A small 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-relevent matters.
 
WYNDHAM ARUBA HOTEL & RESORT FEATURING CUBAN ARTISTS- The Wyndham Aruba Hotel & Casino, which is managed by Dallas, Texas-based Wyndam International, Inc., a subsidiary of Dallas, Texas-based Patriot American Hospitality, Inc., is hosting a nightly show, "An Evening In Havana- No Passport Required."  The owner of the Wyndham Aruba Hotel & Casino is a Venezuela-based company.  The cost for the show, which is reported to be highly successful, which includes dinner, is US$30.00.  The show has been operating for the last four years.  The Wyndham Aruba Hotel & Casino pays Republic of Cuba government-operated Artex S.A., which, in turn, hires and pays the Republic of Cuba nationals.  The Directorate of Public Order and Security of Aruba (D.O.O.V.) Confirmed that the Republic of Cuba nationals arrive in Aruba under three-month work visas, after which they return to the Republic of Cuba.  The D.O.O.V. confirmed that Wyndham Aruba Hotel & Casino registers (for visa and work permits) as the responsible party for the Republic of Cuba nationals, as required by the government of Aruba.  NOTE: An Assistant Manager of the Wyndham Aruba Hotel & Casino, who has since resigned, recently married one of the Republic of Cuba nationals who performed in the show and they both now reside in the Commonwealth of Massachusetts.  The Nassau Marriott Resort and Crystal Palace Casino located in Nassau, the Bahamas, is also featuring a nightly one hour and forty-five minute joint performance offering a musical review of Cuban culture and Bahamian culture by 38 Republic of Cuba nationals and 22 Bahamian nationals.  The performance, taking place in the Rain Forest Theater, which has a capacity for 900 guests, is reportedly being seen by approximately 540 guests each evening.  The performance costs per person US$39.00 with a cocktail or US$59.00 with dinner.  Reportedly, the government of the Republic of Cuba has earned US$577,000.00 between October 1997 and August 1998 from its share of the revenues from the performances.  A small portion of the government of the Republic of Cuba's share of the revenues from the performances is used to pay the Republic of Cuba nationals who appear in the performance.  The performances began again on 13 October 1997, after a short hiatus, and are expected to continue through October 1999.  The Nassau Marriott Resort and Crystal Palace Casino is managed by Washington, D.C.-based Marriott International, Inc. (1997 revenues US$13 billion), which operates 1,300 properties in 56 countries.  The Nassau Marriott Resort and Crystal Palace Casino is owned by Wichita, Kansas-based Mr. Philip Ruffin, an individual subject to United States law who owns thirteen other properties, including other Marriott Hotels, in the United States and in the Bahamas.

CHARLES SCHWAB & CO. PURCHASING TWO CANADIAN BROKERAGES  WITH CUBA ACTIVITIES- San Francisco, California-based Charles Schwab & Co., Inc., a subsidiary of San Francisco, California-based The Charles Schwab Corporation (assets exceed US$13 billion), is purchasing Toronto, Canada-based Priority Brokerage, Inc., and Toronto, Canada-based Porthmeor Securities, Inc., for approximately US$5 million to US$6.5 million.  The two Canada-based companies, which are already affiliated and have a combined US$120 million under management, will be merged to create Charles Schwab Canada.  Charles Schwab & Co., Inc., has US$460 billion under management on behalf of 5.4 million customers and has offices in the United Kingdom, Hong Kong, and in the Cayman Islands.  Executives of Charles Schwab & Co., Inc., and of Priority Brokerage, Inc., confirm that individuals not subject to United States law (existing customers and future customers) are not expected to be precluded from using the services of newly-established Charles Schwab Canada to purchase shares in publicly-listed (Toronto Stock Exchange and other exchanges), Canada-based companies which have commercial activities within the Republic of Cuba, including Toronto, Canada-based Sherritt International Corporation, the second-largest provider of direct foreign investment (mining, agriculture, tourism, energy, telecommunications) within the Republic of Cuba.  Priority Brokerage confirms that it has and currently executes trades on behalf of customers for shares in Sherritt International Corporation and other companies with commercial activities within the Republic of Cuba.  In June 1998, New York City-based Merrill Lynch & Company, Inc., with assets of US$147 billion, announced that it would purchase Toronto, Canada-based Midland Walwyn Capital, Inc., one of the last major independent brokerages in Canada.  Midland Walwyn Capital, with a market value of approximately US$700 million,  has 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 reports that it has “undertaken an underwriting liability or has provided advice for a fee with respect to the securities of” Toronto, Canada-based Sherritt International Corporation, the second-largest foreign investor in the Republic of Cuba.  Midland Walwyn Capital reports that “its directors and/or employees may from time to time have a position in the securities” of Sherritt International Corporation.  In December 1996, Sherritt International Corporation issued approximately US$486 million of convertible debentures, which were reported to be over-subscribed at the time.   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].  In a transaction that could have significance to the Merrill Lynch & Company purchase of Midland Walwyn, New York City-based Citibank N.A., recently purchased the 250-branch Monterrey, Mexico-based Banco Confia.  Citibank N.A. reports that Mexican nationals who hold Visa credit cards and Mastercard credit cards issued by Banco Confia will not be precluded from using those products for transactions within the Republic of Cuba.  The Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C., has permitted individuals not subject to United States law to use Visa credit cards and Mastercard credit cards for transactions within the Republic of Cuba provided that the Visa credit cards and Mastercard credit cards are not issued by United States-based financial institutions.  While Banco Confia is not a United States-based financial institution, Banco Confia is now 100% owned by a United States-based financial institution.  According to published reports, San Francisco, California-based BankAmerica Corporation is discussing the purchase of Monterrey, Mexico-based Grupo Financiero Banorte S.A., which also issues Visa credit cards and Mastercard credit cards.

BXA ISSUES FIRST LICENSE FOR TESTING IN CUBA OF A UNITED STATES MEDICAL PRODUCT- The Bureau of Export Administration (BXA) of the United States Department of Commerce in Washington, D.C., has issued the first license to a United States-based company to conduct a clinical test within the Republic of Cuba of a product produced within the United States.  The U.S.-Cuba Trade and Economic Council had first communicated in June 1998 the interest by United States-based healthcare companies to conduct such clinical testing (laboratory and patient).  The United States Department of Commerce in Washington, D.C., then confirmed that United States-based healthcare companies could, upon receipt of a license from the BXA, export healthcare products to the Republic of Cuba for the purpose of clinical testing (laboratory and patient).  The recipient of the first BXA license to conduct a clinical test within the Republic of Cuba is Denver, Colorado-based Genesis Medical Technologies, Inc.  The product to be clinically tested is a needle-free vaccine injector which uses “a needle spring to drive a piston through a small vial of vaccine. The vaccine is pushed through the skin at approximately 500 mph.  Each injector can deliver up to 2,000 injections.  The clinical test is to be supervised by the Republic of Cuba government-operated Pedro Kouri Institute of Tropical Medicine and is being conducted on approximately 6,000 Republic of Cuba nationals during the next three months.  The vaccine to be used is tetanus.  Upon completion of the clinical test, Genesis Medical Technologies will return to the United States any unused equipment as required by the BXA.  The company also received a temporary sojourn license from the BXA for the use of general aviation aircraft to transport company representatives and medical equipment to the Republic of Cuba.  The company, through its Nassau, Bahamas, affiliate, retained an individual not subject to United States law who resides in the Republic of Cuba to assist with obtaining the necessary approvals for the clinical testing from the Ministry of Public Health of the Republic of Cuba.  Genesis Medical Technologies reports that a license from the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C., was not required for Genesis Medical Technologies to pay consulting fees to an individual not subject to United States law who resides in the Republic of Cuba.  The company also received OFAC licenses authorizing its representatives to travel to the Republic of Cuba for the purpose of identifying export (sales) opportunities for various healthcare products.  United States-based health care product companies were assisted in their efforts to import to the United States Republic of Cuba-produced and/or Republic of Cuba-developed health care products for clinical testing (laboratory and patient) because the Centers for Disease Control and Prevention (known as the CDC) within the United States Public Health Service under the United States Department of Health and Human Services in Washington, D.C., reviewed one dengue testing kit developed within the Republic of Cuba.  The review was conducted at the CDC office in Rio Piedras, Puerto Rico, which is designated as a World Health Organization (WHO) Reference Laboratory for Dengue.  The dengue testing kit (one kit can conduct the test on 100 samples) was obtained without compensation from Cypress, California-based MRL Pharmaceutical, one of the largest diagnostic testing facilities within the United States.  Dengue is estimated to annually effect thousands of individuals subject to United States law, but few are treated specifically for dengue due to an unfamiliarity by physicians with symptoms of the disease or their knowledge that testing kits are available from various United States-based companies.  Dengue is contracted through mosquitos, much like lyme disease is transmitted.  Symptoms of dengue are similar to a cold.  Dengue can be fatal in some cases.  The CDC’s review the one dengue testing kit developed within the Republic of Cuba is reportedly consistent with a multi-year study of dengue both within the United States and in other countries, particularly developing countries, which is a fundamental aspect of the mandate of the CDC.  In 1997, the CDC exchanged dengue samples with dengue samples from citizens of Colombia; some of the samples provided by Colombia had been tested using with Republic of Cuba-developed dengue testing kits. Representatives of the CDC have visited the Republic of Cuba, during which 40 serums from individuals were delivered to the Republic of Cuba for testing purposes.  Reportedly, the Republic of Cuba-developed dengue testing kits perform well, but mixed results have been reported in Argentina and Colombia.  Philadelphia, Pennsylvania-based SmithKline Beecham, a subsidiary of Brentford, United Kingdom-based SmithKline Beecham plc, has requested the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C., to authorize a laboratory in Belgium owned by a United States-based subsidiary of SmithKline Beecham plc to test, and, perhaps, eventually develop and distribute within the United States and other countries a Meningitis B vaccine developed by the Republic of Cuba government-operated Finlay Institute.  The Clinton Administration is expected soon to permit, with restrictions, SmithKline Beecham’s request.  Reportedly, the government of the Republic of Cuba could eventually receive US$10 million to US$20 million from SmithKline Beecham for a five-year exclusive right to market the vaccine.  Compensation could be made in the form of products.  Approximately 1,000 United States citizens contract Meningitis B each year, of which 120 die.  Writing to the Clinton Administration in support of the request by SmithKline Beecham were from the United States Senate: The Honorable Christopher Dodd (D-Connecticut), The Honorable Richard Lugar (R-Indiana), and The Honorable Arlen Specter (R-Pennsylvania) among others; and from the United States House of Representatives: The Honorable Tom DeLay (R-Texas), The Honorable Sonny Callahan (R-Alabama), The Honorable Joseph McDade (R-Pennsylvania), The Honorable James Greenwood (R-Pennsylvania), The Honorable Nancy Pelosi (D-California), The Honorable Henry Waxman (D-California), and The Honorable Howard Berman (D-California) among others.  A Canada-based company has asked the OFAC for permission to market a Republic of Cuba-produced, United States-patented, healthcare product in the United States.  An increasing number of United States-based healthcare product companies are evaluating Republic of Cuba-produced healthcare products for potential distribution within the United States.  The June 1998 inquiry by the U.S.-Cuba Trade and Economic Council to the United States Department of Commerce was initiated on behalf of member companies whose representatives have traveled to the Republic of Cuba under license from the OFAC for the purpose of identifying export (sales) opportunities for healthcare products, the first three such licenses from the OFAC having been issued to members of the U.S.-Cuba Trade and Economic Council.  Company representatives reported that physicians within the Republic of Cuba had asked to conduct clinical tests on some products in advance of possible purchases.  Such testing would, according to the physicians,  1) determine if the products meet Republic of Cuba public health safety standards and 2) assist with building brand awareness and brand preference for the products.  Successful clinical testing of a product, the physicians said, will enable them to more forcefully recommend that hospital administrators and the managers of purchasing departments within the Ministry of Public Health (MINSAP) of the Republic of Cuba allocate resources for the purchase of products produced by United States-based healthcare companies.

