A sampling of some United States-based companies and their direct and indirect commercial relationships with non-United States-based companies that have commercial relationships with entities within the Republic of Cuba; and United States-based companies and their direct and indirect commercial relationships with entities within the Republic of Cuba; and other commercial relationships and commercially-relevant matters.

MERRILL LYNCH HSBC PERMITS EQUITY PURCHASES IN COMPANIES WITH CUBA PRESENCE- New York City, New York-based Merrill Lynch & Co., Inc. (2000 assets managed exceed US$1.8 trillion) and London, United Kingdom-based HSBC Holdings plc (1999 assets exceeded US$400 billion) have established a 50%-50%, US$1 billion partnership to “create the first global online banking and investment services company.  The company will serve individual customers across the world except in the United States….”  The partnership, thus far referred to as Merrill Lynch HSBC, will have its headquarters in London, United Kingdom.  However, Merrill Lynch HSBC has commenced operations in Canada and has client service centers located in the cities of Toronto, Montreal, and Vancouver.  Customers may purchase stocks, bonds, securities, mutual funds, placements, etc., listed in Canada, the United States, and Hong Kong among other countries.  Merrill Lynch & Co., Inc., will thus receive revenues from customer transactions in Canada-based companies (and eventually companies in other countries).
 

In 1998, Merrill Lynch & Co, Inc. purchased Toronto, Canada-based Midland Walwyn Capital, Inc., one of the last major independent brokerages in Canada.  Midland Walwyn Capital, with a then market value of approximately US$700 million, had 1,800 employees distributed amongst 170 branches throughout Canada and other countries.  Information provided by Midland Walwyn Capital is distributed within the United States by a subsidiary, Midland Walwyn Capital Corporation.  Midland Walwyn Capital reported that the company had “undertaken an underwriting liability or has provided advice for a fee with respect to the securities of” Toronto, Canada-based Sherritt International Corporation.  Midland Walwyn Capital also reported that “its directors and/or employees may from time to time have a position in the securities” of Sherritt International Corporation.

The Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C., authorizes companies subject to United States law to have non-controlling investments in third country companies that have commercial activities within the Republic of Cuba provided that the investments do not result in control in fact of the third country company and provided that a majority of the revenues of the third country company are not produced from commercial activities within the Republic of Cuba [OFAC 4 March 1994].  Some Canada-based companies with Republic of Cuba-related commercial activities include:
 

1) Mississauga, Ontario, Canada-based York Medical Inc., a licensing and development company established for the purpose of commercializing innovative life-sciences products and technologies.  The company is actively seeking to in-license complementary products and technologies in oncology.  All products in development by York Medical are available to be licensed for the major world markets.  In April 2000, York Medical Inc., reported that the European Patent Office granted a patent on one of the products licensed by York Medical, Inc., from Republic of Cuba government-operated Centro de Inmunologia Molecular (Molecular Immunology Center (CIM).  The Washington, D.C.-based United States Patent and Trade Mark Office issued a Patent on the humanized and chimeric version of this monoclonal antibody (MAb) in 1999.   York Medical is developing a family of oncology products based on this monoclonal antibody targeting solid tumors including head, neck, breast and lung.  These humanized monoclonal antibody products were originally developed by CIM and are currently in various stages of clinical evaluation within the Republic of Cuba.  Dr. Agustin Lage, Director of CIM, is a member of the Board of Directors of York Medical Inc.  Dr. Lage is the brother of H.E. Dr. Carlos Lage, a Vice President of the Council of State of the Republic of Cuba and Executive Secretary of the Council of Ministers of the Republic of Cuba.  For information, contact York Medical at telephone (905) 629-9761; Facsimile (905) 629-4959; E-mail: dallan@yorkmedical.on.ca

2) Toronto, Canada-based Sherritt International Corporation (1999 revenues approximately US$260.61 million) which has been sanctioned by the government of the United States under provisions of the 1996 Libertad Act for “trafficking” in an asset (nickel assets located in Moa, Holguin Province, Republic of Cuba) upon which there was a claim certified by the USFCSC.  Sherritt International Corporation has substantial investments within the Republic of Cuba in the nickel, oil, gas, and electricity generation sectors, and smaller investments in communications, tourism, and agricultural sectors.

3) Toronto, Canada-based Visa Gold Explorations, Inc., through its wholly-owned subsidiary, Visa Gold Resources, Inc., which has approval from the government of the Republic of Cuba to recover artifacts and treasure from a specific area located off the coast of the Republic of Cuba.

4) North Vancouver, Canada-based Leisure Canada, Inc., through its North Vancouver, Canada-based Wilton Properties subsidiary, plans to invest approximately US$400 million to develop within the Republic of Cuba hotels, marinas, golf courses, equestrian riding centers, cruise ship facilities, tennis courts, convention centers, health spas, retail facilities, and eco-tourism facilities in through a joint venture with Republic of Cuba government-operated Gran Caribe S.A., one of the three largest Republic of Cuba government-operated tourism companies.  In 1997, then San Francisco, California- based BancAmerica ROBERTSON STEPHENS Investment Management, an investment banking company with assets of US$2 billion specializing in emerging growth companies, purchased a 26.2% (fully diluted) investment in Leisure Canada.  The investment was made through a registered offshore fund, ROBERTSON STEPHENS Orphan Fund, located on Grand Cayman, Cayman Islands.  BancAmerica ROBERTSON STEPHENS Investment Management announced in November 1998 that it was being purchased by a group of investors, which included the company’s original founders.  BancAmerica ROBERTSON STEPHENS has since changed its name to BancBoston Robertson Stephens, Inc., and is a wholly owned subsidiary of Boston, Massachusetts-based FleetBoston Financial.  The Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C. authorizes companies subject to United States law to have a non-controlling investments in third country companies that have commercial activities within the Republic of Cuba provided that the investments do not result in control in fact of the third country company and provided that a majority of the revenues of the third country company are not produced from commercial activities within the Republic of Cuba [OFAC 4 March 1994].  Other investors in Leisure Canada include Paris, France-based Societe General and Paris, France-based LCF Rothschild.  Leisure Canada reports no current revenues from operations within the Republic of Cuba, but expects that within the next two years more than 51% of its revenues will be from operations within the Republic of Cuba.  In February 1999, Leisure Canada, Inc., announced the appointment of Mr. Simon F. Cooper as a member of the Board of Directors.  Mr. Cooper is President of Toronto, Canada-based Marriott Lodging Canada and is Senior Vice President-Lodging, Canada Region for Washington, D.C.-based Marriott International, Inc. (1999 global revenues exceeded US$8 billion).  Undisclosed is whether Mr. Cooper and/or Marriott International, Inc., has now or plans to have a financial interest in Leisure Canada.  Mr. Cooper previously served as President and Chief Operating Officer of Toronto, Canada-based Delta Hotels and Resorts (a subsidiary of Calgary, Alberta, Canada-based Canadian Pacific Limited), which had managed properties within the Republic of Cuba, but in 1998 ceased all activity within the Republic of Cuba.  Leisure Canada and Paris, France-based Meridien Gestion SA (a subsidiary of London, United Kingdom-based Forte Hotels which itself is a subsidiary of London, United Kingdom-based Granada Group Plc) which manages Le Meridien Hotels & Resorts have an agreement to develop the Le Meridien Village in Jibacoa.  Leisure Canada, Inc. and London, United Kingdom-based PGA Golf Management Ltd. (PGAGM) have a joint venture agreement to establish professional golf within the Republic of Cuba by assisting in the organization of amateur golf within the Republic of Cuba through the development of PGA of the United Kingdom and Ireland golf academies to provide for the coaching of amateur golfers and professional golfers and for the training of both amateur golfers and professional golfers.  The joint venture will merchandise the PGA of the United Kingdom and Ireland brand and market media rights.  Established in 1992, PGAGM (which shares a similar name but is not controlled by Palm Beach Gardens, Florida-based PGA of America) is a subsidiary company of the PGA of the United Kingdom and Ireland, the oldest professional golf association in the world.  Ponte Vedra Beach, Florida-based PGA tour is also not affiliated with the PGA of the United Kingdom and Ireland.  The PGA of the United Kingdom and Ireland, and/or the PGA of any other country, the PGA tour in Europe can add a PGA Tour-sanctioned golf tournament within the Republic of Cuba to its tour schedule.  PGAGM provides development, operational and management consultancy to the golf industry.  PGAGM reports that the company has previous experience working within the Republic of Cuba through Europe-based companies.  The final round of the European Challenger Tour was held 28 October 1999 to 31 October 1999 at the Varadero Golf Course.  The Republic of Cuba’s first professional golf championship since 1959 was sponsored by Palma de Mallorca, Spain-based Sol Melia S.A. (1999 revenues US$610 million) which manages fifteen hotels within the Republic of Cuba.  In August 2000, Sol Melia reported that the company was purchasing Madrid, Spain-based Hoteles Tryp which manages four hotels within the Republic of Cuba.  Sol Melia S.A. has an agreement with PGAGM to sponsor at least one tournament annually in Varadero (which currently has the Republic of Cuba’s only 18-hole professional golf course).

