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FIFA Announces New Reforms with Presidential Election To Be Held February 26th; Terrorist Blast Near Kobani Kills 28; U.S. Defense Secretary in Israel; U.N. Security Council Approves Iran Nuclear Deal; U.S. and Cuba Restore Diplomatic Ties; Pro Surfer Relives Terrifying Shark Encounter; Cuba Marks Reopening of Embassy in Washington. Aired 10-11 ET

Aired July 20, 2015 - 10:00   ET

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

[10:00:00]

SEPP BLATTER, FIFA HEAD: We can go forward also in fair play. Fair play means respect and discipline. I know that football is attacking game that

is completing. But do any completing, we shall use the weapons that will give what this game is giving, what is giving this game to the world,

emotion, hope and peace.

This is the world of football, emotion, hope and peace. Because this world of football has entered interests which have nothing to do with the game

and I repeat what I have said. As long as you are on the field of play, you have the boundaries of the field. You have the time limit and you have

the referees. But when out of the field of play, you don't have boundaries, you don't have referees. You don't have time limit.

And here we are. Football emotion, football passion, and football hope. Thank you for coming here today and I wish you well, as I wish well to our

organization. Thank you for your interest.

ISHA SESAY, CNN HOST: All right.

Outgoing FIFA president Sepp Blatter, addressing the assembled media there in Zurich, Switzerland. A very interesting press conference, to say the

very least. You heard the final remarks from Sepp Blatter there, talking about football as a beautiful game, a game of respect and fair play, though

there are many around the world who look at this time that FIFA is going through and say that this is a time that FIFA has failed to live up to the

highest standards of the game and high standards of discipline as we all watch these investigations underway, both in Switzerland and here in the

United States, investigating corruption and money laundering into the governing body.

It was a press conference in which the outgoing president was faced with a number of tough direct questions. He was bullish in his response, talking

about his desire to stay on as FIFA president through February of next year, when a new president will be elected, saying in that time, he will

enforce, oversee much needed reforms to FIFA.

As I say, a very bullish Sepp Blatter, which might surprise some, given the fact he's been under fire for several weeks now. It was also a press

conference that was briefly interrupted when a British comedian threw a handful of fake money at Sepp Blatter, a moment which caused some tension,

some nervousness, as you say there, as he pushes back.

It interrupted proceedings. He walked off for a time. But then he did return and the press conference got underway. It was just a handful of

fake money that was thrown at Mr. Blatter. We understand by actually a British comedian. He was unhurt. He walked offstage. The stage was

cleared up and he came back.

Let's bring in CNN's Amanda Davies, who is in Zurich with details of the press conference. She was listening closely.

Amanda, as I listen to it, it was a very bullish Sepp Blatter facing some very tough direct questions.

AMANDA DAVIES, CNN CORRESPONDENT: Absolutely. He was always going to face those tough questions, wasn't he the first time he's fronted up to the

media en masse like this since that dramatic press conference, where he announced his decision to lay down his mandate, as he put it, on June the

2nd.

It wasn't the tone that maybe he'd have wanted to get this news conference underway with, with that intrusion from the comedian, Lee Nelson, as you

suggested. Sepp Blatter very much wanted to talk about this as an important press conference, as he put it, an important day for FIFA, not

only announcing that the date for the extraordinary congress, where his successor will be appointed will be February the 26th but also announcing

that decisions have been taken in terms of the reform process, in terms of moving FIFA forward.

For many people, that's actually the most important part of today's extraordinary executive committee meeting and it was being announced that

what Domenico Scala, the head of the audit and compliance committee has put forward, was largely and broadly given a thumbs up by the executive

committee members. That wasn't guaranteed by any means. But there's quite a positive mood in terms of the reform camp, the eight proposals that they

were putting forward were broadly given the thumbs up. There is immediately going to be set up this 11-person task force headed up by an

independent person. That person does have to be decided upon as things stand at the moment.

[10:05:00]

DAVIES: But there were -- will not be delays until that congress. Their work begins right now. They will present their initial findings in about

seven weeks' time at the next -- the ordinary executive committee meeting that is scheduled for September. But aside from that, interesting point

that came out of Sepp Blatter, he absolutely categorically stated once again that he will not be standing in the election in February.

He said, "I cannot be a new candidate because I am an old president." He wouldn't talk about the investigations being carried out by the FBI and the

Swiss because he said he's not able to. He's not in a position to.

Interestingly he said that he would -- well, he didn't single out Michel Platini. Many people talking of Platini as his successor as president.

Interestingly, he didn't single out Platini for support. He refused to give him specifically support, saying that he wishes all candidates well.

And maybe we need to watch out because Sepp Blatter announced that as of February the 27th, the day after he steps aside as FIFA president, he's

decided he wants to become a journalist, not just any journalist. He wants to go back to being a geopolitical journalist.

