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Tuesday 23 December 2014

Cameron's silence on Cuba must be broken



From all corners of the globe the plaudits have come in for President Obama. He has been praised even by his enemies for his bold and magnanimous reversal of US policy towards Cuba. Even from within the island there is tremendous goodwill towards him. My colleague, Rafael Hernández , editor of the Havana magazine Temas, writing in today's Vanguardia newspaper in Havana says: "For the first time since Lincoln, an American President is popular in the island."

So one would have thought that Britain would have been first among those to applaud? But no. There has been a conspicuous silence from the UK and it is frankly shameful, not least because the UK is supposed to be the US's closest ally, but also because British banks have been among those most penalized most unfairly for carrying out transactions that are wholly within the law. One would have thought that HMG would be now seeking the kind of assurance that from now there will be no more victimization of our companies for dealing with Cuba. 

This letter from Lord Hutton of the Cuba Initiative in this morning's Financial Times makes the point most eloquently:   



December 22, 2014 11:42 pm

We trust UK banks will rethink their Cuba policy

Sir, The gradual normalisation of relations between the US and Cuba is to be wholeheartedly welcomed. The US embargo has not only prevented US companies from trading with Cuba but has been interpreted in such a way by the US Treasury as to have also become a significant impediment to UK companies as well.
The extraterritorial reach of US financial sanctions in particular, and the imposition of swingeing fines by the US on banks found to be in contravention of them, has meant that most British banks have been unwilling to handle UK banking transactions with Cuba in spite of the fact that under UK law they are perfectly legal and legitimate.
As the US moves to permit US institutions to hold correspondent accounts at Cuban financial institutions, and hopefully recognises that Cuba has no place on the list of state sponsors of terrorism, we trust that UK banks will rapidly reassess their policy towards supporting UK companies investing in and undertaking trade with Cuba.
The UK government has made abundantly clear that it supports engagement and increased investment and trade with Cuba. At the time of his visit last month to Havana, the Foreign Office minister Hugo Swire announced a major trade and investment mission of UK companies which I will be leading to Havana in the spring of 2015.At a time when the US is finally normalising its policy towards Cuba, it is vital that UK companies as well as banks rapidly engage so that the UK develops a strong position in Cuba and Britain’s economic interests in the region are upheld.
Lord Hutton of FurnessChairman, The Cuba Initiative


He might have added that it is vital for the UK government to bring this matter up with the White House while at the same time helping President Obama face down his enemies in Congress by giving fulsome praise for his sensible and grown up policy on Cuba.

Why is Cameron silent? Well it might possibly have something to do with the Malvinas issue with Argentina. He is facing calls to copy Obama's policy and sit down an talk about the UK's differences with Argentina. Perhaps here is an opportunity for Mr Miliband to show his mettle?

Saturday 20 December 2014

Should Cuba be on the US terror list?



One of the key policy changes announced by President Obama on 17 November was the instruction to Secretary of State John Kerry to report within six months on whether Cuba should be listed among the states that support terrorism.
The designation of Cuba as a state sponsor of terrorism has been a contentious issue from the start. The fact that Cuba has been a victim of terrorism itself and ironically from the United States, has meant that this has been a source of deep resentment in Havana. However, the hurt is more than moral. Economically too, the inclusion of Cuba on  the so-called ‘terror list’ has meant that foreign banks have been severely fined in the US for dealing with the island to the extent that they have pulled out of dealing with Cuba altogether. This has added enormously to the financial burden placed on the Cuban economy.
Thus, removing Cuba from the list would not only heal an emotional wound it would help Cuba’s economy to grow. So should Cuba be on the list? The evidence suggests that it should clearly not.

Here from USAToday is a very good explanation as to why.

Thursday 18 December 2014

The SS Embargo is holed beneath the waterline



It was a truly historic moment: The day President Obama finally deserved that Nobel Peace Prize. By making his announcement yesterday, he has put himself into the history books as the President who finally had the cojones to free the White House from the grip of that Miami crazy gang.

The crazy gang are correct in one thing and one thing only, Obama's unilateral move yesterday did provide the Cuban government with a victory. Essentially, the Cuban government only released a few prisoners, but the United States admitted that its policy towards the country for the last 53 years was a failure. For that Obama deserves huge praise. To err is human but to admit one's errors is truly divine. Obama has not only moved US policy on Cuba, he has moved United States diplomacy onto a whole new plane. Americans should rejoice that they have a leader with such a vision.

Obama has used the Presidential prerogative to make foreign policy in the national interest and by making significant changes in the way that companies and individuals will be able to engage with Cuba, and more importantly send money, visit and do business with the island, he has delivered a death blow to the whole embargo.

The best analogy was used some time ago by my colleague, Professor Phillip Brenner of American University. He said that you have to think of the embargo as ship which has holes in it. The holes are exceptions such the permission for US farmers to export food or the right of Cuban Americans to visit etc. The proponents of the embargo are like the crew keeping the ship afloat by busily blocking up holes or stopping them from getting bigger. Well, Obama's announcement yesterday just made so many holes in the ship that they will find it impossible to stop the leaks.

The SS embargo is holed below the waterline and will soon sink into beneath waves of history.

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