5) Toronto, Canada-based Holmer Gold Mines Limited owns 50% of the Loma Hierra silver mine located in Pinar del Rio Province, Republic of Cuba.  The remaining 50% is owned by Republic of Cuba government-operated GeoMinera S.A., which is affiliated with the Ministry of Basic Industry of the Republic of Cuba.  A recently completed feasibility study completed by Holmer Gold Mines Limited on the Loma Hierro silver mine confirmed that the project is economically viable based on an open-pit, vat-leach silver mine.

LEHMAN BROTHERS TO BECOME MAJOR SHAREHOLDER IN PARENT COMPANY OF TELECOM ITALIA- New York City, New York-based Lehman Brothers Holdings Inc. (1999 assets exceeded US$10 billion), a global investment bank, is expected to become a member of the controlling-shareholder syndicate of Ivrea, Italy-based Olivetti S.p.A. (1999 revenues approximately US$27 billion).  Olivetti S.p.A., through a subsidiary, Rome, Italy-based Telecom Italia S.p.A. (1999 revenues approximately US$15 billion), has an interest in a telecommunications joint venture located within the Republic of Cuba.  With a purchase of 3% of the shares of Olivetti S.p.A., Lehman Brothers Holdings Inc. will become the second-largest shareholder in Olivetti S.p.A.  In September 2000, Lehman Brothers Holdings Inc. was one of three “Joint Bookrunning Managers” for a Guaranteed Exchangeable Bond offering by Telecom Italia S.P.A. in the amount of approximately US$2.1 billion.  Also participating as one of the three “Joint Bookrunning Managers” was New York City, New York-based Merrill Lynch International Incorporated (a subsidiary of New York City, New York-based Merrill Lynch & Co., Inc. (1999 assets managed exceeded US$1.5 trillion).
 

The Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C. authorizes companies subject to United States law to have a non-controlling investment in a third country company that has commercial activities within the Republic of Cuba provided that the investment does not result in control in fact of the third country company and provided that a majority of the revenues of the third country company are not produced from commercial activities within the Republic of Cuba. [OFAC 4 March 1994]

Telecom Italia S.p.A. and Republic of Cuba government-operated Empresa Nacional de Telecommunicaciones de Cuba S.A. (ETEC S.A.) are shareholders in a joint venture (ETEC S.A.) which is controlled by the Ministry of Information and Communications of the Republic of Cuba.  ETEC S.A. has a total capital value of US$1.44 billion.  Amsterdam, The Netherlands-based Stet International Netherlands N.V. (a subsidiary of Telecom Italia S.p.A.) has a 29.29% interest in ETEC S.A., valued at US$422.33 million.

In July 1997, then New York City, New York-based ITT Corporation and STET International Netherlands N.V. signed an agreement whereby STET International Netherlands N.V. would pay approximately US$25 million to ITT Corporation for a ten-year right (after which the agreement may be renewed) to use assets (telephone facilities and telephone equipment) within the Republic of Cuba upon which ITT Corporation has a claim valued at US$130.7 million certified by the Washington, D.C.-based United States Foreign Claims Settlement Commission (USFCSC).

PEOPLE TO PEOPLE INTERNATIONAL TO SPONSOR AGRICULTURE DELEGATION TO CUBA- Spokane, Washington-based People to People International is sponsoring a visit to the Republic of Cuba from 6 April 2001 to 14 April 2001.  The delegation, “Agriculture, Development, And Economic Leaders To The Republic Of Cuba,” will be led by Mr. William A. Messina, Jr., Executive Coordinator of the Gainesville, Florida-based International Agricultural Trade and Development Center at the University of Florida.  In 1999, Mr. Messina was awarded the U.S. Department of Agriculture Special Honor Award by The Honorable Dan Glickman, Secretary of Agriculture, for “outstanding service to U.S. and Florida agriculture for research on the economic challenges and opportunities associated with resumption of trade with Cuba.”  The visit (US$3,490.00 per person) will focus upon 1) Agricultural Production and Marketing 2) Economic Development and 3) Technology Transfer and Information Systems Utilization.  People to People International has received a license for the visit from the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C.  For information, please contact (800) 669-7882 extension 422.

U.S. ORIGIN CONSUMER ELECTRONIC PRODUCT IMPORT PROHIBITION EXPANDED- On 24 October 2000, the General Administration of Customs (GAC) of the Republic of Cuba under law 24-2000 prohibited the non-commercial entry to the Republic of Cuba of video cassettes, video cassette recorders/players, video cassette recorder/player parts, video cassette recorder/player accessories, and compact disc recorders/players from the United States.  The GAC reported that the law was necessary due to continuing circumvention of existing laws governing the non-commercial importation of electronic consumer products.  Travelers entering the Republic of Cuba from third countries, via the United States, are also subject to law 24-2000.  Video cassette recorders/players, video cassette recorder/player parts, video cassette recorder/player accessories, and compact disc recorders/players are only sold within the Republic of Cuba to non-Republic of Cuba nationals through Republic of Cuba government-operated U.S. Dollar retail stores. Video cassettes, video cassette recorders/players, video cassette recorder/player parts, video cassette recorder/player accessories, and compact disc recorders/players are available within the Republic of Cuba through the “black market” at prices averaging 300% of retail cost within the United States.
 

