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104th Congress                                            Rept. 104-202
                        HOUSE OF REPRESENTATIVES

 1st Session                                                     Part 1
_______________________________________________________________________


 
     CUBAN LIBERTY AND DEMOCRATIC SOLIDARITY (LIBERTAD) ACT OF 1995

_______________________________________________________________________


                 July 24, 1995.--Ordered to be printed

                                _______


 Mr. Gilman, from the Committee on International Relations, submitted 
                             the following

                              R E P O R T

                             together with

                             MINORITY VIEWS

                        [To accompany H.R. 927]

      [Including cost estimate of the Congressional Budget Office]
  The Committee on International Relations, to whom was 
referred the bill (H.R. 927) to seek international sanctions 
against the Castro government in Cuba, to plan for support of a 
transition government leading to a democratically elected 
government in Cuba, and for other purposes, having considered 
the same, report favorably thereon with an amendment and 
recommend that the bill as amended do pass.
  The amendment is as follows:
  Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Cuban Liberty and 
Democratic Solidarity (LIBERTAD) Act of 1995''.
  (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Purposes.
Sec. 4. Definitions.

        TITLE I--SEEKING SANCTIONS AGAINST THE CASTRO GOVERNMENT

Sec. 101. Statement of policy.
Sec. 102. Enforcement of the economic embargo of Cuba.
Sec. 103. Prohibition against indirect financing of the Castro 
dictatorship.
Sec. 104. United States opposition to Cuban membership in international 
financial institutions.
Sec. 105. United States opposition to ending the suspension of the 
Government of Cuba from the Organization of American States.
Sec. 106. Assistance by the Independent States of the former Soviet 
Union for the Cuban government.
Sec. 107. Television broadcasting to Cuba.
Sec. 108. Reports on assistance and commerce received by Cuba from 
other foreign countries.
Sec. 109. Importation safeguard against certain Cuban products.
Sec. 110. Authorization of support for democratic and human rights 
groups and international observers.
Sec. 111. Withholding of foreign assistance from countries supporting 
nuclear plant in Cuba.
Sec. 112. Expulsion of criminals from Cuba.

          TITLE II--ASSISTANCE TO A FREE AND INDEPENDENT CUBA

Sec. 201. Policy toward a transition government and a democratically 
elected government in Cuba.
Sec. 202. Authorization of assistance for the Cuban people.
Sec. 203. Coordination of assistance program; implementation and 
reports to Congress; reprogramming.
Sec. 204. Authorization of appropriations.
Sec. 205. Termination of the economic embargo of Cuba.
Sec. 206. Requirements for a transition government.
Sec. 207. Requirements for a democratically elected government.

  TITLE III--PROTECTION OF PROPERTY RIGHTS OF UNITED STATES NATIONALS 
           AGAINST CONFISCATORY TAKINGS BY THE CASTRO REGIME

Sec. 301. Statement of policy.
Sec. 302. Liability for trafficking in property confiscated from United 
States nationals.
Sec. 303. Determination of claims to confiscated property.
Sec. 304. Exclusivity of Foreign Claims Settlement Commission 
certification procedure.

                 TITLE IV--EXCLUSION OF CERTAIN ALIENS

Sec. 401. Exclusion from the United States of aliens who have 
confiscated property of United States nationals or who traffic in such 
property.
SEC. 2. FINDINGS.

  The Congress makes the following findings:
          (1) The economy of Cuba has experienced a decline of at least 
        60 percent in the last 5 years as a result of--
                  (A) the end of its subsidization by the former Soviet 
                Union of between 5 billion and 6 billion dollars 
                annually;
                  (B) 36 years of Communist tyranny and economic 
                mismanagement by the Castro government;
                  (C) the extreme decline in trade between Cuba and the 
                countries of the former Soviet bloc; and
                  (D) the stated policy of the Russian Government and 
                the countries of the former Soviet bloc to conduct 
                economic relations with Cuba on strictly commercial 
                terms.
          (2) At the same time, the welfare and health of the Cuban 
        people have substantially deteriorated as a result of this 
        economic decline and the refusal of the Castro regime to permit 
        free and fair democratic elections in Cuba.
          (3) The Castro regime has made it abundantly clear that it 
        will not engage in any substantive political reforms that would 
        lead to democracy, a market economy, or an economic recovery.
          (4) The repression of the Cuban people, including a ban on 
        free and fair democratic elections, and continuing violations 
        of fundamental human rights have isolated the Cuban regime as 
        the only completely nondemocratic government in the Western 
        Hemisphere.
          (5) As long as free elections are not held in Cuba, the 
        economic condition of the country and the welfare of the Cuban 
        people will not improve in any significant way.
          (6) The totalitarian nature of the Castro regime has deprived 
        the Cuban people of any peaceful means to improve their 
        condition and has led thousands of Cuban citizens to risk or 
        lose their lives in dangerous attempts to escape from Cuba to 
        freedom.
          (7) Radio Marti and Television Marti have both been effective 
        vehicles for providing the people of Cuba with news and 
        information and have helped to bolster the morale of the people 
        of Cuba living under tyranny.
          (8) The consistent policy of the United States towards Cuba 
        since the beginning of the Castro regime, carried out by both 
        Democratic and Republican administrations, has sought to keep 
        faith with the people of Cuba, and has been effective in 
        sanctioning the totalitarian Castro regime.
          (9) The United States has shown a deep commitment, and 
        considers it a moral obligation, to promote and protect human 
        rights and fundamental freedoms as expressed in the Charter of 
        the United Nations and in the Universal Declaration of Human 
        Rights.
          (10) The Congress has historically and consistently 
        manifested its solidarity and the solidarity of the American 
        people with the democratic aspirations of the Cuban people.
          (11) The Cuban Democracy Act of 1992 calls upon the President 
        to encourage the governments of countries that conduct trade 
        with Cuba to restrict their trade and credit relations with 
        Cuba in a manner consistent with the purposes of that Act.
          (12) The 1992 FREEDOM Support Act requires that the 
        President, in providing economic assistance to Russia and the 
        emerging Eurasian democracies, take into account the extent to 
        which they are acting to ``terminate support for the communist 
        regime in Cuba, including removal of troops, closing military 
        facilities, and ceasing trade subsidies and economic, nuclear, 
        and other assistance''.
          (13) The Cuban government engages in the illegal 
        international narcotics trade and harbors fugitives from 
        justice in the United States.
          (14) The Castro government threatens international peace and 
        security by engaging in acts of armed subversion and terrorism 
        such as the training and supplying of groups dedicated to 
        international violence.
          (15) The Castro government has utilized from its inception 
        and continues to utilize torture in various forms (including by 
        psychiatry), as well as execution, exile, confiscation, 
        political imprisonment, and other forms of terror and 
        repression, as means of retaining power.
          (16) Fidel Castro has defined democratic pluralism as 
        ``pluralistic garbage'' and continues to make clear that he has 
        no intention of tolerating the democratization of Cuban 
        society.
          (17) The Castro government holds innocent Cubans hostage in 
        Cuba by no fault of the hostages themselves solely because 
        relatives have escaped the country.
          (18) Although a signatory state to the 1928 Inter-American 
        Convention on Asylum and the International Covenant on Civil 
        and Political Rights (which protects the right to leave one's 
        own country), Cuba nevertheless surrounds embassies in its 
        capital by armed forces to thwart the right of its citizens to 
        seek asylum and systematically denies that right to the Cuban 
        people, punishing them by imprisonment for seeking to leave the 
        country and killing them for attempting to do so (as 
        demonstrated in the case of the confirmed murder of over 40 
        men, women, and children who were seeking to leave Cuba on July 
        13, 1994).
          (19) The Castro government continues to utilize blackmail, 
        such as the immigration crisis with which it threatened the 
        United States in the summer of 1994, and other unacceptable and 
        illegal forms of conduct to influence the actions of sovereign 
        states in the Western Hemisphere in violation of the Charter of 
        the Organization of American States and other international 
        agreements and international law.
          (20) The United Nations Commission on Human Rights has 
        repeatedly reported on the unacceptable human rights situation 
        in Cuba and has taken the extraordinary step of appointing a 
        Special Rapporteur.
          (21) The Cuban government has consistently refused access to 
        the Special Rapporteur and formally expressed its decision not 
        to ``implement so much as one comma'' of the United Nations 
        Resolutions appointing the Rapporteur.
          (22) The United Nations General Assembly passed Resolution 
        1992/70 on December 4, 1992, Resolution 1993/48/142 on December 
        20, 1993, and Resolution 1994/49/544 on October 19, 1994, 
        referencing the Special Rapporteur's reports to the United 
        Nations and condemning ``violations of human rights and 
        fundamental freedoms'' in Cuba.
          (23) Article 39 of Chapter VII of the United Nations Charter 
        provides that the United Nations Security Council ``shall 
        determine the existence of any threat to the peace, breach of 
        the peace, or act of aggression and shall make recommendations, 
        or decide what measures shall be taken . . . , to maintain or 
        restore international peace and security.''.
          (24) The United Nations has determined that massive and 
        systematic violations of human rights may constitute a ``threat 
        to peace'' under Article 39 and has imposed sanctions due to 
        such violations of human rights in the cases of Rhodesia, South 
        Africa, Iraq, and the former Yugoslavia.
          (25) In the case of Haiti, a neighbor of Cuba not as close to 
        the United States as Cuba, the United States led an effort to 
        obtain and did obtain a United Nations Security Council embargo 
        and blockade against that country due to the existence of a 
        military dictatorship in power less than 3 years.
          (26) United Nations Security Council Resolution 940 of July 
        31, 1994, subsequently authorized the use of ``all necessary 
        means'' to restore the ``democratically elected government of 
        Haiti'', and the democratically elected government of Haiti was 
        restored to power on October 15, 1994.
          (27) The Cuban people deserve to be assisted in a decisive 
        manner to end the tyranny that has oppressed them for 36 years 
        and the continued failure to do so constitutes ethically 
        improper conduct by the international community.
          (28) For the past 36 years, the Cuban government has posed 
        and continues to pose a national security threat to the United 
        States.

SEC. 3. PURPOSES.

  The purposes of this Act are as follows:
          (1) To assist the Cuban people in regaining their freedom and 
        prosperity, as well as in joining the community of democracies 
        that are flourishing in the Western Hemisphere.
          (2) To seek international sanctions against the Castro 
        government in Cuba.
          (3) To encourage the holding of free and fair democratic 
        elections in Cuba, conducted under the supervision of 
        internationally recognized observers.
          (4) To develop a plan for furnishing assistance to a 
        transition government and, subsequently, to a democratically 
        elected government when such governments meet the eligibility 
        requirements of this Act.
          (5) To protect property rights abroad of United States 
        nationals.
          (6) To provide for the continued national security of the 
        United States in the face of continuing threats from the Castro 
        government of terrorism, theft of property from United States 
        nationals, and domestic repression from which refugees flee to 
        United States shores.
SEC. 4. DEFINITIONS.

  As used in this Act, the following terms have the following meanings:
          (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means the Committee on 
        International Relations and the Committee on Appropriations of 
        the House of Representatives and the Committee on Foreign 
        Relations and the Committee on Appropriations of the Senate.
          (2) Commercial activity.--The term ``commercial activity'' 
        has the meaning given that term in section 1603(d) of title 28, 
        United States Code.
          (3) Confiscated.--As used in titles I and III, the term 
        ``confiscated'' refers to--
                  (A) the nationalization, expropriation, or other 
                seizure by the Cuban government of ownership or control 
                of property, on or after January 1, 1959--
                          (i) without the property having been returned 
                        or adequate and effective compensation 
                        provided; or
                          (ii) without the claim to the property having 
                        been settled pursuant to an international 
                        claims settlement agreement or other mutually 
                        accepted settlement procedure; and
                  (B) the repudiation by the Cuban government of, the 
                default by the Cuban government on, or the failure by 
                the Cuban government to pay, on or after January 1, 
                1959--
                          (i) a debt of any enterprise which has been 
                        nationalized, expropriated, or otherwise taken 
                        by the Cuban government;
                          (ii) a debt which is a charge on property 
                        nationalized, expropriated, or otherwise taken 
                        by the Cuban government; or
                          (iii) a debt which was incurred by the Cuban 
                        government in satisfaction or settlement of a 
                        confiscated property claim.
          (4) Cuban government.--(A) The term ``Cuban government'' 
        includes the government of any political subdivision of Cuba, 
        and any agency or instrumentality of the Government of Cuba.
          (B) For purposes of subparagraph (A), the term ``agency or 
        instrumentality of the Government of Cuba'' means an agency or 
        instrumentality of a foreign state as defined in section 
        1603(b) of title 28, United States Code, with ``Cuba'' 
        substituted for ``a foreign state'' each place it appears in 
        such section.
          (5) Democratically elected government in cuba.--The term 
        ``democratically elected government in Cuba'' means a 
        government determined by the President to have met the 
        requirements of section 207.
          (6) Economic embargo of cuba.--The term ``economic embargo of 
        Cuba'' refers to the economic embargo imposed against Cuba 
        pursuant to section 620(a) of the Foreign Assistance Act of 
        1961 (22 U.S.C. 2370(a)), section 5(b) of the Trading With the 
        Enemy Act (50 U.S.C. App. 5(b)), the International Emergency 
        Economic Powers Act (50 U.S.C. 1701 and following), and the 
        Export Administration Act of 1979 (50 U.S.C. App. 2401 and 
        following), as modified by the Cuban Democracy Act of 1992 (22 
        U.S.C. 6001 and following).
          (7) Foreign national.--The term ``foreign national'' means--
                  (A) an alien; or
                  (B) any corporation, trust, partnership, or other 
                juridical entity not organized under the laws of the 
                United States, or of any State, the District of 
                Columbia, the Commonwealth of Puerto Rico, or any other 
                territory or possession of the United States.
          (8) Knowingly.--The term ``knowingly'' means with knowledge 
        or having reason to know.
          (9) Property.--(A) The term ``property'' means any property 
        (including patents, copyrights, trademarks, and any other form 
        of intellectual property), whether real, personal, or mixed, 
        and any present, future, or contingent right, security, or 
        other interest therein, including any leasehold interest.
          (B) For purposes of title III of this Act, the term 
        ``property'' shall not include real property used for 
        residential purposes unless, as of the date of the enactment of 
        this Act--
                  (i) the claim to the property is owned by a United 
                States national and the claim has been certified under 
                title V of the International Claims Settlement Act of 
                1949; or
                  (ii) the property is occupied by a member or official 
                of the Cuban government or the ruling political party 
                in Cuba.
          (10) Traffics.--(A) As used in title III, a person or entity 
        ``traffics'' in property if that person or entity knowingly and 
        intentionally--
                  (i) sells, transfers, distributes, dispenses, 
                brokers, manages, or otherwise disposes of confiscated 
                property, or purchases, leases, receives, possesses, 
                obtains control of, manages, uses, or otherwise 
                acquires or holds an interest in confiscated property,
                  (ii) engages in a commercial activity using or 
                otherwise benefiting from confiscated property, or
                  (iii) causes, directs, participates in, or profits 
                from, trafficking (as described in clauses (i) and 
                (ii)) by another person, or otherwise engages in 
                trafficking (as described in clauses (i) and (ii)) 
                through another person,
        without the authorization of the United States national who 
        holds a claim to the property.
          (B) The term ``traffics'' does not include--
                  (i) the delivery of international telecommunication 
                signals to Cuba that are authorized by section 1705(e) 
                of the Cuban Democracy Act of 1992 (22 U.S.C. 6004(e)); 
                or
                  (ii) the trading or holding of securities publicly 
                traded or held, unless the trading is with or by a 
                person determined by the Secretary of the Treasury to 
                be a specially designated national.
          (11) Transition government in cuba.--The term ``transition 
        government in Cuba'' means a government determined by the 
        President to have met the requirements of section 206.
          (12) United states national.--The term ``United States 
        national'' means--
                  (A) any United States citizen; or
                  (B) any other legal entity which is organized under 
                the laws of the United States, or of any State, the 
                District of Columbia, the Commonwealth of Puerto Rico, 
                or any other territory or possession of the United 
                States, and which has its principal place of business 
                in the United States.

        TITLE I--SEEKING SANCTIONS AGAINST THE CASTRO GOVERNMENT

SEC. 101. STATEMENT OF POLICY.

  It is the sense of the Congress that--
          (1) the acts of the Castro government, including its massive, 
        systematic, and extraordinary violations of human rights, are a 
        threat to international peace;
          (2) the President should advocate, and should instruct the 
        United States Permanent Representative to the United Nations to 
        propose and seek, within the Security Council, a mandatory 
        international embargo against the totalitarian Cuban government 
        pursuant to chapter VII of the Charter of the United Nations, 
        which is similar to measures taken by United States 
        representatives with respect to Haiti; and
          (3) any resumption or commencement of efforts by any state to 
        make operational the nuclear facility at Cienfuegos, Cuba, will 
        have a detrimental impact on United States assistance to and 
        relations with that state.
SEC. 102. ENFORCEMENT OF THE ECONOMIC EMBARGO OF CUBA.

  (a) Policy.--(1) The Congress hereby reaffirms section 1704(a) of the 
Cuban Democracy Act of 1992 that states the President should encourage 
foreign countries to restrict trade and credit relations with Cuba.
  (2) The Congress further urges the President to take immediate steps 
to apply the sanctions described in section 1704(b) of that Act against 
countries assisting Cuba.
  (b) Diplomatic Efforts.--The Secretary of State shall ensure that 
United States diplomatic personnel abroad understand and, in their 
contacts with foreign officials, are communicating the reasons for the 
United States economic embargo of Cuba, and are urging foreign 
governments to cooperate more effectively with the embargo.
  (c) Existing Regulations.--The President should instruct the 
Secretary of the Treasury and the Attorney General to enforce fully the 
Cuban Assets Control Regulations set forth in part 515 of title 31, 
Code of Federal Regulations.
  (d) Trading With the Enemy Act.--
          (1) Civil penalties.--Subsection (b) of section 16 of the 
        Trading With the Enemy Act (50 U.S.C. App. 16(b)) is amended to 
        read as follows:
  ``(b)(1) A civil penalty of not to exceed $50,000 may be imposed by 
the Secretary of the Treasury on any person who violates any license, 
order, rule, or regulation issued in compliance with the provisions of 
this Act.
  ``(2) Any property, funds, securities, papers, or other articles or 
documents, or any vessel, together with its tackle, apparel, furniture, 
and equipment, that is the subject of a violation under paragraph (1) 
shall, at the discretion of the Secretary of the Treasury, be forfeited 
to the United States Government.
  ``(3) The penalties provided under this subsection may not be imposed 
for--
          ``(A) news gathering, research, or the export or import of, 
        or transmission of, information or informational materials; or
          ``(B) clearly defined educational or religious activities, or 
        activities of recognized human rights organizations, that are 
        reasonably limited in frequency, duration, and number of 
        participants.
  ``(4) The penalties provided under this subsection may be imposed 
only on the record after opportunity for an agency hearing in 
accordance with sections 554 through 557 of title 5, United States 
Code, with the right to prehearing discovery.
  ``(5) Judicial review of any penalty imposed under this subsection 
may be had to the extent provided in section 702 of title 5, United 
States Code.''.
          (2) Forfeiture of property used in violation.--Section 16 of 
        the Trading With the Enemy Act is further amended by striking 
        subsection (c).
          (3) Clerical amendment.--Section 16 of the Trading With the 
        Enemy Act is further amended by inserting ``Sec. 16.'' before 
        ``(a)''.
  (e) Coverage of Debt-for-Equity Swaps by Economic Embargo of Cuba.--
Section 1704(b)(2) of the Cuban Democracy Act of 1992 (22 U.S.C. 
6003(b)(2)) is amended--
          (1) by striking ``and'' at the end of subparagraph (A);
          (2) by redesignating subparagraph (B) as subparagraph (C); 
        and
          (3) by inserting after subparagraph (A) the following new 
        subparagraph:
                  ``(B) includes an exchange, reduction, or forgiveness 
                of Cuban debt owed to a foreign country in return for a 
                grant of an equity interest in a property, investment, 
                or operation of the Government of Cuba (including the 
                government of any political subdivision of Cuba, and 
                any agency or instrumentality of the Government of 
                Cuba) or of a Cuban national; and''; and
          (4) by adding at the end the following flush sentence:
        ``As used in this paragraph, the term `agency or 
        instrumentality of the Government of Cuba' means an agency or 
        instrumentality of a foreign state as defined in section 
        1603(b) of title 28, United States Code, with `Cuba' 
        substituted for `a foreign state' each place it appears in such 
        section.''.

SEC. 103. PROHIBITION AGAINST INDIRECT FINANCING OF THE CASTRO 
                    DICTATORSHIP.

  (a) Prohibition.--Notwithstanding any other provision of law, no 
loan, credit, or other financing may be extended knowingly by a United 
States national, permanent resident alien, or United States agency, to 
a foreign national, United States national, or permanent resident 
alien, in order to finance transactions involving any confiscated 
property the claim to which is owned by a United States national as of 
the date of the enactment of this Act.
  (b) Termination of Prohibition.--The prohibition of subsection (a) 
shall cease to apply on the date on which the economic embargo of Cuba 
terminates under section 205.
  (c) Penalties.--Violations of subsection (a) shall be punishable by 
the same penalties as are applicable to violations of the Cuban Assets 
Control Regulations set forth in part 515 of title 31, Code of Federal 
Regulations.
  (d) Definitions.--As used in this section--
          (1) the term ``permanent resident alien'' means an alien 
        admitted for permanent residence into the United States; and
          (2) the term ``United States agency'' has the meaning given 
        the term ``agency'' in section 551(1) of title 5, United States 
        Code.
SEC. 104. UNITED STATES OPPOSITION TO CUBAN MEMBERSHIP IN INTERNATIONAL 
                    FINANCIAL INSTITUTIONS.

