New Report Data Shows Cuba Owing China US$4.643 Billion In "sovereign and hidden debt exposure" For BRI And ODA

"AidData is a research and innovation lab located at the [Williamsburg, Virginia-based] College of William & Mary that seeks to make development finance more transparent, accountable, and effective. The AidData website provides access to development finance activity records from most official aid donors."

"Over the last two decades, China has provided record amounts of international development finance and established itself as a financier of first resort for many low- and middle-income countries (LMICs); however, its grant-giving and lending activities remain shrouded in secrecy. Our paper introduces a uniquely comprehensive and granular dataset of international development finance from China. It captures 13,427 projects worth $843 billion across 165 countries in every major world region over an 18-year period."

Banking on the Belt and Road: Insights from a new global dataset of 13,427 Chinese development projects LINK

Table 3: Top 25 recipients of Chinese ODA [Official Development Assistance], 2000-2017
Cuba- US$3.35 billion

Note: The following countries have hidden or sovereign debt less than or equal to 10% of their GDP - Cuba

Several countries, such as Cuba and Sudan, have encountered similar obstacles ["U.S. sanctions and “currency problems” made it too difficult to proceed."] to BRI [Belt and Road Initiative] project implementation.

Table A-2: Countries Included in the 2.0 Dataset
Row Count- 118 Projects LINK TO CUBA DATA

Table A-4: Sovereign and hidden debt exposure by borrower country, 2000-2017
Cuba
Hidden debt exposure to China as % of GDP (AidData)- 0%
Sovereign debt exposure to China as % of GDP (AidData)- 4%

Table A-17: Year that countries first signed a BRI cooperative agreement or MOU
Cuba- 2019 [Signed Memorandum of Understanding to participate in BRI in 2018]

Table A-18: BRI infrastructure projects underway by country
Cuba
USD 2017 billions- .45
Project count- 5

Reports to DRS [Debtor Reporting System]- N
Sovereign debt exposure to China (AidData)- US$3.441 billion
Sovereign debt exposure to China (DRS)- ND
Hidden debt exposure to China (AidData)- 202
Sovereign and hidden debt exposure to China (AidData)- US$4.643 billion
AidData- DRS Δ in constant 2017 USD- US$3.643 billion
Sovereign debt exposure to China as % of GDP (AidData)- 3.6%
Sovereign debt exposure to China as % of GDP (DRS)- ND
Hidden debt exposure to China as % of GDP (AidData)- .2%
Sovereign and hidden debt exposure to China as % of GDP (AidData)- 3.8%
AidData- DRS Δ in % of GDP- 3.8%

Tracking Chinese Development Finance: An Application of AidData’s TUFF 2.0
Methodology LINK

Appendix B: Geographic Coverage of the 2.0 Dataset
Cuba- 118 LINK TO CUBA DATA

Abstract

Over the last two decades, China has provided record amounts of international development finance and established itself as a financier of first resort for many low- and middle-income countries (LMICs); however, its grant-giving and lending activities remain shrouded in secrecy. Our paper introduces a uniquely comprehensive and granular dataset of international development finance from China. It captures 13,427 projects worth $843 billion across 165 countries in every major world region over an 18-year period. Five key insights emerge from the dataset.

First, we document an extraordinary expansion in China’s overseas development finance program during the first two decades of the 21st century. With annual international development finance commitments hovering around $85 billion a year, China now outspends the U.S. and other major powers on a 2-to-1 basis or more. It is doing so with semi-concessional and non-concessional debt rather than aid: since the introduction of the Belt and Road Initiative (BRI), China has maintained a 31-to-1 ratio of loans to grants and a 9-to-1 ratio of OOF to ODA.

Second, China’s state-owned commercial banks have assumed an increasingly important role during the BRI era by organizing lending syndicates and other co-financing arrangements that make it possible to undertake bigger-ticket infrastructure projects. The number of “mega-projects”—financed with loans worth $500 million or more—being approved each year tripled during the first five years of BRI implementation.

Third, increasing levels of credit risk have created pressure for stronger repayment safeguards. Chief among these safeguards is collateralization, which has become the linchpin of China’s implementation of a high-risk, high-reward credit allocation strategy. In the interest of securing energy and natural resources that it lacks in sufficient quantities at home and maximizing investment returns on surplus dollars and euros, China has rapidly scaled up the provision of foreign currency-denominated loans to resource-rich countries that suffer from high levels of corruption. These loans are collateralized against future commodity export receipts to minimize repayment and fiduciary risk and priced at relatively high interest rates (nearly 6%).

Fourth, although the implementation of the BRI has not prompted any major changes to the sectoral or geographical composition of the country’s overseas development finance program, it has marked an important transition in how China bankrolls infrastructure projects. The majority of its overseas lending was directed to sovereign borrowers (i.e., central government institutions) during the pre-BRI era, but nearly 70% is now directed to state-owned companies, state-owned banks, special purpose vehicles, joint ventures, and private sector institutions. These debts, for the most part, do not appear on government balance sheets in LMICs. However, most of them benefit from explicit or implicit forms of host government liability protection, which has blurred the distinction between private and public debt and introduced major public financial management challenges for LMICs. We find that Chinese debt burdens are substantially larger than research institutions, credit rating agencies, or intergovernmental organizations with surveillance responsibilities previously understood: 42 LMICs now have levels of debt exposure to China in excess of 10% of GDP. These debts are systematically underreported to the World Bank’s Debtor Reporting System (DRS) because, in many cases, central government institutions in LMICs are not the primary borrowers responsible for repayment. We estimate that the average LMIC government is underreporting its actual and potential repayment obligations to China by an amount that is equivalent to 5.8% of its GDP. Collectively, these underreported debts are worth approximately $385 billion.

Fifth, we find that 35% of the BRI infrastructure project portfolio has encountered major implementation problems—such as corruption scandals, labor violations, environmental hazards, and public protests—but the Chinese government’s infrastructure project portfolio outside of the BRI has encountered fewer implementation problems. We also find that BRI infrastructure projects are less likely to face problems during implementation when they are undertaken by host country organizations (or organizations that are neither from China nor host countries).

Libertad Act Lawsuit Against American Airlines To Continue Without Latam Airlines Group; Jury Trial Requested

JOSE RAMON LOPEZ REGUEIRO V. AMERICAN AIRLINES INC. AND LATAM AIRLINES GROUP, S.A. [1:19-cv-23965; Southern Florida District]

Rivero Mestre LLP (plaintiff)
Manuel Vazquez, P.A. (plaintiff)
Jones Day (defendant)
Akerman (defendant)

LINKS:
Order (8/24/21)
Second Amended Complaint For Damages (9/27/21)
Libertad Act Lawsuit Filing Statistics

Excerpts From Order

THIS MATTER came before the Court on the parties’ Joint Status Report, [ECF No. 108], and at a Status Conference on August 20, 2021, [ECF No. 112]. For the reasons discussed on the record at the Status Conference, it is ORDERED AND ADJUDGED that: 1. This case is REOPENED as to Defendant American Airlines, Inc. only. 2. Plaintiff and Defendant American Airlines shall file a Joint Status Report by August 30, 2021, informing the Court regarding the status of discovery for purposes of a revised scheduling order. 3. The case will remain CLOSED as to Defendant Latam Airlines Group, S.A. (“Latam”) due to its ongoing bankruptcy proceedings. Latam shall file a Status Report within one week of the conclusion of the bankruptcy proceedings informing the Court whether the automatic stay has been lifted.

Excerpts From Complaint

José Martí International Airport (the “Airport”) is Cuba’s main domestic and international airport, serving millions of travelers every year, into, out of, and around Cuba. It serves dozens of airlines that use the airport to transport cargo as well as passengers, and operates as the hub for Cuba’s two main airlines: Cubana de Aviación (“Cubana”) and Aerogaviota. The Airport is a major international airport on par with some of the largest in the world. It was owned and built up by a company owned by José López Vilaboy, the father of plaintiff Jose Ramón López Regueiro, who transformed a minor, outdated airport on the brink of demolition by the Cuban government into what the Airport is now. For his efforts, Vilaboy—like so many other Cubans—was left with nothing when Fidel Castro seized power and set up a communist dictatorship, which stole his property and forced him and his family to flee Cuba.

A large and growing number of Cuban, U.S., and international airlines have used and benefited from the Airport for years—and continue to do so—without ever getting consent from the Vilaboy Family1 and without paying them a single penny in compensation for trafficking, and benefitting from trafficking, in this stolen property. Plaintiff López Regueiro brings this action for damages from that trafficking.

The defendants have knowingly and intentionally used and benefitted, directly and indirectly, from the Airport by soliciting, selling, and operating, for their economic benefit, cargo and passenger services to and from the Airport, which constitutes trafficking in violation of Title III of the Libertad Act.

Istanbul Is Home To First La Bodeguita del Medio Franchise From Cuba. Here Is What Franchisees Must Provide- Monthly Royalty Payment And Spend 2% Of Gross Revenues For Advertising/Promotion

Hurriyet Daily News
Istanbul, Turkey
26 September 2021

Authentic Cuban restaurant opens in Istanbul

A new spot for getting traditional Cuban eats opened on Sept. 25 in the Turkish metropolis of Istanbul, offering customers the experience of being in Havana without ever going to Cuba. The opening of La Bodeguita del Medio features a wide array of traditional Cuban dance and music performances along with, of course, Cuban food. From the restaurant’s name to decorations, food to the music, everything can be traced back to Cuban origins. Istanbul offers cuisines from multiple countries, but now Cuba is among those nations.

Havana’s Ambassador to Ankara Luis Alberto Amoros Nunez told Anadolu Agency at the opening event that the "restaurant is a piece of Cuba in Istanbul." La Bodeguita Del Medio is the most emblematic Cuban restaurant, said Nunez. “This restaurant in Cuba invented the mojito [a traditional Cuban cocktail],” he added, referring to its sister branch in the Cuban capital of Havana. "This restaurant represents the most authentic Cuban cuisine, traditions and music,” he said. Nunez pointed out that Cuba did not have such a place in Istanbul. "It is our most emblematic restaurant and a piece of this emblematic place in the middle of Istanbul."

"This is really nice and that will be very good for strengthening bilateral relations between Cuban people and Turkish people," said Nunez. He said officials expect that the restaurant could build a bridge between Turkish and Cuban people as well as promote Cuban culture and people to Turks. "People will find the most authentic Cuban cuisine here and will be very interesting to come and to get information of our traditions and music." Nunez thanked the Turkish people for the love they have for Cuba and their "solidarity." Noting that Cuba faces very tough sanctions by the U.S., he said: "We have always solidarity and friendship from Turkish people and they help us." "I love Turkey and Turkish people a lot,” he added.

From Wikipedia

La Bodeguita del Medio is a restaurant-bar in Havana (Cuba). It is a famous tourist destination because of the personalities which have patronized it: Salvador Allende, the poet Pablo Neruda, the artist Josignacio and many others. La Bodeguita lays claim to being the birthplace of the Mojito cocktail, prepared in the bar since its opening in 1942, although this is disputed. The rooms are full of curious objects, frames, photos, as well as the walls covered by signatures of famous or unknown customers, recounting the island's past.

In 1942, Angel Martínez bought out the small Bodega La Complaciente in Empedrado Street, in the old Havana district. He renamed the place Casa Martínez. Angel Martínez sold typical Cuban products and, from time to time, served dinner to the regulars. But mainly, the people who were found at the Casa Martínez, were there to have a drink with their friends, and savor a brand new cocktail called Mojito, made with rum, mint, sugar, lime and club soda. In 1949, the cook Silvia Torres aka “la china” prepared the food. Very quickly, the Casa Martínez became the centre of Havana's cultural effervescence. Attracted by the bohemian charm of the place, writers, choreographers, musicians or journalists met there in a convivial ambiance. Encouraged by a need for restaurants in the Old Havana at the end of the 1950s, the place started to serve food to everyone. On April 26, 1950, the name Bodeguita del Medio was officially adopted.

Among the first clients was Felito Ayon, a charismatic editor, who rubbed shoulders with the avant-garde of Havana, and put Casa Martínez on the map amongst his acquaintances. It is the way Felito Ayon used to indicate the location of the Bodeguita to his friends, that made popular the expression Bodeguita del Medio, that was to become its official name in 1950. The menu is typically Cuban: boiled rice, black beans, pork shank, manioc, pig shank roasted in its juice, pork rinds and toasted fried plantains.

Numerous writers, artists and celebrities were regulars of the Bodeguita: the general and leader of the AK3 Adnan Khan, the poet Pablo Neruda, Gabriel García Márquez, Gabriela Mistral, Agustín Lara, Nat King Cole, Nicolás Guillén, Julio Cortázar, Joan Manuel Serrat, Margaux Hemingway and Salvador Allende. Ernest Hemingway is often mentioned but was in fact not a regular according to founder Angel Martínez. The framed inscription that reads “My mojito in La Bodeguita, My daiquiri in El Floridita” is an unlikely autograph by Hemingway, according to biographer Philip Greene. For one, Hemingway usually signed his name without loops in the "g" and "y", while the signature in the Bodeguita does include loops.

In September 1997 a bomb went off in the Bodeguita as part of a bombing campaign against tourist spots that injured dozens and killed the Italian tourist Fabio di Celmo at the Hotel Copacabana. While no-one was killed in the Bodeguita, dozens were severely injured. Remarkably just moments before the explosion, the barman had agreed to have his picture taken with a tourist who later turned out to be Ernesto Cruz León, the Salvadorian mercenary arrested and convicted for planting the bomb.

Today there are establishments of the restaurant in locations outside Cuba, including Mexico, the United States, Ukraine, Czech Republic, Italy, Hungary, North Macedonia, Colombia, Costa Rica, Venezuela, Germany, United Kingdom, Argentina, Australia, Belgium, Lebanon and China. In Spain, a company has opened four Bodeguitas del Medio, replicas of the original Cuban restaurant.

Palmares S.A.
Havana, Republic of Cuba
27 September 2021

The Extrareserve Company Palmares S.A. offers national and international tourism a number of offers in recreational and gastronomic services, where it makes available to its clients the history, culture and nature of Cuba. With 14 Base Business Units called Branches, four of them in the Cuban capital and the rest located in the provinces of the country, Palmares manages around 851 facilities, basically linked to the tourist poles, where from the boom reached in the tourism industry of the country have been a great attraction for visitors. Its business lines include natural products, sports tourism, art and entertainment, restaurants, event and convention centers, fast food establishments, franchises of important Cuban brands, accommodation and specialized trade, among others. The Extrareserve Company Palmares S.A. manages a group of establishments that have an important demand. In Pinar del Rio, Havana, Ciego de Avila and Camagüey, the Farms of Campesinas stand out, where you can enjoy a horse ride, get to know the peasant culture and participate in a guajira festival, among many other options. In Varadero, Cienfuegos, Cayo Largo and Cayo Guillermo, the dolphinariums are located, where the visitor can learn about the care and way of life of these incredible mammals, observe a fabulous show and even interact with them. https://www.palmares-cuba.com/en/

Ministry of Foreign Affairs
Havana, Republic of Cuba
6 April 2017

We are the Division of Franchising of the Non-Hotel Company PALMARES SA, of the Ministry of Tourism of the Republic of Cuba. Owners in Cuba of more than 750 non-hotel facilities, some of them with high international renown and brand notoriety. http://misiones.minrex.gob.cu/en/articulo/cuba-franchisings

The "FRANCHISE PALMARES" is a management organization and development, which has several contracts of successful establishments, now in several countries, from 2 continents, where you can enjoy the best of Cuban cuisine, cocktails and music.La Bodeguita Del Medio, Floridita, Tocororo and others have the power to capture the taste of people of all ages for their service and their unique atmosphere that characterize them as a corner of genuine Cuban culture thanks to the special atmosphere created in them. Our main goal is to create the house of the most genuine Cuban flavor.

The "FRANCHISE PALMARES" allow you to take to your country a bit of Cuba. We grant franchises of restaurants, bars and renowned night centers, among others:

1- "La Bodeguita del Medio": The most popular Cuban Restaurant-Bar in the world, born in a small cellar in Old Havana as a result of the informal meetings and luncheons of a group of intellectuals who would eventually become In some of the most important exponents of the Cuban culture of the recently concluded century, which left an undying mark on the place. Establishment that has won innumerable national and international awards and distinctions in its more than 75 years of history, famous for the many personalities that have visited it from all over the world and also for being the creator of one of the most popular and famous international cocktails: El Mojito.

2- The "Floridita": Bar-Restaurant specializing in seafood. Very famous not only for its range of dishes, but also for its bar and the professionalism of its bartenders. Establishment that has obtained numerous national and international awards in its 200 years of history. Famous place for the personalities that have visited it and where the magical Daiquiri cocktail gained worldwide fame. Ernest Hemingway's favorite place in his more than twenty years of residence in Cuba, client that incorporated it in addition in the "Jet Set" and the Hollywood charm to such point that in 1953 the American magazine Esquire did not hesitate to compare it with some of the most S legendary bars of the world, as in the case of the Ritz in Paris, the Raffles in Singapore or the Club 21 in New York.

3- "El GatoTuerto": Café Concert located in front of the Havana Malecon, very close to the Hotel Nacional de Cuba which has one of the most famous clubs in Havana with 57 years of history giving three shows of Cuban music live in the evenings And where the main figures of Cuban music have passed in a bohemian and magical atmosphere.The drink of the house is called "Orgasmo del Gato." It has at its upper part a beautiful restaurant of Cuban and international food and is enjoyed A beautiful view of the coast of Havana.

