VZCZCXYZ0005
RR RUEHWEB

DE RUEHSA #1826/01 1410846
ZNY CCCCC ZZH
R 210846Z MAY 07
FM AMEMBASSY PRETORIA
TO RUEHC/SECSTATE WASHDC 9915
INFO RUEHTN/AMCONSUL CAPE TOWN 4372
RUEHUB/USINT HAVANA 0014 C O N F I D E N T I A L PRETORIA 001826 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 05/21/2016 
TAGS:          
SUBJECT: SOUTH AFRICA 2007 RESPONSE TO 
CUBA:COUNTRY-BY-COUNTRY REVIEW REQUEST 
 
REF: A. SECSTATE 65523 
 
      B. 05 PRETORIA 004697 
      C. 07 PRETORIA 005152 
 
Classified By: Ambassador Bost for reasons 1.4(b) and (d) 
 
 1.  (C) Ref A requests post's assistance in obtaining updated 
information necessary to provide the President with an 
assessment of South Africa's policy toward Cuba for use in 
assessing whether to suspend Title III of the Cuban Liberty 
and Democratic Solidarity (LIBERTAD) Act. 
 
 2.  (C) South Africa's relations with Cuba continue to be 
warm.  The South African Government (SAG) policy towards Cuba 
is not based on advancing democracy, human rights and 
fundamental freedoms in Cuba but rather is predicated on 
close cooperation between the Cuban government and the 
African National Congress (ANC) during the struggle against 
apartheid.  The SAG regards Cuba as one of its stalwart 
anti-apartheid supporters.  As noted in Ref B, without Cuban 
financial and military assistance in the 1980's, the ANC 
believes South Africa's liberation from apartheid would have 
taken longer and caused the loss of more lives. 
 
 3.  (C) The Joint Consultative Mechanism between South Africa 
and Cuba was established in October 2001, and last met in 
South Africa in January 2006.  The next Joint Bilateral 
Commision meeting is tentatively scheduled for November 2007 
in South Africa.  There are a range of exchange programs 
between South Africa and Cuba, including programs that have 
brought Cuban doctors and teachers to South Africa, 
scholarships for black South Africans to study in Cuba, and 
agreements in the fields of sport and recreation, air 
service, merchant shipping, scientific and technological 
cooperation, and water resources management.  As detailed in 
Ref C, the program to send Cuban doctors to South Africa to 
work in public hospitals is winding down because too many of 
the doctors chose to remain in South Africa instead of 
returning to Cuba. In addition to cooperative agreements, 
Cuba and South Africa signed a Trade Agreement in 1997.  The 
SAG does not agree with the USG on policy toward Cuba and has 
consistently voted against USG-sponsored or supported human 
rights resolutions in international fora. 
 
 4.  (U) According to the following data, the economic 
relationship with Cuba is not significant to South Africa: 
 
-- South African exports to Cuba totaled R3.5 million 
(500,000 USD) and R1.6 million (230,000 USD) in 2005 and 
2006, respectively.  This constituted a considerable drop in 
exports that moved Cuba's ranking from 181 to 185 out of 245 
trade partners.  However, export figures for the first two 
months of 2007 at R750,000 (107,000 USD) show an increase 
over 2006 that put exports more in line with 2005 figures. 
Exports to Cuba constituted a minuscule portion of South 
Africa's total exports and were mainly comprised of chemical 
products, machinery and clothing textiles. 
 
-- South African imports from Cuba totaled R16.6 million (2.3 
million USD) and R22.9 million (3.3 million USD) in 2005 and 
2006, respectively.  January and February figures indicate a 
slight 14 percent decrease in imports by South Africa from 
the same period in 2006.  Imports from Cuba comprised less 
than one percent of all South African imports and were 
dominated by chemical products, as well as foodstuffs, 
beverages, tobacco products, and chemical products. 
 
-- South African foreign direct investment in Cuba totaled 
500,000 USD from 1990 through 1999.  Direct investment in 
Cuba constitutes such a minor number that the South Africa 
Reserve Bank does not currently list Cuban investment as a 
disaggregate number. 
 
 5.  (C) The Department of Trade and Industry (DTI) sent a 
delegation to Cuba in October 2006.  The delegation's main 
purpose was to discuss payment of outstanding debts owed to 
South Africa by Cuba, especially approximately 30 million USD 
of export credit guarantees extended in the 1990s.  According 
to one member of the delegation, Department of Trade and 
Industry official Cobs Pillay, the Export Credit Insurance 
Corporation of South Africa wanted to press Cuba by raising 
the debt issue in the Paris Club, but was overruled by DTI's 
political leadership in order to protect the bilateral 
relationship.  Pillay told us that the economic relationship 
between the countries is of minor importance to South Africa, 
with the few remaining ties reflecting little more than the 
close political connection created during the apartheid 
struggle in South Africa.  Pillay also commented that trade 
between the countries is not expected to increase as Cuba 
continues to press for trade under a barter system, while 
South Africa will only trade using a monetary basis. 
 
 
 6.  (C) Therefore, in post's view, a waiver of the Title III 
right to bring an action against entities and nationals of 
South Africa is not necessary to US national interests nor 
will it expedite a transition to democracy in Cuba.  The SAG 
has not cooperated with the USG on Cuba policy and is not 
likely to do so.  The SAG is unlikely to be influenced by the 
USG renewing or withholding a waiver. 
Bost