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 States Department of the Treasury would contact DHL Worldwide Express to make certain that the company understands existing OFAC regulations.  As of 17 July 1998, DHL Worldwide Express continued to report that a package sent from the United States to the Republic of Cuba could only contain up to five documents and no video tapes.  According to the DHL Worldwide Express office in Havana, a package sent to the United States may contain only documents and one video tape.

DHL WORLDWIDE EXPRESS RATES- According to DHL Worldwide Express, a package sent from the United States to the Republic of Cuba costs more than a package sent from the United States to the Republic of Cuba, a package takes three business days to reach the United States from the Republic of Cuba and four days to reach the Republic of Cuba from the United States.
 

COMMERCE DEPARTMENT TO PERMIT EXPORT OF HEALTHCARE PRODUCTS FOR CLINICAL TESTING- In an immensely significant statement of policy, in response to a written inquiry from the U.S.-Cuba Trade and Economic Council, the United States Department of Commerce in Washington, D.C., has confirmed 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 comes 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 evaluating Republic of Cuba-produced healthcare products for potential distrubution 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.

U.S. GRAINS COUNCIL SAYS CUBA WOULD PURCHASE 500,000 TONS OF FEED GRAINS ANNUALLY- The 110-member, Washington, D.C.-based, U.S. Grains Council believes that the Republic of Cuba would shift its current supply channels (mostly Europe-based) for the annual import of 500,000 tons of feed grains (corn, barley, sorghum, etc.) to suppliers within the United States, if such transactions were authorized by the United States government.  According to attorneys for the United States Department of the Treasury, the United States Department of Commerce, and the United States Department of State, The Honorable William J. Clinton, President of the United States, does have authority to authorize the direct export (sales) of bulk food commodities to the Republic of Cuba, provided that entities subject to United States law do not provide any financing to entities within the Republic of Cuba (or through third parties) for the direct export of the bulk food commodities.  In June 1998, the U.S. Grains Council coordinated a donation of 40,000 of corn for rabbit producers within the Republic of Cuba.  New York City-based Continental Grain Company (1997 revenues US$16 billion) assisted with the packaging and shipping of the donation.  According to one senior-level executive of a United States-based commodities company, “Donations should not become the focus.  A relationship based upon handouts is counterproductive.  There are thousands of tons of various types of grains in barges that could be sold- earning money for our farmers, and transported to Cuba by water along the Mississippi River- through Minnesota, Iowa, Wisconsin, Missouri, Tennessee, Arkansas, Louisiana or Mississippi within twenty-four hours.”  Members of the U.S. Grains Council include: Archer Daniels Midland Company, Continental Grain Company, Cargill, ConAgra, Monsanto, John Deere Company, Pioneer Hi-Bred International, and Merrill Lynch & Company.

CUBA INCREASINGLY USED AS MARKETING THEME IN THE UNITED STATES- At the annual International Casual Furniture & Accessories Market, held in Chicago, Illinois, a Design Excellence Award in the Rattan/Wicker/Woven category was presented to Mr. Brown Jordan for his “Havana” chair.  The “Havana” chair “brings to life the memory of camelback club chairs on the balcony of Cuba’s Grand Hotel.  Its elegant design features a woven resin in a herringbone patters, over an aluminum powdercoated frame.  The suggested retail is US$899.00,” according to a promotional brochure.  At a Johnston & Murphy retail store in New York City, New York, “Havana Joe” brand shoes produced by a Spain-based company are reportedly selling “briskly.”  Phoenix, Arizona, has a “Havana Cafe” which has received a rating of 20 (out of 30 possible points) for food quality from the New York City-based Zagat Review.  A compact disc of music by the Republic of Cuba-based “Buena Vista Social Club” has sold more than 1 million copies.  The normal sales for an album of its type is between 5,000 copies and 10,000 copies.

IBERIA AIRLINES ADVERTISEMENT IN THE NEW YORK TIMES SHOWS CUBA ROUTINGS- An air carrier may have established a precedent by referencing its service to the Republic of Cuba in an advertisement published in the United States.  On page A16 of The New York Times on 1 July 1998, an advertisement for Madrid, Spain-based Iberia Airlines shows a map which includes two routings between Spain and the Republic of Cuba (city of Havana and resort area of Varadero).  The text of the advertisement mentions that Iberia is “working with American Airlines” and its customers can access “... anywhere American Airlines flies in the U.S. to any of Iberia’s 95 worldwide destinations.”  American Airlines and Hounslow, Middlesex, United Kingdom-based British Airways are jointly purchasing a 10% share in Iberia Airlines, which has continued to increase its flights between Spain and the Republic of Cuba, and has technical and operational agreements with both Republic of Cuba government-operated Cubana Airlines and with the Institute of Civil Aviation (IACC) of the Republic of Cuba.

