Text
SUPPORT FOR THE CUBAN PEOPLE
Background
On October 6 of this year, President Clinton announced a number of
measures intended to further the ability of individual Americans and U.S. NonGovernmental Organizations (USNGOs) to contribute to the strengthening of
civil society in Cuba. Among these measures was the decision to create a new
license category in the Cuban Assets Control Regulations based on the
provisions of the Cuba Democracy Act of 1992. On October 13 the Treasury
Department issued regulation 515.574 based on the "Support for the Cuban
People" section of the Cuban Democracy Act. This new regulation allows for
the issuance of specific licenses for transactions related to activities that
will support the development of civil society in Cuba. The license category
broadens the scope of licensable activities beyond that which may be permitted
under educational, research and humanitarian regulations.
The Treasury Department has authorized by general license commodity
exports that have been licensed by the Commerce Department. A Department of
Commerce regulation is planned that will cover commodity exports to Cuba when
such exports are deemed to contribute to the same purpose for which the new
Treasury regulation was issued. However, until this new Commerce Department
license is issued, applicants for Treasury licenses under the Support for the
Cuban People license category should be aware that the Commerce Department can
only license exports of commodities authorized pursuant to present regulations
permitting educational, religious and humanitarian exports.
The License Regulation
Section 515.574 Support for the Cuban People reads as follows:
"(a) Specific licenses may be issued on a case-by-case basis for
transactions intended to provide support for the Cuban people including,
but not limited to, the following:
(1) Activities of recognized human rights organizations; and
(2) Activities of individuals and non-governmental organizations
which promote independent activity intended to strengthen civil
society in Cuba.
(b) Licenses will only be issued pursuant to this section upon a clearly
articulated showing that the proposed transactions are consistent with
the
purposes of this part and that no significant accumulation of funds or
financial benefit will accrue to the government of Cuba."
The Application and Review Process
Applications should be submitted to the following address:
Director of the Office of Foreign Assets Control
Department of Treasury
1500 Pennsylvania Ave, N.W. - Annex
Washington, D.C. 20220
phone: (202) 622-2480
fax: (202) 622-1657
2
Applications for an OFAC Support for the Cuban People license will be
referred by Department of Treasury to the Department of State for interagency
review, prior to issuing or denying the license.
License applications should include information concerning:
- Description of the U.S. applicant, including relevant experience;
- Description of the Cuban counterpart organization;
- Description of the proposed activity, including proposed travel,
commodities
and financial transactions; and
- Description of proposed monitoring and evaluation arrangements.
Support for the Cuban People activities may include technical
assistance, training, financial assistance and commodities.
If commodities
are included, a Commerce Department license should also be obtained by
contacting the following:
Office of Exporter Services
P.O. Box 273
Bureau of Export Administration
Department of Commerce
Washington, D.C.
20230
phone: (202) 482-4811
fax: (202) 482-3617
Review Considerations
The following are some of the main factors that will be considered in
reviewing applications.
Groundwork
License applications require "a clearly articulated showing" that the
proposed transactions are consistent with the terms of the regulation.
For
most activities, this will require the applicant to be reasonably familiar
with the target group and the realities of operating in Cuba. Other NGOs that
have operated in Cuba provide an excellent source of information.
Prospective
license applicants who would like advice on their proposed activities prior to
formally soliciting a license may contact Kevin Sullivan in the Department of
State's Office of Cuban Country Affairs at 202-647-9273.
You may also contact
the co-chairs of the Support for the Cuban People Interagency Working Group -Peter Orr, Senior Advisor for the Latin American Bureau at the Agency for
International Development (202-647-9155) and Michael Ranneberger, Director of
Cuban Affairs, Department of State (202-647-9272).
In many instances the
applicant may need to visit Cuba in order to develop a project proposal.
Travel licenses will be granted for a limited period of time for organizations
and individuals that need to conduct an on-island assessment to develop the
specifics of a sound Support for the Cuban People activity.
Licenses are
encouraged to visit the U.S. Interest Section (phone: 537-320-551) for
additional information that may be helpful in conducting their research and
developing their proposals.
