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### Viewing cable 08MADRID1299, SPAIN/CUBA: TITLE III OF LIBERTAD ACT

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
08MADRID1299 | 2008-12-11 12:12 | 2010-12-17 21:09 | CONFIDENTIAL | Embassy Madrid

`

    VZCZCXYZ0000
    PP RUEHWEB

    DE RUEHMD #1299/01 3461221
    ZNY CCCCC ZZH
    P 111221Z DEC 08
    FM AMEMBASSY MADRID
    TO SECSTATE WASHDC PRIORITY 5753

` `

    C O N F I D E N T I A L MADRID 001299

    SIPDIS

    FOR DAVID MCFARLAND, WHA/CCA
    EUR/WE FOR STACIE ZERDECKI

    E.O. 12958: DECL: 12/10/2018
    TAGS: ETRD ETTC PREL SP CU
    SUBJECT: SPAIN/CUBA: TITLE III OF LIBERTAD ACT

    REF: A. STATE 126578
    ¶B. MADRID 580
    ¶C. 2007 MADRID 2188

    Classified By: DCM Arnold A. Chacon, 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 reftels B and C.

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

    Spain played a leadership role in lifting EU sanctions
    and in re-starting the EU-Cuba dialogue on human rights, and
    subsequently claimed credit for what the GOS assessed to be
    successful talks and improved conditions in Cuba.

    Of the four former prisoners of conscience who arrived
    in Spain for medical treatment in February 2008 (ref B and
    previous), three were granted Spanish residency and the
    fourth was granted political asylum. Pedro Pablo Alvarez
    Ramos lives and works in Barcelona and awaits fulfillment of
    the GOS promise to bring five of his seven family members
    from Miami to live in Spain. Omar Pernet, who participated
    in President Bush's prisoner of conscience event on the
    margins of the UNGA in September in New York, and Alejandro
    Gonzalez Raga are in Madrid as is the fourth, blogger Jose
    Gabriel Ramon Castillo, who was granted political asylum.
    Spain agreed in June 2008 to resettle up to 10 Cuban migrants
    from those currently protected at Guantanamo. To date, Post
    continues to work with PRM and EUR/WE to solidify terms of
    reference for the proposed resettlement.

    Spanish opposition Partido Popular (PP) accused Foreign
    Minister Moratinos of playing the role of "Castro's Godfather
    in Europe" after Spain led the EU in lifting restrictive
    measures against Cuba in June 2008. During his Senate
    appearance on June 25, FM Moratinos defended the EU's action
    by praising economic and social reforms in Cuba, as well as
    the opening of political debate on the Island. Describing
    Raul Castro's agricultural reform and looser restrictions on
    internet use as "fundamental and revolutionary," Moratinos
    nonetheless reiterated the EU's demand that Cuba release all
    political prisoners and reminded the Senate that, while there
    were about 330 political prisoners in 2003, the number had
    decreased to 243 in 2008, a number he then said was "still
    too many." Foreign Minister Moratinos told the Spanish
    Senate on June 26 that the Vatican had encouraged other
    European countries to support the lifting of sanctions on
    Cuba, and that the Catholic Church had told the GOS that it
    considered the (Spanish) policy toward the Island to be the
    appropriate one (literally: &adecuado,8 or adequate). The
    Minister noted that if the EU decided in a year "for any
    reason" to end the dialogue (with Cuba), the people who would
    be harmed were (the dissidents), not the more immovable
    sectors of the Island."

    Confidential guidance for Spanish ambassadors leaked to
    the press following a September 8-11 chiefs of mission
    conference
    stated that Spain did not see the recent lifting of EU
    sanctions on Cuba as compensation for Havana's recent
    &modest but irrelevant8 internal reforms,
    but rather as a way to establish a process of dialogue
    between the EU and Cuba. The dossier stressed that the
    lifting of the sanctions was not an end unto itself. Spanish
    daily El Tiempo added that the first EU-Cuban dialogue would
    take place in New York City on the margins of UNGA.
    In terms of what the MFA expects Havana to have accomplished
    by the time the EU and Cuba meet to evaluate Havana's human
    rights progress, the MFA report states,
    &Obviously it is not realistic to think that the Cuban
    Government is going to free all of its political prisoners
    between now and June 2009.8

    Spanish officials played a leadership role in
    formalizing the EU-Cuba political dialogue, including helping
    Cuban FM Perez Roque prepare for October 16 meetings in
    Brussels.