BXA ISSUES LICENSE TO EXPORT US$250,000.00 WORTH OF BASEBALL EQUIPMENT- The Bureau of Export Administration (BXA) of the United States Department of Commerce in Washington, D.C., has issued a license to permit the export of US$250,000.00 worth of “various baseballs, bats, gloves, bases, pitching machines, uniforms, and coaching equipment” to the Republic of Cuba.  The license is valid from 21 November 1998 to 30 November 2000.  The conditions of the license, which was issued in conjunction with the United States Department of State-developed “Support For The Cuban People” Program, are: 1) The items are to be used only for the use and benefit of the Cuban people.  2) The items are to be distributed to the Cuban people free of charge, although a small handling fee incident to the import of the items is permissible.  3) The items may not be re-exported without prior authorization of the United States government.  The license application request (submitted on 16 October 1998) was made by Mr. Robert M. Weinstein, President of Chatsworth, California-based Minor League Sports, Inc.   For additional information, including sponsorship opportunities, contact telephone (818) 349-1592 or facsimile telephone number (818) 886-7224 and E-mail mlsprt@aol.com.

BASEBALL CLINICS SCHEDULED FOR FEBRUARY 1999- Mr. Robert M. Weinstein, President of Chatsworth, California-based Minor League Sports, Inc., announced that his company has applied to the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C., for a license to authorize three baseball clinics to be held in the city of Havana, Republic of Cuba, 19 February 1999 to 21 February 1999.  Each clinic will be two days in duration.  The first day for coaches and aspiring coaches.  The second day will be for children of various age groups.  For additional information, including sponsorship opportunities, contact telephone (818) 349-1592 or facsimile telephone number (818) 886-7224 and E-mail mlsprt@aol.com.

HAVANA JAZZ FESTIVAL HONORS UNITED STATES ARTIST- The annual Havana Jazz Festival being held in the Republic of Cuba from 17 December 1998 to 20 December 1998 is being dedicated to Mr. Max Roach, a drummer who, although 80 years of age, is attending the event along with the musician Mr. Roy Hargrove.

2,237 BRAND NAMES REGISTERED THROUGH 15 DECEMBER 1998- The Department of Industrial Brands (DIB) within the Office of Industrial Property Registration of the Republic of Cuba reported that it had received 2,237 brand name registration requests from 1 January 1998 through 15 December 1998, an increase of 222 from the same period in 1997, and a new annual record.  For the first time in recent years, brand name registration requests from United States-based companies were surpassed by Switzerland-based companies.  The majority of all brand name registration requests were from pharmaceutical companies.  The DIB is automating the processing procedures for brand name registration processing to make approvals and renewals more timely.  In August 1998, the DIB reported that a total of 30,000 brand names were registered within in the Republic of Cuba, of which the majority were from the United States.  The Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C., authorizes United States-based companies to register their names, trademarks, and patents within the Republic of Cuba.  Annual costs for the registration of a trademark or patent within the Republic of Cuba ranges from US$300.00 to US$600.00 per name.  The Republic of Cuba is a member of the World Trade Organization (1995), General Agreement on Tariffs and Trade (1947), World International Property Organization (1970), Paris Convention for Protection of Industrial Property (1905), Madrid Agreements for the Repression of False or Deceptive Indications of Source of Goods (1964), Lisbon Agreement for the Protection of Appellations of Origin (1966), and Madrid Agreement concerning the International Registration of Marks (1989).  Republic of Cuba Registration Classifications are: Patents of Invention, Inventor’s Certificate, Scientific Discoveries, Industrial Models, Trademarks, Commercial Names, Signs of Establishments, Commercial Slogans, Denominations of Origin, and Indications of Origin.

FRANCE’S SEITA TO PURCHASE UNITED STATES DISTRIBUTION OF MONTECRISTO AMONG OTHERS- Paris, France-based Seita S.A. announced the purchase of Fort Lauderdale, Florida-based Consolidated Cigar Holdings Inc., a move that positioned the company to become an influential distributor within the United States of three of the most prestigious Republic of Cuba-recognized cigar brands: Montecristo, H. Upmann, and Por Larranaga.  Once the transaction is completed, according to sources within the Republic of Cuba and within France, Seita S.A. is expected to enter into an agreement with Republic of Cuba government-operated Habanos, S.A., the exclusive distributor of Republic of Cuba-produced cigars, for the United States distribution rights to Republic of Cuba-produced brands Montecristo, H. Upmann, and Por Larranaga.  Seita S.A., France’s largest tobacco company, is the Republic of Cuba’s second-largest importer of Republic of Cuba-produced cigars and the second-largest source of financing for the Republic of Cuba’s tobacco crop.  Sieta S.A. imported 12 million “Habanos” in 1997, in addition to tobacco leaf, and provides an estimated US$10 million in credits annually to finance the tobacco crop.  Seita S.A. has long held the exclusive rights to Republic of Cuba cigar distribution in France. Consolidated Cigar Holdings Inc., currently controls 24% of the United States cigar market, the largest in the world.  The merged company will be the largest cigar company in the world and in an ideal position, due to its commercial relationships with Republic of Cuba government-operated companies, to gain a significant share of the United States marketing rights for “Made In Cuba” cigars.  Habanos, S.A., reported that 160 million units will be exported in 1998, compared to 101 million cigars exported in 1997.  Habanos S.A. plans to export 200 million cigars in the year 2000.

UNITED STATES GOVERNMENT REVIEWS HEALTH CARE PRODUCT DEVELOPED IN CUBA- In a development (perhaps establishing a precedent) that may assist United States-based health care product companies with their efforts to import to the United States Republic of Cuba-produced and/or Republic of Cuba-developed health care products, the Centers for Disease Control and Prevention (known as the CDC) within the United States Public Health Service under the United States Department of Health and Human Services in Washington, D.C., has reviewed one dengue testing kit developed within the Republic of Cuba.  The review was conducted at the CDC office in Rio Piedras, Puerto Rico, which is designated as a World Health Organization (WHO) Reference Laboratory for Dengue.  The dengue testing kit (one kit can conduct the test on 100 samples) was obtained without compensation from Cypress, California-based MRL Pharmaceutical, one of the largest diagnostic testing facilities within the United States.  Dengue is estimated to annually effect thousands of individuals subject to United States law, but few are treated specifically for dengue due to an unfamiliarity by physicians with symptoms of the disease or their knowledge that testing kits are available from various United States-based companies.  Dengue is contracted through mosquitos, much like lyme disease is transmitted.  Symptoms of dengue are similar to a cold.  Dengue can be fatal in some cases.  The CDC’s review the one dengue testing kit developed within the Republic of Cuba is reportedly consistent with a multi-year study of dengue both within the United States and in other countries, particularly developing countries, which is a fundamental aspect of the mandate of the CDC.  In 1997, the CDC exchanged dengue samples with dengue samples from citizens of Colombia; some of the samples provided by Colombia had been tested using with Republic of Cuba-developed dengue testing kits.  Representatives of the CDC have visited the Republic of Cuba, during which 40 serums from individuals were delivered to the Republic of Cuba for testing purposes.  Reportedly, the Republic of Cuba-developed dengue testing kits perform well, but mixed results have been reported in Argentina and Colombia.  A principal concern of the CDC is to reduce then eliminate dengue testing products which are of poor quality from entering the health care systems of developing countries.  United States-based companies, for example, are not required to obtain the approval of the Food and Drug Administration under the United States  Department of Health and Human Services in Washington, D.C., for dengue testing kits that will only be exported from the United States.  The CDC seeks to maintain the quality of such exports, and the quality of products produced in other countries, including within the Republic of Cuba.  In June 1998, the United States Department of Commerce in Washington, D.C., said that United States-based healthcare companies can, upon receipt of a license from the Bureau of Export Administration (BXA) of the United States Department of Commerce, export healthcare products to the Republic of Cuba for the purpose of clinical testing (laboratory and patient).  This statement of policy came less than two months after Philadelphia, Pennsylvania-based SmithKline Beecham, a subsidiary of Brentford, United Kingdom-based SmithKline Beecham plc, confirmed that it had asked the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C., to authorize a laboratory in Belgium owned by a United States-based subsidiary of SmithKline Beecham plc to test, and, perhaps, eventually develop and distribute within the United States and other countries a Meningitis B vaccine developed by the Republic of Cuba government-operated Finlay Institute.  A Canada-based company has asked the OFAC for permission to market a Republic of Cuba-produced, United States-patented, healthcare product in the United States.  An increasing number of United States-based healthcare product companies are seeking to review and evaluate Republic of Cuba-produced healthcare products for potential distribution within the United States.  The inquiry by the U.S.-Cuba Trade and Economic Council was initiated on behalf of member companies whose representatives have traveled to the Republic of Cuba under license from the OFAC for the purpose of identifying export (sales) opportunities for healthcare products, the first three such licenses having been issued to members of the U.S.-Cuba Trade and Economic Council.  Company representatives reported that physicians within the Republic of Cuba had asked to conduct clinical tests on some products in advance of possible purchases.  Such testing would, according to the physicians,  1) determine if the products meet Republic of Cuba public health safety standards and 2) assist with building brand awareness and brand preference for the products.  Successful clinical testing of a product, the physicians said, will enable them to more forcefully recommend that hospital administrators and the managers of purchasing departments within the Ministry of Public Health (MINSAP) of the Republic of Cuba allocate resources for the purchase of products produced by United States-based healthcare companies.  SmithKline Beecham plc has asked the OFAC to authorize a laboratory in Belgium owned by a United States-based subsidiary of SmithKline Beecham plc to test, and, perhaps, eventually develop and distribute within the United States and other countries a Meningitis B vaccine developed by the Republic of Cuba government-operated Finlay Institute.  The Clinton Administration is expected soon to permit, with restrictions, SmithKline Beecham’s request.  Reportedly, the government of the Republic of Cuba could eventually receive US$10 million to US$20 million from SmithKline Beecham for a five-year exclusive right to market the vaccine.  Compensation could be made in the form of products.  Approximately 1,000 United States citizens contract Meningitis B each year, of which 120 die.  Writing to the Clinton Administration in support of the request by SmithKline Beecham were from the United States Senate: The Honorable Christopher Dodd (D-Connecticut), The Honorable Richard Lugar (R-Indiana), and The Honorable Arlen Specter (R-Pennsylvania) among others; and from the United States House of Representatives: The Honorable Tom DeLay (R-Texas), The Honorable Sonny Callahan (R-Alabama), The Honorable Joseph McDade (R-Pennsylvania), The Honorable James Greenwood (R-Pennsylvania), The Honorable Nancy Pelosi (D-California), The Honorable Henry Waxman (D-California), and The Honorable Howard Berman (D-California) among others.

