CUBA: NON-EXISTENT TURKISH INVESTMENT; GOT

C O N F I D E N T I A L ANKARA 006815 SIPDIS DEPT FOR WHA/CCA AND EUR/SE E.O. 12958: DECL: 12/02/2014 TAGS: CU ETTC PHUM PREL TU SUBJECT: CUBA: NON-EXISTENT TURKISH INVESTMENT; GOT SUPPORTS DEMOCRATIZATION REF: STATE 257651 Classified By: Classified by Thomas Goldberger, Economic Counselor, for reasons 1.4 (B) and (D). ¶1. (C) Reftel requested information on GOT policies in support of democracy and human rights in Cuba, as well as on an Turkish investments in Cuba. The Turkish MFA maintains that it has raised democracy, human rights and fundamental freedoms with Cuba, though there have been no specific initiatives or actions on this in the last six months. ¶2. (U) Based on information provided by the Foreign Trade Undersecretariat (FTU),Turkish nationals do not now maintain any investments in Cuba. Turkish state-owned tobacco company TEKEL had formed a joint venture with Cuban state-owned CATEC called TEKA Cigar Production and Trade Company in 2001, with capital of 1.7 trillion Turkish lira (approximately USD 2.5 million at the then rate of exchange). The venture produced 5 million FONSECA cigars, but none were exported. Due to operating losses, the company was dissolved in October 2003. ¶3. (U) Two-way trade, almost entirely Turkish exports to Cuba, amounted to USD 1.4 million in the first 10 months of ¶2004. The two countries have agreements for a Joint Economic Commission; Trade, Economic and Industrial Cooperation; and Bilateral Investment Protection. Turkey's Export-Import Bank established a 25 million Euro export insurance facility, but it appears not to have been used. EDELMAN