What Now For Cuba

Cuba’s economic freedom score is 29.6, making its economy one of the world’s least free. Its overall score is 0.9 point higher than last year, with a slight deterioration in monetary freedom outweighed by improvements in three of the 10 economic freedoms, including trade freedom, fiscal freedom, and freedom from corruption. Cuba is ranked least free of 29 countries in the South and Central America/Caribbean region, and its overall score is significantly lower than the regional average.

In recent years, the government has made measured concessions to encourage more entrepreneurship and private-sector growth. Communist Party–endorsed reforms to cut government payrolls and expand approved professions have not been broad enough to ensure any meaningful advancement in overall economic freedom. The state continues to interfere in most economic activity. Price controls are pervasive, and the two-tiered exchange rate regime continues to distort prices.

Despite membership in the World Trade Organization, the economy remains relatively cut off from the international marketplace. Only state enterprises are allowed to engage in international trade and investment. The state uses an oppressive regulatory environment to suppress entrepreneurial activity and controls most means of production. Shallow credit markets impede access to credit for business activities.

Cuba is demanding the return of Guantanamo Base, stating it is illegally occupied. The military base goes far beyond being a detention center since 1907. It should be noted that many Cubans not only work at Base Guantanamo but live there as well, under the American flag.

U.S. Cuba Policy: Where Things Stand Now

WSJ:

President Barack Obama announced in December that the U.S. was moving to normalize relations with Cuba after over 50 years of Cold War enmity. That moment was both symbolic and practical, as he took steps to begin removing restrictions on travel and trade. On Wednesday, Mr. Obama announced that the U.S. will formally restore diplomatic ties and reopen its embassy in Havana.

What exactly has changed since December and where are we now? The Wall Street Journal explains:

Can I travel to Cuba now?

That depends. Traveling to Cuba from the U.S. as a tourist is still illegal. But 12 categories of people, including close relatives of Cubans, academics, journalists, people participating in educational programs, and people on humanitarian or religious missions can go to the island provided they say their trip falls within one of those categories. Airlines can fly to Cuba without obtaining special licenses, but flights to Cuba are charters—not yet commercial flights. Several U.S. ferry companies have received licenses to operate routes between ports in Florida and Cuba, but the proposed ferry services must receive Havana’s approval.

Can U.S. companies do business there?

Mr. Obama also took steps to loosen financial restrictions, but most trade remains illegal and will require congressional action before changing. Mr. Obama eased some rules to permit increased exports of U.S. telecommunications and other technological goods to the island, as well as building materials. Mr. Obama also made it easier for exports of agricultural and medical supplies and goods to Cuba’s nascent private sector.

U.S. banks are allowed to establish correspondent accounts in Cuba, and U.S. citizens now can use credit and debit cards there. But activity under Mr. Obama’s measures are slow-going, in part due to a lack of clarity about the regulations. U.S. officials have said they’re likely to be updated as more people try to use them.

What have been the big milestones so far?

The first big moments, of course, were the announcements by Mr. Obama and Cuban President Raul Castro in December that the former Cold War foes would renew relations, the culmination of 18 months of secret talks.

Then, in January, loosened travel and trade regulations went into effect, and the U.S. and Cuba began negotiating reopening embassies and restoring diplomatic ties.

In April, Messrs. Obama and Castro met at the Summit of the Americas, the first substantive discussion between U.S. and Cuban presidents since 1956.

In May, the Obama administration lifted Cuba’s designation as a state sponsor of terrorism. That was a critical step toward restoring diplomatic relations, but didn’t have much practical effect, as Congressional sanctions still ban Cuba from arms exports and sales, from receiving U.S. economic assistance and from conducting most trade.

Wednesday’s announcement that the two countries are formally restoring diplomatic ties was another big step.

