Jared Kushner's Importance Reinforced By How President Trump (And Others) Recognize Him

Mr. Jared Kushner (DOB 1981) is Senior Advisor to the President & Director- Office of American Innovation.   

Irrespective of one’s thoughts as to the appropriateness of a role in the United States government for the son-in-law of the president of the United States, what matters is the level of confidence the president of the United States has in his son-in-law. 

Nearing two years into a four-year term, Mr. Kushner retains a prominent presence in Trump Administration.   

On 30 November 2018, while at the signing ceremony for the U.S.-Mexico-Canada Agreement (USMCA) in Buenos Aires, Argentina, The Honorable Donald Trump, President of the United States, began his remarks with thanking six (6) people by name; the first was the United States Trade Representative and the second was Mr. Kushner- before the United States Secretary of State and the United States Secretary of the Treasury and Director of the National Trade Council and Director of the National Economic Council.   

Prior to the signing ceremony for the USMCA, Mr. Kushner received the highest civilian award, Order of the Aztec Eagle, from the government of Mexico for his work relating to the USMCA.  During the presentation, Mr. Kushner shared that his experience working for the USMCA was the equivalent of earning a “PhD in Trade.”  President Trump attended the presentation- but the event was not on his public schedule. 

At the first meeting of the leaders of the G20 in Buenos Aires, President Trump was accompanied by two individuals: the United States Secretary of the Treasury and Mrs. Ivanka (Trump) Kushner. Not the United States Secretary of State, United States Trade Representative, Director of the National Trade Council or Director of the National Economic Council.  

At an evening dinner for leaders of the G20, President and Mrs. Trump were accompanied by Mr. and Mrs. Kushner; and included the couple in official photograph opportunities with President and Mrs. Macri of Argentina.

On 1 December 2018, Mr. Kushner will be a member of the official delegation at the working dinner with President Trump and H.E. XI Jinping, President of the People’s Republic of China.

On 1 December 2018, Mrs. Kushner will be a member of the official United States delegation, accompanying The Honorable Mike Pence, Vice President of the United States, attending the inauguration of the president of Mexico.

The Trump Administration has also identified Mr. Kushner as having a significant role in portfolios that include the Middle East, relocating the United States Embassy in Israel, China, Mexico, trade and prison reform.   

On 27 November 2018, H.E. Eduardo Bolsonaro (34 years of age), a two-term member of the National Congress of Brazil and son of the president-elect of Brazil, H.E. Jair Bolsonaro, met with Mr. Kushner at The White House; and departed with a baseball cap with “Trump 2020” printed on the front.  According to media reports, the two discussed a plan to relocate the Brazil Embassy in Israel and undisclosed subjects.     

The "2024 Process" For Venezuela And Cuba

The 2024 Process
(first published 2018; revised)

“2024” May Unlock A Solution For Venezuela
Need For Multilateral Quid Pro Quo
For Cuba- 25/25/25/25
Many Companies Have An Interest In Venezuela
Maduro Isn’t Likely Going Unless Assassinated Or Four Governments Agree
Guaido Fatally Contaminated By Connectivity With Trump Administration
What Is The Realistic “Mission Set”
Adhering To Aspirational & Desired Instead Of Doable
The Process Will Not Be A Moment, It Will Be A Series Of Moments

The year 2018 may be the key to creating a pathway for the succession/transition in Venezuela sought by the Trump Administration with support by the other stakeholders.

LINK TO ANALYSIS IN PDF FORMAT

Should EU Promote For Cuba An SPV Designed To Protect Iran From OFAC?

Will EU’s Effort To Create SPV For Cuba Help Or Harm?

Rather Than EU Creating A Work-Around, It Should Encourage Cuba To Settle U.S. Issues

EU Can Shepard Cuba Towards Negotiations With The U.S. Rather Than Creating Further Distance?

EU Has Much To Gain From Resolution Of U.S.-Cuba Issues

Does Cuba Benefit Financially Or Politically From Using An Instrument Created For Iran?

SPV Will Create Unnecessary Elasticity In U.S.-Cuba Relationship

The Republic of Cuba’s problem is not that it lacks a mechanism to make payments to vendors.  The problem is a chronic inability to consistently make payments to vendors when due which is substantially a result of inefficiencies within its commercial, economic and political infrastructure and the laws, regulations and policies which impact the ability to pay what is owned when due.

The Republic of Cuba may view a Special Purpose Vehicle (SPV) as an additional opportunity to create a financing mechanism rather than a means of consummating transactions and obligations.  It can be used as an instrument for delay rather than a tool used to create prosperity.

What is a SPV?  According to Ms. Federica Mogherini, High Representative for Foreign Affairs and Security Policy of the EU: “…EU member states will set up a legal entity to facilitate legitimate financial transactions with Iran and this will allow European companies to continue to trade with Iran in accordance with European Union law and could be open to other partners in the world.”

How might an SPV work:  Edited excerpts from one published analysis: “It could involve a barter system that would allow firms to bypass the SWIFT international bank transfer system.  Credits for oil or goods imported from Iran by one EU company could be used to pay an EU exporter for its goods or services to Iran, without any funds being sent to Iran.  The SPV would operate in euros rather than U.S. dollars and the OFAC won't be able to scrutinize transactions, unlike the SWIFT system, which is fully transparent.  The system would be similar to one used by the then-U.S.S.R. to trade with Iran without money changing hands.”

The goal of implementing an SPV for Iran (and potentially for the Republic of Cuba) is to attempt to insulate transactions from sanctions imposed by the Trump Administration through the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury, Bureau of Industry and Security (BIS) of the United States Department of Commerce, and United States Department of State.  A mechanism for the OFAC is to disrupt transactions routed through La Hulpe, Belgium-based Society for Worldwide Interbank Financial Telecommunication (SWIFT) “a global member-owned cooperative and the world’s leading provider of secure financial messaging services.”

A SPV could be functional and the Republic of Cuba could use it, but does use of an SPV assist the Republic of Cuba with making changes it does not want to make, but needs to make?  Does it permit the Republic of Cuba to further delay what it must do to be a productive, responsible, reliable and profitable importer, exporter and provider of services?  A marketplace today where the first consideration by a company is how it will be paid, when it will be paid, and if it will be paid; and then seek a government guarantee.  This is not the type of transactional marketplace the Republic of Cuba endeavors to be- one where hesitation, rather than excitement, is the first emotion for importers, exporters, and service providers.

During the last twenty-five years, the Republic of Cuba has repeatedly required, requested and received, write-downs and write-offs of government-to-government debt and debt incurred by Republic of Cuba government-operated entities.

For some in the Republic of Cuba there exists a belief that the global community owes it for what harm the United States has brought to bear against it.  That the Republic of Cuba is the mascot of the global community against the hegemony of the United States.  So, the global community needs to pay its dues so that the Republic of Cuba may continue to be an example.  

A strategy by the Republic of Cuba of expecting taxpayers in other countries to become shareholders in debt incurred by the Republic of Cuba- when the Republic of Cuba refuses to make changes which would alleviate that recurring theme, is not responsible; is not fair.

The use of a SPV by the Republic of Cuba will result in additional efforts by the Trump Administration to interrupt the use of a SPV by the Republic of Cuba.

The UE and other governments may support the creation and implementation of an SPV, but companies within those countries with global operations, particularly those with a presence in the United States and those with financial transactions requiring engagement with the United States Dollar, may be hesitant.

From one Europe-based senior-level financial executive: “It’s a great idea, but still only an idea.  Even the Iranian SPV is proving difficult and that’s urgent!  So, I don’t see anything imminent.  It all depends upon the degree to which EU is prepared to cooperate with Russia and China in setting up a U.S.-excluded-para-SWIFT system.” 

The Republic of Cuba would be better served by focusing less upon ways around United States laws, regulations and policies and focusing more towards actions designed to weaken them.  That means negotiations.  That means settling the certified claims.  Both the EU and the Republic of Cuba will benefit.

Absent the issue of the certified claims, the Republic of Cuba could then play-off on a level playing field the interests of EU-based companies and United States-based companies.  United States-based companies would no longer be solely proffered as bait to obtain the interest by EU-based companies; they would now be fish of equal or near-equal weight. 

The Republic of Cuba should desire to be that type of marketplace- it’s the type of competition that would benefit the 11.3 million citizens of the 800-mile archipelago which lies ninety-three miles south of Key West, Florida.  

LINK To complete text in PDF Format

All That Separates Executive Order For Nicaragua With One For Cuba Is Microsoft Word

The White House today issued an Executive Order relating to Nicaragua and added names to the Specially Designed Nationals (SDN) List maintained by the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury:

https://www.whitehouse.gov/briefings-statements/president-donald-j-trump-pressuring-nicaraguan-regime-restore-democracy-rule-law/

https://www.whitehouse.gov/briefings-statements/presidential-message-congress-blocking-property-certain-persons-contributing-situation-nicaragua/

https://www.treasury.gov/resource-center/sanctions/OFAC-Enforcement/Pages/20181127.aspx

https://www.state.gov/r/pa/prs/ps/2018/11/287604.htm

A mistake not to expect the Trump Administration to consider an Executive Order to focus upon the Republic of Cuba- specifically targeting the assets of individuals affiliated with the Revolutionary Armed Forces of the Republic of Cuba (FAR) and its subsidiaries, including Enterprise Administration Group (GAESA) which has a substantial impact upon the economic and commercial infrastructure of the Republic of Cuba.   

