§ Mr. George Galloway (Glasgow, Hillhead)I hope that today's debate will be unusual in several ways. First, I come not to berate the Government, as I normally do, but to some extent to praise them, certainly in the enlightened form of the Minister of State who is to reply to the debate. Secondly, I have not come to make the kind of speech—which is sometimes made in the House—that generates more heat than light. I genuinely wish to elicit some answers and some direction from the Government of the kind that was apparent in the remarkable debate in the House of Lords on 13 March, which I am sure the Minister has read.
Peers as varied as Viscount Montgomery of Alamein, Lord Rees, Baroness Young, Baroness Hooper, Baroness Miller and Lord Wright of Richmond—I could go on—demonstrated absolutely remarkable unanimity. Towards the end of the debate, Viscount Montgomery of Alamein remarked:
My Lords, in the light of the unanimity of the remarks made this afternoon from all quarters of the House, will my noble Friend ensure that the UK makes the strongest possible representations on this subject"—the Government's policy towards Cubain Washington?"—[Official Report, House of Lords, 13 March 1996; Vol. 570, c. 845.]I hope that today's debate can be something like that.I praise the current state of relations between Britain and Cuba. There have been two ministerial visits by the lucky Minister for Science and Technology. Baroness Young, an absolutely formidable campaigner for improved British-Cuban relations, has also visited Cuba. There have been trade delegations from this country to Cuba and there have been three inward missions in the past year or so, including a visit just the other week by the Cuban Minister of Justice.
Those visits reflect the reality of Cuba's position as an increasingly popular place for the international community, as a destination for tourists, as a site for investment and as a partner in trade. The Minister will know that tourism is multiplying in Cuba. There were 19,000 British visitors last year and 25,000 visitors are expected this year. There is a weekly flight from Stansted and a second weekly flight is expected from May.
There has been a fantastic upsurge in foreign investment and trading opportunities in Cuba. Some 200 foreign companies now operate in Cuba, ranging from Benetton to the Wellcome Foundation. One can only hope that Cuba is spared Benetton's advertising campaigns. Those companies are increasingly important for Cuba's economy.
§ Mr. Jacques Arnold (Gravesham)Will the hon. Gentleman give way?
§ Mr. GallowayI am not sure that the project of seeking light rather than heat will be served by giving way to the hon. Gentleman. I hope that he will seek to be constructive.
§ Mr. ArnoldI find the interest that the hon. Gentleman shows in trade and investment in Latin America 329 fascinating. Will he tell the House what, if any, personal interests he has in Cuba? The House would be interested to know.
§ Mr. GallowayIf I had a commercial or pecuniary interest in Cuba, you can be sure, Mr. Deputy Speaker, that I would have declared it. As I do not, I did not. It was, as I suspected, a mistake to give way to the hon. Member for Gravesham (Mr. Arnold). Perhaps, one day, I shall learn.
The European Union is an increasingly important economic partner for Cuba. It is the island's main import source, accounting for 37 per cent. of all imports, and its main export market, taking 27 per cent. of all exports. It is the most important aid donor and the most important source of foreign investment. Ninety of the 212 joint ventures in Cuba operate with European capital. That is especially important for us as a country that is part of that development.
It is no surprise that, having gone through some very difficult years recently, the Cuban economy is definitely on the way up and on the move. Gross domestic product grew last year by 2.5 per cent. and that growth rate is expected to be bettered this year. In most sectors, from nickel to the lovely Havana tobacco, the economy is on the up. Cuba has an extremely well educated, healthy population. It has important raw materials, relatively developed industry, a relatively large population and, therefore, a relatively large market, and its people have shown great creativity, productivity and ingenuity in coping with recent difficulties. Cuba is also a country—I commend it to the Minister—of great physical beauty. Indeed, I invite him to walk with me along the Malacon, where he will see exactly what I mean.
Lest the idyllic picture that I paint mislead, I must say that there is a storm brewing, and that is what I shall concentrate on. That storm is the Helms-Burton Act, which is the child of the Toricelli Act, against which the Government have set their face for many years. The Act is a series of measures taken in 1992, in the heat of the presidential election campaign and under pressure from the well-organised Cuban American lobby, in the hope of swinging the crucial New Jersey electorate and the even more crucial Florida electorate the way of the winning candidate. Helms-Burton is now law, we are again in a presidential election year, and the Cuban American lobby is determined to use to maximum advantage the remaining months of the pre-election period.
