Photo by Gary Raynaldo  /  Vintage American car in Old Havana,  Cuba

By Gary Raynaldo     DIPLOMATIC TIMES

U.S. Secretary of State Mike Pompeo told Congress Monday he intends to suspend a section of the Helms-Burton Act for 30 days   beginning March 19, that allows former owners of commercial property expropriated by Cuba to sue companies and the Cuban government for using or “trafficking” in those confiscated holdings. Lawsuits would be allowed in American courts against Cuban companies using property seized during the 1959 revolution. The fact that the this is the shortest suspension period is an indication the Trump administration is leaning toward an activation of Title III of the 1996 Cuban Liberty and Democratic Solidarity (LIBERTAD). If activated, it would  incite litigation that could have a “crippling effect on U.S.-Cuba trade,”  according to the Engage Cuba Coalition,  which describes itself as “a national coalition of private companies, organizations, and local leaders dedicated to advancing federal legislation to lift the 55-year-old Cuba embargo in order to empower the Cuban people and open opportunities for U.S. businesses.” According to Engage Cuba Coalition,  the 30-days period Pompeo announced is the shortest suspension period yet,  and it contains an exception that allows U.S. nationals whose properties were confiscated by the Cuban government following the 1959 Cuban revolution to sue the roughly 200 Cuban entities on the State Department’s Cuba Restricted List if these companies “traffic” in confiscated property. Due to Title III’s potential to jeopardize U.S. trade interests, every U.S. administration since the law’s enactment in 1996 has suspended its implementation, typically for a period of six months, according to Engage Cuba Coalition.   Pompeo’s  announcement marks the first time Title III has been partially activated.

“Today, Secretary Pompeo reported to the appropriate Congressional committees his determination that an additional suspension for 30 days through April 17, 2019, of the right to bring an action under Title III of the 1996 Cuban Liberty and Democratic Solidarity (LIBERTAD) Act is necessary to the national interests of the United States and will expedite a transition to democracy in Cuba, with the below exception. Beginning March 19, suspension shall not apply to: The right to bring an action against a Cuban entity or sub-entity identified by name on the State Department’s List of Restricted Entities and Sub-entities Associated with Cuba (known as the Cuba Restricted List), as may be updated from time to time. We will continue to study the impact of this suspension on the human rights situation in Cuba. The Cuba Restricted List identifies entities and sub-entities under the control of Cuban military, intelligence, or security services. These security services are directly responsible for the repression of the Cuban people. We encourage any person doing business in Cuba to reconsider whether they are trafficking in confiscated property and abetting the Cuban dictatorship.”  Office of the Spokesperson,  U.S. State Department Mar. 4, 2019.

The  Habana Libre Hotel,  Was Formerly the Havana Hilton That Opened One Year Before the Cuban Revolution 

Photo by: Gary Raynaldo  /   The Habana Libre Hotel, located in the Vedado section of Havana, used to be the American-owned  Havana Hilton before Fidel Castro came to power and confiscated it along with other US properties in Cuba.  In March 1958, under the Batista regime, Conrad Hilton opened the Habana Hilton, a 25-floor tower with more than 500 rooms and a casino, that was largest hotel in Latin America at the time. It was designed by the same US architect as the Beverly Hilton Hotel in Los Angeles.

Photo by Gary Raynaldo / Interior of the Habana Libre Hotel, formerly Havana Hilton. Following Fidel Castro’s entry into Havana on January 8, 1959, the hotel became his headquarters, with Castro residing for three months in the hotel’s Continental Suite, room 2324.

U.S. Secretary Of State’s  Determination of 30-Day Suspension Under Title III of LIBERTAD Act

Credit: U.S. Department of State / Secretary of State Mike Pompeo

“This is a continuation of the same embargo policy that has failed for nearly 60 years. You can put lipstick on a pig, but it’s still a pig. We now have six decades of evidence that the embargo hurts everyday Cubans while emboldening hardliners in the Cuban government. Continuing this failed policy undermines American interests and helps our adversaries.”

James Williams, President of Engage Cuba.

Williams said the 30-day waiver could set a precedent of continuous short-term waivers, creating a “chilling effect”  on foreign investment in Cuba from U.S. allies. Companies from the European Union, Canada, and Mexico could all be subjected to lawsuits if the administration allows full implementation of Title III, though most countries will protect their companies from having to pay damages to U.S. property claimants. The EU has threatened retaliation in the World Trade Organization if Title III is activated, according to Engage Cuba Coalition.

Currently, there are 5,913 certified claims of seized American property in Cuba. Based on the number of living Cuban Americans whose property was seized, the State Department estimates there could be a flood of up to 200,000 claims if the suspension were ended, according to Engage Cuba Coalition.  “The tidal wave of litigation that could result from Title III going into effect would not only burden the U.S. court system and fail its objectives, it could have disastrous effects for the U.S.-Cuba relationship, U.S. businesses, and relations with our allies,”  ECC  contends.