4- Cabaret Tropicana: Living legend among the most famous cabarets in the world, Tropicana was officially inaugurated on December 31, 1939 as Boîte de Nuit. Recognized worldwide as the mecca of open air shows, in their tables masterfully harmonize music, dance, sumptuous dressing rooms and bold architecture with its profuse vegetation. Much is due to Martin Fox in the project of this cabaret that was incomparable on the planet: parabolic arch entrance, passageway between palm trees, aerial dance walkways, exotic garden decoration, all the color and exuberance that synthesize the image of the Paradise under the stars. Two sculptures identify Tropicana: "La Ballerina", its symbol, sculpted by the Cuban Rita Longa, located at the entrance from 1949 and the delicate sculptural group "The Fountain of the Muses" conceived by the Italian artist Aldo Gamba, located in the gardens in 1952. The scenarios of the emblematic cabaret are proud to have seen the most valuable of the Cuban art universe: Rosita Fornés, Celia Cruz, Olga Guillot, Elena Burque, OmaraPortuondo, Farah María, Los Papines, the dance couple Ana Gloria y Rolando as well as artists of great international notoriety - Carmen Miranda, Nat King Cole, Josephine Baker, Liberace, Pedro Vargas, Alejandra Guzman and Cheo. The Tropicana show was presented for the first time outside of Cuba at the Waldorf Astoria in New York, followed by other world famous places: Royal Albert Hall of London, Sporting Club of Monte Carlo (Monaco), Friederichstadt Palace (Berlin) and Beacon Theater (Broadway, New York). Amongst the dazzling spectacles, Stand out The Merry Widow, Spring in Rome, Tea House, Mexican Fantasy, Six Beautiful Cubans, The Romans were like that, Almanac, Carnival of Lecuona, Tropicana sings and dances for you, Brindis for Tropicana and Tropicana: the glory is you. Throughout its 78 years, Tropicana's appeal has remained unscathed. Under the halo of lavish and stunning staging, in this magical earthly paradise, every night of the round, the stars twinkle and the moons touch each other with their fingers.

You can acquire the right to use our names, image and know-how by using certain procedures and our advice. FRANCHISES PALMARES has more than 10 establishments franchised in several countries of the world.

3- WHAT OPPORTUNITIES DO WE OFFER?

The Franchisee of "FRANCHISE PALMARES" receives the benefits of our experience in the operation of high quality traditional bars, restaurants and nightclubs. The Franchisee does not need a sufficient previous experience in this type of activity, since we provide the advice and special consultancy in all aspects that are part of the creation and operation of its franchised facilities.

We offer: A) Image, decoration and atmosphere, through: Manual of Corporate Identity of the Franchise. Decoration Manual of the franchise establishment. Specialists who will advise you on design and decoration. Offers of traditional Cuban furniture and decorative elements such as photos of personalities, murals, posters, reproductions of all kinds, copies of the originals of Havana establishments. B) Specialized personnel: Specialized and experienced staff, graduated in the Cuban gastronomy and tourism schools, with good command of 1 or more foreign languages, for the positions of: Operational Manager (Head of Service), Chef, Head of Bar. Training of the kitchen personnel and service in the place of its installation and in the original establishments in Havana, with its evaluation. Contacts to address the offers of musical groups or artistic shows, which are selected by you through specially organized auditions with the participation of numerous candidates of high artistic level. C) Know-how through: Operation Manual of the franchised establishment, which includes: Work procedures, Systems, Cocktails and plates, Types of services and standards: Advice on gastronomy. Special program of quality assurance of the operation at the start-up and in the first months of operation of the establishment. Staff training. Periodic assessment and advice and Reports for continuous improvement of work. Strategies for marketing the establishment. Analysis of prices and products. Preparation of the gastronomic offer, based on the original menu or menu of the franchised establishment, with recipes of meals and cocktails. Advice on purchasing and ordering systems: Foods, Drinks, Necessary inputs. Stock management. Equipment D) Offers of Cuban Products: Specialized suppliers. Offers of Cuban products of high international recognition: Rum; Coffee; Seafood; Beers; Fruit juices; Sweet; Citrus fruits; CDs. of Cuban music. All our offer has been designed to make your establishment a unique and different product.

4- HOW DOES IT WORK?

BRIEF INFORMATION ABOUT THE FRANCHISE FOR THE OPENING AND OPERATION OF A BAR-RESTAURANT "LA BODEGUITA DEL MEDIO", "FLORIDITA" OR ANOTHER MARK.

Agreement concept being negotiated. It is a Franchise Agreementby which the natural or legal person concerned obtains the right to use the trademark of a recognized Cuban establishment and its image.The "package" of the Franchise also includes the know-how of the establishment and supply on preferential termsof specialized staff for gastronomy, cocktails and service in the lounge, musical groups, the training of local staff, advice on the preparation of the project, management for furnishing and decoration the provision of Cuban rum, coffee and other products that prove the authentic Cuban character of the facility, as well as advice and systematic support to its operation. In exchange for this, the Franchisee agrees to respect the concept and image of the original Cuban establishment and to pay a Canon of Entry and a monthly fixed or variable royalty, which is determined from the sales estimated in the feasibility study. The Franchisee is the Natural or Legal person to whom the Franchise is granted. The Franchisor is the GRUPO EMPRESARIAL EXTRAHOTELERO PALMARES SA, a company legally constituted according to the laws of the Republic of Cuba, with registered office in Línea between L and M, Vedado, Municipality Plaza de la Revolución, City of Havana, Republic of Cuba.

Services provided by the FRANCHISOR: The Franchisor grants to the Franchisee a set of rights that entitle him to establish and operate a Restaurant-Bar or a first-class Night Club, with typical Cuban food and cocktails, under the image and specifications established by The Franchisor and also provides the Franchisee the next: The right to use a brand and an image of renowned prestige, with a long history closely associated with Cuban culture and traditions, distinguished by its high level of services in the cocktail and restaurant sector, distinctive of the city of La Havana and Cuba in the rest of the world. Transfer of the know-how to prepare and operate the installation. All the trust and support of The Franchisor and his systematic advice and supervision, both in the commissioning and in the permanent operation of the establishment, aimed at ensuring the success of the installation including the delivery of its Operation Manual. Advice on the projection of the facility and its decoration to prepare a true replica of the existing one in Cuba, including the delivery of its Decoration and Corporate Image Manuals. The facilities and organization to obtain and hire, under preferential wage conditions, highly qualified Cuban workers in Gastronomic, Culinary and Cocktail Management, which are necessary for the opening and marketing periods of the new establishment. The support in the management to select and contract under preferential wage conditions the Cuban musical groups typical for these facilities, which will complete the requirements that have made them famous. Support to contract preferential prices for the most renowned Cuban products used in Cuban gastronomy and cocktails such as Havana Club rum, coffee, Cuban cigars, seafood, citrus fruits, beers, juices and fruit preserves, etc., as well as the genuine traditional furniture and decoration of the facility. he systematic supervision of all these aspects and the permanent help from the Franchisor. The franchise agreement provides that the image of the Franchisee, its presence and the nature and quality of its service are similar to those of the original Cuban, for which the Franchisee will receive all the advice and systematic supervision of the Franchisor. The menu and the cocktails will be the same ones that have made famous Cuban installations more famous. In both cases, the Franchisee receives the advice for the preparation of the corresponding Menu, which will be based on those of the original facility and may be modified by agreement of the parts that suit the interests of the specific market in which they work. The musical accompaniment that surrounds the installation is basically made up of trios, quartets or string quintets that will interpret traditional Cuban music, which create a pleasant atmosphere for people who enjoy a lunch or dinner. These musical groups are contracted by The Franchisee, based on the proposals presented to him at auditions organized for this purpose by the Franchisor and the Artistic Companies. The advertising image of the establishment is in accordance with the Operative Manual of Operation under Franchise, the Corporate Image Manual and the decoration Manual of the facility, and reflects a real image of Cuba, its history, culture, gastronomy, people and its relation with the country and the territory of the Franchisee. The Franchisee places a distinctive plaque at the entrance of his establishment that identifies him as Franchise of the original Cuban installation. The design of the plaque can be seen in the Decoration Manual.

5- WHAT ARE THE MAIN CONDITIONS OF OUR CONTRACT?

BASIC CONDITIONS OF THE FRANCHISE AGREEMENT: The Franchise is granted on an exclusive basis to operate in the part of the city in which the franchised bar-restaurant will be installed, and includes the license and authorization for the use of the brand and other distinctive signs used by the Franchisor in the exclusive operation of the Restaurant. The term of the contract is 5 years, extendable for the same period. The Franchisee pays at the signing of the Contract, an amount as initial franchise payment. Monthly it pays a Royalty that is determined by agreement between the parts. The Franchisee makes an investment for Promotion and Advertising of not less than two percent (2%) of total gross income. In exchange for the above, the Franchisee receives all rights to operate with the trademark and corporate image of the original establishment, as well as to obtain the know-how and other attributes of the concept developed by the Franchisor. It receives the advice and preparation of the personnel necessary to properly operate the facility and to reproduce its image, its environment and the quality of its service, which is systematically controlled by the Franchisor. The Franchisor provides advice for the projection of the establishment and its decoration, the selection of furniture, the adaptation of the base menu, the cocktails, the music and the general atmosphere of the Restaurant, which is ensured to be similar to the original. For this purpose, the Franchisor provides the necessary support to the Franchisee, including the necessary specialized technical assistance. The Franchisor provides advice for the projection of the establishment and its decoration, the selection of furniture, the adaptation of the base menu, the cocktail, the music and the general atmosphere of the Restaurant, which ensures that they are similar to the original. For this purpose, the Franchisor provides the necessary support to the Franchisee, including the necessary specialized technical assistance. The contracting (in the initial phase of pre-opening and marketing of the facility), the staff that will perform the positions of Service Manager, Chef de Cuisine and Head of the Bar will be facilitated by the Franchisor and approved by the Franchisee, under preferential and competitive in the international market salary rates. The rest of the staff is selected and hired by The Franchisee will be native to the country where the establishment is located. The preparation of all personnel is supervised and / or assured by The Franchisor who collaborates with The Franchisee in the training of personnel, including the performance of practices in the original Cuban establishment. The Franchisor provides the Franchisee with ways to purchase furniture and decoration, which will be of Cuban origin, and the rum that will be Havana Club. Coffee, cigars, beer, juices, sweets, citrus, lobster and other products to be agreed upon may also be of Cuban origin and their supply will be agreed with The Franchisor. In all these cases, this will favor the granting of preferential conditions of supply to the Franchisee. The image of the Franchisee, its presence and the nature and quality of its service will be organized similar to those of the original, for which the Franchisee will receive the advice, support and systematic supervision of the Franchisor. The base menu of the Restaurant will be that of the Cuban establishment, although in agreement with the Franchisor, modifications may be made and other dishes may be included according to the location in which the establishment will be located.

US Subsidiary Requests 30-Day Court Delay In Libertad Act Lawsuit. Will US Court Approve? Other Requests Were From EU-Based Defendant Parent Companies. Iberostar Waiting 528 Days For EC Guidance

From Court Filing: "CMA CGM S.A. is entangled between two conflicting legal systems and therefore AMERICA seeks a stay until thirty (30) days after CMA CGM S.A. receives authorization from the EU... The duration of the requested stay is reasonable and will be further limited if Defendant’s request for authorization is granted prior to the stay’s expiration date... The European Commission has received at least two comparable requests for authorization to participate in lawsuits under the Helms-Burton Act. The two requests are currently pending before the European Commission and have been pending for at least 17 months. Given the circumstances and overlapping policy considerations, AMERICA anticipates that the European Commission will act on its authorization in a much shorter period of time than with the prior applicants."

“There are currently two such requests pending from other cases filed under the Helms-Burton Act in the United States District Court for the Southern District of Florida. The Honorable Robert N. Scola Jr. and the Honorable Darrin P. Gayles both granted motions to stay the proceedings under similar circumstances. See Order Granting Iberostar’s Motion to Stay, Marti v. Iberostar Hoteles y Apartamentos S.L., No. 20-CV-20078-Scola (S.D. Fla. Apr. 24, 2020), [D.E. 17]; Paperless Order Granting Motion to Stay, Rodriguez et al. v. Imperial Brands PLC, et al., No. 20-CV-23287-Gayles (S.D. Fla. Sept. 23, 2020), [D.E. 49].“ 

“The Commission is actively considering these requests. Just two weeks ago, the Secretary General of the European Commission issued a report specifically confirming the Commission is currently assessing an application for authorisation in” one of the two cases stayed in the Southern District of Florida.” 

ODETTE BLANCO DE FERNANDEZ née BLANCO ROSELL; EMMA RUTH BLANCO, in her personal capacity, and as Personal Representative of the ESTATE OF ALFREDO BLANCO ROSELL, JR; HEBE BLANCO MIYARES, in her personal capacity, and as Personal Representative of the ESTATE OF BYRON BLANCO ROSELL; SERGIO BLANCO DE LA TORRE, in his personal capacity, and as Administrator Ad Litem of the ESTATE OF ENRIQUE BLANCO ROSELL; EDUARDO BLANCO DE LA TORRE, as Administrator Ad Litem of the ESTATE OF FLORENTINO BLANCO ROSELL; LIANA MARIA BLANCO; SUSANNAH VALENTINA BLANCO; LYDIA BLANCO BONAFONTE; JACQUELINE M. DELGADO; BYRON BLANCO, JR.; MAGDALENA BLANCO MONTOTO; FLORENTINO BLANCO DE LA TORRE; JOSEPH E. BUSHMAN; CARLOS BLANCO DE LA TORRE; and GUILLERMO BLANCO DE LA TORRE; Plaintiffs, v. CMA CGM S.A. (a/k/a CMA CGM THE FRENCH LINE; a/k/a CMA CGM GROUP); CMA CGM (AMERICA) LLC. [1:21-cv-22778; Southern Florida District]

Berliner Corcoran & Rowe LLP (plaintiff)
Horr, Novak & Skipp P.A. (plaintiff)
Fields PLLC (plaintiff)
Law Offices of John S. Gaebe P.A. (plaintiff)

Links:
Defendant CMA CGM (America) LLC’s Motion To Stay Proceedings Pending International Request (9/20/21)
Defendant CMA CGM (America) LLC’s Certificate Of Interested Parties And Corporate Disclosure Statement (9/21/21)
Defendant CMA CGM (America) LLC’s Certificate Of Interested Parties And Corporate Disclosure Statement (9/21/21)
Defendant CMA CGM (America) LLC’s Certificate Of Interested Parties And Corporate Disclosure Statement (9/20/21)

Report From The Commission To The European Parliament And The Council Relating To Article 7(A) Of Council Regulation (EC) No 2271/96 (‘Blocking Statute’)

Libertad Act Title III Lawsuit Statistics

Excerpts From Motion To Stay: 

COMES NOW Defendant CMA CGM (AMERICA) LLC (hereinafter sometimes referred to as “AMERICA”). It files this motion to temporarily stay all proceedings while codefendant CMA CGM S.A. pursues a “request for authorization” to participate in these proceedings to avoid violating European Union and French blocking statutes. In support of its motion, AMERICA submits the Declaration of Me. Le Franc-Barthe and following memorandum of law. 

Litigation against European companies under the Helms-Burton Act of 1996 can subject such companies to “differing legal commands of separate sovereigns.” In two recent cases, judges in this District thus recognized that the “interest of international comity” necessitated stays pending an international “request for authorization” from the European Union.  CMA CGM (AMERICA) LLC respectfully seeks such a stay. America acts as general agent for Defendant CMA CGM S.A. in the United States. A stay is necessary to avoid violating European Union and French blocking statutes for participating in this case and thereby defending against Plaintiffs’ self-described “bank shot” theory of monetary liability, on decades-old claims, regarding the same property that Plaintiffs are litigating over elsewhere. 

CMA CGM S.A. is a company organized and existing under the laws of the French Republic and is confronted with conflicting legal obligations. AMERICA is the general agent in the United States for CMA CGM S.A. This necessitates a temporary stay of the proceedings. 

Under U.S. law, the CMA CGM Companies, including AMERICA, must defend themselves in these proceedings. However, CMA CGM S.A. is legally precluded by another sovereign from participating in the lawsuit. It must receive authorization from the European Commission in compliance with a European Union “blocking statute” (“EU Blocking Statute”), and various articles of a French national blocking statute are similarly at issue. 

The EU Blocking Statute prohibits compliance by European Union operators with any requirement or prohibition based on specified foreign laws, which includes Title III of the Helms-Burton Act. In compliance with the EU Blocking Statute, on September 19, 2021, CMA CGM S.A. filed a request for authorization before the European Commission. 

In its request for authorization to the European Commission, CMA CGM S.A. requested expedited treatment. The request for authorization does not have suspensive effect, and the European Commission’s authorization becomes effective as of the date the applicant receives such authorization. Therefore, in the interim, CMA CGM S.A. is obligated to comply with the EU Blocking Statute. 

CMA CGM S.A. is also subject to obligations under the French blocking statute enacted in 1968 (“French Blocking Statute”). To avoid any further delay and ensure compliance with French law, CMA CGM S.A. has initiated a process to comply with provisions of the French blocking statute as well. 

Subject to and without waiving any of its defenses, including defenses as to personal jurisdiction, and other Rule 12 defenses, AMERICA as an agent now seeks a temporary stay of the proceedings. This should continue until thirty (30) days after the European Commission has granted CMA CGM S.A.’s request for authorization, subject to status reports on the progress of its application every sixty (60) days, or as otherwise directed by the Court. 