    The Council of Ministers approved October 31 the
    "Historic Memory Law" granting Spanish nationality to the
    grandchildren of Spaniards who lost or forfeited Spanish
    nationality due to exile, and the legislation was close to
    implementation as of December 2008. Havana's Spanish Consul
    Pablo Barrios anticipates that the consulate will receive as
    many as 77,000 requests for citizenship a year in the first 3
    years, which could result in as many as 120,000 Cubans
    receiving Spanish citizenship, according to press reports.
    Other Embassy contacts estimate that 100,000 persons in Cuba
    and Venezuela could have claim to Spanish citizenship under
    the law. The Spanish consulate in Havana reportedly will add
    to its current staff of 50 another 35 employees to address
    the workload.

    ¶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?

    Career diplomat Manuel Cacho was appointed October 17
    as Spain's Ambassador to Cuba. Cacho replaced the
    controversial Spanish Ambassador Carlos &Charlie8 Alonso
    Zaldivar, highly criticized by dissident groups and human
    rights activists in Spain. A lawyer who had served since May
    2005 as the Spanish MFA's Director General for External
    Communications, Cacho served previously as Ambassador to
    Syria and Nigeria and as Consul General in Jerusalem.

    In the lead up to the early November Iberoamerican
    Summit in San Salvador, MFA Secretary of State for
    Iberoamerican Affairs Trinidad Jimenez told left-of-center El
    Pais on October 31 that it was unreasonable to expect that
    Cuba, after 50 years of the Castro regime, could change in a
    few months. She said her goal continued to be renewed
    dialogue, with Cuban citizens as the protagonists.

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

    The Cuban Minister of Commerce visited the Zaragoza
    Water Expo during "Cuba Day" on August 8.

    Cuban Foreign Minister Perez Roque visited Spain the
    week of October 14; had an audience with King
    Juan Carlos I; and met with met with PSOE officials Jose
    Blanco, Leire Pajin and Elena Valenciano; VP Fernandez de la
    Vega; and FM Moratinos.
    During a joint press conference, FM Moratinos announced that
    Spain would give Cuba 24.5 million euros to rebuild the areas
    affected by the
    hurricanes and that the GOS would consider Cuba's request to
    restructure Cuba's commercial debt. According to the media,
    Cuba's debt to Spain
    amounts to 1.88 billion euros. The GOC has requested that
    Spain forgive half and renegotiate the other half. The GOS
    also offered Cuba
    a line of short-term credit of between 50-100 million euros.
    Secretary of State for International Cooperation Soraya
    Rodriguez traveled to Cuba on October 17 to assess the
    development assistance situation, and a Cuban delegation came
    to
    Spain the next week to meet with Ministry of the Economy
    officials regarding details of the debt and credit line.
    Moratinos also announced that Spanish and Cuban
    representatives would meet for the third time in Havana the
    second week of January 2009 to discuss and assess human
    rights in Cuba. FM Moratinos opined that the roadmap
    established by Spain and Cuba "moves forward satisfactorily."
    Shortly after FM Moratinos announced that President Zapatero
    had accepted Raul Castro's invitation to visit Cuba in 2009
    and that the exact date would be determined through
    diplomatic channels. President Zapatero said, however, that
    he had not yet decided whether or not he would travel to
    Cuba. "The proposal is there; the project is there, and we
    will see at the right time if it is carried out and how it is
    carried out," the President said.

    Spanish Secretary of State for Latin American Affairs
    Trinidad Jimenez told Spanish National Radio (RNE) on October
    21 that, given the changes that have taken place in Cuba, she
    thought that a visit from the Spanish President would happen
    during the current Spanish Congress. Emphasizing that most
    Latin American Presidents and even former Spanish President
    Aznar have visited Cuba, Jimenez stated it was a matter of
    finding the right moment for such a visit. Further, on what
    she called the verge of a political dialogue between Havana
    and the European Union, Jimenez insisted it "would not be
    understood" were Zapatero not to travel to the island in the
    near future.