Replace the word “Nicaragua” with “Cuba” and below is the text of an Executive Order that could easily be created using cut-and-paste features of Microsoft Word:   

Office of the Press Secretary

FOR IMMEDIATE RELEASE

Month/Day/Year 

PRESIDENT DONALD J. TRUMP IS PRESSURING THE CUBAN REGIME TO RESTORE DEMOCRACY AND THE RULE OF LAW 

“All people deserve a government that cares for their safety, their interests, and their wellbeing, including their prosperity.” – President Donald J. Trump 

COMMITTED TO LIBERTY, DEMOCRACY, AND THE RULE OF LAW: President Donald J. Trump is taking a strong stand against the corrupt Cuban regime. 

Today, President Donald J. Trump issued an Executive Order “Blocking Property of Certain Persons Contributing to the Situation in Cuba.” 

This Order demonstrates the President’s strong leadership in the Western Hemisphere, defense of democratic principles, and protection of human rights.  The President’s Order permits: 

Sanctions against individuals, entities, and their associates engaged in corruption, human rights abuses, and undermining democracy in Cuba.  The targeting of individuals and entities that threaten peace, security, and stability in Cuba. 

President Trump is committed to pressuring the regime of Cuban President Miguel Diaz-Canel to restore democracy and rule of law in the country.   

President Trump is calling for free, fair, and early elections in Cuba to give the Cuban people a true voice and vote in their future. 

IMPOSING SANCTIONS: The Trump Administration is imposing targeted sanctions against high-level officials from the Cuban regime and their supporters. 

The Department of the Treasury is imposing sanctions on high-level officials from the Cuban regime. Individuals sanctioned include: General Raul Castro Ruz who leads the Revolutionary Armed Forces of the Republic of Cuba (FAR) and its subsidiaries, including Enterprise Administration Group (GAESA) which has a substantial impact upon the economic and commercial infrastructure of the Republic of Cuba.  Gen. Luis Alberto Rodriguez Lopez Calleja who has been affiliated with GAESA.  These individuals are involved in human rights abuse or acts of corruption in Cuba. 

The Trump Administration will continue to add pressure on the Diaz-Canel regime and its supporters, using all the economic and diplomatic tools at our disposal. 

STANDING UP TO AUTOCRATIC REGIMES: President Trump is confronting regimes in the region that disregard democracy and degrade security and stability in the hemisphere. 

President Trump’s actions demonstrate his continued commitment to standing up to autocratic regimes in the Western Hemisphere.  Since taking office, President Trump has worked to counteract the corrupt and destabilizing regimes in Cuba, Nicaragua and Venezuela. 

President Trump stands with the Cuban, Nicaraguan and Venezuelan people and supports their calls for freedom.  The Trump Administration will continue to publicly denounce Cuba under the Diaz-Canel regime as one of three undemocratic outliers in the region.

Marriott Will Have An Influential Friend In Senator Mitt Romney (R- Utah)

Given the decades-long relationship between The Honorable Mitt Romney, United States Senator-elect (R- Utah), who will be assume office on 1 January 2019 and be sworn-in on 3 January 2019, and Bethesda, Maryland-based Marriott International (2017 revenues exceeded US$23 billion), likely that Senator Romney will maintain an interest in the activities of the company; and the company may seek his assistance.  

Specifically, Senator Romney and his staff would reasonably be expected to assist (guide) Marriott International if there are issues in maintaining existing operations and/or preventing disruption to future operations in the Republic of Cuba.   

According to media reporting, Senator-elect Romney has an interest in serving as a member of the United States Senate Committee on Commerce, Science, and Transportation; United States Senate Committee on Finance, and United States Senate Committee Foreign Relations.  Each committee would have direct or tangential jurisdiction of Republic of Cuba-related matters.  

Issues that may impact Marriott International would be within the purview of the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury, Bureau of Industry and Security (BIS) of the United States Department of Commerce, and Office of the Legal Adviser (OLA) at the United States Department of State as the Trump Administration continues to seek means to disrupt activities by United States companies and entities affiliated with the Revolutionary Armed Forces of the Republic of Cuba (FAR). 

Top Hotel News (Rotenburg, Germany) 21 November 2018: Mitt Romney Leaves Marriott Board After Being Elected to U.S. Senate 

“Last week, Mitt Romney was elected to represent the state of Utah in the United States Senate; now, the Marriott International Inc. board member is resigned from his role with the hotel company, citing an inability to “commit sufficient time and attention to Marriott and its shareholders.  

In the wake of Romney’s departure, the company has decided to reduce the size of its board from 14 members down to 13. Romney, who is a former presidential nominee for the Republican party and also a former governor of the commonwealth of Massachusetts, has been balancing his commitments in the political arena with his work with Marriott for many years.  

In fact, his history with Marriott goes back some time. Romney first served as Marriott’s director from 1993 to 2002. This is also not the first time he has left his role with Marriott for public service, doing so back in 2002 after Massachusetts elected him as its governor. He returned to Marriott from 2009 to 2011, before leaving to run for president, and subsequently rejoining the hotel company’s board back in 2012.  

Romney’s history with the hospitality company, however, goes back much much further. In fact, his given name is Willard, which is in honor of J. Willard Marriott, who was a friend of Romney’s father as well as the founder of what has become the single largest hotel company in the world.” 

Note: Unknown if Senator-elect Romney and/or his immediate family has retained or divested any shareholding in Marriott International.

From Mitt Romney For Senate Internet Site: 

“Mitt Romney is running to represent the people of Utah in the U.S. Senate.  He was the 2012 Republican nominee for President of the United States. He was also a candidate for the 2008 Republican presidential nomination and served as the Governor of the Commonwealth of Massachusetts from 2003 through 2007. 

Prior to his time as Governor, he led the 2002 Salt Lake Organizing Committee for the Winter Olympics and, with a team of volunteers and managers, helped turn the struggling Games into a Utah success story. 

Romney was the co-founder of Bain Capital, a leading investment company, and the turnaround CEO of Bain & Company, an international management consulting firm. Romney currently serves in both corporate and charitable organizations including Marriott International, Solamere Capital, CharityVision of Salt Lake City and the Ann Romney Center for Neurologic Research. 

Romney earned his bachelor’s degree from Brigham Young University and his JD and MBA from Harvard University. He is the proud husband to Ann Romney, father to five sons, and grandfather to twenty-four grandchildren. He and Ann reside in Holladay, Utah and celebrate their 49th wedding anniversary this year.”  

Marriott International Presence In Cuba: 

Since 2016, Marriott International (initially through Stamford, Connecticut-based Starwood Hotels and Resorts Worldwide LLC which was acquired by Marriott International in 2016) has managed the 186-room Four Points By Sheraton Havana in the Republic of Cuba.   

The property is owned by Republic of Cuba government-operated Gaviota which is a subsidiary of the Enterprise Administration Group (GAESA) which is controlled by the FAR.  GAESA has a substantial role throughout the economy of the Republic of Cuba with a specific focus upon hospitality, transportation and infrastructure.  

In March 2016, Marriott International reported that the company would manage the 83-room Hotel Inglaterra, also owned by Gaviota.  Subsequently, the company reported that the property would be under management in December 2017 and then in December 2019.  No reason(s) have been provided for the thirty-six (36) month delay.  The Hotel Inglaterra will be amongst the company's 122-property The Luxury Collection. 

On 16 March 2016, the company reported signing a Letter of Intent to manage a third property, the 27-room Hotel Santa Isabel, also owned by Gaviota.  There has been no mention of the property by the company since the 16 March 2016 announcement.  

Due to the acquisition of Starwood Hotels and Resorts Worldwide, Marriott International gained control of certified claims in the Republic of Cuba.

Related Blog Posts: 

U.S. Clears Marriott to Engage in Business Development in Cuba (20 March 2016)

https://www.cubatrade.org/blog/2016/3/20/g4yf5lm0xme98ynt7hacjjhfhe03us?rq=Marriott%20International

Speaker Of The House Paul Ryan Wants To Rescind Starwood Hotel Management Agreement (11 June 2016)

https://www.cubatrade.org/blog/2016/6/11/speaker-of-the-house-paul-ryan-wants-to-rescind-starwood-hotel-management-agreement?rq=mitt%20romney

LINK To Analysis In PDF Format

Ten Garbage Trucks Manufactured By MAN Of Germany Donated To Cuba

Munich, Germany-based MAN Truck & Bus AG (2017 revenues approximately US$11 billion) manufactured the vehicles, but reported that a customer of company, not the company, was involved in the donation of the vehicles to the Republic of Cuba:

“Vienna, Nov 15 (Prensa Latina) Cuba expressed satisfaction with and gratitude for the donation by the Vienna authorities of 10 waste collecting trucks for Havana, as a concrete contribution to the capital''s 500th anniversary.

Cuban Ambassador to Austria Juan Antonio Fernández Palacios welcomed representatives of the 48th Department of the Mayor's Office of the initiative, in a meeting in his residence with top executives from the company Transimport, which is in charge of the technical and logistical coordination for the donation.

Fernandez thanked the proposal for cooperation between Havana and Vienna, and specifically for the express will to send these 10 vehicles to Cuba, with which they reissue 'a similar and invaluable experience between both cities in the years 2000 and 2001'.

He recognized that the collection of solid waste in Havana is one of the most complex issues in the Cuban capital, as nearly half of the trucks required are paralyzed, which makes it difficult to collect the more than 23,000 cubic meters of garbage in the Cuban capital.

The donation of garbage collecting vehicles will be an important contribution to the enormous efforts and actions under way to guarantee that vital sanitation work of the city.

