Identifier
Created
Classification
Origin
05VIENNA1826
2005-06-03 11:04:00
CONFIDENTIAL
Embassy Vienna
Cable title:  

AUSTRIA: REVIEW OF LIBERTAD ACT SUSPENSION

Tags:  PREL ETRD ETTC CU AU 
pdf how-to read a cable
This record is a partial extract of the original cable. The full text of the original cable is not available.
C O N F I D E N T I A L VIENNA 001826 

SIPDIS

DEPT FOR WHA/CCA AND EUR/AGS

E.O. 12958: DECL: 06/03/2015
TAGS: PREL ETRD ETTC CU AU
SUBJECT: AUSTRIA: REVIEW OF LIBERTAD ACT SUSPENSION

REF: A) STATE 96300 B) VIENNA 1124

Classified By: Economic-Political Counselor Gregory E. Phillips for
reasons 1.4 (b) and (d).

Policies to Advance Democracy and Human Rights
--------------------------------------------- --
C O N F I D E N T I A L VIENNA 001826

SIPDIS

DEPT FOR WHA/CCA AND EUR/AGS

E.O. 12958: DECL: 06/03/2015
TAGS: PREL ETRD ETTC CU AU
SUBJECT: AUSTRIA: REVIEW OF LIBERTAD ACT SUSPENSION

REF: A) STATE 96300 B) VIENNA 1124

Classified By: Economic-Political Counselor Gregory E. Phillips for
reasons 1.4 (b) and (d).

Policies to Advance Democracy and Human Rights
-------------- --

1. (SBU) Over the past six months, Austria continued to
criticize Cuba's human rights record in international fora,
including in the UN Commission on Human Rights (CHR) (ref B).
On April 14, 2005 Austria co-sponsored the USG's CHR
resolution on the situation of human rights in Cuba.


2. (C) Andreas Melan, the Austrian MFA DAS-equivalent for
Latin America, told us on June 2 that the Austrian Embassy in
Havana has sought to intensify and broaden its contacts over
the past six months with dissidents, religious groups, and
other civil society representatives. According to Melan,
this policy of "constructive dialogue" was in response to the
EU's temporary suspension of the June 2003 restrictive
measures. Melan opined that constructive dialogue was an
improvement compared to unsuccessful sanction measures.
Nevertheless, Melan acknowledged that the temporary
suspension had not resulted in improved human rights in Cuba.


3. (C) Melan emphasized the importance of a newfound,
unified EU position on promoting human rights and democratic
development in Cuba. In the past, Cuba had effectively taken
advantage of differences among Member States to produce
infighting and division. In this context, Melan stressed
that Austria would continue to work for a strong, consensus
position within the EU.


Austria's Economic Relations With Cuba
--------------

4. (U) Total trade with Cuba in 2004 amounted to Euros 5.0
million, a 7.7% decline from 2003. Austria's trade with Cuba
represented approximately .01% of Austria's total trade.
Austrian exports increased by 18.5% in 2004, while imports
from Cuba dropped by 33.7%. Major exports to Cuba include
machinery, rubber, paper, and chemical products. Imports are
mainly cigars, fruit juice concentrates, and honey.


5. (SBU) Before 2003, there was no Austrian FDI in Cuba
apart from a small brewery in Havana (Salm Brau). Since the
signing of the Austrian-Cuban Agreement on Investment
Protection in 2001, Cuba has actively lobbied to attract
Austrian investment in the tourism/hospitality sector. A new
Austrian investment group (Azalea Hotels) is considering
projects in Cuba. The number of Austrian tourists visiting
Cuban is steadily increasing, with 18,000 Austrians visiting
the island in 2003 (latest year statistics available).
LaudaAir, a subsidiary of Austrian Airlines, flies weekly to
Cuba.


6. (SBU) The GoA and GoC have signed a bilateral agreement
on economic, industrial, and scientific cooperation, but it
has not yet entered into force. Following successful funding
negotiations, the Austrian Control Bank is ready to guarantee
short-term export credits up to Euros 500,000. Austrian
Official Development Assistance to Cuba in 2004 was Euros
72,300, up by 3.4% from 2002.


7. (C) Embassy Vienna knows of no Austrian direct investment
in Cuba that might be subject to Libertad Act Title III. We
have no information regarding any new or contemplated
projects that might result in litigation under the Libertad
Act.


Waiver for Austria in the U.S. National Interest
-------------- ---

8. (C) In post's assessment, given Austria's quite limited
current or potential investment in Cuba, revoking the Title
III waiver for Austria would likely negatively affect
bilateral relations at an important moment, as Austria
prepares to assume the EU Presidency in January 2006. A
termination of the waiver would definitely make our
cooperation on promoting human rights in Cuba in
international fora more difficult. We defer to USEU for an
analysis of how not renewing the suspension of Libertad Act
Title III for an EU Member State might affect overall U.S.-EU
relations.
Brown