ADDITIONAL OPPORTUNITIES FOR UNITED STATES TELECOMMUNICATIONS COMPANIES- Since November 1994 when direct-dial long distance telephone services were re-established between the United States and the Republic of Cuba under provisions of the Cuban Democracy Act signed into law by President George Bush in October 1992, 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 (AT&T, AT&T de Puerto Rico, MCI, Sprint, WilTel, LDDS) have been approved by the government of the Republic of Cuba to provide services, despite a continuing and increasing interest by “second-tier” companies (such as resellers) to directly enter the market.  Mr. Enrique J. Lopez, President of AKL Group, a Coral Gables, Florida-based telecommunications consulting company, reports that “the ‘first-tier’ United States long distance carriers have not fully-exercised what is defined as “telecommunications” under the Cuban Democracy Act.  They have only provide long distance services, with limited provisioning of other services.  These other services include providing to Cuba video conferencing equipment, tele-conferencing equipment, and data services equipment (Sprint is the only company currently doing this as AT&T was not interested).  This has not served the best interests of Cuba.  The Cuban government will be able to discuss these issues when the service-provider agreements with the ‘first-tier’ companies are up for review and possible renewal later in 1998.  The ‘second-tier’ carriers should be aggressively pursuing the Cuban market, especially since the ‘first-tier’ carriers have self-limited existing opportunities.  When dealing with the ‘second-tier’ carriers, Cuba will gain a new perspective on the difference that business is conducted, one that fosters creativity and the provision of cost-effective, technologically-driven telecommunications services.  ‘Second-tier’ companies are well-financed and supported by the United States financial community, thus providing these smaller companies with an ability to proactively respond more quickly to the changing Cuba market.”  For additional information, please contact AKL Group at telephone (305) 567-0084 or by facsimile at (305) 567-0085.

MORE UNITED STATES TELECOMMUNICATIONS COMPANIES MENTION CUBA IN MARKETING- Irving, Texas-based Canmax, Inc. (1997 revenues US$12.5 million) will be marketing 60,000 prepaid long distance telephone calling cards through 3,300 convenience stores and petroleum retailers, including 7-Eleven Stores.  Canmax is a developer and supplier of point-of-sale software and services for the convenience store and retail petroleum industry, as well as, a marketer of general telecommunications products and services.  Each prepaid long distance telephone calling card will permit domestic long distance telephone calls and international telephone calls to Mexico, Colombia, Cuba, Haiti, and Jamaica.  Canmax purchases minutes from WorldCom, MCI, and other companies that have existing service licenses from the Federal Communications Commission (FCC) and agreements with the government of the Republic of Cuba to provide long distance telephone service.  Americatel, a Miami, Florida-based company that offers discounted long distance international service recently announced that residential users of its service would receive a rate of US$.74 per minute for telephone calls from the United States to the Republic of Cuba.  Numerous resellers of long distance international telephone service advertise that the Republic of Cuba is one of the countries available to customers.

EXCITE ESTABLISHES PARTNERSHIP WITH TELECOM ITALIA- Palo Alto, California-based Internet service provider Excite, Inc., has established a partnership with Rome, Italy-based Telecom Italia to develop enhanced search, E-mail, and online communication capabilities.  A subsidiary of Telecom Italia, Stet International, has a 29% interest in ETECSA, the Republic of Cuba government-controlled telecommunications company.

SALOMON SMITH BARNEY USES COMMERCIALS TO PROMOTE KNOWLEDGE OF CUBA- New York City-based Salomon Smith Barney (1997 revenues US$11 billion), an investment banking and securities brokerage company, and a subsidiary of New York City, New York-based CitiGroup (assets of US$697.5 billion), is airing television commercials on CNBC and radio commercials on WINS during which an announcer states that Salomon Smith Barney can assist clients in knowing the “what will happen in Cuba after Castro.”  Promoting knowledge about the Republic of Cuba is becoming commonplace amongst United States-based financial services companies, United States-based law firms, and United States-based consulting companies.  United States-based companies are increasingly interested in the variety of commercial dealings within the Republic of Cuba currently authorized by the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C.  Another subsidiary of CitiGroup, 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.

MERRILL LYNCH MAY PURCHASE CANADIAN BROKERAGE WITH CUBA RELATIONSHIPS- New York City-based Merrill Lynch & Company, Inc., with assets of US$147 billion, is reported to be considering the purchase of Toronto, Canada-based Midland Walwyn Capital, Inc., one of the last major independent brokerages in Canada.  Midland Walwyn Capital, with a current 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 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. [Opinion by OFAC dated 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.

COLDWELL BANKER INCLUDES CUBA IN MASTER FRANCHISE AGREEMENT- 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.

