[Congressional Record (Bound Edition), Volume 146 (2000), Part 14]
[Senate]
[Pages 20049-20051]
[From the U.S. Government Publishing Office, www.gpo.gov]



                          U.S.-CUBA RELATIONS

  Mr. ROBERTS. Mr. President, I would like to bring to the attention of 
the Senate a relatively new organization designed to enhance U.S.-Cuba 
relations. The Alliance for Responsible Cuba Policy was created in 
early 1998 to foster better political, economic and cultural 
relationships between our country and Cuba. Its board is compromised of 
distinguished Americans, including some of our former colleagues in the 
Congress.
  Clearly the time has come to bring ``responsibleness'' to the debate 
regarding U.S.-Cuba relations.
  The Alliance has briefed me and my staff regarding their first-hand 
experience in Cuba. I encourage them to continue their fact finding and 
information gathering missions to Cuba.
  I ask unanimous consent to have printed in the Record an Activities 
Report of the Alliance.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

 Alliance for Responsible Cuba Policy Activities Report--Fact-Finding 
              Mission; Republic of Cuba, July 10-12, 2000

       This report summarizes the activities of a fact-finding 
     mission to the Republic of Cuba conducted on July 10-12, 
     2000. The fact-finding mission was organized by the Alliance 
     for Responsible Cuba Policy (the ``Alliance''), a non-
     partisan, non-profit organization incorporated in the 
     District of Columbia. The delegation included former 
     Congressman Beryl Anthony, partner, Winston & Strawn; Mr. 
     Albert A. Fox, Jr., President of the Alliance, Mr. Paul D. 
     Fox, Vice-President Atlantic Region, Tysons Food, Inc. and 
     Managing Director, Tyson de Mexico; Ms. Nanette Kelly, 
     President and Mr. John Spain, Managing Director, The Powell 
     Group of Baton Rouge, Louisiana; Mr. Edward Rabel, former 
     news correspondent with CBS and NBC, and currently Senior 
     Vice President of Weber McGinn; and Gregory J. Spak, partner, 
     White & Case LLP.
       This fact-finding mission was the second such trip 
     organized by the Alliance. The first mission occurred on 
     September 26-29, 1999. An Activities Report related to that 
     mission is available from the Alliance's web site at 
     www.responsiblecubapolicy.com.
       During the July 10-12, 2000 mission, the delegation met 
     with the following persons and entities in Cuba:
       Ministry of Foreign Trade
       Ministry of Science, Technology, and Environment
       Ministry of Agriculture
       Ministry of Foreign Investment and Economic Cooperation
       Mr. Ricardo Alarcon de Quesada, President of the National 
     Assembly
       Ministry of Justice

     The following summarizes the discussion at each of these 
     meetings.


