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Concerns over Airborne Pollutants in Tianjin; U.S. Embassy Prespares For Grand Opening; Tianjin Survivor Pulled from Rubble; Japanese Prime Minister Shinzo Abe Apologizes For Country's Aggression During World War II; British Royal Family Accuses Paparazzi Of Dangerous Tactics. Aired 8:00a-9:00a ET

Aired August 14, 2015 - 08:00   ET

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

[08:00:23] KRISTIE LU STOUT, HOST: I'm Kristie Lu Stout in Hong Kong. And welcome to News Stream.

Investigators probe the cause of the massive and deadly blast in China amid worries of chemical pollution. The U.S. Secretary of State is due in

Cuba this hour as the U.S. prepares to reopen its embassy in Havana.

And Japan's prime minister expresses remorse for the country's actions in World War II, but there is no direct mention of the so-called comfort

women sex slaves.

We begin in China where a survivor has been pulled from the rubble two days after massive blasts rocked the city of Tianjin.

Now officials say he is a 19-year-old firefighter.

The death toll from those explosions has no climbed to 56. And more than 700 people are being treated in hospitals.

Authorities say most of the flames have been extinguished, but thousands of people are still spending yet another night in emergency

shelters. A large area devastated by those blasts remains cordoned off. And this video shows just how strong those explosions were.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Whoa. (EXPLETIVE DELETED)

UNIDENTIFIED MALE: Holy (EXPLETIVE DELETED). No (EXPLETIVE DELETED) way. No (inaudible), no. Now, we're dangerous.

Oh my god.

UNIDENTIFIED MALE: Oh, dear.

UNIDENTIFIED FEMALE: Are you filming?

UNIDENTIFIED MALE: Yes, I'm filming.

UNIDENTIIFED FEMALE: No.

(SCREAMING)

(END VIDEO CLIP)

LU STOUT: Absolutely terrifying video there. And he kept on filming.

Now those blasts started in a warehouse that housed hazardous materials. Investigators in China, they're working to determine exactly

which chemicals were stored there. Let's get more now from Will Ripley in Tianjin. And Will, the investigation, are we any closer to finding out the

cause of the blast and also what is that chemical that is still in the air polluting the air in and around Tianjin?

WILL RIPLEY, CNN CORRESPONDENT: Well, Kristie, the problem is that the authorities don't know all of the chemicals that were inside that

warehouse. So they've tested for things like sodium cyanide, which they say is not a danger. Of course, that if it's breathed in would be lethal

immediately.

But there are other agents that they haven't yet tested for. They are telling us though that since the fire has for the most part burned itself

out, the danger from contaminated air, at least for the moment, is being closer to being contained, at least the components that they're testing

for.

But the problem is there are still thousands of people, some of them staying at resettlement centers like this, who are sleeping outside. And

if rain comes, and there has been rain in the forecast, that can actually cause a chemical reaction which would potentially shoot more contaminates

into the air before they even know exactly what they're dealing with.

And the fact that that one firefighter, the 19-year-old, survived that blast is incredible when you take a look at the video of just how horrific

it was.

(BEGIN VIDEOTAPE)

RIPLEY (voice-over): One day after a series of massive explosions destroyed so much of Tianjin, a black cloud continues to hang over the

city, the air thick with a chemical stench. A sea of cars destroyed. Their paint stripped off by the intense heat. Broken glass covers streets and

sidewalks for miles around. And when the wind blows, more glass rains down from apartments and homes.

Today, new images of those amazingly powerful blasts. This cell phone video records the moment of impact, the first blast around 11:30 at night.

Fire officials say hazardous chemicals stored in a warehouse were ignited by fire. The bright flash followed by a tremendous explosion, waking people

across this port city of 13 million.

(EXPLOSION)

(SCREAMING)

RIPLEY: Another explosion followed just seconds later, seven times more powerful, the equivalent of 21 tons of TNT, according it a Chinese

data center. Buildings shook. Windows blown out. (EXPLOSION)

RIPLEY: Blasts felt more than two miles around the epicenter. Some likened it to a nuclear explosion even as mushroom cloud rose over the

blast site.

"The House collapsed. We didn't know what happened," says one survivor.

Surveillance video obtain by ABC News captured the explosions sudden fury. This man buried under a wall of glass.