CUBANA AIRLINES TO OVERFLY ADDITIONAL UNITED STATES TERRITORY- The government of the United States will permit Republic of Cuba government-operated Cubana Airlines to fly directly between the Republic of Cuba and Canada.  The new routings will decrease the flight times of the fourteen weekly flights by thirty minutes or more, will reduce fuel consumption, and will increase funds paid to the government of the United States by Cubana Airlines. [The ECONOMIC EYE ON CUBA© reported in 1997 that the government of the United States would permit the new routings.]  In 1996, the government of the Republic of Cuba filed a motion to the Montreal, Canada-based, United Nations-operated, International Civil Aviation Organization (ICAO) requesting that the government of the United States permit Cubana Airlines to overfly additional United States territory.  The government of the Republic of Cuba has permitted United States-based airlines (including American Airlines, Continental Airlines, United Airlines, and Delta Air Lines among others) to overfly Republic of Cuba territory, for which the United States-based airlines paid approximately US$6 million in 1997 to the government of the Republic of Cuba, as authorized by the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury.  Cubana Airlines will now make payments to the government of the United States to overfly United States territory.  Cubana Airlines has, since 1988, been permitted to overfly United States territory for short distances (a narrow corridor of New York State) for routings between the city of Havana and Toronto, Ontario, Canada, and between Havana and Montreal, Quebec, Canada.  Cubana Airlines will now be permitted to overfly Georgia, South Carolina, North Carolina, Tennessee, Kentucky, West Virginia, Ohio, Pennsylvania, and New York State.  The President of one United States-based airline said, “this is immensely significant as it removes one item from the ‘abnormal’ column and adds one item to the ‘normal’ column of U.S.-Cuba commercial relations.”

CONTINENTAL AIRLINES, DELTA AIR LINES, AND AIR FRANCE HAVE CUBA IN COMMON- The previously-announced code-sharing agreements, marketing agreements, and scheduling agreements between Houston, Texas-based Continental Airlines and Paris, France-based Air France and between Atlanta, Georgia-based Delta Air Lines and Paris, France-based Air France, were implemented on 19 June 1998.  Air France began Paris/Havana flights on 21 June 1998 using Boeing 747-200 aircraft.  Since 1962, Continental Airlines has had route authorities from the city of Havana to following cities: Fort Lauderdale and West Palm Beach.  Since 1962, Delta Air Lines has had route authorities from Havana to the following cities: Houston, Los Angeles, New Orleans, San Francisco, and San Juan.

WESTERN UNION TO EXPAND REMITTANCE FORWARDING SERVICE- Western Union Financial Services International, a division of Hackensack, New Jersey-based First Data Corporation, (1997 revenues US$4 billion) is expected to soon expand cash transfer services between the United States and the Republic of Cuba.  Western Union Financial Services International has an existing license from the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury to serve as a Remittance Forwarder (FRF).  In July 1993, Mr. Luis S. Mendez, on behalf of Western Union Financial Services International, obtained an invitation from Republic of Cuba government-operated Cimex S.A., the largest conglomerate within the Republic of Cuba, for executives of Western Union Financial Services International to visit the Republic of Cuba on a fully-hosted basis which resulted in a Letter of Intent being signed between Cimex and Western Union Financial Services International.  On 26 July 1993, the government of the Republic of Cuba authorized Republic of Cuba nationals to use U.S. Dollars for transactions within the Republic of Cuba.  Remittances sent from the United States to the Republic of Cuba under licenses (general and specific) from the OFAC on an annual basis from 1993 until 1996 were estimated to be US$275 million.  In March 1996, the OFAC eliminated the sending of remittances from the United States to the Republic of Cuba under a general license and began requiring individual licenses; and remittances would only be permitted for purposes of emigration or in extreme humanitarian need.  In March 1998, the OFAC re-authorized Individuals subject to United States law to send up to US$300.00 every four months (US$1,200.00 annually) under a general license to relatives who reside within the Republic of Cuba.  The OFAC permits remittances to be transferred from the United States to the Republic of Cuba through remittance forwarders licensed by the OFAC or by United States-based depository institutions or directly through individuals traveling to the Republic of Cuba under a license issued by the OFAC.  Republic of Cuba nationals will be able to obtain the funds through a Republic of Cuba government-operated transfer agent.  The Republic of Cuba government-operated transfer agent will receive a portion of the fee obtained by Western Union Financial Services International from the individual subject to United States law sending the funds from the United States to the Republic of Cuba.