  (a) Continued Opposition to Cuban Membership in International 
Financial Institutions.--(1) Except as provided in paragraph (2), the 
Secretary of the Treasury shall instruct the United States executive 
director to each international financial institution to use the voice 
and vote of the United States to oppose the admission of Cuba as a 
member of that institution until the President submits a determination 
under section 203(c)(3) that a democratically elected government in 
Cuba is in power.
  (2) Once the President submits a determination under section 
203(c)(1) that a transition government in Cuba is in power, the 
President is encouraged to take steps to support the processing of 
Cuba's application for membership in any international financial 
institution, subject to the membership taking effect after a 
democratically elected government in Cuba is in power.
  (b) Reduction in United States Payments to International Financial 
Institutions.--If any international financial institution approves a 
loan or other assistance to the Cuban government over the opposition of 
the United States, then the Secretary of the Treasury shall withhold 
from payment to that institution an amount equal to the amount of the 
loan or other assistance to the Cuban government, with respect to each 
of the following types of payment:
          (1) The paid-in portion of the increase in capital stock of 
        the institution.
          (2) The callable portion of the increase in capital stock of 
        the institution.
  (c) Definition.--For purposes of this section, the term 
``international financial institution'' means the International 
Monetary Fund, the International Bank for Reconstruction and 
Development, the International Development Association, the 
International Finance Corporation, the Multilateral Investment Guaranty 
Agency, and the Inter-American Development Bank.

SEC. 105. UNITED STATES OPPOSITION TO ENDING THE SUSPENSION OF THE 
                    GOVERNMENT OF CUBA FROM THE ORGANIZATION OF 
                    AMERICAN STATES.

  The President should instruct the United States Permanent 
Representative to the Organization of American States to use the voice 
and vote of the United States to oppose ending the suspension of the 
Government of Cuba from the Organization until the President determines 
under section 203(c)(3) that a democratically elected government in 
Cuba is in power.
SEC. 106. ASSISTANCE BY THE INDEPENDENT STATES OF THE FORMER SOVIET 
                    UNION FOR THE CUBAN GOVERNMENT.

  (a) Reporting Requirement.--Not later than 90 days after the date of 
the enactment of this Act, the President shall submit to the 
appropriate congressional committees a report detailing progress 
towards the withdrawal of personnel of any independent state of the 
former Soviet Union (within the meaning of section 3 of the FREEDOM 
Support Act (22 U.S.C. 5801)), including advisers, technicians, and 
military personnel, from the Cienfuegos nuclear facility in Cuba.
  (b) Criteria for Assistance.--Section 498A(a)(11) of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2295a(a)(11)) is amended by striking 
``of military facilities'' and inserting ``military and intelligence 
facilities, including the military and intelligence facilities at 
Lourdes and Cienfuegos''.
  (c) Ineligibility for Assistance.--(1) Section 498A(b) of that Act 
(22 U.S.C. 2295a(b)) is amended--
          (A) by striking ``or'' at the end of paragraph (4);
          (B) by redesignating paragraph (5) as paragraph (6); and
          (C) by inserting after paragraph (4) the following:
          ``(5) for the government of any independent state effective 
        30 days after the President has determined and certified to the 
        appropriate congressional committees (and Congress has not 
        enacted legislation disapproving the determination within that 
        30-day period) that such government is providing assistance 
        for, or engaging in nonmarket based trade (as defined in 
        section 498B(k)(3)) with, the Cuban government; or''.
  (2) Subsection (k) of section 498B of that Act (22 U.S.C. 2295b(k)), 
is amended by adding at the end the following:
          ``(3) Nonmarket based trade.--As used in section 498A(b)(5), 
        the term `nonmarket based trade' includes exports, imports, 
        exchanges, or other arrangements that are provided for goods 
        and services (including oil and other petroleum products) on 
        terms more favorable than those generally available in 
        applicable markets or for comparable commodities, including--
                  ``(A) exports to the Cuban government on terms that 
                involve a grant, concessional price, guaranty, 
                insurance, or subsidy;
                  ``(B) imports from the Cuban government at 
                preferential tariff rates;
                  ``(C) exchange arrangements that include advance 
                delivery of commodities, arrangements in which the 
                Cuban government is not held accountable for 
                unfulfilled exchange contracts, and arrangements under 
                which Cuba does not pay appropriate transportation, 
                insurance, or finance costs; and
                  ``(D) the exchange, reduction, or forgiveness of 
                Cuban debt in return for a grant by the Cuban 
                government of an equity interest in a property, 
                investment, or operation of the Cuban government or of 
                a Cuban national.
          ``(4) Cuban government.--(A) The term `Cuban government' 
        includes the government of any political subdivision of Cuba, 
        and any agency or instrumentality of the Government of Cuba.
          ``(B) For purposes of subparagraph (A), the term `agency or 
        instrumentality of the Government of Cuba' means an agency or 
        instrumentality of a foreign state as defined in section 
        1603(b) of title 28, United States Code, with `Cuba' 
        substituted for `a foreign state' each place it appears in such 
        section.''.
  (d) Facilities at Lourdes, Cuba.--(1) The Congress expresses its 
strong disapproval of the extension by Russia of credits equivalent to 
approximately $200,000,000 in support of the intelligence facility at 
Lourdes, Cuba, in November 1994.
  (2) Section 498A of the Foreign Assistance Act of 1961 (22 U.S.C. 
2295a) is amended by adding at the end the following new subsection:
  ``(d) Reduction in Assistance for Support of Intelligence Facilities 
in Cuba.--(1) Notwithstanding any other provision of law, the President 
shall withhold from assistance provided, on or after the date of the 
enactment of this subsection, for an independent state of the former 
Soviet Union under this chapter an amount equal to the sum of 
assistance and credits, if any, provided on or after such date by such 
state in support of intelligence facilities in Cuba, including the 
intelligence facility at Lourdes, Cuba.
  ``(2)(A) The President may waive the requirement of paragraph (1) to 
withhold assistance if the President certifies to the appropriate 
congressional committees that the provision of such assistance is 
important to the national security of the United States, and, in the 
case of such a certification made with respect to Russia, if the 
President certifies that the Russian Government has assured the United 
States Government that the Russian Government is not sharing 
intelligence data collected at the Lourdes facility with officials or 
agents of the Cuban Government.
  ``(B) At the time of a certification made with respect to Russia 
pursuant to subparagraph (A), the President shall also submit to the 
appropriate congressional committees a report describing the 
intelligence activities of Russia in Cuba, including the purposes for 
which the Lourdes facility is used by the Russian Government and the 
extent to which the Russian Government provides payment or government 
credits to the Cuban Government for the continued use of the Lourdes 
facility.
  ``(C) The report required by subparagraph (B) may be submitted in 
classified form.
  ``(D) For purposes of this paragraph, the term `appropriate 
congressional committees' includes the Permanent Select Committee on 
Intelligence of the House of Representatives and the Select Committee 
on Intelligence of the Senate.
  ``(3) The requirement of paragraph (1) to withhold assistance shall 
not apply with respect to--
          ``(A) assistance to meet urgent humanitarian needs, including 
        disaster and refugee relief;
          ``(B) democratic political reform and rule of law activities;
          ``(C) technical assistance for safety upgrades of civilian 
        nuclear power plants;
          ``(D) the creation of private sector and nongovernmental 
        organizations that are independent of government control;
          ``(E) the development of a free market economic system; and
          ``(F) assistance for the purposes described in the 
        Cooperative Threat Reduction Act of 1993 (title XII of Public 
        Law 103-160).''.
SEC. 107. TELEVISION BROADCASTING TO CUBA.

  (a) Conversion to UHF.--The Director of the United States Information 
Agency shall implement a conversion of television broadcasting to Cuba 
under the Television Marti Service to ultra high frequency (UHF) 
broadcasting.
  (b) Periodic Reports.--Not later than 45 days after the date of the 
enactment of this Act, and every three months thereafter until the 
conversion described in subsection (a) is fully implemented, the 
Director of the United States Information Agency shall submit a report 
to the appropriate congressional committees on the progress made in 
carrying out subsection (a).
  (c) Termination of Broadcasting Authorities.--Upon transmittal of a 
determination under section 203(c)(3), the Television Broadcasting to 
Cuba Act (22 U.S.C. 1465aa and following) and the Radio Broadcasting to 
Cuba Act (22 U.S.C. 1465 and following) are repealed.

SEC. 108. REPORTS ON ASSISTANCE AND COMMERCE RECEIVED BY CUBA FROM 
                    OTHER FOREIGN COUNTRIES.

  (a) Reports Required.--Not later than 90 days after the date of the 
enactment of this Act, and every year thereafter, the President shall 
submit a report to the appropriate congressional committees on 
assistance and commerce received by Cuba from other foreign countries 
during the preceding 12-month period.
  (b) Contents of Reports.--Each report required by subsection (a) 
shall, for the period covered by the report, contain the following, to 
the extent such information is known:
          (1) A description of all bilateral assistance provided to 
        Cuba by other foreign countries, including humanitarian 
        assistance.
          (2) A description of Cuba's commerce with foreign countries, 
        including an identification of Cuba's trading partners and the 
        extent of such trade.
          (3) A description of the joint ventures completed, or under 
        consideration, by foreign nationals involving facilities in 
        Cuba, including an identification of the location of the 
        facilities involved and a description of the terms of agreement 
        of the joint ventures and the names of the parties that are 
        involved.
          (4) A determination whether or not any of the facilities 
        described in paragraph (3) is the subject of a claim by a 
        United States national.
          (5) A determination of the amount of Cuban debt owed to each 
        foreign country, including--
                  (A) the amount of debt exchanged, forgiven, or 
                reduced under the terms of each investment or operation 
                in Cuba involving foreign nationals; and
                  (B) the amount of debt owed to the foreign country 
                that has been exchanged, reduced, or forgiven in return 
                for a grant by the Cuban government of an equity 
                interest in a property, investment, or operation of the 
                Cuban government or of a Cuban national.
          (6) A description of the steps taken to ensure that raw 
        materials and semifinished or finished goods produced by 
        facilities in Cuba involving foreign nationals do not enter the 
        United States market, either directly or through third 
        countries or parties.
          (7) An identification of countries that purchase, or have 
        purchased, arms or military supplies from the Cuban government 
        or that otherwise have entered into agreements with the Cuban 
        government that have a military application, including--
                  (A) a description of the military supplies, 
                equipment, or other materiel sold, bartered, or 
                exchanged between the Cuban government and such 
                countries;
                  (B) a listing of the goods, services, credits, or 
                other consideration received by the Cuban government in 
                exchange for military supplies, equipment, or materiel; 
                and
                  (C) the terms or conditions of any such agreement.
SEC. 109. IMPORTATION SAFEGUARD AGAINST CERTAIN CUBAN PRODUCTS.

  (a) Statement of Policy.--
          (1) The Congress reaffirms section 515.204 of title 31, Code 
        of Federal Regulations, that prohibits the importation of and 
        dealings in merchandise outside the United States that--
                  (A) is of Cuban origin,
                  (B) is or has been located in or transported from or 
                through Cuba, or
                  (C) is made or derived in whole or in part from any 
                article which is the growth, produce, or manufacture of 
                Cuba.
          (2) The Congress reaffirms that United States accession to 
        the North American Free Trade Agreement does not modify or 
        alter the United States sanctions against Cuba, noting that the 
        statement of administrative action accompanying that trade 
        agreement specifically states the following:
                  (A) ``The NAFTA rules of origin will not in any way 
                diminish the Cuban sanctions program . . . . Nothing in 
                the NAFTA would operate to override this 
                prohibition.''.
                  (B) ``Article 309(3) [of the NAFTA] permits the 
                United States to ensure that Cuban products or goods 
                made from Cuban materials are not imported into the 
                United States from Mexico or Canada and that United 
                States products are not exported to Cuba through those 
                countries.''.
          (3) The Congress notes that section 902(c) the Food Security 
        Act of 1985 (Public Law 99-198) required the President not to 
        allocate any of the sugar import quota to a country that is a 
        net importer of sugar unless that country can verify to the 
        President that any imports of sugar produced in Cuba are not 
        reexported to the United States.
          (4) Protection of essential security interests of the United 
        States requires enhanced assurances that sugar products 
        imported into the United States are not products of Cuba.
  (b) In General.--(1) Notwithstanding any other provision of law, no 
sugar or sugar product shall enter or be imported into the United 
States unless the exporter of the sugar or sugar product to the United 
States has certified, to the satisfaction of the Secretary of the 
Treasury, that the sugar or sugar product is not a product of Cuba.
  (2) If the exporter described in paragraph (1) is not the producer of 
the sugar or sugar product, the exporter may certify the origin of the 
sugar or sugar product on the basis of--
          (A) its reasonable reliance on the producer's written 
        representations as to the origin of the sugar or sugar product; 
        or
          (B) a certification of the origin of the sugar or sugar 
        product by its producer, that is voluntarily provided to the 
        exporter by the producer.
  (c) Certification.--The Secretary of the Treasury shall prescribe the 
form, content, and manner of submission of the certification (including 
documentation) required in connection with the entry or importation 
into the United States of sugar or sugar products, in order to ensure 
the strict enforcement of this section. Such certification shall be in 
a form sufficient to satisfy the Secretary that the exporter has taken 
steps to ensure that it is not exporting to the United States sugar or 
sugar products that are a product of Cuba.
  (d) Penalties.--
          (1) Unlawful acts.--It is unlawful to--
                  (A) enter or import into the United States any 
                product or article if such importation is prohibited 
                under subsection (b), or
                  (B) make a false certification under subsection (c).
          (2) Forfeiture.--Any person or entity that violates paragraph 
        (1) shall forfeit to the United States--
                  (A) in the case of a violation of paragraph (1)(A), 
                the goods imported or entered in violation of paragraph 
                (1)(A), and
                  (B) in the case of a violation of paragraph (1)(B), 
                the goods imported or entered pursuant to the false 
                certification that is the subject of the violation.
          (3) Enforcement.--The Customs Service may exercise the 
        authorities it has under sections 581 through 641 of the Tariff 
        Act of 1930 (19 U.S.C. 1581 through 1641) in order to carry out 
        paragraph (2).
  (e) Reports to Congress.--The Secretary of the Treasury shall report 
to the Congress on any unlawful acts and penalties imposed under 
subsection (d).
  (f) Publication of Lists of Violators.--(1) The Secretary of the 
Treasury shall publish in the Federal Register, not later than March 31 
and September 30 of each year, a list containing the name of any person 
or entity located outside the customs territory of the United States 
whose acts result in a violation of paragraph (1)(A) of subsection (d) 
or who violate paragraph (1)(B) of subsection (d).
  (2) Any person or entity whose name has been included in a list 
published under paragraph (1) may petition the Secretary to be removed 
from such list. If the Secretary finds that such person or entity has 
not committed any violations described in paragraph (1) for a period of 
not less than 1 year after the date on which the name of the person or 
entity was so published, the Secretary shall remove such person from 
the list as of the next publication of the list under paragraph (1).
  (g) Definitions.--For purposes of this section:
          (1) Enter, import, etc.--The terms ``entry'', ``enter or be 
        imported'', ``import'', and ``importation'' into the United 
        States mean entered, or withdrawn from warehouse for 
        consumption, in the customs territory of the United States.
          (2) Product of cuba.--The term ``product of Cuba'' means a 
        product that--
                  (A) is of Cuban origin,
                  (B) is or has been located in or transported from or 
                through Cuba, or
                  (C) is made or derived in whole or in part from any 
                article which is the growth, produce, or manufacture of 
                Cuba.
          (3) Sugar, sugar product.--The terms ``sugar'' and ``sugar 
        product'' mean sugars, syrups, molasses, or products with sugar 
        content in excess of 35 percent.

SEC. 110. AUTHORIZATION OF SUPPORT FOR DEMOCRATIC AND HUMAN RIGHTS 
                    GROUPS AND INTERNATIONAL OBSERVERS.

  (a) Authorization.--Notwithstanding any other provision of law, 
except for section 634A of the Foreign Assistance Act of 1961 (22 
U.S.C. 2394-1) and comparable notification requirements contained in 
any Act making appropriations for foreign operations, export financing, 
and related programs, the President is authorized to furnish assistance 
and provide other support for individuals and independent 
nongovernmental organizations to support democracy-building efforts for 
Cuba, including the following:
          (1) Published and informational matter, such as books, 
        videos, and cassettes, on transitions to democracy, human 
        rights, and market economies, to be made available to 
        independent democratic groups in Cuba.
          (2) Humanitarian assistance to victims of political 
        repression, and their families.
          (3) Support for democratic and human rights groups in Cuba.
          (4) Support for visits and permanent deployment of 
        independent international human rights monitors in Cuba.
  (b) OAS Emergency Fund.--(1) The President shall take the necessary 
steps to encourage the Organization of American States to create a 
special emergency fund for the explicit purpose of deploying human 
rights observers, election support, and election observation in Cuba.
  (2) The President should instruct the United States Permanent 
Representative to the Organization of American States to encourage 
other member states of the Organization to join in calling for the 
Cuban government to allow the immediate deployment of independent human 
rights monitors of the Organization throughout Cuba and on-site visits 
to Cuba by the Inter-American Commission on Human Rights.
  (3) Notwithstanding section 307 of the Foreign Assistance Act of 1961 
(22 U.S.C. 2227) or any other provision of law limiting the United 
States proportionate share of assistance to Cuba by any international 
organization, the President should provide not less than $5,000,000 of 
the voluntary contributions of the United States to the Organization of 
American States as of the date of the enactment of this Act solely for 
the purposes of the special fund referred to in paragraph (1).
SEC. 111. WITHHOLDING OF FOREIGN ASSISTANCE FROM COUNTRIES SUPPORTING 
                    NUCLEAR PLANT IN CUBA.

  (a) Findings.--The Congress makes the following findings:
          (1) President Clinton stated in April 1993 that ``the United 
        States opposes the construction of the Juragua nuclear power 
        plant because of our concerns about Cuba's ability to ensure 
        the safe operation of the facility and because of Cuba's 
        refusal to sign the Nuclear Non-Proliferation Treaty or ratify 
        the Treaty of Tlatelolco.''.
          (2) Cuba has not signed the Treaty on the Non-Proliferation 
        of Nuclear Weapons or ratified the Treaty of Tlatelolco, the 
        latter of which establishes Latin America and the Caribbean as 
        a nuclear weapons-free zone.
          (3) The State Department, the Nuclear Regulatory Commission, 
        and the Department of Energy have expressed concerns about the 
        construction and operation of Cuba's nuclear reactors.
          (4) In a September 1992 report to Congress, the General 
        Accounting Office outlined concerns among nuclear energy 
        experts about deficiencies in the nuclear plant project in 
        Juragua, near Cienfuegos, Cuba, including--
                  (A) a lack in Cuba of a nuclear regulatory structure;
                  (B) the absence in Cuba of an adequate infrastructure 
                to ensure the plant's safe operation and requisite 
                maintenance;
                  (C) the inadequacy of training of plant operators;
                  (D) reports by a former technician from Cuba who, by 
                examining with x-rays weld sites believed to be part of 
                the auxiliary plumbing system for the plant, found that 
                10 to 15 percent of those sites were defective;
                  (E) since September 5, 1992, when construction on the 
                plant was halted, the prolonged exposure to the 
                elements, including corrosive salt water vapor, of the 
                primary reactor components; and
                  (F) the possible inadequacy of the upper portion of 
                the reactors' dome retention capability to withstand 
                only 7 pounds of pressure per square inch, given that 
                normal atmospheric pressure is 32 pounds per square 
                inch and United States reactors are designed to 
                accommodate pressures of 50 pounds per square inch.
          (5) The United States Geological Survey claims that it had 
        difficulty determining answers to specific questions regarding 
        earthquake activity in the area near Cienfuegos because the 
        Cuban government was not forthcoming with information.
          (6) The Geological Survey has indicated that the Caribbean 
        plate, a geological formation near the south coast of Cuba, may 
        pose seismic risks to Cuba and the site of the power plant, and 
        may produce large to moderate earthquakes.
          (7) On May 25, 1992, the Caribbean plate produced an 
        earthquake numbering 7.0 on the Richter scale.
          (8) According to a study by the National Oceanic and 
        Atmospheric Administration, summer winds could carry 
        radioactive pollutants from a nuclear accident at the power 
        plant throughout all of Florida and parts of the States on the 
        gulf coast as far as Texas, and northern winds could carry the 
        pollutants as far northeast as Virginia and Washington, D.C.
          (9) The Cuban government, under dictator Fidel Castro, in 
        1962 advocated the Soviets' launching of nuclear missiles to 
        the United States, which represented a direct and dangerous 
        provocation of the United States and brought the world to the 
        brink of a nuclear conflict.
          (10) Fidel Castro over the years has consistently issued 
        threats against the United States Government, most recently 
        that he would unleash another perilous mass migration from Cuba 
        upon the enactment of this Act.
          (11) Despite the various concerns about the plant's safety 
        and operational problems, a feasibility study is being 
        conducted that would establish a support group to include 
        Russia, Cuba, and third countries with the objective of 
        completing and operating the plant.
  (b) Withholding of Foreign Assistance.--
          (1) In general.--Notwithstanding any other provision of law, 
        the President shall withhold from assistance allocated, on or 
        after the date of the enactment of this Act, for any country an 
        amount equal to the sum of assistance and credits, if any, 
        provided on or after such date of enactment by that country or 
        any entity in that country in support of the completion of the 
        Cuban nuclear facility at Juragua, near Cienfuegos, Cuba.
          (2) Exceptions.--The requirement of paragraph (1) to withhold 
        assistance shall not apply with respect to--
                  (A) assistance to meet urgent humanitarian needs, 
                including disaster and refugee relief;
                  (B) democratic political reform and rule of law 
                activities;
                  (C) the creation of private sector and 
                nongovernmental organizations that are independent of 
                government control;
                  (D) the development of a free market economic system; 
                and
                  (E) assistance for the purposes described in the 
                Cooperative Threat Reduction Act of 1993 (title XII of 
                Public Law 103-160).
          (3) Definition.--As used in paragraph (1), the term 
        ``assistance'' means assistance under the Foreign Assistance 
        Act of 1961, credits, sales, and guarantees of extensions of 
        credit under the Arms Export Control Act, assistance under 
        titles I and III of the Agricultural Trade Development and 
        Assistance Act of 1954, assistance under the FREEDOM Support 
        Act of 1992, and any other program of assistance or credits 
        provided by the United States to other countries under other 
        provisions of law, except that the term ``assistance'' does not 
        include humanitarian assistance, including disaster relief 
        assistance.