The next milestones will be reopening ceremonies for embassies in both countries. Cuba announced it would host its event in Washington on July 20 and its delegation will be led by Foreign Minister Bruno Rodriguez. The U.S. hasn’t set a date for its flag raising, but said Secretary of State John Kerry will be there to do the honors.

Now what?

The U.S. and Cuba will begin lots of bilateral talks and efforts to cooperate in areas including law enforcement, development, human rights, counterterrorism and antinarcotics. Talks will also begin on property claims and the Cuban government’s claims against the U.S. The U.S. has also said Cuba has agreed to talks about extraditing fugitives, though it’s unclear what will happen with some of the higher-profile ones, including JoAnne Chesimard, now known as Assata Shakur, who is on the FBI’s Most Wanted Terrorists list for killing a New Jersey state trooper in 1973. Cuba granted her asylum after she escaped from prison in 1979.

The spotlight moves to Congress now, where lawmakers must act to lift bans on travel and trade. Church groups, agricultural groups, business groups and others are supportive of lifting the ban. The White House is counting on these independent stakeholders to pressure Congress to act. It’s likely to be a long battle, with supporters of normalization taking a piecemeal approach to chipping away at the embargo.

The White House backs that strategy, and a move to lift the travel ban is likely to be the first step in the process.

 

Obama’s Middle East Policy is IN This Book

2003:

At Khalidi’s 2003 farewell party, for example, a young Palestinian American recited a poem accusing the Israeli government of terrorism in its treatment of Palestinians and sharply criticizing U.S. support of Israel. If Palestinians cannot secure their own land, she said, “then you will never see a day of peace.”

One speaker likened “Zionist settlers on the West Bank” to Osama bin Laden, saying both had been “blinded by ideology.”

2004

Rashid Khalidi wrote a book. Fittingly the title is ‘Resurrecting Empire’. Released in 2004, Khalidi cherry picked facts to build his case against any Western intervention into the Middle East and wrote often about early colonization and occupation by Britain and France with the aid of the United States. How many times have we heard the words colonization and occupation out of this White House?

2008

CHICAGO — It was a celebration of Palestinian culture — a night of music, dancing and a dash of politics. Local Arab Americans were bidding farewell to Rashid Khalidi, an internationally known scholar, critic of Israel and advocate for Palestinian rights, who was leaving town for a job in New York.

A special tribute came from Khalidi’s friend and frequent dinner companion, the young state Sen. Barack Obama. Speaking to the crowd, Obama reminisced about meals prepared by Khalidi’s wife, Mona, and conversations that had challenged his thinking. Obama also calls for the U.S. to talk to such declared enemies as Iran, Syria and Cuba. But he argues that the Palestinian militant organization Hamas, which governs the Gaza Strip, is an exception, calling it a terrorist group that should renounce violence and recognize Israel’s right to exist before dialogue begins. That viewpoint, which also matches current U.S. policy, clashes with that of many Palestinian advocates who urge the United States and Israel to treat Hamas as a partner in negotiations.

2010

From Politico: An Arab-American activist who attended an outreach session at the White House complex in April had his Chicago home raided by the FBI last week and appears to be a focus of an unfolding federal terrorism-support investigation.

Hatem Abudayyeh, who serves as executive director of the Arab-American Action Network, took part in a meeting for Arab-American leaders held in the Eisenhower Executive Office Building on April 22, according to appointment data posted on the White House website.

FBI agents executed a search warrant at Abudayyeh’s Chicago home as part of a coordinated series of raids involving at least one other Chicago site, along with the homes of anti-war activists in Minnesota. A copy posted on the web of a grand jury subpoena served on one target of the raids in Minneapolis demands “all records of any payment provided directly or indirectly to Hatem Abudayyeh, the Popular Front for the Liberation of Palestine (“PFLP”) or the Revolutionary Armed Forces of Colombia (“FARC”).”

A search warrant served on a Minneapolis anti-war activist, Michael Kelly, ordered agents to seize records relating to Kelly’s travels to “Palestine, Colombia, and … within the United States.” It also mentions possible connections to Hezbollah.

