>From: Gary Bacon <[EMAIL PROTECTED]>

>Delivered-To: mailing list [EMAIL PROTECTED]
__________________________________________
>Cuba to cut phone communications with U.S.
>
>HAVANA, Dec 8 (Reuters) - Cuba will cut all phone ties with the United
>States from next week in retaliation for American companies' failure to pay
>dues charged by the island, Havana announced on Friday.
>
>A statement from Cuba's Council of State, read on state TV and radio, said
>communications would be suspended from Dec. 15.
>
>In October, Cuba slapped a 10 percent tax on the cost of telephone calls
>between the two countries in retaliation against legislation that would let
>the United States use frozen Cuban funds.
>
>Cuba warned at the time that all phone links could be cut if Washington
>resisted the tax.
>
>Under the October decree, Cuba's national phone company, Empresa de
>Telecomunicaciones S.A. (ETECSA), a Cuban-Italian joint venture, was to
>retain the additional funds generated by the 10 percent tax, which were to
>be charged on every minute of all phone calls between the two countries.
>
>_______________________________________________________
>Holiday hang-up: Cuba to cut phone connection with U.S.
>Decision based on companies' failure to pay 10% surcharge
>By YVES COLON
>[EMAIL PROTECTED]
>
>Fidel Castro's government has delivered a lump of coal to Cuban families on
>both sides of the Florida Straits for the Christmas holidays, ordering
>phone links between the United States and the island cut by Dec. 16.
>
>A brief announcement published Friday in the Communist Party daily
>newspaper Granma said officials made the decision because U.S. companies
>have failed to pay a 10 percent surcharge that became effective at the end
>of October.
>
>Havana imposed the tax at the beginning of October in a transparent attempt
>to make up $58 million awarded in damages to the Miami relatives of the
>Brothers to the Rescue pilots ambushed by Cuban MiGs in 1996. Cuba had
>warned then that it would cut phone service if the tax was not paid.
>
>'INHUMANE'
>
>"This is inhumane," said María Darias, who has been in the United States
>since February and talks to her daughter Magaly in Havana at least twice a
>week. "This is taking away my human connection to my daughter."
>
>Enrique López, a Cuban American who is president of the Coral Gables
>communications consultanting firm, AKL Group International, said Cuban
>officials made a conscious decision to cut service during the Christmas
>holidays, one of the most important to Cuban families who have been apart
>for decades.
>
>"Obviously, they're playing with people's emotions," said López. "For many
>people that phone call makes a difference. I expect they will get a
>backlash from their own people."
>
>The Cuban American National Foundation denounced Cuba's phone-cutoff
>decision, calling it a "cynical and extortionate" maneuver that
>demonstrates how far apart the two countries are from a normal relationship.
>
>In Washington, State Department spokesman Philip Reeker called Cuba's
>action "disappointing" and hoped the Havana government would reconsider.
>
>"It is unfortunate that while the world continues to open up to the people
>of Cuba, the Cuban government is threatening to deny Cuban citizens the
>ability to talk with family members," Reeker said.
>
>YEARLONG CUT
>
>In February 1999, Cuba made a similar cut in direct service that lasted
>more than a year, but had little impact because calls from the United
>States were routed through third countries. This time, though, the Cuban
>government said it is putting in place mechanisms that will impose the
>surcharge on those third countries or order them to hang up on all calls
>with a U.S. area code to Cuba.
>
>Several telephone companies, including AT&T, Sprint, Telefonica of Puerto
>Rico, and Worldcom, among others, provide telephone service to Cuba. The
>majority of calls to the island originate in the U.S. because of better
>technology and lower costs. Under normal conditions, Cuba's
>telecommunications department and the companies agree on the rate to charge
>callers, now an average of 80 to 90 cents a minute, one of the highest
>rates in the region despite the island's proximity to the U.S.
>
>The companies pay Cuba a maximum of 60 cents a minute for every call, a
>rate codified in the telecommunications provision of the Cuban Democracy
>Act. The companies collect the fees in the United States and pay Cuba its
>share -- 45 percent of the $130 million, or about $80 million, generated
>each year by the calls. The surcharge would provide Cuba with an additional
>$30 million a year in revenue.
>
>The companies, however, said they could not pay the surcharge without
>violating the laws that regulate all economic transactions between the
>United States and Cuba.
