BARBADOS: SUSPENSION OF TITLE III OF THE LIBERTAD

C O N F I D E N T I A L BRIDGETOWN 001472

SIPDIS

SIPDIS

STATE FOR WHA/CCA AND WHA/CAR
SOUTHCOM ALSO FOR POLAD

E.O. 12958: DECL: 11/29/2017
TAGS: ETRD ETTC PREL PINR PGOV CU BB XL
SUBJECT: BARBADOS: SUSPENSION OF TITLE III OF THE LIBERTAD
ACT

REF: STATE 158768

Classified By: Ambassador Mary Ourisman for reasons 1.4(b) and (d).


Summary
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1. (C) Barbados and Cuba enjoy a close relationship. As head
of CARICOM this year, Barbados has publicly declared
CARICOM's commitment to deepening their relationship further
through increased bilateral collaboration and exchange in a
number of areas such as sports, health, education,
agriculture, transportation, disaster mitigation, tourism,
and science and technology. Barbados has also stepped up its
rhetoric against USG policy toward human rights and democracy
in Cuba within the last year, describing it as international
interference and a violation of sovereignty. End Summary.

Nature of Investments
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2. (C) The Canadian energy company Sherritt
(www.sherritt.com) continues to operate two offshore
companies in Barbados that it uses as a platform for
investments in Cuba. The significant tax savings Canadian
companies enjoy in Barbados, coupled with Barbados' tax and
investment treaties with Cuba, mean there may be other
Canadian companies using offshore subsidiaries in Barbados to
enter the Cuban market.

Bilateral Trade Agreements
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3. (C) The only known trade agreements between Barbados and
Cuba was a bilateral trade agreement "for the promotion and
protection of investments," signed in February 2006. The
objective of the agreement is to encourage reciprocal
protections and stimulate capital investment, business
development and economic prosperity. Barbados also ratified
a trade agreement between CARICOM and Cuba with similar
objectives, which was incorporated into Barbados' domestic
legislation in April 2006. In July 1999, Barbados concluded
a tax convention with Cuba to prevent double taxation and
fiscal evasion with respect to income taxation.

Exchange Programs
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4. (U) Barbados has been the recipient of Cuban scholarships
and Cuban-paid medical travel for Barbadians in need of eye
surgery via the "Operacion Milagro" program. There is no
wide-scale program to utilize Cuban doctors in the local
health care system. However, the Barbados-Cuba Joint
Commission agreed in December 2006 to examine the issue of
accreditation of Barbadian medical graduates of Cuban
universities. In addition, Barbados requested assistance
from Cuba to provide specialized medical services for which
there is no expertise in Barbados and for Barbadian medical
professionals to access Cuban medical research and training
institutions such as the Pedro Kouri Institute of Tropical
Medicine. Barbados also requested Cuba's assistance to
enhance its emergency response capacity for Cricket World Cup

2007.


5. (U) Barbados and Cuba intend to develop other exchange
programs in the areas of sports development, primary
education, sugar cane production technologies, disaster
management, and the development of science and technology
institutions in both countries. Barbados and Cuba also
committed to exchange best practices in port security,
passenger and cargo handling, and cruise ship management.

Democracy and Human Rights Promotion
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6. (C) Barbados has done nothing to advance democracy and
human rights in Cuba, but has instead shown solidarity with
Cuba in international fora, particularly on matters related
to the U.S. embargo. Barbados regularly votes to support
pro-Cuba resolutions in the United Nations and almost never
criticizes the Castro regime on its human rights record.
Barbados Prime Minister Owen Arthur holds "The Order of Jose
Marti of Cuba," Cuba's highest award for foreign heads of
state and government.

High-Level Visits
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7. (C) There have been no high-level diplomatic visits
between Cuba and host country in the past six months. In the
past, however, Fidel Castro visited Barbados to participate
in memorial ceremonies related to the 1976 Cuban airliner
explosion. (Note: In April 2007, three Pro-Cuban Barbadian
community organizations--The July 26 Movement, Cuban
Barbadian Friendship Association, and Cuban Five Justice
Committee--wrote President Bush to protest the release of
Luis Posada Carriles and demand his immediate extradition to
Venezuela. The three organizations also condemned the
handling of the Posada Carriles case as "USA support foQthe
terrorist act against the Government and People of the
Republic of Cuba." These Cuba-friendly organizations do not
appear to have a strong influence over the Barbados
government, but do generate significant press coverage on
every anniversary of the airline disaster. End Note.)

Comment
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9. (C) Barbados and Cuba have had solid diplomatic relations
for over thirty years and consider each other "Caribbean
brothers." In addition, Barbados' recent U.N. voting record
on human rights and democracy indicates that Barbados does
not support democracy and human rights in Cuba, where it is
in Barbados' economic and political best interests to
consistently turn a blind eye.
HOWARD