He introduced Juan Carlos Feé, Director of Imports, and Jorge Luis Fontova, Technical Assistance Technician of Transimport, the Cuban central supply and sales entity for heavy equipment and its spare parts.

He stated that due to their experience in importing heavy equipment, the Government of Havana has asked them to assume the necessary tasks to transport the donation.”

14% Of US$13.575 Billion U.S. Government Foreign Bank Fines Could Have Settled Certified Claims Against Cuba

If the United States government directed 14% of US$13.575 billion in fines received from foreign banks during the last 14 years, the certified claims against the Republic of Cuba would have been resolved. 

There is an ethical quandary for certified claimants and their respective legal counsel: Is it just for a third-party to be the source from which to reimburse certified claimants for actions by the government of the Republic of Cuba?  Shouldn’t the government of the Republic of Cuba have “skin in the game?”    

After fifty-eight (58) years, the issue for some (perhaps most) certified claimants is resolving the issue so that they, along with other United States-based companies, may determine if they want to re-enter or enter the Republic of Cuba marketplace absent the impediment inflicted by United States laws, regulations and policies.  They don’t necessarily care from where the funds originate to provide for compensation. 

With a certified claims settlement, United States laws, regulations and policies will have natural trajectory towards change and demise.  

Two (2) France-based financial institutions now have the distinction of incurring the largest penalties by the United States government for unauthorized transactions primarily relating to the Republic of Cuba: 

Paris, France-based Société Générale S.A. paid US$1.4 billion in 2018; Paris, France-based BNP Paribas paid US$9 billion in 2015; London, United Kingdom-based HSBC Holdings PLC paid US$1.92 billion in 2012; Amsterdam, Netherlands-based The ING Group paid US$619 million in 2012; Zurich, Switzerland-based Credit Suisse AG paid US$536 million in 2009; Basel, Switzerland-based UBS Group AG paid US$100 million in 2004.

During the last fourteen (14) years, US$13.575 billion has been obtained by the government of the United States for financial infractions primarily relating to the Republic of Cuba.  NOTE: 14% of the funds would fund 100% of the value of the certified claims.  

There are 8,821 claims of which 5,913 awards have been certified by the United States Foreign Claims Settlement Commission (USFCSC- https://www.justice.gov/fcsc) at the United States Department of Justice which are valued at US$1,902,202,284.95.  

Of these claims, thirty (30) United States-based companies hold 56.85% of the total value.  The USFCSC permitted interest to be accrued in the amount of 6% per annum; with the current value approximately US$9 billion. 

The largest certified claim is by the Cuban Electric Company in the amount of US$267,568,413.62 and the smallest certified claim is by Sara W. Fishman in the amount of US$1.00 with reference to the Cuban-Venezuelan Oil Voting Trust. 

The first asset to be expropriated by the government of the Republic of Cuba was an oil refinery owned by White Plains, New York-based Texaco, Inc., now a subsidiary of San Ramon, California-based Chevron Corporation (USFCSC: CU-1331/CU-1332/CU-1333 valued at US$56,196,422.73). 

Certified claimants with current or recent activity within the Republic of Cuba include: New York, New York-based Colgate-Palmolive, Moline, Illinois-based Deere & Company, Atlanta, Georgia-based Delta Air Lines, Boston, Massachusetts-based General Electric, Bethesda, Maryland-based Marriott International, Chicago, Illinois-based University of Chicago, Denver, Colorado-based Western Union and New Haven, Connecticut-based Yale University among others. 

“The Foreign Claims Settlement Commission of the United States (FCSC) is a quasi-judicial, independent agency within the Department of Justice which adjudicates claims of U.S. nationals against foreign governments, under specific jurisdiction conferred by Congress, pursuant to international claims settlement agreements, or at the request of the Secretary of State. Funds for payment of the Commission's awards are derived from congressional appropriations, international claims settlements, or liquidation of foreign assets in the United States by the Departments of Justice and the Treasury.”

LINK To Complete Analysis

Cuba & EU Meet On Same Day As Societe Generale Fined By U.S. For Cuba Sanctions Violations

Coincidence…..?

On the same day the United States Department of the Treasury in Washington DC announces settlement with Paris, France-based Societe Generale and the United States Attorney for the Southern District of New York announces criminal charges against Societe Generale, representatives of the European Union (EU) and representatives of the government of the Republic of Cuba were meeting in Brussels, Belgium, to discuss sanctions: 

Havana, Nov 18 (Prensa Latina) Cuba and the European Union (EU) will hold on Monday in Brussels, Belgium, the first Dialogue on Unilateral Coercive Measures, according to a statement from the Cuban Ministry of Foreign Affairs.  

The main issues to be addressed will be the legal and practical aspects of existing EU legislation to counteract the extraterritorial application of third country legislation and the use of unilateral coercive measures with extraterritorial effect as a political and economic means of exerting pressure against states.

The Cuban delegation will discuss, among the agenda matters, the effects of the economic, commercial and financial blockade imposed by the United States on the Caribbean nation for almost 60 years. 

This is the most prolonged unilateral coercive economic measures in history and implies a massive, flagrant and systematic violation of the human rights of the Cuban people, as denounced by the authorities of the island.

This Monday's meeting will be held in virtue of Article 10 of the Political Dialogue and Cooperation Agreement concluded between Cuba and the EU in 2016, provisionally put into effect in 2017.

Manhattan U.S. Attorney Charges Société Générale With Violations Of TWEA: US$1.3 Billion In Penalties

Manhattan U.S. Attorney Announces Criminal Charges Against Société Générale S.A. For Violations Of The Trading With The Enemy Act

Bank to Pay Total Penalties of more than $1.3 Billion as part of Resolution with Federal and State Prosecutors and Regulators

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, James D. Robnett, the Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), and Mark Bialek, Inspector General, Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau (“IG-FRB/CFPB”), announced criminal charges against Société Générale S.A. (“SG” or the “Bank”) consisting of a one-count felony information charging SG with conspiring to violate the Trading with the Enemy Act (“TWEA”) and the Cuban Asset Control Regulations promulgated thereunder (the “Cuban Regulations”) for SG’s role in processing billions of dollars of U.S. dollar transactions using the U.S. financial system, in connection with credit facilities involving Cuba (the “Cuban Credit Facilities”).  The case is assigned to United States District Judge P. Kevin Castel. 

Mr. Berman also announced an agreement (the “Agreement”) under which SG agreed to accept responsibility for its conduct by stipulating to the accuracy of an extensive Statement of Facts, pay penalties totaling $1,340,165,000 to federal and state prosecutors and regulators, refrain from all future criminal conduct, and implement remedial measures as required by its regulators.  Assuming SG’s continued compliance with the Agreement, the Government has agreed to defer prosecution for a period of three years, after which time the Government will seek to dismiss the charges.  The $1.34 billion in penalties represents the second largest penalty ever imposed on a financial institution for violations of U.S. economic sanctions.

The penalty shall be collected, in part, through SG’s forfeiture to the United States of $717,200,000 in a civil forfeiture action also filed today.  Of that amount, one-half shall be transferred to the United States Victims of State Sponsored Terrorism Fund, pursuant to the Justice for United States Victims of State Sponsored Terrorism Act.  In addition, SG has reached separate agreements with the  New York County District Attorney’s Office (“DANY”), United States Department of the Treasury, Office of Foreign Assets Control (“OFAC”), the Federal Reserve Board of Governors and the Federal Reserve Bank of New York (collectively the “Federal Reserve”), and the New York State Department of Financial Services (“DFS”), under which it shall pay additional penalties of $622,965,000 as follows: $162,800,000 to DANY; $53,900,000 to OFAC; $81,265,000 to the Federal Reserve; and $325,000,000 to DFS. 

The Government entered into this resolution due, in part, to SG’s acceptance and acknowledgement of responsibility under the laws of the United States for its conduct, as exhibited by its undertaking of a thorough internal investigation, collecting and producing voluminous evidence located in other countries to the full extent permitted under applicable laws and regulations, and its enhancement of its compliance program and sanctions-related internal controls both before and after it became the subject of a U.S. law enforcement investigation.  These factors and SG’s willingness to enter into the commitments set forth in the  Agreement, along with all other relevant factors and considerations, collectively weighed in favor of deferral of prosecution, and outweighed in this particular case SG’s failure to self-report all of its violations of United States sanctions laws in a timely manner, as described below.

U.S. Attorney Geoffrey S. Berman said:  “Today, Société Générale has admitted its willful violations of U.S. sanctions laws – and longtime concealment of those violations – which resulted in billions of dollars of illicit funds flowing through the U.S. financial system.  With today’s resolution, the Bank has accepted responsibility for its criminal conduct and demonstrated its commitment to remedying these failures and enhancing its compliance programs and internal controls.  Other banks should take heed:  Enforcement of U.S. sanctions laws is, and will continue to be, a top priority of this Office and our partner agencies.”

IRS-CI Special Agent in Charge James D. Robnett said:  “Today, Société Générale is being held accountable for illegal transactions made through the U.S. financial system on behalf of entities subject to U.S. economic sanctions.  Sanctions enforcement is of vital importance to our national security and the integrity of our financial system.  IRS-CI will continue to work closely with partner law enforcement agencies, federal regulators and prosecutors to ensure compliance with federal banking laws to promote integrity across financial institutions worldwide.”