SESAY: Well, we welcome him into the fold. Come on, Sepp Blatter, join the club.

Amanda Davies, joining us there from Zurich, Switzerland, appreciate it. Thank you, Amanda.

Now Turkey says a blast near its border with Syria has killed or wounded dozens of civilians. It struck a rally for the nearby Syrian city of

Kobani after its hard-fought battle with ISIS. Our Nick Paton Walsh is following developments now from Amman, Jordan.

Nick, what more can you tell us about what happened?

NICK PATON WALSH, CNN SENIOR INTERNATIONAL CORRESPONDENT: At this stage, we're hearing from the Turkish president, Recep Tayyip Erdogan, saying his

belief that this is an act of terror, a terror act, sifting out the story on behalf of myself and my nation, condemn those who are responsible for

this atrocity.

Terror doesn't have a nation, race or homeland. At this stage, he's saying the death of 28 individuals, many more injured, a Turkish official is

saying after this border a suicide bomber. Now the attack struck at a park in the center of Suruc, at a cultural center of samara, in which a

gathering had occurred, predominantly Syrian Kurds. And the focus of that meeting was the rebuilding of Kobani, a town devastated by the fight

against ISIS, to push ISIS out of that town.

It is exactly on the border between Syria and Turkey and frankly devastated by the coalition airstrikes used to rout ISIS and the car bomb ISIS used,

too, to try and retain much ground in that particular area.

So a devastating sign here potentially of what mean fear is retaliation by ISIS for a recent crackdown against the (INAUDIBLE) now suggesting that

perhaps the past fortnight did all earlier moves as well to try and push ISIS out of the area in Turkey where they have a presence. Many of the

(INAUDIBLE) is not being strong enough against ISIS in trying to stop them from using Turkish territory to move fighters and materiel into Northern

Syria, where they've established their self-declared caliphate.

Many critics of Turkish policy is that perhaps they're being a little late, they say, in the hope that that would not encourage ISIS to attack targets

in Southern Turkey; it does appear, if it is ISIS behind this, they have not claimed responsibility but I think all fingers are pointing in that

direction.

Now into the nature of the tone of the Turkish comments and the fact that they are talking a suicide bomber, that we are in fact looking at

potentially a worrying new development in terms of (INAUDIBLE) extremism right on its border -- Isha.

SESAY: A very worrying development indeed. Nick Paton Walsh joining us there from Amman, Jordan, Nick, appreciate it. Thank you.

Now U.S. Defense Secretary Ash Carter is in Israel today, less than a week after the U.S. and other world powers reached a nuclear deal with Iran.

He's holding a news conference right now with his Israeli counterpart. Let's go there live.

MOSHE YA'ALON, ISRAEL DEFENSE MINISTER: -- alongside many other issues of great importance.

Our relationship with the United States is a core pillar of Israel's defense. In the name of the people of Israel, in the name of the

government of Israel, and Israel's defense establishment, I would like to thank you for your unique contribution for the security of our country and

to thank the United States of America led by President Barack Obama for being our greatest friend. I hope it -- that you will enjoy the rest of

your visit as a fruitful visit in our country. Thank you.

ASH CARTER, U.S. SECRETARY OF DEFENSE: Thank you, Minister Ya'alon, my friend.

I've been looking forward to this visit. I've been here many times before.

[10:10:00]

CARTER: And we've been planning this trip for quite a while so it's great to be back with our friends in Israel. I want to pay special tribute to

Minister Ya'alon himself as a soldier in the Yom Kippur War, then many years later as the IDF chief of staff and now minister of defense, he's

played an integral role in Israel's security for generations.

As we discussed earlier today, while we were looking over the Israel- Lebanon border, it's also something deeply personal to him. I greatly admire that, not just as a counterpart, but as a friend.

I'm told there's an old Hebrew saying that translates into English as, "Place guards around your city all day and all night." That shouldn't

surprise anyone who knows the many threats surrounding Israel, one of which, Hezbollah, we just saw over the northern border.

These threats are why guards are placed around this country all day and all night, from the soldiers we visited up north to those here at Kirya (ph),

to those serving along all of Israel's borders, like generations before them, they stand watch all day and all night. And has been true for so

long, the closest of allies stand with them, the United States armed forces.

That's why I'm so proud to stand here today with Minister Ya'alon because we've been with you from the beginning of your state and we always will be.

Israel is a cornerstone of our strategy in the Middle East and its security and qualitative military edge are a top priority for America, for our

military and for me personally.

That's especially true when it comes to preventing Iran from obtaining nuclear weapons, which the deal reached in Vienna last week, which is a

good deal, is designed to do. Friends can disagree about whether it will work, and will be watching Iran very closely to see. But there's no

disagreement about the ultimate objective. We cannot let Iran have a nuclear weapon.