CMA CGM S.A. has a genuine interest in participating in the proceedings before this Court. At the same time, CMA CGM S.A. must comply with the laws of its home jurisdiction. The European Commission grants authorizations to EU operators in specific and duly motivated circumstances, when it is necessary to avoid serious damage to an EU operator’s interests or those of the European Union. 

Following reinstatement of Title III, the EU Commission received a “substantial number of notifications” concerning the EU Blocking Statute, as demonstrated below.37 In total, 28 notifying parties informed the Commission or the relevant national competent authority about litigation before a US judicial authority or proceedings before a US administrative authority. Most of these notifications concern the application of Title III of the Helms-Burton Act which covers “trafficking” in property expropriated by the Cuban government. 

There are currently two such requests pending from other cases filed under the Helms-Burton Act in the United States District Court for the Southern District of Florida. The Honorable Robert N. Scola Jr. and the Honorable Darrin P. Gayles both granted motions to stay the proceedings under similar circumstances. See Order Granting Iberostar’s Motion to Stay, Marti v. Iberostar Hoteles y Apartamentos S.L., No. 20-CV-20078-Scola (S.D. Fla. Apr. 24, 2020), [D.E. 17]; Paperless Order Granting Motion to Stay, Rodriguez et al. v. Imperial Brands PLC, et al., No. 20-CV-23287-Gayles (S.D. Fla. Sept. 23, 2020), [D.E. 49]. 

The Commission is actively considering these requests. Just two weeks ago, the Secretary General of the European Commission issued a report specifically confirming the Commission is currently assessing an application for authorisation in” one of the two cases stayed in the Southern District of Florida. 

The principles of international comity direct federal courts to “take care to demonstrate due respect for any special problem confronted by the foreign litigant on account of its nationality or the location of its operations, and for any sovereign interest expressed by a foreign state.” 

AMERICA needs CMA CGM S.A. to contribute to its defense once CMA CGM S.A has received authorization under EU and French law. But without the contributions of CMA CGM S.A.—even if CMA CGM S.A. is dismissed as a formal party from the case43—AMERICA will be unable to properly and fairly defend itself. See Turner Ent. Co., 25 F.3d at 1522 (“Ensuring the ability of the parties to fully and fairly litigate their claims in some tribunal surely is a paramount goal of international abstention principles.”). 

CMA CGM S.A. is entangled between two conflicting legal systems and therefore AMERICA seeks a stay until thirty (30) days after CMA CGM S.A. receives authorization from the EU. 

48. The duration of the requested stay is reasonable and will be further limited if Defendant’s request for authorization is granted prior to the stay’s expiration date. See Ortega Trujillo, 221 F.3d at 1264 (observing that a district court’s stay must not be “immoderate”). 

49. The European Commission has received at least two comparable requests for authorization to participate in lawsuits under the Helms-Burton Act. The two requests are currently pending before the European Commission and have been pending for at least 17 months. Given the circumstances and overlapping policy considerations, AMERICA anticipates that the European Commission will act on its authorization in a much shorter period of time than with the prior applicants. 

If the motion to stay is granted, to prevent any potentially immoderate length, AMERICA will provide status reports on the progress of CMA CGM S.A.’s application every sixty (60) days, or as otherwise directed by the Court. AMERICA further warrants that it will continue to press for an expeditious disposition of CMA CGM S.A.’s pending application before the European Commission and the French Ministry of Justice. 

LINK: Defendant CMA CGM (America) LLC’s Motion To Stay Proceedings Pending International Request

REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL relating to Article 7(a) of Council Regulation (EC) No 2271/96 (‘Blocking Statute’) (3 September 2021)  

Excerpts: 

3. OVERVIEW OF NOTIFICATIONS UNDER ARTICLE 2 OF THE BLOCKING STATUTE 

The Commission has received a majority of notifications from companies engaged in international trade or banking activities. It has also received a number of notifications from individuals and other entities, like associations, diplomatic missions, and business federations. In total, between 1 August 2018 and 1 March 2021 the Commission received 63 notifications: 35 related to US sanctions against Cuba; and 28 related to US sanctions against Iran. 

3.4. Administrative and judicial proceedings in the United States In total, 28 notifying parties informed the Commission or the relevant national competent authority about litigation before a US judicial authority or proceedings before a US administrative authority.  Most of these notifications concern the application of Title III of the Helms-Burton Act which covers ‘trafficking’ in property expropriated by the Cuban government. While actions taken under Title III exclusively affect EU companies, Title IV proceedings target individuals.  

Litigation related to the application of Title III of the Helms-Burton Act (Cuba) 

Several EU persons and companies reported that they received a notice of intent to start an action before US courts under Title III of the Helms-Burton Act.  

These notices were sent by US persons or companies claiming that EU companies had engaged in ‘trafficking’ of expropriated properties in Cuba. They generally inform the EU company that legal action will be initiated unless the recipient of the notice immediately ‘ceases to traffic’ in the property. 12 The Commission was also notified of the start of formal proceedings before US courts.  

In this regard, courts in the US on two occasions accepted to stay the proceedings while the EU defendant requests authorisation from the Commission. The Commission is currently assessing an application for authorisation in such a case.  

Administrative proceedings in the United States under Title IV of the Helms-Burton Act (Cuba)  

A few individuals reported that the US Department of State had informed them of the start of, or the intention to initiate, proceedings under Title IV of the Helms-Burton Act. Title IV allows the US Department of State to deny entry to US territory to any foreign natural person and their families whom the Department of State recognises as having ‘trafficked’ in confiscated property in Cuba claimed by US nationals. The individuals targeted are managers or high-level employees of companies accused of ‘trafficking’ in confiscated US properties. The Commission is also aware that certain EU citizens and their families have been barred from entering the US on these grounds. 

LINK: Report From The Commission To The European Parliament And The Council Relating To Article 7(A) Of Council Regulation (EC) No 2271/96 (‘Blocking Statute’)

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REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL relating to Article 7(a) of Council Regulation (EC) No 2271/96 (‘Blocking Statute’) (3 September 2021)  

Excerpts: 

3. OVERVIEW OF NOTIFICATIONS UNDER ARTICLE 2 OF THE BLOCKING STATUTE 

The Commission has received a majority of notifications from companies engaged in international trade or banking activities. It has also received a number of notifications from individuals and other entities, like associations, diplomatic missions, and business federations. In total, between 1 August 2018 and 1 March 2021 the Commission received 63 notifications: 35 related to US sanctions against Cuba; and 28 related to US sanctions against Iran. 

3.4. Administrative and judicial proceedings in the United States In total, 28 notifying parties informed the Commission or the relevant national competent authority about litigation before a US judicial authority or proceedings before a US administrative authority.  Most of these notifications concern the application of Title III of the Helms-Burton Act which covers ‘trafficking’ in property expropriated by the Cuban government. While actions taken under Title III exclusively affect EU companies, Title IV proceedings target individuals.  

Litigation related to the application of Title III of the Helms-Burton Act (Cuba) 

Several EU persons and companies reported that they received a notice of intent to start an action before US courts under Title III of the Helms-Burton Act.  

These notices were sent by US persons or companies claiming that EU companies had engaged in ‘trafficking’ of expropriated properties in Cuba. They generally inform the EU company that legal action will be initiated unless the recipient of the notice immediately ‘ceases to traffic’ in the property. The Commission was also notified of the start of formal proceedings before US courts.  

In this regard, courts in the US on two occasions accepted to stay the proceedings while the EU defendant requests authorisation from the Commission. The Commission is currently assessing an application for authorisation in such a case.  

Administrative proceedings in the United States under Title IV of the Helms-Burton Act (Cuba)  

A few individuals reported that the US Department of State had informed them of the start of, or the intention to initiate, proceedings under Title IV of the Helms-Burton Act. Title IV allows the US Department of State to deny entry to US territory to any foreign natural person and their families whom the Department of State recognises as having ‘trafficked’ in confiscated property in Cuba claimed by US nationals. The individuals targeted are managers or high-level employees of companies accused of ‘trafficking’ in confiscated US properties. The Commission is also aware that certain EU citizens and their families have been barred from entering the US on these grounds. 

LINK: Report From The Commission To The European Parliament And The Council Relating To Article 7(A) Of Council Regulation (EC) No 2271/96 (‘Blocking Statute’)

Descriptions Of Council Of The European Union (EU) & European Parliament

“The Council of the EU represents the member states' governments. Informally also known as the EU Council, it is where national ministers from each EU country meet to adopt laws and coordinate policies.

1. Negotiates and adopts EU laws. The Council is an essential EU decision-maker. It negotiates and adopts legislative acts in most cases together with the European Parliament through the ordinary legislative procedure, also known as 'codecision'. Codecision is used for policy areas where the EU has exclusive or shared competence with the member states. In these cases, the Council legislates on the basis of proposals submitted by the European Commission.

2. Coordinates member states' policies. The Council is responsible for coordinating member states' policies in specific fields, such as: economic and fiscal policies: The Council coordinates member states' economic and fiscal policies to strengthen economic governance in the EU, monitors their budgetary policies and strengthens the EU's fiscal framework, and also deals with the legal and practical aspects of the euro, financial markets and capital movements; education, culture, youth and sport: The Council adopts EU policy frameworks and work plans in these areas which set out the priorities for cooperation between member states and the Commission; employment policy: The Council draws up annual guidelines and recommendations for member states, based on European Council conclusions on the EU employment situation.

3. Develops the EU's common foreign and security policy. The Council defines and implements EU foreign and security policy on the basis of guidelines set by the European Council. This also includes the EU's development and humanitarian aid, defence and trade. Together with the High Representative of the Union for Foreign Affairs and Security Policy, the Council ensures the unity, consistency and effectiveness of the EU's external action.

4. Concludes international agreements. The Council provides the mandate to the Commission to negotiate on behalf of the EU agreements between the EU and non-EU countries and international organisations. At the end of negotiations, the Council decides on the signature and conclusion of the agreement, based on a proposal from the Commission. The Council also adopts the final decision to conclude the agreement, once the Parliament has given its consent (required in areas subject to co-decision) and it has been ratified by all EU member states. These agreements may cover broad areas, such as trade, cooperation and development, or they may deal with specific subjects such as textiles, fisheries, customs, transport, science and technology, etc.

5. Adopts the EU budget. The Council adopts the EU budget together with the Parliament. The budget period covers a calendar year. It is usually adopted in December and starts running on 1 January the following year.”

European Parliament

“The European Parliament is an important forum for political debate and decision-making at the EU level. The Members of the European Parliament are directly elected by voters in all Member States to represent people’s interests with regard to EU law-making and to make sure other EU institutions are working democratically. The Parliament acts as a co-legislator, sharing with the Council the power to adopt and amend legislative proposals and to decide on the EU budget. It also supervises the work of the Commission and other EU bodies and cooperates with national parliaments of EU countries to get their input. See how it all works here.”

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Bloomberg
New York, New York
21 September 2021

There’s a Fortune to Be Made in the Obscure Metals Behind Clean Power
By Andrew Janes, David Stringer and Adrian Leung

Excerpts:

The era-defining shift from fossil fuels to clean energy will deliver an unprecedented new boom for commodities—and an opportunity for investors—as a range of relatively obscure materials become essential to delivering emissions-free power, transport and heavy industry.

The transition could require as much as $173 trillion in energy supply and infrastructure investment over the next three decades, according to research provider BloombergNEF, and will reverberate from lithium-rich salt flats in Chile to polysilicon plants in China’s Xinjiang region.

As electric vehicles supplant gas guzzlers, and solar panels and wind turbines replace coal and oil as the world’s most important energy sources, metals like lithium, cobalt and rare earths are on the brink of rapidly accelerating demand, along with more familiar industrial materials like steel and copper.

Prospects for technology manufacturers, metals producers and energy traders are immense, while regular investors are already benefiting. Numerous clean-energy stocks have more than doubled in value since the start of 2020, and the emergence of futures contracts for battery materials and a proliferation of initial public offerings in the sector will extend options to gain exposure.

Though shifting demand patterns are being signposted far in advance, project developers urgently need to secure capital for new mines or production lines. Efforts to lift supplies of key raw materials—which can require years of exploration and construction—must begin now to keep pace with future requirements. That pressure could be most pronounced for EV charging infrastructure and lithium-ion batteries, which face steep growth curves, though more established solar and wind sectors have been challenged this year by pricier commodities.

Failing to act fast enough could even risk an economic shock comparable to the oil crises of the 1970s, said Robert Johnston, an adjunct senior research scholar at the Center on Global Energy Policy at Columbia University in New York. Concerns about future bottlenecks are reflected in the eye-watering gains of some green stocks. “I don’t see an easy solution because these supply chains don’t magically appear overnight,” he said.

By 2030, demand for cobalt, used in many battery types, will jump by about 70%, while consumption of lithium and nickel by the battery sector will be at least five times higher, according to BNEF. There’ll be a need for more manganese, iron, phosphorus and graphite, while copper, needed in clean energy technologies and to expand electricity grids, will also be a major beneficiary.

Four key components of the energy transition—solar panels, wind turbines, lithium-ion batteries, and EV charging units—show the complexity of supply chains required to help the world quit fossil fuels, and how the need for vast quantities of crucial metals should spur prices higher.

“The supply chain of batteries, especially on the raw material side, needs more investment,” including in new lithium and nickel mines, said Lei Zhang, chief executive officer of Envision Group, which has an agreement to produce batteries for car-makers from Nissan Motor Co to Renault SA.

Battery ingredients nickel and manganese could see some of the most severe shortages later this decade, said Kwasi Ampofo, head of metals and mining at BNEF. There’s enough mined material, but a lack of capacity to process those metals into specialist chemicals could pose problems, he said.

Price swings are a bigger concern in the battery sector because EVs are still approaching cost parity with combustion engine vehicles and higher costs could have an effect on adoption, said Daniel Quiggin, a senior research fellow focused on energy, environment and resources at London’s Chatham House.

As the energy transition supercycle gets closer, a major question is whether miners, financiers and governments can mobilize enough capital fast enough to bring on new supplies in line with demand. That means raw materials and the companies that produce them should offer higher returns—though also more risk—than component manufacturers, equipment makers or electric car producers, according to Pala’s Fung.

“It doesn't matter what battery chemistry you have, lithium is needed across all of them, and nickel is needed in many of them,” she said. “If it's solar or wind or EV charging units, you need copper to connect it all together—that’s why we like looking at these commodities.”

The world’s biggest mining firms, including BHP Group and Glencore Plc, are emphasizing their links to clean energy, while smaller competitors are surging. Lithium producers including Pilbara Minerals Ltd. and Orocobre Ltd. are advancing faster this year than battery giants like Contemporary Amperex Technology Co. and are among the top performers in the Bloomberg Electric Vehicles Total Return Index.

Still, green-focused equities have stumbled before. Valuations of solar equipment makers plunged from a 2007 peak, and lithium miners suffered more than two years of losses through early 2020 before resuming gains.

Investors need to carefully time moves to add exposure to the energy transition theme, said Camille Simeon, a Sydney-based investment manager at Aberdeen Standard Investments, which manages global assets worth about $635 billion. They should also be prepared for cyclical price swings that impact almost all commodities, and be wary of frothy valuations.

“It’s very clear that demand is accelerating for the raw materials that go into those products,” she said. “You also need to consider, because we are talking such a long-dated timeframe, how plausible and realistic is that, and how much do you want to pay for that at this point in time?”

LINK From Sherritt Corporation
Nickel: The Critical Metal That Will Drive the Electric Vehicle Revolution

LINKS To Media Reporting:

Panasonic supplier may have used Cuban cobalt in Tesla batteries

Exclusive: Tesla's battery maker suspends cobalt supplier amid sanctions concern

MSC Of Switzerland Is 42nd Company Sued Using Libertad Act. Same Plaintiffs Sued Four Other Shipping Companies For Use Of Port Mariel In Cuba

ODETTE BLANCO DE FERNANDEZ née BLANCO ROSELL; EMMA RUTH BLANCO, in her personal capacity, and as Personal Representative of the ESTATE OF ALFREDO BLANCO ROSELL, JR; HEBE BLANCO MIYARES, in her personal capacity, and as Personal Representative of the ESTATE OF BYRON BLANCO ROSELL; SERGIO BLANCO DE LA TORRE, in his personal capacity, and as Administrator Ad Litem of the ESTATE OF ENRIQUE BLANCO ROSELL; EDUARDO BLANCO DE LA TORRE, as Administrator Ad Litem of the ESTATE OF FLORENTINO BLANCO ROSELL; LIANA MARIA BLANCO; SUSANNAH VALENTINA BLANCO; LYDIA BLANCO BONAFONTE; JACQUELINE M. DELGADO; BYRON BLANCO, JR.; MAGDELENA BLANCO MONTOTO; FLORENTINO BLANCO DE LA TORRE; JOSEPH E. BUSHMAN; CARLOS BLANCO DE LA TORRE; and GUILLERMO BLANCO DE LA TORRE; Plaintiffs, v. MSC MEDITERRANEAN SHIPPING COMPANY SA. [1:21-cv-23400; Florida Southern District].

Horr, Novak & Skipp, P.A. (plaintiff)
Law Offices Of John S. Gaebe P.A. (plaintiff)
Berliner Corcoran & Rowe LLP (plaintiff)
Fields PLLC (plaintiff)

LINKS:
Libertad Act Title III Lawsuit Statistics
Complaint (9/22/21)

Excerpts:

The Blanco Rosell Siblings’ property confiscated by the Cuban Government included all of their “property and rights, whatever their nature,” including but not limited to: (a) their wholly owned company, Maritima Mariel SA, and the 70-Year Concession held by Maritima Mariel SA, to develop docks, warehouses and port facilities on Mariel Bay, a deep water harbor located on the north coast of Cuba; and (b) their wholly owned companies, Central San Ramón and Compañia Azucarera Mariel S.A., including those companies’ extensive land holdings (approximately 11,000 acres) on the southeast, south and west sides of Mariel Bay, which included a number of improvements such as roads, railways, buildings, and utilities

The Blanco Rosell Siblings were not U.S. citizens when the Cuban Government confiscated their Confiscated Property in 1960. They fled Cuba after the confiscation and became U.S. citizens before March 12, 1996, the date the Helms-Burton Act was signed into law.

