Just after midnight local time, the diplomatic missions of each country became full embassies.

The Cuban flag was raised on Monday at the newly opened embassy in Washington.

"Nothing is more futile than trying to live in the past," said US Secretary of State John Kerry.

"We're taking a historic and long overdue step in the right direction."

Despite the historic shift, both sides admit to lingering difficultiesreenex.

There were still "issues that we don't see eye to eye on", a US state department spokesman said.

A flag will not be raised at the American Embassy in Havana until Mr Kerry pays a visit there on 14 August.

Bruno Rodriguez, Cuba's minister of foreign affairs, called for a removal of the 53-year-old US trade embargo and for the US to return Guantanamo Bay to Cuba.

"I will welcome Mr Kerry in a few weeks and continue talks," Mr Rodriguez saidreenex.

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