SEC. 112. EXPULSION OF CRIMINALS FROM CUBA.

  The President shall instruct all United States Government officials 
who engage in official conduct with the Cuban government to raise on a 
regular basis the extradition of or rendering to the United States all 
persons residing in Cuba who are sought by the United States Department 
of Justice for crimes committed in the United States.
          TITLE II--ASSISTANCE TO A FREE AND INDEPENDENT CUBA

SEC. 201. POLICY TOWARD A TRANSITION GOVERNMENT AND A DEMOCRATICALLY 
                    ELECTED GOVERNMENT IN CUBA.

  The policy of the United States is as follows:
          (1) To support the self-determination of the Cuban people.
          (2) To recognize that the self-determination of the Cuban 
        people is a sovereign and national right of the citizens of 
        Cuba which must be exercised free of interference by the 
        government of any other country.
          (3) To encourage the Cuban people to empower themselves with 
        a government which reflects the self-determination of the Cuban 
        people.
          (4) To recognize the potential for a difficult transition 
        from the current regime in Cuba that may result from the 
        initiatives taken by the Cuban people for self-determination in 
        response to the intransigence of the Castro regime in not 
        allowing any substantive political or economic reforms, and to 
        be prepared to provide the Cuban people with humanitarian, 
        developmental, and other economic assistance.
          (5) In solidarity with the Cuban people, to provide 
        appropriate forms of assistance--
                  (A) to a transition government in Cuba;
                  (B) to facilitate the rapid movement from such a 
                transition government to a democratically elected 
                government in Cuba that results from an expression of 
                the self-determination of the Cuban people; and
                  (C) to support such a democratically elected 
                government.
          (6) Through such assistance, to facilitate a peaceful 
        transition to representative democracy and a market economy in 
        Cuba and to consolidate democracy in Cuba.
          (7) To deliver such assistance to the Cuban people only 
        through a transition government in Cuba, through a 
        democratically elected government in Cuba, through United 
        States Government organizations, or through United States, 
        international, or indigenous nongovernmental organizations.
          (8) To encourage other countries and multilateral 
        organizations to provide similar assistance, and to work 
        cooperatively with such countries and organizations to 
        coordinate such assistance.
          (9) To ensure that appropriate assistance is rapidly provided 
        and distributed to the people of Cuba upon the institution of a 
        transition government in Cuba.
          (10) Not to provide favorable treatment or influence on 
        behalf of any individual or entity in the selection by the 
        Cuban people of their future government.
          (11) To assist a transition government in Cuba and a 
        democratically elected government in Cuba to prepare the Cuban 
        military forces for an appropriate role in a democracy.
          (12) To be prepared to enter into negotiations with a 
        democratically elected government in Cuba either to return the 
        United States Naval Base at Guantanamo to Cuba or to 
        renegotiate the present agreement under mutually agreeable 
        terms.
          (13) To consider the restoration of diplomatic recognition 
        and support the reintegration of the Cuban government into 
        Inter-American organizations when the President determines that 
        there exists a democratically elected government in Cuba.
          (14) To take steps to remove the economic embargo of Cuba 
        when the President determines that a transition to a 
        democratically elected government in Cuba has begun.
          (15) To assist a democratically elected government in Cuba to 
        strengthen and stabilize its national currency.
          (16) To pursue the extension of free trade arrangements to a 
        free, democratic, and independent Cuba or to seek the creation 
        of an economic community with a free, democratic, and 
        independent Cuba.

SEC. 202. AUTHORIZATION OF ASSISTANCE FOR THE CUBAN PEOPLE.

  (a) Authorization.--
          (1) In general.--The President shall develop a plan for 
        providing economic assistance to Cuba at such time as the 
        President determines that a transition government or a 
        democratically elected government in Cuba (as determined under 
        section 203(c)) is in power.
          (2) Effect on other laws.--Assistance may be provided under 
        this section notwithstanding any other provision of law, except 
        for--
                  (A) this Act;
                  (B) section 620(a)(2) of the Foreign Assistance Act 
                of 1961 (22 U.S.C. 2370(a)(2)); and
                  (C) section 634A of the Foreign Assistance Act of 
                1961 (22 U.S.C. 2394-1) and comparable notification 
                requirements contained in any Act making appropriations 
                for foreign operations, export financing, and related 
                programs.
  (b) Plan for Assistance.--
          (1) Development of plan.--The President shall develop a plan 
        for providing assistance under this section--
                  (A) to Cuba when a transition government in Cuba is 
                in power; and
                  (B) to Cuba when a democratically elected government 
                in Cuba is in power.
          (2) Types of assistance.--Assistance under the plan developed 
        under paragraph (1) shall include the following:
                  (A) Transition government.--(i) Except as provided in 
                clause (ii), assistance to Cuba under a transition 
                government shall be limited to--
                          (I) such food, medicine, medical supplies and 
                        equipment, and assistance to meet emergency 
                        energy needs, as is necessary to meet the basic 
                        human needs of the Cuban people; and
                          (II) assistance described in subparagraph 
                        (C).
                  (ii) Assistance to a transition government in Cuba 
                may include assistance for activities comparable to 
                those set forth in section 498 of the Foreign 
                Assistance Act of 1961 (22 U.S.C. 2295) (other than 
                paragraph (9) of such section).
                  (iii) Only after a transition government in Cuba is 
                in power, remittances by individuals to their relatives 
                of cash or goods, as well as freedom to travel to visit 
                them without any restrictions, shall be permitted.
                  (B) Democratically elected government.--Assistance to 
                a democratically elected government in Cuba shall 
                consist of additional economic assistance, together 
                with assistance described in subparagraph (C). Such 
                economic assistance may include--
                          (i) assistance under chapter 1 of part I 
                        (relating to development assistance), and 
                        chapter 4 of part II (relating to the economic 
                        support fund), of the Foreign Assistance Act of 
                        1961;
                          (ii) assistance under the Agricultural Trade 
                        Development and Assistance Act of 1954;
                          (iii) financing, guarantees, and other forms 
                        of assistance provided by the Export-Import 
                        Bank of the United States;
                          (iv) financial support provided by the 
                        Overseas Private Investment Corporation for 
                        investment projects in Cuba;
                          (v) assistance provided by the Trade and 
                        Development Agency;
                          (vi) Peace Corps programs;
                          (vii) relief of Cuba's external debt; and
                          (viii) other appropriate assistance to carry 
                        out the policy of section 201.
                  (C) Military adjustment assistance.--Assistance to a 
                transition government in Cuba and to a democratically 
                elected government in Cuba shall also include 
                assistance in preparing the Cuban military forces to 
                adjust to an appropriate role in a democracy.
  (c) Strategy for Distribution.--The plan developed under subsection 
(b) shall include a strategy for distributing assistance under the 
plan.
  (d) Distribution.--Assistance under the plan developed under 
subsection (b) shall be provided through United States Government 
organizations and nongovernmental organizations and private and 
voluntary organizations, whether within or outside the United States, 
including humanitarian, educational, labor, and private sector 
organizations.
  (e) International Efforts.--The President shall take the necessary 
steps--
          (1) to seek to obtain the agreement of other countries and of 
        international financial institutions and multilateral 
        organizations to provide to a transition government in Cuba, 
        and to a democratically elected government in Cuba, assistance 
        comparable to that provided by the United States under this 
        Act; and
          (2) to work with such countries, institutions, and 
        organizations to coordinate all such assistance programs.
  (f) Caribbean Basin Initiative.--(1) The President shall determine, 
as part of the assistance plan developed under subsection (b), whether 
or not to designate Cuba as a beneficiary country under section 212 of 
the Caribbean Basin Economic Recovery Act.
  (2) Any designation of Cuba as a beneficiary country under section 
212 of such Act may only be made after a democratically elected 
government in Cuba is in power. Such designation may be made 
notwithstanding any other provision of law.
  (3) The table contained in section 212(b) of the Caribbean Basin 
Economic Recovery Act (19 U.S.C. 2702(b)) is amended by inserting 
``Cuba'' between ``Costa Rica'' and ``Dominica''.
  (g) Trade Agreements and Investment.--The President, upon transmittal 
to Congress of a determination under section 203(c)(3) that a 
democratically elected government in Cuba is in power--
          (1) shall take the necessary steps to extend 
        nondiscriminatory trade treatment (most-favored-nation 
        treatment) to the products of Cuba;
          (2) shall take the necessary steps to enter into a 
        preliminary agreement with such government in Cuba providing 
        for extension of the North American Free Trade Agreement to a 
        free and independent Cuba or to seek the creation of an 
        economic community with a free, democratic, and independent 
        Cuba;
          (3) is authorized to enter into negotiations with a 
        democratically elected government in Cuba to provide for the 
        extension of the North American Free Trade Agreement to Cuba or 
        to seek the creation of an economic community with a free, 
        democratic, and independent Cuba; and
          (4) is authorized to take such other steps as will encourage 
        renewed investment in Cuba.
  (h) Communication With the Cuban People.--The President shall take 
the necessary steps to communicate to the Cuban people the plan for 
assistance developed under this section.
  (i) Report to Congress.--Not later than 180 days after the date of 
the enactment of this Act, the President shall transmit to the 
appropriate congressional committees a report describing in detail the 
plan developed under this section.
SEC. 203. COORDINATION OF ASSISTANCE PROGRAM; IMPLEMENTATION AND 
                    REPORTS TO CONGRESS; REPROGRAMMING.

  (a) Coordinating Official.--The President shall designate a 
coordinating official who shall be responsible for--
          (1) implementing the strategy for distributing assistance 
        described in section 202(b);
          (2) ensuring the speedy and efficient distribution of such 
        assistance; and
          (3) ensuring coordination among, and appropriate oversight 
        by, the agencies of the United States that provide assistance 
        described in section 202(b), including resolving any disputes 
        among such agencies.
  (b) United States-Cuba Council.--Upon making a determination under 
subsection (c)(3) that a democratically elected government in Cuba is 
in power, the President, after consultation with the coordinating 
official, is authorized to designate a United States-Cuba council--
          (1) to ensure coordination between the United States 
        Government and the private sector in responding to change in 
        Cuba, and in promoting market-based development in Cuba; and
          (2) to establish periodic meetings between representatives of 
        the United States and Cuban private sectors for the purpose of 
        facilitating bilateral trade.
  (c) Implementation of Plan; Reports to Congress.--
          (1) Implementation with respect to transition government.--
        Upon making a determination that a transition government in 
        Cuba is in power, the President shall transmit that 
        determination to the appropriate congressional committees and 
        shall, subject to the availability of appropriations, commence 
        the delivery and distribution of assistance to such transition 
        government under the plan developed under section 202(b).
          (2) Reports to congress.--(A) The President shall transmit to 
        the appropriate congressional committees a report setting forth 
        the strategy for providing assistance described in section 
        202(b)(2) (A) and (C) to the transition government in Cuba 
        under the plan of assistance developed under section 202(b), 
        the types of such assistance, and the extent to which such 
        assistance has been distributed in accordance with the plan.
          (B) The President shall transmit the report not later than 90 
        days after making the determination referred to in paragraph 
        (1), except that the President shall transmit the report in 
        preliminary form not later than 15 days after making that 
        determination.
          (3) Implementation with respect to democratically elected 
        government.--The President shall, upon determining that a 
        democratically elected government in Cuba is in power, submit 
        that determination to the appropriate congressional committees 
        and shall, subject to the availability of appropriations, 
        commence the delivery and distribution of assistance to such 
        democratically elected government under the plan developed 
        under section 202(b).
          (4) Annual reports to congress.--Not later than 60 days after 
        the end of each fiscal year, the President shall transmit to 
        the appropriate congressional committees a report on the 
        assistance provided under the plan developed under section 
        202(b), including a description of each type of assistance, the 
        amounts expended for such assistance, and a description of the 
        assistance to be provided under the plan in the current fiscal 
        year.
  (d) Reprogramming.--Any changes in the assistance to be provided 
under the plan developed under section 202(b) may not be made unless 
the President notifies the appropriate congressional committees at 
least 15 days in advance in accordance with the procedures applicable 
to reprogramming notifications under section 634A of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2394-1).

SEC. 204. AUTHORIZATION OF APPROPRIATIONS.

  There are authorized to be appropriated to the President such sums as 
may be necessary to carry out this title.

SEC. 205. TERMINATION OF THE ECONOMIC EMBARGO OF CUBA.

  (a) Presidential Actions.--Upon submitting a determination to the 
appropriate congressional committees under section 203(c)(1) that a 
transition government in Cuba is in power, the President, after 
consulting with the Congress, is authorized to take steps to suspend 
the economic embargo of Cuba to the extent that such action contributes 
to a stable foundation for a democratically elected government in Cuba.
  (b) Suspension of Certain Provisions of Law.--In carrying out 
subsection (a), the President may suspend the enforcement of--
          (1) section 620(a) of the Foreign Assistance Act of 1961 (22 
        U.S.C. 2370(a));
          (2) section 620(f) of the Foreign Assistance Act of 1961 (22 
        U.S.C. 2370(f)) with regard to the ``Republic of Cuba'';
          (3) sections 1704, 1705(d), and 1706 of the Cuban Democracy 
        Act (22 U.S.C. 6003, 6004(d), 6005);
          (4) section 902(c) of the Food Security Act of 1985; and
          (5) the prohibitions on transactions described in part 515 of 
        title 31, Code of Federal Regulations.
  (c) Additional Presidential Actions.--Upon submitting a determination 
to the appropriate congressional committees under section 203(c)(3) 
that a democratically elected government in Cuba is in power, the 
President shall take steps to terminate the economic embargo of Cuba.
  (d) Conforming Amendments.--On the date on which the President 
submits a determination under section 203(c)(3)--
          (1) section 620(a) of the Foreign Assistance Act of 1961 (22 
        U.S.C. 2370(a)) is repealed;
          (2) section 620(f) of the Foreign Assistance Act of 1961 (22 
        U.S.C. 2370(f)) is amended by striking ``Republic of Cuba'';
          (3) sections 1704, 1705(d), and 1706 of the Cuban Democracy 
        Act of 1992 (22 U.S.C. 6003, 6004(d), and 6005) are repealed; 
        and
          (4) section 902(c) of the Food Security Act of 1985 is 
        repealed.
  (e) Review of Suspension of Economic Embargo.--
          (1) Review.--If the President takes action under subsection 
        (a) to suspend the economic embargo of Cuba, the President 
        shall immediately so notify the Congress. The President shall 
        report to the Congress no less frequently than every 6 months 
        thereafter, until he submits a determination under section 
        203(c)(3) that a democratically elected government in Cuba is 
        in power, on the progress being made by Cuba toward the 
        establishment of such a democratically elected government. The 
        action of the President under subsection (a) shall cease to be 
        effective upon the enactment of a joint resolution described in 
        paragraph (2).
          (2) Joint resolutions.--For purposes of this subsection, the 
        term ``joint resolution'' means only a joint resolution of the 
        2 Houses of Congress, the matter after the resolving clause of 
        which is as follows: ``That the Congress disapproves the action 
        of the President under section 205(a) of the Cuban Liberty and 
        Democratic Solidarity (LIBERTAD) Act of 1995 to suspend the 
        economic embargo of Cuba, notice of which was submitted to the 
        Congress on ____.'', with the blank space being filled with the 
        appropriate date.
          (3) Referral to committees.--Joint resolutions introduced in 
        the House of Representatives shall be referred to the Committee 
        on International Relations and joint resolutions introduced in 
        the Senate shall be referred to the Committee on Foreign 
        Relations.
          (4) Procedures.--(A) Any joint resolution shall be considered 
        in the Senate in accordance with the provisions of section 
        601(b) of the International Security Assistance and Arms Export 
        Control Act of 1976.
          (B) For the purpose of expediting the consideration and 
        enactment of joint resolutions, a motion to proceed to the 
        consideration of any joint resolution after it has been 
        reported by the appropriate committee shall be treated as 
        highly privileged in the House of Representatives.
          (C) Not more than 1 joint resolution may be considered in the 
        House of Representatives and the Senate in the 6-month period 
        beginning on the date on which the President notifies the 
        Congress under paragraph (1) of the action taken under 
        subsection (a), and in each 6-month period thereafter.

SEC. 206. REQUIREMENTS FOR A TRANSITION GOVERNMENT.

  For purposes of this Act, a transition government in Cuba is a 
government in Cuba which--
          (1) is demonstrably in transition from communist totalitarian 
        dictatorship to representative democracy;
          (2) has recognized the right to independent political 
        activity and association;
          (3) has released all political prisoners and allowed for 
        investigations of Cuban prisons by appropriate international 
        human rights organizations;
          (4) has ceased any interference with Radio or Television 
        Marti broadcasts;
          (5) makes public commitments to and is making demonstrable 
        progress in--
                  (A) establishing an independent judiciary;
                  (B) dissolving the present Department of State 
                Security in the Cuban Ministry of the Interior, 
                including the Committees for the Defense of the 
                Revolution and the Rapid Response Brigades;
                  (C) respecting internationally recognized human 
                rights and basic freedoms as set forth in the Universal 
                Declaration of Human Rights, to which Cuba is a 
                signatory nation;
                  (D) effectively guaranteeing the rights of free 
                speech and freedom of the press;
                  (E) organizing free and fair elections for a new 
                government--
                          (i) to be held in a timely manner within a 
                        period not to exceed 1 year after the 
                        transition government assumes power;
                          (ii) with the participation of multiple 
                        independent political parties that have full 
                        access to the media on an equal basis, 
                        including (in the case of radio, television, or 
                        other telecommunications media) in terms of 
                        allotments of time for such access and the 
                        times of day such allotments are given; and
                          (iii) to be conducted under the supervision 
                        of internationally recognized observers, such 
                        as the Organization of American States, the 
                        United Nations, and other elections monitors;
                  (F) assuring the right to private property;
                  (G) taking appropriate steps to return to United 
                States citizens (and entities which are 50 percent or 
                more beneficially owned by United States citizens) 
                property taken by the Cuban government from such 
                citizens and entities on or after January 1, 1959, or 
                to provide equitable compensation to such citizens and 
                entities for such property;
                  (H) granting permits to privately owned 
                telecommunications and media companies to operate in 
                Cuba; and
                  (I) allowing the establishment of independent trade 
                unions as set forth in conventions 87 and 98 of the 
                International Labor Organization, and allowing the 
                establishment of independent social, economic, and 
                political associations;
          (6) does not include Fidel Castro or Raul Castro;
          (7) has given adequate assurances that it will allow the 
        speedy and efficient distribution of assistance to the Cuban 
        people;
          (8) permits the deployment throughout Cuba of independent and 
        unfettered international human rights monitors; and
          (9) has extradited or otherwise rendered to the United States 
        all persons sought by the United States Department of Justice 
        for crimes committed in the United States.
SEC. 207. REQUIREMENTS FOR A DEMOCRATICALLY ELECTED GOVERNMENT.

  For purposes of this Act, a democratically elected government in 
Cuba, in addition to continuing to comply with the requirements of 
section 206, is a government in Cuba which--
          (1) results from free and fair elections conducted under the 
        supervision of internationally recognized observers;
          (2) has permitted opposition parties ample time to organize 
        and campaign for such elections, and has permitted full access 
        to the media to all candidates in the elections;
          (3) is showing respect for the basic civil liberties and 
        human rights of the citizens of Cuba;
          (4) has made demonstrable progress in establishing an 
        independent judiciary;
          (5) is substantially moving toward a market-oriented economic 
        system;
          (6) is committed to making constitutional changes that would 
        ensure regular free and fair elections that meet the 
        requirements of paragraph (2); and
          (7) has made demonstrable progress in returning to United 
        States citizens (and entities which are 50 percent or more 
        beneficially owned by United States citizens) property taken by 
        the Cuban government from such citizens and entities on or 
        after January 1, 1959, or providing full compensation for such 
        property in accordance with international law standards and 
        practice.

  TITLE III--PROTECTION OF PROPERTY RIGHTS OF UNITED STATES NATIONALS 
           AGAINST CONFISCATORY TAKINGS BY THE CASTRO REGIME

SEC. 301. STATEMENT OF POLICY.

  The Congress makes the following findings:
          (1) The right of individuals to hold and enjoy property is a 
        fundamental right recognized by the United States Constitution 
        and international human rights law, including the Universal 
        Declaration of Human Rights.
          (2) The illegal confiscation or taking of property by 
        governments, and the acquiescence of governments in the 
        confiscation of property by their citizens, undermines the 
        comity among nations, the free flow of commerce, and economic 
        development.
          (3) It is in the interest of all nations to respect equally 
        the property rights of their citizens and nationals of other 
        countries.
          (4) Nations that provide an effective mechanism for prompt, 
        adequate, and fair compensation for the confiscation of private 
        property will continue to have the support of the United 
        States.
          (5) The United States Government has an obligation to its 
        citizens to provide protection against illegal confiscation by 
        foreign nations and their citizens, including the provision of 
        private remedies.
          (6) Nations that illegally confiscate private property should 
        not be immune to another nation's laws whose purpose is to 
        protect against the confiscation of lawfully acquired property 
        by its citizens.
          (7) Trafficking in illegally acquired property is a crime 
        under the laws of the United States and other nations, yet this 
        same activity is allowed under international law.
          (8) International law, by not providing effective remedies, 
        condones the illegal confiscation of property and allows for 
        the unjust enrichment from the use of confiscated property by 
        governments and private entities at the expense of those who 
        hold legal claim to the property.
          (9) The development of an international mechanism sanctioning 
        those governments and private entities that confiscate and 
        unjustly use private property so confiscated should be a 
        priority objective of United States foreign policy.
SEC. 302. LIABILITY FOR TRAFFICKING IN PROPERTY CONFISCATED FROM UNITED 
                    STATES NATIONALS.