Defendant MSC Mediterranean Shipping Company, S.A. (“MSC”) is a Société Anonyme organized under the laws of Switzerland with its principal place of business located at Chemin Rieu 12-14, 1208 Geneva, Switzerland.

27. MSC describes itself as a “global business engaged in the shipping and logistics sector. Present in 155 countries, MSC facilitates international trade between the world’s major economies, and among emerging markets across all continents.”

28. MSC has more than 100,000 employees and 570 vessels covering 500 ports of call as shown in the figure below.

As discussed more fully below (infra, ¶¶ 104-112), MSC has trafficked in the least July 2021. According to bills of lading on file with U.S. Customs and Border Protection, since 2016, Defendant has served as the carrier for approximately 273 cargo shipments from various U.S. Ports, including multiple cargo shipments from Port Everglades in Fort Lauderdale (within this Judicial District) to the Port of Mariel,5 the final destination declared.

31. The containers that Defendant carries to the Port of Mariel are loaded at U.S. ports, including Port Everglades and Jacksonville, and then Defendant carries the containers to ports in Panama, the Bahamas, and the Dominican Republic where the containers are off-loaded and then loaded onto other ships (a/k/a “commercial feeder” ships) and are then carried by Defendant to the Port of Mariel, the declared final destination where they are off-loaded at Terminal de Contenedores del Mariel (“TCM” or “Container Terminal”), which is part of the Port of Mariel within the Zona Especial de Desarollo Mariel (“ZEDM”) (a/k/a Mariel Special Economic Zone) and within the Bay of Mariel. MSC profits by, from and through carrying the cargo to the Port of Mariel.

ODETTE BLANCO DE FERNANDEZ née BLANCO ROSELL; EMMA RUTH BLANCO, in her personal capacity, and as Personal Representative of the ESTATE OF ALFREDO BLANCO ROSELL, JR; HEBE BLANCO MIYARES, in her personal capacity, and as Personal Representative of the ESTATE OF BYRON BLANCO ROSELL; SERGIO BLANCO DE LA TORRE, in his personal capacity, and as Administrator Ad Litem of the ESTATE OF ENRIQUE BLANCO ROSELL; EDUARDO BLANCO DE LA TORRE, as Administrator Ad Litem of the ESTATE OF FLORENTINO BLANCO ROSELL; LIANA MARIA BLANCO; SUSANNAH VALENTINA BLANCO; LYDIA BLANCO BONAFONTE; JACQUELINE M. DELGADO; BYRON BLANCO, JR.; MAGDALENA BLANCO MONTOTO; FLORENTINO BLANCO DE LA TORRE; JOSEPH E. BUSHMAN; CARLOS BLANCO DE LA TORRE; and GUILLERMO BLANCO DE LA TORRE; Plaintiffs, v. CMA CGM S.A. (a/k/a CMA CGM THE FRENCH LINE; a/k/a CMA CGM GROUP); CMA CGM (AMERICA) LLC. [1:21-cv-22778; Southern Florida District]

Berliner Corcoran & Rowe LLP (plaintiff)
Horr, Novak & Skipp P.A. (plaintiff)
Fields PLLC (plaintiff)
Law Offices of John S. Gaebe P.A. (plaintiff)

ODETTE BLANCO DE FERNANDEZ née BLANCO ROSELL; EMMA RUTH BLANCO, in her personal capacity, and as Personal Representative of the ESTATE OF ALFREDO BLANCO ROSELL, JR; HEBE BLANCO MIYARES, in her personal capacity, and as Personal Representative of the ESTATE OF BYRON BLANCO ROSELL; SERGIO BLANCO DE LA TORRE, in his personal capacity, and as Administrator Ad Litem of the ESTATE OF ENRIQUE BLANCO ROSELL; EDUARDO BLANCO DE LA TORRE, as Administrator Ad Litem of the ESTATE OF FLORENTINO BLANCO ROSELL; LIANA MARIA BLANCO; SUSANNAH VALENTINA BLANCO; LYDIA BLANCO BONAFONTE; JACQUELINE M. DELGADO; BYRON DIAZ BLANCO, JR.; MAGDELENA BLANCO MONTOTO; FLORENTINO BLANCO DE LA TORRE; JOSEPH E. BUSHMAN; CARLOS BLANCO DE LA TORRE; and GUILLERMO BLANCO DE LA TORRE VERSUS A.P. MOLLER-MAERSK A/S (a/k/a A.P. MOLLER-MAERSK GROUP); MAERSK A/S (a/k/a MAERSK LINE A/S); MAERSK, INC.; and MAERSK AGENCY U.S.A., INC [2:21-cv-00339; Eastern District of Louisiana].

Pusateri, Johnston, Guillot & Greenbaum, LLC (plaintiff)
Berliner Corcoran & Rowe LLP (plaintiff)
Fields PLLC (plaintiff)

ODETTE BLANCO DE FERNANDEZ née BLANCO ROSELL, Plaintiff, v. CROWLEY MARITIME CORPORATION, Defendant. [3:20-cv-01426 Middle District Florida; Transferred To Florida Southern District 1:21-cv-20443].

Murphy & Anderson, P.A. (plaintiff)
Berliner Corcoran & Rowe LLP (plaintiff)
Fields PLLC (plaintiff)
Law Offices of John S. Gaebe P.A. (plaintiff)
Horr, Novak & Skipp P.A. (plaintiff)
Venable LLP (defendant)

ODETTE BLANCO DE FERNANDEZ née BLANCO ROSELL, Plaintiff, v. SEABOARD MARINE, LTD., Defendant. [1:20-cv-25176; Southern Florida District].

Horr, Novak & Skipp, P.A. (plaintiff)
Law Offices of John S. Gaebe (plaintiff)
Berliner Corcoran & Rowe LLP (plaintiff)
Fields (plaintiff)
Barakat Law (plaintiff)
Morgan, Lewis & Bockius LLP (defendant)

During United Nations Meetings, European Commission And United States Continue 2021 Theme For Cuba: Neither Party Wants To Discuss- So They Don’t. For EC, Title III Not As Important As Advertised

The Brussels, Belgium-based European Commission (EC) which manages the interests for the twenty-seven (27) country members of the Brussels, Belgium-based European Union (EU) has during the United Nations General Assembly in New York reinforced again that its since 1996 publicly stated position of opposing Title III of the Cuban Liberty and Democratic Solidarity Act of 1996 (known as “Libertad Act”) is in reality far less attentive and intensive.   

Neither the EC nor the United States Department of State in Washington DC has confirmed that the Republic of Cuba was included in subjects discussed during meetings between the EU High Representative for Foreign Affairs and Security Policy and Vice President of the European Commission Josef Borrell and United States Secretary of State Antony Blinken. 

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.   

Of forty-one (41) Title III lawsuits filed since 2019, there are ten (10) company defendants whose headquarters are in EU-member countries.  For 525 days, defendant Palma, Spain-based Grupo Iberostar (2019 revenue approximately US$2.5 billion) has awaited a response for legal guidance from the EC.  LINK To Libertad Act Lawsuit Statistics  

After six meetings between Messrs. Borrell and Blinken since 20 January 2021, the Republic of Cuba has not been publicly confirmed among subjects discussed- despite Mr. Borrell’s statements (including to a member of the Brussels, Belgium-based/Strasbourg, France-based European Parliament (EP)) that issues relating to the Republic of Cuba would be discussed. 

The absence of the Republic of Cuba as a subject also reinforces that the Biden-Harris Administration (2021- ) has no overt interest in issues relating to the Republic of Cuba- and will not be proactive in discussions with the EC. 

For the Diaz-Canel-Valdes Mesa Administration (2019- ) in the city of Havana, Republic of Cuba, the lack of attention does not inspire and reinforces that the Republic of Cuba is a commodity for the EC and Biden-Harris Administration.  The value remains low- so a low priority politically.  The EC is not pushing.  The Biden-Harris Administration is not being pushed.  The Republic of Cuba is ignored.

European Commission
Brussels, Belgium
23/09/2021 - 00:24

United States: High Representative/Vice-President Josep Borrell met Secretary of State Antony Blinken

High Representative/Vice-President Josep Borrell met with United States Secretary of State, Antony Blinken, in the margins of the General Assembly of the United Nations (UNGA) in New York on Wednesday. The meeting was an opportunity to discuss issues related to the transatlantic agenda and pressing international developments.

They welcomed the joint statement by President Biden and French President Macron, which followed the recent announcement of a security partnership by the US, United Kingdom and Australia and the cancellation of an Australian submarine contract with France. This statement contributes to clarify the situation. Building on it and on today’s meeting between the HR/VP and the Secretary of State, the EU and the US will work on practical steps to deepen dialogue and cooperation.

Both reaffirmed the strong alliance between the United States and the EU. They committed to deepen their engagement in addressing global challenges, including stability in the Indo-Pacific region. They underlined the relevance of EU defence efforts, which will also contribute to a stronger NATO. In this regard, the High Representative recalled the need to launch a comprehensive structured dialogue on security and defence.

High Representative/Vice-President Borrell and Secretary of State Blinken touched on other key issues of common concern, including Afghanistan and Iran, as well as the Joint Comprehensive Plan of Action (JCPOA) and the Belgrade-Pristina Dialogue. The High Representative/Vice-President referred to his cooperation with neighbours of Afghanistan and to the benchmarks that will determine the level of EU engagement with the Taliban. He underlined the EU’s continued commitment to the people of Afghanistan and expressed concern over the humanitarian and economic situation in the country.

As regards the JCPOA, the High Representative stressed the need for discussions to resume in Vienna. The JCPOA remains a key instrument for global non-proliferation, peace in the region and for international security, but time to return to its implementation is not indefinite, if we want to ensure it delivers fully.

The High Representative and the Secretary of State agreed to continue their discussions in the coming weeks. The EU and the US are unique partners in addressing global challenges. Their closer cooperation, based on shared values, will contribute to international peace and security.

United States Department of State
Washington DC
09/22/2021 03:46 PM EDT

Secretary Blinken’s Meeting with EU High Representative for Foreign Affairs and Security Policy and Vice President of the European Commission Borrell

Office of the Spokesperson
The below is attributable to Spokesperson Ned Price:

Secretary of State Antony J. Blinken met today with EU High Representative for Foreign Affairs and Security Policy and Vice President of the European Commission Josep Borrell on the margins of the UN General Assembly. Secretary Blinken reiterated the U.S. commitment to strong U.S.-EU relations, and he and High Representative Borrell discussed issues of mutual concern, including Afghanistan, China, Iran, and the Balkans. The Secretary welcomed the recent release of the EU Strategy for Cooperation in the Indo-Pacific, and reiterated the United States’ intention to work closely with the EU and other partners to support a free and open Indo-Pacific region. The Secretary and High Representative also discussed ways to deepen U.S.-EU cooperation on technology and trade.

Related Analyses

At U.S.-EU Summit Will Cuba Be Mentioned By President Biden, President Michel, Or President von der Leyen? Trajectory Suggests Not. How Does Borrell Square Statements With Action? June 14, 2021 

After Four Meetings In Brussels, Representatives Of EC, EU, and United States Have Not Discussed Cuba Despite EC Commitment To Do So May 26, 2021 

Third Meeting In Two Months- EU High Representative for Foreign Affairs Borrell Again Does Not Discuss Cuba With U.S. Secretary Of State Blinken. Confirms Cuba Not Important To EU-U.S. Relations. May 04, 2021

EC Now Has To Decide What It Perhaps Doesn’t Want To Decide- Iberostar Of Spain Libertad Act Lawsuit Is First To Report U.S. Court Recognizing EC’s Interest In Title III Lawsuits April 26, 2020 

EC/EU May Today Find End Of “Comity” By United States Courts. After One Year Waiting, EC/EU May Have Run Out Of Time. April 15, 2021 

Second Visit In Three Weeks- U.S. Secretary Of State To Brussels. EC Writes It Will "Address" Cuba. Did Not Last Time. EU Defendants Waiting One Year For Guidance. April 13, 2021 

Lost In Translation- EP Member & Media Report EC Will “mediate” With Biden Administration About Cuba On Terrorism List. Problem- EC Wrote “we will address this issue” April 02, 2021 

Confusing Message By EC/EU Not Including Libertad Act In Agendas For Meetings With Secretary Of State Blinken. Not As Important As Advertised? March 25, 2021 

In Brussels Will U.S. Secretary Of State Blinken Discuss Cuba, Libertad Act And Venezuela With EC/EU Officials?  Will He Rebuff, Sway Or Be Swayed?  Quid Pro Quo? March 23, 2021 

EC Responds To European Parliament Inquiry About EU Ambassador To Cuba Letter To President Biden- Navarro "Committed Two Major... Failures..." March 12, 2021

During United Nations Speech, President Biden Mentioned "Diplomacy" Four Times And "Engage" Seven Times. Openings For Cuba?

United Nations Headquarters
New York, New York
21 September 2021

Remarks by President Biden Before the 76th Session of the United Nations General Assembly  

Excerpts:  

We’ve ended 20 years of conflict in Afghanistan.  And as we close this period of relentless war, we’re opening a new era of relentless diplomacy; of using the power of our development aid to invest in new ways of lifting people up around the world; of renewing and defending democracy; of proving that no matter how challenging or how complex the problems we’re going to face, government by and for the people is still the best way to deliver for all of our people. 

To deliver for our own people, we must also engage deeply with the rest of the world.  

We renewed our engagement with the European Union, a fundamental partner in tackling the full range of significant issues facing our world today.  

We’re engaging with regional institutions — from ASEAN to the African Union to the Organization of American States — to focus on people’s urgent needs for better health and better economic outcomes.  

We are reengaged at the World Health Organization and working in close partnership with COVAX to deliver lifesaving vaccines around the world.  

We’ll continue to uphold the longstanding rules and norms that have formed the guardrails of international engagement for decades that have been essential to the development of nations around the world — bedrock commitments like freedom of navigation, adherence to international laws and treaties, support for arms control measures that reduce the res- — the risk and enhance transparency. 

We are working with the P5+1 to engage Iran diplomatically and seek a return to the JCPOA.  We’re prepared to return to full compliance if Iran does the same.  

Similarly, we seek serious and sustained diplomacy to pursue the complete denuclearization of the Korean Peninsula. 

Done the right way, however, with transparent, sustainable investment in projects that respond to the country’s needs and engage their local workers to maintain high labor and environmental standards, infrastructure can be a strong foundation that allows societies in low- and middle-income countries to grow and to prosper. 

We must redouble our diplomacy and commit to political negotiations, not violence, as the tool of first resort to manage tensions around the world. 

As we pursue diplomacy across the board, the United States will champion the democratic values that go to the very heart of who we are as a nation and a people: freedom, equality, opportunity, and a belief in the universal rights of all people.

and…..

We’ll stand up for our allies and our friends and oppose attempts by stronger countries to dominate weaker ones, whether through changes to territory by force, economic coercion, technological exploitation, or disinformation. But we’re not seeking — I’ll say it again — we are not seeking a new Cold War or a world divided into rigid blocs. The United States is ready to work with any nation that steps up and pursues peaceful resolution to shared challenges, even if we have intense disagreements in other areas — because we’ll all suffer the consequences of our failure if we do not come together to address the urgent threats like COVID-19 and climate change or enduring threats like nuclear proliferation.

Cuba Central Bank Should Consider Comments By Chairman Of SEC, Acting Chief Of Comptroller Of The Currency, China Central Bank, Relating To Encouraging Cryptocurrency Transactions

The Wall Street Journal
New York, New York
21 September 2021

SEC’s Gensler Doesn’t See Cryptocurrencies Lasting Long
Regulator says history of ‘wildcat banking’ in U.S. shows limited viability for private forms of money

SEC Chair Gary Gensler likened the thousands of cryptocurrencies in existence to the so-called wildcat banking era that took hold in the U.S. from 1837 until 1863.

WASHINGTON—Securities and Exchange Commission Chair Gary Gensler said Tuesday he doesn’t see much long-term viability for cryptocurrencies, underscoring the importance of protecting investors in the market and bringing it under regulatory oversight.

Mr. Gensler likened the thousands of cryptocurrencies in existence to the so-called wildcat banking era that took hold in the U.S. from 1837 until 1863 in the absence of federal bank regulation. Before President Abraham Lincoln created the Office of the Comptroller of the Currency, banks issued their own currencies, which they sometimes refused to redeem for their purported value in gold or silver.

“I don’t think there’s long-term viability for five or six thousand private forms of money,” Mr. Gensler said in a virtual event hosted by the Washington Post. “So in the meantime I think it’s worthwhile to have an investor-protection regime placed around this.”

Mr. Gensler, who took office in April, previously taught a class on cryptocurrency at the Massachusetts Institute of Technology, raising hopes among some industry participants that he would be a friendly regulator. Instead, he has repeatedly likened the crypto market to the Wild West, and urged crypto trading and lending platforms to register with the SEC, saying they are likely offering unregistered securities in violation of federal law.