In April 2000, the GAC prohibited VHS video tapes (pre-recorded and blank) from the United States to be imported to the Republic of Cuba.  Customs Resolution 3-2000 states that travelers entering the Republic of Cuba from third countries, via the United States, are also included.  Non-Republic of Cuba nationals arriving in the Republic of Cuba will have their United States-origin VHS video tapes held by Republic of Cuba customs officials, then returned to them upon departure from the Republic of Cuba.  Republic of Cuba nationals will have their United States-origin VHS video tapes confiscated, if found.  The reason(s) for the new measure may include 1) efforts to force authorized users of VHS video tapes to make purchases from Republic of Cuba government-operated U.S. Dollar retail stores, thus earning revenues previously unobtainable and 2) desire to restrict certain types of content from being distributed within the Republic of Cuba.  United States-origin VHS video tapes for commercial use are exempt from Customs resolution 3-2000.

OFAC MAY PERMIT U.S. U.S. BANK FOREIGN SUBSIDIARIES TO ENGAGE IN CUBA TRANSACTIONS- The Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C., is discussing proposals to authorize foreign subsidiaries of United States-based financial institutions to participate in Republic of Cuba-related transactions with respect to the exports of agricultural commodity products and healthcare products to the Republic of Cuba within the provisions of the “Trade Sanctions Reform and Export Enhancement Act of 2000” (P.L. 106-387).  The issue is being addressed by under the auspice of the Inter-Agency Review Process which includes representatives of The White House (National Security Council), United States Department of State, United States Department of the Treasury, United States Department of Commerce, and United States Department of Agriculture. Representatives of United States-based companies are invited to present recommendations (in writing or by arranging a meeting).
 

The “Trade Sanctions Reform and Export Enhancement Act of 2000” (P.L. 106-387) was signed into law on 28 October 2000 by The Honorable William J. Clinton, President of the United States of America.  The “Trade Sanctions Reform and Export Enhancement Act of 2000” authorizes the continuation (and partial expansion) of healthcare product exports (with certain restrictions) from the United States to the Republic of Cuba and authorizes agricultural commodity product exports from the United States to Republic of Cuba government-operated entities within the Republic of Cuba and to non-Republic of Cuba government-operated entities within the Republic of Cuba.  Provisions of the legislation take effect on 28 February 2000.

YOUNG PRESIDENTS’ ORGANIZATION SEEKING DELEGATION VISIT TO CUBA IN DECEMBER 2001- A delegation of members (including spouses and children) of Irving, Texas-based Young Presidents’ Organization (YPO) is seeking to visit the Republic of Cuba in December 2001.  The YPO is seeking a license from the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C., to permit a United States registered passenger cruise ship to dock at the port of Havana, Republic of Cuba, for approximately 20 hours as part of an “educational tour.”  The cruise ship will visit other Caribbean Sea-area countries.  Both spouses and children would be participating in the “educational tour.”
 

The YPO was established in 1950 and has 160 local chapters worldwide with a combined membership of approximately 9,000.  Criteria for membership in the YPO is: applicants must be approved for membership before their 44th birthday; applicants hold one or more of the following titles- President, Chairman and Chief Executive Officer, Managing Director, Managing Partner, or Publisher; corporation (including not-for-profit, academic institution, and government entities) must have at least 50 full-time employees; revenues must be at least US$8 million annually (financial institutions must have assets of at least US$160 million); total compensation of all employees (excluding compensation of the applicant) must exceed US$1 million; and corporation must have a value of US$10 million.

HERBIE HANCOCK AND HARRY BELAFONTE ATTEND ANNUAL HAVANA JAZZ FESTIVAL- Musician Mr. Herbie Hancock and the singer/actor Mr. Harry Belafonte attended the annual Havana Jazz Festival in the Republic of Cuba under licenses issued by the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C.

U.S. GOVERNMENT PROHIBITS OFFICIAL TRAVEL ON CUBANA AIRLINES- The United States Department of State in Washington, D.C., issued the following determination on 1 December 2000: “Serious concerns about the operation of the Cuban flag carrier, Cubana de Aviacion, particularly regarding its safety standards and maintenance regime, have caused the U.S. Interests Section to prohibit its personnel from domestic and international travel on [Republic of Cuba government-operated] Cubana de Aviacion. Americans who are required to travel by air within Cuba may wish to defer their travel or consider alternate means of transportation.”  Although not stated in the determination by the United States Department of State, the determination would seem to also apply to all Republic of Cuba government-operated air carriers.
 

Individuals subject to United States law traveling to the Republic of Cuba under the auspice of a general license or a specific license from the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C., should contact their insurance provider to learn whether the determination by the United States Department of State jeopardizes personal insurance coverage or company insurance coverage for individuals subject to United States law who are not employees of the United States government traveling on Republic of Cuba government-operated air carriers.

Separately, the United States Department of State reported the following: The Federal Aviation Administration (FAA) in Washington, D.C., under the United States Department of Transportation in Washington, D.C., “has completed an exchange of information” with Republic of Cuba government-operated Instituto de Aeronautica Civil de Cuba (IACC) and “found that security procedures at the four airports where” United States-based charter airlines serve the United States- “Havana, Holguin, Camaguey, and Santiago de Cuba, meet the” Montreal, Canada-based “International Civil Aviation Organization (Annex 17) standards.”

U.S. COMPANIES MAY SETTLE CLAIMS WITH PAYMENTS, EQUITIES, ETC.; TRAVEL TO CUBA- A United States-based company which has a claim certified by the Foreign Claims Settlement Commission (USFCSC) in Washington, D.C., may settle the claim and may travel to the Republic of Cuba to inspect the status of the claim.  The Libertad Act signed into law in March 1996 by The Honorable William J. Clinton, President of the United States of America, does not deviate from international law in permitting the resolution of investor disputes, including expropriations, between corporations and sovereign governments, such as the government of the Republic of Cuba.  In addition, a United States-based company which does not have a claim certified by the Foreign Claims Settlement Commission (USFCSC) in Washington, D.C., may obtain the rights to a claim from a United States-based company with a claim certified by the USFCSC.
 

The Libertad Act does not restrict the type of claim settlement agreement which may be offered by the government of the Republic of Cuba and accepted by a United States-based company.  Suggestions for types of claim settlement agreements, which could be assignable to others, from representatives of United States-based companies have included:  1) Cash payments 2) Bonds 3) Debt equity swaps 4) Import duty waivers and 5) Tax holidays.

The Libertad Act authorizes any individual subject to United States law with a claim certified by the USFCSC, to negotiate an agreement (payment, equity, etc.) to fully resolve or partially resolve with third parties (including Republic of Cuba government-operated entities) who are using assets within the Republic of Cuba upon which there is claim certified by the USFCSC.  A United States-based company or individual subject to United States law may obtain (transfer, purchase, etc.) a claim from another party and then enter into an agreement with a third-country entity to resolve the claim so as to provide one-time value or a continuing value from the resolution of the claim.
 

There are 5,911 claims which have been certified by the USFCSC as of June 1972.  Of these claims, 30 United States companies hold 56.85% of the total value, which is approximately US$1,851,197,358.00 (not including any interest calculations).  The USFCSC has permitted interest to be accrued in the amount of 6% per annum.

