Guerlain Of Paris Returns To Its Store In Havana

Levallois-Perret, France-based Guerlain (2015 revenues exceeded US$450 million), a subsidiary of Paris, France-based LVMH (2015 revenues exceeded US$40 billion), has re-established a presence in the city of Havana, Republic of Cuba.  LVMH brands also include Louis Vuitton, Sephora, Christian Dior SE, and Hennessy among others.

Havana, Dec 16 (Prensa Latina) "French perfume house, Guerlain, has reopened today in Havana in the same street where it first opened in 1917, after a deal between Cuban tourism company Habaguanex and Saint Remy Trading S.A., from France.

Located at 157 Paseo del Prado or Marti St., between Refugio St. and Colon St., this house is now ready to please the most demanding customer, especially Europeans who are visiting the Cuban capital.

Saint Remy's brand manager, Susel Ferran, said during the reopening ceremony that the facility will soon turn 100 years since Guerlain was opened in Cuba as a sign of the glamorous French and European market.

The perfume house is now located in the same place, thanks to the efforts by Havana historian, Eusebio Leal, unequaled animator of many of the emblematic projects in Old Havana.

At the beginning, Guerlain aimed at expanding to other horizons and for that purpose, it chose Latin America and a small market as Cuba.

Pierre-François Pascal Guerlain founded in 1828 the first perfumes business that bears his name in a small place close to the center of Paris.

There are currently only seven boutiques in Paris, as well as other exclusive boutiques in Frankfurt, Milan, Hong Kong, Singapore and now one in Havana. Its fragrances are sold in Europe, the United States, Asia and Oceania, Africa and the Middle East."

24 Months- What To Make Of The Obama Administration “Initiatives”? Both Governments Failed

What To Make Of The Obama Administration “Initiatives”

17 December 2014 through 17 December 2016

Has the United States business community gained value from the actions of the Obama Administration?  Yes, it has.

Has the United States business community gained value from the actions of the government of the Republic of Cuba?  Yes, it has.

However, because each government has created value does not mean that each government has created success… has not maximized the opportunity.  They have not…. yet.  LINK 

When President Barack Obama addressed the nation on 17 December 2014, he wore a dark suit, stood at a podium, and used 2,283 words to share with specificity what he wanted to do to, with, and for the citizens of the Republic of Cuba. 

When President Raul Castro addressed his nation the same day, he wore a military uniform, sat at a desk, and used 682 words to convey his thoughts. 

During the last twenty-four months, there have been opportunities missed, abandoned, and mishandled.  The difficult issues have been avoided by both governments- and the United States business community has suffered for it. 

The most significant error in judgement by each country: believing the time-frame for opportunity was 17 December 2014 to 20 January 2017 (inauguration day) rather than 17 December 2014 to 8 November 2016 (election day).

The governments have focused upon what was easy rather than what was difficult in part because each believed there would be continuity. 

The government of the Republic of Cuba did not believe that Donald Trump would win.  The Obama Administration did not believe that Hillary Clinton would lose.  They each planned poorly.

For the Obama Administration, there would be a Clinton Administration to pitch the issues that would not need be a part of the twenty-four-month “legacy-defining” effort.  For the government of the Republic of Cuba, there would be a Clinton Administration- so no requirement to give too much too soon.

The unilateral component of the Obama Administration “initiatives” could (should) have commenced in January 2009- when the United States Congress was controlled by the President’s political party; legislative remedies would have likely discovered a pathway to enactment.

Regardless, the Obama Administration retained substantial regulatory latitude from which to create a nearly impervious-to-change commercial, economic and political landscape; leaving only statutes to be addressed by a successor.  The President failed to use this power to its capacity and, as a result, failed to truly define a “legacy.”  Legacy is about doing what is hard, not what is easy.

Senior-level officials of the Obama Administration high-five and fist-pump “successes” from “negotiation” with the government of the Republic of Cuba.  The Obama Administration extracted nothing that the government of the Republic of Cuba believed was essential to retain.

There have been negotiated eleven (11) non-binging agreements (including memoranda of understanding) between the government of the United States and government of the Republic of Cuba, with six (6) more expected by 20 January 2017.  “Non-binding” is noteworthy.  But, it’s better that they exist.

The Obama Administration “initiatives” added one (1) item to the list of agricultural commodities eligible for importation to the United States… coffee.  One item in twenty-four months.  This was not a serious effort.

The Obama Administration “initiatives” include the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury refusing to authorize Republic of Cuba government-operated financial institutions to have accounts with United States-based financial institutions.  The result, more than US$180 million in third-party fees paid to financial institutions located in Panama and other countries.  Those funds could have been used to purchase more products from the United States.  For perspective, United States agricultural commodity/food product exports to the Republic of Cuba in 2015 were US$170,551,329.00- about the same as the banking fees.

The Obama Administration “initiatives” failed to meaningfully impact creating a resolution to the issue of the 5,913 claims valued at US$1,902,202,284.95 and certified by the United States Foreign Settlement Claims Commission USFCSC).  The foundation of the “embargo” is the expropriation of assets.  It should have been the primary focus.  There have been two meetings in two years- and a second meeting was not scheduled after the first meeting and a third meeting was not scheduled after the second meeting.  The Obama Administration referred to the meetings as “negotiations” while the government of the Republic of Cuba referred to the meetings as “discussions.”  That’s a problem.

The United States Secretary of Commerce and United States Secretary of Agriculture said that they were prohibited by United States law from having representatives of United States-based companies participate in their visits to the Republic of Cuba in 2015.  The United States Department of State included representatives of United States-based companies (and United States-based subsidiaries of non-United States-based companies) in an official delegation to the Republic of Cuba in 2016.  The United States Secretary of Transportation and, separately, his deputy, traveled aboard, respectively, a Jet Blue Airways aircraft and an American Airlines aircraft on inaugural flights from the United States to the Republic of Cuba this year.  So much for consistency.

The United States Department of Agriculture (USDA) requests US$1.5 million for staff to be dispatched to the Republic of Cuba and ensconced in the United States Embassy in Havana, Republic of Cuba.  However, the USDA refuses to provide details about the US$1.5 million- they simply refuse to provide the data.  Astonishing.  It’s not classified.

The Obama Administration has been secretive about who has visited the Republic of Cuba and for what purpose the visit was scheduled.  This information, especially available in advance, would have provided United States-based companies with opportunities to provide valuable insight that is often absent from public sector representatives. 

The United States Trade Representative (USTR) visits the Republic of Cuba and no one believes advance notification of this visit would be of interest to the United States business community?

The government of the Republic of Cuba often provides a level of detail about discussions that exceed that espoused by the Obama Administration.

The Obama Administration has often been punitive, secretive, selective, insular, churlish, and devoid of transparency relating to its Republic of Cuba-focused “initiatives.”

As often with representatives of the government of the Republic of Cuba, the Obama Administration has too often embraced a 100%-with-us or 100%-against-us conversational framework.

The Obama Administration has been dishonest with the use of data.  On 14 December 2016, The Honorable Josh Earnest, Assistant to the President and Press Secretary, shared at a daily press briefing: “More than $6 billion in trade has been initiated between Cuba and the United States since then, which obviously has an important economic benefit here in the United States.”  During the last twenty-four months, the total value of United States exports (not donations) to the Republic of Cuba is approximately US$370,807,660.00.  The term “trade” connotes exports and imports- what is the value of the imports?   

The following day, a representative of Mr. Earnest shared when asked about the genesis of the statement “The Department of Commerce will be best to answer this question, as it is based on their data on authorized exports.”  Authorized exports are different than actual exports; and making the statement that the “trade” has been “initiated” and “has an important economic benefit here in the United States” is clearly intended to imply far more than is reality.  Noting aspiration is important; defining aspiration as fact is wrong.       

Of the thirty-four (34) United States-based companies with an announced presence in the Republic of Cuba, including those donating products/services, twenty-six (26) focus upon hospitality- transporting, funding, communicating, and lodging for visitors.  They are sources of revenue for the Republic of Cuba.

From June 2016 through the end of calendar year 2017, travel-related revenues to United States-based companies could be as high as US$720 million- airlines (US$300 million), cruise ships (US$300 million), hotels (US$40 million), tour operators/travel agents (US$80 million).  The potential value to the Republic of Cuba could be US$1 billion.  Blog Post: http://www.cubatrade.org/blog/2016/5/1/the-commercial-political-impact-of-cruise-ships-from-the-us-to-cuba?rq=carnival  Blog Post: http://www.cubatrade.org/blog/2016/7/7/there-are-20-routes-us-airlines-want-70-us-airlines-request-34-million-seats-dot-will-authorize-11-million-seats-cuba-has-64000-hotel-rooms-with-80-occupancy-rates?rq=airlines

If the Trump Administration does not impede travel to the Republic of Cuba by individuals subject to United States jurisdiction, more than 400,000 could visit in 2017, not including hundreds of thousands of individuals of Cuban-descent visiting family.

The Obama Administration “initiatives” and the (limited) acceptance by the government of the Republic of Cuba of those “initiatives” have represented potentially US$12 billion in value to the Republic of Cuba since 17 December 2014.  Blog Post: http://www.cubatrade.org/blog/2016/11/18/were-obama-administration-initiatives-worth-us12-billion-to-cuba-during-last-23-months-trump-administration-impact?rq=US%2412%20billion

Of the thirty-four (34) United States-based companies with an announced presence in the Republic of Cuba, including those donating products/services, there has been one (1) reported purchase by a Republic of Cuba government-operated entity of a durable product (valued at approximately US$125,000.00) from a United States-based company. 

The government of the Republic of Cuba has not permitted United States-based companies to directly engage with independent entities (businesses or individuals), has not permitted United States-based companies to establish offices (other than airlines), and has not permitted United States-based companies to create and participate in a wholesale marketplace.

For the government of the Republic of Cuba, the goals are to remove what has crumbled, repair what is crumbling, and construct the future.  

As of 12:00 pm on 20 January 2017, they will now have to do so with a new “initiator-in-chief.” 

All the opportunities that could have been, but were not easily digestible during the last twenty-four months, will soon look far more appetizing, but also now unavailable at a palatable cost.

COMPLETE ANALYSIS IN PDF FORMAT

WH Press Secretary On Cuba; US$6 Billion Is Misleading, He Knows It, And Not The First Time Administration Officials Have Said It

The White House Reports US$6 Billion; They are short US$5,629,086,137.00

This is not the first time that an official of the Obama Administration has exaggerated the value of commercial activity between the United States and the Republic of Cuba.  The Honorable Penny Pritzker, United States Secretary of Commerce did so in March 2016:

http://www.cubatrade.org/blog/2016/3/13/nidtwnqhvdtl3nmkj8s9l3w7it6xb1?rq=United%20States%20Department%20of%20Commerce

A Senior-Level Official of the Bureau of Industry and Security (BIS) of the United States Department of Commerce did so in October 2016:

http://www.cubatrade.org/blog/2016/10/16/has-the-obama-administration-called-it-quits-leaving-united-states-companies-with-more-than-was-expected-but-far-less-than-was-needed?rq=US%246%20billion

There is a substantial political component, which commenced during the Bush Administration and has continued through the Obama Administration- increase the value of licenses so as to emphasize 1) The White House was authorizing/encouraging commercial activity 2) Demonstrate that United States companies were eager to engage with the Republic of Cuba and 3) Reinforce the narrative that the government of the Republic of Cuba was not engaging to the level that United States companies were desiring.