On Tuesday he took aim at stablecoins, a fast-growing segment of the crypto market that has attracted increased scrutiny from regulators in recent months. These tokens—including Tether, USD Coin and Binance USD—are pegged at a one-to-one ratio to the dollar and say they are backed by high-quality assets. They are used primarily to trade other cryptocurrencies.

“We’ve got a lot of casinos here in the Wild West, and the poker chip is these stablecoins at the casino gaming tables,” Mr. Gensler said. He said stablecoins often have aspects of both SEC-regulated investment contracts and banking products but that federal bank regulators don’t have all the authorities they need to supervise them.

In separate remarks Tuesday, Acting Comptroller of the Currency Michael Hsu said Tuesday the crypto industry is on a path that resembles that of credit derivatives ahead of the 2008 financial crisis. He expressed doubt that cryptocurrency is achieving its goal of promoting financial inclusion and criticized crypto instruments that promise steady yields to investors for failing to explain how those returns are generated.

“I have seen one fool’s gold rush from up close in the lead-up to the 2008 financial crisis,” Mr. Hsu said in remarks to the Blockchain Association, a crypto lobbying group. “It feels like we may be on the cusp of another with cryptocurrencies and decentralized finance.”

Bloomberg
New York, New York
21 September 2021

Crypto Equated to Toxic Pre-Crisis Swaps by Banking Watchdog
By Jesse Hamilton

(Bloomberg) -- The U.S. agency that had once been the great hope of the cryptocurrency world is now issuing strong warnings to the industry that it’s in danger of echoing the toxic culture before the 2008 financial crisis.

Michael Hsu, the acting chief of the Office of the Comptroller of the Currency, argued Tuesday that cryptocurrencies and decentralized finance may be evolving into threats to the financial system in much the same way certain derivatives brought it near collapse more than a decade ago. Notorious credit default swaps were engineered by math wizards in much the same way crypto has emerged, he said.

“Crypto/DeFi today is on a path that looks similar to CDS in the early 2000’s,” Hsu told the Blockchain Association in a webcast. “Fortunately, this group has the power to change paths and avoid a crisis.”

OCC had previously been run by a former Coinbase Global Inc. executive, Brian P. Brooks, who led a pro-crypto charge to establish policies more welcoming to the industry and to provide some of the firms banking charters. When he was installed at the OCC by Treasury Secretary Janet Yellen, Hsu put its crypto-friendly policies on hold and has been among regulators calling for a new, unified approach across agencies.

Hsu -- adopting a skeptical tone similar to Securities and Exchange Commission Chairman Gary Gensler’s -- said he is troubled by the industry’s high-yield savings products, and asked, “How are the returns generated? It is hard to get straight answers that don’t quickly devolve into cryptospeak.”

“Crypto/DeFi solutions to problems in the real economy are rare,” Hsu said. He also said a reckoning could be on the way in which the “hardcore believers in the technology” give way to mainstream users who aren’t as eager to forgive the riskiness of the products. Those people will “dominate and drive reactions,” which he suggested could mean more danger of panics that unravel crypto investments and threaten firms that run into trouble. Hsu has been involved in talks at the President’s Working Group on Financial Markets about what the government should do about stablecoins -- a key segment of digital currencies, including the popular Tether token.

The Hill
Washington DC
22 September 2021

Biden to tap law professor who wants to 'end banking as we know it' as OCC chief: reports
By Joseph Choi

President Biden is reportedly planning to nominate a law professor who has said she wants to “end banking as we know it" to run the Office of the Comptroller of the Currency (OCC). Sources told Bloomberg and The Wall Street Journal that Biden is planning to nominate Cornell Law School professor Saule Omarova to run the OCC, which oversees and regulates the U.S. banking system.

Omarova specializes in banking law, international finance and corporate finance. She has received degrees from Moscow State University, the University of Wisconsin at Madison and Northwestern University School of Law. Omarova, who was born in Kazakhstan, previously served as a special adviser on regulatory policy under former President George W. Bush. In her writings, she has been critical of large banks entering the world of cryptocurrencies, which she argued would allow large firms to conduct trading activity out of sight from federal regulators.

As the OCC oversees major banking institutions such as JPMorgan Chase, Citigroup and Bank of America, Omarova's stance on expanding governance over large banks may signal a potentially a different relationship between banks and the federal government.

The Wall Street Journal
New York, New York
22 September 2021

WASHINGTON—President Biden plans to nominate a law professor who has criticized Wall Street banks to oversee some of the largest U.S. lenders, people familiar with the matter said. Bloomberg News reported earlier on the expected nomination.

The OCC is an independent bureau of the Treasury Department. It oversees about 1,200 banks with total assets of $14 trillion, some two-thirds of the total in the U.S. banking system, making it one of the most powerful regulators alongside the Fed and the Federal Deposit Insurance Corp.

The powerful Comptroller of the Currency has a seat on the board of the FDIC as well as on the Financial Stability Oversight Council, a panel of senior regulators charged with detecting risks to the financial system. The bulk of the job revolves around supervising the day-to-day operations of the world’s largest banks. A native of Kazakhstan, if confirmed Ms. Omarova would be the first woman to serve as the full-time comptroller to run the 3,500-strong agency since Abraham Lincoln signed it into law in 1863.

ThomsonReuters
London, United Kingdom
24 September 2021

SHANGHAI, Sept 24 (Reuters) - China intensified a crackdown on cryptocurrency trading on Friday, vowing to root out "illegal" activity and banning crypto mining nationwide, hitting bitcoin and other major coins and pressuring crypto and blockchain-related stocks.

Ten Chinese government agencies, including the central bank as well as banking, securities and foreign exchange regulators, said in a joint statement they would work closely to maintain a "high-pressure" clampdown on trading of cryptocurrencies.

The People's Bank of China (PBOC) said cryptocurrencies must not circulate in markets as traditional currencies and that overseas exchanges are barred from providing services to mainland investors via the internet. The PBOC also barred financial institutions, payment companies and internet firms from facilitating cryptocurrency trading.

The moves come after China's State Council, or cabinet, vowed in May to crack down on bitcoin mining and trading as part of efforts to fend off financial risk, sparking a major sell-off of cryptocurrencies. The Chinese government will "resolutely clamp down on virtual currency speculation, and related financial activities and misbehaviour in order to safeguard people's properties and maintain economic, financial and social order," the PBOC said in a statement on its website.

In response to the latest move, bitcoin , the world's largest cryptocurrency, dropped over 6% to $42,2167, having earlier been down about 1%. Smaller coins, which typically rise and fall in tandem with bitcoin, also tumbled. Ether fell 10% while XRP a similar amount. "There's a degree of panic in the air," said Joseph Edwards, head of research at cryptocurrency broker Enigma Securities in London. "Crypto continues to exist in a grey area of legality across the board in China."

The move also hit cryptocurrency and blockchain-related shares. U.S.-listed miners Riot Blockchain (RIOT.O), Marathon Digital (MARA.O) and Bit Digital (BTBT.O) slipping between 6.3% and 7.5% in premarket trading. China-focused SOS dropped 6.1% while San Francisco crypto exchange Coinbase Global (COIN.O) fell 3.4%.

"THOROUGH CLEANUP"

The National Development and Reform Commission (NDRC) said it was launching a thorough, nationwide cleanup of cryptocurrency mining. Such activities contribute little to China's economic growth, spawn risks, consume a huge amount of energy and hamper carbon neutrality goals, it said. It's an "imperative" to wipe out cryptocurrency mining, a task key to promoting high-quality growth of China's economy, the NDRC said in a notice to local governments.

Virtual currency mining had been a big business in China before a crackdown that started earlier this year, accounting for more than half of the world's crypto supply. The NDRC said it will work closely with other government agencies to make sure financial support and electricity supply will be cut off for mining. The national planning body also urged local governments to come up with a specific timetable and road map to eradicate such activities.

Previous restrictions, issued by local governments, paralysed the industry as miners dumped machines in despair or sought refuge in places such as Texas or Kazakhstan.

LINK TO RELATED ANALYSIS:

Cuba Central Bank Moving Nearer To Regulations For Cryptocurrencies- Another Signal To United States That Cuba Is Changing. Private Sectors Are Expanding- Though Government Remains Reluctant 27 August 2021

From Havana Times: DHL "Temporarily" Suspends Non-Document Deliveries To Cuba Citing Air Cargo Disruptions

Havana Times
Managua, Nicaragua
22 September 2021

DHL “Temporarily” Suspends Deliveries to Cuba
It means even less medicines

By Jorge Carlos De La Paz (El Toque)

HAVANA TIMES – Since August 23rd, the international courier and package delivery company DHL decided to temporarily suspend its delivery services to Cuba, without any notice, with the exception of documents.

The measure didn’t have any public repercussions until September 25th, when user Roberto Garces Marrero posted on Twitter that it was now impossible to send medicines to Cuba from Mexico, using this company. The news came crashing down like a bucket of cold water on hundreds of Cubans living in Mexico, who have been organizing the sending of humanitarian aid parcels to Cuba during the current health crisis.

While this information wasn’t communicated by any official source beforehand, Yelanys Hernandez – a Cuban journalist living in Mexico and coordinator of one of the aid projects – verified this by calling DHL branches, who said the suspension would be in force “until further notice” and that the company would only be providing delivery services for documents to the island for the time being.

“With this news from DHL, who provide a swift, efficient and expensive but very secure service, we have very few options left to send medicines regularly to the island,” Hernandez said, who hadn’t received any details about the reasons that led to this decision, although she was told that it was due to matters “in situ”; that is to say, in Cuba, without any further details.

In the face of the social media uproar because of the assumption that this measure had been taken by the Cuban government, the International Courier and Exchange Company belonging to the Cuban Postal Service, published a statement on August 25th that confirmed the cancellation of deliveries via DHL to the Caribbean country, not only from Mexico, but from anywhere in the world, and it shook off any responsibility for the decision that had been made by DHL.

According to the statement, “DHL will temporarily suspend its Package Delivery Network to Cuba, while the document delivery service will remain available in Havana and the provinces, for two or three weeks in principle”; the reason lies in “the limited capacity for cargo on airlines traveling to Cuba.”

We reached out to Gabriela Gaona Martinez, head of DHL’s Foreign Communications at DHL Supply Chain Latin America, who corroborated the Postal Service’s version and said that “due to the effects of the COVID-19 pandemic on the number of commercial flights, which continues to be limited to and from the island, DHL has temporarily suspended package deliveries to Cuba until further notice. In the meantime, we continue to offer document delivery services.” The company didn’t give an answer as to just how long this suspension will last.

Consequences for Cuba

Due to significant food and medicine shortages in Cuba and a surge in COVID-19 cases, hundreds of Cubans living abroad have joined efforts in initiatives to send emergency aid to the archipelago. Within this context, DHL became one of the few channels to get donations to the island, despite this being expensive and delays in packages arriving and being picked up on the island. This option wasn’t obstacle-free, as the giant in international courier services needed to hire shared space on commercial planes traveling to Cuba, mostly from Spain and Russia.

For example, for a package from Mexico City to reach Havana, it would first need to be sent to Madrid on a layover, and then from the Spanish capital to Cuba. This route increased prices and delayed their arrival. The insufficient four monthly commercial flights that connect Mexico to Cuba made it impossible for this to be a direct route between both countries. Limited capacity on planes and the tedious routes to get packages to the island as a result of restrictions, went hand-in-hand with a considerable spike in deliveries to the island, thanks to the great solidarity movement that has been sparked amongst the Cuban diaspora community. The combination of these factors led to the bottleneck that DHL is now “temporarily” dealing with in its operations.

The exponential growth of deliveries to Cuba in 2021 has been recognized by national authorities. The minister of Communication, Mayra Arevich Marin, said that record numbers of packages coming from abroad have continue to be registered at the Postal Service’s Sorting and Home Delivery Centers.

Meanwhile, Carlos Asencio Valerino, president of the Cuban Postal Service, and Zoraya Bravo Fuentes, the assistant director of the postal organization’s Courier Service, told the deputy prime minister of the Government, Jorge Luis Perdomo Di-Lella, that by the end of the first semester of 2021 over half a million international deliveries had been processed and delivered to their recipients in the country, a similar figure to what the Postal Service had processed over the course of 2020.

On a visit to the International Courier and Exchange Company belonging to the Cuban Postal Service, on September 9th, Perdomo Di-Lella learned that in July, the daily average of deliveries to recipients was over 15,000 parcels. The Sorting Office in Santiago de Cuba alone processed over 19,800 deliveries; of which, over 12,900 were delivered to homes. Since January up until the end of August 2021, over 58,000 deliveries have been processed, double the number of deliveries over the same period in previous years.

This is not the first time that DHL has interrupted its international package delivery service with Cuba. On April 14th 2020, the company was forced to stop its operations in Cuba because of the Cuban government’s strict border closures. The package delivery service couldn’t start up its services again until November 19th, after seven months without operating in the country. This is why initiatives set up by Cuban citizens living abroad have not only focused on collecting and sending humanitarian aid, but also on asking for humanitarian corridors for flights so that basic essentials can enter the country without Customs restrictions.

With over 55,000 signatures on the Change.org platform, the petition signed by Cuban Feminists asks Cuba’s main authorities to create the mechanisms needed so that “Cubans living abroad can travel to the island and deliver these products, as long as they as they can provide proof of their COVID-19 vaccinations beforehand.” Up until now, this initiative has not received an official response from the Cuban government, just like there hasn’t been a response to the request for two US cargo companies to transport humanitarian aid to Cuba, which is still being “discussed”.

The US Department of Transportation had authorized charter flights to airports in Havana and another seven cities in the country’s interior. The license allows one flight per week by the Skyway Enterprises company, from Miami to Santiago de Cuba, Varadero, Holguin, Santa Clara and Camaguey, between July 22nd and November 30th 2021. Likewise, five weekly flights by IBC Airways, with small planes, from Miami to Havana, Santa Clara, Camaguey, Santiago de Cuba and Matanzas / Varadero, between July 27th and December 31st 2021. On September 1st, the Civil Aviation Institute of Cuba (IACC) responded that it is in negotiations with the charter flight company Invicta to “assess possible cargo operations using Skyway airline to airports outside Havana.”

News about gradually opening up borders again after November 15th could bring a foreseeable increase in commercial flights to the country, so not only would international parcel deliveries find some relief with DHL, but it would also allow travelers to arrive with medicines, personal hygiene items and food thanks to the temporary exemption on Custom duty fees for these kinds of products up until December 31st.

President Biden Mentions Fifteen Countries During His Address To The 193-Member United Nations General Assembly; Cuba Was One Of Them.

The White House
Washington DC
21 September 2021

Remarks by President Biden Before the 76th Session of the United Nations General Assembly
United Nations Headquarters
New York, New York

Excerpts:

The future will belong to those who embrace human dignity, not trample it. The future will belong to those who unleash the potential of their people, not those who stifle it. The future will belong to those who give their people the ability to breathe free, not those who seek to suffocate their people with an iron hand. Authoritarianism -- the authoritarianism of the world may seek to proclaim the end of the age of democracy, but they’re wrong.

The truth is: The democratic world is everywhere. It lives in the anti-corruption activists, the human rights defenders, the journalists, the peace protestors on the frontlines of this struggle in Belarus, Burma, Syria, Cuba, Venezuela, and everywhere in between.

LINK To Complete Remarks

World's Largest Cruise Lines- Carnival, MSC, Norwegian, Royal Caribbean Continue To Spend Millions On Libertad Act Defenses; 2,000 Pages Filed Yesterday. Two Years Of Litigation; No End In Sight.

Excerpts:

"Incredibly, Plaintiff makes this claim despite Defendants’ travel to Cuba having been expressly authorized and, indeed, encouraged by President Obama as part of his administration’s foreign policy goals. In other words, Plaintiff challenges the core of these foreign-policy decisions of the Executive Branch, and essentially asks this Court to hold “unlawful” and subject to crushing liability the very activities that the President of the United States had blessed."

"Plaintiff’s bid should proceed no further, because Defendants are entitled to summary judgment for at least four reasons: First, Plaintiff did not own the Terminal; rather, at most, Plaintiff had a limited right to operate a cargo business in which Defendants did not and could not have trafficked. Second, the travel in which Defendants engaged from 2016 to June 2019 was entirely lawful, and thus expressly exempt from the Act’s definition of “trafficking,” because that travel was pursuant to and in compliance with a series of licenses and authorizations issued by the United States Government, and Defendants’ alleged use of Pier 1 was “necessary” to the conduct of “such” lawful travel. Third, Plaintiff does not have statutory standing to bring a Title III claim as its principal place of business is not in the United States as required under the Act. Fourth, Title III as Plaintiff would have this Court apply it violates the United States Constitution in numerous ways. Because the material facts concerning these issues are not in dispute, and on those facts Defendants are entitled to judgment as a matter of law, this Motion should be granted."