  (a) Civil Remedy.--
          (1) Liability for trafficking.--(A) Except as provided in 
        paragraphs (3) and (4), any person, including any agency or 
        instrumentality of a foreign state in the conduct of a 
        commercial activity, that, after the end of the 6-month period 
        beginning on the date of the enactment of this Act, traffics in 
        confiscated property shall be liable to any United States 
        national who owns the claim to such property for money damages 
        in an amount equal to the sum of--
                  (i) the amount which is the greater of--
                          (I) the amount, if any, certified to the 
                        claimant by the Foreign Claims Settlement 
                        Commission under the International Claims 
                        Settlement Act of 1949, plus interest;
                          (II) the amount determined under section 
                        303(a)(2), plus interest; or
                          (III) the fair market value of that property, 
                        calculated as being the then current value of 
                        the property, or the value of the property when 
                        confiscated plus interest, whichever is 
                        greater; and
                  (ii) reasonable costs and attorneys' fees.
          (B) Interest under subparagraph (A)(i) shall be at the rate 
        set forth in section 1961 of title 28, United States Code, 
        computed by the court from the date of the confiscation of the 
        property involved to the date on which the action is brought 
        under this subsection.
          (2) Presumption in favor of certified claims.--There shall be 
        a presumption that the amount for which a person, including any 
        agency or instrumentality of a foreign state in the conduct of 
        a commercial activity, is liable under clause (i) of paragraph 
        (1)(A) is the amount that is certified under subclause (I) of 
        that clause. The presumption shall be rebuttable by clear and 
        convincing evidence that the amount described in subclause (II) 
        or (III) of that clause is the appropriate amount of liability 
        under that clause.
          (3) Increased liability for prior notice.--Except as provided 
        in paragraph (4), any person, including any agency or 
        instrumentality of a foreign state in the conduct of a 
        commercial activity, that traffics in confiscated property 
        after having received--
                  (A) notice of a claim to ownership of the property by 
                a United States national who owns a claim to the 
                confiscated property, and
                  (B) notice of the provisions of this section,
        shall be liable to that United States national for money 
        damages in an amount which is the sum of the amount equal to 
        the amount determined under paragraph (1)(A)(ii) plus triple 
        the amount determined applicable under subclause (I), (II), or 
        (III) of paragraph (1)(A)(i).
          (4) Applicability.--(A) Except as otherwise provided in this 
        paragraph, actions may be brought under paragraph (1) with 
        respect to property confiscated before, on, or after the date 
        of the enactment of this Act.
          (B) In the case of property confiscated before the date of 
        the enactment of this Act, no United States national may bring 
        an action under this section unless such national acquired 
        ownership of the claim to the confiscated property before such 
        date.
          (C) In the case of property confiscated on or after the date 
        of the enactment of this Act, no United States national who 
        acquired ownership of a claim to confiscated property by 
        assignment for value after such date of enactment may bring an 
        action on the claim under this section.
          (5) Treatment of certain actions.--(A) In the case of any 
        action brought under this section by a United States national 
        who was eligible to file the underlying claim in the action 
        with the Foreign Claims Settlement Commission under title V of 
        the International Claims Settlement Act of 1949 but did not so 
        file the claim, the court may hear the case only if the court 
        determines that the United States national had good cause for 
        not filing the claim.
          (B) In the case of any action brought under this section by a 
        United States national whose claim in the action was timely 
        filed with the Foreign Claims Settlement Commission under title 
        V of the International Claims Settlement Act of 1949 but was 
        denied by the Commission, the court may assess the basis for 
        the denial and may accept the findings of the Commission on the 
        claim as conclusive in the action under this section unless 
        good cause justifies another result.
          (6) Inapplicability of act of state doctrine.--No court of 
        the United States shall decline, based upon the act of state 
        doctrine, to make a determination on the merits in an action 
        brought under paragraph (1).
  (b) Definition.--As used in this subsection, the term ``agency or 
instrumentality of a foreign state'' has the meaning given that term in 
section 1603(b) of title 28, United States Code.
  (c) Jurisdiction.--
          (1) In general.--Chapter 85 of title 28, United States Code, 
        is amended by inserting after section 1331 the following new 
        section:
``Sec. 1331a. Civil actions involving confiscated property

  ``The district courts shall have exclusive jurisdiction of any action 
brought under section 302 of the Cuban Liberty and Democratic 
Solidarity (LIBERTAD) Act of 1995, regardless of the amount in 
controversy.''.
          (2) Conforming amendment.--The table of sections for chapter 
        85 of title 28, United States Code, is amended by inserting 
        after the item relating to section 1331 the following:

``1331a. Civil actions involving confiscated property.''.

  (d) Certain Property Immune From Execution.--Section 1611 of title 
28, United States Code, is amended by adding at the end the following:
  ``(c) Notwithstanding the provisions of section 1610 of this chapter, 
the property of a foreign state shall be immune from attachment and 
from execution in an action brought under section 302 of the Cuban 
Liberty and Democratic Solidarity (LIBERTAD) Act of 1995 to the extent 
the property is a facility or installation used by an accredited 
diplomatic mission for official purposes.''.
  (e) Election of remedies.--
          (1) Election.--Subject to paragraph (2)--
                  (A) any United States national that brings an action 
                under this section may not bring any other civil action 
                or proceeding under the common law, Federal law, or the 
                law of any of the several States, the District of 
                Columbia, or any territory or possession of the United 
                States, that seeks monetary or nonmonetary compensation 
                by reason of the same subject matter; and
                  (B) any person who brings, under the common law or 
                any provision of law other than this section, a civil 
                action or proceeding for monetary or nonmonetary 
                compensation arising out of a claim for which an action 
                would otherwise be cognizable under this section may 
                not bring an action under this section on that claim.
          (2) Treatment of certified claimants.--In the case of any 
        United States national that brings an action under this section 
        based on a claim certified under title V of the International 
        Claims Settlement Act of 1949--
                  (A) if the recovery in the action is equal to or 
                greater than the amount of the certified claim, the 
                United States national may not receive payment on the 
                claim under any agreement entered into between the 
                United States and Cuba settling claims covered by such 
                title, and such national shall be deemed to have 
                discharged the United States from any further 
                responsibility to represent the United States national 
                with respect to that claim;
                  (B) if the recovery in the action is less than the 
                amount of the certified claim, the United States 
                national may receive payment under a claims agreement 
                described in subparagraph (A) but only to the extent of 
                the difference between the amount of the recovery and 
                the amount of the certified claim; and
                  (C) if there is no recovery in the action, the United 
                States national may receive payment on the certified 
                claim under a claims agreement described in 
                subparagraph (A) to the same extent as any certified 
                claimant who does not bring an action under this 
                section.
  (f) Deposit of Excess Payments by Cuba Under Claims Agreement.--Any 
amounts paid by Cuba under any agreement entered into between the 
United States and Cuba settling certified claims under title V of the 
International Claims Settlement Act of 1949 that are in excess of the 
payments made on such certified claims after the application of 
subsection (e) shall be deposited into the United States Treasury.
  (g) Termination of Rights.--
          (1) In general.--All rights created under this section to 
        bring an action for money damages with respect to property 
        confiscated before the date of the enactment of this Act shall 
        cease upon the transmittal to the Congress of a determination 
        of the President under section 203(c)(3).
          (2) Pending suits.--The termination of rights under paragraph 
        (1) shall not affect suits commenced before the date of such 
        termination, and in all such suits, proceedings shall be had, 
        appeals taken, and judgments rendered in the same manner and 
        with the same effect as if this subsection had not been 
        enacted.

SEC. 303. DETERMINATION OF CLAIMS TO CONFISCATED PROPERTY.

  (a) Evidence of Ownership.--
          (1) Conclusiveness of certified claims.--In any action 
        brought under this title, the courts shall accept as conclusive 
        proof of ownership a certification of a claim to ownership that 
        has been made by the Foreign Claims Settlement Commission 
        pursuant to title V of the International Claims Settlement Act 
        of 1949 (22 U.S.C. 1643 and following).
          (2) Claims not certified.--In the case of a claim that has 
        not been certified by the Foreign Claims Settlement Commission 
        before the enactment of this Act, a court may appoint a special 
        master, including the Foreign Claims Settlement Commission, to 
        make determinations regarding the amount and validity of claims 
        to ownership of confiscated property. Such determinations are 
        only for evidentiary purposes in civil actions brought under 
        this title and do not constitute certifications pursuant to 
        title V of the International Claims Settlement Act of 1949.
          (3) Effect of determinations of foreign entities.--In 
        determining ownership, courts shall not accept as conclusive 
        evidence of ownership any findings, orders, judgments, or 
        decrees from administrative agencies or courts of foreign 
        countries or international organizations that invalidate the 
        claim held by a United States national, unless the invalidation 
        was found pursuant to binding international arbitration to 
        which United States national submitted the claim.
  (b) Amendment of the International Claims Settlement Act of 1949.--
Title V of the International Claims Settlement Act of 1949 (22 U.S.C. 
1643 and following) is amended by adding at the end the following new 
section:
  ``evaluation of ownership claims referred by district courts of the 
                             united states
  ``Sec. 514. Notwithstanding any other provision of this title and 
only for purposes of section 302 of the Cuban Liberty and Solidarity 
(LIBERTAD) Act, a United States district court, for fact-finding 
purposes, may refer to the Commission, and the Commission may 
determine, questions of the amount and ownership of a claim by a United 
States national (as defined in section 4 of the Cuban Liberty and 
Solidarity (LIBERTAD) Act) resulting from the confiscation of property 
by the Government of Cuba described in section 503(a), whether or not 
the United States national qualified as a national of the United States 
(as defined in section 502(1)) at the time of the action by the 
Government of Cuba.''.
  (c) Rule of Construction.--Nothing in this Act or section 514 of the 
International Claims Settlement Act of 1949, as added by subsection 
(b), shall be construed--
          (1) to require or otherwise authorize the claims of Cuban 
        nationals who became United States citizens after their 
        property was confiscated to be included in the claims certified 
        to the Secretary of State by the Foreign Claims Settlement 
        Commission for purposes of future negotiation and espousal of 
        claims with a friendly government in Cuba when diplomatic 
        relations are restored; or
          (2) as superseding, amending, or otherwise altering 
        certifications that have been made pursuant to title V of the 
        International Claims Settlement Act of 1949 before the 
        enactment of this Act.

SEC. 304. EXCLUSIVITY OF FOREIGN CLAIMS SETTLEMENT COMMISSION 
                    CERTIFICATION PROCEDURE.

  Title V of the International Claims Settlement Act of 1949 (22 U.S.C. 
1643 and following), as amended by section 303, is further amended by 
adding at the end the following new section:
  ``exclusivity of foreign claims settlement commission certification 
                               procedure
  ``Sec. 515. (a) Subject to subsection (b), neither any national of 
the United States who was eligible to file a claim under section 503 
but did not timely file such claim under that section, nor any national 
of the United States (on the date of the enactment of this section) who 
was not eligible to file a claim under that section, nor any national 
of Cuba, including any agency, instrumentality, subdivision, or 
enterprise of the Government of Cuba or any local government of Cuba in 
place on the date of the enactment of this section, nor any successor 
thereto, whether or not recognized by the United States, shall have a 
claim to, participate in, or otherwise have an interest in, the 
compensation proceeds or other nonmonetary compensation paid or 
allocated to a national of the United States by virtue of a claim 
certified by the Commission under section 507, nor shall any court of 
the United States or any State court have jurisdiction to adjudicate 
any such claim.
  ``(b) Nothing in subsection (a) shall be construed to detract from or 
otherwise affect any rights in the shares of the capital stock of 
nationals of the United States owning claims certified by the 
Commission under section 507.''.
                 TITLE IV--EXCLUSION OF CERTAIN ALIENS

SEC. 401. EXCLUSION FROM THE UNITED STATES OF ALIENS WHO HAVE 
                    CONFISCATED PROPERTY OF UNITED STATES NATIONALS OR 
                    WHO TRAFFIC IN SUCH PROPERTY.

  (a) Grounds for Exclusion.--The Secretary of State, in consultation 
with the Attorney General, shall exclude from the United States any 
alien who the Secretary of State determines is a person who--
          (1) has confiscated, or has directed or overseen the 
        confiscation of, property a claim to which is owned by a United 
        States national, or converts or has converted for personal gain 
        confiscated property, a claim to which is owned by a United 
        States national;
          (2) traffics in confiscated property, a claim to which is 
        owned by a United States national;
          (3) is a corporate officer, principal, or shareholder with a 
        controlling interest of an entity which has been involved in 
        the confiscation of property or trafficking in confiscated 
        property, a claim to which is owned by a United States 
        national; or
          (4) is a spouse, minor child, or agent of a person excludable 
        under paragraph (1), (2), or (3).
  (b) Definitions.--As used in this section, the following terms have 
the following meanings:
          (1) Confiscated; confiscation.--the terms ``confiscated'' and 
        ``confiscation'' refer to--
                  (A) the nationalization, expropriation, or other 
                seizure by foreign governmental authority of ownership 
                or control of property on or after January 1, 1959--
                          (i) without the property having been returned 
                        or adequate and effective compensation 
                        provided; or
                          (ii) without the claim to the property having 
                        been settled pursuant to an international 
                        claims settlement agreement or other mutually 
                        accepted settlement procedure; and
                  (B) the repudiation by foreign governmental authority 
                of, the default by foreign governmental authority on, 
                or the failure by foreign governmental authority to 
                pay, on or after January 1, 1959--
                          (i) a debt of any enterprise which has been 
                        nationalized, expropriated, or otherwise taken 
                        by foreign governmental authority;
                          (ii) a debt which is a charge on property 
                        nationalized, expropriated, or otherwise taken 
                        by foreign governmental authority; or
                          (iii) a debt which was incurred by foreign 
                        governmental authority in satisfaction or 
                        settlement of a confiscated property claim.
          (2) Property.--The term ``property'' does not include claims 
        arising from a territory in dispute as a result of war between 
        United Nations member states in which the ultimate resolution 
        of the disputed territory has not been resolved.
          (3) Traffics.--(A) A person or entity ``traffics'' in 
        property if that person or entity knowingly and intentionally--
                  (i) sells, transfers, distributes, dispenses, 
                brokers, manages, or otherwise disposes of confiscated 
                property, or purchases, leases, receives, possesses, 
                obtains control of, manages, uses, or otherwise 
                acquires or holds an interest in confiscated property,
                  (ii) engages in a commercial activity using or 
                otherwise benefiting from confiscated property, or
                  (iii) causes, directs, participates in, or profits 
                from, trafficking (as described in clauses (i) and 
                (ii)) by another person, or otherwise engages in 
                trafficking (as described in clauses (i) and (ii)) 
                through another person,
        without the authorization of the United States national who 
        holds a claim to the property.
          (B) The term ``traffics'' does not include-
                  (i) the delivery of international telecommunication 
                signals to Cuba that are authorized by section 1705(e) 
                of the Cuban Democracy Act of 1992 (22 U.S.C. 6004(e)); 
                or
                  (ii) the trading or holding of securities publicly 
                traded or held, unless the trading is with or by a 
                person determined by the Secretary of the Treasury to 
                be a specially designated national.
  (c) National Interest Exemption.--This section shall not apply where 
the Secretary of State finds, on a case-by-case basis, that making a 
determination under subsection (a) would be contrary to the national 
interest of the United States.
  (d) Effective Date.--
          (1) In general.--This section applies to aliens seeking to 
        enter the United States on or after the date of the enactment 
        of this Act.
          (2) Trafficking.--This section applies only with respect to 
        acts within the meaning of ``traffics'' that occur on or after 
        the date of the enactment of this Act.
                         Background and Purpose

    H.R. 927, the ``Cuban Liberty and Democratic Solidarity 
(LIBERTAD) Act of 1995,'' as amended, would take proactive 
steps to encourage an early end to the Castro regime, direct 
the President to prepare to support a transition and democratic 
government in Cuba, and provide additional protection for the 
rights of U.S. nationals whose property has been illegally 
confiscated by the Cuban government.
    Fidel Castro is alone in the Americas. Objective and 
respected human rights monitors consistently condemn the brutal 
and systematic repression of his regime, the last dictatorship 
in the region. Amnesty International's 1995 Report, released in 
July 1995, said of Castro's Cuba:

    Some 600 prisoners of conscience were believed to be 
serving sentences of imprisonment. Human rights and political 
activists continue to face frequent short-term detention and 
harassment. Detention and trial procedures for political 
prisoners fall far short of international standards. There were 
frequent reports of ill-treatment in prisons and police 
stations. The authorities were suspected of bearing at least 
partial responsibility for the death by drowning of some 40 
people trying to flee Cuba by boat.

    The Inter-American Commission on Human Rights (IACHR), in 
its 1994 annual report, observed:

    As a result, the information gathered by the IACHR during 
the period covered by this report leads it to believe that the 
human rights situation in Cuba is extremely serious. The fact 
is that the deterioration in living conditions, the repressive 
control exercised by the State through the security agencies 
against individuals and groups who differ with the regime and 
the extreme economic difficulties that the Cuban people are 
suffering caused--in the course of 1994--a mass exodus of 
persons who put out to sea on makeshift rafts in search of new 
horizons, despite the fact that they were taking their lives in 
their hands by doing so. Once again, the [IACHR] expresses its 
deep concern about the lack of civil and political rights and 
the continuous deterioration of economic, social and cultural 
rights. . . .
    The [IACHR] accordingly considers that the Cuban crisis 
has, primarily, deep internal roots that affect not only the 
economic, political and social sphere, but also are to be found 
in all the country's institutions in general. The factors that 
have contributed to this are, essentially, the subordination to 
the political branch of the entire Cuban social dimension, the 
repressive policy of the regime . . ., coupled with a system 
that excludes any differing viewpoint and the absence of 
effective guarantees that would enable persons to assert their 
rights vis-a-vis the State.

Taking these objective reports into account, the Committee 
believes that the international community is compelled by 
humanitarian considerations to take proactive steps to deny the 
Cuban regime the means of clinging to power so that the Cuban 
people can liberate themselves and join the burgeoning 
democratic community in the Americas.
    H.R. 927, as reported, also is based on the conclusion that 
none of Castro's superficial economic ``openings,'' adopted 
merely to scrape together hard currency for the government, 
justify a hair-pin turn in U.S. policy toward Cuba. Economic 
development is not possible without private property, and 
property rights do not exist in Cuba today. H.R. 927, as 
reported, protects property rights and undermines the lawless 
exploitation of property that jeopardizes prospects for future 
trade and investment.
    Opening up trade in the absence of fundamental economic 
reforms risks resuscitating a regime that is still the most 
powerful obstacle to democratic and free market reform. The 
course of action prescribed by H.R. 927, as amended, preserves 
U.S. credibility with the Cuban people as one of the few 
countries not willing to put aside what it knows about the 
Castro regime in exchange for mythical market-share. H.R. 927, 
as amended, seeks to break the status quo by extending an offer 
of broad U.S. support for a peaceful transition and providing 
disincentives to investment in Cuba by companies whose ventures 
might otherwise buoy the regime by exploiting the labor of the 
Cuban people and the property of U.S. citizens whose property 
in Cuba was wrongfully confiscated.

Title I, Enforcing U.S. Law to Encourage an Early End to the Castro 
        Regime

    Title I would tighten loopholes in the U.S. embargo 
(continuing a process begun by the Cuban Democracy Act of 1992) 
by, inter alia, urging the President to redouble efforts to 
encourage foreign countries to restrict trade and credit 
relations with Cuba (sec. 102); requiring full enforcement of 
the Cuban Assets Control Regulations (sec. 102(c)); prohibiting 
a U.S. national or agency from knowingly extending a ``loan, 
credit, or other financing'' to finance transactions involving 
any property owned by a U.S. national that was confiscated by 
the Cuban government (sec. 103); and strengthening existing 
U.S. laws prohibiting the reexport of Cuban sugar to the United 
States by requiring a certification of origin by the exporter 
and authorizing the seizure of such product in the case of a 
false certification (sec. 109).
    Title I would also seek to cut off or prevent support for 
the Castro regime, particularly by organizations and countries 
that receive funds from the United States, by, inter alia, 
urging the President to apply existing law by immediately 
withholding U.S. assistance from countries that are undermining 
the U.S. embargo by providing aid to or concessional trade with 
Cuba (sec. 102(a)); requiring the President to reduce U.S. 
assistance to states of the former Soviet Union by an amount 
equal to assistance or credits provided by that state to Cuba 
for use of facilities used to spy on the United States (subject 
to a national security waiver and certification that the 
Russians are not sharing intelligence with the Cubans) (sec. 
106(d)); seeking to ensure that the current Cuban government 
cannot join or benefit from membership in international 
financial institutions (such as the World Bank, International 
Monetary Fund, the Inter-American Development Bank, etc. (sec. 
104) or the Organization of American States (OAS) (sec. 105); 
and requiring an annual report to Congress on all third-country 
assistance, trade, joint ventures, etc., with Cuba (sec. 108).
    Title I also seeks to broaden current U.S. support for and 
communication with the Cuban people by, inter alia, explicitly 
authorizing U.S. support for democracy-building efforts within 
Cuba, such as assistance to victims of political repression, 
assistance to human rights groups, the deployment of 
international human rights monitors, etc. (sec. 110); directing 
the early conversion of Television Marti to ultra-high 
frequency (UHF) to broaden its availability in Cuba (sec. 107); 
and directing the President to urge the OAS to create a special 
fund to support the immediate deployment of human rights and 
election observers in Cuba (sec. 110).
Title II, Preparing Now to Support a Democratic Transition in Cuba

    Title II seeks to prepare for the inevitable democratic 
transition in Cuba by, inter alia, stating U.S. policy to 
support the self-determination of the Cuban people, which must 
be exercised without interference by any government (sec. 201); 
authorizing the President to develop a plan for providing 
specific types of U.S. assistance to a transition government 
and to a democratically-elected government (sec. 202), with a 
clear list of characteristics defining what constitutes an 
eligible government (secs. 206 and 207); defining steps toward 
the normalization of U.S. relations with a reformed Cuban 
government, including lifting the embargo (sec. 205); and 
directing the President to name a coordinating official to 
implement inter-agency assistance at the appropriate time and a 
U.S.-Cuba Council to promote private sector development and 
bilateral trade (sec. 203(a) and (b)).