The warrant and subpoena suggest the probe, which is being run by U.S. Attorney Patrick Fitzgerald in Chicago, is focusing on illegal support for terrorist organizations, particularly by a Minnesota-based group called the Freedom Road Socialist Organization. PFLP, FARC and Hezbollah are designated as terrorist groups by the U.S. government. A spokesman for Fitzgerald’s office declined to comment on the probe.

In a 2006 interview with Fight Back News, an outlet run by Minneapolis activist Kelly, Abudayyeh seemed to disagree rather strenuously with at least some of the U.S. government’s use of the “terrorist” label.

“The U.S. and Israel will continue to describe Hamas, Hezbollah and the other Palestinian and Lebanese resistance organizations as ‘terrorists,’ but the real terrorists are the governments and military forces of the U.S. and Israel,” Abudayyeh said. “The vast majority of the world sees and understands this, and are in full support of Lebanese, Palestinian and worldwide resistance to Israel and the U.S.’s naked aggression, war, imperialism and occupation.”

2011

In part from TWS:

Barack Obama and Columbia University professor Rashid Khalidi both taught at the University of Chicago in the ’90s, and at a farewell dinner for Khalidi in 2003, Obama warmly praised Khalidi’s advice, which took the form of “consistent reminders to me of my own blind spots and my own biases.” Since the Los Angeles Times never released its videotape of the event, we may never know Obama’s blind spots or the enlightenment on offer from his friend and colleague Khalidi​—​a PLO spokesman in Beirut during the Lebanese civil wars.

Khalidi has denied his role with the PLO, but Martin Kramer, the Wexler-Fromer fellow at the Washington Institute for Near East Policy, has him dead to rights. On his website, www.martinkramer.org, Kramer explains that between 1976 and 1982 Khalidi was consistently identified​—​by, among others, the New York Times and the Los Angeles Times​—​as a PLO spokesman, without once demanding a correction. Still, all Khalidi will admit today is that he was “deeply involved in politics in Beirut.”

Perhaps it’s understandable that Khalidi won’t come clean about his role in the civil wars, for everyone came out of the conflict dripping with blood, not just the Christians and Israelis, but the Palestinians, too. Why the Christians are typically censured for their brutality while the PLO seems to get a pass from so many U.S. analysts, journalists, and even former government employees like Pillar is strange, especially since PLO chairman Yasser Arafat showed that, unlike the Lebanese Forces, he was willing to kill Americans as well.

In summary, is can be stated that the basis of Barack Obama’s policy on Israel and the rest of the Middle East is grounded in the book, authored by Khalidi. From the word ‘resurrection’ in the title, to relations with Israel, Iraq, Iran, Syria, Lebanon and even Cuba, now Venezuela is on the near horizon.

Fits like a globe….

 

 

 

Iran Gets GOLD

An Iran nuclear czar? Zarif and Kerry today, Friday said a deal was never closer.

Iran has had 13 tons of their gold stored in South Africa for at least 2 years and due to lifted sanctions, the gold has been released and delivery in a handful of shipments under high security is complete. The gold was delivered to the central bank.

Since 2013 under the Obama White House agreement, Iran has received $4.2 billion in unfrozen assets and was awarded another $2.8 billion by Obama just to stay at the table and committing to continued talks.

Iran Violations:

Iran has been found in non-compliance with its International Atomic Energy Agency (IAEA) safeguards agreement, and accordingly is in non-compliance with the Nuclear Non-Proliferation Treaty (NPT).1 Iran is continuing its uranium enrichment program and heavy water-related activities in defiance of Security Council resolutions calling for their suspension. The IAEA is trying to resolve a number of matters indicating a possible military dimension to Iran’s nuclear program, but Iran is not cooperating with the IAEA’s investigations. There are well-founded concerns that the Iranian enrichment and heavy water programs have a military objective – to give Iran the capability to produce nuclear weapons if it decides to do so. What is not clear is how far Iran intends to proceed down this path – will it cross the nuclear weapon threshold, or if not, how far short will it stop?