And there's no disagreement about the threats Israel sees every day from Iran's destabilizing activities from terrorists, like Hezbollah, Hamas and

ISIL.

That's what I came here to work on with Minister Ya'alon, the problems faced by both our nations and our overall strategy in this region.

Make no mistake: this deal limits Iran, but it places no limits on the United States, the Department of Defense or the U.S.-Israeli defense

relationship. We're moving full speed ahead.

Deterrence remains a major part of our strategy here. We're continuing to bolster the security of our friends and allies in the region, especially

Israel, to help defend them against aggression, ensure freedom of navigation in the Gulf and check Iranian malign influence. And we're

continuing to advance our highly sophisticated military capabilities that, as an insurance policy the president has long stressed, provide all

options, should Iran violate this deal.

Meanwhile, our pledge to defend Israel remains rock solid. And after years of unprecedented efforts to strengthen Israel's security, the U.S.-Israeli

defense relationship has never been stronger and will continue to grow.

Let me be clear about what this means. We will maintain a robust force posture that lets us rapidly surge an overwhelming array of forces for the

United States and all over the world to help defend Israel if needed, leveraging our most advanced ground, naval and air assets, married with

sophisticated munitions that put no target out of reach.

We will maintain our iron-clad commitment to Israel's qualitative military edge, which I've worked on personally and which I know President Obama is

also profoundly committed to, so that Israel can defend itself by itself from any threat.

And we will keep providing advanced capabilities. Next year, Israel will be our first and only friend in the region flying the F-35 stealth fighter.

We will maintain our vital support for Iron Dome, which, last summer, had a 90 percent success rate and saved countless Israeli lives. We will

maintain our contributions to the David's Sling and Arrow systems that will shoot down longer-range rockets and ballistic missiles.

And we will maintain the readiness of our alliance, which we hone through training and exercises together every year.

This is only part of what the United States is doing --

[10:15:00]

CARTER: -- for Israel's security. And as Minister Ya'alon and I discussed in our meeting, if more is needed in the future, then we'll do more.

Going forward, we will ensure that our forces and the unmatched power they bring to bear remain kept at the ready. We will continue standing guard

together all day and all night.

Thank you.

UNIDENTIFIED FEMALE: Thank you, Secretary of Defense. We will start with the questions.

Alon ben David (ph), Channel 10, please.

QUESTION: Thank you.

Mr. Secretary, yesterday, the national security advisor talked about an unprecedented package aid to Israel, following the deal with Iran.

Could you explain to us what does an "unprecedented package" means?

And to the Minister Ya'alon, (speaking Hebrew).

CARTER: Well, we talked today about quite a number of steps to strengthen our mutual security, from missile defense, which I indicated, to

qualitative --

SESAY (voice-over): All right. We are going to break away from that news conference there in Tel Aviv, Israel, there on your screens, U.S. Defense

Secretary Ash Carter standing side by side with his Israeli counterpart, Defense Minister Moshe Ya'alon, Ash Carter very, very keen to stress saying

it, in myriad ways, that the U.S. stands with Israel, that the relationship and defense of Israel remains rock solid, saying that the United States has

been with Israel since the beginning of the state and that alliance endures. It will protect Israel. They will do as much as is needed and

they will bolster the security of Israel there in the region and the security of their allies.

This is very much about reassuring Israel following that agreement reached with Iran in the last couple of days, though that agreement has been

reached, the United States stands by the side of Israel. They also added, Ash Carter, we will maintain robust force posture to defend Israel as

needed. No target is out of reach.

A very, very robust defense of the U.S.-Israeli alliance by the U.S. Defense secretary there in Tel Aviv, where he is meeting with Moshe

Ya'alon, the Israeli defense minister and is scheduled to meet with the Israeli prime minister as well.

Let's bring in Richard Roth, who's been there at the United Nations today, where the Security Council has just voted to begin the process of lifting

sanctions against Iran, some saying that the move is premature because U.S. lawmakers haven't actually approved the nuclear deal.

Richard Roth is our senior U.N. correspondent.

Richard Roth, a very robust defense of the alliance between the U.S. and Israel there in Israel. We just heard from the Defense secretary.

What's happening there at the Security Council?

Walk us through this resolution so our views actually understand what's on the table here and what it means.

RICHARD ROTH, CNN SENIOR U.N. CORRESPONDENT: Yes. Despite that agreement, the Vienna nuclear agreement, this is a day for robust statements, as you

mentioned, and posturing.

