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Chairman Menendez Expresses Serious Concern Regarding United States Chamber of Commerce Trip to Cuba
Washington, D.C.
– U.S. Sen. Robert Menendez (D-NJ), Chairman of the Senate Foreign
Relations Committee, wrote United States Chamber of Commerce President
and CEO Thomas Donohue today and expressed serious concern about the
Chamber of Commerce’s upcoming trip to Cuba.
In the letter, Sen. Menendez wrote: “I
would like to reiterate my concerns about the U.S. Chamber of
Commerce’s trip and the desire to strengthen its relationship with the
Government of Cuba – a government that jails foreign business leaders
without justification, violates international labor standards, and
denies its citizens their basic rights. Such conditions hardly seem an
attractive opportunity for any responsible business leader.”
The letter can be found below:
Mr. Thomas J. Donohue
President and CEO
United States Chamber of Commerce
1615 H St NW
Washington, DC 20062
Dear Mr. Donohue:
I
write to express my serious concern about the Chamber of Commerce's
trip to Cuba and its efforts to promote and enhance engagement with the
Cuban regime, which controls nearly all economic activity in the
country.
While the Cuban government may be undertaking cosmetic
changes in an attempt to attract badly-needed foreign investment and
revive an economy that has suffered from a half-century of chronic
mismanagement, I believe it is imperative to detail the frequently
hostile operating environment that international business leaders have
encountered in Cuba. The case of British businessman Stephen Purvis of
Coral Capital is an irrefutable reminder of the ongoing risk faced by
foreign businesses working in the country. Although Coral Capital was
one of the largest private investors in Cuba – working closely with the
Cuban government to renovate the Saratoga Hotel and develop the
Bellomonte Country Club – the government eventually turned on Mr.
Purvis, accused him of espionage and breaches of financial law, seized
all of his assets, and imprisoned him for 16 months prior to his release
in July 2013.
It is important to emphasize that Mr. Purvis’
misfortune is hardly uncommon. Canadian citizen, Cy Tokmakjian,
President and CEO of the Tomakjian Group, has languished in a Cuban
prison for nearly three years and still awaits trial. After providing
the Cuban government with transportation, mining and construction
equipment for several years, Mr. Tokmakjian was jailed in September
2011. The Cuban government seized his personal assets and those of his
business, but never formally charged him with any wrongdoing. These
examples are a clear indication of the complete lack of protection for
foreign investment in Cuba, and should serve as a sharp warning for any
company, including any U.S. business group, studying conditions in the
country.
Furthermore, I am deeply concerned about the U.S Chamber
of Commerce’s willingness to seek out a relationship with a regime that
is in constant violation of international labor rights. More
specifically, the Cuban government’s labor and employment practices are
in direct violation of International Labor Organization (ILO)
conventions on freedom of association, collective bargaining,
discrimination, the protection of wages, and the abolition of forced
labor. Regrettably, Cuba’s recent foreign investment law makes no
efforts to bring the country’s poor labor conditions into accordance
with international standards and, therefore, bears a paradoxical
implication – it proposes beneficial changes for the state but
ultimately ignores the benefits of the people.
Lastly, as
codified by Congress, U.S. law stipulates specific conditions before the
lifting of commercial and financial sanctions against Cuba can occur.
These conditions are contingent upon the unconditional release of
political prisoners and the implementation of guarantees for
internationally recognized civil, political and economic rights – none
of which have been met. In fact, according to the Wall Street Journal
2014 Index of Economic Freedom, Cuba ranks as the world’s second most
repressive country, just one place above North Korea.
In closing,
I would like to reiterate my concerns about the U.S. Chamber of
Commerce’s trip and the desire to strengthen its relationship with the
Government of Cuba – a government that jails foreign business leaders
without justification, violates international labor standards, and
denies its citizens their basic rights. Such conditions hardly seem an
attractive opportunity for any responsible business leader.
Sincerely,
Robert Menendez
Chairman
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