Cuba: Issues for the 112th Congress
Released: 2013-01-15T00:00:00

Recent Developments

On January 14, 2013, Cuba's new travel policy went into effect whereby Cubans wanting to travel abroad no longer need an exit permit and letter of invitation. Under the new policy, travel requires only an updated passport and a visa issued by the country of destination, if required. Thousands of Cubans lined up at government migration offices and travel agencies on the first day. While on its face, the new policy can be viewed as a human rights improvement, how significant that improvement is will depend on how the law is implemented. (See " Cuba Alters Its Policy Regarding Exit Permits " below.)

On January 3, 2012, the Cuban Commission on Human Rights and National Reconciliation (CCDHRN) reported that there were at least 6,602 short-detentions for political reasons in 2012, (a 60% increase over 2011). (See " Cuban Government's Change of Repressive Tactics " below.)

On December 10, 2012 (Human Right Day), the State Department issued a press statement expressing deep concern about Cuba's "repeated use of arbitrary detention and violence to silence critics, disrupt peaceful assembly, and intimidate independent society." (See " Policy Developments in 2012 " below.)

On December 5, 2012, the Senate approved S.Res. 609 (Moran) by voice vote, calling for the immediate and unconditional release of Alan Gross, the USAID subcontractor imprisoned in Cuba since December 2009, and urging the Cuban government to address his medical issues. On November 16, 2012, Gross filed suit (along with his wife) in U.S. District Court in Washington, DC, against the U.S. government and his employer, Development Alternatives Inc., alleging that they "failed to disclose adequately.... the material risks that he faced" during his trips to Cuba. Gross had been working in Cuba on a U.S.-funded democracy project. (See " December 2009 Imprisonment of Alan Gross " below.)

On November 19, 2012, official peace talks between the Colombian government and the Revolutionary Armed Forces of Colombia (FARC) began in Havana. (See " Terrorism Issues " below.)

On November 7, 2012, Cuban security agents arrested government critic Antonio Rodiles, and charged him with "resisting authority." Rodiles ultimately was released on November 26, 2012, and charges of "resisting authority" were dropped, but according to Amnesty International (which had issued an urgent appeal for his release), Rodiles was warned not to continue with his activism in Cuba. Rodiles is one of the coordinators of an initiative begun in June 2012 known as the "Citizens' Demand for Another Cuba," which calls on the Cuban government to implement the legal guarantees and policies in the Universal Declaration of Human Rights and to ratify two U.N. human rights conventions. (See " Cuban Government's Change of Repressive Tactics " below.)

On November 2, 2012, Cuba announced that an oil well being drilled offshore Cuba by the Venezuelan state oil company, PdVSA, was not commercially viable. The Italian-owned oil rig, Scarabeo-9, departed Cuba on November 14, reportedly to West Africa. This was the third well drilled by foreign oil companies offshore Cuba this year that did not find oil, and was a significant setback for the Cuban government's efforts to develop its deepwater offshore hydrocarbon resources. (See " Cuba's Offshore Oil Development " below.)

For additional entries, see Appendix B .

Introduction

Political and economic developments in Cuba and U.S. policy toward the island nation, located just 90 miles from the United States, have been significant congressional concerns for many years. Since the end of the Cold War, Congress has played an active role in shaping U.S. policy toward Cuba, first with the enactment of the Cuban Democracy Act of 1992 ( P.L. 102-484 , Title XVII) and then with the Cuban Liberty and Democratic Solidarity Act of 1996 ( P.L. 104-114 ). Both of these measures strengthened U.S. economic sanctions on Cuba that had first been imposed in the early 1960s, but the measures also provided roadmaps for a normalization of relations dependent upon significant political and economic changes in Cuba. A decade ago, Congress modified its sanctions-based policy toward Cuba somewhat when it enacted the Trade Sanctions Reform and Export Enhancement Act of 2000 ( P.L. 106-387 , Title IX) allowing for U.S. agricultural exports to Cuba that led to the United States becoming a major source for Cuba's food imports.

Over the past decade, much of the debate over U.S. policy in Congress has focused on U.S. sanctions, especially over U.S. restrictions on travel to Cuba. The George W. Bush Administration initially liberalized U.S. family travel to Cuba in 2003, but subsequently tightened restrictions on family and other categories of travel in 2004 because of Cuba's crackdown on political dissidents. In 2009, Congress took legislative action in an appropriations measure ( P.L. 111-8 ) to ease restrictions on family travel and travel for the marketing of agricultural exports, marking the first congressional action easing Cuba sanctions in almost a decade. The Obama Administration took further action in April 2009 by lifting all restrictions on family travel and on cash remittances by family members to their relatives in Cuba and restarting semi-annual migration talks that had been curtailed in 2004. In January 2011, the Administration announced the further easing of restrictions on educational and religious travel to Cuba and on non-family remittances, and it also expanded eligible airports in the United States authorized to serve licensed charter flights to and from Cuba.

This report is divided into three major sections analyzing Cuba's political and economic situation, U.S. policy toward Cuba, and selected issues in U.S.-Cuban relations. The first section on the political and economic situation includes a brief historical background, a discussion of the human rights situation and political prisoners, and an examination of economic policy changes that have occurred to date under Raúl Castro. The second section on U.S. policy provides a broad overview of U.S. policy historically through the George W. Bush Administration and then provides a brief discussion of the broad debate on the direction of U.S. policy toward Cuba. Policy under the Obama Administration is then examined in more detail. The third section analyzes many of the key issues in U.S.-Cuban relations that have been at the forefront of the U.S. policy debate on Cuba and have often been the subject of legislative initiatives. These include U.S. restrictions on travel, remittances, and agricultural exports to Cuba; a sanction that denies protection for certain Cuban trademarks; the status of anti-drug cooperation with Cuba; the status of Cuba's offshore development and implications for disaster response preparedness; terrorism issues, especially in consideration of Cuba remaining on the State Department's state sponsors of terrorism list; U.S. funding for democracy and human rights projects; U.S. government-sponsored broadcasting to Cuba (Radio and TV Martí); and migration issues.

Cuba's Political and Economic Situation

Brief Historical Background1

Cuba did not become an independent nation until 1902. From its discovery by Columbus in 1492 until the Spanish-American War in 1898, Cuba was a Spanish colony. In the 19 th century, the country became a major sugar producer with slaves from Africa arriving in increasing numbers to work the sugar plantations. The drive for independence from Spain grew stronger in the second half of the 19 th century, but it only came about after the United States entered the conflict when the USS Maine sank in Havana Harbor after an explosion of undetermined origin. In the aftermath of the Spanish-American War, the United States ruled Cuba for four years until Cuba was granted its independence in 1902. Nevertheless, the United States still retained the right to intervene in Cuba to preserve Cuban independence and maintain stability in accordance with the Platt Amendment that became part of the Cuban Constitution of 1901. The United States subsequently intervened militarily three times between 1906 and 1921 to restore order, but in 1934, the Platt Amendment was repealed.

Cuba's political system as an independent nation was often dominated by authoritarian figures. Gerardo Machado (1925-1933), who served two terms as president, became increasingly dictatorial until he was ousted by the military. A short-lived reformist government gave way to a series of governments that were dominated behind the scenes by military leader Fulgencio Batista until he was elected president in 1940. Batista was voted out of office in 1944 and was followed by two successive presidents in a democratic era that ultimately became characterized by corruption and increasing political violence. Batista seized power in a bloodless coup in 1952 and his rule progressed into a brutal dictatorship. This fueled popular unrest and set the stage for Fidel Castro's rise to power.

Castro led an unsuccessful attack on military barracks in Santiago, Cuba, on July 26, 1953. He was jailed, but subsequently freed and went into exile in Mexico where he formed the 26 th of July Movement. Castro returned to Cuba in 1956 with the goal of overthrowing the Batista dictatorship. His revolutionary movement was based in the Sierra Maestra and joined with other resistance groups seeking Batista's ouster. Batista ultimately fled the country on January 1, 1959, leading to more than 45 years of rule under Fidel Castro until he stepped down from power provisionally in July 2006 because of poor health.

While Castro had promised a return to democratic constitutional rule when he first took power, he instead moved to consolidate his rule, repress dissent, and imprison or execute thousands of opponents. Under the new revolutionary government, Castro's supporters gradually displaced members of less radical groups. Castro moved toward close relations with the Soviet Union while relations with the United States deteriorated rapidly as the Cuban government expropriated U.S. properties (see " Background on U.S.-Cuban Relations " below). In April 1961, Castro declared that the Cuban revolution was socialist, and in December 1961, he proclaimed himself to be a Marxist-Leninist. Over the next 30 years, Cuba was a close ally of the Soviet Union and depended on it for significant assistance until the dissolution of the Soviet Union in 1991.

From 1959 until 1976, Castro ruled by decree. In 1976, however, the Cuban government enacted a new Constitution setting forth the Cuban Communist Party (PCC) as the leading force in state and society, with power centered in a Political Bureau headed by Fidel Castro. Cuba's Constitution also outlined national, provincial, and local governmental structures. Since then, legislative authority has been vested in a National Assembly of People's Power that meets twice annually for brief periods. When the Assembly is not in session, a Council of State, elected by the Assembly, acts on its behalf. According to Cuba's Constitution, the president of the Council of State is the country's head of state and government. Executive power in Cuba is vested in a Council of Ministers, also headed by the country's head of state and government, that is, the president of the Council of State.

Fidel Castro served as head of state and government through his position as president of the Council of State from 1976 until February 2008. While he had provisionally stepped down from power in July 2006 because of poor health, Fidel still officially retained his position as head of state and government. National Assembly elections were held on January 20, 2008, and Fidel Castro was once again among the candidates elected to the now 614-member legislative body. (As in the past, voters were only offered a single slate of candidates.) On February 24, 2008, the new Assembly was scheduled to select from among its ranks the members of the Council of State and its president. Many observers had speculated that because of his poor health, Fidel would choose not to be reelected as president of the Council of State, which would confirm his official departure from heading the Cuban government. Statements from Castro himself in December 2007 hinted at his potential retirement. That proved true on February 19, 2008, when Fidel announced that he would not accept the position as president of the Council of State, essentially confirming his departure as titular head of the Cuban government.

Political Conditions

After Fidel stepped down from power, Cuba's political succession from Fidel to Raúl Castro was characterized by a remarkable degree of stability. After two and one half years of provisionally serving as president, Raúl Castro officially became Cuba's president on February 24, 2008, when Cuba's legislature selected him as president of the 31-member Council of State.

For many years, Raúl, as first vice president of the Council of State and the Council of Ministers, had been the officially designated successor and was slated to become head of state with Fidel's departure. Raúl also had served as Minister of the Revolutionary Armed Forces (FAR) since the beginning of the Cuban revolution. When Fidel stepped down from power in 2006, he signed a proclamation that ceded political power to Raúl on a provisional basis, including the positions of first secretary of the Cuban Communist Party, commander in chief of the FAR, and president of the Council of State. Despite the change in government in February 2008, Fidel still officially held the title of first secretary of the PCC, although Raúl as provisional first secretary was leading the party. (It was not until the PCC's sixth party congress held in April 2011 that Raúl officially assumed the title of first secretary.)

While it was not a surprise to observers for Raúl to succeed his brother Fidel officially as head of government, the selection of José Ramón Machado Ventura as the Council of State's first vice president in February 2008 was a surprise. (At the same time, Machado became first vice president of the Council of Ministers, and later in April 2011 became PCC second secretary at the sixth party congress.) Born in 1930, Machado is a physician by training and is part of the older generation of so-called históricos of the 1959 Cuban revolution along with the Castro brothers (Fidel Castro was born on August 13, 1926, while Raúl Castro was born on June 3, 1931). He has been described as a hard-line communist party ideologue, and reportedly has been a close friend and confident of Raúl for many years. Machado's position is significant because it makes him the official successor to Raúl, according to the Cuban Constitution. Many observers had expected that Carlos Lage, one of five other vice presidents on the Council of State, would have been chose as first vice president. Born in 1951, Lage was responsible for Cuba's economic reforms in the 1990s and represented a younger generation of Cuban leaders.

Several key military officers and confidants of Raúl also became members of the Council of State, increasing the role of the military in the government. General Julio Casas Regueiro, who already was on the Council, became one of its five vice presidents. Most significantly, Casas Regueiro, who had been first vice minister in the FAR, was selected by Raúl as the country's new minister of the FAR, officially replacing Raúl in that position. Casas Regueiro also is chairman of GAESA (Grupo de Administracion Empresarial, S.A.), the Cuban military's holding company for its extensive business operations. (On September 2, 2011, Casas Regueiro died from a heart attack at 75 years of age, and was replaced as minister of the FAR by 70-year old Gen. Leopoldo Cintra Frías, who was serving as first vice minister of the FAR and also was a member of the Council of State.)

In March 2009, Raúl orchestrated a government shake-up that combined four ministries into two and ousted a dozen high-ranking officials, most notably including Foreign Minister Felipe Pérez Roque, Council of Ministers Secretary Carlos Lage, and Minister of Economy and Planning José Luis Rodriguez García. The streamlining combined the portfolios of food and fishing into one ministry and the foreign investment and trade portfolios into another ministry. Changes in the bureaucracy had been anticipated since February 2008 when Raúl Castro vowed to make the government smaller and more efficient, but the ouster of both Felipe Pérez Roque and Carlos Lage, who lost all their government and party positions, caught many observers by surprise. Pérez Roque was replaced by career diplomat Bruno Rodriguez Parrilla, who served for eight years (1995-2003) as Cuba's U.N. Ambassador and most recently as vice foreign minister. Carlos Lage, who most significantly lost his position as a vice president of the Council of State, was replaced by military General José Amado Guerra, who had worked for Raúl Castro as secretary of the FAR.

What was unexpected about the simultaneous ouster of both Pérez Roque and Lage was that they represented different tendencies within Cuba's communist political system. Pérez Roque, a former private secretary to Fidel, was known as a hardliner, while Carlos Lage, who was responsible for Cuba's limited economic reforms in the 1990s, was viewed as a potential economic reformer. Some observers maintain that the ouster of both Pérez Roque and Lage was a move by Raúl to replace so-called Fidelistas with his own supporters. Fidel, however, wrote in one of his reflections in the Cuban press that both officials had been seduced by ambitions for power, and that a majority of the other officials who were replaced by Raúl had not originally been appointed by Fidel. Along these lines, a number of observers maintain that the ouster of Pérez Roque and Lage had more to do with removing potential contenders for power in a post-Castro Cuba. What appears clear from the government shake-up is that Raúl Castro began putting his mark on the Cuban government bureaucracy. Some observers contend that Raúl was moving forward with his pledge to make the government more efficient. According to this view, ideology did not play a role in the appointments, and several of those brought in as ministers were relatively unknown technocrats. The new appointments also continued the trend toward bringing more military officials into the government.

While Raúl began implementing some limited economic reform in 2008 (see " Reform Efforts Under Raúl Castro ," below), there has been no change to his government's tight control over the political system and few observers expect there to be, with the government backed up by a strong security apparatus. Some observers point to the significantly reduced number of political prisoners over the past several years as evidence of a lessening of repression, but while human rights activists have welcomed the change, some maintain that the overall situation has not improved, with the government resorting to short-term detentions and other forms of intimidation.

The Cuban Communist Party's sixth congress was expected to be held at the end of 2009 (the last was held in 1997), but the party postponed it, with Raúl Castro maintaining that additional and extensive preparation was needed for the meeting. Ultimately the party congress was held April 16-19, 2011, concentrating on making changes to Cuba's economic model, but some political changes also occurred at the party congress. As expected, Fidel was officially replaced by Raúl as first secretary of the PCC, and First Vice President José Ramón Machado became the party's second secretary. The party's Political Bureau or Politburo was reduced from 24 to 15 members, with three new members, Marino Murrillo, Minister of Economy Adel Yzquierdo Rodriguez, and the first secretary of the party in Havana, Mercedes Lopez Acea. The party's Central Committee also was reduced from 125 to 115 members, with about 80 of those being new members of the committee.

At the April 2011 party congress, Raúl Castro also proposed two five-year term limits for top positions in the party and in the government, calling for systematic rejuvenation. This change was confirmed by a January 28-29, 2012, PCC national conference (a continuation of the April 2011 party congress, but focusing on PCC internal changes.) Some analysts maintain that enacting term limits ultimately could pave a way for political succession from one generation to another. Cuba's revolutionary leadership has been criticized for remaining in party and government positions far too long, and for not passing leadership opportunities to a younger generation. Some observers had expected leadership changes to occur at the January 2012 meeting. While this did not occur, the conference approved a resolution by which the PCC Central Committee would be allowed to replace up to 20% of its 115 members within its five-year mandate. Overall, analysts expressed disappointment that the national conference, which reaffirmed the PCC as Cuba's only recognized party, did not offer more significant political reforms. Given the age of Cuba's current leadership, some observers believe that the government could confront significant difficulty if it faced a sudden succession scenario.

On February 3, 2013, Cuba is scheduled to hold elections for over 600 members of the National Assembly of People's Power, the national legislature, as well as over 1,200 provincial government representative, both for five-year terms. Once the National Assembly members are elected, the body will have 45 days to meet to select the next president of the Council of State, Cuba's head of government. Most observers expect Raúl Castro to be reselected for a five year-term. In the last National Assembly election in 2008, all candidates ran unopposed and were vetted by government-run commissions. Under Cuba's one-party system, the overwhelming majority of those elected are PCC members. Critics maintain that the elections are a sham and entirely controlled by the Communist Party. One change in this year's elections is Ricardo Alarcón, who had served as president of the National Assembly since 1993, will not stand for re-election. Some observers speculate that Alarcón's departure could be a sign that the government is moving to replace Cuba's older revolutionary leadership.

Human Rights

Cuba has a poor record on human rights, with the government sharply restricting freedoms of expression, association, assembly, movement, and other basic rights since the early years of the Cuban revolution. Some observers anticipated a relaxation of the government's oppressive tactics in the aftermath of the January 1998 visit of Pope John Paul II, but government attacks against human rights activists and other dissidents continued. While the government has released numerous political prisoners over the past several years—including more 125 since 2010—it has also resorted to thousands of short-term detentions for political reasons and other forms of harassment and intimidation against government critics. At the same time, there appears to have been increased space for public discussion and dialogue on economic and social issues, including in Catholic Church and academic publications. (See the text box on "Human Rights Reporting on Cuba" below for links to reports from Human Rights Watch, the Inter-American Commission on Human Rights, the State Department, Amnesty International, and the Cuban Commission on Human Rights and National Reconciliation.)

Cuba signed two U.N. human rights treaties in 2008: the International Covenant on Civil and Political Rights and the International Covenant on Economic, Social, and Cultural Rights. Some considered this a positive step, while others point out that Cuba has not yet ratified the agreements, and has not taken any significant action to guarantee civil and political freedoms. Human rights activists in Cuba have called on the Cuban government to put into place the legal and political guarantees embodied in the two covenants. In March 2008, the Cuban government did lift the ban on Cubans staying at tourist hotels. Although few Cubans will be able to afford the cost of staying in such hotels, the move was symbolically significant and ended the practices of what critics had dubbed "tourism apartheid."

While Cuban authorities have continued to stifle dissent and repress freedoms, Cuban pro-democracy and human rights activists continue to call attention to the country's poor human rights record and many have been recognized over the years by the international community for their efforts.

Ladies in White

A human rights group known as the Ladies in White ( Las Damas de Blanco ) was formed in April 2003 by the wives, mothers, daughters, sisters, and aunts of the members of the "group of 75" dissidents arrested a month earlier in Cuba's human rights crackdown. The group conducts peaceful protests calling for the unconditional release of political prisoners. Dressed in white, its members attend Mass each Sunday at St. Rita's Church in Havana and then walk silently along First Avenue to a nearby park. In April 2008, 10 members of the Ladies in White were physically removed from a park near the Plaza of the Revolution in Havana when they demanded the release of their husbands and the other members of the "group of 75" still imprisoned. The group held protests during the third week of March 2010 to commemorate the March 2003 crackdown. Cuban security forces and government-orchestrated mobs forcefully broke up the protests on March 16 and 17, while protests on other days were subject to verbal abuse by mobs. In April 2010, the Ladies in White were prevented from conducting their weekly protests by government-orchestrated mobs. Through the intercession of Roman Catholic Cardinal Jaime Ortega, the Cuban government ended the harassment in early May 2010 and allowed the Ladies in White to resume their weekly marches.

Nevertheless, the Ladies in White have continued to face harassment. On March 18, 2011, members of the group were subject to "acts of repudiation" by government-orchestrated mobs as they attempted to commemorate the anniversary of the 2003 human rights crackdown. In August 2011, pro-government mobs attacked members of the Ladies in White in the city of Santiago when they attempted to march peacefully. On August 18, 2011, more than 40 members of the Ladies in White in Havana were attacked by a government-orchestrated mob. The group had been attempting to stage a protest to call attention to the recent harassment of their colleagues in Santiago. In late August 2011, police used tear gas to disrupt a street march in the town of Palma Soriano in Santiago province that was protesting the attacks against the Ladies in White. Amnesty International and the Department of State called for the end of harassment and attacks against the human rights group. In September 2011, pro-government supporters prevented the Ladies in White in Havana from marching to attend Mass on the feast day of the Virgin of Mercy. A founding member and leader of the Ladies in White, Laura Pollán, died unexpectedly in a Havana hospital from respiratory complications on October 14, 2011.

In late November 2011, two human rights activists—Ivonne Malleza Galano and her husband Ignacio Martínez Montejo—were arrested after staging a peaceful protest in Havana, while an onlooker who protested their arrest—Isabel Haydee Álvarez—was also arrested. Malleza Galano was a member of a group supporting the Ladies in White. Amnesty International subsequently adopted all three as prisoners of conscience. After 52 days of being held without charges, all three were released from prison on January 20, 2012 (a day after the death of hunger striker Wilman Villar Mendoza), and were reportedly warned that they would face harsh sentences if they continued their dissident activities.

On the weekend of February 18-19, 2012, Cuban Archbishop Dionisio Garcia reportedly helped evacuate 14 members of the Ladies in White who had sought refuge at the El Cobre Basilica in Santiago, Cuba, after the women received messages that they would face beatings by the police. In the lead up to the visit of Pope Benedict XVI to Cuba in March 2012, repression against the Ladies in White increased with numerous short-term detentions intended to block the human rights activists from attending planned activities.

In early June 2012, representatives of the Ladies in White held an almost four-hour meeting with Cardinal Ortega that some observers maintained was an effort to improve relations between the Church and dissidents, relations that have been strained in recent months. Berta Soler, the leader of the Ladies in White, expressed satisfaction with the meeting, and said that she asked the Cardinal to intercede with the government to curb repression against her group.

Amnesty International (AI) issued an urgent action appeal on July 18, 2012, calling on Cuban authorities to either charge three protestors—Ladies in White Niurka Luque Álvarez and Sonia Garro Alfonso, and Sonia's husband Ramón Alejandro Muñoz González—or release them. All three were first detained in March 2012 after the two women participated in a peaceful commemoration of the anniversary of Cuba's March 2003 human rights crackdown. According to AI, Luque Álvarez was released on October 5, 2012, pending trial, while both Garro Alfonso and her husband reportedly continue to be incarcerated.

AI also reported that some 68 members of the Ladies in White were arrested from September 21-25, 2012, but all were released by September 26. Around 50 had been traveling from different provinces to attend four-day event in Havana, but were arrested en route, while 18 had been arrested in Havana. On October 14, 2012, at least 22 members of the Ladies in White were detained to prevent them from commemorating the one-year anniversary of the death of the group's leader Laura Pollán—dozens of other members, however, were able to commemorate Pollán during their weekly march.

On December 9, 2012, a day before Human Rights Day, more than 90 members of the Ladies in White were reportedly beaten and detained, according to the Department of State.

Internet Bloggers

Over the past several years, numerous independent Cuban blogs have been established that are often critical of the Cuban government—all of these are hosted on overseas servers. The Cuban government has responded with its own team of some 1,000 official bloggers to counter the independent bloggers.

Cuban Internet blogger Yoani Sánchez has received considerable international attention since late 2007 for her website, Generación Y, which includes commentary critical of the Cuban government. (Sánchez's website is available at http://www.desdecuba.com/generaciony/ , and has links to numerous other independent Cuban blogs and websites ). In May 2008, Sánchez was awarded Spain's Ortega y Gasset award for digital journalism, but the Cuban government did not provide her with an exit permit (known as a "white card") allowing her to travel to Spain to accept the award. On November 6, 2009, Sánchez and two other bloggers, Orlando Luis Pardo and Claudia Cadelo, were intercepted by state security agents while walking on a Havana street on their way to participate in a march against violence. Sánchez and Pardo were beaten in the assault. The Department of State issued a statement deploring the assault, and expressed its deep concern to the Cuban government for the incident.

In early February 2012, Sánchez was denied an exit visa by the Cuban government to travel to Brazil to attend a documentary screening on freedom of expression. Sánchez has been denied an exit visa numerous times in the past, highlighting a common practice of the Cuban government in forbidding citizens from leaving Cuba without official permission. Sánchez maintained that she would test the recent changes in Cuba's migration policy announced October 16, 2012, that will eliminate the long-criticized required "exit permit"—the changes went into effect on January 14, 2013, and Sánchez was one of the first people in line at the immigration office for a new passport, which she was told would take 15 days and then she would be able to travel. (For more, see " Cuba Alters Its Policy Regarding Exit Permits " below.)

Sánchez, along with her husband, Reinaldo Escobar, and several other dissidents were detained for some 30 hours in early October 2012 after traveling to the city of Bayamo to cover the trial of a Spanish politician accused of causing the death of political dissident Oswaldo Payá in a car crash in July 2012 (see " Death of Human Rights Activist Oswaldo Payá " below).

Political Prisoners and Death of Hunger Strikers

Overview . The Cuban government conducted a severe crackdown in March 2003 (often referred to as the Primavera Negra , or Black Spring) and imprisoned 75 democracy activists, including independent journalists and librarians and leaders of independent labor unions and opposition parties. Until mid-2010, a majority of the "group of 75" political prisoners remained incarcerated, but the Cuban Catholic Church held talks with the Cuban government in July 2010 that ultimately led to the release of all of them by March 2011. Overall, more than 125 political prisoners have been released since mid-2010. Most traveled to exile in Spain, while a dozen remained in Cuba.

In April 2012, the Cuban Commission on Human Rights and National Reconciliation (CCDHRN) reported that there remained at least 50 political prisoners in Cuba sanctioned for political reasons (along with another 15 released on parole); this compares to more than 200 political prisoners estimated by the CCHHRN at the beginning of 2010. As described below, two Cuban political prisoners conducting hunger strikes have died in recent years, Orlando Zapata Tamayo in February 2010 and Wilman Villar Mendoza in January 2012. The Department of State maintains that accurate numbers of political prisoners are difficult to determine because the Cuban government continues to deny prison access to independent monitors who could help determine the size of the political prisoner population.