(SHOUTING)

[08:05:18] RIPLEY: At least 50 people killed. Hospitals said to be overwhelmed by the hundreds injured. More than 1,000 firefighters ran to

the danger at least 17 died and dozens are missing. Emotions are running high.

(SHOUTING)

RIPLEY: I was reporting outside a hospital when a small group of people challenged me, demanding to see my phone. Police arrived, but I was

temporarily forced off the air.

A statement from the environmental group, Greenpeace, expressed what many fear, quote, "We are concerned that certain chemicals will continue to

pose a risk to the residents of Tianjin."

The company that owned the warehouse is in the business of storing dangerous chemicals. The cause of fire is yet to be determined.

(END VIDEOTAPE)

RIPLEY: So the health of all of these thousands of people who are displaced and many of the other people living in this city remains of the

utmost concern. I want you to listen to what some experts who are on the ground, part of a team several hundred strong, of chemical and biological

investigators, here's what they're saying.

(BEGIN VIDEO CLIP)

FENG YINCHANG, ENVIRONMENTAL SCIENTIST (through translator): Overall, the main pollutants in the air methylbenzene, methane, epoxy ethane, VOC,

they've all been gradually decreasing. By yesterday afternoon, they were basically at normal levels.

There's a lot about the situation on the ground that isn't very clear. Exactly what pollutants, what exploded also what there is. We just don't

know.

(END VIDEO CLIP)

RIPLEY: Kristie, one thing that is really heartening to see is how many people have come out here, volunteers, who are literally lining up as

you see here to offer assistance to the thousands of people at 12 different locations who are in emergency shelters right now. You can see these

trucks that have been coming in throughout the day and now into the evening, dropping off supplies like generators and fans. We saw a shipment

of blankets along with food, water, clothing and perhaps most importantly shoes. A lot of people ran out of their homes so quickly because they were

so terrified, Kristie, they weren't wearing anything. They didn't have shoes.

But now, it appears, that at least at this location people are getting what they need in a very organized manner.

LU STOUT: That's great to hear and great to see the volunteers behind you there to help out. And I've also noticed that a number of them are

wearing masks. Many are still concerned about the potential health impact as a result of these chemical blazes.

I want to talk more about the firefighters. We know a young firefighter, he was rescued today, an incredible miraculous story, but

quite a number of firefighters died as they tried to put out these blazes. Was it because of the nature of the fire? Or were they ill-equipped to

handle a disaster like this?

RIPLEY: Well, those are the questions being asked, specifically the initial response, because there are still many firefighters who remain

missing right now. You think of when you saw the video of how strong that explosion was, this 19-year-old who survived for 31 hours with leg

injuries, smoke inhalation and burns, but he's expected to make it through, that is truly incredible. But many of his colleagues, heroes who raced in

to try to put out the initial fire still missing.

And the fire, again, we talked about the combustion with water, when those chemicals are mixed with water.

So, the questions that are being asked, in the initial response, what was used to fight this fire? Did they use foam and sand, which is what

they're using now? Or was there water that somehow came into the mix. That's one of the key questions that they're going to be asking here.

But the firefighters who are now responding, 1,000 of them, they are wearing protective gear, HAZMAT suits and whatnot. And again, as I

mentioned, they brought in 600 tons of sand and they're using foam to get the situation under control trying to keep water was far away from these

volatile compounds as possible, Kristie.

LU STOUT: Yeah, thank you for giving us the update there on how to end this disaster, the investigation. And also a reminder of those

chemical pollutants that are still in the air. So Will, to you and the crew and everyone on the ground there in Tianjin, please take care.

Now in just under about two hours from now, U.S. Secretary of State John Kerry will officially reopen the American embassy in Cuba. And we

will see the U.S. flag hoisted over the outpost for the first time in more than half a century.

It is a potent symbol of restored ties between the two countries.

Now, earlier this morning, workers put the final touches to the seaside diplomatic mission. Now the U.S. embassy reopened last month after

a 54 year hiatus. But today marks the grand opening.

Now the former Cold War enemies agreed last year to closer ties. Cuba reopened its embassy in Washington just last month.

And ahead of today's ceremony, CNN was granted exclusive access to the embassy. Patrick Oppmann gives us a look behind the scenes in the runup to

John Kerry's historic visit.