Aggressively marketing aspirational license values can create an unsustainable and, more significantly, an unattainable commercial landscape.  Important to neither oversell the Republic of Cuba nor undersell the Republic of Cuba.  Sell it for what it is and be reasonable and honest about the potential.  This will provide value to United States companies.

Creating a narrative within which the government of the Republic of Cuba is unlikely to have the capacity to participate is unproductive and potentially harmful.

Since the enactment of the Trade Sanctions Reform and Export Enhancement Act (TSREEA) of 2000, the total value of agricultural commodity/food products exported from the United States to the Republic of Cuba is US$5,273,721,859.00.

Since 2003, the total value of healthcare products (medical equipment, medical instruments, medical supplies, pharmaceuticals) under provisions of the Cuban Democracy Act (CDA) of 1992 is US$14,758,950.00

For the period 17 December 2014 through 31 October 2016, the total value of TSREEA and CDA exports from the United States to the Republic of Cuba is US$370,663,863.00.  Add to this value approximately US$250,000.00 in products exported from the United States to the Republic of Cuba regularly-scheduled airline operations, hotel management contracts, and other Obama Administration-related initiatives (that are not donations).

So what does the remaining US$5,629,086,137.00 represent?

If this value represents real and potential exports, all of the funds received as payment(s) would need to be transferred through third country financial institutions because the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury will not permit Republic of Cuba government-operated financial institutions to have accounts with United States-based financial institutions.  As a result, there is no direct correspondent banking so more than US$180 million in fees are paid to financial institutions domiciled in other countries.

THE WHITE HOUSE
Office of the Press Secretary
December 14, 2016
PRESS BRIEFING BY PRESS SECRETARY JOSH EARNEST
James S. Brady Press Briefing Room
12:20 P.M. EST

Q    Last, I'd like to get your sort of expanded comments on something Ben Rhodes talked about, and that is the continued relations between the United States and Cuba, and the importance moving forward.  What is the President's message?  And will he reach out directly to the President-elect about the importance of maintaining that relationship and some of the pitfalls that come along with that, given their lack of human rights and other concerns that many people around this country have?

     MR. EARNEST:  Yeah.  Well, listen, Kevin, we've got concerns about the human rights situation in a lot of countries around the world, including some countries like China and Russia that we've already spent a lot of time talking about today.  The question really is, how do we shape those relationships so the United States benefits from them?  How can we shape those relationships so that we can put pressure on those countries to improve the human rights situation inside their country while at the same time giving the American people the opportunity and our country the opportunity to benefit from those relationships?  

     So when it comes to Cuba, the United States had had a policy in place for more than five decades that attempted to isolate Cuba in an effort to pressure them to improve their respect for human rights.  That policy failed.  That policy was in place for more than 50 years and it didn't have the desired outcome.  So President Obama decided to try something new.

     And in just two years since the President decided to try a new approach that would seek to normalize relations between our two countries, we've made a lot of important progress.  More than $6 billion in trade has been initiated between Cuba and the United States since then [emphasis added], which obviously has an important economic benefit here in the United States.  More Cuban Americans are able to send more money and travel more frequently to Cuba to visit their family members who remain in that country.  Other Americans who are interested in visiting Cuba for cultural or educational reasons can have the benefit of learning more about the island and essentially deepening relations between our two countries.  Those Americans are also allowed to bring back as much Cuban rum and Cuban cigars as they'd like for their own personal use.  So there are a variety of benefits, you might say, that the American people can enjoy as a result of this policy change.

     Just as importantly, the Cuban people are benefitting too.  And we're seeing the Cuban economy -- particularly when it comes to entrepreneurs in that country -- benefit from more interactions with Americans who are traveling to their country.

     Q    But would that lead to a change in their human rights posture at all?  I mean, because on the one hand you said, listen, the old policy didn't work as far as human rights were concerned.  Now this new policy seems to be working perhaps economically, certainly for them, and I think, from a social perspective, perhaps even for the American and Cuban relations.  But is that changing the paradigm on human rights?

     MR. EARNEST:  Well, it certainly is ramping up pressure on the Cuban regime.  And earlier this year, many of you had the opportunity to travel to Cuba with the President where the Cuban President was asked directly and put in the international spotlight around a question about whether or not his government takes political prisoners.  

That’s increasing pressure on the Cuban government in a way that, frankly, they’re not used to seeing.  That was a rather remarkable, extraordinary event, those of you who saw it may recall.  There were two different times in which an aide came onstage to whisper in the ear of the Cuban President about how best to answer this question because they understood they were facing more public pressure than ever before about their respect for human rights; certainly more pressure than they faced when they were under an embargo for more than 50 years.  And that pressure was only existent -- only existed because of the President’s trip down there and his commitment to the pursuit of this approach.

I think the last thing is, if we’re actually interested in trying to protect and advance the interests of the Cuban people, if we actually care about their plight, then we might consider what their view is of the policy.  And all the public data that I’ve seen is that, in some cases, more than 90 percent of Cubans actually believe that this policy has been good for them.

So this is a policy that has only been in place for two years, and the President is hopeful that as this policy remains in place, we’ll have more benefits to show from it.  But of course, the next incoming President will have something to say about that.

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Why GE Is Good For U.S. Companies, Good For Cuba & Not Bad For Trump Administration

Recently-departed from Fairfield, Connecticut, and now Boston, Massachusetts-based General Electric (GE), 2015 revenues exceeded US$140 billion, is soon to announce an agreement with Republic of Cuba government-operated Ferrocarriles Nacionales de Cuba in conjunction with the Ministry of Foreign Trade of the Republic of Cuba (MINCEX) for the export of passenger train locomotives as a part of a five-year program by the government of the Republic of Cuba to update its passenger and freight systems. 

GE has not reported on the provision of license(s) from the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury and/or Bureau of Industry and Security (BIS) of the United States Department of Commerce.  Transparency will be important- providing data relating to what to be delivered, when it will be delivered, where will it be manufactured, what is the cost, and what are the terms of the transaction.

Companies from the Russian Federation and People’s Republic of China are participating- and are receiving substantial financing from their respective governments.

GE is also discussing opportunities relating to the production and use of renewable energy, including biofuels, healthcare, and other product and service offerings. 

In November 2016, Republic of Cuba government-operated Cuban Union Railways (UFC) signed a contract (with long-term financing from the Export Insurance Agency of Russia) for sixty-eight (68) long-distance passenger rail cars from Russian Federation-based Transmashholding.

In July 2016, the UFC signed a contract (with long-term financing from the Export Insurance Agency of Russia) with Lyudinovo Locomotive Works (LTZ) for seventy-five (75) locomotives (TGM8KM Series) with the first to be delivered in May 2017; and spare parts for existing locomotives delivered in November 2016.  All locomotives are scheduled to be delivered by the end of 2021.  Yekaterinburg, Russia-based Sinara Transport Machines (STM), an engineering company, reported managing projects valued at US$246 million in the Republic of Cuba.

In November 2015, UFC signed an agreement for the purchase of 240 passenger rail coaches from the People’s Republic of China.  The funding for the purchase was obtained in February 2016 from the Exim Bank of the People’s Republic of China.

UFC reported that it hauls sixteen (16) million metric tons of freight per year for the Republic of Cuba's sugar industry.

GE is among an increasing number of United States-based companies that have evaluated the use of credit programs offered by countries within which are located foreign subsidiaries.  Blog Post-http://www.cubatrade.org/blog/2016/10/11/foreign-subsidiaries?rq=canada

On 31 March 1971, GE certified a claim in the amount of US$5,870,436.86 through the United States Foreign Claims Settlement Commission (USFCSC) within the United States Department of Justice.  Interest accrued at 6% per annum from the respective date(s) of loss to the date of settlement.  [Click Here For Claim Document].

GE is the second United States-based company with a certified claim to engage (place assets) within the Republic of Cuba. 

In 2016, Stamford, Connecticut-based Starwood Hotels & Resorts Worldwide (2015 revenues exceeded US$5.7 billion), which is a subsidiary of Bethesda, Maryland-based Marriott International (2015 revenues exceeded US$14 billion), was granted a license by the OFAC to manage properties in the city of Havana owned by Republic of Cuba government-operated entities. 

As a result of a series of mergers and acquisitions during the last fifty-seven years, a US$51,128,927.00 claim initially made by New York-based International Telephone & Telegraph Corporation (ITT) is now controlled by Starwood Hotels and Resorts Worldwide. [Click Here For Claim Document].

The Libertad Act (“Helms-Burton”) of 1996 includes a provision authorizing certified claimants to directly negotiate a settlement with the government of the Republic of Cuba, independent of the USFCSC process.

Neither GE nor Starwood Hotels & Resorts Worldwide have reported that the companies settled, are negotiating or have relinquished their respective certified claims.

That GE will have its brand again visible in the Republic of Cuba is good for United States-based companies.

That GE is providing for the 11.4 million citizens of the Republic of Cuba what the government of the Republic of Cuba chooses not to should not be considered detrimental by the incoming Trump Administration as GE will be a highly-visible example of the limitations inflicted by the commercial, economic and political systems of the Republic of Cuba.

The cautionary element, as in many transactions involving the Republic of Cuba, is the government of the Republic of Cuba uses little of its currency- it’s on the receiving end of largess which does not robustly encourage commercial, economic or political change.

The government of the Republic of Cuba does not feel it needs to provide precious foreign exchange for virtually any project- whether those with United States-based companies or non-United States-based companies. 

There is a belief that the Republic of Cuba is owed by governments of countries; that the island stood firmly and at great cost against capitalism, for communism, and against the United States…. and should be rewarded, compensated, and supported to continue that effort and thus not create an economy which is based upon what it can afford, but rather one that others make payment to maintain the prototype.      

With respect to commercial transactions with United States-based companies, the government of the Republic of Cuba believes that whatever is received provides recompense for harm inflicted by the United States not since 1959, but since 1898.

As President-Elect Donald J. Trump is expected to embrace a transactional presidency, with most domestic and foreign policies birthed within the West Wing of The White House.  How those policies will be implemented may be intensely swayed by Departments and Agencies, along with Members of the United States Congress.

The Republic of Cuba will find peril in defining a transactional relationship with the Trump Administration as “you give, we take.”  Playing a game of “chicken” with the Obama Administration was relatively easy to win because of predictability; the government of the Republic of Cuba shouldn’t expect that with the Trump Administration.  

GE is the 11th largest company, by revenue, in the United States and the 68th largest company, by revenue in the world.  From the company: “(NYSE:GE) is the world’s Digital Industrial Company, transforming industry with software-defined machines and solutions that are connected, responsive and predictive. GE is organized around a global exchange of knowledge, the "GE Store," through which each business shares and accesses the same technology, markets, structure and intellect. Each invention further fuels innovation and application across our industrial sectors. With people, services, technology and scale, GE delivers better outcomes for customers by speaking the language of industry.”

