employees.  

MINT is one of Asia’s largest restaurant companies with over 2,200 outlets operating system wide in 27 countries under The Pizza Company, Swensen’s, Sizzler, Dairy Queen, Burger King, Thai Express, The Coffee Club, Riverside and Benihana brands. In addition, it operates several food manufacturing facilities. MINT is also a hotel owner, operator and investor with a portfolio of over 75,000 rooms across more than 510 hotels, resorts and serviced suites under the Anantara, AVANI, Oaks, Tivoli, Elewana, NH Collection, NH Hotel, nhow, JW Marriott, Four Seasons, St. Regis, Radisson Blu and Minor International brands. Today, Minor Hotels' hotel and spa portfolio spans across 53 countries in Asia Pacific, the Middle East, Africa, the Indian Ocean, Europe and the Americas. Furthermore, MINT operates mixed-use businesses which are complementary to the hotel business. This includes real estate, retail and commercial development, comprising sale of luxury residences and the Anantara Vacation Club, MSpa and entertainment. MINT is one of Thailand’s largest distributors of lifestyle brands focusing primarily on fashion and cosmetics. Its brands include Brooks Brothers, Esprit, Bossini, Etam, OVS, Radley, Anello, Charles & Keith, Zwilling J.A. Henckels, Joseph Joseph, Bodum, Save My Bag, Scomadi and Minor Smart Kids. MINT is also a contract manufacturer of household products, with its own manufacturing plant.  Now 69, Mr. Heinecke currently serves as a Chairman on the Board of Directors of MINT. The author of 'The Entrepreneur - 25 Golden Rules for Global Business Manager’, Mr. Heinecke also serves as a Director of Indorama Ventures PCL, the largest PET company in the world.  Mr. Heinecke became a naturalized Thai citizen in 1991.”

 

Economic Eye On Cuba
July 2018
Obama’s Commerce Secretary’s Family Could Have Largest U.S. Footprint In Cuba
Hotels & Cruises
Acquisition Of Hotel Company In Spain
U.S. Department Of State Reports One Hotel Is A Site Of Health Issues
One Hotel Has Chicago Mafia & Hollywood Roots
Will OFAC Approve?
Irony: Secretary Pritzker’s Self-Imposed Selective Restraint To Help U.S. Companies
Illinois 1st Among States With Companies Having A Physical Presence In Cuba


The Honorable Penny Pritzker (net worth approximately US$2.8 billion according to Forbes Magazine) served as United States Secretary of Commerce from 2013 to 2017 during the Obama Administration.

Her brother, Mr. J.B. Pritzker, is the 2018 nominee for governor of the Democrat Party; and was national co-chairman of the 2008 Hillary Clinton presidential campaign. [NOTE: He won the election.]

Her cousin, Mr. Thomas J. Pritzker, is the Executive Chairman of Chicago, Illinois-based Hyatt Hotels Corporation (2017 revenues approximately US$4.6 billion) which is controlled by the Chicago, Illinois-based Pritzker Family (net worth approximately US$29 billion according to Forbes Magazine). Mr. Pritzker is on the board of directors and has a substantial shareholding in Miami, Florida-based Royal Caribbean Cruises Ltd. (RCCL; 2017 revenues approximately US$6.3 billion).

Hyatt Hotels Corporation, with approximately 700 properties located in fifty countries made an offer, since amended, to acquire Madrid, Spain-based NH Hotel Group (2017 revenues approximately US$1.3 billion) with approximately 382 properties located in thirty countries. https://newsroom.hyatt.com/nhhotelsstatement

Hyatt Hotels Corporation has previously sought hotel management opportunities within the Republic of Cuba: https://www.cubatrade.org/blog/2017/2/11/hyatt-hotels?rq=Hyatt

NH Hotel Group manages two properties in the Republic of Cuba each of which is owned by Republic of Cuba government-operated Gran Caribe: 31-room NH Collection Victoria La Habana (a favorite for business representatives and journalists for twenty-five years: https://www.nh-collection.com/hotel/nh-collection-victoria-la-habana and the 220-room NH Capri La Habana: https://www.nh-hotels.com/corporate/press-room/news/nh-hotel-group-brings-back-emblematic-hotel-capri-collaboration-gran-caribe-hotel. Reservations for NH Capri La Habana may be obtained through www.booking.com. Gran Caribe is not listed by the United States Department of State as a prohibited entity from engagement with United States companies.

The NH Capri La Habana was identified by the United States Department of State as one of two hotels within which employees of the United States Government reported experiencing issues that impacted their health. The Hotel Nacional de Cuba, also owned by Gran Caribe, is the other hotel.

https://www.cubatrade.org/blog/2017/10/1/travelers-need-to-know-when-us-department-of-state-will-publish-addresses-of-implicated-locations-in-cuba?rq=Hotel%20Capri

If Hyatt Hotels Corporation acquires NH Hotel Group, likely will be required a license from the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington DC., as the ownership would not be in compliance with at least one opinion by the OFAC: A U.S. company or individual may make a secondary market investment in a third-country business which has commercial dealings within the Republic of Cuba provided that the investment does not result in control-in-fact of the third-country business by the U.S. investor and the third-country company does not derive a majority of its revenues from business activity within the Republic of Cuba. Secondary market investment that falls short of a controlling interest in such a business is not prohibited.


July 30, 2018
Hyatt backs off Spain's NH Hotels bid in face of Minor stake
By Sonya Dowsett


MADRID (Reuters) - Hyatt Hotels (H.N) has backed away from launching a takeover of NH Hotels (NHH.MC), days after a rival bidder Minor (MINT.BK) revealed it controlled 44 percent of the Spanish group.

In a letter from Hyatt released to the Spanish stock exchange by NH, the U.S. hospitality company, which on Friday said it may launch a cash bid for 100 percent of NH, said it saw pursuing an offer as extremely challenging.

“Based on the information we now have, we believe that the path to a successful tender offer by Hyatt under the terms expressed in our letter has narrowed to a point of being impractical,” Hyatt’s President and Chief Executive Officer Mark Hoplamazian said in the letter released on Monday.

Thailand-based Minor International made an offer in June which valued NH at up to 2.5 billion euros ($2.9 billion). Minor already owns 29.8 percent with agreements in place to buy Chinese conglomerate HNA’s 8.4 percent holding and Oceanwood Capital Management’s 5.7 percent stakes. It said late on Friday it had control over 44 percent of NH’s share capital. Shares in NH dropped 6.4 percent on Monday to 6.3 euros per share, slightly below Minor’s offer price.

NH, with over 370 hotels in 30 countries, in January turned down a takeover offer from Spanish peer Barcelo which valued the company at 2.48 billion euros.

Minor had agreed to pay HNA 622 million euros for a 26.5 percent stake in the hotel group, taking its stake to around 38 percent after the conversion of some bonds to shares. It would then offer 6.4 euros for each remaining share, it said.

Hotels Magazine
Chicago, Illinois
Hyatt makes move for NH Hotels; Minor adds shares
By Jeff Weinstein on 7/27/2018


Hyatt Hotels Corp. has sent a non-binding letter to NH Hotel Group stating its interest in acquiring the Madrid-based hotel operator and challenging the June tender from Thailand’s Minor International, who later on Friday announced an additional investment, cumulatively totaling up to a 44% share in NH.

Minor’s June offer for NH, valued at €1.64 billion, is conditional on a scheduled August 9 approval from shareholders. On Friday, it announced a deal with Oceanwood Capital Management to purchase 22,496,064 shares in NH, representing a 5.7% shareholding, again subject to the approval at the August 9 meeting. It also has a pending deal to acquire from Tangla Spain SLU 32,937,996 NH shares representing an 8.4% share. It is already NH’s biggest shareholder with a 35.55% stake after acquiring HNA Group Co.’s stake in June.

Hyatt President and CEO Mark Hoplamazian said in a statement, “Hyatt has a demonstrated track record of making strategic investments to extend the reach of our brands and create value for our stakeholders. In keeping with our growth strategy, we submitted a letter expressing our interest in pursuing a potential acquisition of NH Hotel Group.

“We believe that marrying NH Hotel Group’s strong footprint in Europe and select other markets with Hyatt’s global presence would yield a powerful portfolio of brands and network of hotels delivering compelling benefits for guests, owners and shareholders of both companies.

“Consistent with our strategy of pivoting to an asset-lighter business model, we see significant value creation for shareholders through a separation of NH Hotel Group’s real-estate assets from its hotel management platform. As a next step, we are seeking to conduct additional due diligence to further inform valuation and determine the optimal approach to a potential offer.”

HOTELS asked Minor International to comment and only said, “this is a non-binding letter and Minor Hotels has no comment about it.”


Hotels Magazine
Chicago, Illinois
With new $724M stake, Minor to launch NH takeover bid
By Barbara Bohn on 6/6/2018


Minor International has set the stage to acquire Spain’s NH Hotel Group after reaching an agreement with HNA Group to increase its equity stake in the company by 25.2% on a fully diluted basis.

