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35 Memorandum To: President Obama From: Ted Piccone Date: January 23, 2014 Subject: Reach Out to Cuba Summary and Recommendations Your decision in 2009 to free up the flow of people, remittances and exchanges from the United States to Cuba was the right call at the right time. These steps have coincided with, and facilitated, Cuba’s own process of reform, which continues, in fits and starts, to create new opportunities for the Cuban people to live independently of the state. Bilateral cooperation on migration, counternarcotics , the environment, Colombia’s peace talks and aviation security has improved. More importantly, potential flashpoints on issues such as the Snowden affair and arms trade with North Korea have been contained. Now is the time to double down on this policy and open additional pathways to engagement. Your call in Miami last November to be more “creative” and “thoughtful” as we update our approach to Havana sent an important signal to key audiences here and in Cuba. Your handshake with Raúl Castro at Nelson Mandela’s memorial also made headlines worldwide and was wellreceived by many editorial boards across the country. These lay the groundwork for new initiatives in the next few months. To build on this positive momentum, I recommend a package of unilateral steps to be announced under your executive authority to expand trade, travel and communications with the Cuban people. These would include: direct assistance to Cuba’s burgeoning small and medium enterprises, expanded general licenses for travel, additions to the list of authorized exports, lifting the cap on cash and gifts that non-Cuban-Americans can send to the island, and removal of Cuba from the list of state sponsors of terrorism. At the same time, we would continue to honor the sacrifice of Cuba’s human rights defenders and bring new attention to the private-sector entrepreneurs who are taking risks to open businesses. DOUBLE DOWNS 36 ted piccone These measures would draw support from key political and business constituencies in the United States (including Florida), help accelerate further change on the island, and pave the way for improved U.S. relations in the region. They would leverage your presidential leadership as a further catalyst for a historic process of reconciliation now underway and long overdue. Background Since your decision to relax tough sanctions on Cuba in 2009, cash and gift transfers to Cuban families cumulatively have reached an estimated $8.5 billion; the number of American visitors to the island (mostly Cuban-Americans ) has climbed to over 400,000 a year; and humanitarian exports such as food and medicines have averaged over $430 million a year. These resources are catalyzing a host of positive developments as the Cuban government, under the more pragmatic leadership of Raúl Castro, undertakes reforms to its economic and social model to reduce dependence on the Cuban state. An emerging class of 450,000 entrepreneurs, with the help of cash and goods transfers from the Cuban diaspora that you helped unleash, is creating new jobs. Citizens can buy and sell their cars and homes—an increasingly attractive option for Cuban-Americans interested in returning to the island. Farmers are now permitted to sell their goods directly to state-owned enterprises , joint ventures and businesses such as hotels and restaurants. Government employees are allowed to moonlight in the private sector, supplementing their meager state salaries. A growing number of Cubans are taking advantage of new rules that make travel back and forth to the island easier, reinforcing old and new ties to the United States. As these sectors struggle to establish and grow their businesses, they are already forming their own interest groups, diversifying civil society, and opening new windows of opportunity for the United States. While the Cuban government needs to do much more to improve the general climate for foreign investment and market-based economic development , the seeds for growth have been planted and are beginning to bud. Now is the time to help the emerging class of entrepreneurs by removing unduly harsh restrictions on trade with U.S. citizens. To that end, you should permit any U.S. commercial or economic activity that would provide direct services, donations and goods to Cubans authorized to open private enterprises. These permitted categories include construction and remodeling, real estate, transportation , technology, artisanal goods, food and beverages, room rentals and personal and technical services. These entrepreneurs are the future of Cuba’s [18.191.223.123] Project MUSE (2024-04-26 03:54 GMT...

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