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Congress nears historic shift in Cuba sanctions

By Chuck Abbott
October 3, 2000
 
WASHINGTON (Reuters) - Congressional negotiators on Tuesday were poised to approve a landmark shift in four decades of U.S. policy toward Cuba, easing an embargo on exports of food and medicine to the communist nation.

Senate and House negotiators were to consider the Cuban embargo as part of talks late on Tuesday afternoon on a $75 billion agriculture spending bill.

House aides were to have a last-minute look at the language on Tuesday morning to help ensure it moved smoothly through the conference committee. "I suspect they will work this out before we meet," said one congressional source.

Supporters of the move contend the embargo against President Fidel Castro's Cuba has done little to further democracy, and that U.S. sales to Cuba's $750 million food market may be a more powerful tool for change.

The move would please American farmers and huge agribusinesses such as Archer Daniels Midland Co (ADM.N) in politically important Midwestern states.

But the influential Cuban-American community, which wields clout in Florida politics, has fought any change in the embargo, insisting that Castro must first adopt economic and political reforms.

Republican leaders the House and Senate have responded coolly to any easing in sanctions. They agreed to it only under duress earlier this year when a clear majority of members in both chambers threatened a public challenge.

LOTT SEES ADOPTION

U.S. economic sanctions were imposed on Havana in the early 1960s as Cuba accepted Soviet assistance. But aided by the saga earlier this year of child shipwreck survivor Elian Gonzalez, legislative momentum has shifted toward a potentially historic easing of the embargo.

For a change in the embargo to become law, it must be accepted by congressional negotiators, passed by both chambers in Congress and signed by President Clinton.

Senate Majority Leader Trent Lott said he was confident that the Cuba provision would be adopted.

"A reasonable compromise has been worked out and will not delay the bill any further," Lott said, referring to negotiations between House and Senate leaders. "I assume that senators and House members from farm states are reviewing that and will be comfortable with it."

Under language favored by House Republican leaders, food and medicine would be exempt from unilateral U.S. embargoes, a change aimed at Cuba but also benefiting Libya, Iran, Sudan and North Korea, where sales are allowed on a case-by-case basis.

However, no public or private U.S. financing would be allowed for food sales to Cuba, although

U.S. banks could act as intermediaries in deals arranged by foreign banks. Similar rules are in place regarding sales to Iran.

DISAGREEMENT ON TRAVEL RESTRICTIONS

One of the knotty issues remaining to be resolved is agreement on U.S. travel restrictions to the island just 90 miles (144 km) off the U.S. coast.

Republican leaders in the House want to write the current set of travel restrictions into law while creating a new category of permitted travel, for people pursuing agricultural sales. Some senators, however, prefer to simply let the travel restrictions die.

North Dakota Democratic Sen. Byron Dorgan intends to ask for a vote on language allowing U.S. banks to finance food sales and making no change in travel rules, an aide said.
Farm groups have said they prefer an approach like that.

While the Cuba provision has become a rallying cry for many farm state lawmakers, experts cautioned that there is no bonanza for U.S. exporters in the short-term.

Some consultants have estimated U.S. food sales to Cuba may be lucky to muster $25 million, if U.S. financing is denied to exporters. Before the embargo, Cuba was the single biggest buyer of U.S. rice exports.

Havana has little cash available, and the Castro government may favor its long-time suppliers over U.S. companies, according to industry analysts.