Monday, 16 July, 2001, 20:44 GMT 21:44 UK.
BBC News Online
The law could damage Cuba's weak economy
President George W Bush plans to suspend for six more months a controversial
law which could punish foreigners doing business in Cuba.
The decision was welcome news for the European Union, several of whose
members have investments on the island which could be threatened if the law
comes into effect.
The legislation is part of the 1996 Helms-Burton law, sponsored by two
Republican senators known for their hawkishness towards Cuba.
If brought into force, the law would allow US companies and Cuban-born US
citizens to sue anybody who acquired property taken from them when Fidel Castro
came to power.
The US president has the right to suspend the law for six month periods, a
right former President Bill Clinton exercised 10 times.
This is the first time President Bush has had to decide. Analysts were
watching the decision closely to see if it signalled any shift in US policy.
Asked if he planned to suspend the relevant part of the law, Mr Bush told
reporters: "I do."
Decision expected
President Bush's decision had been expected, especially after he last week
unveiled new measures to tighten the US economic sanctions regime against Cuba.
He said he would tighten restrictions on travel to Cuba and enforce limits
on the money individuals can send to relatives there.
Experts said those measures were an attempt to stave off criticism by
Cuban-Americans of the decision to issue another six month suspension.
The state of Florida, which ultimately handed Mr Bush the presidency and
which is governed by his brother Jeb, is home to nearly one million
Cuban-Americans, most of them staunchly anti-Castro. | 
