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104th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 2d Session                                                     104-468
_______________________________________________________________________


 
     CUBAN LIBERTY AND DEMOCRATIC SOLIDARITY (LIBERTAD) ACT OF 1996

                                _______


                 March 1, 1996.--Ordered to be printed

_______________________________________________________________________


 Mr. Gilman, from the committee of conference, submitted the following

                           CONFERENCE REPORT

                        [To accompany H.R. 927]

      The committee of conference on the disagreeing votes of 
the two Houses on the amendment of the Senate to 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 met, after full and free 
conference, have agreed to recommend and do recommend to their 
respective Houses as follows:
      That the House recede from its disagreement to the 
amendment of the Senate and agree to the same with an amendment 
as follows:
      In lieu of the matter proposed to be inserted by the 
Senate amendment, insert 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 1996''.
    (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.
Sec. 5. Severability.

   TITLE I--STRENGTHENING INTERNATIONAL 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 Cuba.
Sec. 104. United States opposition to Cuban membership in international 
          financial institutions.
Sec. 105. United States opposition to termination of the suspension of 
          the Cuban Government from participation in 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 commerce with, and assistance to, Cuba from other 
          foreign countries.
Sec. 109. Authorization of support for democratic and human rights 
          groups and international observers.
Sec. 110. Importation safeguard against certain Cuban products.
Sec. 111. Withholding of foreign assistance from countries supporting 
          Juragua nuclear plant in Cuba.
Sec. 112. Reinstitution of family remittances and travel to Cuba.
Sec. 113. Expulsion of criminals from Cuba.
Sec. 114. News bureaus in Cuba.
Sec. 115. Effect of Act on lawful United States Government activities.
Sec. 116. Condemnation of Cuban attack on American aircraft.

           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. Assistance for the Cuban people.
Sec. 203. Coordination of assistance program; implementation and reports 
          to Congress; reprogramming.
Sec. 204. Termination of the economic embargo of Cuba.
Sec. 205. Requirements and factors for determining a transition 
          government.
Sec. 206. Requirements for determining a democratically elected 
          government.
Sec. 207. Settlement of outstanding United States claims to confiscated 
          property in Cuba.

   TITLE III--PROTECTION OF PROPERTY RIGHTS OF UNITED STATES NATIONALS

Sec. 301. Findings.
Sec. 302. Liability for trafficking in confiscated property claimed by 
          United States nationals.
Sec. 303. Proof of ownership of claims to confiscated property.
Sec. 304. Exclusivity of Foreign Claims Settlement Commission 
          certification procedure.
Sec. 305. Limitation of actions.
Sec. 306. Effective date.

                  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) Amendments to the Foreign Assistance Act of 
        1961 made by the FREEDOM Support Act require 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 47-139 on December 18, 1992, Resolution 48-
        142 on December 20, 1993, and Resolution 49-200 on 
        December 23, 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--
            (1) to assist the Cuban people in regaining their 
        freedom and prosperity, as well as in joining the 
        community of democratic countries that are flourishing 
        in the Western Hemisphere;
            (2) to strengthen international sanctions against 
        the Castro government;
            (3) 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 by the Castro 
        government, and the political manipulation by the 
        Castro government of the desire of Cubans to escape 
        that results in mass migration to the United States;
            (4) to encourage the holding of free and fair 
        democratic elections in Cuba, conducted under the 
        supervision of internationally recognized observers;
            (5) to provide a policy framework for United States 
        support to the Cuban people in response to the 
        formation of a transition government or a 
        democratically elected government in Cuba; and
            (6) to protect United States nationals against 
        confiscatory takings and the wrongful trafficking in 
        property confiscated by the Castro regime.

SEC. 4. DEFINITIONS.

    As used in this Act, the following terms have the following 
meanings:
            (1) Agency or instrumentality of a foreign state.--
        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.
            (2) 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.
            (3) Commercial activity.--The term ``commercial 
        activity'' has the meaning given that term in section 
        1603(d) of title 28, United States Code.
            (4) 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 of 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.
            (5) 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 each reference in such section to ``a 
        foreign state'' deemed to be a reference to ``Cuba''.
            (6) 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 206.
            (7) Economic embargo of cuba.--The term ``economic 
        embargo of Cuba'' refers to--
                    (A) the economic embargo (including all 
                restrictions on trade or transactions with, and 
                travel to or from, Cuba, and all restrictions 
                on transactions in property in which Cuba or 
                nationals of Cuba have an interest) that was 
                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 
                Cuban Democracy Act of 1992 (22 U.S.C. 6001 and 
                following), or any other provision of law; and
                    (B) the restrictions imposed by section 
                902(c) of the Food Security Act of 1985.
            (8) 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, or any commonwealth, 
                territory, or possession of the United States.
            (9) Knowingly.--The term ``knowingly'' means with 
        knowledge or having reason to know.
            (10) Official of the cuban government or the ruling 
        political party in cuba.--The term ``official of the 
        Cuban Government or the ruling political party in 
        Cuba'' refers to any member of the Council of 
        Ministers, Council of State, central committee of the 
        Communist Party of Cuba, or the Politburo of Cuba, or 
        their equivalents.
            (11) Person.--The term ``person'' means any person 
        or entity, including any agency or instrumentality of a 
        foreign state.
            (12) 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'' does 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 held 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 an 
                official of the Cuban Government or the ruling 
                political party in Cuba.
            (13) Traffics.--(A) As used in title III, and 
        except as provided in subparagraph (B), a person 
        ``traffics'' in confiscated property if that person 
        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 
                clause (i) or (ii)) by another person, or 
                otherwise engages in trafficking (as described 
                in clause (i) or (ii)) through another person,
        without the authorization of any 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;
                    (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;
                    (iii) transactions and uses of property 
                incident to lawful travel to Cuba, to the 
                extent that such transactions and uses of 
                property are necessary to the conduct of such 
                travel; or
                    (iv) transactions and uses of property by a 
                person who is both a citizen of Cuba and a 
                resident of Cuba, and who is not an official of 
                the Cuban Government or the ruling political 
                party in Cuba.
            (14) Transition government in cuba.--The term 
        ``transition government in Cuba'' means a government 
        that the President determines is a transition 
        government consistent with the requirements and factors 
        set forth in section 205.
            (15) 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, or 
                any commonwealth, territory, or possession of 
                the United States, and which has its principal 
                place of business in the United States.

SEC. 5. SEVERABILITY.

    If any provision of this Act or the amendments made by this 
Act or the application thereof to any person or circumstance is 
held invalid, the remainder of this Act, the amendments made by 
this Act, or the application thereof to other persons not 
similarly situated or to other circumstances shall not be 
affected by such invalidation.

   TITLE I--STRENGTHENING INTERNATIONAL 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, 
        employing efforts similar to consultations conducted by 
        United States representatives with respect to Haiti;
            (3) any resumption of efforts by any independent 
        state of the former Soviet Union to make operational 
        any nuclear facilities in Cuba, and any continuation of 
        intelligence activities by such a state from Cuba that 
        are targeted at the United States and its citizens will 
        have a detrimental impact on United States assistance 
        to such state; and
            (4) in view of the threat to the national security 
        posed by the operation of any nuclear facility, and the 
        Castro government's continuing blackmail to unleash 
        another wave of Cuban refugees fleeing from Castro's 
        oppression, most of whom find their way to United 
        States shores, further depleting limited humanitarian 
        and other resources of the United States, the President 
        should do all in his power to make it clear to the 
        Cuban Government that--
                    (A) the completion and operation of any 
                nuclear power facility, or
                    (B) any further political manipulation of 
                the desire of Cubans to escape that results in 
                mass migration to the United States,
        will be considered an act of aggression which will be 
        met with an appropriate response in order to maintain 
        the security of the national borders of the United 
        States and the health and safety of the American 
        people.

SEC. 102. ENFORCEMENT OF THE ECONOMIC EMBARGO OF CUBA.

    (a) Policy.--
            (1) Restrictions by other countries.--The Congress 
        hereby reaffirms section 1704(a) of the Cuban Democracy 
        Act of 1992, which states that the President should 
        encourage foreign countries to restrict trade and 
        credit relations with Cuba in a manner consistent with 
        the purposes of that Act.
            (2) Sanctions on other countries.--The Congress 
        further urges the President to take immediate steps to 
        apply the sanctions described in section 1704(b)(1) of 
        that Act against countries assisting Cuba.
    (b) Diplomatic Efforts.--The Secretary of State should 
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 shall 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)), as added by Public Law 102-484, 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 direction of the 
Secretary of the Treasury, be forfeited to the United States 
Government.
    ``(3) 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.
    ``(4) 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) Conforming amendment; criminal forfeiture.--
        Section 16 of the Trading with the Enemy Act is further 
        amended by striking subsection (b), as added by Public 
        Law 102-393.
            (3) Clerical amendments.--Section 16 of the Trading 
        with the Enemy Act is further amended--
                    (A) by inserting ``Sec. 16.'' before 
                ``(a)''; and
                    (B) in subsection (a) by striking 
                ``participants'' and inserting 
                ``participates''.
    (e) Denial of Visas to Certain Cuban Nationals.--It is the 
sense of the Congress that the President should instruct the 
Secretary of State and the Attorney General to enforce fully 
existing regulations to deny visas to Cuban nationals 
considered by the Secretary of State to be officers or 
employees of the Cuban Government or of the Communist Party of 
Cuba.
    (f) 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 each reference in such section to `a foreign 
        state' deemed to be a reference to `Cuba'.''.
    (g) Telecommunications Services.--Section 1705(e) of the 
Cuban Democracy Act of 1992 (22 U.S.C. 6004(e)) is amended by 
adding at the end the following new paragraph:
            ``(5) Prohibition on investment in domestic 
        telecommunications services.--Nothing in this 
        subsection shall be construed to authorize the 
        investment by any United States person in the domestic 
        telecommunications network within Cuba. For purposes of 
        this paragraph, an `investment' in the domestic 
        telecommunications network within Cuba includes the 
        contribution (including by donation) of funds or 
        anything of value to or for, and the making of loans to 
        or for, such network.
            ``(6) Reports to congress.--The President shall 
        submit to the Congress on a semiannual basis a report 
        detailing payments made to Cuba by any United States 
        person as a result of the provision of 
        telecommunications services authorized by this 
        subsection.''.
    (h) Codification of Economic Embargo.--The economic embargo 
of Cuba, as in effect on March 1, 1996, including all 
restrictions under part 515 of title 31, Code of Federal 
Regulations, shall be in effect upon the enactment of this Act, 
and shall remain in effect, subject to section 204 of this Act.

SEC. 103. PROHIBITION AGAINST INDIRECT FINANCING OF CUBA.

    (a) Prohibition.--Notwithstanding any other provision of 
law, no loan, credit, or other financing may be extended 
knowingly by a United States national, a permanent resident 
alien, or a United States agency to any person for the purpose 
of financing 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, except for financing by 
the United States national owning such claim for a transaction 
permitted under United States law.
    (b) Suspension and Termination of Prohibition.--
            (1) Suspension.--The President is authorized to 
        suspend the prohibition contained in subsection (a) 
        upon a determination made under section 203(c)(1) that 
        a transition government in Cuba is in power.
            (2) Termination.--The prohibition contained in 
        subsection (a) shall cease to apply on the date on 
        which the economic embargo of Cuba terminates as 
        provided in section 204.
    (c) Penalties.--Violations of subsection (a) shall be 
punishable by such civil 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 lawfully 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) In general.--Except as provided in paragraph 
        (2), the Secretary of the Treasury shall instruct the 
        United States executive director of 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 the President submits 
        a determination under section 203(c)(3) that a 
        democratically elected government in Cuba is in power.
            (2) Transition government.--Once the President 
        submits a determination under section 203(c)(1) that a 
        transition government in Cuba is in power--
                    (A) 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, and
                    (B) the Secretary of the Treasury is 
                authorized to instruct the United States 
                executive director of each international 
                financial institution to support loans or other 
                assistance to Cuba only to the extent that such 
                loans or assistance contribute to a stable 
                foundation for a democratically elected 
                government in Cuba.
    (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 such 
institution an amount equal to the amount of the loan or other 
assistance, with respect to either 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 TERMINATION OF THE SUSPENSION OF 
                    THE CUBAN GOVERNMENT FROM PARTICIPATION IN THE 
                    ORGANIZATION OF AMERICAN STATES.