Right now Iran's United Nations ambassador is criticizing the very Security Council, which approved, by a 15-0 vote, the beginning of the process to

eliminate many of the sanctions that this same council has imposed on Tehran over the last 10 years. The ambassador denouncing the Security

Council, "baseless," "heresy" regarding Iran's goal in its nuclear program, which Tehran insists was peaceful.

Nevertheless, the Security Council, by a 15-0 vote earlier, endorsed the historic Vienna nuclear deal with Iran and also laid out the framework for

the easing of sanctions. First will be economic; banking sanctions, restrictions beginning in 90 days, then come in five years conventional

arms embargo gets lifted.

Eight years, ballistic missile technology. U.S. Ambassador to the U.N. Samantha Power says now is the time to test Iran regarding the agreement

and diplomacy.

(BEGIN VIDEO CLIP)

SAMANTHA POWER, U.S. AMBASSADOR TO THE U.N.: Ninety days from today when our respective capitals and legislatures have had a chance to carefully

review the deal's provisions, the commitments in the JCPOA should take effect. Sanctions relief will begin only when Iran verifiably completes

the initial steps necessary to bring its nuclear program in line with the deal.

(END VIDEO CLIP)

ROTH: The U.S. ambassador says Washington will continue to scrutinize Iran indeed. The International Atomic Energy Agency will have to assure and

tell the Security Council that Iran is in full compliance with its status under nuclear agreements around the world and only then will the council

move to lift these very significant sanctions that were imposed.

And, Isha, according to U.S. officials, they believe they can reimpose these sanctions very easily --

[10:20:00]

ROTH: -- using a lot of diplomatic maneuvering in this resolution should Iran in any country on the council, if they believe that Iran has violated

the agreement -- Isha.

SESAY: Richard, many are asking the question as to whether the adoption of a new Security Council resolution requires the U.S. to lift sanctions on

Iran.

Help us understand the legality and next steps here.

ROTH: The U.S. said they had to go to the council. That was the general sense. They wanted to give it international legitimacy. The resolution is

legally binding. President Obama has vowed to veto any congressional actions which would oppose this agreement should the U.S. Congress somehow

override the president's veto. No one really knows exactly what will happen. The sense is this resolution will still stand.

SESAY: All right. Senior U.N. correspondent, Richard Roth, joining us there from New York. Richard, always appreciate it. Thank you so much.

The U.S. and Cuban embassies in Havana and Washington are back in operation after being closed for more than five decades. Diplomatic relations were

officially restored at midnight. This is perhaps the biggest example yet of the thaw between the former Cold War enemies.

Our Patrick Oppmann joins us now from outside the U.S. embassy in Havana.

Patrick, a historic day as relations between the U.S. and Cuba begin a new chapter. You're there outside the U.S. embassy in Havana. Set the scene

for us. What's happening?

PATRICK OPPMANN, CNN CORRESPONDENT: Not very much. For the first time in 54 years, this is a U.S. embassy. Up until midnight last night, it was a

U.S. intersection, the only U.S. intersection in the world.

So what's changed days so far? The Cuban government is told that some of the security they had around the building for years, U.S. diplomats would

complain they had such tight security here they would take down everyone's name and numbers, passport numbers, who would come into the building and

that would really discourage many Cubans U.S. diplomatic set from coming into what was then a U.S. intersection and as well as of today the chief of

mission is now the charge d'affaires, at least until President Obama nominates a U.S. ambassador to Havana.

Today, of course, in Washington, D.C., Cuban government is raising their flag there and having a bit of party, 500 guests. Here, not so much, at

least not yet. We have seen a lot of people, many of them media, of course, coming here to see if anything is going to happen just really

savoring the moment, historical moment, these countries have been at each others' throats for so many years, to see this kind of diplomatic

breakthrough is something that many of the employees, the Cuban employees that we talked to, when they were coming to work here this morning, said

they never expected to see so.

A lot of employees at the new U.S. embassy coming to work with a smile on their face, of course, people all coming up to us and asking when is the

flag going to go up. And that's not going to be until next month. It'll be right there. But even though it's an embassy, they don't have to fly

the American flag and they're waiting, of course, on Secretary of State John Kerry's visit next month. He'll be the first secretary of state to

visit Cuba since the Cuban revolution and he will come here to raise the American flag over the American embassy.

SESAY: A historic day. Patrick Oppmann, joining us there, from Havana, Cuba, appreciate it. Thank you.

In just a few minutes the Cuban foreign minister will raise his country's flag at the embassy in Washington. We will take you there live when it

happens.

Incredible escape from the jaws of a shark is now immortalized on video and he's telling CNN about the scary encounter.

(BEGIN VIDEO CLIP)

MICK FANNING, PRO SURFER: You just think whatever gods are out there or whatever, you just say thanks. Thanks for looking out for me.

SESAY (voice-over): We will go live to Jeffreys Bay, South Africa, where Mick Fanning has a whole new legion of fans and surfers actually are back

in the water. Do stay with us.

