OTTAWA
(Reuters) - Cuba has agreed to pay Canada's Confederation Life insurance company
C$12 million compensation for assets seized and accounts frozen after the 1959
Cuban revolution, Canadian officials said Sunday.
Just before Canadian Prime Minister Jean Chretien left Ottawa Sunday by jet
for a 48-hour visit to Cuba, Canadian officials confirmed that the Cuban
government had agreed to the compensation, which took 14 years to negotiate.
The official announcement on the agreement was expected to be made Monday in
Havana, where Chretien was to meet with Cuban President Fidel Castro.
Confederation Life is in liquidation, so the Cuban funds will likely go to
its creditors. Four other Canadian companies -- Sun Life Assurance, Crown Life
Insurance, Manulife Financial and Imperial Life Assurance -- also have claims
against the Cuban government over assets seized.
Confederation's claim was settled ahead of the others because of the need to
repay its creditors, the Canadian officials said.
Canada and Cuba are in discussions on a bilateral Foreign Investment
Protection Agreement. Canada had stipulated that the insurance companies' claims
be settled before proceeding with the investment pact.
($1-$1.43 Canadian)
REUTERS
15:47 04-26-98
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