The new stake, which knocks Spain’s Grupo Barcelo out of the running for NH, is valued at €619 million (US$724.0 million). That brings Minor’s total proposed stake to 38%, which triggers Spanish regulations to launch a full takeover bid.

“Today we are embarking on a new era, driving investment strategy to further cement our footprint in the European hospitality industry,” said Dillip Rajakarier, CEO of Minor Hotels, according to a statement. “We will be able to create a network of over 540 hotels with a reach across Asia, Oceania, the Middle East, Africa and Europe, all of which are important hospitality regions around the world. The business network will allow the two companies to capitalize on our leadership positions in key growth areas, highly complementary asset and brand portfolio, technology platform and talented employees.”

Minor’s bid values the Spanish hotel group at up to €2.50 billion (US$2.90 billion); it said in a filing with the Spanish market regulator that it will offer €6.40 (US$7.49) for each remaining share in the company.

HNA’s sale, prompted by a restructuring to sell assets to raise cash, will take place in two stages: a 17.6% stake is expected to close on June 15, and when that is completed, it would sell a further 8.8%.

The deal is expected to close in September and would close a bumpy chapter for the Chinese company, which came under scrutiny by its government and has been, along with other Chinese hotel investors, squeezed to sell off its holdings in foreign companies. And NH knocked HNA’s representatives off its board after asserting that HNA’s 2016 purchase of Carlson Rezidor Hotel Group was a conflict of interest.

Minor said it intends to keep NH Hotel Group, which has 382 hotels in 30 markets in Europe, the Americas and Africa, as a publicly listed company on the Madrid Stock Exchange.

LINK To Complete Analysis In PDF Format

Who Filed 4 Libertad Act Lawsuits In 4 States Against 12 Companies? He’s From Texas. A Win Could Make Him The Giant Killer.

Mr. Robert M. Glen of Plano, Texas, is using Title III of the Cuban Liberty and Democratic Solidarity Act of 1996 (known as “Libertad Act”) to file four (4) lawsuits to sue twelve (12) companies:  

TripAdvisor LLC; TripAdvisor, Inc.; Orbitz, LLC; Trip Network, Inc. d/b/a CheapTickets; Kayak Software Corporation; Booking Holdings, Inc.; Travelscape LLC d/b/a Travelocity; Expedia, Inc.; Expedia Group, Inc.; Hotels.com, L.P.; Hotels.com GP, LLC; and American Airlines, Inc. 

The four lawsuits were filed in United States District Courts in Washington (Seattle), Southern Florida, Delaware, and Nevada. 

Glen v. American Airlines (1:19-cv-23994-CMA)
Glen v. Expedia Inc. et al (2:19-cv-01538-MLP)
Glen v. TripAdvisor LLC et al. (1:19-cv-01809-UNA)
Glen v. Travelscape LLC d/b/a/ Travelocity (2:19-cv-01683-GMN-NJK
)

Mr. Glen has indicated that the companies managing/owning the hotels located on the claimed property may also be named as defendants.  According to one of the lawsuits: “Cotepen is the site of three resorts. The first is currently known as Meliá Las Antillas (the “Las Antillas”), operated by Spanish hotel chain Meliá Hotels International, on the site of a former Beaches-brand resort. Las Antillas is a four-star, adults-only, all-inclusive resort featuring 350 guestrooms.  The second is known as the Blau Varadero (the “Blau”).  The Blau is an adults-only, all-inclusive resort featuring 395 guestrooms. The third is known as the Starfish Varadero (the “Starfish”).  The Starfish is a family friendly, all-inclusive resort featuring 411 rooms.  (Together, the Iberostar Tainos, Las Antillas, Blau, and Starfish are the “Subject Hotels”).”  

Title III authorizes lawsuits in United States District Courts against companies and individuals who are using a certified claim or non-certified claim where the owner of the certified claim or non-certified claim has not received compensation from the Republic of Cuba or from a third-party who is using (“trafficking”) the asset.  

According to one of the lawsuit filings: 

“Plaintiff Robert M. Glen is an individual residing in Plano, Texas. Glen is a naturalized United States citizen and a "United States national" pursuant to 22 U.S.C. §6023(15). 

Glen holds a claim to two beachfront properties located in Varadero, Cuba, on the Hicacos Peninsula. Varadero is one of Cuba's most popular beach resort towns, featuring one of the Caribbean's best beaches and dozens of hotels and resorts that attract tourists and vacationers from around the world.  Varadero is also the site of one of Cuba's busiest international airports. 

Glen is the owner of property located in Varadero, Cuba that was originally owned by Glen's great-grandfather, Sergio de la Vega, who lived in Cardenas, across the bay from the Hicacos Peninsula. Glen's great-grandfather traveled by boat to the peninsula and built improvements upon it.  Ownership of the property later passed to Glen's grandfather, Manuel de la Vega.  When Manuel died in 1928, the properties passed to his wife, Ana Maria Martinez Andreu ("Martinez Andreu"), Glen's grandmother.  Manuel and Martinez Andreu divided their property into two, contiguous plots.   

The first was known as "Blancarena," and included 280 meters of ocean frontage.  The second was known as "Cotepen" (short for "Co-Territorial Peninsula") and included 715 meters of ocean frontage. (Together, Blancarena and Cotepen are the "Glen Properties").  Glen's family built a small home on the Glen Properties.  Cotepen is contiguous to Blancarena and sits directly to the east of Blancarena.  Cotepen and Blancarena are of equal depth, each extending southward toward the present-day Autopista Sur, the main road that traverses the peninsula. 

When Martinez Andreu died, Blancarena passed to Elvira de la Vega Martinez ("Elvira"), one of Martinez Andreu's two daughters, and Cotepen passed to Ana Maria de la Vega Martinez ("Ana Maria"), Martinez Andreu's other daughter.  Elvira is Glen's mother.  Ana Maria is Glen's aunt.  Elvira and Ana Maria exercised ownership over Blancarena and Cotepen and worked to develop the land. In the late 1950s, Elvira considered selling a portion of Blancarena and subdividing it, but her plans were interrupted by the revolution.   

Maps and surveys drawn in 1958, just prior to the Cuban revolution, reflect the location of the Glen Properties on the peninsula, including in connection with the construction of a canal (still in existence today) directly to the south of the properties.  After January 1, 1959, and in connection with Cuban revolution, the communist Cuban government confiscated the Glen Properties.   

Following the communist Cuban revolution, the properties were confiscated from Glen's family by the Cuban government. After the revolution, Glen's family fled Cuba, and Glen later became a naturalized U.S. citizen.  When Ana Maria and Elvira died, ownership of Blancarena and Cotepen passed solely to Glen.  Like Ana Mara and Elvira, Glen has continued to maintain a claim to the Glen Properties.”

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Might Expedia Have Lessened Its Legal Exposure By Removing Hotel From Its Web Site? Might They Be First To Settle With Claimant?

On 27 September 2019, the attorneys representing the plaintiff in a lawsuit against Bellevue, Washington-based Expedia, Inc. (2018 revenues approximately US$11.2 billion), amended the complaint to acknowledge Expedia’s Internet site had removed the listing for a hotel in Varadero, Matanzas, Republic of Cuba, managed by Palma, Spain-based Barcelo Hotel Group, which through four brands manages more than 250 hotels in twenty-two countries. 

Barcelo Hotel Group manages three (3) properties in the Republic of Cuba: Barcelo Solymar, Occidental Arenas Blancas, and Allegro Palma Real. 

According to the lawsuit: “…the Barceló Solymar (the “Resort”) was built.  The Resort is operated by the Barceló Hotel Group (the Barceló Group”) in a joint venture with the Cuban government.  Stays at the Resort are offered to travelers, including Florida and other U.S. residents, not only directly through the Barceló Group’s own website, but also—until very recently—through online booking providers like Expedia, Inc. (“Expedia”).” 

27 September 2019 

IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF FLORIDA  

Case No. 19-cv-22629-FAM  

DIEGO TRINIDAD, v. EXPEDIA, INC., defendant.  

AMENDED COMPLAINT FOR DAMAGES 

Between the date Trinidad gave Expedia notice of his intent to add Expedia to this action on August 8, 2019, and the filing of this Amended Complaint, it appears that Expedia, in recognition of its liability, has removed its listing for the Resort from its website. Expedia is nonetheless liable because it trafficked the Barcelo Solymar within the last two years. See 22 U.S.C. § 6084”   

“It appears that the Resort was removed from the Expedia website between August 7, 2019, the date Expedia received notice of Trinidad’s intent to add Expedia to this action, and the filing of this Amended Complaint. Expedia’s removal of the Barcelo Solymar appears to be a subsequent remedial measure evidencing guilty knowledge.”  

