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Settlement of U.S. Claims Against Cuba Unlikely As Long As Fidel Stays

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Settlement of U.S. Claims Against Cuba Unlikely As Long As Fidel Stays Vol. 13, No. 2 February 2005 www.cubanews.com In the News Settlement of U.S. claims against Cuba Hypocrisy in Geneva? unlikely as long as Fidel stays in power Latin nations elect Cuba to crucial seat on BY ANA RADELAT other nations whose citizens and companies lost UN human rights panel ................Page 3 oomfuls of files at a government storage property to the revolution, sometimes in barter facility in Suitland, Md., tell the story of arrangements or for just cents on the dollar. On the right track R the 5,911 certified U.S. property claims But there has never been a serious attempt to settle the U.S. claims, which dwarf those of Cuba’s global strategy is paying off, says against Cuba — all of which are awaiting some political change in Havana that might settle a 45- other countries. In fact, the total settlement of Lexington Institute study .............Page 4 year-old score. Cuba’s claims with France, Great Britain, Switz- The claims, ranging in value from hundreds erland, Spain and Canada doesn’t even amount Rx for Paraguay of millions of dollars to a few thousand, were to 5% of the value of U.S. claims (see our inter- 70 Cuban doctors make a big difference filed by Americans after Congress established a view with Mauricio J. Tamargo, chairman of the Foreign Claims Settlement Commission, page 8). in isolated Paraguay — once Fidel’s worst Cuban claims program in 1964. That program allows Washington to negotiate compensation More than 80% of the total amount in U.S. adversary in South America .........Page 6 for U.S. properties that were seized by the Cas- claims involve commercial land or debts. Valued tro regime in the early years of the revolution. at around $1.8 billion when they were first cer- Ties with Tehran Castro’s confiscations — provoked partly by tified, the claims are today worth nearly $7 bil- lion when aggregate interest is factored in. Castro asks Iran for help with everything the Kennedy administration’s decision to stop purchasing most of the Cuban sugar crop — is Some of the largest U.S. claimants include from irrigation to banking ............Page 7 at the root of the U.S. trade embargo against Fortune 500 firms such as Boise Cascade, Coca- Cuba. The confiscations were also a major rea- Cola Co., Borden Foods, Navistar International Newsmakers son Washington severed diplomatic relations and Colgate-Palmolive. CubaNews talks to Mauricio J. Tamargo, with Cuba in 1961. Siboney Corp., a St. Louis-based publisher of Cuban-born chief of the Foreign Claims Cuba has settled its property claims with See Claims,page 2 Settlement Commission ................Page 8 Sanctions expertise Senate considers bipartisan bill aimed Washington law firm hires former OFAC official Steven Pinter ...................Page 10 at promoting U.S. food exports to Cuba Food prices rising BY LARRY LUXNER I authorizes the issuance of a general license ashington lawmakers have introduced for U.S. agricultural producers to travel to Cuba Cheap dollar pushes up food bill; Cuba re- a bill to expand the sale of U.S. farm to sell, market and finalize any sales or trade sumes Canadian beef imports ...Page 11 Wproducts to Cuba, and observers say it agreements — in much the same way journal- enjoys a reasonably good chance of passing. ists are now free to travel to Cuba without a spe- Business briefs The Agricultural Products Export Facilitation cific license from the Treasury Department’s Office of Foreign Assets Control (OFAC). More headaches for potential investors; Act of 2005 — announced Feb. 9, just as this issue of CubaNews was going to press — clari- I authorizes Cuba to make direct payments China’s Sinopec inks oil deal .....Page 12 fies Congressional intent on an earlier piece of to U.S. banks. Currently, Cuban food purchas- legislation, the Trade Sanctions Reform and ing agency Alimport is forced to use European One final road trip Export Enhancement Act of 2000 (TSRA). banks for transactions, which often add up to 5% of the overall price. Veteran Dallas Morning News correspon- The new bill, introduced by Sen. Larry Craig (R-ID), Max Baucus (D-MT), Pat Roberts (R- I repeals Section 211 in order to protect U.S. dent Tracey Eaton shares impressions of KS), Richard Lugar (R-IN) and about 20 other trademarks registered in Cuba, and bring the everyday life in Cuba ..................Page 14 co-sponsors, mostly from farm states, contains United States back into compliance with the In- the five following provisions: ter-American Convention and WTO obligations. I CubaNews (ISSN 1073-7715) is published monthly I clarifies Congress’ intent to legally sell farm