CUBA: NSC-DIRECTED COUNTRY-BY-COUNTRY REVIEW

C O N F I D E N T I A L NICOSIA 000673

SIPDIS

SIPDIS

DEPT FOR WHA/CCA AND EUR/SE

E.O. 12958: DECL: 05/04/2016
TAGS: ETRD ETTC PREL CY
SUBJECT: CUBA: NSC-DIRECTED COUNTRY-BY-COUNTRY REVIEW
REGARDING SUSPENSION OF TITLE III OF THE LIBERTAD ACT

REF: A. SECSTATE 69773


B. SECSTATE 57782

Classified By: DCM Jane Zimmerman; Reasons 1.4 b and d.


1. (C) Officials of the Central Bank of Cyprus report that
they are unaware of any Cypriot investments in Cuba and that
the stock of Cuban FDI in Cyprus is around CYP 130,000 (or
approximately USD 280,000). There were no investment flows
to or from Cuba in 2003 and 2004. Although, statistics for
investment flows in 2005 have not been released, Central Bank
officials said they were unaware of any flows to or from Cuba
in 2005 or so far in 2006. The central Bank only records
investments from companies active in Cyprus. Its statistics
do not include investments from holding companies established
in Cyprus for tax purposes (formerly known as off-shore
companies),which lack an active presence on the island. The
government will not release any information about specific
investments, were they to exist, as it regards this
information as confidential. Thus we have no information on
the small stock of Cuban investment on Cyprus.


2. (C) According to officials at the MFA, Cyprus has the
following bilateral agreements with Cuba that could
potentially impact on trade: 1) 1981 Cultural Agreement; 2)
2002 Shipping Agreement (came into force in December 2003);
1994 Agricultural Agreement; and a 1986 Agreement for the
Abolition of Visa Requirements on Diplomatic and Official
Passports. Trade in goods between Cyprus and Cuba is very
small. No Cypriot goods were exported to Cuba in either 2004
or 2005 while Cyprus imported Cuban goods worth CYP 6.2
million (around USD 13 million) and CYP 18 million (around
USD 40 million) in 2004 and 2005 respectively.


3. (C) According to the Ministry of Education, Cyprus does
not have any academic of medical exchange programs with any
Latin American country, including Cuba.


4. (C) Post is unaware of any specific bilateral measures
taken by the Government of Cyprus to advance democracy, human
rights, and fundamental freedoms in Cuba. Cyprus follows the
common EU position on Cuba. Within the EU, Cyprus does not
take an active position on policy toward Cuba. Cyprus
supports whatever consensus emerges from Brussels.


5. (C) Cypriot parliamentary groups regularly visit Cuba.
Post is unaware, however, of any high level diplomatic visits
between Cyprus and Cuba in the past six months.
SCHLICHER