U.S., Cuba Hold First Talks on Rival Claims
December 08 2015 - 1:13PM
Dow Jones News
By Felicia Schwartz
U.S. and Cuban officials meet Tuesday in Havana for their first
round of talks on billions of dollars in competing financial
claims, one of the most contentious challenges in the process of
normalizing relations.
The negotiations are part of a broader agenda of discussions
aimed at normalizing relations between the two countries after 50
years of enmity, but claims talks are considered to be among the
most complicated.
There are 5,913 U.S. individuals and companies with claims that
have been certified by U.S. officials against the Cuban government
for property confiscated after the 1959 revolution. The claims,
originally valued at $1.9 billion, now are estimated to be worth $7
to $8 billion, with interest.
Corporate claims make up most of that money and include several
Fortune 500 companies, including Coca-Cola Co., Exxon Mobil Corp.,
Starwood Hotels & Resorts Worldwide Inc. and Colgate-Palmolive
Co.
Office Depot Inc. currently holds the largest claim, which is
now valued at over $1 billion. That claim, originally made by Cuban
Electric Co., has changed hands several times over the years
through mergers and acquisitions. Many of the companies
nationalized by the Castro regime no longer exist and claims have
been passed down. Individuals also have pressed claims.
Cuba says it has about $121 billion in counterclaims for damages
stemming from the U.S. economic embargo.
The U.S. delegation to the talks is being led by the State
Department's acting legal adviser, Mary McLeod. The two sides will
discuss "a wide variety of claims," including those certified by
the U.S. Foreign Claims Settlement Commission, government claims
and claims related to unsatisfied U.S. court judgments against
Cuba, the State Department said.
"The meeting is the first step in what we expect to be a long
and complex process, but the United States views the resolution of
outstanding claims as a top priority for normalization," State
Department spokesman John Kirby said.
The talks are likely last beyond President Barack Obama's
presidency, but U.S. officials and independent experts consider
that start of negotiations to be a significant step.
The U.S. and Cuba also have begun talks this year on a number of
other issues, including civil aviation, direct mail servic
e, counternarcotics efforts, environmental cooperation, law
enforcement and telecommunications. The two sides also have
continued pre-existing talks that have been under way on migration
issues.
The U.S. and Cuba signed an agreement last month to cooperate on
environmental issues. The pact covers coastal and marine
protection, climate change, disaster risk reduction and marine
pollution.
U.S. and Cuban negotiators are close to reaching agreements on
civil aviation and direct mail service, with both agreements
expected to come late this year or early next year, Cuban and U.S.
officials said. Negotiators are expected to meet next week for a
final round of talks on civil aviation, with a goal of announcing
an agreement to resume direct commercial flights between the U.S.
and Cuba early next year.
Mr. Obama and Cuban President Raúl Castro announced last
December that the U.S. and Cuba would begin to normalize relations
after decades of frozen ties.
Only Congress can fully lift the trade and travel embargoes, but
Mr. Obama took several steps on his own to loosen regulations. The
U.S. removed Cuba from its state sponsor of terrorism list earlier
this year and Washington and Havana restored diplomatic relations
and reopened embassies in both capitals this summer.
Write to Felicia Schwartz at Felicia.Schwartz@wsj.com
(END) Dow Jones Newswires
December 08, 2015 12:58 ET (17:58 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
ODP (NASDAQ:ODP)
Historical Stock Chart
From Jun 2024 to Jul 2024
ODP (NASDAQ:ODP)
Historical Stock Chart
From Jul 2023 to Jul 2024