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AT THIS HOUR WITH BERMAN AND MICHAELA

U.S., Cuba Reopen Diplomatic Relations. Aired 11:00-11:30a. ET.

Aired July 1, 2015 - 11:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


[11:00:00] JOHN KING, CNN CORRESPONDENT: Here in the Rose Garden, President Obama announcing that the U.S. and Cuba are reopening their embassies, located of course in Washington and Havana. They were be located in their existing offices of the U.S. special interest section in Havana and the Cuban interest section here in Washington.

The Cubans, as a matter of fact, just recently installed a flagpole, that they'll be raising the Cuban flag at. And from what we understand Wolf, there's no timetable set for when the U.S. embassy will open up in Cuba although we expect that to happen this month. The Cubans though were saying their embassy will up - open up on July 20th.

Now, as for who will be the ambassador, we've been told by senior administration officials that the existing, current interest section's chief who is in Havana right now will likely be the, the ambassador for the time being, the acting ambassador for the time being because it's likely - very likely up on Capitol Hill but the Republicans will block any kind of nomination of a permanent ambassador.

As you know, Wolf, there are Republicans - Cuban American Republicans up on Capitol Hill like Marco Rubio who's running for president who doesn't like what the president was doing here with this new policy. He says that the United States needs to demand a fuller appreciation of human rights in Cuba, protection of human rights in Cuba.

And that has been a sticking point for U.S. and Cuba over the last several months in terms of opening up these embassies, the U.S. wants to be assured that their diplomats down in Havana will be able to visit with Cuban dissidents in that country. It's not clear whether or not the White House has gotten those assurances. But this has been a policy priority for the president. And we're going to see this play out here in just a few moments at the White House.

He has achieved one of the items as he has put it recently on his bucket list, his foreign policy bucket list. And we'll see that here in just a few moments. Wolf.

WOLF BLITZER, CNN ANCHOR: We - so we - as we await the president, that should be noted that the Secretary of State John Kerry probably will go to Havana for the formal opening of the U.S. embassy there. And it has no secret that President Obama would also like to visit Havana at some point before he leaves office. Let's go to Havana right now. Patrick Oppmann is on the scene for us there. How was it playing over there, Patrick?

PATRICK OPPMAN, CNN CORRESPONDENT: There's been an excitement building for a month now. Ever since December, Cubans have been wondering when an American flag will once again fly over the American embassy? And the answer that we're getting - that we've gotten over the past several weeks and today is very soon. Possibly as soon as this month. They are working out the final details.

As you said, Secretary Kerry would like to come back, would like to come for the first time to Havana to reopen the U.S. embassy after 54 years of broken relations. But on July 20th, we're told that's the day that in both countries relations will be officially restored. But of course the embassy-opening ceremony will come a little bit later. But July 20th is date - the historic date when, despite all these years of cold war, animosity, U.S. and Cuban relations will be restored.

Jeff DeLaurentis, the state department's man in Havana was at the Cuban foreign ministry this morning essentially taking care of the paperwork. And it's truly the end of a long process. The man next to me was very involved in, please take a step in here, this is Scott Gilbert, he's an attorney for Alan Gross. And you were involved over the months of the secret negotiations, one of the best-kept secrets in Havana and in Washington, eventually led to the freeing of your client. I know Alan Gross was informed you said of the decision today. How he's he doing and what's his reaction to the news that we will once again re-establish relations with, with Cuba?

SCOTT GILBERT, ATTORNEY FOR AMERICAN RELEASED FROM CUBAN PRISON: Well, Patrick, this is a magnificent day for the people of both countries. Alan is extraordinarily pleased. I talked to him yesterday. Each of us received a call from the state department informing us of the final decision. And Alan has spent much of his time since his release working with congress and others in Washington to see a full normalization of relations between our countries.

OPPMANN: He was in jail here for five years, lost over 100 pounds. A lot of people would be embittered, surely, not have any well wishes for the government that jailed him all over those years. But he's seen taken a different path and feels that this is the best possible outcome for not only the U.S. people and the Cuban people. Why?