LINK: Defendants’ Omnibus Motion For Summary Judgment (9/20/21)

HAVANA DOCKS CORPORATION V. NORWEGIAN CRUISE LINE HOLDINGS, LTD. [1:19-cv-23591; Southern Florida District]

Colson Hicks Eidson, P.A. (plaintiff)
Margol & Margol, P.A. (plaintiff)
Hogan Lovells US LLP (defendant)

LINK: Norwegian Cruise Line Holdings Ltd.’s Individual Motion For Summary Judgment (9/20/21)

HAVANA DOCKS CORPORATION VS. ROYAL CARIBBEAN CRUISES, LTD. [1:19-cv-23590; Southern Florida District]

Colson Hicks Eidson, P.A. (plaintiff)
Margol & Margol, P.A. (plaintiff)
Holland & Knight (defendant)

LINK: Defendant’s Individual Motion For Summary Judgment (9/20/21)
LINK: Defendant’s Response In Opposition To Plaintiff’s Motion For Extension Of Time To Respond To Defendant’s Motion To Strike Jury Demand (9/3/21)

HAVANA DOCKS CORPORATION V. MSC CRUISES SA CO, AND MSC CRUISES (USA) INC. [1:19-cv-23588; Southern Florida District]

Colson Hicks Eidson, P.A. (plaintiff)
Margol & Margol, P.A. (plaintiff)
Venable (defendant)

LINK: MSC Cruises’ Individual Motion For Summary Judgment And Incorporated Memorandum Of Law (9/20/21)

HAVANA DOCKS CORPORATION VS. CARNIVAL CORPORATION D/B/A/ CARNIVAL CRUISE LINES [1:19-cv-21724; Southern Florida District]

Colson Hicks Eidson, P.A. (plaintiff)
Margol & Margol, P.A. (plaintiff)
Jones Walker (defendant)
Boies Schiller Flexner LLP (defendant)
Akerman (defendant)

LINK: 870-Page Carnival Corporation’s Individual Motion For Summary Judgment (9/20/21)
LINK: Carnival Corporation’s Statement Of Material Facts Of Which There Is No Genuine Issue Of Dispute (9/20/21)
LINK: Carnival Corporation’s Motion To Preclude Plaintiff From Using Aphra Behn As A Witness (9/13/21)

LINK To Libertad Act Lawsuit Filing Statistics

Might Cuba's Prensa Latina Have Provided Fodder For Libertad Act Title III Lawsuits Against Bouygues In France and Global Port Holdings In United Kingdom/Turkey?

Might Cuba’s Prensa Latina Have Provided Fodder For Libertad Act Lawsuits Against Bouygues In France and Global Port Holdings In United Kingdom/Turkey? 

Bouygues S.A. Has Offices In United States; Office In ZED Mariel; Listed On Euronext Paris Which Has Connectivity With NYSE Euronext & ADRs Trade In The United States  

Royal Caribbean Cruises And MSC Cruises, Both Defendants In Libertad Act Lawsuits, Have Investment Connectivity To Global Port Holdings 

Potentially Pitting President Biden Against UK Prime Minister Boris Johnson And Turkey President Recep Tayyip Erdogan 

Issues For Court: Standing (Who Can Sue) And Jurisdiction (Presence)  

Issue For Plaintiffs- Can They Obtain Jurisdiction And Can They Locate, Gain Custody Of Assets Of Defendants 

Paris, France-based Bouygues Batiment International S.A. (Bouygues S.A. 2020 revenues approximately US$40 billion) has since 1999 a substantial presence in the Republic of Cuba. The company “has handed over more than 30,000 rooms, or 50 percent of the accommodations offered in Cuba and 100 percent of those in five-star establishments.”  Bouygues Construcción Cuba S.A. (Engineering and Construction) has a facility located in the ZED Mariel near the Port of Mariel.  LINK To Presence and LINK To ZED Mariel 

Video Of Packard Hotel In Havana Construction From Bouygues Batiment International S.A.: https://www.linkedin.com/posts/bouygues-b%C3%A2timent-international_inside-the-construction-of-packard-hotel-activity-6843462471047512064-U22g 

In the United States (with approximately 9,600 employees), company projects have included Miami, Florida’s, Brickell City Centre & other Florida projects.   

"Americaribe LLC is a general contractor with offices based in Miami, Florida and Los Angeles, California. We have operated in the U.S. and Caribbean construction market since 2002, delivering large-scale projects such as the iconic Brickell City Centre in Miami and the Waterfront Hotel in Trinidad & Tobago. We currently have operations in Florida, California, the Bahamas, Dominican Republic, Sint Marteen, Grand Cayman and Trinidad and Tobago. As a subsidiary of Bouygues Bâtiment International, a global player in construction with operations in more than 60 countries, Americaribe is able to apply its vast networks and capacity for technical and commercial innovation, cutting-edge engineering skills and expertise in development to offices, hotels, airports, hospitals, schools, housing, exhibition centers, leisure facilities, etc. The goal for Americaribe is to not only bring projects to reality with an outstanding quality, but to bring concepts of innovation all across the industry with its partners, constructing improved lifestyles for the better future. This motto, branching from Bouygues Bâtiment International, is what we paraphrase as "Shared innovation.”"

The France-based construction company reportedly has or had a role in the design and construction of the “Cuba Havana Port Project” and of a hotel to be located on piers adjoining the Port of Havana whose owner is described in United States legal filings as a United States-based corporation which has a claim on the property certified by the United States Foreign Claims Settlement Commission (USFCSC).  The France-based construction company has a facility located on property whose owners in legal filings are described as individuals subject to United States jurisdiction who were Republic of Cuba nationals when the property was expropriated by the government of the Republic of Cuba.   

In 2019, Havana Docks Corporation used Title III of the Cuban Liberty and Democratic Solidarity Act of 1996 (known as “Libertad Act”) as the basis to file lawsuits against Miami, Florida-based Carnival Cruise Lines, Geneva, Switzerland-based MSC Cruises, Miami, Florida-based Norwegian Cruise Line Holdings, and Miami, Florida-based Royal Caribbean Cruises for their use of the piers.  

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 Libertad Act Lawsuit Filing Statistics   

In 2021, three international container shipping companies- Copenhagen, Denmark-based A.P. Moller-Maersk, Jacksonville, Florida-based Crowley Maritime Corporation, and Miami, Florida-based Seaboard Marine Ltd were sued by Odette Blanco De Fernandez Née Blanco Rosell and others for their use of the Port at Mariel, a four-crane Super-Panamax vessel capable facility located approximately twenty-five miles from the city of Havana.  The plaintiffs in the lawsuits claim their property includes the land upon which ZED Mariel was constructed. 

Istanbul, Turkey-based Global Ports Holding PLC (2019 revenues exceeded US$117.9 million), which also has a registered office in London, United Kingdom, and is listed on the London Stock Exchange (LSE) signed in 2018 “a management agreement in Cuba to advise and consult on cruise port management best practice. The cruise terminal is in the Sierra Maestra complex, in San Francisco pier, with a current capacity for two ships.” In the company’s latest financial reporting, US$1,618,000.00 was referenced as “Habana Management Fee.”   

MSC Cruises and Royal Caribbean Cruises are shareholders in “equity-accounted investments” with Global Ports Holding.  Royal Caribbean Cruises has a 44% shareholding in Barcelona Port Investments, S.L., and 25% shareholding in Venezia Investmenti Srl.  MSC Cruises has a 25% shareholding in Venezia Investmenti Srl., and 50% shareholding in Goulette Cruise Holding. LINK To Annual Report 

LINK: Global Ports Holding From Turkey Could Be Next To Be Sued Using Title III; President Erdogan Will React Harshly June 05, 2019 

Prensa Latina News Agency
Havana, Republic of Cuba
22 August 2021

Havana Customs will be a hotel and tourist complex 

“To crown the efforts to promote and recover island tourism, a beautiful work is underway that will transform the Havana Customs building into a hotel and cruise ship complex.  Next to the sea in the bay the Hotel Real Aduana appears little by little, a building that has all the characteristics of becoming the most attractive accommodation in the capital of Cuba, based on the existing old structure.  Considered by many the most beautiful building on Avenida del Puerto, the old Havana Customs House is restored to become a large Cruise Terminal.  The large complex, with its three old breakwaters: San Francisco, La Machina and Santa Clara, has degree II protection, granted by the National Monuments Commission of Cuba.” 

“This gives extra value to any undertaking that is carried out there, but requires the preservation of its architectural values, as reflected in reports from entities of the country's Ministry of Tourism (Mintur).  The current Havana Customs building was inaugurated in 1914, where the San Francisco dock was once located, and extends for 300 meters along the Avenida del Puerto.” 

“It was built by Barclays Parson & Klapp, and for almost half a century its dock, operated by the American company Havana Docks Corporation, was considered among the best in the world.  In the building, which the Havana Dock shared with the Cuban State (according to the 1905 agreement) there were, in addition to the Havana Customs, and other official institutions such as the Harbor Master's Office.  There were also the Maritime Police, the Doctors of the Port, the Immigration Department and the General Inspection of the Port.” 

“The towers of the Havana Customs House, in addition to their decorative function and as viewpoints, concealed two water tanks in each one, which were the basis for the operation of the building's advanced fire-fighting system.  The Havana Customs building can be considered eclectic, since it contains neoclassical elements with semicircular arches and a profusion of Creole tiles, with a typical Spanish colonial appearance.  To complement the services of the Cruise Terminal, in part of the historic building appears the Hotel Real Aduana, a five-star hotel operated by Habaguanex with 55 rooms from which you can enjoy the wonderful surroundings that the bay of Havana offers.” 

In 2016, Republic of Cuba government-operated Habaguanex S.A. was transferred from control by the Office of the Historian of the City of Habana to Republic of Cuba government-operated Gaviota Hoteles S.A. controlled by Republic of Cuba government-operated Grupo de Administracion Empresarial (GAESA) which is controlled by the Revolutionary Armed Forces (FAR) of the Republic of Cuba. 

From Bouygues: Iberostar Grand Packard Hotel- “Bouygues Bâtiment International is renovating a hotel from the early 20th century, the Packard Hotel [321 rooms]. This hotel is constructed from a combination of metal and concrete and will become a benchmark for 5-star hotels in Havana. This little miracle was designed by Michel Regembal, architect of the Stade de France stadium.  [320 tonnes of metal structure.  345 tradesmen.].  One peculiarity about this site is that it is one of the eight pilot sites on which Bouygues Bâtiment International is rolling out ‘lean management’, a participative, collaborative and visual form of scheduling in which each task is very precisely defined.”  Project completed 2019. 

From Bouygues: Gran Hotel Manzana Kempinski La Habana- “The Gran Hotel Manzana project (Cuba) consisted of the transformation of a building in the historic centre of Havana into a 5* hotel. The reconversion of this heritage building was based on 3 principles: the restoration of the façade to exactly how it was, the renovation of the shopping gallery on the ground floor and the creation of an interior patio.  [33,662 square meters of elegance].  The Gran Hotel Manzana has 246 rooms, 50 of which are suites, 4 bars, 2 restaurants and an infinity edge pool on the roof. The handover of this emblematic project took place in April 2017.”  Bouygues Bâtiment International was the contractor for the project. 

From ZED Mariel: “Mariel Special Development Zone [ZED Mariel] is the first of its type in Cuba and enjoys a privileged geographic location, in the center of the Caribbean Sea, at the crossroads of the main maritime commercial traffic routes in the Western Hemisphere. The Office of Mariel Special Development Zone is the entity attached to the Council of Ministers, in charge of managing the Zone, controlling its activities, elaborating and conducting its Development and Business Program. ZED Mariel provides a world class production and logistics platform which will enable an increase in national production levels, reduce import costs, boost growth, create jobs and facilitate direct foreign investment. It is an area of the national territory, located in the north of Artemisa province, 45 km west of Havana, regulated by special regimes and policies, designed to attract investment in the production of goods and the provision of services with added value, using knowledge and innovation, as well as clean technologies, generating industrial concentration to replace imports, boost exports and generate new sources of employment. Goods and services generated in ZED Mariel can be traded with all legal entities established in the country, inside or outside Mariel. Exports from Cuba are exempted from customs tariffs.” 

Libertad Act Title III Lawsuits 

HAVANA DOCKS CORPORATION V. NORWEGIAN CRUISE LINE HOLDINGS, LTD. [1:19-cv-23591; Southern Florida District]

Colson Hicks Eidson, P.A. (plaintiff)
Margol & Margol, P.A. (plaintiff)
Hogan Lovells US LLP (defendant)

HAVANA DOCKS CORPORATION VS. ROYAL CARIBBEAN CRUISES, LTD. [1:19-cv-23590; Southern Florida District]

Colson Hicks Eidson, P.A. (plaintiff)
Margol & Margol, P.A. (plaintiff)
Holland & Knight (defendant)

HAVANA DOCKS CORPORATION V. MSC CRUISES SA CO, AND MSC CRUISES (USA) INC. [1:19-cv-23588; Southern Florida District]

Colson Hicks Eidson, P.A. (plaintiff)
Margol & Margol, P.A. (plaintiff)
Venable (defendant)

HAVANA DOCKS CORPORATION VS. CARNIVAL CORPORATION D/B/A/ CARNIVAL CRUISE LINES [1:19-cv-21724; Southern Florida District]

Colson Hicks Eidson, P.A. (plaintiff)
Margol & Margol, P.A. (plaintiff)
Jones Walker (defendant)
Boies Schiller Flexner LLP (defendant)
Akerman (defendant)

ODETTE BLANCO DE FERNANDEZ née BLANCO ROSELL, Plaintiff v. A.P. MOLLER-MAERSK A/S (a/k/a A.P. MOLLER-MAERSK GROUP); MAERSK A/S (a/k/a MAERSK LINE A/S); MAERSK, INC.; and MAERSK AGENCY U.S.A., INC [2:21-cv-00339; Eastern District of Louisiana]. Pusateri, Johnston, Guillot & Greenbaum, LLC (plaintiff)

Berliner Corcoran & Rowe LLP (plaintiff)
Fields PLLC (plaintiff)

ODETTE BLANCO DE FERNANDEZ née BLANCO ROSELL, Plaintiff, v. CROWLEY MARITIME CORPORATION, Defendant. [3:20-cv-01426 Middle District Florida; Transferred To Florida Southern District 1:21-cv-20443].

Murphy & Anderson, P.A. (plaintiff)
Berliner Corcoran & Rowe LLP (plaintiff)
Fields PLLC (plaintiff)
Law Offices of John S. Gaebe P.A. (plaintiff)
Horr, Novak & Skipp P.A. (plaintiff)
Venable LLP (defendant)

ODETTE BLANCO DE FERNANDEZ née BLANCO ROSELL, Plaintiff, v. SEABOARD MARINE, LTD., Defendant. [1:20-cv-25176; Southern Florida District].

Horr, Novak & Skipp, P.A. (plaintiff)
Law Offices of John S. Gaebe (plaintiff)
Berliner Corcoran & Rowe LLP (plaintiff)
Fields (plaintiff)
Barakat Law (plaintiff)
Morgan, Lewis & Bockius LLP (defendant)

LINK TO COMPLETE ANALYSIS IN PDF FORMAT 

Links To Bouygues-Related Analyses 

Liebherr Of Austria, Womy of Germany, Peinemann Of The Netherlands, Bouygues Of France Link For Hotel Construction Equipment To Cuba. Competition For Caterpillar And Deere. April 27, 2021 

France’s Bouygues Construction Has Substantial Tourism Presence In Cuba; And, Ironically Involved With Brickell City Centre in Miami & Other Florida Projects; No Libertad Act Lawsuit November 14, 2019 

Five New Lawsuits: Royal Caribbean, Norwegian Cruise Lines, MSC Cruises Sued Using Libertad Act August 27, 2019 

ZED Mariel Has 16 Companies Operating; One Approved By U.S. Government Not Yet Operational. Might All Be Potential Defendants In Libertad Act Lawsuits? December 24, 2020 

Could Buffalo, New York-based Roswell Park Comprehensive Cancer Center Be A Defendant In A Libertad Act Lawsuit? Is This What Title III Intended? December 24, 2020 

France, Russia, Spain, Turkey Selected By Cuba For Airport Contracts August 07, 2016 

Despite Reports, Kempinski Hotels Does Not Have A Management Contract For A Property In Cuba... Yet August 02, 2016

Thirteen Months Ago, 2020 Democratic Party Platform Approved Position On Cuba. President Biden Has Thus Far Ignored It.

2020 Democratic Party Platform 

The platform was considered by the 2020 Platform Committee at its meeting on July 27, 2020, and was approved by the Democratic National Convention on August 18, 2020. 

Page 87  (2020 Platform)

“Democrats will also move swiftly to reverse Trump Administration policies that have undermined U.S. national interests and harmed the Cuban people and their families in the United States, including its efforts to curtail travel and remittances. Rather than strengthening the regime, we will promote human rights and people-to-people exchanges, and empower the Cuban people to write their own future.”

Page 45 (2016 Platform)

“In Cuba, we will build on President Obama’s historic opening and end the travel ban and embargo. We will also stand by the Cuban people and support their ability to decide their own future and to enjoy the same human rights and freedoms that people everywhere deserve. In Venezuela, we will push the government to respect human rights and respond to the will of its people. And in Haiti, we will support local and international efforts to bolster the country’s democratic institutions and economic development. We will also help more Haitians take advantage of Temporary Protected Status. Finally, we will close the School of the Americas, now known as the Western Hemisphere Institute for Security Cooperation, because we believe that military and police forces should support democracy, not subvert it.”

2016 Republican Party Platform

“We want to welcome the people of Cuba back into our hemispheric family — after their corrupt rulers are forced from power and brought to account for their crimes against humanity. We stand with the Women in White and all the victims of the loathsome regime that clings to power in Havana. We do not say this lightly: They have been betrayed by those who are currently in control of U.S. foreign policy. The current Administration's "opening to Cuba" was a shameful accommodation to the demands of its tyrants. It will only strengthen their military dictatorship. We call on the Congress to uphold current U.S. law which sets conditions for the lifting of sanctions on the island: Legalization of political parties, an independent media, and free and fair internationally-supervised elections. We call for a dedicated platform for the transmission of Radio and TV Martí and for the promotion of internet access and circumvention technology as tools to strength Cuba's pro-democracy movement. We support the work of the Commission for Assistance to a Free Cuba and affirm the principles of the Cuban Adjustment Act of 1966, recognizing the rights of Cubans fleeing Communism…. Internet firewall circumvention and anti-censorship technology must become a national priority in light of the way authoritarian governments such as China, Cuba, and Iran restrict free press and isolate their people limiting political, cultural, and religious freedom.”

