By CYNTHIA CORZO
Herald Business Writer

Official Web site

Streamlining the process for people in the United States to send money to Cuba, Western Union has been given authorization by the U.S. government to handle wire transfers to the island.

For years, Cuban exiles -- and more recently any U.S. resident -- wanting to send money to Cuba had to rely on a network of local agencies working with businesses on the island who would make funds available there. Another option was sending the money with people traveling to the island.

The new service, another step in the Clinton administration's easing of hard-line restriction on dealings with Cuba, is likely to be faster, more reliable and less expensive.

The State Department on Monday confirmed that Western Union, which had been granted a Treasury Department license in 1994 to handle cash transfers from exiles only for emergency expenses or emigration costs, will be able to process any remittances to the island, starting July 8.

The authorization is an extension of regulations announced by President Clinton in January to promote academic, sports, cultural and scientific contacts with Cuba while continuing to isolate its Communist government. Anyone in the United States can send up to $300 every three months to friends or relatives on the island, but not to senior Cuban government or party officials.

''This will streamline the [remittance] process, cut down on the red tape and make things easier for families in the United States,'' said a State Department official who spoke on the condition of anonymity. ''In essence, it cuts out the middleman.''

The decision was welcomed by the Cuban American National Foundation, a prominent exile lobbying organization.

''This is one of the measures that we have been pushing for several years. By allowing Western Union to wire the remittances, we can avoid speculators from taking advantage of people who are sending money,'' said Ninoska Perez Castellon, a CANF spokeswoman. ''This can benefit both the recipient in Cuba and the relative in the United States.''

The service will be handled by Western Union and the Cuban company CIMEX at 30 locations on the island -- Panamerican Stores and Servi-Cupet gasoline stations. Service will be available in Havana and 12 other cities. It will not include the remainder of Havana province and the Isle of Youth (formerly the Isle of Pines).

Initially, the service will be offered only at Western Union offices in Florida. It will extend gradually to the rest of the United States and Puerto Rico.

''This will be more convenient, more reliable,'' said Lisandro Perez, director of the Cuban Research Institute at Florida International University. ''There is a legitimizing thing about Western Union. People will use them more than the agencies that they have been dealing with for years.''
$29 fee

Western Union will charge a fee of $29 for sending between $200 and $300 in cash.

Over the years, agencies offering the service to Cuba have set their own price, usually charging according to the amount sent. One local company, Cuba Paquetes, charges 15 percent. For the $300, the charge would be $45.

For customers using Marazul Charters, which sends the money through a service called AIS, the total fee usually amounts to 13 percent. Part of the fee is paid in United States to Marazul, and part is paid to AIS in Cuba.

Francisco Aruca, owner of Marazul Aruca, said he welcomes Western Union's service, even if it takes away some of his clients.

''This will increase competition,'' Aruca said. ''I won't speak of whether other businesses will be hurt by this. I can guarantee that Marazul will continue offering excellent service. But if Western Union provides better service, and we have to stop transferring remittances, so be it. They have better resources and given their experience will provide excellent service.''