WASHINGTON – The United States will restore diplomatic relations with Cuba in the most sweeping changes to U.S.-Cuba policy since President Dwight Eisenhower severed ties with its communist rulers and the two countries faced each other in the most dangerous flash point of the Cold War.
President Obama said Wednesday that he's scrapping an "outdated approach" to opening the island to democracy after reaching a deal with Cuban leader Raúl Castro to release an American jailed in Cuba and three Cubans convicted of spying on the U.S.
"These 50 years have shown that isolation has not worked," Obama said at the White House, announcing the changes as Alan Gross, imprisoned on the island for five years, arrived in the U.S. "It's time for a new approach."
The deal — reached after months of secret negotiations in Canada and at the Vatican — also involved the release from prison of a Cuban man Obama described as "one of the most important intelligence agents" that the United States ever had in Cuba.
As a result, the United States will set up an embassy in Havana and possibly remove Cuba from the list of states that sponsor terrorism.
The thaw comes decades after the U.S. drew a bright line in response to the revolution on the island 90 miles from Florida, ordering an embargo in 1960 after the government nationalized all American-owned property, cutting off official contact with the Cuban government in January 1961, backing a failed invasion later that same year, and then going to the brink of nuclear war with the Soviet Union over missiles in Cuba in 1962.
Now, in addition to opening an embassy, the U.S. will loosen restrictions on travel and trade with the country, making it easier for more Americans to travel there and allowing them to bring back as much as $400, including $100 worth of alcohol and tobacco.
It will permit the export of certain goods, including building materials for private housing and goods for use by private-sector Cuban entrepreneurs, and allow U.S. credit and debit cards to be used by travelers to Cuba.