VZCZCXRO7213
RR RUEHCD RUEHGD RUEHHO RUEHMC RUEHNG RUEHNL RUEHRD RUEHRS RUEHTM
DE RUEHME #2279/01 1172042
ZNR UUUUU ZZH
R 272042Z APR 06
FM AMEMBASSY MEXICO
TO RUEHC/SECSTATE WASHDC 0566
INFO RUEHXC/ALL US CONSULATES IN MEXICO COLLECTIVE

UNCLAS SECTION 01 OF 02 MEXICO 002279 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPT FPR WHA/CCA 
 
E.O. 12958: N/A 
TAGS: CU ETRD ETTC PREL MX
SUBJECT: MEXICO:  NSC-DIRECTED REVIEW OF TITLE III OF THE 
LIBERTAD ACT 
 
REF: A. STATE 57782 
 
     ¶B. 05 MEXICO 7186 
 
¶1. (SBU)  Summary:  Post supports continued waiver of Title 
III provisions of the Libertad Act for Mexico.  Mexico 
continues to have difficult relations with Cuba despite the 
return of diplomatic envoys in July 2004.  Seasoned diplomat 
Jose Ignacio Pina Rojas replaced Roberta Lajous as Mexico's 
ambassador to Cuba in August 2005.  Cuba's outstanding debt 
of $400 million (plus interest) to Mexico remained unpaid. 
Mexican exports to Cuba increased 25 percent in 2005 to USD 
222 million.  Cuban exports to Mexico, however, decreased 24 
percent to  USD 20 million.  Despite the current state of 
relations, Mexico continues to promote respect for human 
rights in Cuba and in the region.  End Summary. 
 
MEXICAN INVESTMENT IN CUBA 
-------------------------- 
 
¶2.  According BANCOMEXT, in 2005, seventeen Cuban businesses 
shared USD 730 million in Mexican FDI. These businesses are 
in the tourism, construction, basic industry, food, sugar and 
agriculture sectors.  Cuba still has USD 400 million in 
outstanding Mexican debt caused by the closure of the Havana 
branch of the Mexican International Development bank, 
BANCOMEXT,  in Havana (Ref B).  BANCOMEXT estimates that it 
is losing USD 2.75 million dollars in interest (all figures 
expressed in USD assuming 2005 average interest rate of 10.89 
pesos per dollar) annually.  No significant discussions of 
debt repayment have occurred since 2004. 
 
BILATERAL TRADE AGREEMENTS BETWEEN MEXICO AND CUBA 
--------------------------------------------- ----- 
 
¶3. In July of 2002 Mexico and Cuba entered into a 
Complementary Economic Agreement (ACE-51).  ACE's are similar 
to Free Trade Agreements but only include some sectors.  In 
2001 Mexico and Cuba signed an Investment Promotion and 
Protection Agreement (APRI).  Mexico enjoyed a healthy trade 
balance with Cuba, exporting USD 222 million (mainly food and 
food industry products) while importing USD 20 million 
(mainly alcohol, cigars and seafood) in 2005. This represents 
a 25 percent increase in exports and a four percent decrease 
in imports over 2004. 
 
EXCHANGE PROGRAMS BETWEEN MEXICO AND CUBA 
----------------------------------------- 
 
¶4. (SBU) There are no known official exchange programs 
between Mexico and Cuba.  Medical travel to Cuba is usually 
paid for by individual travelers. 
 
PROMOTING DEMOCRACY AND HUMAN RIGHTS IN CUBA 
-------------------------------------------- 
 
¶5. (SBU) SRE officials continue to insist that Mexico prefers 
to use multilateral fora to discuss human rights issues with 
Cuba or other countries.  However, President Fox publicly 
noted during APEC in November 2004 that Mexico has 
differences with Cuba because Mexico "respects democracy and 
human rights."  Mexico cast its vote with the U.S. at the 
UNHRC every year under the Fox administration, calling for a 
review of the human rights situation in Cuba by the Special 
Rapporteur. 
 
DIPLOMATIC VISITS 
----------------- 
 
¶6. (SBU) There have been no high-level diplomatic visits 
between Cuba and Mexico in the past six months.  On August 
10, 2005, the Mexican Senate ratified Jose Ignacio Pina Rojas 
as Mexico's new Ambassador to Cuba and laid out his 
priorities: work toward a migration accord to control the 
flow of illegal Cubans entering Mexico and avoid meetings 
with dissidents that would further negatively affect the 
bilateral relationship.  To date, little has been done to 
curb the flow of illegal Cubans entering Mexico.  Cuban 
Foreign Minister Felipe Perez Roque stated in 2005 that the 
Cuban-Mexican relationship had not returned to normal and 
that he did not expect relations to normalize under the 
current Mexican administration.  Mexican Foreign Secretary 
Luis Derbez has deemed relations between the two countries as 
"cordial and positive." 
 
¶7. (SBU) In November 2005 a multi-party delegation from 
Mexico's Congress met in Monterrey, Mexico to conduct the 
eighth inter-parliamentary meeting with Cuban counterparts. 
In their final declaration, members of the Mexican delegation 
expressed solidarity and support for the five imprisoned 
 
MEXICO 00002279  002 OF 002 
 
 
Cubans accused of spying in the United States in return for 
Cuban support for Mexico's defense of Mexican citizens on 
death row in the U.S.  In addition, both delegations reached 
agreement on further cooperation for prevention and reduction 
of damages due to natural 
disasters, and agreed to work closer together on trade, 
education, cultural and health issues. 
 
Comment 
------- 
 
¶8. (SBU) Post supports continued waiver of Title III 
provisions of the Libertad Act. 
 
 
 
 
Visit Mexico City's Classified Web Site at 
http://www.state.sgov.gov/p/wha/mexicocity 
 
GARZA