Amongst other issues, this paper addresses the commonly held belief that Iran is entitled to undertake uranium enrichment, and the closely related question whether nuclear hedging – establishing a nuclear weapon break-out capability in the guise of a civilian program – is a legitimate activity under the NPT. If a negotiated solution with Iran is achieved that allows for continued enrichment, this must also adequately address international concerns that Iran’s nuclear program has a military purpose. A “solution” that allows continued development of a military dimension would be pointless. Many more details in this report.

Going back a decade, it has been well known that Iran has been using the black market to skirt sanctions.  The audio discussion on the black market and violations is here. Additionally, you would be stunned at who does business with Iran and the value of that commerce.

What about the secret low enriched uranium? Glad you asked.

The controversy over the status of Iran’s newly produced low enriched uranium (LEU) hexafluoride under the Joint Plan of Action (JPA) initially surprised us at ISIS. We have been monitoring the various provisions of the JPA since its inception, including Iran’s pledge to convert its newly produced LEU hexafluoride stocks into uranium dioxide form during the JPA term and its extensions. We would have expected the public controversy to center on other issues, including the near 20 percent LEU stocks in Iran. These stocks are far too large, and if left in place, will undermine the administration’s central case that Iran would need 12 months to break out, if it reneged on a long term deal. Yet, upon reflection, this issue of the newly produced LEU is a microcosm of the legal, technical, and political challenges in the on-going negotiations with Iran. It is also another indication that U.S. secrecy is excessive and contributing to problems on its own. Finally, it is necessary to state that this case is a lesson in how difficult it is to understand all the issues in these negotiations, even for those of us who spend enormous amount of time following and assessing provisions in these negotiations.

Concessions

From CNN:

Concessions checklist

So what has the U.S. ceded so far? And what has it gotten in return? Supporters and opponents of the Iran talks are both keeping their checklists ready. They’re tallying the wins and losses and keeping a close eye on the remaining sticking points.

Breakout time

Breakout time is the amount of time it takes to amass enough weapons-grade uranium for one nuclear bomb. In the event of a final deal, if Iran were to dash toward weaponization, it would take 12 months to build a nuclear bomb, according to U.S. calculations.

That figure is a considerable improvement over the two- to three-month breakout time that Iran currently has.

Some worry, however, that one year is not enough to guarantee the U.S. and other countries could actually prevent Iran from obtaining a nuclear weapon should Iran decide to race toward one, given the number of diplomatic and verification steps that would precede the use of military force.

Centrifuges

Iran will be allowed to keep 6,104 centrifuges, and just over 5,000 of those will continue enriching uranium, based on the preliminary agreement.

That’s a far ways from where American officials initially said they wanted to end up, first demanding Iran cut its centrifuges to between 500 and 1,500 and then floating 4,000.

The agreement still cuts down most of the nearly 19,000 currently installed — about 10,000 of which are now used for enrichment — but even the additional centrifuges won’t be scrapped entirely. They’ll remain in Iran under the control of the UN’s nuclear watchdog, the International Atomic Energy Agency, and will be freed up at the end of the period of constraints on its program.

Enrichment activity

Under the framework for negotiations, Iran has already significantly reduced the level to which it enriches uranium, capping those levels far below what is needed for a nuclear weapon.

Iran has agreed to restrict all of its enrichment activity to one reactor site — Natanz. This is reassuring to the U.S. and Israel because it would be easier for them to take effective military action to degrade Iran’s nuclear capabilities.

Furthermore, Iran will only use its first-generation centrifuges, which are slow to enrich uranium and are unreliable.

Duration of the deal

The restrictions that will keep Iran to a one-year breakout time will expire after 10 years.