GLENEAGLES GOLF DEVELOPMENTS TO DESIGN TWO COURSES IN CUBA- North Vancouver, British Colombia, Canada-based Leisure Canada and Gleneagles, Scotland, United Kingdom-based Gleneagles Golf Developments have announced an agreement which is expected to result in the design, development, construction, and management of two 18-hole championship golf courses located within Leisure Canada’s 5.5 square kilometer property at Jibacoa, 40 kilometers east of the city of Havana.  Construction is expected to begin during the second half of 1999.  Gleneagles Golf Developments recently-completed the design and project management of a golf course in Bandon Dunes, Oregon.  Republic of Cuba-based tourism industry sources report that the timing of the announcement of the preliminary agreement may have been due to the recent publicity surrounding Thunder Bay, Ontario, Canada-based Cuban Canadian Resorts International which announced plans to develop during the next ten years 2,614 beachfront residential units within the Republic of Cuba for purchase as timeshare units or as condominium units.  The estimated US$250 million joint venture, Cuban Club Resorts S.A. (CCR), is with Republic of Cuba government-operated Gran Caribe.  Both Leisure Canada and CCR will be seeking financing for their developments- perhaps from the same sources, so market positioning is critical.  According to Leisure Canada, the “ocean side championship golf course will be anchored by Leisure Canada’s existing master plan consisting of six hotels, a marina, convention centre, European spa, central shopping village, equestrian centre, and a second golf course.  All facilities compliment Leisure Canada’s plan for it residential real estate vacation property ownership phase.  This US$200 million multi-destination resort at Jibacoa, makes up one of several projects of Leisure Canada’s tourism development in Cuba.”  Leisure Canada, through its wholly-owned Wilton Properties subsidiary, plans to invest approximately US$400 million to develop hotels, marinas, golf courses, equestrian riding centers, cruise ship facilities, tennis courts, convention centers, health spas, retail facilities, and eco-tourism facilities in conjunction with Republic of Cuba government-operated Gran Caribe S.A., one of the three largest Republic of Cuba government-operated tourism companies.  A subsidiary San Francisco, California-based BankAmerica Corporation (which recently merged with Charlotte, North Carolina-based NationsBank Corporation, the new entity having combined assets of US$572 billion) has a 26.2% (fully diluted) investment in Leisure Canada.  San Francisco, California-based BancAmerica ROBERTSON STEPHENS, an investment banking company with assets of US$2 billion specializing in emerging growth companies, purchased its shares in Leisure Canada in 1997.  Other investors in Leisure Canada include France-based Societe General and 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.  Leisure Canada also has a 20% interest in Saskatchewan, Canada-based Points North Digital Technologies, which, in turn, owns Mississauga, Canada-based TravelPlus, one of the three largest travel agencies (more than 200 locations) within Canada, and Dallas, Texas-based International Tours, with 1,100 locations throughout the United States.  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].

SEPTEMBER 1998 UNITED STATES EXPORTS TO CUBA- The Foreign Trade Division of the United States Bureau of the Census of the United States Department of Commerce in Washington, D.C., reported that the value of United States exports (defined as products exiting the borders of the United States whether sold or donated) to the Republic of Cuba in September 1998 was US$161,821.00.  The reported values are on an F.A.S. (Free Along Side Ship) basis- the cost of freight is excluded.
 

HS Code	Description	District	August 1998 Value in US$	Year-To-Date Value in US$
3004200060	Other Antibiotics NESOI (Not Elsewhere Specified Or Indicated), Not for Veterinary	Miami, Florida	00.00	3,000.00
3004909090	Medicaments In Measured Doses For Retail Sale, NESOI (Not Elsewhere Specified Or Indicated)	Miami, Florida	00.00	20,453.00
9802100000	Commingled Food Products, Donated, Relief/Charity	Ogdensberg, NY	00.00	17,500.00
9802200000	Commingled Food Products, Donated, Relief/Charity	Miami, FL	00.00	42,110.00
9802300000	Medicinal & Pharmaceutical Products, Donated	Miami, FL	57,000.00	189,738.00
9802300000	All Wearing Apparel, Donated For Relief/Charity	Miami, FL	16,697.00	146,290.00
9802400000	Articles Donated For Relief Or Charity, NESOI (Not Elsewhere Specified Or Indicated)	Ogdensburg, NY	00.00	85,860.00
9802400000	Articles Donated For Relief Or Charity, NESOI (Not Elsewhere Specified Or Indicated)	Detroit, MI	00.00	21,000.00
9802400000	Articles Donated For Relief Or Charity, Nesio (Not Elsewhere Specified Or Indicated)	Miami, FL	88,124.00	1,487,019.00
9809005000	Shipments Under US$20,001.00, Not Defined By Kind	Miami, FL	00.00	4,650.00
TOTAL US$			US$161,821.00	US$2,017,620.00

 
USCTEC NAMED AS “BEST SOURCE OF INFORMATION” ABOUT CUBA- The recently published 230-page book, “Culture Shock!- A Guide to Customs and Etiquette” written by Mr. Mark Cramer for Times Books International, states that the U.S.-Cuba Trade and Economic Council is the “best source of information on doing business in Cuba.”  In addition, the author writes that “John Kavulich, president of the U.S.-Cuba Trade and Economic Council and probably the person who has studied the Cuban business scene better than any other living foreigner, has a top-down perspective.”

BANCAMERICA ROBERTSON STEPHENS’ CUBA INVESTMENT TO BE TRANSFERRED- San Francisco, California-based BancAmerica ROBERTSON STEPHENS Investment Management, an investment banking company with assets of US$2 billion specializing in emerging growth companies, is being purchased by a group of investors, which includes the company’s original founders.  BancAmerica ROBERTSON STEPHENS is a subsidiary San Francisco, California-based BankAmerica Corporation (which recently merged with Charlotte, North Carolina-based NationsBank Corporation, the new entity having combined assets of US$572 billion).  BancAmerica ROBERTSON STEPHENS Investment Management purchased in 1997 a 26.2% (fully diluted) investment in North Vancouver, British Columbia, Canada-based Leisure Canada, which through its 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 conjunction with Republic of Cuba government-operated Gran Caribe S.A., on of the three largest Republic of Cuba government-operated tourism companies.  Other investors in Leisure Canada include France-based Societe General and 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.  Leisure Canada also has a 20% interest in Saskatchewan, Canada-based Points North Digital Technologies, which, in turn, owns Mississauga, Canada-based TravelPlus, one of the three largest travel agencies (more than 200 locations) within Canada, and Dallas, Texas-based International Tours, with 1,100 locations throughout the United States.  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].

TILAPIA FISH TO BE GENETICALLY PRODUCED IN CUBA- Republic of Cuba nationals will soon add genetically-produced Tilapia fish to their diet.  Non-genetically-produced Tilapia has been available within the Republic of Cuba.  Scientists at Republic of Cuba government-operated Center of Genetic Engineering and Biotechnology report that they had modified the growth hormone of this fresh water species of perch which is native to Africa, doubling its growth without affecting protein content or flavor.  Human trials within the Republic of Cuba to date reportedly have shown no adverse side effects.  Plans are to produce 70,000 tons of Tilapia in 1999 for distribution through the Republic of Cuba’s food ration system at the equivalent of approximately US$0.20 per pound.  One of the largest producers of Tilapia within the United States is Decatur, Illinois-based Archer Daniels Midland Company (ADM), which produces the fish indoors (aquaculture) at company facilities in Decatur, Illinois.  ADM, with 1997 global revenues from various agribusinesses exceeding US$13 billion, exports Tilapia to countries in Asia.  According to ADM (http://admworld.com on the Internet), “Tilapia is known for its ability to grow to maturity quickly, tilapia is perhaps the most efficient form of nourishment on earth. The diets of Chinese, Vietnamese, and other Asian cultures depend on many thousands of pounds of tilapia every week.  Tanker trucks like giant aquariums on wheels are loaded each week for large metropolitan markets. The finest restaurants can now offer fresh, tasty, reasonably priced fish, grown under environmentally controlled conditions.  The fish food is made from ADM corn, soybean meal, and lysine. A feed conversion ratio of better than 2:1 is used with excellent success.”

