H. R. 927—10
‘‘(5) PROHIBITION
ON
INVESTMENT
IN
DOMESTIC
TELE-
COMMUNICATIONS SERVICES.—Nothing in this subsection shall
be construed to authorize the investment by any United States
person in the domestic telecommunications network within
Cuba. For purposes of this paragraph, an ‘investment’ in the
domestic telecommunications network within Cuba includes the
contribution (including by donation) of funds or anything of
value to or for, and the making of loans to or for, such network.
‘‘(6) REPORTS TO CONGRESS.—The President shall submit
to the Congress on a semiannual basis a report detailing pay-
ments made to Cuba by any United States person as a result
of the provision of telecommunications services authorized by
this subsection.’’.
(h) CODIFICATION
OF
ECONOMIC
EMBARGO.—The economic
embargo of Cuba, as in effect on March 1, 1996, including all
restrictions under part 515 of title 31, Code of Federal Regulations,
shall be in effect upon the enactment of this Act, and shall remain
in effect, subject to section 204 of this Act.
SEC. 103. PROHIBITION AGAINST INDIRECT FINANCING OF CUBA.
(a) PROHIBITION.—Notwithstanding any other provision of law,
no loan, credit, or other financing may be extended knowingly
by a United States national, a permanent resident alien, or a
United States agency to any person for the purpose of financing
transactions involving any confiscated property the claim to which
is owned by a United States national as of the date of the enactment
of this Act, except for financing by the United States national
owning such claim for a transaction permitted under United States
law.
(b) SUSPENSION AND TERMINATION OF PROHIBITION.—
(1) SUSPENSION.—The President is authorized to suspend
the prohibition contained in subsection (a) upon a determination
made under section 203(c)(1) that a transition government in
Cuba is in power.
(2) TERMINATION.—The prohibition contained in subsection
(a) shall cease to apply on the date on which the economic
embargo of Cuba terminates as provided in section 204.
(c) PENALTIES.—Violations of subsection (a) shall be punishable
by such civil penalties as are applicable to violations of the Cuban
Assets Control Regulations set forth in part 515 of title 31, Code
of Federal Regulations.
(d) DEFINITIONS.—As used in this section—
(1) the term ‘‘permanent resident alien’’ means an alien
lawfully admitted for permanent residence into the United
States; and
(2) the term ‘‘United States agency’’ has the meaning given
the term ‘‘agency’’ in section 551(1) of title 5, United States
Code.
SEC. 104. UNITED STATES OPPOSITION TO CUBAN MEMBERSHIP IN
INTERNATIONAL FINANCIAL INSTITUTIONS.
(a) CONTINUED OPPOSITION TO CUBAN MEMBERSHIP IN INTER-
NATIONAL FINANCIAL INSTITUTIONS.—
(1) IN GENERAL.—Except as provided in paragraph (2), the
Secretary of the Treasury shall instruct the United States
executive director of each international financial institution
to use the voice and vote of the United States to oppose the
admission of Cuba as a member of such institution until the
H. R. 927—11
President submits a determination under section 203(c)(3) that
a democratically elected government in Cuba is in power.
(2) TRANSITION GOVERNMENT.—Once the President submits
a determination under section 203(c)(1) that a transition
government in Cuba is in power—
(A) the President is encouraged to take steps to support
the processing of Cuba’s application for membership in
any international financial institution, subject to the mem-
bership taking effect after a democratically elected govern-
ment in Cuba is in power, and
(B) the Secretary of the Treasury is authorized to
instruct the United States executive director of each inter-
national financial institution to support loans or other
assistance to Cuba only to the extent that such loans
or assistance contribute to a stable foundation for a demo-
cratically elected government in Cuba.
(b) REDUCTION IN UNITED STATES PAYMENTS TO INTERNATIONAL
FINANCIAL INSTITUTIONS.—If any international financial institution
approves a loan or other assistance to the Cuban Government
over the opposition of the United States, then the Secretary of
the Treasury shall withhold from payment to such institution an
amount equal to the amount of the loan or other assistance, with
respect to either of the following types of payment:
(1) The paid-in portion of the increase in capital stock
of the institution.
(2) The callable portion of the increase in capital stock
of the institution.
(c) DEFINITION.—For purposes of this section, the term ‘‘inter-
national financial institution’’ means the International Monetary
Fund, the International Bank for Reconstruction and Development,
the International Development Association, the International
Finance Corporation, the Multilateral Investment Guaranty Agency,
and the Inter-American Development Bank.
SEC. 105. UNITED STATES OPPOSITION TO TERMINATION OF THE
SUSPENSION 
OF 
THE 
CUBAN 
GOVERNMENT 
FROM
PARTICIPATION IN THE ORGANIZATION OF AMERICAN
STATES.
The President should instruct the United States Permanent
Representative to the Organization of American States to oppose
and vote against any termination of the suspension of the Cuban
Government from participation in the Organization until the Presi-
dent determines under section 203(c)(3) that a democratically
elected government in Cuba is in power.
SEC. 106. ASSISTANCE BY THE INDEPENDENT STATES OF THE FORMER
SOVIET UNION FOR THE CUBAN GOVERNMENT.
(a) REPORTING REQUIREMENT.—Not later than 90 days after
the date of the enactment of this Act, the President shall submit
to the appropriate congressional committees a report detailing
progress toward the withdrawal of personnel of any independent
state of the former Soviet Union (within the meaning of section
3 of the FREEDOM Support Act (22 U.S.C. 5801)), including advis-
ers, technicians, and military personnel, from the Cienfuegos
nuclear facility in Cuba.
