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TEXT: EIZENSTAT ON HELMS-BURTON TITLE III WAIVER
(Cites EU, Latin American support for Cuban democracy)
July 16, 1998

WASHINGTON -- Having garnered international support for the effort to press for democratic change in Cuba, President Clinton has decided to suspend for an additional six months the right of U.S. citizens under the Libertad Act to sue parties that traffic in property confiscated by Cuba's government, Ambassador Stuart Eizenstat said in a July 16 announcement.

"We have made steady, substantial progress since the President launched the multilateral pro-democracy initiative in 1996. Before we began, the U.S. was largely acting alone in its efforts to promote democracy and human rights in Cuba. Now, the international community is no longer silent about the lack of democracy and human rights in Cuba," said Eizenstat, the U.S. under secretary of state for economic, business and agricultural affairs.

The Libertad Act -- commonly known as the Helms-Burton law -- gives the president the authority to suspend the right to file lawsuits under the Act's confiscated property provisions in order to advance U.S. national interests and hasten a transition to democracy in Cuba. Clinton has exercised that authority since the law went into effect in 1996, while simultaneously urging U.S. allies to push Cuba on democracy and human rights issues.

"Our efforts have resulted in unprecedented international attention to the promotion of a peaceful democratic transition in Cuba. The Cuban government is hearing the message at every turn that there must be peaceful democratic change," Eizenstat said.

Fruits of that effort include the May 18 U.S.-European Union understanding with regard to the protection of investments. Eizenstat described the agreement as "the first multilateral framework for opposition to investment in properties expropriated in a manner inconsistent with the requirements of international law." He added that while the understanding is world-wide in scope, "it is of particular relevance to Cuba."

Following is the text of Eizenstat's statement:

(begin text)

THE DEPARTMENT OF STATE
Office of the Spokesman

July 16, 1998

STATEMENT BY AMBASSADOR STUART E. EIZENSTAT
UNDER SECRETARY OF STATE FOR ECONOMIC, BUSINESS, AND AGRICULTURAL AFFAIRS

The President has today announced his decision to exercise the authority granted to him under the Libertad Act and suspend for another six months the lawsuit provisions of Title III of the Act. In doing so, the President took into account significant steps made during the past year in Europe and Latin America to promote democracy and human rights in Cuba.

In 1996, the President launched an historic effort to develop a multilateral approach to promote democracy in Cuba. For the first time since Castro took over Cuba, under the leadership of the President and the Secretary of State, the United States has made a consistent, concerted, forceful effort to encourage other countries to act on their expressed commitment to democracy and human rights and encourage democratic change in Cuba. Our efforts have resulted in unprecedented international attention to the promotion of a peaceful democratic transition in Cuba. The Cuban government is hearing the message at every turn that there must be peaceful democratic change.

One of the most important achievements noted by the President is the Understanding with the European Union (EU) with Respect to Disciplines for the Strengthening of Investment Protection. The Understanding, concluded at the US-EU Summit on May 18, establishes the first multilateral framework for opposition to investment in properties expropriated in a manner inconsistent with the requirements of international law. While it is world-wide in scope, it is of particular relevance to Cuba.

The EU has agreed to take concrete action to discourage investments in illegally expropriated properties. These steps include:

--the establishment of an international claims registry;

-- public statements discouraging investments in illegally expropriated property;

-- the denial of government financial assistance;

-- and the withholding of commercial advocacy or diplomatic support for such investments.

If a country, such as Cuba, has a record of repeated expropriations inconsistent with international law, the EU has agreed that it will no longer conduct business as usual with that country. All investments in such countries will be subject to particular scrutiny to ensure that government support or assistance will not be provided in support of transactions involving such properties.

This distinct and new approach is a significant complement to our other efforts to promote respect for the rule of law and fundamental rights in Cuba. Particularly noteworthy is that, for the first time since Fidel Castro took power, the EU has acknowledged that one of the primary tools used by the Castro regime to expropriate property from U.S. citizens appears to have been contrary to international law. Fidel Castro has recognized the impact of this Understanding by strongly condemning it as the "internationalization of Helms-Burton." We are working closely with the Congress to achieve full and effective implementation of this Understanding.

The EU has taken other important actions that promote democracy and human rights in Cuba. In June, the European Union again renewed its historic Common Position, which links improved political and economic ties to Cuba's steps to implement democracy and human rights. The EU called for "a peaceful transition to pluralist democracy in Cuba and greater respect for human rights and fundamental freedoms."

The European Union and its Member States continued to raise the issue of political prisoners with the Cuban government. In keeping with its long standing support for the right to democratic protest, the EU stepped up contacts with political dissidents in Cuba. In February, the EU issued a strong demarche calling on the Cuban government to release the four members of the Dissidents Working Group who have been imprisoned for their peaceful advocacy of change. The EU also clearly stated that full membership in the Lome Convention, the EU's assistance arrangement with former colonies, would depend on human rights progress. Of special importance, the statement added, "the Council expects, in particular, that the obstruction of the Havana Ambassadors Human Rights Working Group shall cease, and the four members of the Dissidents' Working Group now in prison shall be released."

In addition to these European actions, other governments have called on Cuba to change. Prime Minister Chretien of Canada directly raised the issue of political prisoners and human rights in his visit with Fidel Castro in April. President Cardoso of Brazil called on Castro to "move towards democracy" in a speech at the Summit of the Americas, and Brazil's foreign minister met with dissidents in Cuba. Argentina's President Menem, El Salvador's Calderon Sol, and Nicaragua's Aleman all continued their countries' efforts to promote democratic change and human rights in Cuba. The Organization of American States (OAS) reaffirmed that until Cuba shares the democratic system of all other nations in the Americas, there would be no consensus for its return to the OAS.

Since 1996, I have actively encouraged the growing effort among non-governmental organizations and the private sector to promote best business practices in Cuba. Last January, at a conference in Washington sponsored by the North American Committee (NAC) of the National Policy Association, consisting of over 100 business, labor, and academic leaders from the United States, Canada, and Mexico, I called on the international NGO community and private sector to join together to form a working group that would actively promote best business practices in Cuba. I am very pleased that the NAC has created an internal task force to consider steps to establish a working group, and has discussed the issue with Pax Christi, a leading European human rights NGO, and with labor organizations. We continue to encourage the international business community to participate in this effort.

We have made steady, substantial progress since the President launched the multilateral pro-democracy initiative in 1996. Before we began, the U.S. was largely acting alone in its efforts to promote democracy and human rights in Cuba. Now, the international community is no longer silent about the lack of democracy and human rights in Cuba. The President is using the waiver authority granted him under the Libertad Act to advance U.S. national interests and hasten a transition to democracy in Cuba. The Secretary has a strong, heartfelt, personal commitment to this effort to bring about the change that the people of Cuba for so long have sought.

This progress could not have been made without thorough and effective consultations with the U.S. Congress. We will continue to work with our friends and allies and will consult closely with Congress on ways to advance the goal of a free, independent, and prosperous Cuba.

(end text)






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