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			 After 18 months of secret talks, Obama and Cuban President Raul 
			Castro agreed in a phone call on Tuesday on a breakthrough prisoner 
			exchange, the opening of embassies in each other's countries, and an 
			easing of some restrictions on commerce. 
 The two leaders made the announcement in simultaneous televised 
			speeches. The Vatican and Canada facilitated the deal.
 
 Obama's call for an end to the economic embargo drew resistance from 
			Republicans who will control both houses of Congress from January 
			and who oppose normal relations with the Communist-run island.
 
 Obama said he was ending what he called a rigid and outdated policy 
			of isolating Cuba that had failed to achieve change on the island.
 
 His administration's policy shift includes an opening to more 
			commerce in some areas, allowing use of U.S. credit and debit cards, 
			increasing the amount of money that can be sent to Cubans and 
			allowing export of telecommunications devices and services.
 
			   RESTRICTIONS REMAIN
 Travel restrictions that make it hard for most Americans to visit 
			will be eased, but the door will not yet be open for broad U.S. 
			tourism on the Caribbean island.
 
 Obama's announcement also will not end the U.S. trade embargo that 
			has been in force for more than 50 years. That is codified in 
			legislation and needs congressional approval. Obama said he would 
			seek that approval but likely faces a struggle.
 
 But sanctions experts said Obama had leeway to use executive his 
			powers to ease the embargo even in the face of congressional 
			objections.
 
 "There is a lot of breadth to authorize things more broadly than 
			they’ve been authorized, provided that the broad (legislative) 
			contours are adhered to," said Peter Kucik, a former Treasury 
			Department official who worked on Cuban sanctions.
 
 Obama said the opening was made possible by Havana's release of 
			American Alan Gross, 65, who had been imprisoned in Cuba for five 
			years. Gross' case had been a major obstacle to improving relations.
 
 Cuba also released an intelligence agent who spied for the United 
			States and was held for nearly 20 years, and the United States in 
			return freed three Cuban intelligence agents held in the United 
			States.
 
 Cuba and the United States have been ideological foes since soon 
			after the 1959 revolution that brought President Raul Castro's older 
			brother, Fidel Castro, to power. Washington broke diplomatic 
			relations with Havana in 1961 as Cuba steered a leftist course that 
			turned it into a close ally of the former Soviet Union on the 
			island, which lies just 90 miles (140 km) south of Florida.
 
 The hostilities were punctuated by crises over spies, refugees and 
			the Cuban missile crisis of October 1962 that brought the world to 
			the brink of nuclear war. After the demise of the Soviet Union and 
			the end of the Cold War, Washington was increasingly alone in its 
			efforts to squeeze Cuba. Raul Castro, who took over from Fidel 
			Castro when his brother retired in 2008, has maintained a one-party 
			political system.
 
 CRITICS CHALLENGE OBAMA
 
 Obama said Cuba still needed to enact economic reforms and uphold 
			human rights among other changes but that it was time for a new 
			approach.
 
 
			 
			Americans are largely open to establishing diplomatic relations with 
			Cuba, according to a Reuters/Ipsos poll of more than 31,000 adults 
			conducted between July and October. About one-fifth of those 
			surveyed said they opposed such a move, while 43 percent said the 
			United States should restore relations with Cuba and around 37 
			percent said they were unsure.
 
 Critics said Cuba should not be rewarded, having yet to change, and 
			the path to completely normal ties is strewn with obstacles, in 
			particular lifting the embargo that the White House said Obama would 
			like to see dismantled by the time he leaves office in 2017.
 
 Although a growing number of U.S. lawmakers favor more normal ties, 
			those lawmakers are still mostly Democrats, and after big midterm 
			election gains in November, Republicans will control both houses of 
			Congress in the new year.
 
 Senator Marco Rubio, a Cuban-American Republican, said he was 
			committed to doing all he could to "unravel" the plan. Senators John 
			McCain and Lindsey Graham, both set to hold senior foreign policy 
			positions, said the policy shift reflected "America and the values 
			it stands for in retreat and decline."
 
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			Former Secretary of State and potential 2016 Democratic presidential 
			contender Hillary Clinton backed Obama's move, saying: "Our 
			decades-long policy of isolation has only strengthened the Castro 
			regime's grip on power."
 Whatever the criticism at home, Obama's move was made with the 
			political liberty of a president who, midway through his second 
			term, no longer has to face the electorate.
 CUBAN-AMERICANS SPLIT
 News of the changes rippled fast through the 1.5 million-strong 
			Cuban-American community in the United States. It was hailed by some 
			who are eager to see closer ties with the island and condemned by 
			others.
 
 Older Cubans who left the island soon after the revolution have 
			remained opposed to ties with either Castro brother in power. 
			Younger Cubans, who left more recently or were born in the United 
			States, have shown more interest in warmer relations.
 
 "It's amazing," said Hugo Cancio, who arrived in Miami in the 1980 
			Mariel boatlift and runs a magazine with offices in Miami and 
			Havana. "This is a new beginning, a dream come true for the 11.2 
			million Cubans in Cuba, and I think it will provoke a change of 
			mentality here too in this community."
 
 In Havana, stunned Cubans celebrated the news, although some were 
			skeptical the long years of animosity really would end. In one 
			student demonstration on a busy Havana street corner, about 100 
			people shut off traffic while motorists honked their horns. 
			Neighbors peered out from their balconies, joining in the cheers.
 
 "I have waited for this day since I can remember," said taxi driver 
			Jorge Reymond, wiping away tears.
 
 
			
			 
			Obama's move was also praised by Latin American leaders, who have 
			urged Washington for years to drop its economic embargo against 
			Havana.
 
 GROSS CASE
 
 Obama said the Gross case had stalled his ambitions to try to reset 
			relations with Havana, calling it a "major obstacle." Pope Francis, 
			the first Latin American pontiff, played an active role in pressing 
			for his release from Cuba, where a sizable part of the population is 
			Roman Catholic.
 
 Cuba arrested Gross on Dec. 3, 2009, and sentenced him to 15 years 
			in prison for importing banned technology and trying to establish 
			clandestine Internet service for Cuban Jews. Gross had been working 
			as a subcontractor for the U.S. Agency for International 
			Development.
 
 Gross' lawyer and family have described him as mentally vanquished, 
			gaunt, hobbling and missing five teeth. Speaking to reporters after 
			arriving in the United States, Gross thanked Obama for all he had 
			done to secure his release and said he did not blame the Cuban 
			people for his ordeal.
 
 The three Cuban intelligence agents, jailed since 1998, are Gerardo 
			Hernandez, 49, Antonio Guerrero, 56, and Ramon Labañino, 51. Two 
			others had been released before on completing their sentences - Rene 
			Gonzalez, 58, and Fernando Gonzalez, 51. The three arrived in Cuba 
			on Wednesday, Castro said.
 
 (Additional reporting by Matt Spetalnick, Patricia Zengerle, Roberta 
			Rampton, Richard Cowan, Anna Yukhananov and Alistair Bell in 
			Washington, and Anthony Boadle in Brasilia; Writing by Frances 
			Kerry; Editing by Howard Goller, Peter Cooney and Lisa Shumaker)
 
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