TABACALERA ADVERTISEMENT IN FORTUNE MAGAZINE MENTIONS CUBA- Madrid, Spain-based Tabacalera de Espana, placed a four-page specially-sized insert into the 26 October 1998 issue of Fortune Magazine, which is published by New York City, New York-based Time Warner, which, in turn owns Atlanta, Georgia-based Cable News Network (CNN), which has a bureau in the city of Havana, Republic of Cuba.  In the text of the insert, “We also discovered the legendary charms of Cuban, Caribbean and Central American tobaccos.*” At the bottom of the page containing this sentence, “*Cuban tobacco not available for American distribution.”  An increasing number of non-United States-based companies which advertise in United States-based publications have been mentioning the Republic of Cuba in their advertisements, such as Madrid, Spain-based Iberia Airlines (of which Dallas Fort Worth Airport, Texas-based American Airlines has a minority investment), where previously there was no mention of the Republic of Cuba.

CARICOM SPECIAL ADVERTISING SECTION IN THE WALL STREET JOURNAL MENTIONS CUBA- A three-page special advertising section in the 18 November 1998 issue of The Wall Street Journal sponsored by the Georgetown, Guyana-based Caribbean Community (Caricom), included a discussion of the Republic of Cuba.  Traditionally, special advertising sections within United States-based publications sponsored by governments have deliberately excluded any mention of the Republic of Cuba.  A Senior-level official of Caricom said that “The organization’s relationship with the United States cannot be discussed without including Caricom’s expanding commercial relationship with the 11 million people in the Republic of Cuba.”  Caricom, with a combined member-population of 12 million and a Gross Domestic Product (GDP) of US$30 billion, includes Antigua and Barbuda, Barbados, Belize, Dominica, Grenada, Guyana, Jamaica, Montserrat, St. Kitts-Nevis, St. Lucia, St. Vincent and the Grenadines, Suriname, Trinidad and Tobago.  The Republic of Cuba is not a member of Caricom, but has indicated its interest in becoming a member.  Currently, there exists a Cuba-Caricom Commission.  Haiti is expected to become a member of Caricom.  Associate Members of Caricom include the British Virgin Islands, Anguilla, and the Turks & Caicos Islands.  The Dominican Republic is an Affiliated Trade Partner of Caricom.

COSMOPOLITAN, GOOD HOUSEKEEPING, VANITY FAIR, BANNED FOR SALE TO CUBAN NATIONALS- The government of the Republic of Cuba has ordered withdrawn from circulation certain non-Republic of Cuba-produced magazines which had been available at various public kiosks for U.S. Dollars, especially in the city of Havana.  World Service Publications N.V., which imports and distributes more than 100 non-Republic of Cuba-produced magazines, newspapers, and books, reported that among the United States-produced publications that would no longer be available for sale to Republic of Cuba nationals are Vanity Fair (published by New York City, New York -based Conde Nast Publications), Good Housekeeping (published by New York City, New York-based Hearst Publications), Elle (published by New York City, New York-based Hachette Filipacchi Magazines)and Cosmopolitan (published by New York City, New York-based Hearst Publications).  Cigar Aficionado magazine (published by New York City, New York-based M. Shanken Communications), which has the largest distribution of any United States-based publication within the Republic of Cuba, will continue to be made available without restriction.  The decision by the government of the Republic of Cuba is consistent with an increasingly-visible Republic of Cuba government policy against western-style consumerism, especially among young people.  World Service Publications N.V. reported that many of the banned magazines would remain available at hotels and Republic of Cuba government-operated retail stores which service non-Republic of Cuba nationals.

AFTER ABUSE, DIPLOMATIC COMMUNITY SEEKS TO RETAIN 33% RETAIL SALES DISCOUNT- Diplomats residing within the Republic of Cuba have petitioned the Ministry of Foreign Affairs of the Republic of Cuba to intervene on their behalf with Republic of Cuba government-operated Cubalse S.A., which is responsible for leasing housing, providing residential services, and which operates retail stores.  Cubalse S.A. plans to eliminate a 33% discount for diplomats (including individuals subject to United States law who work within the United States Interests Section) at the city of Havana’s main supermarket, which is located in the exclusive district of Miramar.  Personnel from embassies representing some Asian countries and some African countries have been purchasing substantial quantities of beverages, detergents, cooking oil, and other products at the supermarket and then reselling the products in the Republic of Cuba’s “black market” for profit- with such sales often taking place in the parking lot of the supermarket.  Diplomats who are not involved in such reselling, have suggest that the government of the Republic of Cuba be more diligent toward the diplomats who abuse the discount privilege, rather than targeting the entire diplomatic community.

PAINTINGS BY CUBAN ARTISTS BRING HIGH PRICES- New York City-based Christie’s reported that several paintings by Republic of Cuba nationals were sold for amounts exceeding their pre-auction estimates.  “Nativite” by Mr. Wilfredo Lam sold for US$882,500.00; “La Hebra” by Mr. Mariano Rodriguez sold for US$354,500.00; and “Sin Titulo” by Mrs. Amelia Pelaez sold for US$310,500.00.

UNITED STATES AGRIBUSINESSES REPRESENTATIVES VISIT CUBA- Representatives of Caribbean Sea-area country subsidiaries of several United States-based agricultural companies attended the 1 December 1998 to 2 December 1998 meeting of the Caribbean Millers Association held in the city of Havana.  Also attending the meeting were representatives of New York City-based Continental Grain Company (1997 revenues US$16 billion); Washington, D.C.-based U.S. Wheat Associates; and Washington, D.C.-based American Bakers Association.  Mr. Paul Dickerson, a Vice President of U.S. Wheat Associates, said that the Republic of Cuba annual import market was approximately one million tons of wheat, most of which is currently imported from Canada, France, Spain, Italy, and the Netherlands, and Germany.  Mr. Dickerson said that most Republic of Cuba wheat and flour shipping costs could be decreased by 50% if the wheat that currently arrives by ship from Europe and Canada could be transported from ports in Louisiana, Mississippi, Texas, Alabama, and Florida.  The United States government currently does not authorize United States-based companies to export (sell) food products to entities within the Republic of Cuba, although legal counsels within The White House, the United States Department of State, the United States Department of the Treasury, and within the United States Department of Commerce maintain that the President of the United States has the authority to permit such exports (sales).  United States-based companies are permitted to export (donate) food products to entities within the Republic of Cuba upon receipt of a license from the Bureau of Export Administration (BXA) of the United States Department of Commerce in Washington, D.C.

BANCAMERICA ROBERTSON STEPHENS' CUBA INVESTMENT TO BE TRANSFERRED- San Francisco, California-based BancAmerica ROBERTSON STEPHENS Investment Management, an investment banking company with assets of US$2 billion specializing in emerging growth companies, is being purchased by a group of investors, which includes the company's original founders. BancAmerica ROBERTSON STEPHENS is a subsidiary San Francisco, California-based BankAmerica Corporation (which recently merged with Charlotte, North Carolina-based NationsBank Corporation, the new entity having combined assets of US$572 billion). BancAmerica ROBERTSON STEPHENS Investment Management purchased in 1997 a 26.2% (fully diluted) investment in North Vancouver, British Columbia, Canada-based Leisure Canada, which through its 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 conjunction with Republic of Cuba government-operated Gran Caribe S.A., on of the three largest Republic of Cuba government-operated tourism companies. Other investors in Leisure Canada include France-based Societe General and 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. Leisure Canada also has a 20% interest in Saskatchewan, Canada-based Points North Digital Technologies, which, in turn, owns Mississauga, Canada-based TravelPlus, one of the three largest travel agencies (more than 200 locations) within Canada, and Dallas, Texas-based International Tours, with 1,100 locations throughout the United States. 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].

TILAPIA FISH TO BE GENETICALLY PRODUCED IN CUBA- Republic of Cuba nationals will soon add genetically-produced Tilapia fish to their diet. Non-genetically-produced Tilapia has been available within the Republic of Cuba. Scientists at Republic of Cuba government-operated Center of Genetic Engineering and Biotechnology report that they had modified the growth hormone of this fresh water species of perch which is native to Africa, doubling its growth without affecting protein content or flavor. Human trials within the Republic of Cuba to date reportedly have shown no adverse side effects. Plans are to produce 70,000 tons of Tilapia in 1999 for distribution through the Republic of Cuba's food ration system at the equivalent of approximately US$0.20 per pound. The largest producer of Tilapia within the United States is Decatur, Illinois-based Archer Daniels Midland Company (ADM), which produces the fish indoors (aquaculture) at company facilities in Decatur, Illinois. ADM, with 1997 global revenues from various agribusinesses exceeding US$13 billion, exports Tilapia to countries in Asia. According to ADM (http://admworld.com on the Internet), "Tilapia is known for its ability to grow to maturity quickly, tilapia is perhaps the most efficient form of nourishment on earth. The diets of Chinese, Vietnamese, and other Asian cultures depend on many thousands of pounds of tilapia every week. Tanker trucks like giant aquariums on wheels are loaded each week for large metropolitan markets. The finest restaurants can now offer fresh, tasty, reasonably priced fish, grown under environmentally controlled conditions. The fish food is made from ADM corn, soybean meal, and lysine. A feed conversion ratio of better than 2:1 is used with excellent success."