President Barack Obama has conceded that “in year 13, 14, 15 … the breakout times would have shrunk almost down to zero.”

After the 10th year, Iran would be able to start upping its uranium enrichment. And after 15 years, the program would be completely unbridled.

There was always going to be a sunset — it’s inconceivable that Iran would accept restrictions and inspections on its nuclear program indefinitely — but the Obama administration’s starting ask was for restrictions lasting 20 to 25 years.

Even if political change doesn’t come to Iran in that period — which he hopes it will — Obama insisted this spring that the U.S. will have “much more insight into their capabilities” as a result of the rigorous inspections, and 10 to 15 years improves considerably upon the status quo.

But the sunset provision has experts like Mark Dubowitz of the Foundation for the Defense of Democracies worried that Iran will simply “go back to what they were doing before” — and without the limitations of sanctions.

“We think 10 to 15 years is a long time,” he said. “They think it’s a blip in history.”

Revealing past Iranian military activities

For years the United States and the rest of the international community has demanded that Iran come clean about suspected past efforts to militarize its nuclear program.

Tehran even pledged to the IAEA in 2007 that it would do so, and the fact that it hasn’t raises questions about the reliability of its commitments.

When Kerry was asked by PBS in April about Iran’s obligation to answer such questions, he said bluntly, “They have to do it. It will be done. If there’s going to be a deal, it will be done.”

Kerry, though, recently indicated such a “confession” was no longer essential to a deal.

“We’re not fixated on Iran specifically accounting for what they did at one point in time or another. We know what they did,” Kerry said last month.

Underground nuclear sites

Under an eventual deal, Iran would stop enriching uranium at Fordow, its fortified, underground nuclear site, for 15 years and only use the facility for research with some inactive centrifuges remaining onsite. It also won’t be able to store any fissile material at the site.

Though the West had originally called for Fordow to be shut down entirely, cutting off enrichment at the site is a relief not just for the U.S. but also for Israel, which was concerned its military arsenal would not be able to reach the site — buried deep in the side of a mountain.

The U.S. has a more powerful bunker-busting bomb than Israel, one that may be able to penetrate the site, though not with total certainty.

Heavy water reactor

Iran will significantly modify its heavy water reactor so it can no longer produce weapons-grade plutonium, a possible component for a nuclear bomb.

Iran has already begun redesigning the reactor to limit its capacity — a key change for a country that has repeatedly defended the reactor’s medical and scientific applications.

Israel had previously called for the reactor’s total dismantlement, but serious modifications have quelled many concerns about Iran’s ability to use the reactor for non-peaceful purposes.

Outstanding issues

Officials still have to determine whether Iran will dilute or export its eight-ton stockpile of highly enriched uranium and determine the parameters for Iran to use more highly enriched uranium for scientific research purposes.

But it’s the two other remaining issues that are the most contentious, and will ultimately determine for most experts whether they have confidence that the deal will keep Iran from getting a nuclear bomb.

Inspections

The West is insisting that Iran give inspectors unfettered access to any site they suspect of nuclear activity — military sites included. Without that, officials fear that Iran could try to sneak its way to a bomb by using a secret facility, especially given its history of cheating and concealing its nuclear work.

“The most likely form of cheating would be at undeclared or secret facilities, and so you’ve got to have strong inspections,” said Gary Samore, who previously served as Obama’s top arms control adviser.

Iranian officials, though, have insisted that they won’t relent on that point, certainly not when it comes to military facilities.

Deputy Secretary of State Tony Blinken insisted Thursday on CNN that the U.S. will “walk away” if Iran doesn’t agree to the rigorous inspections and verification regime the U.S. is seeking.

Negotiators have floated the idea of a commission of countries that would hear Iran’s objections to inspections requests. But if Iran still refuses to allow inspections at the site, international sanctions would be reimposed.

Ilan Berman, a skeptic of the deal, said that type of “managed access” could give the Iranians the chance to scrub evidence from a site while they stall for time.