(MUSIC PLAYING)

(COMMERCIAL BREAK)

(MUSIC PLAYING)

[10:25:28]

SESAY: Hello, everyone.

World champion surfer Mick Fanning is quickly becoming a living legend to his fans after that incredible video, showing him fighting off a shark.

You see there, fighting off a shark during a televised competition.

David McKenzie joins us now from the beach where it happened.

David, when you look at the images, they are dramatic and incredibly frightening pictures. You've been speaking to Mick Fanning.

What's he been saying to you about how this all unfolded?

DAVID MCKENZIE, CNN CORRESPONDENT: Well, Isha, he really got taken by surprise as you can imagine. He said in 30 years surfing, he never

imagined that at 3 o'clock in the afternoon, beautiful sunshine during this tournament here at Jeffreys Bay, as a shark came up from behind him and to

put it in perspective, we believe that it's a young great white shark, probably the size or the length at least of a sedan car, attacking Mick

Fanning, this world beating surfer champion.

And he said that he's been deeply rattled by this attack.

(BEGIN VIDEO CLIP)

FANNING: I felt myself getting dragged under by my leash and then the next thing I know, I saw his fin and went on my board and I guess it smacked me

in the head.

I think I tried to punch it. And then it started dragging me under, dragging me by my leash. And yes, I was like, I don't know what to do.

You never know, you're just lucky. You just thank whatever gods are out there or whatever; you just say thanks.

(END VIDEO CLIP)

MCKENZIE: And Mick was on his way to Australia when we spoke to him but he said that he has to go home and see his mother, who was also watching,

Isha, live on TV. He said he spoke to her and she said she wanted to reach into the TV and haul him up to safety.

It happens the ski -- the surf skis were on the scene very quickly to rescue him. In fact, his good friend and competitor even tried to come to

his aid. It just shows how close the bond is amongst the surfers here.

It has really shaken the community here. But the fact that he managed to escape completely unscathed from this attack of a great white shark, he

says, is more luck than anything else -- Isha.

SESAY: He's a very, very lucky man. David McKenzie joining us there from Jeffreys Bay there in South Africa, David, appreciate it. Thank you so

much. Apologies for some of the audio problems there. Thank you, David.

Now Cuba's in embassy in Washington reopened for business. We're live in the U.S. capital as the two nations take a big step forward in normalizing

relations.

Plus a rare Monday finish at the Open championship. Can Jordan Spieth win a third straight major? We are live from St. Andrews.

(MUSIC PLAYING)

(COMMERCIAL BREAK)

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[10:30:00]

SESAY: This is the INTERNATIONAL DESK, everyone. I'm Isha Sesay. Here are the headlines.

(BEGIN VIDEO CLIP)

SESAY (voice-over): One Turkish official says it was a suicide blast that killed at least 28 people in Southern Turkey. It struck a rally for the

nearby Syrian city of Kobani after its hard-fought battle with ISIS. Turkish president says the attack underscores the need for a global effort

to fight terrorism.

The U.S. military says it's investigating an airstrike that hit an Afghan national army outpost. It happened in the eastern Logar province. The

strike killed eight soldiers and wounded five. A local officials says the army post was clearly marked with an Afghan flag.

Greek banks have finally reopened after a three-week shutdown. It's a sign of increasing stability as Eurozone leaders begin negotiating a new $93

billion bailout for Greece. But withdrawal limits remain in place and the stock market is still closed.

(END VIDEO CLIP)

SESAY: Cuba's flag will soon be raised at the country's newly reopened embassy in the U.S. The Cuban foreign minister is at the embassy in

Washington to mark the occasion. Let's bring in global affairs correspondent, Elise Labott, with more.

Elise, what's happening?

ELISE LABOTT, CNN GLOBAL AFFAIRS CORRESPONDENT: Isha, well, the ceremony, the flag-raising ceremony, should be starting in just moments. Cuban

Foreign Minister Rodriguez behind me, about 500 invited guests and a Cuban delegation of officials, artists, diplomats, veterans of the revolution all

behind me, waiting for this historic moment when the Cubans raise their flag above the U.S. embassy in Havana.

The U.S. embassy will be officially opened but we understand Secretary of State John Kerry, officials tell me, will be traveling on August 14th to

Havana to do a similar ceremony for the U.S. embassy there.

SESAY: We see the crowds assembled there. We are waiting the official flag raising and it is indeed a historic day, historic moment in the

relations between these two countries. Explain to our viewers, though, the significance of the restoration of full diplomatic relations between these

countries, what it really means.

LABOTT: Well, Isha, you're right. It is historic. It's really since 1961 when the U.S. broke off relations with Cuba that these two countries just

miles apart really being enemies for so long.

