FOR IMMEDIATE RELEASE: July 22, 2002

CONTACT: Brian Alexander, Policy Director, Cuba Policy Foundation, 202-321-CUBA (2822)

CUBA REMITTANCES CAP CHALLENGED IN CONGRESS:

New Amendment Benefits Americans with Family and Friends in Cuba, Sponsored by Anti-Embargo Forces in Congress

July 22, 2002 - Washington – On Thursday, Rep. Jeff Flake (R-AZ) introduced a new amendment that would lift the cap on remittances to friends and relatives in Cuba.

Currently, Americans can send no more than $300 per quarter to friends and relatives in Cuba. The Flake remittances amendment removes these restrictions. The amendment retains protections against sending money to high officials in the Cuban government and entities that would be antagonistic toward American goals in Cuba.

Embargo opponents have claimed that the embargo is meant to deny resources to the Castro regime, but American dollars sent from the United States are the islands number one leading source of foreign exchange for Cuba. In 2001, it is estimated that over $450 million dollars in remittances were sent from the United States to Cuba, but unrecorded figures may be much higher, as many remittances do not go through documented channels.

It is unknown how embargo supporters will react to the amendment. However, the amendment places embargo supporters in an interesting situation, as the same groups of Cuban-Americans who most ardently support keeping the embargo are also many of the same people sending the vast bulk of the remittances from the United States to Cuba. Whether easing this provision of the Cuban embargo will be responded to favorably or not remains to be seen.

According to Ambassador Sally Grooms Cowal, president of Cuba Policy Foundation, “Lifting the remittances cap is a positive step for the United States. The remittance cap amounts to a ban on charity, and to lift it would allow Americans to send support to needy friends and relatives in Cuba.” She added, “More income for Cubans creates increased independence from the Castro regime, and facilitates a stable transition in Cuba. Lifting the remittance cap also would potentially enable Cuba to purchase more U.S. farm goods due to increased availability of funds. Therefore, lifting the cap also may be good for the U.S. farm economy.”

The Flake remittances amendment will be voted on this week, along with the other amendments on Cuba to the Treasury-Postal FY2003 Appropriations Bill.

For more information, please contact the Cuba Policy Foundation.