urges the need for the “expeditious by Luxner News Inc. © 2005. All rights reserved. goods, as authorized by TSRA, by defining issuance” of temporary visas to Cuban nationals Subscriptions: $429/year. For subscription or edito- “cash payment in advance” as receipt of pay- who, pursuant to TSRA-authorized purchasing rial inquiries, call us at (301) 365-1745, send a fax to activities, must inspect certain products such as (301) 365-1829 or e-mail us at [email protected]. ment before transfer of title and release of phys- ical control of goods to the Cuban government. See TSRA, page 3 2 CubaNews ❖ February 2005 and Cuba have blocked any chance of settle- isn’t interested in settling U.S. claims. Claims — FROM PAGE 1 ment. In addition, the U.S. embargo imposes “Inasmuch as the Cuban government’s pol- educational software, is No. 80 on the list, several roadblocks for U.S. companies that icy is not to negotiate with U.S. citizens, there with a claim of $2.45 million against the may want to settle their claims against the is no precedent or existing licensing policy Castro regime. Castro regime. pertaining to this matter,” he said. At the time of its expropriation, Siboney Mauricio Tamargo, chairman of the For- The 1996 Helms-Burton Act — which was was in the oil prospecting business — having eign Claims Settlement Commission, which aimed at discouraging foreign investment in been formed in 1955 by investment banker Cuba — set as a condition for lifting the U.S. Jerome Tegeler through the purchase of TOP 50 CERTIFIED CLAIMS* embargo the requirement that Cuba makes seven Cuban oil exploration companies. “demonstrable progress in returning to U.S. COMPANY VALUE citizens (and entities which were 50% or more SEIZED OIL FIELDS AND SUGAR PLANTATIONS 1. Cuban Electric Co. $267.6 beneficially owned by U.S. citizens) property Tegeler’s son, Timothy J. Tegeler, says 2. North American Sugar Industries 97.4 taken by the Cuban government from such “there’s not much we can do” to assert its 3. Moa Bay Mining Co. 88.3 citizens and entities …” claim, except to keep the pressure on U.S. 4. United Fruit Sugar Co. 85.1 STATUS OFCLAIMS IN A POST-CASTRO CUBA officials not to normalize relations with Ha- 5. West Indies Sugar Corp. 84.9 vana until the claims issue is looked into. 6. American Sugar Co. 81.0 The Commission for Assistance to a Free “We would hope that if Cuba returns to a 7. ITT Corp. — Trustee 80.0 Cuba, the interagency panel that made a democracy or re-establishes diplomatic rela- 8. Standard Oil Co. 71.6 series of proposals to President Bush last tions with the United States, that somehow 9. Francisco Sugar Co. 58.5 year, also said settling the U.S. claims would these claims would be addressed,” he told 10. Int’l Telephone & Telegraph 50.7 be critical to the U.S. recognition of a post- CubaNews. 11. Texaco Inc. 50.1 Castro government. Tegeler added: “Those companies [which 12. Manati Sugar Co. But Tamargo warned that the process of 48.6 settling claims won’t be easy, because there have since signed oil exploration concessions 13. Bangor Punta Corp. 39.2 with the Castro regime] will have to face the are multiple claimants for some properties, a 14. Nicaro Nickel Co. 33.0 wide array of different types of claims and for- consequences of having purchased damaged 15. Coca-Cola Co. 27.5 goods. How can they get clear title to it when eign companies operating through joint ven- 16. Lone Star Cement Corp. 24.9 tures with the Cuban government on expro- they know these properties were illegally 17. New Tuinucu Sugar Co. Inc. 23.3 seized?” priated properties. That’s also a concern for Boston stockbro- 18. Colgate-Palmolive Co. 14.5 Tamargo told CubaNews that it will be im- ker William Claflin. He represents the heirs to 19. Braga Brothers Inc. 12.6 portant to establish a process to settle com- his grandmother, Helen Claflin, who owned a 20. Boise Cascade Corp. 11.7 mercial property claims “without disrupting sugar plantation in Cienfuegos that was con- 21. American Brands Inc. 11.7 jobs and distribution systems” in Cuba. fiscated by the Castro regime in 1960. The 22. West India Co. 11.5 Tamargo also said that the fate of joint ven- Foreign Claims Settlement Commission has 23. Atlantic Richfield Co. 10.2 tures between foreign governments and the certified the family’s claim at $12 million. 24. Burrus Mills Inc. 9.8 Castro government should be addressed by “I understand that a European company is 25. Pan-American Life Insurance Co. 9.7 any future Cuban government so that there is operating a large cement factory on what was 26. United States Rubber Co. Ltd. 9.5 a “smooth titling” of those properties. our sugar plantation,” Claflin told CubaNews. 27. William A. Powe 9.5 TITLE III WAIVED IN THE ‘NATIONAL INTEREST’ “I hope that someone in the State Department 28.
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