The Helms-Burton Act is an especially pernicious piece of legislation. Those are not only my words, but the words of virtually every Government in the world. The Act makes it possible for the former owners of property in Cuba to sue companies, through the US courts, for damages if those companies use what is claimed to be the former owners' assets in Cuba. It denies US visas to the directors of those companies and their families and limits US aid to countries that trade with Cuba. That is especially important for the countries of the former Soviet Union. The Act is also designed to stop organisations, such as the World Bank and the International Monetary Fund, lending money to countries that trade with Cuba. Again, that provision is particularly aimed at Cuba's former Soviet trading partners.
This draconian set of measures has led to the production by the Cuban American National Foundation of "Cuba's Hall of Shame", which is a black list of 330 companies, many of them British, many of them household names and many of them important. The Cuban American National. Foundation very definitely intends to have those compa[...] United States courts before long.
It is a sign of the times that some of those companies have lobbied me and that all of them have asked me not to mention their names in this debate. That is the fear that the measures, which are extraordinary in their extra-territorial nature, have placed in the heart of even the boldest British corporations. I know, and the Minister knows, that there are British companies that have invested millions of pounds in both Cuba and the United States. They stand to lose millions of pounds if the legal cases planned by Cuban emigré organisations go ahead.
This week, I was visited by directors of an up-and-coming British company that is achieving significant economic results in Cuba and the United States. The directors are in a state of fear and alarm as a result of what is likely to happen. Ten European companies, including three in the United Kingdom, are likely to be among the first legal victims.
The Helms-Burton Act has aroused opposition throughout the world. Baroness Young wrote to the President of the Board of Trade:
we are concerned that beyondthe measures already taken by the Governmentthere will also be the need for the British Government to protect further the interests of its nationals and its commercial interests if they are to be subject to vexatious litigation or arbitrary denial of visas.Those are not the words of a member of the Cuban solidarity campaign, or of a left-wing socialist like me; they are the words of Baroness Young, who has Britain's economic interests, as well as Cuba's, at heart.In that light, I shall run through several of the aspects that I hope the Minister will mention. I apologise to him that not every one of them has been communicated to his office; if he finds it impossible to answer directly today, I shall be more than happy to receive a letter from him, laying out the Government's position.
The questions are as follows. What further and continuing action will the British Government take to protect companies and individuals who are the subject of litigation in US courts? What representations have the Government made to the US Administration to encourage the President to use his right to waive prosecutions in the national interest? Will the Government be prepared to join any British company operating in Cuba and in the US, and thus subject to US law, to defend any action that might be brought, as the Canadian Government have declared themselves willing and ready to do?
Are the Government prepared, separately or with other nations, to challenge in the US courts the constitutionality of the Helms-Burton Act? What is the position in respect of the European Union? Is a World Trade Organisation action likely to succeed, given that the US may invoke its national interest in defending itself against any complaint?
What discussions have taken place with the Canadians and Mexicans? What is Her Majesty's Government's view about a possible action against the US by the two other North American Free Trade Agreement partners, which is under active discussion and consideration by them?
Have the Government had any discussion with Governments in the Caribbean region about their concerns about the Act? Are there any existing or new legal powers 331 that might be invoked to protect British interests in that regard? Did the Prime Minister,[...] he issue when he met President Clinton in Egypt?
I shall conclude by mentioning some issues that I have raised with the Minister before. It is time for the Foreign Office to follow the Department of Trade and Industry in making an official visit to Cuba. I assure the Minister that he would receive a warm welcome. His colleague, the Minister for Science and Technology, spent a fascinating time with President Fidel Castro, and I know that a man of the Minister's generation—if not of the same political stripe as Castro—would find such a visit fascinating. That would do a great deal to show the United States that we, as a country, will stand up for our own interests and for constructive dialogue and reform.