TABACALERA ADVERTISEMENT IN FORTUNE MAGAZINE MENTIONS CUBA- Madrid, Spain-based Tabacalera de Espana, placed a four-page specially-sized insert into the 26 October 1998 issue of Fortune Magazine, which is published by New York City, New York-based Time Warner, which, in turn owns Atlanta, Georgia-based Cable News Network (CNN), which has a bureau in the city of Havana, Republic of Cuba. In the text of the insert, "We also discovered the legendary charms of Cuban, Caribbean and Central American tobaccos.*" At the bottom of the page containing this sentence, "*Cuban tobacco not available for American distribution." An increasing number of non-United States-based companies which advertise in United States-based publications have been mentioning the Republic of Cuba in their advertisements, such as Madrid, Spain-based Iberia Airlines (of which Dallas Fort Worth Airport, Texas-based American Airlines has a minority investment), where previously there was no mention of the Republic of Cuba.

CARICOM SPECIAL ADVERTISING SECTION IN THE WALL STREET JOURNAL MENTIONS CUBA- A three-page special advertising section in the 18 November 1998 issue of The Wall Street Journal sponsored by the Georgetown, Guyana-based Caribbean Community (Caricom), included a discussion of the Republic of Cuba. Traditionally, special advertising sections within United States-based publications sponsored by governments have deliberately excluded any mention of the Republic of Cuba. A Senior-level official of Caricom said that "The organization's relationship with the United States cannot be discussed without including Caricom's expanding commercial relationship with the 11 million people in the Republic of Cuba." Caricom, with a combined member-population of 12 million and a Gross Domestic Product (GDP) of US$30 billion, includes Antigua and Barbuda, Barbados, Belize, Dominica, Grenada, Guyana, Jamaica, Montserrat, St. Kitts-Nevis, St. Lucia, St. Vincent and the Grenadines, Suriname, Trinidad and Tobago. The Republic of Cuba is not a member of Caricom, but has indicated its interest in becoming a member. Currently, there exists a Cuba-Caricom Commission. Haiti is expected to become a member of Caricom. Associate Members of Caricom include the British Virgin Islands, Anguilla, and the Turks & Caicos Islands. The Dominican Republic is an Affiliated Trade Partner of Caricom.

UNITED STATES GOVERNMENT REVIEWS HEALTH CARE PRODUCT DEVELOPED IN CUBA- In a development (perhaps establishing a precedent) that may assist United States-based health care product companies with their efforts to import to the United States Republic of Cuba-produced and/or Republic of Cuba-developed health care products, the Centers for Disease Control and Prevention (known as the CDC) within the United States Public Health Service under the United States Department of Health and Human Services in Washington, D.C., has reviewed one dengue testing kit developed within the Republic of Cuba. The review was conducted at the CDC office in Rio Piedras, Puerto Rico, which is designated as a World Health Organization (WHO) Reference Laboratory for Dengue. The dengue testing kit (one kit can conduct the test on 100 samples) was obtained without compensation from Cypress, California-based MRL Pharmaceutical, one of the largest diagnostic testing facilities within the United States. Dengue is estimated to annually effect thousands of individuals subject to United States law, but few are treated specifically for dengue due to an unfamiliarity by physicians with symptoms of the disease or their knowledge that testing kits are available from various United States-based companies. Dengue is contracted through mosquitos, much like lyme disease is transmitted. Symptoms of dengue are similar to a cold. Dengue can be fatal in some cases. The CDC's review the one dengue testing kit developed within the Republic of Cuba is reportedly consistent with a multi-year study of dengue both within the United States and in other countries, particularly developing countries, which is a fundamental aspect of the mandate of the CDC. In 1997, the CDC exchanged dengue samples with dengue samples from citizens of Colombia; some of the samples provided by Colombia had been tested using with Republic of Cuba-developed dengue testing kits. Representatives of the CDC have visited the Republic of Cuba, during which 40 serums from individuals were delivered to the Republic of Cuba for testing purposes. Reportedly, the Republic of Cuba-developed dengue testing kits perform well, but mixed results have been reported in Argentina and Colombia. A principal concern of the CDC is to reduce then eliminate dengue testing products which are of poor quality from entering the health care systems of developing countries. United States-based companies, for example, are not required to obtain the approval of the Food and Drug Administration under the United States Department of Health and Human Services in Washington, D.C., for dengue testing kits that will only be exported from the United States. The CDC seeks to maintain the quality of such exports, and the quality of products produced in other countries, including within the Republic of Cuba. In June 1998, the United States Department of Commerce in Washington, D.C., said that United States-based healthcare companies can, upon receipt of a license from the Bureau of Export Administration (BXA) of the United States Department of Commerce, export healthcare products to the Republic of Cuba for the purpose of clinical testing (laboratory and patient). This statement of policy came less than two months after Philadelphia, Pennsylvania-based SmithKline Beecham, a subsidiary of Brentford, United Kingdom-based SmithKline Beecham plc, confirmed that it had asked the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C., to authorize a laboratory in Belgium owned by a United States-based subsidiary of SmithKline Beecham plc to test, and, perhaps, eventually develop and distribute within the United States and other countries a Meningitis B vaccine developed by the Republic of Cuba government-operated Finlay Institute. A Canada-based company has asked the OFAC for permission to market a Republic of Cuba-produced, United States-patented, healthcare product in the United States. An increasing number of United States-based healthcare product companies are seeking to review and evaluate Republic of Cuba-produced healthcare products for potential distribution within the United States. The inquiry by the U.S.-Cuba Trade and Economic Council was initiated on behalf of member companies whose representatives have traveled to the Republic of Cuba under license from the OFAC for the purpose of identifying export (sales) opportunities for healthcare products, the first three such licenses having been issued to members of the U.S.-Cuba Trade and Economic Council. Company representatives reported that physicians within the Republic of Cuba had asked to conduct clinical tests on some products in advance of possible purchases. Such testing would, according to the physicians, 1) determine if the products meet Republic of Cuba public health safety standards and 2) assist with building brand awareness and brand preference for the products. Successful clinical testing of a product, the physicians said, will enable them to more forcefully recommend that hospital administrators and the managers of purchasing departments within the Ministry of Public Health (MINSAP) of the Republic of Cuba allocate resources for the purchase of products produced by United States-based healthcare companies. SmithKline Beecham plc has asked the OFAC to authorize a laboratory in Belgium owned by a United States-based subsidiary of SmithKline Beecham plc to test, and, perhaps, eventually develop and distribute within the United States and other countries a Meningitis B vaccine developed by the Republic of Cuba government-operated Finlay Institute. The Clinton Administration is expected soon to permit, with restrictions, SmithKline Beecham's request. Reportedly, the government of the Republic of Cuba could eventually receive US$10 million to US$20 million from SmithKline Beecham for a five-year exclusive right to market the vaccine. Compensation could be made in the form of products. Approximately 1,000 United States citizens contract Meningitis B each year, of which 120 die. Writing to the Clinton Administration in support of the request by SmithKline Beecham were from the United States Senate: The Honorable Christopher Dodd (D-Connecticut), The Honorable Richard Lugar (R-Indiana), and The Honorable Arlen Specter (R-Pennsylvania) among others; and from the United States House of Representatives: The Honorable Tom DeLay (R-Texas), The Honorable Sonny Callahan (R-Alabama), The Honorable Joseph McDade (R-Pennsylvania), The Honorable James Greenwood (R-Pennsylvania), The Honorable Nancy Pelosi (D-California), The Honorable Henry Waxman (D-California), and The Honorable Howard Berman (D-California) among others.

GLENEAGLES GOLF DEVELOPMENTS TO DESIGN TWO COURSES IN CUBA- North Vancouver, British Colombia, Canada-based Leisure Canada and Gleneagles, Scotland, United Kingdom-based Gleneagles Golf Developments have announced an agreement which is expected to result in the design, development, construction, and management of two 18-hole championship golf courses located within Leisure Canada's 5.5 square kilometer property at Jibacoa, 40 kilometers east of the city of Havana. Construction is expected to begin during the second half of 1999. Gleneagles Golf Developments recently-completed the design and project management of a golf course in Bandon Dunes, Oregon. Republic of Cuba-based tourism industry sources report that the timing of the announcement of the preliminary agreement may have been due to the recent publicity surrounding Thunder Bay, Ontario, Canada-based Cuban Canadian Resorts International which announced plans to develop during the next ten years 2,614 beachfront residential units within the Republic of Cuba for purchase as timeshare units or as condominium units. The estimated US$250 million joint venture, Cuban Club Resorts S.A. (CCR), is with Republic of Cuba government-operated Gran Caribe. Both Leisure Canada and CCR will be seeking financing for their developments- perhaps from the same sources, so market positioning is critical. According to Leisure Canada, the "ocean side championship golf course will be anchored by Leisure Canada's existing master plan consisting of six hotels, a marina, convention centre, European spa, central shopping village, equestrian centre, and a second golf course. All facilities compliment Leisure Canada's plan for it residential real estate vacation property ownership phase. This US$200 million multi-destination resort at Jibacoa, makes up one of several projects of Leisure Canada's tourism development in Cuba." Leisure Canada, through its wholly-owned Wilton Properties subsidiary, plans to invest approximately US$400 million to develop hotels, marinas, golf courses, equestrian riding centers, cruise ship facilities, tennis courts, convention centers, health spas, retail facilities, and eco-tourism facilities in conjunction with Republic of Cuba government-operated Gran Caribe S.A., one of the three largest Republic of Cuba government-operated tourism companies. A subsidiary San Francisco, California-based BankAmerica Corporation (which recently merged with Charlotte, North Carolina-based NationsBank Corporation, the new entity having combined assets of US$572 billion) has a 26.2% (fully diluted) investment in Leisure Canada. San Francisco, California-based BancAmerica ROBERTSON STEPHENS, an investment banking company with assets of US$2 billion specializing in emerging growth companies, purchased its shares in Leisure Canada in 1997. Other investors in Leisure Canada include France-based Societe General and 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. Leisure Canada also has a 20% interest in Saskatchewan, Canada-based Points North Digital Technologies, which, in turn, owns Mississauga, Canada-based TravelPlus, one of the three largest travel agencies (more than 200 locations) within Canada, and Dallas, Texas-based International Tours, with 1,100 locations throughout the United States. 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].

