Would OK some sales to Cuba

 BY FRANK DAVIES AND ANA RADELAT

 WASHINGTON -- Republican leaders in Congress and farm-state senators on
 Thursday were nearing a deal to allow the sale of agricultural products to Cuba,
 with restrictions on financing, while blocking expanded travel to the island.

 But House leaders and Rep. Lincoln Díaz-Balart, a Miami Republican, called the
 plan a done deal. It would allow cash sales to Cuba and Iran but ban the use of
 U.S. credits or financing by American financial institutions.

 Rep. Roy Blunt, R-Mo., who helped negotiate the deal, characterized the
 agreement as a ``significant opening'' for trade with Cuba. A U.S. embargo on
 such trade has been in effect since 1962.

 But some farm-state senators, including Republican Pat Roberts of Kansas and
 Chuck Hegel of Nebraska, complained that financing restrictions in the deal are
 so onerous that U.S. farmers will realize few benefits. They are pushing for
 changes in the legislation to make sales easier.

 GOP leaders made the deal more attractive to farm states by allowing the
 restriction on U.S. financing of sales to Iran be waived by the president for
 national security purposes. U.S. farmers and economists believe that Iran, with a
 larger market and a healthier economy than Cuba, is a much better immediate
 trading partner.

 The legislation is part of a $75 billion agricultural bill that has been stalled for
 weeks over the Cuba issue.

 House leaders, facing adjournment in the next two weeks, hope for floor votes in
 both chambers next week.

 The final agriculture bill, which cannot be amended, will be voted either up or
 down.

 Rep. George Nethercutt, R-Wash., the House sponsor of the anti-sanctions
 legislation, pressed for a couple of changes that would make deals with Cuba
 easier: allowing U.S. banks to process third-country loans involved in sales to
 Cuba, and permitting U.S. insurers to handle foreign policies guaranteeing
 shipments to the island.

 The House's Cuban-American members, defenders of the embargo over the years,
 have fought a rising tide of political sentiment -- mainly from farm states -- to allow
 the sale of U.S. agricultural products to Cuba.

 Both the House and Senate voted in principle earlier this year to punch holes in
 the embargo and to allow travel to the island.

 Díaz-Balart said he is satisfied that the language in the legislation is restrictive,
 making it difficult for U.S. companies to do business in Cuba because they will
 have to go through third countries for financing.

 ``Some sales are possible, if they go through third countries,'' said Díaz-Balart.
 ``But Castro doesn't purchase without public financing, because he doesn't pay
 what he owes.''

 House leaders allied with Díaz-Balart and Rep. Ileana Ros-Lehtinen, another
 Miami Republican, were also able to fight off major changes in the travel ban.