                       Ministry of Foreign Trade

       The delegation met with Maria de la Luz B'Hamel, Director 
     of the North American Division of the Foreign Trade Ministry, 
     and with Mr. Igor Montero Brito, Vice President of ALIMPORT. 
     Ms. B'Hamel's division is responsible for international trade 
     issues relating to the United States and Canada, and the 
     Foreign Trade Ministry in general has jurisdiction over all 
     foreign trade issues, including issues arising in the World 
     Trade Organization and other international and regional trade 
     agreements. Ms. B'Hamel noted that Cuba is a founding member 
     of the General Agreement on Tariffs and Trade (``GATT'') and 
     the World Trade Organization (``WTO'').
       The Foreign Trade Ministry has a practical role in foreign 
     trade through its authority to grant licenses to Cuban 
     enterprises engaging in international trade. Ms. B'Hamel 
     described two important trends that have emerged since the 
     dissolution of the Soviet Union and the resulting rupture of 
     Cuba's traditional trading relationships:
       (1) Diversification of Cuba's foreign trade. Currently, 
     Cuba's two largest trading partners are Spain and Canada, and 
     no more than 10-12 percent of Cuba's trade is with any one 
     country. As part of this diversification process, Cuba has 
     been negotiating trade agreements with its regional trading 
     partners in order to promote Cuba as a strategic bridge to 
     the Caribbean region.
       (2) Decentralization of foreign trade issues. Ms. B'Hamel 
     stated the Foreign Trade Ministry is deemphasizing its direct 
     involvement in international trade transactions, and is 
     assuming more of a trade regulation role. Companies engaged 
     in foreign trade today in Cuba include state enterprises, 
     private enterprises, and international joint ventures or 
     branch offices of foreign companies. More than 250 private 
     and state enterprises are actively engaged in foreign trade, 
     and there are approximately 600 Cuban branch offices of 
     foreign companies engaged in trade in Cuba.
       Ms. B'Hamel explained that, since 1994, Cuba has 
     experienced steady improvement in foreign trade and GDP 
     growth. Her Ministry forecasts continued GDP growth, even 
     assuming no relaxation of U.S.-imposed trade restrictions. 
     She stated that the U.S. trade restrictions (which she called 
     the ``blockade'') have affected Cuba, but that other trends 
     in business and world trade were creating new opportunities 
     for the Cuban economy.
       One particularly dynamic sector of the Cuban economy is 
     tourism, which is growing by 16-20 percent per year. These 
     statistics do not include U.S. tourists, which Ms. B'Hamel 
     estimates to have numbered approximately 180,000 last year. 
     She noted that this increase in tourism will have a ripple 
     effect on the Cuban economy and will increase the demand for 
     food goods, and other services.
       Mr. Igor Montero explained that ALIMPORT is the principal 
     Cuban state enterprise dedicated to importing foodstuffs into 
     Cuba and distributing imports to the public. ALIMPORT is 
     dedicated almost exclusively to the primary foodstuffs which 
     are considered to be staples of the Cuban diet (e.g., rice, 
     beans, etc.). Cuba currently imports approximately $1 billion 
     in foodstuffs annually, $650 million of which is imported 
     through ALIMPORT. Principal food imports are wheat, soybeans, 
     and rice.
       Cuba currently is importing approximately 400,000 metric 
     tons of rice per year, principally from China, Thailand, and 
     Vietnam. Delivery time for rice imported from these countries 
     is approximately 60 days, and the quality is considered only 
     fair. Mr. Montero acknowledged that transportation costs to 
     acquire this rice represent a significant expenditure.
       Mr. Spain, whose Louisiana-based company, the Powell Group, 
     is involved in the rice milling business, pointed out that 
     his company used to supply rice to Cuba before the U.S. trade 
     restrictions. While clarifying he was not in Cuba to develop 
     business. Mr. Spain noted that his company could supply high-
     quality rice to Cuba with a turnaround time (from order to 
     delivery) of approximately one week and insignificant freight 
     costs.

                           *   *   *   *   *



            Ministry of Science, Technology, and Environment

       The delegation met with a number of representatives from 
     this Ministry (``CITMA''), including the Minister, Dr. Rosa 
     Elena Simeon Negrin. Dr. Simeon described the Ministry's 
     creation in 1994 as a result of the reorganization and 
     consolidation of other Cuban ministries. Dr. Simeon 
     distributed to the delegation the following publications 
     regarding the Ministry's activities (1) ``Law of the 
     Environment''; (2) ``Cuba Foreign Investment Act of 1995''; 
     and (3) ``National Environmental Strategy.'' These documents 
     are available from the Alliance upon request.
       Much of the discussion focused on environmental issues. Dr. 
     Simeon noted the importance of environmental education to the 
     Ministry's mission. She described the results of a recent 
     survey revealing that although 73 percent of the Cuban 
     population recognize the threat to the environment, only 30 
     percent believe they can improve environmental conditions 
     through their own actions. The Ministry is attempting to 
     increase awareness among the Cuban population of the role the 
     individual plays in improving the environment.
       Dr. Simeon also portrayed alternative fuels as an important 
     focus of the Ministry's

[[Page 20050]]

     efforts. Approximately 5,000 facilities in the mountain areas 
     of the country operate with solar energy, but the solar 
     energy panels necessary to continue the development of this 
     energy source are prohibitively expensive. Notwithstanding 
     the cost, the Ministry is committed to solar energy.