    The President should instruct the United States Permanent 
Representative to the Organization of American States to oppose 
and vote against any termination of the suspension of the Cuban 
Government from participation in 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 toward 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) In general.--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 
        new paragraph:
            ``(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) Definition.--Subsection (k) of section 498B of 
        that Act (22 U.S.C. 2295b(k)) is amended by adding at 
        the end the following new paragraph:
            ``(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 debt of the Cuban Government 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 each reference in such section to `a 
        foreign state' deemed to be a reference to `Cuba'.''.
            (3) Exception.--Section 498A(c) of the Foreign 
        Assistance Act of 1961 (22 U.S.C. 2295A(c)) is amended 
        by inserting after paragraph (3) the following new 
        paragraph:
            ``(4) The assistance is provided under the 
        secondary school exchange program administered by the 
        United States Information Agency.''.
    (d) Facilities at Lourdes, Cuba.--
            (1) Disapproval of credits.--The Congress expresses 
        its strong disapproval of the extension by Russia of 
        credits equivalent to $200,000,000 in support of the 
        intelligence facility at Lourdes, Cuba, in November 
        1994.
            (2) Reduction in assistance.--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) Reduction in assistance.--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 Act 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) Waiver.--(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 under 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) Exceptions to reductions in assistance.--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 or rule 
                of law activities;
                    ``(C) technical assistance for safety 
                upgrades of civilian nuclear power plants;
                    ``(D) the creation of private sector or 
                nongovernmental organizations that are 
                independent of government control;
                    ``(E) the development of a free market 
                economic system;
                    ``(F) assistance under the secondary school 
                exchange program administered by the United 
                States Information Agency; or
                    ``(G) 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 COMMERCE WITH, AND ASSISTANCE TO, CUBA FROM OTHER 
                    FOREIGN COUNTRIES.

    (a) Reports Required.--Not later than 90 days after the 
date of the enactment of this Act, and by January 1 of each 
year thereafter until the President submits a determination 
under section 203(c)(1), the President shall submit a report to 
the appropriate congressional committees on commerce with, and 
assistance to, 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 
available:
            (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 and 
        business firms 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 as to whether or not any of the 
        facilities described in paragraph (3) is the subject of 
        a claim against Cuba by a United States national.
            (5) A determination of the amount of debt of the 
        Cuban Government that is 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 the foreign 
                country that has been exchanged, forgiven, or 
                reduced 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 assure 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 Cuba 
        or that otherwise have entered into agreements with 
        Cuba that have a military application, including--
                    (A) a description of the military supplies, 
                equipment, or other material sold, bartered, or 
                exchanged between Cuba and such countries,
                    (B) a listing of the goods, services, 
                credits, or other consideration received by 
                Cuba in exchange for military supplies, 
                equipment, or material, and
                    (C) the terms or conditions of any such 
                agreement.

SEC. 109. AUTHORIZATION OF SUPPORT FOR DEMOCRATIC AND HUMAN RIGHTS 
                    GROUPS AND INTERNATIONAL OBSERVERS.

    (a) Authorization.--Notwithstanding any other provision of 
law (including section 102 of this Act), 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) For support of human rights and elections.--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) Action of other member states.--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) Voluntary contributions for fund.--
        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 solely for the 
        purposes of the special fund referred to in paragraph 
        (1).
    (c) Denial of Funds to the Cuban Government.--In 
implementing this section, the President shall take all 
necessary steps to ensure that no funds or other assistance is 
provided to the Cuban Government.

SEC. 110. IMPORTATION SAFEGUARD AGAINST CERTAIN CUBAN PRODUCTS.

    (a) Prohibition on Import of and Dealings in Cuban 
Products.--The Congress notes that section 515.204 of title 31, 
Code of Federal Regulations, prohibits the entry of, and 
dealings outside the United States in, merchandise that--
            (1) is of Cuban origin;
            (2) is or has been located in or transported from 
        or through Cuba; or
            (3) is made or derived in whole or in part of any 
        article which is the growth, produce, or manufacture of 
        Cuba.
    (b) Effect of NAFTA.--The Congress notes that United States 
accession to the North American Free Trade Agreement does not 
modify or alter the United States sanctions against Cuba. The 
statement of administrative action accompanying that trade 
agreement specifically states the following:
            (1) ``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.''.
            (2) ``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 U.S. 
        products are not exported to Cuba through those 
        countries.''.
    (c) Restriction of Sugar Imports.--The Congress notes that 
section 902(c) of the Food Security Act of 1985 (Public Law 99-
198) requires the President not to allocate any of the sugar 
import quota to a country that is a net importer of sugar 
unless appropriate officials of that country verify to the 
President that the country does not import for reexport to the 
United States any sugar produced in Cuba.
    (d) Assurances Regarding Sugar Products.--Protection of 
essential security interests of the United States requires 
assurances that sugar products that are entered, or withdrawn 
from warehouse for consumption, into the customs territory of 
the United States are not products of Cuba.

SEC. 111. WITHHOLDING OF FOREIGN ASSISTANCE FROM COUNTRIES SUPPORTING 
                    JURAGUA NUCLEAR PLANT IN CUBA.

    (a) Findings.--The Congress makes the following findings:
            (1) President Clinton stated in April 1993 that the 
        United States opposed the construction of the Juragua 
        nuclear power plant because of the concerns of the 
        United States 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 the 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 coast of the Gulf of Mexico 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 or rule of 
                law activities;
                    (C) the creation of private sector or 
                nongovernmental organizations that are 
                independent of government control;
                    (D) the development of a free market 
                economic system;
                    (E) assistance for the purposes described 
                in the Cooperative Threat Reduction Act of 1993 
                (title XII of Public Law 103-160); or
                    (F) assistance under the secondary school 
                exchange program administered by the United 
                States Information Agency.
            (3) Definition.--As used in paragraph (1), the term 
        ``assistance'' means assistance under the Foreign 
        Assistance Act of 1961, credits, sales, guarantees of 
        extensions of credit, and other assistance 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, and any other program of assistance or 
        credits provided by the United States to other 
        countries under other provisions of law.

SEC. 112. REINSTITUTION OF FAMILY REMITTANCES AND TRAVEL TO CUBA.

    It is the sense of the Congress that the President should--
            (1)(A) before considering the reinstitution of 
        general licenses for family remittances to Cuba, insist 
        that, prior to such reinstitution, the Cuban Government 
        permit the unfettered operation of small businesses 
        fully empowered with the right to hire others to whom 
        they may pay wages and to buy materials necessary in 
        the operation of the businesses, and with such other 
        authority and freedom as are required to foster the 
        operation of small businesses throughout Cuba; and
            (B) if licenses described in subparagraph (A) are 
        reinstituted, require a specific license for 
        remittances described in subparagraph (A) in amounts of 
        more than $500; and
            (2) before considering the reinstitution of general 
        licenses for travel to Cuba by individuals resident in 
        the United States who are family members of Cuban 
        nationals who are resident in Cuba, insist on such 
        actions by the Cuban Government as abrogation of the 
        sanction for departure from Cuba by refugees, release 
        of political prisoners, recognition of the right of 
        association, and other fundamental freedoms.

SEC. 113. EXPULSION OF CRIMINALS FROM CUBA.

    The President shall instruct all United States Government 
officials who engage in official contacts 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.

SEC. 114. NEWS BUREAUS IN CUBA.

    (a) Establishment of News Bureaus.--The President is 
authorized to establish and implement an exchange of news 
bureaus between the United States and Cuba, if the exchange 
meets the following conditions:
            (1) The exchange is fully reciprocal.
            (2) The Cuban Government agrees not to interfere 
        with the establishment of news bureaus or with the 
        movement in Cuba of journalists of any United States-
        based news organizations, including Radio Marti and 
        Television Marti.
            (3) The Cuban Government agrees not to interfere 
        with decisions of United States-based news 
        organizations with respect to individuals assigned to 
        work as journalists in their news bureaus in Cuba.
            (4) The Department of the Treasury is able to 
        ensure that only accredited journalists regularly 
        employed with a news gathering organization travel to 
        Cuba under this subsection.
            (5) The Cuban Government agrees not to interfere 
        with the transmission of telecommunications signals of 
        news bureaus or with the distribution within Cuba of 
        publications of any United States-based news 
        organization that has a news bureau in Cuba.
    (b) Assurance Against Espionage.--In implementing this 
section, the President shall take all necessary steps to ensure 
the safety and security of the United States against espionage 
by Cuban journalists it believes to be working for the 
intelligence agencies of the Cuban Government.
    (c) Fully Reciprocal.--As used in subsection (a)(1), the 
term ``fully reciprocal'' means that all news services, news 
organizations, and broadcasting services, including such 
services or organizations that receive financing, assistance, 
or other support from a governmental or official source, are 
permitted to establish and operate a news bureau in the United 
States and Cuba.

SEC. 115. EFFECT OF ACT ON LAWFUL UNITED STATES GOVERNMENT ACTIVITIES.

    Nothing in this Act prohibits any lawfully authorized 
investigative, protective, or intelligence activity of a law 
enforcement agency, or of an intelligence agency, of the United 
States.

SEC. 116. CONDEMNATION OF CUBAN ATTACK ON AMERICAN AIRCRAFT.

    (a) Findings.--The Congress makes the following findings:
            (1) Brothers to the Rescue is a Miami-based 
        humanitarian organization engaged in searching for and 
        aiding Cuban refugees in the Straits of Florida, and 
        was engaged in such a mission on Saturday, February 24, 
        1996.
            (2) The members of Brothers to the Rescue were 
        flying unarmed and defenseless planes in a mission 
        identical to hundreds they have flown since 1991 and 
        posted no threat whatsoever to the Cuban Government, 
        the Cuban military, or the Cuban people.
            (3) Statements by the Cuban Government that 
        Brothers to the Rescue has engaged in covert 
        operations, bombing campaigns, and commando operations 
        against the Government of Cuba have no basis in fact.
            (4) The Brothers to the Rescue aircraft notified 
        air traffic controllers as to their flight plans, which 
        would take them south of the 24th parallel and close to 
        Cuban airspace.
            (5) International law provides a nation with 
        airspace over the 12-mile territorial sea.
            (6) The response of Fidel Castro's dictatorship to 
        Saturday's afternoon flight was to scramble 2 fighter 
        jets from a Havana airfield.
            (7) At approximately 3:24 p.m., the pilot of one of 
        the Cuban MiGs received permission and proceeded to 
        shoot down one Brothers to the Rescue airplane more 
        than 6 miles north of the Cuban exclusion zone, or 18 
        miles from the Cuban coast.
            (8) Approximately 7 minutes later, the pilot of the 
        Cuban fighter jet received permission and proceeded to 
        shoot down the second Brothers to the Rescue airplane 
        almost 18.5 miles north of the Cuban exclusion zone, or 
        30.5 miles from the Cuban coast.
            (9) The Cuban dictatorship, if it truly felt 
        threatened by the flight of these unarmed aircraft, 
        could have and should have pursued other peaceful 
        options as required by international law.
            (10) The response chosen by Fidel Castro, the use 
        of lethal force, was completely inappropriate to the 
        situation presented to the Cuban Government, making 
        such actions a blatant and barbaric violation of 
        international law and tantamount to cold-blooded 
        murder.
            (11) There were no survivors of the attack on these 
        aircraft, and the crew of a third aircraft managed to 
        escape this criminal attack by Castro's Air Force.
            (12) The crew members of the destroyed planes, 
        Pablo Morales, Carlos Costa, Mario de la Pena, and 
        Armando Alejandre, were United States citizens from 
        Miami flying with Brothers to the Rescue on a voluntary 
        basis.
            (13) It is incumbent upon the United States 
        Government to protect the lives and livelihoods of 
        United States citizens as well as the rights of free 
        passage and humanitarian missions.
            (14) This premeditated act took place after a week-
        long waive of repression by the Cuban Government 
        against Concilio Cubano, an umbrella organization of 
        human rights activists, dissidents, independent 
        economists, and independent journalists, among others.
            (15) The waive of repression against Concilio 
        Cubano, whose membership is committed to peaceful 
        democratic change in Cuba, included arrests, strip 
        searches, house arrests, and in some cases sentences to 
        more than 1 year in jail.
    (b) Statements by the Congress.--(1) The Congress strongly 
condemns the act of terrorism by the Castro regime in shooting 
down the Brothers to the Rescue aircraft on February 24, 1996.
    (2) The Congress extends its condolences to the families of 
Pablo Morales, Carlos Costa, Mario de la Pena, and Armando 
Alejandre, the victims of the attack.
    (3) The Congress urges the President to seek, in the 
International Court of Justice, indictment for this act of 
terrorism by Fidel Castro.

