US embassy cable - 05OTTAWA1460

UNCLAS OTTAWA 001460 
 
SIPDIS 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: ECON, CU, CA, Jim Peterson, Trade 
SUBJECT: OTTAWA'S CHARGE CALLED TO MEET TRADE MINISTER 
PETERSON OVER CUBAN ASSETS CONTROL REGULATIONS 
 
REF: 04 OTTAWA 0366 
 
1. (SBU)  On May 12, Charge John Dickson met with 
International Trade Minister Peterson at the Minister's 
request to discuss U.S. designation of Caribe Sol and Hola 
Sun as Specially Designated Nationals under the Cuban Assets 
Control Regulations (comment:  Minister Peterson also 
included Internet Cubaweb Communications as an affected 
company, although our information is that ICC has not been 
designated as an SDN.  End comment.)  Minister Peterson made 
a low-key pitch on the issue, asking if we could explore the 
possibility of "doing something to help three little Canadian 
companies who face bankruptcy."  Apparently, the companies 
had been processing their credit-card payments through the 
Bank of Nova Scotia, which subcontracted to Paymentech 
Canada, a subsidiary of the U.S. firm; following the Treasury 
designation, Paymentech stopped processing the payments. 
ITCAN officials did not know whether the firms actually had 
assets frozen or had just been denied service; apparently 
they are currently suing the Bank of Nova Scotia for breach 
of contract. 
 
2. (SBU)  In response, the Charge promised to relay Canadian 
concerns to Washington, but pointed out that under the Cuban 
Assets Control Regulations, overseas subsidiaries of U.S. 
companies (such as Paymentech Canada) are prohibited from 
dealing with any specially designated national of Cuba.  We 
do not know whether the two designated companies have 
appealed their designation. 
 
3. (SBU)  Once Minister Peterson's office provides further 
details, we will pass this information to the Cuba desk and 
WHA/L. 
 
Visit Canada's Classified Web Site at 
http://www.state.sgov.gov/p/wha/ottawa 
 
DICKSON