In July 1997, then New York City, New York-based ITT Corporation and STET International Netherlands N.V. signed an agreement whereby STET International Netherlands N.V. would pay approximately US$25 million to ITT Corporation for a ten-year right (after which the agreement may be renewed) to use assets (telephone facilities and telephone equipment) within the Republic of Cuba upon which ITT Corporation has a claim valued at US$130.7 million certified by the USFCSC. Rome, Italy-based Telecom Italia S.p.A. (1999 revenues approximately US$15 billion), a subsidiary of Ivrea, Italy-based Olivetti S.p.A. (1999 revenues approximately US$27 billion) and Republic of Cuba government-operated Empresa Nacional de Telecommunicaciones de Cuba S.A. (ETEC S.A.) are shareholders in a joint venture which is controlled by the Ministry of Information and Communications of the Republic of Cuba.  ETEC S.A. has a total capital value of US$1.44 billion.  Amsterdam, The Netherlands-based Stet International Netherlands N.V. (a subsidiary of Telecom Italia S.p.A.) has a 29.29% interest in ETEC S.A. valued at US$422.33 million.

New York City, New York-based Citibank N.A., a subsidiary of New York City, New York-based Citigroup Inc. (1999 assets exceeded US$500 billion) is a substantial shareholder in New Orleans, Louisiana-based Cuban American Nickel which has a claim certified by the USFCSC in the amount of US$88.30 million.  [Separately, Citigroup has a claim certified by the USFCSC in the amount of US$6.20 million].  Havana, Republic of Cuba-based Moa Bay Mining, a subsidiary of Cuban American Nickel, had obtained a loan in 1957 to finance development in Holguin Province, Republic of Cuba, and in the United States (State of Louisiana).  In 1961, the assets of Moa Bay Mining within the Republic of Cuba were nationalized by the government of the Republic of Cuba.  A predecessor company (Freeport Sulfur) then-affiliated with New Orleans, Louisiana-based Freeport-McMoRan Cooper & Gold, Inc. (1999 revenues exceeded US$1 billion), distributed assets to settle outstanding debt, including the debt of Cuban American Nickel.  The principal asset of Cuban American Nickel is the US$88.30 million claim against the government of the Republic of Cuba.  Other shareholders in Cuban American Nickel include: Pittsburgh, Pennsylvania-based Mellon Bank, N.A., a subsidiary of Pittsburgh, Pennsylvania-based Mellon Financial Corporation (1999 assets exceeded US$500 billion); Buffalo, New York-based HSBC Bank USA (formerly Marine Midland Bank), a subsidiary of London, United Kingdom-based HSBC Holdings plc (1999 assets exceeded US$400 billion); Wilmington, Delaware-based Bankers Trust, a subsidiary of Frankfurt, Germany-based Deutsche Bank AG; and three Louisiana-based banks.  The United States Department of State in Washington, D.C., not acting at the request of the shareholders of Cuban American Nickel, sanctioned Toronto, Canada-based Sherritt International Corporation (1999 revenues approximately US$260.61 million) under provisions of the Libertad Act for “trafficking” in an asset upon which there was a claim certified by the USFCSC- nickel assets located in Moa, Holguin Province, Republic of Cuba.  Sherritt International Corporation has substantial investments within the Republic of Cuba in the nickel, oil, gas, and electricity generation sectors, and smaller investments in communications, tourism, and agricultural sectors.  Reportedly, there were no material discussions to resolve the matter between representatives of Sherritt International Corporation, the shareholders of Cuban American Nickel, and officials of the United States Department of State.

An attorney representing Central Santa Lucía, L.C., a limited liability company registered in the State of Florida, reports that the company is using the “trafficking” provisions of the Libertad Act to seek restitution from Palma de Mallorca, Spain-based Sol Melia S.A. (1999 revenues US$610 million) which manages fifteen hotels within the Republic of Cuba, including two hotels on the disputed land.  [In August 2000, Sol Melia reported that the company was purchasing Madrid, Spain-based Hoteles Tryp which manages four hotels within the Republic of Cuba].  According to the attorney, Central Santa Lucia, L.C., has shareholders who are “a large, mostly Cuban-American family” [who were Republic of Cuba nationals when the government of the Republic of Cuba expropriated their property] and is the successor company to Republic of Cuba-based entities that “have owned the land (100,000 acres) since 1857, on which” Sol Melía S.A.; Montreal, Canada-based Air Transat; Dusseldorf, Germany-based LTI-International Hotels; Kingston, Jamaica-based SuperClubs Super-Inclusive Resorts; Paris, France-based Accor S.A.; and Paris, France-based Club Mediterranee S.A. “are all trafficking (beachfront hotels)” in Holguín Province, Republic of Cuba.  “This is the underlying situation for the United States Department of State’s Libertad Act Title IV actions in progress.”  There have been discussions (including at least one discussion attended by officials of the United States Department of State) between representatives Central Santa Lucia, L.C., and representatives of Sol Melia S.A., but the discussions have yet to result in a resolution of the matter.  Currently, the representatives of Central Santa Lucia, L.C., are requesting that the United States Department of State sanction Sol Melia S.A. under the Title IV provision of the Libertad Act.  Title IV sanctions include denial of entry (except for medical treatment) to the United States by senior-level executives, officers, and substantial shareholders of Sol Melia S.A.  [NOTE: The Committee on Corporate Claims, which consists of a majority of the United States-based companies with the largest claims certified by the USFCSC, opposed, based upon principals of international law, the inclusion in the Libertad Act of individuals who were Republic of Cuba nationals at the time their assets were expropriated by the government of the Republic of Cuba.]

In 1999, Stamford, Connecticut-based Lone Star Industries, Inc. (1998 revenues US$347.1 million), received a license from the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C., for representatives to visit the Republic of Cuba for the purpose of visiting a cement plant in Mariel, 20 kilometers west of the city of Havana.  A date for the visit (which was expected to include meetings with representatives of the Ministry of Foreign Affairs of the Republic of Cuba and the Ministry of Basic Industry of the Republic of Cuba).has yet to be confirmed.  This was one of several licenses issued, reportedly since 1992, by the OFAC to United States-based companies having a claim registered with the USFCSC for the purpose of authorizing representatives of the company to visit the Republic of Cuba to inspect the claim.  Lone Star Industries has a claim certified by the USFCSC in the amount of US$24.90 million.  Lone Star Industries Inc. was acquired in 1999 by Wiesbaden, Germany-based Dykerhoff AG (1998 revenues of approximately US$2 billion) for US$1.19 billion, plus the assumption of US$50 million in debt.  Dykerhoff AG now has nominal control of the claim certified by the USFCSC by Lone Star Industries Inc.  Monterrey, Mexico-based Cemex SA de CV. (1999 revenues approximately US$4.5 billion), the third-largest cement producer in the world, provided technical assistance from 1994 through 1996 to a Republic of Cuba government-operated cement plant also located in Mariel.  Cemex SA de CV. had signed a ten-year agreement with the government of Mexico-owned Mexico Bank for Foreign Trade (Bancomext) and Republic of Cuba government-operated UEC (Cement Producers Association of the Republic of Cuba) to provide technical assistance at their jointly-owned cement plant located in Mariel, constructed by the government of the Republic of Cuba in the 1970’s.  In 1994, Bancomext had received a 50% interest in the cement plant in a swap for debt owed to Mexico by the government of the Republic of Cuba.  The ten-year agreement had provided Cemex SA de CV. exclusive rights to export the cement and clinker produced by the five other Republic of Cuba government-operated cement plants located in the Republic of Cuba.  In 1996, Cemex SA de CV. “officially” ceased activities within the Republic of Cuba.  Republic of Cuba cement production:      Year  Cement Production In Tons  1994  1,085,000 Tons  1995  1,456,000 Tons  1996  1,438,000 Tons  1997  1,701,000 Tons  1998  1,713,000 Tons  1999  2,000,000 Tons

The policy of the government of the United States with respect to travel to the Republic of Cuba by representatives of companies with claims certified by the USFCSC has changed over the years.  For example, on 27 January 1997, the U.S.-Cuba Trade and Economic Council wrote to the OFAC seeking the criteria for which the OFAC would grant a license to a United States-based company having a claim certified by the USFCSC for the specific purpose of authorizing representatives of the claimant to visit the Republic of Cuba to visually inspect the claim.  On 28 February 1997, the OFAC responded (CU-155302) “Travel for the purpose you have described does not fall into any categories in 515.560 [Cuban Assets Control Regulations, 31 C.F.R. Part 515] for which a specific license may be issued.  After consultation with the Department of State, it has been determined that it would be inconsistent with current policy to authorize travel transactions by U.S. persons for the purpose described in your letter.”