In anticipation of Pope Benedict XVI's March 2012 visit, the Cuban government released almost 3,000 prisoners in late December 2011, including about 7 political prisoners. In May 2012, the Cuban government maintained that it had released over 10,000 prisoners over the past six months, leaving some 57,000 people incarcerated in the country. The CCDHRN, however, estimates that the actual number of Cubans incarcerated is between 65,000 and 70,000.

Death of Orlando Zapata Tamayo. The death of imprisoned Cuban dissident Orlando Zapata Tamayo on February 23, 2010, after an 83-day hunger strike focused increased U.S. and world attention on the plight of Cuba's political prisoners. Zapata, who was 42 years old at the time of his death, was arrested on March 20, 2003, while taking part in a hunger strike to demand the release of political prisoner Oscar Biscet. He was a member of the Alternative Republican Movement and the National Civic Resistance Committee. Zapata was not counted among the "group of 75" political prisoners arrested in 2003, but in January 2004, Amnesty International declared that he was a prisoner of conscience. In May 2004, Zapata was sentenced to three years in prison for "disrespect, public disorder, and resistance," but he was subsequently tried on further charges and was serving a total sentence of 36 years.

U.S. officials maintained that Zapata's death highlighted the injustice of Cuba's holding political prisoners and called for their immediate release. President Obama issued a statement on March 24, 2010, expressing deep concern about the human rights situation in Cuba, including the death of Zapata, the repression of the Ladies in White, and increased harassment of those who dare to express support for their fellow Cuban citizens. The President called for the end of repression, the immediate and unconditional release of all political prisoners, and respect for the basic rights of the Cuban people. On March 18, 2010, the Senate approved S.Con.Res. 54 (Nelson, Bill), which recognized Zapata's life and called for a continued focus on the promotion of internationally recognized human rights in Cuba.

Zapata's death also prompted considerable criticism from human rights organizations and other countries. Amnesty International expressed strong criticism of the death of Zapata, which it maintained was an "indictment of the continuing repression of political dissidents in Cuba." It called for Cuba to invite international human rights experts to visit Cuba to verify respect for human rights. The European Parliament condemned the death of Zapata and called for the "immediate and unconditional release of political prisoners," and even Spain, which had been lobbying the European Union for a relaxation of its common policy on Cuba, urged the release of Cuban political prisoners. Chile and Costa Rica also criticized Cuba for Zapata's death, and Mexico expressed concern for the health of Cuban dissidents. President Raúl Castro said that he regretted Zapata's death, but he also maintained that no one has been tortured or murdered in Cuba.

Zapata's death prompted protests by other dissidents, and several dissidents vowed to undertake hunger strikes. Cuban dissident Guillermo Fariñas began a hunger strike on February 24, 2010, calling for the release of 26 political prisoners who were reported to be in ill health. Fariñas had undertaken numerous other hunger strikes over the years, but he developed complications and a blood clot that drove him to near death before he ended the strike on July 8, 2010, when the Cuban government, after talks with the Cuban Catholic Church, announced that it would release 52 political prisoners.

Death of Wilman Villar Mendoza. On January 19, 2012, 31-year old Wilman Villar Mendoza died following a 50-day hunger strike after he was convicted of "contempt" of authority in November 2011 and sentenced to four years in prison. Villar Mendoza had participated in a peaceful demonstration with eight other members of the dissident Cuban Patriotic Union. The Cuban government has attempted to paint Villar Mendoza as a common criminal, but human rights organizations hold the government responsible for the political dissident's death. Amnesty International said that Villar Mendoza's death was a "shocking reminder of the Raúl Castro government's intolerance for dissent."

A White House statement on Villar Mendoza described the hunger striker as a "young and courageous defender of human rights and fundamental freedoms in Cuba," and maintained that "his senseless death highlights the ongoing repression of the Cuban people and the plight faced by brave individuals standing up for the universal rights of all Cubans." On February 1, 2012, the Senate approved S.Res. 366 (Menendez), " honoring the life of dissident and democracy activist Wilman Villar Mendoza" and "condemning the Castro regime for the death of Wilman Villar Mendoza."

Cuban Government's Change of Repressive Tactics

Human right groups across the board maintain that even though the number of long-term political prisoners has declined, Cuba's human rights situation nevertheless has deteriorated since 2011, with the number of short-term detentions increasing significantly. In early May 2011, Cuban dissident Juan Wilfredo Soto Garcia died three days after he reportedly was beaten by police, although Cuban authorities maintain that he died of natural causes. The press rights groups Committee to Protect Journalists issued a report in early July 2011 detailing continued Cuban government persecution of independent journalists through arbitrary arrests, beatings, and intimidation.

The Cuban Commission on Human Rights and National Reconciliation (CCDHRN) reports that there were at least 4,123 short-detentions for political reasons in 2011, compared to at least 2,074 in 2010, almost double. Short-detentions of dissidents for political reasons increased further in 2012, with at least 6,602 such detentions (a 60% increase over 2011), according to the CCDHRN. This included 1,158 detentions in March alone surrounding the visit of Pope Benedict XVI.

In March 2012, Amnesty International published a report maintaining that "the Cuban government wages a permanent campaign of harassment and short-term detentions of political opponents to stop them from demanding respect for civil and political rights." The report maintained that the release of dozens of political prisoners in 2011 "did not herald a change in human rights policy." AI asserted that "the vast majority of those released were forced into exile, while in Cuba the authorities were determined to contain the dissidence and government critics with new tactics," including intimidation, harassment, surveillance, and "acts of repudiation," or demonstrations by government supporters targeting government critics.

On June 7, 2012, the Senate Foreign Relations Committee, Subcommittee on Western Hemisphere, Peace Corps, and Global Narcotics held a hearing on the human rights situation in Cuba, featuring Assistant Secretary of State for Western Hemisphere Affairs Roberta Jacobson along with three human rights activists testifying from Cuba. One of the human rights activists testifying from Cuba, Jorge Luis García Pérez (also known as Antúnez), was subsequently arrested and beaten on June 9 by Cuban police in the province of Villa Clara and released five days later. Several U.S. Senators strongly criticized the Cuban government, including Senate Foreign Relations Committee Chairman John F. Kerry, who condemned "any efforts to intimidate Mr. Pérez or any other Cuban citizen into silence."

On November 7, 2012, Cuban security agents arrested government critic Antonio Rodiles, and charged him with "resisting authority." Rodiles was arrested along with some 20 dissidents (including Yoani Sanchez) who were going to the Department of State Security headquarters to inquire about the detainment of an independent lawyer and journalist, Yaremis Flores. Subsequently Flores was released on November 9, 2011, while the other dissidents, with the exception of Rodiles, were also subsequently freed. Amnesty International issued an urgent action appeal on November 15, 2012, calling for the Cuban government to immediately and unconditionally release Rodiles and to cease the harassment of other citizens peacefully exercising their rights to freedom of expression and association. Rodiles ultimately was released on November 26, 2012, and charges of "resisting authority" were dropped, but according to Amnesty International, Rodiles was warned not to continue with his activism in Cuba.

Rodiles is one of the coordinators of an initiative known as the "Citizens' Demand for Another Cuba," which was presented to Cuba's National Assembly in June 2012. The initiative calls on the Cuban government to implement the legal guarantees and polices in the Universal Declaration of Human Rights and to ratify two U.N. human rights treaties that the government signed in 2008—the International Covenant on Civil and Political Rights and the International Covenant on Economic, Social, and Cultural Rights. Rodiles also is the coordinator of a forum known as "Estado de Sats" (State of Sats), which was begun in July 2010 in order to encourage open debate on cultural, social, and political issues (see the group's website at http://www.estadodesats.com/ ).

On November 27, 2012, according to Amnesty International, Cuban authorities assaulted independent journalist Guillermo Fariñas on the street, and in a separate incident threatened Elizardo Sánchez, the head of the CCDHRN. Both had attended a meeting with other civil society groups. Amnesty International issued an urgent action appeal to call on Cuban authorities to investigate these incidents and "to cease immediately the harassment of the two men and all other citizens who peacefully exercise their rights to freedom of expression and association."

March 2012 Visit of Pope Benedict44

Pope Benedict XVI visited Cuba from March 26-28, 2012, the first papal visit since the visit of Pope John Paul II in 1998. The Pope's visit coincided with the 400 th anniversary of Our Lady of Charity (La Virgen de Caridad del Cobre), the patron saint of Cuba. After a trip to Mexico, the pontiff's visit to Cuba began in the eastern city of Santiago, where he celebrated mass in the Plaza of the Revolution, and visited the shrine of Our Lady of Charity in the town of El Cobre outside Santiago. The Pope then traveled to Havana, where he celebrated an outdoor mass in the Plaza of the Revolution and also met with church and Cuban government officials. While the purpose of the Pope's visit was pastoral (some 60% to 70% of Cubans are Catholic), the trip also highlighted the increased social and political profile of the Catholic Church in Cuba and its efforts in recent years to influence the Cuban government.

Cuba's Catholic Church became more openly critical of the Cuban government in 1993 when Cuban bishops issued a pastoral letter opposing limitations on freedom, excessive surveillance by state security, and imprisonment and harassment of dissidents. For many observers, the bishops' statement reflected a new era in which the Church would be more openly critical of the government. Pope John Paul elevated Archbishop of Havana Jaime Ortega to the position of Cardinal in 1994, which raised the profile of the Church in Cuba. Since then, Ortega has been widely commended for reinvigorating the Cuban Catholic Church—the role of Caritas Cuban, the Church's social assistance agency, has expanded throughout Cuba under Ortega. In late 2010, the Catholic Church opened up its first seminary in Cuba in more than 50 years. Cuban bishops have not refrained from speaking out on the need for change in Cuba, and Church publications—such as Palabra Nueva (New Word) and Espacio Laical (Space for Laity)—have become a way for the Church to broaden the debate in Cuba on social and economic problems facing the country.

Beginning in 2010, the Cuban Catholic Church under Cardinal Ortega took on a prominent role in engaging with the Cuban government over political prisoners—this led to the release of more than 125 prisoners, with the majority going to Spain. In anticipation of Pope Benedict's visit, as noted above, the Cuban government pardoned almost 3,000 prisoners in late December 2011, although only seven were reported to be political prisoners.

During his March 2012 trip to Cuba, Pope Benedict urged Cubans during his homily in Santiago "to build a renewed and open society, a better society, one more worthy of humanity, and which better reflects the goodness of God." In Havana, the Pope invoked 19 th century Cuban priest Father Felix Varela (a candidate for sainthood) as someone who offers a "path to a true social transformation ... to form virtuous men and women in order to forge a worthy and free nation." Emphasizing reconciliation, the Pope asserted that "Cuba and the world need change, but this will occur only if each one is in a position to seek the truth and chooses the way of love, sowing reconciliation and fraternity." At the end of his visit, in reference to U.S. economic sanctions, the Pope criticized "restrictive economic measures, imposed from outside the country," as an "unfair burden to the Cuban people."

Some Cuban dissidents, as well as some in the Cuban American community, criticized the Pope for not more forcefully confronting the Cuban government during his visit. The Pope did not meet with any dissidents or human rights activists during his visit or speak out about the increased government harassment surrounding his visit. As a result, some in the dissident community felt the Church lost credibility a result of the Pope's visit. Other dissidents, however, emphasize the record of the Cuban Catholic Church in supporting political prisoners and their families and for the support provided to the Ladies in White. They point to the Church's role in opening space for increased public dialogue, including criticism of the government, on economic and social issues, through Church publications.

Cardinal Jaime Ortega also has received criticism from some dissidents and Cuban Americans for not more openly confronting the government. In particular, he was criticized for remarks in April 2012 at Harvard University in which he defended the government's eviction of 13 dissidents occupying a Havana church who were demanding a papal audience. Ortega described the protestors as "former delinquents" with "no culture," words that brought strong criticism from dissidents in Cuba as well as Cuban Americans. Most surprising, however, was the criticism of the Cardinal in an editorial by the director of the Office of Cuban Broadcasting that oversees Radio and TV Marti, Carlos García-Pérez, who referred to the Cardinal in an editorial as a "lackey" of the Cuban government. (The strong language in the editorial by a U.S. government official raised considerable criticism itself, including from some Members of Congress, who called for the Administration to reject the comments against Ortega.) Defenders of Cardinal Ortega maintain that while he made some unfortunate statements at Harvard, he has a strong record of support for political prisoners and creating a space for dialogue and debate in Cuba.

Looking ahead, given that the Catholic Church is Cuba's largest independent civil society group, it is likely that it will continue to have a significant voice as Cuba confronts economic and political change in the years ahead.

Death of Human Rights Activist Oswaldo Payá

On July 22, 2012, prominent Cuban democracy and human rights activist Oswaldo Payá was killed in a car accident in the eastern province of Granma. Also killed in the crash was Cuban dissident Harold Cepero while two Europeans accompanying Payá and Cepero were injured—Angel Carromero Barrios, a leader of the Spanish Popular Party's youth organization, was driving, while Jens Aron Modig, president of the Swedish Christian Democrats youth wing, was a passenger along with Payá and Cepero.

Payá founded the Christian Liberation Movement 1988, an opposition civil society group that advocates peaceful democratic change and respect for human rights. He is probably best known for his work founding the Varela Project in 1996. Named for the 19 th century priest, Felix Varela, who advocated independence from Spain and the abolition of slavery, the Varela Project collected thousands of signatures supporting a national plebiscite for political reform in accordance with a provision of the Cuban Constitution. The referendum, if granted, would have call for respect for human rights, an amnesty for political prisoners, private enterprise, and changes to the country's electoral law that would result in free and fair elections.

In May 2002, organizers of the Varela Project submitted 11,020 signatures to the National Assembly calling for a national referendum. This was more than the 10,000 required under Article 88 of the Cuban Constitution. Former President Jimmy Carter noted the significance of the Varela Project in his May 14, 2002 address in Havana that was broadcast in Cuba. Carter noted that "when Cubans exercise this freedom to change laws peacefully by a direct vote, the world will see that Cubans, and not foreigners, will decide the future of this country." In response to the Varela Project, the Cuban government orchestrated its own referendum in late June 2002 that ultimately led to the National Assembly amending the Constitution to declare Cuba's socialist system irrevocable. The Varela Project persevered despite the 2003 human rights crackdown, which included the arrest of at least 21 Project activists. In October 2003, Oswaldo Payá delivered more than 14,000 signatures to Cuba's National Assembly, again requesting a referendum on democratic reforms.

Payá's death prompted expressions of sympathy from around the world, including from Pope Benedict XVI. The White House called Payá "a tireless champion for greater civic and human rights in Cuba" and asserted that "we continue to be inspired by Payá's vision and dedication to a better future for Cuba, and believe that his example and moral leadership will endure." The State Department maintained that Cuba had "lost one of its most important voices of political dissent and strongest proponents of fundamental freedoms for the people of his homeland."

Several Members of Congress issued statements regarding Payá's death. These included House Foreign Affairs Committee Chairman Representative Ileana Ros-Lehtinin, who said that Payá's "leadership and passion within the dissident community will never be forgotten and will be a model for those who follow his path to a free and democratic Cuba," and Senate Foreign Relations Committee Chairman John Kerry who stated that Payá's "legacy will be an enduring inspiration to Cubans seeking freedom and democratic reforms." S.Res. 525 , introduced by Senator Bill Nelson on July 24, 2012, and approved by the Senate on July 31, recognizes and honors Payá's life and exemplary leadership and calls on the Cuban government to allow an impartial, third-party investigation into the circumstances surrounding Payá's death. The resolution also condemns the Cuban government for the detention of almost 50 pro-democracy activists following Payá's memorial service.

On October 15, 2012, a Cuban court convicted Carromero Barrios of vehicular manslaughter and sentenced him to four years in prison. Carromero had denied that he was speeding, and maintained that signs for road work in the area were poorly marked. The Spanish political party youth leader did not appeal the conviction. Instead, Spain engaged in diplomatic efforts to repatriate Carromero to Spain. Such an agreement was reached in late December 2012, and Carromero returned to Spain to complete his prison term. On January 11, 2013, Carromero was released from prison under a program where he was allowed to return to work during the day and have weekend furlough, but otherwise would live at a detention center.

Economic Conditions and Reform Efforts

Cuba's economy is largely state-controlled, with the government owning most means of production and employing over 80% of the labor force. Key sectors of the economy that generate foreign exchange include the export of professional services (largely medical personnel to Venezuela); tourism, which has grown significantly since the mid-1990s, with 2.53 million tourists visiting Cuba in 2010; nickel and cobalt mining, with the Canadian mining company Sherritt International involved in a joint investment project; and a biotechnology and pharmaceutical sector that supplies the domestic healthcare system and has fostered a significant export industry. Remittances from relatives living abroad, especially from the United States, have also become a significant source of hard currency, with more than $1 billion sent to Cuba annually in remittances from families living abroad. The once-dominant sugar industry has declined significantly over the past 20 years; in 1990, Cuba produced 8.4 million tons of sugar while in 2012 it produced just 1.4 million tons.

After the collapse of the former Soviet Union, Russian financial assistance to Cuba practically ended, and as a result, Cuba experienced severe economic deterioration from 1989 to 1993, with estimates of economic decline ranging from 35% to 50%. Since then, however, there has been considerable improvement. From 1994 to 2000, as Cuba moved forward with some limited market-oriented economic reforms, economic growth averaged 3.7% annually.

Economic growth was especially strong in the 2004-2008 period (see Figure 2 ) registering an impressive 11.2% in 2005 (despite widespread damage caused by Hurricanes Dennis and Wilma), 12.1% in 2006, and 7.3% in 2007 before slowing to 4.1% in 2008. The economy benefitted from the growth of the tourism, nickel, and oil sectors, and support from Venezuela and China in terms of investment commitments and credit lines. Cuba also benefits from a preferential oil agreement with Venezuela, which provides Cuba with more than 90,000 barrels of oil a day.

Cuba's economic growth subsequently slowed to 1.4% in 2009. The global financial crisis had a negative effect on the Cuban economy because of lower world prices for nickel and a reduction in tourism from Canada and Europe. Cuba was also still recovering from the devastation wrought by Hurricanes Gustav and Ike in 2008, particularly in the agricultural sector. As a result of the economic downturn, the government announced austerity measures that included energy rationing and cutbacks in transportation and some food programs.

Economic growth, however, has improved somewhat since 2010, with 2.4% growth in 2010 and estimated growth rates of 2.8% in 2011 and 3.1% in 2012. Beyond that, some observers maintain that Cuba's economic reform efforts to expand the private sector and boost productivity could help increase average economic growth in the 2013-2017 period to just over 4%.

Over the years, Cuba has expressed pride for the nation's accomplishments in health and education. According to the U.N. Development Program's 2011 Human Development Report, life expectancy in Cuba in 2011 was 79.1 years and adult literacy was estimated at almost 100%. The World Bank estimates that Cuba's per capita income level of $5,550 (2010) is in the upper-middle-income range, higher than many other countries in the Americas.

Reform Efforts in the 1990s

When Cuba's economic slide began in 1989, the government showed little willingness to adopt any significant market-oriented economic reforms, but in 1993, faced with unprecedented economic decline, Cuba began to change policy direction and implemented a number of policy measures. Beginning in 1993, Cubans were allowed to own and use U.S. dollars and to shop at dollar-only shops previously limited to tourists and diplomats. Self-employment was authorized in more than 100 occupations in 1993, most in the service sector, and by 1996 more than 200,000 Cubans had become small entrepreneurs.

In 1993, the government divided large state farms into smaller, more autonomous, agricultural cooperatives (Basic Units of Cooperative Production, UBPCs). It opened agricultural markets in 1994, where farmers could sell part of their produce on the open market, and it also permitted artisan markets for the sale of handicrafts. In 1995, the government allowed private food catering, including home restaurants ( paladares) , in effect legalizing activities that were already taking place, and approved a new foreign investment law that allows fully owned investments by foreigners in all sectors of the economy with the exception of defense, health, and education. In 1996, it authorized the establishment of free trade zones with tariff reductions typical of such zones. In 1997, the government enacted legislation to reform the banking system and established a new Central Bank (BCC) to operate as an autonomous and independent entity.

After Cuba began to recover from its economic decline in the early 2000s, however, the government began to backtrack on some of its reform efforts. Regulations and new taxes made it extremely difficult for many of the nation's self-employed, with the result that the number of small entrepreneurs declined to about 150,000. Some home restaurants were forced to close because of the new regulations. In 2004, the Cuban government limited the use of dollars by state companies for any services or products not considered part of their core business.

Reform Efforts Under Raúl Castro

When Raúl Castro assumed provisional power in July 2006, there was some expectation that the government would be more open to economic policy changes, and a debate about potential economic reforms reemerged in Cuba. On July 26, 2007, in a speech commemorating Cuba's revolutionary anniversary, Raúl Castro acknowledged that Cuban salaries were insufficient to satisfy needs, and maintained that structural changes were necessary in order to increase efficiency and production. In the aftermath of the speech, Cuban public expectations for economic reform increased as thousands of officially sanctioned meetings were held in workplaces and local PCC branches around the country where Cubans were encouraged to air their views and discuss the future direction of the country. Complaints focused on low salaries and housing and transportation problems, and some participants advocated legalization of more private businesses.

After Raúl Castro officially assumed the presidency in 2008, his government announced a series of economic changes. In his first speech as president in February 2008, Raúl promised to make the government smaller and more efficient, to review the potential revaluation of the Cuban peso, and to eliminate excessive bans and regulations that curb productivity. In March, the government announced that it would lift restrictions on the sales of consumer products such as computers, microwaves, and DVD and video players as well as on the use of cell phones.

The government also announced that it would begin revamping the state's wage system by removing the limit that a state worker can earn. This was an effort to boost productivity and to deal with one of Cuba's major economic problems: how to raise wages to a level where basic human needs can be satisfied. The promised revamp of the wage system, however, has been delayed. The problem of low wages in Cuba is closely related to another major economic challenge in Cuba: how to unify the two official currencies circulating in the country—the Cuban convertible peso (CUC) and the Cuban peso, which trade at 24 to 1 CUC. Most people are paid in Cuban pesos, and the average monthly wage in Cuba is about 448 pesos (about 19 U.S. dollars), but for increasing amounts of consumer goods, convertible pesos are used. Cubans with access to foreign remittances or who work in jobs that give them access to convertible pesos are far better off than those Cubans who do not have such access.

In March 2011, President Castro tasked outgoing Minister of Economy and Planning Marino Murillo (replaced by Vice Minister Adel Yzquierdo Rodriguez) with the job of overseeing the implementation of the country's economic reforms. Some press reports have referred to Murillo as the country's new economic czar. Murillo has been in charge of coordinating the economic policy committee for the party congress, and as vice president of the Council of Ministers, he will continue to oversee the Ministry of Economy and Planning and other economic agencies. Murillo reportedly is a key member of Raúl Castro's inner circle.

As noted above, Cuba's Communist Party held its sixth congress from April 16-19, 2011, focusing on making changes to Cuba's economic model. Some 1,000 party delegates analyzed and debated the Draft Guidelines for Social and Economic Policy ( Proyecto de Lineamientos de la Política Económica y Social ) that were issued in November 2010. The guidelines are an expansive list of economic goals or aspirations, rather than a plan of action. As originally set forth in November, the guidelines numbered 291, but as approved at the party congress, the guidelines consist of 313 goals or objectives.

While the guidelines do not have any reference with regard to sequencing or how the objectives may be implemented, they include some potentially significant economic reforms that, if realized, could significantly alter Cuba's state-dominated economic model. These include the liquidation of state enterprises with sustained financial losses (#17), advancement toward the unification of Cuba's two currencies (#55), the gradual development of a tax system as an efficient means to distribute income (#60), creation of special development zones for foreign investment (#102), expansion of the non-state sector as an alternative means of employment (#168), and an orderly and gradual elimination of the ration system (#174). Some economic analysts maintain that the proposed changes set forth in the guidelines are too limited and too late to deal with the severity of Cuba's difficult economic situation.

Cuba's National Assembly approved the guidelines in a legislative session held in early August 2011. Among other government actions taken during the second half of 2011, the government permitted the sale of cars beginning in October and the sale of homes in November. A new program began in December 2011 whereby Cubans will be able to take out small peso loans from state banks, and will allow small businesses to open commercial bank accounts.

Agricultural Sector Reform

A significant reform effort under Raúl Castro has focused on the agricultural sector, a vital issue because Cuba reportedly imports some two-thirds of its food needs. In an effort to boost food production, the government began in 2008 to give farmers more discretion over how to use their land and what supplies to buy. The government also began a program of turning idle land into productive use through a land grant program, whereby private farmers and cooperatives can apply for land. Under the program, the government reportedly granted some 200,000 leases as of May 2012. In September 2012 the government approved measures to revitalize quasi-autonomous farming cooperatives (UBPCs, first established in 1993), which have performed poorly, by increasing their autonomy. In October 2012, the government announced new rules increasing the amount of land that private farmers may lease, from about 40 to about 67 hectares.

Despite the government's agricultural reform efforts, food production has been significantly below targets. The non-sugar agriculture sector contracted some 2.5% in 2010, and in 2011, while production increased for some agricultural crops, overall food production was less than it was some 5 years earlier in 2007. At the same time, the government reported that food prices rose some 20% in 2011 because of reduced imports and stagnating farm production. Coffee production reportedly has declined some 25% in 2012, despite efforts to renovate neglected plantations.

Problems in the agricultural sector focus on an entrenched system whereby famers depend on the state for fuel, pesticides, fertilizers, and other resources in exchange for a majority of what they produce. The government's inability to provide enough resources to farmers has hampered production, and its domination of the distribution process has hampered the delivery of products to market. In March 2011, the government began granting micro credits to new farmers in an effort to increase lagging food production, although the program reportedly is not extensive enough to have an effect on production.

On June 18, 2012, the Cuban government reimposed duties on imported food that had been lifted in 2008 after several hurricanes hurt domestic production. While over the long term, the reimposition of the tax could stimulate domestic production, in the short to medium term, the tax could affect the flow of food parcels brought by visiting Cuban Americans. It could also affect the hundreds of private restaurants and caterers that have sprung up over the past two years.

With regard to the sugar sector, in the fall of 2011, the government eliminated its Ministry of Sugar, and turned the industry into a state-run holding company incorporating 26 subsidiary companies. Cuba's once dominant sugar sector produced some 8 million tons of sugar annually, but only produced 1.2 million tons in 2011 and 1.4 million tons for the 2012 harvest. While the 2012 harvest was an improvement over the 2011 harvest, it was still below expectations. Analysts maintain that the sugar industry continues to be plagued by such problems of weak incentives, not enough decentralization, and a lack of capital and investment.

Growth of the Private Sector

In September 2010, the Cuban government announced a series of potentially significant reforms designed to reduce the public sector and increase private enterprise. The government announced that by the end of March 2011 it would identify half a million state workers who would be laid off, with most expected to find work in the expanding private sector. The layoffs reportedly would affect all public sector employees, including in the public service and state-owned enterprises. Over the next five years, a total of 1.2 million state employees would be cut (out of about 4.3 million state workers). The government also announced an expansion of self-employment, identifying 178 categories of work allowed with 83 of those allowing small businesses to hire non-family members. The self-employment categories cover a wide range of employment from "carpenters, gardeners, artisans, and animal trainers to small businesses such as home-based bed and breakfasts, rental property, restaurants, pizzerias, and snack shops." New tax provisions would generate income for the government and include a new sales tax and social security tax.