          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 trade relations with a free, 
        democratic, and independent Cuba.

SEC. 202. 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 subject to an authorization 
        of appropriations and subject to the availability of 
        appropriations.
    (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) may, subject to an 
        authorization of appropriations and subject to the 
        availability of appropriations, include the following:
                    (A) Transition government.--(i) Except as 
                provided in clause (ii), assistance to Cuba 
                under a transition government shall, subject to 
                an authorization of appropriations and subject 
                to the availability of appropriations, 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 in addition to assistance 
                under clause (i) may be provided, but only 
                after the President certifies to the 
                appropriate congressional committees, in 
                accordance with procedures applicable to 
                reprogramming notifications under section 634A 
                of the Foreign Assistance Act of 1961, that 
                such assistance is essential to the successful 
                completion of the transition to democracy.
                    (iii) Only after a transition government in 
                Cuba is in power, freedom of individuals to 
                travel to visit their relatives without any 
                restrictions shall be permitted.
                    (B) Democratically elected government.--
                Assistance to a democratically elected 
                government in Cuba may, subject to an 
                authorization of appropriations and subject to 
                the availability of appropriations, consist of 
                economic assistance in addition to assistance 
                available under subparagraph (A), 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; and
                            (vii) 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) 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.
    (g) 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.
    (h) Report on Trade and Investment Relations.--
            (1) Report to congress.--The President, following 
        the transmittal to the Congress of a determination 
        under section 203(c)(3) that a democratically elected 
        government in Cuba is in power, shall submit to the 
        Committee on Ways and Means of the House of 
        Representatives and the Committee on Finance of the 
        Senate and the appropriate congressional committees a 
        report that describes--
                    (A) acts, policies, and practices which 
                constitute significant barriers to, or 
                distortions of, United States trade in goods or 
                services or foreign direct investment with 
                respect to Cuba;
                    (B) policy objectives of the United States 
                regarding trade relations with a democratically 
                elected government in Cuba, and the reasons 
                therefor, including possible--
                            (i) reciprocal extension of 
                        nondiscriminatory trade treatment 
                        (most-favored-nation treatment);
                            (ii) designation of Cuba as a 
                        beneficiary developing country under 
                        title V of the Trade Act of 1974 
                        (relating to the Generalized System of 
                        Preferences) or as a beneficiary 
                        country under the Caribbean Basin 
                        Economic Recovery Act, and the 
                        implications of such designation with 
                        respect to trade with any other country 
                        that is such a beneficiary developing 
                        country or beneficiary country or is a 
                        party to the North American Free Trade 
                        Agreement; and
                            (iii) negotiations regarding free 
                        trade, including the accession of Cuba 
                        to the North American Free Trade 
                        Agreement;
                    (C) specific trade negotiating objectives 
                of the United States with respect to Cuba, 
                including the objectives described in section 
                108(b)(5) of the North American Free Trade 
                Agreement Implementation Act (19 U.S.C. 
                3317(b)(5)); and
                    (D) actions proposed or anticipated to be 
                undertaken, and any proposed legislation 
                necessary or appropriate, to achieve any of 
                such policy and negotiating objectives.
            (2) Consultation.--The President shall consult with 
        the Committee on Ways and Means of the House of 
        Representatives and the Committee on Finance of the 
        Senate and the appropriate congressional committees and 
        shall seek advice from the appropriate advisory 
        committees established under section 135 of the Trade 
        Act of 1974 regarding the policy and negotiating 
        objectives and the legislative proposals described in 
        paragraph (1).

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 an authorization of appropriations and 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 an authorization of appropriations and 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. 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 consultation with the Congress, is authorized 
to take steps to suspend the economic embargo of Cuba and to 
suspend the right of action created in section 302 with respect 
to actions thereafter filed against the Cuban Government, to 
the extent that such steps contribute 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 respect to the ``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);
            (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, including the restrictions under 
part 515 of title 31, Code of Federal Regulations.
    (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 204(a) of the Cuban Liberty 
        and Democratic Solidarity (LIBERTAD) Act of 1996 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. 205. REQUIREMENTS AND FACTORS FOR DETERMINING A TRANSITION 
                    GOVERNMENT.

    (a) Requirements.--For the purposes of this Act, a 
transition government in Cuba is a government that--
            (1) has legalized all political activity;
            (2) has released all political prisoners and 
        allowed for investigations of Cuban prisons by 
        appropriate international human rights organizations;
            (3) has dissolved 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; and
            (4) has made public commitments to organizing free 
        and fair elections for a new government--
                    (A) to be held in a timely manner within a 
                period not to exceed 18 months after the 
                transition government assumes power;
                    (B) 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
                    (C) to be conducted under the supervision 
                of internationally recognized observers, such 
                as the Organization of American States, the 
                United Nations, and other election monitors;
            (5) has ceased any interference with Radio Marti or 
        Television Marti broadcasts;
            (6) makes public commitments to and is making 
        demonstrable progress in--
                    (A) establishing an independent judiciary;
                    (B) 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;
                    (C) 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;
            (7) does not include Fidel Castro or Raul Castro; 
        and
            (8) has given adequate assurances that it will 
        allow the speedy and efficient distribution of 
        assistance to the Cuban people.
    (b) Additional Factors.--In addition to the requirements in 
subsection (a), in determining whether a transition government 
in Cuba is in power, the President shall take into account the 
extent to which that government--
            (1) is demonstrably in transition from a communist 
        totalitarian dictatorship to representative democracy;
            (2) has made public commitments to, and is making 
        demonstrable progress in--
                    (A) effectively guaranteeing the rights of 
                free speech and freedom of the press, including 
                granting permits to privately owned media and 
                telecommunications companies to operate in 
                Cuba;
                    (B) permitting the reinstatement of 
                citizenship to Cuban-born persons returning to 
                Cuba;
                    (C) assuring the right to private property; 
                and
                    (D) 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;
            (3) 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; and
            (4) has permitted the deployment throughout Cuba of 
        independent and unfettered international human rights 
        monitors.

SEC. 206. REQUIREMENTS FOR DETERMINING A DEMOCRATICALLY ELECTED 
                    GOVERNMENT.

    For purposes of this Act, a democratically elected 
government in Cuba, in addition to meeting the requirements of 
section 205(a), is a government which--
            (1) results from free and fair elections--
                    (A) conducted under the supervision of 
                internationally recognized observers; and
                    (B) in which--
                            (i) opposition parties were 
                        permitted ample time to organize and 
                        campaign for such elections; and
                            (ii) all candidates were permitted 
                        full access to the media;
            (2) is showing respect for the basic civil 
        liberties and human rights of the citizens of Cuba;
            (3) is substantially moving toward a market-
        oriented economic system based on the right to own and 
        enjoy property;
            (4) is committed to making constitutional changes 
        that would ensure regular free and fair elections and 
        the full enjoyment of basic civil liberties and human 
        rights by the citizens of Cuba;
            (5) has made demonstrable progress in establishing 
        an independent judiciary; and
            (6) 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.

SEC. 207. SETTLEMENT OF OUTSTANDING UNITED STATES CLAIMS TO CONFISCATED 
                    PROPERTY IN CUBA.

    (a) Report to Congress.--Not later than 180 days after the 
date of the enactment of this Act, the Secretary of State shall 
provide a report to the appropriate congressional committees 
containing an assessment of the property dispute question in 
Cuba, including--
            (1) an estimate of the number and amount of claims 
        to property confiscated by the Cuban Government that 
        are held by United States nationals in addition to 
        those claims certified under section 507 of the 
        International Claims Settlement Act of 1949;
            (2) an assessment of the significance of promptly 
        resolving confiscated property claims to the 
        revitalization of the Cuban economy;
            (3) a review and evaluation of technical and other 
        assistance that the United States could provide to help 
        either a transition government in Cuba or a 
        democratically elected government in Cuba establish 
        mechanisms to resolve property questions;
            (4) an assessment of the role and types of support 
        the United States could provide to help resolve claims 
        to property confiscated by the Cuban Government that 
        are held by United States nationals who did not receive 
        or qualify for certification under section 507 of the 
        International Claims Settlement Act of 1949; and
            (5) an assessment of any areas requiring 
        legislative review or action regarding the resolution 
        of property claims in Cuba prior to a change of 
        government in Cuba.
    (d) Sense of Congress.--It is the sense of the Congress 
that the satisfactory resolution of property claims by a Cuban 
Government recognized by the United States remains an essential 
condition for the full resumption of economic and diplomatic 
relations between the United States and Cuba.

  TITLE III--PROTECTION OF PROPERTY RIGHTS OF UNITED STATES NATIONALS

SEC. 301. FINDINGS.

    The Congress makes the following findings:
            (1) Individuals enjoy a fundamental right to own 
        and enjoy property which is enshrined in the United 
        States Constitution.
            (2) The wrongful confiscation or taking of property 
        belonging to United States nationals by the Cuban 
        Government, and the subsequent exploitation of this 
        property at the expense of the rightful owner, 
        undermines the comity of nations, the free flow of 
        commerce, and economic development.
            (3) Since Fidel Castro seized power in Cuba in 
        1959--
                    (A) he has trampled on the fundamental 
                rights of the Cuban people; and
                    (B) through his personal despotism, he has 
                confiscated the property of--
                            (i) millions of his own citizens;
                            (ii) thousands of United States 
                        nationals; and
                            (iii) thousands more Cubans who 
                        claimed asylum in the United States as 
                        refugees because of persecution and 
                        later became naturalized citizens of 
                        the United States.
            (4) It is in the interest of the Cuban people that 
        the Cuban Government respect equally the property 
        rights of Cuban nationals and nationals of other 
        countries.
            (5) The Cuban Government is offering foreign 
        investors the opportunity to purchase an equity 
        interest in, manage, or enter into joint ventures using 
        property and assets some of which were confiscated from 
        United States nationals.
            (6) This ``trafficking'' in confiscated property 
        provides badly needed financial benefit, including hard 
        currency, oil, and productive investment and expertise, 
        to the current Cuban Government and thus undermines the 
        foreign policy of the United States--
                    (A) to bring democratic institutions to 
                Cuba through the pressure of a general economic 
                embargo at a time when the Castro regime has 
                proven to be vulnerable to international 
                economic pressure; and
                    (B) to protect the claims of United States 
                nationals who had property wrongfully 
                confiscated by the Cuban Government.
            (7) The United States Department of State has 
        notified other governments that the transfer to third 
        parties of properties confiscated by the Cuban 
        Government ``would complicate any attempt to return 
        them to their original owners''.
            (8) The international judicial system, as currently 
        structured, lacks fully effective remedies for the 
        wrongful confiscation of property and for unjust 
        enrichment from the use of wrongfully confiscated 
        property by governments and private entities at the 
        expense of the rightful owners of the property.
            (9) International law recognizes that a nation has 
        the ability to provide for rules of law with respect to 
        conduct outside its territory that has or is intended 
        to have substantial effect within its territory.
            (10) The United States Government has an obligation 
        to its citizens to provide protection against wrongful 
        confiscations by foreign nations and their citizens, 
        including the provision of private remedies.
            (11) To deter trafficking in wrongfully confiscated 
        property, United States nationals who were the victims 
        of these confiscations should be endowed with a 
        judicial remedy in the courts of the United States that 
        would deny traffickers any profits from economically 
        exploiting Castro's wrongful seizures.

SEC. 302. LIABILITY FOR TRAFFICKING IN CONFISCATED PROPERTY CLAIMED BY 
                    UNITED STATES NATIONALS.

