VZCZCXRO9593
OO RUEHCD RUEHGD RUEHHO RUEHMC RUEHNG RUEHNL RUEHRD RUEHRS RUEHTM
DE RUEHME #6820/01 3412207
ZNR UUUUU ZZH
O 072207Z DEC 06
FM AMEMBASSY MEXICO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 4507
INFO RUEHXC/ALL US CONSULATES IN MEXICO COLLECTIVE IMMEDIATE
RUEHUB/USINT HAVANA IMMEDIATE 0079

UNCLAS SECTION 01 OF 02 MEXICO 006820 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR WHA/CCA 
 
E.O. 12958: N/A 
TAGS: CU ETRD ETTC PREL MX
SUBJECT: MEXICO: REVIEW FOR SUSPENSION OF TITLE III OF 
LIBERTAD ACT 
 
REF: STATE 191752 
 
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Summary 
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¶1. (U) Post supports continued waiver of Title III provisions 
of the Libertad Act for Mexico.  The Mexican International 
Development Bank has begun the process of recovering debt 
from Cuba.  Mexico's exports to Cuba have decreased slightly 
in 2006 while imports increased over 250 percent. Relations 
under the previous administration were turbulent and 
President Calderon will likely try to improve affairs, 
however, Mexico continues to promote respect for human rights 
in Cuba and in the region.  End Summary. 
 
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MEXICAN INVESTMENT IN CUBA 
-------------------------- 
 
¶2. (SBU) The Havana branch of the Mexican International 
Development Bank, BANCOMEXT, has been closed since 2005. The 
Bank of Cuba and other entities on the island still have 
approximately 325 million USD in outstanding Mexican debt. 
In April, BANCOMEXT won a settlement of 35 million USD from 
the Bank of Cuba in an Italian Court.  BANCOMEXT is looking 
into using European courts to recover more of the debt. 
 
-------------------------- 
BILATERAL TRADE AGREEMENTS 
-------------------------- 
 
¶3. (U) In July 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).  No new agreements have been 
signed in recent years. 
 
¶4. (U) Mexico has seen a 25 percent decrease in its trade 
balance with Cuba for the first 3 quarters of 2006.  From 
January to September 2006, Mexican exports to Cuba were USD 
150 million while imports from Cuba were USD 38 million. 
Though the trade balance is still quite healthy at USD 112 
million to date, this represents a 9 percent decrease in 
exports and a 253 percent increase in imports over the same 
period in 2005. Comment: Cuba's increased exports may be a 
one-time event.  Half of Cuban investment is located in the 
provinces of Quintana Roo, Campeche and Yucatan, mostly in 
the hotel and fishing industries.  The large increase in 
imports from Cuba is likely related to investments to fix 
damages caused by Hurricanes Wilma. End Comment. 
 
----------------------------------------- 
Exchange Programs Between Mexico and Cuba 
----------------------------------------- 
 
¶4. (SBU) According to Ricardo Dominguez, the Secretariat of 
Foreign Relations (SRE) Director for Cuban, Haitian and 
Dominican affairs, there are no official exchange programs 
between Mexico and Cuba.  Medical travel to Cuba is usually 
paid for by individual travelers.  From time to time, groups 
of Cuban teachers work on literacy programs in marginalized 
areas of Mexico. 
 
-------------------------------------------- 
Promoting Democracy and Human Rights in Cuba 
-------------------------------------------- 
 
¶5. (SBU) GOM officials continue to insist that Mexico prefers 
to use multilateral fora to discuss human rights issues with 
Cuba (or other countries), rather than engage the GOC 
one-on-one.  The Mexican Embassy in Cuba eschews engaging 
with Cuban dissidents or human rights activists, which it 
believes could be construed as interfering in Cuba's internal 
affairs.  Although the two governments coordinate migration 
policies, to date they have not reached a formal migration 
accord.  During the past six months, President Fox on at 
least one occasion publicly called for the Government of Cuba 
to adhere more strictly to international human rights 
standards and to permit a more open and democratic political 
system to develop.  Mexican relations with Cuba were 
turbulent during the Fox administration.  Recently 
inaugurated President Felipe Calderon has said that he will 
seek a more constructive and less confrontational 
relationship with Cuba than prevailed under the Fox 
administration.  Nevertheless, we do not expect the new 
administration to overlook the issue of human rights on the 
 
MEXICO 00006820  002 OF 002 
 
 
island.  Shortly before assuming office, Calderon's Secretary 
of Foreign Relations, Patricia Espinosa Cantellano, 
acknowledged that Cuba suffered from "a difficult human 
rights situation, that there are problems that should be 
addressed, which explains why this subject is brought before 
international fora." 
 
----------------- 
Diplomatic Visits 
----------------- 
 
¶6. (SBU) Since the August 10, 2005, appointment of Jose 
Ignacio Pina Rojas as Mexico's Ambassador to Cuba, Mexico has 
had an Ambassador resident in Havana.  There have been no 
ministerial level visits to Cuba in the past six months. 
Mexico was represented at the recent Non-Aligned Movement 
summit held in Havana by diplomats resident in Havana, and 
did not send a delegation from Mexico City. 
 
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Comment 
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¶7. (SBU) Post strongly supports continued waiver of Title III 
provisions of the Libertad Act.  Implementing such provisions 
will make it harder for Mexico to support human rights 
advances in Cuba as well as weaken international condemnation 
of Cuban human rights violations, by adding another 
polarizing factor to the debate. 
 
 
Visit Mexico City's Classified Web Site at 
http://www.state.sgov.gov/p/wha/mexicocity 
BASSETT