Vol. 17, No. 9 October 2009 www.cubanews.com In the News New travel, trade, telecom regulations How far can he go? benefit Cuban exiles — but few others GAO finds that White House still has wide BY ANA RADELAT restrictions on Cuban-American travel – which discretion to bend the rules .........Page 3 resident Obama’s first foray into U.S.-Cuba were restricted to one trip every three years and policy is creating a two-tiered system — only to visit immediate family members — so 3 mega-projects P one for Cuban-Americans and a second for exiles could travel to Cuba once a year. all other U.S. citizens. The president now has now liberalized Water works aimed at alleviating floods, The administration’s long-awaited implemen- Cuban-American travel even further. drought in eastern Cuba ...............Page 4 tation of his Apr. 13 announcement that he’d Exiles can now send unlimited amounts of relax some embargo rules eliminated barriers money to Cuban nationals who are even remote- Political briefs for exiles who want to visit relatives in Cuba or ly related to them, opening the way for exiles to send them money. lawfully fund businesses in Cuba. Previous reg- Luís Posada spied on Cuban exile groups; But new regulations related to telecommuni- ulations limited such remittances to $300 every Wilhelm, Simmons settle suit ......Page 5 cations, trade, direct mail service and agricul- three months. tural sales are likely to provide only limited “We didn’t expect [the new regulations] to be opportunities because of restrictions and resist- as broad,” said José “Pepe” Hernández, co- Obama’s ‘new beginning’ ance from Havana. founder and president of the Miami-based White House must streamline efforts to The new regulations, unveiled Sept. 3, allow Cuban American National Foundation, who wel- improve U.S.-Cuba relations ........Page 6 exiles to visit “close relatives” in Cuba, defined comes the changes. “As far as Cuban-to-Cuban broadly to include even the cousins of an exile’s interaction, more is better.” grandparents. Exiles can now travel to Cuba as But Sen. Bob Menendez (D-NJ), a champion Newsmakers many times as they wish and stay there as long of the embargo, opposed the liberalization of New Mexico’s Gov. Bill Richardson talks as they want. remittance rules, said the senator’s press secre- exclusively to CubaNews about his recent In March, Obama lifted Bush administration See Regulations, page 2 three-day visit to Havana ..............Page 8 Critics: State Department terrorist list, Manzanillo & Baracoa Two small — yet very different — airports which targets Cuba, ‘reeks of hypocrisy’ on opposite ends of Cuba ...........Page 10 BY LARRY LUXNER financed from secret bunkers in Damascus, Business briefs n Dec. 29, 1979, the State Department Havana, Khartoum and Tehran. For example, North Korea is no longer on the Cuban drug undergoes U.S. clinical trials; released its “state sponsors of terrorism” Oblacklist for the first time. All four coun- list, even though it still pursues nuclear wea- China to build Havana hotel .......Page 12 tries singled out were radical Arab “rogue” pons in violation of numerous UN resolutions. nations: Iraq, Libya, South Yemen and Syria. And Pakistan, home of Dr. Abdul Qadeer Bookshelf Today, nearly 30 years later, only one of the Khan — widely believed to have supervised a clandestine international network of nuclear Cuban Landscapes; Cuba in the Shadow of original four, Syria, remains on that list, along with three other bad boys: Cuba (added in weapons proliferation involving Libya, Iran and Change and Road to Havana ......Page 14 1982), Iran (1984) and Sudan (1993). North Korea — was never on the list to begin South Yemen came off the list in 1990 after it with, perhaps because from the beginning Isla- DVD or not to be? merged with the Yemen Arab Republic, Iraq was mabad has been an ally in Washington’s highly publicized war on terror. Possible video of Juanes concert in Hav- dropped following the U.S. invasion of 2003, and Libya was quietly removed in 2006 after Col. “I think the idea of identifying countries in- ana raises U.S. legal issues ........Page 15 Muammar Qaddafi renounced terrorism and volved in terrorist actions against other coun- weapons of mass destruction. tries does make sense,” said Wayne Smith, sen- CubaNews (ISSN 1073-7715) is published monthly But critics charge that the list “reeks with ior fellow at the Center for International Policy by Luxner News Inc. © 2009. All rights reserved. hypocrisy,” saying it has less to do with reality and former chief of the U.S. Interests Section in Subscriptions: $429 for one year, $800 for two years. and more to do with political expediency. Havana. “But when some nations are on the list For editorial inquires, please call (301) 452-1105 and there’s no evidence at all to support them or send an e-mail to: [email protected]. After