[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]]