“You want to do snap inspections, not ones where they can move things around,” said Berman, vice president of the American Foreign Policy Council.

Sanctions relief

Western officials have insisted that sanctions won’t be removed until Iran holds up its end of the bargain by reining in its nuclear activity as agreed.

Iran, on the other hand, at first demanded sanctions be lifted as soon as a final agreement is signed and sealed. Iranian officials now appear to be relenting somewhat and agreeing that sanctions could fall at a later date, after they make the necessary changes to their nuclear program.

Negotiators are now looking to iron out the details of the sequence for the removal of those sanctions.

But once those sanctions come off, it’s unclear how effectively the international community could snap them back into place — if it’s even willing to. While Iran’s economy has suffered because of the restrictions, so have many companies based in the countries that have imposed them.

 

 

Obama Schedules Meeting with Communist Leader

There is a pattern being established, anyone paying attention? Cuba, Venezuela and now Vietnam?

From Wikipedia: The Secretariat of the Central Committee Communist Party of Vietnam (Vietnamese: Ban Bí thư Trung ương Đảng Cộng sản Việt Nam), replaced by the Politburo Standing Committee of the Central Committee in the period 1996 to 2001, is the highest implementation body of the Communist Party of Vietnam (CPV) between Central Committee meetings. According to Party rules, the Secretariat implements the decisions of the Politburo and the Central Committee.

The members of the Politburo are elected (and given a ranking) by the Central Committee in the immediate aftermath of a National Party Congress. The current Secretariat, the 10th, was elected by the Central Committee in the aftermath of the 11th National Congress and consists of 10 members. The first-ranked member is Nguyễn Phú Trọng, the General Secretary of the Central Committee.

Okay, read on if you dare.

Reuters:

Vietnam Communist Party chief to meet Obama on landmark U.S. trip

Vietnam’s Communist Party chief will visit the United States next week in a landmark trip that could prove pivotal in Washington’s bid to bolster its Asian alliances in the back yard of an increasingly assertive China.

Nguyen Phu Trong will meet U.S. President Barack Obama at the White House as the former war enemies mark two decades of calibrated engagement since the normalization of ties that have expanded rapidly in the past year.

That meeting would skirt protocol because party boss Trong is not part of a government, but a senior state department official said Obama saw the visit as crucial and was expecting a “very big picture conversation”.

“He is the top guy… It’s a pretty big event,” the official told reporters.

“There was a broad agreement that it made sense to treat him and treat the visit as the visit of the top leader of the country.

“We don’t view the meeting as a reward for the Vietnamese. We view it much more as continuing engagement.”

The July 6-10 trip follows a year-long charm offensive by the United States launched as a fierce row over sovereignty erupted in May 2014 between communist neighbors Vietnam and China, which saw relations sink to their worst in three decades.

Washington capitalized, shifting gear in its diplomacy after China parked an oil rig unannounced in what Vietnam considers its domain.

“The relationship with Vietnam has moved to a very different place and part of that has been actually energized by China’s actions,” Deputy Secretary of State, Antony Blinken, said last week.

“We now have more countries in Southeast Asia looking to the United States and striking stronger relationships with us than we’ve ever had, less because of what we’ve done than because of what China has done.”

LINGERING SUSPICION

A lot is riding on a visit that the United States hopes will build more trust. Experts say progressives in Vietnam favor closer U.S. ties, but suspicion lingers among conservatives about Washington’s end-game.

The United States has been courting the communist leadership with visits to Vietnam by some of the biggest names in Washington: top General Martin Dempsey, Secretary of State John Kerry, Defense Secretary Ash Carter, Senator John McCain, Democratic Leader Nancy Pelosi, Secretary of the Interior Sally Jewell and several legislators.

Former President Bill Clinton met Trong, 71, on Thursday and was guest at an Independence Day celebration in Hanoi, where he described the 1995 normalization of ties as “one of the most important achievements of my presidency.”

