Monday, July 20, 2015

As Embassies Open, a Further Cuban Thaw Faces Hurdles in Congress
By FELICIA SCHWARTZ
July 19, 2015 9:49 p.m. ET

WASHINGTON—About 500 guests are expected to mark the unfurling of Cuba’s blue, red and white-starred flag over its embassy in Washington on Monday. In Havana, the U.S. Interests Section will quietly be restored to an embassy the same day, without a ceremony.

Afterward, the next substantial results from President Barack Obama’s normalization push could be years away. Secretary of State John Kerry’s historic visit to Havana later this summer will be of symbolic importance, as will the pope’s visit in September. But with the embassies and diplomatic relations officially restored Monday, much of the onus now lies with Congress to carry out Mr. Obama’s vision to normalize ties with Cuba.

Last December, Mr. Obama announced a series of steps his administration would take on its own to begin normalizing ties with Cuba, including re-establishing diplomatic relations, removing Cuba from the state sponsor of terrorism list, loosening financial and travel restrictions and authorizing some commercial sales and exports to Cuba’s growing private sector.

The new regulations took effect in January, but Congress will have to act to fully lift the trade and travel embargoes. Most U.S. companies are currently prohibited from doing business in Cuba and traveling there from the U.S. as a tourist remains illegal.

White House press secretary Josh Earnest said Friday that the Obama administration hadn’t made progress in encouraging Congress to lift the embargo but that Mr. Obama could still take steps on his own that couldn’t be blocked by opponents in Congress.

“There exists bipartisan support for advancing the policy that the president announced to normalize our relations with Cuba, but there have been some entrenched partisan interests that have tried to block this in Congress so far,” Mr. Earnest said.

A 30-person Cuban delegation and U.S. lawmakers supportive of President Barack Obama’s push to thaw relations with Cuba are expected to be among those at Monday’s invite-only ceremony and reception to mark the first Cuban embassy in Washington in 54 years. The U.S.’s chief negotiator in the diplomatic talks, Roberta Jacobson, and the newly elevated charge d’affaires at the embassy in Havana, Jeffrey DeLaurentis, are also slated to attend.

Meanwhile in Miami, three opponents of Mr. Obama’s Cuba policy will be holding a news conference in Miami to denounce the reopening of the embassy.

“The redesignation of our diplomatic facility in Havana recklessly confers legitimacy on the Castro regime, even as crackdowns continue on democratic activists,” said Rep. Carlos Curbelo (R., Fla.). He will be joined by fellow Cuban-American Republican Reps. Ileana Ros-Lehtinen (R., Fla.) and Mario Diaz-Balart (R., Fla.)

Sen. Marco Rubio (R., Fla.), a Cuban-American and 2016 Republican presidential contender, vowed to reverse the renewed diplomatic ties if elected.

“I would end the diplomatic relations with an anti-American communist tyranny, until such time as they actually held a democratic opening in Cuba, allowed people to organize independent political parties, have freedom of the press and freedom of expression,” Mr. Rubio said on CNN on Sunday.

There are several bills in both houses of Congress aimed at lifting the embargo. The White House and its supporters of the policy shift are working toward a piecemeal approach, in which the travel ban would be lifted first, followed by the trade embargo. Republican leaders in both the House and the Senate have said it would be a challenge for the Obama administration to win the removal of sanctions imposed by Congress.

Sen. Jeff Flake (R., Ariz.), a sponsor along with 44 other senators of the bill to lift the travel ban in the Senate, will be on hand Monday for the festivities at what will then be the Cuban embassy. He said the restoration of diplomatic ties was long overdue.

Sen. Amy Klobuchar (D., Minn.) and Rep. Barbara Lee (D., Calif.) will also be in attendance Monday.

Much of the action on Cuba legislation has happened in the Senate so far, but companion bills are beginning to surface in the House. Two Republican lawmakers will introduce a bill in the House Monday to allow U.S. telecommunications and Internet companies to provide services and devices in Cuba. A similar bill was introduced in the Senate in May.It is unlikely, however, that any of these bills supporting normal ties with Cuba will be passed into law this year. Obama administration officials have said they believe it is possible the travel ban could be lifted before Mr. Obama leaves office.

But lawmakers could soon face more pressure as fresh lobbying efforts begin to take root. Among the U.S. companies pushing for an end to the travel and trade bans is Caterpillar Inc., which covets a piece of the Cuban market for mining and construction equipment now dominated by such rivals as Volvo Group of Sweden and Japan’s Komatsu Ltd.

Before Mr. Obama’s announcement, more than 25 food and agriculture companies, including Cargill Inc., launched the U.S. Agriculture Coalition for Cuba, and the group now includes more than 100 members. Former Senate Majority Leader Tom Daschle (D., S.D.) and former Sen. Nancy Kassebaum (R., Kan) recently launched the Cuba Consortium to lobby for normalization.

The breadth of Mr. Obama’s moves in December to loosen restrictions on travel and trade surprised some Cuba watchers who had long hoped to see unfrozen ties. But still there is more he can do, said William LeoGrande, a professor at American University and co-author of a recent book about 50 years of back channel talks between the U.S. and Cuba.

“In a strictly legal sense, Mr. Obama can use his licensing authority to license almost anything,” Mr. LeoGrande said. “Realistically thinking, there’s a handful of things that are possible and that might actually happen.”

That would include licensing U.S. banks to clear dollar denomination transactions between Cuba and other international actors, Mr. LeoGrande said. The current restriction has largely barred Cuba from reintegrating into the international economy.

Mr. Obama could also further loosen travel restrictions by licensing individuals to travel to Cuba for people-to-people exchanges. The general license that went into effect in January only allows people to take such trips in groups arranged by third-party travel providers. Mr. Obama could also take other steps to loosen restrictions on sales of pharmaceuticals and scientific equipment, Mr. LeoGrande said.

On Monday, Mr. Kerry will host his Cuban counterpart Bruno Rodriguez at the State Department, and the two are expected to discuss telecommunications, human rights and law enforcement issues. As normalization progresses, the two sides are expected to hold talks about compensation for American property seized after the 1959 Cuban revolution.

Thousands of lawsuits have been filed in the U.S. and are estimated to be valued at over $7 billion. Cuba, for its part, says America owes Cubans more than $100 billion for the harm caused by the embargo.

The U.S. would also like to see Cuba return fugitives wanted in the U.S., including Joanne Chesimard who is on the FBI’s Most-Wanted Terrorists list for killing a New Jersey state trooper in 1973.

Meanwhile, at the soon-to-be embassy Sunday, more than a dozen staffers gathered to walk through the choreography of the flag raising ceremony. Satellite trucks and media risers were positioned across the street from the limestone mansion.

In Havana, a flag-raising ceremony and installation of a new sign at the U.S. interests section will wait until Mr. Kerry travels to Havana later this summer.

—James R. Hagerty contributed to this article.

Write to Felicia Schwartz at Felicia.Schwartz@wsj.com

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