Potentially nasty fight looms over Trump U.S. Supreme Court pick

Supreme Court Building

By Andrew Chung

WASHINGTON (Reuters) – Senate Democrats are gearing up for a potentially ugly fight over Donald Trump’s U.S. Supreme Court pick, with some liberal activists urging them to do everything possible to block any nominee from the Republican president-elect.

Democrats are still seething over the Republican-led Senate’s decision last year to refuse to consider outgoing President Barack Obama’s nomination of appeals court judge Merrick Garland for a lifetime post on the court. The action had little precedent in U.S. history and prompted some Democrats to accuse Republicans of stealing a Supreme Court seat.

Trump last week vowed to announce his appointment within about two weeks of taking office on Friday. He said he would pick from among 20 candidates suggested by conservative legal groups to fill the lingering vacancy caused by the death of conservative Justice Antonin Scalia last Feb. 13.

Scalia’s replacement could tilt the ideological leaning of the court for years to come, restoring the long-standing conservative majority that disappeared with Scalia’s death just at a time when it appeared liberals would get an upper hand on the bench.

Liberal groups are gearing up for a battle, with the People For the American Way calling the judges on Trump’s list of candidates “very extreme.”

“We’re hearing from Senate Democrats and parallel concern among outside groups that this is going to be a major fight,” said Marge Baker, the group’s executive vice president. “We’ll be arguing that Democrats use every means at their disposal to defeat the nominee. This is going to be ‘all hands on deck,’ using all means at our disposal.”

Senate Democratic leader Chuck Schumer has said it is hard for him to imagine Trump picking a nominee who Democrats could support, and said he would “absolutely” fight to keep the seat vacant rather than let the Senate confirm a Trump nominee deemed to be outside the mainstream.

“We are not going to make it easy for them to pick a Supreme Court justice,” Schumer told MSNBC on Jan. 3, adding that if the Republicans “don’t appoint someone who’s really good, we’re going to oppose them tooth and nail.”

Senate Democrats may be in a position to hold up Trump’s selection indefinitely. Senate rules require 60 votes in the 100-seat chamber to overcome a procedural hurdle called a filibuster on Supreme Court nominees. There are 52 Republican senators.

Assuming all 52 back Trump’s nominee, Senate Majority Leader Mitch McConnell either would need to lure eight Democrats to his side or change the rules and ban the filibuster for Supreme Court nominations. Republicans, then in the minority, complained that their rights had been trampled when Senate Democrats in 2013 voted to eliminate the filibuster for executive branch and judicial nominees beyond the Supreme Court.

‘THIS IS A FIGHT’

Baker said liberals cannot hold their fire for fear that Republicans will use this so-called nuclear option, adding, “At some point you don’t game this out. You say, ‘This is a fight.'”

Other liberal groups urged a more conciliatory approach.

“We’re not predisposed to opposition here,” said Kristen Clarke, president of the Lawyers’ Committee for Civil Rights Under Law.

Any nominee will be evaluated, Clarke said, adding that the group is girding for a nominee who is hostile to civil rights.

Trump’s nominee could influence the court on a wide range of issues including abortion, the death penalty, religious rights, presidential powers, gay and transgender rights, federal regulations and others.

Political considerations also hang over the confirmation fight. Democrats and the two independents aligned with them in the Senate will be defending 25 seats in the 2018 elections, while Republicans defend only eight.

Many of those Democratic seats are in Republican-leaning states Trump won in the Nov. 8 election, including West Virginia, Missouri, North Dakota, Indiana, Montana, Michigan and Ohio.

Republicans likely will target these and other Democrats in hopes of coaxing them into backing Trump’s nominee. That means Democratic senators such as West Virginia’s Joe Manchin, Indiana’s Joe Donnelly and Missouri’s Claire McCaskill could face extra pressure not to block Trump’s Supreme Court nominee.

The liberal groups are facing off with well-funded conservative adversaries. The Judicial Crisis Network, for instance, has said it will spend at least $10 million on advertising and grassroots efforts to pressure Senate Democrats to back Trump’s nominee.

Carrie Severino, the group’s chief counsel, said it would be hypocritical for Democrats to block a vote after arguing the Constitution required the Senate to act on Garland.

“A lot of them (Democrats) spent the last nine months saying there is a constitutional duty to have a vote. I’d find it shocking if they would not carry out what they think their duty is,” Severino said.

Nan Aron, president of the liberal Alliance for Justice, said the high level of interest the vacancy has generated among activists, lawyers, students and others makes up for the deep pockets of the other side. “I don’t think we’ll need $10 million given the outcry expressed already,” Aron said.