    (a) Civil Remedy.--
            (1) Liability for trafficking.--(A) Except as 
        otherwise provided in this section, any person that, 
        after the end of the 3-month period beginning on the 
        effective date of this title, traffics in property 
        which was confiscated by the Cuban Government on or 
        after January 1, 1959, 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 either 
                        the current value of the property, or 
                        the value of the property when 
                        confiscated plus interest, whichever is 
                        greater; and
                    (ii) court costs and reasonable 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 
        confiscation of the property involved to the date on 
        which the action is brought under this subsection.
            (2) Presumption in favor of the certified claims.--
        There shall be a presumption that the amount for which 
        a person is liable under clause (i) of paragraph (1)(A) 
        is the amount that is certified as described in 
        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.--(A) Any person that 
        traffics in confiscated property for which liability is 
        incurred under paragraph (1) shall, if a United States 
        national owns a claim with respect to that property 
        which was certified by the Foreign Claims Settlement 
        Commission under title V of the International Claims 
        Settlement Act of 1949, be liable for damages computed 
        in accordance with subparagraph (C).
            (B) If the claimant in an action under this 
        subsection (other than a United States national to whom 
        subparagraph (A) applies) provides, after the end of 
        the 3-month period described in paragraph (1) notice 
        to--
                    (i) a person against whom the action is to 
                be initiated, or
                    (ii) a person who is to be joined as a 
                defendant in the action,
        at least 30 days before initiating the action or 
        joining such person as a defendant, as the case may be, 
        and that person, after the end of the 30-day period 
        beginning on the date the notice is provided, traffics 
        in the confiscated property that is the subject of the 
        action, then that person shall be liable to that 
        claimant for damages computed in accordance with 
        subparagraph (C).
            (C) Damages for which a person is liable under 
        subparagraph (A) or subparagraph (B) are money damages 
        in an amount equal to the sum of--
                    (i) the amount determined under paragraph 
                (1)(A)(ii), and
                    (ii) 3 times the amount determined 
                applicable under paragraph (1)(A)(i).
            (D) Notice to a person under subparagraph (B)--
                    (i) shall be in writing;
                    (ii) shall be posted by certified mail or 
                personally delivered to the person; and
                    (iii) shall contain--
                            (I) a statement of intention to 
                        commence the action under this section 
                        or to join the person as a defendant 
                        (as the case may be), together with the 
                        reasons therefor;
                            (II) a demand that the unlawful 
                        trafficking in the claimant's property 
                        cease immediately; and
                            (III) a copy of the summary 
                        statement published under paragraph 
                        (8).
            (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, a United States 
        national may not bring an action under this section on 
        a claim to the confiscated property unless such 
        national acquires ownership of the claim before such 
        date of enactment.
            (C) In the case of property confiscated on or after 
        the date of the enactment of this Act, a United States 
        national who, after the property is confiscated, 
        acquires ownership of a claim to the property by 
        assignment for value, may not bring an action on the 
        claim under this section.
            (5) Treatment of certain actions.--(A) In the case 
        of a United States national who was eligible to file a 
        claim with the Foreign Claims Settlement Commission 
        under title V of the International Claims Settlement 
        Act of 1949 but did not so file the claim, that United 
        States national may not bring an action on that claim 
        under this section.
            (B) In the case of any action brought under this 
        section by a United States national whose underlying 
        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 shall accept the 
        findings of the Commission on the claim as conclusive 
        in the action under this section.
            (C) A United States national, other than a United 
        States national bringing an action under this section 
        on a claim certified under title V of the International 
        Claims Settlement Act of 1949, may not bring an action 
        on a claim under this section before the end of the 2-
        year period beginning on the date of the enactment of 
        this Act.
            (D) An interest in property for which a United 
        States national has a claim certified under title V of 
        the International Claims Settlement Act of 1949 may not 
        be the subject of a claim in an action under this 
        section by any other person. Any person bringing an 
        action under this section whose claim has not been so 
        certified shall have the burden of establishing for the 
        court that the interest in property that is the subject 
        of the claim is not the subject of a claim so 
        certified.
            (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) .
            (7) Licenses not required.--(A) Notwithstanding any 
        other provision of law, an action under this section 
        may be brought and may be settled, and a judgment 
        rendered in such action may be enforced, without 
        obtaining any license or other permission from any 
        agency of the United States, except that this paragraph 
        shall not apply to the execution of a judgment against, 
        or the settlement of actions involving, property 
        blocked under the authorities of section 5(b) of the 
        Trading with the Enemy Act that were being exercised on 
        July 1, 1977, as a result of a national emergency 
        declared by the President before such date, and are 
        being exercised on the date of the enactment of this 
        Act.
            (B) Notwithstanding any other provision of law, and 
        for purposes of this title only, any claim against the 
        Cuban Government shall not be deemed to be an interest 
        in property the transfer of which to a United States 
        national required before the enactment of this Act, or 
        requires after the enactment of this Act, a license 
        issued by, or the permission of, any agency of the 
        United States.
            (8) Publication by attorney general.--Not later 
        than 60 days after the date of the enactment of this 
        Act, the Attorney General shall prepare and publish in 
        the Federal Register a concise summary of the 
        provisions of this title, including a statement of the 
        liability under this title of a person trafficking in 
        confiscated property, and the remedies available to 
        United States nationals under this title.
    (b) Amount in Controversy.--An action may be brought under 
this section by a United States national only where the amount 
in controversy exceeds the sum or value of $50,000, exclusive 
of interest, costs, and attorneys' fees. In calculating $50,000 
for purposes of the preceding sentence, the applicable amount 
under subclause (I), (II), or (III) of subsection (a)(1)(A)(i) 
may not be tripled as provided in subsection (a)(3).
    (c) Procedural Requirements.--
            (1) In general.--Except as provided in this title, 
        the provisions of title 28, United States Code, and the 
        rules of the courts of the United States apply to 
        actions under this section to the same extent as such 
        provisions and rules apply to any other action brought 
        under section 1331 of title 28, United States Code.
            (2) Service of process.--In an action under this 
        section, service of process on an agency or 
        instrumentality of a foreign state in the conduct of a 
        commercial activity, or against individuals acting 
        under color of law, shall be made in accordance with 
        section 1608 of title 28, United States Code.
    (d) Enforceability of Judgments Against Cuban Government.--
In an action brought under this section, any judgment against 
an agency or instrumentality of the Cuban Government shall not 
be enforceable against an agency or instrumentality of either a 
transition government in Cuba or a democratically elected 
government in Cuba.
    (e) Certain Property Immune From Execution.--Section 1611 
of title 28, United States Code, is amended by adding at the 
end the following new subsection:
    ``(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 1996 to the extent that the property is a 
facility or installation used by an accredited diplomatic 
mission for official purposes.''.
    (f) 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 commonwealth, 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.--(A) 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--
                    (i) 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;
                    (ii) 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 clause 
                (i) but only to the extent of the difference 
                between the amount of the recovery and the 
                amount of the certified claim; and
                    (iii) 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 clause (i) to the same 
                extent as any certified claimant who does not 
                bring an action under this section.
            (B) In the event some or all actions brought under 
        this section are consolidated by judicial or other 
        action in such manner as to create a pool of assets 
        available to satisfy the claims in such actions, 
        including a pool of assets in a proceeding in 
        bankruptcy, every claimant whose claim in an action so 
        consolidated was certified by the Foreign Claims 
        Settlement Commission under title V of the 
        International Claims Settlement Act of 1949 shall be 
        entitled to payment in full of its claim from the 
        assets in such pool before any payment is made from the 
        assets in such pool with respect to any claim not so 
        certified.
    (g) 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 
(f) shall be deposited into the United States Treasury.
    (h) Termination of Rights.--
            (1) In general.--All rights created under this 
        section to bring an action for money damages with 
        respect to property confiscated by the Cuban 
        Government--
                    (A) may be suspended under section 204(a); 
                and
                    (B) shall cease upon transmittal to the 
                Congress of a determination of the President 
                under section 203(c)(3) that a democratically 
                elected government in Cuba is in power.
            (2) Pending suits.--The suspension or termination 
        of rights under paragraph (1) shall not affect suits 
        commenced before the date of such suspension or 
        termination (as the case may be), 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 the suspension or termination had not 
        occurred.
    (i) Imposition of Filing Fees.--The Judicial Conference of 
the United States shall establish a uniform fee that shall be 
imposed upon the plaintiff or plaintiffs in each action brought 
under this section. The fee should be established at a level 
sufficient to recover the costs to the courts of actions 
brought under this section. The fee under this subsection is in 
addition to any other fees imposed under title 28, United 
States Code.

SEC. 303. PROOF OF OWNERSHIP OF CLAIMS TO CONFISCATED PROPERTY.

    (a) Evidence of Ownership.--
            (1) Conclusiveness of certified claims.--In any 
        action brought under this title, the court shall accept 
        as conclusive proof of ownership of an interest in 
        property a certification of a claim to ownership of 
        that interest that has been made by the Foreign Claims 
        Settlement Commission under title V of the 
        International Claims Settlement Act of 1949 (22 U.S.C. 
        1643 and following).
            (2) Claims not certified.--If in an action under 
        this title a claim has not been so certified by the 
        Foreign Claims Settlement Commission, the court may 
        appoint a special master, including the Foreign Claims 
        Settlement Commission, to make determinations regarding 
        the amount and ownership of the claim. Such 
        determinations are only for evidentiary purposes in 
        civil actions brought under this title and do not 
        constitute certifications under title V of the 
        International Claims Settlement Act of 1949.
            (3) Effect of determinations of foreign or 
        international entities.--In determining the amount or 
        ownership of a claim in an action under this title, the 
        court shall not accept as conclusive evidence any 
        findings, orders, judgments, or decrees from 
        administrative agencies or courts of foreign countries 
        or international organizations that declare the value 
        of or invalidate the claim, unless the declaration of 
        value or invalidation was found pursuant to binding 
        international arbitration to which the United States or 
        the claimant 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:


 ``determination of ownership of claims referred by district courts of 
                           the united states


    ``Sec. 514. Notwithstanding any other provision of this Act 
and only for purposes of section 302 of the Cuban Liberty and 
Democratic Solidarity (LIBERTAD) Act of 1996, a United State 
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 Democratic 
Solidarity (LIBERTAD) Act of 1996), 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 in 
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 under title V of the 
        International Claims Settlement Act of 1949 before the 
        date of 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 person who was ineligible to file a claim 
under section 503, nor any national of Cuba, including any 
agency, instrumentality, subdivision, or enterprise of the 
Government of Cuba or any local government of Cuba, 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 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 district court of the United States 
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 
capital stock of nationals of the United States owning claims 
certified by the Commission under section 507.''.

SEC. 305. LIMITATION OF ACTIONS.

    An action under section 302 may not be brought more than 2 
years after the trafficking giving rise to the action has 
ceased to occur.

SEC. 306. EFFECTIVE DATE.

    (a) In General.--Subject to subsections (b) and (c), this 
title and the amendments made by this title shall take effect 
on August 1, 1996.
    (b) Suspension Authority.--
            (1) Suspension authority.--The President may 
        suspend the effective date under subsection (a) for a 
        period of not more than 6 months if the President 
        determines and reports in writing to the appropriate 
        congressional committees at least 15 days before such 
        effective date that the suspension is necessary to the 
        national interests of the United States and will 
        expedite a transition to democracy in Cuba.
            (2) Additional suspensions.--The President may 
        suspend the effective date under subsection (a) for 
        additional periods of not more than 6 months each, each 
        of which shall begin on the day after the last day of 
        the period during which a suspension is in effect under 
        this subsection, if the President determines and 
        reports in writing to the appropriate congressional 
        committees at least 15 days before the date on which 
        the additional suspension is to begin that the 
        suspension is necessary to the national interests of 
        the United States and will expedite a transition to 
        democracy in Cuba.
    (c) Other Authorities.--
            (1) Suspension.--After this title and the 
        amendments of this title have taken effect--
                    (A) no person shall acquire a property 
                interest in any potential or pending action 
                under this title; and
                    (B) the President may suspend the right to 
                bring an action under this title with respect 
                to confiscated property for a period of not 
                more than 6 months if the President determines 
                and reports in writing to the appropriate 
                congressional committees at least 15 days 
                before the suspension takes effect that such 
                suspension is necessary to the national 
                interests of the United States and will 
                expedite a transition to democracy in Cuba.
            (2) Additional suspensions.--The President may 
        suspend the right to bring an action under this title 
        for additional periods of not more than 6 months each, 
        each of which shall begin on the day after the last day 
        of the period during which a suspension is in effect 
        under this subsection, if the President determines and 
        reports in writing to the appropriate congressional 
        committees at least 15 days before the date on which 
        the additional suspension is to begin that the 
        suspension is necessary to the national interests of 
        the United States and will expedite a transition to 
        democracy in Cuba.
            (3) Pending suits.--The suspensions of actions 
        under paragraph (1) shall not affect suits commenced 
        before the date of such suspension, and in all such 
        suits, proceedings shall be had, appeals taken, and 
        judgments rendered in this same manner and with the 
        same effect as if the suspension had not occurred.
    (d) Rescission of Suspension.--The President may rescind 
any suspension made under subsection (b) or (c) upon reporting 
to the appropriate congressional committees that doing so will 
expedite a transition to democracy in Cuba.

