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<title>CANADA ENCOURAGED BY U.S. PRESIDENT'S DECISIONON HELMS-BURTON ACT</title>
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<p><font face="Courier"></font><font face="Univers" size="+2"></font><font face="Univers" size="+2">July 16, 1996 No. 127</font></p>
<p align="CENTER"><font face="Univers" size="+2">CANADA ENCOURAGED BY U.S. PRESIDENT'S DECISION</font></p>
<p align="CENTER"><font face="Univers" size="+2">ON HELMS-BURTON ACT</font></p>
<p><font face="Courier">Foreign Affairs Minister Lloyd Axworthy, Minister for International Trade Art
Eggleton and Minister for International Co-operation and Minister Responsible for
la Francophonie Pierre S. Pettigrew are encouraged by U.S. President Clinton's
decision to suspend the right of U.S. companies to sue under the claims provisions
of the Helms-Burton Act. The Ministers also reiterated Canadian concerns,
however, about the continuing threat posed by the Act to Canadian interests. </font></p>
<p><font face="Courier">"The President's decision to suspend the filing of legal claims is a move in the
right direction," said Mr. Axworthy. "Canada's strong leadership on this issue
has built an international consensus that the United States cannot ignore. We
will continue our work with other countries to convince the Americans to uphold
the principles of international law."</font></p>
<p><font face="Courier">"The President's decision reduces, for the time being, a significant threat to
Canadian companies," said Mr. Eggleton. "This mitigates the impact of the Act but
does not dispose of the issue. It still leaves a climate of uncertainty regarding
future U.S. intentions. We need to maintain our concerted efforts with the
international community, including with respect to other provisions in the Act,
such as the continuing entry restrictions." </font></p>
<p><font face="Courier">"Canada believes that a foreign policy of constructive engagement is the best
approach for advancing political and economic reform in Cuba," said Mr. Pettigrew.
"Although we share similar goals with the United States, we consider that measures
such as the Helms-Burton Act are highly counter-productive."</font></p>
<p><font face="Courier">The Ministers indicated that Canada will move ahead with changes to the Foreign
Extraterritorial Measures Act (FEMA) so that it can be used by Canadian companies
should the President's decision be reversed in the future. With regard to the
North American Free Trade Agreement (NAFTA), Minister Eggleton will be reassessing
the situation in light of the President's decision. Under NAFTA dispute
settlement procedures, the earliest date on which Canada could request a panel is
July 29, 1996.</font></p>
<p><font face="Courier">The President's decision means that the claims provisions of the Act will come
into effect on August 1, 1996, but a claimant's right to sue under these same
provisions will be suspended for a six-month period (with the possibility of
renewal every six months). While this removes the immediate threat of lawsuits
against Canadian companies, it will allow potential claimants to notify alleged
"traffickers," and will also allow claimants to file claims without the normal 90-day waiting period should the President reverse his decision. </font></p>
<p><font face="Courier">The claims provisions of the Helms-Burton Act would, if fully implemented, permit
lawsuits to be launched in U.S. courts against Canadian and other foreign firms or
individuals allegedly "trafficking" in property expropriated by Cuba that is
claimed by American nationals. The right to file such claims has now been
suspended by the President's decision. The Act also provides for restrictions on
temporary entry into the United States of corporate officers and controlling
shareholders of these companies, along with their spouses and minor children. The
President does not have the authority to waive these provisions.</font></p>
<p><font face="Courier">Canada has objected strongly to both the claims provisions and those relating to
the denial of entry to the U.S. under the Act. In addition to pursuing the matter
through NAFTA channels, Canada has been working vigorously with other countries to
oppose the U.S. law in regional, hemispheric and multilateral forums, including by
Prime Minister Chrétien at the recent G-7 Summit in Lyon, France.</font></p>
<p><font face="Courier">-30-</font></p>
<p><font face="Courier">For further information, media representatives may contact:</font></p>
<p><font face="Courier">Catherine Lappe Nicole Bourget</font></p>
<p><font face="Courier">Director of Communications Director of Communications</font></p>
<p><font face="Courier">Office of the Minister of Office of the Minister for</font></p>
<p><font face="Courier">Foreign Affairs International Trade</font></p>
<p><font face="Courier">(613) 995-1851 (613) 996-6271</font></p>
<p><font face="Courier">Media Relations Office</font></p>
<p><font face="Courier">Department of Foreign Affairs and International Trade</font></p>
<p><font face="Courier">(613) 995-1874</font></p>
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