GILBERT: Alan believed that information flowed between the citizens of both countries was critical. It's why he came to Cuba in the first place. And Alan continues to have a great fondness for the Cuban people and believes, as do a majority of Americans and a vast majority of Cubans, that normalization of relations between our countries will be the best outcome for both countries and the people of those countries. And he fundamentally wanted his incarceration to mean something. And from Alan's perspective and certainly mine, this is the best testament to that incarceration.

[11:05:00] OPPMANN: Thank you so much. Good to have you here. And with just a short while ago, the Cuban government put out a statement saying that essentially the deal has been reached after all these months of negotiation, the back and forth. We're waiting to hear some of the details of the deal, whether U.S. and Cuban diplomats will be able to leave their respective capitals.

We know the U.S. is still - there still be some restrictions on the work that U.S. diplomats do here. But they said, that's not unlike the work in other communist countries. And, and they feel that this is only the best out forward for the Cuban government side, they say that, they feel that the relationship moving forward now can be based on one of respect. And this will begin the process, a much longer process of actually normalizing relations.

But as well, the Cuban government also tracking something of a defiant tone today saying they will not change their political or economic system. Certainly, the government of Raul Castro says, that even though there will be a U.S. embassy back in Havana, after all these years that it will be the communist party. That the government of Raul Castro, that will remain in control of this country as far as they are concerned, nothing really will change.

BLITZER: Huge, huge day here in Washington, a huge day in Havana as well. Patrick, stand by. I want to bring in Elise Labott, our Global Affairs Correspondent. The president will speak in the Rose Garden and at some point we'll also hear from the Secretary of State John Kerry. He's in Vienna, Austria, right now trying to negotiate this Iran nuclear deal. He has got a lot going on clearly right now. But he definitely wants to go to Havana only at least when that U.S. embassy, that American flag flies over Havana for the first time in 54 years.

ELISE LABOTT, CNN CORRESPONDENT: Oh, Secretary Kerry does definitely plans to be there, Wolf. And I think it's just a process that has been going on these last few months. Everyone's been really getting ready for this day. As Patrick said, the Cubans here put up their flagpole. The U.S. intersection in Havana has been a sore spot really since the Eisenhower administration, Wolf. The enemy between these two countries. And now for this to be happening. I think it's been the process of very difficult negotiations after this announcement that the U.S. and President Obama, President Castro announced difficult negotiations about as Patrick said, how the U.S. would be able to operate in that country.

BLITZER: Only seconds away, Jim Sciutto, from the President of the United States. But this is history right now.

JIM SCIUTTO, CNN CORRESPONDENT: And just look at this week. Two countries where you've had decades-long hostile relations, Cuba and Iran. And possible Iran deal coming next week. But even just over the last year, the reproach mob between these two countries and this is an example of President Obama's risk-taking foreign policy. He's described it as having a confident American foreign policy, the confidence to deal with countries where you've had this long difficult relationships.

Of course, their different views, Ross Latham, who's a critic of this deal has said that the president's legacy shopping here with his agreement. There is still - there are still many comfortable with Cuba's human rights record, et cetera. But I don't think we can underestimate the change that has come in these last couple of years with Cuba, with Iran, two relationships that were irretractable through Republican and Democratic presidents over the last decades and we're seeing that change happening now. Of course, still the question is, be should we deal with Iran?

LABOTT: I think what's really interesting now to see is, yes, these countries, the U.S. has been engaging with them. But the U.S. is hoping and President Obama's acknowledged that the embargo is not hoping - helping. Cuba was not changing. The hope is that the more the U.S. can engage with Cuba, they'll be a more moderate regime, there'll be a more moderate system - we haven't seen that in Iran.

SCIUTTO: That, that's the hope. We've engaged - we've engaged a lot with China and that hasn't changed China over the decades either.

LABOTT: Exactly.

BLITZER: The, the president will make the announcement momentarily that the United States and Cuba are formally restoring full diplomatic relations. There will be a U.S. ambassador in Havana. There will be a Cuban ambassador here in Washington. There will be critics though as we know, the critics are up on Capitol Hill. They do have the power of the purse. Technically, potentially, they could try to block funding for the reopening of that U.S. embassy. They certainly could try to block a nominee, whoever the president nominates to become the first U.S. ambassador in so many decades to Cuba.