                 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 shall 
deny a visa to, and the Attorney General shall exclude from the 
United States, any alien who the Secretary of State determines 
is a person who, after the date of the enactment of this Act--
            (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 the Cuban Government of 
                ownership or control of property--
                            (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 of the Cuban Government to pay--
                            (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.
            (2) Traffics.--(A) Except as provided in 
        subparagraph (B), a person ``traffics'' in confiscated 
        property if that person knowingly and intentionally--
                    (i)(I) transfers, distributes, dispenses, 
                brokers, or otherwise disposes of confiscated 
                property,
                    (II) purchases, receives, obtains control 
                of, or otherwise acquires confiscated property, 
                or
                    (III) improves (other than for routine 
                maintenance), invests in (by contribution of 
                funds or anything of value, other than for 
                routine maintenance), or begins after the date 
                of the enactment of this Act to manage, lease, 
                possess, use, or hold an interest in 
                confiscated property,
                    (ii) enters into a commercial arrangement 
                using or otherwise benefiting from confiscated 
                property, or
                    (iii) causes, directs, participates in, or 
                profits from, trafficking (as described in 
                clause (i) or (ii)) by another person, or 
                otherwise engages in trafficking (as described 
                in clause (i) or (ii)) through another person,
        without the authorization of any 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;
                    (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;
                    (iii) transactions and uses of property 
                incident to lawful travel to Cuba, to the 
                extent that such transactions and uses of 
                property are necessary to the conduct of such 
                travel; or
                    (iv) transactions and uses of property by a 
                person who is both a citizen of Cuba and a 
                resident of Cuba, and who is not an official of 
                the Cuban Government or the ruling political 
                party in Cuba.
    (c) Exemption.--This section shall not apply where the 
Secretary of State finds, on a case by case basis, that the 
entry into the United States of the person who would otherwise 
be excluded under this section is necessary for medical reasons 
or for purposes of litigation of an action under title III.
    (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.
    And the Senate agree to the same.

                                   Ben Gilman,
                                   Dan Burton,
                                   Ileana Ros-Lehtinen,
                                   Peter T. King,
                                   Lincoln Diaz-Balart,
                                   Robert G. Torricelli,
                                   Robert Menendez,
                                 Managers on the Part of the House.

                                   Jesse Helms,
                                   Paul Coverdell,
                                   Fred Thompson,
                                   Olympia Snowe,
                                   Charles S. Robb,
                                Managers on the Part of the Senate.
       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

    The managers on the part of the House and the Senate at the 
conference on the disagreeing votes of the two Houses on the 
amendment of the Senate to 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, submit the following joint statement to the House and 
the Senate in explanation of the effect of the action agreed 
upon by the managers and recommended in the accompanying 
conference report:
    The Senate amendment struck all of the House bill after the 
enacting clause and inserted a substitute text.
    The House recedes from its disagreement to the amendment of 
the Senate with an amendment that is a substitute for the House 
bill and the Senate amendment. The differences between the 
House bill, the Senate amendment, and the substitute agreed to 
in conference are noted below, except for clerical corrections, 
conforming changes made necessary by agreements reached by the 
conferees, and minor drafting and clerical changes.

                                findings

    The House bill (section 2) 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.
    The Senate amendment (section 2) contains similar 
provisions.
    The conference substitute (section 2) adopts the House 
language.

                                purposes

    The House bill (section 3) sets forth the purposes of this 
Act, including support for a democratic transition in Cuba, to 
protect the property rights of U.S. nationals, and to protect 
the national security of the United States.
    The Senate amendment (section 3) contains a similar 
provision.
    The conference substitute (section 3) adopts the Senate 
language.

                              definitions

    The House bill (section 4) defines specific terms used in 
the Act.
    The Senate amendment (section 4) contains a similar 
provision.
    The Conference substitute (section 4) is similar to the 
House definitions, but modifies definitions of ``appropriate 
Congressional committees'', ``economic embargo of Cuba'', 
``official of the Cuban government or the ruling political 
party in Cuba'', ``property'', ``transition government in 
Cuba'', and ``traffics'', and adds a new definition of 
``person'' for purposes of Title III.
    The committee of conference modified the definition of 
``economic embargo of Cuba'' to include all statutes or 
regulations relating to trade, travel, and transactions 
involving Cuban assets imposed under section 620(a) of the 
Foreign Assistance Act of 1961, section 5(b) of the Trading 
with the Enemy Act, the Cuban Democracy Act of 1992, section 
902(c) of the Food Security Act of 1985, or any other provision 
of law. It is the intent of the committee that this definition 
be interpreted broadly, in part, in order to ensure that the 
suspension or termination of any economic sanctions on Cuba be 
pursuant only to the authority granted in section 204 of this 
Act.
    The committee of conference notes that the definition of 
``property'' specifically excludes residential properties from 
title III, unless the residence is, at the time of enactment of 
this Act, the claim to the property is held by a United States 
national and the claim has been certified under title V of the 
International Claims Settlement Act of 1949 or the property is 
occupied by an official of the Cuban government or the ruling 
political party in Cuba, and the claimant can meet the other 
criteria (e.g., amount in controversy) in title III. The 
definition of ``traffics,'' as used in Title III, has been 
modified to remove any liability for the delivery of 
telecommunications signals to Cuba, the trading or holding of 
publicly-traded stock (unless the trading is with a person 
designated by the Secretary of the Treasury as a ``specifically 
designated national"), and any activities related to lawful 
travel to Cuba, and transactions and uses of property by Cuban 
citizens residing in Cuba who are not officials of the Cuban 
Government or the Communist Party.

                              severability

    The conference substitute (section 5) states that if any 
provision of this Act is held invalid, the remainder of this 
Act shall not be affected by such invalidation.
    Neither the House bill nor the Senate amendment contained 
such a provision. It is the intent of the committee to preserve 
the remaining provisions of this Act if any particular 
provision is invalidated.

   Title I--Strengthening International Sanctions Against the Castro 
                               Government

                          STATEMENT OF POLICY

    The House bill (section 101) expresses the sense of 
Congress on U.S. policy toward Cuba, 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.
    The Senate amendment (section 101) has a similar provision.
    The conference substitute (section 101) adopts the Senate 
language.

              ENFORCEMENT OF THE ECONOMIC EMBARGO OF CUBA

    The House bill (section 102) 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 that 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 constituting ``assistance to 
Cuba'' by foreign countries under section 1704(b)(2) of 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 
(exempting most news gathering, research, religious, or human 
rights groups).
    The Senate amendment (section 103) has a similar provision, 
although it does not contain an exception to the application of 
civil penalties for unlicensed travel to Cuba for specifically 
for ``news gathering'' or ``educational or religious 
activities.''
    The conference substitute (section 102) adopts the Senate 
language, with modifications that incorporate House language 
defining ``agency or instrumentality of the Government of 
Cuba,'' requiring a semiannual report to Congress by the 
President on ``payments made to Cuba by any United States 
person'' for telecommunications services under the Cuban 
Democracy Act of 1992.
    The conference substitute (section 102(e)) states the sense 
of the Congress that existing regulations should be fully 
enforced to deny visas to officers or employees of the Cuban 
Government or of the Communist Party of Cuba, pursuant to 
Proclamation 5377 of October 4, 1985, issued by President 
Ronald Reagan, under section 212(f) of the Immigration and 
Nationality Act of 1952, as amended.
    The conference substitute (subsection 102(g)) makes clear 
that the Cuban Democracy Act of 1992 should not be construed as 
authorizing any United States person to make any direct or 
indirect investment, in cash or in-kind, in the domestic 
telephone network within the island of Cuba until such time as 
the economic restrictions on such transactions are suspended or 
terminated as provided in subsection 102(h)).
    The conference substitute (subsection (102(h)) codifies the 
``economic embargo of Cuba,'' as defined in section 4. It is 
the intent of the committee of conference that all economic 
sanctions in force on March 1, 1996, shall remain in effect 
until they are either suspended or terminated pursuant to the 
authorities provided in section 204 of this Act (requiring a 
Presidential determination that a democratic transition is 
under way in Cuba). It is not the intent of this section to 
prohibit executive branch agencies from amending existing 
regulations to tighten economic sanctions on Cuba or to 
implement the provisions of this Act.
    The committee of conference expresses its profound 
conviction that executive branch agencies must be more vigorous 
in their enforcement of certain provisions of the U.S. embargo 
on Cuba, and must be accorded the resources by the President 
for this purpose. The committee of conference concludes that 
the President and executive agencies must be more vigorous in 
advocating 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.

             PROHIBITION AGAINST INDIRECT FINANCING OF CUBA

    The House bill (section 103) 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.
    The Senate amendment (section 104) has a similar provision 
that provides an exception for ``financing by the owner of the 
property or the claim thereto for a permitted transaction.''
    The conference substitute (section 103) adopts the Senate 
language with minor modifications, including House language 
defining ``permanent resident alien'' and ``United States 
agency'' as used in this section.

UNITED STATES OPPOSITION TO CUBAN MEMBERSHIP IN INTERNATIONAL FINANCIAL 
                              INSTITUTIONS

    The House bill (section 104) 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 section 
206 of this Act). This section provides that during the period 
that a transition government is in power in Cuba (as defined in 
section 205 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. This section states further 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.
    The Senate amendment (section 105) has a similar provision 
that has the effect of withholding U.S. support for Cuba's 
membership in international financial institutions until there 
is a ``democratically elected government'' there; however, the 
Senate language does authorize U.S. support for loans or other 
assistance to a ``transition government'' by these institutions 
as well as U.S. support for a transition government's 
application for membership ``taking effect after a 
democratically elected government in Cuba is in power.''
    The conference substitute (section 104) adopts the Senate 
language.

   UNITED STATES OPPOSITION TO TERMINATION OF THE SUSPENSION OF THE 
 GOVERNMENT OF CUBA FROM PARTICIPATION IN THE ORGANIZATION OF AMERICAN 
                                 STATES

    The House bill (section 105) 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 Senate amendment (section 106) has a similar provision.
    The conference substitute (section 105) adopts the Senate 
language.
    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. . . .''