LINK To Court Filing

Expedia [Expedia, Inc., and Expedia Group, Inc.] is currently listed as a defendant in four (4) lawsuits filed using Title III of the Cuban Liberty and Democratic Solidarity Act of 1996 (known as “Libertad Act”).  LINK To Lawsuit Statistics  

Title III authorizes lawsuits in United States District Courts against companies and individuals who are using a certified claim or non-certified claim where the owner of the certified claim or non-certified claim has not received compensation from the Republic of Cuba or from a third-party who is using (“trafficking”) the asset.   

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GE Fined US$2.7 Million For 2010-2014 Cuba Sanction Violations Through Canada; Company Remains Operational In Cuba

Information concerning the civil penalties process can be found in the Office of Foreign Assets Control (OFAC) regulations governing each sanctions program; the Reporting, Procedures, and Penalties Regulations, 31 C.F.R. part 501; and the Economic Sanctions Enforcement Guidelines, 31 C.F.R. part 501, app. A. These references, as well as recent final civil penalties and enforcement information, can be found on OFAC’s website at www.treasury.gov/ofac/enforcement. 

ENTITIES - 31 C.F.R. 501.805(d)(1)(i) 

The General Electric Company Settles Potential Civil Liability for Alleged Violations of the Cuban Assets Control Regulations: The General Electric Company (“GE”) of Boston, Massachusetts, on behalf of three current and former GE subsidiaries, Getsco Technical Services Inc., Bentley Nevada, and GE Betz (collectively, the “GE Companies”), has agreed to pay

$2,718,581 to settle its potential civil liability for 289 alleged violations of the Cuban Assets Control Regulations, 31 C.F.R. part 515 (CACR). Specifically, between December 2010 and February 2014, the GE Companies appear to have violated § 515.201(b) of the CACR on 289 occasions by accepting payment from The Cobalt Refinery Company (“Cobalt”) for goods and services provided to a Canadian customer of GE. 

Since June 1995, Cobalt had been identified as a specially designated national (SDN) of Cuba and appeared on OFAC’s List of Specially Designated Nationals and Blocked Persons (the “SDN List”). Publicly available information also demonstrated that GE’s former Canadian customer is a corporation with strong historic and then-current economic ties to the Cuban mining industry through its business partnerships and joint ventures with the Cuban government. Cobalt is one of three entities owned by a public joint venture between GE’s Canadian customer and the Cuban government. From at least 1996 until the GE Companies terminated their relationship with their Canadian customer, the GE Companies maintained — and renewed on at least 18 occasions — this customer relationship despite the obvious sanctions risk posed by the relationship.

On February 24, 2014, GE Working Capital Solutions discovered that from at least 2010 to 2014, the GE Companies received numerous payments directly from Cobalt for invoices issued to GE’s Canadian customer. While the GE Companies negotiated and entered into contracts with GE’s Canadian customer, and sent all of their invoices to GE’s Canadian customer, Cobalt paid the GE Companies for its goods and services in more than 65 percent of the total transactions. The GE Companies approved Cobalt as a third-party payer and, over a four-year period, failed to appropriately recognize the significant and widely published relationship between Cobalt and their Canadian customer and did not undertake sufficient diligence into their customer's activities. The GE Companies deposited all checks received from Cobalt into GE’s bank account at a Canadian financial institution. The checks contained Cobalt’s full legal entity name as it appears on OFAC’s SDN List as well as an acronym for Cobalt (“Corefco”), but the GE Companies’ sanctions screening software, which screened only the abbreviation of the SDN’s name, never alerted on Cobalt’s name.

In total, the GE Companies received 289 checks directly from Cobalt from on or about December 9, 2010 to on or about February 28, 2014 totaling approximately $8,018,615. Additionally, goods and services the GE Companies provided to its Canadian customer were, in turn, used to supply utility services and other benefits to Cobalt, which is co-located with GE’s Canadian customer. 

The statutory maximum civil monetary penalty applicable in this matter is $18,785,000. OFAC determined, however, that GE voluntarily self-disclosed the alleged violations, and that the alleged violations constitute a non-egregious case. Accordingly, under OFAC’s Economic Sanctions Enforcement Guidelines (“Enforcement Guidelines”), the base civil monetary penalty amount applicable in this matter is $3,377,119. 

The settlement amount of $2,718,581 also reflects OFAC’s consideration of the General Factors under the Enforcement Guidelines. Specifically, OFAC determined the following to be aggravating factors: 

(1)    The GE Companies failed to take proper or reasonable care with respect to their U.S. economic sanctions obligations — particularly given GE’s commercial sophistication. GE failed to identify that (i) for at least four years it was receiving payments that were on their face from a SDN of Cuba that has been on the SDN List since 1995, and (ii) it was providing goods and services to a customer that provides a direct and indirect benefit to a facility owned and operated by that designated Cuban company; 

(2)    The GE Companies’ actions caused substantial harm to the objectives of the Cuba sanctions program by conducting a large volume of high-value transactions directly with a Cuban company on the SDN List over a period of many years; and 

(3)    The substance of GE’s disclosures and other communications with OFAC leave substantial uncertainty about the totality of the benefits conferred to a Cuban company on the SDN List by the GE Companies through their Canadian customer, which had substantial and public ties to Cuba and the Cuban mining industry. While OFAC considered certain jurisdictional limitations on GE’s ability to provide a full picture of the scope of work performed at the request of its Canadian customer, at all relevant times, GE had reason to know of its customer’s specific and longstanding relationship with Cobalt. GE should have treated its Canadian customer as higher risk due to the customer’s publicly known joint venture with Cuba and substantial reliance on Cuban-origin ore. Finally, despite the provision to GE of OFAC’s Office of Enforcement Data Delivery Standards, GE did not provide its primary submissions to OFAC in a clear and organized manner and the submissions contained numerous inaccuracies, placing a substantial resource burden on OFAC during the course of its investigation. 

OFAC determined the following to be mitigating factors:

(1)    None of the GE Companies has received a penalty notice or Finding of Violation from OFAC in the five years preceding the date of the earliest transaction giving rise to the alleged violations; 

(2)    GE identified the alleged violations by testing and auditing its compliance program. Additionally, GE implemented remedial measures and new processes to enhance its sanctions compliance procedures, including developing a training video for all company employees using the alleged violations as a case study; and 

(3)    GE cooperated with OFAC by executing and extending multiple statute of limitations tolling agreements. 

This enforcement action highlights the sanctions risks to U.S. companies and their foreign subsidiaries associated with (i) accepting payments from third parties and (ii) conducting transactions in foreign currency or at a foreign financial institution. Additionally, this action demonstrates the importance of conducting appropriate due diligence on customers and other counter-parties when initiating and renewing customer relationships. Ongoing compliance measures should be taken throughout the life of commercial relationships. 

As noted in OFAC’s Framework for Compliance Commitments, U.S. companies can mitigate sanctions risk by conducting risk assessments and exercising caution when doing business with entities that are affiliated with, or known to transact with, OFAC-sanctioned persons or jurisdictions, or that otherwise pose high risks due to their joint ventures, affiliates, subsidiaries, customers, suppliers, geographic location, or the products and services they offer. 

For more information regarding OFAC regulations, please go to: www.treasury.gov/ofac.

LINK To Document In PDF Format

Posts About GE Current Operations In Cuba:

https://www.cubatrade.org/blog/2016/12/13/general-electric-enters-cuba?rq=General%20Electric

https://www.cubatrade.org/blog/2016/3/12/lysrp5is9trf82ppzyke0404lbz1wr?rq=General%20Electric

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152 Days Since Libertad Act Operational: 20 Lawsuits, 5 Court Districts, 58 Attorneys, 103 Parties, 72 Plaintiffs, 67 Defendants, 5 Potential Defendants, 4 Class Action Requests

As of 1 October 2019, which is 152-days since the Trump Administration made operational Title III of the Cuban Liberty and Democratic Solidarity Act of 1996 (known as “Libertad Act”):

Twenty (20) lawsuits filed.
Court Filing Fees US$130,960.00
Fifty-Eight (58) Attorneys.
One Hundred And Three (103) companies/individuals, excluding attorneys, are lawsuits parties.
Seventy-Two (72) plaintiffs.
Four (4) Class Action status requests.
Sixty-seven (67) defendants.
Five (5) companies notified as will be added as defendants unless prompt settlement.
Lawsuits have been filed in the United States District Courts in Southern Florida (16), Washington DC (1), Washington State (1), Nevada (1) and Delaware (1).

Title III authorizes lawsuits in United States District Courts against companies and individuals who are using a certified claim or non-certified claim where the owner of the certified claim or non-certified claim has not received compensation from the Republic of Cuba or from a third-party who is using (“trafficking”) the asset.

LINK To The Complete Data In PDF Format 

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Resident Of Texas Sues American Airlines For Marketing Hotels; Has Also Sued Expedia For Libertad Act Trafficking In Cuba

On 26 September 2019, Robert M. Glen, a resident of the State of Texas, and a naturalized citizen of the United States, filed a lawsuit in the United States District Court, Southern District of Florida, against Fort Worth, Texas-based American Airlines, Inc. (2018 revenues approximately US$44 billion).  

