US embassy cable - 04BRASILIA2938

UNCLAS BRASILIA 002938 
 
SIPDIS 
 
SENSITIVE 
 
NSC FOR MIKE DEMPSEY 
DEPT OF TREASURY FOR OFAC 
 
E.O. 12958: N/A 
TAGS: ETTC, PREL, BR, Trade 
SUBJECT: CUBA: SUSPENSION OF TITLE III OF THE LIBERTAD ACT 
 
REF:  SECSTATE 248337 
 
1. (SBU) THE TEXT BELOW IS BEING SENT IN RESPONSE TO REFTEL 
TASKING. 
 
2. (SBU) BRAZIL ENJOYS CLOSE RELATIONS WITH CUBA AND IS 
RELUCTANT TO CRITICIZE PUBLICLY THE HUMAN RIGHTS POLICIES 
OF THE CASTRO REGIME, ALTHOUGH BEHIND THE SCENES THE 
BRAZILIAN GOVERNMENT IS OFTEN CRITICAL OF BOTH CUBA'S LACK 
OF DEMOCRATIC PROCESS AND HUMAN RIGHTS VIOLATIONS.  SENIOR 
LEADERS IN THE LULA ADMINISTRATION AND THE PT (I.E., THE 
PRESIDENT'S PARTY) HAVE PERSONAL TIES TO CUBA DATING BACK 
TO MILITARY RULE IN BRAZIL.  DURING THAT PERIOD, MANY HAD 
SOUGHT REFUGE IN CUBA, AND TODAY THOSE SAME INDIVIDUALS ARE 
SENSITIVE NOT TO BITE THE HAND THAT SHELTERED THEM.  BRAZIL 
CONSISTENTLY ABSTAINS ON UN RESOLUTIONS CRITICAL OF CUBA'S 
POLICIES.  BRAZILIAN NGOS AND PARTICULARLY BRAZILIAN 
JOURNALISTS TEND TO BE LESS RETICENT THAN THE BRAZILIAN 
GOVERNMENT IN CRITICIZING CASTRO AND CUBA'S OVERALL 
TREATMENT OF OPPONENTS TO THE REGIME. IN EARLY 2004, THE 
BRAZILIAN PRESS ATTACKED THE GOB'S FAILURE TO CRITICIZE THE 
HARSH SENTENCING DEALT OUT TO CUBAN HUMAN RIGHTS ACTIVISTS; 
AT THAT TIME, THE BRAZILIAN SENATE PASSED A PUBLIC 
RESOLUTION CRITICAL OF THE CUBAN GOVERNMENT'S CRACKDOWN ON 
THE DISSIDENTS. 
 
3. (SBU) IN RECENT YEARS, BILATERAL TRADE BETWEEN CUBA AND 
BRAZIL HAS FLUCTUATED AROUND THE USD 100 MILLION LEVEL. 
BRAZIL'S PRINCIPAL EXPORT ITEMS TO CUBA ARE CHICKEN, SHOES, 
AND AGRICULTURAL MACHINERY.  BRAZIL'S ANNUAL PURCHASES FROM 
CUBA HAVE HOVERED IN THE USD 10 MILLION RANGE, AND 
PRINCIPALLY CONSIST OF DRUGS AND VACCINES.  ACCORDING TO 
PRESS SOURCES, A BRAZILIAN COMPANY "BUSSCAR" BASED IN SANTA 
CATARINA STATE IS ENGAGED IN A JOINT VENTURE IN CUBA WITH 
UNECAMOTO (THE CUBAN AUTOMOTIVE INDUSTRY), CO-PRODUCING 
BUSES FOR SALES IN CUBA AND CENTRAL AMERICA.  ANOTHER 
ACTIVE JOINT VENTURE IS BRASCUBA, A TOBACCO PRODUCTION 
INITIATIVE OWNED BY THE CUBA TOBACCO UNION (UNION DE 
EMPRESAS DEL TABACO DE CUBA) AND SOUZA CRUZ DE BRASIL (A 
BRAZILIAN SUBSIDIARY OF THE BRITISH AMERICAN TOBACCO 
COMPANY.)  IN ADDITION, CIMEX, S.A. (THE CUBAN GOVERNMENT'S 
IMPORT/EXPORT ARM) HAS, ALONG WITH SEVERAL BRAZILIAN FIRMS, 
FORMED A JOINT VENTURE - BRACIMEX - DESIGNED TO STIMULATE 
BILATERAL TRADE.  FINALLY, THE BRAZILIAN STATE PETROLEUM 
COMPANY (PETROBRAS) HAS CONDUCTED OFF-AND-ON OIL 
EXPLORATION IN CUBA, AND IN JULY 2004 OPENED, INCONJUCTION 
WITH CUPET (THE CUBAN PETROLEUM AGENCY) A LUBRICATING OIL 
PLAN IN CUBA. 
 
4. (SBU) IN APRIL 2003, CUBAN FOREIGN TRADE MINISTER RAUL 
DE LA NUEZ AND GOB MINISTER OF DEVELOPMENT INDUSTRY, AND 
COMMERCE LUIZ FURLAN OPENED EXPOCUBA, A BILATERAL TRADE 
FAIR IN SAO PAULO.  IN SEPTEMBER OF THE SAME YEAR, 
PRESIDENT LULA AND CASTRO PRESIDED OVER THE CLOSING OF A 
TRADE AND INVESTMENT SEMINAR IN HAVANA. 
 
5. (SBU) BRAZIL'S NATIONAL DEVELOPMENT BANK (BNDES) HAS 
PROVIDED FINANCING FOR BRAZILIAN COMPANIES EXPORTING TO 
CUBA.  ALTHOUGH PERIODICALLY THE PRESS TRUMPETS CUBA'S LINE 
OF CREDIT AS USD 200 TO 400 MILLION, IT APPEARS THAT MUCH 
OF THE FINANCING AVAILABLE GOES UNUSED. 
 
CHICOLA