I know that the Minister is worried about the United States' response. The United States, especially in an election year, is not shy about interfering in British domestic affairs. The President is not shy about interfering in the north of Ireland. He is not shy about making electioneering barnstorming visits to Britain and interposing his personal views about the future of Ireland. I happen largely to share those views, but if the Americans are not shy about interfering in British affairs, why should we be so terrified?
We welcome the fact that Her Majesty's ambassador in Cuba has a £150,000 fund for projects that help economic reform in Cuba. That was an innovation. Will it be continued and can it be increased? Welcome though it is, it is a small figure.
The Minister will not be surprised that I close on this subject because he and I have argued about it many times. When the issue of the embargo quarantine against Cuba comes up in the United Nations this year, why cannot we join the great majority of countries in the world, including the great majority of our European partners, and vote against that foolish, short-sighted policy? We are left in increasingly difficult company by not making our views against the embargo clear. Instead of abstaining when that matter returns to the United Nations, will the Government give active consideration to casting their vote for better relations between Britain—and, indeed, the world—and Cuba?
§ Mr. Tim Rathbone (Lewes)I thoroughly endorse everything that the hon. Member for Glasgow, Hillhead (Mr. Galloway) said, and I add a brief rider. The hon. Gentleman urged the Minister to go to Cuba and have a talk with Fidel Castro. I add emphasis to that urging, for the following reason.
As a Government and as a country, we should make it clear to Fidel Castro that he should not undertake the deplorable actions that he took in shooting down the aeroplanes. There was no excuse for it, even if it took place in Cuban air space—and there are questions about that. It seems to me to have been the action of a man who has been backed into a corner and is trying to continue to resist all efforts to develop his country, in which, as the hon. Member for Hillhead said, Britain has been in the forefront.
332 I hope that, while taking the American Government to task for their deplorable act, which is unforgivable from every standpoint, my hon. Friend the Minister will take advantage of a meeting with President Castro to express that point of view.
§ The Minister of State, Foreign and Commonwealth Office (Mr. David Davis)I am grateful to the hon. Member for Glasgow, Hillhead (Mr. Galloway) for initiating the debate. He knows my interest in Cuba. I thank him for his comments, although I suspect that his commendation of me may be fatal to my career. He knows that we take our relationship with Cuba very seriously. I shall try, in what remains of the debate, to answer as many of his questions as I can, but I have no doubt that my hon. Friend the Minister of State with responsibility for Cuba and Latin America, the hon. Member for Upminster (Sir N. Bonsor), who is unfortunately out of the country, will respond by letter to the items that I do not deal with.
We have maintained continuous diplomatic relations with Cuba, and a British embassy in Havana, since the end of the second world war. Nothing has changed in that time. I think that hon. Members will agree that Cuba has the potential to be a significant market for exporters and investors alike. Her Majesty's Government therefore actively encourage trade between our two countries, as the hon. Member for Hillhead and my hon. Friend the Member for Lewes (Mr. Rathbone) said.
It is also important to note that many of our closest partners have wide-ranging and important interests in Cuba—notably our European Union partners, which the hon. Member for Hillhead mentioned, Canada and, in different ways, the United States—and that we consult all of them on developments.
There is recent evidence that improvements in the political and economic position in Cuba are still far from complete, but I believe that the situation is gradually—I emphasise gradually—changing for the better. We believe that Cuba's potential role in the Caribbean is as yet a largely unanswered question, but it is one of undeniable significance.
Drugs and drug-related crime pose the biggest threat to the security and stability of the Caribbean islands. Cuba, by virtue of her geographical position astride the air and sea routes from South America to the United States and Europe, is an especially attractive target for drug traffickers. The Cuban Government recognise that threat and the importance of close international co-operation in the fight against drugs.
The United Kingdom's counter-narcotics co-operation with Cuba is increasing. As recently as last week, the Cuban Justice Minister, who heads the Drugs Commission, visited the United Kingdom to help strengthen that mutually beneficial relationship.
