CMYK Nxxx,2014-12-18,A,001,Bs-BK,E2_+ Late Edition Today, partly sunny, windy, colder, high 44. Tonight, clear, breezy, low 33. Tomorrow, sunshine mixing with some clouds, seasonable, high 42. Weather map is on Page A36. VOL. CLXIV . . . No. 56,719 + $2.50 NEW YORK, THURSDAY, DECEMBER 18, 2014 © 2014 The New York Times U.S. WILL RESTORE FULL RELATIONS WITH CUBA, ERASING A LAST TRACE OF COLD WAR HOSTILITY Fidel Castro in a tank during the 1961 invasion. Refugees in the boatlift. Mr. Castro in 1996. Alan Gross after his release. American Is Freed — Surprise Deal Ends Long Stalemate By PETER BAKER 1960 1961 1962 1980 1982 1996 1998 2009 2014 U.S. imposes an embargo on Cuba. U.S.-backed Cuban exiles launch a failed military invasion of Cuba at the Bay of Pigs. U.S. confronts the Soviet Union over nuclear missiles in Cuba. About 125,000 Cubans flee to Florida in the Mariel boatlift. Congress designates Cuba a state sponsor of terrorism. Economic sanctions are stiffened after Cuba shoots down two U.S. planes. The Clinton administration charges five Cuban agents with acting against the U.S. President Obama loosens restrictions on travel and remittances. Cuba detains Alan Gross, an American contractor accused of crimes against the state. U.S. and Cuba release prisoners from both sides and announce they will restore full relations. THE NEW YORK TIMES; PHOTOGRAPHS BY THE CANADIAN PRESS (FIDEL CASTRO IN 1961 AND 1996), UNITED PRESS INTERNATIONAL (REFUGEES), REUTERS (ALAN GROSS) As Havana Celebrates Historic Shift, Journey in a World of Popes and Spies Economic and Political Hopes Rise Overcame Years of Diplomatic Discord This article is by Damien Cave, Randal C. Archibold and Victoria Burnett. HAVANA — They crowded around old, battered televisions in Havana and erupted in tears and applause at a spectacle they could scarcely imagine, let alone believe: President Raúl Castro, followed by President Obama, heralding a new era of relations between Cuba and the United States. But for Armando Gutiérrez, who operates a small inn in Havana, what it really comes down to is beds. He needs better ones, and the usual scramble to find them and other supplies often comes up empty. Now, Mr. Gutiérrez hopes the salvation of his business is at hand. “It will be step by step for sure, but we are super happy, all of us without words really to express this history,” Mr. Gutiérrez said by phone — a phone he plans to replace with a better one if the United States makes good on its pledge to send more telecommunications equipment. As politically charged as Mr. Obama’s new stance may be in the United States, the sweeping changes he outlined on Wednesday will have a much more profound impact on Cuba — where isolation by the United States has fundamentally shaped the island’s economy, its politics and even its sense of national identity. For decades, the American embargo of Cuba has been the political sword and shield of the Castros, held responsible for stifling their nation’s development, depriving their people of the most basic needs, and justifying their tight control over all aspects of society. Now their powerful rival is promising significant expansions in travel, exports Continued on Page A16 By MARK LANDLER and MICHAEL R. GORDON WASHINGTON — The deal that freed an American jailed in Cuba and ended 53 years of diplomatic estrangement between the United States and Cuba was blessed at the highest levels of the Holy See but cut in the shadowy netherworld of espionage. A personal appeal from Pope Francis, American officials said, was critical in persuading Cuba’s president, Raúl Castro, to agree to a prisoner swap and the freeing of the American aid worker Alan P. Gross. The pope, officials said, acted as a “guarantor” that both sides would live up to the terms of a deal reached in secret. The most tangible breakthrough, however, came almost a year into the talks, when the United States, at loggerheads with Cuba, proposed to swap three Cuban agents jailed in the United States for a Cuban working for American intelligence who had been held in a jail in Cuba for nearly 20 years. By introducing another figure to the talks — the kind of horse-trading that was standard in Cold War spy swaps — the White House was able to sidestep the appearance that it was trading Cuban spies directly for Mr. Gross. Cuba had sought a straight swap but the United States resisted, saying Mr. Gross had been wrongfully imprisoned. All told, the negotiations to free Mr. Gross and reopen ties with Cuba took a year and a half. In nine meetings, held in Canada and the Vatican, a tiny circle of aides to Mr. Castro and President Obama hashed out the gritty details as well as grand questions of history. Looming over their efforts was a Continued on Page A15 WASHINGTON — President Obama on Wednesday ordered the restoration of full diplomatic relations with Cuba and the opening of an embassy in Havana for the first time in more than a half-century as he vowed to “cut loose the shackles of the past” and sweep aside one of the last vestiges of the Cold War. The surprise announcement came at the end of 18 months of secret talks that produced a prisoner swap negotiated with the help of Pope Francis and concluded by a telephone call between Mr. Obama and President Raúl Castro. The historic deal broke an enduring stalemate between two countries divided by just 90 miles of water but oceans of mistrust and hostility dating from the days of Theodore Roosevelt’s charge up San Juan Hill and the nuclear brinkmanship of the Cuban missile crisis. “We will end an outdated approach that for decades has failed to advance our interests, and instead we will begin to normalize relations between our two countries,” Mr. Obama said in a nationally televised statement from the White House. The deal, he added, will “begin a new chapter among the nations of the Americas” and move beyond a “rigid