The Cuban government's implementation of layoffs in the state sector lagged considerably, so much so that President Castro acknowledged in February 2011 that more time was needed to meet the government's initial goal of laying off half a million state employees. Nevertheless, state payrolls were reportedly cut by 137,000 in 2011, and by 228,000 in 2012.

The number of self-employed rose to some 400,000 Cubans by December 2012. This compares to some 156,000 self-employed at the end of 2010. Some economic analysts, however, contend that the new categories of self-employment are too limited and still include considerable restrictions and taxes designed to impede the growth of small businesses. In May 2011, the government announced new plans to cut taxes and lift other restrictions in order to stimulate the private sector, while in December 2011, the government announced that more retail services (such as appliance and watch repair and locksmith and carpentry shops) would be open to the private in 2012.

In 2012, Cuba experimented in several provinces with private sector contracting for services (landscaping, construction, food, and other services) from state companies. In July 2012, Cuba's economic czar Marino Murillo said that Cuba would expand this pilot by converting some 222 small and medium state companies into non-state cooperatives involving such activities as food services and transportation.

To date, Cuba's efforts to create a burgeoning private sector and reduce its bloated public sector have been slower than expected and have not stimulated economic growth. The government has the goal of moving from a state-dominated to a mixed economy. According to a top government and party official, Esteban Lazo Hernández, Cuba wants to move about half of its economic activity from the state sector to the non-state sector over the next four to five years, with the private sector eventually accounting for about 40%-45% of gross domestic product.

In mid-2012, however, the government began taking actions that could hurt the country's emerging private sector and call into question the government's overall commitment to the development of private sector activity. As noted above, in mid-June 2012, the government reimposed taxes on imported food, which could affect private restaurants and caterers depending on imported food. On July 2, 2012, the Cuban government quietly published regulations announcing that, beginning in September 2012, significantly higher duties would be imposed on other imported goods carried or shipped to individuals in Cuba. The new duties amount to about $10 a kilogram or more for goods, significantly higher than the current rate of about $0.50 a kilogram. Many small entrepreneurs that depend on the imported goods could be threatened by the new duties.

Damage from Hurricane Sandy

Hurricane Sandy struck eastern Cuban early on October 25, 2012, causing significant damage in the provinces of Santiago, Holguin, and Guantanamo. Eleven Cubans were killed in the storm, with damage to over 226,000 homes, including at least 17,000 destroyed, and overall 3 million people were affected, according to the U.N. Office for the Coordination of Humanitarian Affairs (OCHA). In particular, the city of Santiago was significantly affected, with power outages, damages to homes, and disruption to water services. The U.N. team reported that almost 100,000 hectares (some 247,000 acres) of crops were affected, especially sugar cane. The storm also reportedly did severe damage to Cuba's coffee production.

In terms of international response, the International Federation of the Red Cross and Red Crescent Societies issued an emergency appeal in early November for 12.2 million Swiss francs (U.S. $12.97 million) to support the Cuban Red Cross to help some 35,000 vulnerable families. A number of countries—including Venezuela, Bolivia, Russia, Ecuador, Japan, Qatar, and the European Union—provided shipments of assistance or pledges of emergency funding to Cuba in the aftermath of the hurricane. Several U.S. humanitarian aid organizations, including many church affiliated groups such as Catholic Relief Services, are providing assistance to Cuba in the aftermath of the hurricane.

The United Nations has been playing a significant role in providing relief and recovery from Hurricane Sandy. In early November, the United Nations World Food Programme (WFP) announced that it would provide food rations to help almost half a million Cubans affected by the storm, with relief concentrated in the municipality of Santiago. By mid-November 2012, U.N. agencies had mobilized $1.5 million in emergency funds, while the U.N. Office for the Coordination of Humanitarian Affairs (OCHA) allocated $5.5 million to respond to the relief efforts. In addition, On November 16, 2012, the U. N. system launched a Plan of Action (developed in cooperation with the Cuban government) for $30.6 million to address the urgent needs of the population in the following sectors: shelter and recovery, water sanitation and hygiene, food security, health, and education. While the plan's various projects all have humanitarian components that will be implemented in the next six months, many of the projects will continue for up to 18 months to strengthen recovery.

For additional information on the Hurricane Sandy relief effort in Cuba, see the following ReliefWeb website administered by the U.N. OCHA: http://reliefweb.int/disaster/tc-2012-000180-hti .

Cuba's Foreign Relations

During the Cold War, Cuba had extensive relations with and support from the Soviet Union, with billions of dollars in annual subsidies to sustain the Cuban economy. This subsidy system helped fund an activist foreign policy and support for guerrilla movements and revolutionary governments abroad in Latin America and Africa. With an end to the Cold War, the dissolution of the Soviet Union, and the loss of Soviet financial support, Cuba was forced to abandon its revolutionary activities abroad.

As its economy reeled from the loss of Soviet support, Cuba was forced to open up its economy and economic relations with countries worldwide, and developed significant trade and investment linkages with Canada, Spain, other European countries, and China. In recent years, Venezuela—under populist President Hugo Chávez—has become a significant source of support for subsidized oil imports and investment for Cuba. In 2010, Cuba's leading trading partners in terms of Cuban exports were Venezuela, China, Canada, and the Netherlands (see Figure 3 ), while the leading sources of Cuba's imports were Venezuela, China, Spain, Brazil, and the United States (see Figure 4 ).

Relations with Russia, which had diminished significantly in the aftermath of the Cold War, were strengthened with the November 2008 visit of Russian President Dmitry Medvedev to Havana, the visit of several Russian warships to Cuba in December 2008, and Raúl Castro's visit to Russia in January 2009. Castro visited Russia again from July 10-13, 2012, with the goal reportedly to increase and diversify trade and investment. While trade relations between the two countries are not significant, two Russian energy companies have been involved in oil exploration in Cuba. Gazprom has been in a partnership with the Malaysian state oil company Petronas that conducted unsuccessful deepwater oil drilling off of Cuba's western coast in 2012, while the Russian oil company Zarubezhneft began drilling in Cuba's shallow coastal waters (not deepwater) east of Havana in November 2012 (also see " Cuba's Offshore Oil Development " below).

Relations with China have also increased in recent years. Chinese President Hu Jintao visited Cuba in November 2008, signing a dozen agreements, while Chinese Vice President Xi Jinping visited Cuba in June 2011. During the Xi Jinping visit, China signed a letter of intent to invest in upgrading a Cuban oil refinery in Cienfuegos. In July 2012, President Castro visited Cuba on a four-day visit beginning July 4; the two countries reportedly signed eight cooperation agreements and talks reportedly focused on trade and investment issues. (After China, Castro visited Vietnam on a four-day trip. The two countries have long had good relations, and some observers speculate that Cuba looks to Vietnam for potential lessons in implementing economic reforms.)

With El Salvador's restoration of relations with Cuba in June 2009, all Latin American nations now have official diplomatic relations with Cuba. Cuba has increasingly become more engaged in Latin America beyond the already close relations with Venezuela. Brazilian President Luiz Inácio Lula da Silva visited Cuba twice in 2008 while President Dilma Rouseff visited in January 2012. Cuba is a member of the Bolivarian Alliance for the Americas, (ALBA), a Venezuelan-led integration and cooperation scheme founded in 2004. Cuba became a full member of the Rio Group of Latin American and Caribbean nations in November 2008, and a member of the succeeding Community of Latin American and Caribbean States (CELCAC) that was officially established in December 2011 to boost regional cooperation and cooperation.

Cuba expressed interest in attending the sixth Summit of the Americas in April 2012 in Cartagena, Colombia, but ultimately was not invited to attend. The United States and Canada expressed opposition to Cuba's participation. Previous summits have been limited to the hemisphere's 34 democratically elected leaders, and the OAS (in which Cuba does not participate) has played a key role in summit implementation and follow-up activities. Several Latin American nations have vowed not to attend the next Summit of the Americas to be held in Panama in 2015 unless Cuba is allowed to participate.

Cuba was excluded from participation in the OAS in 1962 because of its identification with Marxism-Leninism, but in early June 2009, the OAS overturned the 1962 resolution in a move that could eventually lead to Cuba's reentry into the regional organization in accordance with the practices, purposes, and principles of the OAS. While the Cuban government welcomed the OAS vote to overturn the 1962 resolution, it asserted that it would not return to the OAS. (For further background, see a section on "Cuba and the OAS" in CRS Report R40193, Cuba: Issues for the 111 th Congress , by [author name scrubbed].)

Cuba is an active participant in international forums, including the United Nations and the controversial United Nations Human Rights Council. Since 1991, the U.N. General Assembly has approved a resolution each year criticizing the U.S. economic embargo and urging the United States to lift it. Cuba also has received support over the years from the United Nations Development Programme (UNDP) and the United Nations Educational, Scientific, and Cultural Organization (UNESCO), both of which have offices in Havana. Cuba was a founding member of the World Trade Organization, but it is not a member of the International Monetary Fund, the World Bank, or the Inter-American Development Bank. Cuba hosted the 14 th summit of the Non-aligned Movement (NAM) in 2006, and held the Secretary Generalship of the NAM until its July 2009 summit in Egypt.

U.S. Policy Toward Cuba

Background on U.S.-Cuban Relations96

In the early 1960s, U.S.-Cuban relations deteriorated sharply when Fidel Castro began to build a repressive communist dictatorship and moved his country toward close relations with the Soviet Union. The often tense and hostile nature of the U.S.-Cuban relationship is illustrated by such events and actions as U.S. covert operations to overthrow the Castro government culminating in the ill-fated April 1961 Bay of Pigs invasion; the October 1962 missile crisis in which the United States confronted the Soviet Union over its attempt to place offensive nuclear missiles in Cuba; Cuban support for guerrilla insurgencies and military support for revolutionary governments in Africa and the Western Hemisphere; the 1980 exodus of around 125,000 Cubans to the United States in the so-called Mariel boatlift; the 1994 exodus of more than 30,000 Cubans who were interdicted and housed at U.S. facilities in Guantanamo and Panama; and the February 1996 shootdown by Cuban fighter jets of two U.S. civilian planes operated by the Cuban American group Brothers to the Rescue, which resulted in the death of four U.S. crew members.

Since the early 1960s, U.S. policy toward Cuba has consisted largely of isolating the island nation through comprehensive economic sanctions, including an embargo on trade and financial transactions. The Cuban Assets Control Regulations (CACR), first issued by the Treasury Department in July 1963, lay out a comprehensive set of economic sanctions against Cuba, including a prohibition on most financial transactions with Cuba and a freeze of Cuban government assets in the United States. The CACR have been amended many times over the years to reflect changes in policy, and remain in force today.

These sanctions were made stronger with the Cuban Democracy Act (CDA) of 1992 ( P.L. 102-484 , Title XVII) and with the Cuban Liberty and Democratic Solidarity Act of 1996 ( P.L. 104-114 ), the latter often referred to as the Helms/Burton legislation. The CDA prohibits U.S. subsidiaries from engaging in trade with Cuba and prohibits entry into the United States for any sea-borne vessel to load or unload freight if it has been involved in trade with Cuba within the previous 180 days. The Cuban Liberty and Democratic Solidarity Act, enacted in the aftermath of Cuba's shooting down of two U.S. civilian planes in February 1996, combines a variety of measures to increase pressure on Cuba and provides for a plan to assist Cuba once it begins the transition to democracy. Most significantly, the law codified the Cuban embargo, including all restrictions under the CACR. This provision is especially noteworthy because of its long-lasting effect on U.S. policy options toward Cuba. The executive branch is circumscribed in lifting or substantially loosening the economic embargo without congressional concurrence until certain democratic conditions are met, although the CACR includes licensing authority that provides the executive branch with some administrative flexibility (e.g., travel-related restrictions in the CACR have been eased and tightened on numerous occasions). Another significant sanction in the law is a provision in Title III that holds any person or government that traffics in U.S. property confiscated by the Cuban government liable for monetary damages in U.S. federal court. Acting under provisions of the law, however, Presidents Clinton, Bush, and now Obama have suspended the implementation of Title III at six-month intervals.

In addition to sanctions, another component of U.S. policy, a so-called second track, consists of support measures for the Cuban people. This includes U.S. private humanitarian donations, medical exports to Cuba under the terms of the Cuban Democracy Act of 1992, U.S. government support for democracy-building efforts, and U.S.-sponsored radio and television broadcasting to Cuba. In addition, the 106 th Congress approved the Trade Sanctions Reform and Export Enhancement Act of 2000 ( P.L. 106-387 , Title IX) that allows for agricultural exports to Cuba, albeit with restrictions on financing such exports. This led to the United States becoming one of Cuba's largest suppliers of agricultural products.

Clinton Administration's Easing of Sanctions

The Clinton Administration made several changes to U.S. policy in the aftermath of Pope John Paul II's 1998 visit to Cuba, which were intended to bolster U.S. support for the Cuban people. These included the resumption of direct flights to Cuba (which had been curtailed after the February 1996 shootdown of two U.S. civilian planes), the resumption of cash remittances by U.S. nationals and residents for the support of close relatives in Cuba (which had been curtailed in August 1994 in response to the migration crisis with Cuba), and the streamlining of procedures for the commercial sale of medicines and medical supplies and equipment to Cuba.

In January 1999, President Clinton announced several additional measures to support the Cuban people. These included a broadening of cash remittances to Cuba, so that all U.S. residents (not just those with close relatives in Cuba) could send remittances to Cuba; an expansion of direct passenger charter flights to Cuba from additional U.S. cities other than Miami (direct flights later in the year began from Los Angeles and New York); and an expansion of people-to-people contact by loosening restrictions on travel to Cuba for certain categories of travelers, such as professional researchers and those involved in a wide range of educational, religious, and sports activities.

Bush Administration's Tightening of Sanctions

The George W. Bush Administration essentially continued the two-track U.S. policy of isolating Cuba through economic sanctions while supporting the Cuban people through a variety of measures. However, within this policy framework, the Administration emphasized stronger enforcement of economic sanctions and further tightened restrictions on travel, remittances, and humanitarian gift parcels to Cuba. The Administration established an interagency Commission for Assistance to a Free Cuba in late 2003 tasked with identifying means to help the Cuban people bring about an expeditious end of the dictatorship" and to consider "the requirements for United States assistance to a post-dictatorship Cuba." In issuing its first report in May 2004, the Commission made recommendations to tighten restrictions on family visits and other categories of travel and on private humanitarian assistance in the form of remittances and gift parcels. The Administration subsequently issued these tightened restrictions in June 2004, while in February 2005, it tightened restrictions on payment terms for U.S. agricultural exports to Cuba. The Commission issued a second and final report in July 2006 that made recommendations to hasten political change in Cuba toward a democratic transition and led to a substantial increase in U.S. funding to support democracy and human rights efforts in Cuba.

The Bush Administration continued to emphasize a continuation of the sanctions-based approach toward Cuba pending political change in Cuba. When Raúl Castro officially became head of state in February 2008, then-Secretary of State Condoleezza Rice issued a statement urging "the Cuban government to begin a process of peaceful, democratic change by releasing all political prisoners, respecting human rights, and creating a clear pathway towards free and fair elections." In remarks on Cuba policy in March 2008, President Bush maintained that in order to improve U.S.-Cuban relations, "what needs to change is not the United States; what needs to change is Cuba." The President asserted that Cuba "must release all political prisoners ... have respect for human rights in word and deed, and pave the way for free and fair elections."

Debate on the Direction of U.S. Policy

Over the years, although U.S. policymakers have agreed on the overall objectives of U.S. policy toward Cuba—to help bring democracy and respect for human rights to the island—there have been several schools of thought about how to achieve those objectives. Some have advocated a policy of keeping maximum pressure on the Cuban government until reforms are enacted, while continuing efforts to support the Cuban people. Others argue for an approach, sometimes referred to as constructive engagement, that would lift some U.S. sanctions that they believe are hurting the Cuban people, and move toward engaging Cuba in dialogue. Still others call for a swift normalization of U.S.-Cuban relations by lifting the U.S. embargo. Legislative initiatives introduced over the past decade have reflected these three policy approaches.

Over the past decade, there have been efforts in Congress to ease U.S. sanctions, with, one or both houses at times approving amendments to appropriations measures that would have eased U.S. sanctions on Cuba. Until 2009, these provisions were stripped out of final enacted measures, in part because of presidential veto threats. In March 2009, as noted above, Congress took action to ease some restrictions on travel to Cuba, marking the first time that Congress has eased Cuba sanctions since the approval of the Trade Sanctions Reform and Export Enhancement Act of 2000.

In light of Fidel Castro's departure as head of government, many observers called for a reexamination of U.S. policy toward Cuba. In this new context, two broad policy approaches have been advanced to contend with political change in Cuba: a status-quo approach that maintains the U.S. dual-track policy of isolating the Cuban government while providing support to the Cuban people; and an approach aimed at influencing the attitudes of the Cuban government and Cuban society through increased contact and engagement.

In general, those who advocate easing U.S. sanctions on Cuba make several policy arguments. They assert that if the United States moderated its policy toward Cuba—through increased travel, trade, and diplomatic dialogue—then the seeds of reform would be planted, which would stimulate and strengthen forces for peaceful change on the island. They stress the importance to the United States of avoiding violent change in Cuba, with the prospect of a mass exodus to the United States and the potential of involving the United States in a civil war scenario. They argue that since the demise of Cuba's communist government does not appear imminent, even without Fidel Castro at the helm, the United States should espouse a more pragmatic approach in trying to bring about change in Cuba. Supporters of changing policy also point to broad international support for lifting the U.S. embargo, to the missed opportunities for U.S. businesses because of the unilateral nature of the embargo, and to the increased suffering of the Cuban people because of the embargo. Proponents of change also argue that the United States should be consistent in its policies with the world's few remaining communist governments, including China and Vietnam, and also maintain that moderating policy will help advance human rights.

On the other side, opponents of changing U.S. policy maintain that the current two-track policy of isolating Cuba, but reaching out to the Cuban people through measures of support, is the best means for realizing political change in Cuba. They point out that the Cuban Liberty and Democratic Solidarity Act of 1996 sets forth the steps that Cuba needs to take in order for the United States to normalize relations. They argue that softening U.S. policy at this time without concrete Cuban reforms would boost the Castro government, politically and economically, and facilitate the survival of the communist regime. Opponents of softening U.S. policy argue that the United States should stay the course in its commitment to democracy and human rights in Cuba, and that sustained sanctions can work. Opponents of loosening U.S. sanctions further argue that Cuba's failed economic policies, not the U.S. embargo, are the causes of Cuba's difficult living conditions.

Obama Administration Policy

Overview

Since taking office, the Obama Administration has lifted restrictions on travel and remittance to Cuba for Cuban Americans, moved to reengage Cuba on migration and other bilateral issues, and in January 2011 announced further steps to ease restrictions on purposeful travel and non-family remittances. At the same time, the Administration has continued other embargo restrictions on trade and financial transactions. The Administration also has continued to express significant concern about the human rights situation in Cuba, although it welcomed the Cuban government's release of political prisoners. Since December 2009, a key impediment to improved relations has been Cuba's detention of U.S. Agency for International Development (USAID) subcontractor Alan Gross, who was ultimately convicted on March 12, 2011, and sentenced to 15 years in prison. While the United States and Cuba are cooperating on such issues as antidrug efforts and, through multilateral channels, on disaster preparedness and cooperation in the event of an oil spill, improvement of relations in other areas will likely be stymied until Alan Gross is released from prison.

Policy Developments in 2009

During the 2008 electoral campaign, President Obama had pledged to lift restrictions on family travel to Cuba as well as restrictions on Cuban Americans sending remittances to Cuba. At the same time, he also pledged to maintain the embargo as a source of leverage to bring about change in Cuba. However, Obama also asserted that if the Cuban government takes significant steps toward democracy, beginning with the freeing of all political prisoners, then the United States would take steps to normalize relations and ease the embargo. He also maintained that, after careful preparation, his Administration would pursue direct diplomacy with Cuba without preconditions, but only when there is an opportunity to advance U.S. interests and advance the cause of freedom for the Cuban people.

In April 2009, just before the fifth Summit of the Americas in Trinidad and Tobago, the Obama Administration announced several significant measures to ease U.S. sanctions on Cuba. The President announced that all restrictions on family travel and on remittances to family members in Cuba would be lifted. This superseded the action taken by Congress in March that had essentially reverted family travel restrictions to as they were in 2004 before they were tightened. The Administration also announced that measures would be taken to increase telecommunications links with Cuba and to expand the scope of eligible humanitarian donations through gift parcels. At the Summit of the Americas, President Obama maintained that "the United States seeks a new beginning with Cuba." While recognizing that it will take time to "overcome decades of mistrust," the President said "there are critical steps we can take toward a new day." He stated that he was prepared to have his Administration "engage with the Cuban government on a wide range of issues—from drugs, migration, and economic issues, to human rights, free speech, and democratic reform." The President maintained that he was "not interested in talking just for the sake of talking," but said he believed that U.S.-Cuban relations could move in a new direction.

In the aftermath of the Summit, there appeared to be some momentum toward improved relations. In June 2009, the State Department turned off the electronic billboard at the U.S. Interests Section in Havana that had been had been set up in 2006 and had featured news and pro-democracy messages that irked the Cuban government. Earlier in the year, the Cuban government had taken down anti-U.S. billboards around the U.S. mission. In July 2009, Cuba and the United States also restarted the semi-annual migration talks that had been suspended by the United States in 2004. To date, four rounds of talks have been held and have included issues beyond migration issues (for more details, see " Migration Talks " below). In September 2009, the United States and Cuba held talks in Havana on resuming direct mail service between the two countries that included discussion on issues related to the transportation, quality, and security of mail service.

Relations took a turn for the worse in late 2009, however, when Alan Gross, an American subcontractor working on USAID-funded Cuba democracy projects in Cuba, was arrested in Havana in early December.

Policy Developments in 2010

As Cuba's human rights situation deteriorated during the first half of 2010, the Obama Administration expressed significant concern. In the semi-annual migration talks in February, U.S. officials urged Cuban officials to provide imprisoned hunger striker Orlando Zapata Tamayo with all necessary medical care. After Zapata's death, U.S. officials called attention to the more than 200 political prisoners held by Cuba and called for their immediate release. As noted above, President Obama issued a statement on March 24, 2010, expressing deep concern about the human rights situation in Cuba, including the death of Zapata, and the repression of the Ladies in White. He asserted that these events underscore that "Cuban authorities continue to respond to the aspirations of the Cuban people with a clenched fist." The President called for the end of repression, the immediate and unconditional release of all political prisoners, and respect for the basic rights of the Cuban people. The President noted that he has taken steps during the year to reach out to the Cuban people and to signal his desire to seek a new era in relations with the government of Cuba. He asserted that he remains "committed to supporting the simple desire of the Cuban people to freely determine their future and to enjoy the rights and freedoms that define the Americas, and that should be universal to all human beings."

In response to the Cuban Catholic Church's July 7, 2010, announcement that the remaining 52 political prisoners of the "group of 75" originally arrested in March 2003 would be released, Secretary of State Clinton said that it was "a positive sign" and that the United States welcomed it. A subsequent State Department statement maintained that "this is a positive development that we hope will represent a step towards increased respect for human rights and fundamental freedoms in Cuba."

During the year, Members of Congress raised significant concern about Mr. Gross's continued detention. State Department officials continued to raise the issue with Cuban government, and on the one-year anniversary of his December 2009 incarceration, the State Department maintained that his continued detention was "a major impediment to advancing the dialogue between our two countries."

Policy Developments in 2011

On January 14, 2011, the White House announced new measures to ease travel restrictions further and allow all Americans to send remittances to Cuba. According to the White House statement, the measures will (1) increase purposeful travel to Cuba related to religious, educational, and journalistic activities; (2) allow any U.S. person to send remittances to non-family members in Cuba and make it easier for religious institutions to send remittances for religious activities; and (3) allow all U.S. international airports to provide services to licensed charter flights to and from Cuba. In most respects, these new measures appear to be similar to policies that were undertaken by the Clinton Administration in 1999, but were subsequently curtailed by the Bush Administration in 2003 and 2004.

In March 2011, after Alan Gross was convicted and sentenced to 15 years in prison, Secretary of State Clinton called for Gross to be released, at the very least, on humanitarian terms. Upon Cuba's release of the last of "group of 75" political prisoners in late March, the State Department maintained that the release was a "step in the direction," but also urged "the Cuban government to release all remaining political prisoners and allow them to choose whether to remain in Cuba."

According to Secretary of State Clinton in May 2011, the Obama Administration believes "that the best way to advance fundamental rights in Cuba … is to support exchanges and constructive relationships," and "that's why we have eased our restrictions on travel and remittances to Cuba." The Secretary maintained that more could be done if there were evidence that there was an opportunity to do so from the Cuban side "because we want to foster these deeper connections and we want to work for the time when Cuba will enjoy its own transition to democracy."

In response to questions on Cuba at a September 28, 2011, public forum, President Obama maintained that his Administration has not yet seen "the kind of genuine spirit of transformation inside of Cuba that would justify us eliminating the embargo." The President said his Administration has tried "to send a signal that we are open to a new relationship with Cuba if the Cuban government starts taking the proper steps to open up its own country and … provide the space and the respect for human rights that would allow the Cuban people to determine their own destiny." He maintained that "if we see positive movement we will respond in a positive way."

The Obama Administration continued to express concern about the human rights situation in Cuba as well as the imprisonment of Alan Gross. In December 2011, as reports of increased Cuban government repression against human rights and democracy activists, the State Department issued a statement calling "for an immediate end to the harassment and violence against Cuban citizens who are peaceful critics of the government." On the two-year anniversary of the incarceration of Alan Gross in early December 2011, the State Department again called for his release, while just before Christmas the State Department expressed deep disappointment that the Cuban government did not include Gross among the 2,900 prisoners released on humanitarian grounds.

Policy Developments in 2012

President Obama issued a statement in the aftermath of the January 19, 2012, death of Cuban hunger striker Wilman Villar Mendoza, maintaining that "Villar's senseless death highlights the ongoing repression of the Cuban people and the plight faced by brave individuals standing up for the universal rights of all Cubans."

In its March 2012 International Narcotics Control Strategy Report, the State Department generally lauded Cuba's antidrug efforts. It stated that the United States was still reviewing a draft bilateral counternarcotics accord presented by Cuba, and that such an accord, if structured appropriately, "could advance the counternarcotics efforts undertaken by both countries." (See " Anti-Drug Cooperation " below.)

The State Department released its 2011 human rights report on May 24, 2012, in which it reported on a significant increase in the number of short-term detentions in Cuba, along with other numerous human rights abuses. (See " Human Rights " below.)

