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The United States has removed Cuba from its list of state sponsors of terrorism. The move eliminates a major obstacle toward restoring diplomatic ties. The change allows Cuba to conduct banking in the United States, among other activities.
President
 Barack Obama announced a historic thaw with Cuba in December, but the 
US trade embargo against the country remains, and may only be ended by 
Congress.
The removal has been one of Cuba's key demands, as 
leaders from both countries have repeatedly met to negotiate the details
 of restoring diplomatic relations, including the opening of embassies 
in Washington and Havana.
The action comes as signs of difficulty were seen in recent talks between US and Cuban diplomats.
Last week, diplomats met in Washington, but failed to come to an agreement on opening embassies.
Analysis: Barbara Plett Usher, BBC Washington
The
 decision follows a formal review process but the timing is political. 
Cuba's designation was a holdover from the Cold War when it supported 
leftist guerrilla movements in Latin America. 
In recent years, 
however, the State Department had been regularly challenged to produce 
an "active verb" on Cuba in its annual terrorism report. Some 
congressmen continued to stress that Havana was still harbouring a 
number of US fugitives.
But there was no formal opposition during 
the 45 day notice period, and Cuba's removal from the terrorist 
blacklist is the most potent symbol of détente so far. 
Practically
 however Congress has refused President Obama's request to lift the 
longstanding embargo. So there will be little impact on economic ties 
with America, although crucially Washington's decision to "rehabilitate"
 Cuba does remove barriers to international financing. 
This 
process is technically separate from that of re-establishing diplomatic 
relations but the Cubans linked the two, and an announcement on 
re-opening embassies is now expected in the coming weeks. Only then 
begins the hard work of trying to normalise relations between two 
countries with a complex history and radically different political 
systems and worldviews.  
The
 BBC's State Department Correspondent Barbara Plett Usher says the 
removal will give Cuba greater access to sources of international 
financing that were previously denied.
"The United States has 
significant concerns and disagreements with a wide range of Cuba's 
policies and actions," the State Department said in a statement. But 
those concerns, it said "fall outside the criteria relevant to the 
rescission of a State Sponsor of Terrorism designation".
Mr Obama ordered a review of Cuba's presence on the list as part of his major policy shift announced on 17 December.
The department said that Mr Obama notified the US Congress of his intent to remove Cuba from the list on 14 April.
Lawmakers had 45 days to take issue with his decision - a period that lapsed on Friday.
The
 US government had maintained that Cuba has sheltered members of the 
Basque separatist group ETA and the Farc guerrilla group in Colombia, 
according to a government report.
The Caribbean nation has frequently rejected its presence on the list, describing it as unfounded.
The
 country - which lies 90 miles off the coast of Florida - was on the 
list since 1982. The current list includes Syria, Iran and Sudan.
Stonegate
 Bank of Florida has agreed to allow members of the Cuban government to 
open an account, according to US media reports. 
Source:
BBC News
Photo credit: BBC 
 
 
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