In the past two years, Her Majesty's Government have provided bilateral assistance in the form of equipment for Cuban customs and police. We have also provided funding for the training component of the United Nations drug control programme project to bolster the enforcement capabilities of Cuban anti-drugs agencies. During the practical part of one such course, run by Her Majesty's Customs and Excise, there was a significant cocaine seizure at Havana airport—a more rapid return on 333 a training course than is usually expected—and, only last month, United Kingdom-Cuban customs co-operation led to the seizure of 165 kg of cocaine.
We are also working closely with the European Commission and our European Union partners to produce a report on the drugs problem in the Caribbean which will identify weaknesses and recommend ways in which the EU might assist. As part of that initiative, representatives of an EU study group recently visited Cuba, where they were offered every support by the Cuban Government. Anti-drugs co-operation is an area in which I suspect that co-operation will intensify in the future, and upon which there are many compliments to be paid.
Cuba's potential regional role is not limited to the fight against drugs: imagine a market-oriented Cuba, reintegrated into the economy of Caribbean, and consider its impact on other countries in the region—particularly in areas such as tourism and agriculture. Signs of economic progress exist, which make such visions more than mere idle supposition. We can anticipate the trade-creating effect that a reintegrated Cuba would have on its neighbours in the Caribbean and its surrounding countries.
However, the reform process is faltering and Cuba is not getting any closer to democracy, which may hamper the development of her economic links in the region and further afield. Of course, we hope that economic reform in Cuba will continue. We also hope that our political relations will progress in tandem with our improving trade and investment links. However, difficulties remain: human rights and lack of fundamental freedoms remain areas of particular concern.
As hon. Members well know, Cuba is one of the few remaining communist countries in the world and she has not yet made significant political reforms leading to political pluralism. We favour dialogue and co-operation to encourage such progress, and to support a process of peaceful reform, a respect for human rights and fundamental freedoms, and broadening the scope of private initiative.
We have called for an ending of arbitrary detention and the release of political prisoners; fair trials with independent courts; freedom of expression; free media; the right of citizens to seek political or public office individually or as members of parties or organisations; publication of legislation; lifting of restrictions on non-governmental organisations; Cuba's accession to the international covenants on civil and political rights and economic, social and cultural rights; and co-operation with the United Nations Special Rapporteur on Human Rights—an issue that goes back to the time when I was in charge of the portfolio.
We fully endorse the United Nations Special Rapporteur's most recent report, dated 7 February 1996, in which he records that serious violations of civil and political rights continue to occur in Cuba. He goes on to state that political pluralism and freedom of expression still have not been officially recognised, and that those who defy these prohibitions are subject to persecution, discrimination and imprisonment.
If there has been any improvement in Cuba, it has been in the new climate of discussion that has emerged in intellectual sectors which called into question aspects of the system. I regret to inform hon. Members that the human rights situation appears to have deteriorated since 334 the report, with the arrests and apparent detention without trial of members of the dissident group Concilio Cubano. My hon. Friend the Minister of State has made clear to the Cubans our regret at this act.
I have identified areas where we would expect to see tangible progress to accompany our constructive involvement. Part of this involvement is—as the hon. Member for Hillhead was generous enough to recognise—in the form of financial funding. Hon. Members will be aware that, since the collapse of the socialist bloc, Cuba and her people have fallen on hard times due to a severe shrinkage of the economy. Although there is no bilateral aid programme, the United Kingdom contributes significantly to EU aid, which is approximately £18 million a year, and covers humanitarian assistance, support via non-governmental organisations and economic reform.
As part of our efforts to encourage economic reform in Cuba, Her Majesty's Government established a British partnership scheme in 1995 through which £150,000 is available for suitable projects. Three projects, totalling approximately £96,000, have been agreed so far. The first project is for the supply of office equipment to Cuba's new tax office. Taxes were reintroduced in 1995 as part of Cuba's economic reforms, so not everything about reform is good. The second project, designed to offer enlightenment about the workings of free markets, is for the supply of computer equipment, teaching materials and economics books to the Ministry of Economy and Planning's training school. The third project is for the training of Ministry of Foreign Commerce officials in macro-economics.
There has been an extensive exchange of business delegations, Ministers and officials responsible for trade, investment, health, justice and other areas. However, in line with Her Majesty's Government's policy, there are currently no plans for a Foreign and Commonwealth Office Minister to visit Cuba.