A lot has changed since.

Vietnam is Southeast Asia’s biggest exporter to the United States, with which it shares annual trade of $35 billion. Both countries are among 12 negotiating a Trans-Pacific Partnership (TPP) accord covering combined GDP of $28 trillion.

A lethal arms embargo on Vietnam was eased in October, allowing joint military exercises and $18 million in loans for U.S. patrol boats. It also allowed consultations on defense procurement, as Hanoi seeks to build up a deterrent to counter Beijing’s expansionism in the South China Sea.

Vietnam has been speaking to Western defense companies, including U.S. firms Lockheed Martin Corp and Boeing, according to informed sources.

But scope for deals could be limited until the embargo is fully lifted. Washington says that requires greater improvements in Vietnam’s human rights record.

Ernest Bower, a Southeast Asia expert at the Center for Strategic and International Studies, said Trong’s visit was “historic and timely” and aimed to break down trust barriers.

“The two countries … are about to enter a new era of deeper cooperation in areas such as security, political and diplomatic alignment,” he said.

“The countries’ political leaders must develop a level of trust and mutual respect. That is what this visit is about.”

Senator Dodd Scandals DC to Hollywood Favors

The 2009 financial crisis included a few other people with brewing scandals that included AIG and Countrywide. Senator Chris Dodd was the most corrupt and is now living the life of glamour and glitz. In Hollywood, the dark favors continue, where Chris Dodd roams and where Hillary Clinton winked often.

From Pro Publica:

As Hollywood Lobbied State Department, It Built Free Home Theaters for U.S. Embassies

Four U.S. Embassies got upgraded screening rooms last year, paid for by the lobbying arm of the big studios. The industry and the government say there were no strings attached.

This story was co-published with The Daily Beast.

Hollywood’s efforts to win political clout have always stretched across the country, from glitzy campaign fundraisers in Beverly Hills to cocktail parties with power brokers in Washington.

Last year, the film industry staked out another zone of influence: U.S. embassies. Its lobbying arm paid to renovate screening rooms in at least four overseas outposts, hoping the new theaters would help ambassadors and their foreign guests “keep U.S. cultural interests top of mind,” according to an internal email.

That was the same year that the Motion Picture Association of America, which represents the six biggest studios, reported it was lobbying the State Department on issues including piracy and online content distribution. Hollywood’s interests – including its push for tougher copyright rules in the Trans-Pacific Partnership trade pact – often put the industry at odds with Silicon Valley.

The only public indication of the embassy-theater initiative was a February 2015 press release from American officials in Madrid, titled “U.S. Embassy Launches State-of-the-Art Screening Room.” It credited “a generous donation” from the MPAA.

Asked about its gifts to the State Department, the lobby group declined to say how many embassies got donations or how much they were worth.

“Because film is a great ambassador for U.S. culture around the world, MPAA assisted with the upgrade of some embassy theater facilities,” said spokeswoman Kate Bedingfield. “All gifts complied with the law as well as with State Department ethics guidelines.”

Nicole Thompson, a State Department spokeswoman, said at least three embassies besides Madrid received between $20,000 and $50,000 in entertainment upgrades last year – London, Paris and Rome. The revamped screening rooms, she said, aren’t intended to entertain U.S. officials, but rather to help them host screenings to promote an American industry and sow goodwill.

Thompson said the donations were proper and that all gifts to the department are reviewed to avoid even the appearance of a conflict of interest. “The department has explicit authorities to accept gifts made for its benefit or for carrying out any of its functions,” she said.

The State Department routinely accepts gifts from outside groups, Thompson said. She couldn’t provide any other examples of major gifts from groups that simultaneously lobby the agency. Thompson declined to list the items given by the MPAA or their total value, and wouldn’t say whether the group had made similar gifts in the past.