In June 7, 2012, congressional testimony, Assistant Secretary of State for Western Hemisphere Affairs Roberta Jacobson set forth a clear-cut description of U.S. policy toward Cuba in which she expressed strong U.S. support for democracy and human rights activists in Cuba and defended the Obama's Administration policy on travel and remittances. The Assistant Secretary asserted that "the Obama Administration's priority is to empower Cubans to freely determine their own future." She maintained that "the most effective tool we have for doing that is building connections between the Cuban and American people, in order to give Cubans the support and tools they need to move forward independent of their government." The Assistant Secretary maintained that "the Administration's travel, remittance and people-to-people policies are helping Cubans by providing alternative sources of information, taking advantage of emerging opportunities for self-employment and private property, and strengthening civil society." In support of U.S. funding for democracy and human rights in Cuba, she contended that U.S. policy "recognizes the importance of engaging with the pro-democracy and human rights activists who have been working for years to expand the political and civil rights of all Cubans."

With regard to the human rights situation in Cuba, Jacobson lauded the release of dozens of political prisoners, but maintained that their release "did not effect a fundamental change in the Cuban government's poor record on human rights." She asserted that "the Cuban government has continued to punish political dissent, increasingly using repeated, short-term, arbitrary detentions to prevent citizens from assembling peacefully and freely expressing their opinions." Jacobson also highlighted the continued imprisonment of Alan Gross, and vowed that the Administration would continue to seek his immediate release.

On June 12, 2012, the Treasury Department's Office of Foreign Assets Control and the U.S. Department of Justice announced a $619 million settlement with a Dutch bank, ING, for violating U.S. sanctions against Cuba, Burma, Sudan, Libya, and Iran. The Cuba sanction violations were the most extensive and stemmed from ING's processing of over 20,000 financial transactions involving Cuba valued at more than $1.6 billion between October 2002 and July 2007. The fine was the largest ever imposed for these types of sanction violations.

On Human Rights Day, December 10, 2012, in response to Cuba's crackdown on the Ladies in White human rights group the day, the State Department issued a press statement expressing deep concern about Cuba's "repeated use of arbitrary detention and violence to silence critics, disrupt peaceful assembly, and intimidate independent society." The State Department called for Cuba to end such practices and asserted that "we look forward to the day when all Cubans can freely express their ideas, assemble freely, and express their opinions peacefully."

Issues in U.S.-Cuban Relations

U.S. Restrictions on Travel and Remittances

Restrictions on travel to Cuba have been a key and often contentious component of U.S. efforts to isolate the communist government of Fidel Castro for much of the past 40 years. Over time there have been numerous changes to the restrictions and for five years, from 1977 until 1982, there were no restrictions on travel. Restrictions on travel and remittances to Cuba are part of the CACR, the overall embargo regulations administered by the Treasury Department's Office of Foreign Assets Control (OFAC).

Under the Bush Administration, enforcement of U.S. restrictions on Cuba travel increased, and restrictions on travel and on private remittances to Cuba were tightened. In March 2003, the Administration eliminated travel for people-to-people educational exchanges unrelated to academic course work. In June 2004, the Administration significantly restricted travel, especially family travel, and the provision of private humanitarian assistance to Cuba in the form of remittances and gift parcels.

Under the Obama Administration, Congress took action in March 2009 easing restrictions on family travel and on travel related to U.S. agricultural and medical sales to Cuba (FY2009 omnibus appropriations measure, P.L. 111-8 , Sections 620 and 621 of Division D). As implemented by the Treasury Department, family travel was allowed once every 12 months to visit a close relative for an unlimited length of stay. The definition of "close relative" was expanded to mean any individual related to the traveler by blood, marriage, or adoption who is no more than three generations removed from that person. Travel related to the marketing and sale of agricultural and medical goods to Cuba was allowed pursuant to a general license. (Note: For a general license, there is no need to obtain specific permission from OFAC, while a specific license requires application and review by OFAC on a case by case basis.)

In April 2009, the Obama Administration went even further when it announced several significant measures to ease U.S. sanctions on Cuba. Fulfilling a campaign pledge, President Obama announced that all restrictions on family travel and on remittances to family members in Cuba would be lifted. This significantly superseded the action taken by Congress in March 2009 that had essentially reverted family travel restrictions to as they had been before they were tightened in 2004. Under the new policy announced by the Administration, limitations on the frequency and duration of family visits and the 44-pound limitation on accompanied baggage were removed. Family travelers are now able spend the same as allowed for other travelers (provided it does not exceed the Department of State's per diem rate allowance for Havana, currently $166 per day). With regard to family remittances, the previous limitation of no more than $300 per quarter was removed with no restriction on the amount or frequency of the remittances. Authorized travelers are once again authorized to carry up to $3,000 in remittances. Regulations for the above policy changes were issued by the Treasury and Commerce Departments on September 3, 2009.

In January 2011, the Obama Administration made a series of changes further easing restrictions on travel and remittances to Cuba. On January 11, the White House announced that President Obama had directed the Secretaries of State, Treasury, and Homeland Security to make changes to regulations and policies "in order to continue efforts to reach out to the Cuban people in support of their desire to freely determine their country's future." The policy changes were subsequently enacted through modifications to existing regulations of the Departments of Treasury and Homeland Security published in the Federal Register on January 28, 2011.

The January 2011 measures:

1. increased purposeful travel to Cuba related to religious, educational, and journalistic activities (general licenses are now authorized for certain types of educational and religious travel; people-to-people travel exchanges are authorized via a specific license); 2. allowed any U.S. person to send remittances to non-family members in Cuba and make it easier for religious institutions to send remittances for religious activities (general licenses are now authorized for both); and 3. allowed all U.S. international airports to become eligible to provide services to licensed charter flights to and from Cuba.

In most respects, these new measures were similar to policies that were undertaken by the Clinton Administration in 1999, but were subsequently curtailed by the Bush Administration in 2003 and 2004. An exception is the expansion of airports to service licensed flights to and from Cuba. While the new travel regulations immediately went into effect for those categories of travel falling under a general license category, OFAC delayed processing applications for new travel categories requiring a specific license (such as people-to-people exchanges) until it updated and issued guidelines. These ultimately were issued in April 2011: Comprehensive Guidelines for License Applications to Engage in Travel-related Transactions Involving Cuba .

To date, the Department of Homeland Security, U.S. Customs and Border Protection (CBP), has announced its approval of 12 additional airports eligible to provide passenger air service between the United States and Cuba, bringing the total number of airports approved to 15. The newly authorized airports are Atlanta, Baltimore-Washington (BWI), Chicago O'Hare, Dallas-Fort Worth, Fort Lauderdale-Hollywood, Houston, New Orleans, Oakland (CA), Pittsburgh, Southwest Florida International Airport (Fort Myers), San Juan (Puerto Rico), and Tampa.

Major arguments made for lifting the Cuba travel ban altogether are that it abridges the rights of ordinary Americans to travel; it hinders efforts to influence conditions in Cuba and may be aiding Castro by helping restrict the flow of information; and Americans can travel to other countries with communist or authoritarian governments. Major arguments in opposition to lifting the Cuba travel ban are that more American travel would support Castro's rule by providing his government with potentially millions of dollars in hard currency; that there are legal provisions allowing travel to Cuba for humanitarian purposes that are used by thousands of Americans each year; and that the President should be free to restrict travel for foreign policy reasons.

People-to-People Travel

By July 2011, OFAC confirmed that it had approved the first licenses for U.S. people-to-people organizations to bring U.S. visitors to Cuba, and the first such trips began in August 2011. On July 25, 2011, however, prior to the trips beginning, OFAC issued an advisory maintaining that misstatements in the media had suggested that U.S. policy allows for virtually unrestricted group travel to Cuba, and reaffirmed that travel conducted by people-to-people travel groups licensed for travel to Cuba must "certify that all participants will have a full-time schedule of educational exchange activities that will result in meaningful interaction between the travelers and individuals in Cuba." The advisory stated that authorized activities by people-to-people groups are not "tourist activities," and pointed out that the Trade Sanctions Reform and Export Enhancement Act of 2000 prohibits OFAC from licensing transactions for tourist activities.

In March 2012, OFAC published an announcement regarding advertising for people-to-people travel, noting that all advertisements must state the name of the licensed organization conducting the travel and that the organization must use the name under which their OFAC travel was licensed unless the group requests and receives a license amendment from OFAC to use an alternative name. The announcement also stated that advertising that appeared to suggest that the people-to-people trips were focused on activities that travelers may undertake off hours (after their daily full-time schedule of people-to-people activities) may give an incorrect impression and prompt OFAC to contact the licensed organization and conduct an investigation. It maintained that people-to-people organizations that failed to meet requirements of their licenses may have their licenses revoked or be issued a civil penalty up to $65,000 per violation.

In May 2012, the Treasury Department tightened its restrictions on people-to-people travel by making changes to its license guidelines. The revised guidelines reflect similar language to the March 2012 announcement described above regarding advertising. The revised guidelines also require an organization applying for a people-to-people license to describe how the travel "would enhance contact with the Cuban people, and/or support civil society in Cuba, and/or promote the Cuban people's independence from Cuban authorities." Just as in 2011, the guidelines require applicants to certify that the predominant portion of activities engaged in will not be with prohibited Cuban government or Cuban Communist Party officials (as defined in 31 CFR 515.337 and 31 CFR 515.338), but the changes in May 2012 require that the sample itinerary for the proposed travel needs to specify how meetings with such officials advance purposeful travel by enhancing contact with the Cuban people, supporting civil society, or promoting independence from Cuban authorities.

In September 2012, various press reports cited a slowdown in the Treasury Department's approval or reapproval of licenses for people-to-people travel since the agency had issued new guidelines in May. Companies conducting such programs complained that the delay in the licenses was forcing them to cancel trips and even to lay off staff. By early October 2012, however, companies conducting the people-to-people travel maintained that they were once again receiving license approvals.

Legislative Proposals Regarding Travel and Remittances

In the 112 th Congress, interest on the issue of Cuba travel and remittances continued. Legislation was introduced to roll back some of the easing of restrictions and some bills were introduced to further ease travel restrictions or lift them altogether, but ultimately none of the measures were enacted.

FAA Reauthorization. During consideration of the FAA reauthorization bill, S. 223 , in February 2011, an amendment was submitted, but never considered, S.Amdt. 61 (Rubio), that would have prohibited an expansion of flights to locations in countries that are listed on the Department of State list of states that sponsor international terrorism (which includes Cuba).

FY2012 Financial Services and General Government Appropriations. The House Appropriations Committee version of the FY2012 Financial Services and General Government Appropriations bill, H.R. 2434 (§901), introduced July 7, 2011, would have rolled back President Obama's easing of restrictions on remittances and family travel. (The Senate Appropriations Committee version of the measure, S. 1573 , did not contain a similar provision.) Specifically, the provision in H.R. 2434 would have repealed any amendments to certain sections of the Cuban Assets Control Regulations (CACR) relating to family travel ( 31 CFR 515.560(a)(1) and 31 CFR 515.561 ), carrying remittances to Cuba ( 31 CFR 515.560(c)(4)(i) ), and sending remittances to Cuba ( 31 CFR 515.570 ). According to the provision, such regulations would be restored and carried out as in effect on January 19, 2009, "notwithstanding any guidelines, opinions, letters, Presidential directives, or agency practices relating to such regulations issued or carried out after such date." The intent of the provision appears to have been to ensure that these specific regulations remained as they were in effect on January 19, 2009.

The provision would have rolled back President Obama's easing of restrictions on family travel and family remittances in 2009 and his easing of restrictions on remittances for non-family members and religious institutions in 2011. Pursuant to the provision: family travel would have been limited to once every three years for a period of up to 14 days to visit immediate family members only, and would have required a specific license from OFAC; licensed travelers would have been allowed to carry just $300 in remittances compared to the $3,000 currently allowed; family remittances would have been limited to $300 per quarter compared to no limits today; non-family remittances restored by the Obama Administration in 2011, up to $500 per quarter, would not have been allowed; and the general license for remittances to religious organizations would have been eliminated, although such remittances would have been permitted via specific license on a case-by-case basis.

The White House's Statement of Administration Policy on H.R. 2434 , issued July 13, 2011, stated that the Administration opposed Section 901 because it would reverse the President's policy on family travel and remittances, and that the President's senior advisors would recommend a veto if the bill contained the provision. According to the statement, Section 901 "would undo the President's efforts to increase contact between divided Cuban families, undermine the enhancement of the Cuban people's economic independence and support for private sector activity in Cuba that come from increased remittances from family members, and therefore isolate the Cuban people and make them more dependent on Cuban authorities."

In December 2011, a legislative battle ensured over the potential inclusion of a Cuba provision from Section 901 of H.R. 2434 in the Consolidated Appropriations Act, FY2012, H.R. 2055 , a "megabus" bill that combined nine fill-year appropriations measures, including the FY2012 Financial Services and General Government bill. Ultimately, congressional leaders agreed not to include the Cuba provision in the "megabus bill," and also decline to include a second provision in the bill that would have continued to clarify, for the third year in a row, the definition of "payment of cash in advance" for U.S. agricultural and medical exports to Cuba so that the payment would be due upon delivery in Cuba as opposed to being due before the goods left U.S. ports. The While House reportedly had exerted pressure not to include the Cuba provision that would have rolled back the Administration's easing of restrictions on travel and remittances. Dropping the "payment of cash in advance" provision appears to have been a political tradeoff made to compensate for the travel rollback provision being dropped.

FY2012 Foreign Relations Authorization Act. In additional action, on July 21, 2011, the House Committee on Foreign Affairs marked up H.R. 2583 , the FY2012 Foreign Relations Authorization Act, with a provision (§1126 of the reported bill) that would have required the President to fully enforce all U.S. regulations on travel to Cuba as in effect on January 19, 2009, and imposed the corresponding penalties against individuals determined to be in violation of such regulations. The provision was added by a Rivera amendment, approved 36-6, that had the intent of reinstating tighter travel restrictions as they existed under the Bush Administration in January 2009.

Amendments to the Cuban Adjustment Act. Two additional measures introduced in August 2011 would have amended the Cuban Adjustment Act of 1966 (CAA, P.L. 89-732) in order to curb travel to Cuba by Cubans who have recently immigrated to the United States. Introduced on August 1, 2011, H.R. 2771 (Rivera), would have amended the CAA to increase to five years the period during which a Cuban national must be physically present in the United States in order to qualify for adjustment of status to that of a permanent resident. The legislation also would have provided that an alien shall be ineligible for adjustment to permanent resident status if the alien returns to Cuba after admission or parole into the United States before becoming a U.S. citizen. H.R. 2831 (Rivera), introduced August 30, 2011, also would have provided that an alien from Cuba would be ineligible for adjustment to permanent resident status under the CAA if he or she returned to Cuba before becoming a U.S. citizen; the House Committee on the Judiciary, Subcommittee on Immigration on Policy Enforcement, held a hearing on the bill on May 31, 2012 (available at http://judiciary.house.gov/hearings/Hearings%202012/hear_05312012_3.html ).

Initiatives To Ease Restrictions on Travel and Remittances. In contrast to measures aimed at rolling back the Obama Administration's policy, several initiatives were introduced in the 112 th Congress that would have lifted travel restrictions. H.R. 1886 would have prohibited restrictions on travel to Cuba. H.R. 1888 , in addition to removing some restrictions on the export of U.S. agricultural products to Cuba, also would have prohibited Cuba travel restrictions. Two initiatives that would have lifted the overall Cuba embargo, H.R. 255 and H.R. 1887 , also would have lifted restrictions on travel and remittances to Cuba. H.R. 380 would have prohibited the Treasury Department from making any funds to implement, administer, or enforce regulations requiring specific licenses for travel-related transactions directly related to educational activities in Cuba.

(For additional information, see CRS Report RL31139, Cuba: U.S. Restrictions on Travel and Remittances , by [author name scrubbed].)

U.S. Agricultural Exports and Sanctions

U.S. commercial agricultural exports to Cuba have been allowed for several years, but with numerous restrictions and licensing requirements. The 106 th Congress passed the Trade Sanctions Reform and Export Enhancement Act of 2000 or TSRA ( P.L. 106-387 , Title IX) that allows for one-year export licenses for selling agricultural commodities to Cuba, although no U.S. government assistance, foreign assistance, export assistance, credits, or credit guarantees are available to finance such exports. TSRA also denies exporters access to U.S. private commercial financing or credit; all transactions must be conducted in cash in advance or with financing from third countries. TSRA reiterates the existing ban on importing goods from Cuba but authorizes travel to Cuba, under a specific license, to conduct business related to the newly allowed agricultural sales.

From 2002 through 2010, the United States was the largest supplier of food and agricultural products to Cuba, although the level of U.S. exports declined annually over the past three years (2009-2011) and in 2011 Brazil's agricultural exports to Cuba superseded those of the United States. Cuba has purchased over $4.1 billion in products from the United States since 2001. U.S. exports to Cuba rose from about $7 million in 2001 to $404 million in 2004 and to a high of $712 million in 2008, far higher than in previous years, in part because of the rise in food prices and because of Cuba's increased food needs in the aftermath of several hurricanes and tropical storms that severely damaged the country's agricultural sector.

Beginning in 2009, however, U.S. exports to Cuba declined considerably, amounting to $533 million in 2009 (25% lower than 2008), and $368 million in 2010 (a 31% drop from 2009). In 2011, U.S. exports to Cuba declined to $363 million, just a 1.23% drop from 2010. (See Figure 5 .) Among the reasons for the decline, analysts cite Cuba's shortage of hard currency; credits and other arrangements offered by other governments to purchase their countries' products; overall financial support provided by Venezuela and China; and Cuba's perception that its efforts to motivate U.S. companies, organizations, local and state officials, and Members of Congress to push for change in U.S. sanctions policy toward Cuba have been ineffective.

In 2012, the level of U.S. agricultural exports to Cuba began to increase again. Through September 2012, U.S. exports to Cuba amounted to $338 million, a 22% increase from the same period in 2011.

Looking at the composition of U.S. exports to Cuba in recent years, the leading products have been cereals (especially corn and to a lesser extent wheat), poultry and pork, soybeans, prepared animal feed, and edible vegetables.

In February 2005, OFAC amended the Cuba embargo regulations to clarify that TSRA's term of "payment of cash in advance" means that the payment must be received by the seller or the seller's agent prior to the shipment of the goods from the port at which they are loaded. U.S. agricultural exporters and some Members of Congress strongly objected that the action constituted a new sanction that violated the intent of TSRA and could jeopardize millions of dollars in U.S. agricultural sales to Cuba. OFAC Director Robert Werner maintained that the clarification "conforms to the common understanding of the term in international trade." Facing congressional pressure, on July 29, 2005, OFAC clarified that, for "payment of cash in advance" for the commercial sale of U.S. agricultural exports to Cuba, vessels can leave U.S. ports as soon as a foreign bank confirms receipt of payment from Cuba. OFAC's action was aimed at ensuring that the goods would not be vulnerable to seizure for unrelated claims while still at the U.S. port. Supporters of overturning OFAC's February 22, 2005, amendment, such as the American Farm Bureau Federation, reportedly were pleased by the clarification but indicated that they would still work to overturn the February 2005 rule.

In December 2009, Congress took action in the FY2010 omnibus appropriations measure ( P.L. 111-117 ) to define, during FY2010, "payment of cash in advance" as payment before the transfer of title to, and control of, the exported items to the Cuban purchaser. This overturned OFAC's February 2005 clarification that payment had to be received before vessels could leave U.S. ports. The Administration issued regulations implementing this provision in early March 2010. The regulations maintained that the definition applied to items delivered by September 30, 2010, or delivered pursuant to a contract entered into by September 30, 2010, and shipped within 12 months of the signing of the contract.

While the 111 th Congress did not complete action on the FY2011 Financial Services and General Government Appropriations measure, it approved a series of short-term continuing resolutions and then in April 2011 ultimately approved a full-year measure ( P.L. 112-10 ) under conditions provided in enacted FY2010 appropriations measures. This continued the "payment of cash in advance" provision through FY2011. Several additional legislative initiatives introduced in the 111 th Congress would have permanently made this change, but no action was completed on these measures. H.R. 4645 (Peterson), reported out of the House Agriculture Committee in June 2010, in addition to addressing travel restrictions, would have permanently changed the definition of "payment of cash in advance" and would have allowed direct transfers between U.S. and Cuban financial institutions for payment for products sold to Cuba under TSRA.

Legislative Proposals Regarding Agricultural Exports to Cuba

In the first session of the 112 th Congress, both the House Appropriations Committee-approved and Senate Appropriations Committee-approved versions of the FY2012 Financial Services and General Government Appropriations measure, H.R. 2434 and S. 1573 respectively, had a provision (§618 of the House bill and §620 of the Senate bill) that would have continued to clarify the definition of "payment of cash in advance" during FY2012 for U.S. agricultural and medical sales to Cuba.

The Senate bill, S. 1573 , had another Cuba provision (§624) related to payment for U.S. exports to Cuba. The provision would have prohibited restrictions on direct transfers from a Cuban financial institution to a U.S. financial institution in payment for licensed agricultural and medical exports to Cuba. The provision was added during the Senate Appropriations Committee's markup on September 15, 2011, when the committee approved an amendment offered by Senator Jerry Moran by a vote of 20-10. During debate on the direct transfers provision, supporters argued that restrictions on direct transfers have made U.S. agricultural sales more costly and complicated for U.S. businesses, while opponents maintained that the United States should not open up such direct financial linkages while Cuba is on the State Department's list of states sponsoring international terrorism.

Ultimately none of the Cuba provisions related to financing for U.S. agricultural exports to Cuba were included in the Consolidated Appropriations Act, FY2012, H.R. 2055 ( P.L. 112-74 ), a "megabus" bill that included the FY2012 Financial Services and General Government bill. As discussed above, dropping the provisions appear to have been a tradeoff to compensate for not including a provision that would have rolled back the Obama Administration's lifting of some restrictions on travel and remittances to Cuba.

In the second session of the 112 th Congress, no Cuba provisions related to U.S. exports to Cuba were included in the House or Senate versions of the FY2013 Financial Services and General Government Appropriations bills, H.R. 6020 and S. 3301 respectively; both measures were reported out of committee without any Cuba policy provisions. Senator Jerry Moran indicated during an Appropriations Subcommittee markup of the Senate bill in June 2012 that he was "taking a hiatus" from advocating an easing of restrictions on financing for payments for U.S. agricultural exports to Cuba "until Cuba deals with the detention of Alan Gross," the USAID subcontractor imprisoned in Cuba since late 2009. Senator Moran expressed hope that his action would "put pressure on Cuba to release" Gross. (Also see " December 2009 Imprisonment of Alan Gross " below.)

Two other introduced bills in the 112 th Congress, H.R. 833 (Conaway) and H.R. 1888 (Rangel), would have permanently changed the definition of "payment of cash in advance" for export sales to Cuba under TSRA and also would have allowed direct transfers between Cuban and U.S. financial institutions for payment for products sold to Cuba under TSRA. No action was taken on these measures.

In general, some groups favor further easing restrictions on agricultural exports to Cuba. U.S. agribusiness companies that support the removal of restrictions on agricultural exports to Cuba believe that U.S. farmers are missing out on a market so close to the United States. Some exporters want to change U.S. restrictions so that they can sell agriculture and farm equipment to Cuba. Agricultural exporters who support the lifting of the prohibition on financing contend that allowing such financing would help smaller U.S. companies increase their exports to Cuba more rapidly. On July 19, 2007, the U.S. International Trade Commission issued a report, requested by the Senate Committee on Finance, concluding that the U.S. share of Cuba's agricultural, fish, and forest imports would rise from one-third to between one-half and two-thirds if trade restrictions were lifted. (See the full report, available at http://www.usitc.gov/ext_relations/news_release/2007/er0719ee1.htm .)

Opponents of further easing restrictions on agricultural exports to Cuba maintain that U.S. policy does not deny such sales to Cuba, as evidenced by the large amount of sales since 2001. Moreover, according to the State Department, since the Cuban Democracy Act was enacted in 1992, the United States has licensed billions of dollars in private humanitarian donations. Opponents further argue that easing pressure on the Cuban government would in effect be lending support and extending the duration of the Castro regime. They maintain that the United States should remain steadfast in its opposition to any easing of pressure on Cuba that could prolong the Castro regime and its repressive policies. Some agricultural producers that export to Cuba support continuation of the prohibition on financing for agricultural exports to Cuba because it ensures that they will be paid.

Trademark Sanction144

For over a decade, the United States has imposed a sanction that denies protection for trademarks connected with businesses confiscated from their owners by the Cuban government. A provision in the FY1999 omnibus appropriations measure (§211 of Division A, Title II, P.L. 105-277 , signed into law October 21, 1998) prevents the United States from accepting payment for trademark registrations and renewals from Cuban or foreign nationals that were used in connection with a business or assets in Cuba that were confiscated, unless the original owner of the trademark has consented. The provision prohibits U.S. courts from recognizing such trademarks without the consent of the original owner. The measure was enacted because of a dispute between the French spirits company, Pernod Ricard, and the Bermuda-based Bacardi Ltd. Pernod Ricard entered into a joint venture in 1993 with the Cuban government to produce and export Havana Club rum. Bacardi maintains that it holds the right to the Havana Club name because in 1995 it entered into an agreement for the Havana Club trademark with the Arechabala family, who had originally produced the rum until its assets and property were confiscated by the Cuban government in 1960. Although Pernod Ricard cannot market Havana Club in the United States because of the trade embargo, it wants to protect its future distribution rights should the embargo be lifted.

The European Union initiated World Trade Organization dispute settlement proceedings in June 2000, maintaining that the U.S. law violates the Agreement on Trade-Related Aspects of Intellectual Property (TRIPS). In January 2002, the WTO ultimately found that the trademark sanction violated WTO provisions on national treatment and most-favored-nation obligations in the TRIPS Agreement.

On March 28, 2002, the United States agreed that it would come into compliance with the WTO ruling through legislative action by January 3, 2003. That deadline was extended several times since no legislative action had been taken to bring Section 211 into compliance with the WTO ruling. On July 1, 2005, however, in an EU-U.S. bilateral agreement, the EU agreed that it would not request authorization to retaliate at that time, but reserved the right to do so at a future date, and the United States agreed not to block a future EU request. On August 3, 2006, the U.S. Patent and Trademark Office announced that Cuba's Havana Club trademark registration was "cancelled/expired," a week after OFAC had denied a Cuban government company the license that it needed to renew the registration of the trademark. On March 29, 2011, the U.S. Court of Appeals of the District of Columbia upheld the decision to deny the renewal of the trademark, while in May 2012, the U.S. Supreme Court declined to hear the case, effectively letting stand the denial to renew the trademark.

Bacardi began marketing Havana Club rum in the United States in 2006 in limited quantities in Florida, and Pernod Ricard filed suit that the representation of the origin of the rum was misleading. In April 2010, a U.S. District Court in Delaware ruled in Bacardi's favor that the labeling was not misleading, and this was reaffirmed by a U.S. Court of Appeals on August 4, 2011.

In Congress, two different approaches have been advocated to bring Section 211 into compliance with the WTO ruling. Some want a narrow fix in which Section 211 would be amended so that it also applies to U.S. companies instead of being limited to foreign companies. Advocates of this approach argue that it would affirm that the United States "will not give effect to a claim or right to U.S. property if that claim is based on a foreign compensation." Others want Section 211 repealed altogether. They argue that the law endangers over 5,000 trademarks of over 500 U.S. companies registered in Cuba.

