Text: H.R.4168 — 102nd Congress (1991-1992)All Information (Except Text)

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HR 4168 SC
102d CONGRESS
2d Session
 H. R. 4168
To promote a peaceful transition to democracy in Cuba through the application
of appropriate pressures on the Cuban Government and support for the Cuban
people.
IN THE HOUSE OF REPRESENTATIVES
February 5, 1992
Mr. TORRICELLI (for himself, Mr. FASCELL, Mr. GUARINI, Mr. LAGOMARSINO,
Ms. ROS-LEHTINEN, Mr. MCCURDY, Mr. SMITH of Florida, Mr. SOLARZ,
Mr. RICHARDSON, Mr. ENGEL, Mr. BURTON of Indiana, and Mr. GOSS) introduced
the following bill; which was referred jointly to the Committees on Foreign
Affairs, Ways and Means, Post Office and Civil Service, Energy and Commerce,
Banking, Finance and Urban Affairs, and Merchant Marine and Fisheries
April 30, 1992
Additional sponsors: Mr. SHAW, Mr. BACCHUS, Mr. LANTOS, Mr. ROHRABACHER,
and Mr. Shays
A BILL
To promote a peaceful transition to democracy in Cuba through the application
of appropriate pressures on the Cuban Government and support for the Cuban
people.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
SECTION 1. SHORT TITLE.
  This Act may be cited as the `Cuban Democracy Act of 1992'.
SEC. 2. FINDINGS.
  The Congress makes the following findings:
  (1) The government of Fidel Castro has demonstrated consistent disregard
  for internationally accepted standards of human rights and for democratic
  values. It restricts the Cuban people's exercise of freedom of speech,
  press, assembly, and other rights recognized by the Universal Declaration
  of Human Rights adopted by the General Assembly of the United Nations on
  December 10, 1948. It has refused to admit into Cuba the United Nations
  human rights representative appointed to investigate human rights violations
  on the island.
  (2) The Cuban people have demonstrated their yearning for freedom and their
  increasing opposition to the Castro government by risking their lives in
  organizing dissident activities on the island and by undertaking hazardous
  flights for freedom to the United States and other countries.
  (3) The Castro government maintains a military-dominated economy that
  has decreased the well-being of the Cuban people in order to enable the
  government to engage in military interventions and subversive activities
  throughout the world and, especially, in the Western Hemisphere. These
  have included involvement in narcotics trafficking and support for the
  FMLN guerrillas in El Salvador.
  (4) There is no sign that the Castro regime is prepared to make any
  significant concessions to democracy or to undertake any form of democratic
  opening. Efforts to suppress dissent through intimidation, imprisonment,
  and exile have accelerated since the political changes that have occurred
  in the former Soviet Union and Eastern Europe.
  (5) Events in the former Soviet Union and Eastern Europe have dramatically
  reduced Cuba's external support and threaten Cuba's food and oil supplies.
  (6) The fall of communism in the former Soviet Union and Eastern Europe,
  the now universal recognition in Latin America and the Caribbean that Cuba
  provides a failed model of government and development, and the evident
  inability of Cuba's economy to survive current trends, provide the United
  States and the democratic community with an unprecedented opportunity to
  promote a peaceful transition to democracy in Cuba.
  (7) However, Castro's intransigence increases the likelihood that there
  could be a collapse of the Cuban economy, social upheaval, or widespread
  suffering. The recently concluded Cuban Communist Party Congress has
  underscored Castro's unwillingness to respond positively to increasing
  pressures for reform either from within the party or without.
  (8) The United States cooperated with its European and other allies
  to assist the difficult transitions from Communist regimes in Eastern
  Europe. Therefore, it is appropriate for those allies to cooperate with
  United States policy to promote a peaceful transition in Cuba.
SEC. 3. STATEMENT OF POLICY.
