By Pascal Fletcher in Havana. Financial Times. Published: June 15 2000 22:18GMT | Last Updated: June 16 2000 02:45GMT
A new UK company comprising the former commodities division of ED&F Man, which halted direct business with Cuba in 1996 to avoid possible US sanctions, is hoping to resume direct sugar purchases.
"We would like to return to purchasing Cuban sugar directly," said Rafael Muguiro, director of the new London-based private company formed through a management buy-out of its agricultural business.
Mr Muguiro, who had headed Man's sugar operations, and Michael Stone, group chairman, visited communist-ruled Cuba this week to meet officials.
Mr Muguiro said current initiatives in the US Congress to ease restrictions on US food sales to Cuba would, if successful, open the way for Man's traditional US competitors, such as Cargill, to conduct direct business with Cuba. "If there is an opening, you can sure that we will also be
there," Mr Muguiro added.
ED&F Man had previously been helping to finance the Cuban sugar crop. But the 1996 US Helms-Burton law threatened sanctions against foreign investors who "trafficked" in expropriated, formerly US-owned properties in Cuba, including sugar mills.
The company announced then it was "complying" with the US legislation and halted direct financing and trade operations in Cuba using the Man name. A new Paris-based company, Pacol, which included ex-Man personnel, started operating out of the same Havana offices after 1996, taking over
Man's operations.
The talks in Cuba included discussions about an outstanding sugar-related debt owed by Cuba to E D&F Man.
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