§ Mr. Gallowayrose—
§ Mr. DavisI shall not give way to the hon. Gentleman, as I have quite a lot to say—he will understand.
Because the United Kingdom enjoys normal trading relations with Cuba, Her Majesty's Government will continue to support the efforts of United Kingdom firms to take advantage of the growing civil market opportunities, especially investment and joint ventures, that will arise as Cuba continues with the reform of its economy along market-oriented lines.
To that end, the Foreign and Commonwealth Office is in the process of reinforcing its commercial staff at the British embassy in Havana. At £19.2 million, the level of British exports to Cuba remains small because of continuing Cuban indebtedness. Nevertheless, the United Kingdom ran a surplus of £11 million on its bilateral trade account with Cuba in 1995.
The Export Credits Guarantee Department is currently able to consider providing cover for projects and capital goods on cash or short terms of credit of up to two years, subject to suitable security. In addition, under the overseas investment insurance scheme, the ECGD can provide cover for investments against the risk of loss through war or expropriation, although I regret—as my hon. Friend the Minister of State informed the hon.
335 Gentleman by letter in November last year—that medium-term and long-term export credit cover is not available at present. There is a serious reason for that, on which I shall elaborate.
Cuba owes significant amounts of money to the ECGD as a result of claims paid to United Kingdom exporters several years ago. Before the ECGD can review its position, Cuba will have to normalise its position with the ECGD and, preferably, with other official creditors. This point is important, and I wanted to get it on the record. Once this has been done, the ECGD will undertake an objective review of Cuba's economic and political prospects to assess whether it is able and willing to service new debts on commercial terms in a proper manner.
In support of our trade promotion campaign, a bilateral investment promotion and protection agreement entered into force on 11 May 1995, as hon. Members will remember. Such agreements are designed to encourage investor confidence and investor flows by setting high standards of investment protection that are binding in international law.
My hon. Friend the Minister for Science and Technology has visited Cuba twice, most recently in September 1995. On that occasion, he signed an operating agreement on behalf of the Commonwealth Development Corporation that we hope will pave the way for further British investment in support of economic reform.
In the light of the efforts by Her Majesty's Government and the private sector alike, I shall now say a few words about the United States embargo against Cuba. Hon. Members will not be disappointed to learn that we cannot condone any activities that serve to hamper free trade. We have always held that the United States embargo is primarily a bilateral matter for the two Governments concerned. We do not consider the United Nations General Assembly the correct forum in which to discuss the matter, hence our traditional abstention on the vote on the annual Cuban resolution against the embargo.
§ Mr. Tony Lloyd (Stretford)What about the Helms-Burton Act?
§ Mr. DavisI was about to refer to that. We are deeply concerned by the measures in the Helms-Burton Act—which passed into United States law earlier this month—that serve further to tighten and internationalise the embargo. We have lobbied the United States Administration and Congress hard against extra-territorial and other provisions in the Act. Our lawyers are urgently studying the final details of the Act to assess its impact on British interests. We are considering what further action to take in conjunction with the EU and other key partners.
I am grateful to the hon. Gentleman for highlighting the fact that the Helms-Burton Act contains several objectionable provisions, in particular the attempt to extend the powers of United States courts over legitimate business activities of British companies who are active—or who would like to become active—in Cuba and to deny United States visas to British citizens who are trading legitimately with Cuba under British law.
We shall press the United States Administration to use the greatest possible discretion in implementing those provisions. We are deeply concerned about the potential damage that the Act could cause to our legitimate trading interests and are urgently considering the appropriate British response to it.
At this juncture, I reassure the hon. Gentleman that the Government will do whatever they can to protect legitimate British business interests. As my hon. Friend the Member for Lewes pointed out, the British Government deplore the recent shooting of two civil aircraft by the Cuban air force. Clearly, that has set back United States relations with Cuba. It could not be expected to do otherwise.
As we do not believe in isolating Cuba, we cannot share the sentiments that lie behind the Helms-Burton Act. Rather, with our EU partners, we feel that the best way to encourage economic and political reform in Cuba is to maintain a constructive dialogue as a means of encouraging reform and democracy there.