(BEGIN VIDEOTAPE)

[08:10:00] UNIDENTIFIED MALE: Welcome to the new embassy.

UNIDENTIFIED FEMALE: Thank you.

PATRICK OPPMANN, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): Words that for over a half century, U.S. diplomats in Cuba were unable to

say. Today, Cuba and the U.S. officially restored diplomatic relations, officials at the embassy greeted their colleagues with hugs.

CNN was granted exclusive access to the reopening. Members of the Cuban staff marveled that the Cold War-era hostilities had been overcome.

(on camera): Did you ever think you would work here and see the changes of the last six months.

UNIDENTIFIED MALE: I never thought I would see this in my lifetime.

OPPMANN: The head of the embassy says he and his staff are taking part in history.

JEFFREY DELAURENTE, CHARE D'AFFAIRES, U.S. EMBASSY, CUBA: It is really a privilege to be part of all this, a privilege to be part of an

administration that has made a courageous decision to make this change. And it's also a privilege to be able to lead this mission as it transitions

from an intersection to an embassy.

OPPMANN: That transition is more of a sprint as staff gets everything ready for Secretary of State John Kerry's visit, redoing the long unused

flagpole --

UNIDENTIFIED FEMALE: But they will use a Spanish --

OPPMANN: ...hosting an influx of foreign press and planning for every contingency.

UNIDENTIFIED FEMALE: Now anyone that would want to use the Wi-Fi there --

OPPMANN: A long list of challenges in a country where few things ever seem to go right.

MARTINA POLT, MANAGEMENT OFFICER, U.S. EMBASSY: This is where we keep everything running.

OPPMANN: Management Officer Martina Polt takes us to the basement to look at sign and seal that will go on the entrance to the embassy.

POLT: Pretty cool sign, isn't it? OPPMANN (on camera): What I'm walking next to is something that hasn't been seen in 54 years in Cuba, the

sign for the U.S. embassy in Havana.

(voice-over): She said opening the embassy is the high point of her career.

POLT: This is fantastic. There are so many Foreign Service officers who have waited to be here. I think I would be envied by a lot of people

who say this is the culmination of a lot of work by a lot of people.

OPPMANN: The work will continue into the last moment. Nothing is left to chance. The Marines even practice raising the flag.

But as the big day arrives, American diplomats say, the American embassy in Havana is ready to stop back into the spotlight.

Patrick Oppmann, CNN, Havana.

(END VIDEOTAPE)

LU STOUT: And later this hour, we go live to Havana where we are expecting Secretary Kerry to touch down in the Cuban capital this hour.

And we'll have those live pictures for you right here on News Stream.

Now still to come on the program, Japan's prime minister gives a highly anticipated speech to mark 70 years since the end of World War II,

but was it enough to appease the critics?

And a historic day in U.S.-Cuba relations. A reminder once again. We'll go live to the American embassy in Havana ahead of the flag raising

ceremony there. So keep it here.

(COMMERCIAL BREAK)

LU STOUT: Welcome back. You're watching News Stream. And you're looking at a visual version of all the stories we've got in the show today.

Now we started with more on those horrific and deadly explosions in Tianjin, China. A little bit later, we'll be live in Havana as the U.S.

prepares to reopen an embassy there.

But first, a landmark speech marking the 70th anniversary of the end of World War II. Japan's prime minister acknowledged the country's

aggressive action during the war and apologized for inflicting suffering on its Asian neighbors.

Now Shinzo Abe says Japan must learn from history to ensure a peaceful future.

(BEGIN VIDEO CLIP)

[08:15:18] SHINZO ABE, PRIME MINISTER OF JAPAN: This war had great impact on many, many lives. People want peace to be lengthy and strong.

We want to be the kind of country that helps to expand peace and put an end to war.

(END VIDEO CLP)

LU STOUT: Prime Minister Shinzo Abe there.

But in that address, there was no direct mention of Japan's use of so- called Comfort Women during the war as some were hoping.

Now the Comfort Women were sex slaves for the Japanese army. They came from several Asian nations.

Now for more, Kathy Novak joins me now live from Seoul. And Kathy, Korea's so-called comfort women, they have been waiting for an apology.

They did not get it from Prime Minister Abe today. How is that being received there?

