US threatens SuperClubs over Cuba hotel

SuperClubs, with properties in the Caribbean and Brazil, operates five hotels in Cuba, accounting for 1,500 rooms.

A senior US official, who declined to be identified, said top executives, shareholders, their spouses and children would be denied visas, starting 45 days after the date of a letter recently sent to SuperClubs. It was not clear how many people would be affected.

Last night, SuperClubs' vice-president for marketing, Zein Issa-Nakash confirmed the US action but sought to play down the incident.

"We are in correspondence with the State Department over one of our hotels in Cuba," she told the Observer. "We are in no doubt that the matter will be resolved shortly."
She declined to say which property was at issue.

Ironically, the news broke in Kingston yesterday as Issa, the SuperClubs principal, his wife Aida and daughter Muna, an executive in the organisation, arrived in New York from Jamaica. It was not clear if he would meet US officials over the issue.

SuperClubs has operated hotels in Cuba, mainly on management contracts, since 1990. The latest of its properties, the 442-room Grand Lido Varadero was opened on May 5.

The authority for cancelling visas, such as has been threatened against SuperClubs officials, is contained in legislation approved in 1996 - the so-called Helms-Burton Bill, aimed at tightening sanctions against the Fidel Castro regime.

Sponsored by former Senator Jesse Helms and Representative Dan Burton is to discourage foreign companies from investing in Cuba on properties confiscated from Americans, during the early days of the Cuban revolution.

The 45-day grace period will enable SuperClubs to reconsider its investment in Cuba, according to the official.

The Title IV provision of the Helms-Burton law has been invoked only on rare occasions over the years. Shortly after the legislation was signed by President Bill Clinton in 1996, it was imposed against Sherritt International Corp, a Canadian mining firm.

Two weeks ago, the Bush administration vowed to aggressively pursue enforcement of Title IV as part of a series of measures aimed at weakening Fidel Castro's government.

The new policy also calls for deployment of additional personnel to strengthen enforcement of Title IV.
Representative Ileana Ros-Lehtinen, a Cuban-American Republican from South Florida, has strongly supported enforcement of Title IV as a means of discouraging foreign companies from investing in Cuba.

She said she had not been notified of the action against SuperClubs but added that it did not come as a surprise because of Bush's recent endorsement of Title IV.
"If true, this is great news," Ros-Lehtinen told the Associated Press.

Robert Muse, an international lawyer with expertise on Cuba, said the administration probably pursued a Jamaica-based target because the country lacks strategic importance compared with some European Union countries that could be subject to Title IV action.

The most prominent potential EU target would be the Spanish-based Sol Melia hotel chain, which has numerous properties in Cuba.

Muse suggested that, at least until recently, the Bush administration had no incentive to impose Title IV sanctions against Spanish interests because of Spain's troop commitment to Iraq.

The EU regards Title IV as a violation of World Trade Organisation rules but will not file a complaint so long as no EU company is targeted, Muse said.

In 1960, numerous American properties in Cuba were confiscated without compensation. In the early 1970s, a US government commission validated 5,911 property claims made by American citizens.

SuperClubs properties in Cuba

Breezes Jibacoa
Breezes Varadero
Grand Lido Varadero
Breeze Holguin
Breezes Cayococo

http://www.jamaicaobserver.com/news/html/20040521T000000-0500_60184_OBS_US_THREATENS_SUPERCLUBS_OVER_CUBA_HOTEL.asp