[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. [[Page 361]]