BY MEGAN ARNEY

The European Union, made up of 15 member states, adopted a resolution December 2 stating that "The European Union strongly believes that a democratic system of government must be installed in Cuba as a matter of priority." While proclaiming the EU's "firm wish to be Cuba's partner in the progressive and irreversible opening of the Cuban economy," the statement said, "full cooperation with Cuba will depend on improvements in human rights and political freedom."

The Clinton administration had earlier indicated some action like this was needed for the U.S. president to renew a waiver halting implementation of some aspects of the misnamed Cuban Liberty and Democratic Solidarity Act, or Helms-Burton law. This law, which tightened Washington's economic war against Cuba, includes provisions for sanctions and legal suits against companies in third countries that do business with the Cuban workers' state or "traffic" in property confiscated in the 1959 revolution there.

In August, Clinton waived many of these provisions for six months, saying he would extend the exemption if European governments joined in pressuring the Cuban government for "reforms." The deadline for extending the waiver is January 16. EU officials insisted that the resolution is not a concession to the United States, but simply marks the first time the 15 states put their position in writing. "It's an expression of EU policy," a spokesman for Irish Foreign minister and EU president Dick Spring said. The resolution doesn't include any changes to that policy, he said.

The EU is challenging Helms-Burton in the World Trade Organization The EU trade commissioner, Leon Brittan from London, explained November 7, "By opposing Helms-Burton, Europe is challenging one country's presumed right to impose its foreign policy on others by using the threat of trade sanctions. This has nothing whatever to do with human rights." On November 12, all EU members unanimously backed an overwhelming UN General Assembly vote calling for the lifting of the 36-year-old U.S. embargo against Cuba.

Brittan went on to explain to the Financial Times of London that the United States and the EU have tactical differences in relations with Cuba, but the same goal. Brittan insisted the EU's "constructive engagement" will bring "reforms" to Cuba, declaring that the EU has not gone "soft" on Cuba.

U.S. State Department spokesman Nicholas Burns said the Clinton administration "welcomes" the EU policy statement, but said it would not guarantee an extension of the Helms-Burton waiver.

As for the WTO, U.S. undersecretary of commerce Stuart Eizenstat said Washington will do "whatever is necessary" to avoid a ruling against the Helms-Burton law. In response, Cuban president Fidel Castro said in a speech in late November, "Everyone is coming to give us recipes and impose conditions. Who do they think they are? We won't kneel before anyone, nor seek charity from anyone."

The EU resolution was sponsored by Spain, one of Cuba's main trading partners and investors. Currently, Spanish capitalists have invested an estimated $80 million in tourism and other sectors. Madrid has been increasing its exports to the island, expected to reach around $560 million.

In a November 26 statement, the Cuban government said the Spanish government had "transformed itself into a spearhead for U.S. interests within the EU." Havana refused to accept the appointment of José Coderch Planas as the new Spanish ambassador to Cuba, citing Madrid's "flagrant interference in the internal affairs of Cuba." Coderch had stated in a newspaper interview that he intended to maintain contacts with and assist opponents of the Cuban revolution.

The Cuban economy has felt the affects of the Helms- Burton law. Under the threat of U.S. sanctions, two large banks - the Dutch bank ING and Spain's Banco Bilbao Vizcaya - have backed out financing Cuba's sugar harvest in five Cuban provinces. This forces the Cuban government to find financing for seed and fertilizer at higher interest rates of up to 20 percent. In addition, two European companies that sell Cuban sugar have stopped doing business with Havana.

Two companies have been sanctioned by Washington so far under Helms-Burton. Top officials from the Canadian- owned Sherritt mining company and the Mexican telecommunications conglomerate Grupo Domos have been denied permission to visit the United States. Sherritt, which extracts nickel from Moa Bay, has recently raised over $500 million to continue investment in Cuba.  
 
 
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