AMERICAN AIRLINES, BANKERS TRUST, AND MERRILL LYNCH HAVE INDIRECT CUBA RELATIONS- The number of United States-based companies having direct or indirect operational relationships with non-Republic of Cuba-based companies engaging in commercial transactions with entities within the Republic of Cuba is rapidly increasing.  Some of the United States-based companies include: NewYork City, New York-based Citigroup; New York City, New York-based Time Warner; Minneapolis, Minnesota-based Carlson Companies; New York City, New York-based AT&T; Fort Lauderdale, Florida-based Gulfstream International Airlines; San Juan, Puerto Rico-based RE/MAX of the Caribbean; Palo Alto, California-based Excite; Parsippany, New Jersey-based Coldwell Banker Real Estate Corporation; White Plains, New York-based Starwood Hotels & Resorts Worldwide; and San Francisco, California-based BancAmerica ROBERTSON STEPHENS.  Dallas/Fort Worth, Texas-based American Airlines has reportedly agreed to purchase .9% to 1.8% of Madrid, Spain-based Iberia Airlines, which has substantial route operations to the Republic of Cuba and technical and other operational agreements with Cubana Airlines and the Institute of Civil Aviation (IACC) of the Republic of Cuba.  Under the tentative agreement, Iberia has an option to purchase a minority interest in American Airlines.  Hounslow, Middlesex, United Kingdom-based British Airways and American Airlines are seeking permission from the European Union (EU), from the government of the United States, and from the government of the United Kingdom to establish a global marketing alliance.  British Airways has confirmed that it will begin service between the United Kingdom and the Republic of Cuba in 1999.  American Airlines permits the 33 million members of its Advantage Program to accrue mileage for airline partner travel to/from/through the Republic of Cuba.  While American Airlines does not currently provide service to/from/through the Republic of Cuba, and no awards are available for travel to the Republic of Cuba, members of the Advantage Program can accrue mileage to/from/through the Republic of Cuba when traveling on airlines affiliated with the TACA Airline Group (Taca Airlines, Aviateca Airlines, Lacsa Airlines, Nica Airlines, and Copa Airlines). San Jose, Costa Rica-based Lacsa Airlines, for example, currently services the Republic of Cuba.  American Airlines has a Carrier Service Provider (CSP) license from the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C., which authorizes the company to operate charter flights between the United States and the Republic of Cuba.  American Airlines recently purchased a 10% interest in Interinvest, a holding company that owns two airlines: Buenos Aires, Argentina-based Aerolineas Argentinas (which provides service to the Republic of Cuba and has provided aircraft for charter to United States-based companies operating flights between the United States and the Republic of Cuba) and Buenos Aires, Argentina-based Austral.  Iberia Airlines owns 10% of Interinvest, with the remaining shares owned by New York City, New York-based Bankers Trust Company and New York City, New York-based Merrill Lynch & Company, and the government of Spain. 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].  Arlington, Virginia-based US Airways permits the 17 million members of its US Airways Dividend Miles program to accrue mileage for travel to/from/through the Republic of Cuba.  While US Airways does not currently provide service to/from/through the Republic of Cuba, and no awards are available for travel to the Republic of Cuba, members of the US Airways Dividend Miles program can accrue mileage to/from/through the Republic of Cuba when traveling on airlines affiliated with LatinPass.  LatinPass is a partner of the US Airways Dividend Miles program (other airline partners include ANA, Qantas, Alitalia, Sabena, Swissair, and Northwest).  LatinPass, which has 125,000 members, includes ACES, Avianca, Aviateca, COPA, LACSA, Mexicana, Nica, Saeta, Taca, US Airways, KLM, Avis, American Express Membership Rewards, AT&T True Awards, InterAmerican Rent a Car, Diners Club Rewards, Holiday Inn Worldwide, and Radisson Hotels Worldwide.  Since 1962, Delta Air Lines, Continental Airlines, 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.

CITIBANK PURCHASE OF BANK IN ARGENTINA PERMITS CONTINUED CUBA TRANSACTIONS- New York City, New York-based Citibank N.A., a subsidiary of New York City, New York-based Citigroup, has announced that it will purchase the 104-branch Buenos Aires, Argentina-based Banco Mayo Cooperativo.  The purchase includes Banco Mayo Cooperativo’s credit card operations.  Earlier this year, Citibank N.A. purchased the 250-branch Monterrey, Mexico-based Banco Confia and said that the purchase would not preclude Mexican nationals who hold Visa credit cards and Mastercard credit cards issued by Banco Confia from using those products within the Republic of Cuba.  The Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C., permits individuals not subject to United States law to use Visa credit cards and Mastercard credit cards for transactions within the Republic of Cuba provided that the Visa credit cards and Mastercard credit cards are not issued by United States-based financial institutions.  While Banco Confia is not a United States-based financial institution, Banco Confia is now 100% owned by a United States-based financial institution.  According to published reports, San Francisco, California-based BankAmerica Corporation is discussing the purchase of Monterrey, Mexico-based Grupo Financiero Banorte S.A., which also issues Visa credit cards and Mastercard credit cards.

CUBA OFFERS TO PERMIT BASEBALL PLAYERS TO CONTRACT WITH UNITED STATES TEAMS- H.E. Dr. Fidel Castro Ruz, President of the Republic of Cuba, and Mr. Humberto Rodriguez, President of the National Sports Institute of the Republic of Cuba (INDER), have expressed interest in formulating a policy to permit Republic of Cuba nationals to contract with United States-based professional baseball teams.  Principal difficulties would be, according to senior-level officials of the government of the Republic of Cuba, having the United States government authorize payments to the government of the Republic of Cuba.  The government of the Republic of Cuba would require compensation (commission, rights fees, etc.).  Uncertain, is whether any Republic of Cuba nationals would agree to share a portion of their salary or other payments (such as endorsements) with the government of the Republic of Cuba.  The Honorable Jose Serrano (D-New York) has introduced legislation in the United States Congress which would authorize the Immigration and Naturalization Service of the United States Department of Justice in Washington, D.C., to issue work visas to Republic of Cuba nationals, similar to such work visas provided to professional baseball players from other countries.  Currently, only Republic of Cuba nationals who “defect” from the Republic of Cuba are permitted to receive work visas in the United States.

CUBAN MUSICIAN WANTS TO REMAIN IN THE UNITED STATES TO TOUR- One of the most popular musicians within the Republic of Cuba, Mr. Manuel Gonzalez Hernandez, known as “Manolin, El Medico de la Salsa,” has said that he wishes to remain in the United States for at least one year during which he will tour with his 16-member band.  The government of the Republic of Cuba has reportedly authorized the request.  The Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C., authorizes Republic of Cuba nationals to perform in the United States provided that they only receive a per diem and travel expenses.  Republic of Cuba nationals are not authorized by the OFAC to receive fees from ticket sales, endorsements, etc.  Republic of Cuba nationals are authorized by the OFAC to receive revenues from the sales of recordings sold within the United States.  United States-based music promoters are increasingly criticizing the OFAC and the United States Department of State (which determines the policy guiding the regulations administered by the OFAC) for restraining the ability of Republic of Cuba nationals to perform in larger venues within the United States and to retain some of the ticket revenues, which many of the performers confirm that they would use to purchase equipment.  The Republic of Cuba has a national income tax which does include specific income tax rates for Republic of Cuba nationals earning all or a portion of their income in U.S. Dollars.  Some promoters are increasingly confident that with Cuban music becoming more popular- especially in the states of Florida, New Jersey, Texas, and California, performers such as Mr. Gonzalez and groups such as “Los Van Van” could tour venues with 10,000 seats to 20,000 seats.

MARRIOTT IN THE BAHAMAS FEATURING CUBAN ARTISTS- The Nassau Marriott Resort and Crystal Palace Casino located in Nassau, the Bahamas, is featuring a nightly one hour and forty-five minute joint performance offering a musical review of Cuban culture and Bahamian culture by 38 Republic of Cuba nationals and 22 Bahamian nationals.  The performance, taking place in the Rain Forest Theater, which has a capacity of 900 quests, is reportedly being seen by approximately 540 guests each evening.  The performance costs per person US$39.00 with a cocktail or US$59.00 with dinner.  Reportedly, the government of the Republic of Cuba has earned US$577,000.00 between October 1997 and August 1998 from its share of the revenues from the performances.  A small portion of the government of the Republic of Cuba’s share of the revenues from the performances is used to pay the Republic of Cuba nationals who appear in the performance.  The performances began again on 13 October 1997, after a short hiatus, and are expected to continue through October 1999.  The Nassau Marriott Resort and Crystal Palace Casino is managed by Washington, D.C.-based Marriott International, Inc. (1997 revenues US$13 billion), which operates 1,300 properties in 56 countries.  The Nassau Marriott Resort and Crystal Palace Casino is owned by Wichita, Kansas-based Mr. Philip Ruffin, an individual subject to United States law who owns thirteen other properties, including Marriotts, in the United States and in the Bahamas.

SPANISH COMPANY WITH VENTURE IN CUBA OWNS 20% OF CALIFORNIA COMPANY- Interagua, a subsidiary of Barcelona, Spain-based Aguas de Barcelona S.A. (Agbar), the largest privately-held water company in Spain, is investing approximately US$25 million for a 20% interest (thus becoming the largest shareholder) in San Diego, California-based Western Water Company, a water wholesaler.  Interagua is partly owned by Madrid, Spain-based Endesa S.A., the largest power company in Spain, and by Madrid, Spain-based Argentaria S.A., the third-largest commercial bank in Spain.  Endesa and Argentaria each engage in commercial transactions within the Republic of Cuba.  Aguas de Barcelona S.A. is partly owned by Bilbao, Spain-based Banco Bilbao Vizcaya S.A., the second-largest commercial bank in Spain.  Banco Bilbao Vizcaya S.A. has a representative office in the city of Havana, Republic of Cuba.  Aguas de Barcelona S.A. is working on the renovation of the water system in Havana; and has worked on the renovation of the water system in the resort area of Varadero, 140 kilometers east of Havana; and in the surrounding areas of Varadero.  In July 1998, H.E. Dr. Carlos Lage, a Vice President of the Council of State of the Republic of Cuba, reported that US$10 million would be invested in the western part of the city of Havana to upgrade water delivery.  The program will benefit 440,000 of the capital's 2.5 million residents, and include new piping, the sale of plumbing fixtures to the population, and the installation of water meters.  Currently, all Republic of Cuba households pay 1 Peso per month for water service.  When the new water meters are installed, the rate will then be 25 centavos per 1000 liters up to 3,000 liters, 50 centavos per 1000 liters from 3,000 to 4,500 liters, 75 centavos for the next 1,000 liters, then 1 Peso, 1.50 Pesos, etc.  Vice President Lage said that Havana's water works were in poor condition- with the city using twice the water of the city of Madrid, Spain, which has twice the population of Havana.  The Vice President said that US$600 million would be required to modernize the total water system in Havana.