KATHY NOVAK, CNN INTERNATIONAL CORRESPONDENT: Well, in some ways it's not a surprise, Kristie. I don't know if people were truly expecting that

Prime Minister Abe would issue an apology that has not been forthcoming for decades. The issue here in South Korea is that these Comfort Women, these

people who were held as sex slaves for the Japanese military during that time of war, are getting older. That the time is running out as they die

to receive this apology. And people here in South Korea really wanted to hear it.

There is no official reaction yet from President Park or from the government, but we have heard from a spokesman for the ruling party who

said that the statement did not include a direct apology and that the issue of Comfort Women was only mentioned in a very indirect way, if at all.

I think we can show you a little bit of the way that Prime Minister Abe referred to women in his speech here.

(BEGIN VIDEO CLIP)

ABE (through translator): We must never forget that there were women behind the battlefields whose honor and dignity were severely injured. We

must not let our children, grandchildren and even for generations to come who have nothing to do with that war be predestined to apologize. Still,

even so, we Japanese across generations must squarely face the history of the past.

(END VIDEO CLIP)

NOVAK: Now, Kristie, the second part of that excerpt that we heard there was Prime Minister Abe saying that he does want to move on. He's

made this expression of his desire to move foward, for Japan to sort of reclaim its identity. And as you heard there, he said that future

generations should not be made to apologize indefinitely.

But I must say that in China and certainly here in Korea, that is not a feeling that is shared, Kristie.

LU STOUT: Yeah, a lot of anger over that comment from the Japanese prime minister, that children in Japan should not be predestined to

apologize for what happened in World War II. What did South Korea want to hear from the Japanese leader in regards to World War II?

NOVAK: Well, I think what they wanted to hear, Kristie, is for him to make his own personal apology. There were a few talking points that he

really had to hit as far as the South Korean people are concerned, and that is to make sure that he reiterated words from the landmark statement that

was made back in 1995. Those words include the words aggression, colonial rule, apology, deep remorse.

Now Prime Minister Abe did mention all of those words, but he sort of did not take ownership as far as the South Koreans are concerned. He only

referred to apologies and statements that had been made by Japan and by Japanese prime ministers in the past, and referred to the fact that Japan

has made these apologies before.

But what is being said in the early reaction here is that people wanted him to again move forward. Reiterate that apology, make it

personal. And from him -- and of course as we've been discussing, they wanted a more direct reference to Comfort Women and ultimately an apology

for that.

LU STOUT: Kathy Novak reporting live from Seoul. Many thanks indeed for that.

Many young soldiers paid the ultimate sacrifice during World War II. And the family of one American airman shot down over Tokyo got a chance to

visit the place where he died.

As Will Ripley reports, the emotional trip marks the end of one Japanese man's mission of peace.

(BEGIN VIDEOTAPE)

RIPLEY: 70 years ago this would have been impossible. Bill Pitt, American; Mitsuaki Omata (ph), Japanese, traveling together on the same

street where tens of thousands died.

By the spring of 1945, relentless American bombings left much of Tokyo in ruins. Omata was 16 then. Today, the spry 85-year-old takes Pitts to

the exact spot, once a green tea field, now a parking lot, where an American bomber was shot down near his family home.

BILL PITTS, AMERICAN: So, we're here? Right here?

RIPLEY: 11 airman died, including a 21 year old from Illinois, Sergeant Wallace Pitts, Bill's uncle.

PITTS: Oh my gosh.

RIPLEY: As the B-29 burned, Omata's father gathered the crews remains, determined to give the Americans a proper burial.

Why did he do that even though these men were attacking your country?

"Respect. Respect for a fellow human, even the enemy," he says.

His father's dying wish for his son to find the airman's families and give them closure. Omata began a lifelong mission, visiting more than half

a dozen U.S. states in 34 years, inviting each family to come to Japan.

"My mission is finally complete," he says.

70 years later, Pitts and his wife Brenda are the final American family to visit the crash site on the outskirts of Tokyo. His uncles name,

alongside the others on this memorial Omata built in their honor.

BRENDA PITTS, WIFE: Somebody came otu with love to bury the remains of these men. It's amazing.

BILL PITTS: It just surprises me that, you know, that I'm tearing up and I didn't expect that.

RIPLEY: This visit marks the end of a 70 year journey.

BILL PITTS: How many times can I say thank you? Will it ever be enough? I don't know. But I'm trying. Thank you.

