US groups urge Obama to further loosen Cuba embargo

WASHINGTON (Reuters) - A coalition of U.S. business, academic and other groups have urged President Barack Obama to respond to Cuba's recent release of political prisoners by reversing remaining travel restrictions imposed by former President George W. Bush.

"Mr. President, this is an important moment. We ask you to take bold steps to reverse decades of counterproductive policies toward Cuba, and we pledge our support," the groups said in a letter to Obama on Monday.

The groups sending the letter included the National Foreign Trade Council, the National Tour Association, the American Association of State Colleges and Universities, the Center for Democracy in the Americas and the Washington Office on Latin America.

Cuba has promised to free 52 jailed dissidents as the result of a new dialogue between the Cuban government and the Catholic Church, which began in earnest in May.

By the end of July, 20 of the promised 52 prisoners had been released through the mediation of the church, which said the process could take four months.

Cuba's largest release of political prisoners since 1998 has been viewed internationally as a possible turning point for the communist-run island.

Obama, during his first year in office, reversed some restrictions imposed by Bush to punish Cuba for the arrests of the prisoners now being released.

That action has allowed Americans with relatives in Cuba to send them unlimited cash and visit the island as long and as often as they would like.

"You have indicated that further steps would be possible in response to positive actions by Cuba, specifically including the release of political prisoners," the groups said in their letter to Obama.

"Now that such action is being taken, it is essential that you respond, at a minimum, by removing the remaining restrictions that were imposed by President Bush," they said.

The groups urged Obama to reverse Bush's restrictions on academic and people-to-people exchanges, and make the additional reform of allowing eligible persons to travel to Cuba under a general license.

They also urged Obama to throw his support behind efforts in Congress to lift the ban on travel to Cuba.

(Reporting by Doug Palmer; Editing by Bill Trott)