The Cuban flag was raised at its embassy in Washington for the first time since 1961, at the same time the United States reopened its embassy in Havana.
The developments symbolise a major step toward America's goal of ending longstanding tensions with Cuba.
In 1961 US president Dwight D. Eisenhower announced that the country had ended diplomatic relations with Cuba a couple of month's before the failed America-backed Bay of pigs invasion of the island. Later that year Cuban leader Fidel Castro announced Cuba was adopting social and aligning with the USSR.
The relationship has improved over recent months with America relaxing travel restrictions and the nation was removed from America's list of state sponsors of terrorism.
Deputy President, John Kerry, commenting on the reopening of the embassies stated, "This milestone does not signify an end to differences that still separate our governments, but it does reflect the reality that the Cold War ended long ago, and that the interests of both countries are better served by engagement than by estrangement, and that we have begun a process of full normalisation that is sure to take time but will also benefit people in both Cuba and the United States."
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