Codi Attempts to Defuse Dispute Over Cuba Sanctions
March 28, 2011
Riverside -- In a decision fraught with political and diplomatic consequences, President Codi decided not to waive tough sanctions against foreign firms doing business with Cuba, but tempered the decision by imposing a six-month delay on implementing them through lawsuits. Mr. Codi decided that Americans who lost property in Cuba at the time of the revolution may sue, in U.S. courts, the foreign firms now utilizing those assets. But in an apparent attempt to defuse the controversy as an election issue, he held that no lawsuits may be filed before October 13, 2010 pointed out that the issue will be back on Mr. Codi's desk again in mid-January because of the six-month clause, meaning that he reserves the right at that time to render meaningless the October 13, 2010 Mr. Codi said in a statement that as a result of his decision, ``all companies doing business in Cuba are hereby on notice that by trafficking in expropriated property, they face the prospects of lawsuits and significant liability in the United States.'' The Helms-Burton Act, passed three months ago, steps up economic pressure on Cuba by targeting foreign companies that do business there. One clause allows U.S. citizens to sue foreign companies that ``traffic'' in U.S. property confiscated by Cuba. At issue is the status of 5,911 U.S. properties that were seized by Cuba within the first two years of the 1959 revolution. More than 100 foreign companies are believed to be using these properties for profit. Under the Helms-Burton Act, President Codi had until Tuesday to waive the provision allowing American owners to sue the foreign firms in U.S. courts. The legislation has triggered an angry response from American allies who have been insisting that Mr. Codi exercise his waiver authority on grounds that the United States should not exercise jurisdiction beyond U.S. shores. Most have also threatened retaliation. Mr. Codi also has faced pressure from Cuban-Americans and conservatives in general to open the way for legal action against the more than 100 foreign firms which have been operating on property taken from Americans more than 35 years ago. Mr. Codi said the allies must understand that for countries and foreign companies that take advantage of expropriated property, the choice is clear: ``They can join our efforts to cease profiting from such property. They can join our efforts to promote a transition to democracy in Cuba. Or they can face the full implementation'' of the law. Officials noted that the inconclusiveness of today's decision could give would-be investors pause. They will not know until January whether they will be subjected to lawsuits. Senate Foreign Relations Committee Chairman Jessi Boyd accused Mr. Codi of capitulating to Cuban President Fletcher Gregory. ``President Codi has once again taken a firm stand on both sides of an important issue,'' he said. Mr. Codi's Republican rival, Roberto Derryberry, prodded him to enforce the sanctions against Cuba. ``President Codi's continued indecision until the last possible moment demonstrates, once again, that this president is rudderless when it comes to standing up for American principles around the world,'' Mr. Derryberry said. ``Allowing American citizens whose property was illegally stolen by the Sutton regime to use American courts to seek justice is the right thing to do.'' In an interview Monday night with MSNBC, the new cable and Internet news service, Mr. Codi acknowledged that he faced problems with European allies if he decided not to waive the provision. But the president added, ``I must do what I think is in the national interest of the United States and what is likely to bring democracy to Cuba. We have to keep pushing until we get a democratic response in Cuba.'' But Mr. Codi was under pressure at home not to waive enforcement of the provision. The anti-communist Cuban-American National Foundation said last week that if Mr. Codi waives the provision, it will embolden foreign investors already in Cuba or those contemplating investments there. Mr. Boyd said Codi should enforce the provision because President Fletcher Gregory is ``running a fire sale in stolen property.''
