CUBA NEWS
December 16, 2003

CUBA NEWS
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U.S. Food Producers to Work With Cuba

By ANITA SNOW, Associated Press writer

HAVANA, 15 - American food producers pushed ahead on new trade with communist Cuba on Monday, signing the first contracts in three days of negotiations expected to result in as much as $130 million in new sales.

Scores of farmers, port operators and supermarket representatives from around the United States watched Monday morning as Pedro Alvarez, head of the Cuban import company, Alimport, signed contracts to buy $4.7 million in rice from Riceland Foods Inc. of Stuttgart, Ark.

Later, Alvarez signed contracts for Cuba to buy $700,000 in peas and lentils from PS International Ltd., of Chapel Hill, N.C., and $600,000 in chicken leg quarters from Gold Kist of Atlanta.

"How times have changed!" Alvarez said, noting that just two years ago there was no trade at all between the two countries, which have been without diplomatic ties for more than four decades.

Since Cuba took advantage of an exception to the U.S. trade embargo allowing the direct, commercial sales of American farm products to the island it has contracted to buy more than $500 million in goods, according to Alvarez.

Many more contracts were expected through the end of Wednesday as representatives of 147 firms from 29 states, Washington and Puerto Rico mark the second anniversary of the first U.S. commercial food shipments to post-revolutionary Cuba.

Among the companies participating were Cargill Inc., of Minnetonka, Minn.; Archer Daniels Midland of Decatur, Ill.; FC Stone of Des Moines, Iowa; Kaehler's Homedale Farms in St. Charles, Minn. Also on hand were representatives of Carolina Turkey, of Mount Olive, North Carolina, and Crowley Liner Services of Jacksonville, Fla., which has transported about 70 percent of the American food sold to Cuba over two years.

Many deals evidently were worked out ahead of time.

FC Stone, which represents 750 grain cooperatives throughout the United States, last week received an advance order for nearly $7 million worth of corn. Company representative Chris Aberle, who was traveling to Havana later Monday, said in a weekend telephone interview from the United States the contract was expected to be signed later in the week.

Interest by American food companies in doing business with Cuba has grown despite a tightening of restrictions on the island by the U.S. government, including stepped-up enforcement of rules on American travel.

Many of the farm representatives at this week's gathering favor an end to U.S. restrictions on trade with and American travel to the island.

"The answer to our differences is communication, not isolation," Iowa Agriculture Secretary Patty Judge told the gathering. "We should be tearing barriers down, not building barriers."

Judge also called for two-way trade between the two nations. "Cuban products must be allowed into my country," she said.

Cuba first used the law in late 2001 to replenish its food reserves after Hurricane Michelle caused wide damage across the country. It previously had balked at using the law, protesting its restrictions on American financing for the sales.

The first shipment, $300,000 worth of chicken parts, sailed into Havana Bay from Gulfport, Miss., on Dec. 16, 2001.

Because the law prohibits U.S. financing for the transactions, the Cuban funds generally are shipped through European banks.

Cuban officials have said those roundabout funding transactions have cost the island at least $10 million because of bank fees and fluctuating foreign exchange rates.

Hearings Begin in Cuba Travel Ban Case

By JEANNINE AVERSA, Associated Press Writer

WASHINGTON, 15 - Vacationing in Mexico in 1999, Frederick Burks could not resist hopping a cheap flight to Cuba for a spur-of-the-moment visit, an excursion that led to accusations by U.S. authorities that he had illegally traveled to the country.

Now, after years of waiting, Burks faces a judicial hearing, though he doesn't know exactly when.

"I'm getting tired of all this stuff," said Burks, 45, of Berkeley, Calif., who contends his trip to Cuba was an honest mistake. "I broke some regulation I didn't know was there."

Eleven years after Congress authorized civil hearings for anyone alleged to have violated the Cuba travel ban, the Treasury Department's Office of Foreign Assets Control has installed three administrative law judges to hear the cases. Budget problems and the Sept. 11, 2001, attacks have been cited by officials for the delay in starting the hearings.

Burks said he requested a hearing in 2001, the same year he was notified by the government that he was facing a proposed penalty of $7,590 for alleged violations of the Cuba embargo. "I thought, 'Oh, boy. This is getting serious,'" he said.

Burks, who works as an interpreter, still does not have a hearing date.

The Treasury office has begun action for 90 people who had requested hearings, Treasury spokesman Tara Bradshaw said.

Of those cases, 37 people have settled with the government, 27 cases have been referred to administrative law judges and the remaining 26 are in various stages of the process, Bradshaw said.

President Bush has ordered that the travel ban be enforced more vigorously.

Both the Republican-led House and Senate voted to end it, but congressional negotiators stripped that provision out of a compromise measure to finance the Transportation and Treasury departments for the federal budget year that began Oct. 1. The White House had threatened to veto legislation that would have weakened the travel ban.

Under current rules, most travel to Cuba is forbidden. There are exceptions that cover working journalists, relatives of Cuban citizens, providers of humanitarian aid and others.

Americans accused of traveling illegally to Cuba have several options: pay a fine assessed by the government, which typically ranges from $3,000 to $7,500; negotiate a lower payment; or request a civil hearing.

Nancy Chang, a lawyer for the New York-based Center for Constitutional Rights, which has advocated an end to the travel restrictions, said she has clients who have been accused of illegal travel and have been waiting for hearings since 1998.

"The delay harms people's ability to present a case. Documents may be destroyed. Memories may fade," Chang said.

President Kennedy imposed the penalties against Cuba in 1963 during the Cold War. The basic goal is to isolate the Cuban government economically and deprive it of U.S. dollars, the government says.

On the Net:

Office of Foreign Assets Control: http://www.treas.gov/offices/eotffc/ofac/

Canada loses to Cuba in opening game of women's volleyball qualifier

SANTO DOMINGO, Dominican Republic, 15 (CP) - World powerhouse Cuba defeated the Canadian women's volleyball team in the opening match of the 2003 NORCECA Zone Olympic qualifying tournament Monday.

Cuba, ranked No. 6 in the world, defeated the 20th-ranked Canadians 3-1, in scores of 25-18, 25-14, 24-26 and 25-19. Barb Bellini of White Rock, B.C., led the young Canadian side with 17 points while Sarah Pavan of Kitchener, Ont., added 10 points.

"Considering we only had five players that have ever played against Cuba before, this was a good start for us," said Canadian head coach Lorne Sawula. "We proved to ourselves that we can play well with the most powerful team here, and we still have a lot more in us."

Canada will play No. 14-ranked Dominican Republic, the 2003 Pan Am Games champion, on Tuesday.

The NORCECA tournament is the Canadian women's only chance to qualify for the 2004 Athens Olympics, and only the winning team earns a berth.

Canada is also up against No. 17-ranked Puerto Rico and Mexico, ranked 35th.



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