Volume 8 Number 9 A Target Research Publication September 2000 Officials said concerns about the impact of U.S. Relations Real Estate the booming sector on society and a lack of a legal framework governing real estate US pressures Cuba to Real estate projects prompted the decision. There also were growing complaints from ordinary Cubans the negotiating table reportedly moving about the fairness of investing tens of Ana Radelat forward after May halt millions of dollars in housing and office WASHINGTON — After harshly HAVANA — Despite a decision earlier projects aimed at foreign investors at a time condemning Cuba for its migration policy this year to halt most foreign investment in when there is an acute shortage of housing and denying travel visas to one of Fidel the real estate sector, sources in Cuba say in Cuba. Castro’s top officials, the United States construction on a number of projects is At the time, many developers and some managed to persuade Havana to restart continuing and there are reports that government officials said the decision to stalled migration talks. negotiations for new ventures are under- halt new projects would have little long- US and Cuban negotiators plan to meet way. term impact and it now appears they were in New York on Sept. 21 to air grievances The government in May announced right. from both sides concerning migration that it was suspending all new joint Industry sources say construction of the matters. The US delegation to the talks will ventures in real estate and planned to buy Fifth-Avenue Gardens, a joint venture be headed by Bill Brownfield, deputy out foreign partners in existing projects. Continued on page 5 assistant secretary for Western Hemisphere affairs. The agreement to meet for another Inside This Issue of CubaNews round of migration talks comes after months of steadily increasing Cuban protests of a US policy that allows most US, Cuba clash over migration policy Sol Melia increases dominance Cubans who reach US soil to remain. The United States engaged Cuba in a The purchase of the Tryp hotel chain Havana also condemns the 1966 Cuban fight over immigration policy in August by Spain’s Sol Melia gives Cuba’s largest Adjustment Act, which allows Cubans and wrested a promise from Havana to foreign operator and even greater role in immigrants who have lived in the United restartINSIDE stalled migration talks. the country’s tourism sector. States for at least a year and a day to apply See US Relations on Page 3. See Tourism on Page 7. for residency. Cuban President Fidel Castro has said Habanos to maximize profits Cuba, China expand ties the “killer law” draws countless Cubans – Officials at Cuban state cigar company including the mother of Elian Gonzalez – to The government of Cuba and China have Habanos S.A. say the company is shifting its developed broad economic ties in recent their deaths in the Florida Straits. If all priorities away from a rapid expansion of arriving Cubans were repatriated back to the years but efforts to create a political alliance production and toward a focus on maximizing have not been as successful island, the temptation for Cubans to flee revenues. would evaporate, Cuban officials argue. See Diplomacy on Page 10. Since Elian Gonzalez’s return to Cuba in See Tobacco on Page 5. Cuba exported oil in 1999 June, Castro has stepped up his criticism of Keys becoming tourism center the Cuban Adjustment Act and Havana has Despite a continued shortage of oil and held rallies and protests to condemn the US With more than 2,600 rooms, the Jardines del Rey tourist hub has become fuels on the island, Cuba last year exported law. millions of dollars worth of crude. At the The United States engaged Cuba in this the third most important tourist destina- tion in Cuba after Havana and Varadero. same time, Cuba imposed measures fight over migration matters when the State intended to reduce fuel consumption. See Tourism on Page 6. See Tourism on Page 6. Continued on page 2 Migration talks... for Cuban-American voters in Florida. In return for a promise to police Cuban Cuba’s response to the State Department waters to prevent the departure of new Continued from page 1 called the State Department’s criticisms waves of rafters, Washington agreed to issue Department on Aug. 28 sent tough “publicity stunt that suspiciously coincides 20,000 immigrant visas to eligible Cubans diplomatic notes to Cuba’s foreign ministry with visits to Miami by presidential every year. Moreover, the United States and to Fernando Remirez, head of the candidates, who compete for campaign promised to send back to Cuba all migrants Cuban Interests Section in Washington, funds and votes from the terrorist Cuban- intercepted at sea who do not have grounds charging that Cuba has denied legal exit to American mafia.” for an asylum claim. “a large and growing number of Cubans But the State Department official Before Cuba agreed to meet for citizens.” insisted that frustration over Cuba’s migration talks next week, in another hard- The notes said 117 Cubans from 57 indefinite postponement of bilateral line move against Havana, the State families had been denied exit permits by the migration talks prompted the harsh Department refused to give Ricardo Cuban government in a recent 75-day diplomatic scolding. Alarcon, head of Cuba’s national assembly, a period. All had been granted visas to migrate Saying the then-unresolved case of visa to travel to New York for an interna- to the United States. shipwreck victim Elian Gonzalez poisoned tional meeting of parliamentary leaders The diplomatic notes also accused Cuba the atmosphere for negotiations, Havana at scheduled just before the United Nation’s of denying exit permits routinely to the the last minute canceled talks scheduled in annual meeting of the general assembly, families of Cubans who defect to the United New York in June and postponed future which began Sept. 6. Alarcon usually heads States. “The Cuban government is punish- talks indefinitely. The last migration talks, the Cuban delegation at migration talks and ing entire families, including small children, held in December in Havana, were deemed will do so in the next round. for the action of one family member,” it unproductive by both Havana and Wash- Alarcon led Cuba’s U.N. delegation said. ington. from 1966-1978 and again from 1990-199s The State Department’s rebuke also said But three days after receiving the State and has often traveled back to New York to that fees charged by the Cuban government Department’s message, Cuba, in a lengthy attend U.N. functions. But the meeting of to visa holders, for passports, exit permits note to the agency, said it agreed to resume parliamentary leaders was not an official and compulsory medical exams, pose the talks. “Set a date, the most convenient U.N. gathering, the State Department another barrier to legal emigration. The for you, and the Cuban delegation will be maintained. Srdja Bozovic, president of the combined fees usually total more than $500 there,” Cuba’s note said. Yugoslav legislature, was also denied a visa per person. Biannual talks between Havana and under a law that forbids entry if a visit is Cuba countered that more than 100,000 Washington, the highest-ranking diplomatic considered contrary to the interests of the Cubans had been granted exit visas to the meetings between the two nations, have United States. United States since 1994. A State Depart- alternated between New York and Havana Alarcon’s personal assistant, Alberto ment official conceded that figure “sounded since Cuba and the United States signed Gonzalez Rodriguez, was also denied a visa, correct,” but that the blocking of “even one migration accords in 1994 and 1995. The but two, less senior members of Cuba’s legal departure” was unacceptable. accords were reached after a flood of 35,000 national assembly were given travel permits. Anti-Castro rhetoric usually flares in Cuban rafters tried to reach US shores in the Alarcon said the US move showed presidential election years as both parties vie summer of 1994. contempt for him and the parliamentary organization. CUBANEWS is published 12 times per Customer Service: “We have authorized issuance of visas to year by Target Research, L.L.C., © 2000. P.O. Box 19690 some Cuban officials…and determined not Alexandria, VA 22320 Contents may not be reproduced, to issue visas to some people who had republished or stored in electronic retrieval Phone (800) 376-3324 or (703) 684-4317 systems by any means without prior written Fax (703) 684-4059 applied,” said State Department spokeman permission of the publisher. Violators risk Editorial Offices: Philip Reeker. criminal charges and civil fines of up to Ironically, Cuba is slated host the next $20,000 per offense. 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