The House Committee on the Judiciary held a March 3, 2010, hearing on the "Domestic and International Trademark Implications of HAVANA CLUB and Section 211 of the Omnibus Appropriations Act of 2009." (See http://judiciary.house.gov/hearings/hear_100303.html .)

Several legislative initiatives were introduced during the 111 th Congress reflecting these two approaches to bring Section 211 into compliance with the WTO ruling, but no action was taken on these measures. In the 112 th Congress, two bills were introduced, S. 603 (Nelson, Bill) and H.R. 1166 (Issa), that would have applied the narrow fix so that the sanction would have applied to all nationals, while three broader bills that would have lifted U.S. sanctions on Cuba— H.R. 255 (Serrano), H.R. 1887 (Rangel), and H.R. 1888 (Rangel)—each included a provision repealing Section 211. The July 2005 EU-U.S. bilateral agreement, in which the EU agreed not to retaliate against the United States, but reserved the right to do so at a later date, has reduced pressure on Congress to take action to comply with the WTO ruling.

Anti-Drug Cooperation

Cuba is not a major producer or consumer of illicit drugs, but its extensive shoreline and geographic location make it susceptible to narcotics smuggling operations. Drugs that enter the Cuban market are largely the result of onshore wash-ups from smuggling by high-speed boats moving drugs from Jamaica to the Bahamas, Haiti, and the United States or by small aircraft from clandestine airfields in Jamaica. For a number of years, Cuban officials have expressed concerns over the use of their waters and airspace for drug transit and about increased domestic drug use. The Cuban government has taken a number of measures to deal with the drug problem, including legislation to stiffen penalties for traffickers, increased training for counternarcotics personnel, and cooperation with a number of countries on anti-drug efforts.

According to the State Department's 2012 International Narcotics Control Strategy Report (INCSR) , issued March 7, 2012, Cuba has a number of anti-drug-related agreements in place with other countries, including 39 judicial agreements regarding judicial proceedings and extradition, 32 bilateral counterdrug agreements, and 2 memoranda of understanding. Since 1999, Cuba's Operation Hatchet has focused on maritime and air interdiction and the recovery of narcotics washed up on Cuban shores. As reported in the INCSR , Cuba interdicted 9.01 metric tons of illegal narcotics in 2011 (including 8.3 metric tons from wash-ups). Since 2003, Cuba has aggressively pursued an internal enforcement and investigation program against its incipient drug market with an effective nationwide drug prevention and awareness campaign, Operation Popular Shield.

Over the years, there have been varying levels of U.S.-Cuban cooperation on anti-drug efforts. In 1996, Cuban authorities cooperated with the United States in the seizure of 6.6 tons of cocaine aboard the Miami-bound Limerick , a Honduran-flag ship. Cuba turned over the cocaine to the United States and cooperated fully in the investigation and subsequent prosecution of two defendants in the case in the United States. Cooperation has increased since 1999 when U.S. and Cuban officials met in Havana to discuss ways of improving anti-drug cooperation. Cuba accepted an upgrading of the communications link between the Cuban Border Guard and the U.S. Coast Guard as well as the stationing of a U.S. Coast Guard Drug Interdiction Specialist (DIS) at the U.S. Interests Section in Havana. The Coast Guard official was posted to the U.S. Interests Section in September 2000, and since that time, coordination has increased.

In the 2012 INCSR , the State Department reported that Cuba maintained a significant level of anti-drug cooperation with the United States in 20111. The Coast Guard shares tactical information related to narcotics trafficking on a case by case basis, and responds to Cuban information on vessels transiting through Cuban territorial seas suspected of smuggling. Bilateral cooperation led to multiple at-sea interdictions in 2011. The Cuban Border Guard reported 45 real-time reports of "go-fast" narcotics trafficking events in 2011 to the U.S. Coast Guard, and its e-mail and phone notifications have increased in quality, according to the INCSR , occasionally including photographs of suspected vessels involved in narcotics trafficking.

Cuba maintains that it wants to cooperate with the United States to combat drug trafficking, and on various occasions has called for a bilateral anti-drug cooperation agreement with the United States. In the 2011 INCSR (issued in March 2011) the State Department acknowledged that Cuba had presented the U.S. government with a draft bilateral accord for counternarcotics cooperation that is still under review. According to the State Department in the INCSR : "Structured appropriately, such an accord could advance the counternarcotics efforts undertaken by both countries." The report maintained that greater cooperation among the United States, Cuba, and its international partners—especially in the area of real-time tactical information-sharing and improved tactics, techniques, and procedures—would likely lead to increased interdictions and disruptions of illegal trafficking. These positive U.S. statements regarding a potential bilateral anti-drug cooperation agreement and greater multilateral cooperation in the region with Cuba were reiterated in the 2012 INCSR .

At a February 1, 2012, hearing before the Senate Caucus on International Narcotics Control on U.S.-Caribbean security cooperation, Caucus Chairman Senator Dianne Feinstein stated that "this limited cooperation we do have between our Coast Guard and Cuban authorities has been very useful, and I hope we can find ways to increase our counternarcotics cooperation with Cuba." The caucus released a report on September 13, 2012, in which Senator Feinstein recommended that the Obama Administration consider taking four steps to increase U.S. collaboration with Cuban on counternarcotics: 1) expand the U.S. Coast Guard and law enforcement presence at the U.S. Interests Section in Havana; 2) establish protocols for direct ship-to-ship communication between the U.S. Coast Guard and the Cuban Border Guard; 3) negotiate a bilateral counternarcotics agreement with Cuba; and 4) allow for Cuba's participation in the U.S.-Caribbean Security Dialogue.

Cuba's Offshore Oil Development156

Cuba is working toward potential development of its offshore oil resources, but it suffered setbacks in 2012 when three attempts by foreign oil companies drilling wells were unsuccessful. While the country has proven oil reserves of just 0.1 billion barrels, the U.S. Geological Survey estimates that offshore reserves in the North Cuba Basin could contain an additional 4.6 billion barrels of undiscovered technically recoverable crude oil. If oil is found, some experts estimate that it would take at least three to five years before production would begin. While it is unclear whether offshore oil production could result in Cuba becoming a net oil exporter, it could reduce Cuba's current dependence on Venezuela for oil supplies.

Cuba has had seven offshore deepwater oil projects involving nine foreign companies in 22 exploration blocs. (See Figure 6 for a map of Cuba's offshore oil blocks.) The Spanish oil company Repsol, in a consortium with Norway's Statoil and India's Oil and Natural Gas Corporation, began offshore exploratory drilling in late January 2012, using an oil rig known as the Scarabeo-9 (owned by an Italian oil services provider, Saipem, a subsidiary of the Italian oil company ENI). On May 18, 2012, however, Repsol announced that its exploratory well came up dry, and the company subsequently announced in late May that it would likely leave Cuba. Subsequently, in late May 2012, the Scarabeo-9 oil rig was used by the Malaysian company Petronas in cooperation with the Russian company Gazprom to explore for oil in a block off the coast of western Cuba. On August 6, 2012, however, Cuba announced that that the well was found not to be commercially viable because of its compact geological formation. In early September 2012, the Venezuelan oil company, PdVSA, announced that it had started exploring for oil off the coast of western Cuba, but on November 2, 2012, Cuba announced that the well was not commercially viable. In addition to these projects, Cuba has three additional offshore projects with foreign oil companies—PetroVietnam, Sonangol (Angola), and ONGC (India).

As a result of the three unsuccessful wells, the Scarabeo-9 oil rig left Cuba on November 14, 2012, reportedly headed to West Africa. Some oil experts maintain that it could be years before companies decide to return to drill again in Cuba's offshore deepwaters. Most observers, however, maintain that the failure to discover oil in the three wells drilled by the Scrrabeo-9 oil rig in 2012 is a significant setback for the Cuban government's efforts to develop its deepwater offshore hydrocarbon resources.

It should be noted that a Russian company, Zarubezhneft, announced in December 2012 that it had begun drilling an exploratory well in a north coastal block (in shallow waters, not deepwater exploration) east of Havana off Cayo Coco, a Cuban tourist resort area. The company is using an oil rig known as the Songa Mercur operated by Songa Offshore, a Norwegian oil rig company. Drilling is expected to be completed in June 2013.

In the aftermath of the Deepwater Horizon oil spill in the Gulf of Mexico, some Members of Congress and others expressed concern about Cuba's development of its deepwater petroleum reserves so close to the United States. They are concerned about oil spill risks and about the status of disaster preparedness and coordination with the United States in the event of an oil spill. Dealing with these challenges is made more difficult because of the long-standing poor state of relations between Cuba and the United States. If an oil spill did occur in the waters northwest of Cuba, currents in the Florida Straits could carry the oil to U.S. waters and coastal areas in Florida, although a number of factors would determine the potential environmental impact. If significant amounts of oil did reach U.S. waters, marine and coastal resources in southern Florida could be at risk.

The final report of the National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling, issued in January 2011, maintained that since Mexico already drills in the Gulf of Mexico and Cuba has expressed an interest in deepwater drilling in the Gulf of Mexico, that it is in the U.S. national interest to negotiate with these countries to agree on a common, rigorous set of standards, a system of regulatory oversight, and operator adherence to an effective safety culture, along with protocols to cooperate on containment and response strategies in case of a spill.

With regard to disaster response coordination, while the United States and Cuba are not parties to a bilateral agreement on oil spills, both countries are signatories to multilateral agreements that commit the two parties to prepare for and cooperate on potential oil spills. Under the auspices of the International Maritime Organization (IMO), the United States and Cuba have participated in several regional meetings (including Mexico in November 2011; Bahamas in December 2011; Curacao in February 2012; Jamaica in April 2012; and Mexico in August 2012) regarding oil spill prevention, preparedness, and response that have allowed information sharing among nations, including the United States and Cuba.

U.S. oil spill mitigation companies can be licensed by the Treasury and Commerce Departments to provide support and equipment in the event of an oil spill. One such example is a Florida-based company, Clean Caribbean & Americas, which has had licenses to be involved in Cuba since 2001. In addition, the U.S. Coast Guard has obtained licenses from Treasury and Commerce that allow it "to broadly engage in preparedness and response activities, and positions" the agency "to direct an immediate response in the event of a catastrophic oil spill." Some energy and policy analysts, however, have called for the Administration to ease regulatory restrictions on private companies for the transfer of U.S. equipment and personnel to Cuba needed to prevent and combat a spill if it occurs.

Interest in Cuba's offshore oil development continued in the 112 th Congress, with interest focused on a potential oil spill, and attempts to sanction foreign companies investing in or supporting Cuba's oil development. Eight legislative initiatives were introduced taking different approaches, but only one of these measures was considered and none were enacted:

H.R. 372 (Buchanan), introduced January 20, 2011, would have amended the Outer Continental Shelf Lands Act to authorize the Secretary of the Interior to deny leases and permits to persons who engage in activities with the government of any foreign country that is subject to any U.S. government sanction or embargo. The intent of the legislation was to sanction companies involved in Cuba's oil development, although the scope of the legislation was much broader and could have affect other oil companies, including U.S. companies, not involved in Cuba. S. 405 (Nelson, Bill), introduced February 17, 2011, would have required a company conducting oil or gas operations off the coasts of Cuba to submit an oil response plan for their Cuba operations and demonstrate sufficient resources to respond to a worst case scenario oil spill if the company wanted to lease drilling rights in the United States. The bill would also have required the Secretary of the Interior to carry out an oil spill risk analysis and planning process for the development and implementation of oil spill response plans for nondomestic oil spills in the Gulf of Mexico. The Secretary of the Interior would have been required, among other things, to include recommendations for Congress on a joint contingency plan with the countries of Mexico, Cuba, and the Bahamas to ensure an adequate response to oil spills located in the eastern Gulf of Mexico. H.R. 2047 (Ros-Lehtinen), introduced May 26, 2011, would have imposed visa restrictions on foreign nationals and economic sanctions on companies that help facilitate the development of Cuba's offshore petroleum resources. The bill would have excluded from the United States aliens who invest $1 million or more that contributes to the enhancement of the ability of Cuba to develop its offshore oil resources. It would also have required the imposition of sanctions (two or more from a menu of listed sanctions) if the President determined that a person had made an investment of $1 million on or after January 10, 2005, that contributed to Cuba's offshore oil development. The language of H.R. 2047 was also included in Section 105 of H.R. 6067 (Ros-Lehtinen), introduced June 29, 2012. Both H.R. 3393 (Rivera) and S. 1836 (Menendez), introduced respectively on November 7 and 9, 2011, would have amended the Oil Pollution Act of 1990 to clarify that the Act applies to oil spills by foreign offshore units that occur in water beyond the exclusive economic zone of the United States. H.R. 4135 (Flake), the Western Hemisphere Energy Security Act of 2012, introduced March 5, 2012, would have authorized U.S. companies to engage in exploration and extraction activities or oil spill prevention and clean-up activities in Cuba's offshore oil sector contiguous to the U.S. exclusive economic zone. It would also have allowed for the export of all equipment and travel needed for such activities. The bill would also have allowed for the importation of hydrocarbon resources from Cuba. The House version of the FY2013 National Defense Authorization Act, H.R. 4310 (McKeon), approved May 18, 2012, had a provision (§803) that would have prohibited the Department of Defense (DOD) from contracting for the procurement of goods and services with any person that has business operations with a state sponsor of terrorism. The provision was added to the bill by voice vote during House floor consideration of an en bloc amendment, H.Amdt. 1119 (McKeon), that included Amendment No. 94 (Rivera), which became Section 803 of the bill. According to the sponsor, the amendment would affect Repsol from partnering with Cuba in oil exploration efforts while at the same time benefiting from DOD contracts. (Neither the Senate version of the bill, nor the conference report, included a similar provision so it was not included in the final version of the bill.)

Three congressional oversight hearings were held in the 112 th Congress on the issue of Cuba's offshore oil development and the implications for the United States. On October 18, 2011, the Senate Energy and Natural Resources Committee hearing held a hearing on Outer Continental Oil Spill Response Capabilities featuring officials from the U.S. Coast Guard, the Department of the Interior, and private witnesses. On November 2, 2011, the House Natural Resources Committee, Subcommittee on Energy and Mineral Resources, held a hearing that also featured Coast Guard and Department of the Interior officials and private witnesses. On January 30, 2012, the House Committee on Transportation and Infrastructure, Subcommittee on Coast Guard and Maritime Transportation, held a field hearing on the issue in Miami, FL, featuring testimony from the Coast Guard, Department of the Interior, and the state of Florida.

Terrorism Issues165

Cuba was added to the State Department's list of states sponsoring international terrorism in 1982 (pursuant to section 6(j) of the Export Administration Act of 1979) because of its alleged ties to international terrorism and support for terrorist groups in Latin America, and it has remained on the list since that time. Cuba had a long history of supporting revolutionary movements and governments in Latin America and Africa, but in 1992, Fidel Castro said that his country's support for insurgents abroad was a thing of the past. Cuba's change in policy was in large part due to the breakup of the Soviet Union, which resulted in the loss of billions of dollars in annual subsidies to Cuba, and led to substantial Cuban economic decline.

Critics of retaining Cuba on the terrorism list maintain that it is a holdover from the Cold War. They argue that domestic political considerations keep Cuba on the terrorism list and maintain that Cuba's presence on the list diverts U.S. attention from struggles against serious terrorist threats. Those who support keeping Cuba on the terrorism list argue that there is ample evidence that Cuba supports terrorism. They point to the government's history of supporting terrorist acts and armed insurgencies in Latin America and Africa. They point to the government's continued hosting of members of foreign terrorist organizations and U.S. fugitives from justice.

The State Department's C ountry Reports on Terrorism 2011 report (issued July 31, 2012) maintained that "current and former members of Basque Fatherland and Liberty (ETA) continued to reside in Cuba," and that "press reporting indicated that the Cuban government provided medical care and political assistance" to the Revolutionary Armed Forces of Colombia (FARC). At the same time, the report maintained that there "was no indication that the Cuban government provided weapons or paramilitary training for either ETA or the FARC." With regard to ETA, the State Department reported that three suspected ETA members were arrested in Venezuela after sailing there from Cuba and were deported back to Cuba in September 2011– one of the men, Jose Ignacio Echarte, is believed to have ties to the FARC and is a fugitive from Spain, which has requested his extradition.

In more recent developments in 2012, Cuba has been playing a role in hosting talks between the FARC and Colombian government of President Juan Manuel Santos. Conversations began in Cuba with the FARC in early 2012, and formal peace talks began in Norway on October 18, 2012. Official talks then moved to Havana beginning on November 19, 2012.

Another issue noted in the 2011 terrorism report is that the Cuban government continues "to permit fugitives wanted in the United States to reside in Cuba," and provides such support as housing, food ration books, and medical care. In the 112 th Congress, legislation was introduced, H.Res. 226 (King), that would have called for the immediate extradition or rendering of all fugitives from justice who are receiving safe harbor in Cuba in order to escape prosecution or confinement for criminal offenses committed in the United States.

Both the President and Congress have powers to take a country off the state sponsors of terrorism list. As set forth in Section 6(j) of the Export Administration Act, a country's retention on the list may be rescinded in two ways. The first option is for the President to submit a report to Congress certifying that there has been a fundamental change in the leadership and policies of the government and that the government is not supporting acts of international terrorism and is providing assurances that it will not support such acts in the future. The second option is for the President to submit a report to Congress, at least 45 days in advance justifying the rescission and certifying that the government has not provided any support for international terrorism during the preceding six-months, and has provided assurances that it will not support such acts in the future. If Congress disagrees with the President's decision to remove a country from the list, it could seek to block the rescission through legislation.

Congress also has the power on its own to remove a country from the terrorism list. For example, legislation introduced on Cuba in the 111 th Congress, H.R. 2272 (Rush), included a provision that would have rescinded the Secretary of State's determination that Cuba "has repeatedly provided support for acts of international terrorism."

Cuba has been the target of various terrorist incidents over the years. In 1976, a Cuban plane was bombed, killing 73 people. In 1997, there were almost a dozen bombings in the tourist sector in Havana in which an Italian businessman was killed and several others were injured. Two Salvadorans were convicted and sentenced to death for the bombings in March 1999 (although the sentences were commuted in 2010 to 30 years in prison), and three Guatemalans were sentenced to prison terms ranging from 10 to 15 years in January 2002 for plans to conduct bombings in 1998. Cuban officials maintain that Cuban exiles funded the bombings.

In November 2000, four anti-Castro activists were arrested in Panama for a plot to kill Fidel Castro. One of the accused, Luis Posada Carriles, is also alleged to be involved in the 1976 Cuban airline bombing and the series of bombings in Havana in 1997 noted above. The four stood trial in March 2004 and were sentenced on weapons charges to prison terms ranging from seven to eight years. In late August 2004, Panamanian President Mireya Moscoso pardoned the four men before the end of her presidential term. Three of the men are U.S. citizens and traveled to Florida, where they received strong support from some in the Cuban American community, while Posada reportedly traveled to another country.

Posada entered the United States illegally in 2005. In subsequent removal proceedings, an immigration judge found that Posada could not be removed to Cuba or Venezuela because of concerns that he would face torture, and he was thereafter permitted to remain in the United States pending such time as he could be transferred to a different country. Posada subsequently applied for naturalization to become a U.S. citizen. This application was denied, and criminal charges were brought against him for allegedly false statements made in his naturalization application and interview. Although a federal district court dismissed the indictment in 2007, its ruling was reversed by an appellate court in 2008. In April 2009, the United States filed a superseding indictment, which included additional criminal charges based on allegedly false statements made by Posada in immigration removal proceedings concerning his involvement in the 1997 Havana bombings. His trial originally was set to begin in August 2009, but was rescheduled three times until it finally began in January 2011. Ultimately, Posada was acquitted of the perjury charges in April 2011, an action that was strongly criticized by Cuban officials.

On July 7, 2010, Venezuelan authorities extradited to Cuba an alleged Posada associate, Salvadoran citizen Francisco Chávez Abarca, who was charged with involvement in one of the 1997 bombings in Havana. Chávez Abarca had been imprisoned from 2005 to 2007 in El Salvador for running a car theft ring, but charges ultimately were dropped, reportedly because of a botched investigation, and he was set free. On July 1, 2010, he was arrested in Venezuela upon entering the county and allegedly confessed to plans to organize protests in Venezuela around the time of the country's legislative elections in September 2010. In late September 2010, the Cuban government released Chávez Abarca's video confessions and reenactment of the bombings, as well as his alleged association with Luis Posada, in a public information campaign featured in the Cuban media as well as abroad. According to Chávez Abarca, Posada recruited him in El Salvador for the Cuba bombings, and paid him $2,000 for each bomb that went off. Only one of the bombs that Chávez Abarca planted actually detonated, on April 12, 2007, in the bathroom of a disco at the Melia Cohiba hotel in Havana. In late December 2010, Chávez Abarca was sentenced to 30 years in prison for his role in the bombings.

U.S. Funding to Support Democracy and Human Rights

Since 1996, the United States has provided assistance—through the U.S. Agency for International Development (USAID), the State Department, and the National Endowment for Democracy (NED)—to increase the flow of information on democracy, human rights, and free enterprise to Cuba. USAID's Cuba program has supported a variety of U.S.-based non-governmental organizations with the goals of promoting a rapid, peaceful transition to democracy, helping develop civil society, and building solidarity with Cuba's human rights activists.

These efforts are largely funded through Economic Support Funds (ESF) in the annual foreign operations appropriations bill. From FY2001-FY2012, Congress appropriated almost $197 million in funding for Cuba democracy efforts. This included $45.3 million for FY2008, and $20 million in each fiscal year from FY2009 through FY2012. The Administration's FY2013 request is for $15 million. Generally, as provided in appropriations measures, ESF has to be obligated within two years. (For a brief description of USAID's Cuba program along with a listing of current USAID grantees, see http://www.usaid.gov/where-we-work/latin-american-and-caribbean/cuba/our-work .)

FY2010. Congress fully funded the Administration's $20 million FY2010 ESF request for Cuba democracy programs in the conference report ( H.Rept. 111-366 ) to the Consolidated Appropriations Act, 2010 ( H.R. 3288 / P.L. 111-117 ). According to the State Department's FY2010 Congressional Budget Justification for Foreign Operations , U.S. assistance programs focus on providing humanitarian assistance to victims of repression, strengthening civil society, weakening the information blockade, and helping Cubans to create space for dialogue about democratic change and reconciliation. Both House-passed H.R. 3081 and Senate Appropriations Committee-reported S. 1434 , the FY2010 State Department, Foreign Operations, and Related Programs Appropriations Act, recommended full funding of the Administration's $20 million request.

In April 2011, Senate Foreign Relations Committee Chairman John Kerry placed a hold on the funding. He maintained that he would oppose the spending until a full review of the programs was complete and contended that there was no evidence that programs are helping the Cuban people. Senator Patrick Leahy, chairman of the Senate Appropriations Committee's Subcommittee on the Department of State, Foreign Operations, and Related Programs, also reportedly placed a hold on the assistance. By early August 2011, however, both holds had been lifted.

FY2011. The Administration again requested $20 million in ESF for FY2011 to support democracy and human rights projects. According to the Administration's request, the assistance focuses on providing humanitarian assistance to prisoners of conscience and their families, strengthening civil society, supporting issue-based civic action movements and coalitions, and promoting fundamental freedoms, especially freedom of expression and freedom of the press. The Senate version of the State Department and Foreign Operations appropriations measure, S. 3676 , reported by the Senate Appropriations Committee on July 29, 2010 ( S.Rept. 111-237 ), would have provided that $2 million of the ESF appropriated for Cuba be transferred and merged with funds for the National Endowment for Democracy for democracy programs in Cuba. Congress did not complete action on FY2011 appropriations until April 2011 when it approved a full-year appropriations measure ( P.L. 112-10 ). In August 2011, the Administration made known its FY2011 foreign aid allocations by country, which included the full $20 million for Cuba democracy assistance that had been requested.

As notified to Congress in April 2012, of the $20 million, USAID will administer $8.9 million, the State Department's Bureau of Western Hemisphere Affair will administer $1.6 million, and the State Department's Bureau of Democracy, Human Rights, and Labor (DRL) will administer $9.5 million, of which $4 million will be transferred to the National Endowment for Democracy. In terms of programs for the $20 million, $12.43 million will be used for democracy, civil society and media programs; $4.7 million will be used to support human rights initiatives; and $2.87 million will be used for program support.

FY2012. The Administration once again requested $20 million in ESF for FY2012 with the promotion of democratic principles the core goal of assistance, and Congress supported the full amount in the conference report to the FY2012 Consolidated Appropriations Act ( H.Rept. 112-331 to H.R. 2055 , P.L. 112-74 ). The budget request stated that there is an increased effort to manage programs more transparently, focus efforts on Cuba, and widen the scope of the civic groups receiving supports. According to the Administration's request, U.S. assistance aims to strengthen a range of independent elements of Cuban civil society, including associations and labor groups, marginalized groups, youth, legal associations, and women's networks. The programs are designed to increase the capacity for community involvement of civil society organizations and networking among the groups. The program also supports Cuban efforts to document human rights violations, provides humanitarian assistance to political prisoners and their families, and builds leadership skills of civil society leaders. Finally, the budget request maintains that U.S. assistance also supports the dissemination of information regarding market economies and economic rights.

The Senate Appropriations Committee-reported version of the FY2012 Department of State, Foreign Operations, and Related Programs Appropriations bill, S. 1601 ( S.Rept. 112-85 ) would have provided $15 million in ESF for Cuba ($5 million less than the request), including humanitarian and democracy assistance, support for economic reform, private sector initiatives, and human rights. In its report to the bill, the committee maintained that it expected that funds would be made available, and programs carried out, in a transparent manner. The committee also would have directed that the USAID Administrator provide regular updates to the committee on the number of Cubans who receive assistance and the types of assistance. In contrast to the Senate bill, a draft House Appropriations Committee bill and report (marked up by the Subcommittee on State, Foreign Operations, and Relations Programs on July 27, 2011) would have recommended $20 million in ESF for Cuba (the full Administration's request), and would have directed that the funds be used only for democracy-building, and not for business promotion, economic reform, social development or other purposes expressly authorized by Section 109(a) of the Cuban Liberty and Democratic Solidarity Act of 1996 ( P.L. 104-114 ). (See the draft committee report, available at http://appropriations.house.gov/UploadedFiles/FY12-SFOPSCombinedReport-CSBA.pdf .)

FY2013. For FY2013, the Administration requested $15 million for human rights and democracy programs for Cuba. According to the request, "U.S. assistance will continue to support human rights and civil society initiatives that promote basic freedoms, particularly freedom of expression. Programs will continue to provide humanitarian assistance to prisoners of conscience and their families, as well as strengthen independent Cuban civil society, and promote the flow of uncensored information to, from, and within the island."

