BY DAVID KIDWELL

 A business partner of former immigration supervisor Mariano Faget said Monday
 that Faget, on trial charged with espionage, was involved in plans to circumvent
 the U.S. embargo of Cuba by buying land on the island through a South American
 company.

 Jose Goyanes, an investor and co-director of America-Cuba Inc., said the plans
 were never carried out. ``There were many ideas discussed,'' said Goyanes,
 adding that the company was under pressure from Procter & Gamble to make
 contacts in Cuba so that products could immediately be sold there if the embargo
 were lifted. ``But no actions were ever taken in that regard.''

 Faget, 54, is on trial for making illegal disclosures of classified U.S. secrets to a
 business associate and friend with ties to what the FBI calls ``known Cuban
 intelligence officers.''

 Faget argues that the disclosures, while an admitted mistake, were designed to
 protect his friend from the Cubans and not for their ears. Twelve minutes after the
 FBI ``dangled'' a bogus secret about a high-level defection in front of Faget on
 Feb. 11, Faget telephoned his America-Cuba partner in New York to pass it
 along. That partner, Pedro Font, left his office 20 minutes later to meet with
 Cuban Interests Section official Jose Imperatori, a man classified as a known
 Cuban spy by the FBI.

 Federal prosecutors Richard Gregorie and Curt Miner rested their case Monday
 after showing jurors a videotape of the meeting between Imperatori and Font in
 which they twice embraced.

 Goyanes, testifying as a defense witness, said America-Cuba never had any
 intention of doing business with Cuba until ``after the embargo was lifted and after
 changes were made in the Cuban government.''

 Under cross-examination, Goyanes acknowledged plans by America-Cuba to use
 a company in Peru or Panama to buy land in Cuba to develop a cemetery for
 Cuban Americans. He also said he did a market study in Cuba of available
 warehouse space for Procter & Gamble products.

 Goyanes said America-Cuba established a company in Panama for that purpose
 but never carried through. He said the plans were made after the fall of the Soviet
 Union. ``In 1993, we thought there could be rapid changes in Cuba,'' he said.
 ``Many ideas were thrown about.''

 Prosecutors argue that Faget divulged classified information to court favor with
 Cuban officials who could become key business ties in a post-Castro Cuba.

 Faget is expected to take the stand today. He faces about five years in prison if
 convicted.