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Cablegate: Request for Waiver of Section 565 Prohibition

VZCZCXYZ0006
PP RUEHWEB

DE RUEHUB #1186 3612124
ZNR UUUUU ZZH
P 272124Z DEC 07
FM USINT HAVANA
TO SECSTATE WASHDC PRIORITY 2642

UNCLAS HAVANA 001186

SIPDIS

SIPDIS

E.O. 12958: N/A
TAGS: ABLD AFIN AMGT ASUP ECON KBCT PHUM
SUBJECT: REQUEST FOR WAIVER OF SECTION 565 PROHIBITION
AGAINST CONTRACTING WITH FIRMS THAT COMPLY WITH THE ARAB
LEAGUE BOYCOTT OR DISCRIMINATE ON THE BASIS OF RELIGION

REF: STATE 166398

1. USINT Havana requests a waiver of Section 565 of Title V,
Part C of the Foreign Relations Authorization Act, Fiscal
years 1994 and 1995 (PL 103-236) (22 USC 2679c) as it applies
to contracts that expend funds appropriated to the Department
of State, and that would go to persons who comply with the
Arab league Boycott of Israel, or who discriminates in the
award of subcontracts on the basis of religion.

2. In accordance with the terms of both restrictions, USINT
Havana would be required to avoid contracting with the Cuban
government, or with entities under the control of the Cuban
government. However, the Cuban government requires all
diplomatic missions to contract with one government entity,
CUBALSE, for all requirements for supplies and services. As
the sole supplier to the diplomatic community, there is no
option for USINT Havana to seek another source. CUBALSE
writes all the contracts itself and does not accept contracts
written by others, nor will it accept any additional clauses
of any nature by anyone. The Cuban government also restricts
severely the importation of goods and services from outside
of Cuba. Without local suppliers of goods and services,
USINT Havana would be unable to carry out the functions
assigned to it as a diplomatic mission.
PARMLY

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