British-US tensions over Cuba trade ban
By Chris Brogan
LONDON — The British government is refusing to cooperate with US attempts to tighten the economic embargo against Cuba.
Officials from the Department of Trade and Industry (DTI) claim that contingency plans have already been drawn up to counter plans by the US authorities to extend the 30-year US trade embargo against Cuba to subsidiaries of US companies in third countries.
Under the Mack Amendment bill, which has yet to be passed, the US Treasury Department will no longer be permitted to issue licences allowing US subsidiaries in third countries to trade with Cuba.
If that is implemented, a DTI official told me, legislative action will be taken by the British government to nullify the impact of the new regulations on US subsidiaries in Britain. The US parent company will be in a position to argue that the matter is out of its hands since British law specifically requires that its subsidiary ignore US legislation regarding Cuba.
The British government's long-standing belief is that "US subsidiaries in Britain are British companies. Therefore, we have nothing against them trading with Cuba." On the contrary, said the spokesperson, "Our policy is to encourage British firms to trade with Cuba".
A succession of British companies have visited Cuba over the last 12 months, but the firms have carefully sought to avoid all publicity, with mission organisers anxious to protect the anonymity of participating companies.
This followed rumours that US officials had sought to dissuade British companies from investing in Cuba. According to the DTI official, the US authorities are known to have advised a number of British companies with operations in the United States to "carefully consider their position in the US" before establishing commercial links with Cuba.
Such action represented "unwarranted interference" in the legitimate trading activities of British companies, said the official.
The most promising areas for British involvement in the island's restructuring program include management advice, joint venture projects, the provision of capital and the possible utilisation of Cuba's outstanding commercial debt with Britain, unofficially estimated at £60 million.
Cuba has expressed particular interest in joint ventures and investment in tourism, biotechnology, the extractive industries, power , port operations and shipping, and the upgrading of airplanes, airports and airport facilities.
British exports to Cuba in the first six months of the year were up 34% on the same period last year, to £17.6 million. [From Inter Press Service/Pegasus.]