US embassy cable - 05PARIS7871

C O N F I D E N T I A L SECTION 01 OF 02 PARIS 007871 
 
SIPDIS 
 
E.O. 12958: DECL: 11/17/2015 
TAGS: PREL, ETRD, ETTC, FR, CU 
SUBJECT: RECOMMENDATION OF WAIVER FOR FRANCE OF LIBERTAD 
ACT TITLE III 
 
REF: A. STATE 207359 
     B. PARIS 7145 
     C. PARIS 7779 
 
Classified By: Political Minister-Counselor Josiah Rosenblatt, reasons 
1.4 (b) and (d). 
 
1.  (C) Summary and comment: France adheres to the EU's 
Common Position on Cuba, and the GoF monitors the human 
rights situation in Cuba closely.  MFA officials have 
consistently stressed that they share both the U.S. 
assessment of the human rights situation and the U.S. goal of 
supporting peaceful evolution to democracy, even if our 
approach on methods for achieving this end differ.  Notably, 
recent discussions indicate that the GoF may be reevaluating 
the "constructive dialogue" approach it had previously touted 
due to the lack of improvement in the human rights situation 
in Cuba.  French support at the Commission on Human Rights in 
Geneva has been crucial in securing the last several 
resolutions criticizing the Castro regime's human rights 
record.  Legislation against French persons or entities as a 
result of implementation of Libertad Act Title III would be 
detrimental to Franco-American relations and could also have 
negative effects on our relations with the EU.  Based on 
France's solid record of criticizing the Castro regime and 
seeking to change the state of human rights in Cuba, through 
the EU and bilaterally, as well as the negative ramifications 
of implementation, post recommends a waiver of Title III of 
the Libertad Act.  End summary and comment. 
 
France/EU On Human Rights Situation in Cuba 
------------------------------------------- 
 
2.  (C) As an EU member state, France supports the EU Common 
Position of 1996.  This position was strengthened in 2003 in 
response to the arrest of 75 dissidents by the Castro regime. 
 In January 2005 the EU voted to suspend the sanctions 
imposed in 2003 for six months, and in June 2005 the 
suspension was continued until June 2006.  MFA officials have 
noted that they have not been impressed with the Castro 
regime's response thus far.  After the 2003 crackdown, France 
suspended bilateral police assistance outside of efforts to 
combat narco-trafficking. 
 
Past Six Months of France's Cuba Policy 
--------------------------------------- 
 
3.  (C) France had the dubious honor of being the first 
country whose national day arose after the June 2005 
suspension of sanctions.  In an attempt to "engage in 
dialogue" and appease both dissidents and the GoC, the GoF 
invited each party to separate ceremonies held on concurrent 
days.  Since then, additional crackdowns by the Castro regime 
in July and Cuba's refusal to liberate dissidents has soured 
the French in recent months.  The MFA reports that on October 
11, French Foreign Minister Phillipe Douste-Blazy delivered a 
strong message to Cuban Foreign Minister Felipe Perez Roque 
in a meeting completely dedicated to the human rights 
situation in Cuba (ref B), calling for the release of all 
dissidents.  Although not yet willing to take a decisively 
hard line against Cuba, the GoF is adopting a "wait-and-see" 
approach; however, this could eventually result in a genuine 
policy shift if the GoC does not make a "gesture" in 
releasing dissidents (ref C). 
 
French Investments in Cuba 
-------------------------- 
 
4.  (U) According to the MFA, foreign direct investments in 
Cuba totaled around USD 6 billion at the end of 2004, with 
France ranked fourth among international investors with 6 
percent of the total (behind Spain at 25%, Canada at 20%, and 
Italy at 19%).  Around 40 French firms have a presence in 
Cuba, but only 18 French firms have established subsidiaries 
or operate under mixed status.  Most investments are made by 
large multinational enterprises, in sectors such as tourism, 
telecommunications, energy, agricultural foods, and banking. 
 
5.  (U) According to the French Finance Ministry, French 
investment in Cuba is steadily declining.  Although interest 
remains, significant new investments are deterred by Cuba's 
persistent refusal to honor its financial obligations.  In 
October 2005, French firms participating in a trade show in 
Cuba included Devexport, representing AREVA T&D, Alstom Power 
Services, Vergnett, Photowatt, Valorga, Geismar, Inovene, 
Tecofi, KDI, Facom, Catu, Saint-Gobain Desjonqueres, 
Saint-Gobain VG, and Ampec; Peugeot; Renault Trucks, 
Michelin; Steco; Linde; Citroen; Finca representing Concorde, 
Henkel, MTB and Assainibio; AMC (an aviation consultant); 
Ugao SA, representing Babcock Caribe, AMEC Spie, Symag 
Services, Beicip Franlab, Industrie Roland, Deweo and Dutchy 
Motors; CMA-CGM; GBH-Bamotors Ltd representing Renault Cuba; 
Arc Antilles Diffusion SARL; Tenesol SA; and Castel & 
Fromaget Groupe Fayat. 
 
Please visit Paris' Classified Website at: 
http://www.state.sgov.gov/p/eur/paris/index.c fm 
 
Stapleton