    [Public Papers of the Presidents of the United States: William J. Clinton (1997, Book I)]
    [March 28, 1997]
    [Pages 360-361]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Letter to Congressional Leaders Reporting on Payments to Cuba
    March 28, 1997

    Dear Mr. Speaker:  (Dear Mr. President:)
        This report is submitted pursuant to 1705(e)(6) of the Cuban
    Democracy Act of 1992, 22 U.S.C. 6004(e)(6) (the ``CDA''), as amended by
    section 102(g) of the Cuban Liberty and Democratic Solidarity (LIBERTAD)
    Act of 1996, Public law 104-114 (March 12, 1996), 110 Stat. 785, 22
    U.S.C. 6021-91 (the ``LIBERTAD Act''), which requires that I report to
    the Congress on a semiannual basis detailing payments made to Cuba by
    any United States person as a result of the provision of
    telecommunications services authorized by this subsection.
        The CDA, which provides that telecommunications services are
    permitted between the United States and Cuba, specifically authorizes
    the President to provide for the issuance of licenses for payments due
    to Cuba as a result of the provision of telecommunications services. The
    CDA states that licenses may provide for full or partial settlement of
    telecommunications services with Cuba, but does not require any
    withdrawal from a blocked account. Following enactment of the CDA on
    October 23, 1992, a number of U.S. telecommunications companies
    successfully negotiated agreements to provide telecommunications
    services between the United States and Cuba consistent with policy
    guidelines developed by the Department of State and the Federal
    Communications Commission.
        Subsequent to enactment of the CDA, the Department of the Treasury's
    Office of Foreign Assets Control (OFAC) amended the Cuban Assets Control
    Regulations, 31 C.F.R. Part 515 (the ``CACR''), to provide for specific
    licensing on a case-by-case basis for certain transactions incident to
    the receipt or transmission of telecommunications between the United
    States and Cuba, 31 C.F.R. 515.542(c), including settlement of charges
    under traffic agreements.
        The OFAC has issued eight licenses authorizing transactions incident
    to the receipt or transmission of telecommunications between the United
    States and Cuba since the enactment of the CDA. None of these licenses
    permits payments to the Government of Cuba from a blocked account. For
    the period June 30, 1996, through December 31, 1996, OFAC-licensed U.S.
    carriers reported payments to the Government of Cuba in settlement of
    charges under telecommunications traffic agreements as follows:

      AT&T Corporation (formally, American Telephone and         $19,162,032
       Telegraph Company).....................................
      AT&T de Puerto Rico.....................................       227,709
      Global One (formerly Sprint Incorporated)...............     2,589,706
      IDB WorldCom Services, Inc. (formerly, IDB                     561,553
       Communications, Inc.)..................................
      MCI International, Inc. (formerly, MCI Communications        5,354,423
       Corporation)...........................................
      Telefonica Larga Distancia de Puerto Rico, Inc..........       104,498
      WilTel, Inc. (formerly, WilTel Underseas Cable, Inc.)...     2,913,610
      WorldCom, Inc. (formerly, LDDS Communications, Inc.)....     1,687,896
                                                               -------------
          Total...............................................    32,601,427

        I shall continue to report semiannually on telecommunications
    payments to the Government of Cuba from United States persons.
            Sincerely,

                                                          William J. Clinton

    Note: Identical letters were sent to Newt Gingrich, Speaker of the House
    of Representatives, and Albert Gore, Jr., President of the Senate.

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