UNITED STATES TELECOMMUNICATIONS PAYMENTS- Pursuant to provisions of the Cuban Democracy Act (CDA) signed into law in October 1992 by The Honorable George Bush, President of the United States, the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C., has reported the payments by United States-based telecommunications companies to entities within the Republic of Cuba for the period 1 January 1998 to 30 June 1998.  The OFAC has, since 1992, issued eight licenses to United States-based telecommunications companies for transactions incident to the receipt or transmission of telecommunications between the United States and the Republic of Cuba.  Since November 1994 when direct-dial long distance telephone services were actually re-established between the United States and the Republic of Cuba, annual gross revenues to United States-based long distance telephone service companies have increased from US$10.3 million prior to 1993 to a projected US$160 million in 1998.  United States law requires that per minute charges be shared on a 50-50 basis between  United States-based long distance telephone service companies and the government of the Republic of Cuba based upon a maximum of US$1.20 per minute cost from which the government of the Republic of Cuba can be paid.  United States-based long distance telephone service companies have charged above the US$1.20 per minute cost to some United States-based customers, particularly commercial users, thus retaining a larger share of the per minute overall revenues.  The majority of the long distance traffic between the United States and the Republic of
Cuba, approximately 65%, at an average per minute cost of US$.74 per minute, is residential use by individuals of Cuban descent speaking with their relatives who reside within the Republic of Cuba.  United States-based long distance telephone service companies reported that the average per minute costs are above US$1.20 per minute, reflecting a higher (and increasing) volume of commercial users paying approximately US$1.60 per minute.  To date, only the “first-tier” long distance telephone service companies have been approved by the government of the Republic of Cuba to provide services, despite a continuing and increasing interest by at least ten “second-tier” companies (such as resellers) to directly enter the market.
 

Company	Amount In U.S. Dollars
AT&T	12,795,658.00
AT&T de Puerto Rico	292,229.00
Global One (formerly Sprint)	3,075,733.00
IDB WorldCom Services	4,402,634.00
MCI International	8,468,743.00
Telefonica Larga Distancia de Puerto Rico	129,752.00
WilTel	4,983,368.00
LDDS Communications	5,371,531.00
Total	39,519,648.00

GULFSTREAM INTERNATIONAL AIRLINES OPERATING DIRECT CHARTER FLIGHTS- Fort Lauderdale, Florida-based Gulfstream International Airlines began on 3 October 1998 to operate Miami, Florida, to Havana, Republic of Cuba, flights four days each week, with continuing service to the cities of Holguin and Camaguey.  The city of Santiago de Cuba is expected to be added soon.  Of significance is that Gulfstream International Airlines is an operating air carrier with its own aircraft.  The company has for many years provided charter aircraft services between the United States and the Republic of Cuba for the United States government.  Historically, the direct and indirect air services between the United States and the Republic of Cuba have been operated by charter companies who contract with existing airlines to use aircraft.  Gulfstream International Airlines is a ten-year-old company with 30 aircraft and revenues of approximately US$100 million.  The company is the third-largest air carrier, in terms of departures, servicing Miami, Florida’s Miami International Airport (MIA), with 235 departures daily.  The company is a “connecting feeder carrier” for Houston, Texas-based Continental Airlines, Inc., for which it operates aircraft as “Continental Connection” in Florida; and is a code-sharing partner with Elk Grove Township, Illinois-based United Airlines, Inc.  Gulfstream International Airlines is using 50-seat, Dash-7 turboprop aircraft manufactured by Toronto, Canada-based De Havilland and 19-seat, Beechcraft 1900-R turboprop aircraft manufactured by Wichita, Kansas-based Raytheon Aircraft, a division of Lexington, Massachusetts-based Raytheon Company.  The company will charter a 19-seat, Beechcraft 1900-R turboprop aircraft for service to the Republic of Cuba by an individual, group, or corporate use, at a cost of US$5,800.00 round-trip, regardless of the number of passengers.  Gulfstream International Airlines joins Miami, Florida-based Airline Broker Company, Inc. (ABC) as the only two United States-based companies currently operating the charter flights.  ABC operates its six flights per week using chartered Boeing 767 aircraft and chartered Boeing 777 aircraft from United Airlines, and chartered Boeing 727 aircraft from Mexico City, Mexico-based Mexicana Airlines.  ABC charges US$.75 per pound for cargo to be transported to the Republic of Cuba.  Gulstream International Airlines has yet to define its cargo policy, but expects to do so soon.  The round-trip airfare is US$299.00 per person plus US$36.00 in airport fees.  United States-based travel agents receive a US$50.00 commission per ticket sold.  The round-trip airfare is determined principally by  Republic of Cuba government-operated Havanatur S.A., which is the coordinating entity within the Republic of Cuba for the operation of the charter flights between the United States and the Republic of Cuba.  Approximately 100 United States-based companies possess licenses or have applied for licenses from the Office of Foreign Assets Control (OFAC) to provide air carrier services and/or travel agent services and/or remittance forwarding services between the United States and the Republic of Cuba.  For additional Information and to obtain flight schedules: Airline Brokers Company, Inc., Telephone: (305) 871-1260 and Facsimile: (305) 447-0965.  Gulfstream International Airlines, Telephone: (305) 871-0727 and facsimile: (305) 871-4800.

DEPARTMENT OF COMMERCE ENCOURAGES BROAD LICENSE REQUESTS- The Bureau of Export Administration (BXA) of the United States Department of Commerce in Washington, D.C., is seeking to simplify the licensing process for United States-based companies seeking to sell products to entities associated with the Ministry of Public Health (MINSAP) of the Republic of Cuba.  United States-based companies are being informed by the BXA that in order to reduce the time involved with preparing multiple licenses, companies should include in one license request products that the company would like to sell to entities associated with MINSAP, rather than only those products about which entities associated with MINSAP have inquired.  In essence, United States-based companies are being encouraged to apply for a “wish list” of products.  Some United States-based companies have reported that their “wish list” license request has included almost 100 different products.

OFAC ISSUES HEALTHCARE SALES LICENSE IN SEVEN DAYS- In what may be a new record, the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C., has processed a license request in seven days by representatives of a United States-based healthcare products company to visit the Republic of Cuba for the purpose of meeting with representatives of entities associated with the Ministry of Public Health (MINSAP) of the Republic of Cuba.  The company reports that it mailed a letter to the OFAC and expected to wait from two weeks to thirty days.  Normally, upon receipt of a license application, the OFAC will send to the applicant a form-response indicating that the application has been received and including a reference number for the application.  The form-response will also state that if the applicant has not heard from the OFAC within thirty days, that the applicant should once again contact the OFAC.

CENTER FOR CONSTITUTIONAL RIGHTS REPORTS SUCCESS AGAINST THE OFAC- The New York City, New York-based, Center for Constitutional Rights, a not-for-profit legal/educational organization “committed to the creative use of law as a positive force for social change,” has issued a summary of its recent interactions with the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C..  The following is the text (corrected for grammatical clarity only) of their summary: “The Center for Constitutional Rights has 46 pending penalty cases with the OFAC.  In only 14 cases of the 46 cases has the OFAC followed-up their ‘Requirement to Furnish Information’ letter with a ‘Notice of Proposed Penalty’ letter.  In 10 cases of the 14 cases, the ‘Notice of Proposed Penalty’ letters were sent before the Center for Constitutional Rights began active representation of the individual.  In other words, the OFAC has pursued only four cases out of 46 cases where the OFAC knew that the Center for Constitutional Rights represented the target of the OFAC investigation.  In each of the 14 cases, the Center for Constitutional Rights demanded a hearing, and in 13 cases of the 14 cases, the Center for Constitutional Rights have posed interrogatories to the OFAC.  (Interrogatories and hearings are available to individuals pursuant to OFAC regulations).  The Center for Constitutional Rights has received no responses to its interrogatories, although it is 30 days to 60 days beyond the 30-day deadline in all cases.  The Center for Constitutional Rights has received no notice of a hearing in any case, and the Center for Constitutional Rights has been informed that hearing procedures do not, in fact, exist.”  For additional information, please contact Mr. Rona Gabor at the Center for Constitutional Rights at telephone number (212) 614-6464 or by facsimile at (212) 614-6499.

30,000 BRAND NAMES REGISTERED IN CUBA- Ms. Clara Miranda, Director of the Department of Industrial Brands of  the Office of Industrial Property Registration of the Republic of Cuba, reported that 30,000 brand names were registered in the Republic of Cuba, including more than 400 United States brands.  The Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C., authorizes United States-based companies to register their names, trademarks, and patents within the Republic of Cuba.  Annual costs for the registration of a trademark or patent within the Republic of Cuba ranges from US$300.00 to US$600.00 per name.  The Republic of Cuba is a member of the World Trade Organization (1995), General Agreement on Tariffs and Trade (1947), World International Property Organization (1970), Paris Convention for Protection of Industrial Property (1905), Madrid Agreements for the Repression of False or Deceptive Indications of Source of Goods (1964), Lisbon Agreement for the Protection of Appellations of Origin (1966), and Madrid Agreement concerning the International Registration of Marks (1989).  Republic of Cuba Registration Classifications are: Patents of Invention, Inventor’s Certificate, Scientific Discoveries, Industrial Models, Trademarks, Commercial Names, Signs of Establishments, Commercial Slogans, Denominations of Origin, and Indications of Origin.