As you know, in December, secretary -- President Obama and Cuban leader Raul Castro announced that they would formally restore ties when they had

the release of Alan Gross, some other Cubans that were being held in the United States and really a historic sea change in U.S. policy.

President Obama lifted some sanctions that were -- that he had his authority to lift. There will be more liberal transfer of money to the

island. Americans don't need necessarily specific license to travel to Cuba, so more liberal travel for Americans. They could import cigars and

Cuban rum, obviously, very popular. But what it means is that these two countries have for so many years will move towards normalizing relations.

And you can hear the band right behind me --

SESAY: Elise --

(CROSSTALK)

SESAY: -- sorry, Elise, let me interrupt you so we can just take in these pictures and really this moment of history as we await the flag raising.

Let's listen in.

(MUSIC PLAYING)

[10:35:00]

(APPLAUSE)

(MUSIC PLAYING)

(APPLAUSE)

(MUSIC PLAYING)

SESAY (voice-over): And there you have it, the Cuban flag raised there at the new Cuban embassy in the United States in Washington, the first time

that in 54 years, I should make clear, 54 years that we have witnessed such a move and the restoration of full diplomatic ties between the two nations.

Global affairs correspondent Elise Labott is there on the scene in Washington and watching all of this unfold with us.

Elise, it's clearly a joyous moment. We can hear the sounds of joy and excitement. Just set the scene. Describe how it feels, being there on the

ground, and remind our viewers of who has been invited to this ceremony.

LABOTT: Isha, well, it's a historic moment and it's an emotional moment. You can hear the Cuban national anthem is being played, cries by the

Cubans, really this is really a continuation in their way, in their sights, of the revolution, (INAUDIBLE) "Viva Cuba, Viva Cuba."

We talked to Cuban Americans who are here, watching this historic moment, really important for them because they're feeling the ties between their

native homeland and the place that they've called home for many years, America.

Now behind me there's some 500 people. There was a huge Cuban delegation of officials, artists, veterans of the revolution --

[10:40:00]

LABOTT: -- Cuban Americans but also a lot of U.S. officials, members of Congress, really coming together here for the start of a new ties between

the U.S. and Cuba.

Now I must make clear, this is not really normalizing relations between the U.S. and Cuba. There's the restoration of diplomatic ties. The U.S.

embassy in Havana will formally become an embassy; right now it was an intersection. And the same with this building behind me. It was an

intersection. It was just something short of an embassy.

But the process of the U.S. and Cuba normalizing relations, becoming partners and eventually friends, many hope, if you will, that will take a

long time. There are still a lot of mistrust between these two countries, a lot of issues to work out. There's reparations of U.S. property in Cuba.

That means the U.S. wants to be returned. There are several American fugitives being -- seeking shelter in Cuba right now. And the Cubans, for

their part, they want to lift that embargo. That's very important to them.

You can see signs below me, celebrating this moment but also calling for the embargo to be lifted. And then there's the issue of Guantanamo Bay,

the Cubans want it closed and returned to them.

So this is really the start of a process but certainly a very joyous occasion here in Washington -- Isha.

SESAY: But Elise, but as we put all of this in context for our international viewers, it's also worth making very clear to them that this

still does remain a divisive issue here in the United States, not everyone here as part of the U.S. electorate supports this move to restore

diplomatic relations with Cuba and ultimately to normalize ties with the island nation.

LABOTT: That's right. There are some members of Congress, including some presidential candidates, like Marco Rubio, very adamantly opposed to

normalizing relations, to even the restoration of diplomatic ties and lifting that embargo.

But more and more I think you've seen, even in the Cuban American community, particularly in Florida, but elsewhere throughout this country,

yes, there are some of those what they call diehards that are not favoring normalation (sic) of relations or restoring diplomatic ties until the

Castro regime is finished.

But more and more you hear people, even those who were opposed in the past, to say it is a new era; it's a new page. The embargo, as President Obama

said very clearly when he announced this change in policy, the embargo was not working. It was not having the intended effect that the U.S. wanted in

terms of changing the regime's behavior, improving human rights and President Obama said it's time for a new approach as you know when he was

running for election, he said it's time to engage our enemies in the hope that the U.S. can enforge (sic) change that way. And that's what the U.S.

officials feel very clearly, is that they hope that, by engaging the Cuban government, they will be able to have a dialogue on human rights, on some

of these other issues and have more influence that way than the embargo that hasn't working in the last 50 years.

SESAY: Elise, as we carry on this conversation, we are waiting Cuba's foreign minister, his remarks. He should be speaking shortly. You see the

scene there inside the embassy. We are awaiting him, his arrival at the podium. We will, of course, bring those comments to our viewers live when

he does appear. He should be doing that momentarily.

