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### Viewing cable 08MADRID580, SPAIN/CUBA: TITLE III OF LIBERTAD ACT

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
08MADRID580 | 2008-05-23 14:02 | 2010-12-17 21:09 | CONFIDENTIAL | Embassy Madrid

`

    VZCZCXYZ0000
    PP RUEHWEB

    DE RUEHMD #0580/01 1441426
    ZNY CCCCC ZZH
    P 231426Z MAY 08
    FM AMEMBASSY MADRID
    TO SECSTATE WASHDC PRIORITY 4829

` `

    C O N F I D E N T I A L MADRID 000580

    SIPDIS

    DEPARTMENT FOR DAVID MCFARLAND, WHA/CCA AND FOR NICOLE
    OTALLAH, EUR/ERA

    E.O. 12958: DECL: 05/23/2017
    TAGS: ETRD ETTC PREL SP CU
    SUBJECT: SPAIN/CUBA: TITLE III OF LIBERTAD ACT

    REF: A. STATE 52541
    ¶B. 2007 MADRID 2188
    ¶C. MADRID 567

    Classified By: Acting Deputy Chief of Mission Josie Shumake, for reason
    s 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? Spain hosted a highly publicized Human Rights Dialogue
    Mechanism with Cuba on February 11. MFA Political Director
    Rafael Dezcallar told us the GOS had presented a list of
    20-30 prisoners of conscience, including Oscar Biscet, to the
    Cuban Government. Though no public linkage was made, Cuba
    subsequently released four political prisoners and allowed
    them to travel to Spain, where they arrived February 17, in
    search of medical treatment. Spanish Secretary of State for
    Latin American Affairs Trinidad Jimenez personally assured
    the new February arrivals and their families the support of
    her government. The GOS is currently considering the
    application of one prisoner, Jose Gabriel Ramon Castillo, for
    political asylum in Spain. The other three dissidents,
    Alejandro Gonzalez Raga, Pedro Pablo Alvarez and Omar Pernet
    accepted the residency permit offered by Spanish authorities.
    Pedro Pablo Alvarez Ramos was authorized Spanish residency
    May 9, and the MFA is working with the Spanish consulate in
    Miami to bring five of his family members to Spain, where
    they reportedly have offers of employment in Barcelona.

    ¶3. (C) In the wake of the human rights talks, Spanish
    officials have suggested changes on the island were
    attributable in part to the renewed dialogue. The GOS has
    subsequently attempted to convince EU partners, including
    during the May 16 EU-Latin American Summit in Lima, that the
    Spanish-Cuban dialogue has achieved results that merit
    lifting the (currently suspended) restrictive measures
    imposed by the EU against Cuba in 2003. Spanish officials
    told Cuba Transition Coordinator Caleb McCarry in April that
    Spain was reluctant to put too much pressure on the
    government of Raul Castro, and said Spain viewed
    modifications announced by Cuba as openings to democratic
    change. A Spanish diplomat reiterated to Cuban dissidents
    gathered at the Deputy Chief of Mission's residence May 21
    (ref C) the GOS view that Cuba has improved significantly
    since 2003, hinting at the position Spain is expected to take
    at June EU discussions to review the common position.
    COMMENT: Post and CTC McCarry have stressed to the Spanish
    that the elimination of the common position could legitimize
    Raul,s rule. The EU could use the overall debate, with
    Spain,s leadership, to press Cuba to take new action on
    human rights. Though we are skeptical of what an EU-GOC
    human rights dialogue would achieve if they do drop the
    measures, the Spanish claim it would achieve new movement
    from the Cubans. END COMMENT.

    ¶4. (C) Has the host country made other public statements or
    undertaken other governmental actions . . . or actions in
    support of civil society in Cuba through host country's
    diplomatic missions or other fora? The Spanish Government
    has viewed the February transfer of powers from Fidel to Raul
    Castro as generally positive. Nonetheless, then-Secretary of
    State for Foreign Affairs Bernardino Leon stated February 27
    that the GOS "does not defend a transition within the current
    Cuban regime." Also in February, Spain denied on technical
    grounds the asylum request of a Cuban diplomat defector,
    Lorenzo Menndez, who arrived in Spain from France in
    December 2007. Spanish officials and former President Aznar
    met in early March with Elsa Morejon, the wife of
    Presidential Medal of Freedom winner Oscar Biscet. Media
    reported in association with the March 19 commemoration of
    Cuba's Black Spring that Spanish President Zapatero had sent
    a letter (dated January 28) to Laura Pollan (wife of Hector
    Maseda) saying Spain would continue to do all it could to win
    the freedom of political prisoners. Zapatero also expressed
    admiration for the work of the Damas en Blanco and recognized
    their "dignity and courage." The Damas who led the annual
    march from the gates of Madrid,s Royal Palace to a
    commemorative mass in the adjacent Cathedral of the Almudena
    on March 18 read aloud President Zapatero,s letter along
    with President Bush,s statement.