That, that ambassadorial nominee has to be confirmed by the United States Senate, there could be opposition there. But by all accounts, this process is moving forward right now. There will be critics. (Diana Rosli) and among others, the congress will then be in South Florida but there would be many who will applaud this decision. Here's the president.

PRESIDENT BARACK OBAMA, UNITED STATES OF AMERICA: Good morning, everybody. Please have a seat. More than 54 years ago at the height of the cold war, the United States closed its embassy in Havana. Today I can announce that the United States has agreed to formally re- establish diplomatic relations with the Republic of Cuba and reopen embassies in our respective countries. This is a historic step forward in our efforts to normalize relations with the Cuban government and people and begin a new chapter with our neighbors in the Americas.

When the United States shuttered our embassy in 1961, I don't think anyone expected that it would be more than half a century before it reopened. After all, our nations are separated by only 90 miles and their deep bonds of family and friendship between our people. But there have been very real, profound differences between our governments. And sometimes we allow ourselves to be trapped by a certain way of doing things. [11:10:00] For the United States, that meant clinging to a policy

that was not working. Instead of supporting democracy and opportunity for the Cuban people, our efforts to isolate Cuba, despite good intentions, increasingly had the opposite effect, cementing the status quo and isolating the United States from our neighbors in this hemisphere. The progress that we mark today is yet another demonstration that we don't have to be imprisoned by the past. When something isn't working, we can and will change.

Last December, I announced that the United States and Cuba had decided to take steps to normalize our relationship. As part of that effort, President Raul Castro and I directed our teams to negotiate the re-establishment of embassies. Since then, our State Department has worked hard with their Cuban counterparts to achieve that goal. And later this summer, Secretary Kerry will travel to Havana formally to proudly raise the American flag over our embassy once more.

This is not merely symbolic. With this change, we will be able to substantially increase our contacts with the Cuban people. We'll have more personnel at our embassy. And our diplomats will have the ability to engage more broadly across the island. That will include the Cuban government, civil society, and ordinary Cubans who are reaching for a better life.

On issues of common interest like counterterrorism, disaster response, and development, we will find new ways to cooperate with Cuba. And I've been clear that we will also continue to have some very serious differences. That will include America's enduring support for universal values, like freedom of speech and assembly, and the ability to access information. And we will not hesitate to speak out when we see actions that contradict those values.

However, I strongly believe that the best way for America to support our values is through engagement. That's why we've already taken steps to allow for greater travel, people-to-people and commercial ties between the United States and Cuba. And we will continue to do so going forward.

Since December, we've already seen enormous enthusiasm for this new approach. Leaders across the Americas have expressed support for our change in policy; you heard that expressed by President Dilma Rousseff of Brazil yesterday. Public opinion surveys in both our countries show broad support for this engagement. One Cuban said, "I have prepared for this all my life." Another said that that, "this is like a shot of oxygen." One Cuban teacher put it simply: "We are neighbors. Now we can be friends."

Here in the United States, we've seen that same enthusiasm. There are Americans who want to travel to Cuba and American businesses who want to invest in Cuba. American colleges and universities that want to partner with Cuba. Above all, Americans who want to get to know their neighbors to the south. And through that engagement, we can also help the Cuban people improve their own lives. One Cuban American looked forward to "reuniting families and opening lines of communications." Another put it bluntly: "You can't hold the future of Cuba hostage to what happened in the past." And that's what this is about: a choice between the future and

the past.

Americans and Cubans alike are ready to move forward. I believe it's time for Congress to do the same. I've called on Congress to take steps to lift the embargo that prevents Americans from traveling or doing business in Cuba. We've already seen members from both parties begin that work. After all, why should Washington stand in the way of our own people?

Yes, there are those who want to turn back the clock and double down on a policy of isolation. But it's long past time for us to realize that this approach doesn't work. It hasn't worked for 50 years. It shuts America out of Cuba's future, and it only makes life worse for the Cuban people.

