    [Public Papers of the Presidents of the United States: William J. Clinton (1996, Book II)]
    [July 16, 1996]
    [Pages 1136-1138]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Statement on Action on Title III of the Cuban Liberty and Democratic
    Solidarity (LIBERTAD) Act of 1996
    July 16, 1996

        From the outset of my administration, I have been committed to a
    bipartisan policy that promotes a peaceful transition to democracy in
    Cuba. Consistent with the Cuban Democracy Act and with the efforts of my
    predecessors, I have maintained a tough economic embargo on the Cuban
    regime while supporting the Cuban people in their struggle for freedom
    and prosperity. Often, the United States has stood alone in that
    struggle, because our allies and friends believed that pressuring Cuba
    to change was the wrong way to go.
        Five months ago, the world was given a harsh lesson about why we
    need more pressure on Cuba. In broad daylight, and without
    justification, Cuban military jets shot down two unarmed American
    civilian aircraft over international waters, taking the lives of four
    American citizens and residents. I took immediate steps to demonstrate
    my determination to foster

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    change in Cuba, including the signing into law of the Cuban Liberty and
    Democratic Solidarity (LIBERTAD) Act, which strengthens the embargo,
    advances the cause of freedom in Cuba, and protects the interests of
    American citizens whose property was expropriated by the Cuban regime.
    And I called on the international community to condemn Cuba's actions.
        Now the time has come for our allies and friends to do more--to join
    us in taking concrete steps to promote democracy in Cuba. That is why
    today, I am announcing a course of action on title III of the LIBERTAD
    Act to encourage our allies to work with us and accelerate change in
    Cuba.
        Title III allows U.S. nationals to sue foreign companies that profit
    from American-owned property confiscated by the Cuban regime. The law
    also provides me with the authority to suspend the date on which title
    III enters into force, or the date on which U.S. nationals can bring
    suit, if I determine that suspension is necessary to the national
    interest and will expedite a transition to democracy in Cuba. I have
    decided to use the authority provided by Congress to maximize title
    III's effectiveness in encouraging our allies to work with us to promote
    democracy in Cuba.
        I will allow title III to come into force. As a result, all
    companies doing business in Cuba are hereby on notice that by
    trafficking in expropriated American property, they face the prospect of
    lawsuits and significant liability in the United States. This will serve
    as a deterrent to such trafficking, one of the central goals of the
    LIBERTAD Act.
        At the same time, I am suspending the right to file suit for 6
    months. During that period, my administration will work to build support
    from the international community on a series of steps to promote
    democracy in Cuba. These steps include: increasing pressure on the
    regime to open up politically and economically, supporting forces for
    change on the island, withholding foreign assistance to Cuba, and
    promoting business practices that will help bring democracy to the Cuban
    workplace.
        At the end of that period, I will determine whether to end the
    suspension, in whole or in part, based upon whether others have joined
    us in promoting democracy in Cuba. Our allies and friends will have a
    strong incentive to make real progress because, with title III in
    effect, liability will be established irreversibly during the suspension
    period and suits could be brought immediately when the suspension is
    lifted. And for that very same reason, foreign companies will have a
    strong incentive to immediately cease trafficking in expropriated
    property, the only sure way to avoid future lawsuits.
        Our allies and foreign business partners know from our actions over
    the past 4 months that my administration is determined to vigorously
    implement the LIBERTAD Act. For example, title IV of the act bars from
    the United States individuals who profit from property confiscated from
    American citizens. My administration has already begun to notify several
    foreign nationals that they could no longer enter the United States.
    Rather than face this prospect, a significant number of foreign
    companies already has chosen to leave Cuba, thereby reducing the flow of
    resources the regime uses to maintain its grip on power.
        Today's action is the best way to achieve the bipartisan objectives
    we all share: to isolate the Cuban Government and to bring strong
    international pressure to bear on Cuba's leaders, while holding out the
    very real prospect of fully implementing title III in the event it
    becomes necessary. By working with our allies, not against them, we will
    avoid a split that the Cuban regime will be sure to exploit. Forging an
    international consensus will avert commercial disputes that would harm
    American workers and business and cost us jobs here at home. And it will
    help maintain our leadership authority in international organizations.
        We will work with our allies when we can. But they must understand
    that for countries and foreign companies that take advantage of
    expropriated property the choice is clear: They can cease profiting from
    such property, they can join our efforts to promote a transition to
    democracy in Cuba, or they can face the risk of full implementation of
    title III. As our allies know from our implementation of other
    provisions of the bill over the last 4 months, my administration takes
    this responsibility seriously.
        For the past four decades Republican and Democratic administrations
    alike have worked for the transition to democracy of the last
    nondemocratic regime in our hemisphere. This is a cause the
    international community should be prepared to embrace. As implemented
    under today's decision, title III of the LIBERTAD Act provides us with
    powerful leverage to build a stronger international coalition for
    democracy in

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    Cuba if possible and with a powerful tool to lead that struggle alone if
    necessary. This is in the best interests of our country and in the best
    interests of the Cuban people.