INCREASE IN TSP AND CSP OFAC LICENSE REQUESTS, ISSUING DELAYS CRITICIZED- The Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C., has received approximately one hundred new applications (there 80 existing licenses as of 26 February 1998) from United States-based companies to obtain Travel Service Provider (TSP) licenses and a Carrier Service Provider (CSP) licenses to provide services for individuals subject to United States law who are authorized to travel to the Republic of Cuba.  Some United States-based companies already have, or are now requesting, licenses to be both a TSP and a CSP.  There are no OFAC regulations which limit the number of United States-based companies that can be issued TSP licenses and CSP licenses.  The only criteria used by the OFAC is that the United States-based company requesting the license(s) must provide a copy of its Articles of Incorporation and must authorize a criminal background check. The OFAC has delayed processing TSP and CSP license applications.  One result has been an increasing number of United States-based companies that have already requested licenses to consider legal remedies if the licenses are not forthcoming.  The delays, according to executives at the companies, are harming their ability to market services, thus providing an unfair advantage to existing license holders.  During the next twelve months, an estimated 100,000 individuals subject to United States law are expected to travel to the Republic of Cuba, an increase of 30% from 1997.  Amongst the United States-based companies with TSP and/or CSP licenses from the OFAC are New York City-based American Express Travel Related Services (TSP) and Dallas/Fort Worth, Texas-based American Airlines.  Individuals subject to United States law who are authorized to travel to the Republic of Cuba are not required to use United States-based charter flights, they can travel to the Republic of Cuba through any third country and use any charter or regularly-scheduled air carrier.

NEW CHARTER FLIGHTS, NEW CHARTER COMPANIES, AND NEW CITIES- The three Miami, Florida-based airline charter companies that currently operate the indirect airline charter flights between the United States and the Republic of Cuba are expanding both their direct flights and indirect flights, and the time of day of the flights.  The total number of seats offered by the existing airline charter companies will be 1,774, or 92,248 seats on an annual basis.  The direct Miami/Havana flights will have 1,324 weekly seats and the indirect Miami to Santiago de Cuba, Camaguey, and Holguin flights will have 450 weekly seats.  Additional United States-based companies have applied to the Office of Foreign Assets Control (OFAC) to obtain Carrier Service Provider (CSP) licenses, including some of the largest travel agencies, tour operators, and air charter companies within the United States.  New airline charter flights may be added from Newark, Los Angeles, and New Orleans.  Individuals subject to United States law who are authorized to travel to the Republic of Cuba are not required to use United States-based charter flights, they can travel to the Republic of Cuba through any third country and use any charter or regularly-scheduled air carrier.  The two of the three currently-operating airline charter companies plan to use Nassau, Bahamas, as a transfer point for connections between the United States and three cities within the Republic of Cuba.  The Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C., will now authorize flights between the United States and the Republic of Cuba to operate between the hours of 10:00 a.m. and 10:00 p.m..  Previously, the flights had been restricted to daylight hours.  The round-trip airline ticket price is expected to decrease from the current US$399.00 to approximately US$320.00 to US$330.00.  Of those individuals subject to United States law who are authorized to visit the Republic of Cuba, approximately 70% visit Havana Province, Matanzas Province, and Pinar del Rio Province.  Of those individuals subject to United States law who are authorized to visit the Republic of Cuba, approximately 30% visit Camaguey Province, Guantanamo Province, Granma Province, and Santiago de Cuba Province.  Thus far in 1998, for every 100 passengers on the airline charter flights who are of Cuban descent, 40 passengers have not visited the Republic of Cuba in the last five to ten years.  Republic of Cuba immigration policy generally restricts Cuban nationals who left the country by raft and other means from returning for a period of five years.  In 1998, an estimated 330,000 Republic of Cuba nationals who left the country and now reside in the United States are eligible to return for a visit.  Perhaps, 30% or more of these individuals may choose to visit the Republic of Cuba this year.

UNITED STATES MUSIC PROMOTERS CRITICIZE STATE DEPARTMENT- An increasing number of United States-based music promoters who want to arrange tours of the United States by performers who are Republic of Cuba nationals believe that they are being penalized by
the United States Department of State as a result of the increasing popularity within the United States of Republic of Cuba-based performers.  The first issue is a requirement that Republic of Cuba nationals apply for their visas at the United States Interests Section in Havana, Republic of Cuba, at least 21 days in advance of their travel to the United States.  The music promoters report that the nature of the music business often makes such advance planning impossible since there may be sudden changes in schedules, artists, etc.  The second issue concerns the issuance of the travel visas to Republic of Cuba nationals.  According to the music promoters, the visas are often not issued by the United States Interests Section in the city of Havana to the Republic of Cuba nationals until days (and in some cases hours) before the scheduled departure date.  The music promoters report that the delays make virtually impossible the purchase of discounted airline fares and hotel rates, which must be paid in advance and are usually nonrefundable.  The third issue concerns the type of venue within which a Republic of Cuba national is permitted to perform while within the United States.  According the regulations issued by the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C., the only requirement for a Republic of Cuba national performing in the United States is that the individual is only to receive a per diem and expenses as compensation.  Thus, popular music groups from the Republic of Cuba such as Los Van Van or Vocal Sampling or the Buena Vista Social Club are permitted by the regulations to perform in New York City’s Madison Square Garden or at Los Angeles’ Universal Amphitheater, for example, as long as the performer(s) receive only a per diem and expenses.  According to several prominent music promoters, the United States Department of State is discouraging tours where the itinerary consists of  “larger commercial venues” and is encouraging tours where the itinerary consists of a significant number of “non-commercial venues and smaller commercial venues” such as universities, social clubs, and charity events, even though the OFAC regulations make no such stipulation.  The music promoters report that such “subjective interpretations” make difficult for them to coordinate financially successful tours in the spirit of promoting “people-to-people contact.”  The music promoters report that music from the Republic of Cuba is quickly gaining popularity and that neither they nor United States-based audiences should be “penalized because the music is popular, why should a promoter have to spend additional costs using smaller venues for multiple days if a Cuban performer can play an arena?  Where else can Cubans and a large number of Americans learn more about one another than during a performance at an arena that seats 20,000?”  The OFAC permits individuals subject to United States law to perform at venues within the Republic of Cuba and to receive compensation from such performances.