all, it’s highly doubtful that the whole world’s terrorist acts are all planned and See Blacklist, page 7 2 CubaNews ❖ October 2009 Another obstacle to trade is the political Most U.S. telecom and computer compa- Regulations — FROM PAGE 1 component of the Obama initiative. nies contacted for this article — including tary, Afshin Mohamadi. Menendez is con- The administration said the purpose of the AT&T and Microsoft — had no comment on cerned the new flow of dollars to Cuba will new regulations is to “promote democracy the issue. Neither did the Telecommunica- strengthen its economy. and human rights” and called them a continu- tions Industry Association. While the White House did not heed ation of the embargo-tightening 1992 Cuban Verizon spokeswoman Marta Mandala said Menendez on the remittance issue, the Democracy Act’s goal of destabilizing the her company is still reviewing the regula- Cuban-born senator was assured by the Cuban government through the free flow of tions. But former AT&T executive Jorge administration that a new regulation concern- information. Escalona, a telecom expert and founder of ing U.S. farmers hoping to travel to Cuba The new telecom regulations: Enlasis Consulting, calls the rules a “huge won’t make those trips much easier. ■ authorize payments to Cuba to provide step” toward opening the Cuban market. Congressional supporters of the measure telephone, including wireless telephone, serv- Escalona believes the greatest opportuni- wanted U.S. farmers and medical salesmen to ice to individuals on the island. ties will be found in new cellular phone serv- have unrestricted access to the island under a ■ authorize the provision of satellite radio, ice, notng that the new regulations, for the Internet and television service to Cuba. first time, let Cuban-Americans buy mobile “general license” from the Treasury Depart- ■ ment instead of having to apply for a new authorize the establishment of facilities phones for relatives in Cuba and arrange for license each time they wanted to visit Cuba. to provide fiberoptic cable and satellite serv- U.S. companies to provide that service. ices in Cuba. But the new regulations, limited to those ■ He said ETECSA and Cubacel, the compa- who “regularly employed by a producer or authorize telecom executives and sales- ny’s wireless subsidiary, “would be open to distributor of agricultural or medical items,” people to travel to Cuba in search of business discussing” the opportunity to earn new require qualified travelers to send written re- opportunities and to attend trade shows and income through roaming agreements. ports to Treasury’s Office of Foreign Assets professional meetings. Carlos Saladrigas, co-founder of the Cuba Control (OFAC) “describing the purpose and Robert Muse, a Washington-based attorney Study Group, said “we need to find ways to scope of such travel” at least 14 days before who specializes in Cuba issues, said the move to liberalize telecom rules are “fraught with actually get equipment into Cuba to expand making a trip. its telecom infrastructure. The rules still don’t Within 14 days after returning to the historical tensions” exemplified by Cuba’s battle against U.S. government broadcasts of allow for direct investment, and until they do, United States, travelers under the new gener- we’re not really improving telecom there.” al license must send OFAC another report, Radio and TV Martí. “Given the contentiousness of the issue of Saladrigas added: “My only fear is that the describing all business activities conducted, administration is falling into the trap of condi- people with whom they met in the course of broadcasting, this is just a very odd place to begin an opening to Cuba,” said Muse. tionality. This is tantamount to giving Cuba such activities and all expenses incurred. veto power over our actions, and that is not in In addition, U.S. representatives of agricul- There are other obstacles to U.S.-Cuba tele- com trade. our best interests.” tural and medical companies must make sure Tomas Bilbao, the group’s executive direc- their free time in Cuba doesn’t exceed what it The Cuban Democracy Act prohibits in- vestment by any U.S. company in Cuba’s tor, said Obama’s initiative is a positive step — would be if they were working a 40-hour work but that he had hoped for quicker action and week and must keep all receipts and docu- domestic telecom network. That means U.S. companies can’t provide equipment, techno- fewer restrictions. Bilbao told CubaNews “the ments from their trips in case OFAC wants to logical expertise or services to ETECSA, U.S. government has to get out of the busi- examine them. Cuba’s state telecom monopoly. ness of micromanaging Cuba’s transition.” ❑ “The paperwork has always been cumber- some and I’m not sure it’s changed all that much,” said Jake Colvin, vice-president of the National Foreign Trade Council.