"They point out that, despite four decades of sanctions against his government, Castro remains in power," Grassley said. "They also contend that U.S. farmers and businesses are losing trade opportunities in Cuba to their counterparts in other countries."
But Grassley also explained that other lawmakers "believe that now is not the proper time to change U.S. trade policies," given that Castro's record on human rights has "become even more egregious during the past year" and that "lifting trade restrictions will in effect reward Castro for his actions."
State Department Under Secretary Al Larsen testified on the problems American businesses face over investing in Cuban markets.
"The reality of the situation is that investing in Cuba remains a very risky proposition," Larsen said. "Proceeds from foreign investment go principally to the coffers of the Cuban state. Any economic benefit derived from tourism or other joint ventures does not filter down to the average Cuban citizen."
Larsen also pointed to the "very serious issue" of Cuban creditworthiness.
"According to its own figures Cuba owes nearly $11 billion to the creditors of the Paris Club," Larsen explained. The business information provider, Dun and Bradstreet, rated Cuba as one of the riskiest economies in the world."
Commerce Department Under Secretary Grant Aldonas pointed out that the State Department has identified Cuba as one of seven countries on its list of terrorist-sponsoring countries.
Aldonas added that lifting the trade embargo would produce minimal results anyway since Castro would likely allow very little to be traded.
Still, the committee's ranking minority committee member, Montana Democrat Max Baucus, said his state would benefit from agricultural trade with Cuba.***
The U.S. House of Representatives is expected to vote on Tuesday on an amendment that would deny the Bush administration the funds it needs to enforce the travel restrictions.
"Sunbathers are not going to liberate Cuba nor is upgrading the brunch at Cuba's isolated tourist enclave hotels," Assistant Secretary of State Roger Noriega told an event at the Center of Strategic and International Studies.
The U.S. government requires licenses to visit Cuba but does not give them to tourists, arguing that tourism dollars strengthen the government without benefiting the people.
A coalition of business organizations and human rights groups have been making a determined push to overturn the embargo and the travel restrictions, saying they have failed to topple Fidel Castro and have provided the leader with an excuse for the island's economic woes.
A similar amendment passed last year in the House by a 262-167 margin but did not pass in the Senate. Embargo opponents say the Senate is now more receptive to a lifting of the travel ban.
Noriega ridiculed the idea that President Bush should follow the lead of a congressional majority and refrain from using his veto power against an end to the restrictions.
"Why else would a president threaten to veto something that he didn't like? If it didn't have majority support in the Congress, you wouldn't have to veto it. You'd just sit back and watch it crash," he joked.
Last week the White House said that lifting sanctions now "would provide a helping hand to a desperate and repressive regime at the expense of the Cuban people" and that "the President's senior advisers would recommend a veto.
Analysts say U.S. policy toward Cuba is heavily influenced by the views of Cuban-American voters, especially those in southern Florida. The most vocal Cuban-Americans support the embargo but the level of support has been slipping over time. [End]