SAN JOSÉ, Costa Rica—Cuban President Raúl Castro demanded Wednesday that the U.S. return the base at Guantanamo Bay, lift the half-century trade embargo on Cuba and compensate his country for damages before the two nations re-establish normal relations.

Mr. Castro told a summit of the Community of Latin American and Caribbean States that Cuba and the U.S. are working toward full diplomatic relations but “if these problems aren’t resolved, this diplomatic rapprochement wouldn’t make any sense.”

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