There was at least one precedent. A spokesman for Warner Bros. Entertainment said the studio helped pay for the refurbishment of the screening room at the U.S. ambassador’s home in Paris in 2011. “This donation was coordinated with the State Department and complied with all appropriate rules and regulations,” the spokesman said.

State Department policies posted online specifically permit gifts from individuals, groups or corporations for “embassy refurbishment, ” provided that the donors are vetted to ensure there’s no conflict or possible “embarrassment or harm” to the agency. The posted policies include no caps on the value of donations, nor any requirements for public disclosure of foreign or American donors. The rules also say that the donations can’t come with a promise or expectation of “any advantage or preference from the U.S. Government.”

Obtaining an advantage, albeit a nonspecific one, sounded like the goal when a Sony Pictures Entertainment official wrote to the studio’s chief executive officer, Michael Lynton, to relay a request to fund the screening rooms from Chris Dodd, the former U.S. senator who heads the MPAA. The executive writing the note – Keith Weaver – sought to assure the CEO that such a donation wouldn’t be improper.

“The rationale being that key Ambassadors will keep U.S. cultural interests top of mind, as they screen American movies for high level officials where they are stationed,” reads the message, included in a cache of emails hacked from Sony and which were posted online by the website WikiLeaks.

“The cost implication is estimated to be $165k (aggregate of $$$/in-kind) per embassy/per studio. Apparently, donations of this kind are permissible.”

Besides Sony, the MPAA represents Disney, Paramount, Twentieth Century Fox, Universal Studios and Warner Bros. Entertainment. The e-mails suggest that Sony executives decided against contributing to the project for budget reasons.

The MPAA has long been a powerful presence in the nation’s capital, spending $1.34 million on federal lobbying last year, according to data compiled by the Center for Responsive Politics. One of its flashier tools has been to host exclusive gatherings at its Washington screening room, two blocks from the White House, where lawmakers get to watch blockbuster films, rub elbows with celebrities, and up until several years ago, enjoy dinner – a perk scuttled because of stricter rules on congressional lobbying.

Hollywood studios depend on foreign markets for much of their profit but the MPAA’s interests don’t always align with those of other major American constituencies. For example, Hollywood studios have moved some film production to Canada to cut costs. American film workers have tried to get the federal government to stop the outsourcing of jobs, but have been met with resistance from the MPAA.

The trade group has also pushed federal officials to pressure foreign governments into adopting stricter copyright laws. An MPAA-funded study found that in 2005 worldwide piracy cost American studios $6.1 billion in revenue. That number has been disputed by digital rights advocates.

For the TPP trade deal, the MPAA has discouraged the American government from exporting “fair use” protections to other countries. In a hacked message from Dodd to the U.S. Trade Representative, the MPAA chief warned that including such provisions, which in American law allow limited use of copyrighted materials without permission, would be “extremely controversial and divisive.” Digital rights activists have characterized the efforts as overzealous.

“They’re basically encouraging other countries to adopt the most draconian parts of U.S. copyright law and even to reinterpret U.S. copyright law to make it more stringent,” said Mitch Stoltz, an attorney for the Electronic Frontier Foundation. “Broadly speaking broadening copyright law harms free speech in many cases by creating a mechanism for censorship.”

The state-of-the-art screening rooms are a relatively minimal investment by Hollywood as it works to strengthen connections abroad.

This spring, the U.S. ambassador to Spain, James Costos, brought a group of foreign officials to Los Angeles for a meeting hosted by the MPAA. Among them were representatives from the Canary Islands, who came prepared to discuss filming opportunities and tax incentives for American studios in the Spanish territory. The State Department touted the trip as an opportunity to “expand bilateral trade and investment, including through ties between the entertainment industries.”

It’s not known whether the path to that particular meeting was eased by the new screening room in Madrid. At the theater’s debut in February, the ambassador’s guests were treated to a dark tale of corruption, lobbying and double-dealing in Washington – the Netflix series “House of Cards.”