UNITED STATES DAIRY EXPORT COUNCIL DELEGATION PLANNING CUBA VISIT IN FEBRUARY 2001- The Arlington, Virginia-based United States Dairy Export Council (USDEC) is planning to sponsor a visit to the Republic of Cuba in February 2001.  The delegation would include dairy farmers, dairy processors, and dairy exporters.  The USDEC was created in 1995 to “provide a comprehensive resource for United States dairy exporters.”  The USDEC receives some funding from the Market Access Program (MAP) of the Foreign Agricultural Service (FAS) of the United States Department of Agriculture in Washington, D.C.  The MAP is designed to support the development, maintenance and expansion of commercial export markets for United States agricultural products.

CROWLEY MARITIME CORPORATION SEEKING U.S.-CUBA ROUTINGS- Jacksonville, Florida-based Crowley Liner Services, a subsidiary of Oakland, California-based Crowley Maritime Corporation (1999 revenues approximately US$1.2 billion), is seeking licenses from the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C., and Bureau of Export Administration (BXA) of the United States Department of Commerce in Washington, D.C., to provide regularly-scheduled common carrier services between the United States and the Republic of Cuba, specifically for the transportation of United States-produced agricultural products.  The company is seeking to operate both 1) regularly-scheduled common carrier services that include the Republic of Cuba in existing multi-destination routings and 2) common carrier services between the United States and the Republic of Cuba.  Crowley Maritime Corporation operates more than thirty oceangoing vessels (ships and barges) with a combined capacity exceeding 30,000 twenty-foot equivalent units.  Information about Crowley Maritime Corporation and its subsidiaries: Crowley Liner Services, Crowley Marine Services, Crowley Logistics and Crowley Petroleum Transport may be found on the Internet at http://www.crowley.com.
 

The “Trade Sanctions Reform and Export Enhancement Act of 2000” signed into law on 28 October 2000 by The Honorable William J. Clinton, President of the United States of America, did not nullify Section 6 (b) of the Cuban Democracy Act (CDA) signed into law in 1992 by The Honorable George W. Bush, President of the United States of America, which authorized the OFAC to license vessels (no distinction between United States-flagged vessels or non-United States-flagged vessels) to operate between the United States and the Republic of Cuba.  With respect to implementation of the “Trade Sanctions Reform and Export Enhancement Act of 2000,” the OFAC may license the transport agricultural commodities, medicine, medical devices or other products directly from the United States to the Republic of Cuba.  Since 1992, the OFAC has authorized licenses for direct shipping from the United States to the Republic of Cuba.  The CDA states that a vessel “which enters a port or place in Cuba to engage in the trade of goods or services may not, within 180 days after departure from such port or place in Cuba, load or unload any freight at any place in the United States, except pursuant to a license by the Secretary of the Treasury.”

ETEC S.A. PLANS YELLOW PAGES, OFAC AUTHORIZES U.S. COMPANIES TO ADVERTISE- Republic of Cuba government-operated Empresa de Telecomunicaciones de Cuba S.A. (ETEC S.A.), a joint venture operated by the Ministry of Communications of the Republic of Cuba, will publish the Republic of Cuba’s first Yellow Pages, to be included within the 2001 ETEC S.A. telephone directory.  The Yellow Pages will be organized by products and services, and have a sub-organization by province.  ETEC S.A.’s in-house publication, En Linea, reported that the company expected to sell more than US$800,000.00 in Yellow Pages advertisements.  ETEC S.A. began publishing national telephone directories in 1996 (prior to which the last national telephone directories were published in the early 1980’s).  Telephone directories are published for the city of Havana and for the remainder of the Republic of Cuba under three categories: Western Region, Central Region, and Eastern Region.  ETEC S.A. reported distributing 456,000 telephone directories in 2000.  The payment terms for Yellow Pages advertisements for the 2001 telephone directory are 50% of the cost due immediately and 50% upon publication in March 2001.
 

In 1997, the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C., confirmed that United States-based companies may provide camera-ready artwork to Republic of Cuba-based publications and make payments to Republic of Cuba-based publications for the placement of advertisements in Republic of Cuba-based publications.  This 20 June 1997 response to the U.S.-Cuba Trade and Economic Council was based upon 14 May 1997 correspondence written on behalf of a member of the organization who was interested in placing an advertisement in the inaugural English-language monthly edition of Negocios en Cuba, a business publication published by the Republic of Cuba government-controlled Prensa Latina News Agency.  The OFAC also permits United States companies to produce, deliver, and receive payment for, completed commercials and programming to be aired on Republic of Cuba-based television stations and Republic of Cuba-based radio stations, and to purchase Republic of Cuba-produced programming for use in the United States and other countries.

Rome, Italy-based Telecom Italia S.p.A. (1999 revenues approximately US$15 billion), a subsidiary of Ivrea, Italy-based Olivetti S.p.A. (1999 revenues approximately US$27 billion) and ETEC S.A. are shareholders in a joint venture which is controlled by the Ministry of Information and Communications of the Republic of Cuba.  ETEC S.A. has a total capital value of US$1.44 billion.  Amsterdam, The Netherlands-based Stet International Netherlands N.V. (a subsidiary of Telecom Italia S.p.A.) has a 29.29% interest in ETEC S.A. valued at US$422.33 million.
 

One Column (in centimeters)	Havana	Western Region	Central Region	Eastern Region
1x5	US$240.00	US$108.00	US$153.00	US$124.00
1.5x5	US$350.00	US$157.00	US$227.00	US$182.00
2x5	US$415.00	US$186.00	US$265.00	US$215.00
3x5	US$510.00	US$229.00	US$326.00	US$265.00
4x5	US$650.00	US$292.00	US$416.00	US$338.00
5x5	US$745.00	US$335.00	US$476.00	US$387.00
6x5	US$840.00	US$378.00	US$537.00	US$436.00
7x5	US$910.00	US$409.00	US$582.00	US$473.00
8x5	US$930.00	US$418.00	US$595.00	US$483.00
10x5	US$1,100.00	US$495.00	US$704.00	US$572.00
Two Columns (in centimeters)
4x10	US$1,150.00	US$575.00	US$760.00	US$670.00
6x10	US$1,300.00	US$595.00	US$885.00	US$720.00
8x10	US$1,600.00	US$720.00	US$1,060.00	US$885.00
10x10	US$1,850.00	US$840.00	US$1,230.00	US$1,025.00
12x10	US$1,920.00	US$875.00	US$1,280.00	US$1,070.00
14x10	US$1,960.00	US$900.00	US$1,305.00	US$1,095.00
16x10	US$1,990.00	US$915.00	US$1,340.00	US$1,120.00
Three Columns (in centimeters)
12x20.5	US$4,230.00	US$2,040.00	US$2,710.00	US$2,380.00
25x20.5	US$6,300.00	US$2,990.00	US$3,600.00	US$3,290.00

OFAC REVIEWING DIRECT PAYMENTS, MARKETING REPRESENTATIVES, SUBSIDIARIES, INSURANCE- Representatives of the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C., the Bureau of Export Administration (BXA) of the United States Department of Commerce in Washington, D.C., the United States Department of State in Washington, D.C., and The White House are reviewing drafts of the regulations which will govern the “Trade Sanctions Reform and Export Enhancement Act of 2000 (H.R. 4461)” signed into law on 28 October 2000 by The Honorable William J. Clinton, President of the United States of America. Representatives of United States-based companies are invited to present recommendations (in writing or by arranging a meeting) to the OFAC. The OFAC is reportedly expected to finalize the regulations by 31 December 2000.
 