policy that is rooted in events that took place before most of us were born.” In doing so, Mr. Obama ventured into diplomatic territory where the last 10 presidents refused to go, and Republicans, along with a senior Democrat, quickly characterized the rapprochement with the Castro family as appeasement of the hemisphere’s leading dictatorship. Republican lawmakers who will take control of the Senate as well as the House next month made clear they would resist lifting the 54-year-old trade embargo. “This entire policy shift announced today is based on an illusion, on a lie, the lie and the illusion that more commerce Continued on Page A18 OBAMA IN ACTION The president is un- leashed from his past hesitancy. PAGE A18 FIGHT FOR FLORIDA Reshaped political terrain in a battleground state. PAGE A15 BASEBALL ON ALERT The majors could get more of Cuba’s top players. PAGE B13 Cuomo Bans Fracking, Saying U.S. Is Said to Find North Korea Behind Cyberattack on Sony details of how it determined Risks Trump Economic Potential North Korea’s culpability, includBy DAVID E. SANGER and NICOLE PERLROTH By THOMAS KAPLAN Gov. Andrew M. Cuomo’s administration announced on Wednesday that it would ban hydraulic fracturing in New York State because of concerns over health risks, ending years of debate over a method of extracting natural gas. Fracking, as it is known, was heavily promoted as a source of economic revival for depressed communities along New York’s border with Pennsylvania, and Mr. Cuomo had once been poised to embrace it. Instead, the move to ban fracking left him acknowledging that, despite the intense focus he has given to solving deep economic troubles afflicting large areas upstate, the riddle remained largely unsolved. “I’ve never had anyone say to me, ‘I believe fracking is great,’” he said. “Not a single person in those communities. What I get is, ‘I have no alternative but fracking.’” In a double blow to areas that had anticipated a resurgence led by fracking, a state panel on Wednesday backed plans for three new Las Vegas-style casinos, but none along the Pennsylvania border in the Southern Tier region. The panel, whose advice Mr. Cuomo said would quite likely be heeded, backed casino proposals in the Catskills, near Albany and between Syracuse and Rochester. [Page A31.] For Mr. Cuomo, a Democrat, Continued on Page A34 WASHINGTON — American officials have concluded that North Korea was “centrally involved” in the hacking of Sony Pictures computers, even as the studio canceled the release of a far-fetched comedy about the assassination of the North’s leader that is believed to have led to the cyberattack. Senior administration officials, who would not speak on the record about the intelligence findings, said the White House was debating whether to publicly accuse North Korea of what amounts to a cyberterrorism attack. Sony capitulated after the hackers threatened additional attacks, perhaps on theaters themselves, if the movie, “The Interview,” was released. NATIONAL A4, 25-28 Fed Promises to Be Patient Hope for Stroke Patients $57 Million to Whistle-Blower Trauma After Pakistan Killings Pakistan was paralyzed by the horror of a school attack in Peshawar, as reports detailed the Taliban’s methodical apPAGE A6 proach to slaughter. NEW YORK A31-35 Hushing the City’s Cacophony New York officials are considering regulations that would encourage the use of quieter jackhammers. PAGE A31 SPORTSTHURSDAY B13-18 Hockey Comeback in Michigan In an area with deep hockey ties, Michigan Tech’s team is resurgent. PAGE B13 Officials said it was not clear how the White House would respond. Some within the Obama administration argue that the government of Kim Jong-un must BUSINESS DAY B1-12 The Federal Reserve’s chairwoman, Janet L. Yellen, said the central bank still expected to cut interest rates next year, but she said policy makers would PAGE B1 wait for just the right time. INTERNATIONAL A6-24 DAVID GOLDMAN/ASSOCIATED PRESS A RETREAT Sony canceled release of “The Interview.” Page B1. An ex-Countrywide Financial executive helped prosecutors get a record settlement out of Bank of America. PAGE B4 ARTS C1-8 Slum Life in India, Onstage A London stage adaptation of the book “Behind the Beautiful Forevers” explores the desperate lives of the Indian underclasses. A review by Charles IshPAGE C1 erwood. Researchers have found that using a stent, left, to snare and remove a blood clot greatly improves the prognosis for people with the most severe and disabling PAGE A4 strokes. 14 Are Charged In Drug Deaths Among them were two executives of a pharmacy company who face murder charges after tainted medication killed 64 PAGE A25 people. EDITORIAL, OP-ED A38-39 OBITUARIES A37 Last of the ‘Murrow Boys’ Dies Richard C. Hottelet covered D-Day and the Battle of the Bulge and became the last of a team of radio journalists led by Edward R. Murrow. He was 97. PAGE A37 Nicholas Kristof PAGE A39 U(D54G1D)y+,!=!&!=!& be confronted directly. But that raises questions of what actions the administration could credibly threaten, or how much evidence to make public without revealing ing the possible penetration of the North’s computer networks. Other administration officials said a direct confrontation with the North would provide North Korea with the kind of dispute it covets. Japan, where Sony is an iconic corporate name, has argued that a public accusation could interfere with delicate diplomatic negotiations for the return of Japanese citizens kidnapped years ago. The government is “considering a range of options in weighing a potential response,” said Bernadette Meehan, a spokeswoman for the National Security Council. The administration’s sudden urgency came after a new threat was delivered this week to desktop computers at Sony’s offices, warning that if “The Interview” Continued on Page A10
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