[Weekly Compilation of Presidential Documents Volume 34, Number 41 (Monday, October 12, 1998)]
[Pages 2013-2014]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Message to the Congress Reporting on Telecommunications Services 
Payments to Cuba

October 8, 1998

To the Congress of the United States:

    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 semi-annual 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 payments to Cuba by license. The CDA states 
that licenses may be issued for full or partial settlement of 
telecommunications services with Cuba, but may 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 January 1 through June 30, 1998, 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)........................................  $12,795,658
AT&T de Puerto Rico........................................      292,229
Global One (formerly, Sprint Incorporated).................    3,075,733
IDB WorldCom Services, Inc. (formerly, IDB Communications,
 Inc.).....................................................    4,402,634
MCI International, Inc. (formerly, MCI Communications
 Corporation)..............................................    8,468,743
Telefonica Larga Distancia de Puerto Rico, Inc.............      129,752
WilTel, Inc. (formerly, WilTel Underseas Cable, Inc.)......    4,983,368
WorldCom, Inc. (formerly, LDDS Communications, Inc.).......    5,371,531
                                                            ------------
        Total..............................................   39,519,648



[[Page 2014]]

    I shall continue to report semiannually on telecommunications 
payments to the Government of Cuba from United States persons.
                                            William J. Clinton
The White House,
October 8, 1998.

Note: This message was released by the Office of the Press Secretary on 
October 9.