RIPLEY: A simple act of compassion during a time of war, bringing these families peace.

Will Ripley, CNN, Tokyo.

(END VIDEOTAPE)

LU STOUT: An incredible story of compassion and healing.

You're watching News Stream. And still to come on the program, workers are putting the finishing touches on the U.S. embassy in Havana.

It is gearing up for the official reopening. It will be happening a short time from now. And we'll give you a live report.

(COMMERCIAL BREAK)

[08:25:45] LU STOUT: Coming to you live from Hong Kong, you're back watching News Stream.

Now the British royal family has expressed concern about the paparazzi trying to photograph Baby Prince George and his sister Princess Charlotte

saying that they are using alarming tactics and are posing a real danger.

Let's bring in Ian Lee from CNN London, and Ian, the letter that was sent out earlier today from Kensington Palace, it's a warning. And it also

goes through some of these aggressive paparazzi tactics.

IAN LEE, CNN INTERNATIONAL CORRESPONDENT: That's right, Kristie.

And if you're reading this letter, going through some of these tactics, one photographer hid in the trunk of a car, drilled a hole and

just staked out a park where the royal family goes and plays and takes time off. And police found him there.

And this has them alarmed, because it just is going to an extreme that they find is very uncomfortable. What they want is their children to grow

up in a relatively normal environment. I mean, how normal can the environment be being British royalty, but they do want to try to have them

grow up in as normal environment as possible.

And also, you remember, Princess Diana, who died in a car crash as a result of the paparazzi chasing her, so they do have this history, this

connection with the paparazzi. And so they're asking the media and they're appealing to the media outlets not to buy these pictures from the

paparazzi, to make it so they can't sell them anywhere.

And when you read the letter, also, there seems to be an appeal to the public as well as to back this, to support them in this initiative. And we

must point out that this isn't something new. We look in the United States for instance. The media has been standoffish when it comes to the

president's two daughters as well.

So, they're asking here in the UK for the similar treatment.

LU STOUT: Yeah, another tactic that was listed in this letter, paparazzi using other children to draw Prince George into view around

playgrounds. I mean, definitely a line has been crossed here.

Ian Lee reporting live from CNN London, thank you so much for that update.

You're watching News Stream. And after the break, we've got a live report from Havana. America's top diplomat, he is due to touch down in the

Cuban capital this hour just ahead of today's historic moment in U.S.-Cuba ties.

(COMMERCIAL BREAK)

[08:30:32] LU STOUT: I'm Kristie Lu Stout in Hong Kong. You're watching News Stream. And these are your world headlines.

Investigators in China are working to determine the exact cause of those massive chemical blasts in Tianjin. Now the death toll from

Wednesday's explosions has risen to 56. More than 700 people are injured, dozens remain in critical condition.

In a speech marking the 70th anniversary of the end of World War II, Japan's prime minister acknowledged the country's aggressive action during

the war and promised a peaceful future.

Now Chinese and South Korean media have criticized the speech, calling it a weak apology.

Now relief for thousands of refugees stuck on the Greek Island of Kos, a cruise ship has arrived to help process them. Now the move comes after

Doctors Without Borders reported hundreds of illegal migrants had been kept in a hot stadium with little food or water as they waited for travel

papers.

Kensington Palace says Prince George has been the target of harassment by the paparazzi. In a letter sent out to media, the palace says the

tactics used to take pictures are increasingly alarming and thanked members of the media that are not publishing unauthorized photos of the 2-year-old

royal.

Now any minute now, we are expecting U.S. Secretary of State John Kerry to land in the Cuban capital. America's top diplomat will be

overseeing the opening ceremony later today. And Michael Shifter, he is the president of the Inter-American Dialogue. It's a policy think tank

based in Washington. And he joins us now with more on this momentous occasion.

Michael, good to see you.

Just how significant is this event, the reopening of the U.S. embassy in Cuba and having John Kerry there at the flag raising ceremony?

MICHAEL SHIFTER, PRESIDENT INTER-AMERICAN DIALOGUE: Good morning.

Well, it's a remarkable moment. It's historic. It's symbolic. The flag went down on January 3, 1961. So it's been a long time that the

United States has not had an embassy in Havana. And of course the fact that the senior diplomat in the United States John Kerry, former

presidential candidate, is going down there to be there for the occasion I think sends a very clear message that beyond symbolism the United States is

very committed to engaging with Cuba, to having a different kind of relationship with Cuba that it's had over the last 54 years.