The Senate Appropriations Committee-reported version of the FY2013 State Department, Foreign Operations, and Related Programs Appropriations Act, S. 3241 ( S.Rept. 112-172 ) would have provided $15 million in ESF for Cuba (the same as the Administration's request), including "for humanitarian assistance, support for economic reform, private sector initiatives, democracy, and human rights." In contrast, the House Appropriations Committee-reported version of the bill, H.R. 5857 ( H.Rept. 112-94 ) would have provided $20 million in ESF ($5 million more than the Administration's request), but would transfer and merge the aid with funds available to the National Endowment for Democracy "to promote democracy and strengthen civil society in Cuba." The report to the House bill maintained that assistance "shall not be used for business promotion, economic reform, social development, or other purposes not expressly authorized by section 109(a)" of the Cuban Liberty and Democratic Solidarity Act ( P.L. 104-114 ). Both the Senate and House bills would continue the long-standing prohibition on direct funding assistance to the government Cuba, and would require that any assistance to Cuba be provided through the regular notification procedures of the Committees on Appropriations.

Congress did not complete action on FY2013 appropriations before the beginning of the fiscal year, but in September 2012, it approved a continuing appropriations resolution ( H.J.Res. 117 , P.L. 112-175 ) that continues FY2013 funding through March 27, 2013, at the same rate for projects and activities in FY2012, plus an across-the-board increase of 0.612%, although specific country accounts are left to the discretion of responsible agencies. This continues funding for Cuba democracy programs through March 27, 2013, but the 113 th Congress will need to address foreign aid appropriations for the balance of FY2013.

National Endowment for Democracy. Until FY2008, NED's democratization assistance for Cuba had been funded largely through the annual Commerce, Justice, and State (CJS) appropriations measure, but is now funded through the State Department, Foreign Operations and Related Agencies appropriations measure.

According to NED, its Cuba funding in recent years has been as follows: $1.4 million in FY2008 for 11 projects; $1.5 million in FY2009 for 10 projects; $2.4 million in FY2010 for 15 projects; and $1.65 million in FY2011 for 13 projects. NED reported in its 2011 annual report (the most recent available) that it funding the following organizations and projects for Cuba in that fiscal year: Afro-Cuban Alliance Inc; Center for a Free Cuba; Committee for Free Trade Unionism; Cuban Democratic Directorate; CubaNet News Inc.; Grupo Internacional para la Responsibilidad Social Corporativa en Cuba; Instituto Político para La Libertad Perú; National Democratic Institute for International Affairs; Observatorio Cubano de Derechos Humanos; People in Need; People in Peril Association; Civic Education; and Rule of Law.

As noted above, for FY2011, the State Department notified Congress in April 2012 that $4 million in ESF (of the $20 million appropriated by Congress for Cuba programs) would be transferred to the National Endowment for Democracy, almost doubling the amount of NED funding for Cuba programs compared to FY2010. The funds are to be used for grants to (1) support independent, democratic civil society activists on the island; (2) cultivate the analytical capacity of existing civil society actors; and (3) promote greater knowledge of and adherence to international norms regarding political, civic, and fundamental human rights.

In addition, as noted above, the House Appropriations Committee-reported version of the FY2013 foreign aid appropriations measure, H.R. 5857 ( H.Rept. 112-94 ) would have appropriated $20 million in ESF for Cuba democracy funding, but would have transferred and merged the aid with funds available to the NED. Such an amount would be greater than the $14.19 million that NED proposed to spend on program activity in the entire Latin America/Caribbean region for FY2013.

Oversight of U.S. Democracy Assistance to Cuba

In November 2006, the Government Accountability Office (GAO) issued a report examining U.S. democracy assistance for Cuba from 1996 to 2005, and concluded that the U.S. program had significant problems and needed better management and oversight. According to GAO, internal controls, for both the awarding of Cuba program grants and oversight of grantees, "do not provide adequate assurance that the funds are being used properly and that grantees are in compliance with applicable law and regulations." Investigative news reports on the program maintained that high shipping costs and lax oversight had diminished its effectiveness.

GAO issued a second report examining USAID's Cuba democracy program in November 2008. The report lauded the steps that USAID had taken since 2006 to address problems with its Cuba program and improve oversight of the assistance. These included awarding all grants competitively since 2006, hiring more staff for the program office since January 2008, and contracting for financial services in April 2008 to enhance oversight of grantees. The GAO report also noted that USAID had worked to strengthen program oversight through pre-award and follow-up reviews, improving grantee internal controls and implementation plans, and providing guidance and monitoring about permitted types of assistance and cost sharing.

The GAO report also maintained, however, that USAID had not staffed the Cuba program to the level needed for effective grant oversight. GAO also noted the difficulty of assessing USAID's action to improve its Cuba program because most of its actions to improve the program were only taken recently. Procurement reviews completed in August 2008 by the new financial services contractor identified internal control, financial management, and procurement weaknesses at three grantees. GAO recommended that USAID (1) ensure that its Cuba program office is staffed at the level that is needed to fully implement planned monitoring activities; and (2) periodically assess the Cuba program's overall efforts to address and reduce grantee risks, especially regarding internal controls, procurement practices, expenditures, and compliance with laws and regulations.

In April 2011, Senate Foreign Relations Committee Chairman John Kerry said that he had asked GAO to undertake another investigation of the Cuba program regarding its legal basis and effectiveness.

December 2009 Imprisonment of Alan Gross

On December 4, 2009, Cuban authorities arrested an American subcontractor, Alan Gross, working for Development Alternatives Inc. (DAI), a Bethesda-based company that had received a contract from USAID to help support Cuban civil society organizations. Gross was arrested at Jose Martí International Airport in Havana when he was planning to leave the country. He reportedly was distributing communications equipment (including satellite phone equipment) to Jewish organizations in Cuba.

The head of Cuba's National Assembly, Ricardo Alarcon, asserted in January 2010, that the contractor was working for American intelligence, but U.S. officials strongly denied the accusation. A State Department spokesman maintained that the contractor "is not associated with our intelligence services" and noted that "Cuba has a history of mischaracterizing what Americans and NGOs in Cuba are doing." According to a statement by DAI, "the detained subcontractor was not working for any intelligence service … he was working with a peaceful, non-dissident civic group—a religious and cultural group recognized by the Cuban government—to improve its ability to communicate with its members across the island and overseas."

Numerous U.S. officials have raised the issue of Alan Gross's detention with the Cuban government, including at the semi-annual bilateral migration talks, and have called for his release. In March 2010, some 40 House Members called for Mr. Gross's release in a letter to the Cuban government, warning that improved relations between the United States and Cuba would not be possible until he is released. The letter maintained that Mr. Gross's work in Cuba with the Jewish community "emanated from his desire to make a positive impact for others of faith on the island." A number of other Members and Senators have also called for Mr. Gross's immediate release. In June 2010, Secretary of State Clinton met with family members of Mr. Gross, and issued a statement expressing deep concern about his welfare. The Secretary maintained that Gross's continued detention "is harming U.S.-Cuba relations," and that his release would be viewed favorably. In September 2010, then-Assistant Secretary of State for Western Hemisphere Affairs Arturo Valenzuela met with Cuban Foreign Minister Bruno Rodriguez in New York to encourage the release of Mr. Gross.

In early December 2010, on the one-year anniversary of Mr. Gross's detention, the State Department again issued a statement calling for his release, and maintaining that "the continued detention of Alan Gross is a major impediment to advancing the dialogue between our two countries." At the fourth round of migration talks held on January 12, 2011, in Havana, the U.S. delegation again raised the issue and called for Mr. Gross's immediate release. The head of the U.S. team at the talks, Principal Deputy Assistant Secretary of State for Western Hemisphere Roberta Jacobson, subsequently met with Gross on January 13. Subsequent press reports maintained that a senior State Department official was "cautiously optimistic" that Gross would be released.

On February 4, 2011, a Cuban court in Havana officially charged Gross with "actions against the independence and territorial integrity of the state" pursuant to Article 91 of Cuba's Penal Code, and the prosecution asked for a 20-year sentence. The two-day trial began on March 4, and on March 12, Gross was convicted and sentenced to 15 years in prison. Gross's lawyer had asked for the Cuban government to release Gross as a humanitarian gesture, maintaining that his health continues to deteriorate and noting that his elderly mother was recently diagnosed with lung cancer, and his daughter was recovering from cancer treatment.

The State Department issued a statement deploring the ruling, and calling on the Cuban government to immediately and unconditionally release him. Secretary of State Clinton maintained that Gross should be released, at the very least, on humanitarian terms, and expressed hope that the Cuban government would do that. In March 2011, former U.S. President Jimmy Carter visited with Gross during a visit to Cuba. A private U.S. delegation visiting Cuba met with Gross in early June 2011, reporting that Gross had lost some 95 pounds according to his own estimation and that while he was in good spirits he is anxious to come home and does not want to be forgotten.

Cuba's Supreme Court heard arguments for Gross's appeal on July 22, 2011, but the court rejected the appeal on August 5, 2011. An Administration statement called on the Cuban government to release Gross "immediately and unconditionally to allow him to return to his family and bring an end the long ordeal that began well over a year ago." In early September 2011, former New Mexico Government Bill Richardson traveled to Cuba in an effort to seek the release of Gross, but was unsuccessful. In a subsequent New York Times interview, Cuban Foreign Minister Bruno Rodriguez reportedly suggested that Cuba and the United States could resolve the Gross case "from a humanitarian point of view and on the basis of reciprocity."

On the second anniversary of Gross's imprisonment in December 2011, 72 House Members from both parties sent a letter to the Cuban Interests Section in Washington, DC, expressing hope that the Cuban government would release Mr. Gross "on humanitarian grounds immediately." The letter also stated that "Mr. Gross's continued incarceration is viewed by Members of Congress, regardless of their political views on Cuba, as a major setback in bilateral relations," and that "it is unlikely any further positive steps can or will be taken by the Obama Administration or this Congress as long as Mr. Gross remains in a Cuban jail." As noted above, the State Department again called for Gross's release on the second anniversary of his imprisonment, and also expressed deep disappointment in late December 2011 that the Cuban government did not include Gross among the 2,900 prisoners released on humanitarian grounds.

In February 2012, investigative press reporting by the Associated Press detailed the various trips undertaken by Alan Gross to Cuba and the equipment that he brought into the country, including a specialized mobile phone chip that reportedly would make it virtually impossible to track satellite phone transmissions. For some observers, the investigative report raises questions about the nature of USAID-supported democracy programs, including whether the agency should be involved in such secretive work that could pose dangers to those implementing such programs. Others stress that it is important for the agency to be able to support democracy programs even in hostile countries.

In April 2012, there had been some hope that Cuba would positively respond to a humanitarian request by Alan Gross to visit his elderly sick mother in the United States for a period of two weeks, but this did not occur. In contrast, a U.S. federal judge in Florida granted René González, one of the "Cuban five" spies, the right to visit his dying brother in Cuba for two weeks. Cuba is now explicitly linking the release of Alan Gross to the release of the "Cuban five," while the United States rejects the linkage, maintaining there is no equivalence between the cases. (For more on the "Cuban five," see " Cuban Spies in the United States " below).

In September 2012, Judy Gross, the wife of Alan Gross, expressed concern in media reports about the health of her husband and fears that he would not survive continued imprisonment. In early October 2012, Judy Gross expressed concern that her husband could have cancer, while the Cuban government maintains that he does not; in late November 2012, the Cuban government maintained that Gross was in normal health and that a biopsy on a lesion showed that he did not have cancer. Gross's lawyer has called for an independent medical examination by a doctor of Gross's choosing.

On November 16, 2012, Alan and Judy Gross filed a suit in U.S. District Court against the U.S. government and his employer, Development Alternatives Inc., alleging that they "failed to disclose adequately to Mr. Gross, both before and after he began traveling to Cuba, the material risks that he faced due to his participation in the project." In late November 2012, Judy Gross urged President Obama to give the case top priority and to designate a special envoy to meet with the Cuban government for her husband's release.

On December 3, 2012, the third anniversary of Gross's imprisonment, the State Department issued a statement again calling for his release, and asked the Cuban government to grant Gross's request to travel to the United States to visit his gravely ill 90-year old mother. The Senate subsequently took action on December 5, 2012, when it approved S.Res. 609 (Moran) by voice vote, marking the first congressional vote on the issue since Gross's detention. With 31 cosponsors, the resolution called for the immediate and unconditional release of Gross, and urged the Cuban government in the meantime to provide all appropriate diagnostic and medical treatment to address the full range of medical issues facing Mr. Gross and to allow him to choose a doctor to provide him with an independent medical assessment. On the same day, Cuba denounced a yet-to-be published ruling by the U.N. Working Group on Arbitrary Detention that reportedly characterizes Alan Gross's detention as arbitrary. Cuban officials have continued to call for "serious talks" with the United States aimed at resolving the Alan Gross case and the case of the "Cuban five" through a prisoner exchange.

Radio and TV Marti

U.S.-government sponsored radio and television broadcasting to Cuba—Radio and TV Martí—began in 1985 and 1990 respectively. According to the Broadcasting Board of Governors (BBG) FY2013 Budget Request , Radio and TV Martí "inform and engage the people of Cuba by providing a reliable and credible source of news and information." The BBG's Office of Cuba Broadcasting "uses a mix of media, including shortwave, medium wave, direct-to-home satellite, flash drives, and DVDs to help reach audiences in Cuba."

Until October 1999, U.S.-government funded international broadcasting programs had been a primary function of the United States Information Agency (USIA). When USIA was abolished and its functions were merged into the Department of State at the beginning of FY2000, the BBG became an independent agency that included such entities as the Voice of America (VOA), Radio Free Europe/Radio Liberty (RFE/RL), Radio Free Asia, and the Office of Cuba Broadcasting (OCB), which manages Radio and TV Marti. OCB is headquartered in Miami, FL. Legislation in the 104 th Congress ( P.L. 104-134 ) required the relocation of OCB from Washington, DC, to south Florida. The move began in 1996 and was completed in 1998.

Radio Martí broadcasts on short and medium wave (AM) channels for 24 hours six days per week, and for 18 hours one day per week utilizing transmission facilities in Marathon, FL, and Greenville, NC, according to the BBG. It also transmits to Cuba 24 hours daily through Hispasat satellite television and the internet.

TV Martí programming has been broadcast through multiple transmission methods over the years. From its beginning in 1990 until July 2005, it was broadcast via an aerostat (blimp) from facilities in Cudjoe Key, Florida for four and one-half hours daily, but the aerostat was destroyed by Hurricane Dennis. From mid-2004 until 2006, TV Martí programming was transmitted for several hours once a week via an airborne platform known as Commando Solo operated by the Department of Defense utilizing a C-130 aircraft. In August 2006, OCB began to use contracted private aircraft to transmit prerecorded TV Martí broadcasts six days weekly, and by late October 2006 the OCB inaugurated an aircraft-broadcasting platform known as AeroMartí with the capability of transmitting live broadcasts. OCB currently uses two privately contracted airplanes for AeroMartí to transmit broadcasts two and one-half hours for five days weekly. Broadcasts are also transmitted via the internet and satellite television.

In September 2011, the BBG awarded a contract to a Maryland firm to design and operate a text messaging system that can distribute up to 24,000 messages per week from OCB broadcasters to mobile phone users in Cuba, including the use of techniques to circumvent censorship. (Cuba has complained that the system would be able to flood Cuban cellular telephone users in open violation of Cuban laws and international agreements.)

Funding for Cuba Broadcasting

From FY1984 through FY2011, about $668 million was spent for broadcasting to Cuba. In recent years, funding amounted to $29.630 million in FY2010, $28.416 million in FY2011, and an estimated $28.062 million in FY2012. The FY2013 request is for $23.594 million.

FY2011. The BBG requested $29.179 million for Cuba broadcasting in FY2011, about $1 million less than that appropriated in FY2010. The Senate version of the State Department and Foreign Operations appropriations measure, S. 3676 , reported by the Senate Appropriations Committee on July 29, 2010 ( S.Rept. 111-237 ), recommended $28.789 million for broadcasting to Cuba ($390,000 less than the request of $29.179 million). In the report to the bill, the committee also stated that it did not support closing the Greenville Station in North Carolina that transmits the Cuba broadcasts, expanding TV Martí's transmission on DirecTV, or expanding and renovating the TV Martí studio until the Broadcasting Board of Governors submits a multi-year strategic plan for broadcasting to Cuba. Congress did not complete final action on FY2011 appropriations until April 2011 when it approved a full-year appropriations measure ( P.L. 112-10 ). According to the BBG, enacted actual FY2011 funding for Cuba broadcasting amounted to $28.416 million.

FY2012. The Administration requested $28.475 million for Cuba broadcasting in FY2012. The Senate Appropriations Committee version of the FY2012 State Department, Foreign Operations, and Related Programs Appropriations measure, S. 1601 ( S.Rept. 112-85 ), recommended $28.181 million in funding for Cuba broadcasting, $294,000 less than the request. In contrast, a draft House Appropriations Committee report and bill (marked up by the House Appropriations Committee's Subcommittee on State, Foreign Operations, and Related Programs on July 27, 2011) recommended $30.175 million for Cuba broadcasting, $1.7 million more than the request. (See the draft committee report, available at http://appropriations.house.gov/UploadedFiles/FY12-SFOPSCombinedReport-CSBA.pdf .) In final FY2012 appropriations action in the FY2012 Consolidated Appropriations Act ( H.R. 2055 , P.L. 112-74 ), Congress approved full funding of the Administration's $28.475 million request for broadcasting to Cuba. The BBG's estimate for FY2012 funding is $28.062 million.

FY2013. The Administration requested $23.594 million for Cuba broadcasting in FY2013, almost $4.5 million lower than FY2012 funding. According to the BBG's budget request, program reductions are possible because of OCB's planned streamlining in the planning and execution of news coverage and reliance on additional technical support from the BBG's International Broadcasting Bureau.

The Senate Appropriations Committee-reported FY2013 State Department, Foreign Operations, and Related Programs Appropriations Act, S. 3241 ( S.Rept. 112-172 ), would have provided $23.4 million ($194,000 less than the Administration's request), while the House Appropriations Committee-reported bill, H.R. 5857 ( H.Rept. 112-494 ), would have provided $28.062 million ($4.468 million more than the Administration's request and the same amount provided in FY2012). As already noted, Congress did not complete action FY2013 appropriations, but in September 2012 it approved a continuing appropriations resolution ( H.J.Res. 117 , P.L. 112-175 ) that continues FY2013 funding through March 27, 2013, at the same rate for projects and activities in FY2012 plus an across-the-board increase of 0.612%.

Additional Legislation in the 112 th Congress. Aside from annual spending bills, two bills were introduced in the 112 th Congress, S. 476 (Pryor) and H.R. 1317 (McCollum), that would have discontinued Radio and TV Martí broadcasts to Cuba by repealing the original authorization legislation for both programs, the Radio Broadcasting to Cuba Act and the Television Broadcasting to Cuba Act. In addition, during House consideration of H.R. 1 , the FY2011 Full-Year Continuing Appropriations Act, two Cuba-related amendments were submitted—Amendment No. 51 (McCollum) and Amendment No. 369 (Flake), both printed in the Congressional Record on February 14, 2011—that would have eliminated funding for Radio and TV Marti, but the amendments were never considered.

Controversies

Both Radio and TV Martí have at times been the focus of controversies, including questions about adherence to broadcast standards. There have been various attempts over the years to cut funding for the programs, especially for TV Martí, which has not had much of an audience because of Cuban jamming efforts. In December 2006, press reports alleged significant problems in the OCB's operations, with claims of cronyism, patronage, and bias in its coverage. In February 2007, the former director of TV Martí programming pled guilty in U.S. federal court to receiving more than $100,000 in kickbacks over a three-year period from a vendor receiving OCB contracts.

Over the years, there have been various government studies and audits of the OCB, including investigations by the GAO, by a 1994 congressionally established Advisory Panel on Radio and TV Martí, by the State Department Office Inspector General (OIG) in 1999, and by the combined State Department/BBG Office Inspector General in 2003 and 2007.

In July 2008, GAO issued a report that criticized OCB's practices in awarding two contracts to Radio Mambí and TV Azteca as lacking discipline required to ensure transparency and accountability. According to GAO, the approach for awarding the Radio Mambí and TV Azteca contracts did not reflect sound business practices.

In January 2009, GAO issued a report asserting that the best available research suggests that Radio and TV Martí's audience is small, and cited telephone surveys since 2003 showing that less than 2% of respondents reported tuning in to Radio or TV Martí during the past week. With regard to TV Martí viewership, according to the report, all of the IBB's telephone surveys since 2003 show that less than 1% of respondents said that they had watched TV Martí during the past week. According to the GAO report, the IBB surveys show that there was no increase in reported TV Martí viewership following the beginning of AeroMartí and DirecTV satellite broadcasting in 2006.The GAO report also cited concerns with adherence to relevant domestic laws and international standards, including the domestic dissemination of OCB programming, inappropriate advertisements during OCB programming, and TV Martí's interference with Cuban broadcasts. GAO testified on its report in a hearing held by the House Subcommittee on International Organizations, Human Rights, and Oversight of the Committee on Foreign Affairs on June 17, 2009.

In April 2010, the Senate Foreign Relations Committee majority issued a staff report that concluded that Radio and TV Martí "continue to fail in their efforts to influence Cuban society, politics, and policy." The report cited problems with adherence to broadcast standards, audience size, and Cuban government jamming. Among its recommendations, the report called for the IBB to move the Office of Cuba Broadcasting back to Washington and integrate it fully into the Voice of America.

In December 2011, GAO issued a report examining the extent to which the BBG's strategic plan for broadcasting required by the conference report to the FY2010 Consolidated Appropriations measure ( H.Rept. 111-366 to H.R. 3288 / P.L. 111-117 ) met the requirements established in the legislation. As described in the conference report, the BBG strategic plan was required to include (1) an analysis of the current situation in Cuba and an allocation of resources consistent with the relative priority of broadcasting to Cuba as determined by the annual Language Service Review and other factors, including input form the Secretary of State on the relative U.S. interest of broadcasting to Cuba; (2) the estimated audience sizes in Cuba for Radio and TV Martí and the sources and relative reliability of the data on which such estimates are based; (3) the annual operating cost (and total cost over the life of the contract) of any and all types of TV transmission and the effectiveness of each in increasing such audience size; (4) the principal obstacles to increasing such audience size; (5) an analysis of other options for disseminating news and information to Cuba, including DVDs, the Internet, and cell phones and other handheld electronic devices and a report on the cost effectiveness of each; and (6) an analysis of the program efficiencies and effectiveness that can be achieved through shared resources and cost saving opportunities in radio and television production between Radio and TV Martí and the Voice of America.

GAO found that the BBG's strategic plan lacked key information. Of the six requirements set forth in the conference report, the GAO found that the BBG's strategic plan fully addressed item (4) regarding the principal obstacles to increasing audience sized, but only partially addressed the other five items called for by Congress. The GAO report stated that while the BBG faces challenges obtaining some of the information, such as audience size, it can develop and provide more information to assist Congress, including an analysis of the cost savings opportunities of sharing resources between Radio and TV Martí and the Voice of America's Latin America Division.

Another controversy that occurred in early May 2012 involved an editorial by OCB Director Carlos García-Pérez in which he strongly criticized Cuban Cardinal Jaime Ortega and referred to the Cardinal as a "lackey" of the Cuban government. As noted above (see " March 2012 Visit of Pope Benedict "), the strong language was criticized by several Members of Congress, who called for the Administration to reject the comments against Cardinal Ortega.

The editorial raises significant questions about the editorial policy of OCB as well as OCB's adherence to broadcast standards. BBG's Director of Communications and External Affairs Lynne Weil maintains that such "editorials, unless otherwise stated, represent the views of the broadcasters only and not necessarily those of the U.S. government." Yet such a controversial editorial authored by the director of OCB could easily lead one to conclude that the views articulated were those of the U.S. government. Questions for U.S. policymakers to consider include the following: What exactly is the editorial policy of OCB and who should be presenting the editorials? Should OCB be required to follow editorial guidelines similar to those of the Voice of America, where editorials express the policies of the U.S. government? Should OCB be presenting editorials that take sides in controversial debates occurring within the Cuban dissident community?

Migration Issues219

1994 and 1995 Migration Accords

Cuba and the United States reached two migration accords in 1994 and 1995 designed to stem the mass exodus of Cubans attempting to reach the United States by boat. On the minds of U.S. policymakers was the 1980 Mariel boatlift in which 125,000 Cubans fled to the United States with the approval of Cuban officials. In response to Fidel Castro's threat to unleash another Mariel, U.S. officials reiterated U.S. resolve not to allow another exodus. Amid escalating numbers of fleeing Cubans, on August 19, 1994, President Clinton abruptly changed U.S. migration policy, under which Cubans attempting to flee their homeland were allowed into the United States, and announced that the U.S. Coast Guard and Navy would take Cubans rescued at sea to the U.S. naval base at Guantanamo Bay, Cuba. Despite the change in policy, Cubans continued fleeing in large numbers.

As a result, in early September 1994, Cuba and the United States began talks that culminated in a September 9, 1994, bilateral agreement to stem the flow of Cubans fleeing to the United States by boat. In the agreement, the United States and Cuba agreed to facilitate safe, legal, and orderly Cuban migration to the United States, consistent with a 1984 migration agreement. The United States agreed to ensure that total legal Cuban migration to the United States would be a minimum of 20,000 each year, not including immediate relatives of U.S. citizens. In a change of policy, the United States agreed to discontinue the practice of granting parole to all Cuban migrants who reach the United States, while Cuba agreed to take measures to prevent unsafe departures from Cuba.

In May 1995, the United States reached another accord with Cuba under which the United States would parole the more than 30,000 Cubans housed at Guantanamo into the United States, but would intercept future Cuban migrants attempting to enter the United States by sea and would return them to Cuba. The two countries would cooperate jointly in the effort. Both countries also pledged to ensure that no action would be taken against those migrants returned to Cuba as a consequence of their attempt to immigrate illegally. On January 31, 1996, the Department of Defense announced that the last of some 32,000 Cubans intercepted at sea and housed at Guantanamo had left the U.S. Naval Station, most having been paroled into the United States.

Coast Guard Interdictions

Since the 1995 migration accord, the U.S. Coast Guard has interdicted thousands of Cubans at sea and returned them to their country, while those deemed at risk for persecution have been transferred to Guantanamo and then found asylum in a third country or eventually the United States. Those Cubans who reach shore are allowed to apply for permanent resident status in one year, pursuant to the Cuban Adjustment Act of 1966 (P.L. 89-732). In short, most interdictions, even in U.S. coastal waters, result in a return to Cuba, while those Cubans who touch shore are allowed to stay in the United States. This so-called "wet foot/dry foot" policy has been criticized by some as encouraging Cubans to risk their lives in order to make it to the United States and as encouraging alien smuggling. Others maintain that U.S. policy should welcome those migrants fleeing communist Cuba whether or not they are able to make it to land.

The number of Cubans interdicted at sea by the U.S. Coast Guard rose from 666 in FY2002 to a high of 2,868 in FY2007. In the three subsequent years, maritime interdictions declined significantly to 422 by FY2010 (see Figure 7 ). Major reasons for the decline were reported to include the U.S. economic downturn, more efficient coastal patrolling, and more aggressive prosecution of migrant smugglers.

