[Weekly Compilation of Presidential Documents Volume 33, Number 13 (Monday, March 31, 1997)]
[Pages 425-426]
[Online from the Government Publishing Office, www.gpo.gov]
<R04>
Letter to Congressional Leaders on 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 (formerly, American Telephone and
Telegraph Company)..................................... $19,162,032
AT&T de Puerto Rico..................................... 227,709
Global One (formerly Sprint Incorporated)............... 2,589,706
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IDB WorldCom Services, Inc. (formerly, IDB
Communications, Inc.).................................. 561,553
MCI International, Inc. (formerly, MCI Communications
Corporation)........................................... 5,354,423
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.