Statement on U.S.-EU Understanding
on Expropriated Property
Statement by Secretary of State Madeleine K. Albright,
London, United Kingdom, May 18, 1998
As released by the Office of the Spokesman
U.S. Department of State
U.S.-EU Understanding on Expropriated Property
I am pleased that the United States and the European Union
have reached a path-breaking Understanding that will inhibit
and deter the acquisition of expropriated property around
the world, including Cuba.
This arrangement sends a strong signal of support for the
protection of property rights. It advances emphatically a
high-priority goal of the Administration, one we share with
many in the Congress, including the Chairman of the Senate
Foreign Relations Committee, Senator Helms, and Senator Coverdell.
The disciplines which we each will apply are multifaceted:
no government loans, no government grants, no subsidies, no
fiscal advantages, no government guarantees, no government
political risk insurance, no government equity participation,
and no government commercial advocacy in support of investments
in illegally expropriated property; joint or coordinated approaches
to the expropriating state; and more. A Registry of Claims
will be established for those who contend that their property
was illegally expropriated, commercial assistance will need
to take appropriate account of information on the Registry
in considering applications for commercial assistance. And
as for any property that may be illegally expropriated in
the future, each of us will add to these disciplines an outright
ban on investments.
The Europeans now acknowledge that one of the primary tools
that the Cuban regime used to expropriate property from U.S.
citizens appears to have been contrary to international law.
In this regard, we have established a special provision dealing
with what the Understanding calls countries with "an
established record of repeated expropriation in contravention
of international law"." Under this provision, EU
commercial assistance agencies - institutions like our OPIC
and Eximbank - will review applications for commercial assistance
(e.g., political risk insurance) in Cuba, so as not to assist
projects involving the acquisition of illegally expropriated
property. The Europeans and we have agreed to maintain close
contacts on the implementation of this provision.
This Understanding advances in a most significant way the
goals of the supporters of the Helms Burton Act, such as the
co-sponsors Senator Helms and Congressman Burton, along with
Senator Torrecelli, Members of Congress Gilman, Menendez,
Ros-Lehtinen and Diaz-Balart, as well as many others. The
disciplines that the EU and we have adopted can do more than
the U.S., acting alone, can do to advance the interests of
U.S. claimants and to protect investors around the world.
The Understanding will also ensure that Castro is not able
to put illegally expropriated U.S. property on a fire sale
in a desperate effort to undo the results of 38 years of political
repression and economic mismanagement. For these reasons,
the Administration intends, as indicated in the April 11,
1997 Understanding between the U.S. and the EU, to seek legislation
authorizing the President to waive Title IV of the Helms Burton
Act with respect to countries implementing the disciplines
set out in this Understanding.
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