In FY2011 and FY2012, however, the number of Cubans interdicted by the Coast Guard increased respectively to 985 and 1,275. Speculation on the reasons for the increase include Cuba's deteriorating economic and political situation; the Coast Guard's more efficient methods of interdiction; and the easing of the economic situation in the United States, making it easier for the payment of fees to migrant smugglers. For FY2013, the number of Cubans interdicted was 232 as of January 14, 2013, according to Coast Guard statistics.

U.S. prosecution against migrant smugglers in Florida has increased in recent years with numerous convictions. There have been several violent incidents in which Cuban migrants have brandished weapons or in which Coast Guard officials have used force to prevent Cubans from reaching shore. In late December 2007, a Coast Guard official in Florida called on the local Cuban American community to denounce the smuggling and stop financing the trips that are leading to more deaths at sea. In July 2010, three Cuban nationals (two living in Florida and one in Mexico) were charged in a U.S. federal court in Tampa with conspiracy, kidnapping, and extortion involving the abduction of Cuban migrants in Mexico. The Cuban government also has taken forceful action, including prison sentences of up to three years against those engaging in alien smuggling.

Arrivals of Unauthorized Cubans to the United States

Despite the U.S. Coast Guard's maritime interdiction program, thousands of unauthorized Cubans reach the United States each year, either by boat or at land ports of entry. U.S. Border Patrol apprehensions (largely coastal Florida) of unauthorized Cubans were 910 in FY2009, 712 in FY2010, and 959 in FY2011. These statistics are significantly lower than the FY2005-FY2008 period when Border Patrol apprehensions of Cubans averaged over 3,700 each year.

Arrival of unauthorized Cubans at U.S. ports of entry—the majority from Mexico—averaged over 7,400 each year from FY2009-FY2011, although it showed a slightly rising trend from 7,053 in FY2009 to 7,798 in FY2011. Comparatively, however, the statistics are much lower than the average of almost 11,000 Cubans arriving at ports of entry annually from FY2005-FY2008. In October 2008, Mexico and Cuba negotiated a migration accord in an attempt to curb the irregular flow of migrants through Mexico. The agreement calls for Mexico to accept all unauthorized immigrants detained by Mexican authorities.

Cuba Alters Its Policy Regarding Exit Permits

On October 16, 2012, the Cuban government announced that it would be updating its migration policy, effective January 14, 2013, by eliminating the long-standing policy of requiring an exit permit and letter of invitation from abroad for Cubans to travel abroad. Cubans would be able to travel abroad with just an updated passport and a visa issued by the country of destination, if required. Under the change in policy, Cubans could travel abroad for up to two years without forgoing their rights as Cuban citizens. The practice of requiring an exit permit has been extremely unpopular in Cuba and the government had been considering doing away with the practice for some time.

On its face, Cuba's action can be viewed as a human rights improvement, but how significant that improvement is will depend on how the law is implemented. The Cuban government said that it would fight against "brain drain," and that the new policy would not apply to scientists, athletes, and other professionals. In early January 2013, however, the Cuban government announced that the new travel policy would also apply to health care professionals, including doctors. It remains to be seen whether the government will allow political dissidents to leave the country and return.

When the new policy went into effect on January 14, 2013, thousands of Cubans lined up at government migration offices and travel agencies. Travel under the new policy will require an updated passport as well as any visas required by the receiving countries. While most countries require visas for Cubans, several Caribbean countries do not. Ecuador, which had not required a visa for Cubans visiting up to 90 days, announced on January 15, 2013, that it would require Cubans who wanted to visit to provide a letter of invitation from a legal resident in Ecuador with a commitment to cover expenses for the visiting Cuban(s).

A U.S. State Department spokesman said that it welcomes any changes that would allow Cubans to depart from and return to their country freely. According to the State Department, Cuba's announced change is consistent with the Universal Declaration of Human Rights in that everyone should have the rights to leave any country, including their own, and return. At the same time, however, Assistant Secretary of State for Western Hemisphere Affairs has cautioned that it is uncertain yet how the changes are to be implemented. She raised questions regarding whether Cuba would impose some controls on passports and whether everyone would be free to travel.

Legislative Initiatives Regarding Cuban Migration

In the 112 th Congress, two legislative initiatives were introduced, H.R. 2771 and H.R. 2831 (Rivera), that would have amended the Cuban Adjustment Act of 1966 with the objective of curbing travel to Cuba by Cubans who have recently emigrated to the United States. H.R. 2771 would have amended the CAA to increase to five years the period during which a Cuban national must be physically present in the United States in order to qualify for adjustment of status to that of a permanent resident. The legislation also would have provided that an alien shall be ineligible for adjustment to permanent resident status if the alien returns to Cuba after admission or parole into the United States before becoming a U.S. citizen. H.R. 2831 would also have provided that an alien from Cuba shall be ineligible for adjustment to permanent resident status under the CAA if he or she returns to Cuba before becoming a U.S. citizen. The House Committee on the Judiciary, Subcommittee on Immigration on Policy Enforcement, held a hearing on H.R. 2831 on May 31, 2012. (Also see discussion above on " U.S. Restrictions on Travel and Remittances .")

Migration Talks

Semi-annual U.S.-Cuban talks alternating between Cuba and the United States had been held regularly on the implementation of the 1994 and 1995 migration accords until they were suspended after the State Department cancelled the 20 th round of talks scheduled for January 2004. At the time, the State Department maintained that Cuba refused to discuss five issues identified by the United States: (1) Cuba's issuance of exit permits for all qualified migrants; (2) Cuba's cooperation in holding a new registration for an immigrant lottery; (3) the need for a deeper Cuban port used by the U.S. Coast Guard for the repatriation of Cubans interdicted at sea; (4) Cuba's responsibility to permit U.S. diplomats to travel to monitor returned migrants; and (5) Cuba's obligation to accept the return of Cuban nationals determined to be inadmissible to the United States. In response to the cancellation of the talks, Cuban officials maintained that the U.S. decision was irresponsible and that Cuba was prepared to discuss all of the issues raised by the United States.

Under the Obama Administration, Cuba and the United States agreed to restart the biannual migration talks (in addition to talks on direct mail service), and since mid-2009, there have been four rounds of talks. For the first three rounds, Principal Deputy Assistant Secretary of State for Western Hemisphere Affairs Craig Kelly headed the U.S. team while Deputy Foreign Minister Dagoberto Rodriguez led the Cuban team. The first round was held on July 14, 2009, in New York City. The State Department outlined its four objectives in the talks: ensuring that the U.S. Interests Section in Havana is able to operate effectively; gaining access to a deep-water port for the safe return of Cuban migrants picked up at sea; ensuring that U.S. diplomats are able to monitor the welfare of those Cubans who are sent back to the island; and gaining Cuban government acceptance of Cubans who are excluded from the United States because they have committed crimes. Cuba reportedly proposed a new immigration agreement and more effective cooperation to combat alien smuggling, and also made known its opposition to the so-called "wet foot/dry foot policy."

The second round of talks was held on February 19, 2010, in Havana. According to the Department of State, "engaging in these talks underscores our interest in pursuing constructive discussions with the government of Cuba to advance U.S. interests of mutual concern." It maintained that the United States views the talks "as an avenue to achieve practical, positive results that contribute to the full implementation of the [Migration] Accords and to the safety of citizens of both countries." Cuba's Ministry of Foreign Affairs maintained that the meeting took place in an atmosphere of respect and included discussion of some aspects of a new draft migration accord proposed by Cuba at the in the July 2009 round of talks. Cuba also reportedly raised the issue of improving and expanding the Cuban Interests Section in Washington. During the talks, U.S. officials urged Cuban officials to provide political prisoner Orlando Zapata Tamayo all necessary medical care, and also raised the case of USAID subcontractor Alan Gross detained in Cuba since early December 2009 and called for his release.

The third round of talks was held on June 18, 2010, in Washington, DC. In addition to migration issues, the U.S. team separately raised the case of Alan Gross and called for his immediate release. A day before the meeting, Secretary of State Clinton met with family members of Alan Gross and issued a statement expressing deep concern about his welfare and poor health and maintaining that his "continued detention … is harming U.S.-Cuba relations."

A fourth round of migration talks took place in Havana on January 12, 2011, with the U.S. side led by Principal Deputy Assistant Secretary of State for Western Hemisphere Roberta Jacobson and the Cuban side again led by Deputy Foreign Minister Dagoberto Rodríguez. The State Department maintained that the talks were productive, covering a broad range of topics of mutual interest, including the importance of continued U.S. commitment to promote safe, legal, and orderly migration. The Cuban delegation maintained the meeting recognized the significant reduction in risky illegal departures from Cuba because of efforts by both countries to deal with migrant smuggling and illegal migration. Dagoberto Rodríguez maintained that "it was a fruitful exchange aimed at moving on to the establishment of more effective mechanisms of cooperation to combat illegal migrant smuggling." The U.S. delegation again raised the issue of the continued detention of Alan Gross and called for his immediate release.

Cuban Spies in the United States

Over the past decade, a number of individuals, including three U.S. government officials, have been convicted in the United States on charges involving spying for Cuba. Most recently in June 2009, the FBI arrested a retired State Department employee and his wife, Walter Kendall Myers and Gwendolyn Steingraber Myers, for spying for Cuba for three decades. The two were accused of acting as agents of the Cuban government and of passing classified information to the Cuban government. In November 2009, the Myerses pled guilty to the spying charges, and in July 2010 Kendall Myers was sentenced to life in prison while Gwendolyn Myers was sentenced to 81 months.

In May 2003, the Bush Administration ordered the expulsion of 14 Cuban diplomats (7 from New York and 7 from Washington, DC), maintaining that they were involved in monitoring and surveillance activities.

On September 21, 2001, Defense Intelligence Agency (DIA) analyst Ana Montes was arrested on charges of spying for the Cuban government. Montes reportedly supplied Cuba with classified information about U.S. military exercises and other sensitive operations. Montes ultimately pled guilty to spying for the Cuban government for 16 years, during which she divulged the names of four U.S. government intelligence agents working in Cuba and information about a "special access program" related to U.S. national defense. She was sentenced in October 2002 to 25 years in prison in exchange for her cooperation with prosecutors as part of a plea bargain. In response to the espionage case, the State Department ordered the expulsion of four Cuban diplomats (two from Cuba's U.N. Mission in New York and two from the Cuban Interests Section in Washington, DC) in November 2002.

In June 2001, five members of the so-called "Wasp Network" who were originally arrested in September 1998 were convicted on espionage charges by a U.S. Federal Court in Miami. Sentences handed down for the so-called "Cuban five" in December 2001 ranged from 15 years to life in prison for three of the five. (In addition to the five, a married couple in the "Wasp Network" was sentenced in January 2002 to prison terms of seven years and three and one-half years for their participation in the spy network.) The group of five Cuban intelligence agents—Gerardo Hernández, Ramón Labañino, Antonio Guerrero, Fernando González, and René González—penetrated Cuban exile groups and tried to infiltrate U.S. military bases. The Cuban government vowed to work for the return of the "Cuban five" who have been dubbed "Heroes of the Republic" by Cuba's National Assembly. In December 2008, Cuban President Raúl Castro offered to exchange some imprisoned Cuban political dissidents for the "Cuban five," an offer that was rejected by the State Department, which maintained that the dissidents should be released immediately without any conditions.

In June 2009, the U.S. Supreme Court chose not to hear an appeal of the case of the "Cuban five" in which their lawyers were asking for a new trial outside Miami before an unbiased jury. However, later in 2009, sentences for three of the five were reduced: Antonio Guerrero had his life sentence reduced to almost 22 years; Ramón Labañino had his life sentence reduced to 30 years; and Fernando González had his 19-year sentence reduced to 18 years. Gerardo Hernández, convicted of murder conspiracy for his role in the 1996 Brothers to the Rescue shootdown, is serving two life sentences. Finally, René González, who received a 15-year sentence, was released from prison in early October 2011, but still has to serve three years of probation; a judge has ruled that he must serve it in the United States. Cuba had asked for González to be returned to Cuba upon his release from prison so that he could be reunited with his wife and family for humanitarian reasons. In late March 2012, González was allowed by a federal judge in Florida to visit his dying brother in Cuba for a period of two weeks, after which he returned to the United States.

Legislative Initiatives in the 112th Congress

Enacted Measures

P.L. 112-10 ( H.R. 1473 ). Department of Defense and Full-Year Continuing Appropriations Act, 2011. Continued funding in FY2011 for Cuba broadcasting (Radio and TV Martí) and Cuba democracy programs. Continued provision in the Consolidated Appropriations Act, 2010 ( P.L. 111-117 ), including a continuation during FY2011 of the clarifying provision regarding "payment of cash in advance" for licensed agricultural and medical exports to Cuba. Both Senate and House passed the bill on April 14, 2011; President signed into law April 15, 2011.

P.L. 112-74 ( H.R. 2055 ). Consolidated Appropriations Act, 2012. The bill was originally introduced as the FY2012 Military Construction, Veterans Affairs, and Related Agencies Appropriations bill in May 2011, and subsequently approved by the House and Senate, respectively, in June and July 2011. On December 15, 2011, the bill became the vehicle for a FY2012 "megabus" appropriations measure, the Consolidated Appropriations Act, 2012, that combined nine full-year appropriations bills. The conference report for the bill ( H.Rept. 112-331 ) was filed on December 15, 2011, and approved by the House and Senate on December 16 and 17, 2011, respectively. The President signed the measure into law on December 23, 2011.

As enacted, the measure continued FY2012 funding for Cuba broadcasting and Cuba democracy funding. The conference report to the bill provided full funding for the Administration's request of $28.475 million for Cuba broadcasting, and supported the Administration's request for $20 million in ESF for Cuba democracy and human rights funding.

Before the approval of the measure, a legislative battle ensued over the potential inclusion of two Cuba provisions. The first had been in the House Appropriations Committee-approved version of the FY2012 Financial Services Appropriations bill, H.R. 2434 , and would have rolled back to January 2009 the Obama Administration's actions easing restrictions on remittances and on family travel. The second provision also had been in H.R. 2434 , as well as in the Senate Appropriations Committee-approved version of the FY2012 Financial Services Appropriations bill, S. 1573 , and would have continued to clarify—for the third year in a row—the definition of "payment of cash in advance" for U.S. agricultural and medical exports to Cuba so that the payment would be due upon delivery in Cuba as opposed to being due before the goods left U.S. ports. (The text of these two Cuba provisions were also included in Division C, Section 632 and Section 634, of H.R. 3671 , a "megabus" appropriations bill introduced by House Republicans on December 14, 2011.)

Ultimately congressional leaders agreed to not include the two Cuba provisions in H.R. 2055 . The White House reportedly had exerted strong pressure not to include the Cuba provision that would have rolled back the Administration's easing of restrictions on travel and remittances. Dropping the second provision on the definition of "payment of cash in advance" for U.S. agricultural and medical products appears to have been a political tradeoff made to compensate for the travel rollback provision being dropped.

P.L. 112-175 ( H.J.Res. 117 ). Continuing Appropriations Resolution, FY2013. Continues funding for FY2013 for all 12 regular appropriations (including the State, Foreign Operations, and Related Programs Appropriations bill) though March 27, 2013, at the same rate for projects and activities in FY2012 plus an across-the-board increase of 0.612%, although specific country accounts are left to the discretion of responsible agencies. This continues funding for Cuba democracy programs and Cuba broadcasting through March 27, 2013, but the 113 th Congress will need to address foreign aid appropriations for the balance of FY2013. Introduced September 10, 2012; House passed (329-91) September 13 and Senate passed (62-30) September 22. Signed into law September 28, 2012.

S.Res. 366 (Menendez). Honors the life of dissident and democracy activist Wilman Villar Mendoza and condemns the Castro regime for the death of Wilman Villar Mendoza. Introduced February 1, 2012; Senate passed by Unanimous Consent February 1, 2012.

S.Res. 525 (Nelson , FL ). As approved, the resolution: recognizes and honors the life and exemplary leadership of Oswaldo Payá; offers heartfelt condolences to the family, friends, and loved ones of Payá; praises the bravery of Payá and his colleagues for collecting more than 11,000 signatures in support of the Varela Project; calls on the United States to continue policies that promote respect for the fundamental principles of religious freedom, democracy, and human rights in Cuba; calls on the Cuban government to provide its citizens with internationally accepted standards for civil and human rights and the opportunity to vote in free and fair elections; calls on the Cuban government to allow an impartial, third-party investigation into the circumstances surrounding the death of Payá; and condemns the Cuban government for the detention of nearly 50 pro-democracy activists following the memorial service for Oswaldo Payá. Introduced July 24, 2012; Senate passed, as amended by S.Amdt. 2740 (proposed by Senator Lieberman for Senator Nelson, FL), by Unanimous Consent July 31, 2012.

S.Res. 609 (Moran). Calls for the immediate and unconditional release of Alan Gross, and urges the Cuban government in the meantime to provide all appropriate diagnostic and medical treatment to address the full range of medical issues facing Mr. Gross and to allow him to choose a doctor to provide him with an independent medical assessment. Introduced and Senate passed by voice vote December 5, 2012.

Additional Initiatives

H.R. 1 (Rogers). Full-Year Continuing Appropriations Act, 2011. House passed February 19, 2011. Two Cuba-related amendments submitted—Amendment No. 51 (McCollum) and Amendment No. 369 (Flake), both printed in the Congressional Record on February 14, 2011—would have eliminated funding for Radio and TV Marti, but were never considered.

H.R. 255 (Serrano). Cuba Reconciliation Act. Would have lifted the trade embargo on Cuba. Introduced January 7, 2011; referred to Committees on Foreign Affairs, Ways and Means, Energy and Commerce, Financial Services, Judiciary, Oversight and Government Reform, and Agriculture.

H.R. 256 (Serrano). Baseball Diplomacy Act. Would have waived certain prohibitions with respect to nationals of Cuba coming to the United States to play organized professional baseball. Introduced January 7, 2011; referred to Committees on Foreign Affairs and Judiciary.

H.R. 372 (Buchanan). Would have amend the Outer Continental Shelf Act to authorize the Secretary of the Interior to deny leases and permits to persons who engage in activities with the government of any foreign country that is subject to any sanction or an embargo established by the U.S. government. Introduced January 20, 2011; referred to the Committee on Natural Resources.

H.R. 380 (Lee). Pursuit of International Education (PIE) Act of 2011. Would have provide that no funds made available to the Department of the Treasury may be used to implement, administer, or enforce regulations to require specific licenses for travel-related transactions directly related to educational activities in Cuba. Introduced January 20, 2011; referred to the Committee on Foreign Affairs.

H.R. 833 (Conaway) . Agricultural Export Enhancement Act of 2011. Would have removed obstacles to legal sales of U.S. agricultural commodities to Cuba, as authorized by the Trade Sanctions Reform and Export Enhancement Act of 2000. Section 2 would have defined the term "payment of cash in advance" under TSRA as "the payment by the purchaser of an agricultural commodity or product and the receipt of such payment by the seller" prior to the transfer of title and the release of control of such commodity or product to the purchaser. Section 3 would have authorized direct transfers between Cuban and U.S. financial institutions for product sales under TSRA. Introduced February 28, 2011; referred to the Committees on Financial Services, Foreign Affairs, and Agriculture.

H.R. 1317 (McCollum). Stop Wasting Taxpayer Money on Cuba Broadcasting Act. Would have repealed the Radio Broadcasting to Cuba Act (22 USC 1465 et seq.) and the Television Broadcasting to Cuba Act (22 USC 1465aa et seq.). Introduced April 1, 2011; referred to the Committee on Foreign Affairs.

H.R. 1886 (Rangel). Export Freedom to Cuba Act. Would have prohibited restrictions on travel to Cuba. Introduced May 12, 2011; referred to the House Foreign Affairs Committee.

H.R. 1887 (Rangel). Free Trade with Cuba Act. Would have lifted the trade embargo by repealing and amending certain laws. Introduced May 12, 2011; referred to the Committee on Foreign Affairs, and in addition to the Committees on Ways and Means, Energy and Commerce, the Judiciary, Financial Services, Oversight and Government Reform, and Agriculture.

H.R. 1888 (Rangel). Promoting American Agricultural and Medical Exports to Cuba Act of 2011. Would have facilitated the export of U.S. agricultural products to Cuba, removed impediments to the export of medical devices and medicines to Cuba, and prohibited restrictions on travel to Cuba. Introduced May 12, 2011; referred to Committee on Foreign Affairs, and in addition to the Committees on Ways and Means, the Judiciary, Agriculture, and Financial Services.

H.R. 2047 (Ros-Lehtinen). Caribbean Coral Reef Protection Act of 2011. Would have amended the Cuban Liberty and Democratic Solidarity Act to exclude from the United States aliens who invest $1 million or more that contributes to the enhancement of the ability of Cuba to develop petroleum resources located off its coast. Would also have required the imposition of sanctions if the President determined that a person had invested $1 million or more in any 12-month period since January 10, 2005, that contributes to the enhancement of the ability of Cuba to develop petroleum resources off its coast. Introduced May 26, 2011; referred to Committee on the Judiciary, and in addition to the Committees on Foreign Affairs, Financial Services, and Oversight and Government Reform.

H.R. 2434 (Emerson)/ S. 1573 (Durbin). FY2012 Financial Services and General Government Appropriations. H.R. 2434 introduced July 7, 2011, and reported by the House Appropriations Committee ( H.Rept. 112-136 ). S. 1573 introduced September 15, 20111, and reported by the Senate Appropriations Committee ( S.Rept. 112-79 ). Both bills had a provision (§618 of H.R. 2434 and §620 of S. 1573 ) that would have continued to clarify the definition of "payment of cash in advance" for U.S. agricultural and medical sales to Cuba to "be interpreted as payment before the transfer of title to, and control of, the exported items to the Cuban purchaser." The Senate bill had another Cuba provision (§624) that would have prohibited restrictions on direct transfers from a Cuban financial institution to a U.S. financial institution in payment for licensed agricultural and medical exports to Cuba. The House bill had another Cuba provision (§901) that would have repealed any amendments to certain sections of the Cuban Assets Control Regulations relating to family travel ( 31 CFR 515.560(a)(1) and 31 CFR 515.561 ), carrying remittances to Cuba ( 31 CFR 515.560(c)(4)(i) ), and sending remittances to Cuba ( 31 CFR 515.570 ) made since January 2009. The provision would have rolled back President Obama's easing of restrictions on family travel and remittances in 2009 and the President's easing of restrictions on remittances for non-family members and religious institutions in 2011.

None of the Cuba provision in H.R. 2434 or S. 1573 were included in the FY2012 "megabus" appropriations measure, P.L. 112-74 ( H.R. 2055 ), described above. In November 2011, an attempt to include the Senate version of the Financial Services appropriations measure, S. 1573 , in a "minibus" with two other full-year appropriations measures and a short-term continuing resolution failed in part because of disagreement over the Cuba provision that would have allowed direct transfers from a Cuban financial institution to a U.S. financial institution to pay for U.S. agricultural and medical exports to Cuba.

H.R. 2583 (Ros-Lehtinen). FY2012 Foreign Relations Authorization Act. Introduced July 19, 2011; reported by House Committee on Foreign Affairs ( H.Rept. 112-223 ) July 23, 2011. Section 1126 would have required the President to fully enforce all U.S. regulations as in effect on January 19, 2009, on travel to Cuba, and would have imposed the corresponding penalties against individuals determined to be in violation of such regulations. The provision became part of the bill during the committee's markup on July 21, 2011, when the committee approved (36-6) an amendment offered by Representative Rivera. (The Rivera amendment was a second degree amendment to an amendment offered by Representative Meeks that was subsequently was approved by voice vote.) The intent of the Rivera amendment was to reinstate travel restrictions as they existed under the Bush Administration in January 2009.

H.R. 2771 (Rivera). Would have amended the Cuban Adjustment Act of 1966 (P.L. 89-732) to increase to five years the period during which a Cuban national must be physically present in the United States in order to qualify for adjustment of status to that of a permanent resident. Would also have provided that an alien shall be ineligible for adjustment to permanent resident status if the alien returns to Cuba after admission or parole into the United States. Introduced August 1, 2011; referred to House Committee on the Judiciary.

H.R. 2831 (Rivera). Would have amended the Cuban Adjustment Act of 1966 (P.L. 89-732) to make an alien ineligible for adjustment under the act if the aliens returned to Cuba after admission or parole into the United States. Would have required the Secretary of Homeland Security to rescind the status of an alien who obtained adjustment of status if the alien returned to Cuba before being becoming a U.S. citizen. Introduced August 30, 2011; referred to the Committee on the Judiciary. Subcommittee on Immigration Policy and Enforcement held hearing May 31, 2012 (testimony and webcast available at http://judiciary.house.gov/hearings/Hearings%202012/hear_05312012_3.html ).

H.R. 4135 (Flake). Western Hemisphere Energy Security Act of 2012. The bill would have permitted U.S. companies to participate in hydrocarbon exploration and extraction activities from any portion of foreign maritime exclusive economic zone that is contiguous to the exclusive economic zone of the United States. It also would have allowed for the export of all equipment and travel needed for such activities, and would allow for the importation of hydrocarbon resources from Cuba Introduced March 5, 2012; referred to Committee on Foreign Affairs.

H.R. 4310 (McKeon) / S. 3254 (Levin) . National Defense Authorization Act for FY2013. H.R. 4310 introduced March 29, 2012; House passed (299-120) May 18, 2012. As approved, Section 803 would have prohibited the Department of Defense from contracting for the procurement of goods and services with any person that has business operations with a state sponsor of terrorism. The provision was added to the bill by voice vote during May 17, 2012, House floor consideration. H.Amdt. 1119 (McKeon), an en bloc amendment considering of several amendments, including Amendment No. 94 (Rivera), which became Section 803 of the bill. S. 3254 , introduced June 4, 2012; approved by the Senate on December 4, 2012 and incorporated in H.R. 4310 as an amendment. As approved by the Senate, the bill did not have a similar provision regarding Department of Defense contracting. The conference report to the measure, H.Rept. 112-705 , filed December 18, 2012, did not include the House provision regarding DOD contracting.

H.R. 5857 (Granger)/ S. 3241 (Leahy). FY2013 State Department, Foreign Operations, and Related Programs Appropriations Act, 2013. H.R. 5857 introduced and reported ( H.Rept. 112-494 ) May 25 by the House Committee on Appropriations. S. 3241 introduced and reported ( S.Rept. 112-172 ) by the Senate Committee on Appropriations May 24, 2012.

Both bills would continue the long-standing prohibition on direct funding assistance to the government Cuba, and would require that any assistance to Cuba be provided through the regular notification procedures of the Committees on Appropriations.

The House bill would provide $20 million in ESF ($5 million more than the Administration's request), but would transfer and merge the aid with funds available to the National Endowment for Democracy to promote democracy and strengthen civil society in Cuba. The Senate bill would provide $15 million in ESF for Cuba (the same as the Administration's request), including for humanitarian assistance, support for economic reform, private sector initiatives, democracy, and human rights.