    While in Madrid, FM Perez Roque confirmed his October
    16 meeting with an EU delegation to formalize the beginning
    of an EU-Cuban dialogue and called for the elimination of the
    EU common position on Cuba. FM Moratinos said the GOS
    supported replacement of the "common position," renewed
    annually, with a "cooperation agreement" between Havana and
    the EU-27.
    PSOE Vice Secretary General Jose Blanco traveled to
    Cuba November 6 to encourage Spanish businessmen to continue
    working in Cuba. Blanco met with Cuban FM Perez Roque, Cuban
    Communist Party Director of International Relations Fernando
    Ramirez, and First Vice President Jose Ramon Machado Ventura
    -- even though prior to his planned travel to the Democratic
    Party electoral party in Washington, PSOE sources had said no
    meetings with Cuban authorities or dissidents were planned.
    Blanco's official program included a dinner with 500 Spanish
    businessmen, visits to Spanish cooperation centers, and a
    meeting with the Archbishop of Havana.

    ¶5. (C) Did the host country offer or deliver humanitarian or
    other assistance to the Cuban people in the wake of the major
    damage caused by Hurricanes Gustav (August 30) and Ike
    (September 8)?

    Spain announced August 21 that it would offer
    humanitarian aid to the authorities of countries affected by
    Tropical Storm Fay, including the Dominican Republic, Haiti
    and Cuba. The aid was to be expedited through the Spanish
    Agency for International Development (AECID) through its
    Humanitarian Logistic Center located in Panama.

    The Spanish Development Agency planned to send planes
    September 5 and 6 to Haiti and to the people of Pinar del
    Rio, Cuba, carrying humanitarian supplies for those affected
    by the hurricanes. Spain delivered 21 tons worth of
    humanitarian aid ) including food, tents, and water
    sanitation equipment ) by plane on September 16. Cuba
    accepted offers of assistance from Spain and Belgium, the
    only two EU countries with normalized relations. The Spanish
    press reported the Cuban government's request that the United
    States lift sanctions for the next six months, along with
    Commerce Secretary Gutierrez's assistance offer.

    The European Commission and Cuba agreed October 23 to
    resume cooperation and issued a joint declaration
    establishing a guiding development framework. The EU may
    allocate between 20 and 25 million euros to areas for
    potential cooperation including the environment, science and
    technology, commerce, cultural exchanges, and training to
    manage natural disasters. The EU planned separately to
    contribute an additional two million euros for reconstruction
    in the wake of Hurricanes Ike and Gustav.

    Secretary of State for International Cooperation Soraya
    Rodriguez and Spanish Agency for International Development
    Cooperation (AECID) Director Juan Pablo de Laiglesia went to
    Cuba in October to work out the details of additional
    hurricane assistance. The GOS delegation met with Cuban FM
    Perez Roque and Communist Party officials as well as NGOs and
    Spanish partners. Rodriguez and Cuban Vice Minister of
    Foreign Investment and Economic Cooperation Ricardo Guerrero
    agreed on a three-part plan that acknowledged the 488,000
    Euros in humanitarian assistance provided by Spain in
    September and October; provided shelter to those who have
    lost their homes (at a cost of 2.27 million Euros); and
    repaired damaged infrastructure (21.7 million Euros).

    ¶6. (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. Figures for 2008
    are not yet available. Spain is 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. Nine of the twelve foreign
    companies that invest in Cuba's tourism sector are Spanish.

    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.

    Airlines: Iberia

    Dairy: Penasanta, S.A.

    Note: In terms of actual money invested, the overwhelming
    majority comes from the tourism companies and the erstwhile
    Spanish tobacco firm, Altadis. Repsol does some exploration
    work in Cuba, and the other companies mentioned have
    representative offices.

    Spain was one of the countries with the largest participation
    in the November 2008 Havana Trade Fair; however, post does
    not have a list of participating companies.

    ¶7. (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 euros 668 million worth of goods and services
    to Cuba in 2007, up from 629 million euros in 2006. Spain's
    exports to Cuba between January and September 2008 totaled
    560 million euros. Spain imported goods and services from
    Cuba worth 143 million euros in 2007, only about three
    million more than in 2006. Spain imported an additional
    108.7 million euros worth of goods and services between
    January and September 2008. 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. There is an active
    Hispano-Cuban Business Committee that promotes trade between
    the two countries.

    ¶8. (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.
    AGUIRRE

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