The “Trade Sanctions Reform and Export Enhancement Act of 2000” authorizes the continuation (and partial expansion) of healthcare product exports (with certain restrictions) from the United States to the Republic of Cuba and authorizes agricultural commodity product exports from the United States to Republic of Cuba government-operated entities within the Republic of Cuba and to non-Republic of Cuba government-operated entities within the Republic of Cuba.  Provisions of the legislation take effect on 28 February 2000.

The OFAC is considering the following issues, among others, with respect to drafting the regulations for the “Trade Sanctions Reform and Export Enhancement Act of 2000”  1) Re-authorize direct correspondent banking services so that entities within the Republic of Cuba may electronically transfer payments directly from the Republic of Cuba to the United States.  With agricultural product exports having low profit margins, companies within countries that have direct correspondent banking services with the Republic of Cuba will have an immediate transactional competitive advantage. 2) Permit full-time or part-time marketing representatives (United States nationals, non-United States nationals, and Republic of Cuba nationals) within the Republic of Cuba to assist with the identification of export opportunities and to assist with the coordination of export-related transactions. 3) Continue to define “United States Company” as including non-United States-based subsidiaries of United States companies. 4) Authorize representatives of United States-based insurance companies to visit the Republic of Cuba in conjunction with the provision of insurance services.
 

Currently, when a Republic of Cuba-based entity seeks to purchase a product (agricultural, books, magazines, newspapers, music, motion picture, farm, food, informational materials, medical equipment, medical instruments, medical supplies, medicated products, medicines, pharmaceuticals) authorized by the OFAC and/or by the BXA, the funds must be transferred to a third-country financial institution from which the United States-based company must then obtain the funds, or cash must be delivered from the Republic of Cuba to the United States.

The required triangular-payment system results in transaction cost increases of 5% to 15%, which, according to United States-based companies, have been significant enough that Republic of Cuba-based entities conclude transactions with non-United States-based suppliers.  Assisting United States-based companies in obtaining funds from Republic of Cuba-based entities on a timely basis would be the Republic of Cuba’s membership (1990) in S.W.I.F.T., a global bank-owned cooperative supplying secure messaging services and interface software to 6,766 financial institutions (banks, brokers, investment managers, securities depositories and clearing organizations, and stock exchanges) in 189 countries (including the United States). Banks within the Republic of Cuba connected to S.W.I.F.T. are: Republic of Cuba government-operated Banco Central de Cuba, Republic of Cuba government-operated Banco Financiero Internacional, S.A., Republic of Cuba government-operated Banco Internacional de Comercio S.A., Republic of Cuba government-operated Banco de Credito Y Comercio, Republic of Cuba government-operated Banco Popular de Ahorro, Republic of Cuba government-operated Banco Metropolitano S.A., Republic of Cuba government-operated Banco Nacional de Cuba, and Republic of Cuba government-operated Banco Exterior de Cuba.

ITS OF LONDON MAY BE AUTHORIZED TO INSPECT U.S. AGRICULTURAL EXPORTS TO CUBA- London, United Kingdom-based Intertek Testing Services (1999 revenues approximately US$490 million) may be authorized by the government of the Republic of Cuba to provide agricultural product inspections for United States exports to the Republic of Cuba.  The government of the Republic of Cuba may require agricultural commodity exports from the Republic of Cuba to be certified (quality and quantity) prior to entering the Republic of Cuba.  London, United Kingdom-based Caleb Brett, a wholly-owned subsidiary of Intertek Testing Services (ITS), has a representation agreement with Republic of Cuba government-operated Cubacontrol S.A. (under the auspice of the Revolutionary Armed Forces of the Republic of Cuba).  Cubacontrol S.A. provides inspection and laboratory services; custom brokerage; freight forwarding; and security services.  Caleb Brett reports that the company provides the following services:
 

Inspection Services	Independent quality and quantity inspections of ship and shore, railcars, storage locations, pipelines and more.
Laboratory Services	Independent Analysis for a complete range of commodities, including crude oil, petroleum products and chemicals.
Laboratory Equipment and Products	A listing of commonly tested products and laboratory equipment.
Laboratory Facilities Management	Information regarding Caleb Brett’s expertise in providing manpower and facilities management services.
Oil Condition Monitoring	A Condition Monitoring Program can save time and money.  Your Engine Talks- We Listen.
Technical and Calibration	Marine Surveying, Flow Measurement, Tank Calibration and Loss Control.
Agricultural Services	Quality and Quantity certification services for a variety of agricultural products.

Caleb Brett has its agricultural commodity headquarters for The Americas located in Webster, Texas, and has offices providing quality and quantity certification services for agricultural products located in Metairie, Louisiana, and in Essington, Pennsylvania.  Caleb Brett, established in 1885, has 309 offices and 155 laboratories located in 70 countries.  ITS [established in 1885] operates in “91 countries directly and in a further 16 countries through agents.  ITS has over 8,500 employees and about 7,000 subcontractor specialists, working in 236 laboratories and 471 offices.”  ITS has operated within the Republic of Cuba since 1966 and in 1997 established an office in the city of Havana.  ITS is establishing an office in Santiago de Cuba (860 kilometers east of Havana), the second-largest city within the Republic of Cuba.  ITS reported that gross revenues from operations within the Republic of Cuba in 1999 were approximately US$2 million.  ITS reports that the company certifies the quality and quantity of 50% of all products entering the Republic of Cuba and that the company certifies the quality and the quantity of 95% of all products entering the Republic of Cuba from Canada.  A primary client of ITS is Republic of Cuba government-operated Alimport.
 

Alimport is responsible for the importation of food products for use by the Republic of Cuba’s 11.2 million citizens.  In 1999, Alimport purchased 1) approximately US$750 million in food products from companies located in Canada, France, Brazil, New Zealand, Argentina, Mexico, Vietnam, and the People’s Republic of China among other countries.  Among the products imported were powdered milk, cooking oil, rice, wheat, soy, corn, beans, peas, poultry, and vitamins and 2) approximately US$250 million in food products and fertilizers for use by 1) Republic of Cuba government-operated U.S. Dollar retail stores 2) Republic of Cuba government-operated companies 3) Republic of Cuba-based joint ventures and 4) the tourism sector.