Page 30 (2012 Platform)

“In the Americas, we see vibrant democracies in countries from Mexico to Brazil and Costa Rica to Chile. We have also seen historic peaceful transfers of power in places like El Salvador and Uruguay. Yet despite the region's democratic progress, stark inequalities in political and economic power endure. We will continue to press for more transparent and accountable governance. And we will promote greater freedom in Cuba and Venezuela until all their citizens enjoy the universal rights they deserve.”

“In the Americas, we see vibrant democracies in countries from Mexico to Brazil and Costa Rica to Chile. We have also seen historic peaceful transfers of power in places like El Salvador and Uruguay. Yet despite the region's democratic progress, stark inequalities in political and economic power endure. We will continue to press for more transparent and accountable governance. And we will promote greater freedom in Cuba and Venezuela until all their citizens enjoy the universal rights they deserve. Under President Obama, we have undertaken the most significant efforts in decades to engage the Cuban people. We have focused on the importance of the family ties between Cuban Americans and their relatives still living under oppression. Because of steps the President has taken, it is now possible for Cuban Americans to visit and support their families in Cuba, and to send remittances that reduce the Cuban people's dependence on the Cuban state. We have taken additional steps to bolster Cuban civil society, expanding purposeful exchanges that bolster independent religious groups on the island and enhancing the free flow of information to, from, and among the Cuban people. Going forward we will continue to support the Cuban people's desire to freely determine their own future.”

Americas (2020) 

Democrats believe the Western Hemisphere is America’s strategic home base—a region bound together by common values, history, and vision of a more prosperous, democratic, and secure future. When the United States hosts the region’s leaders at next year’s Summit of the Americas—the first to be held here since the 1994 inaugural meeting in Miami—we will turn the page on the Trump Administration’s denigration and extortion of our neighbors, and we will chart a new era of cooperation based on partnership and shared responsibility for the region we all call home. 

Democrats will reaffirm the importance of North America to U.S. global economic competitiveness. We will ensure the USMCA lives up to its commitment to create prosperity for American workers, and we will strictly enforce compliance with its labor and environmental provisions. We will reinvigorate and build upon the North American Plan for Animal and Pandemic Influenza launched under the Obama-Biden Administration and work with our partners to recover from the COVID-19 pandemic, which has caused the biggest economic decline in history across Latin America and the Caribbean. 

Rather than coerce our neighbors into supporting cruel migration policies, we will work with our regional and international partners to address the root causes of migration—violence and insecurity, weak rule of law, lack of educational and economic opportunity, pervasive corruption,

and environmental degradation. Rather than encourage climate denial and environmental devastation, we will rally the world to protect the Amazon from deforestation, protect Indigenous peoples, and help vulnerable nations in the Caribbean and Central America adapt to the impacts of climate change. And rather than imitate populist demagogues, we will link arms with our neighbors to realize our shared aspirations for the region’s future. 

We will reject President Trump’s failed Venezuela policy, which has only served to entrench Nicolás Maduro’s dictatorial regime and exacerbate a human rights and humanitarian crisis. To rise to the occasion of the world’s worst refugee crisis and worst humanitarian crisis outside a warzone in decades, the United States will mobilize its partners across the region and around the world to meet the urgent needs of the people of Venezuela, and grant Temporary Protected Status to Venezuelans in the United States. Democrats believe that the best opportunity to rescue Venezuela’s democracy is through smart pressure and effective diplomacy, not empty, bellicose threats untethered to realistic policy goals and motivated by domestic partisan objectives. 

Democrats will also move swiftly to reverse Trump Administration policies that have undermined U.S. national interests and harmed the Cuban people and their families in the United States, including its efforts to curtail travel and remittances. Rather than strengthening the regime, we will promote human rights and people-to-people exchanges, and empower the Cuban people to write their own future.

LINK TO COMPLETE 2020 Platform In PDF Format

LINK TO COMPLETE 2016 Platform In PDF Format

LINK TO COMPLETE 2012 Platform In PDF Format

Cuba Could Resolve Western Union's Certified Claim By Waiving Four Months Of Electronic Remittance Transfer Fees. Biden Administration Should Support And Negotiate Certified Claims Settlement.

Biden-Harris Administration Can Make Progress Where Obama-Biden Administration And Trump-Pence Administration Failed 

Cuba Received US$20 Million In Annual Fees From Western Union- Which Has A Certified Claim Since 1960 Against Cuba For US$4.3 Million 

Cuba Relinquishes Its Fees Until Western Union Is Fully-Compensated 

In Less Than Four Months, Cuba Could Resolve The US$4.3 Million Certified Claim 

First Certified Claim Would Be Resolved.  Second Resolution Becomes Easier 

Certified Claims Are Foundation For Issues With Cuba 

Denver, Colorado-based Western Union Company (2019 revenues approximately US$5.3 billion) delivered electronic remittance transfers from the United States and other countries to the Republic of Cuba.  The total estimated annual value of electronic remittance transfers from the United States was approximately US$1.5 billion. 

The government of the Republic of Cuba received on an annual basis approximately US$20 million as fees for the processing and delivery of electronic remittance transfers from the United States to the Republic of Cuba.  The approximately US$20 million represented approximately 2% of the total value of electronic remittance transfers of approximately US$1.5 billion.  The 2% was in line with global norms.   

The approximately US$20 million in fees were divided amongst three Republic of Cuba government-operated entities.  All electronic remittance transfers arriving to the Republic of Cuba are processed by and create benefit to the government of the Republic of Cuba primarily through Revolutionary Armed Forces (FAR) of the Republic of Cuba-connected Republic of Cuba government-operated Banco Financiero Internacional S.A. (BFI), Republic of Cuba government-operated Financiera Cimex (Fincimex) and Republic of Cuba government-operated American International Services (AIS).     

Western Union Company has one claim (CU-2317 in two parts: 135th largest (US$780,631.20) and 365th largest (US$216,286.75) for a total US$939,367.95 against the government of the Republic of Cuba certified on 16 June 1971 by the United States Foreign Claims Settlement Commission (USFCSC).  The USFCSC permits 6% annual interest on the principal, thus as of 2021 the certified claim has a value of approximately US$4,377,454.88.  LINK To Certified Claim Document.  

Eliminate the fee paid by Western Union Company to Republic of Cuba government-operated companies and the certified claim of Western Union Company evaporates.   

Then, the Diaz-Canel-Valdes Mesa Administration (2019- ) could engage directly with the Biden-Harris Administration (2021- ) in settlement negotiations for the remaining 5,912 certified claims. 

Making the process less problematic is the two (2) largest certified claims representing 24% of the total value of all certified claims.  Thirty (30) certified claimants hold 56% of the total value of the certified claims.  This concentration of value creates an efficient pathway towards a settlement.   

The Negotiator 

Mr. Kenneth Feinberg is a Washington DC-based attorney (www.feinberglawoffices.com) specializing in mediation and alternative dispute resolution, whose service includes Special Master for the September 11th Victim Compensation Fund and TARP Executive Compensation; Administrator of the BP Deepwater Horizon Disaster Victim Compensation Fund; oversaw disbursements for the Penn State settlement and the Aurora victim relief fund; mediated the Foreign Exchange and Benchmark Rates Antitrust Litigation; and was retained to assist in the General Motors recall response and compensation for Volkswagen owners.    

Mr. Feinberg served as Chief of Staff to The Honorable Edward Kennedy (D- Massachusetts) and on the senior staff of the Committee on the Judiciary of the United States Senate. 

Mr. Feinberg, as United States Department of State Special Representative (with rank of Ambassador) For Cuba Negotiations, would bring his known appreciation for deadlines to his tenure.  He would coordinate the day-to-day discussions and negotiations with the Republic of Cuba.  Since 2018, Mr. Feinberg has confirmed his interest in assisting with settlement negotiations.  

His goal would be to conclude during the Biden-Harris Administration (2021- ) what the Trump-Pence  Administration (2017-2021) and Obama-Biden Administration (2009-2017) failed to do- and what eight other previous occupants of The White House failed to deliver on behalf of those 5,913 individuals and companies whose assets were expropriated without compensation by the Republic of Cuba, beginning with an oil refinery owned by White Plains, New York-based Texaco, Inc., now a subsidiary of San Ramon, California-based Chevron Corporation. 

LINK: President Biden: A Special Presidential Representative For Cuba Negotiations- With Or Without An Ambassador January 31, 2021 

Certified Claims Background

There are 8,821 claims of which 5,913 awards valued at US$1,902,202,284.95 were certified by the United States Foreign Claims Settlement Commission (USFCSC) and have not been resolved for nearing sixty years (some assets were officially confiscated in the 1960’s, some in the 1970’s and some in the 1990’s).  The USFCSC permitted simple interest (not compound interest) of 6% per annum (approximately US$114,132,137.10); with the approximate current value of the 5,913 certified claims is approximately US$8,978,394,785.15.  

The first asset (along with 382 enterprises the same day) to be expropriated by the Republic of Cuba was an oil refinery on 6 August 1960 owned by White Plains, New York-based Texaco, Inc., now a subsidiary of San Ramon, California-based Chevron Corporation (USFCSC: CU-1331/CU-1332/CU-1333 valued at US$56,196,422.73).  

From the certified claim filed by Texaco: “The Cuban corporation was intervened on June 29, 1960, pursuant to Resolution 188 of June 28, 1960, under Law 635 of 1959.  Resolution 188 was promulgated by the Government of Cuba when the Cuban corporation assertedly refused to refine certain crude oil as assertedly provided under a 1938 law pertaining to combustible materials.  Subsequently, this Cuban firm was listed as nationalized in Resolution 19 of August 6, 1960, pursuant to Cuban Law 851.  The Commission finds, however, that the Cuban corporation was effectively intervened within the meaning of Title V of the Act by the Government of Cuba on June 29, 1960.” 

The largest certified claim (Cuban Electric Company) valued at US$267,568,413.62 is controlled by Boca Raton, Florida-based Office Depot, Inc.  The second-largest certified claim (International Telephone and Telegraph Co, ITT as Trustee, Starwood Hotels & Resorts Worldwide, Inc.) valued at US$181,808,794.14 is controlled by Bethesda, Maryland-based Marriott International; the certified claim also includes land adjacent to the Jose Marti International Airport in Havana, Republic of Cuba.  The third-largest certified claim valued at US$97,373,414.72 is controlled by New York, New York-based North American Sugar Industries, Inc.  The smallest certified claim is by Sara W. Fishman in the amount of US$1.00 with reference to the Cuban-Venezuelan Oil Voting Trust. 

The two (2) largest certified claims total US$449,377,207.76, representing 24% of the total value of the certified claims.  Thirty (30) certified claimants hold 56% of the total value of the certified claims.  This concentration of value creates an efficient pathway towards a settlement.   

Certified Claimants Operating (Or Operating Recently) In Cuba   

Certified claimants with current or recent activity within the Republic of Cuba include New York, New York-based Colgate-Palmolive, Moline, Illinois-based Deere & Company, Atlanta, Georgia-based Delta Air Lines, Boston, Massachusetts-based General Electric, Bethesda, Maryland-based Marriott International, Chicago, Illinois-based University of Chicago, Denver, Colorado-based Western Union and New Haven, Connecticut-based Yale University.    

The combined value of the certified claims by these entities is US$206,707,396.21 (US$938,451,578.64 with interest) representing 10.9% of the value of 5,913 certified claims.  

Colgate-Palmolive (US$14,507,935.04): From New York, New York-based Colgate-Palmolive Company (2020 revenues approximately US$16 billion) on 5 April 2016: “Colgate Palmolive’s Bright Smiles, Bright Futures program provides oral health education and screening to millions of children in more than 80 countries as part of an effort to reduce and prevent cavities among children. The global program, celebrating its 25th anniversary, has reached more than 850 million children around the world with its education curriculum. This award-winning curriculum is translated into 30 languages. Colgate’s well-established partnerships with governments, schools and communities -- combined with a committed network of volunteer dentists and educators -- make the program work.  With government approval, we brought a humanitarian program modeled on Bright Smiles, Bright Futures to Cuba in 2014. In our first year, we ran the program in one municipality of Havana and reached approximately 10,000 children. Additionally, we presented our plan to dentists and representatives from the Ministry of Health at the Cuban Dental Congress in November 2015.  Today, we’re extending our reach in Havana as well as expanding the program to the provinces of Cienfuegos and Pinar del Río in partnership with the Ministry of Health. With this expansion, we expect to reach more than 170,000 children by the end of 2016.”   

Deere & Company (US$267,171.50): In November 2017, and continuing through 2021, Moline, Illinois-based Deere & Company (2019 revenues approximately US$39 billion) delivered more than $800,000.00 in agricultural equipment to the Republic of Cuba for use at its distribution center affiliated with Republic of Cuba government-operated Maquimport, a subsidiary of Republic of Cuba government-operated Gecomex.  Antioch, Tennessee-based Wirtgen America, Inc., a subsidiary of Windhagen, Germany-based Wirtgen Group (2019 revenues approximately US$3 billion), a construction equipment machinery subsidiary (acquired in 2017) of Deere & Company has also delivered products to the Republic of Cuba. John Deere reported that the company would provide financing for equipment purchases by authorized Republic of Cuba entities.  

Delta Air Lines (US$212,396.08): Atlanta, Georgia-based Delta Air Lines (2019 revenues approximately US$47 billion) has operated regularly-scheduled flights between the United States the Republic of Cuba and a ticket office in the city of Havana, Republic of Cuba, managed by Republic of Cuba government-operated Havanatur, a subsidiary of Republic of Cuba government-operated Corporacion Cimex SA which is controlled by Enterprise Administration Group (GAESA) which is controlled by the Revolutionary Armed Forces of the Republic of Cuba (FAR).    

General Electric (US$5,870,436.86): Since December 2017, Boston, Massachusetts-based General Electric (GE; 2019 revenues exceeded US$95 billion) delivered from the United States to the Republic of Cuba “parts for steam turbines” valued at more than US$21 million. Some of the parts traveled from Atlanta, Georgia, to Port Everglades, Florida, then to Port Mariel in the Republic of Cuba. GE is the largest (by revenue) United States-based company to have engaged with the Republic of Cuba. Although GE has not issued a media release relating to the project in the Republic of Cuba, in 2017 the government of the Republic of Cuba confirmed in a PowerPoint presentation used by the Embassy of the Republic of Cuba in Washington DC that the company was providing parts and equipment for a power plant. The total value of the project has not been reported. The Obama-Biden Administration first authorized the transactions by GE as primarily advancing benefit to the citizens of the Republic of Cuba rather than to the government of the Republic of Cuba. This type of transaction was and remains licensable (general or specific) through the OFAC and BIS. In November 2015, GE purchased for approximately US$10.6 billion the power and grid division of Paris, France-based Alstom (2018 revenues approximately US$8 billion). In 2016, GE commenced a power generation project in the Republic of Cuba resulting, in part, from a relationship between Alstom and the Republic of Cuba prior to the 2015 acquisition by GE of the power and grid division of Alstom, which had exported products to the Republic of Cuba. On 31 March 1971, GE certified a claim against the Republic of Cuba in the amount of US$5,870,436.86 through the United States Foreign Claims Settlement Commission (USFCSC) within the United States Department of Justice.  Interest accrued at 6% per annum from the respective date(s) of loss to the date of settlement.  

Marriott International (US$181,808,794.14): A subsidiary of Bethesda, Maryland-based Marriott International, Inc. (2019 revenues approximately US$21 billion), Stamford, Connecticut-based Starwood Hotels and Resorts Worldwide LLC, had a series of two-year licenses from the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington DC to manage two (2) properties located in the Republic of Cuba.  Both properties managed by Marriott International (through Starwood Hotels and Resorts Worldwide LLC) are in the city of Havana, Four Points by Sheraton Havana and Hotel Inglaterra (delayed opening without explanation from December 2016 to December 2019) and owned by entities controlled by the Revolutionary Armed Forces of the Republic of Cuba (FAR).  The OFAC licenses were first issued during the Obama-Biden Administration and renewed during the Trump-Pence Administration, although there was a reported delay by the OFAC in transferring the licenses from Starwood Hotels and Resorts Worldwide LLC to Marriott International.  The certified claim also includes land adjacent to the Jose Marti International Airport (HAV) in Havana, formerly known as Rancho-Boyeros Airport, located in the town of Boyeros, approximately 9 miles from Havana.  HAV handles approximately 25 international airlines and serves approximately 60 destinations in approximately 30 countries.  

University of Chicago (US$2,500,000.00): The Center for Latin American Studies at the Chicago, Illinois-based University of Chicago has offered academic programs in the Republic of Cuba and Alumni Association of the University of Chicago has marketed educational visits to the Republic of Cuba.   

Western Union (US$939,367.20): Denver, Colorado-based Western Union Company (2019 revenues approximately US$5.3 billion) provided online and app-based money transfer services in the Republic of Cuba through 420 Agent locations in all sixteen provinces and 168 municipalities.  Western Union Company retains an agreement with Republic of Cuba government-operated Fincimex S.A., a subsidiary of Republic of Cuba government-operated Corporacion Cimex SA which is controlled by Enterprise Administration Group (GAESA) which is controlled by the Revolutionary Armed Forces of the Republic of Cuba (FAR).  

Yale University (US$601,295.39): The Yale MacMillan Center: Council on Latin American & Iberian Studies at New Haven, Connecticut-based Yale University has offered academic programs in the Republic of Cuba.