  It should be the policy of the United States--
  (1) to seek a peaceful transition to democracy and economic prosperity
  in Cuba through the careful and sophisticated application of sanctions
  directed at the Castro government and support for the Cuban people;
  (2) to seek the cooperation of other democratic countries in this policy;
  (3) to make clear to other countries that, in determining its relations
  with them, the United States will take into account their willingness to
  cooperate in such a policy;
  (4) to make assistance to the Commonwealth of Independent States or any
  of its republics conditional on the termination of military and technical
  assistance, subsidies, and other forms of assistance to Cuba from such
  Commonwealth or such republic, as the case may be;
  (5) to continue vigorously to oppose the human rights violations of the
  Castro regime;
  (6) to maintain sanctions on the Castro regime so long as it continues to
  refuse to move toward democratization and greater respect for human rights;
  (7) to be prepared to reduce the sanctions in carefully calibrated ways
  in response to positive developments in Cuba;
  (8) to encourage free and fair elections to determine Cuba's political
  future;
  (9) to prevent Cuba from evading the United States embargo of that country
  through a North American Free Trade Agreement;
  (10) to withhold nondiscriminatory (most-favored-nation) treatment from
  the People's Republic of China until the President has certified that the
  government of that country has made significant progress in reducing that
  country's assistance to Cuba, whether such assistance is provided in the form
  of subsidized trade, management of trade balances, or in any other form; and
  (11) to initiate immediately the development of a comprehensive United
  States policy toward Cuba in a post-Castro era.
SEC. 4. INTERNATIONAL COOPERATION.
  (a) MAJOR CUBAN TRADING PARTNERS- The President shall direct the United
  States Trade Representative to enter into negotiations with the governments
  of countries that conduct trade with Cuba for the purpose of securing the
  agreement of such countries to restrict their trade and credit relations
  with Cuba in a manner consistent with United States policy and the purposes
  of this Act.
  (b) SANCTIONS AGAINST COUNTRIES ASSISTING CUBA-
  (1) SANCTIONS- In the case of any country that provides assistance to Cuba--
  (A) the government of such country shall not receive assistance under
  the Foreign Assistance Act of 1961 or assistance under the Arms Export
  Control Act;
  (B) the United States shall not enter into any agreement with such country
  to establish free trade areas;
  (C) such country shall not be an eligible country under the Enterprise
  for the Americas Initiative; and
  (D) such country shall not be eligible, under any other program, for
  forgiveness or reduction of debt owed to the United States Government.
  (2) DEFINITION OF ASSISTANCE- For purposes of paragraph (1), `assistance
  to Cuba'--
  (A) means assistance to or for the benefit of the Government of Cuba that
  is provided by grant, concessional sale, guaranty, or insurance, or by
  any other means on terms more favorable than that generally available
  in the applicable market, whether in the form of a loan, lease, credit,
  or otherwise, and such term includes subsidies for exports to Cuba and
  favorable tariff treatment of articles that are the growth, product,
  or manufacture of Cuba; and
  (B) does not include--
  (i) donations of food to Cuba through international organizations, or
  (ii) exports to Cuba of medicines that would be permitted under section 5(c)
  of this Act.
  (3) APPLICABILITY OF SECTION- This section, and any sanctions imposed
  pursuant to this section, shall cease to apply at such time as the President
  makes and reports to the Congress a determination under section 8.
SEC. 5. SUPPORT FOR THE CUBAN PEOPLE.
  (a) PROVISIONS OF LAW AFFECTED- The provisions of this section apply
  notwithstanding any other provision of law, including section 620(a) of
  the Foreign Assistance Act of 1961, and notwithstanding the exercise of
  authorities, before the enactment of this Act, under section 5(b) of the
  Trading With the Enemy Act, the International Emergency Economic Powers Act,
  or the Export Administration Act of 1979.
  (b) DONATIONS OF FOOD- Nothing in this or any other Act shall prohibit
  donations of food to Cuba through international organizations.
  (c) EXPORT OF MEDICINES- The export to Cuba of medicines for humanitarian
  purposes and only for the use and benefit of the Cuban people shall not be
  restricted except to the extent authorized by section 5(m) of the Export
  Administration Act of 1979.
  (d) TELECOMMUNICATIONS SERVICES AND FACILITIES-
  (1) TELECOMMUNICATIONS SERVICES- Telecommunications services between the
  United States and Cuba shall be permitted.