AT&T IS A SPONSOR OF CUBAN MUSIC EVENT AT CARNEGIE HALL- New York City-based AT&T (1997 revenues US$52 billion) is 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.”  AT&T, Sprint, MCI, Wil-Tel, LDDS, and AT&T de Puerto Rico provide long distance services between the United States and the Republic of Cuba.  AT&T and the Italian government-controlled telecommunications company, STET, have a joint venture to develop the Latin American telecommunications market, not including the Republic of Cuba according to the companies.  STET owns significant equity interests in the national telecommunications companies of the Republic of Cuba (the minority partner), Argentina, Bolivia, Chile, and Venezuela; is currently negotiating a major project in Brazil; and owns 25% of IMPSTAT, the satellite communications company.  AT&T has holdings in 15 Latin American and Caribbean countries.

CITIBANK PURCHASE OF MEXICO BANK PERMITS CONTINUED CUBA TRANSACTIONS- The recent purchase of the 250-branch Monterrey, Mexico-based Banco Confia by New York, New York-based Citibank N.A., will 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.

ANOTHER COMPANY SEEKS OFAC LICENSE TO MARKET CUBAN MEDICINE- A non-United States-based company (the U.S.-Cuba Trade and Economic Council has agreed to maintain its confidentiality) is applying to the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury for permission to market a Republic of Cuba-developed medicine that is patented in the United States.  Recently, Philadelphia, Pennsylvania-based SmithKline Beecham, a subsidiary of Brentford, United Kingdom-based SmithKline Beecham plc, 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.  Other Republic of Cuba-produced healthcare products are being evaluated by United States-based companies.

UNITED STATES COMPANY PROMOTING TREATMENT ALSO TESTED IN CUBA- Fairfield, New Jersey-based BioTherapies, Inc., a dietary supplement company, has reported that shark cartilage may provide value in seeking methods to inhibit new blood vessel growth (angiogenesis) in disease.  BioTherapies markets Cartilade as the only patented, natural antiangiogenic product available for purchase.  Cartilade was used in an extensive trial at the University of Havana in the Republic of Cuba where positive results were reported in the treatment of cancer.

SMITHKLINE BEECHAM PLC SEEKS TO TEST CUBAN VACCINE- Philadelphia, Pennsylvania-based SmithKline Beecham, a subsidiary of Brentford, United Kingdom-based SmithKline Beecham plc, has asked the Clinton Administration 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.  Other Republic of Cuba-produced healthcare products are being evaluated by United States-based companies.

SHERATON HOTEL HAS CASA DEL HABANO- The 798-room Sheraton Hong Kong Hotel & Towers on Nathan Road in Kowloon now has a Casa del Habano retail cigar store.  Phoenix, Arizona-based, Starwood Hotels & Resorts Worldwide owns ITT Sheraton Corporation.  The Sheraton Hong Kong Hotel & Towers is a “partially-owned” property, meaning that ITT Sheraton Corporation is one of the owners.  The inauguration ceremony was attended by H.E. Jose A. Guerra Menchero, Ambassador of the Republic of Cuba to Hong Kong, and Mr. David Tang, Honorary Consul in Hong Kong of the People’s Republic of China, owner of a prominent retail department store chain, and the exclusive distributor in Hong Kong of Republic of Cuba-produced cigars.  There are now fifty Casa del Habano retail stores throughout the world.  Earlier this year, the Ministry of Tourism of the Republic of Cuba established an office in the Hilton Hotel located in Izmir, Turkey.  The Hilton Hotel in Izmir is managed by Hilton International, which is not affiliated with United States-based Hilton Hotels Corporation.

