U.S. business eyes Havana
Clinton expected to ease curbs
BY ANA RADELAT
Special to The Herald
Part 3 of a 3 part series
WASHINGTON -- Sensing that Congress and the president are willing
to poke holes in the
40-year-old embargo against Cuba, hundreds of U.S. lawmakers,
farm leaders and corporate
executives have rushed to Havana in recent months to explore
business opportunities.
Even if Congress fails to ease sanctions against Cuba, President
Clinton will probably
take additional steps before leaving office in January, according
to administration officials
and business consultants with interests in Cuba.
Although the fall of the Berlin Wall heightened interest in trade
with the island, Pope John
Paul II's journey to Cuba in 1998 gave travel there ``legitimacy
and acceptability,'' said Geoff
Thale, an associate with the Washington Office on Latin America,
a nonprofit group that
advocates easing the embargo. ``Before the pope's visit, it was
a bigger political risk,'' Thale
said.
Afterward, President Clinton eased restrictions on the sale of
medicines, allowed U.S. food
sales to nongovernmental entities on the island and relaxed restrictions
on American travel.
And even though the 1996 Helms-Burton Act stripped the president
of much of his authority
over the Cuba embargo, Clinton can still license specific transactions.
LICENSING AUTHORITY
Using that licensing authority, Clinton may broaden permitted
transactions to
include the sale of food to the Cuban government under certain
conditions, some
business consultants say.
These conditions might include prohibiting sales that benefit
Cuba's tourism
industry or allowing limited sales for a trial period.
Moreover, Clinton will probably allow Cuban Americans unlimited
travel to the
island to visit their relatives, a State Department official
said. They are now
restricted to once-a-year visits unless they can obtain permission
for additional
travel for humanitarian purposes.
José Cárdenas, director of the Cuban American National
Foundation's
Washington office, called the pope's visit a ``catalyst'' that
led to increased U.S.
contacts with Cuba.
``In the beginning of the administration [Clinton] held to the
traditional U.S.
approach of isolating the Castro regime. Now they're virtual
cheerleaders [for
increased U.S. contacts with the island],'' Cárdenas said.
VISITS ENCOURAGED
A State Department official agreed that the Clinton administration
``encouraged
various official delegations going down.''
``It's a central part of our people-to-people policy,'' the official explained.
Meanwhile, dozens of lawmakers who want U.S.-Cuba policy to change
are flying
to Havana. The Washington Office on Latin America hosted an April
trip to Cuba
for Reps. Joe Moakley and Jim McGovern, Massachusetts Democrats
who have
long criticized the Cuba embargo. In February, the group took
Reps. Michael
McNulty and Maurice Hinchey, New York Democrats.
Pastors for Peace, an interdenominational group of religious leaders
who maintain
that embargo restrictions are unconstitutional, has organized
travel for the
all-Democratic Congressional Black Caucus, whose members have
made five
trips to Cuba in the last 18 months. Their travel was largely
funded by private
foundations.
``Feeling that lifting the trade sanctions on Cuba for food and
medicine is on the
horizon, I wanted to make the trip there to lay the groundwork
for South Carolina
to take advantage of this new market,'' said Rep. James E. Clyburn,
D-S.C.,
chairman of the black caucus. ``And believe me, I am not alone.''
DELEGATES TRAVEL
When Clyburn was in Havana this month, he ran into Sen. Blanche
Lincoln and
Rep. Marion Berry, Arkansas Democrats, who were traveling with
a 16-member
delegation of Arkansas farmers.
While Cuba has always attracted liberal Democrats, it now has bipartisan appeal.
Sen. Arlen Specter, R-Pa., visited last year, as did Illinois
Gov. George Ryan,
also a Republican. Both men discussed business opportunities
with Cuban
officials during their stay.
``It serves neither the U.S.'s nor Cuba's interest to continue
the embargo on vital
supplies like food and medicine,'' Senate Minority Leader Tom
Daschle, D-S.D.,
said during his trip last August.
In the last two years, representatives of U.S. Wheat Associates
have visited
Havana five times. They brought wheat donations on their first
two visits, but now
they are trying to sell.
NEW MARKET
Dawn Forsythe, spokeswoman for the group, acknowledges that the
Cuban
Catholic charity CARITAS and other nongovernmental groups in
Cuba -- which are
allowed by law to buy U.S. agricultural goods -- ``are not set
up to handle'' the
volume of wheat U.S. producers want to sell to Cuba.
Yet the opportunity to reach a new market compels the American
wheat growers
to keep trying, Forsythe said.
The American Farm Bureau Federation, the Texas Farm Bureau and
the U.S.
Feed Grains Council have also sent delegations to Cuba since
the pope's visit.
Representatives of the U.S. Cane Sugar Refiners' Association also visited.
Nicholas Kominus, president of the association, said his members
are preparing
for the day they can import and refine Cuba's ``high quality''
sugar.
``If you're in the industry, going to Cuba is like going to Mecca,'' he said.
LAYING GROUNDWORK
The U.S. Chamber of Commerce has also sponsored two trips to the
island in the
past year, laying the groundwork for the day that its members
are allowed to trade
with the island.
Chamber Vice President Craig Johnstone predicts the embargo will
be lifted
because it is ``unhelpful for Cuba and unhelpful for the United
States.''
Meanwhile, the chamber, the largest U.S. business group, has initiated
several
projects with Cuban officials. One would bring Cuban entrepreneurs
to the United
States. Another would begin talks between the Cuban government
and some of
the American companies that lost property during Castro's nationalizations.
The Clinton administration is wary of independent efforts to settle
such claims,
but it was more supportive of the first U.S. trade show in Havana.
Peter Nathan,
president of PWN Exhibicon, organized a January health trade
fair, which was
attended by 309 business people from 97 American companies.
Since licensed sales of medicine and medical products are permitted
under law,
trade show participants signed contracts worth between $3 million
and $5 million
at the event. Since then, trade fair participants have received
another $15 million
to $20 million in orders from the Cuban government, Nathan said.
Nathan, who produced the first U.S. trade shows in Communist China
and the
former Soviet Union, said embargo restrictions made the Cuba
exhibit the most
difficult of all his ventures.
Yet he is planning a food and agribusiness show for American producers
in
Havana next year.
``There's just so much interest,'' Nathan said.