TEXT IN PDF FORMAT

US Department Of State: U.S.-Cuba Renewable Energy and Energy Efficiency Working Group Meeting

U.S. - Cuba Renewable Energy and Energy Efficiency Working Group

Media Note
Office of the Spokesperson
Washington, DC
December 14, 2016

Today, the United States Departments of State and Energy co-chaired the first U.S.-Cuba Renewable Energy and Energy Efficiency Working Group in Washington, D.C. Participants discussed regional developments related to clean energy, including renewable energy and energy efficiency, and exchanged ideas and information on how the United States and Cuba can move forward on this shared interest.

The Renewable Energy and Energy Efficiency Working Group participants also shared information about domestic and international energy policies and established a meeting framework for future collaboration. The working group was jointly proposed and agreed to at the U.S.-Cuba Economic Dialogue on September 12 in Washington, D.C.

The Renewable Energy and Energy Efficiency Working Group is made up of officials from the United States Department of State and Department of Energy and officials from Cuba’s Ministry of Energy and Mines, Ministry of Foreign Relations, Ministry of Science, Technology and Environment, Ministry of Foreign Trade and Investment, and Ministry of Industry.

Google's Lack Of Transparency Harms US-Cuba Commercial Relationship

The refusal by Mountain View, California-based Google (a subsidiary of Alphabet, Inc.; 2015 revenues exceeded US$74 billion) to provide the following information about its transaction with the government of the Republic of Cuba harms the United States-Republic of Cuba commercial relationship- and opportunities for its expansion and support by the soon-to-be Trump Administration.

1) When will the servers be installed?

2) How many servers will be installed? (reportedly four)

3) What is the cost of the servers?

4) Where will the servers be located?

5) Is the government of the Republic of Cuba making any payment(s) for the servers?

The secrecy creates a narrative for politics to continue its invasion into the commercial process.  When United States-based companies engage with the Republic of Cuba it is important for the transaction(s) to be transparent. 

This is especially true for announcements during the final 37 days of the Obama Administration when a magnified focus will be upon any commercial, economic and political decision. 

The goal should be to inoculate commercial engagement from scrutiny, not create an attention-getting virus. 

If not, questions by media and Members of Congress may metastasize to focus upon the negative- that the secrecy relating to seemingly basic transactional data is due to the United States-based company having received a license from the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury and/or Bureau of Industry and Security (BIS) of the United States Department of Commerce to engage in a transaction(s) that if made public would encounter criticism, skepticism, antagonism or hearings.

The Honorable Susan Molinari is Vice President for Public Policy at Google.  Ms. Molinari is a former (1990-1997) member of the United States House of Representatives from New York State.

From Google (12/13/16)

Making Google products work better in Cuba

“Google and Cuba’s national telecom provider ETECSA have signed an agreement to deploy the Google Global Cache service to help improve the online experience for Cubans who are using Google products. This deal allows ETECSA to use our technology to reduce latency by caching some of our most popular high-bandwidth content like YouTube videos at a local level. This in turn means Cubans who already have access to the internet and want to use our services can expect to see an improvement in terms of quality of service and reduced latency for cached content. Our involvement with Cuba dates back to 2014, when we first launched a number of products that included Google Chrome, Google Play and Google Analytics. Just a couple of months ago we followed that up by making hundreds of thousands of free extensions and themes available on the Chrome Web Store to let Cuban users personalize their experience browsing the web with Chrome. Taken together, all these projects are tied to Google’s core values to make the world’s information useful and accessible to everyone regardless of cost, connectivity, and language barriers. Signed by Marian Croak, VP Access Strategy & Emerging Markets, and Brett Perlmutter, Head of Strategy & Operations, Google Cuba.”

CLICK FOR PDF FORMAT TEXT

Google Expands Presence In Cuba- No Payment By Cuba

GOOGLE

Making Google products work better in Cuba

From Google: “Google and Cuba’s national telecom provider ETECSA have signed an agreement to deploy the Google Global Cache service to help improve the online experience for Cubans who are using Google products. This deal allows ETECSA to use our technology to reduce latency by caching some of our most popular high-bandwidth content like YouTube videos at a local level. This in turn means Cubans who already have access to the internet and want to use our services can expect to see an improvement in terms of quality of service and reduced latency for cached content. Our involvement with Cuba dates back to 2014, when we first launched a number of products that included Google Chrome, Google Play and Google Analytics. Just a couple of months ago we followed that up by making hundreds of thousands of free extensions and themes available on the Chrome Web Store to let Cuban users personalize their experience browsing the web with Chrome. Taken together, all these projects are tied to Google’s core values to make the world’s information useful and accessible to everyone regardless of cost, connectivity, and language barriers. Signed by Marian Croak, VP Access Strategy & Emerging Markets, and Brett Perlmutter, Head of Strategy & Operations, Google Cuba.”

From Associated Press: “Under the terms, Cuba would have access to the Google Global Cache, a network of servers that accelerates internet speeds [ten times faster than current speeds in the Republic of Cuba] for Google products, like search and YouTube, said the person, who asked not to be identified because the plans haven’t been announced. The initiative was driven by a unit of Google called Next Billion Users whose purpose is to spread its services in developing countries. Eric Schmidt, chairman of Google parent Alphabet Inc., is expected to sign the deal next week in Havana, the person said.  Google opened a technology center in the capital city earlier this year as part of a White House initiative to expand internet access to Cuba.  A Google representative didn’t return a request for comment.”

From Associated Press: “Google is installing multiple servers in Cuba that will host much of the company's most popular content, the person said on condition of anonymity because the deal had not yet been made public. The agreement was being announced by Google chairman Eric Schmidt Monday morning in Havana.  Storing Google data in Cuba eliminates the long distances that signals must travel from the island through Venezuela to the nearest Google server. The U.S. has no direct data link to the island, contributing to painfully slow internet speeds that make sites like YouTube virtually impossible to use for many.”

From Google: “Our edge nodes (called Google Global Cache, or GGC) represent the tier of Google's infrastructure closest to our users. With our edge nodes, network operators and internet service providers deploy Google-supplied servers inside their network.  Static content that is very popular with the local host's user base, including YouTube and Google Play, is temporarily cached on edge nodes. Google's traffic management systems direct user requests to an edge node that will provide the best experience.  In some locations, we also use our edge nodes to support the delivery of other Google services, such as Google Search, by proxying traffic where it will deliver improved end-to-end performance for the end user.”

The offer from Mountain View, California-based Google does not mean the Republic of Cuba will avail itself to everything that Google makes possible for consumers.  However, further connectivity is good- especially for visitors (including tourists) and is particularly welcomed for business interests- where efficient Internet goes, commerce will follow.

What is to be celebrated.  The interest by United States companies in engagement with the Republic of Cuba or the Republic of Cuba’s continued willingness to accept donations of products and services and focus upon what brings it revenue rather than what requires expenditure?

The government of the Republic of Cuba would not choose to make payment for the services to be provided by Google; and the government of the Republic of Cuba would be unable to afford to invest in the technologies provided by Google.  

For the government of the Republic of Cuba, it will not allocate scarce resources to make payments to a United States-based company whose mission is to expand the unfettered global reach of individuals when the government of the Republic of Cuba is not (yet) prepared to accept, let alone embrace and permit to thrive a communicative network amongst its 11.4 million citizens that is challenging to control.  Currency equates with Risk.

People’s Republic of China-based companies have and continue to provide (either at no cost or with long-term favorable financing backed by the government of the People’s Republic of China) telecommunications and communications infrastructure and consumer communication devices to the Republic of Cuba.     

For the soon-to-be Trump Administration, the efforts by Google should not require an antacid; while Google is not being compensated, the company will be a catalyst, not the catalyst, in further reducing the communicative constraints imposed by the government of the Republic of Cuba.

http://www.cubatrade.org/blog/2016/3/21/njhpnlptgxnffjb44hfi74z42x9g6v?rq=google

Google Opens Technology Center In Havana... High Speed Internet For 40 At A Time
April 05, 2016

California-based Google has opened is technology center in the city of Havana, Republic of Cuba.  The facility has twenty Chrome notebooks, one hundred Google cardboard virtual reality visors, and two cameras for transmitting video to YouTube, owned by Google.

Republic of Cuba government-operated Empresa Nacional de Telecomunicaciones de Cuba S.A. (ETEC S.A.) is providing the facility with high-speed Internet, which is not available to the public.  The facility will be open five days a week and can accommodate forty customers (limited to one hour per session).

Reportedly, the partner in the Republic of Cuba is paying approximately US$900.00 per month to ETEC SA for high-speed Internet access- which provides the users of Chrome notebooks with a connection approximately seventy-times that of existing Wi-Fi locations throughout the Republic of Cuba.

According to ETEC SA, as of March 2016, an average of 200,000 people per day access the Internet from eighty-five (85) public Wi-Fi hotspots located throughout the country; in December 2015, the number was 150,000 users per day.  ETEC SA plans to create an additional sixty (60) wi-fi hot spots and establish one hundred (100) Internet cafes in 2016.  As of 31 December 2015, there were three hundred and forty-five (345) Internet cafes with a combined 11,187 computers.  The Republic of Cuba has 11.3 million citizens.

The Republic of Cuba accesses the Internet through an undersea fiber-optic cable connected to Venezuela in 2011, which became fully-operational in 2013.

From Google on 21 March 2016:

"¡Adelante! We’re thrilled to partner with the Museo Orgánico Romerillo in Havana, Cuba, which is showcasing the work of local artist Kcho. It will also feature some of the latest Google products including Cardboard and Chromebooks, connected to local carrier ETECSA’s Internet network. We hope this installation will enable people for whom Internet access is scarce to browse the web and find information.

We’re excited that Cuban children will be able to try out virtual reality to explore sites from around the world -- from Stonehenge to Port Hercule -- the same way that children in other countries do. These efforts, which are all led by our Access team, are just a start, but an important one. They demonstrate what might be possible in the future.

They come as other US technology firms and other companies increase their efforts in Cuba to bring a variety of services to the island -- including potentially WiFi and broadband providers as well. We’re also exploring additional possibilities around increasing and improving internet access, but they’re at early stages. We’ve always been very open about the fact that we want to make available as many of our products as possible throughout the world, because we believe that access to information and technology can improve lives.

In 2014, we launched Google Chrome, Google Play for Free Apps, and Google Analytics in Cuba. Later, after steps were taken toward normalizing relations between Cuba and the US, we introduced Toolbar in Cuba in January 2015 to help people search the web more easily.

We know, from the experience of many countries around the world, that new technologies and improved internet access can help people in their daily lives, provide new information and experiences, and help harness a country’s creativity and ingenuity. We hope to have the chance to offer more services to the Cuban people in the future."

http://www.cubatrade.org/blog/2016/10/17/google-to-support-chrome-cuba-focused-developers?rq=google

Google To Support Chrome Cuba-Focused Developers
October 17, 2016

Google has informed registered Chrome developers that the company will support free extensions, themes, and apps will be extended to the Republic of Cuba commencing on 19 October 2016.