                           *   *   *   *   *



                        ministry of agriculture

       The delegation met with Dr. Alfredo Gutierrez Yanis, Vice 
     Minister of Agriculture, and several other officials from the 
     Ministry. Dr. Gutierrez explained that Cuba's traditional 
     relationship with the Soviet Union had allowed for a stable 
     agriculture policy. Cuba exported sugar and citrus to the 
     Soviet Union and Soviet bloc countries, and imported 
     machinery, fertilizer, and pesticides from those countries. 
     Ten years after the dissolution of the Soviet Union, Cuban 
     agriculture is in the midst of a recovery program (known as 
     the ``processo de Recuperacion en Agricultura'' or the 
     ``Agriculture Recovery Process''). Recovery has been uneven, 
     however, with some sectors advancing beyond pre-crisis 
     performance levels (notably vegetable production) and others 
     continuing to experience difficulties (poultry, livestock, 
     and rice production).
       Dr. Gutierrez offered poultry products as an example of a 
     sector that has not recovered. Prior to 1991, the Cuban per-
     capita annual egg consumption was 230, nearly double the 
     current per-capita rate. Similarly, Cuban agriculture once 
     produced approximately 117,000 tons of chicken meat annually, 
     but now can only produce approximately 30,000 tons. Cuba has 
     been forced to import chicken meat, with Canada emerging as 
     the principal supplier. Dr. Gutierrez attributed the decrease 
     in chicken and egg production to lack of available feed. This 
     lack of feed results from both the disruption in the 
     traditional trading relationship with the Soviet Union, and 
     changes in the economic restrictions imposed by the United 
     States. During the 1980s, Cuba imported approximately 2 
     million tons of feed, and reported much of this was purchased 
     from foreign subsidiaries of U.S. companies. After the 
     enactment of the Toricelli Act, the value of this trade 
     dropped from $400 million per year to approximately $1 
     million. Also, the provisions of U.S. law restricting access 
     to U.S. ports for those vessels which have engaged in 
     commercial activity in Cuba to obtain feed at a reasonable 
     price.
       With respect to milk, Dr. Gutierrez reported that for all 
     practical purposes, the dairy herds ceased to produce when 
     grain was no longer available for feeding. Many cows died of 
     starvation and others were slaughtered while still at a 
     productive age. The Cuban Government has since developed a 
     breed of dairy cow that is \5/8\ Holstein and \3/8\ Zebu in 
     order to facilitate milk production without excessive grain 
     consumption, but current productivity per head has declined 
     with these genetic changes. The Government is importing 
     powdered milk, but not in sufficient quantities. One of the 
     delegation members touring a neighborhood away from the 
     tourist areas was told that the milk formula sold in state 
     stores is supposed to be consumed exclusively by children 
     from 3 to 7 years old.
       Dr. Gutierrez also mentioned difficulties in the rice 
     sector, in that Cuba has been forced to import most of its 
     rice from distant sources, thereby increasing costs and 
     lowering quality of the rice. The Ministry would like to see 
     an increase in local rice production, and a corresponding 
     reduction in imports to approximately 200,000 tons per year. 
     Dr. Gutierrez feels that this would permit a per-capita rice 
     consumption of approximately 50 kilograms.
       Dr. Gutierrez cited pork and cirrus production as two 
     examples of a successful recovery. Cirrus production has 
     recovered and could increase if new markets were opened for 
     Cuban citrus goods. Israel is providing assistance to the 
     Cuban Government on citrus production, and an Italian firm is 
     helping with production of citrus derivation products.

                           *   *   *   *   *

       Dr. Gutierrez described developments he believes will help 
     the Cuban agricultural sector continue its post-crisis 
     recovery. First, state farms play a less significant role in 
     the agricultural sector, with the percentage of farm land 
     cultivated by state farms reduced from 67 percent to 
     approximately 33 percent. Thus, according to Dr. Gutierrez, 
     approximately two-thirds of the land is being cultivated 
     today by small private companies and cooperatives. When asked 
     how the small companies and cooperatives sell their crops, he 
     replied that it would be typical for such companies and 
     cooperatives to contract with a Cuban state enterprise for a 
     specific supply quantity, and that the companies and 
     cooperatives would then be free to sell any additional 
     production privately.
       Secondly, individual farmers now operate in a relatively 
     free market, and are permitted to farm areas of 75 hectares 
     (approximately 200 acres). Nearly 800,000 hectares 
     (approximately 2 million acres) are now in the hands of 
     individual farmers. The farmers do not own the land (land 
     ownership is reserved to the state), but they are allowed to 
     cultivate the land and are entitled to sell the production as 
     they wish. Many of these farmers have formed privately-
     operated cooperatives.

