* [Reproduced with the permission of Editora Politica, Belascoain No. 864, Havana, Cuba from the English translation prepared for the Cuban Ministry for Foreign Investment and Economic Cooperation. The Introductory Note was prepared for International Legal Materials by Jorge A. Vargas, Professor of Law, University of San Diego School of Law, and I.L.M. Corresponding Editor for Mexico.

[The U.S. Cuban Liberty and Democratic Solidarity (Libertad) Act of 1996 appears at 35 I.L.M. 357 (1996); European Union Démarches protesting the U.S. Cuban Liberty and Democratic Solidarity Act (Libertad) Act appear at 35 I.L.M. 397 (1996); and UN General Assembly Resolution 50/10 on Ending the U.S. Embargo against Cuba, of November 2, 1995, appears at 35 I.L.M. 483 (1996).]

1 Ley No. 77: Ley De La Inversion Extranjera. Approved by the National Assembly of the Popular Power of the Republic of Cuba on September 5, 1995, during its Fifth Ordinary Period of Sessions of the Fourth Legislature (hereinafter CFIA: Cuban Foreign Investment Act).

2 CFIA, Second introductory paragraph.

3 See Douglas Farah. Cuba Approved Law Promoting Foreign Investment. The Washington Post. September 6, 1996 at 1.

4 See House OKs Tighter Embargo on Cuba. The Chicago Tribune. September 22, 1995.

5 See José de Córdoba and Carla Ann Robbins. Mexico Sees Clinton concern over Cuba Trade Bill. Reuters (Money Report). September 22, 1995.

6 This provision establishes that joint ventures, national and foreign investors who are parties in an international economic association, and corporations with 100% foreign capital, are subject to any regulations that may be enacted to protect against catastrophes and natural disasters (Regulaciones que se establezcan en materia de Protección contra Catádstrofes y Desastres Naturales).

7 These articles provide that 1) die new statute shall apply to “joint venture and other forms of international economic association” in existence at the time the Foreign Investment Act enters into force. However, the benefits created by the Decreto-Ley No. 50 of February 15, 1982 shall remain in effect during the authorized period of the international economic association in question; 2) foreign investment applications awaiting a formal authorization by the Cuban government at the time of the entry into force of the new Act, shall be governed by its provisions; and, 3) any legal and administrative enactments issued in relation to the Decreto-Ley No. 50 shall remain in force, provided they are not contrary to the new Foreign Investment Act.

8 The first provision repeals Decreto-Ley No. 50, titled: “On the economic association between Cuban and Foreign Entities,” as well as any other legal provisions contrary to the new Foreign Investment Act. The second empowers the Executive Committee of the Council of Ministers (Comité Ejecutivo del Consejo de Ministros) and the central state administrative agencies (Organismos de la Administradón Central del Estado) to issue whatever provisions may be necessary “for the proper fulfillment of this Act.“

9 Art. 1.1, CFIA.

10 Art. 1.2, CFIA.

11 Art. 2, paras. a), c), d), f), g), h), i), l), m) and n), CFIA, respectively.

12 Art. 3, CFIA. 13 Id.

14 These “amounts” are defined in Arts. 3, 4 and 6 of the CFIA.

15 Art. 8.2, CFIA.

16 Art. 10, CFIA.

17 Art. 11, para. (a), CFIA. For the definitions of the Cuban legal entities referred to in the text, see supra Section 1 of this Introductory Note.

18 Art. 11, para. (b), CFIA.

19 Arts. 13, 14 and 15, CFIA, respectively.

20 Art. 13.1, CFIA.

21 For the legal structure, composition and modus operandi of the Mexican corporation “Sociedad Anónima,” see Ley General de Sociedades Mercantiles (General Act of Mercantile Companies, D. O. of August 4 and 28, 1934; as amended, D.O. of January 23, 1981), Arts. 87-206; on the registration of mercantile companies, see Arts. 260- 264.

22 Art. 14.1, para. b), CFIA.

23 Art. 15.2, para. a), CFIA.

24 Art. 15.1, CFIA.

25 Arts. 16-18, CFIA.

26 Castro says Approval of Investments will be “Flexible” but subject to Scrutiny. BBC Summary of World Broadcasts. September 6, 1995.

27 Art. 18, CFIA.

28 Art. 25, CFIA.

29 Arts. 50-53, CFIA. Recently, the People's Republic of China created several “Special Economic Zones” designed to facilitate foreign investment, acquire selected foreign technologies and promote exports.

30 Decreto para el Desarrollo y Operción de la Industria Maquiladora de Exportación, D.O. of December 22, 1989.

31 Ley de Inversión Extranjera, D. O. of December 27, 1993. See Jorge A. Vargas. Mexico's Foreign Investment Act of 1993. 16 Loyola Of Los Angeles International And Comparative Law Journal 907 (August 1994). The English translation of the 1993 Act appears in 33 I.L.M. 207 (1994).

32 See Dalia Acosta. Cuba: First Exchange Houses Open in Havana. Inter Press Service. October 19, 1995.

33 See Roberto Fabricio. Move Toward Capitalism Helping Bail Out Cuba; Castro Turns to Free-Market Reform to Keep His Revolution Alive. The San Francisco Examinaer.October 22, 1995.

34 Art. 31.1, CFIA.

35 Arts. 31.3 and 34.1, CFIA.

36 Art. 34.1, CFIA.

37 Art. 33.4, with the exception provided in Art. 27, CFIA.

38 Art. 37, CFIA.

39 Art. 55, CFIA.

40 Id.

41 Art. 56.2, CFIA.

42 Art. 57.1, CFIA.

43 Art. 58, CFIA.