The modern seven-story building with the high security fencing at the western end of this open space is the US Interests Section, set up by the Carter administration in the late 1970s.
Facing the office front is Plaza Tribuna Anti-Imperialista (also known as Plaza de la Dignidad), built during the Elián González saga in 2000 to host major protests under the nose of the Americans. The mass of flagpoles were put up by the Cubans to block out an electronic message board mounted on the Interests Section that flashed up messages, or propaganda, depending on which side you're on (yawn!).
With Cuba and the US due to restore diplomatic relations, it is likely that the building will have become a full-blown US embassy by the time you read this.