DELTA AIR LINES CODE SHARE PARTNER AEROPOSTAL TO BEGIN CUBA FLIGHTS- Aeropostal, the largest domestic and international airline headquartered in Venezuela, will commence Caracas-Havana-Caracas flights in May 1998.  Since April 1998, Aeropostal has operated a code-sharing agreement with Atlanta, Georgia-based Delta Air Lines.  In an article appearing in the 6 April 1998 issue of the Atlanta Business Chronicle, Mr. E. Todd Clay, a spokesperson for Delta Air Lines, said that when commercial service to the Republic of Cuba is again authorized, the company will, “like other Caribbean and Latin American countries,  . . .  look at the opportunities there.”  Since 1962, Delta Air Lines has had route authorities from the following cities: Havana to Houston, Los Angeles, New Orleans, San Francisco, and San Juan.

DELTA AIR LINES AND UNITED AIRLINES ALLIANCE HAS 94% OF CUBA ROUTES- The marketing agreement (code-sharing and frequent flyer programs) announced on 30 April 1998 between Atlanta, Georgia-based Delta Air Lines (1997 revenues US$13 billion) and Elk Grove Township, Illinois-based United Airlines (the nation’s largest air carrier, 1997 revenues US$16 billion), will control an estimated 35% of the domestic United States air travel market and establish a relationship between two airlines that have existing route authorities between the United States and the Republic of Cuba.  Since 1962, Delta Air Lines 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; and 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 Camaguey 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..  The Delta Air Lines/United Airlines alliance will control 36 of the 38, or 94% of the existing route authorities.

CONTINENTAL AIRLINES AND NORTHWEST AIRLINES ALLIANCE HAS CUBA IN COMMON- In April 1998, Houston, Texas-based Continental Airlines (1997 revenues US$6 billion) and St. Paul, Minnesota-based Northwest Airlines (1997 revenues US$9 billion) announced a marketing agreement (code-sharing and frequent flyer programs) which will control an estimated 20% of the domestic United States travel market and provide Northwest Airlines with access to Continental Airlines’ existing route authority between the United States and the Republic of Cuba.  Since 1962, Continental Airlines has had route authorities from the following cities: Havana to Fort Lauderdale, West Palm Beach.  The Continental Airlines/Northwest Airlines alliance will control 2 of the 38, or 6% of the existing route authorities.

US AIRWAYS GIVES PASSENGERS CREDIT FOR CUBA MILEAGE- Arlington, Virginia-based US Airways Group, a holding company with annual global revenues exceeding US$8 billion in 1997, and whose primary subsidiary is 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 worldwide 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.

INTEREST IN HEALTH CARE PRODUCTS TRADE SHOW AT 130 AND COUNTING- Reaction has been substantial to the 6 April 1998 announcement that PWN Exhibicon International L.L.C., a member of the U.S.-Cuba Trade and Economic Council, has received the first license from the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C., to organize within the Republic of Cuba a Trade Show for United States Medical Equipment and Health Care Products.  Mr. Peter W. Nathan, president of PWN Exhibicon International L.L.C., said that, prior to the announcement, approximately 100 United States-based companies had expressed interest in participating in the trade show.  After the announcement, an additional 30 companies (including non-United States-based companies with United States-based affiliates) expressed interest in participating in the trade show.  Interested in being sponsors of the trade show include one of the largest technology companies in the world, one of the largest nutritional supplement products companies in the world, and one of the largest travel services companies in the world.  Of the post-announcement inquiries, four companies are interested in providing services such as freight forwarding and travel and seven individuals expressed interest in assisting as interpreters and consultants.  Mr. Nathan offered that a significant number of the 130 interested companies and seven individuals are both located in the State of Florida and are of Cuban descent.  Individuals who would be qualified to participate in the trade show include executives and representatives from United States companies that manufacture, distribute, market, and retail, health care sector informational materials, medical equipment, medical instruments, medical supplies, medicated products, medicines, and pharmaceuticals.  The trade show will be an opportunity for United States health care sector companies to directly 1) provide informational materials and demonstrate products 2) meet with officials of Ministry of Public Health (MINSAP) and MediCuba (the entity under the auspices of MINSAP which coordinates the importation and exportation of health care products), and 3) meet with administrators of hospitals and clinics and with physicians and nurses of hospitals and clinics from throughout Cuba who provide services to the country’s 11 million citizens.  For information regarding trade show participation, sponsorship, costs, and dates, please contact Mr. Peter W. Nathan at (203) 222-8660 or by facsimile at (203) 222-8335.

DELTA AIR LINES AND CUBA- In an article appearing in the 6 April 1998 issue of the Atlanta Business Chronicle, Mr. E. Todd Clay, a spokesperson for Atlanta, Georgia-based Delta Air Lines, Inc., said that when commercial service to the Republic of Cuba is again authorized, the company will, “like other Caribbean and Latin American countries, ... look at the opportunities there.”  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.

