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RHMFISS/CDR USSOUTHCOM MIAMI FL
RUEHUB/USINT HAVANA 0070
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C O N F I D E N T I A L PANAMA 000834 
 
SIPDIS 
 
SIPDIS 
 
FOR STATE WHA/CEN TELLO 
FOR STATE WHA/CCA 
 
E.O. 12958: DECL: 05/21/2017 
TAGS: ETRD ETTC PREL PM CU
SUBJECT: PANAMA/CUBA RELATIONSHIP: LIBERTAD ACT, TITLE III 
RESPONSE 
 
REF: A. STATE 65523 
     ¶B. PANAMA 02357 
 
Classified By: Classified By: A/DCM Brian Walch for Reasons 1.4(b)(d) 
 
¶1. (U) Post provides the following information in response to 
Ref. A request.  Responses are keyed to the specific 
questions identified in Ref. A.  Ref. B is Post's information 
covering the May-November 2006 time period. Post's answers to 
REFTEL A questions are based on information obtained from the 
GOP's Comptroller General's offices, the GOP Ministry of 
Foreign Relations, the administrative offices of the Colon 
Free Zone, various industry and third country publications, 
and conversations with various Panamanian business executives. 
 
--------------------------------------- 
Nature of Panamanian Investments in Cuba 
---------------------------------------- 
 
¶2. (C) Question 1: What are the nature of investments (and 
names, if known) that host country businesses have in Cuba? 
 
¶3. (U) According to an investment study prepared by Spain's 
Society for Industrial Promotion and Reconversion (SPRI), of 
the 43 foreign companies operating in Cuba, six are 
Panamanian. 
 
¶4. (U) The SPRI study states that Panamanian companies 
participate in 18 cooperative production projects in Cuba, 
second only to Spain, which has 29 such projects. 
 
¶5. (U) Panama-based Copa Airlines maintains offices in Havana 
and has approximately 20 weekly non-stop flights from Panama 
City to Havana.  According to various business executives, 
Copa Airlines is the only major Panamanian company operating 
in Cuba. 
 
¶6. (U) According to the GOP's Ministry of Commerce and 
Industry (MICI), Panamanian exports to Cuba declined from a 
high of $4.3 million in 1998 to $469,590 in 2005. Panamanian 
exports to Cuba rebounded during 2006, totaling $1.0 million. 
Principal exports to Cuba are cosmetics, beauty supplies, 
juices, vegetable extracts, and aluminum. 
 
¶7. (U) According to MICI, Cuban exports to Panama have ranged 
from a high of $1,151,673 in 2000 to a low of $142,877 in 
¶2002.  However, during 2006 Cuban exports to Panama jumped to 
$20.7 million; of which $19.9 million was clinker (the 
principal ingredient in most cement products), principally 
for use in Panama's booming construction industry. 
 
¶8. (SBU) The bulk of Panamanian/Cuban commerce occurs through 
Panama's Colon Free Zone (CFZ).  According to the CFZ, of the 
approximately 2,400 companies operating in the CFZ, 
approximately 95 do business with Cuba.  Cuban companies and 
Panamanian shell companies owned by Cubans or the GOC use the 
CFZ as a transit point to import U.S. and other goods to Cuba 
to circumvent the U.S. trade embargo. As of 2004 (the most 
recent data available), Cuban companies owed various 
companies in the CFZ approximately $200 million for goods 
previously delivered. According to the CFZ, approximately, 
$195 million of goods were re-exported to Cuba during 2004. 
 
¶9. (U) The GOP does not compile statistics on the amount of 
foreign direct investment made by Panamanian companies in 
other countries. 
 
-------------------------- 
Bilateral Trade Agreements 
-------------------------- 
 
¶10. (C) Question 2: Are there bilateral trade agreements 
between the host country and Cuba? 
 
¶11. (U) On January 27, 1999, the GOP, under then President 
Ernesto Perez Balladares' Administration, and GOC signed an 
Agreement for the Reciprocal Promotion and Protection of 
Investments that, among other things, guaranteed that each 
country would grant the other investment protections and 
rights no less than those received by any other third 
country. 
 
¶12. (U) On August 31, 2000, the GOP, under then President 
Mireya Moscoso's Administration, and GOC signed an Agreement 
Relating to Airlines Services between their Respective 
Territories and Onward Destinations. 
 
----------------- 
Exchange Programs 
----------------- 
 
¶13. (C) Question 3: Are there any exchange programs between 
host country and Cuba, including but not limited to: 
scholarships for host country national to study in Cuba; 
Cuban-paid medical travel for host country nationals; and 
Cuban doctors working in host country? 
 
¶14. (U) On February 16, 1999, the GOP, under the Balladares 
Administration, and GOC signed an Agreement for Cultural and 
Educational Cooperation. 
 
