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12.44 pm
Mr. Tim Rathbone (Lewes): I thoroughly endorse everything that the hon. Member for Glasgow, Hillhead (Mr. Galloway) said, and I add a brief rider. The hon. Gentleman urged the Minister to go to Cuba and have a talk with Fidel Castro. I add emphasis to that urging,for the following reason.
As a Government and as a country, we should make it clear to Fidel Castro that he should not undertake the deplorable actions that he took in shooting down the aeroplanes. There was no excuse for it, even if it took place in Cuban air space--and there are questions about that. It seems to me to have been the action of a man who has been backed into a corner and is trying to continue to resist all efforts to develop his country, in which, as the hon. Member for Hillhead said, Britain has been in the forefront.
The Minister of State, Foreign and Commonwealth Office (Mr. David Davis):
I am grateful to the hon. Member for Glasgow, Hillhead (Mr. Galloway) for initiating the debate. He knows my interest in Cuba.I thank him for his comments, although I suspect that his commendation of me may be fatal to my career. He knows that we take our relationship with Cuba very seriously.I shall try, in what remains of the debate, to answer as many of his questions as I can, but I have no doubt that my hon. Friend the Minister of State with responsibility for Cuba and Latin America, the hon. Member for Upminster (Sir N. Bonsor), who is unfortunately out of the country, will respond by letter to the items that I do not deal with.
We have maintained continuous diplomatic relations with Cuba, and a British embassy in Havana, since the end of the second world war. Nothing has changed in that time. I think that hon. Members will agree that Cuba has the potential to be a significant market for exporters and investors alike. Her Majesty's Government therefore actively encourage trade between our two countries,as the hon. Member for Hillhead and my hon. Friend the Member for Lewes (Mr. Rathbone) said.
It is also important to note that many of our closest partners have wide-ranging and important interests in Cuba--notably our European Union partners, which the hon. Member for Hillhead mentioned, Canada and,in different ways, the United States--and that we consult all of them on developments.
There is recent evidence that improvements in the political and economic position in Cuba are still far from complete, but I believe that the situation is gradually--I emphasise gradually--changing for the better. We believe that Cuba's potential role in the Caribbean is as yet a largely unanswered question, but it is one of undeniable significance.
Drugs and drug-related crime pose the biggest threat to the security and stability of the Caribbean islands. Cuba, by virtue of her geographical position astride the air and sea routes from South America to the United States and Europe, is an especially attractive target for drug traffickers. The Cuban Government recognise that threat and the importance of close international co-operation in the fight against drugs.
The United Kingdom's counter-narcotics co-operation with Cuba is increasing. As recently as last week, the Cuban Justice Minister, who heads the Drugs Commission, visited the United Kingdom to help strengthen that mutually beneficial relationship.
In the past two years, Her Majesty's Government have provided bilateral assistance in the form of equipment for Cuban customs and police. We have also provided funding for the training component of the United Nations drug control programme project to bolster the enforcement capabilities of Cuban anti-drugs agencies. During the practical part of one such course, run by Her Majesty's Customs and Excise, there was a significant cocaine seizure at Havana airport--a more rapid return on
a training course than is usually expected--and, only last month, United Kingdom-Cuban customs co-operation led to the seizure of 165 kg of cocaine.
We are also working closely with the European Commission and our European Union partners to produce a report on the drugs problem in the Caribbean which will identify weaknesses and recommend ways in which the EU might assist. As part of that initiative, representatives of an EU study group recently visited Cuba, where they were offered every support by the Cuban Government. Anti-drugs co-operation is an area in which I suspect that co-operation will intensify in the future, and upon which there are many compliments to be paid.
Cuba's potential regional role is not limited to the fight against drugs: imagine a market-oriented Cuba, reintegrated into the economy of Caribbean, and consider its impact on other countries in the region--particularly in areas such as tourism and agriculture. Signs of economic progress exist, which make such visions more than mere idle supposition. We can anticipate the trade-creating effect that a reintegrated Cuba would have on its neighbours in the Caribbean and its surrounding countries.
However, the reform process is faltering and Cuba is not getting any closer to democracy, which may hamper the development of her economic links in the region and further afield. Of course, we hope that economic reform in Cuba will continue. We also hope that our political relations will progress in tandem with our improving trade and investment links. However, difficulties remain: human rights and lack of fundamental freedoms remain areas of particular concern.
As hon. Members well know, Cuba is one of the few remaining communist countries in the world and she has not yet made significant political reforms leading to political pluralism. We favour dialogue and co-operation to encourage such progress, and to support a process of peaceful reform, a respect for human rights and fundamental freedoms, and broadening the scope of private initiative.