So I'd ask Congress to listen to the Cuban people. Listen to the American people. Listen to the words of a proud Cuban American, Carlos Gutierrez, who recently came out against the policy of the past, saying, "I wonder if the Cubans who have to stand in line for the most basic necessities for hours in the hot Havana sun feel that this approach is helpful to them."

Of course, nobody expects Cuba to be transformed overnight. But I believe that American engagement, through our embassy, our businesses, and most of all, through our people is the best way to advance our interests and support for democracy and human rights. Time and again, America has demonstrated that part of our leadership in the world is our capacity to change. It's what inspires the world to reach for something better.

A year ago, it might have seemed impossible that the United States would once again be raising our flag, the stars and stripes, over an embassy in Havana. This is what change looks like.

[11:15:00] In January of 1961, the year I was born, when President Eisenhower announced the termination of our relations with Cuba, he said: It is my hope and my conviction that it is "in the not-too-distant future it will be possible for the historic friendship between us once again to find its reflection in normal relations of every sort." Well, it took a while, but I believe that time has come. And a better future lies ahead.

Thank you very much. And I want to thank some of my team who worked diligently to make this happen. They're here. They don't always get acknowledged. We're really proud of them. Good work.

BLITZER: All right. You heard a reporter shout to the president, when are you going to go to Cuba? There's no secret. All right here, the

president would like to go to Havana before he leaves office. He's got about a year and a half to go before he steps, before he leaves the White House. Very historic day. I want to go to right to our own Alina Machado, she is down in Miami, in our little Havana to get some reaction. We know, Alina there have been various voices coming out of the Cuban American community, older Cuban Americans who lived through the Castro regime through the '60s, through the '50s, is not very happy, their children a little more accepting and the grandchildren on board, pretty much. Give us a sense of what's going on in South Florida.

ALINA MACHADO, CNN CORRESPONDENT: I want to show you a little bit of what we're seeing here. We're starting to see some reaction here. These two gentlemen over here just came out a few minutes ago holding signs, they are very critical of the president, they are very upset by the fact that these embassies will be reopening. And this is what we saw back in December when the president opened the possibility and started talking about the re-establishment of relations, diplomatic relations between both countries. The older generation of Cuban Americans in Miami, many of them feel like these gentlemen. They

feel that it's a travesty, they feel that it's the wrong thing to do. Some of the younger generations of Cuban Americans here in Miami that we spoke with back in December, and we expect might be coming out here later today.

They favor the change, Wolf. So we're yet to see some of the reaction here. This is the beginning of the reaction here in Miami to the change.

BLITZER: All right. We're going to see what, what the reaction is over there. I want to quickly go to Jim Sciutto. Jim, the president said to congress, lift that embargo. Congress needs to do so for that embargo to be lifted. Congress will also need to appropriate findings to operate the U.S. embassy in Havana will be to confirm the nomination of the U.S. ambassador to Havana. So there's a significant role that members of the house and senate presumably will play.

SCIUTTO: No question. The president has done just about all he can do at this point with the lifting of travel restrictions, some permits for some economic activity. But, but for the emba - for the embargo, congress has to weigh in. For a permanent ambassador, congress has to weigh in. These are major obstacles going forward. But interesting the president already laying the groundwork for that fight. Placing the Cuba policy firmly in the cold war era. He says, this is a cold war policy.

It hasn't worked. In his tru - in his words, we can't be imprisoned by the past and also trying to counteract the Republican argument that you know, Cuba is still behind on human rights, et cetera, by saying engagement is the best way forward to change those policies. But let's be frank, there's been a lot of engagement with China and Russia, you haven't changed those governments much through engagement in Iran through these two years of nuclear talks. The Iranian regime is no more friendly at home in terms of rights, et cetera. That's going to be a hard argument to make.

BLITZER: We'll see what happens in the weeks and days - weeks and months to come. All right. Jim Sciutto, thanks very much. Elise Labott, thanks to you. Patrick Oppmann in Havana and Alina Machado, in Miami, we'll stay on top of what's going on. Jim Acosta over at the White House. There are other breaking developments we're following here on CNN

right now. Another African-American church in the south up in flames. I want to go right to John Berman and Kate Bolduan who will going to pick up our - they are going to pick up our coverage here on CNN.