FRB/CFPB Inspector General Mark Bialek said:  “As today’s agreement makes clear, Société Générale’s knowing and willful violation of U.S. economic sanctions through structuring and concealment has resulted in an agreement to pay over $1.3 billion in monetary penalties.  I commend our agents in New York and their law enforcement partners for their hard work, along with the coordination of the Federal Reserve Bank of New York and the Federal Reserve Board, which resulted in this outcome.”

According to the documents filed today in Manhattan federal court:

SG’s Operation of U.S. Dollar Credit Facilities to Finance Cuban Business

From approximately 2004 through 2010, SG, in contravention of U.S. sanctions laws, operated 21 credit facilities that provided significant money flow to Cuban banks, entities controlled by Cuba, and Cuban and foreign corporations for business conducted in Cuba; those facilities (the “Cuban Credit Facilities”) involved substantial U.S.-cleared payments through U.S. financial institutions, in violation of TWEA and the Cuban Regulations.  In total, during this time period, SG engaged in more than 2,500 sanctions-violating transactions through U.S. financial institutions, causing those U.S. financial institutions to process close to $13 billion in transactions that otherwise should have been rejected, blocked, or stopped for investigation pursuant to regulations promulgated by OFAC.  The majority of these transactions and most of the total value involved a U.S. dollar credit facility designed to finance oil transactions between a Dutch commodities trading firm and a Cuban corporation with a state monopoly on the production and refining of crude oil in Cuba.

SG avoided detection, in part, by making inaccurate or incomplete notations on payment messages that accompanied these sanctions-violating transactions.  Indeed, the SG department that managed many of the Cuban Credit Facilities engaged in a deliberate practice of concealing the Cuban nexus of U.S. dollar payments that were made in connection with those facilities.  For example, SG routed approximately 500 U.S. dollar-denominated payments through a particular Spanish bank in order to disguise the fact that the transactions violated U.S. sanctions, and employees were instructed to omit any references to Cuba or Cuban entities from the messages that accompanied the fund transfers. 

In late 2004, SG began to reconsider its Cuba business in light of U.S. enforcement actions, and began to shift away from U.S. dollar transactions involving Cuba to avoid U.S. scrutiny and possible penalties.  In a December 1, 2004, email, a senior leader of SG’s global Group Compliance Department expressed concern to a top executive in the SG group responsible for liaising with SG’s regulators that (1) “any discovery of breach” regarding Cuba “attracts the most stringent punishment,” and (2) U.S. authorities, including “criminal authorities,” were focusing on U.S. dollar payments that had been sent through U.S. banks.  Several days later, the same senior leader of Group Compliance, after being alerted to a U.S. dollar transaction between SG Canada and an exporter of goods to Cuba in connection with which “[n]o reference to Cuba is made to [the Canadian bank],” emailed several members of SG’s senior management, noting that “we have lived with the OFAC list for some time and have developed various methods of avoiding it,” and asked whether “given the new regulatory scrutiny in the US on USD payments do we remain satisfied with those methods?”  

In mid- to late-December 2004, as a result of these concerns, SG’s top management determined that U.S. dollar transactions in connection with the Cuban Credit Facilities should be eliminated as quickly as possible, but still permitted continued U.S. dollar transactions in the interim.  Despite the decision in 2004 to wind down U.S. dollar transactions for the Cuban Credit Facilities, as well as the Bank’s overall Cuban exposure, SG continued to engage in such transactions for almost six more years, until October 2010.  The conduct continued despite the ongoing awareness of SG’s Group Compliance, and despite awareness by the participants of ongoing U.S. sanctions enforcement actions.  In October 2010, as the last of the Cuban Credit Facilities was being replaced with a non-U.S. dollar facility at the insistence of a senior leader of SG’s Group Sanctions Compliance function, SG sent payment instructions directing that the final $600,000 arrangement fee be paid in U.S. dollars, but “not to mention any reference to [Cuban Corporation] within the references of this settlement.”  From 2005 to 2010, SG conducted a total of 1,921 U.S. dollar transactions that violated TWEA and the Cuban Regulations, with a total value of approximately $10.3 billion.

SG’s Failure to Disclose Its Wrongdoing in a Timely Manner

Despite the awareness of both SG’s senior management and Group Compliance that SG had engaged in this unlawful conduct, SG did not disclose its conduct to OFAC or any other U.S. regulator or law enforcement agency until well after the commencement of the Government’s investigation. 

This investigation was triggered by the blocking by other U.S. financial institutions, in March 2012, of two transactions that SG processed on behalf of a Sudanese sanctioned entity, and a subsequent February 2013 voluntary disclosure by SG regarding $22.8 million in transactions with the Sudanese entity and a small number of transactions with other sanctioned entities that violated U.S. sanctions.  The Bank did not, however, disclose the existence of the Cuban Credit Facilities at that time, but rather did so only in October 2014, after SG performed a detailed forensic analysis based on the scope of investigation required by the Government and the other investigating agencies. 

Société Générale S.A. To Pay US$53 Million To OFAC For Cuba/Other Violations

Settlement Agreement between the U.S. Department of the Treasury's Office of Foreign Assets Control and Société Générale S.A.  

11/19/2018​

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) today announced a $53,966,916.05 settlement with Société Générale S.A. to settle potential civil liability for apparent violations of U.S. sanctions.  The settlement resolves OFAC’s investigation into Société Générale S.A.’s processing of transactions to or through the United States or U.S. financial institutions in a manner that removed, omitted, obscured, or otherwise failed to include references to OFAC-sanctioned parties in the information sent to U.S. financial institutions that were involved in the transactions.  Société Générale S.A. processed 1,077 transactions totaling $5,560,452,994.36 in apparent violation of the Cuban Assets Control Regulations, 31 C.F.R. part 515; the Iranian Transactions and Sanctions Regulations, 31 C.F.R. part 560; and the Sudanese Sanctions Regulations, 31 C.F.R. part 538.  This settlement with OFAC is part of a global settlement among Société Générale S.A., OFAC, the Board of Governors of the Federal Reserve System, the U.S. Department of Justice, the New York County District Attorney’s Office, the U.S. Attorney for the Southern District of New York, and the New York State Department of Financial Services.

LINK To Settlement Document

Nespresso Of Switzerland Announces Another Release Of Coffee From Cuba

LINK To Announcement: https://www.nespresso.com/us/en/order/capsules/vertuo/cafe-de-cuba?utm_id=54c8275f-5c33-4610-978c-dd43d1fc7b04&j=11093594&sfmc_sub=1043771238&l=95943_HTML&u=253929697&mid=1065837&jb=157&dclid=CMPrnvOd3t4CFVgNNwod1ooNOw

On 17 August 2017, the first Nespresso product with coffee beans sourced from the Republic of Cuba entered the marketplace: https://www.cubatrade.org/blog/2016/8/18/its-here-nespressos-cafecito-de-cuba-capsules-us125-each?rq=nespresso 

LINK To Blog Posts Relating To Nespresso: https://www.cubatrade.org/search?q=nespresso

From U.S. Cruise Lines: Cuba Is Good And Cuba Has Potential

From the Miami, Florida-based Florida-Caribbean Cruise Association: 

According to Mr. Pierfrancesco Vago, executive chairman of Geneva, Switzerland-based MSC Cruises, the Republic of Cuba is “not a panacea for the whole cruise industry” and “still, there will be big growth,” and the fifteen-year (15) contract for London, United Kingdom-based Global Ports Holding through its office in Istanbul, Turkey, to manage and develop the cruise port in the city of Havana will “definitely help.  Bigger ships will come,” and “Cuba is a fantastic experience.” 

Mr. Micky Arison, chairman of Miami, Florida-based Carnival Corp. & plc, shared that guest satisfaction is very high for cruises to the Republic of Cuba and thus far the number of passengers to the Republic of Cuba in 2017 was less than the number of passengers that visit Cozumel, Mexico, in one (1) week.

Next Trade Subcommittee Chairman May Disappoint Advocates Seeking Changes To Cuba Laws/Regulations

For the 116th Congress, The Honorable Bill Pascrell (D- New Jersey) will likely become Chairman of the Subcommittee on Trade of the Committee on Ways and Means of the United States House of Representatives. 

Dec 17, 2014- Press Release  

Paterson, NJ – Today, U.S. Rep. Bill Pascrell, Jr. (D-NJ-09) issued the following statement regarding the U.S. – Cuba relationship. 

“Today’s news is certainly momentous, especially for those of us who lived through the Cuban Missile Crisis and witnessed the decades of oppression the Cuban people faced at the hands of the Castro regime. That oppression continues to this day, evidenced by the imprisonment of Alan Gross for doing nothing more than attempting to provide humanitarian aid to the Cuban people. I’m very pleased that after more than five years and deteriorating health, Alan will be coming home to his family. 

I have many questions about the President’s announcement. It is clear that our 50-year long embargo of Cuba has failed to bring about the change we desired to free the Cuban people from an oppressive regime.  However, I share the concern of Senator Menendez and others that the quick normalization of relations that the President envisions are only rewarding the Cuban government for decades of bad behavior and gross violations of human rights. I will be monitoring these developments closely and must insist that any opening of relations comes side-by-side with an opening of the Cuban government's political system from totalitarianism to one that respects democracy, human rights, and personal freedoms -- that is the only Cuba we can recognize. 

This is a moment for US-Cuban relations and today we say yes to the potential for change, but we must say no to an immediate halt of sanctions on Cuba.” 