Elise, to continue with you, our conversation, as you mentioned that that trade embargo which has not been lifted as of yet, what are the steps

towards achieving that?

What happens next?

LABOTT: Well, President Obama has said very clearly that he wants to go to Congress and seek a lifting of the embargo. And more and more, when you

talk to members of Congress, especially in the agricultural states, Isha, they're end up favoring, I think, more of a general attitude that it is

time to lift the embargo. It won't be done overnight; some of these measures the president put in place are under his authority, under

executive order. The lifting of that full embargo, where any American can travel to Cuba, where any American can do business with Cuba -- and there

are a lot of American businesses that are eager to get into Cuba and start helping rebuild this country that's been under the embargo for so long.

And the problem is that a lot of these congressmen from these states, where these big companies and agricultural farm states reside, they know that if

the U.S. doesn't get in there right away, they're already losing out to Europeans' companies, European agriculture products.

So the rush is on. I think obviously it's going to be a fierce debate in Congress. I think you'll have a lot of debate and I think even, in some

ways, in the presidential campaigns.

I think more and more there's a general consensus that it's time to lift this embargo.

SESAY: Indeed, you just touched on my next question.

[10:45:00]

SESAY: Do you see this becoming a major issue in the U.S. presidential campaign?

LABOTT: Not a major issue, not a major issue at all. But I think you see people like Marco Rubio, a Cuban American himself, making this a big issue.

And there are some very influential members of Congress also that are against the embargo. I mean, I do think foreign policy in general will be

a bigger issue in the campaign than maybe in previous campaigns with ISIS, with the Iran deal and such.

So Cuba may be incorporated in a part of that. I don't think it's going to become a very controversial issue in this campaign. But I certainly think

it'll be touched upon.

SESAY: Yes. You mentioned that Secretary Kerry will be making his way to Cuba in the coming weeks.

What are our expectations on that business and who he will meet while there?

Do we know yet?

LABOTT: I think it's going to be a very short trip. I don't think you're going to see Secretary Kerry meet with Cuban dissidents, for instance. I

mean, that's obviously a very important question, will he be reaching out to Cuban dissidents, to Cuban opposition? I think the U.S. feels that

there might be time for that. I don't anticipate a very long stay. But certainly he'll go there. He will christen the U.S. embassy. And he will

meet with the foreign minister and other officials, just like today, Foreign Minister Rodriguez will be meeting with Secretary Kerry later

today. He'll be taking his picture in front of that Cuban flag, hanging in the Hall of Flags at the State Department, a very important moment for him

to see his flag being raised along with the other flags that the U.S. has diplomatic relations with.

SESAY: Yes. It is such an historic day, another, some would say, another major coup for the Obama administration.

But place it in context in terms of this administration's legacy, in terms of the achievement of this president.

Where will this rank, this restoration of diplomatic ties and the ultimate goal is of course a normalization of relations between the United States

and Cuba?

LABOTT: Well, I think it'll be a very important part of President Obama's legacy. And this goes to the very heart of what he campaigned on, which is

to engage U.S. enemies. The feeling is that the U.S. does not go into these relationships with rose-colored glasses. But at the same time feels

that you can engage these countries and have more of an influence from the inside than you can from the outside. And we see this with the Iran deal,

another very important piece of President Obama's legacy.

He campaigned on the idea he would engage Cuba. He would engage Iran. He would engage some of these states that the U.S. had no relations with. And

you have seen the first discussion between a U.S. president and an Iranian president in decades, a first meetings between a secretary of state and

Iranian foreign minister in decades. And you're seeing that kind of also play out here.

Obviously Cuba is not seen by and large as a type of threat that Iran is. But the idea that the U.S. can engage its enemies in the hope of changing

its behavior that way, I think, will go down as a very important part of this president's legacy.

And you also saw with Myanmar, also known as Burma, that historic opening to that country in the hopes that that would help counter some of China's

rise as part of the so-called "pivot to Asia."

You saw a U.S. president traveling to Burma, U.S. secretary of state traveling to Burma, Myanmar, for the first time in decades. I think this

all fits into President Obama's legacy of you don't negotiate with your friends. You negotiate with your enemies.

SESAY: Very, very interesting perspective there from Elise Labott.

Elise, do stand by for us. We are still waiting to hear from Cuba's foreign minister, who is there in Washington, D.C., was present at that

flag raising ceremony at the new Cuban embassy in Washington. He has not yet appeared. We will, of course, bring his remarks to you live here on

CNN.

But we are going to take a very, very quick break. Do stay with INTERNATIONAL DESK. We will be right back in a moment.