Titles III and IV, Protecting U.S. Property Claimants and Discouraging 
        Ventures that Resuscitate the Castro Regime

    Titles III and IV seek to protect the interests of U.S. 
nationals whose property has been confiscated illegally by 
making persons or companies that knowingly and intentionally 
traffic in confiscated property of U.S. nationals in Cuba 
(beginning six months after the date of enactment) liable for 
damages in U.S. District Court (title III), and by excluding 
from entry into the United States any person who trafficks in 
confiscated property of U.S. nationals (title IV).
    These provisions are intended primarily to create a 
``chilling effect'' that will deny the current Cuban regime 
venture capital, discourage third-country nationals from 
seeking to profit from illegally confiscated property, and help 
preserve such property until such time as the rightful owners 
can successfully assert their claim. It should be noted that 
title III is written to preclude claims that might lead average 
Cubans on the island to misinterpret this law as intended to 
expel them from their homes--one of the many misleading 
statements that the Cuban regime and its supporters are making 
about this legislation.

                            Committee Action

    H.R. 927 was introduced on February 14, 1995, by 
Representative Dan Burton, Chairman of the Subcommittee on the 
Western Hemisphere of the Committee on International Relations; 
original cosponsors of this legislation include Representatives 
Diaz-Balart, Ros-Lehtinen, Torricelli, Menendez, DeLay, 
Ballenger, Solomon, Goss, Smith (NJ), King, Ewing, Gallegly, 
Deutsch, Hansen, Barton, Rohrabacher, Funderburk, Sam Johnson, 
Vucanovich, Petri, Meek, and Gilchrest. Additional cosponsors 
of this legislation include Representatives Engel, Knollenberg, 
Wilson, Foley, Bartlett, McCollum, Royce, Dornan, Calvert, 
Shaw, Gutierrez, Duncan, Salmon, Sanford, Thurman, 
Frelinghuysen, Kim, Chabot, Burr, Andrews, and English.
    On January 25, 1995, the Subcommittee on the Western 
Hemisphere held a hearing on the human rights situation in 
Cuba, including the sinking of the tugboat 13th of March.
    Witnesses for this hearing included: Rep. Lincoln Diaz 
Balart, U.S. Congressman; Janette Hernandez-Gutierrez, survivor 
of the 13th of March; Almanza Romero; Sergio Perodin, survivor; 
Hon. Michael Skol, Principal Deputy Assistant Secretary of 
State for Inter-American Affairs; Jay Fernandez, Valladares 
Foundation; and Ninoska Perez Castellon, Cuban American 
National Foundation.
    On February 23, 1995, the Subcommittee on the Western 
Hemisphere held hearing on the Cuba and U.S. policy.
    Witnesses for this hearing included: Dr. Constantine 
Menges, George Washington University; Jorge Mas Canosa, Cuban 
American Foundation; Mark Falcoff, American Enterprise 
Institute; and Hon. Otto Reich, U.S.-Cuba Business Council; 
Gillian Gunn, the Cuba Project of Georgetown University.
    On March 16, 1995, the Subcommittee on the Western 
Hemisphere held hearing on H.R. 927, the ``Cuban Liberty and 
Democratic Solidarity (LIBERTAD) Act of 1995.''
    Witnesses for this hearing included: Rep. Lincoln Diaz 
Balart, U.S. Congressman; Rep. Charles Rangel, U.S. 
Congressman; Hon. Alexander Watson, Assistant Secretary of 
State for Inter-American Affairs; Richard Newcomb, Office of 
Foreign Assets Control, Department of Treasury; Frank Calzon, 
Freedom House; Pablo Reyes Martinez, Dissident Journalist; Col. 
Juan Montes, U.S. Army (Ret.).
    On March 22, 1995, the Subcommittee on the Western 
Hemisphere held a mark-up of H.R. 927, the ``Cuban Liberty and 
Democratic Solidarity (LIBERTAD) Act of 1995.''
    On May 18, 1995, the Subcommittee on the Western Hemisphere 
held a hearing on the Clinton Administration's reversal of U.S. 
immigration policy.
    Witnesses for this hearing included: Hon. Peter Tarnoff, 
Under Secretary of State for Political Affairs; Rear Admiral 
Norman T. Saunders, U.S. Coast Guard; Commissioner Doris 
Meissner, U.S. Immigration and Naturalization Service; Gen. 
John Sheehan, Commander in Chief U.S. Atlantic Command, U.S. 
Army; Hon. Otto Reich, Center for Strategic and International 
Studies; Jorge Mas Canosa, Cuban American National Foundation; 
Hon. Elliot Abrams, The Hudson Institute; J. Raymond Molina, 
The Broad Front for Freedom of Cuba; Jay Fernandez, Valladares 
Foundation; Frank Calzon, Freedom House.

            Roll Call Votes and Amendments and Final Passage

    In compliance with clause (2)(l)(2)(B) of rule XI of the 
Rules of the House of Representatives, the record of committee 
roll call votes taken on final passage or amendments during the 
committee's consideration of H.R. 927, as amended, is set out 
on the following pages, as is a report of the committee's final 
action on the bill.

      Description of Amendment, Motion, Order or Other Proposition
    Hamilton amendment to the Burton amendment in the nature of 
a substitute to delete Titles III and IV (relating respectively 
to a right of action against certain persons who have 
trafficked in confiscated property, and to the exclusion from 
the United States of certain persons who have trafficked in 
confiscated property).

----------------------------------------------------------------------------------------------------------------
     Name and State          Aye       No      Present        Name and State          Aye       No      Present 
----------------------------------------------------------------------------------------------------------------
Benjamin A. Gilman,       ........        X   .........  Lee H. Hamilton, Ind....        X   ........  .........
 N.Y., Chmn.                                                                                                    
William F. Goodling, Pa.  ........  ........  .........  Sam Gejdenson, Conn.....        X   ........  .........
James A. Leach, Iowa....  ........  ........  .........  Tom Lantos, Calif.......  ........  ........  .........
Toby Roth, Wis..........  ........        X   .........  Robert G. Torricelli,     ........        X   .........
                                                          N.J.                                                  
Henry J. Hyde, Ill......  ........        X   .........  Howard L. Berman, Calif.        X   ........  .........
Doug Bereuter, Nebr.....  ........  ........  .........  Gary L. Ackerman, N.Y...  ........        X   .........
Christopher H. Smith,     ........        X   .........  Harry Johnston, Fla.....        X   ........  .........
 N.J.                                                                                                           
Dan Burton, Ind.........  ........        X   .........  Eliot L. Engel, N.Y.....  ........  ........  .........
Jan Meyers, Kans........  ........        X   .........  Eni F.H. Faleomavaega,    ........  ........  .........
                                                          Am. Samoa.                                            
Elton Gallegly, Calif...  ........        X   .........  Matthew G. Martinez,            X   ........  .........
                                                          Calif.                                                
Ileana Ros-Lehtinen, Fla  ........        X   .........  Donald M. Payne, N.J....  ........  ........  .........
Cass Ballenger, N.C.....  ........        X   .........  Robert E. Andrews, N.J..  ........  ........  .........
Dana Rohrabacher, Calif.  ........        X   .........  Robert Menendez, N.J....  ........        X   .........
Donald A. Manzullo, Ill.  ........        X   .........  Sherrod Brown, Ohio.....  ........        X   .........
Edward R. Royce, Calif..  ........        X   .........  Cynthia A. McKinney, Ga.  ........  ........  .........
Peter T. King, N.Y......  ........        X   .........  Alcee L. Hastings, Fla..  ........  ........  .........
Jay Kim, Calif..........  ........  ........  .........  Albert Russell Wynn, Md.  ........        X   .........
Sam Brownback, Kans.....  ........        X   .........  Michael R. McNulty, N.Y.  ........  ........  .........
David Funderburk, N.C...  ........        X   .........  James P. Moran, Va......        X   ........  .........
Steven J. Chabot, Ohio..  ........        X   .........  Victor Frazer, V.I......  ........  ........  .........
Marshall ``Mark''         ........        X   .........  ........................  ........  ........  .........
 Sanford, S.C.                                                                                                  
Matt Salmon, Ariz.......  ........        X   .........  ........................  ........  ........  .........
Amo Houghton............  ........  ........  .........  ........................  ........  ........  .........
----------------------------------------------------------------------------------------------------------------

    Roth en bloc amendment to the Burton amendment in the 
nature of a substitute to delete certain elements from those 
which had to be included in an assistance plan prepared by the 
President, and for other purposes.

----------------------------------------------------------------------------------------------------------------
     Name and State          Aye       No      Present        Name and State          Aye       No      Present 
----------------------------------------------------------------------------------------------------------------
Benjamin A. Gilman,             X   ........  .........  Lee H. Hamilton, Ind....        X   ........  .........
 N.Y., Chmn.                                                                                                    
William F. Goodling, Pa.        X   ........  .........  Sam Gejdenson, Conn.....  ........        X   .........
James A. Leach, Iowa....  ........  ........  .........  Tom Lantos, Calif.......  ........  ........  .........
Toby Roth, Wis..........        X   ........  .........  Robert G. Torricelli,     ........        X   .........
                                                          N.J.                                                  
Henry J. Hyde, III......  ........  ........  .........  Howard L. Berman, Calif.  ........        X   .........
Doug Bereuter, Nebr.....  ........  ........  .........  Gary L. Ackerman, N.Y...  ........        X   .........
Christopher H. Smith,     ........        X   .........  Harry Johnston, Fla.....        X   ........  .........
 N.J.                                                                                                           
Dan Burton, Ind.........  ........        X   .........  Eliot L. Engel, N.Y.....  ........        X   .........
Jan Meyers, Kans........        X   ........  .........  Eni F.H. Faleomavaega,    ........  ........  .........
                                                          Am. Samoa.                                            
Elton Gallegly, Calif...        X   ........  .........  Matthew G. Martinez,            X   ........  .........
                                                          Calif.                                                
IIeana Ros-Lehtinen, Fla  ........        X   .........  Donald M. Payne, N.J....  ........        X   .........
Cass Ballenger, N.C.....        X   ........  .........  Robert E. Andrews, N.J..  ........        X   .........
Dana Rohrabacher, Calif.        X   ........  .........  Robert Menendez, N.J....  ........        X   .........
Donald A. Manzullo, III.        X   ........  .........  Sherrod Brown, OH.......  ........        X   .........
Edward R. Royce, Calif..        X   ........  .........  Cynthia A. McKinney, Ga.  ........  ........  .........
Peter T. King, N.Y......  ........        X   .........  Alcee L. Hastings, Fla..  ........        X   .........
Jay Kim, Calif..........        X   ........  .........  Albert Russell Wynn, Md.  ........        X   .........
Sam Brownback, Kans.....  ........  ........  .........  Michael R. McNulty, N.Y.  ........        X   .........
David Funderburk, N.C...  ........        X   .........  James P. Moran, Va......        X   ........  .........
Steven J. Chabot, Ohio..        X   ........  .........  Victor Frazer, V.I......  ........  ........  .........
Marshall ``Mark''         ........        X   .........                                                         
 Sanford, S.C.                                                                                                  
Matt Salmon, Ariz.......        X   ........  .........                                                         
Amo Houghton, N.Y.......        X   ........  .........                                                         
----------------------------------------------------------------------------------------------------------------


    Hamilton amendment to the Burton amendment in the nature of 
a substitute to delete Titles III and IV (relating respectively 
to a right of action against certain persons who have 
trafficked in confiscated property, and to the exclusion from 
the United States of certain persons who have trafficked in 
confiscated property), on reconsideration.

----------------------------------------------------------------------------------------------------------------
     Name and State          Aye       No      Present        Name and State          Aye       No      Present 
----------------------------------------------------------------------------------------------------------------
Benjamin A. Gilman,       ........        X   .........  Lee H. Hamilton, Ind....        X   ........  .........
 N.Y., Chmn.                                                                                                    
William F. Goodling, Pa.  ........        X   .........  Sam Gejdenson, Conn.....        X   ........  .........
James A. Leach, Iowa....  ........  ........  .........  Tom Lantos, Calif.......  ........  ........  .........
Toby Roth, Wis..........  ........        X   .........  Robert G. Torricelli,     ........        X   .........
                                                          N.J.                                                  
Henry J. Hyde, III......  ........  ........  .........  Howard L. Berman, Calif.        X   ........  .........
Doug Bereuter, Nebr.....  ........  ........  .........  Gary L. Ackerman, N.Y...  ........        X   .........
Christopher H. Smith,     ........        X   .........  Harry Johnston, Fla.....        X   ........  .........
 N.J.                                                                                                           
Dan Burton, Ind.........  ........        X   .........  Eliot L. Engel, N.Y.....  ........        X   .........
Jan Meyers, Kans........  ........        X   .........  Eni F.H. Faleomavaega,    ........  ........  .........
                                                          Am. Samoa.                                            
Elton Gallegly, Calif...  ........        X   .........  Matthew G. Martinez,            X   ........  .........
                                                          Calif.                                                
IIeana Ros-Lehtinen, Fla  ........        X   .........  Donald M. Payne, N.J....        X   ........  .........
Cass Ballenger, N.C.....  ........        X   .........  Robert E. Andrews, N.J..  ........        X   .........
Dana Rohrabacher, Calif.  ........        X   .........  Robert Menendez, N.J....  ........        X   .........
Donald A. Manzullo, III.  ........        X   .........  Sherrod Brown, Ohio.....  ........        X   .........
Edward R. Royce, Calif..  ........        X   .........  Cynthia A. McKinney, Ga.  ........  ........  .........
Peter T. King, N.Y......  ........        X   .........  Alcee L. Hastings, Fla..        X   ........  .........
Jay Kim, Calif..........  ........        X   .........  Albert Russell Wynn, Md.  ........        X   .........
Sam Brownback, Kans.....  ........        X   .........  Michael R. McNulty, N.Y.  ........        X   .........
David Funderburk, N.C...  ........        X   .........  James P. Moran, Va......        X   ........  .........
Steven J. Chabot, Ohio..  ........        X   .........  Victor Frazer, V.I......  ........  ........  .........
Marshall ``Mark''         ........        X   .........                                                         
 Sanford, S.C.                                                                                                  
Matt Salmon, Ariz.......  ........        X   .........                                                         
Amo Houghton, N.Y.......        X   ........  .........                                                         
----------------------------------------------------------------------------------------------------------------


    The Burton amendment in the nature of a substitute, as 
amended.

----------------------------------------------------------------------------------------------------------------
     Name and State          Aye       No      Present        Name and State          Aye       No      Present 
----------------------------------------------------------------------------------------------------------------
Benjamin A. Gilman,             X   ........  .........  Lee H. Hamilton, Ind....  ........        X   .........
 N.Y., Chmn.                                                                                                    
William F. Goodling, Pa.        X   ........  .........  Sam Gejdenson, Conn.....  ........        X   .........
James A. Leach, Iowa....  ........  ........  .........  Tom Lantos, Calif.......  ........  ........  .........
Toby Roth, Wis..........  ........  ........  .........  Robert G. Torricelli,           X   ........  .........
                                                          N.J.                                                  
Henry J. Hyde, Ill......  ........  ........  .........  Howard L. Berman, Calif.  ........  ........  .........
Doug Bereuter, Nebr.....  ........  ........  .........  Gary L. Ackerman, N.Y...        X   ........  .........
Christopher H. Smith,           X   ........  .........  Harry Johnston, Fla.....  ........        X   .........
 N.J.                                                                                                           
Dan Burton, Ind.........        X   ........  .........  Eliot L. Engel, N.Y.....        X   ........  .........
Jan Meyers, Kans........        X   ........  .........  Eni F.H. Faleomavaega,    ........  ........  .........
                                                          Am. Samoa.                                            
Elton Gallegly, Calif...        X   ........  .........  Matthew G. Martinez,      ........  ........  .........
                                                          Calif.                                                
Ileana Ros-Lehtinen, Fla        X   ........  .........  Donald M. Payne, N.J....  ........        X   .........
Cass Ballenger, N.C.....        X   ........  .........  Robert E. Andrews, N.J..        X   ........  .........
Dana Rohrabacher, Calif.        X   ........  .........  Robert Menendez, N.J....        X   ........  .........
Donald A. Manzullo, Ill.        X   ........  .........  Sherrod Brown, Ohio.....  ........  ........  .........
Edward R. Royce, Calif..        X   ........  .........  Cynthia A. McKinney, Ga.  ........  ........  .........
Peter T. King, N.Y......        X   ........  .........  Alcee L. Hastings, Fla..        X   ........  .........
Jay Kim, Calif..........        X   ........  .........  Albert Russell Wynn, Md.  ........        X   .........
Sam Brownback, Kans.....        X   ........  .........  Michael R. McNulty, N.Y.        X   ........  .........
David Funderburk, N.C...        X   ........  .........  James P. Moran, Va......  ........        X   .........
Steven J. Chabot, Ohio..        X   ........  .........  Victor Frazer, V.I......  ........  ........  .........
Marshall ``Mark''               X   ........  .........                                                         
 Sanford, S.C.                                                                                                  
Matt Salmon, Ariz.......        X   ........  .........                                                         
Amo Houghton, N.Y.......        X   ........  .........                                                         
----------------------------------------------------------------------------------------------------------------


    The Burton motion that the bill be reported to the House 
with the recommendation that the bill, as amended, do pass.

----------------------------------------------------------------------------------------------------------------
     Name and State          Aye       No      Present        Name and State          Aye       No      Present 
----------------------------------------------------------------------------------------------------------------
Benjamin A. Gilman,             X   ........  .........  Lee H. Hamilton, Ind....  ........        X   .........
 N.Y., Chmn.                                                                                                    
William F. Goodling, Pa.        X   ........  .........  Sam Gejdenson, Conn.....  ........        X   .........
James A. Leach, Iowa....  ........  ........  .........  Tom Lantos, Calif.......  ........  ........  .........
Toby Roth, Wis..........  ........        X   .........  Robert G. Torricelli,           X   ........  .........
                                                          N.J.                                                  
Henry J. Hyde, III......        X   ........  .........  Howard L. Berman, Calif.  ........  ........  .........
Doug Bereuter, Nebr.....  ........  ........  .........  Gary L. Ackerman, N.Y...        X   ........  .........
Christopher H. Smith,           X   ........  .........  Harry Johnston, Fla.....  ........        X   .........
 N.J.                                                                                                           
Dan Burton, Ind.........        X   ........  .........  Eliot L. Engel, N.Y.....        X   ........  .........
Jan Meyers, Kans........        X   ........  .........  Eni F.H. Faleomavaega,    ........  ........  .........
                                                          Am. Samoa.                                            
Elton Gallegly, Calif...        X   ........  .........  Matthew G. Martinez,      ........        X   .........
                                                          Calif.                                                
IIeana Ros-Lehtinen, Fla        X   ........  .........  Donald M. Payne, N.J....  ........        X   .........
Cass Ballenger, N.C.....        X   ........  .........  Robert E. Andrews, N.J..        X   ........  .........
Dana Rohrabacher, Calif.        X   ........  .........  Robert Menendez, N.J....        X   ........  .........
Donald A. Manzullo, Ill.        X   ........  .........  Sherrod Brown, Ohio.....        X   ........  .........
Edward R. Royce, Calif..        X   ........  .........  Cynthia A. McKinney, Ga.  ........  ........  .........
Peter T. King, N.Y......        X   ........  .........  Alcee L. Hastings, Fla..        X   ........  .........
Jay Kim, Calif..........        X   ........  .........  Albert Russell Wynn, Md.  ........        X   .........
Sam Brownback, Kans.....        X   ........  .........  Michael R. McNulty, N.Y.        X   ........  .........
David Funderburk, N.C...        X   ........  .........  James P. Moran, Va......  ........        X   .........
Steven J. Chabot, Ohio..        X   ........  .........  Victor Frazer, V.I......  ........        X   .........
Marshall ``Mark''               X   ........  .........  ........................  ........  ........  .........
 Sanford, S.C..                                                                                                 
Matt Salmon, Ariz.......        X   ........  .........  ........................  ........  ........  .........
Amo Houghton, N.Y.......        X   ........  .........  ........................  ........  ........  .........
----------------------------------------------------------------------------------------------------------------

                      Section-by-Section Analysis

Section 1. Short title; table of contents

    This section states that this Act may be cited as the 
``Cuban Liberty and Democratic Solidarity (LIBERTAD) Act of 
1995.'' ``Libertad'' is Spanish for ``liberty.'' Section 1 also 
provides a table of contents for this Act.

Section 2. Findings

    This section sets forth findings of the Congress with 
respect to Cuba as well as U.S. policy aimed at liberating the 
Cuban people from the dictatorship of Fidel Castro. Among the 
key findings are the following:
    The economy of Cuba has experienced a decline of at least 
60 percent in the last 5 years as a result of the end of its 
subsidization by the former Soviet Union of between $5-6 
billion annually, 36 years of Communist tyranny and economic 
mismanagement by the Castro government, the extreme decline in 
trade between Cuba and the countries of the former Soviet bloc, 
and the stated policy of the Russian Government and the 
countries of the former Soviet bloc to conduct economic 
relations with Cuba on strictly commercial terms.
    The repression of the Cuban people, including a ban on free 
and fair democratic elections, and continuing violation of 
fundamental human rights has isolated the Cuban regime as the 
only nondemocratic government in the Western Hemisphere.
    The consistent policy of the United States toward Cuba 
since the beginning of the Castro regime, carried out by both 
Democratic and Republican administrations, has sought to keep 
faith with the people of Cuba, and has been effective in 
sanctioning the totalitarian Castro regime.
    The Cuban Democracy Act of 1992 calls upon the President to 
encourage the governments of countries that conduct trade with 
Cuba to restrict their trade and credit relations with Cuba.
    The Castro government threatens international peace and 
security by engaging in acts of armed subversion and terrorism 
such as the training and supplying of groups dedicated to 
international violence. The Castro government continues to 
utilize blackmail, such as the immigration crisis with which it 
threatened the United States in the summer of 1994, and other 
unacceptable and illegal forms of conduct to influence the 
actions of sovereign states in the Western Hemisphere in 
violation of the Charter of the Organization of American 
States, other international agreements and international law. 
For the past 36 years, the Cuban Government has posed and 
continues to pose a national security threat against the United 
States.
    The Cuban people deserve to be assisted in a decisive 
manner to end the tyranny that has oppressed them for 36 years 
and the continued failure to do so constitutes ethically 
improper conduct by the international community.