Chrome Apps

"The default language for the Cuban Chrome Store and any content with multi-language support published there will be Spanish, and any app, theme, or extension currently published to "All Regions" will be automatically published to Cuba's Chrome Web Store.

If content is not marked for All Regions it will be excluded from the Cuban store by default. Developers are encouraged to check and adjust their publishing settings as needed, as well as internationalize their store listings if they intend to distribute to multiple regions or with multiple language options.

Relaxation of U.S. export controls and sanctions towards Cuba allowed Google to distribute Chrome in late 2014, and as relations continue to improve between the two countries we should see more companies providing their services for the people of Cuba as public internet access continues to grow."

US Exports Increase 64% For Month; 20% Thus Far For Year

ECONOMIC EYE ON CUBA©
December 2016

October Food/Ag Exports Increased 64%-
20% Increase For First Ten Months Of 2016-
First Yearly Increase Since 2011/2012-
Healthcare Product Exports-
Humanitarian Donations-
Obama Administration Initiatives Product Exports-
U.S. Port Export Data-

OCTOBER FOOD/AG EXPORTS INCREASE 64%- Exports of food products & agricultural commodities from the United States to the Republic of Cuba in October 2016 were US$21,994,945.00 compared to US$13,407,640.00 in October 2015 and US$16,511,913.00 in October 2014.  

2016- US$191,477,151.00
2015- US$170,551,329.00
2014- US$291,258,881.00
2013- US$348,747,293.00
2012- US$457,318,357.00
2011- US$358,457,389.00

COMPLETE REPORT IN PDF FORMAT

Cuba's Port Representatives To Visit US In January 2017; Was Scheduled For Sept/Oct 2016

Representatives of Republic of Cuba government-operated entities, those responsible for port operations, plan to visit the United States in January 2017; the visit had been anticipated for September 2016 or October 2016 for a tour of port facilities.  The delegation will begin its visit to Tampa, Florida.

If your port facility is interesting in hosting a meeting with the representatives of the Republic of Cuba, you are advised to directly contact Mr. Ruben Ramos Arrieta, Minister Counselor (Commercial) at the Embassy of the Republic of Cuba in Washington, DC.

Embassy of the Republic of Cuba
2630 16th Street, NW
Washington, DC20009

Telephone: (202) 797-8518/19/20
Facsimile: (202) 797-8521
Email: recepcion@sicuw.org
Email: cubaseccion@igc.apc.org
Email: secretaria@sicuw.org
Email: traduccion@sicuw.org
comercial@usadc.embacuba.cu
Internet: http://www.cubadiplomatica.cu/sicw/EN/Home.aspx

His Excellency
Jose Ramon Cabanas Rodriguez
Ambassador

Mr. Ruben Ramos Arrieta
Minister Counselor (Commercial)
Economic and Trade Office

The "earliest opportunity" Would Be 8 March 2017- Why Was This Not Announced?

Press Releases: United States and Cuba Hold Fifth Bilateral Commission Meeting in Havana, Cuba

Media Note
Office of the Spokesperson
Washington, DC
December 7, 2016

The United States and Cuba held the fifth Bilateral Commission meeting in Havana, Cuba on Wednesday, December 7. Acting Assistant Secretary of State for Western Hemisphere Affairs Mari Carmen Aponte led the U.S. delegation. Embassy Havana Chargé d’Affaires Jeffrey DeLaurentis and Deputy Assistant Secretary John Creamer also attended for the United States. Josefina Vidal, the Foreign Ministry’s Director General for U.S. Affairs, led the Cuban delegation.

The United States and Cuba reviewed the achievements of the Bilateral Commission since diplomatic relations were re-established in July 2015. The Commission has prioritized and sequenced a number of bilateral initiatives since its first quarterly meeting in November 2015. The United States and Cuba have established dialogues on law enforcement, claims, human rights, and economic and regulatory issues, and have continued biannual Migration Talks. The Bilateral Commission has provided a framework to address trafficking in persons and the return of fugitives, as well as to schedule technical exchanges on law enforcement and environmental issues.

In the last 18 months, the United States and Cuba concluded 11 non-binding agreements, including Memoranda of Understanding on health, cancer research, agriculture, environmental cooperation, hydrography, marine protected areas, counternarcotics, federal air marshals, civil aviation, and direct transportation of mail. In the coming weeks, the United States and Cuba expect to sign agreements formalizing cooperation on law enforcement, conservation, seismology, meteorology, search and rescue, and oil spill response protocols.

The United States and Cuba have coordinated a number of high-level visits, including that of President Obama in March 2016, seven cabinet-level officials, and Dr. Jill Biden. Seven U.S. governors from New York, Louisiana, Arkansas, Texas, Virginia, Missouri, and West Virginia have led trade delegations to Cuba since April 2015. More than 80 Members of Congress, both Democrats and Republicans, have visited Cuba in the last two years, many for the first time.

Purposeful travel by Americans to Cuba increased by approximately 75 percent from 2014 to 2015. Ten U.S. airlines now provide scheduled service between U.S. and Cuban cities, and Carnival cruises are docking in several Cuban cities, further connecting the U.S. and Cuban people. Under the Bilateral Commission, the United States and Cuba expanded educational and cultural exchanges. The number of Cubans studying in the United States increased 63 percent in academic year 2015-16. More than 2,000 U.S. students visited Cuba as part of their academic program in academic year 2014-15. The United States welcomed the first Cuban Hubert H. Humphrey Fellow to the United States. Four U.S. cellular providers offer roaming service in Cuba, further connecting Cuba and the United States.

The delegations agreed the Bilateral Commission has provided a framework for discussion of a wide range of issues. Where U.S. and Cuban interests align, including on counternarcotics, health, and environmental issues, the United States and Cuba have made important strides for the benefit of both peoples. Where the two countries have disagreements, including on human rights, the United States and Cuba have articulated those differences in a clear, productive, and respectful manner. The dialogues and working groups that fall under the Bilateral Commission framework have allowed the United States and Cuba to establish working relationships with counterparts, which are essential to continued bilateral cooperation, advancement of U.S. interests, and progress toward normalization.

The United States looks forward to hosting the next Bilateral Commission Meeting in Washington, DC at the earliest opportunity.

From The Ministry Of Foreign Affairs Of The Republic Of Cuba

The fifth meeting of the Cuba-US Bilateral Commission was held on December 7th and was attended by the Cuban and US delegations presided over respectively by Josefina Vidal Ferreiro, Director General of the US Division at the Ministry of Foreign Affairs; and Mari Carmen Aponte, Assistant Secretary of State for Western Hemisphere Affairs.

Both delegations reviewed the agreements adopted at the fourth Bilateral Commission meeting held in Washington on September 30; defined the new steps that both parties intend to take in the next few weeks and made an evaluation of the work carried out since September, 2015, when the first meeting of this mechanism, intended to follow up on the relations between both countries, was held.

The two delegations recognized the progress made in the discussion of topics of mutual interest in areas such as diplomatic and cooperative relations, namely the realization of high level visits; the adoption of a new health agreement, particularly for cooperation in cancer control; the resumption of scheduled flights between the United States and Havana; the celebration of technical meetings on aviation safety and security, health, environmental protection, hydrography and others related to law enforcement; and the celebration of dialogues onissues of bilateral and multilateral interest, such as human rights and disarmament and non-proliferation.

The Cuban delegation insisted that, despite the positive steps taken by the US government, their limited scope and the persistence of the blockade have made it impossible to show significant results in the area of economic and commercial relations.  Thus, the Cuban delegation reiterated that, for Cuba and the US to be able to have normal relations, the lifting of the blockade will be essential.

Besides, in order to make progress in the normalization of relations, the territory illegally occupied by the US Naval Base in Guantánamo should be returned to Cuba and other interventionist policies that are harmful to the Cuban sovereignty, which are still in force, should be abrogated.

The delegations from both countries committed to work during the next few weeks in the organization of new high level visits; to advance in the negotiation and eventual signature of several cooperative agreements in areas such as seismology, meteorology, land protected areas, marine pollution resulting from oil spills, law enforcement, search and rescue operations and the delimitation of the Eastern Gap in the Gulf of Mexico; to hold technical meetings on civil aviation andbetween Cuba's Border Guard and the US Coast Guard; and to hold meetings of the working groups on regulatory issues, energy, trade and investments and intellectual property, which are part of the Economic Bilateral Dialogue.

In assessing the work of the Bilateral Commission since its creation, both parties recognized the usefulness of this mechanism to resolve the problems affecting the relations between both countries, promote bilateral cooperation in mutually beneficial areas and advance in the process of improvement of relations.

Again... Cuba Shares More Details About Meetings With US

United States and Cuba To Hold Fifth Bilateral Commission Meeting in Havana

Media Note
Office of the Spokesperson
Washington, DC
December 6, 2016

The United States and Cuba will hold the fifth Bilateral Commission meeting in Havana, Cuba on Wednesday, December 7. Acting Assistant Secretary of State for Western Hemisphere Affairs Mari Carmen Aponte will lead the U.S. delegation. Embassy Havana Chargé d’Affaires Jeffrey DeLaurentis and Deputy Assistant Secretary John Creamer will also attend for the United States. The Cuban delegation will be led by Josefina Vidal, the Foreign Ministry’s Director General for U.S. Affairs.

The meeting will provide an opportunity to review progress and engagement on a number of priorities since the last Bilateral Commission meeting in September 2016, including human rights, civil aviation, health, law enforcement, economic issues, claims, environmental protection, agriculture, migration, educational and cultural exchanges, and trafficking in persons.

Cuba and the United Sates will hold the fifth Bilateral Commission Meeting

[MINREX] HAVANA, December 6th, 2016. Delegations of Cuba and the United Sates will meet in Havana, on Wednesday, December 7th, on the occasion of the fifth meeting of the Bilateral Commission.

The Cuban delegation will be led by Josefina Vidal Ferreiro, Director General for US Affairs in the Ministry of Foreign Affairs while the US delegation will be led by Mari Carmen Aponte, Acting Assistant Secretary of State for Western Hemisphere Affairs.

The agreements of the fourth meeting held on the past September 30th in Washington D.C. will be reviewed and an assessment will be made of the results attained ever since the establishment of the Bilateral Commission in August 2015 as a mechanism to follow up on the ties between the two countries after the reestablishment of diplomatic relations.

Likewise, the actions that will take place in the forthcoming weeks to advance in the process of improvement of relations will be defined, including the high-level visits, the new agreements of cooperation in areas of common interests, the technical meetings and the dialogues on issues of bilateral interest.

The Cuban representatives will reaffirm that the lifting of the blockade, the return of the illegally occupied territory of Guantanamo Naval Base and the elimination of other policies from the past will be essential for normalizing the relations between Cuba and the United Sates.

Mark C. Toner
Deputy Spokesperson
Daily Press Briefing
Washington, DC
December 6, 2016

QUESTION: The Cuban foreign ministry announced today that it’s moving forward with the United States on developing a road map deepening their detente. I’m just wondering what details you have on this for us and whether discussions with Cuba are being accelerated by both Havana and Washington before the new administration comes in place.