    ¶5. (U) Foreign Minister Moratinos, who visited Havana in
    April 2007, included Cuba as part of Spain's foreign policy
    agenda for the current Congress when he appeared May 22
    before the body's Foreign Affairs Commission. In seeking
    consensus with opposition parties on the agenda for debate,
    Moratinos spoke in support of an open process of reform on
    the island through "mutual respect" and "constructive
    dialogue."

    ¶6. (C) Have there been any high-level diplomatic visits
    between Cuba and the host country in the past six months?
    There have been no high-level visits with the exception of
    the aforementioned human rights talks. Ricardo Guerrero
    Blanco, Cuban Vice Minister for Foreign Investment, met the
    week of May 12 with Canary Islands businessmen who attended a
    meeting in Santa Cruz de Tenerife to explore investment
    opportunities in Cuba. Guerrero said the Cuban Government
    viewed Canaries investment positively and offered Spanish
    businessmen the opportunity to invest in hotel projects in
    the regions of Camaguey and Ciego de Avila, as well as to
    build golf courses and other leisure facilities, according to
    press reports.

    ¶7. (C) What is the nature of investments (and names, if
    known) that host country businesses have in Cuba?
    Information on Spanish foreign investment in Cuba is limited,
    in part because Spanish companies avoid publishing such data.
    Spain's Ministry of Economy and Finance reports that during
    the 1995-2007 period, Spanish investment in Cuba
    amounted to roughly euros 4.7 billion (6 billion dollars).
    The ministry reports that in 2007, Spanish companies invested
    euros 4 million. The biggest Spanish investments are in the
    tobacco and tourism sectors. Nine of the twelve foreign
    companies that invest in the tourism sector in Cuba are
    Spanish. There follow below names of Spanish companies
    active in Cuba listed by sector:
    Tourism: Globalia Hoteles, Sol Melia, NH Hoteles, Marsans,
    Iberostar Group, Barcelo, Occidental, and RIU.
    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
    Airlines: Iberia
    Dairy: Penasanta, S.A.

    Note: In terms of actual money invested, the overwhelming
    majority comes from the tourism companies and the tobacco
    firm, Altadis. Repsol does some exploration work in Cuba,
    and the other companies mentioned have representative
    offices. On May 18, 2008, left-of-center daily El Pais
    reported that the Securities and Exchange Commission (SEC)
    had sent Repsol a letter asking the company about its
    investments in Cuba. Repsol reportedly responded that since
    2000, it has had permission to drill for oil in seven blocks
    situated in Cuban waters, but that so far, it had not found
    any oil.

    ¶8. (U) In April, the government of Cuba reportedly approached
    Spain about the possibility of restructuring the repayment of
    its debt, if the GOS would reinstitute export credits to
    Spanish companies to invest in sectors of the Cuban economy
    such as real estate development, road construction, and port
    modernization. Cuba's debt to Spain totals 460 million
    euros, plus an additional 400 millions euros being negotiated
    in the Paris Club and a final 300 million euros of interest,
    according to the media.

    ¶9. (C) Are there any bilateral trade agreements between host
    country and Cuba? Although not necessarily strictly "trade"
    treaties, the following agreements may be of interest:

    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), 06/09/2006 - 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 17/03/2003 - Section 1.
    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 06/10/2000 - Section 1.
    Complementary Agreement on Tourism, signed in Havana on
    September 10, 1978. See BOE 02/03/1987 - Section 1.
    Agreement between the Republic of Cuba and the Kingdom of
    Spain, signed in Madrid on October 3, 1985. See BOE
    13/02/1986.

    Note: Spain exported euros 668 million worth of goods and
    services to Cuba in 2007, up from euros 629 million in 2006.
    Spain imported good and services from Cuba worth euros 143
    million in 2007, only about three million more than in 2006.
    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. The
    strong Spanish export performance in Cuba is somewhat
    surprising as Spain's official export credit agency (CESCE)
    does not guarantee export credits to Cuba. During 2007,
    there were discussions about resuming export credit
    guarantees, but that would first require a debt agreement
    between Spain and Cuba. Thus far, Post is not aware such an
    agreement has been reached. However, on September 29, 2007
    the Spanish government did announce it would resume foreign
    assistance to Cuba. There is an active Hispano-Cuban
    Business Committee that promotes trade between the two
    countries.

    ¶10. (C) Are there any exchange programs between host country
    and Cuba? Post is not aware of any such exchange programs.
    Aguirre

`