Obama on Cuba: Isolation has not worked

UPDATE: Calling U.S. policy toward Cuba outdated and ineffective, President Barack Obama announced his administration’s plans to re-establish diplomatic ties with the communist nation just 90 miles off the Florida coast.

The decades-old strategy of isolating Cuba in hopes of bringing down the Castro dictatorship has not worked, Obama said during prepared remarks at the White House.

“Though this policy has been rooted in the best of intentions, it has had little effect—today, as in 1961, Cuba is governed by the Castros and the Communist party,” Obama said.

In addition to being ineffective, U.S. policy toward Cuba doesn’t make sense in light of its diplomatic relationships with other communist countries, including China and Vietnam, the president said.

Cuban President Raul Castro, who spoke to the Cuban people at the same time Obama addressed U.S. audiences, said he welcomed the thaw in the old Cold War hostilities, even as he acknowledged differences remain between the two countries.

Obama also admitted the differences, particularly on human rights issues, saying Cubans should be free to speak their opinions and fully participate in their country’s governance without the fear of intimidation, or worse. But closer contact with the American people is the best way to share our democratic ideals, person-to-person, Obama said.

Under the new policy, Americans will be able to travel more freely to Cuba and use debit and credit cards on the island. Cuban-Americans will be allowed to send more money to relatives, a bid to help boost the nation’s economy and help foster business efforts. The U.S. also will ease sanctions on exports to Cuba, including building materials for private residential construction, goods for use by private sector Cuban entrepreneurs, and agricultural equipment for small farmers.

The Obama administration plans to open a U.S. Embassy in Havana within the next few months. High-ranking U.S. officials also will visit the island, Obama said.

“Isolation has not worked,” the president said. “It is time for a new approach.”

UPDATE (11 a.m.): U.S. officials have confirmed President Barack Obama spoke with Cuban President Raul Castro yesterday as the two countries prepared to go public with efforts to normalize their diplomatic relations.

The 45-minute phone call was the first substantive conversation between leaders of the two countries since 1961.

Both leaders will make official announcements about the talks in televised speeches at noon today.

Ahead of Obama’s speech, administration officials confirmed Cuba has agreed to release an American spy jailed in the communist country for nearly 20 years.

OUR EARLIER REPORT (10 a.m.): After decades of strained relations dating back to the Cold War, the United States and Cuba are on track re-establish official diplomatic interactions.

In a surprise announcement this morning, White House officials revealed they are in talks to normalize relations with the communist country. The secret negotiations are so advanced Obama administration officials expect to be able to open an embassy in Havana in the next few months.

Sen. Marco Rubio, R-Fla., whose family is from Cuba, said the agreement includes normalizing banking and trade ties with the tiny island nation.

As part of the move toward re-establishing diplomatic relations, Cuba this morning released American Alan Gross, who had been jailed for five years. In exchange, U.S. officials have agreed to release three Cubans jailed in Florida for spying.

The Associated Press contributed to this report.