Applicants, Capabilities and Accountability
An important factor in licensing determinations is the degree of
assurance that the USG can have that the applicant has the wherewithal to
ensure that the proposed activity will be carried out as described in the
3
license application and consistent with embargo regulations.
Prior experience
with the type of activity proposed and/or prior experience and familiarity
with Cuba, while not an absolute requirement, do serve to indicate that the
application has the ability to effectively carry out the activity in Cuba as
proposed.
Clearly some activities would demand greater experience than
others. The applicant's plans for monitoring the activity and ensuring
accountability will also be an important consideration in the review process.
Cuban Counterpart Organizations
Whether a proposed activity is considered to promote the purposes of the
Support for the Cuban People regulation will depend in large part upon the
designated Cuban counterparts and/or beneficiaries.
Recognized Cuban human
rights organizations are specifically mentioned in the regulation as an
eligible category.
For these organizations and other truly independent NGOs,
such as churches and church-affiliated organizations and independent
professional organizations such as the independent economists, a fairly broad
range of assistance will be considered for licensing. There is no ambiguity
in the role that these organizations have in strengthening civil society in
Cuba, and the U.S. Government particularly encourages support to them.
Applicants should understand that many independent organizations in Cuba are
not officially recognized by the Cuban Government.
On the other hand, there are a large number of organizations in Cuba
that are classified by the government of Cuba as NGOs, but which to a degree
are affiliated with and/or controlled by the government.
Some have been
established by the government to pursue the political aims of the government
or to attract external assistance. Within this broad array, different
organizations evidence varying degrees of independence of thought and action.
With the aim of promoting a diverse civil society in Cuba, the USG will
consider applications for assistance that may involve the participation of
government-affiliated NGOs where there is evidence that the particular
organization demonstrates a degree of independence.
Given the connection of
these organizations with the Cuban Government, it becomes particularly
important that the license applicant's proposed project clearly and credibly
contribute to furthering the independence of the organization, or of the group
within the organization that is involved in the activity. A higher degree of
monitoring by the applicant will also be necessary when undertaking an
activity with a counterpart organization that is not truly independent.
Licensees may be called upon to subsequently provide documentation to confirm
that the terms of the license were adhered to.
Promoting Independent Activity
For a Cuban civic organization that is already truly a-independent,
virtually any assistance activity that would strengthen that organization's
ability to carry out its mandate would serve the purposes of strengthening
civil society.
For an organization that is subject to a degree of government
control, the proposals must convincingly demonstrate the potential to increase
the autonomy of the organizations.
Potential activities could be aimed at
increasing the self-management of and pluralism within the organization or at
reducing its dependence on ideas, initiative and direction from the
government.
Activities by nonprofit USNGOs to promote independent economic activity
may also be considered for approval under the Support for the Cuban People
license regulation.
Examples of potential beneficiaries include the selfemployed, private farmers, and young people interested in training to become
4
entrepreneurs. Consistent with the embargo, however, U.S. commercial entities
will not be eligible for such licenses.
For the purposes of licensing Support for the Cuban People, "independent
activityH means activity that is undertaken at an organization's own
initiative and that is not directed or controlled by the Cuban Government.
Independence does not require that a Cuban organization take any outward
position of criticism toward the Cuban Government. In the context of the
Cuban Government's restrictions on free expression and association, however,
an organization's willingness to articulate ideas that may not accord with
official government positions or communist party doctrine is certainly an
indicator of independence.
Minimizing Funds to the Government
Direct transfers of funds to the Cuban Government or its agencies to
conduct activities generally will not be licensed. Hotel expenses, the
purchase of essential project commodities in state stores, and customs duties
are examples of expenditures that would normally be permitted. Applications
should contain cost estimates for al financial transactions covered by the
license request, and should include the means by which funds will be
transferred to Cuba. Whether the proposed activity "provides a significant
accumulation of funds or financial benefitll to the government of Cuba will be
determined based on the merits and reasonable needs of the activity.
These guidelines were prepared under the direction of the Special Adviser to
the President and the Secretary of State for Cuba by the Support for the Cuban
People Interagency Working Group. The Working Group is chaired by the
Department of State and A.I.D. and includes representatives from the NSC, the
Department of Treasury and Commerce and USIA.
