Cuba and U.S. officials to meet next week to deepen detente

Cuba and U.S. officials to meet next week to deepen detente
HAVANA | BY SARAH MARSH

Cuba and the United States will meet next week for a third round of
talks on improving relations, Havana said on Thursday, adding that the
two former Cold War foes were not yet negotiating their
multibillion-dollar claims against one another.

A bilateral commission will meet next Monday in the Cuban capital to
evaluate the progress made in putting their decades-old conflict behind
them, and to identify new areas of cooperation, said Gustavo Machin, the
deputy director for U.S. affairs in the Cuban foreign ministry.

"We will set the agenda for the rest for the year," Machin told a news
conference.

"We are not yet negotiating the topic of claims even if there is a
recognition on both sides that these exist."

Cuba and the U.S. reestablished diplomatic relations a year ago and have
signed agreements on issues of common concern such as the environment,
postal services and direct flights.

Many differences remain however. Machin reiterated Cuba's demands for
the return of the Guantanamo naval base and lifting of the U.S. trade
embargo.

Cuba complains that some of the policy changes the U.S. has carried out,
such as relaxing currency restrictions against the island, have had
little real impact given the persistent fear among U.S. institutions of
risking government sanctions.

The White House said in March it would allow U.S. banks to process
dollar transactions for Cuba as long as neither buyer nor seller were
U.S. entities.

"Until now, no bank transactions have been carried out in U.S.
currency," Machin said. "There is still a great fear."

Cuba has said it will only lift a 10 percent tax on cash dollars once it
is clear U.S. banks are processing dollar transactions for the
Communist-ruled island.

The issue of reparations is another sticky point. Late last year, Cuba
and the U.S. outlined their respective claims, with the former demanding
at least $121 billion in reparations for the U.S. trade embargo and
other acts it describes as aggressions against the Caribbean country.

The Americans meanwhile are seeking upwards of $10 billion in
compensation for nationalized properties.

The third bilateral commission will be led by Josefina Vidal, the Cuban
Foreign Ministry's chief of U.S. affairs, and Kristie Kenney, counselor
for the U.S. State Department.

(Additional Reporting by Nelson Acosta; Editing by James Dalgleish)

Source: Cuba and U.S. officials to meet next week to deepen detente |
Reuters - http://www.reuters.com/article/us-cuba-us-idUSKCN0Y32HU