MR TONER: Yeah, so I don’t have a lot of details. I know that, as you noted, United States and Cuba are holding their fifth Bilateral Commission meeting. It’s in Havana. Wait, today’s not Wednesday. It’s tomorrow, I believe, and December 7th. And acting Assistant Secretary of State for Western Hemisphere Affairs Mari Carmen Aponte will lead the U.S. delegation. And obviously, our Charge d’Affaires in Havana, Jeffrey DeLaurentis, as well as Deputy Assistant Secretary John Creamer will attend on behalf of the United States. So I don’t know – I don’t have a lot of details on what the deliverables will be coming out of that. We’ll certainly update as the meetings take place.

With regard to your last question: Is this an acceleration? Not at all. As I said, this is a long-scheduled meeting. I believe it might have been delayed somewhat because of the period of mourning after the death of Fidel Castro, but it was long-scheduled. As – yeah, go ahead.

QUESTION: Do you agree though with the characterization that this is drawing a road map deepening the detente between the U.S. and Cuba?

MR TONER: Well, I think it’s – in the sense that – yes, I mean, we’re talking about – it’s another opportunity to review progress, certainly, that we’ve been – that has been made since we made the decision to re-establish diplomatic relations with Cuba and review progress on our engagement on a number of priorities. That includes, obviously, human rights, civil aviation, health, law enforcement, economic issues, claims, environmental protection, migration, educational, cultural exchanges, et cetera. So there’s a broad range of topics. Progress has not always been steady in all of them, but we certainly are striving to continue to make progress on all of them. And we’ll get – as I said, tomorrow I should have a better readout for you.

QUESTION: And some specifics on the --

MR TONER: Of course.

QUESTION: -- deliverables?

MR TONER: Yeah, I’ll try.

With 45 Days To Go.... US Department Of State Keeps Trying For More......

The Honorable Mari Carmen Aponte, Acting Assistant Secretary, Bureau of Western Hemisphere Affairs, United States Department of State, is visiting the Republic of Cuba from 6 December 2016 to 8 December 2016.  No details of the visit have been reported.

"Term of Appointment: 05/05/2016 to present.  Mari Carmen Aponte was appointed Acting Assistant Secretary in the Department of State’s Bureau of Western Hemisphere Affairs on May 5, 2016.

Previously, Aponte was the Ambassador of the United States to El Salvador from 2012 until February 2016. Her priorities in El Salvador included expanding crime prevention, growing the economy and moving the country towards democracy, sustainable development and human rights.

She is the first Puerto Rican woman to hold the title of ambassador. Born in Puerto Rico, Aponte moved to the United States to pursue a better education. After earning a BA in political science from Rosemont College, she taught in Camden, New Jersey and became aware of underrepresented educational needs of minority students. Aponte enrolled in Temple University Beasley School of Law and earned a JD in 1975. She was one of few Puerto Rican women enrolled in a U.S. accredited law program at that time and, subsequently, the first Latina lawyer in Pennsylvania. Aponte moved to Washington, D.C. in 1979 when President Jimmy Carter appointed her as a White House Fellow.

She continued practicing law in D.C and cofounded one of the first minority-owned law firms. In 1984, Aponte was elected the first woman president of the Hispanic National Bar Association. She continued to hold leadership positions for the next 25 years, advocating for women and the Latino community. From 2001-2004, she was Executive Director of the Puerto Rican Federal Affairs Administration. She was also on the board of directors for the National Council of La Raza and the Puerto Rican Legal Defense and Education Fund and later provided strategic counsel for the Hispanic Information and Telecommunications Network, a Spanish-speaking national non-commercial television network. Aponte received the 2015 Margaret Brent Women Lawyers of Achievement Award from the American Bar Association in recognition of her community service."

What Now? Creating A Dynamic For President Trump To Negotiate With President Castro

What Do Advocacy Groups & Their Supporters Do Now?

Their Candidate Lost & There Was No Viable Back-Up Plan

Need To Create Negotiation Dynamic

Encouraging President Trump Negotiate With President Castro

The 44th President of the United States did not negotiate what was difficult with the President of the Republic of Cuba; the 45th President of the United States seems eager to do so because it’s in his DNA.

From 17 December 2014 through the early evening of 8 November 2016, advocacy organizations and their sources of funding focused upon legislative remedies for policy, regulatory and statutory impediments to a normalized commercial, economic and political bilateral relationship between the United States and the Republic of Cuba.

During the early morning hours of 9 November 2016, as the United States national election results were confirmed, that misguided and futile legislative focus, rather than a regulatory (and license issuing) focus, placed twenty-three months of Obama Administration initiatives in grave peril.

Then, on the evening of 25 November 2016, sixteen days after the election, H.E. Dr. Fidel Castro Ruz, former president of the Republic of Cuba, died.  This event catapulted all that is the Republic of Cuba again into a leadership position within a global media pageant.

The death of former President Castro, at a moment when the President-Elect was identifying and solidifying who will serve in his administration, provided bountiful opportunity for individuals currying favor (and employment) to solidify and to amplify their Post-Castro bonafides.

With forty-six (46) days before Inauguration Day, and the ascension of Mr. Donald J. Trump (70) as 45th President of the United States, there are individuals amongst the Transition Team and Landing Teams ensconced within the United States Department of State, United States Department of the Treasury, United States Department of Commerce, United States Department of Justice and National Security Council in The White House who are predisposed, either by personal journey or professional purpose, to restrain in some manner each of the Obama Administration initiatives. 

Some organizations, attorneys and United States-based companies, those with a knowledge base predating 17 December 2014 (and having engaged with Republic of Cuba issues prior to the advent of Google, Facebook & Twitter) had advocated beginning January 2009 (and more forcefully since 17 December 2014) for the Obama Administration to do as much as was possible through changes in regulations, and then issue as many licenses as possible so that licensees could implement those licenses, which are generally valid for one to three years; and leave only statutory issues for his successor. 

In this way, the bilateral commercial relationship, the landscape, would have an opportunity to root, adhere, bond, flourish and potentially be less impervious to external pressures, for example, unanticipated election results. 

However, this approach was not deemed erotic and visual enough- seeking to convince a simple majority (and sixty-vote majority) of 535 Members of the United States Congress rather than the singular occupant of the Oval Office was believed to be a far simpler task- and one that was potentially far more lucrative for those employed in the effort.

Unfortunately, the government of the Republic of Cuba too chose poorly and failed to embrace the winning narrative and, a result, but not the only unpleasant result, finds a potential bilateral political conflict- which some in the government may find of value. 

And, with the expectation that some United States-based companies will announce before 20 January 2017 agreements to further engage in export, import or provision of services, the President-Elect (and his staff and advocates) will have additional targets upon which to focus his energies.  These announcements, especially relating to hospitality, should have been made months ago by the government of the Republic of Cuba, even if implementation would be postponed. 

Now, advocacy organizations are attempting to pivot from seeking funds to change United States statutes to seeking funds to preserve what exists in those statutes and policies and regulations. 

The most egregious example of a lack of preparation and execution by advocacy groups was in seeking changes to the Trade Sanctions Reform and Export Enhancement Act (TSREEA) of 2000.  The goal was to change the provision requiring payment of cash in advance for food products and agricultural commodities, which the United States business community publicly supported as a matter of philosophy; with companies believing that they, not the United States government, should determine the credit-worthiness of a customer.

Unfortunately, during Congressional hearings, at press events, in media releases and at conferences, there has not been a statement by a company (or financial institution) as to what payment terms they would offer to the government of the Republic of Cuba if permitted to do so- 30 days, 60 days, 90 days, 120 days, 180 days, one year?  This lack of specificity was one reason for a crippled and ultimately failed legislative initiative. 

Advocacy groups had no success for almost two years since 17 December 2014 and now they expect to have influence with a Trump Administration that has placed revising Obama Administration initiatives on a particularly public pedestal in conjunction with the leadership in the United States Congress which leans favorably (some might argue mightily) towards embracing, albeit with perhaps modifications, the agenda of the 45th President of the United States.  Astonishing.

The choice is both simple and fundamental- attempt to obtain funds and media access to battle the President of the United States for potentially four years (or at least through 24 February 2018) or accept reality that he and those whom he has selected (and those who have volunteered) to advise him are focusing on Post-Castro Cuba. 

The outcome of this battle will be the same as the outcome (failure) of the latest twenty-three-plus month legislative effort only this time, more onerously, the President of the United States and the leadership of the United States House of Representatives and the United States Senate will be aligned.  A reminder, that three-way symbiotic dynamic did previously exist- from 2009 to 2011 when the same political party controlled the executive and legislative branches of government; there was no full-on legislative effort at the time focusing upon the Republic of Cuba.

The United States and government of the Republic of Cuba must cease the focus on winning a battle and begin to focus on resolving a problem.  Advocates and Members of Congress need direct energies in support of efforts by the Trump Administration to negotiate a settlement of the certified claims.  This effort must not be encumbered by discussing claims against the United States by the government of the Republic of Cuba.

The resolution of the certified claims provides the legislative foundation to revise and rescind the Cuban Assets Control Regulations (CACR), the Cuban Democracy Act (CDA) of 1992, the Libertad Act (“Helms-Burton”) of 1996, and the Trade Sanctions Reform and Export Enhancement Act (TSREEA) of 2000.   

There were 8,821 claims of which 5,913 awards valued at US$1,902,202,284.95, have been certified by the United States Foreign Claims Settlement Commission (USFCSC) at the United States Department of Justice. 

Of these claims, thirty (30) United States-based companies hold 56.85% of the total value.  The USFCSC permitted interest to be accrued in the amount of 6% per annum; with the current value ranging from US$6 billion to US$9 billion.

Significant to note that no United States-based company who has engaged with the Republic of Cuba- exports, imports, provision of services, and who has a certified claim(s) against the government of the Republic of Cuba has reported a repudiation of its filing(s) with the USFCSC.

This position includes Stamford, Connecticut-based Starwood Hotels & Resorts Worldwide (2014 revenues exceeded US$5.7 billion), a subsidiary of Bethesda, Maryland-based Marriott International (2015 revenues exceeded US$14 billion), which as a result of a series of mergers and acquisitions during the last fifty-seven years, a US$51,128,927.00 claim initially made by New York-based International Telephone & Telegraph Corporation (ITT) is now controlled by Starwood Hotels and Resorts Worldwide. 

In 2016, the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury granted a license(s) to Starwood Hotels & Resorts Worldwide to manage properties owned by Republic of Cuba government-operated entities located in the city of Havana, Republic of Cuba.  The properties are Gran Caribe-owned Hotel Inglaterra (scheduled for transition in 2017); Habaguanex-owned Hotel Santa Isabel and Hotel Quinta Avenida (re-branded in June 2016 as Four Points by Sheraton Havana).

Obtaining a settlement of the certified claims can be a success for the Trump Administration- one that was impenetrable for the Obama Administration.  By removing an obstacle to productive negotiations- the United States Department of State, and replacing career United States government employees with seasoned veterans of the private sector, the likelihood for success will be significantly magnified.  The good people at the United States Department of State are not equipped to negotiate this issue due to the immense historical environment; the skill set for success is different.  The issue can no longer be viewed in increments of two years, four years or six years- the terms of elected officeholders.

