Thanks Rick,
It wasn't hard to find. I just needed the time to look at and digest it.
I have the Act itself, but the attached URL points to a very good Treasury Department explanation that clearly lays out what is and what is not proscribed in relation to Cuba.
Here are the salient passages from that explanation and the comments of a person (me) who is not an attorney, but who works closely with attorneys on a daily basis and has extensive contracts experience:
"IMPORTING CUBAN-ORIGIN GOODS OR SERVICES
Goods or services of Cuban origin may not be imported into the United States either directly or through third countries, such as Canada or Mexico. The only exceptions are publications artwork, or other informational materials."
"ACCOUNTS AND ASSETS - There is a total freeze on Cuban assets, both Governmental and private, and on financial dealings with Cuba; all Nationals ... any property in which Cuba has an interest ... regardless of origin or destination ... Blocking imposes a complete prohibition against transfers or transactions of any kind ... Persons subject to U.S. jurisdiction are required to exercise extreme caution in order not to knowingly involve themselves in unlicensed transactions in which Cuba has an interest ... Persons subject to U.S. jurisdiction who engage in any commercial dealings that involve unauthorized trade with Cuba, either directly or indirectly, risk substantial monetary penalties and criminal prsecution."
Note: The Act goes on to list exemptions for which specific licenses are available. None of these exemptions would cover steam locomotives.
To summarize, there can be no quid pro quo in dealing with Cuba and at no time can U.S. assets end up in Cuba. For the ARMF proposal to be legal for a U.S. purchaser, ARMF would have to purchase the locomotives directly on speculation. That purchase would have to be completed and legal and actual possession of the locomotive(s) would have to occur outside of Cuba (the Act prohibits "vessels which enter a port or place in Cuba ... from loading or unloading any freight at any place in the U.S. for 180 days ...")
It looks like purchasing a locomotive from ARMF *COULD* be legal as long as ARMF takes full possession and ownership of the locomotive(s) first, with no prior involvement from a U.S. party (this would constitute "collusion" to violate the Act) and the locomotive is off-loaded from any vessel that has not been to Cuba within 180 days.
Please note, the above would not necessarily absolve a purchaser of legal ecumbrances arising from Cuba's past expropriation of said locomotive. To receive an illegally expropriated locomotive would essentially constitute the "receiving of stolen goods."
Barter would not work unless the barter transaction occurred after the non-Cuban party took ownership and possession of the locomotive and no involved U.S. party had any involvement in the Cuban transaction. The expropriation caveat would still remain.
None of these obstacles are insurmountable, but real commitment would be required.
Any transaction would require the active participation of expert legal counsel and would require full disclosure to the salient U.S. authorities - once a U.S. party actually became involved.
Naturally, I would welcome and APPRECIATE any corrections or comments regarding this summary from any legal professional.
My thoughts,
Glenn
