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### Viewing cable 09MADRID483, SPAIN/CUBA: TITLE III OF LIBERTAD ACT

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
09MADRID483 | 2009-05-19 12:12 | 2010-12-17 21:09 | CONFIDENTIAL | Embassy Madrid

`

    VZCZCXYZ0000
    RR RUEHWEB

    DE RUEHMD #0483/01 1391238
    ZNY CCCCC ZZH
    R 191238Z MAY 09
    FM AMEMBASSY MADRID
    TO SECSTATE WASHDC 0647

` `

    C O N F I D E N T I A L MADRID 000483

    SIPDIS

    FOR EUR/WE AND WHA/CCA - GABRIELA ZAMBRANO

    E.O. 12958: DECL: 05/19/2019
    TAGS: ETRD ETTC PREL SP CU
    SUBJECT: SPAIN/CUBA: TITLE III OF LIBERTAD ACT

    REF: A. STATE 48487
    ¶B. 2008 MADRID 1299

    Classified By: Charge d'Affaires William H. Duncan, for reasons 1.4(b)
    and (d).

    ¶1. (U) The information in this message is keyed to
    questions posed in reftel A, paragraph 5 and updates
    information reported in reftel B.

    ¶2. (C) Has the host country, in Post's opinion, worked to
    promote the advancement of democracy and human rights in Cuba?

    An April 2009 poll on recommendations for improving
    Spain-U.S. relations found that 61 per cent of public
    respondents thought Spain should, in order to improve its
    bilateral relationship with the United States, mediate
    between the United States and Cuba. The findings of the
    independent government-affiliated thinktank Real Instituto
    Elcano reflect Spanish public opinion about Spain's central
    role in advancing democracy in Cuba.

    Spain continues to play a leadership role in the EU's
    political and human rights dialogue with Cuba and alludes to
    its hopes for even greater EU-Cuba engagement during Spain's
    EU presidency in the first half of 2010. Spanish government
    officials have privately criticized the Czech Republic's EU
    Presidency for being too "nationalist" and outspoken when it
    comes to advocating for democratic reforms. A Czech
    diplomat's public remarks in Madrid February 3, promising
    that the Czech Republic would resume its demands for freedom
    of expression and freedom of religion in Cuba upon the end of
    its EU presidency, upset the Cuban Ambassador to Spain.

    Spain has hinted publicly at a possible presidential
    visit but MFA officials have downplayed the possibility so
    far, indicating that such a trip would required a "big
    change," i.e. the re-opening of Spain's Cultural Center or
    the release of "lots" of political prisoners. Special
    Ambassador for IberoAmerica Alonso Dezcallar told the Charge
    on February 4 that Zapatero would go to Cuba "when the
    conditions are appropriate." Dezcallar suggested the trip
    was not imminent and that there was plenty of work to be done
    between now and then. Spanish FM Moratinos commented May 13
    in Prague that there was still a possibility President
    Zapatero would visit Cuba within the year but noted there
    were no firm plans at that time.

    Spanish officials led by MFA Political Director Alfonso
    Lucini traveled to Havana January 16-17 for the third round
    of bilateral human rights talks with the Cuban government
    since Spanish Foreign Minister Moratinos's April 2007 visit
    to Cuba. On the eve of the talks, the GOC released Reynaldo
    Lebrada Pena, one of 75 political prisoners detained in 2003.
    The GOS delegation described the meetings to the media as
    positive, constructive and friendly, but MFA officials
    privately acknowledged that the release of Lebrada -- who had
    all but completed his sentence -- was no great victory.
    Subdirector General for Mexico, Central America and the
    Caribbean Jorge Romeu confirmed Spain had given Cuban
    authorities a prioritized list of about 12 prisoners of
    conscience, including Oscar Biscet, during the human rights
    dialogue.

    As of mid-May 2009, Spain was close to welcoming eight
    special Cuban migrants currently protected at Guantanamo, as
    first agreed in June 2008. The "Historic Memory Law"
    granting Spanish nationality to the grandchildren of
    Spaniards who lost or forfeited Spanish nationality due to
    exile went into effect December 31, 2008. The O,
    anticipating the Spanish Consulate in Havana would receive as
    many as 77,000 requests for citizenship a year in the first 3
    years, added 35 employees to address the workload.