There is now a date by which a settlement of the certified claims must be reached:  Saturday, 24 February 2018, the retirement of General Raul Castro Ruz (85), President of the Republic of Cuba, and the inauguration of current Vice President of the Council of State, H.E. Miguel Diaz-Canel Bermudez (56), as President of the Republic of Cuba. 

The message from the Trump Administration to the government of the Republic of Cuba would be succinct: There will be no expansion of the bilateral relationship until there is a settlement of the certified claims. 

Once that issue is resolved, the United States can move swiftly to disable all policy, regulatory, and statutory impediments that negatively impact a thriving and respectful commercial, economic and political bilateral landscape.

If the 8 November 2016 election had a different result, the expectation would have been for the Obama Administration initiatives to be continued, although perhaps in a more qualified manner relating to reciprocity. 

The Trump Administration is expected, at minimum, to freeze any expansion of the Obama Initiatives- likely rescind few or none; perhaps revise regulations to increase enforcement as to who is visiting the Republic of Cuba and for what purpose they are visiting the Republic of Cuba.  A result would be fewer individuals subject to United States jurisdiction visiting the Republic of Cuba- impacting United States-based cruise ships and commercial aircraft along with Republic of Cuba-based private residences and private restaurants.

As President Barack Obama sought to use regulations to encourage change within the Republic of Cuba, President Trump expects to use regulations to require change within the Republic of Cuba.  The distance between encourage and require is more than twelve letters of the alphabet. 

The Republic of Cuba-focused advocates of President Trump are more passionate than were their opposite counterparts for President Obama.  On 20 January 2017, the United States business community needs to tread carefully by not discounting that passion; and grasp the obvious- President Obama is gone and President Trump is here.

President Trump believes that he will be able to create opportunities for the citizens of the Republic of Cuba in spite of the government of the Republic of Cuba.

The Trump Administration should continue to suspend Title III of the Libertad Act (“Helms-Burton”) of 1996.  The goal is to maintain a conflict-free zone within which to negotiate a settlement of the certified claims.  There is no value in creating unnecessarily impactful distractions to the primary goal- a resolution of the certified claims.  Piling on will not enhance the probability that the government of the Republic of Cuba will embrace the negotiation process; it will provide the spark for friction and avoidance.

There will be individuals in the public sector who will rather adhere to the status quo of dispute and intransigence because resolution is equated with surrender, with failure.  That’s ignorant.  5,913 certified claimants have been waiting more than fifty-five years for the government of the United States, for its President and Negotiator-In-Chief, to obtain an equitable settlement… now that leader may have arrived. 

A resolution of the certified claims may be the most difficult challenge that President Trump has encountered.  This is an opportunity for him to create a team, instruct that team, provide them with a deadline... and then await the result. 

If the government of the Republic of Cuba wants to advance its Post-Castro trajectory with the weight of United States policies, regulations and statutes pressuring its 11.4 million citizens, then refuse to negotiate a settlement of the certified claims. 

If the government of the Republic of Cuba wants to advance its Post-Castro trajectory with the unilateral, bilateral and multilateral benefits from a United States which seeks to do no harm, then negotiate a settlement of the certified claims.

The 44th President of the United States did not negotiate what was difficult with the President of the Republic of Cuba; the 45th President of the United States seems eager to do so because it’s in his DNA.

CLICK FOR THE COMPLETE ANALYSIS IN PDF FORMAT

173, 227, 229, 148, 204 & 194.... Why These Numbers Are Significant

Does age impact those who have responsibility for creating the environment to negotiate?  

As of 20 January 2017:

The combined age of the three highest-ranking officeholders in the United States is 173; in the Republic of Cuba it is 227.  

The combined age of the three highest-ranking Democrats in the United States House of Representatives is 229; for the Republicans it is 148.  

The combined age of the three highest-ranking Democrats in the United States Senate is 204; for the Republicans it is 194.  

Age and the perception about age, matters.  So does the perspective from age.... 

Is This The Person Who Will Save (Preserve) Obama Administration Commercial Engagement With Cuba?

The Obama Administration is looking to Ms. Angela Mariana Freyre To Save Its Commercial Engagement With Cuba

Ms. Freyre has been visiting the Republic of Cuba with the purpose of encouraging the government of the Republic of Cuba to 1) authorize commercial engagement where licenses have been issued to United States-based companies by the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury and/or Bureau of Industry and Security (BIS) of the United States Department of Commerce and 2) authorize the implementation of regulatory changes made by the Obama Administration, but yet to be permitted by the government of the Republic of Cuba.

LINK TO: Who's Doing What Now

Angela Mariana Freyre
Senior Vice President and General Counsel | General Counsel
Angela Freyre

"Angela Mariana Freyre is the 20th General Counsel and Senior Vice President of the Export-Import Bank of the United States. In this capacity, she is the Bank's chief legal officer, managing its attorneys and overseeing diverse transactions and litigation portfolios, and is a member of the Bank's senior management team.

At the Export-Import Bank, Ms. Freyre advises the Board of Directors and staff on matters relating to the Charter of the Bank, as well as ethics, conflicts of interest, governance and reputational risk. She serves as Corporate Secretary, attending meetings and formalizing actions of the Board of Directors, and serves as a member of all key senior management committees. She is responsible for interpreting and implementing laws applicable to or affecting the Bank and plays a key role in the Bank’s relationship with Congress, Treasury, the State Department and other federal government agencies.

Prior to joining the Obama Administration, Ms. Freyre served as Senior Vice President and Deputy General Counsel for Legal and Strategic Affairs at The Nielsen Company, a global leader in the media and marketing information business whose clients include the leading US media companies. She managed and expanded strategic relationships with Nielsen’s most important media clients, led teams in the negotiation of Nielsen‘s most important revenue and strategic contracts, and supported Nielsen’s government affairs team.

Previously to Nielsen, Ms. Freyre practiced law in New York and Paris, developing an international corporate practice, including joint ventures, mergers and acquisitions and complex financial transactions, with major US and foreign clients for ten years each at Coudert Brothers LLP, where she was a partner, and Mudge Rose Guthrie Alexander & Ferdon LLP.

At Coudert Brothers, Ms. Freyre served as head of the Latin American Practice Group responsible for the oversight of the group’s transactions and worked in Latin America, Africa, and Asia on privatization transactions, mergers and acquisitions and economic development projects. At Mudge Rose, Ms. Freyre was involved in the firm’s securities practice and significant cross border transactions.

Ms. Freyre attended Wellesley College, Georgetown University Law Center, and l’Universite de Droit, d’Economie et des Sciences Sociales de Paris, and was a Fulbright Scholar. She was born in Havana, Cuba, has lived in Paris as well as New York City for almost 30 years (where she had significant public service and board appointments), and currently resides in Washington, DC. Ms. Freyre is fluent in Spanish and French."

The Negotiator-in-Chief For Cuba: We’re Grown-Ups- Let’s Make A Deal; Calling Mr. Kenneth Feinberg

The Negotiator-in-Chief
We’re Grown-Ups; Let’s Make A Deal
A Get-Tough & Get-Results Team Led By Mr. Kenneth Feinberg
President Trump Can Create The Legacy That President Obama Didn’t

The unclaimed legacy: President Trump can claim title to the “legacy” that President Obama failed to achieve by focusing on the difficult issues in a timely manner rather than the easy issues at a leisurely pace.

What we know: President-Elect Trump has shared what President Trump will and will not do relating to the Republic of Cuba.  

There is justifiable confusion for the United States business community in appreciating the varietal nuances of statements (spoken and written) by Mr. Donald Trump, the business executive; Mr. Donald Trump, the candidate for the presidential nomination of the Republican Party; Mr. Donald Trump, the presidential nominee of the Republican Party; and Mr. Donald Trump, the President-Elect of the United States.  This lack of clarity is not unusual for a candidate for public office or for a soon-to-be holder or a holder of public office.

President-Elect Trump has shared he does not want to expand the commercial, economic or political bilateral relationship with the Republic of Cuba unless there is a “better deal” than obtained and implemented by the Obama Administration.  

He wants something to give something; he wants to negotiate (and re-negotiate) rather than continue what he believes to have been a unilateral surrender of interests by the Obama Administration.  So, what might he do?

The soil upon which United States policy, regulations and laws sprouted since 1961 was created by the seizure of assets by the government of the Republic of Cuba.

There were 8,821 claims of which 5,913 awards have been certified by the United States Foreign Claims Settlement Commission (USFCSC- https://www.justice.gov/fcsc) at the United States Department of Justice which are valued at US$1,902,202,284.95.  

Of these claims, thirty (30) United States-based companies hold 56.85% of the total value.  The USFCSC permitted interest to be accrued in the amount of 6% per annum; with the current value ranging from US$6 billion to US$9 billion.

Members of the President-Elect’s transition teams and individuals who encompass his increasing array of advisors and policy creators are focused upon results- and the narrative of presenting the government of the Republic of Cuba with a fixed timetable, perhaps 180-days, during which a team designated by The White House would be tasked with obtaining an agreement to satisfy the interests of the 5,913 certified claimants.

The goal is to have an agreement in place before 24 January 2018, the retirement of H.E. Raul Castro Ruz (85 years old), President of the Republic of Cuba, and the inauguration of current Vice President Miguel Diaz-Canel Bermudez, 56 years old.

The first action would be for The White House to remove the United States Department of State as lead negotiator and replace it with a team reporting directly to the National Security Council (NSC) at The White House.

During the last twenty-three (23) months, the United States Department of State has failed to either create a viable foundation for a settlement of the certified claims or moved significantly forward the process from discussion to negotiation.  They have had a chance.  Now is a moment for a renewed dynamic.

The Obama Administration has professed that a settlement of the certified claims is a priority- a high priority.  There were two meetings in twenty-three months.  The date for a second meeting was not agreed to after the first meeting.  The date for a third meeting was not agreed to after the second meeting.  So much for the issue of the certified claims being a “high priority” for the Obama Administration.

State Department Meeting Timeline

17 December 2014 to 8 December 2015- 356 days between President Barack Obama’s 2,283-word statement (that did not mention certified claimants) and the first meeting of representatives from the government of the Republic of Cuba and the United States Department of State to discuss the issue of certified claims.

8 December 2015 and 28 July 2016- 233 days between the first meeting and second meeting of representatives from the government of the Republic of Cuba and the United States Department of State to discuss the issue of certified claims.

28 July 2016 to 20 January 2017- 176 days between the second meeting of representatives from the government of the Republic of Cuba and the United States Department of State to discuss the issue of certified claims and the end of the Obama Administration.

Based upon the results, the Obama Administration would had no intention of negotiating a settlement, but remained content with the imagery of dialogue.  The questions that the United States Department of State never answered:  

• Why haven’t Certified Claimants Sector Working Groups been established?   
• Why haven’t certified claimants been summoned to meetings at the United States Department of State to create a negotiating platform?  
• Is there a Certified Claimants Committee?  Thirty (30) of the certified claimants account for 56% of the principal value of the certified claims.
• Have Agendas been created- and followed?  
• Have Modalities of Settlements been established?
• Where is the Guidance?