According to the lawsuit, “American Airlines operates multiple flights per day from Miami International.  Airport to destinations in Cuba, including Varadero. Travelers can book these flights through American Airlines’ main website, www.aa.com.  Not only can American Airlines customers book flights to Cuba on the American Airlines website, but they can also book hotels for their stay in Cuba.  American Airlines facilitates such bookings through www.bookaahotels.com (“Book AA Hotels”), an American Airlines website that provides booking services for hotels in Cuba, including the four beachfront resorts on the properties confiscated from Glen’s family: the Iberostar Tainos, the Meliá Las Antillas, the Blau Varadero, and the Starfish Varadero.  American Airlines directs customers to Book AA Hotels through a “Hotels” link from its main website. Customers can reserve accommodations using Book AA Hotels whether or not they purchase a flight on American Airlines. And American Airlines customers can earn extra American Airlines loyalty points by booking a room through Book AA Hotels.  By facilitating bookings at these hotels, American Airlines is engaging in commercial activity that uses or otherwise benefits from Glen’s confiscated property. American Airlines is also participating in, and profiting from, trafficking committed by the hotels themselves.” 

LINK To Glen/American Airlines Case Filings 

On 26 September 2019, Robert M. Glen filed a lawsuit in the United States District Court, Western District of Seattle, Washington, against Bellevue, Washington-based Expedia, Inc.; Expedia Group, Inc. (2018 revenues exceeded US$11 billion); Hotels.com, L.P.; and Hotels.com GP, LLC.  

Expedia Group brands include: CarRentals.com, CheapTickets, Vrvo, Hotels.com, Hotwire.com, Orbitz.com, Travelocity.com, Trivago.com, and Venere.com 

Mr. Glen asserts that he holds a claim to “two beachfront properties located in Varadero, Cuba, on the Hicacos Peninsula.  Varadero is one of Cuba’s most popular beach resort towns…”  

According to the lawsuit, the defendants provide booking services for four (4) hotels located on the land confiscated from Mr. Glen’s family.  The hotels: the Iberostar Tainos, the Melia Las Antillas, the Blau Varadero, and the Starfish Varadero.  The companies managing the properties are also likely to be named as defendants. 

LINK To Glen/Expedia Case Filings 

On 25 September 2019, LATAM Airlines Group and Fort Worth, Texas-based American Airlines Group were sued in United States District Court, Southern District Of Florida, by an individual who claims ownership of the Jose Marti International Airport (HAV) in Havana, Republic of Cuba.    

LINK To LATAM/American Airlines Case Filings

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Resident Of Texas Sues Expedia In Seattle For Libertad Act Trafficking In Cuba

Robert M. Glen, a resident of the State of Texas, and a naturalized citizen of the United States, has filed a lawsuit in the United States District Court, Western District of Seattle, Washington, against Bellevue, Washington-based Expedia, Inc.; Expedia Group, Inc. (2018 revenues exceeded US$11 billion); Hotels.com, L.P.; and Hotels.com GP, LLC. 

Expedia Group brands include: CarRentals.com, CheapTickets, Vrvo, Hotels.com, Hotwire.com, Orbitz.com, Travelocity.com, Trivago.com, and Venere.com

Mr. Glen asserts that he holds a claim to “two beachfront properties located in Varadero, Cuba, on the Hicacos Peninsula.  Varadero is one of Cuba’s most popular beach resort towns…” 

According to the lawsuit, the defendants provide booking services for four (4) hotels located on the land confiscated from Mr. Glen’s family. 

The hotels: the Iberostar Tainos, the Melia Las Antillas, the Blau Varadero, and the Starfish Varadero. 

The companies managing the properties are also likely to be named as defendants.

LINK To Case Filings

US Firm Expedia Is Proud of Results in Cuba
By Martha Andres Roman
Prensa Latina News Agency
30 October 2019

“Washington, Oct 30 (Prensa Latina) The global travel platform Expedia Group, based in the United States, is satisfied with its results in Cuba, a country where there is a growing demand for accommodation in all destinations. 

We are very proud to be working with Cuba; we have done very well in that market, said Rafael del Castillo, Expedia's senior resorts director for Latin America, in a telephone interview with Prensa Latina.  Less than one and a half year, in May 2017, the US global travel technology company announced the inclusion of Cuba among its destinations, and described the country as an iconic destination rich in culture. 

Since then, the company's alliance with local hoteliers made great progress, because, although only some 20 properties were advertised through the platform in the beginning, Del Castillo highlighted that there are more than 1,500 at present, including hotels from several chains and private houses.  According to the senior director, 50 percent of reservations to Cuba made through Expedia come from the United States, a nation whose citizens face travel restrictions to visit the neighboring country, including the obligation to comply with 12 categories authorized by the Department of the Treasury. 

A statement released by the company last month pointed out that in June, almost 50 percent of the demand came from the United States, while other major tourist-sending markets were the United Kingdom, Germany, France, Canada, and Mexico. As the company stated in the statement, Expedia continues to increase the number of hosting partners in Cuba and is working closely with them to boost sales and help to meet their marketing objectives. 

'This increase in the number of accommodation partners opens up a wider variety of hotels that authorized travelers can choose for their vacations in Cuba,' the statement noted.  Regarding what destinations of Cuba are more attractive, Del Castillo first mentioned the capital, Havana, followed by the world-famous resort of Varadero and other areas in the west, although the company has reported a rapid growth in demand on the entire island. 

'Cuba is a magical destination, with a broad cultural offer, Havana with its entire colonial share and fantastic beaches,' said the executive, who added that the response to the offers has been very positive, especially among US customers.   

Regarding the restrictions imposed by the US Government on normal negotiations with Cuba, he pointed out that as a US company, it should follow the guidelines established by Washington, which prevents Expedia from contracting some properties.  However, we are positive and we hope that one day we can also work with those, noted the executive, adding that that Cuba is the company's fifth or sixth largest market in the Caribbean, and it has the potential to become the second one, only behind the Dominican Republic. 

As for the outlook for next year, Del Castillo pointed out that they hope to continue the fantastic pace of growth, and expressed the desire to bring a larger number of European customers, as well as from Mexico and Brazil, to Cuba.Such enthusiasm was expressed by the director himself in the statement issued a month ago when he said that Cuba ‘offers a unique combination of history, culture and some of the most beautiful and pristine beaches in the Caribbean.”

Delta Air Lines New Shareholding In LATAM Airlines Group Could Become Complicated With Libertad Act Lawsuit(s)

On 26 September 2019, Atlanta, Georgia-based Delta Air Lines (2018 revenues approximately US$44 billion) reported the intention to acquire a 20% shareholding in Santiago, Chile-based LATAM Airlines Group (2018 revenues approximately US$10 billion).  Delta Air Lines will become the third-largest shareholder in LATAM Airlines Group. 

On 25 September 2019, LATAM Airlines Group and Fort Worth, Texas-based American Airlines Group (2018 revenues approximately US$44 billion) were sued in United States District Court by an individual who claims ownership of the Jose Marti International Airport (HAV) in Havana, Republic of Cuba.   

The law firm representing the plaintiff has confirmed that approximately forty-nine (49) other airlines have been notified that they may be subject to litigation.  Link to post:  https://www.cubatrade.org/blog/2019/9/25/rivero-mestre-files-helms-burton-act-lawsuit-against-american-airlines-on-behalf-ofnbsprightful-owner-ofnbspjos-mart-international-airport-seeks-treble-damages 

Delta Air Lines operates flights from the United States to HAV, so the company may be subject to litigation.  Delta Air Lines would be expected to respond to litigation relating to the flights that it operates to HAV in a similar way as did American Airlines to The Wall Street Journal on 25 September 2019: 

“American Airlines service to Cuba including José Martí International Airport in Havana is authorized by the U.S. government including the Department of Transportation and the U.S. Office of Foreign Assets Control,” Joshua Freed, a spokesman for American Airlines, said on Wednesday. “We’ll review this lawsuit in detail and vigorously defend our service to Cuba.”   

Delta Air Lines may be subject to and impacted by litigation against LATAM Airlines Group relating to its shareholding in LATAM Airlines Group, which may not be able to use the same defense of operations as cited by American Airlines.  LATAM Airlines Group has assets in the United States that could be subject to attachment should the plaintiff prevail in court.

Delta Air Lines Is A Certified Claimant 

Delta Air Lines has since December 2016 operated regularly-scheduled flights from Atlanta, Georgia, and Miami, Florida, to Havana, Republic of Cuba. 

Delta Air Lines has operated more than 3,152 flights from the United States to the Republic of Cuba, delivering more than 331,944 passengers. 

The Republic of Cuba has earned a net profit from the landing fees for Delta Air Lines flights of at least US$212,396.08 (or US$964,278.20 with interest) the value of the certified claim. If Delta Air Lines was provided a discount on landing fees, the certified claim evaporates. 