Background
On October 6 of this year, President Clinton announced a number of
measures intended to further the ability of individual Americans and U.S. NonGovernmental Organizations (USNGOs) to contribute to the strengthening of
civil society in Cuba. Among these measures was the decision to create a new
license category in the Cuban Assets Control Regulations based on the
provisions of the Cuba Democracy Act of 1992. On October 13 the Treasury
Department issued regulation 515.574 based on the "Support for the Cuban
People" section of the Cuban Democracy Act. This new regulation allows for
the issuance of specific licenses for transactions related to activities that
will support the development of civil society in Cuba. The license category
broadens the scope of licensable activities beyond that which may be permitted
under educational, research and humanitarian regulations.
The Treasury Department has authorized by general license commodity
exports that have been licensed by the Commerce Department. A Department of
Commerce regulation is planned that will cover commodity exports to Cuba when
such exports are deemed to contribute to the same purpose for which the new
Treasury regulation was issued. However, until this new Commerce Department
license is issued, applicants for Treasury licenses under the Support for the
Cuban People license category should be aware that the Commerce Department can
only license exports of commodities authorized pursuant to present regulations
permitting educational, religious and humanitarian exports.
The License Regulation
Section 515.574 Support for the Cuban People reads as follows:
"(a) Specific licenses may be issued on a case-by-case basis for
transactions intended to provide support for the Cuban people including,
but not limited to, the following:
(1) Activities of recognized human rights organizations; and
(2) Activities of individuals and non-governmental organizations
which promote independent activity intended to strengthen civil
society in Cuba.
(b) Licenses will only be issued pursuant to this section upon a clearly
articulated showing that the proposed transactions are consistent with
the
purposes of this part and that no significant accumulation of funds or
financial benefit will accrue to the government of Cuba."
The Application and Review Process
Applications should be submitted to the following address:
Director of the Office of Foreign Assets Control
Department of Treasury
1500 Pennsylvania Ave, N.W. - Annex
Washington, D.C. 20220
phone: (202) 622-2480
fax: (202) 622-1657
2
Applications for an OFAC Support for the Cuban People license will be
referred by Department of Treasury to the Department of State for interagency
review, prior to issuing or denying the license.
License applications should include information concerning:
- Description of the U.S. applicant, including relevant experience;
- Description of the Cuban counterpart organization;
- Description of the proposed activity, including proposed travel,
commodities
and financial transactions; and
- Description of proposed monitoring and evaluation arrangements.
Support for the Cuban People activities may include technical
assistance, training, financial assistance and commodities.
If commodities
are included, a Commerce Department license should also be obtained by
contacting the following:
Office of Exporter Services
P.O. Box 273
Bureau of Export Administration
Department of Commerce
Washington, D.C.
20230
phone: (202) 482-4811
fax: (202) 482-3617
Review Considerations
The following are some of the main factors that will be considered in
reviewing applications.
Groundwork
License applications require "a clearly articulated showing" that the
proposed transactions are consistent with the terms of the regulation.
For
most activities, this will require the applicant to be reasonably familiar
with the target group and the realities of operating in Cuba. Other NGOs that
have operated in Cuba provide an excellent source of information.
Prospective
license applicants who would like advice on their proposed activities prior to
formally soliciting a license may contact Kevin Sullivan in the Department of
State's Office of Cuban Country Affairs at 202-647-9273.
You may also contact
the co-chairs of the Support for the Cuban People Interagency Working Group -Peter Orr, Senior Advisor for the Latin American Bureau at the Agency for
International Development (202-647-9155) and Michael Ranneberger, Director of
Cuban Affairs, Department of State (202-647-9272).
In many instances the
applicant may need to visit Cuba in order to develop a project proposal.
Travel licenses will be granted for a limited period of time for organizations
and individuals that need to conduct an on-island assessment to develop the
specifics of a sound Support for the Cuban People activity.
Licenses are
encouraged to visit the U.S. Interest Section (phone: 537-320-551) for
additional information that may be helpful in conducting their research and
developing their proposals.