With regard to Cuba broadcasting, the House bill would provide $28.062 million ($4.468 million more than the Administration's request and the same amount provided in FY2012), while the Senate bill would provide $23.4 million ($194,000 less than the Administration's request).

Congress did not finish action on the measure before the beginning of FY2013, but instead approved a continuing appropriation resolution, P.L. 112-175 ( H.J.Res. 117 ) described above, that continues funding for Cuba democracy programs and Cuba broadcasting through March 27, 2013, at the same rate for projects and activities in FY2012 plus an across-the-board increase of 0.612%, although specific country accounts are left to the discretion of responsible agencies. The 113 th Congress will need to address foreign aid appropriations for the balance of FY2013.

H.R. 6067 (Ros-Lehtinen) . Western Hemisphere Security Cooperation Act of 2012. Introduced June 29, 2012; referred to Committees on Foreign Affairs, Judiciary, Financial Services, and Oversight and Government Reform. Included numerous provisions on Cuba, including Section 104, which would have require notifications relating to travel by Cuban government officials within or to the United States; Section 105, which would have imposed visa restrictions and economic sanctions on those involved in facilitating the development of Cuba's offshore petroleum resources (similar to language of H.R. 2047 described above); and Section 201, which would have imposed restrictions on nuclear cooperation with countries assisting the nuclear program of Venezuela or Cuba.

H.Res. 226 (King). Would have called for the immediate extradition or rendering to the United States of convicted felon William Morales and all other fugitives from justice who are receiving safe harbor in Cuba in order to escape prosecution or confinement for criminal offenses committed in the United States. Introduced April 14, 2011; referred to Committee on Foreign Affairs.

H.Res. 536 (Diaz-Balart). Would have condemned the murder of Wilman Villar Mendoza and honor his sacrifice in the cause of freedom for the Cuban people. Introduced February 2, 2012; referred to Committee on Foreign Affairs.

S. 223 (Rockefeller). FAA Air Transportation Modernization and Safety Improvement Act. Senate approved February 17, 2011. S.Amdt. 61 (Rubio) , submitted February 10, 2011, but never considered, would have prohibited an expansion of flights to locations in countries that are state sponsors of terrorism.

S. 405 (Nelson, Bill). Gulf Stream Protection Act of 2011. Section 2 of the bill would have required that if a company that is conducting oil or gas operations off the coasts of Cuba wants to lease drilling rights in the United States, then the company would have to submit an oil response plan for their Cuba operations and would have to demonstrate sufficient financial and other resources to respond to a worst case scenario oil spill in Cuban waters that would affect the waters of the United States. Section 3 of the bill would have required the Secretary of the Interior, within 180 days of the enactment of the bill, to carry out an oil spill risk analysis and planning process for the development and implementation of oil spill response plans for nondomestic oil spills in the Gulf of Mexico. The Secretary of the Interior would have been required, among other things, to consult with the Secretary of State and, to the maximum extent practicable, include recommendations for Congress on a joint contingency plan with the countries of Mexico, Cuba, and the Bahamas to ensure an adequate response to oil spills located in the eastern Gulf of Mexico. Introduced February 17, 2011; referred to the Committee on Energy and Natural Resources.

S. 476 (Pryor). Broadcast Savings Act. Would have discontinued Radio and TV Martí broadcasts to Cuba by repealing the Radio Broadcasting to Cuba Act and the Television Broadcasting to Cuba Act. Introduced March 3, 2011; referred to the Committee on Foreign Relations.

S. 603 (Nelson, FL)/ H.R. 1166 (Issa). Similar, but not identical bills, would have modified the prohibition by U.S. courts of certain rights relating to certain marks, trade names, or commercial names. S. 603 introduced March 16, 2011; referred to the Committee on the Judiciary. H.R. 1166 introduced March 17, 2011; referred to the Committee on the Judiciary.

S. 1601 (Leahy). FY2012 Department of State, Foreign Operations, and Related Programs Appropriations. Introduced September 22, 2011; reported by the Senate Appropriations Committee ( S.Rept. 112-85 ). As reported by the committee, the bill would have provided that $15 million in ESF may be provided for Cuba, including humanitarian and democracy assistance, support for economic reform, private sector initiatives, and human rights. In its report to the bill, the committee maintained that it expected that funds would be made available, and programs carried out, in a transparent manner. The committee also directed that the USAID Administrator provide regular updates to the committee on the number of Cubans who receive assistance and the types of assistance. In the report to the bill, the committee recommended $28.181 million in funding for Cuba broadcasting, $294,000 less than the Administration's request.

A draft House Appropriations Committee report and bill (marked up by the Subcommittee on State, Foreign Operations, and Related Programs on July 27, 2011) would have recommended $20 million in ESF for Cuba, and would have directed that the funds be used only for democracy-building, and not for business promotion, economic reform, social development or other purposes expressly authorized by Section 109(a) of the Cuban Liberty and Democratic Solidarity Act of 1996 ( P.L. 104-114 ). The draft report would also have recommended $30.175 million for Cuba broadcasting, $1.7 million more than the Administration's request. (See the draft committee report, available at http://appropriations.house.gov/UploadedFiles/FY12-SFOPSCombinedReport-CSBA.pdf .)

Ultimately, in the Consolidated Appropriations Act, 2012, ( P.L. 112-74 ; H.Rept. 112-331 ) described above, Congress fully funded the Administration's FY2012 request of $28.475 million for Cuba broadcasting and supported the Administration request of $20 million in ESF for Cuba democracy funding.

S.Res. 140 (Rubio). Would have commemorated the 50 th anniversary of the Bay of Pigs operation and commend members of Assault Brigade 2506. Introduced April 12, 2011; referred to Committee on Foreign Relations.

S.Res. 342 (Rubio). Would have honored the life and legacy of Laura Pollán, a founder of the "Ladies in White" human right group in Cuba. Introduced December 1, 2011; reported by the Committee on Foreign Relations February 14, 2012.

Appendix A. Selected Executive Branch Reports and Web Pages

Background Note, Cuba, State Department Date: November 7, 2011 Full Text: http://www.state.gov/outofdate/bgn/cuba/191090.htm

U.S. Relations with Cuba, Fact Sheet, State Department Date: June 21, 2012 Full Text: http://www.state.gov/r/pa/ei/bgn/2886.htm

Congressional Budget Justificati on for Foreign Operations FY2013 , Annex: Re gional Perspectives (pp. 768-769 of pdf), State Department Date: April 3, 2012 Full Text: http://www.state.gov/documents/organization/185015.pdf

Country Report s on Human Rights Practices 2011 , Cuba, State Department Date: May 24, 2012 Full Text: http://www.state.gov/j/drl/rls/hrrpt/humanrightsreport/index.htm?dynamic_load_id=186505

C ountry Reports on Terrorism 2011 (State Sponsors of Terrorism chapter), State Department Date: July 31, 2012 Full Text : http://www.state.gov/j/ct/rls/crt/2011/195547.htm

Cuba Country Page, State Department Full Text: http://www.state.gov/p/wha/ci/cu/

Cuba Country Page , U.S. Agency for International Development Full Text: http://www.usaid.gov/where-we-work/latin-american-and-caribbean/cuba/our-work

Cuba Sanctions, Treasury Department Full Text: http://www.treasury.gov/resource-center/sanctions/Programs/pages/cuba.aspx

Cuba: What You Need to Know About U.S. Sanctions Against Cuba, Treasury Department, Office of Foreign Assets Control Date: January 24, 2012 Full Text: http://www.treasury.gov/resource-center/sanctions/Programs/Documents/cuba.pdf

International Religious Freedom Report, 2011, Cuba, State Department Date: July 30, 2012 Full Text : http://www.state.gov/j/drl/rls/irf/religiousfreedom/index.htm?dlid=192965#wrapper

International Narcotics Control Strategy Report 201 2 , Vol. I, Cuba (pp. 185-187) , State Department Date: March 2012 Full Text: http://www.state.gov/documents/organization/187109.pdf

Tr afficking in Persons Report 2012 (Cu ba, pp. 133-134 of pdf), State Department Date: June 19, 2012 Full Text: http://www.state.gov/documents/organization/192594.pdf

Appendix B. Earlier Developments in 2012 and 2011

On November 1, 2012, Cuba's Ministry of Foreign Affairs issued a statement denouncing the U.S. Interests Section in Havana for supporting activities to provoke a "regime change" in Cuba, including establishing "illegal Internet connections and networks" and providing training and offering courses. The U.S. Department of State maintained on November 2, 2012 that the U.S. Interests Section in Havana regularly provides computer access and offers free Internet courses to Cubans who sign up because the Cuban government restricts public access to the Internet and prevents its own citizens from getting technology training.

On October 25, 2012, Hurricane Sandy struck eastern Cuban causing significant damage in the provinces of Santiago, Holguin, and Guantanamo. Eleven Cubans were killed in the storm, with damage to over 226,000 homes, including almost 17,000 destroyed. The storm also reportedly did significant damage to Cuba's agricultural sector, including coffee and sugar production.

On October 16, 2012, the Cuban government announced that it would be updating its migration policy, effective January 14, 2013, by eliminating the long-standing policy of requiring an exit permit and letter of invitation for Cubans to travel abroad.

On October 15, 2012, a Cuban court convicted Spanish political youth leader Angel Carromero Barrios of vehicular manslaughter for the accident that claimed the life of human rights activist Oswaldo Payá in July.

On September 13, 2012, the Senate Caucus on International Narcotics Control released a report, Preventing a Security Crisis in the Caribbean , in which Caucus Chairman Senator Feinstein recommended that the Obama Administration consider taking four steps to increase U.S. collaboration with Cuban on counternarcotics, including the negotiation of a bilateral counternarcotics agreement with Cuba.

On August 6, 2012, Cuba announced that an exploratory oil well being drilled by the Malaysian state-oil company Petronas in cooperation with the Russian company Gazprom was found not to be commercially viable because of its compact geological formation.

On July 31, 2012, the Senate approved S.Res. 525 (Bill Nelson), recognizing and honoring the life and exemplary leadership of human rights activist Oswaldo Payá, who was killed in a car accident on July 22. The resolution also calls on the Cuban government to allow an impartial, third-party investigation into the circumstances surrounding the death of Payá.

On July 31, 2012, the State Department issued its Country Reports on Terrorism 2011 report, which stated that "current and former members of Basque Fatherland and Liberty (ETA) continued to reside in Cuba," and that "press reporting indicated that the Cuban government provided medical care and political assistance" to the Revolutionary Armed Forces of Colombia (FARC). At the same time, the report maintained that there "was no indication that the Cuban government provided weapons or paramilitary training for either ETA or the FARC." The terrorism report also stated that the Cuban government continues "to permit fugitives wanted in the United States to reside in Cuba," and provides such support as housing, food ration books, and medical care.

On July 18, 2012, Amnesty International (AI) issued an urgent action appeal calling on Cuban authorities to either charge or release three protestors (two members of the Ladies in White human rights group and a husband of one of the women) detained since March 2012 after participating in a peaceful protest. Subsequently, AI announced that one of the protestors was released on October 5, 2012, pending trial, while the other two reportedly continue to be incarcerated. AI also reported numerous short-term detentions of members of the Ladies in White in September 2012.

On July 2, 2012, Cuba published new regulations that, beginning in September 2012, impose significantly higher duties on imported goods carried or shipped to individuals in Cuba. Many small entrepreneurs that depend on the imported goods could be threatened by the new duties.

On June 18, 2012, the Cuban government reimposed duties on imported food that had been lifted in 2008 after several hurricanes hurt domestic production. The duties could have an impact on the flow of food parcels brought by visiting Cuban Americans.

On June 12, 2012, the U.S. Departments of the Treasury and Justice announced a $619 million settlement with a Dutch bank, ING, for violating U.S. sanctions against Cuba, Burma, Sudan, Libya, and Iran. The Cuba sanction violations were the most extensive and stemmed from ING's processing of financial transactions valued at more than $1.6 billion.

On June 7, 2012, the Senate Foreign Relations Committee, Subcommittee on Western Hemisphere, Peace Corps, and Global Narcotics, held a hearing on Cuba's human rights situation in which Assistant Secretary of State for Western Hemisphere Affairs Roberta Jacobson expressed strong U.S. support for democracy and human rights activists in Cuba and defended the Obama's Administration policy on travel and remittances. The hearing also included three human rights activists testifying from Cuba, one of whom—Jorge Luis García Pérez (also known as Antúnez)—was subsequently arrested and beaten on June 9 and held for five days. Several U.S. Senators strongly condemned Cuba's action, including Senate Foreign Relations Committee Chairman John Kerry.

On May 31, 2012, the House Committee on the Judiciary, Subcommittee on Immigration on Policy Enforcement, held a hearing on H.R. 2831 (Rivera), a bill that would amend the Cuban Adjustment Act of 1966 (P.L. 89-732) by providing that an alien from Cuba would be ineligible for adjustment to permanent resident status if he or she returns to Cuba before becoming a U.S. citizen. The intent of the bill is to curb travel to Cuba by those who have recently emigrated from Cuba.

On May 24, 2012, the State Department released its 2011 human rights report, which maintained that Cuba's "principal human rights abuses were: abridgement of the rights of citizens to change their government; government threats, intimidation, mobs, harassment, and detentions to prevent citizens from assembly peacefully; and a significant increase in the number of short-term detentions."

On May 18, 2012, the Spanish oil company Repsol, which had begun exploratory drilling for oil off of Cuba's north coast in January 2012, announced that its exploratory well came up dry. On the same day, the House approved its version of the FY2013 National Defense Authorization Act, H.R. 4310 , with a provision that would prohibit the Department of Defense from contracting for the procurement of goods and services with any person that has business operations with a state sponsor of terrorism. The provision would affect Repsol from partnering with Cuba in oil exploration efforts while at the same time benefiting from DOD contracts. Repsol subsequently announced in late May that it would likely leave Cuba.

On May 17, 2012, the House Foreign Affairs Committee, Subcommittee on the Western Hemisphere, held a hearing entitled "Cuba's Global Network of Terrorism, Intelligence, and Warfare," (available at http://foreignaffairs.house.gov/hearings/view/?1440 ).

On March 26-28, 2012, Pope Benedict XVI visited Cuba, arriving first in Santiago and then traveling to Havana. The last papal visit was 1998, when Pope John Paul II visited the island.

On March 7, 2012, the State Department released its 2012 International Narcotics Control Strategy Report, which maintained that "greater communication and cooperation among the U.S., its international partners and Cuba, particularly in the area of real-time tactical information-sharing and improved tactics, techniques and procedures, would likely lead to increased interdictions and disruptions of illegal trafficking." The report maintained that the United States was still reviewing a draft bilateral counternarcotics accord presented by Cuba, and that such an accord, if structured appropriately, "could advance the counternarcotics efforts undertaken by both countries."

On February 22, 2012, Cuban police detained dissidents in Havana and in the eastern provinces of Guantánamo, Holguín, and Santiago de Cuba to disrupt any demonstrations to commemorate the two-year anniversary of the death of hunger striker Orlando Zapata Tamayo on February 23.

On February 9, 2012, the nongovernmental Cuban Commission on Human Rights and National Reconciliation reported that there were at least 631 short-term detentions for political reasons in January 2012 while there were at least 4,123 such detentions in 2011, almost double the number in 2010. (See the report, available at http://www.cubanet.org/wp-content/uploads/2012/02/OVERVIEW-ENERO-2012.pdf .)

On February 1, 2012, the Senate passed S.Res. 366 by Unanimous Consent, "honoring the life of dissident and democracy activist Wilman Villar Mendoza and condemning the Castro regime of the death of Wilman Villar Mendoza." The 31-year-old died on January 19, 2012, following a 50-day hunger strike after he was convicted of "contempt" of authority in November 2011 and sentenced to four years in prison after participating in a peaceful demonstration.

On January 31, 2012, the Spanish oil company Repsol began exploratory drilling off of Cuba's northern coast about 50 miles northwest of Havana.

On January 30, 2012, the House Committee on Transportation and Infrastructure, Subcommittee on Coast Guard and Maritime Transportation, held a Florida field hearing on the issue of offshore drilling in Cuba and the Bahamas that examined oil spill readiness and response planning.

On January 28-29, 2012, the Cuban Communist Party held a national conference focusing on internal party changes. The party confirmed two five-year term limits for top positions in the party and government, although analysts expressed disappointment that more significant reforms were not addressed.

On December 13, 2011, the Government Accountability Office issued a report on Cuba broadcasting that stated that a congressionally mandated strategic plan by the Broadcasting Board of Governors lacked key information, with five of six components required by Congress only partially addressed (the report is available at http://www.gao.gov/assets/590/586869.pdf ).

On November 2, 2011, the House Natural Resources Committee, Subcommittee on Energy and Mineral Resources, held a hearing examining offshore drilling by Cuba and the Bahamas. (See http://naturalresources.house.gov/Calendar/EventSingle.aspx?EventID=260052 .)

On October 18, 2011, the Senate Energy and Natural Resources Committee hearing held a hearing on the status of response capabilities and readiness for oil spills in foreign waters adjacent to U.S. waters. (See http://energy.senate.gov/public/index.cfm/hearings-and-business-meetings?ID=f37547ef-039b-373a-dc68-113595376178 .)

On October 7, 2011, René González, one of the so-called "Cuban five" convicted in U.S. court for involvement in spying, was released from prison after serving 13 years of a 15-year sentence. González will still need to serve three years of probation, and a judge has ruled that he must serve it in the United States.

On September 28, 2011, in response to questions at a roundtable discussion, President Obama indicated that his Administration has tried "to send a signal that we are open to a new relationship with Cuba if the Cuban government starts taking the proper steps to open up its own country and … provide the space and the respect for human rights that would allow the Cuban people to determine their own destiny." (See the President's remarks, available at http://www.whitehouse.gov/the-press-office/2011/09/28/remarks-president-open-questions-roundtable . )

On August 18, 2011, more than 40 members of the Ladies in White human rights group in Havana were attacked by a government-orchestrated mob. The group had been attempting to stage a protest to call attention to the recent harassment of their colleagues in the city of Santiago in eastern Cuba. On September 24, pro-government supporters prevented the Ladies in White from marching to Mass on the feast day of the Virgin of Mercy.

On August 18, 2011, the State Department issued its 2010 Country Reports on Terrorism. The section on Cuba maintained that the government "maintained a public stance against terrorism and terrorist financing, but there was no evidence that it had severed ties with elements from the Revolutionary Armed Forces of Colombia (FARC) and recent media reports indicate some current and former members of the Basque Fatherland and Liberty (ETA) continue to reside in Cuba." (See the report, available at http://www.state.gov/j/ct/rls/crt/2010/index.htm .)

On August 5, 2011, Cuba's Supreme Court rejected the appeal of Alan Gross, the USAID subcontractor imprisoned in Cuba since late 2009 and convicted in March 2011 for "actions against the independence and territorial integrity of the state" and sentenced to 15 years in prison. A White House Statement called for his immediate and unconditional release.

On July 21, 2011, during its markup of H.R. 2583 , the FY2012 Foreign Relations Authorization Act, the House Committee on Foreign Affairs approved (36-6) a Rivera amendment that would require the President to fully enforce all U.S. regulations on travel to Cuba as in effect on January 19, 2009, and impose the corresponding penalties against individuals determined to be in violation of such regulations. The intent of the amendment was to reinstate tighter travel restrictions as they existed under the Bush Administration in January 2009.

On July 13, 2011, the White House's Statement of Administration Policy on H.R. 2434 , the FY2012 Financial Services and General Government Appropriations bill, stated that the Administration opposes Section 901 because it would reverse the President's policy on family travel and remittances, and that the President's senior advisors would recommend a veto if the bill contained the provision.

On July 13, 2011, more than 40 Cuban dissidents issued a document dubbed the "People's Path," that advocates for a peaceful transition toward a democratic system and for an assembly to rewrite the constitution.

On June 24, 2011, during markup of the House FY2012 Financial Services and General Government Appropriations bill (subsequently introduced as H.R. 2434 ), the House Appropriations Committee approved an amendment by voice vote that would repeal amendments to the Cuba embargo regulations made since January 19, 2009, regarding family travel, carrying remittances to Cuba, and sending remittances to Cuba. The provision, which became Section 901 of the bill, would roll back President Obama's easing of restrictions on family travel and remittances in 2009 and his easing of restrictions on remittances for non-family members and religious institutions in 2011.

From April 16-19, 2011, the Cuban Communist Party held its sixth party congress, focusing on making changes to Cuba's economic model.

On April 8, 2011, the State Department issued its 2010 human rights reports on countries worldwide. The report documented continued significant human rights abuses, including harassment, beatings, and threats against political opponents by government-organized mobs and state security officials; harsh and life-threatening prison conditions; arbitrary detention of human rights advocates and members of independent organizations; selective prosecution and denial of fair trial; pervasive monitoring of private conversations; and severe limitations on freedom of speech and press. (See the full State Department human rights report on Cuba, available at http://www.state.gov/g/drl/rls/hrrpt/2010/wha/154501.htm .)

On March 30, 2011, former President Jimmy Carter completed a three-day trip to Cuba, where he had meetings with President Castro, Catholic Cardinal Jaime Ortega, and several human rights activists. He also visited imprisoned U.S. government subcontractor Alan Gross.

On March 23, 2011, the Cuban government released the last two of the "group of 75" political prisoners who were incarcerated in March 2003 in a severe crackdown on political dissidents. Overall, more than 125 political prisoners have been released since mid-2010.

On March 12, 2011, a Cuban court convicted and sentenced USAID subcontractor Alan Gross to 15 years in prison for "actions against the independence and territorial integrity of the state." Gross has been imprisoned since December 2009, when he was arrested after distributing communications equipment to Jewish organizations in Cuba.

On March 3, 2011, the State Department issued its 2011 International Narcotics Control Strategy Report (INCSR), which maintained that the United States was reviewing a draft bilateral accord for counternarcotics cooperation that Cuba had presented. The report maintained that such an accord, if structured appropriately, "could advance the counternarcotics efforts undertaken by both countries."

On January 28, 2011, the Departments of Homeland Security and Treasury published changes to their Cuba regulations in the Federal Register (pp. 5058-5061 and pp. 5072-5078) designed to increase purposeful travel to Cuba (including people-to-people exchanges), allow any U.S. person to send remittances to non-family members in Cuba, and allow all U.S. international airports to apply to provide licensed charter flights to and from Cuba. The Treasury Department has not yet finalized guidelines for the new regulations so that applications for travel requiring specific licenses are not yet being processed.

Appendix C. CRS and GAO Reports

Active CRS Reports Discussing Cuba

CRS Report RL31139, Cuba: U.S. Restrictions on Travel and Remittances , by [author name scrubbed].

CRS Report R40566, Cuban Migration to the United States: Policy and Trends , by [author name scrubbed].

CRS Report R41522, Cuba's Offshore Oil Development: Background and U.S. Policy Considerations , by [author name scrubbed].

CRS Report R40139, Closing the Guantanamo Detention Center: Legal Issues , by [author name scrubbed] et al.

CRS Report R40754, Guantanamo Detention Center: Legislative Activity in the 111 th Congress , by [author name scrubbed].

CRS Report R42008, Financial Services and General Government: FY2012 Appropriations , coordinated by [author name scrubbed].

CRS Report R41340, Financial Services and General Government (FSGG): FY2011 Appropriations , coordinated by [author name scrubbed].

CRS Report R40801, Financial Services and General Government (FSGG): FY2010 Appropriations , coordinated by [author name scrubbed].

CRS Report RL34523, Financial Services and General Government (FSGG): FY2009 Appropriations , coordinated by [author name scrubbed].

CRS Report RL33200, Trafficking in Persons in Latin America and the Caribbean , by [author name scrubbed].

CRS Report RL32014, WTO Dispute Settlement: Status of U.S. Compliance in Pending Cases , by [author name scrubbed].

Archived CRS Reports

CRS Report RS20450, The Case of Elian Gonzalez: Legal Basics , by [author name scrubbed] (pdf).

CRS Report RL33622, Cuba's Future Political Scenarios and U.S. Policy Approaches , by [author name scrubbed].

CRS Report RS22742, Cuba's Political Succession: From Fidel to Raúl Castro , by [author name scrubbed].

CRS Report RL32251, Cuba and the State Sponsors of Terrorism List , by [author name scrubbed].

CRS Report R40193, Cuba: Issues for the 111 th Congress , by [author name scrubbed].

CRS Report RL33819, Cuba: Issues for the 110 th Congress , by [author name scrubbed].

CRS Report RL32730, Cuba: Issues for the 109 th Congress , by [author name scrubbed].

CRS Report RL31740, Cuba: Issues for the 108 th Congress , by [author name scrubbed].

CRS Report RL30806, Cuba: Issues for the 107 th Congress , by [author name scrubbed] and [author name scrubbed].

CRS Report RL30628, Cuba: Issues and Legislation In the 106 th Congress , by [author name scrubbed] and [author name scrubbed].

CRS Report RL30386, Cuba-U.S. Relations: Chronology of Key Events 1959-1999 , by [author name scrubbed] (pdf).

CRS Report RL33499, Exempting Food and Agriculture Products from U.S. Economic Sanctions: Status and Implementation , by [author name scrubbed].

CRS Report RS22094, Lawsuits Against State Supporters of Terrorism: An Overview , by [author name scrubbed].

CRS Report RL31258, Suits Against Terrorist States by Victims of Terrorism , by [author name scrubbed].

CRS Report 94-636, Radio and Television Broadcasting to Cuba: Background and Issues Through 1994 , by [author name scrubbed] and [author name scrubbed] (pdf).

CRS Report RS21764, Restricting Trademark Rights of Cubans: WTO Decision and Congressional Response , by [author name scrubbed].

Selected GAO Reports

Broadcasting Board of Governors Should Provide Additional Information to Congress Regarding Broadcasting to Cuba, December 13, 2011, http://www.gao.gov/assets/590/586869.pdf .

Broadcasting to Cuba: Actions are Needed to Improve Strategy and Operations , U.S. Government Accountability Office, January 2009, http://www.gao.gov/new.items/d09127.pdf .

Broadcasting to Cuba: Observations Regarding TV Martí's Strategy and Operations , Statement of Jess T. Ford, Director International Affairs and Trade before the Subcommittee on International Organizations, Human Rights, and Oversight, House Committee on Foreign Affairs, U.S. Government Accountability Office, June 17, 2009, http://www.gao.gov/new.items/d09758t.pdf .

Foreign Assistance: Continued Efforts Needed to Strengthen USAID's Oversight of U.S. Democracy Assistance for Cuba, U.S. Government Accountability Office, November 2008, http://www.gao.gov/new.items/d09165.pdf .

Foreign Assistance: U.S. Democracy Assistance for Cuba Needs Better Management and Oversight , U.S. Government Accountability Office, November 2006, http://www.gao.gov/new.items/d07147.pdf .

U.S. Embargo on Cuba: Recent Regulatory Changes and Potential Presidential or Congressional Actions , U.S. Government Accountability Office, September 17, 2009, http://www.gao.gov/new.items/d09951r.pdf .