  (2) TELECOMMUNICATIONS FACILITIES- Telecommunications facilities, including
  cable and satellite facilities, are authorized in such quantity and of
  such quality as may be necessary to provide the services permitted under
  paragraph (1).
  (3) LICENSING OF PAYMENTS TO CUBA- (A) The President shall provide for the
  issuance of licenses for the full or partial payment to Cuba of amounts due
  Cuba as a result of the provision of telecommunications services authorized
  by this subsection, taking into account the United States public interest
  and the purposes of this Act.
  (B) If only partial payments are made to Cuba under subparagraph (A), the
  amounts withheld from Cuba shall be deposited in an account in a banking
  institution in the United States. Such account shall be blocked in the
  same manner as any other account containing funds in which Cuba has any
  interest, pursuant to regulations issued under section 5(b) of the Trading
  With the Enemy Act.
  (4) AUTHORITY OF FEDERAL COMMUNICATIONS COMMISSION- Nothing in this
  subsection shall be construed to supersede the authority of the Federal
  Communications Commission to issue such licenses and authorizations for
  the provision of services or acquisition of facilities as may be required
  under the Communications Act of 1934.
  (e) DIRECT MAIL DELIVERY TO CUBA- The United States Postal Service shall
  take such actions as are necessary to provide direct mail service to and
  from Cuba, including, in the absence of common carrier service between
  the 2 countries, the use of charter service providers.
  (f) ASSISTANCE TO SUPPORT DEMOCRACY IN CUBA- The President may provide
  assistance, through appropriate nongovernmental organizations, for the
  support of individuals and organizations to promote nonviolent democratic
  change in Cuba.
SEC. 6. SANCTIONS.
  (a) PROHIBITION ON CERTAIN TRANSACTIONS BETWEEN CERTAIN UNITED STATES
  FIRMS AND CUBA-
  (1) PROHIBITION- Notwithstanding any other provision of law, no license
  may be issued for any transaction described in section 515.559 of title 31,
  Code of Federal Regulations, as in effect on July 1, 1989.
  (2) APPLICABILITY TO EXISTING CONTRACTS- Paragraph (1) shall not affect
  any contract entered into before the date of the enactment of this Act.
  (b) PROHIBITION RELATING TO TAX DEDUCTIONS-
  (1) PROHIBITION- A domestic concern may not receive a tax deduction for
  that portion of the otherwise deductible expenses of such domestic concern,
  or of a foreign subsidiary or affiliate of such domestic concern, which
  is allocated or apportioned to income derived from Cuba. For purposes of
  this subsection, income paid through one or more entities shall be treated
  as derived from Cuba if such income was, without regard to such entities,
  derived from Cuba.
  (2) DEFINITION- For purposes of this subsection, a `foreign subsidiary
  or affiliate' of a domestic concern is a partnership, corporation, or
  other enterprise organized under the laws of a foreign country which is
  controlled in fact by such domestic concern (as determined under regulations
  of the President).
  (c) PROHIBITION ON VESSELS THAT ENTER CUBAN PORTS TO ENGAGE IN TRADE-
  (1) IN GENERAL- Beginning on the 61st day after the date of the enactment
  of this Act, a vessel which enters a port or place in Cuba to engage in
  the trade of goods or services may not, within 180 days after departure
  from such port or place in Cuba, load or unload any freight at any place
  in the United States.
  (2) DEFINITIONS- As used in this subsection--
  (A) the term `vessel' includes every description of water craft or other
  contrivance used, or capable of being used, as a means of transportation
  in water, but does not include aircraft; and
  (B) the term `United States' includes the territories and possessions of
  the United States and the customs waters of the United States (as defined
  in section 401 of the Tariff Act of 1930 (19 U.S.C. 1401)).
  (d) RESTRICTIONS ON REMITTANCES TO CUBA- The President shall establish strict
  limits on remittances to Cuba by United States persons for the purpose of
  financing the travel of Cubans to the United States, in order to ensure
  that such remittances reflect only the reasonable costs associated with
  such travel, and are not used by the Castro regime as a means of gaining
  access to United States currency.