Section 3. Purposes

    This section sets out the following purposes of this 
legislation: to assist the Cuban people in regaining their 
freedom and prosperity, as well as in joining the community of 
democracies flourishing in this Hemisphere; to seek 
international sanctions against the Castro government in Cuba; 
to encourage the holding of free and fair, democratic elections 
in Cuba, conducted under the supervision of internationally 
recognized observers; to develop a plan for furnishing 
assistance to a transition government and, subsequently, to a 
democratically elected government when such governments meet 
the eligibility requirements of this Act; to protect property 
rights abroad of United States nationals; and to provide for 
the national security of the United States in the face of 
threats from the Castro government of terrorism, theft of 
property from United States nationals, and domestic repression 
from which refugees flee to the United States.

Section 4. Definitions

    This section sets forth definitions of terms used in the 
Act. Among the key terms defined in this section are the 
following:
            Confiscated
    For purposes of titles I and III, the term ``confiscated'' 
refers to the nationalization, expropriation, or other seizure 
by the Cuban government of ownership or control of property on 
or after January 1, 1959, without adequate and effective 
compensation or settlement, and the repudiation or default by 
the Cuban government on certain debts.
            Economic embargo of Cuba
    The term ``economic embargo of Cuba'' refers to the 
economic embargo imposed against Cuba pursuant to section 
620(a) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2370(a)), section 5(b) of the Trading With the Enemy Act (50 
U.S.C. App. 5(b)), the International Emergency Economic Powers 
Act (50 U.S.C. 1701 and following), and the Export 
Administration Act of 1979 (50 U.S.C. App. 2401 and following), 
as modified by the Cuban Democracy Act of 1992 (22 U.S.C. 6001 
and following).
            Property
    The term ``property'' means any property (including 
intellectual property), real, personal or mixed, tangible or 
intangible, including any present, future, or contingent 
rights, security, or other interest therein, including any 
leasehold interest. For purposes of the right of action 
established in title III, ``property'' is defined to exclude 
most residential properties.
            Traffics
    For purposes of title III, a person ``traffics'' in 
property if that person knowingly and intentionally sells, 
transfers, distributes, dispenses, brokers, manages, or 
otherwise disposes of confiscated property, or purchases, 
leases, receives, possesses, obtains control of, manages, uses, 
or otherwise acquires an interest in confiscated property; 
engages in a commercial activity using such property; or 
participates indirectly in such activities through another 
person. The delivery of telecommunications signals to Cuba 
under the Cuban Democracy Act of 1992 and most stock or mutual 
fund transactions are expressly exempted.
            United States national
    The term ``United States national'' means any United States 
citizen or any other legal entity which is organized under U.S. 
law and has its principal place of business in the United 
States. Persons who were not United States citizens at the time 
their property in Cuba was confiscated but who subsequently 
became United States citizens are included within the 
definition of a United States national.
        Title I--Seeking Sanctions Against the Castro Government

Section 101. Statement of policy

    Section 101 expresses the sense of the Congress, inter 
alia, that the acts of the Castro government, including its 
massive, systematic, and extraordinary violations of human 
rights, are a threat to international peace and that the 
President should propose and seek a U.N. Security Council vote 
on a mandatory international embargo against the totalitarian 
government of Cuba pursuant to chapter VII of the Charter of 
the United Nations, which is similar to measures taken by the 
United States with respect to Haiti.

Section 102. Enforcement of the economic embargo of Cuba

    Section 102 addresses a profound concern of the committee 
that executive branch agencies are not vigorous in their 
enforcement of certain provisions of the U.S. embargo on Cuba 
or in their advocacy of U.S. policy before foreign governments. 
The explicit mandates in this legislation make clear 
congressional intent that U.S. law be enforced fully and, 
thereby, provide a basis for strict congressional oversight of 
executive branch enforcement measures henceforth.
    This section reaffirms section 1704(a) of the Cuban 
Democracy Act of 1992, which states the President should 
encourage foreign countries to restrict trade and credit 
relations with Cuba. This section also urges the President to 
take immediate steps to apply the sanctions described in 
section 1704(b) of such Act against countries assisting Cuba; 
states that the Secretary of State shall ensure that U.S. 
diplomatic personnel communicate the reasons for the U.S. 
economic embargo on Cuba and urge foreign governments to 
cooperate more effectively with the embargo; urges the full 
enforcement of the Cuban Assets Control Regulations in part 515 
of title 31, Code of Federal Regulations; adds ``debt-for-
equity swaps'' to transactions covered under the Cuban 
Democracy Act of 1992; subjects persons violating travel 
restrictions to civil penalties and forfeiture of property by 
amending Section 16 of the Trading With the Enemy Act (in most 
cases, exempting news gathering, research, religious, or human 
rights groups).

Section 103. Prohibition against indirect financing of the Castro 
        dictatorship

    This section prohibits a U.S. national, agency, or 
permanent resident alien from knowingly extending any loan, 
credit, or other financing to finance transactions involving 
any property confiscated by the Cuban government the claim to 
which is owned by a U.S. national; subjects violators of this 
prohibition to penalties under the Cuban Assets Control 
Regulations; and terminates this prohibition when the U.S. 
embargo is lifted.

Section 104. United States opposition to Cuban membership in 
        international financial institutions

    This section seeks to ensure that the current Cuban 
government cannot join or benefit from membership in 
international financial institutions (such as the World Bank, 
International Monetary Fund, the Inter-American Development 
Bank, etc.). This section:
    States that the Secretary of the Treasury shall instruct 
the United States executive director to each international 
financial institution to use the voice and vote of the United 
States to oppose the admission of Cuba as a member of such 
institution until a democratically elected government is in 
power in Cuba (as defined in sec. 207 of this Act);
    Provides that during the period that a transition 
government is in power in Cuba (as defined in Section 206 of 
this Act), the President shall take steps to support the 
processing of Cuba's application for membership to take effect 
after a democratically elected government is in power; and,
    Provides that, if any international financial institution 
approves a loan or other assistance to Cuba over U.S. 
opposition, the Secretary of the Treasury shall withhold from 
payment to such institution an amount equal to the loan or 
other assistance to the Cuban government.

Section 105. United States opposition to ending the suspension of the 
        Government of Cuba from the Organization of American States

    This section seeks to ensure that the United States opposes 
the reintegration of the current government of Cuba into the 
Organization of American States. (The Castro government was 
suspended by a vote of the OAS member states in 1961.) The 
committee believes that it is inconceivable that any OAS member 
government would consider Cuba to be worthy of active 
participation in the OAS without first undertaking fundamental 
democratic reforms, in light of the historic measures taken by 
the Organization to recognize ``representative democracy as an 
indispensable condition for stability, peace, and development 
in the region. . . .''

Section 106. Assistance by the independent states of the former Soviet 
        Union for the Cuban government
    This section seeks to discourage any form of assistance 
from former Soviet states to the Cuban government, in light of 
the Castro regime's historic dependency on such assistance. 
This section:
     Requires a report to Congress detailing progress toward 
the withdrawal from Cuba of personnel of any independent state 
of the former Soviet Union, including advisers, technicians, 
and military personnel, from the Cienfuegos nuclear facility in 
Cuba;
     Amends section 498A(a)(11) of the Foreign Assistance Act 
of 1961 to explicitly designate facilities at Lourdes and 
Cienfuegos among those installations the dismantling of which 
should be considered by the President in determining whether to 
provide assistance to a former Soviet state. Also adds 
``providing assistance for or engaging in nonmarket based 
trade'' with Cuba to the list of activities that render such 
countries ineligible for U.S. assistance; and
     Requires the President to reduce assistance allocated for 
an independent state of the former Soviet Union by an amount 
equal to the sum of assistance and credits, if any, provided by 
such state after the date of enactment of this Act in support 
of intelligence facilities in Cuba, including the intelligence 
facility at Lourdes, Cuba. The President may waive this 
requirement if doing so is important to the national security 
and, in the case of Russia, if the President certifies that the 
Russian government has assured the U.S. Government that the 
Russian government is not sharing intelligence from Lourdes 
with officials or agents of the Cuban government. Urgent 
humanitarian needs, including disaster and refugee relief; 
assistance for democratic political reform and rule of law; 
technical assistance for safety upgrades of civilian nuclear 
power plants; aid to create private sector and nongovernmental 
organizations and develop a free market system; and aid under 
the Cooperative Threat Reduction Act of 1993 are exempt from 
the withholding requirement. The President also is required, in 
the case of a certification with respect to Russia, to report 
to Congress on the intelligence activities of Russia in Cuba, 
the purposes of the Lourdes facility, and the extent of any 
Russian credits provided to Cuba for the use of the Lourdes 
facility.

Section 107. Television broadcasting to Cuba

     This section seeks to expand the reach of the TV Marti 
signal by requiring the Director of the United States 
Information Agency (USIA) to implement a conversion of 
television broadcasting to Cuba under the Television Marti 
Service to UHF broadcasting. Reports to Congress are required 
until this conversion is completed. It is the committee's 
understanding that adequate funds are reserved for this 
activity in the USIA budget.

Section 108. Reports on assistance and commerce received by Cuba from 
        other foreign countries

     This section seeks to determine which governments and 
commercial entities are continuing to support the Castro 
government through trade, assistance, and joint ventures by 
requiring an annual report to Congress that includes a detailed 
description of all bilateral assistance provided to Cuba by 
other foreign countries, commercial ventures under way or under 
consideration (specifically whether such ventures involve 
property confiscated from a U.S. national), and any exchange of 
military supplies or equipment.

Section 109. Importation safeguard against certain Cuban products

     The committee notes that the Cuban Assets Control 
Regulations prohibit the importation of and dealings in 
merchandise outside the United States that is of Cuban origin, 
is or has been located in or transported from or through Cuba, 
or is made or derived in whole or in part of any article which 
is ``the growth, produce or manufacture of Cuba'' (part 515.204 
of title 31, Code of Federal Regulations). Furthermore, the 
committee understands that U.S. accession to NAFTA does not 
modify or alter the U.S. sanctions against Cuba; the statement 
of administrative action states explicitly, ``The NAFTA rules 
of origin will not in any way diminish the Cuban sanctions 
program. . . . Nothing in the NAFTA would operate to override 
this prohibition.''
     This section seeks to strengthen existing U.S. laws 
prohibiting the importation of and dealings in merchandise 
outside the United States that is of Cuban origin, etc. It 
requires that a company exporting sugar or sugar products to 
the United States must certify to the satisfaction of the 
Secretary of the Treasury that the sugar or sugar product is 
not a product of Cuba; false certifications are subject to 
forfeiture of the product. This section also requires reports 
to the Congress by the President on the enforcement of this 
provision and requires the publication of a list of companies 
found to have violated these provisions.
     The committee takes note of the assurances of 
Congressional Research Service experts that this provision is 
fully consistent with trade agreements, noting that it is 
similar to other ``procedural safeguards'' meant to enforce the 
existing U.S. embargo on Cuban sugar. The burden of this 
provision is on sugar exporters to make certain that they are 
in compliance with U.S. law.
     The committee expects that the appropriate U.S. agencies 
will enforce this provision fully, taking the necessary steps 
to verify documentation and provide swift sanction in the case 
of false or unreliable certifications. U.S. Treasury Department 
and Customs Service officials have said that this provision 
could be enforced by conducting periodic ``document trace-
backs,'' requiring additional documentation, and performing on-
site inspections of overseas facilities. In short, if the 
political will and resources are available, U.S. officials have 
the ability to enforce this provision in order to deter 
violations of existing U.S. law.

Section 110. Authorization of support for democratic and human rights 
        groups and international observers

     This section provides explicit authority, notwithstanding 
other specific provisions of the law except for notification 
requirements, for the President to provide immediate support to 
individuals and independent nongovernmental organizations to 
advance democracy-building efforts for Cuba, including:
     Publications and audio-visual material on democracy, human 
rights, and market economies; humanitarian assistance to 
victims of political repressions and their families; and 
support for democratic and human rights groups; and,
     Financial support, redirected from U.S. voluntary 
contributions to the OAS, for a special OAS emergency fund for 
human rights observers, election support, and election 
observation in Cuba (notwithstanding section 307 of the Foreign 
Assistance Act of 1961).
Section 111. Withholding of foreign assistance to countries supporting 
        nuclear power plant in Cuba

     This section is intended to deter countries from providing 
any form of support for the completion of the Cuban nuclear 
facility at Juragua, near Cienfuegos, Cuba. The committee takes 
note of expert conclusions that the plant's construction is 
seriously flawed and that Cuba lacks a nuclear regulatory 
structure as well as adequate infrastructure and training to 
support the safe operation of the plant. The committee views 
with alarm recent reports that several countries, including 
Russia and Cuba, are considering the completion and operation 
of that plant.
     This section requires the withholding from U.S. assistance 
to any country an amount equal to the sum of assistance and 
credits provided on or after the date of enactment by that 
country in support of the completion of the Juragua facility. 
The committee intends that ``assistance and credits'' be 
interpreted broadly, not limited merely to grant assistance or 
concessional transactions but also including any form of 
financial, technical, or other support that facilitates 
completion of the plant at Juragua. This section exempts from 
any withholding certain forms of U.S. assistance, such as 
humanitarian and disaster aid and support for democratic 
political reform and free market development.

Section 112. Expulsion of criminals from Cuba

     This section requires the President to instruct U.S. 
government officials to raise with Cuban officials the 
extradition or other means of return to the United States of 
persons residing in Cuba sought by the Department of Justice 
for crimes committed in the United States.

          Title II--Assistance to a Free and Independent Cuba

     Title II sends a clear, specific message to the Cuban 
people that the United States is prepared fully to assist in a 
peaceful transition, with due respect for their right of self-
determination. Portions of this Act are purposely modeled on 
the FREEDOM Support Act of 1992, which authorizes specific 
types of assistance to the newly independent states of the 
former Soviet Union.
    Title II instructs the President to develop an aid plan now 
so that the U.S. government is prepared to respond quickly to 
the inevitable democratic transition in Cuba. Title II lists 
types of U.S. assistance contemplated to be included in the 
required aid plan. It is not the intent of the Congress to 
mandate that the President include all of the listed forms of 
assistance in the plan. Moreover, although such U.S. assistance 
is authorized explicitly by section 204, delivery of such 
assistance is ``subject to the availability of appropriations'' 
(see section 203(c) (1) and (3)). No further authorization 
legislation would be required, however.

Section 201. Policy toward a transition government and a democratically 
        elected government in Cuba

     This section states that it is the policy of the United 
States to support Cuban self-determination and to plan now to 
provide emergency and longer-term support for the transition to 
democracy in Cuba, directly and through multilateral 
cooperation.
     This section also states that it is the U.S. policy, inter 
alia, to not provide favorable treatment or influence on behalf 
of any individual or entity in the selection by the Cuban 
people of their future government; to be prepared to enter into 
negotiations with a democratically elected government in Cuba 
on the future of the U.S. presence at Guantanamo Bay; to 
terminate the economic embargo of Cuba when the President 
determines that a democratically elected government is in power 
in Cuba; and, to consider the extension of free trade 
arrangements to a democratic Cuba.

Section 202. Authorization of Assistance for the Cuban People

     This section requires the President to develop a plan for 
providing economic assistance to Cuba, defining what types of 
assistance can be provided when a transition government is in 
power and when a democratically elected government is in power.
     In the case of a transition government, assistance shall 
be limited to such food, medicine, medical supplies and 
equipment; assistance to meet emergency energy needs; certain 
forms of assistance defined under section 498 of the Foreign 
Assistance Act of 1961 (FREEDOM Support Act of 1992); 
assistance in preparing the Cuban military forces to adjust to 
an appropriate role in a democracy; and remittances by 
individuals to their relatives of cash or goods.
     In the case of a democratically elected government, 
assistance may include development assistance and economic 
support funds under the Foreign Assistance Act of 1961; 
assistance under the Agricultural Trade Development and 
Assistance Act of 1954; financing and other forms of assistance 
provided by the Export-Import Bank, Overseas Private Investment 
Corporation, and Trade and Development Agency; and external 
debt relief; Peace Corps programs; and assistance in preparing 
the Cuban military forces to adjust to an appropriate role in a 
democracy. Once a democratically elected government is in 
power, the President should consider Cuba's participation in 
Caribbean Basin Economic Recovery Act and shall take the 
necessary steps to extend most-favored nation treatment and 
free trade arrangements to Cuba.
     This section also states that assistance should be 
provided through U.S. government organizations or through 
nongovernmental organizations, private and voluntary 
organizations (whether within or outside the United States), 
including humanitarian, educational, labor, and private sector 
organizations.
     In addition, this section requires the President to seek 
to obtain the agreement of other countries, international 
financial institutions, and multilateral organizations to 
provide similar forms of assistance to a transition government 
and to a democratically elected government in Cuba.
Section 203. Coordination of assistance program; implementation and 
        reports to Congress; reprogramming

    This section makes explicit that delivery and distribution 
of assistance to a transition or democratically elected 
government is subject to the availability of appropriations.
    This section requires the President to designate a 
Coordinating Official to implement the assistance plan, ensure 
the speedy and efficient distribution of assistance, and ensure 
coordination among the various U.S. agencies involved. It 
requires the President to designate a United States-Cuba 
Council to involve the private sector in promoting the market-
based development of and bilateral trade with Cuba. It requires 
periodic reports to the Congress on implementation of this 
assistance plan.

Section 204. Authorization of Appropriations

    This section authorizes to be appropriated such sums as may 
be necessary to carry out this title. It should be emphasized, 
however, that delivery of such assistance is made subject to 
the availability of appropriations.

Section 205. Termination of the Economic Embargo of Cuba

    Section 205(a) provides that once a transition government 
is in power in Cuba, the President, after consulting with the 
Congress, is authorized to take such steps to suspend the 
economic embargo of Cuba to the extent that such action 
contributes to a stable foundation for a democratically elected 
government. Subsection (e) requires a report to Congress by the 
President upon making this decision and no less than every six 
months thereafter and provides that Congress may reject the 
President's decision by enactment of a joint resolution of the 
Houses of Congress.
    Section 205(c) further states that, upon submitting to 
Congress a determination under section 203(c)(3) that a 
democratically elected government is in power in Cuba, the 
President shall take steps to terminate the economic embargo of 
Cuba. This section explicitly repeals several provisions of the 
law related to the economic embargo once such a determination 
is made.

Section 206. Requirements for a transition government

    This section specifies that for the purposes of this Act, a 
transition government in Cuba is a government which is 
demonstrably in transition from communist totalitarian 
dictatorship to representative democracy; has recognized the 
right to independent political activity and association; has 
released all political prisoners and allowed for investigations 
of Cuban prisons by appropriate international human rights 
organizations; has ceased any interference with Radio or 
Television Marti broadcasts; does not include Fidel Castro or 
Raul Castro; has given adequate assurances that it will allow 
the speedy and efficient distribution of assistance to the 
Cuban people; and permits the deployment throughout Cuba of 
independent and unfettered international human rights monitors.
    In addition, a transition government also must have made 
public commitments to and be making demonstrable progress in 
establishing an independent judiciary; dissolving the present 
Department of State Security in the Cuban Ministry of the 
Interior, including the Committees for the Defense of the 
Revolution and the Rapid Response Brigades; respecting 
internationally recognized human rights and basic freedoms as 
set forth in the Universal Declaration of Human Rights; 
effectively guaranteeing the rights of free speech and freedom 
of the press; organizing free, fair, and open elections within 
one year; assuring the right to private property; taking 
appropriate steps to return to United States nationals property 
taken by the Government of Cuba; granting permits to privately 
owned telecommunications and media companies to operate in 
Cuba; and allowing the establishment of an independent trade 
unions and allowing independent social, economic, and political 
associations.

Section 207. Requirements for a democratically elected government

    This section specifies that for the purposes of this Act, a 
democratically elected government in Cuba is a government that 
results from free and fair elections conducted under the 
supervision of internationally recognized observers; that has 
permitted opposition parties ample time to organize and 
campaign for such elections, and that has permitted full access 
to the media to all candidates in the elections; that is 
showing respect for the basic civil liberties and human rights 
of the citizens of Cuba; that has made demonstrable progress in 
establishing an independent judiciary; that is substantially 
moving toward a market-oriented economic system; that has 
committed to making constitutional changes that schedule 
regular free and fair elections; and that has made demonstrable 
progress in returning to U.S. nationals property taken by the 
Government of Cuba or providing full compensation.
  Title III--Protection of Property Rights of United States Nationals 
           Against Confiscatory Takings by the Castro Regime

    Title III creates a new right of action in U.S. district 
court for United States nationals whose confiscated property is 
being exploited in Cuba. The purpose of this new civil remedy 
is, in part, to discourage persons and companies from engaging 
in commercial transactions involving confiscated property, and 
in so doing to deny the Cuban regime the capital generated by 
such ventures and deter the exploitation of property 
confiscated from U.S. nationals.
    This right of action is a unique but proportionate remedy 
for U.S. nationals who were targeted by the Castro regime when 
their property was confiscated in violation of both Cuban law 
and international law. H.R. 927, as amended, simply puts would-
be investors on notice that if they traffic in confiscated 
property after this provision becomes law they will be held 
liable to the legitimate U.S. owners in U.S. courts. Persons 
trafficking in such property after receiving notice of a 
legitimate claim to the property would be liable for treble 
damages.
    This provision is predicated on the committee's findings 
that the Cuban confiscations were illegal, that the Castro 
regime cannot grant clear title to such property without the 
consent of the legitimate owners, and that thousands of U.S. 
nationals can substantiate before a U.S. court that they hold a 
valid claim to certain Cuban property. Any dispute as to the 
amount and ownership of the claim is to be resolved by a U.S. 
court, which can accept as authoritative the findings of the 
Foreign Claims Settlement Commission, upon which the U.S. 
government routinely relies when deciding whether to espouse 
private claims against foreign governments.
    Title III would not supplant or undermine the Foreign 
Claims Settlement process in any way; it merely provides a 
remedy for trafficking in property after it was confiscated. A 
claimant who uses this right of action successfully would 
forfeit the corresponding share of any subsequent negotiated 
settlement. The right to bring an action under this title will 
cease upon determination by the President that a democratically 
elected government is in power in Cuba.
    The Committee expects that the existence of this remedy 
will make the recovery process less complicated because it will 
deter investment in and development of confiscated property, 
holding such property harmless until the rightful owners can 
reclaim, sell, or develop it under the laws of a democratic 
Cuba. The recovery of damages under title III may also satisfy 
some certified claims, thereby reducing the number of claimants 
that will have to share in any negotiated lump-sum payment.

