[Weekly Compilation of Presidential Documents Volume 32, Number 29 (Monday, July 22, 1996)]
[Pages 1265-1266]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Statement on Action on Title III of the Cuban Liberty and Democratic 
Solidarity (LIBERTAD) Act of 1995

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 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.

[[Page 1266]]

    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 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.