ASSISTANCE BY THE INDEPENDENT STATES OF THE FORMER SOVIET UNION FOR THE 
                           GOVERNMENT OF CUBA

    The House bill (section 106) 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 (1) 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; (2) 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; (3) 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 (4) 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.
    The Senate amendment (section 107) has a similar provision 
that adds an exception under section 498(c) of the Foreign 
Assistance Act for ``assistance provided under the secondary 
school exchange program administered by the United States 
Information Agency.''
    The conference substitute (section 106) adopts the Senate 
language with minor modifications, including the House 
definition of ``agency or instrumentality of the Government of 
Cuba'' as used in this section.
    The committee of conference notes that since the enactment 
of the FREEDOM Support Act in 1992, questions have arisen about 
the nature of the trade relationship between the former Soviet 
states and Cuba, and whether that trade has been conducted on 
market terms. The LIBERTAD Act would define the terms for 
judging such trade and a mechanism for discouraging Russian 
support for the Castro regime. The committee of conference 
notes that Russian-Cuban trade primarily involves a barter 
exchange of Russian oil for Cuban sugar; to the extent that any 
such exchange is done on terms more favorable to Cuba than are 
otherwise available in the market, the committee concludes that 
such ``concessional'' terms represent a subsidy of the Castro 
regime. The committee of conference intends that U.S. 
assistance be provided in a manner that prevents any indirect 
U.S. foreign aid subsidy of any Russian support for the Castro 
regime.
    This LIBERTAD Act does not affect any market-based economic 
relationship between any former Soviet state and Cuba, and it 
does not undermine U.S. support for denuclearization activities 
or democratic and free market reform in Russia, for which there 
are provided specific exceptions of the ``withholding'' 
provision and ample presidential waiver authority.
    With respect to Russian intelligence facilities located at 
Lourdes, Cuba, the committee of conference notes that a senior 
Russian government official announced in November 1994 that his 
government was providing $200 million in credits to the Castro 
regime in exchange for the continued use of that facility. The 
Lourdes facility is one of the world's largest and most 
sophisticated intelligence stations, which Department of State 
and Department of Defense documents say is used to intercept 
and monitor U.S. commercial satellites, U.S. military and 
merchant shipping communications, NASA activities, and 
telephone conversations of U.S. citizens. The committee of 
conference notes that the Department of State has assured the 
Congress that no part of the LIBERTAD Act would violate U.S. 
treaty obligations, nor does any existing arms control treaty 
prevent the United States from urging Russia to end its use of 
Cuba as a base for intelligence operations against U.S. 
interests.

                    television broadcasting to cuba

    The House bill (section 107) reaffirms the congressional 
mandate to convert Television Marti to ultra high frequency 
(UHF) and requires reports to Congress from the Director of the 
United States Information Agency (USIA) until the conversion is 
complete. The section also establishes a ``sunset'' provision 
for both Radio and Television Marti upon the President's 
determination that a democratically elected government is in 
power in Cuba.
    The Senate amendment (section 108) contains an identical 
provision.
    The conference substitute (section 107) adopts the House 
language.
    The committee of conference supports the conversion of 
Television Marti to UHF in order to expand the reach of the 
Television Marti signal. The committee of conference notes that 
Congress mandated the conversion in Public Law 103-317, the FY 
95 Commerce, Justice, State Appropriations. The Conference 
report accompanying the FY 95 Act specifically provided 
$1,200,000 to convert Television Marti (see Congressional 
Record, August 16, 1994, p. H8501).

 reports on commerce with, and assistance to, cuba from other foreign 
                               countries

    The House bill (section 108) 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.
    The Senate amendment (section 109) has a similar provision 
that specifies the date on which this report must be submitted.
    The conference substitute (section 108) adopts the Senate 
language.

  authorization of support for democratic and human rights groups and 
                        international observers

    The House bill (section 109) 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 repression and 
their families; and support for democratic and human rights 
groups; and U.S. financial support for an Organization of 
American States (OAS) special emergency fund for human rights 
observers, election support, and election observation in Cuba 
(notwithstanding section 307 of the Foreign Assistance Act of 
1961).
    The Senate amendment (section 102) has a similar provision 
that authorizes U.S. support for groups in Cuba but does not 
refer to human rights and electoral support by the Organization 
of American States.
    The conference substitute (section 109) adopts the House 
language with minor modifications, including Senate language to 
``ensure that no funds or other assistance is provided to the 
Cuban Government.''
    The committee of conference recognizes that the execution 
of some of the activities authorized under this section could 
require incidental payments or indirect benefits to commercial 
or regulatory entities of the Cuban Government, e.g. payments 
for hotels, car rental, travel or transportation to or within 
the island, purchases of other goods or services in the local 
economy, customs fees, migration fees, or other comparable 
government charges. The committee does not consider such 
incidental payments or indirect benefits as ``assistance'' 
``provided to the Cuban Government'' that is otherwise 
prohibited in subsection (c).

          importation safeguard against certain cuban products

    The Senate amendment (section 110) takes note of existing 
law prohibiting the entry of, and dealings outside the United 
States in, merchandise 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. The Congress also notes in 
this section that U.S. accession to the North American Free 
Trade Agreement does not modify or alter U.S. sanctions against 
Cuba.
    The House bill has no comparable provision.
    The conference substitute (section 110) adopts the Senate 
language.

  withholding of foreign assistance from countries supporting juragua 
                         nuclear plant in cuba

    The House bill (section 110) is intended to deter countries 
from providing any form of support for the completion of the 
Cuban nuclear facility at Juragua, near Cienfuegos, Cuba. 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. 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.
    The Senate amendment has no comparable provision.
    The conference substitute (section 111) adopts the House 
language with a modification that adds ``assistance provided 
under the secondary school exchange program administered by the 
United States Information Agency'' to the list of activities to 
which the requirement of withholding U.S. aid under this 
section shall not apply.
    The committee of conference 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 of conference views with 
alarm recent reports that several countries, including Russia 
and Cuba, are considering the completion and operation of that 
plant. The committee of conference 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.

         reinstitution of family remittances and travel to cuba

    The Senate amendment (section 111) states the sense of 
Congress that the President, before considering the full 
reinstitution of family remittances and travel to Cuba, should 
insist on specific economic and political reforms by the Castro 
regime.
    The House bill has no comparable provision.
    The conference substitute (section 112) adopts Senate 
language with minor modifications.

                    expulsion of criminals from cuba

    The House bill (section 112) 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.
    The Senate amendment has no comparable provision.
    The conference substitute (section 113) adopts the House 
language.

                          NEWS BUREAUS IN CUBA

    The Senate amendment (section 112) authorizes the President 
to establish and implement an exchange of news bureaus between 
the United States and Cuba, provided that the exchange is fully 
reciprocal, the Cuban Government allows free, unrestricted, and 
uninhibited movement in Cuba, the U.S. government is able to 
ensure that only accredited journalists regularly employed with 
a news gathering organization avail themselves of the general 
license to travel to Cuba, and the Cuban Government does not 
interfere with the transmissions and distribution of materials 
of news organizations.
    The House bill has no comparable provision.
    The conference substitute (section 114) adopts modified 
Senate language that, inter alia, ensures that Radio Marti and 
Television Marti are included among the organizations whose 
journalists should be allowed to work freely in Cuba without 
interference by the Cuban government as a condition of any 
exchange of news bureaus.

      EFFECT OF ACT ON LAWFUL UNITED STATES GOVERNMENT ACTIVITIES

    The Senate amendment (section 113) states that nothing in 
this Act shall prohibit any lawfully authorized investigative, 
protective, or intelligence activity of a law enforcement 
agency or of an intelligence agency of the United States.
    The House bill has no comparable provision.
    The conference substitute (section 115) adopts the Senate 
language.

           CONDEMNATION OF CUBAN ATTACK ON AMERICAN AIRCRAFT

    The conference substitute (section 116) sets forth 
congressional findings and statements of condemnation and 
condolences relating to the February 24, 1996, attack by Cuban 
military aircraft on unarmed U.S. civilian aircraft which 
resulted in the deaths of three United States citizens and one 
United States permanent resident.
    The committee of conference states in the strongest terms 
its intention that the President seek, in the International 
Court of Justice, indictment for this act of terrorism by Fidel 
Castro.

          Title II--Assistance to a Free and Independent Cuba

    Title II sends a clear message to the Cuban people that the 
United States is prepared fully to assist in a peaceful, 
democratic transition, with due respect for their right of 
self-determination. 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; however, it is not the 
intent of this legislation to mandate that the President 
include all of the listed forms of assistance in the plan. 
Also, any assistance is ``subject to an authorization of 
appropriations and subject to the availability of 
appropriations'' (see section 203(c)(1) and (3)).

  POLICY TOWARD A TRANSITION GOVERNMENT AND A DEMOCRATICALLY ELECTED 
                               GOVERNMENT

    The House bill (section 201) 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.
    The Senate amendment (section 201) has a similar provision.
    The conference substitute (section 201) adopts the House 
language.

                    ASSISTANCE FOR THE CUBAN PEOPLE

    The House bill (section 202) 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; assistance that the President certifies is 
essential to the successful completion of the transition to 
democracy; and assistance in preparing the Cuban military 
forces to adjust to an appropriate role in a democracy. 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; Peace Corps programs; and assistance in 
preparing the Cuban military forces to adjust to an appropriate 
role in a democracy. 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.
    The Senate amendment (section 202) maintains the 
notification requirements of section 634A of the Foreign 
Assistance Act (22 USC 2394) and the limitations on assistance 
pursuant to section 620(a)(2) of the Foreign Assistance Act (22 
USC 2370(a)(2)). The amendment also provides that assistance to 
a transition government be limited to food, medicine, medical 
supplies and equipment, and such other assistance as may be 
necessary to meet the basic human needs of the Cuban people. 
Support to a democratically elected government in Cuba should 
consist of assistance to promote free market development, 
private enterprise, and a mutually beneficial trade 
relationship between the United States and Cuba.
    The conference substitute (section 202) adopts the House 
language.

                REPORT ON TRADE AND INVESTMENT RELATIONS

    The House bill (section 202(h)) states that once a 
democratically elected government is in power, the President 
shall submit a report on trade and investment relations with 
Cuba and shall consult with Congress on any proposals for 
improving such economic ties.
    The Senate amendment (section 202(d)) has a similar 
provision that specifies the Committee on Ways and Means of the 
House of Representatives and the Committee on Finance of the 
Senate (as well as appropriate congressional committees) as 
those committees to which reports under this subsection shall 
be submitted.
    The conference substitute (section 202(h)) adopts the 
Senate language.

   COORDINATION OF ASSISTANCE PROGRAM; IMPLEMENTATION AND REPORTS TO 
                        CONGRESS; REPROGRAMMING

    The House bill (section 203) makes explicit that delivery 
and distribution of assistance to a transition or 
democratically elected government is ``subject to an 
authorization of appropriations and 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 market-based development in and bilateral trade with 
Cuba. It requires periodic reports to the Congress on 
implementation of this assistance plan.
    The Senate amendment (section 203) has a similar provision 
but does not mandate the designation of a ``coordinating 
official'' or creation of a ``United States-Cuba Council''.
    The conference substitute (section 203) adopts the House 
language.

              TERMINATION OF THE ECONOMIC EMBARGO OF CUBA

    The House bill (section 204) 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 204(c) further 
states that, upon submitting to Congress a determination under 
section 203(c) 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.
    The Senate amendment (section 204) has a similar provision 
that also allows the suspension of the ``right of action'' 
created in Title III of the Act when a ``transition 
government'' in Cuba is in power, ``to the extent that such 
action contributes to a stable foundation for a democratically 
elected government."
    The conference substitute (section 204) adopts the Senate 
language with minor modifications.

    REQUIREMENTS AND FACTORS FOR DETERMINING A TRANSITION GOVERNMENT

    The House bill (section 205) 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.
    The Senate amendment (section 205) has a similar provision 
that identifies several similar requirements for a ``transition 
government'' as well as a set of factors that ``the President 
shall take into account'' in making a determination whether a 
``transition government'' is in power in Cuba. The effect of 
this language is to allow the President greater flexibility in 
determining when a ``transition government'' is in power.
    The conference substitute (section 205) adopts modified 
Senate language that provides the President greater discretion 
in making a determination. This modified language establishes 
requirements for a ``transition government'' as follows: has 
legalized all political activity; has released all political 
prisoners and allowed for investigations of Cuban prisons by 
appropriate international human rights organizations; has 
dissolved 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; has 
made public commitments to organizing free and fair elections 
for a new government (under specific conditions); has ceased 
any interference with Radio Marti or Television Marti 
broadcasts; has made commitments to making demonstrable 
progress in establishing an independent judiciary, respecting 
international recognized and basic freedoms, and allowing the 
establishment of independent trade unions; does not include 
Fidel Castro or Raul Castro; and has given adequate assurances 
that it will allow the speedy and efficient distribution of 
assistance to the Cuban people.
    In addition, the conference substitute takes a series of 
strict requirements from the House language and includes them 
instead as factors that ``the President shall take into 
account'' in making a determination whether a ``transition 
government'' in Cuba is in power, among these the extent to 
which that government is demonstrably in transition from 
communist totalitarian dictatorship to representative 
democracy; has made public commitments to, and is making 
demonstrable progress in, effectively guaranteeing the rights 
of free speech and freedom of the press (including the 
operation of privately owned media and telecommunications), 
permitting the reinstatement of citizenship to Cuban-born 
nationals returning to Cuba, assuring the right to private 
property, taking appropriate steps to return to United States 
citizens and companies property taken by the Cuban Government 
from such citizens and entities on or after January 1, 1959; 
has extradited or otherwise rendered to the United States all 
persons sought by the United States for crimes committed in the 
United States; and has permitted the deployment of independent 
and unfettered international human rights monitors.