About Subcommittee On Trade: 

“The jurisdiction of the Subcommittee on Trade shall include bills and matters referred to the Committee on Ways and Means that relate to customs and customs administration including tariff and import fee structure, classification, valuation of and special rules applying to imports, and special tariff provisions and procedures which relate to customs operation affecting exports and imports; import trade matters, including import impact, industry relief from injurious imports, adjustment assistance and programs to encourage competitive responses to imports, unfair import practices including antidumping and countervailing duty provisions, and import policy which relates to dependence on foreign sources of supply; commodity agreements and reciprocal trade agreements involving multilateral and bilateral trade negotiations and implementation of agreements involving tariff and non-tariff trade barriers to and distortions of international trade; international rules, organizations and institutional aspects of international trade agreements; budget authorizations for the customs revenue functions of the Department of Homeland Security, the U.S. International Trade Commission, and the U.S. Trade Representative; and special trade-related problems involving market access, competitive conditions of specific industries, export policy and promotion, access to materials in short supply, bilateral trade relations including trade with developing countries, operations of multinational corporations, and trade with non-market economies.  Source: Rules of the Committee on Ways and Means”

You Write That The Policy Is Stupid; You Could Have Changed The Policy... That Defines Stupid.

14 November 2018

9:43 am

Twitter

@brhodes 

Ben Rhodes: 

“There is zero reason to believe these sanctions will change the Cuban government. There is a 100 percent certainty that the US embargo is hurting the Cuban people. What a sick and stupid policy.”

Mr. Ben Rhodes, Assistant to the President and Deputy National Security Advisor for Communications at the National Security Council (NSC) during the Obama Administration. 

Response: 

On 11/14/18, Ben Rhodes @brhodes wrote about Cuba “What a sick and stupid policy.”  Policy can be changed- Obama Administration could have permitted direct correspondent banking, more agricultural imports and reduced financial restrictions.  It didn’t.  That was stupid policy.

Could Red Habanero Peppers Follow Coffee To The United States?

The United States Department of State authorizes the direct import and indirect import of agricultural commodities from the Republic of Cuba to the United States. The first such product was coffee (https://www.cubatrade.org/blog/2016/7/14/update-hecho-en-cuba-begins-to-mean-something-obama-administration-will-help-accept-certification-from-cuba?rq=Nespresso)

From the United States Department of State:

Q: What are some examples of independent Cuban entrepreneurs?

A: Cuba’s nascent private sector includes self-employed individuals, private small businesses, and private cooperatives that are independent of Cuba’s state sector. Those importing goods or services authorized by § 515.582 must obtain documentary evidence that demonstrates the entrepreneur’s independent status, such as a copy of a license to be self-employed issued by the Cuban government or, in the case of an entity, evidence that demonstrates that the entrepreneur is a private entity that is not owned or controlled in whole or in part by the Cuban government.

LINKS:

https://www.state.gov/e/eb/tfs/spi/cuba/515582/237473.htm

https://www.state.gov/e/eb/tfs/spi/cuba/515582/237471.htm

https://www.state.gov/e/eb/tfs/spi/cuba/515582/index.htm

Cuba will resume hot pepper exports

http://www.granma.cu/cuba/2018-11-12/retomaran-exportacion-de-aji-picante-12-11-2018-21-11-30

"The state newspaper Granma, the official organ of the Communist Party of Cuba, announced that the country would resume its exports of hot pepper as soon as December.

The Horticultural Company Wilfredo Peña, which already has a contract to deliver about 300 kilograms of this product to a foreign client, will be in charge of the production of this plant, which is usually used in the flavoring of many foods and medicinal remedies.

Producers will grow the red Habanero variety, which is considered one of the most interesting varieties outside of Cuba, in a greenhouse of 0.26 hectares.

The managers in charge of this project said that their company had exported more than one ton of this variety of chili to Canada per month a couple of years ago, but of the yellow variety. However, the production was completely paralyzed due to the scarcity of covering for the greenhouses.

Producers expect to collect the chili in the beginning of December and the area will be planted again in January 2019, followed by similar cycles in April and August, which should result in a monthly harvest of close to 1.5 or 1.6 tons.

The cultivation procedures include the elimination of the lower quality products, as well as the use of suitable fertilizers by means of fertigation.

Specialists of the Ministry of Agriculture who are working on this project told the press that they were working so that the pepper's red color was as intense as possible and that they would try to introduce other parameters through laboratory tests so that the product's spiciness level met the international quality standards.

The fruits will be exported in three-kilogram boxes, which will be exported through the Frank Pais International Airport, where they will be verified by specialists of Plant Health and Customs before being exported, as is required for international shipments of plant products."

Brazil Paying Cuba Approximately US$479 Million Annually For Healthcare Workers (Who Are Taxed 75% By Cuba)

The government of the Federative Republic of Brazil reported that 11,420 Republic of Cuba nationals (physicians and nurses) are working within the country providing health services to areas lacking consistent quality healthcare. Reuters has reported that the “health ministry said in a statement that it had managed in three days to get 92 percent of the Brazilian doctors needed to replace the departing Cubans, signing up 25,901 physicians. More than 17,500 had been enlisted, while almost 8,000 had already been allocated to specific municipalities, the statement said.” There is also reporting that the number is 8,332 of which approximately 6,000 will be returning to the Republic of Cuba at the request of the government of the Republic of Cuba due to disputes with the government of the Federative Republic of Brazil relating to compensation terms and status of relatives of the healthcare professionals residing in the Federative Republic of Brazil.

The government of Brazil reportedly pays the government of the Republic of Cuba approximately US$3,500.00 per month (US$42,000.00 annually) per healthcare professional.  There is also reporting that the monthly payment is US$3,100.00 plus room and board. Using the US$3,500.00 value, on an annual basis, the government of Republic of Cuba reportedly receives US$479,640,000.00 of which it would retain approximately US$359,730,000.00. 

The healthcare professional reportedly retains US$900.00 per month (US$10,800.00 annually) and the government of the Republic of Cuba reportedly retains US$2,600.00 per month.  The government of the Republic of Cuba retains 75% of each U.S. Dollar.

The Supreme Accountability Office of Brazil was reported to confirm that a total of US$1.5 billion (US$260 million per year) was paid to the Republic of Cuba during the last five (5) years. Republic of Cuba nationals working as healthcare providers were paid a total of US$125 million during the five-year period; this equates to a compensation rate of 9.61%- meaning that the government of the Republic of Cuba retained 90.39% of the total funds paid by the government of Brazil to the Republic of Cuba.

The government of the Republic of Cuba reportedly has approximately 21,000 to 37,000 to 50,000 healthcare professionals working within sixty-seven (67) to seventy-seven (77) countries; with the largest contingent, reported as 21,700, in Venezuela. According to the government of the Republic of Cuba, approximately 1,000 healthcare professionals work in Algeria as a component of a three-year 2.1 million barrels per day oil barter agreement. According to the government of the Republic of Cuba there are 450 healthcare professionals working in Qatar.

If the 21,000 to 37,000 to 50,000 healthcare professionals are invoiced at US$42,000.00 on an annual basis, the government of the Republic of Cuba would receive approximately US$882 million to US$1.554 billion to US$2.1 billion on an annual basis, of which it would retain approximately US$661.5 million to US$1.165 billion to US$1.575 billion.

According to Republic of Cuba government-operated Prensa Latina news agency, the Ministry of Public Health of the Republic of Cuba (MINSAP) reported for the five-year duration of the program that “nearly 20,000 Cuban collaborators attended to some 113 million people in more than 3,600 municipalities, according to official statistics.”  Using this data, the Republic of Cuba could have received a total of approximately US$4.2 billion from the five-year duration of the program.

U.S. Department Of State Updates "Cuba Restricted List" ... After 14 Day Delay

Media Note

Office of the Spokesperson

Washington, DC

November 14, 2018  

As part of the Trump Administration’s efforts to prevent U.S. funds from reaching the Cuban military, intelligence, and security services, the State Department is adding 26 subentities to the Cuba Restricted List, including 16 hotels owned by the Cuban military. The Department is also updating the names of five already listed subentities to ensure they remain current. The changes take effect Thursday, November 15, 2018. The Department will continue to update the list periodically, in accordance with the June 2017 National Security Presidential Memorandum Strengthening the Policy of the United States Toward Cuba. The Federal Register will publish the update, and the list will be available on the Department’s website here.  

The Cuba Restricted List contains entities and subentities controlled by the Cuban military, intelligence, and security services or personnel. Direct financial transactions with these entities and subentities are generally prohibited because they would disproportionately benefit those services or personnel at the expense of the Cuban people or private enterprise in Cuba. For more information on the Cuba Restricted List, please refer to Treasury regulations at 31 Code of Federal Regulations (CFR) part 515, here, and to Commerce regulations at 15 CFR parts 730-774, here.  

https://www.state.gov/e/eb/tfs/spi/cuba/cubarestrictedlist/287349.htm

Below is the U.S. Department of State’s list of entities and subentities under the control of, or acting for or on behalf of, the Cuban military, intelligence, or security services or personnel with which direct financial transactions would disproportionately benefit such services or personnel at the expense of the Cuban people or private enterprise in Cuba. For information regarding the prohibition on direct financial transactions with these entities, please see the Department of the Treasury’s Office of Foreign Assets Control website and the Department of Commerce’s Bureau of Industry and Security website. All entities and subentities were listed effective November 9, 2017, unless otherwise indicated.  

*** Entities or subentities owned or controlled by another entity or subentity on this list are not treated as restricted unless also specified by name on the list. ***  

Ministries

MINFAR — Ministerio de las Fuerzas Armadas Revolucionarias

MININT — Ministerio del Interior  

Holding Companies

CIMEX — Corporación CIMEX S.A.