JOHN BERMAN, CNN ANCHOR: Thanks. Thanks so much, Wolf. And of course, this church fire comes just two weeks after Charleston. And this new church in South Carolina was once burned down by the KKK. We are now hearing new information on the likely cause this time.

Plus, you can't dump me, I dumped you. Breaking news on Donald Trump, a messy new corporate break-up, losing business as he ga - gains surprising ground in a brand-new poll.

KATE BOLDUAN, CNN ANCHOR: And the two inmates who escaped from prison they made it all the way to a different manhole on a dry run the night before. We're going to speak to a former inmate at Clinton Correctional who knew David Sweat and see what he thinks he's capable of. And a former corrections officer who became an inmate himself. You don't want to miss this.

[11:20:00] (COMMERCIAL BREAK)

BERMAN: Our breaking news. New information about a fire at an historic African-American Church in South Carolina. Senior FBI officials tell CNN that lightning may have been the cause of the fire at the Mt. Zion Ame church.

BOLDUAN: A CNN weather analysis shows that there were four lightning strikes in the immediate vicinity of the church last night. This marks the sixth Black church to go up in flames in recent weeks since that Charleston shooting. Victor Blackwell is on the ground in South Carolina for us with much more. What's the very latest, Victor?

VICTOR BLACKWELL, CNN CORRESPONDENT: Kate, we know that as investigators are here on the scene trying to figure out exactly the cause of this, and as you said, sources say that it was likely weather related, the pastor has now arrived. And just a moment ago, he was hugging individual members of his, his congregation who came here in tears for some type of comfort. Let me get out of the way and show you the scene here. This is Mt. Zion Ame. Just the brick shell and the cross is left. The fire that started about 8:30 last night, completely gutted this building.

And what we've seen throughout the morning, as investigators at this state level, ATF at the federal level, even we know the FBI will be part of this investigation, pulling pieces out to determine exactly where and how this fire started and we know from the, the pastor, regardless of whether this was started by lightning or lighter fluid was involved, they will rebuild and there will be service on Sunday. They are not going to get ahead of the investigators, we're told. The pastor is not making any comments at this point. He wants the federal investigators, the state investigators to be able to do their job before he speaks about what happened here at Mt. Zion Ame.

BERMAN: So Victor, obviously senior FBI officials tell CNN they believe lightning may have been the cause. That seems to be the best analysis right now. However, the concern here is obviously, not just one of now six African-American churches to go up in flames, a couple suspected of arson in the last couple of weeks, but this very church you're standing in front of was once burned down by the KKK.

[11:25:00] BLACKWELL: Yes. 20 years ago, 1995, it was June of that year in which two members of the Ku Klux Klan burned down the original Mt. Zion Ame, about a mile and a half or two miles up the road of the old building, they pleaded guilty and they were sentenced to time in prison. It was 1996 when then President Bill Clinton came back and rededicated this building behind us. And this church then, the congregation then rebuilt. 62 members, I'm told, by the pastor at this time. They will have to rebuild again. And from all indications, they will.

BERMAN: All right. Victor Blackwell for us in South Carolina, thanks so much.

BOLDUAN: Thanks Victor. Coming up for us, Donald Trump making gains in a new CNN poll but also right now facing some serious problems with his brand at Macy's. The latest to cut ties with Trump over his comments about immigrants from Mexico and other countries. We'll have the details on that coming up next.

(COMMERCIAL BREAK)

BERMAN: All right. This just in to CNN. Politics and money. Hillary Clinton's campaign team says it has raised more than $45 million during their first quarter.

BOLDUAN: CNN's Senior Political Correspondent Brianna Keilar is here with all of the details. So we've got the number. It sounds like a lot, Brianna?

BRIANNA KEILAR, CNN CORRESPONDENT: Yes. It does sound like a lot especially when you put it in this context. President Obama for this fund-raising quarter for this opening quarter, about $41 million. So that just goes to show you that you see Hillary Clinton really putting up a number even bigger than that. This is, we understand a record for the...