We have called for an ending of arbitrary detention and the release of political prisoners; fair trials with independent courts; freedom of expression; free media; the right of citizens to seek political or public office individually or as members of parties or organisations; publication of legislation; lifting of restrictions on non-governmental organisations; Cuba's accession to the international covenants on civil and political rights and economic, social and cultural rights; and co-operation with the United Nations Special Rapporteur on Human Rights--an issue that goes back to the time when I was in charge of the portfolio.
We fully endorse the United Nations Special Rapporteur's most recent report, dated 7 February 1996, in which he records that serious violations of civil and political rights continue to occur in Cuba. He goes on to state that political pluralism and freedom of expression still have not been officially recognised, and that those who defy these prohibitions are subject to persecution, discrimination and imprisonment.
If there has been any improvement in Cuba, it has been in the new climate of discussion that has emerged in intellectual sectors which called into question aspects of the system. I regret to inform hon. Members that the human rights situation appears to have deteriorated since
the report, with the arrests and apparent detention without trial of members of the dissident group Concilio Cubano. My hon. Friend the Minister of State has made clear to the Cubans our regret at this act.
I have identified areas where we would expect to see tangible progress to accompany our constructive involvement. Part of this involvement is--as the hon. Member for Hillhead was generous enough to recognise--in the form of financial funding. Hon. Members will be aware that, since the collapse of the socialist bloc, Cuba and her people have fallen on hard times due to a severe shrinkage of the economy. Although there is no bilateral aid programme, the United Kingdom contributes significantly to EU aid, which is approximately £18 million a year, and covers humanitarian assistance, support via non-governmental organisations and economic reform.
As part of our efforts to encourage economic reform in Cuba, Her Majesty's Government established a British partnership scheme in 1995 through which £150,000 is available for suitable projects. Three projects, totalling approximately £96,000, have been agreed so far. The first project is for the supply of office equipment to Cuba's new tax office. Taxes were reintroduced in 1995 as part of Cuba's economic reforms, so not everything about reform is good. The second project, designed to offer enlightenment about the workings of free markets, is for the supply of computer equipment, teaching materials and economics books to the Ministry of Economy and Planning's training school. The third project is for the training of Ministry of Foreign Commerce officials in macro-economics.
There has been an extensive exchange of business delegations, Ministers and officials responsible for trade, investment, health, justice and other areas. However,in line with Her Majesty's Government's policy, there are currently no plans for a Foreign and Commonwealth Office Minister to visit Cuba.
Mr. Davis:
I shall not give way to the hon. Gentleman, as I have quite a lot to say--he will understand.
Because the United Kingdom enjoys normal trading relations with Cuba, Her Majesty's Government will continue to support the efforts of United Kingdom firms to take advantage of the growing civil market opportunities, especially investment and joint ventures, that will arise as Cuba continues with the reform of its economy along market-oriented lines.
To that end, the Foreign and Commonwealth Office is in the process of reinforcing its commercial staff at the British embassy in Havana. At £19.2 million, the level of British exports to Cuba remains small because of continuing Cuban indebtedness. Nevertheless, the United Kingdom ran a surplus of £11 million on its bilateral trade account with Cuba in 1995.
The Export Credits Guarantee Department is currently able to consider providing cover for projects and capital goods on cash or short terms of credit of up to two years, subject to suitable security. In addition, under the overseas investment insurance scheme, the ECGD can provide cover for investments against the risk of loss through war or expropriation, although I regret--as my hon. Friend the Minister of State informed the hon.
Gentleman by letter in November last year--that medium-term and long-term export credit cover is not available at present. There is a serious reason for that, on which I shall elaborate.
Cuba owes significant amounts of money to the ECGD as a result of claims paid to United Kingdom exporters several years ago. Before the ECGD can review its position, Cuba will have to normalise its position with the ECGD and, preferably, with other official creditors. This point is important, and I wanted to get it on the record. Once this has been done, the ECGD will undertake an objective review of Cuba's economic and political prospects to assess whether it is able and willing to service new debts on commercial terms in a proper manner.
In support of our trade promotion campaign, a bilateral investment promotion and protection agreement entered into force on 11 May 1995, as hon. Members will remember. Such agreements are designed to encourage investor confidence and investor flows by setting high standards of investment protection that are binding in international law.
My hon. Friend the Minister for Science and Technology has visited Cuba twice, most recently in September 1995. On that occasion, he signed an operating agreement on behalf of the Commonwealth Development Corporation that we hope will pave the way for further British investment in support of economic reform.
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