So, I think it's important. I think the Cuban people will respond very enthusiastically. And of course people in the United States also are

very pleased about this move.

ANDERSON: Now you were in Cuba in December of last year when this major shift in relations was announced. What was the mood like, especially

among ordinary Cubans?

SHIFTER: Well, first of all there was a total surprise. No one expected that this would happen. This was handled very, very well,

discretely both by the U.S. and the Cuban governments. So everybody was taken off guard when this was announced on December 17 of 2014.

The Cuban people reacted with a lot of enthusiasm, a lot of excitement, although at the same time ordinary Cubans were a little bit

more cautious. They haven't seen much change in Cuba over the last 50 years, and why they welcome this move by the United States and applauded

President Obama and President Castro for moving in this direction, they weren't really sure how it would affect their daily lives and how long it

would take.

So, there was excitement, enthusiasm, and joy mixed with some caution.

LU STOUT: Now, Michael, we want to hear more from you in just a moment, so please sit tight. We're going to go straight to Havana to our

correspondent there. Patrick Oppmann, who joins us now.

And Patrick, can you describe the scene around you at this moment as we wait for the U.S. flag to rise once again on the reopened U.S. embassy

there in Havana?

OPPMANN: Absolutely. And the crowd right across the street from the U.S. embassy in Havana. We've to Cubans. We've got Americans. We've got

American flags being flown here by Cubans. I've never seen a scene like this in my years of living here.

This -- you know, you have to think, Kristie, this was the place traditionally over the years for many decades that anti-U.S. protests were

carried out. Fidel Castro would come here and lead anti-imperialists protests. And today we're seeing both Americans and Cubans coming here to

celebrate what's been called a new beginning.

I'm going to bring in one of those Americans right here. This is James from L.A. Squeeze in with me, sir. It's a little bit tight.

Why did you come to Cuba? What's it like being here today as an American.

JAMES: It's amazing. I mean, it's a historic event. And we just were so excited to be here.

We've been here for three weeks. And the Cuban people want this and are just -- it's been amazing. It's been a really great experience.

OPPMANN: And you guys are going to fly home back today you were saying?

JAMES: Yeah, in a few hours we get on a flight. We're going to see Mr. Kerry raise the flag and then we're going to head back out. But we'll

definitely be back. I mean, it's just -- it's such a magical country. And even three weeks, it's just -- you can't even begin to scratch the surface

of everything this place has to offer. It's fantastic.

OPPMANN: Thanks so much. We'll watch the flag up together.

And this is Mary Sol (ph) over here. She's a proud Cuban who came here she said to back the new process between these two countries.

Viva Cuba, no?

UNIDENTIIFIED FEMALE: Viva Cuba.

OPPMANN: And just so much excitement here. Every Cuban that I know has been saying -- telling me for weeks that they were going to come here

today because it was something interesting. It was something new. It was something this country has not ever seen before. 54 years, even though

there was essentially a U.S. embassy here for -- since 1977. They couldn't fly the flag. It was somewhat under the radar, relations were anything but

good. And we're seeing today Cubans, even Cubans who support the government, say that this was long overdue. It's time for the countries to

sit down and talk, work out these very thorny issues that exist between Cuba and the United States. And really begin a new chapter. And for many

people, that new chapter begins this morning.

LU STOUT: This moment long overdue, the restoration of diplomatic ties between the U.S. and Cuba and the symbol of that will be when the

U.S. flag is raised over the U.S. embassy in Havana later today.

There's a lot of excitement on the ground around you there Patrick. Does that excitement also translate into a sense of optimism about what

change could come next for Cuba?

OPPMANN: Absolutely. And you worry sometimes that it's too much optimism. Cuban government officials say that even if tourism increases

from the U.S., even if -- of course, there's still a U.S. economic embargo on Cuba. But there's more openings now to do business, to have exchanges,

but that's not going to cure all this country's problems. This country has a lot of problems. And there are still many, many issues the U.S. and Cuba

don't see eye-to-eye on. And we don't expect that they will in the near future.

But it's the beginning of something new. And people here are -- they have so much hope for because all these years of bad relations, terrible

economy here, and even though people can't really put their finger on what is going to change for them in their lives, they said this had to happen.