    On January 31 and February 1 in Madrid, demonstrators
    gathered respectively to call for the lifting of the U.S
    embargo and express hope the new U.S. administration would
    facilitate Cuban development while respecting its sovereignty
    and, subsequently, to protest the Cuban Revolution and to
    demand freedom for the people of Cuba. Called by the
    "Association of IberoAmericans for Liberty" (AIL), the second
    demonstration drew support from the conservative Partido
    Popular (PP), Catalan CiU, and other political parties and
    organizations.

    ¶3. (C) Has the host country made public statements or
    undertaken other governmental actions, such as resolutions in
    the
    national assemblies condemning human rights abuses in Cuba;
    or actions in support of civil society in Cuba through host
    country's diplomatic missions or other fora?
    Spain is careful to conduct its diplomatic relations
    with the Government of Cuba and wary of upsetting GOC
    officials via unsanctioned contact with dissident groups.
    Shortly after taking office, MFA Secretary of State for
    Iberoamerican Affairs Juan Pablo de Laiglesia said May 6 he
    expected to continue with the program of his predecessor with
    regards to Cuba: renewed dialogue, with Cuban citizens as
    the protagonists. He cited "advances," defended continued
    dialogue (understood to be with the GOC), and lauded U.S.
    policy changes while voicing high expectations for increased
    U.S. attention to the entire region, noting President Obama
    had sent important signals during the April Summit of the
    Americas.

    President Zapatero said on numerous occasions during
    the U.S. political transition that he hoped for in-depth
    conversations with President Obama on conflictive issues
    including Cuba. The GOS, in an official communique,
    congratulated President Obama's mid-April decision to lift
    restrictions on remittances and family member trips and
    commented that it facilitates reconciliation between Cuba and
    the United States. Conservative opposition Popular Party
    (PP) Communication Secretary Esteban Gonzalez Pons expressed
    the PP's hope the measure would help with the democratization
    of Cuba.

    ¶4. (C) Have there been any high-level diplomatic visits
    between Cuba and the host country in the past six months?

    Former Cuban Foreign Minister Perez Roque visited Spain
    in October 2008.

    FM Moratinos spoke by phone March 4 with new Cuban
    Minister of Foreign Affairs Bruno Rodriguez who reportedly
    "expressed his willingness to maintain all the commitments
    and to accelerate the work agenda" between Spain and Cuba.
    Moratinos told the media in Brussels that FM Rodriguez had
    assured him he was reviewing the agenda with former FM
    Perez-Roque and planned to honor the objectives of his
    predecessor. "The message is clear: continuity and
    commitment to continue taking steps forward in the agenda we
    had set for 2009," said Moratinos on March 5.

    Moratinos and Rodriguez met in Prague on May 13, during
    the EU-Grupo de Rio meeting. Moratinos reported the working
    meeting resulted in an agreement to continue working together
    with the same mutual respect and commitment to strengthen the
    bilateral relationship. Moratinos expressed his hope that
    the EU-27 would reconfirm the dialogue mechanism in June, but
    doubted whether the EU would revoke the Common Position on
    Cuba. Unnamed Spanish sources have indicated that Spain
    would like to review the Common Position during its EU
    Presidency and reportedly FM Rodriguez supports a review in
    2010, according to the media.

    Representatives of Spanish autonomous community and
    local governments visit Cuba often and maintain contacts and
    collaborative relationships. The Cuban government encourages
    and facilitates relations with the autonomous communities,
    especially with the Basque Country and to a lesser extent
    with Andalucia, Galicia, Castilla-La Mancha, and the Canary
    Islands.

    ¶5. (C) What is the nature of investments (and names, if
    known) that host country businesses have in Cuba? What host
    country
    businesses participated in the Havana Trade Fair (November 3)?