Using as an example a 160-passenger Boeing 737-800 aircraft landing at Jose Mart International Airport (HAV) in Havana, Republic of Cuba, and departing within three (3) hours so not to incur parking fees.  Aircraft weight with 160-passengers is approximately 164,000 pounds (79,015 KG; 79.015 MT).  The flight example would be MIA/HAV/MIA.  1CUC=US$1.00.  Landing Fee: 4.89 CUC X 79.015 equals US$386.38. 

Passengers Departure Rate: 25.00 CUC X 160 equals US$4,000.00.  Customs: 96.00 CUC.  Airport Medical Services: 80.00 CUC.  Total Fees to land and then depart HAV: CUC 4,562.38.   

Approximate number of Delta Air Lines flights from 1 December 2016 through 30 November 2018: 1,855.  Approximate Landing Fees paid by Delta Air Lines to HAV from 2016: US$8,463,214.90The value of the certified claim represents approximately 2.5% of the fees paid by Delta Air Lines to the Republic of Cuba.

Excerpts From LATAM Media Release:

“Delta and LATAM Airlines to form the leading airline partnership throughout the Americas
September 26, 2019

Partnership brings together the leading airlines in North America and Latin America, connecting the Americas to the world as never before 

Together, Delta and LATAM will hold the leading position in five of the top six Latin American markets from the U.S. 

Together, the partners will serve 435 destinations worldwide and carry more passengers between North America and Latin America than any other partnership 

Customers will benefit from significantly expanded travel choices across the Americas and an industry leading customer experience 

ATLANTA and SANTIAGO, CHILE, Sept. 26, 2019 — Delta (NYSE: DAL) and LATAM Airlines Group S.A. (NYSE: LTM; IPSA: LTM) (“LATAM”) today announced that they have entered into a strategic partnership that for the first time combines the strengths of the leading airlines in North and Latin America.

“This transformative partnership with LATAM will bring together our leading global brands, enabling us to provide the very best service and reliability for travelers to, from and throughout the Americas,” said Ed Bastian, Delta’s chief executive officer. “Our people, customers, owners and communities will all benefit from this exciting platform for future growth.” 

“This alliance with Delta strengthens our company and enhances our leadership in Latin America by providing the best connectivity through our highly complementary route networks,” said Enrique Cueto Plaza, chief executive officer of LATAM. “We look forward to working alongside one of the world’s best airlines to enhance the travel experience for our passengers.”

The strategic partnership will unlock new growth opportunities, building upon Delta’s and LATAM’s global footprint and joint ventures worldwide, including Delta’s existing partnership with Aeroméxico. With their complementary networks, Delta, LATAM and their partners will be able to offer access to a greatly expanded array of worldwide destinations. Together, the partnership will provide greater customer convenience, a more seamless travel experience and better connect customers with the rest of the world.  Additional details of the partnership include: 

Delta will invest $1.9 billion for a 20 percent stake in LATAM through a public tender offer at $16 per share, to be funded principally with newly issued debt and available cash. 

Delta will also invest $350 million to support the establishment of the strategic partnership. 

Delta will acquire four A350 aircraft from LATAM and has agreed to assume LATAM’s commitment to purchase 10 additional A350 aircraft to be delivered beginning in 2020 through 2025, supporting Delta’s ongoing fleet transformation. 

Delta will be represented on LATAM’s Board of Directors, further strengthening the relationship. 

The tender offer and the strategic alliance are subject to customary closing conditions and all required governmental and regulatory approvals, including anti-trust immunity. 

Delta expects that the transaction will be accretive to EPS over the next two years. In addition, the transaction will not impact the company’s existing financial commitments to shareholders, including free cash flow and shareholder returns. Delta also expects to remain within targeted leverage ratios.

LATAM expects the transaction will improve free cash flow generation, reduce forecasted debt by over $2 billion by 2025 and improve LATAM’s capital structure, enhancing its ability to execute its long-term strategy.

About Delta

Delta Air Lines (NYSE: DAL) is the U.S. global airline leader in products, services, innovation, reliability and customer experience. Powered by its 80,000 people around the world, Delta continues to invest billions in its people, delivering a world-class travel experience and generating industry-leading shareholder returns. With its constant drive to invest, innovate and expand, Delta today is the world’s No. 1 airline by total revenues.

Delta serves nearly 200 million people every year, taking customers across its industry-leading global network to more than 300 destinations in over 50 countries. Headquartered in Atlanta, Delta offers more than 5,000 daily departures and as many as 15,000 affiliated departures including the premier SkyTeam alliance, of which Delta is a founding member. Through its innovative alliances with Aeroméxico, Air France-KLM, Alitalia, China Eastern, Korean Air, Virgin Atlantic, Virgin Australia and WestJet, Delta is bringing more choice and competition to customers worldwide. Delta operates significant hubs and key markets at airports in Amsterdam, Atlanta, Boston, Detroit, London-Heathrow, Los Angeles, Mexico City, Minneapolis/St. Paul, New York-JFK and LaGuardia, Paris- Charles de Gaulle, Salt Lake City, São Paulo, Seattle, Seoul-Incheon and Tokyo. 

Delta has been recognized as a Fortune’s top 50 Most Admired Companies in addition to being named the most admired airline for the eighth time in nine years. Additionally, Delta has ranked No.1 in the Business Travel News Annual Airline survey for an unprecedented eight consecutive years and named one of Fast Company’s Most Innovative Companies Worldwide for two consecutive years. As an employer, Delta has been regularly awarded top honors from organizations like Glassdoor and recognized as a top workplace for women and members of the military. Delta CEO Ed Bastian was named among the “World’s Greatest Leaders” by Fortune magazine in 2018. 

About LATAM Airlines Group S.A

LATAM Airlines Group is Latin America’s leading airline group with one of the largest route networks in the world, offering services to 143 destinations in 25 countries, including six domestic markets in Latin America – Argentina, Brazil, Chile, Colombia, Ecuador and Peru – in addition to international operations in Latin America, Europe, the United States, the Caribbean, Oceania, Africa and Asia.

The airline group employs over 41,000 people worldwide, operating approximately 1,300 flights per day and transporting 71 million passengers per year. LATAM Airlines Group has 322 aircraft in its fleet, which features the latest and most modern models including the Boeing 787, Airbus A350, A321 and A320neo.

LATAM Airlines Group is the only airline group in the Americas and one of three worldwide to be part of the Dow Jones Sustainability ‘World’ Index. In 2019, it was recognized by the index for sustainable practices, based on economic, social and environmental criteria, for the sixth consecutive year.
LATAM Airlines Group shares are traded on the Santiago Stock Exchange and the New York Stock Exchange in the form of ADRs.”

R21A330-900-Delta-Air-Lines-MSN1915-20first-flight-002.jpg

Using Libertad Act, Amazon Sued For Selling Third-Party Charcoal Sourced In Cuba

“Amazon Hit with Lawsuit for Trafficking in Seized Cuban Property. Ecommerce giant profited from communist regime, according to suit, “ according To Media Release From Law Firm

“MIAMI, Sept. 26, 2019 /PRNewswire/ -- A U.S. citizen has sued Amazon.com under a newly revived provision of a U.S. law that permits legal action by U.S. citizens or entities against companies profiting from property that was confiscated by the Cuban government. 

The lawsuit, filed Thursday in federal court in Miami, Florida by Daniel A. Gonzalez, comes several months after the U.S. lifted a 23-year-old suspension of a provision of the 1996 Helms-Burton Act. The provision allows certain U.S. nationals with claims to properties confiscated by the Cuban government to seek damages from companies trafficking in the property. 

Mr. Gonzalez, descendant of the original owner, holds title to 2,000 acres of land in the Oriente province of Cuba. The land is used to produce marabu charcoal for export to the U.S. According to the complaint, Amazon, benefited from and trafficked in the confiscated property by selling charcoal produced on the property on its website. Mr. Gonzalez stated that he only wishes his grandfather, Miguel Gonzalez Rodriguez, who originally purchased the land, could have seen the day when the suit was filed. He died in 1987—roughly 23 years after communist soldiers gave him and his family only seven days to leave the property with only their personal belongings. 

"It's ironic, in my opinion, that the initial seed capital for Amazon came from the generosity of a Cuban exile-- the founder's father. Now 25 years later, the company is profiting from property seized by the same communist regime from which [the founder's father] fled," added Mr. Gonzalez. 

The lawsuit includes FOGO Charcoal, a Miami-based company, also alleged to have benefited from and trafficked in Mr. Gonzalez' seized property. 

According to Santiago A. Cueto, a board-certified international law expert at Cueto Law Group, P.L., who is representing the plaintiff, the total damages sought for the case are substantial given the sheer size and value of the expropriated land. The lawsuit is the latest filed under the provisions of the Helms-Burton Act.  Other U.S. citizens filed lawsuits recently against, Carnival Corp. and American Airlines, alleging that the companies were doing business on seized Cuban property to which they have claims. 