This is the beginning of something. And we're just going to see how far this process goes, but they're very excited. And you talk to Cubans about

whether President Obama should come here and they want him to come here and they're certainly going to be welcoming secretary of state here.

Again, the highest level official to come from the United States to Cuba since the revolution took place way back in 1959. No one here has

ever seen anything like it.

LU STOUT: A thrilling moment, and a historic day ahead for Cuba and the United States. We have Patrick Oppmann reporting live for us from

Havana, Michael Shifter providing analysis for us in Washington, D.C. I have to cut to a quick break, but we'll go back to both of them after this

short break. You're watching News Stream.

(COMMERCIAL BREAK)

LU STOUT: Welcome back. Any minute now, we are expecting U.S. Secretary of State John Kerry to land in the Cuban capital. Again,

America's top diplomat will be overseeing the opening ceremony of the U.S. embassy there later today.

Now Michael Shifter is the president of the Inter-American Dialogue, a policy think tank based in Washington. We talked before the break. Thanks

for sticking around to get more analysis from you on this historic occasion.

Just a moment ago, Michael, we were talking to our reporter in Havana. And there is a sense of excitement on the ground and also what he

acknowledges as over-optimism about what change could come next for Cuba after the restoration of diplomatic ties between the U.S. and Cuba.

What are your thoughts on that?

SHIFTER: Well, I think he's exactly right, there is a -- there are very high expectations. One can understand the excitement. The first

secretary of state going to Cuba since 1945 and what that means. But there's also some risk. Cuba -- the Cuban government is pursuing an

economic model, has a political system that remains intact. They clearly want the increased communication and commerce with the United States, but -

- and they want to improve their economy, but they want to keep the economic system they have in place.

And so change is likely to come slowly and gradually. The Cubans want to maintain the balance of improving their economy, perhaps opening up a

little bit, greater access to internet and those kinds of things, but there is a Communist Party that's in control. There is a military that plays an

important role, and they're not interested in becoming a democracy like the United States and like other western democracies.

That's the government that's in place. And they want to stay that way.

So, it's going to be interesting to see what happens. What effect and impact the opening with the United States, the greater engagement with the

United States, this great interest here in investing more in Cuba and in trading more with Cuba. But I think the Cuban government is going to be

very, very cautious, very careful and move slowly.

So, I think it's wise to keep expectations in check.

LU STOUT: OK.

And let's got back to our Patrick Oppmann in Havana.

And Patrick, we were just talking about the impact of what's happening this day, the restoration of diplomatic ties between the U.S. and Cuba.

But Cuba has an economy that is in tatters. So what is the reality here that this diplomatic normalization of this relationship here will somehow

lead to a better economic tomorrow for the nation?

OPPMANN: Oh, very much so. I mean, the economy ever since the fall of the Soviet Union is essentially collapsed and they've tried to find

economic models. And they are still in the process of doing that. So, for the Cuban government, you know, this is a source of income potentially

opening the United States. It's the largest market in the world and for so long it's been closed. And they want to have more economic dealings with

the U.S.

That's going to take time. Only congress can lift the embargo, what Cubans call the blockade. But for the average Cuban -- you know we were

just talking to this American couple who are renting a home from Cubans, so that money goes directly to them. So that's something that we are going to

see more of, more tools and here more visitors from the U.S. and who will directly benefit Cubans by eating in private restaurants, by staying in

private homes. And that's money -- even though they pay taxes. They have to pay something to the Cuban government. That's money that goes into into

people's pockets, because more and more -- some private industry is being allowed by the Cuban government. That's been a big change here.

But more and more you talk to Cubans and they say we realize that even if the embargo were to go, if there's a full opening with the United

States, this country has serious problems. It's transitioning from a very centralized, Communist style economy to something that's more like Vietnam

or China, but still years away from that, Kristie.

So, this is symbolic, but real -- more changes still need to take place.

LU STOUT: Yeah, a very symbolic gesture, but a lot of change is needed there in Cuba. Patrick Oppmann reporting live from Havana. And

earlier, Michael Shifter, president of the Inter-American Dialogue joining us from Washington, D.C. A big thank you to you both.

And that is News Stream. I'm Kristie Lu Stout. But don't go anywhere. World Sport with Amanda Davies is next.

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