Compañía Turística Habaguanex S.A.

GAESA — Grupo de Administración Empresarial S.A.

Gaviota — Grupo de Turismo Gaviota

UIM — Unión de Industria Militar  

Hotels in Havana and Old Havana

Aparthotel Montehabana (Habaguanex)

Gran Hotel Manzana Kempinski (Gaviota)

H10 Habana Panorama (Gaviota)

Hostal Valencia (Habaguanex)

Hotel Ambos Mundos (Habaguanex)

Hotel Armadores de Santander (Habaguanex)

Hotel Beltrán de Santa Cruz (Habaguanex)

Hotel Conde de Villanueva (Habaguanex)

Hotel del Tejadillo (Habaguanex)

Hotel el Bosque (Habaguanex)

Hotel el Comendador (Habaguanex)

Hotel el Mesón de la Flota (Habaguanex)

Hotel Florida (Habaguanex)

Hotel Habana 612 (Habaguanex)

Hotel Kohly (Habaguanex)

Hotel Los Frailes (Habaguanex)

Hotel Marqués de Prado Ameno (Habaguanex)

Hotel Palacio del Marqués de San Felipe y Santiago de Bejucal (Habaguanex)

Hotel Palacio O'Farrill (Habaguanex)

Hotel Park View (Habaguanex)

Hotel Raquel (Habaguanex)

Hotel San Miguel (Habaguanex)

Hotel Telégrafo (Habaguanex)

Hotel Terral (Habaguanex)

Iberostar Grand Packard Hotel (Gaviota) Effective November 15, 2018

Memories Miramar Havana (Gaviota)

Memories Miramar Montehabana (Gaviota)

SO/ Havana Paseo del Prado (Gaviota) Effective November 15, 2018  

Hotels in Santiago de Cuba

Villa Gaviota Santiago (Gaviota)  

Hotels in Varadero

Blau Marina Varadero Resort (Gaviota) (also Fiesta Americana Punta Varadero effective November 15, 2018)

Grand Memories Varadero (Gaviota)

Hotel Las Nubes (Gaviota) Effective November 15, 2018

Hotel Oasis (Gaviota) Effective November 15, 2018

Iberostar Bella Vista (Gaviota) Effective November 15, 2018

Iberostar Laguna Azul (Gaviota)

Iberostar Playa Alameda (Gaviota)

Meliá Marina Varadero (Gaviota)

Meliá Peninsula Varadero (Gaviota)

Memories Varadero (Gaviota)

Naviti Varadero (Gaviota)

Ocean Varadero El Patriarca (Gaviota)

Ocean Vista Azul (Gaviota)

Paradisus Princesa del Mar (Gaviota)

Paradisus Varadero (Gaviota)

Sol Sirenas Coral (Gaviota)  

Hotels in Pinar del Rio

Hotel Villa Cabo de San Antonio (Gaviota)

Hotel Villa Maria La Gorda y Centro Internacional de Buceo (Gaviota)  

Hotels in Baracoa

Hostal 1511 (Gaviota)

Hostal La Habanera (Gaviota)

Hostal La Rusa (Gaviota)

Hostal Rio Miel (Gaviota)

Hotel El Castillo (Gaviota)

Hotel Porto Santo (Gaviota)

Villa Maguana (Gaviota)  

Hotels in Cayos de Villa Clara

Angsana Cayo Santa María (Gaviota) Effective November 15, 2018

Dhawa Cayo Santa María (Gaviota)

Golden Tulip Aguas Claras (Gaviota) Effective November 15, 2018

Hotel Cayo Santa María (Gaviota)

Hotel Playa Cayo Santa María (Gaviota)

Iberostar Ensenachos (Gaviota)

Las Salinas Plana & Spa (Gaviota) Effective November 15, 2018

La Salina Noreste (Gaviota) Effective November 15, 2018

La Salina Suroeste (Gaviota) Effective November 15, 2018

Meliá Buenavista (Gaviota)

Meliá Cayo Santa María (Gaviota)

Meliá Las Dunas (Gaviota)

Memories Azul (Gaviota)

Memories Flamenco (Gaviota)

Memories Paraíso (Gaviota)

Ocean Casa del Mar (Gaviota)

Paradisus Los Cayos (Gaviota) Effective November 15, 2018

Royalton Cayo Santa María (Gaviota)

Sercotel Experience Cayo Santa María (Gaviota) Effective November 15, 2018

Sol Cayo Santa María (Gaviota)

Starfish Cayo Santa María (Gaviota) Effective November 15, 2018

Valentín Perla Blanca (Gaviota) Effective November 15, 2018

Villa Las Brujas (Gaviota)

Warwick Cayo Santa María (Gaviota) (also Labranda Cayo Santa María Hotel effective November 15, 2018)  

Hotels in Holguín

Blau Costa Verde Beach & Resort (Gaviota) (also Fiesta Americana Holguín Costa Verde effective November 15, 2018)

Hotel Playa Costa Verde (Gaviota)

Hotel Playa Pesquero (Gaviota)

Memories Holguín (Gaviota)

Paradisus Río de Oro Resort & Spa (Gaviota)

Playa Costa Verde (Gaviota)

Playa Pesquero Premium Service (Gaviota)

Sol Rio de Luna y Mares (Gaviota)

Villa Cayo Naranjo (Gaviota)

Villa Cayo Saetia (Gaviota)

Villa Pinares de Mayari (Gaviota)  

Hotels in Jardines del Rey

Grand Muthu Cayo Guillermo (Gaviota) Effective November 15, 2018

Hotel Playa Coco Plus (Gaviota)

Iberostar Playa Pilar (Gaviota)

Meliá Jardines del Rey (Gaviota)

Memories Caribe (Gaviota)

Pestana Cayo Coco (Gaviota)  

Hotels in Topes de Collantes

Hostal Los Helechos (Gaviota)

Kurhotel Escambray (Gaviota) Effective November 15, 2018

Los Helechos (Gaviota)

Villa Caburni (Gaviota)  

Tourist Agencies

Crucero del Sol

Gaviota Tours  

Marinas

Marina Gaviota Cabo de San Antonio (Pinar del Rio)

Marina Gaviota Cayo Coco (Jardines del Rey)

Marina Gaviota Las Brujas (Cayos de Villa Clara)

Marina Gaviota Puerto Vita (Holguín)

Marina Gaviota Varadero (Varadero)  

Stores in Old Havana

Casa del Abanico (Habaguanex)

Colección Habana (Habaguanex)

Florería Jardín Wagner (Habaguanex)

Joyería Coral Negro (CIMEX) – Additional locations throughout Cuba

La Casa del Regalo (Habaguanex)

San Ignacio 415 (Habaguanex)

Soldadito de Plomo (Habaguanex)

Tienda El Navegante (Habaguanex)

Tienda Muñecos de Leyenda (Habaguanex)

Tienda Museo El Reloj Cuervo y Sobrinos (Habaguanex)  

Entities Directly Serving the Defense and Security Sectors

ACERPROT — Agencia de Certificación y Consultoría de Seguridad y Protección (alias Empresa de Certificación de Sistemas de Seguridad y Protección effective November 15, 2018)

AGROMIN — Grupo Empresarial Agropecuario del Ministerio del Interior

APCI — Agencia de Protección Contra Incendios

CAHOMA — Empresa Militar Industrial Comandante Ernesto Che Guevara

CASEG — Empresa Militar Industrial Transporte Occidente

CID NAV — Centro de Investigación y Desarrollo Naval

CIDAI — Centro de Investigación y Desarrollo de Armamento de Infantería

CIDAO — Centro de Investigación y Desarrollo del Armamento de Artillería e Instrumentos Ópticos y Ópticos Electrónicos

CORCEL — Empresa Militar Industrial Emilio Barcenas Pier

CUBAGRO — Empresa Comercializadora y Exportadora de Productos Agropecuarios y Agroindustriales

DATYS — Empresa Para El Desarrollo De Aplicaciones, Tecnologías Y Sistemas

DCM TRANS — Centro de Investigación y Desarrollo del Transporte

DEGOR — Empresa Militar Industrial Desembarco Del Granma

DSE — Departamento de Seguridad del Estado

EMIAT — Empresa Importadora Exportadora de Abastecimientos Técnicos

Empresa Militar Industrial Astilleros Astimar

Empresa Militar Industrial Astilleros Centro

Empresa Militar Industrial Yuri Gagarin

ETASE — Empresa de Transporte y Aseguramiento

Ferretería TRASVAL

GELCOM — Centro de Investigación y Desarrollo Grito de Baire

Impresos de Seguridad

MECATRONICS — Centro de Investigación y Desarrollo de Electrónica y Mecánica

NAZCA — Empresa Militar Industrial Granma

OIBS — Organización Integración para el Bienestar Social

PLAMEC — Empresa Militar Industrial Ignacio Agramonte

PNR — Policía Nacional Revolucionaria

PROVARI — Empresa de Producciones Varias

SEPSA — Servicios Especializados de Protección

SERTOD — Servicios de Telecomunicaciones a los Órganos de la Defensa Effective November 15, 2018

SIMPRO — Centro de Investigación y Desarrollo de Simuladores

TECAL — Empresa de Tecnologías Alternativas

TECNOPRO — Empresa Militar Industrial "G.B. Francisco Cruz Bourzac"

TECNOTEX — Empresa Cubana Exportadora e Importadora de Servicios, Artículos y Productos Técnicos Especializados

