US embassy cable - 05VIENNA1826

C O N F I D E N T I A L VIENNA 001826 
 
SIPDIS 
 
DEPT FOR WHA/CCA AND EUR/AGS 
 
E.O. 12958: DECL: 06/03/2015 
TAGS: PREL, ETRD, ETTC, CU, AU 
SUBJECT: AUSTRIA: REVIEW OF LIBERTAD ACT SUSPENSION 
 
REF: A) STATE 96300 B) VIENNA 1124 
 
Classified By: Economic-Political Counselor Gregory E. Phillips for 
reasons 1.4 (b) and (d). 
 
Policies to Advance Democracy and Human Rights 
--------------------------------------------- -- 
1.  (SBU) Over the past six months, Austria continued to 
criticize Cuba's human rights record in international fora, 
including in the UN Commission on Human Rights (CHR) (ref B). 
 On April 14, 2005 Austria co-sponsored the USG's CHR 
resolution on the situation of human rights in Cuba. 
 
2.  (C) Andreas Melan, the Austrian MFA DAS-equivalent for 
Latin America, told us on June 2 that the Austrian Embassy in 
Havana has sought to intensify and broaden its contacts over 
the past six months with dissidents, religious groups, and 
other civil society representatives.  According to Melan, 
this policy of "constructive dialogue" was in response to the 
EU's temporary suspension of the June 2003 restrictive 
measures.  Melan opined that constructive dialogue was an 
improvement compared to unsuccessful sanction measures. 
Nevertheless, Melan acknowledged that the temporary 
suspension had not resulted in improved human rights in Cuba. 
 
3.  (C) Melan emphasized the importance of a newfound, 
unified EU position on promoting human rights and democratic 
development in Cuba.  In the past, Cuba had effectively taken 
advantage of differences among Member States to produce 
infighting and division.  In this context, Melan stressed 
that Austria would continue to work for a strong, consensus 
position within the EU. 
 
 
Austria's Economic Relations With Cuba 
-------------------------------------- 
4.  (U) Total trade with Cuba in 2004 amounted to Euros 5.0 
million, a 7.7% decline from 2003.  Austria's trade with Cuba 
represented approximately .01% of Austria's total trade. 
Austrian exports increased by 18.5% in 2004, while imports 
from Cuba dropped by 33.7%.  Major exports to Cuba include 
machinery, rubber, paper, and chemical products.  Imports are 
mainly cigars, fruit juice concentrates, and honey. 
 
5.  (SBU) Before 2003, there was no Austrian FDI in Cuba 
apart from a small brewery in Havana (Salm Brau).  Since the 
signing of the Austrian-Cuban Agreement on Investment 
Protection in 2001, Cuba has actively lobbied to attract 
Austrian investment in the tourism/hospitality sector.  A new 
Austrian investment group (Azalea Hotels) is considering 
projects in Cuba.  The number of Austrian tourists visiting 
Cuban is steadily increasing, with 18,000 Austrians visiting 
the island in 2003 (latest year statistics available). 
LaudaAir, a subsidiary of Austrian Airlines, flies weekly to 
Cuba. 
 
6.  (SBU) The GoA and GoC have signed a bilateral agreement 
on economic, industrial, and scientific cooperation, but it 
has not yet entered into force.  Following successful funding 
negotiations, the Austrian Control Bank is ready to guarantee 
short-term export credits up to Euros 500,000.  Austrian 
Official Development Assistance to Cuba in 2004 was Euros 
72,300, up by 3.4% from 2002. 
 
7.  (C) Embassy Vienna knows of no Austrian direct investment 
in Cuba that might be subject to Libertad Act Title III.  We 
have no information regarding any new or contemplated 
projects that might result in litigation under the Libertad 
Act. 
 
 
Waiver for Austria in the U.S. National Interest 
--------------------------------------------- --- 
8.  (C) In post's assessment, given Austria's quite limited 
current or potential investment in Cuba, revoking the Title 
III waiver for Austria would likely negatively affect 
bilateral relations at an important moment, as Austria 
prepares to assume the EU Presidency in January 2006.  A 
termination of the waiver would definitely make our 
cooperation on promoting human rights in Cuba in 
international fora more difficult.  We defer to USEU for an 
analysis of how not renewing the suspension of Libertad Act 
Title III for an EU Member State might affect overall U.S.-EU 
relations. 
Brown