Applicants, Capabilities and Accountability
An important factor in licensing determinations is the degree of
assurance that the USG can have that the applicant has the wherewithal to
ensure that the proposed activity will be carried out as described in the
3
license application and consistent with embargo regulations.
Prior experience
with the type of activity proposed and/or prior experience and familiarity
with Cuba, while not an absolute requirement, do serve to indicate that the
application has the ability to effectively carry out the activity in Cuba as
proposed.
Clearly some activities would demand greater experience than
others. The applicant's plans for monitoring the activity and ensuring
accountability will also be an important consideration in the review process.
Cuban Counterpart Organizations
Whether a proposed activity is considered to promote the purposes of the
Support for the Cuban People regulation will depend in large part upon the
designated Cuban counterparts and/or beneficiaries.
Recognized Cuban human
rights organizations are specifically mentioned in the regulation as an
eligible category.
For these organizations and other truly independent NGOs,
such as churches and church-affiliated organizations and independent
professional organizations such as the independent economists, a fairly broad
range of assistance will be considered for licensing. There is no ambiguity
in the role that these organizations have in strengthening civil society in
Cuba, and the U.S. Government particularly encourages support to them.
Applicants should understand that many independent organizations in Cuba are
not officially recognized by the Cuban Government.
On the other hand, there are a large number of organizations in Cuba
that are classified by the government of Cuba as NGOs, but which to a degree
are affiliated with and/or controlled by the government.
Some have been
established by the government to pursue the political aims of the government
or to attract external assistance. Within this broad array, different
organizations evidence varying degrees of independence of thought and action.
With the aim of promoting a diverse civil society in Cuba, the USG will
consider applications for assistance that may involve the participation of
government-affiliated NGOs where there is evidence that the particular
organization demonstrates a degree of independence.
Given the connection of
these organizations with the Cuban Government, it becomes particularly
important that the license applicant's proposed project clearly and credibly
contribute to furthering the independence of the organization, or of the group
within the organization that is involved in the activity. A higher degree of
monitoring by the applicant will also be necessary when undertaking an
activity with a counterpart organization that is not truly independent.
Licensees may be called upon to subsequently provide documentation to confirm
that the terms of the license were adhered to.
Promoting Independent Activity
For a Cuban civic organization that is already truly a-independent,
virtually any assistance activity that would strengthen that organization's
ability to carry out its mandate would serve the purposes of strengthening
civil society.
For an organization that is subject to a degree of government
control, the proposals must convincingly demonstrate the potential to increase
the autonomy of the organizations.
Potential activities could be aimed at
increasing the self-management of and pluralism within the organization or at
reducing its dependence on ideas, initiative and direction from the
government.
Activities by nonprofit USNGOs to promote independent economic activity
may also be considered for approval under the Support for the Cuban People
license regulation.
Examples of potential beneficiaries include the selfemployed, private farmers, and young people interested in training to become
4
entrepreneurs. Consistent with the embargo, however, U.S. commercial entities
will not be eligible for such licenses.
For the purposes of licensing Support for the Cuban People, "independent
activityH means activity that is undertaken at an organization's own
initiative and that is not directed or controlled by the Cuban Government.
Independence does not require that a Cuban organization take any outward
position of criticism toward the Cuban Government. In the context of the
Cuban Government's restrictions on free expression and association, however,
an organization's willingness to articulate ideas that may not accord with
official government positions or communist party doctrine is certainly an
indicator of independence.
Minimizing Funds to the Government
Direct transfers of funds to the Cuban Government or its agencies to
conduct activities generally will not be licensed. Hotel expenses, the
purchase of essential project commodities in state stores, and customs duties
are examples of expenditures that would normally be permitted. Applications
should contain cost estimates for al financial transactions covered by the
license request, and should include the means by which funds will be
transferred to Cuba. Whether the proposed activity "provides a significant
accumulation of funds or financial benefitll to the government of Cuba will be
determined based on the merits and reasonable needs of the activity.
These guidelines were prepared under the direction of the Special Adviser to
the President and the Secretary of State for Cuba by the Support for the Cuban
People Interagency Working Group. The Working Group is chaired by the
Department of State and A.I.D. and includes representatives from the NSC, the
Department of Treasury and Commerce and USIA.