91999E2389

WRITTEN QUESTION P-2389/99

by Gorka Knörr Borràs (Verts/ALE) to the Commission

(1 December 1999)

Subject: Threats to European investments in Cuba

According to information from official sources, the Spanish undertaking Sol-Meliá has recently been subjected to pressure from the US authorities over its investments in Cuba.

Is the Commission aware of this pressure? Does it share the view that pressure of any kind on undertakings from a Member State amounts to a clear gesture of hostility to the European Union as a whole?

Has the Commission taken steps to examine the matter?

Should the existence of this pressure be confirmed, does the Commission intend to take any form of action in the framework of the agreements subscribed between the EU and the US?

Answer given by Mr Patten on behalf of the Commission

(16 December 1999)

The Commission is aware that the American authorities have been conducting enquiries under the Helms-Burton Act into the activities in Cuba of certain Community companies, including Sol-Meliá.

The Community-United States understanding of 18 May 1998 represents a package of commitments by both sides that attempt a full resolution of the bilateral issues raised by the United States extra-territorial legislation. This package forestalls action by the Community in the World trade organisation (WTO) to have this legislation declared incompatible with the United States' multilateral trade commitments. Since that understanding was reached, there has so far been no action against Community companies or individuals under the Helms-Burton Act. The Community did, however, make it clear, at the time of the understanding, that its commitment not to seek to establish a WTO panel against the Helms-Burton or Iran/Libya Sanctions Acts only stood as long as no action were taken against Community companies or individuals under these Acts.

In recent high-level contacts with the United States, the Commission has made its position on the issue of Helms-Burton and the Community's concerns about the Sol-Meliá case unequivocally clear. The United States has been urged to honour its commitments under the 18 May 1998 package with regard to Title IV of the Helms-Burton Act.

The Commission is following this matter very closely and will keep the Parliament informed of any significant new developments.