(b) CRITERIA FOR ASSISTANCE.—Section 498A(a)(11) of the For-
eign Assistance Act of 1961 (22 U.S.C. 2295a(a)(11)) is amended
by striking ‘‘of military facilities’’ and inserting ‘‘military and intel-
H. R. 927—12
ligence facilities, including the military and intelligence facilities
at Lourdes and Cienfuegos’’.
(c) INELIGIBILITY FOR ASSISTANCE.—
(1) IN GENERAL.—Section 498A(b) of that Act (22 U.S.C.
2295a(b)) is amended—
(A) by striking ‘‘or’’ at the end of paragraph (4);
(B) by redesignating paragraph (5) as paragraph (6); and
(C) by inserting after paragraph (4) the following new
paragraph:
‘‘(5) for the government of any independent state effective
30 days after the President has determined and certified to
the appropriate congressional committees (and Congress has
not enacted legislation disapproving the determination within
that 30-day period) that such government is providing assist-
ance for, or engaging in nonmarket based trade (as defined
in section 498B(k)(3)) with, the Cuban Government; or’’
(2) DEFINITION.—Subsection (k) of section 498B of that
Act (22 U.S.C. 2295b(k)) is amended by adding at the end
the following new paragraph:
‘‘(3) NONMARKET
BASED
TRADE.—As used in section
498A(b)(5), the term ‘nonmarket based trade’ includes exports,
imports, exchanges, or other arrangements that are provided
for goods and services (including oil and other petroleum prod-
ucts) on terms more favorable than those generally available
in applicable markets or for comparable commodities, includ-
ing—
‘‘(A) exports to the Cuban Government on terms that
involve a grant, concessional price, guaranty, insurance,
or subsidy;
‘‘(B) imports from the Cuban Government at pref-
erential tariff rates;
‘‘(C) exchange arrangements that include advance
delivery of commodities, arrangements in which the Cuban
Government is not held accountable for unfulfilled
exchange contracts, and arrangements under which Cuba
does not pay appropriate transportation, insurance, or
finance costs; and
‘‘(D) the exchange, reduction, or forgiveness of debt
of the Cuban Government in return for a grant by the
Cuban Government of an equity interest in a property,
investment, or operation of the Cuban Government or of
a Cuban national.
‘‘(4) CUBAN GOVERNMENT.—(A) The term ‘Cuban Govern-
ment’ includes the government of any political subdivision of
Cuba, and any agency or instrumentality of the Government
of Cuba.
‘‘(B) For purposes of subparagraph (A), the term ‘agency
or instrumentality of the Government of Cuba’ means an agency
or instrumentality of a foreign state as defined in section
1603(b) of title 28, United States Code, with each reference
in such section to ‘a foreign state’ deemed to be a reference
to ‘Cuba’.’’.
(3) EXCEPTION.—Section 498A(c) of the Foreign Assistance
Act of 1961 (22 U.S.C. 2295A(c)) is amended by inserting after
paragraph (3) the following new paragraph:
H. R. 927—13
‘‘(4) The assistance is provided under the secondary school
exchange program administered by the United States Informa-
tion Agency.’’.
(d) FACILITIES AT LOURDES, CUBA.—
(1) DISAPPROVAL OF CREDITS.—The Congress expresses its
strong disapproval of the extension by Russia of credits equiva-
lent to $200,000,000 in support of the intelligence facility at
Lourdes, Cuba, in November 1994.
(2) REDUCTION IN ASSISTANCE.—Section 498A of the Foreign
Assistance Act of 1961 (22 U.S.C. 2295a) is amended by adding
at the end the following new subsection:
‘‘(d) REDUCTION IN ASSISTANCE FOR SUPPORT OF INTELLIGENCE
FACILITIES IN CUBA.—
‘‘(1) REDUCTION
IN
ASSISTANCE.—Notwithstanding any
other provision of law, the President shall withhold from assist-
ance provided, on or after the date of the enactment of this
subsection, for an independent state of the former Soviet Union
under this Act an amount equal to the sum of assistance
and credits, if any, provided on or after such date by such
state in support of intelligence facilities in Cuba, including
the intelligence facility at Lourdes, Cuba.
‘‘(2) WAIVER.—(A) The President may waive the require-
ment of paragraph (1) to withhold assistance if the President
certifies to the appropriate congressional committees that the
provision of such assistance is important to the national secu-
rity of the United States, and, in the case of such a certification
made with respect to Russia, if the President certifies that
the Russian Government has assured the United States Govern-
ment that the Russian Government is not sharing intelligence
data collected at the Lourdes facility with officials or agents
of the Cuban Government.
‘‘(B) At the time of a certification made with respect to
Russia under subparagraph (A), the President shall also submit
to the appropriate congressional committees a report describing
the intelligence activities of Russia in Cuba, including the pur-
poses for which the Lourdes facility is used by the Russian
Government and the extent to which the Russian Government
provides payment or government credits to the Cuban Govern-
ment for the continued use of the Lourdes facility.
‘‘(C) The report required by subparagraph (B) may be
submitted in classified form.
‘‘(D) For purposes of this paragraph, the term ‘appropriate
congressional committees’ includes the Permanent Select
Committee on Intelligence of the House of Representatives and
the Select Committee on Intelligence of the Senate.
‘‘(3) EXCEPTIONS
TO
REDUCTIONS
IN
ASSISTANCE.—The
requirement of paragraph (1) to withhold assistance shall not
apply with respect to—
‘‘(A) assistance to meet urgent humanitarian needs,
including disaster and refugee relief;
‘‘(B) democratic political reform or rule of law activities;
‘‘(C) technical assistance for safety upgrades of civilian
nuclear power plants;
‘‘(D) the creation of private sector or nongovernmental
organizations that are independent of government control;
‘‘(E) the development of a free market economic system;