>
>Gus Alfonso of AT&T said phone company executives are still waiting to hear
>whether they can pay the surcharge from the Office of Foreign Assets
>Control (OFAC), a branch of the U.S. Treasury Dept., which administers and
>enforces economic and trade sanctions against targeted foreign countries.
>###
>Staff writer Elaine DeValle contributed to this report
>Copyright 2000 Miami Herald
>
>________________________________________________
>Havana defends move to cut Cuba-U.S. phone links
>
>HAVANA, Dec 9 (Reuters) - Cuba on Saturday defended a decision to suspend
>phone links with the United States beginning next week, calling it an
>"absolutely legal" move to recover Cuban state funds frozen by the U.S.
>authorities.
>
>The Caribbean island's communist government also warned those in the United
>States who had criticized the announced Dec. 15 phone ties cut-off that it
>could take "additional adequate measures" to seek repayment of the frozen
>funds.
>
>Both the U.S. government and a leading Cuban exile group had strongly
>condemned Havana's announcement Friday that it would cut direct Cuban-U.S.
>phone ties in a week's time because of the failure of American
>telecommunications companies to pay a new Cuban tax on these phone services.
>
>The October 25 tax was a retaliation against recent U.S. Congress
>legislation allowing the use of Cuban funds frozen in the United States to
>compensate the families of Cuban-American pilots killed when their planes
>were shot down by a Cuban MiG fighter in 1996.
>
>Cuba's official Communist Party daily Granma Saturday slammed the U.S.
>Congress allocation of the frozen Cuban funds as "arbitrary and unjustified
>robbery."
>
>"The response which our country has given to such a crime has been careful
>and moderate," Granma said in a front-page editorial.
>
>It added Cuba had given time -- a week -- for U.S. authorities to
>reconsider their refusal to allow American phone companies to pay the 10
>per cent Cuban phone tax, which Havana wants to apply to calls in both
>directions.
>
>The threatened phone links cut-off -- the second by Cuba in the last two
>years -- would hit communications between Cubans on the island and the
>large Cuban American community in Florida and elsewhere in the United
>States during the approaching Christmas holiday season.
>
>HEALTH SERVICES TO BENEFIT FROM PHONE TAX
>
>Granma said Cuba "seeks compensation through an absolutely legal measure,"
>adding that proceeds from the Cuban phone tax would go towards financing
>public health services.
>
>It recalled that the proposed suspension was only aimed for the moment at
>direct Cuba-U.S. phone services and that U.S. phone companies could still
>reroute through third countries, as they had during the last communications
>cut-off in 1999.
>
>But, stressing Cuba's right to recover its frozen funds in the United
>States, it added: "We could adopt additional adequate measures until these
>funds have been repaid."
>
>The disputed Cuban funds, estimated by Havana at more than $120 million,
>represent Cuba's share of communications services provided between the two
>countries between 1966 and 1994. The funds were frozen as a result of
>Washington's long-running economic embargo against Cuba.
>
>Cuba blames the U.S. government for the 1996 shooting down of the two small
>U.S. registered planes which killed four pilots from Brothers to the
>Rescue, a Miami-based Cuban exile group that searched for Cuban rafters
>leaving the island.
>
>Granma repeated the Cuban government position that the pilots killed
>belonged to "terrorist groups which countless times have violated our
>sovereignty and committed all kinds of misdeeds against our country."
>
>It rejected as "ridiculous squealing" criticism from the U.S. government
>and Cuban exile groups that the Cuban phone-cut off would disrupt
>communications between Cuban families divided across the Florida Straits
>during the Christmas period.
>
>"Now they remember Christmas and families," Granma said.
>
>The newspaper added that successive U.S. authorities and Cuban exiles had
>ignored these considerations during 40 years of hostility against Cuba
>which had included a U.S. economic embargo and "sabotage, pirate attacks
>and terrorist actions."
>###
>11:35 12-09-00
>
>
>   *  =================  *  =================  *  =================  *
>For a comprehensive treatment of the US Foreign Policy in the Americas with
>a Focus on Cuba, see The Learning Community Web site at:
><http://www.la.mvla.net/lc.htm>
>
>I am distributing an e-newsletter of international articles and of
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>expatriates, Cuban citizens, and non-Cuban citizens working in Cuba. This
>information, along with information from sources in the US, will be sent to
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>If you know someone who would like to receive this newsletter, send me a
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>
>Gary Bacon
><mailto:[EMAIL PROTECTED]>
>
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