    Information on Spanish foreign investment in Cuba is
    limited, in part because Spanish companies avoid publishing
    such data and the Spanish government does not provide
    detailed information. Spain's Ministry of Economy and
    Finance reports that between 1995 and 2007, Spanish
    investment in Cuba amounted to roughly 4.7 billion euros, or
    approximately 6 billion dollars. The Ministry reports that
    in 2007, Spanish companies invested 4 million euros, but that
    there was no significant new investment in 2008. Spain
    remains among the countries with the largest economic
    presence in Cuba and leads the rankings in investment
    projects. Tourism, electricity, and small machinery (and,
    until recently, tobacco) make up the bulk of Spanish
    investment in Cuba. Spanish companies have a dominant
    position in the country's tourism industry; most of the four-
    and five-star hotels managed by foreign firms are in Spanish
    hands.

    Following is a list of Spanish companies present in Cuba,
    organized by sector:

    Tourism: Globalia Hoteles, Sol Melia, NH Hoteles, Marsans
    Group, Iberostar Group, Barcelo, Occidental, and RIU. Sol
    Melia owns and operates 24 hotels in Cuba. Barcelo has plans
    to
    open five new hotels in Cuba between now and 2010.

    Financial Sector: BBVA, Banco Sabadell, Caja de Ahorros del
    Mediterraneo, and Caja Madrid. (These institutions have small
    representative offices that presumably do mostly trade
    finance.)

    Energy and other utilities: Repsol YPF, Aguas de Barcelona,
    Endesa, and Iberdrola.

    Tobacco: Altadis (formerly Tabacalera, S.A.) is a major
    investor in tobacco, cigars, and food and beverages, but was
    acquired by UK-based Imperial Tobacco on January 25, 2008.
    It is not known what portion Spanish investors may have
    retained. The company has a 50 percent interest in
    Corporacion Habanos, the exclusive worldwide distributor of
    premium Cuban cigars brands.

    Airlines: Iberia

    Dairy: Penasanta, S.A.

    ¶6. (C) Are there any bilateral trade agreements or other
    cooperative agreements between host country and Cuba?

    Agreement between the Kingdom of Spain and the Republic of
    Cuba on Air Transportation, signed in Havana, April 22, 2005.
    See Boletin Oficial de Espana (BOE - Spain's equivalent of
    the Federal Register) of September 6, 2006 - Section 1.

    Agreement between the Kingdom of Spain and the Republic of
    Cuba on Mutual Customs Assistance, signed in Havana, August
    8, 2001. See BOE of March 17, 2003 - Section 1.

    Agreement on Economic and Industrial Cooperation between the
    Republic of Cuba and the Kingdom of Spain, signed in Madrid
    on October 3, 1985. See BOE of February 13, 1986.

    Agreement between the Kingdom of Spain and the Republic of
    Cuba on the Promotion and Protection of Investment, signed in
    Havana on May 27, 1994. See BOE of October 6, 2000 - Section
    ¶1.
    Convention between the Kingdom of Spain and the Republic of
    Cuba to avoid double taxation and prevent tax evasion on
    income and assets; and Protocol, signed in Madrid February 3,
    ¶1999. See BOE of January 10, 2001 ) Section I.

    Complementary Agreement on Tourism, signed in Havana on
    September 10, 1978. See BOE of March 2, 1987 - Section 1.

    Complementary Agreement to the September 10, 1978 Basic
    Convention between the Kingdom of Spain and the Republic of
    Cuba on Scientific and Technical Cooperation, November 19,
    ¶1984. See BOE of March 2, 1987, Section I.

    Note: Spain is Cuba's third largest trading partner and has
    the largest number of joint ventures within Cuba, mostly
    involving small and medium-sized Spanish companies and
    concentrated in the tourism and light industry sectors.
    Spain exported 785 million euros worth of goods and services
    to Cuba in 2008, up from 668.5 million euros in 2007. Spain
    imported goods and services from Cuba worth 147 million euros
    in 2008, only about four million more than in 2007. Spain
    exports mostly mechanical and electrical equipment,
    appliances, hotel equipment, construction equipment,
    automotive spare parts, chemicals and foodstuffs. Spain
    imports mostly tobacco, liquor and fresh fish from Cuba.
    There is an active Hispano-Cuban Business Committee that
    promotes trade between the two countries.

    ¶7. (C) Are there any exchange programs between host country
    and Cuba, including but not limited to: scholarships for host
    country nationals to study in Cuba; Cuban-paid medical travel
    for host country nationals; and Cuban doctors working in host
    country? Post is not aware of any such exchange programs.
    DUNCAN

`