The Art Of The Deal

The White House team would be directed by Mr. Kenneth Feinberg, who, as a designated Special Master, compensated by the USFCSC, would be responsible for negotiating and then implementing a settlement.  As Mr. Feinberg has adjudicated other cases of United States national interest, his settlement agreement would provide for immediate value to those claimants who choose to abide by the settlement offering.

Mr. Feinberg, is a New York, New York-based attorney specializing in mediation and alternative dispute resolution, who served as Special Master for the September 11th Victim Compensation Fund and TARP Executive Compensation; Administrator of the BP Deepwater Horizon Disaster Victim Compensation Fund; and was retained to assist in the General Motors recall response and compensation for Volkswagen owners.  Mr. Feinberg appreciates the singular importance of deadlines.

Important that the negotiations with the government of the Republic of Cuba to reach a settlement for the certified claimants not be a component of any other unilateral or bilateral or multilateral issue(s).  For the relationship with the United States to expand, a settlement of the certified claims needs to be reached without the inclusion of extraneous issues.

That United States-based companies with certified claims have discussed a return with the government of the Republic of Cuba or have re-engaged with the government of the Republic of Cuba provides a foundation for which negotiations may be initiated by the Trump Administration.

The Libertad Act of 1996 authorizes individuals and companies subject to United States law to engage in direct negotiations with the government of the Republic of Cuba to settle claims registered with the USFCSC. 

The Trump Administration (or government of the Republic of Cuba) may consider hosting a Certified Claimant Settlement Forum- and any certified claimant who desires to return to the Republic of Cuba marketplace and has a proposal would be welcomed; and all proposals would be subject to a thirty (30) day yes-or-no response.  

In 2016, Stamford, Connecticut-based Starwood Hotels & Resorts Worldwide (2015 revenues exceeded US$5.7 billion), which is a subsidiary of Bethesda, Maryland-based Marriott International (2015 revenues exceeded US$14 billion), was granted a license by the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury to manage properties in the city of Havana owned by Republic of Cuba government-operated entities.  

The properties are Gran Caribe-owned Hotel Inglaterra; Habaguanex-owned Hotel Santa Isabel and Hotel Quinta Avenida (re-branded as Four Points by Sheraton Havana on 27 June 2016).  The Hotel Quinta Avenida is owned by Republic of Cuba government-operated Gaviota SA, which is controlled by the Revolutionary Armed Forces of the Republic of Cuba (FAR).

As a result of a series of mergers and acquisitions during the last fifty-seven years, a US$51,128,927.00 claim initially made by New York-based International Telephone & Telegraph Corporation (ITT) is now controlled by Starwood Hotels and Resorts Worldwide, which can use this value as a means to secure opportunities within the Republic of Cuba.

Starwood Hotels & Resorts Worldwide controls a certified claim representing approximately 2.68% of the total principal value of the certified claims.  

What Can The Trump Administration Do?

The Trump Administration could use funds obtained during the last eight years‎ from global financial institution settlements and not redirected by the United States Congress for other purposes to offset some or all of the principal/interest amount of the certified claims.  

“The Foreign Claims Settlement Commission of the United States (FCSC) is a quasi-judicial, independent agency within the Department of Justice which adjudicates claims of U.S. nationals against foreign governments, under specific jurisdiction conferred by Congress, pursuant to international claims settlement agreements, or at the request of the Secretary of State. Funds for payment of the Commission's awards are derived from congressional appropriations, international claims settlements, or liquidation of foreign assets in the United States by the Departments of Justice and the Treasury.”

If the Trump Administration makes a payment to the certified claimants essentially on behalf of the government of the Republic of Cuba, might those who have civil judgements in the United States against the government of the Republic of Cuba seek to seize ‎the funds?  Someone may try.  That does not mean don’t do it.

A certified claims settlement should be based upon the payment of 100% of the value of each certified claim.  Even with a full settlement based upon principal and interest, the annual rate of inflation has substantially diminished the value of each certified claim.  

Opportunities for settlement include, but are not limited to, debt-for-equity swaps and substitution investments (one structure for another; one piece of land for another, etc.).  In combination with or separately from compensation formats, the government of the Republic of Cuba could provide transferable values to the certified claimants including:

• Income tax holidays
• Import duty exemptions
• Reduced energy rates
• Property tax credits
• Earned income tax credits

The OFAC should issue a general license for certified claimants, their representatives and agents to visit the Republic of Cuba for the purpose of negotiating a settlement.

The resolution of the certified claims will provide the legislative foundation to revise and rescind the Cuban Assets Control Regulations (CACR), the Cuban Democracy Act (CDA) of 1992, the Libertad Act (“Helms-Burton”) of 1996, and the Trade Sanctions Reform and Export Enhancement Act (TSREEA) of 2000.

Advocacy groups need to be re-tasked, similar to a satellite, from a pathway of mythology focused upon creating new statutes to a non-fiction, and potential best-seller, application towards supporting a settlement of the certified claims.

The Trump Administration is focused upon connecting any further expansion of bilateral commercial opportunities, meaning exports of products and services and imports of products and services, to a settlement of the certified claims.

Relating Blog Posts:

http://www.cubatrade.org/blog/2016/7/29/transcript-of-state-department-briefing-about-us-cuba-claims-discussion?rq=department%20of%20state%2C%20cuba

http://www.cubatrade.org/blog/2016/7/24/28-29-july-2016-may-be-near-last-opportunity-for-us-claimants-to-advocate-face-to-face-for-settlement-before-the-end-of-the-obama-administration?rq=department%20of%20state%2C%20cuba

http://www.cubatrade.org/blog/2016/7/28/us-department-of-state-reports-on-claims-discussion?rq=department%20of%20state%2C%20cuba

COMPLETE TEXT IN PDF FORMAT

UPDATED: Deputy National Security Advisor Ben Rhodes To Cuba- Was To Have Been Secret Visit

The Honorable Benjamin J. Rhodes, Assistant to the President and Deputy National Security Advisor for Strategic Communications, is visiting the Republic of Cuba on what had been an unannounced visit to meet with officials of the government of the Republic of Cuba.

UPDATE NOTE: 5 December 2016- When inquiring as to whether Mr. Rhodes was scheduled to use a United States government aircraft for his unannounced visit to the Republic of Cuba, the Obama Administration responded that since Mr. Rhodes was representing the United States at a service in honor of H.E. Dr. Fidel Castro Ruz, former president of the Republic of Cuba, he traveled "by official government plane to Cuba, as is customary for this type of official travel." The problem with the response is the visit by Mr. Rhodes to the Republic of Cuba was scheduled before his participation in the services was announced.  So, the Obama Administration was dishonest and, despite follow-up requests, refuses to provide additional information.

The visit only become public due to his participation at a service in the city of Havana in honor of H.E. Dr. Fidel Castro Ruz, former president of the Republic of Cuba.

Considered an architect of the Obama Administration initiatives which became public on 17 December 2014, the visit of Mr. Rhodes to the Republic of Cuba with 51 days remaining in the Obama Administration may signal a final (some might argue desperate) effort by the Obama Administration to 1) initiate further regulatory changes and/or 2) obtain commitments from the government of the Republic of Cuba that it will implement existing (or new) initiatives quickly (before 20 January 2017) and approve the use of existing licenses issued by the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury and Bureau of Industry and Security (BIS) of the United States Department of Commerce.

PRESS BRIEFING BY PRESS SECRETARY JOSH EARNEST
James S. Brady Press Briefing Room
29 November 2016

Q    Sure.  Thanks, Josh.  Will the United States send a delegation to the funeral of Fidel Castro?

MR. EARNEST:  Josh, I can tell you that the President has decided not to send a presidential delegation to attend the memorial service today.  I can tell you, however, that Deputy National Security Advisor Ben Rhodes will attend the service, as will the top U.S. diplomat in Cuba, Jeff DeLaurentis.

Those of you who have been following this story closely over the last couple of years know that Mr. Rhodes has played a leading role in crafting the normalization policy that President Obama announced about two years ago.  He has been the principal interlocutor with the Cuban government from the White House in crafting this policy and implementing it successfully.  As a part of those responsibilities, he has the occasion to travel to Cuba occasionally to further implement this policy.

He actually was already planning to travel to Cuba this week, so in addition to the meetings that he already has on his schedule with the Cuban government officials and with officials at the U.S. embassy, he also will be attending the service that the Cuban government has planned for this evening.  And as I mentioned, he'll be attending with the top U.S. diplomat on the island, Ambassador DeLaurentis.

Q    So I guess it begs the question that if two high-ranking U.S. officials -- national security official who worked on Cuba, the ambassador -- are attending, how is that not a U.S. delegation?

MR. EARNEST:  Well, Josh, there’s a formal process where the President would designate a presidential delegation to travel to Cuba specifically to represent the United States at a foreign event.  Sometimes it's an inauguration; sometimes it's a coronation; sometimes it's a funeral.  That will not be taking place this time.  But the United States will be represented at the event by our top diplomat on the island and by a senior White House official who will be traveling to Cuba.

Q    What was the thinking behind not designating a formal delegation?

MR. EARNEST:  Obviously, Josh, so much of the U.S. diplomatic relationship with Cuba is quite complicated.  There are many aspects of the U.S.-Cuba relationship that were characterized by a lot of conflict and turmoil not just during the Castro regime, but we continue to have some significant concerns about the way the Cuban government currently operates, particularly with regard to protecting the basic human rights of the Cuban people.

So we believe that this was an appropriate way for the United States to show our commitment to an ongoing, future-oriented relationship with the Cuban people.  And this is an appropriate way to show respect, to participate in the events that are planned for this evening, while also acknowledging some of the differences that remain between the two countries.  

Q    Thanks, Josh.  Back on the Castro event.  You're not suggesting that Mr. Rhodes and Mr. DeLaurentis are attending this in a private capacity, right?  They are representing the United States?

MR. EARNEST:  That's correct.  And I think if I was unclear about that, yes, they will be representing the United States at the memorial service this evening.

 Q    One last thing on the Castro funeral plans.  I know there's the memorial service today, but there's a lot going on -- I know the formal funeral ceremony is taking place on Sunday.  Is the United States sending anyone to that ceremony,y or is this the only event, memorial event, that is being attended by U.S. officials?

MR. EARNEST:  My understanding, at least the way that it's been described to me is this is -- the event that the Cuban government is organizing for this evening is the event where the United States will be represented by the Deputy National Security Advisor and by the top diplomat in Cuba.

I guess I'd refer you to the embassy in Havana for greater information about whether or not there will be a U.S. presence at any of those other events.  Certainly no one from the White House and no other delegation will be sent to Cuba to participate in any of the other events.  But I don't know if there will be other diplomats or other officials who are based at the embassy that may participate in some other events.

Q    The memorial service and the funeral Sunday -- I just want to clarify one thing on that.  Will the same U.S. non-presidential delegation be attending the funeral?  Can we assume that Ben Rhodes and ambassador -- or DeLaurentis will also be in attendance at the funeral?