Cueto Law Group, P.L. is an international business law firm based in Miami, Florida.  Contact: Santiago A. Cueto, 305-777-0377”

LINK To Court Filings (1:19-cv-23988-RNS)

LINKS To Fogo Charcoal-Related Posts:

https://www.cubatrade.org/blog/2017/1/5/charcoal-joins-coal-to-become-second-commodity-exported-from-cuba-to-the-united-states?rq=Fogo%20charcoal

https://www.cubatrade.org/blog/2018/10/23/fogo-in-florida-reports-2nd-charcoal-purchase-from-cuba-two-20ft-containers?rq=Fogo%20charcoal

https://www.cubatrade.org/blog/2019/6/9/yt69n8siij03ylzethfvxup85o1fwg?rq=Fogo%20charcoal

amazon_dkblue_noto_email_v2016_us-main._CB468775337_.png

U.S. Department Of State Designates General Raul Castro, Former President Of Cuba

United States Department of State

Washington DC 

Public Designation of Raul Castro, Due to Involvement in Gross Violations of Human Rights

26 September 2019  

The Department is publicly designating Raul Modesto Castro Ruz, the First Secretary of the Central Committee of the Cuban Communist Party and First Secretary of the Cuban Revolutionary Armed Forces, under Section 7031(c) of the FY 2019 Department of State, Foreign Operations, and Related Programs Appropriations Act, due to his involvement in gross violations of human rights.  Section 7031(c) provides that, in cases where the Secretary of State has credible information that foreign government officials have been involved in significant corruption or a gross violation of human rights, those individuals and their immediate family members are ineligible for entry into the United States. 

The law also requires the Secretary of State to publicly or privately designate such officials and their immediate family members.  In addition to the public designation of Raul Castro, the Department is also publicly designating his children, Alejandro Castro Espin, Deborah Castro Espin, Mariela Castro Espin, and Nilsa Castro Espin. 

As First Secretary of the Cuban Communist Party, Raul Castro oversees a system that arbitrarily detains thousands of Cubans and currently holds more than 100 political prisoners.  As First Secretary of Cuba’s Armed Forces, Castro is responsible for Cuba’s actions to prop up the former Maduro regime in Venezuela through violence, intimidation, and repression.  In concert with Maduro’s military and intelligence officers, members of the Cuban security forces have been involved in gross human rights violations and abuses in Venezuela, including torture.  Castro is complicit in undermining Venezuela’s democracy and triggering the hemisphere’s largest humanitarian crisis, forcing 15 percent of the Venezuelan population to flee the country and precipitating a food shortage and health crisis of unprecedented scale in this region. 

The United States strongly supports the rights of the Cuban and Venezuelan people.  We will continue to pursue all diplomatic and economic tools to help the Venezuelan people achieve the transition they deserve.

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Remarks By President Trump At Meeting On Venezuela

Office of the Press Secretary

FOR IMMEDIATE RELEASE  

September 25, 2019

REMARKS BY PRESIDENT TRUMP IN A MULTILATERAL MEETING ON THE BOLIVARIAN REPUBLIC OF VENEZUELA
 
InterContinental New York Barclay
New York, New York
10:16 A.M. EDT

PRESIDENT TRUMP:  Thank you very much.  Are you ready?  Ready?  Thank you very much.  Thank you. I'm honored to be here today among so many terrific leaders dedicated to the future of democracy, prosperity, and freedom for the people of Venezuela.  We are behind you. 
 
For this deeply important event, we are grateful to be joined by Secretary Mike Pompeo, Secretary Steve Mnuchin, Secretary Wilbur Ross, and Administrator Mark Green.  Thank you all for being here.  Thank you very much.
 
I want to extend my profound appreciation to every representative with us from across the Western Hemisphere.  Each of you is part of a historic coalition of 55 countries that recognize the legitimate constitutional government of Venezuela.  We are especially grateful to be joined by representatives of the people of Argentina, Brazil, Colombia, Chile, Ecuador, and Peru, for their leadership and assistance in the face of an unprecedented political, economic, and humanitarian disaster, which has been going on for a long time.  And we're helping a lot.  We're helping a lot. 
 
Let me also recognize two leaders from the government of Venezuela's legitimate interim government, Presidential Commissioner for Foreign Affairs, Julio Borges.  Where's Julio?  Julio?  Please, stand up, Julio.  Great.  Thank you very much.  Thank you.  (Applause.)  And Venezuela's Ambassador to the United States, Carlos Vecchio.  Where's Carlos?  Thank you, Carlos.  Please.  (Applause.)  It's very nice.  Thank you. 
 
As everyone in this room knows, the situation in Venezuela is a tragedy of historic proportions.  The Maduro regime does not care about the welfare of their own people.  They care about their own power.  It's what they want, is power and money.  They want the money, too -- not just power.  Socialism has destroyed what was once among the most prosperous countries anywhere in the world.  You go back 20 years ago and you look: one of the wealthiest countries in the world, relatively speaking.  And now, they don’t have water, they don’t have food, they don’t have medicine, they don’t have anything.
 
Today, Venezuelans are starving and they're dying from lack of medicine, doctors, help.  According to U.N. Human Rights Commissioner, Maduro's Cuban-trained death squads have murdered up to 10,000 Venezuelans, and they think that number is extremely low.  Citizens since -- all since 2018.  That's over a very short period of time.  These atrocities are an outrage to all and everything that we hold dear.
 
As President of the United States, I am committed to the future of stability, prosperity, and liberty for Venezuela.  We will stand with the Venezuelan people every single day until they are finally freed from this horrible and brutal oppression.  They will be freed.  It will happen. Our first objective is to ensure a peaceful and constitutional transition, paving the way for free and fair elections.  That's why we, at the United States, and in the United States, are doing everything we can to isolate Maduro and his cronies.
 
Over the past year, the U.S. Treasury Department has imposed very tough sanctions to prevent Maduro and his enablers from accessing the U.S. financial system.  Last month, I issued an executive order to completely freeze the assets of the Maduro regime in the United States.  Our sanctions have been tightly focused on closing down every avenue by which Maduro sustains his criminal and totalitarian rule.  And he has been vicious, he's been corrupt.  He's been as bad as you get.
 
At the same time, we have undertaken significant efforts to ensure that the Venezuelan people have access to food, medicine, and other humanitarian supplies, despite the regime's efforts to stop aid from coming into Venezuela.  They are making it very, very hard to get aid into Venezuela.  We are getting aid into Venezuela, but it's a very difficult thing.  You would think, frankly, that would be to their benefit to let aid get in instead of letting people die from lack of medicine or food.  But they don’t make it easy, but we get it in anyway. 
 
We call on Maduro to immediately allow his lifesaving humanitarian aid.  This has to be allowed to come into Venezuela for the long-suffering Venezuelan people.  Unfortunately, a few countries outside of this hemisphere continue to enable this depraved regime with military and technological support.  The most significant factor propping up the Venezuelan regime is the communist dictatorship in Cuba.  Maduro allows Cuba to plunder Venezuelans' oil, raid its wealth, and rob its people.  Venezuela's oil is at a low point.  Not much is being taken out.  Not many people are in there because of the dangers involved. But nevertheless, there's some money coming out, and it goes into Cuba. 
 
He's allowed thousands of Cuban agents to infiltrate Venezuela's security forces and other institutions.  In other words, Maduro has sold out his nation to a foreign dictatorship, and it has been that way a long time. The civilized world must pressure the Cuban regime to leave Venezuela immediately.  The United States is ready to support a democratic transition government, and we know that our partners around the world -- of which we have many -- are ready as well.  Venezuela's rebuilding can begin the moment a peaceful transition occurs. 
 
This is a critical moment for the world.  We must not allow the destructive forces of socialism and communism to repeat the horrors of the last century.  Can't allow it to happen.  There have been horrors like nobody would believe.  We can't allow this to happen today in Venezuela.  We resolve that the future of the Western Hemisphere will not be written by socialists and tyrants, but by liberty-loving patriots.  Our great destiny is to become the first fully free hemisphere in human history.  We have a very, very good chance of doing that.
 
We work and we pray for the hour when every person across the region, and every suffering soul in Cuba, Nicaragua, and Venezuela, will finally know the blessings of democracy and the full glory of freedom.
Once again, thank you all to so many of my friends in this room and to the nations that have helped us with respect to Venezuela and many other things.  I want to personally thank the President of Mexico for the incredible work and spirit and everything that they’ve done on our southern border.  Our southern border has become secure, with 27,000 Mexican soldiers on the Mexican side, telling people, “Sorry, you can’t come in.”  So I want to thank the President of Mexico.  Thank you very much.
 
And for Venezuela: It will all work.  It will all come back.  And good things will happen.  Thank you very much.  Thank you.  Thank you very much, everybody.  Thank you.  (Applause.)  Thank you very much.
 
Q    Mr. President, on the transcript, sir?  On the transcript, sir?
 
PRESIDENT TRUMP:  Okay.  You know what?  Because you’re so anxious, we’re going to let you stay as certain presidents speak.  Because I know that’s what you want to hear.