UNITED STATES AIRLINES CONSIDER INVESTMENT IN MEXICANA, WHICH HAS CUBA OPERATIONS- The government of Mexico is planning to sell up to 25% in each of two the airlines controlled by Mexico City, Mexico-based, government of Mexico-controlled CINTRA S.A. de C.V.  The airlines are Mexico City, Mexico-based Aeromexico (the largest airline in Mexico) and Mexico City, Mexico-based Mexicana de Aviacion SA de CV (the fourth oldest airline in the world). Aeromexico does not service the Republic of Cuba.  Mexicana (and a wholly owned subsidiary airline) does service the Republic of Cuba.
 

Mexicana operates a daily flight between Mexico City, Mexico, and the city of Havana, Republic of Cuba, using Boeing 727 aircraft and Airbus A-320 aircraft.  Mexicana has an office located in Havana.  Mexicana provides “heavy maintenance” for aircraft operated by Republic of Cuba government-operated Cubana de Aviacion.  Mexicana has fifty-seven aircraft.

Cancun, Mexico-based Aerocaribe (established in 1975) is a wholly owned subsidiary of Mexicana.  Aerocaribe provides service between Havana, the resort area of Varadero (140 kilometers east of Havana) and Cancun (with connections to other cities) using Boeing DC-9-14 aircraft.  Aerocaribe has twenty-seven aircraft.

United States-based airlines expected to have an interest in purchasing a portion of Aeromexico and/or Mexicana include: Elk Grove Township, Illinois-based United Airlines, Inc. (1999 revenues exceeded US$17 billion), Dallas/Fort Worth Airport, Texas-based American Airlines (1999 revenues exceeded US$19 billion), Atlanta, Georgia-based Delta Air Lines (1999 revenues exceeded US$14 billion), and Houston, Texas-based Continental Airlines, Inc. (1999 revenues exceeded US$7 billion) has a 28% interest.  The Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C., authorizes companies subject to United States law to have non-controlling investments in third country companies that have commercial activities within the Republic of Cuba provided that the investments do not result in control in fact of the third country company and provided that a majority of the revenues of the third country company are not produced from commercial activities within the Republic of Cuba [OFAC 4 March 1994].
 

Aeromexico is a member of the SkyTeam Alliance, which includes Delta Air Lines.  Mexicana is a member of the Star Alliance, which includes United Airlines.

United Airlines, American Airlines, Delta Air Lines, and Continental Airlines each have Carrier Service Provider (CSP) licenses from the OFAC which authorize the transportation of passengers and cargo between the United States and the Republic of Cuba.
 

Only Dania Beach, Florida-based Gulfstream International Airlines (1999 revenues exceeded US$80 million) within which Continental Airlines, Inc., has a 28% interest, has chosen to operate regularly scheduled charter flights between the United States and the Republic of Cuba using its own aircraft.  Aircraft owned by American Airlines, United Airlines, and Delta Air Lines have been chartered by other CSP’s for regularly scheduled charter services between the United States and the Republic of Cuba.  Gulfstream International Airlines has a code-share agreement with St. Paul, Minnesota-based Northwest Airlines Corporation (1999 revenues exceeded US$10 billion).  Gulfstream International Airlines has a connection agreement and operates the TWA Connection from San Juan, Puerto Rico, with St. Louis, Missouri-based Trans World Airlines, Inc. (1999 revenues exceed US$3 billion).  Gulfstream International Airlines has a code-share agreement with Panama City, Panama-based COPA airlines.  New York, New York-based American Express Travel Related Services Company, Inc., has a Travel Service Provider (TSP) license from the OFAC.

Since 1962, Delta, Continental, and United Air Lines have had route authorities from the following cities: Delta- Havana to Houston, Los Angeles, New Orleans, San Francisco, and San Juan; Continental- Havana to Fort Lauderdale, West Palm Beach, United- Havana to Miami, Key West, Baltimore, Boston, Dallas, Houston, Los Angeles, New Orleans, New York, Newark, Philadelphia, San Francisco, San Juan, St. Croix, St. Thomas, and Washington, D.C.; and Camaguay to Miami, Baltimore, Boston, Dallas, Houston, Los Angeles, New Orleans, New York, Newark, Philadelphia, San Francisco, San Juan, St. Croix, St. Thomas, and Washington, D.C.

Individuals subject to United States law traveling to the Republic of Cuba should only use travel agents that have been licensed by the OFAC.  Tico Travel, 161 East Commercial Boulevard, Fort Lauderdale, Florida  33334.  Telephone: (954) 493-5335 or (800) 493-8426; Facsimile: (954) 493-8466; E-mail: tico@gate.net; Internet: http://www.destinationcuba.com.

MEMBERS OF CONGRESS FROM ILLINOIS EXPECTED TO VISIT CUBA IN FEBRUARY 2001- A delegation of four members of the United States House of Representatives are expected to visit the Republic of Cuba in February 2001:
 

Member of Congress	District Offices In The State Of Illinois
The Honorable Judy Biggert (R-13th)	Clarendon
The Honorable Ray LaHood (R-18th)	Jacksonville, Peoria, Springfield
The Honorable David D. Phelps (D-19th)	Decatur, Eldorado
The Honorable John M. Shimkus (R-20th)	Centralia, Collinsville, Springfield

Representative Biggert, Representative LaHood, and Representative Phelps are members of the Committee on Agriculture of the United States House of Representatives.  Representative Shimkus is a member of the Committee on Commerce of the United States House of Representatives.

SIU DELEGATION TO VISIT CUBA IN 2001 WELCOMES BUSINESS REPRESENTATIVES- A delegation of approximately forty individuals under the auspice of Carbondale, Illinois-based Southern Illinois University (SIU) which was scheduled to visit the Republic of Cuba in November 2000, is now reviewing four dates for the delegation to visit the Republic of Cuba in 2001: A) 20 February 2001 to 2 March 2001 B) 8 march 2001 to 18 March 2001 C) 16 April 2001 to 26 April 2001 and D) 14 May 2001 to 24 May 2001.  The focus of the delegation will be on education, agriculture, healthcare, and public policy.  While representatives of United States-based companies were not included among the members of the delegation scheduled to visit the Republic of Cuba in November 2000, SIU is interested in including representatives of United States-based companies as members of the delegation scheduled to visit the Republic of Cuba in 2001. For information, contact Mr. John Haller, Vice President for Academic Services at SIU: Telephone: (618) 536-3331; Facsimile: (618) 536-3404; and e-mail: jhaller@notes.siu.edu

CARGOLUX OF LUXEMBOURG MAY IN FUTURE HAVE CARGO AGREEMENT WITH CUBANA AIRLINES- Luxembourg Airport, Grand Duchy of Luxembourg-based Cargolux Airlines International S.A. (Cargolux) may in the future have a cargo agreement with Republic of Cuba government-operated Cubana de Aviacion (Cubana) when the volume of cargo warrants the use of Boeing 747-400 aircraft, according to a representative of the company.  Cargolux (1999 revenues US$644 million) is “Europe’s largest all-cargo airline, operating a modern fleet of B747-400 freighters on a worldwide network, covering more than 30 destinations on scheduled all-cargo flights.  The company has more than 60 offices in 46 countries and also offers an extensive trucking network in Europe and the US as well as charter and aircraft maintenance services. Cargolux employs more than 1200 staff worldwide.”  In the United States, Cargolux has offices the cities of San Francisco, Houston, New York City, Huntsville, Seattle, and Miami.