    REQUIREMENTS FOR DETERMINING A DEMOCRATICALLY ELECTED GOVERNMENT

    The House bill (section 206) 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; 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; is 
showing respect for the basic civil liberties and human rights 
of the citizens of Cuba; has made demonstrable progress in 
establishing an independent judiciary; is substantially moving 
toward a market-oriented economic system; is committed to 
making constitutional changes that schedule regular free and 
fair elections; and has made demonstrable progress in returning 
to U.S. nationals property taken by the Government of Cuba or 
providing full compensation.
    The Senate amendment (section 206) has a similar provision 
that lists factors that the President ``shall taken into 
account'' in determining if a ``democratically elected 
government'' is in power in Cuba. The effect of this language 
is to allow the President greater flexibility in determining 
when a ``democratically elected government'' is in power.
    The conference substitute (section 206) adopts modified 
House language that states requirements for a ``democratically 
elected government'' with the purpose of ensuring that 
minimally acceptable reforms are under way before a Cuban 
Government is eligible to receive a full range of benefits of 
normal political and economic relations with the United States.

SETTLEMENT OF OUTSTANDING UNITED STATES CLAIMS TO CONFISCATED PROPERTY 
                                IN CUBA

    The Senate amendment (section 207) conditions most U.S. 
support to a ``transition government'' (including U.S. support 
for loans or assistance through international financial 
institutions) on such government publicly committing itself, 
and taking appropriate steps to establish a procedure under its 
law or through international arbitration, to provide for the 
return of, or prompt, adequate, and effective compensation for, 
property confiscated by the Cuban Government on or after 
January 1, 1959. This section also conditions such support to a 
``democratically elected government'' on such government having 
adopted and effectively implementing such procedures. 
Subsection 207(c) also requires reports to Congress on the 
number of property claims of U.S. nationals as well as a 
description of ways to help a Cuban Government resolve such 
claims, etc. Subsection 207(d) also states the sense of 
Congress that the satisfactory resolution of property claims by 
a Cuban Government remains an essential condition for a full 
resumption of economic and diplomatic relations between the 
United States and Cuba.
    The House bill has no comparable provision.
    The conference substitute (section 207) adopts the Senate 
language only with respect to the report to Congress and sense 
of Congress (Senate amendment subsections 207(c) and (d)).

  Title III--Protection of Property Rights of United States Nationals

                          STATEMENT OF POLICY

    The House bill (sec. 301) contains a series of 
congressional findings regarding the fundamental right of 
individuals to hold and enjoy property, the U.S. Government's 
obligation to protect its citizens against illegal 
confiscations, and the absence of effective remedies in 
international law, the result of which is to condone the 
wrongful confiscation of property and to allow unjust 
enrichment through the use of confiscated property.
    The Senate amendment contains no comparable provision.
    Section 301 of the conference substitute amends the House 
language by noting the economic benefit derived by Castro 
through his government's exploitation (``trafficking'') of 
wrongfully confiscated American properties and the objective of 
deterring the use of wrongfully confiscated American properties 
by denying profits to those who profit from the economic 
exploitation of Castro's seizures.

  LIABILITY FOR TRAFFICKING IN CONFISCATED PROPERTY CLAIMED BY UNITED 
                            STATES NATIONALS

    The House bill (sec. 302) creates civil liability for 
persons or entities, including an agency or instrumentality of 
a foreign state in the conduct of a commercial activity 
(defined in sec. 4), as follows:

                CIVIL REMEDY: LIABILITY FOR TRAFFICKING

    Section 302(a)(1) and (2) of the House bill provides that 
any person who, after the end of the 6-month period beginning 
on the date of enactment, traffics in property confiscated by 
the Cuban Government shall be liable to the United States 
national who owns the claim to such property in an amount equal 
to the value of the property plus reasonable interest, costs, 
and fees. When determining the amount of liability for claims 
certified by the Foreign Claims Settlement Commission (FCSC) 
pursuant to the International Claims Settlement Act of 1949, 
courts shall give a strong presumption to the findings of the 
FCSC.
    The Senate amendment contains no comparable provision.
    Sections 302(a)(1) and (2) of the conference substitute are 
similar to the House provision. They provide that liability for 
trafficking in property confiscated by the Cuban Government 
shall attach three months after the effective date of the 
title. The grace period before liability for trafficking 
attaches is intended to permit persons who currently are 
``trafficking'' within the meaning of title III to wind down 
their activities in Cuba in order to avoid liability. Because 
the conference substitute is effective not on the date of 
enactment, but rather on August 1, 1996, the grace period 
provided by the House bill was reduced from six months to three 
months.
    In addition, the substitute specifies that damages may 
include court costs and ``reasonable attorney's fees'' in lieu 
of ``reasonable costs and attorney's fees.'' Inasmuch as 
governments (as contrasted with their agencies or 
instrumentalities) are not ``persons'' for purposes of this 
section, they cannot be held liable under this section.
    The conference substitute retains the language of the House 
bill creating a strong presumption in favor of findings of the 
FCSC when determining the amount of liability under this 
section for claims certified by the FCSC.
    The committee of conference believes that 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 
wrongfully confiscated. The purpose of this 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 of Fidel Castro the capital 
generated by such ventures and to deter the exploitation of 
property confiscated from U.S. nationals. The substitute puts 
would-be investors on notice that if they traffic in 
confiscated property of U.S. nationals after this provision 
becomes law, they may be held liable to the legitimate U.S. 
owners in U.S. courts.
    It is the committee of conference's intent not to supplant 
or undermine the Foreign Claims Settlement process, but to 
provide an additional remedy for U.S. nationals through which 
they may take action to protect their claim to a confiscated 
property in Cuba. The committee of conference 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 in Cuba, thereby facilitating efforts 
by the rightful owners to reclaim, sell, or develop such 
property under the laws of a democratic Cuba.

                          INCREASED LIABILITY

    Section 302(a)(3) of the House bill provides for treble 
liability if the person traffics in the property after having 
received notice both of the claim to ownership and the 
provisions of this section.
    The Senate amendment contains no comparable provision.
    Section 302(a)(3) of the conference substitute modifies the 
House bill by providing increased liability (treble damages) 
for claims certified by the FCSC pursuant to title V of the 
International Claims Settlement Act of 1949 for any trafficking 
after the 3-month grace period established by subsection 
(a)(1). For U.S. nationals with claims not certified by the 
FCSC, the conference substitute requires a 30-day advance 
notice to the defendant (after the 3-month grace period) by 
non-certified claimants before they can seek treble damages. 
The conference substitute further provides that a trafficker 
can avoid treble liability by ceasing to traffic in the 
property in question by the conclusion of the 30-day period 
following the provision of notice. A trafficker that ceases 
trafficking during such 30-day period nevertheless remains 
liable for damages for trafficking that took place between the 
conclusion of the 3-month grace period following the effective 
date and the time that the trafficking ceased. The conference 
substitute outlines the contents of the required notice and the 
manner in which it is to be provided. Notice shall be deemed to 
have been provided on the date posted by certified mail or on 
the date personally delivered to the defendant.
    The committee of conference notes that investors in Cuba 
have been effectively on notice regarding the 5,911 certified 
U.S. claims since the Cuban claims program was completed on 
July 6, 1972. Information regarding whether the claim to a 
particular property in Cuba is held by a certified U.S. 
claimant is readily available. The intent of the conference 
committee in revising the House language is to provide priority 
to certified claimants by allowing them to seek treble damages 
without an additional notice or an additional waiting period 
(beyond the initial 3-month grace period). In the case of non-
certified claimants seeking treble damages, the committee of 
conference believes it reasonable to impose an affirmative duty 
on the claimant to notify a potential defendant of the 
claimant's claim to the property. This 30-day period, which is 
in addition to the 3-month grace period, provides adequate time 
for an investor in Cuba to research the validity of the claim 
to the property and take appropriate action.

                             applicability

    Section 302(a)(4) of the House bill provides that the right 
of action is applicable to property confiscated before, on, or 
after enactment of this Act; that in order to bring an action 
with respect to property confiscated before the date of 
enactment, the U.S. national had to own the property claim 
before the date of enactment; and that no United States 
national may bring an action under this section with respect to 
property that was confiscated on or after the date of enactment 
if the claim was acquired by assignment for value after 
enactment.
    The Senate amendment contains no comparable provision.
    Section 302(a)(4) of the conference substitute modifies the 
House provision to specify with respect to property confiscated 
on or after the date of enactment that an action for damages is 
precluded only if the claim to the property was acquired by 
assignment for value after the property was confiscated.
    The committee of conference notes that 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. It is not the committee's intent that the 
right of action be available to persons or entities that would 
relocate to the United States for the purpose of using this 
remedy. Entities that are incorporated in the United States 
after the date of enactment cannot use the remedy with respect 
to property confiscated before the date of enactment, inasmuch 
as such entities could have not have owned the claim to 
confiscated property on the date of enactment because they did 
not then exist.

                      treatment of certain actions

    Section 302(a)(5) of the House bill provides the manner in 
which claims denied by the FCSC and the claims of those U.S. 
nationals who had the opportunity to avail themselves of the 
FCSC certification process and failed to do so are to be 
treated. In the case of any action brought by a U.S. national 
who was eligible to file the underlying claim with the FCSC 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 FCSC. In the case of any action brought by a U.S. 
national who did file a claim with the FCSC but had such claim 
denied, the court may assess the basis for the denial and may 
accept the FCSC's findings unless good cause justifies another 
result.
    The Senate amendment contains no comparable provision.
    Section 302(a)(5) of the conference substitute modifies the 
House language to provide that U.S. nationals may not use this 
remedy if they either (1) were previously denied certification 
by the FCSC or (2) were eligible to file their claim under the 
FCSC process but failed to do so. The conference substitute 
adds new language providing that all non-certified claimants 
must wait two years after the Act's enactment before using the 
cause of action, and that non-certified claimants must satisfy 
the court that the property in question is not the subject of a 
certified claim.
    The intent of the committee of conference in revising this 
paragraph is to enhance the position of the certified claimants 
and to give them priority in pursuing actions against 
traffickers.

                inapplicability of act of state doctrine

    Section 302(a)(6) of the House bill directs courts not to 
dismiss actions brought under this section on the basis of the 
``act of state'' doctrine.
    The Senate amendment contains no comparable provision.
    Section 302(a)(6) of the conference substitute is identical 
to the House provision.

          LICENSES NOT REQUIRED FOR USE OF THE RIGHT OF ACTION

    Section 302(a)(7) of the conference substitute provides 
that actions may be brought and settled, and judgments 
rendered, under this section without first having to obtain a 
license from the United States Government, except that no 
judgments may be executed against property currently blocked 
under the authority of the Trading With the Enemy Act. The 
conference substitute further provides that for purposes of 
this title only the transfer of a claim to a U.S. national 
shall not be deemed an interest in property which required or 
requires a license.

                  PUBLICATION IN THE FEDERAL REGISTER

    Section 302(a)(8) of the conference substitute requires the 
Attorney General to publish in the Federal Register a summary 
of the provisions of title III not later than 60 days after 
enactment.

              AGENCY OR INSTRUMENTALITY OF A FOREIGN STATE

    Section 302(b) of the House bill contains a definition of 
``agency or instrumentality of a foreign state.''
    The Senate amendment contains a comparable provision in the 
definitions section (section 4).
    The definition in the conference substitute is identical to 
the Senate definition, but moves the definition to section 
4(1).

                         AMOUNT IN CONTROVERSY

    Section 302(b) of the conference substitute establishes an 
amount in controversy requirement of $50,000, exclusive of 
interest, costs, and attorneys' fees, in order for an action to 
be brought under this section. The provision further provides 
that the amount in controversy threshold cannot be met by 
computing treble damages.

                        PROCEDURAL REQUIREMENTS

    Section 302(c) of the House bill amends title 28 of the 
United States Code to grant United States district courts 
exclusive jurisdiction over actions brought under this title, 
regardless of the amount in controversy.
    The Senate amendment contains no comparable provision.
    Section 302(c) of the conference substitute provides that 
an action under this section shall be subject to the same 
procedural requirements as any other ``federal question'' 
action under title 28, United States Code.

        ENFORCEABILITY OF JUDGMENTS AGAINST THE CUBAN GOVERNMENT

    Section 302(d) of the conference substitute provides that 
judgments under this section shall not be enforceable against 
an agency or instrumentality of either a transition government 
or democratically elected government in Cuba. This subsection 
is intended to ensure that a transition or democratically 
elected government in Cuba is not burdened by judgments entered 
at any time under this section in connection with activities of 
the Castro regime.