SECRETARY POMPEO:  Thank you, Mr. President.  Let me do the introductions.  First of all, Mr. President, let me say how proud I am to be part of everything that you have led in this effort to try and bring the Venezuelan crisis to a peaceful and democratic resolution.  Your leadership has been outstanding.

The work of the Lima Group, too, has been important.  I believe it’s a sign of a new era in Latin America.  And like your nations, the United States is tired of the heartbreaking stories of Venezuelans forced to dig through trash cans for food, of the hospital patients dying unnecessarily, of the millions of innocent children who go to bed hungry every night because 94 percent of Venezuelan households can’t get their basic necessities. The United States wants to announce today an additional tranche of $118 million to aid the Venezuelan crisis response.  The assistance will include $36 million for relief efforts inside of Venezuela.  They’ll provide urgently needed medicines that improve access to quality healthcare of for the Venezuelan people.  The remaining monies will protect and assist many of your countries, as you generously host a combined 4.4 million Venezuelans who have fled their country -- over 10 percent of the Venezuelan population.  We’ll help provide food, shelter, clean water, and legal support for them. 
 
This brings to over $570 million the amount of aid that we have provided -- the United States has provided -- to ease the crisis, both inside Venezuela and throughout the hemisphere. As long as the Maduro regime stands, it will stand between the Venezuelan people and their return to freedom and prosperity.  The United States, under President Trump, remains a steadfast supporter of the Venezuelan people and of the Lima Group in its ongoing struggle for the prosperous, free, and democratic Venezuela.
 
It’s now my pleasure to introduce a member of the true government of Venezuela: Julio Borges.  Mr. Borges is a longtime supporter of a return to democracy in Venezuela, and for this, he has been forced into exile by the Maduro regime.  He now lives in Colombia. Earlier this year, Interim President Juan Guaidó appointed him as Venezuela’s representative to the Lima Group, and later as presidential advisor on external relationships. Julio, you’ve been instrumental in rallying the international community to place pressure on the Maduro regime, and we’re honored to have you with us today.  The floor is yours, sir.
 
MR. BORGES:  Well, thank you.  Thank you for being here today.  I would like to make a five-minute introduction about what’s going on in Venezuela.  I could be speaking in Spanish, but I have chosen to speak in English because, Mr. President, on behalf of the Venezuelan people, their democratic-elected National Assembly, and their President Juan Guaidó, I want to personally thank for the leadership that you have shown in our case.
 
PRESIDENT TRUMP:  Thank you.
 
MR. BORGES:  Your leadership has made a big difference.  And I thank each and every one of you for what your governments have done to end the suffering in Venezuela and reclaim our democracy.  You have helped us in our time of great need, which is something no Venezuelan will ever forget. Venezuela is not alone.  Nicolás Maduro and his criminal regime is responsible for the historic crisis impacting our country.  To put it in perspective, from an economic standpoint of view: Venezuela’s economic crisis is almost three times bigger than the Great Depression.  And from the humanitarian point of view, it’s become the second-largest refugee exodus in the world.
 
President Guaidó has been working closely with you to reverse the situation.  We, as a Venezuelan, has been fighting for almost 20 years.  We have gone down many paths, seeking a peaceful solution, but the dictatorship has stalled all possibilities time and time again. Today, Venezuela is not passively asking for solidarity.  The suffering of our people gives testimony of our times of need.  This sacrifice have achieved important accomplishments. Let’s be clear: The diplomatic pressure from democratic voices has been effective.  The dictatorship is fractured and weak, and only backed by the Cuban regime that has tortured, persecuted our people and our brave armed force.
 
Michelle Bachelet’s recent report exposed the repression, torture, and executions that the regime carries out against civilians and members of our armed force in Venezuela.  Mr. President and all leaders of Americas, over the last year, regime force have murdered a citizen every two hours. Havana is the mastermind behind this tragedy to sustain Maduro.  This is why crucial to break the regime of Díaz-Canel, Raúl Castro, and Maduro with more democratic pressure. 
 
Our humble petition to the Americas is simple: First, that every country in the region should impose sanctions on Cuba.  It is time for Castro and Díaz-Canel to understand the consequences of supporting a criminal regime. Second, every country in the region should move forward, as agreed to in TIAR, to prosecute any regime member involved in drug trafficking, human rights violations, and corruption.  
Third, maintain the support for Venezuelan National Assembly and our President, Juan Guaidó. And last but not least, compel Europe to more actively join efforts to put more pressures on Maduro regime.
 
The alliance between the Cuban and Venezuelan regimes holds over 50 million hostage.  Millions of Cubans and Venezuelans have had to abandon their homelands to escape oppression.  And this should not be tolerated.  I have had the honor of traveling to the border of Cúcuta with President Duque, with President Piñera, with President Abdo, and as well with Secretary Pompeo.  And most recently, with Ivanka Trump.  I have seen them moved to tears because the stories of suffering cannot be put into words.  Mark has been many times over there as well. 
 
As rightly so, because we are not talking about cold numbers or (inaudible) statistics.  Socialist dictatorships, such as Maduro, dehumanize.  With great pain, we have seen the regime has done the most vulnerable people in my country.  Child prostitution, President, has been normalized.  Women are being sold into slavery and taken to other countries for profit, while children and (inaudible) have been recruited by terrorist organizations linked to drug trafficking.  And our people are crawling through the streets of Venezuela looking for food.
 
The Maduro regime is a corrupt, criminal enterprise that has turned what once was one of the most prosperous country in the region into a living and dying hell.  The world needs to understand that Venezuela is not a dictatorship, not even a failed state.  It's something worse.  The Maduro regime is a sanctuary for the promotion of terrorism, drug trafficking, and organized crime. 
 
Faced with this reality, there are those who are shocked when we say that no option can be ruled out to rid Venezuela and the region for this corrupt regime.  They say that keeping every option is very dangerous.  However, Mr. President, evidence shows that the worst thing that could happen in Venezuela is that nothing happens.  What is truly dangerous, what is unacceptable, is having a regime destabilize the whole region while 35 million people are starving to death.  Ignoring the crisis in Venezuela leaves an open wound that will infect the region and will destroy democracy throughout the continent.  As I said, in the case of Venezuela, the worst thing that could happen is that nothing happens.
 
Presidents and leaders of the Americas, on behalf of millions of Venezuela, I thank you because we are close to victory. President Trump, you have led the free world in the fight for freedom in Venezuela and Cuba.  History and the Venezuelan people will remember and recognize you.  Recent opinion research in Venezuela shows the total support for our policy, for your plans to Venezuela, and you have become the most important leader within Venezuela, which is very important for us. 
 
PRESIDENT TRUMP:  Maybe I'll move there.  (Laughter.)
 
MR. BORGES:  All right.  (Laughter.)  Next time.  I'm convinced that working together, working together the whole Americas, 30 years after the fall of the Berlin Wall, another wall will fall in the Americas and give the way to a chapter of peace, progress, and development for our hemisphere.  Venezuela will rise with the strength of its people.  We will reveal our country with the spirit of those who refuse to surrender.   
President and leaders of the Americas, 32 millions of Venezuelans and 12 millions of Cubans are at the gates of freedom.  Let's not make them wait any longer.  Thank you very much.  (Applause.) 
 
PRESIDENT TRUMP:   Thank you.  Thank you. Would the presidents like to speak in front of the media or without the media?  We have three presidents who are going to speak.  Would you prefer the media or not, presidents?
 
SECRETARY POMPEO:  President Duque, would you like to begin?
 
PRESIDENT DUQUE:  Thank you so much, Mr. Secretary.  Thank you so much, President Trump, for gathering this very important meeting.  I’m going to be brief, but I'm going to try to be very (inaudible) in my statements.  What we have been seeing in Venezuela is a tragedy of major proportional dimensions.  What we have seen is the worst humanitarian crisis in Latin America's recent history.  What we have seen is the brutality of a dictatorship that is only comparable to what some countries saw when Slobodan Milošević brutalized thousands of people. 
 
That’s why we consider him a criminal.  That’s why we have denounced him before the International Criminal Court with the support of many heads of state around the hemisphere, and also in Europe.  We consider his behavior to be not only regrettable, but it has to punished, and that’s why we all must continue to embrace the diplomatic blockade and to explore as many sanctions are needed against that criminal.  The second thing I want to highlight is that the migration crisis -- it's really producing a major social impact.  In Colombia, we have supported the migrants.  We have 1.4 million Venezuelan brothers and sisters, and we will continue to provide support because we know they're coming to our country with (inaudible), lacking of medicine, and many of them without any access to food. 
 
But we have to make the call to the whole world that this situation is unsustainable.  And that’s why the coalition that is sitting among this table, but also the coalition that has build of more than 54 states that have recognized President Guaidó and they have recognized the National Assembly, must also continue to bring more countries to the table, because this coalition has to be stronger day by day.
 
I also want to highlight that the behavior of the dictatorship is also affecting the national security of many states, obviously including Colombia.  Nicolás Maduro has become a sponsor, and he's providing safe haven to terrorist groups from Colombia to plot against the Colombian people.  And that attitude is only comparable to what the world saw when the Taliban regime allowed al Qaeda to plot against the whole world, in their soil. 
 
