April 27, 1998

Cuba to compensate Canada insurance company


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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