CUBAN MUSICIANS PERFORM AT MIDEM IN MIAMI BEACH- Along with 4,000 music industry representatives from 70 countries, musicians from the Republic of Cuba performed at the annual MIDEM Latin and Caribbean Music Market, held for the second consecutive year in Miami Beach, Florida.  The United States Department of State in Washington, D.C., granted travel visas for Republic of Cuba nationals including Mr. Chucho Valdes, Mr. Guillermo Rubalcaba, and Mr. Compay Segundo, and the bands Irakere and La Charanga Rubalcaba.  According to the International Federation of the Phonographic Industry, the Latin American music market sold US$2.6 billion worth of products in 1997, an increase of approximately 26% from the 1996.  New York City-based AT&T (1997 revenues US$52 billion) was a sponsor of the 1 July 1998 performance of the “Buena Vista Social Club” at Carnegie Hall in New York City.  The “Buena Vista Social Club” which consists of legendary Republic of Cuba nationals Ibrahim Ferrer, Ruben Gonzalez, Eliades Ochoa, and Compay Segundo, along with Ry Cooder, won a Grammy Award in 1998 for “Best Tropical Latin Performance.”  This was the first time that a Fortune 100-listed United States-based company was a public sponsor of a performance of a Republic of Cuba music group visiting the United States.  AT&T, Sprint, MCI, WilTel, LDDS, and AT&T de Puerto Rico provide long distance services between the United States and the Republic of Cuba.

THE WALL STREET JOURNAL PROVIDES PESO EXCHANGE RATES- Each day The Wall Street Journal newspaper publishes the “World Value of the Dollar” within which is included
the value of the Republic of Cuba Peso.  The source of the information is London, United Kingdom-based Bank of America Global Trading.

AMERICAN EXPRESS MAGAZINE PUBLISHES ARTICLE ON GOLF IN CUBA- Boulder, Colorado-based American Express Publishing Corporation, a subsidiary of New York City-based American Express Company (1997 assets exceed US$120 billion), will publish an article on the development of golf courses within the Republic of Cuba in the November 1998 issue of Travel & Leisure Golf magazine.

BANCAMERICA ROBERTSON STEPHENS HAS CUBA INVESTMENT POSITION- A subsidiary San Francisco, California-based BankAmerica Corporation (which recently merged with Charlotte, North Carolina-based NationsBank Corporation, the new entity having combined assets of US$572 billion) has a 26.2% (fully diluted) investment in North Vancouver, British Colombia, Canada-based Leisure Canada, Inc.  San Francisco, California-based BancAmerica ROBERTSON STEPHENS, an investment banking company with assets of US$2 billion specializing in emerging growth companies, purchased its shares in Leisure Canada in 1997.  Other investors in Leisure Canada include France-based Societe General and France-based LCF Rothschild.  Leisure Canada, through its wholly-owned Wilton Properties subsidiary, plans to invest approximately US$400 million to develop hotels, marinas, golf courses, equestrian riding centers, cruise ship facilities, tennis courts, convention centers, health spas, retail facilities, and eco-tourism facilities in conjunction with Republic of Cuba government-operated Gran Caribe S.A., one of the three largest Republic of Cuba government-operated tourism companies.  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.  Leisure Canada also has a 20% interest in Saskatchewan, Canada-based Points North Digital Technologies, which, in turn, owns Mississauga, Canada-based TravelPlus, one of the three largest travel agencies (more than 200 locations) within Canada, and Dallas, Texas-based International Tours, with 1,100 locations throughout the United States.  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].

THE LOS ANGELES TIMES HAS CUBA TOURIST ADVERTISEMENT- In the Travel Section of The Los Angeles Times on 16 August 1998, a small advertisement appeared paid for by Cuba Travel of Tijuana, Mexico.  The advertisement provided the Internet address http://www.cubatravel.com.mx.

RE/MAX REAL ESTATE HAS CUBA AGENT- The rights to operate a RE/MAX real estate franchise within the Republic of Cuba has been held, since November 1991, by San Juan, Puerto Rico-based RE/MAX of the Caribbean Basin, Inc., an independently owned and operated franchise of Denver, Colorado-based RE/MAX.  For additional information, contact Mr. Patrick Murphy at telephone (787) 728-8249.  In June 1998, Parsippany, New Jersey-based Coldwell Banker Real Estate Corporation (1997 turnover US$100 billion), a subsidiary of Parsippany, New Jersey-based Cendant Corporation (1997 revenues US$5 billion), has awarded a master franchise agreement for Bermuda and 30 Caribbean Sea-area countries (encompassing 750 islands) to Cayman Islands-based Coldwell Banker Island Affiliates.  The master franchise agreement includes provisions (right of first refusal) for the Republic of Cuba.  The President of Coldwell Banker Island Affiliates, Mr. J.C. Calhoun, is an individual subject to United States law who resides in the Cayman Islands and is the President of Coldwell Banker Cayman Islands Realty.  Coldwell Banker Island Affiliates is a company which is controlled by individuals not subject to United States law.  Coldwell Banker Island Affiliates reports receiving an increasing number of inquires from individuals seeking to obtain the franchise for the Republic of Cuba, with offers in excess of US$1 million.  When awarded, however, Coldwell Banker Island Affiliates reports that because of the size of the Republic of Cuba, there may be multiple franchises awarded for the country.  Coldwell Banker franchises more than 2,800 independently-owned and independently-operated real estate offices with a combined 62,000 sales associates.  Coldwell Banker Real Estate Corporation joins an increasing number of United States-based companies that are including the Republic of Cuba in franchise agreements, license agreements, distributorship agreements, and agency agreements for commercial activity within the Republic of Cuba.

500 AMERICAN ADVANTAGE MILES FOR SOL MELIA HOTELS STAYS, INCLUDING CUBA- Dallas/Fort Worth, Texas-based American Airlines is now permitting the 33 million members of its Advantage Program to earn 500 miles per stay at any one of the more than 200 hotels worldwide managed by Madrid, Spain-based Grupo Sol Melia S.A., including those managed by the company located within the Republic of Cuba.  Grupo Sol Melia will manage the soon-to-be-opened 409-room, five-star, Sol Melia Confort Hotel in the City of Havana, the second-largest hotel in the country. [Toronto, Ontario, Canada-based Sherritt International Corporation, the largest foreign investor within the Republic of Cuba, has a 12.5% interest in the Sol Melia Confort Hotel]; Melia Cohiba in Havana; Melia Las Americas in the resort area of Varadero, 140 kilometers east of Havana; Melia Varadero in the resort area of Varadero; Sol Club Las Sirenas in the resort area of Varadero; Sol Club Palmeras, in the resort area of Varadero; Sol Club Cayo Coco, on the northern keys, 508 kilometers east of Havana; Sol Rio de Mares in the resort area of Guardalavaca, 800 kilometers east of Havana; and Sol Club Rio de Luna in the resort area of Guardalavaca.

HARD ROCK CAFE COMING TO CUBA?- Mexico City, Mexico-based ECE S.A., has established a joint venture with London, United Kingdom-based The Rank Group Plc to construct and to operate Hard Rock Cafe restaurants in all South American countries (excluding Brazil) and in the Republic of Cuba.  ECE S.A. is a publicly-traded company which operates Hard Rock Cafe restaurants, AllStar Cafe restaurants, and Rainforest restaurants within Mexico.  The cost of construction of a Hard Rock Cafe restaurant ranges from US$3 million to US$40 million (Orlando, Florida).  Mr. Horace Dawson, Vice President for Business Affairs and General Counsel of Orlando, Florida-based Hard Rock Cafe International, Inc., the wholly-owned subsidiary of The Rank Group Plc, reports that the company has continually been approached by individuals and companies seeking franchise rights for the Republic of Cuba.  Several years ago, Republic of Cuba government-operated Cubanacan S.A., the largest tourism company within the Republic of Cuba, had discussions with a Hard Rock Cafe franchisee, who has since sold the franchise rights for Caribbean Sea-area countries back to The Rank Group Plc.  The Hard Rock Cafe trademark is registered within the Republic of Cuba.  United States-based companies are permitted by the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C., to register trademarks and patents within the Republic of Cuba.  For additional information, contact Mr. Horace Dawson of Hard Rock Cafe International, Inc., at telephone: (407) 351-6000 or Mr. Eric Zinser of ECE S.A. at telephone: 011 525 327 7120.

USCTEC AWAITING PACKAGE DELIVERY RULING FROM THE OFAC- The U.S.-Cuba Trade and Economic Council, at the request of healthcare product company members, wrote to the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C., on 26 February 1998 to learn if United States-based package delivery companies would be permitted to transport healthcare products (medical equipment, medical instruments, medical supplies, medicated products, medicines, and pharmaceuticals) from the United States to the Republic of Cuba which have received an export license (sale or donation) from the Bureau of Export Administration (BXA) of the United States Department of Commerce in Washington, D.C..  Executives from United States-based healthcare product companies believe that the ability to use United States-based package delivery companies to transport healthcare products to the Republic of Cuba could create additional export opportunities as transportation costs could be lessened and made more efficient, and there could be additional export opportunities for healthcare products whose delivery is time-sensitive, such as for operations, etc.

DHL WORLDWIDE EXPRESS TO RECEIVE CORRECTED GUIDELINES- In June 1998, the U.S.-Cuba Trade and Economic Council reported to a United States-based healthcare product company that DHL Worldwide Express could transport a package containing brochures and video tapes to a hospital located in the city of Havana, Republic of Cuba.  The company contacted DHL Worldwide Express and was informed that such shipments to the Republic of Cuba were limited to five brochures, no video tapes, and that the package could only be delivered to a residence.  The U.S.-Cuba Trade and Economic Council then contacted DHL Worldwide Express to re-confirm the information that had been provided to the United States-based healthcare company.  On 26 June 1998 the U.S.-Cuba Trade and Economic Council wrote to the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C., to seek clarification as to the discrepancy between DHL Worldwide Express and OFAC regulations which exempt informational materials from any restrictions.  On 10 July 1998 the OFAC replied to the U.S.-Cuba Trade and Economic Council [see attached letter], and confirmed that packages may be sent from the United States to the Republic of Cuba using the services of DHL Worldwide Express under the following conditions: 1) documents may be sent, including video tapes, music tapes, books, magazines, etc. 2) there are no quantity limitations per package and 3) that the shipments may be addressed to residences and to offices.  The OFAC said that the United States Customs Service of the United State