We continue believing that that behavior is in direct violation of Resolution 1373 that was issued by the United Nations Security Council right after September 11.  And we're going to make that denouncement public today when I deliver my speech before the U.N. General Assembly.  I will present a report that is going to be given to the U.N. Security Council, the U.N. Secretary-General.  And I believe that that report should be open for a debate. 
 
We also believe that that behavior requires not only the whole world to be seen and to be addressed, but we also want to highlight what happened this week in a historical way.  The Inter-American Treaty for Reciprocal Assistance had a historical voting, and they recognized that the Maduro regime is pretty much involved in terrorism sponsorship, narco-trafficking activities.
 
And last but not least, I also want to mention that the following months are crucial.  The following weeks, the following hours are crucial.  Some people speculate whether Maduro is going to last more.  But I continue the debate should be different.  The debate is: What is it that we’re going to do so that we can grant liberty to the Venezuelan people? That’s why we’re gathered here at this table, and that’s why we support the approach of strengthening everything we can do so that three conditions are met: the end of the dictatorship, a transitionary government, the call for free elections, and maybe I’ll include a plan for economic and social recovery in Venezuela. Thank you so much, Mr. President.
 
PRESIDENT TRUMP:  Thank you.  Thank you very much.  (Applause.)
 
SECRETARY POMPEO:  Thank you, President Duque.  Now I would like to hear from President Piñera.  Please.
 
PRESIDENT PIÑERA:  Thank you very much.  Well, we all know that we are dealing with a criminal, corrupt -- (microphone is turned on.)  I’m sorry.  Thank you very much.  We all know that we are dealing with a criminal, corrupt, and drug-related regime.  And the conclusion is very clear: This dictatorship has to stop. Maduro is part of the problem and will never be part of the solution.  The solution has been expressed by President Duque.  We need to end this regime, have a transitional government, call to free and open and transparent elections, and then the big story of how to reconstruct Venezuela will start.  And we will be supporting all of these stages.
 
But at the same time, we have to realize there are some allies that are helping Venezuela, and we are talking -- we are talking about countries like Cuba, China, Russia, Iran, and Turkey.  I think that the whole Latin American community, and maybe the whole world, should let them very clear that what they are doing is affecting -- and it’s really affecting the interests of all Latin American countries.
 
We know that we have already more than 4.5 million refugees -- migrants.  But probably the number will double if the situation stays as it is.  In the case of Chile, we have received more than 450,000, which is about 2 percent of our population.  Compared to the U.S., it would be equivalent to 6 million Venezuelans in the U.S. And we are happy to do so because that’s one way to help.  But the solution and the final conclusion here should be we have to make it impossible for the regime to continue. One thing is that we have to seize all their assets of their main members of this dictators; avoid and prevent any moment so that the situation will become more and more difficult for them; and, at the same time, we have to help and solidarize and continue with the democratic opposition in Venezuela. But I know the situation is very, very difficult.  But you know that the night never is so dark that just before dawn.  Thank you very much.  (Applause.)
 
SECRETARY POMPEO:  Thank you, President Piñera.  President Moreno, the floor is yours, sir.
 
PRESIDENT MORENO:  (As interpreted.)  Thank you.  My dear colleagues, the ill that brings us here today has to do with the democracy of the world and the stability of a region.  It is related specifically to this people -- this people who was suffering and the presidents around the table from countries to which over 4 million migrants have gone; people who are living beings, who wander the streets, they wander our avenues, looking for refuge.  They seek a way out.  They seek a solution to the problems they face when it comes to hunger, safety, and health.  They have been kicked out by this regime.  They seek social justice. 
 
However, this regime has been despotic for so many years, and it is due to this.  But international action should never be interpreted as intervention.  We cannot talk about intervention because all countries, including Venezuela, have signed all commitments, all agreements related to the democracy of this community. This is an ethical obligation as well.  My colleagues who preceded me have stated this.  We are talking about over 4 million people, who are humble people, who have fled, who flee this despotic regime, this criminal regime -- the regime of Nicolás Maduro, which is the most corrupt, which harbors terrorists, and where all international criminals go in the end to seek refuge, including those who represented corrupt regimes in our countries.
 
This is why it is -- this meeting is so important.  This meeting is important because I would like to energetically make the call for democracy to be put into place in Venezuela, as it should be in a country that has lived in democracy for so long.  They cannot be going through a genocidal regime.  The only exit is democracy -- democracy with a broad international observation, with no pressure, with no red spots, so that people are able to vote freely.  This cannot happen under any circumstances unless they're -- unless all democratic institutions, all international organizations involved in democracy participate, are involved in making sure that the will of Venezuelans is no longer deceived. 
 
Venezuela is most definitely a failed state.  It is a failed state, and this is shown by the exit not of dissidents, not people opposed to policies.  We're talking about humble people -- people who are personally living through how terrible it has been to suffer through the regime of a despot. Unfortunately, we have to hear that this is a Bolivarian republic.  No, we are a Bolivarian republic.  We are aligned with the ideals of Washington, of Jefferson, and we converge with the ideals of Bolívar.  And Bolívar never would have imagined any like this.  Bolívar must be turning in his grave.
 
Looking at everything that has happened to a democracy that at one time was among the most prosperous in Latin America -- and I will say this again -- that is why this meeting is such a great one, and it will be great as long we can talk about benefitting that democracy.  Maduro must leave power and, immediately, there must be a call for elections.  That is the only way out.  That is the only way out for this people.  As I said, there must be elections with broad international observation.  Thank you very much.  (Applause.)  
 
PRESIDENT TRUMP:  Thank you very much.  Thank you, everybody.  Thank you very much.
 
Q    Mr. President, in the Ukraine transcript, sir, you talk about how good the U.S. has been to Ukraine.  You ask President Zelensky for a favor.  And you ask him to talk to the Attorney General of the United States and Rudy Giuliani about Joe Biden.  Sir, how is that not pressuring President Zelensky?  How does the transcript --
 
PRESIDENT TRUMP:  There was no pressure whatsoever.  And if you take a look at the Democrats, they went down to see the President of Ukraine, and they asked him for all sorts of things.  And, "Don't go with the Republicans," and, "Stay with us."  And -- like it's a political war.  They shouldn’t have done that.  That should be an impeachable event, I guess, based on what you're saying.  The Democrats just came out.  They went down there -- a group of people -- some of whom I was dealing with on the gun issue.  And they went down and put tremendous pressure on Ukraine.  The President himself just came out with a statement saying there was absolutely no pressure put on him.  And there wasn’t. What I do want to see is, is I want to see other countries helping Ukraine also, not just us.  As usual, the United States helps, and nobody else is there.  So I want to see other countries help.
 
Just so you understand, it’s the single greatest witch hunt in American history -- probably, in history, but in American history.  It's a disgraceful thing.  The letter was a great letter.  Meaning, the letter revealing the call.  That was done at the insistence of myself and other people that read it.  It was a friendly letter.  There was no pressure.  The way you had that built up -- that call -- it was going to be the call from hell.  It turned out to be a nothing call, other than a lot of people said, "I never knew you could be so nice."  So, part of the problem you have is you have the fake news.  You have a lot of corrupt reporting.  You have some very fine reporters and journalists, but you have a lot of corrupt reporters, a lot of corrupt journalists.  I would rate you right in there, by the way.  And --
 
Q    You said --
 
PRESIDENT TRUMP:  Excuse me.  Excuse me. 
 
(Cross-talk.)
 
PRESIDENT TRUMP:  Excuse me.  Excuse me.  So, we're having -- if you noticed, the stock market went up.  When they saw the nonsense, all of a sudden the stock market went down very substantially yesterday when they saw a charge.  After they read the charge, the stock market went up very substantially.  
 
We have created the greatest economy in the history of our country.  The greatest economy in the world.  Had my opponent won, China would right now be the number one economy, by far.  And right now, China is way behind us and they'll never catch us if we have smart leadership.  Way behind.  We've picked up trillions of dollars, and they've lost trillions of dollars.  And they want to make a deal very badly.  And it could happen.  It could happen.  It could happen.  It could happen sooner than you think.
 
Our military is rebuilt.  Our military has never been stronger.  When I came in, it was depleted.  Our vets are happy.  So many great things are happening.  And the Democrats feel they're going to lose.  We had the highest poll number -- Rasmussen -- 53, but they say you could add 10 to it.  A lot of people say you could add more than 10 to it because a lot of people just don’t want to talk about it, but they want to vote for Trump. 
 
So I just say this: We have the strongest country we've ever had.  We have the best economy we've ever had.  We have the best unemployment numbers we've ever had.  We have the best employment numbers we've ever had.  We have now almost 160 million people working.  That’s far more than we've ever had working in our country before. Thank you very much, everybody.  Thank you.  Thank you.  Thank you very much.  Thank you.  Thank you.

END

10:52 A.M. EDT

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