CITIBANK AND CHASE MANHATTAN BANK CUSTODIANS FOR SHARES IN RAO NORILSK NICKEL- According to Moscow, Russian Federation-based RAO Norilsk Nickel (1999 revenues US$2.9 billion), which is considering a project within the Republic of Cuba, approximately 10% of its shareholders are located outside of the Russian Federation.  RAO Norilsk Nickel has 188,999,874 shares outstanding with a current per share price of US$8.15, resulting in a market capitalization for RAO Norilsk Nickel of approximately US$1,540,348,973.00.  The 10% interest in RAO Norilsk Nickel is currently valued at approximately US$154,034,897.00.  Nominees (custodian) for some of the shareholders include: New York City, New York-based Citibank, N.A., a subsidiary of New York City, New York-based Citigroup Inc. (1999 assets exceeded US$500 billion) and Moscow, Russian Federation-based Chase Manhattan Bank International, a subsidiary of New York City, New York-based Chase Manhattan Corporation (1999 assets exceeded US$350 billion).  Unavailable is information confirming whether a subsidiary(s) of Citigroup Inc. or Chase Manhattan Corporation are shareholders in RAO Norlisk Nickel on their own account. The Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C. authorizes companies subject to United States law to have a non-controlling investments in third country companies that have commercial activities within the Republic of Cuba provided that the investments do not result in control in fact of the third country company and provided that a majority of the revenues of the third country company are not produced from commercial activities within the Republic of Cuba. [OFAC 4 March 1994].  In 1999, RAO Norilsk Nickel reported that the company’s global export share was approximately 17% of nickel, approximately 5% of cobalt, and approximately 3.5% of copper.  The company also produces approximately 40% of the world’s platinum group metals.  In 1998, according to RAO Norilsk Nickel, the Republic of Cuba ranked 12th amongst world nickel producers with approximately 3%.  On 1 November 2000, Mr. Yuri Kotlyar, Chairman of RAO Norilsk Nickel, reported that the company had presented a feasibility study to Republic of Cuba government-operated Caribbean Nickel S.A. (under the auspice of the Ministry of Basic Industry of the Republic of Cuba) and was awaiting a response from Caribbean Nickel S.A.
Mr. Kotlyar said that any project within the Republic of Cuba would be approved only if financially viable because, “We have to think about the interests of our shareholders, including foreign ones.”  In May 1999, RAO Norilsk Nickel signed a Letter of Intent with Caribbean Nickel S.A. to complete construction (and then to operate) at the Las Camarioca nickel plant, which is located in Holguin Province (850 kilometers east of the city of Havana).  Las Camarioca nickel plant was approximately 70% completed when the U.S.S.R. collapsed in 1991 and construction was suspended.
 

In February 2000, Melbourne, Australia-based Western Mining Corporation (WMC) announced that the company would cease discussions to implement a joint venture agreement for nickel plus cobalt mining and refining within the Republic of Cuba.  The joint venture agreement had been the largest (in potential value) signed thus far in the mining sector with a Republic of Cuba government-operated company.  In 1997, Republic of Cuba government-operated Caribbean Nickel S.A. (under the auspice of the Ministry of Basic Industry of the Republic of Cuba) signed a joint venture agreement valued at US$650 million with Melbourne, Australia-based Westminer Holdings Ltd., a subsidiary of WMC, to construct a nickel plus cobalt plant and refinery in the Pinares de Mayari area of Holguin Province, 850 kilometers east of the city of Havana. The venture, in which WMC held 65% of the shares, had yet to begin construction due to previously low nickel prices and a lack of financing.  WMC reported that the project within the Republic of Cuba, along projects in Uzbekistan and the Philippines, “are unlikely to provide sufficient returns so as to add shareholder value” but that the project within the Republic of Cuba while being of value, was not suitable for the current focus of WMC.   WMC reported spending approximately US$17.73 million during the last six years on the project within the Republic of Cuba. WMC reported that the company was not prepared to invest the millions of dollars required to create pilot technology at the project.  A subsidiary of Sydney, Australia-based Chase Manhattan Bank Australia (CMBAL), Sydney, Australia-based Chase Manhattan Nominees Ltd. (CMN), an indirect wholly-owned subsidiary of Chase Manhattan Corporation, has served since 1988 as the nominee (custodian) for outstanding shares of WMC.  The current holdings by CMN in WMC is 7.66%, valued approximately US$200 million.  The total value of the assets of CMN is reported as approximately US$70 billion.  Individual entities (corporations) using the services of CMN normally have a minimum asset value of US$100 million placed with CMN.  WMC has American Depository Receipts (ADR’s) listed on the New York City, New York-based New York Stock Exchange (NYSE).  According, to CMBAL, individuals subject to United States law may use the services of CMN.

HAVANA LISTED AS 19th MOST EXPENSIVE CITY OF 155 CITIES SURVEYED- Surrey, United Kingdom-based Inbucon Limited has published an update of its Worldwide Living Costs Survey (WLCS), which is prepared biannually.  The WLCS includes 155 cities and the index is prepared against a base of 100 for the city of London, United Kingdom, and “calculated from six international cost-of-living indices and is based on the consumption needs of a married couple with two schoolchildren.”  The city of Havana ranks 19th of 155 cities surveyed.  The most expensive cities from the United States were Washington, D.C. (37th) and Boston, Massachusetts (53rd).  Some factors are not included in the WLCS, such as housing rental costs, taxes, and social security payments.  The WLCS is calculated from up to seven published sources of data, which are then analyzed by country and city through a process of weighted averages.  Only cities where three or more values are published are included in the Index.  The WLCS is calculated such it represents the cost of living for an expatriate family of four (two parents and two children) living as they would in their home country.  The WLCS is exclusive of any housing costs for living in that country.  Data sources for the WLCS include, but are not limited to: United Nations Index, NFTC (Washington) Index, and Wiesbaden Index (produced by the German Government).  The exchange and inflation rate information is taken from Multi-National Employer which is published in the United Kingdom.
 

Rank	Country	City	Index	Annual Inflation
1	Libya	Tripoli	171.79	Not Available
2	Syria	Damascus	146.17	-2.70%
3	Japan	Tokyo	137.38	-0.70%
4	Japan	Osaka-Kobe	128.08	-0.70%
5	Congo DR (Zaire)	Kinshasa	124.67	-10.00%
6	Norway	Oslo	111.44	3.30%
7	Russian Federation	St. Petersburg	107.19	20.20%
8	Hong Kong	Victoria	106.94	4.50%
9	Congo	Brazzaville	106.64	Not Available
10	Angola	Luanda	103.85	Not Available
11	Gabon	Libreville	103.74	0.60%
12	Switzerland	Geneva	103.32	2.00%
13	Chad	N'Djamena	101.07	Not Available
14	United Kingdom	London	100 Base	3.30%
15	Uruguay	Montevideo	99.97	5.20%
16	Denmark	Copenhagen	99.91	3.30%
17	Israel	Tel Aviv	99.75	2.10%
18	Sweden	Stockholm	99.63	1.00%
19	Cuba	Havana	99.12	Not Available
20	Taiwan	Taipei	97.8	1.50%
21	Germany	Hamburg	97.17	1.90%
22	Finland	Helsinki	95.99	3.50%
23	Brazil	Sao Paulo	95.89	5.60%
24	Germany	Munich	95.22	1.90%
25	Italy	Palermo	94.94	2.60%
37	United States	Washington, D.C.	90.95	3.70%
53	United States	Boston	88.26	3.70%
62