History now made, U.S. and Cuba face bumpy road ahead

History now made, U.S. and Cuba face bumpy road ahead
PANAMA CITY | BY DANIEL TROTTA AND MATT SPETALNICK

In the first meeting of its kind in nearly 60 years, U.S. President
Barack Obama and Cuban leader Raul Castro sat down together for over an
hour on Saturday at a regional summit in Panama, moving a step closer to
restoring diplomatic ties.

It was the result of nearly two years of secret talks and quiet
diplomacy and the mood was positive, both inside the room and out, where
Latin American leaders praised Obama for ending decades of U.S.
hostility toward the communist-ruled island.

At a time of multiple risks to his foreign policy record - from Iran's
nuclear program and the war in Syria to Russian involvement in Ukraine
and the violence of Islamic State - getting on well with Cuba looks
relatively easy.

"The Cold War is over," Obama said. "I think there is a strong majority
both in the United States and in Cuba that says our ability to engage,
to open up commerce and travel and people-to-people exchanges is
ultimately going to be good for the Cuban people."

Yet the gulf between the two sides remains wide, illustrated by the
absence of U.S. and Cuban flags at the carefully orchestrated meeting on
Saturday in a sparsely furnished conference room.

The U.S. economic embargo, which has blocked nearly all trade between
the two nations for the last five decades, is firmly in place. Cuba's
human rights record stills draw scorn from Washington, as does U.S.
foreign policy from Havana.

"Let's not fool ourselves. We have a lot of differences," said Castro,
83, who has been an enemy of the United States for most of his life and
still railed passionately against its past policies even as he praised
Obama as "an honest man".

"In other words, we're willing to talk about everything with patience,
with a lot of patience," added the army general and younger brother of
revolutionary leader Fidel Castro.

Obama and Castro announced in December they would work to re-establish
full diplomatic ties severed in 1961, reopen embassies in each other's
capitals and free up trade and travel.

Restoring diplomatic relations is easy enough, requiring little more
than the presidents' agreement. But normalizing overall relations could
take years.

Cuba has shown no signs that it is willing to allow wider political
rights. The government dismisses dissidents as mercenaries, moves
quickly to stifle dissent, and Castro has made clear he does not intend
to allow any relaxation of Communist Party rule.

And while Cuba is looking to draw in foreign investment, any U.S.
businesses seeking to set up there need the government's blessing.
Castro's government moves cautiously, as it has shown with its own
market-style economic reforms in recent years.

TERRORISM LIST

In the short term, Cuba is still waiting to be removed from the U.S.
State Department's list of state sponsors of terrorism, a unilateral
designation that Cuba rejects as unjust.

Obama is expected to inform Congress within a few days he is taking Cuba
off the list, which would free the island from some economic sanctions.

There had been some expectations that Obama would announce his intention
to remove the terrorism designation and move forward on restoring
diplomatic relations at the summit.

Though there is little doubt that Havana will be taken off the
blacklist, U.S. officials privately have made clear that they have
sought to use the timing of the move as leverage in broader
normalization negotiations.

A number of unresolved issues have slowed down the process, including
Washington's wish that Cuba allow U.S. diplomats to travel around the
island and relax the police presence around the diplomatic mission in
Havana, where visiting Cubans are closely watched.

"They're building a road, and when you're building a road you don't
expect to finish right away," Brazilian President Dilma Rousseff,
speaking in Panama, said of the U.S.-Cuba relationship.

Obama wants the Republican-controlled U.S. Congress to dismantle the
embargo and some allies believe a coalition of Democrats and Republican
free-marketeers may succeed.

It could be a long battle.

The U.S. president has already used his executive powers to ease travel
restrictions to Cuba, and allow U.S. importers to buy goods from
independent Cuban contractors and exporters to ship building materials
to private Cuban companies.

He has so far used those powers sparingly, however, and Cuba would like
him to go further.

"President Obama retains ample executive authority ... to eliminate the
embargo," said Foreign Minister Bruno Rodriguez.

U.S. officials acknowledge Obama can ease more restrictions on his own,
within limits, but they are waiting to see the results of the latest
changes before deciding future measures.

While Cuba is keen to reopen embassies and see more U.S. sanctions
lifted, U.S. officials say the communist government appears intent on
moving slowly toward full normalization, fearful that a quick opening in
areas like travel, trade and Internet access might loosen its grip on
Cuban society.The meeting between Obama and Castro was marked by what
one U.S. official described as a spirited back-and-forth over issues
that divide them, including human rights and press freedoms.

"There wasn't tension," the official said, adding that there were also
"lighter moments" when the leaders marveled at how unimaginable such a
meeting would have been not long ago.

(Reporting by Daniel Trotta, Matt Spetalnick, Dave Graham and David
Alire Garcia; Editing by Kieran Murray)

Source: History now made, U.S. and Cuba face bumpy road ahead | Reuters
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http://www.reuters.com/article/2015/04/12/us-cuba-usa-idUSKBN0N116V20150412