                 CERTAIN PROPERTY IMMUNE FROM EXECUTION

    Section 302(d) of the House bill amends section 1611 of 
title 28, United States Code (a provision of the Foreign 
Sovereign Immunities Act) to provide that property used for 
accredited diplomatic purposes is immune from both attachment 
and execution of a judgment resulting from an action brought 
under this section.
    The Senate amendment contains no comparable provision.
    Section 302(e) of the conference substitute is identical to 
the House language.

                          ELECTION OF REMEDIES

    Section 302(e)(1) of the House bill requires an election of 
remedies for U.S. nationals who bring actions under this 
section, limiting the manner and number of actions that may be 
brought seeking compensation. 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. In this context, the term ``same 
subject matter'' refers not to the original confiscation of 
property, but rather to trafficking in the property. This 
section is intended to prevent persons from bringing separate 
actions for trafficking against the same defendant or 
defendants under both section 302 and under a common law tort 
theory.
    Section 302(e)(2) of the House bill 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 FCSC procedure 
are not adversely affected by an unsuccessful action brought on 
the basis of the same claim under this section.
    The Senate amendment contains no comparable provision.
    Section 302(f) of the conference substitute is based on the 
House provision, but adds language stating that in any 
situation involving a consolidation of cases by the courts, 
priority in any settlement will be given to the certified 
claimants.

       DEPOSIT OF EXCESS PAYMENTS BY CUBA UNDER CLAIMS AGREEMENT

    Section 302(f) of the House bill provides that any amounts 
paid by Cuba to the United States in settlement of certified 
claims that are in excess of the payments made to the certified 
claimants shall be deposited into the United States Treasury.
    The Senate amendment contains no comparable provision.
    Section 302(g) of the conference substitute is identical to 
the House provision.

                         TERMINATION OF RIGHTS

    Section 302(g) of the House bill provides for the 
termination of the right of action, except for pending suits, 
upon a determination by the President that a democratic 
government is in power in Cuba.
    The Senate amendment contains no comparable provision.
    Section 302(h) of the conference substitute modifies the 
House provision to include, in addition, specific authority for 
the President to suspend the right of action once he determines 
that a transition government is in power pursuant to section 
204(a). Pending suits are not suspended in the event of such a 
determination.
    The committee of conference recognizes the burden a future, 
post-Castro government will confront in resolving property 
disputes and seeking to attract foreign investment. Further, 
the committee is confident that such a government will take 
steps to provide prompt and adequate compensation to property 
claimants. Accordingly, this section provides that the right to 
bring an action under this title may be suspended by the 
President once he determines that a transition government is in 
power in Cuba, and the right to bring an action will terminate 
upon a presidential determination that a democratically elected 
government is in power in Cuba.

                       imposition of filing fees

    Section 302(i) of the conference substitute requires the 
establishment of a filing fee for potential plaintiffs, with 
the amount to be determined by the Judicial Conference of the 
United States. The fee should be sufficient to cover the 
incremental costs to the courts of actions under this title.
    The committee of conference's objective is to make this 
right of action system self-sustaining, so that it is paid for 
by those who use it rather than by tax revenues drawn from the 
Treasury.

          proof of ownership of claims to confiscated property

    Section 303 of the House bill establishes the means courts 
may use in determining the amount and ownership of claims 
brought under section 302 as follows:
    Subsection (a) requires that courts accept as ``conclusive 
proof of ownership'' a claim certified by the FCSC pursuant to 
title V of the International Claims Settlement Act of 1949. In 
the case of a claim that has not been certified by the FCSC, 
the court is given latitude, including the power to appoint a 
``special master'' (including the FCSC), in making 
determinations of the amount and validity of ownership only for 
the purposes of an action brought under section 302 of the 
bill. The House bill precludes the courts from taking as 
``conclusive evidence of ownership'' any findings, orders, or 
judgments from foreign courts or agencies or international 
organizations, unless such findings resulted from binding 
international arbitration to which the U.S. national submitted 
the claim.
    Subsection (b) amends the International Claims Settlement 
Act of 1949 to add a new section 514, providing that the FCSC 
may provide amount and ownership determinations to the court 
for evidentiary purposes only, whether or not the U.S. national 
qualified as a national (as defined in the International Claims 
Settlement Act of 1949) at the time of the confiscation.
    Subsection (c) sets out a rule of construction that makes 
explicit that nothing in the Act shall be construed as 
requiring or authorizing the United States Government to 
espouse the claims of Cuban nationals who became United States 
citizens after their property was confiscated.
    The Senate amendment contains no comparable provisions.
    Section 303 of the conference substitute is the same as the 
House bill, except that it changes the name of the section to 
``Proof of Ownership of Claims to Confiscated Property'', and 
in subsection (a)(3) adds language that U.S. courts may not 
accept as conclusive evidence any findings, orders, or 
judgments by courts or agencies of foreign countries or 
international organizations as to either the amount or 
ownership of a claim, unless such a determination resulted from 
binding international arbitration to which either the United 
States or the individual U.S. claimant submitted the claim.
    The committee of conference recognizes the importance of a 
decision by the Foreign Claims Settlement Commission in 
certifying a claim and, accordingly, believes that no court 
should dismiss a certification in an action brought under this 
title. The committee of conference also notes the recognized 
special expertise of the FCSC in determining the amount and 
validity of claims to confiscated properties overseas. As such, 
the ``special master'' provision allows the court to call upon 
the FCSC's expertise for evidentiary purposes related to the 
right of action only. This provision is intended to make clear 
that such evidentiary determinations by FCSC do not constitute 
certification of property claims pursuant to title V of the 
International Claims Settlement Act of 1949 for purposes of 
United States Government espousal and future negotiation with a 
friendly government in Cuba. In the view of the committee of 
conference, only the current 5,911 claims certified by the FCSC 
should be espoused by the United States Government in any 
settlement with a future Cuban Government.
    The committee of conference is also concerned that persons 
potentially liable for trafficking in wrongfully acquired 
property may seek to immunize themselves from liability by 
acquiring a foreign court or agency judgment invalidating the 
claim of a U.S. national. U.S. courts are precluded from 
accepting such determinations as conclusive evidence.

   exclusivity of foreign claims settlement commission certification 
                               procedure

    Section 304 of the House bill amends the International 
Claims Settlement Act of 1949 to add a new section 515, 
providing 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 United States national by virtue of a 
certified claim. The amendment also denies U.S. courts 
jurisdiction to adjudicate any such claim.
    The Senate amendment contains no comparable provision.
    Section 304 of the conference substitute is similar to the 
House bill.
    The committee of conference intends to make explicit that 
the LIBERTAD bill does not create any additional claims under 
the International Claims Settlement Act of 1949 and that any 
settlement between the United States and Cuban Governments is 
for the benefit of the property claimants with claims certified 
by the Foreign Claims Settlement Commission pursuant to title V 
of the International Claims Settlement Act of 1949. The 
committee of conference notes that, under current law and court 
precedents (Judah v. Shanghai Power Co., 546 A.2d 981 (Del. 
1988)), an inequitable situation could arise for certified 
claimants following a settlement with the Cuban Government if 
section 304 is not enacted. Section 304 is intended to avoid 
the unfair result that all or a portion of the settlement 
proceeds paid to expropriated U.S. claimants could be attached 
by (1) Cuban nationals or representatives of current or 
successor Cuban government agencies, (2) U.S. nationals who 
were eligible to file claims with the FCSC but did not, or (3) 
U.S. nationals who were not eligible to file claims with the 
FCSC, but without modifying any rights that U.S. nationals 
might have with respect to their shares of stock.

                         limitation of actions

    Section 305 of the conference substitute provides that 
actions under section 302 cannot be brought more than two years 
after the trafficking in confiscated property in Cuba has 
ceased to occur.

                             effective date

    Section 306 of the conference substitute establishes an 
effective date of August 1, 1996 for title III. The section 
further provides two forms of suspension authority that the 
President may exercise to delay litigation under section 302.
    First, the President may suspend the effective date for a 
period of not more than six months if he determines and reports 
in writing to the appropriate committees of Congress that such 
suspension is ``necessary to the national interests of the 
United States and will expedite a transition to democracy in 
Cuba.'' This suspension may be extended for additional periods 
of not more than six months each upon making the same 
determination and report to Congress as above.
    Second, after title III takes effect, the President may 
suspend the right to bring an action under section 302 for a 
period of not more than six months upon making the same 
determination and report to Congress as above. This second form 
of suspension can also be extended for additional periods of 
not more than six months upon making the same determination and 
report to Congress as above. Suspension pursuant to this 
authority will not suspend or otherwise affect pending cases.
    The committee of conference provided this suspension 
authority at the request of the Executive branch in order to 
afford the President flexibility to respond to unfolding 
developments in Cuba. The committee specifically rejected a 
proposal made by the Executive branch that the President be 
permitted to suspend the right of action upon determining and 
reporting to the appropriate committees of Congress that such 
suspension ``is important to the national interests of the 
United States, including expediting a transition to democracy 
in Cuba.''
    The committee of conference could not accept the 
formulation proposed by the Executive branch because it 
subordinated the question of whether suspension of the right of 
action would expedite a transition to democracy in Cuba to a 
larger question of whether suspension is important to the 
President's overall calculation of the national interest. The 
committee strongly believes that the question of whether 
suspension will expedite a transition to democracy in Cuba 
should be the central element of the President's decision 
whether to exercise the suspension authority, and not just be 
one of many factors to be considered by the President.
    The formula included in the conference substitute requires 
the President to determine two separate and distinct matters 
before suspending the right of action: first that suspension 
``is necessary to the national interests of the United 
States,'' and second that suspension ``will expedite a 
transition to democracy in Cuba.''
    In the judgment of the committee of conference, under 
current circumstances the President could not in good faith 
determine that suspension of the right of action is either 
``necessary to the national interests of the United States'' or 
``will expedite a transition to democracy in Cuba.'' In 
particular, the committee believes that it is demonstrably not 
the case that suspending the right of action will expedite a 
transition to democracy in Cuba, inasmuch as suspension would 
remove a significant deterrent to foreign investment in Cuba, 
thereby helping prolong Castro's grip on power.

                 Title IV--Exclusion of Certain Aliens

    Section 401 of the House bill provides that the Secretary 
of State, in consultation with the Attorney General, shall 
exclude from the United States any alien who the Secretary 
determines (1) has confiscated or converted, or overseen or 
directed the confiscation or conversion of, property belonging 
to a United States national; (2) knowingly and intentionally 
traffics in confiscated American property after the bill's 
enactment; (3) is a corporate officer, principal, or 
controlling shareholder in a company or entity that has been 
involved in such confiscations or conversions or trafficking; 
or, (4) is a spouse, minor child, or agent of any person 
described above. The Secretary of State may waive this 
prohibition on a case-by-case basis when he determines that it 
is in the national interest to do so.
    The Senate amendment contains no comparable provision.
    Section 401 of the conference substitute adopts the 
approach of the House bill, but limits application of the 
provision to confiscated property in Cuba. In addition, the 
substitute limits application of the provision to trafficking 
that occurs after the date of enactment.
    The committee notes that the definition of trafficking for 
purposes of section 401 is slightly narrower than the 
definition applicable to title III set forth in section 4(13) 
of the conference substitute. Two considerations account for 
the narrower definition. First, the committee did not wish to 
reach existing acts of trafficking under this section, but 
rather wished to reach new and different acts of trafficking 
beginning on or after the date of enactment. Second, the 
committee did not wish this section to deter investors in Cuba 
from divesting their holdings. For this reason, the sale or 
abandonment of confiscated property in Cuba for purposes of 
disengaging from Cuba is excluded from the definition of 
trafficking.

                                   Ben Gilman,
                                   Dan Burton,
                                   Ileana Ros-Lehtinen,
                                   Peter T. King,
                                   Lincoln Diaz-Balart,
                                   Robert G. Torricelli,
                                   Robert Menendez,
                                 Managers on the Part of the House.

                                   Jesse Helms,
                                   Paul Coverdell,
                                   Fred Thompson,
                                   Olympia Snowe,
                                   Charles S. Robb,
                                Managers on the Part of the Senate.