Section 301. Statement of policy

    Section 301 finds, inter alia, that the right of 
individuals to hold and enjoy property is a fundamental right; 
the U.S. Government has an obligation to protect its citizens 
against illegal confiscation; nations that illegally confiscate 
private property should not be immune to another nation's laws 
whose purpose is to protect against the confiscation of 
lawfully acquired property; and international law, through the 
absence of effective remedies, condones the illegal 
confiscation of property and allows unjust enrichment from the 
use of confiscated property.

Section 302. Liability for trafficking in property confiscated from 
        United States nationals

    This section states that any person, including any agency 
or instrumentality of a foreign state in the conduct of a 
commercial activity, that, after the six-month period beginning 
on the date of enactment of this Act, traffics in property that 
was confiscated by the government of Cuba anytime on or after 
January 1, 1959, shall be liable to the U.S. national who owns 
the claim to such property. (Sec. 302(a)(1))
    The amount of the liability is to be calculated based on 
the value of the property (determined in accordance with 
section 302(a)(1)(A)(i)) plus reasonable costs and attorneys' 
fees and interest.
    The amount of the liability is treble the value of the 
property (plus costs, attorneys' fees, and interest) if the 
person or government-controlled entity traffics in the property 
after having received notice of the outstanding claim and 
notice of this section of the Act. (Sec. 302(a)(3))
    A ``United States national'' is defined in section 4, in 
part, as ``any United States citizen'', meaning that this right 
of action is extended to persons who were naturalized after the 
subject property was confiscated, provided that the claim meets 
the tests in section 302(a)(4).
    Section 302(a)(4)(B) states that, in the case of property 
confiscated before the date of enactment of this Act, the U.S. 
national had to have owned the claim to the property before the 
date of enactment in order to bring an action under this 
section. Section 302(a)(4)(C) states that in the case of 
property confiscated on or after the date of enactment, no U.S. 
national may bring an action under this section if he or she 
acquired the claim after the date of enactment. These 
provisions are intended, in part, to eliminate any incentive 
that might otherwise exist to transfer claims to confiscated 
property to U.S. nationals in order to take advantage of the 
remedy created by this section. Furthermore, it is not the 
intention of the committee that the right of action be 
available to entities that are incorporated in the United 
States after the date of enactment, inasmuch as such entities 
could not have owned the claim to confiscated property on the 
date of enactment because they did not then exist.
    Section 302(a)(6) states that in the case of any action 
brought under this section by a U.S. national who was eligible 
to file the underlying claim before the Foreign Claims 
Settlement Commission but did not do so, the court may hear the 
case only if the court determines that there was good cause for 
not filing the claim with the Commission. In the case of any 
action brought under this section by a U.S. national who did 
file a claim with the Commission but had such claim denied, the 
court may assess the basis for the denial and may accept the 
findings of the Commission unless good cause justifies another 
result.
    Sections 302(c) and (d), respectively, amend title 28, 
United States Code, to grant United States district courts 
exclusive jurisdiction over actions brought under this section 
and to make diplomatic facilities immune from attachment and 
execution in such actions.
    Section 302(e)(1) requires an election of remedies. Persons 
who bring an action under this section may not bring a civil 
action under any other law seeking compensation by reason of 
the same subject matter, and persons who bring a civil action 
under any other law seeking compensation arising out of the 
same claim may not bring an action under this section.
    Section 302(e)(1) contains special rules designed to 
prevent double compensation of certified claimants. Persons who 
receive a recovery in an action under this section cannot 
subsequently collect compensation for the same claim in 
subsequent settlements, except to the extent that the certified 
claim was not fully satisfied by the recovery in the action 
under this section. Certified claims under the Foreign Claims 
Settlement Commission procedure are not adversely affected by 
an unsuccessful action brought on the basis of the same claim 
under this section.
    Section 302(g) terminates the right to bring actions under 
this section when the President determines that a 
democratically elected government is in power in Cuba, thus 
preventing new cases from being generated after the transition 
in Cuba to such a government. Actions commenced prior to such a 
determination by the President shall not be affected by such 
determination.

Section 303. Determination of claims to confiscated property

    This section establishes alternative methods for 
determining the amount and ownership of claims brought under 
section 302. For example, section 303(a)(1) states that the 
courts shall accept as ``conclusive proof of ownership'' 
certification of a claim by the Foreign Claims Settlement 
Commission. Section 303(a)(2) states that in the case of a 
claim that has not been certified, the court may appoint a 
``special master'' (including the Commission) to make 
determinations regarding the amount and validity of claims. 
This ``special master'' provision allows the court to call upon 
the recognized special expertise of the Commission in 
evaluating such claims, but a determination by the Commission 
in such a case shall not constitute certification of the claim 
pursuant to title V of the International Claims Settlement Act 
of 1949.
    Section 303(b) amends title V the International Claims 
Settlement Act of 1949 to authorize a U.S. district court to 
refer to the Foreign Claims Settlement Commission a case for 
the purposes of determining the amount and validity of a claim 
brought under section 302. This subsection further authorizes 
the Commission to make such determinations, whether or not the 
U.S. national qualified as a national (as defined in the 
International Claims Settlement Act) at the time of the 
confiscation.
    Section 303(c) makes explicit that nothing in this Act 
shall be construed as requiring or authorizing the claims of 
Cuban nationals who became United States citizens after their 
property was confiscated to be included in the existing claims 
certified to the Secretary of State by the Commission for 
purposes of espousal and future negotiation with a friendly 
government in Cuba.

Section 304. Exclusivity of Foreign Claims Settlement Commission 
        certification procedure

    This section is intended to make explicit that this Act is 
not intended to create any additional claims under the Foreign 
Claims Settlement Commission procedure, which closed in 1972 
after certifying 5,911 claims valued at $1.8 billion. This 
section amends the International Claims Settlement Act of 1949 
to provide that persons who were eligible to file claims under 
that Act but did not do so, persons who were not eligible to 
file a claim under that Act, and Cuban nationals or 
instrumentalities shall not have a claim to any compensation 
paid or allocated to a U.S. national by virtue of a certified 
claim. The amendment also denies U.S. courts jurisdiction to 
adjudicate any such claim.

                 Title IV--Exclusion of Certain Aliens

Section 401. Exclusion from the United States of aliens who have 
        confiscated property of United States nationals or who traffic 
        in such property

    This section provides that the Secretary of State, in 
consultation with the Attorney General, shall exclude any alien 
seeking to enter the United States who the Secretary of State 
determines has confiscated property the claim to which is owned 
by a U.S. national; knowingly and intentionally traffics in 
confiscated property after the date of enactment of this Act; 
is a corporate officer, principal, or controlling shareholder 
in a company that has been involved in such confiscations or 
trafficking; or, is a spouse, minor child, or agent of any 
person described above.
    Section 401(d) allows the Secretary of State to waive the 
requirements of this section on a case-by-case basis when the 
Secretary of State finds that to do so is in the national 
interest of the United States.
    It is the intent of the committee that this provision be 
enforced consistent with U.S. treaty obligations, including 
trade agreements. The committee expects the Departments of 
State and Justice to enforce these restrictions vigorously and, 
at the very least, to immediately incorporate the names of all 
persons known to U.S. embassies and other agencies to fall into 
the above categories onto computerized records that are 
regularly consulted by consular officials when issuing visas. 
The committee is aware that the Department of State is actively 
engaged in prosecuting hundreds of confiscation claims of U.S. 
citizens in Nicaragua, Honduras, Costa Rica, and Cuba; persons 
who are responsible for these confiscations or who are 
trafficking in such property should be among those initially 
targeted for exclusion under this section.
                      Committee Oversight Findings

    In compliance with clause 2(l)(3)(A) of rule XI of the 
Rules of the House of Representatives, the Committee reports 
that the findings and recommendations of the Committee, based 
on oversight activities under clause 2(b)(1) of Rule X of the 
Rules of the House of Representatives, are incorporated in the 
descriptive portions of this report.

         Committee on Government Reform and Oversight Findings

    No findings or recommendations of the Committee on 
Government Reform and Oversight were received as referred to in 
clause 2(l)(3)(D) of rule XI of the Rules of the House of 
Representatives.

               New Budget Authority and Tax Expenditures

    The Committee adopts the cost estimate of the Congressional 
Budget Office, set out below, as its submission of any required 
information on new budget authority, new spending authority, 
new credit authority, or an increase or decrease in the 
national debt required by clause 2(l)(3)(B) of rule XI of the 
House of Representatives.

                     Inflationary Impact Statement

    In compliance with clause 2(l)(4) of rule XI of the Rules 
of the House of Representatives, the Committee estimates that 
H.R. 927 will have no significant inflationary impact on prices 
and costs in the operation of the national economy.

               Congressional Budget Office Cost Estimate

    In compliance with clause 2(l)(3)(C) of rule XI of the 
Rules of the House of Representatives, the Committee sets forth 
with respect to H.R. 927 the following estimate and comparison 
prepared by the Director of the Congressional Budget Office 
under section 403 of the Budget Act of 1974:
                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, July 24, 1995.
Hon. Benjamin A. Gilman,
Chairman, Committee on International Relations, House of 
        Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
reviewed H.R. 927, the Cuban Liberty and Democratic Solidarity 
Act of 1995, as ordered reported by the House Committee on 
International Relations on July 12, 1995. The bill would 
strengthen sanctions against the Castro regime, authorize 
assistance to a transitional or democratically elected 
government in Cuba, create a new right for U.S. nationals to 
take civil action against persons or companies that traffic in 
confiscated property, and exclude certain aliens from the 
United States.
    As ordered reported, the bill could have a significant 
budgetary impact through its authorization of discretionary 
appropriations. This impact, however, cannot be reliably 
estimated because it depends on developments in Cuba that are 
impossible to predict. CBO understands from Committee staff 
that a Committee amendment will be offered on the House floor 
that would strip the bill of an open-ended authorization of 
appropriations (section 204) and that would make certain other 
provisions subject to further authorization and appropriations 
action. Such an amendment would reduce the bill's budgetary 
impact to relatively small amounts.
    The bill would affect governmental receipts; therefore, 
pay-as-you-go procedures would apply. However, CBO estimates 
that additional receipts would not be significant at least 
through 1998. The bill would not affect the budgets of state or 
local governments.

                                Title I

    Title I would exhort the President to seek an international 
embargo against Cuba. The title would prohibit certain indirect 
transactions involving confiscated property and would impose 
upon the Administration new certification and reporting 
requirements. If limited to information otherwise available, 
meeting the certification and reporting requirements would not 
add appreciably to the administrative burden imposed by 
existing sanctions.
    Section 110 would authorize a voluntary contribution of not 
less than $5 million to an emergency fund to be administered by 
the Organization of American States (OAS). The OAS could use 
the fund to deploy human rights observers and to provide 
election support and observers in Cuba. Creation of the fund 
would require negotiations with other member states. The 
section also would authorize assistance to individuals and non-
governmental organizations to provide informational matter, 
assistance to victims of torture, support for democratic and 
human rights groups in Cuba, and support for visits by human 
rights monitors. These activities are currently authorized and 
funded by other provisions of law.

                                title ii

    Section 204 of title II would authorize the appropriation 
of such sums as may be necessary for assistance to a 
transitional and/or democratically elected government in Cuba. 
For a transitional government, the bill would authorize a 
program of humanitarian aid and assistance to foster democratic 
institutions and a free-market economy. Once a democratically 
elected government is in power, the bill would authorize 
additional assistance, credits, and investment insurance. The 
spending authorized by the title is open-ended, and the timing 
is subject to events that are impossible to estimate. No 
appropriations are authorized before a change in regime in 
Cuba. Appropriations under section 204 as ordered reported 
could exceed $1 billion over a three- to five-year period. 
Removing section 204 and making other implicit authorizations 
subject to subsequent Congressional action would reduce the 
budgetary impact to negligible amounts.
    Title II would require the President also to take steps to 
extend most favored nation status and duty-free treatment under 
the Caribbean Basin Initiative to a democratically elected 
government in Cuba. Before the President could extend 
preferential tariff treatment to Cuba, Congress would need to 
pass additional legislation to amend general note 3(b) of the 
Harmonized Tariff Schedule of the United States. Because no 
tariff rates would change without further legislation, CBO 
estimates that enacting these provisions would not affect 
governmental receipts.

                               title iii

    Title III would enable U.S. nationals who have claims 
against property confiscated by Castro regime to file suit in 
federal court against persons or businesses who traffic in such 
confiscated property, beginning six months after enactment of 
this bill. According to the Foreign Claims Settlement 
Commission, about 6,000 U.S. citizens and businesses have 
outstanding claims against confiscated property in Cuba. In 
addition, about 15,000 U.S. nationals who have not filed claims 
with this commission may also have had commercial property 
confiscated in Cuba.
    It is difficult to predict what percentage of the potential 
claimants to confiscated property would file suits under this 
bill and what percentage of those who file would have 
legitimate claims. Based on information from the Administrative 
Office of the United States Courts (AOUSC), we estimate that 
the federal court system would incur about $2 million in 
additional costs to address cases that actually go to trial. 
Also, the AOUSC predicts that some additional suits would be 
filed by claimants to confiscated property who do not 
necessarily have a legitimate claim under this bill, but who 
would want to test the law. Because there are costs associated 
with processing claims regardless of whether they are 
eventually dismissed because of lack of merit, CBO expects that 
enacting this bill would result in some additional costs to the 
federal judiciary. Each additional case filed would cost about 
$4,500 to process. At this time, CBO does not have sufficient 
information for estimating the number of such filings and the 
total costs that would be incurred by the judiciary.
    The Foreign Claims Settlement Commission could incur 
additional costs because it could be asked to assist the courts 
in reviewing cases. CBO estimates that the commission would 
require several new attorneys and support personal to fulfill 
this responsibility, with costs up to about $1 million each 
year. All of the costs for title III would be subject to the 
availability of appropriated funds.
    In addition, any excess receipts paid by Cuba in the 
settlement of confiscated property claims would be deposited 
into the Treasury. At this time, CBO cannot predict either the 
likelihood or the magnitude of such receipts.
    As the result of additional civil filing fees paid to the 
judiciary, the federal government would collect additional 
governmental receipts and offsetting collections. CBO estimates 
that such receipts and offsetting collections would total less 
than $500,000. However, the amount could be higher if the 
number of claims filed exceeds 10,000 claims.
    Title IV would require the Secretary of State to exclude 
from the United States any alien who has confiscated property 
or who has trafficked in confiscated property owned by a U.S. 
national. The title would not have a significant budgetary 
impact.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Joseph C. 
Whitehill, Susanne Mehlman, and Melissa Sampson.
            Sincerely,
                                              James L. Blum
                                   (For June E. O'Neill, Director).
         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3 of rule XIII of the Rules of the 
House of Representatives, changes in existing law made by the 
bill, as reported, are shown as follows (existing law proposed 
to be omitted is enclosed in black brackets, new matter is 
printed in italics, existing law in which no change is proposed 
is shown in roman):

              SECTION 16 OF THE TRADING WITH THE ENEMY ACT

  Sec. 16. (a) Whoever shall willfully violate any of the 
provisions of this Act or of any license, rule, or regulation 
issued thereunder, and whoever shall willfully violate, 
neglect, or refuse to comply with any order of the President 
issued in compliance with the provisions of the Act shall, upon 
conviction, be fined not more than $1,000,000, or if a natural 
person, be fined not more than $100,000, or imprisoned for not 
more than ten years or both; and the officer, director, or 
agent of any corporation who knowingly participants in such 
violation shall, upon conviction, be fined not more than 
$100,000 or imprisoned for not more than ten years or both.
  [(b)(1) A civil penalty of not to exceed $50,000 may be 
imposed by the Secretary of the Treasury on any person who 
violates any license, order, rule, or regulation issued in 
compliance with the provisions of this Act.
  [(2) The penalties provided under this subsection may not be 
imposed for--
          [(A) news gathering, research, or the export or 
        import of, or transmission of, information or 
        informational materials; or
          [(B) clearly defined educational or religious 
        activities, or activities of recognized human rights 
        organizations, that are reasonably limited in 
        frequency, duration, and number of participants.
  [(c) Upon conviction, any property, funds, securities, 
papers, or other articles or documents, or any vessel, together 
with tackle, apparel, furniture, and equipment, concerned in 
any violation of subsection (a) may be forfeited to the United 
States.
  [(b)(1) The Secretary of the Treasury may impose a civil 
penalty of not more than $50,000 on any person who violates any 
license, order, rule, or regulation issued under this Act.
  [(2) Any property, funds, securities, papers, or other 
articles or documents, or any vessel, together with its tackle, 
apparel, furniture, and equipment, that is the subject of a 
violation under paragraph (1) shall, at the discretion of the 
Secretary of the Treasury, be forfeited to the United States 
Government.
  [(3) The penalties provided under this subsection may not be 
imposed for--
          [(A) news gathering, research, or the export or 
        import of, or transmission of, information or 
        informational materials; or
          [(B) clearly defined educational or religious 
        activities, or activities of recognized human rights 
        organizations, that are reasonably limited in 
        frequency, duration, and number of participants.
  [(4) The penalties provided under this subsection may be 
imposed only on the record after opportunity for an agency 
hearing in accordance with sections 554 through 557 of title 5, 
United States Code, with the right to prehearing discovery.
  [(5) Judicial review of any penalty imposed under this 
subsection may be had to the extent provided in section 702 of 
title 5, United States Code.]
  (b)(1) A civil penalty of not to exceed $50,000 may be 
imposed by the Secretary of the Treasury on any person who 
violates any license, order, rule, or regulation issued in 
compliance with the provisions of this Act.
  (2) Any property, funds, securities, papers, or other 
articles or documents, or any vessel, together with its tackle, 
apparel, furniture, and equipment, that is the subject of a 
violation under paragraph (1) shall, at the discretion of the 
Secretary of the Treasury, be forfeited to the United States 
Government.
  (3) The penalties provided under this subsection may not be 
imposed for--
          (A) news gathering, research, or the export or import 
        of, or transmission of, information or informational 
        materials; or
          (B) clearly defined educational or religious 
        activities, or activities of recognized human rights 
        organizations, that are reasonably limited in 
        frequency, duration, and number of participants.
  (4) The penalties provided under this subsection may be 
imposed only on the record after opportunity for an agency 
hearing in accordance with sections 554 through 557 of title 5, 
United States Code, with the right to prehearing discovery.
  (5) Judicial review of any penalty imposed under this 
subsection may be had to the extent provided in section 702 of 
title 5, United States Code.
                              ----------                              


            SECTION 1704 OF THE CUBAN DEMOCRACY ACT OF 1992

SEC. 1704. INTERNATIONAL COOPERATION.

  (a)  * * *
  (b) Sanctions Against Countries Assisting Cuba.--
          (1)  * * *
          (2) Definition of assistance.--For purposes of 
        paragraph (1), the term ``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) includes an exchange, reduction, or 
                forgiveness of Cuban debt owed to a foreign 
                country in return for a grant of an equity 
                interest in a property, investment, or 
                operation of the Government of Cuba (including 
                the government of any political subdivision of 
                Cuba, and any agency or instrumentality of the 
                Government of Cuba) or of a Cuban national; and
                  [(B)] (C) does not include--
                          (i) donations of food to 
                        nongovernmental organizations or 
                        individuals in Cuba, or
                          (ii) exports of medicines or medical 
                        supplies, instruments, or equipment 
                        that would be permitted under section 
                        1705(c).
As used in this paragraph, the term ``agency or instrumentality 
of the Government of Cuba'' means an agency or instrumentality 
of a foreign state as defined in section 1603(b) of title 28, 
United States Code, with ``Cuba'' substituted for ``a foreign 
state'' each place it appears in such section.
          * * * * * * *
                              ----------                              


                     FOREIGN ASSISTANCE ACT OF 1961

          * * * * * * *

                                 PART I

          * * * * * * *

Chapter 11--Support for the Economic and Democratic Development of the 
             Independent States of the Former Soviet Union

          * * * * * * *

SEC. 498A. CRITERIA FOR ASSISTANCE TO GOVERNMENTS OF THE INDEPENDENT 
                    STATES.