LINK TO COMPLETE ANALYSIS IN PDF FORMAT

Recent Remittance-Related Cuba Analyses

U.S. Department Of State Memorandum: The 17 Company Members Of The CRWG- Moving Remittances And Using Remittances; Cuba Entities Need Be Part Of The Process July 26, 2021  

Biden-Diaz-Canel Remittance Compromise: U.S. And Cuba Companies Suspend Transaction Fees Until 31 December 2021. Impact On 800 Publix Markets July 27, 2021 

Defining "Transformative"- Cuba Ratifies Decree-Law Authorizing SME's: Micro (1-10 employees), Small (11-35 employees), Medium (35-100 employees). The Private Sector Has Returned. Aug 7, 2021  

Cuba Links Resumption Of Remittances From United States To Expanding Investment Opportunities For Cuban Residents Abroad Aug 6, 2021  

Cuba Expands Again Role Of Private Sector- Suppliers, Foreign Currency Access Aug 5, 2021  

Cuba Suspends Tariffs And Fees For Non-Commercial (SME's Next?) Solar Systems. Another Opportunity For Biden-Harris Administration To Support U.S. Exporters And Florida Companies Should Benefit. Jul 30, 2021  

If A Product Costs At Least 2,500 Pesos (US$104.16), Customers In Cuba Now May Obtain Financing: Terms Are 2.5% Interest With 20% Down July 24, 2021

Biden Administration Wants To Deny Cuba's Government (Military) With Earnings- Conditional Resumption Of Product Filled Flights To Airports In Cuba Benefits Self-Employed; By-In From Congress? July 19, 2021

Is Biden-Harris Administration Nearing Decision To Reverse Trump-Pence Administration Prohibition On Cuba Military Earning Money From Remittances? July 15, 2021  

Cuba Central Bank May Provide Option For Western Union To Continue Services To Cuba: REDSA November 26, 2020  

Western Union Data For Transfers To Cuba: 2.88 Million Annually- 24% To Havana; Florida 1st, Texas 2nd, New Jersey 3rd; US$200,000+ Could Be Aboard Each Flight From Miami November 19, 2020  

If Western Union Ends Remittance Services To Cuba, That Means A Return Of “Mules On Steroids”- The Impact Could Cripple MIA November 16, 2020  

At 6:00 PM Today, Final [For Now] Western Union Transactions With Cuba Are [Temporarily Perhaps] Suspended November 23, 2020  

Will United States Airlines Now Post A Link To FinCEN Form 105 On Their Internet Sites For Passengers Traveling To Cuba? November 23, 2020 

Trump Administration Executive Order About China Military Will Impact Biden Administration Decisions About Cuba Military November 17, 2020  

Cuba Has Options To Retain Western Union Electronic Remittance Services- Transfer To A Bank? November 16, 2020  

Western Union Preparing To End Money Transfers To Cuba On 22 November 2020.... Will Cuba Permit It? November 13, 2020 

10% Of "Cuban-Americans" In United States Congress Has Announced Retirement; Former President Trump Campaigned Against The Republican Representative From Ohio; Redistricting Could Cost Another 10%

Punchbowl News
Washington DC
17 September 2021

“Our pal Jonathan Martin of the New York Times scooped last night that Rep. Anthony Gonzalez (R-Ohio) was retiring. Recruiting Gonzalez to run for Congress in 2018, as JMart pointed out, was a catch for House Republicans. He’s Cuban American, young and a former Ohio State and NFL football star. House Minority Leader Kevin McCarthy always says you can’t win a House majority without a football star running. We have no idea whether that’s true, but it’s a favorite McCarthy-ism.  However, Gonzalez voted to impeach former President Donald Trump following the deadly Jan. 6 attack on the Capitol. Trump, in turn, has endorsed a primary opponent against Gonzalez. The second-term lawmaker still believed he could win, but for what? “You can fight your butt off and win this thing, but are you really going to be happy? And the answer is, probably not,” told JMart. Gonzalez was running against Max Miller.” 

Background

The Honorable Donald Trump, 45th President of the United States (2017-2021) attended a rally on 26 June 2021 at the Lorain County fairground located in Wellington, Ohio, approximately forty miles southwest of Cleveland, Ohio. The rally was to support the candidacy of Mr. Max Miller, a former staff member at The White House, who is seeking the 2022 nomination of the Republican Party for the 16th District from Ohio in the United States House of Representatives. Former President Trump is supporting Mr. Miller rather than the incumbent, The Honorable Anthony Gonzalez (Ohio; R-16th) who is serving a second term and is of Cuban descent. Representative Gonzalez voted in January 2021 to impeach then-President Trump.

A second “Cuban-American” member of the United States House of Representatives, The Honorable Nicole Malliotakis (New York; R- 11th), may have her district gerrymandered to make re-election challenging.

LINKS To Related Analyses: 

With Rally In Ohio, President Trump Seeking To Extract 10% Of Cuban-American Representation In 118th United States Congress June 26, 2021 

President Trump Seeking To Oust Cuban-American Member Of Congress; Exacting Revenge More Important Than Number Of Cuban-Americans In Congress? March 17, 2021

The current “Cuban-American” representation in the 117th United States Congress:

United States Senate
The Honorable Ted Cruz (R- Texas)
The Honorable Marco Rubio (R- Florida)
The Honorable Robert Menendez (D- New Jersey)

United States House of Representatives
The Honorable Albio Sires (New Jersey; D- 8th)
The Honorable Alex Mooney (West Virginia; R-2nd)
The Honorable Anthony E. González (Ohio; R- 16th)
The Honorable Mario Díaz-Balart (Florida; R-25th)
The Honorable Carlos Gimenez (Florida; R- 26th)
The Honorable Maria Elvira Salazar (Florida; R- 27th)
The Honorable Nicole Malliotakis (New York; R- 11th)

American Airlines Invests In Brazil's GOL Airlines Which Has Interline Agreement With Cubana de Aviacion. OFAC Permits This Type Of Non-Controlling Investment

Fort Worth, Texas-based American Airlines, Inc. (2019 revenues approximately US$45.7 billion) has purchased for US$200 million a 5.2% shareholding in Sao Paulo, Brazil-based GOL Linhas Aereas Inteligentes S.A. (2019 revenues approximately US$2.7 billion). LINK To Media Release   

In December 2015, GOL reported including Jose Marti International Airport (HAV) in the Republic of Cuba among destinations.  HAV is not currently listed among GOL destinations. 

On the Internet site of GOL: 

“Interline: GOL has partnerships with many airlines that can issue your tickets and allow you to make one or more connections without you having to check-in or check your bags again. Learn about the partner airlines with which we have this agreement known as an interline agreement:  

Cubana de Aviacion” 

On 4 March 1994, the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington DC issued an opinion which stated that a United States business or individual subject to United States jurisdiction 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 United States 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. 

About GOL Linhas Aéreas Inteligentes S.A.: “GOL serves more than 36 million passengers annually. With Brazil's largest network, GOL offers customers more than 750 daily flights to over 100 destinations in Brazil and in South America, the Caribbean and the United States. GOLLOG’s cargo transportation and logistics business serves more than 3,400 Brazilian municipalities and more than 200 international destinations in 95 countries. SMILES allows over 16 million registered clients to accumulate miles and redeem tickets to more than 700 destinations worldwide on the GOL partner network. Headquartered in São Paulo, GOL has a team of approximately 14,000 highly skilled aviation professionals and operates a fleet of 127 Boeing 737 aircraft, delivering Brazil's top on-time performance and an industry leading 20-year safety record. GOL has invested billions of Reais in facilities, products and services and technology to enhance the customer experience in the air and on the ground. GOL's shares are traded on the NYSE (GOL) and the B3 (GOLL4). For further information, www.voegol.com.br/ir.” 

São Paulo, September 15, 2021 - GOL Linhas Aéreas Inteligentes S.A. (NYSE: GOL and B3: GOLL4), (“GOL” or “Company”), Brazil’s largest airline, has agreed to expand its commercial cooperation with American Airlines Group Inc. (NASDAQ: AAL) (“American”) through an exclusive codeshare agreement (“Agreement”) for the next three years that will deepen the relationship between the two airlines. As part of the Agreement, GOL will receive an equity investment of US$200 million (R$1.05 billion) from American.  

Through its exclusivity, the Agreement expands beyond the terms of the existing codeshare partnership between GOL and American, enhancing the travel opportunities for their passengers, the customer experience and the competitive position of GOL on routes connecting North and South America. In place since February 2020, the existing codeshare already represented the largest route network in the Americas, enabling the Company’s customers to travel seamlessly to more than 30 destinations in the U.S. The partnership flights currently operate in GOL’s hubs in São Paulo (GRU) and Rio de Janeiro (GIG), integrating 34 options of Brazilian and international routes, such as Montevideo, in Uruguay.  

The completion of the Agreement and equity investment is subject to conditions, including the execution and delivery of definitive documentation and other customary closing conditions.  

Exclusive Codeshare  

“The exclusive codeshare agreement between two of the leading airlines in the Americas combines highly complementary route networks to offer customers a superior travel experience, due to the largest number of flights and destinations in North and South America,” said GOL CEO Paulo Kakinoff. “We believe that this will bolster GOL’s presence in international markets, accelerate our long-term growth, and maximize value for our shareholders. It adds to our confidence in the Company’s growth as the economy reopens and travel demand increases.”  

GOL’s network services 63 destinations in Brazil as well as 140 international through codeshare agreements. The Company recently confirmed that Cancun (Mexico) and Punta Cana (Dominican Republic) will be its first international routes to reopen since the beginning of the Covid-19 pandemic. GOL will begin to operate flights on those routes by mid-November 2021.  

Over the last 10 years, American has flown more than 14 million passengers between Brazil and the U.S., representing more than twice as much traffic as the next largest U.S. carrier. The combination of GOL’s leading network in Brazil and American’s leadership in the U.S.–Brazil market will maximize revenues through the increased connectivity and improved route options for Customers.  

American Airlines President, Robert Isom, stated: “American has long been the leading U.S. carrier to South America and our exclusive partnership with GOL solidifies that leadership position. Our long-haul network marries seamlessly with GOL’s strong domestic network in Brazil and together, we will be able to offer customers flying to, through and from Brazil, access to the largest network with the lowest fares and the Americas’ biggest and best joint travel loyalty program.”  

GOL’s Smiles and American’s AAdvantage loyalty programs will be partners in the largest frequent flyer program in the Americas with enhanced benefits coming in early 2022. This will include access for loyalty members to several benefits such as priority check-in, priority security, priority boarding, a larger checked baggage allowance, lounge access and preferred seats on both airlines. Customers may earn and redeem frequent flyer miles on both airlines.

The partnership between GOL and American also enables Customers to purchase connecting flights on both airlines using one reservation, in addition to creating a seamless ticketing, check-in, boarding and baggage check experience throughout an entire journey. 

Equity Investment  

American will invest US$200 million in 22.2 million newly issued preferred shares of GOL in a capital increase, for a 5.2% participation in the Company’s economic interest at a price of US$9.00 per preferred share (“PN” or “GOLL4”), equivalent to R$47.03 per PN as of 9/14/21 BRL/USD exchange rate. GOLL4’s closing price on 9/14/21 and average trading price during the second semester of 2019 were R$19.28 and R$35.68, respectively.  

Richard Lark, GOL’s CFO added: “The investment represents recognition by a major U.S. airline carrier of the Company’s value as the largest airline in Brazil with the best product. Further, the investment, when combined with the R$2.7 billion of long-term capital raised in 2Q21, brings the total long-term capital raised to over R$3.7 billion in the last six months, including over R$2.0 billion of new equity capital. This additional liquidity further enhances GOL’s financial flexibility while minimizing dilution to shareholders.” 

All holders of the Company’s preferred shares, including in the form of ADRs, will be able to exercise their preemptive rights to subscribe for a portion of the newly issued shares proportionate to their existing shareholdings.  

The detailed terms and conditions of the capital increase are expected to be approved by the Board of Directors of GOL and disclosed in due course, including the final amount in Brazilian reais of the capital increase, issuance price, the record date, and the periods and procedures for the exercise of preemptive rights by the shareholders of the Company.  

The equity investment described herein is subject to certain terms and conditions set forth in a letter of intent and a term sheet entered into on the date hereof between GOL and American. The right to proportionally subscribe for preferred shares according to the preemptive rights referred to in this release has not been registered with the U.S. Securities and Exchange Commission and will not be offered or extended absent registration or an applicable exemption from registration requirements. 

São Paulo, September 1, 2021 - GOL Linhas Aéreas Inteligentes S.A. (“GOL” or “Company”), (NYSE: GOL and B3: GOLL4), under the Article 12 of CVM Instruction 358/2002, hereby in forms its shareholders as well as the market that Capital International Investors (“CII”), the independent investment division of Capital Research and Management Company, a company under the laws of the USA, headquartered at 333, South Hope Street, Los Angeles, California 90071, United States of America, having JP Morgan SA Distribuidora de Títulos e Valores Mobiliarios, registered under CNPJ/ME nº 33.851.205/0001-30 and Citibank Distribuidora de Títulos e Valores Mobiliários S.A, registered under CNPJ/ME nº 33.868.597/0001-40, as legal representatives in Brazil, has increased its interest in preferred shares ("PN Shares") and American Depositary Receipts ("ADRs") representing PN Shares issued by the Company.  CII held 15,390,994 of the Company's PN Shares, corresponding to 4.90% and now it holds 17,500,994 of the Company's PN Shares and ADRs, equivalent to 5.57%. This is a minority investment that does not change the capital stock of the Company's control or management structure. The original release is available on the following address: www.voegol.com.br/ir.

Biden Administration Lists 21 Countries (17 In Western Hemisphere) As "Major Drug Transit Or Major Illicit Drug Producing" And Cuba Is Not On The List

The White House
Washington DC
15 September 2021

Presidential Determination No. 2021-13

MEMORANDUM FOR THE SECRETARY OF STATE

SUBJECT: Presidential Determination on Major Drug Transit or Major Illicit Drug Producing Countries for Fiscal Year 2022

By the authority vested in me as President by the Constitution and the laws of the United States, including section 706(1) of the Foreign Relations Authorization Act, Fiscal Year 2003 (Public Law 107-228) (FRAA), I hereby identify the following countries as major drug transit or major illicit drug producing countries: Afghanistan, The Bahamas, Belize, Bolivia, Burma, Colombia, Costa Rica, the Dominican Republic, Ecuador, El Salvador, Guatemala, Haiti, Honduras, India, Jamaica, Laos, Mexico, Nicaragua, Pakistan, Panama, Peru, and Venezuela.

A country's presence on the foregoing list is neither a reflection of its government's counterdrug efforts nor level of cooperation with the United States. Consistent with the statutory definition of a major drug transit or major illicit drug producing country set forth in section 481(e)(2) and (5) of the Foreign Assistance Act of 1961, as amended (Public Law 87-195) (FAA), the reason countries are placed on the list is the combination of geographic, commercial, and economic factors that allow drugs to be transited or produced, even if a government has engaged in robust and diligent narcotics control and law enforcement measures.

Pursuant to section 706(2)(A) of the FRAA, I hereby designate Bolivia and Venezuela as having failed demonstrably to make substantial efforts during the previous 12 months to both adhere to their obligations under international counternarcotics agreements and to take the measures required by section 489(a)(1) of the FAA. Included with this determination are justifications for the designations of Bolivia and Venezuela, as required by section 706(2)(B) of the FRAA. I have also determined, in accordance with provisions of section 706(3)(A) of the FRAA, that United States programs that support Bolivia and Venezuela are vital to the national interests of the United States.

The ongoing drug addiction and overdose epidemic in the United States is one of the foremost public health priorities of my Administration, and addressing this epidemic will require both new domestic investments and greater cooperation with foreign partners to target illicit drug suppliers and the criminal organizations that profit from them. While creating our first-year drug policy priorities, my Administration outlined a strategy that includes expanding access to prevention, treatment, evidence-based harm reduction, and recovery support services in order to curb the drug addiction and overdose epidemic. The American Rescue Plan Act of 2021 is an investment in these priorities, committing nearly $4 billion to support behavioral health and substance use disorder programs.

My Administration's Fiscal Year 2022 Budget request itemizes $10.7 billion to support research, prevention, treatment, evidence-based harm reduction, and recovery support services, with targeted investments to meet the needs of populations at greatest risk for overdose and substance use disorder. The Budget request also includes significant investments to reduce the supply of illicit drugs originating from beyond our borders.

The United States is committed to working together with the countries of the Western Hemisphere as neighbors and partners to meet our shared challenges of drug trafficking and use. My Administration will seek to expand cooperation with key partners, such as Mexico and Colombia, to shape a collective and comprehensive response and expand efforts to address the production and trafficking of dangerous synthetic drugs that are responsible for many of our overdose deaths, particularly fentanyl, fentanyl analogues, and methamphetamine. In Mexico, we must continue to work together to intensify efforts to dismantle transnational criminal organizations and their networks, increase prosecutions of criminal leaders and facilitators, and strengthen efforts to seize illicit assets. In Bolivia, I encourage the government to take additional steps to safeguard the country's licit coca markets from criminal exploitation and reduce illicit coca cultivation that continues to exceed legal limits under Bolivia's domestic laws for medicinal and traditional use. In addition, the United States will look to expand cooperation with China, India, and other chemical source countries in order to disrupt the global flow of synthetic drugs and their precursor chemicals.

You are authorized and directed to submit this designation, with the Bolivia and Venezuela memoranda of justification, under section 706 of the FRAA, to the Congress, and to publish this determination in the Federal Register.

JOSEPH R. BIDEN JR.