AMERICAN AIRLINES, AMERICAN EXPRESS, AND WESTERN UNION HAVE OFAC LICENSES- The Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C., has, as of 26 February 1998, issued 145 travel-related and service-related licenses to 70 United States-based companies including American Airlines (CSP), American Express Travel Related Services (TSP), and Western Union Financial Services (FRF).  The licenses, which are generally renewed every twelve months, authorize United States-based companies to provide services for individuals subject to United States law with respect to traveling to the Republic of Cuba and for sending funds to the Republic of Cuba.  The license categories are: 1) Travel Services Provider (TSP) 2) Carrier Service Provider (CSP) and 3) Remittance Forwarding Services (FRF).  Executives of United States-based companies report that becoming an authorized OFAC travel-related and service-related licensee for the Republic of Cuba assists with developing a) operational experience within the Republic of Cuba and b) relationships with individuals within the Republic of Cuba.  In 1997 an estimated 70,000 individuals subject to United States law visited the Republic of Cuba.  With the resumption of the direct flights between the United States and the Republic of Cuba scheduled to be operational in April 1998, the three United States-based companies currently operating the indirect flights between the United States and the Republic of Cuba (C. & T. Charters, Airline Brokers Company, and Wilson International Services) estimate that 100,000 individuals subject to United States law will travel to the Republic of Cuba in 1998.  The increase will result from a) a savings of approximately US$100.00 per ticket now that the flights will be direct and b) less time involved in making the visit- from a current three hours to one hour.  Some United States-based companies have OFAC licenses to provide more than one type of service.  The OFAC reports that the number of applications being submitted for such licenses, and the renewal of such licenses, continues to increase.
 

CESSNA AIRCRAFT TO BE USED TO OPERATE AIR SHUTTLE SERVICE- Guatemala City, Guatemala-based Grupo TACA, a consortium, has agreed to establish an Inter-Republic of Cuba air shuttle operation, Iter-Cuba S.A., with Republic of Cuba government-operated AeroTaxi S.A., which is a subsidiary of Gaviota S.A., which is controlled by the Revolutionary Armed Forces of the Republic of Cuba.  Inter-Cuba S.A., will use 14-passenger United States-built Cessna aircraft.  The Cessna Aircraft Company, which is located is Wichita, Kansas, is a subsidiary of Rhode Island-based Textron, Inc.  The flights will be piloted by Costa Rican nationals with the first officer being a Republic of Cuba national.  Inter-Cuba S.A. will serve the cities of Havana and Trinidad, and resort areas of Varadero, Cayo Coco, Cayo Largo, and Nueva Gerona on the Isla de la Juventud.  Ticket prices will range from US$30.00 to US$100.00.  Grupo TACA includes TACA airlines of El Salvador, AVIATECA airlines of Guatemala, LACSA airlines of Costa Rica (which already operates San Jose-Havana-Toronto flights), and NICA airlines of Nicaragua.  By establishing operational agreements with existing airlines, the Institute of Civil Aeronautics of the Republic of Cuba (IACC) will gain the use of non-U.S.S.R.-built aircraft to primarily transport tourists within the Republic of Cuba.  This is significant due to one result of the 1997 crash of a Cubana Airlines U.S.S.R.-built turboprop aircraft in Santiago de Cuba, the island’s second-largest city.  After the crash, United Kingdom-based tour operators and travel agents were instructed by the government of the United Kingdom not to permit their clients to travel within the Republic of Cuba on Cubana Airlines aircraft.  Cubana Airlines continues to replace its primarily U.S.S.R.-built aircraft fleet with aircraft manufactured by Fokker and Boeing.  Cubana Airlines has also discussed the purchase of aircraft manufactured by Airbus and Canada-based manufacturers.

SPAIN’S SOL MELIA S.A. HAS UNITED STATES INVESTORS- According to Spain-based financial analysts and United States-based financial analysts, approximately 15% of the 1996 public offering by Spain-based Sol Melia S.A. is held by individuals subject to United States law.  Sol Melia S.A. manages 8 hotels within the Republic of Cuba of a total 227 hotels worldwide.  During the last six years, individuals subject to United States law have been increasing their investments within non-United States-based companies that have a commercial presence (import-related, export-related, service-related, or investment-related) within the Republic of Cuba.  Individuals subject to United States law may have indirect non-controlling investments in the Republic of Cuba.  On 4 March 1994 the Office of Foreign Assets Control (OFAC) of the U.S. Department of the Treasury issued an opinion which stated that a U.S. business or individual subject to U.S. law may make a secondary market investment in a third-country business which has commercial dealings within the Republic of Cuba.  This is provided that the investment does not result in control-in-fact of the third-country business by the U.S. investor and the third-country company does not derive a majority of its revenues from business activity within the Republic of Cuba.  Secondary market investment that falls short of a controlling interest in such a business is not prohibited.