                           *   *   *   *   *



        ministry of foreign investment and economic cooperation

       The delegation met with Mr. Ernesto Senti Endarias, First 
     Vice Minister of the Ministry of Foreign Investment and 
     Economic Cooperation, and various members of his staff. 
     According to Vice Minister Senti, the Cuban economy is in its 
     fifth year of a gradual economic recovery, and foreign 
     investment has played an important role in this recovery. 
     Sales from enterprises resulting from direct foreign 
     investment account for approximately 3-4 percent of the Cuban 
     GDP, nearly twelve percent of all exports, and such 
     enterprises employ approximately one percent of the labor 
     force.
       Direct foreign investment is affecting various sectors of 
     the Cuban economy, including (1) tourism, (2) heavy industry 
     (petroleum (especially deep-water drilling)), (3) mining, (4) 
     light industry, (5) telecommunications, (6) energy 
     (especially alternative sources), (7) sugar (especially 
     derivatives from sugar production), and (8) agriculture. Only 
     three sectors are not open to direct foreign investment 
     health, education, and national security. Fifty-two percent 
     of direct foreign investment is from countries in Europe, 
     particularly Spain and France.
       Vice Minister Senti believes that direct foreign investment 
     in Cuba will continue to grow. He observed the companies 
     investing in Cuba typically are large companies, and these 
     companies exhibit a high level of professionalism in their 
     business ventures, which is beneficial for Cuba. In return, 
     Cuba offers foreign investors highly-trained workers, 
     political stability, and a government interested in helping 
     companies that are willing to help Cuba.

                           *   *   *   *   *



                  president ricardo alarcon de quesada

       The delegation met with Mr. Ricardo Alarcon de Quesada, 
     President of the National Assembly, former foreign minister 
     and former ambassador to the United Nations. The discussion 
     with President Alarcon was wide-ranging, and he was 
     forthcoming on all issues raised by the delegation. He showed 
     particular interest in the status of the various legislative 
     proposals in the U.S. Congress that might permit the sale of 
     U.S. food and medicine to Cuba. When asked whether Cuba would 
     commit to purchasing U.S. food and medicine after the 
     legislation passed, he stated Cuba would like to do so, but 
     ultimately it would depend on the text of the legislation and 
     on timing. He explained they were monitoring the various 
     versions of the legislation and that certain provisions 
     (especially the increased restriction on travel and the 
     limited duration of the export licenses) might make 
     purchasing U.S. food and medicine difficult.
       The Alliance then briefed President Alarcon on the upcoming 
     visit by Senators Pat Roberts and Max Baucus. The Alliance 
     explained the importance of these senators to any passage of 
     legislation regarding the sale of food and medicine to Cuba. 
     President Alarcon expressed his pleasure in visiting with the 
     Alliance again.


                          ministry of justice

       The delegation met with Lic Robert Diaz Sotolongo and other 
     members of the Ministry. Mr. Diaz began the meeting by 
     stating his satisfaction with the manner in which the United 
     States and Cuba were able to resolve the recent controversy 
     regarding Elian Gonzalez. He noted that this is a visible and 
     helpful example of how the two governments and their 
     societies can interact successfully despite differences of 
     opinion.
       Mr. Diaz then directed the discussion toward drug 
     interdiction, another area in which he believes Cuba and the 
     United States can increase cooperation. He noted that in the 
     last meeting with the Alliance, the Cuban Department of 
     Justice had asked for assistance in facilitating the 
     placement of a U.S. Coast Guard representative to the U.S. 
     Interest Section in Havana to help increase cooperation on 
     drug interdiction. He thanked the Alliance for its 
     assistance, noting with satisfaction that the U.S. Coast 
     Guard representative had arrived in Havana. Mr. Diaz went on 
     to describe the celebrated case of the ``Limerick,'' a 
     Belize-flagged vessel that began to sink in Cuban waters in 
     1996. The cooperation of British, American, and Cuban 
     officials led to the discovery on the vessel of six tons of 
     cocaine believed destined for the United States. The Cuban 
     officials turned over the drugs and the persons involved to 
     the U.S. authorities and actively assisted in the successful 
     prosecution of the individuals traveling to the United States 
     to testify in the criminal trial.

                           *   *   *   *   *



                              observation

       All the Cuban Government officials and the Cuban people 
     with whom we visited were friendly and answered our questions 
     in a forthright manner. They made it clear they have no ill 
     feeling toward the American people or the U.S. form of 
     government. They expressed bewilderment that the U.S. 
     maintains its economic sanctions against Cuba despite other 
     developments, including the normalization of U.S. trade 
     relations with

[[Page 20051]]

     China, Vietnam, and North Korea, the increasing foreign 
     investment in Cuba by the rest of the world (especially 
     Europe and Canada), and the overwhelming U.S. public opinion 
     in favor of removing the sanctions.
       The Alliance is grateful for the opportunity to have 
     concluded a second successful fact-finding mission to Cuba, 
     and intends to continue this process. The Alliance is 
     convinced that the U.S. trade restrictions must end and that 
     we must deal with the Cuban Government as it is, not as we 
     wish it to be.

                          ____________________