  (e) CLARIFICATION OF APPLICABILITY OF SANCTIONS- The prohibitions contained
  in subsections (a), (b), and (c) shall not apply with respect to any
  activity otherwise permitted by section 5 or section 7.
SEC. 7. POLICY TOWARD A TRANSITIONAL CUBAN GOVERNMENT.
  Food, medicine, and medical supplies for humanitarian purposes may be
  made available for Cuba under the Foreign Assistance Act of 1961 and the
  Agricultural Trade Development and Assistance Act of 1954 if the President
  determines and certifies to the Committee on Foreign Affairs of the House
  of Representatives and the Committee on Foreign Relations of the Senate
  that the government in power in Cuba--
  (1) has made a public commitment to hold free and fair elections for a
  new government within 6 months and is proceeding to implement that decision;
  (2) has made a public commitment to respect, and is respecting,
  internationally recognized human rights and basic democratic freedoms; and
  (3) is not providing weapons or funds to any group, in any other country,
  that seeks the violent overthrow of the government of that country.
SEC. 8. POLICY TOWARD A DEMOCRATIC CUBAN GOVERNMENT.
  (a) WAIVER OF RESTRICTIONS- The President may waive the requirements of
  section 6 if the President determines and reports to the Congress that
  Cuba has established democratic institutions through free, fair, and open
  elections, under international supervision, that represent the will of
  the majority of the Cuban people.
  (b) POLICIES- If the President makes a determination under subsection (a),
  it shall be the policy of the United States to take the following actions
  with respect to a Cuban Government elected pursuant to elections described
  in subsection (a):
  (1) To grant full diplomatic recognition to such government, and to
  encourage the admission of such government to international organizations
  and international financial institutions.
  (2) To provide emergency relief during Cuba's transition to a viable
  economic system.
  (3) To encourage rescheduling or cancellation of Cuba's external debt.
  (4) To end the United States trade embargo of Cuba.
  (5) To enter into negotiations for a framework agreement providing for
  trade with Cuba.
SEC. 9. EXISTING CLAIMS NOT AFFECTED.
  Except as provided in section 5(a), nothing in this Act affects the
  provisions of section 620(a)(2) of the Foreign Assistance Act of 1961.
SEC. 10. ENFORCEMENT.
  (a) ENFORCEMENT AUTHORITY- The authority to enforce this Act shall be carried
  out by the Secretary of the Treasury. The Secretary of the Treasury shall
  exercise the authorities of the Trading With the Enemy Act in enforcing
  this Act. In carrying out this subsection, the Secretary of the Treasury
  shall take the necessary steps to ensure that activities permitted under
  this Act are carried out for the purposes set forth in this Act and not for
  purposes of the accumulation by the Cuban Government of excessive amounts
  of United States currency or the accumulation of excessive profits by any
  person or entity.
  (b) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated
  to the Secretary of the Treasury such sums as may be necessary to carry
  out this Act.
  (c) PENALTIES UNDER THE TRADING WITH THE ENEMY ACT- Section 16 of the
  Trading With the Enemy Act (50 U.S.C. App. 16) is amended--
  (1) by inserting `(a)' before `Whoever'; and
  (2) by adding at the end the following:
   `(b) The Secretary of the Treasury may impose a civil penalty of not
   more than $100,000 on any person who violates any license, order, rule,
   or regulation issued under this Act.'.
  (d) APPLICABILITY OF PENALTIES- The penalties set forth in section 16 of
  the Trading With the Enemy Act shall apply to violations of this Act to
  the same extent as such penalties apply to violations under that Act.
  (e) OFFICE OF FOREIGN ASSETS CONTROL- The Department of the Treasury shall
  establish and maintain a branch of the Office of Foreign Assets Control
  in Miami, Florida, in order to strengthen the enforcement of this Act.
SEC. 11. DEFINITION.
  As used in this Act, the term `United States person' means any United States
  citizen or alien admitted for permanent residence in the United States,
  and any corporation, partnership, or other organization organized under
  the laws of the United States.
SEC. 12. EFFECTIVE DATE.
  This Act shall take effect on the date of the enactment of this Act.