WASHINGTON (Reuters) -- Western Union has been authorized to handle
                  wire transfers of money sent by Americans to people in Cuba, the State
                  Department said Tuesday.

                  The new system is expected to make it easier for funds to flow between the
                  United States and the communist-ruled island 90 miles off the Florida coast.

                  The U.S. Office of Foreign Assets Control (OFAC) recently authorized
                  Western Union "to remit funds to Cuba in accordance with applicable
                  regulations governing such remittances," a State Department spokesman
                  said.

                  "The Treasury department has authorized Western Union to begin
                  operations in Havana and to train personnel," he added.

                  The official said he did not know when the new system would take effect but
                  the Miami Herald reported that Western Union would begin processing the
                  remittances to the island on July 8.

                  For years, Cuban exiles wanting to send money to Cuba had to rely on a
                  network of local agencies working with businesses on the island who could
                  make funds available there. Another option was sending money with people
                  traveling to Cuba.

                  The new system reflects the Clinton administration's easing of hard-line
                  restrictions on dealings with Cuba, which has been subject to U.S. sanctions
                  since after the communist revolution in 1959.

                  President Clinton in January announced plans to promote academic, sports,
                  cultural and scientific contacts with Cuba while continuing to isolate the
                  communist government.

                  The State Department said OFAC is considering applications from other
                  financial entities who also want to become "remittance forwarders" like
                  Western Union.