MR. EARNEST:  They are only participating in the memorial service that's planned for tonight.  The briefing that was provided to me is that the actual funeral itself is actually a private event.  But I can tell you that this is the only event that the Deputy National Security Advisor is planning to attend.

PRESS BRIEFING BY PRESS SECRETARY JOSH EARNEST
James S. Brady Press Briefing Room
30 November 2016

Q    Thank you.  On the funeral of Fidel Castro in Cuba this weekend, it’s a relatively long affair.  So I’m wondering whether at some point the President is expected to watch parts of the funeral.  And will he be updated regularly by Ben Rhodes, who is there for the funeral?

MR. EARNEST:  I don't anticipate that the President will watch any of the proceedings on television.  Mr. Rhodes and our diplomat in Cuba, Ambassador DeLaurentis, participated in a memorial service last night.  But I'm not aware that either of them intends to be a part of all of the activities over the next three days.  The two of them were in attendance last night representing the United States.

But Mr. Rhodes remains in Cuba today because he's been -- he had previously planned to travel to Cuba this week to have meetings with government officials and officials at the U.S. embassy to discuss the continued effort to implement a policy of normalizing relations between our two countries.  But the last I heard is that he's actually planning to come back tonight.  So I don't think that -- I know that he won't be there and participating in the events that are planned over the next several days.

     Q    Any details by any chance of who exactly those meetings were with and what they might have been about?

MR. EARNEST:  Not at this point, but when he gets back we'll see if we can get you a readout of his engagements while he was there.

From The Hill: Trump and Cuba: A murky future

The Hill
Washington, DC
30 November 2016

Trump and Cuba: A murky future

By Melanie Zanona
 
The death of Fidel Castro has reignited the debate over President Obama’s opening with Cuba, with hard-liners renewing their calls for President-elect Donald Trump to revisit the decision to normalize diplomatic relations.

Critics of the Obama policy, like Sen. Marco Rubio (R-Fla.), argue that travel and trade with Cuba will only serve to enrich the Castro government despite its history of human rights abuses.

“We’re going to re-examine everything the president has done, and figure out what’s the right thing to do,” Rubio, a son of Cuban immigrants, told reporters Tuesday.

Earlier this year, the Republican Party appeared to be warming to the idea of a diplomatic thaw with Cuba.

Commercial U.S. flights started landing on the island this summer, pro-tourism bills were gaining more Republican co-sponsors and an amendment to lift the ban on Cuba tourism was easily added to a Senate spending bill earlier this year.

But after Castro — who ruled the Communist nation for decades before turning it over to his brother, Raúl, in 2008 — died on Friday, critics of the rapprochement of Cuba have gone on the offensive in hopes of shaping Trump’s policy once he takes office in January.

Trump has repeated his threat to reverse Obama’s decision to open diplomatic and commercial ties with Cuba if the communist government doesn’t adopt changes.

“If Cuba is unwilling to make a better deal for the Cuban people, the Cuban/American people and the U.S. as a whole, I will terminate deal,” Trump tweeted.

But it’s still unclear just how far Trump is willing to go in rolling back Obama’s laundry list of regulatory actions, which are aimed at easing travel and trade restrictions and are widely popular with the U.S. business community.

Trump said earlier this year that he was “fine” with opening up Cuba and told CNN he may open a hotel there. A top aide to the real estate mogul, Kellyanne Conway, said on “Meet the Press” this weekend that “nothing is definite” when it comes to Trump’s Cuba policies.

“We don’t know what he’s going to do,” Sen. Jeff Flake (R-Ariz.), a vocal proponent of reengaging with Cuba, told reporters on Tuesday. “We’ve heard varying signals from the Trump administration. We’ll just have to wait and see.”

Since Obama first announced the new policy toward Cuba in 2014, the administration has reopened the embassies in Havana and Washington, removed Cuba from a list of state sponsors of terror and resumed commercial air service with the island for the first time in over 50 years.

U.S. tourism to the island is still banned and the trade embargo has not been lifted, but Obama has carried out a string of other regulatory changes aimed at bringing the two countries closer together.

Those actions include allowing Cuban textiles, coffee and pharmaceuticals to be imported to the U.S.; removing or lessening most licensing requirements for permitted travel to Cuba; allowing American travelers to bring home an unlimited amount of rum and cigars; and authorizing U.S. individuals and businesses to have bank accounts on the island.

But because almost everything was done through executive action and without the help of Congress, there is wide consensus that almost all of Obama’s Cuba policies can be dismantled with the stroke of a pen.

“Nothing [Obama] has done in the past 23 months cannot be reversed by President-elect Trump with a signature,” said John S. Kavulich, president of the U.S.-Cuba Trade and Economic Council. “The only impediment to president-elect Trump reversing or revising the initiatives of President Obama is a lack of ink in his pen.”

Sen. Ted Cruz (R-Texas), who is of Cuban descent, said he was encouraged by Trump’s response to Castro’s death.

“There’s a stark contrast this week between President-elect Trump’s response to the death of Fidel Castro, and the weak and timid response of President Obama,” Cruz told reporters Tuesday. “I’m encouraged by that stark contrast.”

Rep. Ileana Ros-Lehtinen (R-Fla.), another staunch Cuba critic, hopes Castro’s death is “the first page of the closing chapter on the Castro regime” and said she believes Trump will make good on his promise to revisit Obama’s Cuba policies.

“However, a tyranny led by Raúl Castro and its repressive apparatus remains in place oppressing the Cuban people,” Ros-Lehtinen said in a statement. “President-Elect Trump has pledged to roll back President Obama’s unilateral concessions to the Castro regime and it is my belief that he will keep that promise.”

Although Trump may be able to easily dismantle Obama’s efforts logistically, it may not be politically popular, especially among the business community.

“Can he do it? Yes,” Kavulich said. “But what are the repercussions?”

Kavulich warned that there might even be legal repercussions because of the deep-rooted commercial interests in the island.

Any effort to suspend or reduce flights, for example, is sure to face fierce pushback from the U.S. airline industry, which invested significant time and resources into the new flight routes.

Obama has also already authorized U.S. hotels to manage properties on the island, allowed Airbnb to offer reservations for 10,000 residences and let telecommunications companies install equipment in Cuba.

Travel advocates hope the economic benefits of Cuban trade and travel will convince Trump to leave many of Obama’s policies in place.

“Mr. Trump says the government should be run like a business, and there’s no business in the world that would continue a failed strategy for 55 years,” said Madeleine Russak, communications director for Engage Cuba. “Cuba is a growing market with tremendous investment opportunities. We’re hopeful that as a businessman, he recognizes those opportunities.”

White House press secretary Josh Earnest also suggested that Trump could find it difficult to unwind the growing ties between the two nations.

“It’s just not as simple as one tweet might make it seem,” Earnest said Monday. “There are significant diplomatic, economic [and] cultural costs that will have to be accounted for if this policy is rolled back.”

Some travel advocates think Trump is more likely to take steps like closing down the embassies, refusing to nominate an ambassador and cracking down on people trying to travel under one of the 12 permissible categories, as opposed to completely halting commercial flights to Cuba.

While some had hoped Fidel Castro’s death would pave the way for a complete reversal of the détente, others think the biggest impact will be that Obama is now more hesitant to move ahead with any further Cuba regulations in his final weeks in office.

The business community has been pushing for the White House to allow Cuban financial institutions to have accounts with U.S. banks and expand the products that can be imported and exported to Cuba.

“There’s no question that the timing of Fidel’s death couldn’t be worse for the Obama administration,” Kavulich said. “The problem is, now any additional regulations will be accompanied by Fourth of July fireworks. It will be controversial by definition, even if people agree with it.”

LINK TO ARTICLE

The Pushmi-Pullyu Syndrome Of The Obama Administration

Why Do Commerce, State, Transportation, USDA & FCC View US Law So Differently?
The Result Is United States Companies Not Receiving The Support They’re Entitled To

According to the United States Departments of Commerce and Agriculture, they are prohibited by law from assisting United States-based companies, including in trade missions, due to a provision of the Trade Sanctions Reform and Export Enhancement Act of 2000.  Private sector attorneys have issued opinions disagreeing with this view.

From a 2015 interview by The Honorable Penny Pritzker, United States Secretary of Commerce, with National Public Radio (NPR): “For example, she was not allowed to bring any American executives along to strike business deals on this trip.”  Secretary Pritzker said “I can’t have a trade mission.”

The USDA and the DOC reported that their Republic of Cuba-related activities (and by extension the United States Government) were restricted and/or prohibited not be choice (policy), but law (statute), by the Trade Sanctions Reform and Export Enhancement Act (TSREEA) of 2000, title IX, Public Law 106-387 [22 U.S.C. 7207(a)(1)] (TSREEA).   

§ 7207. Prohibition on United States assistance and financing
(a) Prohibition on United States assistance

(1) In general Notwithstanding any other provision of law, no United States Government assistance, including United States foreign assistance, United States export assistance, and any United States credit or guarantees shall be available for exports to Cuba or for commercial exports to Iran, Libya, North Korea, or Sudan.
(2) Rule of construction
Nothing in paragraph (1) shall be construed to alter, modify, or otherwise affect the provisions of section 6039 of this title or any other provision of law relating to Cuba in effect on the day before October 28, 2000.
(3) Waiver
The President may waive the application of paragraph (1) with respect to Iran, Libya, North Korea, and Sudan to the degree the President determines that it is in the national security interest of the United States to do so, or for humanitarian reasons.

However, the United States Department of Transportation believes no law impedes its two top officials from traveling (thus promoting and assisting) on inaugural commercial flights from the United States to the Republic of Cuba and the United States Department of State believes no law impeded a Deputy Assistant Secretary of State and the Chairman of the United States Federal Communications Commission from including representatives of United States-based companies in an official delegation to the Republic of Cuba.

In October 2015, The Honorable Penny Pritzker, United States Secretary of Commerce, states that United States law prevents her from being accompanied by and assisting representatives of United States-based companies during her visit to the Republic of Cuba.

In November 2015, The Honorable Thomas Vilsack, United States Secretary of Agriculture, states that United States law prevents him from being accompanied by and assisting representatives of United States-based companies during his visit to the Republic of Cuba.

In January 2016, The Honorable (Ambassador) Daniel Sepulveda, Deputy Assistant Secretary of the Bureau of Economic and Business Affairs of the United States Department of State, and The Honorable Thomas Wheeler, Chairman of the United States Federal Communications Commission, visit the Republic of Cuba; and representatives of United States-based companies are included in the official delegation.

In August 2016, The Honorable Anthony Foxx, United States Secretary of Transportation, travels aboard a JetBlue Airways inaugural flight from Fort, Lauderdale, Florida, to Santa Clara, Republic of Cuba, before returning to the United States aboard a government aircraft.

In November 2016, The Honorable Victor Mendez, United States Deputy Secretary of Transportation, travels aboard an American Airlines inaugural flight from Miami, Florida, to Havana, Republic of Cuba.

Blog Post Reference: http://www.cubatrade.org/blog/2016/11/5/usda-hubris-usda-illegality-for-the-inspector-general-why-is-this-an-issue