The former American president's mention of a proposed referendum project was the first time many Cubans learned of the
grassroots effort to demand changes in Cuba's socialist system.

"I am informed that such an effort, called the Varela Project, has gathered sufficient signatures and has presented such a petition
to the National Assembly," Carter said, speaking before a gathering that included President Fidel Castro.

"When Cubans exercise this freedom to change laws peacefully by a direct vote, the world will see that Cubans, and not
foreigners, will decide the future of this country," said Carter, who spoke in Spanish, reading from a prepared text.

Organizers of the project turned in to the National Assembly 11,020 signatures asking for a referendum asking voters if they
favor human rights, an amnesty for political prisoners, the right to have a business, and electoral reform.

But in a statement that was sure to please Castro, Carter called for an end to four decades of American trade sanctions against
the island.

"My hope is that the Congress will soon act to permit unrestricted travel between the United States and Cuba, establish open
trading relationships, and repeal the embargo," he said.

"Public opinion surveys show that a majority of people in the United States would like to see the economic embargo ended,
normal travel between our two countries, friendship between our people, and Cuba to be welcomed into the community of
democracies in the Americas," said Carter

But, he added, "most of my fellow citizens believe that the issues of economic and political freedom need to be addressed by
the Cuban people.

"After 43 years of animosity, we hope that someday soon, you can reach across the great divide that separates our two
countries and say: "We are ready to join the community of democracies," said Carter. "And hope that Americans will soon
open our arms to you and say, "We welcome you as our friends."

Carter also noted the difference between his country and Cuba and touched on concerns about human rights on the island.

"Cuba has adopted a socialist government where one political party dominates, and people are not permitted to organize any
opposition movements," said Carter. "Your Constitution recognizes freedom of speech and association, but other laws deny
these freedoms to those who disagree with the government."

"My nation is hardly perfect in human rights," Carter allowed." A very large number of our citizens are incarcerated in prison,
and there is little doubt that the death penalty is imposed most harshly on those who are poor, black, or mentally ill. For more
than a quarter century, we have struggled unsuccessfully to guarantee the basic right of universal health care for our people.

"Still, guaranteed civil liberties offer every citizen an opportunity to change these laws," he added.

On the eve of the speech, a debate emerged between the former U.S. president and Castro over the meaning of human rights
and democracy.

Carter, a longtime civil liberties advocate, appeared to set the stage for his Tuesday night address when he told students at a
social workers school on Monday that Americans "feel that it is very important to have absolute freedom of expression and
freedom of assembly.

"We take pride in our freedom to criticize our own government and to change our government when we don't like it by voting in
elections that are contested," Carter said. "Our people are completely free to form our own businesses, to hire other people to
work and to make a profit."

Afterward, Carter was to attend a baseball game between all-star teams comprised of top players from eastern and western
Cuba. Castro's attendance was not confirmed, but was considered likely.

Earlier Tuesday, Carter visited an AIDS sanitarium on Havana's outskirts and toured a farm cooperative outside the capital
with Agriculture Minister Alfredo Jordan.

Most Cubans have never even heard of Project Varela, which authorities here claim was "imported" from the United States.
Organizers describe the project as a homegrown citizens effort with moral support – but no financial assistance – from abroad.

In the last decade, communist Cuba for the first time has allowed a limited number of people, mostly artisans and tradespeople,
to start small businesses or open family restaurants.

On the issue of individual freedoms, international rights groups charge that Cuba's government does not recognize civil liberties
such as free speech, assembly and association. Those who publicly criticize Cuba's leaders – and Castro in particular – can
face possible prison time depending on the degree and form of that criticism.

Although some dissidence is now tolerated, government opponents are routinely harassed and accused of being
"counterrevolutionaries" or of working for the U.S. government.