TGF — Tropas de Guardafronteras

UAM — Unión Agropecuaria Militar

ULAEX — Unión Latinoamericana de Explosivos

XETID — Empresa de Tecnologías de la Información Para La Defensa

YABO — Empresa Militar Industrial Coronel Francisco Aguiar Rodríguez  

Additional Subentities of CIMEX

ADESA/ASAT — Agencia Servicios Aduanales (Customs Services)

Cachito (Beverage Manufacturer)

Contex (Fashion)

Datacimex

ECUSE — Empresa Cubana de Servicios

Inmobiliaria CIMEX (Real Estate)

Inversiones CIMEX

Jupiña (Beverage Manufacturer)

La Maisón (Fashion)

Najita (Beverage Manufacturer)

Publicitaria Imagen (Advertising)

Residencial Tarara S.A. (Real Estate / Property Rental) Effective November 15, 2018

Ron Caney (Rum Production)

Ron Varadero (Rum Production)

Telecable (Satellite Television)

Tropicola (Beverage Manufacturer)

Zona Especializada de Logística y Comercio (ZELCOM)  

Additional Subentities of GAESA

Almacenes Universales (AUSA)

ANTEX — Corporación Antillana Exportadora

Compañía Inmobiliaria Aurea S.A. (GAESA) Effective November 15, 2018

Dirección Integrada Proyecto Mariel (DIP)

Empresa Inmobiliaria Almest (Real Estate)

GRAFOS (Advertising)

RAFIN S.A. (Financial Services)

Sociedad Mercantin Inmobiliaria Caribe (Real Estate)

TECNOIMPORT

Terminal de Contenedores de la Habana (TCH)

Terminal de Contenedores de Mariel, S.A.

UCM — Unión de Construcciones Militares

Zona Especial de Desarrollo Mariel (ZEDM)

Zona Especial de Desarrollo y Actividades Logísticas (ZEDAL)  

Additional Subentities of Gaviota

AT Comercial

Manzana de Gomez (Shopping Mall)  

PhotoService

Plaza La Estrella Effective November 15, 2018

Plaza Las Dunas Effective November 15, 2018

Plaza Las Morlas Effective November 15, 2018

Plaza Las Salinas Effective November 15, 2018

Plaza Las Terrazas del Atardecer Effective November 15, 2018

Plaza Los Flamencos Effective November 15, 2018

Plaza Pesquero Effective November 15, 2018

Producciones TRIMAGEN S.A. (Tiendas Trimagen)  

Additional Subentities of Habaguanex

Sociedad Mercantil Cubana Inmobiliaria Fenix S.A. (Real Estate)  

List of Restricted Entities and Subentities Associated With Cuba as of November 9, 2017

Bureau of Economic and Business Affairs

November 8, 2017 

Below is the U.S. Department of State’s list of entities and subentities under the control of, or acting for or on behalf of, the Cuban military, intelligence, or security services or personnel with which direct financial transactions would disproportionately benefit such services or personnel at the expense of the Cuban people or private enterprise in Cuba. For information regarding the prohibition on direct financial transactions with these entities, please see the Department of the Treasury’s Office of Foreign Assets Control website and the Department of Commerce’s Bureau of Industry and Security website.  

*** Entities or subentities owned or controlled by another entity or subentity on this list are not treated as restricted unless also specified by name on the list. ***  

Ministries

MINFAR — Ministerio de las Fuerzas Armadas Revolucionarias

MININT — Ministerio del Interior

Holding Companies

CIMEX — Corporación CIMEX S.A.

Companía Turística Habaguanex S.A.

GAESA — Grupo de Administración Empresarial S.A.

Gaviota — Grupo de Turismo Gaviota

UIM — Unión de Industria Militar  

Hotels in Havana and Old Havana

Aparthotel Montehabana (Habaguanex)

Gran Hotel Manzana Kempinski (Gaviota)

H10 Habana Panorama (Gaviota)

Hostal Valencia (Habaguanex)

Hotel Ambos Mundos (Habaguanex)

Hotel Armadores de Santander (Habaguanex)

Hotel Beltrán de Santa Cruz (Habaguanex)

Hotel Conde de Villanueva (Habaguanex)

Hotel del Tejadillo (Habaguanex)

Hotel el Bosque (Habaguanex)

Hotel el Comendador (Habaguanex)

Hotel el Mesón de la Flota (Habaguanex)

Hotel Florida (Habaguanex)

Hotel Habana 612 (Habaguanex)

Hotel Kohly (Habaguanex)

Hotel Los Frailes (Habaguanex)

Hotel Marqués de Prado Ameno (Habaguanex)

Hotel Palacio del Marqués de San Felipe y

Hotel Palacio O'Farrill (Habaguanex)

Hotel Park View (Habaguanex)

Hotel Raquel (Habaguanex)

Hotel San Miguel (Habaguanex)

Hotel Telégrafo (Habaguanex)

Hotel Terral (Habaguanex)

Memories Miramar Havana (Gaviota)

Memories Miramar Montehabana (Gaviota)

Santiago de Bejucal (Habaguanex)  

Hotels in Santiago de Cuba

Villa Gaviota Santiago (Gaviota)  

Hotels in Varadero

Blau Marina Varadero Resort (Gaviota)

Grand Memories Varadero (Gaviota)

Iberostar Laguna Azul (Gaviota)

Iberostar Playa Alameda (Gaviota)

Meliá Marina Varadero (Gaviota)

Meliá Peninsula Varadero (Gaviota)

Memories Varadero (Gaviota)

Naviti Varadero (Gaviota)

Ocean Varadero El Patriarca (Gaviota)

Ocean Vista Azul (Gaviota)

Paradisus Princesa del Mar (Gaviota)

Paradisus Varadero (Gaviota)

Sol Sirenas Coral (Gaviota)  

Hotels in Pinar del Rio

Hotel Villa Cabo de San Antonio (Gaviota)

Hotel Villa Maria La Gorda y Centro Internacional de Buceo (Gaviota)  

Hotels in Baracoa

Hostal 1511 (Gaviota)

Hostal La Habanera (Gaviota)

Hostal La Rusa (Gaviota)

Hostal Rio Miel (Gaviota)

Hotel El Castillo (Gaviota)

Hotel Porto Santo (Gaviota)

Villa Maguana (Gaviota)  

Hotels in Cayos de Villa Clara

Dhawa Cayo Santa María (Gaviota)

Hotel Cayo Santa María (Gaviota)

Hotel Playa Cayo Santa María (Gaviota)

Iberostar Ensenachos (Gaviota)

Meliá Buenavista (Gaviota)

Meliá Cayo Santa María (Gaviota)

Meliá Las Dunas (Gaviota)

Memories Azul (Gaviota)

Memories Flamenco (Gaviota)

Memories Paraíso (Gaviota)

Ocean Casa del Mar (Gaviota)

Royalton Cayo Santa María (Gaviota)

Sol Cayo Santa María (Gaviota)

Villa Las Brujas (Gaviota)

Warwick Cayo Santa María (Gaviota)  

Hotels in Holguín

Blau Costa Verde Beach & Resort (Gaviota)

Hotel Playa Costa Verde (Gaviota)

Hotel Playa Pesquero (Gaviota)

Memories Holguín (Gaviota)

Paradisus Río de Oro Resort & Spa (Gaviota)

Playa Costa Verde (Gaviota)

Playa Pesquero Premium Service (Gaviota)

Sol Rio de Luna y Mares (Gaviota)

Villa Cayo Naranjo (Gaviota)

Villa Cayo Saetia (Gaviota)

Villa Pinares de Mayari (Gaviota)  

Hotels in Jardines del Rey

Hotel Playa Coco Plus (Gaviota)

Iberostar Playa Pilar (Gaviota)

Meliá Jardines del Rey (Gaviota)

Memories Caribe (Gaviota)

Pestana Cayo Coco (Gaviota)  

Hotels in Topes de Collantes

Hostal Los Helechos (Gaviota)

Los Helechos (Gaviota)

Villa Caburni (Gaviota)  

Tourist Agencies

Crucero del Sol

Gaviota Tours  

Marinas

Marina Gaviota Cabo de San Antonio (Pinar del Rio)

Marina Gaviota Cayo Coco (Jardines del Rey)

Marina Gaviota Las Brujas (Cayos de Villa Clara)

Marina Gaviota Puerto Vita (Holguín)

Marina Gaviota Varadero (Varadero)  

Stores in Old Havana

Casa del Abanico (Habaguanex)

Colección Habana (Habaguanex)

Florería Jardín Wagner (Habaguanex)

Joyería Coral Negro (CIMEX) – Additional locations throughout Cuba

La Casa del Regalo (Habaguanex)

San Ignacio 415 (Habaguanex)

Soldadito de Plomo (Habaguanex)

Tienda El Navegante (Habaguanex)

Tienda Munecos de Leyenda (Habaguanex)

Tienda Museo El Reloj Cuervo y Sobrinos (Habaguanex)  

Entities Directly Serving the Defense and Security Sectors

ACERPROT — Agencia de Certificación y Consultoría de Seguridad y Protección

AGROMIN — Grupo Empresarial Agropecuario del Ministerio del Interior

APCI — Agencia de Protección Contra Incendios

CAHOMA — Empresa Militar Industrial Comandante Ernesto Che Guevara

CASEG — Empresa Militar Industrial Transporte Occidente

CID NAV — Centro de Investigación y Desarrollo Naval

CIDAI — Centro de Investigación y Desarrollo de Armamento de Infantería

CIDAO — Centro de Investigación y Desarrollo del Armamento de Artillería e Instrumentos Ópticos y Ópticos Electrónicos