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[10:51:45]

SESAY: Hello from the INTERNATIONAL DESK, everyone. You are looking at live pictures from Washington, D.C. We are awaiting remarks from Cuba's

foreign minister, Bruno Rodriguez Parrilla, who traveled to Washington, D.C., to mark the reopening of Cuba's embassy in the U.S. capital, the

first time in 54 years that United States and Cuba have reopened embassies in each other's countries, a historic day, a short time ago we saw the

Cuban flag being raised outside the Cuban embassy and now we are waiting to hear from the Cuban foreign minister, Bruno Rodriguez Parrilla, as soon as

he takes the stage. We will, of course, bring his remarks -- bring them, his remarks, live to you here on CNN.

Our CNN global affairs correspondent, Elise Labott, is standing by for us in Washington, D.C., and has been watching today's major historic

developments unfold.

Elise, to bring you in here, it's going to be very interesting to mark or to note how Cuba's foreign minister frames this historic moment and frames

U.S.-Cuban relations.

LABOTT: I think he's going to be very cautious, Isha, to say that this is a first step. This is an opening. But also giving a nod to the people in

Cuba, there are still many people in Cuba, just as there are here in the United States, that are very wary of this opening, that they don't want to

get too close.

Yes, they're restoring diplomatic ties. Yes, they're going to be an embassy. But I don't think there will be anticipation of bosom buddies

between the U.S. and Cuba anytime soon.

And you can hear the Cuban band playing behind us, playing the national anthem once again. Certainly a very historic moment and important for the

Raul Castro regime, this new -- he's not such a new leader but certainly taking over from his brother, Fidel Castro, has embarked on a new direction

for Cuba, some political openings, not as much as the United States would like, but certainly some.

Many political prisoners have been released since he came to office. Some of them in relation to the U.S. deal with Cuba for the restoration of ties.

There have been some economic liberalization, a little bit more free enterprise, a little bit more private businesses. And that is expected to

grow.

And so I think he's going to frame this as the next step in the Cuban revolution, certainly not talking about the U.S. and Cuba being allies,

being partners, but I think emphasizing the similarities that U.S. and Cuba share.

You know, there are a lot of similarities in the culture. The Cuban -- I met with the Cuban ambassador and had a conversation with him the other day

and he said, you know, we like to say that the Cubans imported jazz and we exported Cuban jazz to you. We share a similarity of baseball. There are

a lot of Hispanic speaking -- Spanish speaking Americans here in Cuba and in the United States and a lot of Cuban Americans. And so I think he'll be

emphasizing the cultural ties, the potential bond between these two countries.

[10:55:00]

LABOTT: I don't think he'll be talking very much about the two countries being allies.

SESAY: Yes. It will be very careful rhetoric, the optics here are extremely important. But as you follow these things, do you see areas for

joint cooperation between the U.S. and Cuba going forward beyond obviously issues of mutual interest to do with both countries, broader issues, what

are global issues?

LABOTT: Very much so. I think that there is some -- there have been talking about more in the recent years they've been talking about direct

ties in terms of mail service, postal service, Coast Guard issues. But there is a lot of cooperation on a daily basis between U.S. and Cuba that

most of our viewer don't know about.

There's cooperation, counter narcotics. There's cooperation in terrorism. There's stuff that's happening very quietly behind the scenes. I think

you'll start to see more dialogue, more formal and official and public dialogue between these two countries and there's a lot of potential

cooperation on science, on agriculture, the Cuban medical system is known to be one of the strongest in the Western Hemisphere. And you remember

during the whole Ebola crisis, Secretary Kerry was really giving a boost to the Cuban support for that.

So I think that's more potential areas of cooperation.

SESAY: Yes, yes indeed. And Elise, one last thing, what does this mean for U.S. relations in the region, in the Americas? I mean, surely, this

will be a boost to the U.S. standing.

LABOTT: I think this was one of the thorniest issues in U.S. relations with its allies in the hemisphere, certainly Cuba not being able to take

part in the Organization of American States and Summit of the Americas, was really a sore spot in the relations. And I think this is already helping

U.S. relations with some of the other countries that felt very strongly about it.

SESAY: Yes, indeed.

Elise Labott, it's been great having you with us, as you've been watching all of this unfold, this historic day in relations between the United

States and Cuba, and giving us some much needed perspective and insight into what this all means as we take a look at that Cuban flag, now flying

outside the Cuban embassy in Washington, D.C., a historic day indeed.

We know that the U.S. embassy in Havana, Cuba, is now open. The flag is not flying there yet. We're awaiting a trip from the U.S. Secretary of

State John Kerry. He will be making his way to Cuba in August for that to take place.

But indeed, a historic day, a historic moment as we see the full restoration of diplomatic ties between the United States and Cuba.

That's it for the INTERNATIONAL DESK. I'm Isha Sesay. "CONNECT THE WORLD" with Frederik Pleitgen is up next.

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