¶15. (U) On March 17, 2006, the GOP, under current President 
Martin Torrijos' Administration, and GOC signed a Memorandum 
of Understanding eliminating the need for visas to travel 
between Panama and Cuba for persons holding diplomatic, 
official, consular or special passports.  The Memorandum of 
Understanding stated that the purpose of eliminating the visa 
requirement was to facilitate travel and exchanges between 
officials of both countries in order to contribute to an 
expansion in bilateral cooperation 
 
¶16. (U) The GOP actively supports the GOC's Operation Miracle 
(Operacion Milagro) eye surgery program.  According to the 
GOP, approximately 4,000 Panamanians have been treated by 
Cuban doctors in Panama and in Cuba.  The GOC sponsors both 
free travel to Cuba and free eye care.  Operation Miracle has 
received the personal support of First Lady Vivian Fernandez 
de Torrijos, who has traveled to the airport to visit 
Panamanians departing for Cuba.  The First Lady, along with 
the GOP Vice Minister of Health, Dora Jara, has supervised 
and coordinated all Operation Miracle activities. The GOC has 
two eye doctors working in Panama on a rotating basis.  These 
doctors perform pre-screening of Operation Miracle patients 
at GOP health facilities.  Both GOP and GOC officials 
frequently discuss expanding the reach of Operation Miracle 
in Panama. The GOP praised Operation Miracle, in presidential 
speeches, by sponsoring full-page newspapers ads extolling 
the virtues of Operation Miracle, and on the websites of its 
various government agencies.   The GOP listed Operation 
Miracle as one of greatest accomplishments in a full-page 
GOP-paid ad regarding its social development achievements. 
On March 2, 2007, GOP FM Samuel Lewis Navarro and GOC FM 
Felipe Perez visited the jointly-operated Panamanian-Cuban 
Eye Surgery Treatment Center in Veraguas, Panama to highlight 
the work of Operation Miracle. 
 
¶17. (U) Panama and Cuba have student exchange programs. There 
are currently approximately 400 Panamanian medical students 
at the Latin American School of Medicine in Cuba. 
 
--------------------------------------- 
Promotion of Democracy and Human Rights 
--------------------------------------- 
 
¶18. (C) Question 4: Has the host country, in Post's opinion, 
worked to promote the advancement of democracy and human 
rights in Cuba? This can include: public statements or other 
governmental actions, such as resolutions in the national 
assemblies condemning human rights abuses in Cuba; statements 
in support of democracy following the July 31, 2006 handover 
of power from Fidel to Raul Castro; actions in support of 
civil society in Cuba through host country's diplomatic 
missions or other fora. 
 
¶19. (C) The GOP has not made any public statements in support 
of democracy or human rights in Cuba during 2007.  The GOP 
appears to have done little to support the advancement of 
democracy or human rights in Cuba.  The GOP is strengthening 
its relationship with Cuba through increased 
government-to-government contact and through exchange 
 
programs such as Operation Miracle.  The GOP does not support 
any proactive steps to further democracy upon President 
Castro's death or as a result of the transfer of power to 
Raul Castro.  While it claims to press the GOC in private to 
facilitate democracy on the island, the GOP in its 
conversations with USG officials emphasizes the need for 
stability in Cuba and downplays encouraging democracy.  The 
GOP, however, advocates lifting the USG trade embargo on 
Cuba. 
 
----------------- 
Diplomatic Visits 
----------------- 
 
¶20. (C) Question 5: Have there been any high-level diplomatic 
visits between Cuba and host country in the past six months? 
 
¶21. (U) The GOP and GOC re-established diplomatic relations 
on August 20, 2005 after diplomatic ties were severed in 
August 2004. 
 
¶22. (U) Panamanian companies attended the 24th Annual 
International Trade Fair in Havana, Cuba held October 
30-November 4, 2006. 
 
¶23. (U) On November 3-10, 2006, members of the Cuban Civil 
Aviation Authority attended the Latin American Civil Aviation 
Conference in Panama. 
 
¶24. (U) During the week of November 13, 2006, the President 
of Panama's National Assembly, Elias Castillo, visited Cuba. 
He met with the President of the Cuban National Assembly 
Ricardo Alarcon and signed an accord to reinforce 
inter-legislative relations. 
 
¶25. (U) During the week of November 20, 2006, Alarcon visited 
Panama to meet with President Torrijos, FM Navarro and 
members of the Panama-Cuba Parliamentary Group.  Alarcon also 
attended the Latin America and Caribbean Congress for the 
Independence of Puerto Rico held in Panama, an event at which 
President Torrijos called for placing Puerto Rico on the path 
to independence. 
 
¶26. (U) From January 2-6, 2007, President Torrijos visited 
Cuba, ostensibly on a "private" trip, to highlight Operation 
Miracle, visit Panamanian medical students and have his 
middle child, Daniel, receive medical treatment for cerebral 
palsy. 
 
¶27. (U) From February 27-March 3, 2007, the GOP hosted the 
First Bilateral National Commission Panama/Cuba.  GOC FM 
Felipe Perez lead the GOC delegation.  During the meeting 
four bilateral agreements were signed regarding the transfer 
of criminals, judicial cooperation, recognition of university 
level degrees, and documenting and archiving historical 
diplomatic documents. 
EATON