USCTEC SPONSORS CARDINAL FLIGHTS WITHIN CUBA- The U.S.-Cuba Trade and Economic Council has received a license from the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C., to provide general aviation aircraft for use within the Republic of Cuba by United States-based Cardinals, Archbishops, and Bishops, in conjunction with the visit of His Holiness Pope John Paul II.  Among the contributors of funds for the flights are Decatur, Illinois-based, Archer Daniels Midland Company (telephone 217-424-5515) and Cheektowaga, New York-based, Niagara Hobby & Craft Mart (telephone 716-681-1666).
In a statement issued by Niagara Hobby & Craft Mart, the company said that it believes “the visit of Pope John Paul II to Cuba is important for the People of Cuba, for the People of the United States, and for the relationship between Cuba and the United States.  When asked to provide assistance, the answer was an unqualified ‘yes.’” Five United States-based companies that are members of the U.S.-Cuba Trade and Economic Council offered the use of their aircraft in conjunction with the visit of His Holiness Pope John Paul II.

USCTEC MEMBER ROLLS OUT RED CARPET FOR THE POPE- A United States-based company that is a member of the U.S.-Cuba Trade and Economic Council reports that it has sold a 150 feet long by 6 feet wide red carpet which seemed to be destined for use during the visit of His Holiness Pope John Paul II to the Republic of Cuba.  The company reports that the transaction was in compliance with regulations administered by the Office of Foreign Assets Control (OFAC) of theUnited States Department of the Treasury in Washington, D.C.

USCTEC MEMBERS MAKE DONATIONS TO SUPPORT VISIT OF THE POPE- Members of the U.S.-Cuba Trade and Economic Council have donated approximately US$100,000.00 in funds, products, and services to various United States-based organizations and to various Republic of Cuba-based organizations in support of the visit of His Holiness Pope John Paul II to the Republic of Cuba.  The United States Department of State reports that the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C., has licensed several hundred thousand dollars in contributions.

US$446,050,000.00 ESTIMATED TO CUBA IN 1997- Remittances from individuals subject to United States law to relatives within the Republic of Cuba were estimated to be US$275 million in 1997.  There are approximately 1,500,000 individuals (or approximately 375,000 families) subject to United States law whose members are of Republic of Cuba-descent and who reside in the United States.  General remittances (almost 100% of which are in the form of cash) are not authorized by the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in Washington, D.C.  Only special remittances are licensable by the OFAC for a) an extreme humanitarian circumstance or b) for emigration fee payments to the government of the Republic of Cuba.  Remittances to the Republic of Cuba (from outside of the United States) by individuals of Republic of Cuba-descent to their relatives residing within the Republic of Cuba are estimated to be approximately US$300 million annually.  Long Distance Telephone Service Payments were estimated to be US$80 million.  The Cuban Democracy Act (1992) authorizes United States-based communications companies to share revenues with ETECSA, the Republic of Cuba government-operated telephone company.  The United States-based companies providing the payments include AT&T, WilTel, Global One, MCI, IDB Worldcom, Worldcom, AT&T Puerto Rico, Sprint, and Telefonica Larga Distancia de Puerto Rico.  Overflight Payments to the Republic of Cuba by United States-based air carriers were estimated to be US$6 million.  Emigration Fees paid by Republic of Cuba nationals to the government of the Republic of Cuba for passports, medical services, etc., were estimated to be US$1,000,000.00.  The government of the United States and the government of the Republic of Cuba have an immigration agreement signed in 1993 that provides for up to 20,000 Republic of Cuba nationals to enter the United States annually.  Departure Taxes from the Republic of Cuba for individuals subject to United States law were estimated to be US$1,050,000.00 from approximately 70,000 visitors each paying US$15.00.  Travel Visa Payments are estimated to be US$3,500,000.00 from approximately 70,000 individuals subject to United States law.  Authorized Daily Expenditures were estimated to be US$70,000,000.00.  The OFAC authorizes up to US$100.00 to be spent within the Republic of Cuba by individuals subject to United States law, although most individuals subject to United States law visiting the Republic of Cuba spend an average of US$150.00 to US$200.00 per day.  On average, individuals subject to United States law visit the Republic of Cuba for ten (10) days.  Product Imports were estimated to be US$7,500,000.00 by individuals subject to United States law who visit the Republic of Cuba.  The OFAC authorizes the purchase of up to US$100.00 in Republic of Cuba-origin products for personal use to be imported to the United States.  The importation of informational products (books, magazines, music, videos, etc.) is unlimited, as is the quantity and value of artwork.  Charter Flight Payments by United States-based air charter companies to the government of the Republic of Cuba were estimated to be US$2,000,000.00 based upon approximately 48,653 passengers.