Cuba trade dispute snags talks on US transport bill

Cuba trade dispute snags talks on US transport bill

Thu Nov 10, 7:51 PM ET

Final negotiations between the Senate and U.S. House of Representatives
on a bill to fund the Transportation and Treasury Departments snagged on
Thursday over food sales to Cuba.

Rep. Joseph Knollenberg (news, bio, voting record), a Michigan
Republican and chairman of the House transportation appropriations
subcommittee, said the Cuba provision and language on business reforms
for the national passenger rail service, Amtrak, were the only
outstanding issues in $141 billion legislation.

The disagreement over Amtrak -- whose president, David Gunn, was fired
on Wednesday in a dispute over plans to restructure the railroad -- is
likely to be resolved quickly. Gunn was at odds with the Bush
administration and Amtrak's board and accused them of wanting to
bankrupt the railroad.

Amtrak is slated to receive more than $1.3 billion this fiscal year.

Knollenberg had hoped to wrap up negotiations on the massive bill on
Thursday. And with lawmakers out of town for the Veterans Day holiday on
Friday no agreement was expected before next week.

Both houses passed measures this year to overturn a Treasury Department
ruling that U.S. farm and trade groups say has slashed agricultural
exports to Cuba by making it more difficult for the Communist-ruled
nation to pay for shipments.

Congress authorized food sales to Cuba in 2000 if Havana paid in cash,
an exception to the four-decade-old U.S. trade embargo. But a Treasury
Department rule issued in February requires Cuba to pay for American
goods before they leave a U.S. port.

Farm sales to Cuba have slipped. Sales were $261 million between January
and September this year compared with $392 million for 2004, according
to tracking by the U.S.-Cuba Trade and Economic Council.

House members of the transportation conference committee voted
overwhelmingly to maintain the rule, while Senate counterparts voted to
drop it. The split created deadlock and a new round of closed-door talks.

Knollenberg stressed the White House had made it clear President George
W. Bush would veto the bill if the pre-payment provision for Cuba was
overturned. Senate lawmakers were firm, with Democrats saying Bush has
yet to veto a bill and was unlikely to derail the spending plan over one
provision.

http://news.yahoo.com/s/nm/20051111/pl_nm/cuba_congress_transport_dc_1