CORCEL — Empresa Militar Industrial Emilio Barcenas Pier

CUBAGRO — Empresa Comercializadora y Exportadora de Productos Agropecuarios y Agroindustriales

DATYS — Empresa Para El Desarrollo De Aplicaciones, Tecnologías Y Sistemas

DCM TRANS — Centro de Investigación y Desarrollo del Transporte

DEGOR — Empresa Militar Industrial Desembarco Del Granma

DSE — Departamento de Seguridad del Estado

EMIAT — Empresa Importadora Exportadora de Abastecimientos Técnicos

Empresa Militar Industrial Astilleros Astimar

Empresa Militar Industrial Astilleros Centro

Empresa Militar Industrial Yuri Gagarin

ETASE — Empresa de Transporte y Aseguramiento

Ferretería TRASVAL

GELCOM — Centro de Investigación y Desarrollo Grito de Baire

Impresos de Seguridad

MECATRONICS — Centro de Investigación y Desarrollo de Electrónica y Mecánica

NAZCA — Empresa Militar Industrial Granma

OIBS — Organización Integración para el Bienestar Social

PLAMEC — Empresa Militar Industrial Ignacio Agramonte

PNR — Policía Nacional Revolucionaria

PROVARI — Empresa de Producciones Varias

SEPSA — Servicios Especializados de Protección

SIMPRO — Centro de Investigación y Desarrollo de Simuladores

TECAL — Empresa de Tecnologías Alternativas

TECNOPRO — Empresa Militar Industrial "G.B. Francisco Cruz Bourzac"

TECNOTEX — Empresa Cubana Exportadora e Importadora de Servicios, Artículos y Productos Técnicos Especializados

TGF — Tropas de Guardafronteras

UAM — Unión Agropecuaria Militar

ULAEX — Unión Latinoamericana de Explosivos

XETID — Empresa de Tecnologías de la Información Para La Defensa

YABO — Empresa Militar Industrial Coronel Francisco Aguiar Rodríguez  

Additional Subentities of CIMEX

ADESA/ASAT — Agencia Servicios Aduanales (Customs Services)

Cachito (Beverage Manufacturer)

Contex (Fashion)

Datacimex

ECUSE — Empresa Cubana de Servicios

Inmobiliaria CIMEX (Real Estate)

Inversiones CIMEX

Jupina (Beverage Manufacturer)

La Maisón (Fashion)

Najita (Beverage Manufacturer)

Publicitaria Imagen (Advertising)

Ron Caney (Rum Production)

Ron Varadero (Rum Production)

Telecable (Satellite Television)

Tropicola (Beverage Manufacturer)

Zona Especializada de Logística y Comercio (ZELCOM)  

Additional Subentities of GAESA

Almacenes Universales (AUSA)

ANTEX — Corporación Antillana Exportadora

Dirección Integrada Proyecto Mariel (DIP)

Empresa Inmobiliaria Almest (Real Estate)

GRAFOS (Advertising)

RAFIN S.A. (Financial Services)

Sociedad Mercantin Inmobiliaria Caribe (Real Estate)

TECNOIMPORT

Terminal de Contenedores de la Habana (TCH)

Terminal de Contenedores de Mariel, S.A.

UCM — Unión de Construcciones Militares

Zona Especial de Desarrollo Mariel (ZEDM)

Zona Especial de Desarrollo y Actividades Logísticas (ZEDAL)

Additional Subentities of Gaviota

AT Comercial

Manzana de Gomez (Shopping Mall)

PhotoService

Producciones TRIMAGEN S.A. (Tiendas Trimagen)  

Additional Subentities of Habaguanex

Sociedad Mercantil Cubana Inmobiliaria Fenix S.A. (Real Estate)

LINK TO PRINTED TEXT

Donation Of Tractors From Sonalika In India Is Challenge For John Deere & Caterpillar

Hoshiarur, India-based Sonalika Group (www.sonalika.com):

"Incorporated in 1969 to accomplish newer heights of success, Sonalika Group has come a long way. Over the years, it has diversified into many new businesses in order to meet the better needs of the market and customers. Today the group is among the top three tractor manufacturers of India and provides a complete product line including tractors, multi-utility vehicles, engines, farm machinery attachments, diesel gensets, auto components and pick & carry cranes." Sonalika tractors are marketed in more than 100 countries

Sonalika has donated sixty (60) tractors and one-hundred-and-ten (110) implements to the Republic of Cuba through the Ministry of Foreign Relations of the Republic of Cuba.

Moline, Illinois-based Deere & Company (2017 revenues approximately US$27 billion) continues to explore opportunities to establish a distribution center in the Republic of Cuba; the company has announced that it will provide internal financing for exports to the Republic of Cuba- the first United States company to make such an announcement.

San Juan, Puerto Rico-based Rimco, the Republic of Cuba distributor for Peoria, Illinois-based Caterpillar Inc. (2017 revenues approximately US$38 billion) has a distribution center within the Republic of Cuba government-operated Special Development Zone of Mariel (ZEDM).

https://www.cubatrade.org/blog/2018/2/27/competition-from-donations-and-long-term-government-financing-are-hurdles-to-john-deere-and-caterpillar?rq=caterpillar

https://www.cubatrade.org/blog/2017/11/3/john-deere-could-provide-us30-million-in-financing-for-us-exports-to-cuba?rq=caterpillar

https://www.cubatrade.org/blog/2017/11/2/caterpillars-distributor-to-establish-distribution-center-in-cuba?rq=caterpillar

https://www.cubatrade.org/blog/2018/9/27/cuba-will-require-long-term-financing-for-agricultural-equipment-purchases-from-belarus?rq=tractors

A Hilton Hotel, Again, Refuses To Accommodate Ambassador From Cuba Citing U.S. Regulations

McLean, Virginia-based Hilton Worldwide Holdings, Inc. (NYSE: HLT) had global revenues of approximately US$9 billion in 2017. 

Hilton Worldwide Holdings, Inc., has a claim against the government of the Republic of Cuba certified with the United States Foreign Claims Settlement Commission (CU-2965) in the amount of US$1,854,574.60.  LINK: https://www.justice.gov/fcsc/cuba/documents/1501-3000/2965.pdf

United States statutes, regulations and policies impacting the Republic of Cuba are managed by the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury, Bureau of Industry and Security (BIS) of the United States Department of Commerce, and Office of Legal Advisor (OLA) of the United States Department of State. LINK to: https://www.state.gov/e/eb/tfs/spi/cuba/index.htm

BBC

London, United Kingdom

14 November 2018 

US hotel in Japan refuses Cuba ambassador

Reuters

A US-owned hotel in Japan has been criticised by Japanese authorities after it denied the Cuban ambassador a room over fears it would violate US sanctions on Cuba. 

The Hilton Fukuoka Sea Hawk told Ambassador Carlos Pereria he could not stay last month because it could not accommodate Cuban government guests.  That prompted a Cuban complaint. 

Japanese officials in the city have since told the hotel it was illegal to refuse rooms based on nationality. 

The Cuban embassy booked the room through a travel agency, which informed the hotel of the guests' identity, the Asahi Shimbun newspaper reported.  However when Mr Pereira arrived in the south-western city on a trip to visit Cubans playing for the city's baseball team he was told he could not stay. 

In its subsequent complaint, the Cuban argued that applying US law in Japan encroached on Japan's sovereignty, the Asahi Shimbun said.  But a Hilton representative in the Japanese capital Tokyo told the Kyodo news agency that the firm had to comply with US law because it was based in the US. 

In 2006, the Mexican authorities fined a US-owned Sheraton hotel for expelling a 16-person Cuban delegation from a hotel in Mexico City. 

In 2007 a Norwegian hotel, the Scandic Edderkoppen, refused to let a delegation of 14 Cuban officials stay as it was part of a chain that had been bought by Hilton since the Cubans last visited.  Then Norwegian deputy foreign minister Raymond Johansen told Reuters that it was "totally unacceptable".

The Mainichi

Tokyo, Japan

14 November 2018 

FUKUOKA (Kyodo) -- The Cuban ambassador to Japan was denied a room at a Hilton hotel in southwestern Japan last month, the U.S. hotel group said Wednesday, citing Washington's economic sanctions against the Latin American country.  

The local government has instructed the hotel in Fukuoka to correct the practice as Japanese law prohibits hotels from rejecting guests based on nationality.  

Hilton Fukuoka Sea Hawk told Kyodo News that it refused the ambassador's stay to comply with U.S. laws as an American company.  

The Tokyo travel agency that made the reservation for Oct. 2 for Ambassador Carlos Pereira and embassy officials said it received a phone call from the hotel the same day saying the group could not stay there.  

The agency later received a document that said the hotel "cannot accommodate guests representing the Cuban government."  

The ambassador was visiting Fukuoka to meet with Cuban players belonging to the professional baseball club SoftBank Hawks, the Cuban Embassy said.  

The Japanese law on hotel business stipulates that hotels should not reject guests except for cases involving infectious diseases or illegal activities.  

The health ministry said a rejection based on nationality breaches the law and hotels in Japan should abide by the law.  

A public relations official of the Hilton hotel said, "We are declining stays by government officials and those related to state-run companies from countries subjected to U.S. economic sanctions such as North Korea, Iran and Syria."  

But the official added that the company will discuss the issue based on instructions from the Japanese government.  

The United States has maintained an economic embargo against Cuba since the 1960s following the Cuban Revolution and the nationalization of American-owned properties.