  (a) In General.--In providing assistance under this chapter 
for the government of any independent state of the former 
Soviet Union, the President shall take into account not only 
relative need but also the extent to which that independent 
state is acting to--
          (1)  * * *
          * * * * * * *
          (11) terminate support for the communist regime in 
        Cuba, including removal of troops, closing [of military 
        facilities] military and intelligence facilities, 
        including the military and intelligence facilities at 
        Lourdes and Cienfuegos, and ceasing trade subsidies and 
        economic, nuclear, and other assistance.
  (b) Ineligibility for Assistance.--The President shall not 
provide assistance under this chapter--
          (1)  * * *
          * * * * * * *
          (4) for the government of any independent state that 
        is prohibited from receiving such assistance by section 
        669 or 670 of this Act or sections 306(a)(1) and 307 of 
        the Chemical and Biological Weapons Control and Warfare 
        Elimination Act of 1991; [or]
          (5) for the government of any independent state 
        effective 30 days after the President has determined 
        and certified to the appropriate congressional 
        committees (and Congress has not enacted legislation 
        disapproving the determination within that 30-day 
        period) that such government is providing assistance 
        for, or engaging in nonmarket based trade (as defined 
        in section 498B(k)(3)) with, the Cuban government; or
          [(5)] (6) for the Government of Russia if it has 
        failed to make significant progress on the removal of 
        Russian or Commonwealth of Independent States troops 
        from Estonia, Latvia, and Lithuania or if it has failed 
        to undertake good faith efforts, such as negotiations, 
        to end other military practices that violate the 
        sovereignty of the Baltic states.
          * * * * * * *
  (d) Reduction in Assistance for Support of Intelligence 
Facilities in Cuba.--(1) Notwithstanding any other provision of 
law, the President shall withhold from assistance provided, on 
or after the date of the enactment of this subsection, for an 
independent state of the former Soviet Union under this chapter 
an amount equal to the sum of assistance and credits, if any, 
provided on or after such date by such state in support of 
intelligence facilities in Cuba, including the intelligence 
facility at Lourdes, Cuba.
  (2)(A) The President may waive the requirement of paragraph 
(1) to withhold assistance if the President certifies to the 
appropriate congressional committees that the provision of such 
assistance is important to the national security of the United 
States, and, in the case of such a certification made with 
respect to Russia, if the President certifies that the Russian 
Government has assured the United States Government that the 
Russian Government is not sharing intelligence data collected 
at the Lourdes facility with officials or agents of the Cuban 
Government.
  (B) At the time of a certification made with respect to 
Russia pursuant to subparagraph (A), the President shall also 
submit to the appropriate congressional committees a report 
describing the intelligence activities of Russia in Cuba, 
including the purposes for which the Lourdes facility is used 
by the Russian Government and the extent to which the Russian 
Government provides payment or government credits to the Cuban 
Government for the continued use of the Lourdes facility.
  (C) The report required by subparagraph (B) may be submitted 
in classified form.
  (D) For purposes of this paragraph, the term ``appropriate 
congressional committees'' includes the Permanent Select 
Committee on Intelligence of the House of Representatives and 
the Select Committee on Intelligence of the Senate.
  (3) The requirement of paragraph (1) to withhold assistance 
shall not apply with respect to--
          (A) assistance to meet urgent humanitarian needs, 
        including disaster and refugee relief;
          (B) democratic political reform and rule of law 
        activities;
          (C) technical assistance for safety upgrades of 
        civilian nuclear power plants;
          (D) the creation of private sector and 
        nongovernmental organizations that are independent of 
        government control;
          (E) the development of a free market economic system; 
        and
          (F) assistance for the purposes described in the 
        Cooperative Threat Reduction Act of 1993 (title XII of 
        Public Law 103-160).
SEC. 498B. AUTHORITIES RELATING TO ASSISTANCE AND OTHER PROVISIONS.

  (a)  * * *
          * * * * * * *
  (k) Definitions.--
          (1)  * * *
          * * * * * * *
          (3) Nonmarket based trade.--As used in section 
        498A(b)(5), the term ``nonmarket based trade'' includes 
        exports, imports, exchanges, or other arrangements that 
        are provided for goods and services (including oil and 
        other petroleum products) on terms more favorable than 
        those generally available in applicable markets or for 
        comparable commodities, including--
                  (A) exports to the Cuban government on terms 
                that involve a grant, concessional price, 
                guaranty, insurance, or subsidy;
                  (B) imports from the Cuban government at 
                preferential tariff rates;
                  (C) exchange arrangements that include 
                advance delivery of commodities, arrangements 
                in which the Cuban government is not held 
                accountable for unfulfilled exchange contracts, 
                and arrangements under which Cuba does not pay 
                appropriate transportation, insurance, or 
                finance costs; and
                  (D) the exchange, reduction, or forgiveness 
                of Cuban debt in return for a grant by the 
                Cuban government of an equity interest in a 
                property, investment, or operation of the Cuban 
                government or of a Cuban national.
          (4) Cuban government.--(A) The term ``Cuban 
        government'' includes the government of any political 
        subdivision of Cuba, and any agency or instrumentality 
        of the Government of Cuba.
          (B) For purposes of subparagraph (A), the term 
        ``agency or instrumentality of the Government of Cuba'' 
        means an agency or instrumentality of a foreign state 
        as defined in section 1603(b) of title 28, United 
        States Code, with ``Cuba'' substituted for ``a foreign 
        state'' each place it appears in such section.
          * * * * * * *
                              ----------                              


        SECTION 212 OF THE CARIBBEAN BASIN ECONOMIC RECOVERY ACT

SEC. 212. BENEFICIARY COUNTRY.

    (a) * * *
    (b) In designating countries as ``beneficiary countries'' 
under this title the President shall consider only the 
following countries and territories or successor political 
entities:

Anguilla
Antigua and Barbuda
Bahamas, The
Barbados
Belize
Cayman Islands
Costa Rica
Cuba
Dominica
Dominican Republic
El Salvador
Granada
Guatemala
Guyana
Haiti
Honduras
Jamaica
Montserrat
Netherlands Antilles
Nicaragua
Panama
Saint Lucia
Saint Vincent and the Grenadines
Suriname
Trinidad and Tobago
Saint Christopher-Nevis
Turks and Caicos Islands
Virgin Islands, British

In addition, the President shall not designate any country a 
beneficiary country under this title--
          (1) if such country is a Communist country;
          * * * * * * *
                              ----------                              

                      TITLE 28, UNITED STATES CODE

          * * * * * * *

                    PART IV--JURISDICTION AND VENUE

          * * * * * * *

               CHAPTER 85--DISTRICT COURTS; JURISDICTION
Sec.
1330. Actions against foreign states.
1331. Federal question.
1331a. Civil actions involving confiscated property.
          * * * * * * *
Sec. 1331a. Civil actions involving confiscated property

  The district courts shall have exclusive jurisdiction of any 
action brought under section 302 of the Cuban Liberty and 
Democratic Solidarity (LIBERTAD) Act of 1995, regardless of the 
amount in controversy.
          * * * * * * *

        CHAPTER 97--JURISDICTIONAL IMMUNITIES OF FOREIGN STATES

          * * * * * * *

Sec. 1611. Certain types of property immune from execution

  (a)  * * *
          * * * * * * *
  (c) Notwithstanding the provisions of section 1610 of this 
chapter, the property of a foreign state shall be immune from 
attachment and from execution in an action brought under 
section 302 of the Cuban Liberty and Democratic Solidarity 
(LIBERTAD) Act of 1995 to the extent the property is a facility 
or installation used by an accredited diplomatic mission for 
official purposes.
          * * * * * * *
                              ----------                              


              INTERNATIONAL CLAIMS SETTLEMENT ACT OF 1949

          * * * * * * *

                                TITLE V

          * * * * * * *
   evaluation of ownership claims referred by district courts of the 
                             united states


  Sec. 514. Notwithstanding any other provision of this title 
and only for purposes of section 302 of the Cuban Liberty and 
Solidarity (LIBERTAD) Act, a United States district court, for 
fact-finding purposes, may refer to the Commission, and the 
Commission may determine, questions of the amount and ownership 
of a claim by a United States national (as defined in section 4 
of the Cuban Liberty and Solidarity (LIBERTAD) Act) resulting 
from the confiscation of property by the Government of Cuba 
described in section 503(a), whether or not the United States 
national qualified as a national of the United States (as 
defined in section 502(1)) at the time of the action by the 
Government of Cuba.


   exclusivity of foreign claims settlement commission certification 
                               procedure


  Sec. 515. (a) Subject to subsection (b), neither any national 
of the United States who was eligible to file a claim under 
section 503 but did not timely file such claim under that 
section, nor any national of the United States (on the date of 
the enactment of this section) who was not eligible to file a 
claim under that section, nor any national of Cuba, including 
any agency, instrumentality, subdivision, or enterprise of the 
Government of Cuba or any local government of Cuba in place on 
the date of the enactment of this section, nor any successor 
thereto, whether or not recognized by the United States, shall 
have a claim to, participate in, or otherwise have an interest 
in, the compensation proceeds or other nonmonetary compensation 
paid or allocated to a national of the United States by virtue 
of a claim certified by the Commission under section 507, nor 
shall any court of the United States or any State court have 
jurisdiction to adjudicate any such claim.
  (b) Nothing in subsection (a) shall be construed to detract 
from or otherwise affect any rights in the shares of the 
capital stock of nationals of the United States owning claims 
certified by the Commission under section 507.
          * * * * * * *
                            DISSENTING VIEWS

    The Cuban Liberty and Democratic Solidarity Act (H.R. 927) 
marks a radical shift in U.S. foreign policy. H.R. 927 is not a 
status quo bill, it is an extreme bill. It toughens the embargo 
against Cuba and tightens the noose on the Cuban people. It 
adopts measures against Cuba harsher than those against the 
Soviet Union during the Cold War.
    A policy that increases the isolation of Cuba is the wrong 
policy. The most important Republican foreign policy figure of 
his generation--Richard Nixon--reached the same conclusion 
shortly before his death. President Nixon was not alone. Others 
opposed to further isolation of Cuba include former Secretary 
of State Lawrence Eagleburger and former National Security 
Adviser Zbigniew Brzezinski. The spectrum of those opposed to a 
policy of further isolation runs from William F. Buckley, Jr., 
to Oscar Arias, the former President of Costa Rica, to Havana's 
Catholic Bishops. It includes the editorial pages of the New 
York Times, the Washington Post and the Wall Street Journal.
    The U.S. national interest in Cuba is clear. Our chief goal 
should be a peaceful transition in Cuba, to a democracy and 
market economy. A peaceful transition would reduce the chances 
of a massive migrant flow from Cuba to the United States. A 
successful transition would also enhance a second important 
U.S. interest--just compensation of those who had property 
confiscated by the Castro government.
H.R. 927 damages the U.S. national interest
    H.R. 927 damages the U.S. national interest in four 
distinct ways:
    First, by increasing Cuba's isolation, H.R. 927 will make 
conditions in Cuba much worse than they are today. That will 
hurt the Cuban people and will help Castro.
          If we make conditions in Cuba more desperate, we 
        increase the likelihood of violent change. We increase 
        the chances of another mass exodus to the United 
        States.
    Second, H.R. 927 puts further isolation of Cuba at the 
center of U.S. foreign policy. It makes every other aspect of 
U.S. foreign policy subservient to that goal. No government in 
the world agrees with such a policy toward Cuba--and without 
the support of other governments, that policy cannot succeed. 
In the course of increasing Cuba's isolation, and seeking to 
force other countries to go along, H.R. 927 will:
          Damage our relations with our closest allies, friends 
        and trading partners, in Europe, Japan, Canada, and 
        Mexico;
          Violate the North American Free Trade Agreement 
        (NAFTA), which guarantees the free movement of business 
        travelers through North America; and
          Undermine U.S. leadership at the World Bank and IMF 
        by forcing the United States to withhold funds.
    Third, H.R. 927 prohibits the United States from assisting 
any new government in Cuba as it makes the difficult transition 
to democracy.
          The bill conditions the provision of any assistance 
        to a transition government on compliance with all of 
        the 18 conditions contained in title II.
          While all of the conditions in the bill are valid, it 
        is unlikely that any government in the world emerging 
        from 36 years of totalitarian rule will be able to meet 
        them.
          This bill ensures that the United States will sit on 
        the sidelines during the transition.
    Fourth, H.R. 927 creates a brave new world of bureaucratic 
and legal red tape, with counterproductive results:
          The bill's sugar provisions address a problem--third-
        party exports of Cuban sugar to the United States--that 
        doesn't exist. It burdens the U.S. Customs Service with 
        additional monitoring requirements that will detract 
        from its ability to carry out other important public 
        health and safety functions, including intercepting 
        contraband, particularly narcotics, and deterring the 
        illegal export of sensitive technology. Other 
        countries, in turn, may retaliate against U.S. 
        exporters.
          It is a litigation magnet. It will tie up U.S. courts 
        for years to come because it creates an entirely new 
        right to sue that is likely to attract thousands of 
        lawsuits.
          It vastly complicates the visa issuance process by 
        establishing an unenforceable new criterion--
        trafficking in confiscated property of U.S. nationals--
        for exclusion of aliens. Consular officers will be 
        asked to make visa decisions in absence of 
        authoritative or reliable information about such 
        property transactions.
Title II: Assistance to a Transition Government
    The concept behind title II of the bill is on target. The 
Cuban people need to know the United States stands ready to 
assist them in what will be a difficult transition from 
communist rule to a democracy. The United States should be 
preparing now for such a change in Cuba.
    The rigidities of title II, however, undermine its purpose. 
The terms and conditions mandated in Title II would freeze the 
United States out of helping the transition once it begins. 
They would prevent the President from providing assistance to a 
transition in Cuba until that transition is complete.
    The bill's criteria for a transition government or a 
democratically-elected government are laudable and should be 
weighed carefully in any decision to providing assistance to 
Cuba. But as we have seen in Eastern Europe and the former 
Soviet Union, the transition to democracy can be a long and 
painful process. The institutions essential to democracy are 
often entirely absent initially and must be built from the 
ground up.
    Instead of rigid conditions, we need a framework to ensure 
that the United States can act, not just watch, when change 
comes to Cuba.
          The President needs to be able to respond to positive 
        change quickly during a messy political transition.
          We need to preserve bench marks to help determine 
        whether fundamental change has truly taken place in 
        Cuba, but we must also allow the President to act 
        before each of the bill's 18 conditions are met.

Title III--Property Rights

    Our concern with H.R. 927 is not whether someone is a U.S. 
citizen of when someone becomes a U.S. citizen. Our concern is 
that this bill creates a special right to sue in U.S. courts 
that is available only to those who have lost property in Cuba. 
We do not believe that those who lost property in Cuba are more 
deserving than those who lost property in Germany, Eastern 
Europe, Vietnam, or Russia.
    U.S. policy should balance three distinct interests:
          Protecting the rights of all Americans with property 
        claims in Cuba;
          Protecting the interests of American investors 
        worldwide; and
          Helping the economic viability of a post-Castro, 
        democratic Cuba.
    H.R. 927 does not advance the first, and does clear harm to 
the other two interests.
    First, this bill will damage the interests of Americans 
with existing property claims in Cuba, without guaranteeing 
fair compensation for the new claimants it would create.
          This bill undermines current certified claims for 
        Cuban property because it moves the claims settlement 
        process into federal court. The Cuban Government will 
        be reluctant to work out any agreement on certified 
        claims if U.S. courts are simultaneously considered 
        lawsuits on the same or related properties.
          This bill invites anyone who has had property 
        confiscated in Cuba over the past 35 years--whether a 
        U.S. citizen or not--to rush to incorporate in the U.S. 
        and file a lawsuit in U.S. federal courts. A legal 
        free-for-all will result. Compensation will go to those 
        with the best lawyers who file suits against the 
        defendants with the deepest pockets. Limited resources 
        available for compensation will be quickly depleted 
        with little view toward equitable distribution among 
        the entire claimant pool.
          By creating a new right to sue, the bill undermines 
        the ability of the U.S. Government to ensure that the 
        interest of all Americans will be fairly represented.
          To address expropriated property issues, existing law 
        (section 527 of Public Law 103-236, the Foreign 
        Relations Authorization Act, Fiscal Years 1994 and 
        1995) already conditions U.S. assistance to a new Cuban 
        Government on the implementation of an effective 
        claims-settlement system.
          U.S. policy is to press future Cuban governments to 
        return or provide compensation for properties 
        expropriated from any American, regardless of when they 
        became a U.S. citizen.
    Second, this bill will make it harder to protect the 
property rights of Americans around the world. By creating a 
special right to sue for U.S. citizens or corporations that 
lost property in Cuba, the bill turns existing international 
law on its head.
          U.S. investments worldwide would be in jeopardy if 
        other countries follow our lead and allow their 
        nationals and companies to sue in their courts for 
        property in their countries. American investments in 
        disputed properties--throughout the former communist 
        bloc, for example--would be at risk if the principles 
        in this bill become accepted international practice.
          If the practice for Cuban property claims in this 
        bill were followed elsewhere, no bilateral property 
        agreement would be safe from subsequent litigation.
    Finally, the legal uncertainties created by this bill 
damage Cuba's prospects for a successful transition to 
democracy and a free-market system. Because investors could 
never be sure whether a piece of property had been, or could 
be, claimed by a U.S. citizen--or by someone who has 
incorporated in the United States--they will be skittish about 
making financial commitments.
          Helping Cubans build a democratic government and a 
        free-market economy will be the top priority for the 
        United States in the post-Castro environment.
          Cuba's future economic success will depend critically 
        upon new foreign and domestic investment. Yet a 
        declining foreign assistance budget means that U.S. 
        government assistance to Cuba will be limited.
    In sum, Title III will not solve problems--it will simply 
create more problems. It will not compensate those who have 
lost property in Cuba. It will jeopardize existing certified 
claims for Cuban property. It will also jeopardize U.S. 
claimants and investors elsewhere in the world.

Title IV--Visa Restrictions

    Title IV of H.R. 927 will not work.
    Title IV will require every U.S. consular officer to ask 
new questions of every visa applicant everywhere in the world. 
Title IV is not limited to Cuban property issues--it applies to 
property issues worldwide. A consular officer will have to ask 
all visa applicants:
          Have you every bought property?
          Can you prove that the person you bought it from did 
        not confiscate it from someone else?
          Can you prove that the person they bought it from did 
        not confiscate it from someone else?
          Are you a principal shareholder in a company that 
        owns property? If so where is it, who owned it before, 
        and can you prove it wasn't confiscated?
    The questions go on and on. No matter what the answers, the 
consular officer will have no basis for evaluating the 
information provided--and no ability to enforce the law.
    In the case of visa-waiver countries--most countries in 
Western Europe, as well as Canada and Japan--the burden of 
determining property ownership would be on the Immigration and 
Naturalization Service (INS) at every point of entry into the 
United States.
    The INS is currently overwhelmed by its task of keeping 
illegal aliens from entering the United States. H.R. 927 will 
force the overburdened INS to spend its time looking at reams 
of financial information--which it has no ability to evaluate. 
H.R. 927 will take INS and consular officers away from their 
real jobs--preventing terrorists, drug traffickers, and felons 
from getting visas, and ensuring that illegal aliens do not 
enter the United States.
    Title IV is so broadly written that it would capture 
entirely innocent people. People who may have followed all 
applicable local laws when investing or purchasing property 
could be punished for actions taken by others over 30 years ago 
that they are entirely unaware of.
    Title IV also violates NAFTA and the Uruguay Round Trade 
Agreement, which allow countries to restrict business travel 
only for public health and national security reasons.
    This is not a theoretical concern. If this provision were 
enacted, an executive for a Canadian company could be barred 
from entering the United States because his or her company had 
some involvement with confiscated property in the 1960s--
perhaps before the executive was born. The Canadian and Mexican 
Governments consider this provision to be a violation of NAFTA, 
and have said they will initiate dispute-settlement proceedings 
against the United States if it is enacted.
    This provision could also inspire trade and immigration 
retaliation that hurts U.S. exports and jobs. Countries with 
protectionist tendencies will welcome a new rationale for 
keeping U.S. business and exports out of their country.

A Policy of Engagement, Not Isolation

    We all agree that Castro must go. We all agree that Cuba 
must make the difficult transition to democracy and free 
markets. The question is how to achieve that goal and advance 
the U.S. national interest. We believe the choice is clear: We 
should engage the Cuban people to bring about a peaceful 
transition, rather than increase their isolation and hardship 
in the hope of igniting a violent confrontation.
    A policy of contact, dialogue, and exchange with Eastern 
Europe and the former Soviet Union helped foster a democratic 
revolution. A new generation in Eastern Europe saw that the 
world could be different, and they made their world different.
    Those who favor increased isolation of Cuba have a 
responsibility to explain why the engagement that helped kill 
communism in Eastern Europe and the Soviet Union should not be 
the hallmark of our policy toward Cuba.
    Throughout the past 36 years, Castro has used two 
mechanisms to relieve pressure on his regime--letting his 
people take to the seas and appealing to Cuban nationalism. 
This bill hands Castro a fresh deck of nationalist cards. He is 
already playing his hand. In recent weeks, Castro has been 
travelling the island using this bill to justify his practices. 
This bill, he says, proves that exiled Cubans want to turn the 
clock back to 1958.
    The message should be clear to all: this bill gives Castro 
new scapegoats to distract the Cuban people from their real 
problem: Castro's authoritarian system.
    We should not hand Castro more excuses. A transition in 
Cuba is already beginning. Economic reform, forced by the end 
of Soviet subsidies, has given a small but growing number of 
Cubans economic independence for the first time in 36 years. 
The Catholic Church is playing an increasing role. Small groups 
of Cuban citizens are gathering to discuss life after Castro. 
U.S. policy should build on these first signs of change--to 
engage, encourage and accelerate change, not stifle it through 
a policy of isolation.

Conclusion

    H.R. 927 increases the likelihood that political change in 
Cuba, when it comes, will not be peaceful, but violent.
    H.R. 927 puts at risk U.S. relations with Canada, Mexico, 
Japan, and our closest allies in Europe in an effort to 
increase Cuba's isolation.
    H.R. 927 creates an administrative and legal nightmare, for 
the U.S. Customs Service, the U.S. court system, and U.S. 
consular officers everywhere.
    H.R. 927 is an extreme bill that damages the U.S. national 
interest.

                                   Lee H. Hamilton.
                                   Matthew G. Martinez.
                                   Harry Johnston.
                                   Jim Moran.
                                   Albert R. Wynn.
                                   Donald M. Payne.
                                   Victor O. Frazer.
                                   Sam Gejdenson.