(Additional reporting by Richard Cowan and Lawrence Hurley; Editing by Will Dunham)

Israel, Palestinians warned against solo steps harmful to peace

World leaders meet in Paris for Israel-Palestine Peace

By John Irish, Lesley Wroughton and Marine Pennetier

PARIS (Reuters) – Some 70 countries reaffirmed on Sunday that only a two-state solution could resolve the Israeli-Palestinian conflict and warned against any unilateral steps by either side that could prejudge negotiations.

The final communique of a one-day international Middle East peace conference in Paris shied away from explicitly criticizing plans by U.S. President-elect Donald Trump to move the U.S Embassy to Jerusalem, although diplomats said the wording sent a “subliminal” message.

Trump has pledged to pursue more pro-Israeli policies and to move the U.S. Embassy from Tel Aviv to Jerusalem, all but enshrining the city as Israel’s capital despite international objections.

Countries including key European and Arab states as well as the permanent members of the U.N. Security Council were in Paris for the conference, which Israeli Prime Minister Benjamin Netanyahu rejected as “futile”.

Neither the Israelis nor the Palestinians were represented.

However, just five days before Trump is sworn in, the meeting was seen as a platform for countries to send a strong signal to the incoming American president that a two-state solution to the conflict could not be compromised on and that unilateral decisions could exacerbate tensions on the ground.

The participants “call on each side … to refrain from unilateral steps that prejudge the outcome of negotiations on final-status issues, including, inter alia, on Jerusalem, borders, security, refugees and which they will not recognize,” the final communique said.

A French diplomatic source said there had been tough negotiations on that paragraph.

“It’s a tortuous and complicated paragraph to pass a subliminal message to the Trump administration,” the diplomat said.

REAFFIRMING RESOLUTION 2334

U.S. Secretary of State John Kerry told reporters it would have been inappropriate to include the issue of moving the U.S. embassy, it being publicly debated in the United States.

Relations between the United States and Israel have soured during President Barack Obama’s administration, reaching a low point late last month when Washington declined to veto U.N. resolution 2334 demanding an end to Israeli settlements in occupied territory.

Paris has said the meeting did not aim to impose anything on Israel or the Palestinians and that only direct negotiations could resolve the conflict.

The final draft did not go into any details other than reaffirming U.N. Security Council resolutions, including 2334. Diplomats said that had been a source of friction in talks.

“When some are questioning this, it’s vital for us to recall the framework of negotiations. That framework is the 1967 borders and the main resolutions of the United Nations,” French Foreign Minister Jean-Marc Ayrault told reporters.

Kerry, who abandoned his efforts to broker peace talks in April 2014, told reporters that the meeting had “moved the ball forward.”

“It underscores this is not just one administration’s point of view, this is shared by the international community broadly,” he said.

France, home to Europe’s largest Muslim and Jewish communities, has tried to breathe new life into the peace process over the past year and argued that it should not play second fiddle to the war in Syria and the fight against Islamic State militants.

FOLLOW-UP MEETING?

The final statement said interested parties would meet again before year-end.

But Netanyahu told a cabinet meeting on Sunday that “this conference is among the last twitches of the world of yesterday … Tomorrow will look different and that tomorrow is very close.”

Britain added its criticism on Sunday. A Foreign Office statement said the Paris conference risked “hardening positions” given Israel had objected to it and that the U.S. administration is about to change.

Prime Minister Theresa May delivered a sharp rebuke on Israel last month to its U.S. ally when she scolded Secretary of State John Kerry for describing the Israeli government as the most right-wing in Israeli history. The criticism aligned her more closely with Trump.

Palestinian Authority President Mahmoud Abbas, who said on Saturday that moving the U.S. Embassy to Jerusalem would kill off the peace process, said the Paris meeting would help at stopping “settlement activities and destroying the two-state solution through dictations and the use of force.”

(Additional reporting Lesley Wroughton in Paris and Jeffrey Heller in Jerusalem; Editing by Tom Heneghan)

Trump’s offer to Russia: an end to sanctions for nuclear arms cut – London Times

Donald Trump speaking at news conference on Russia foreign policy

By Guy Faulconbridge and William James

LONDON (Reuters) – U.S. President-elect Donald Trump will propose offering to end sanctions imposed on Russia over its annexation of Crimea in return for a nuclear arms reduction deal with Moscow, he told The Times of London.

Criticizing previous U.S. foreign policy in an interview published on Monday, he described the U.S.-led invasion of Iraq in 2003 as possibly the gravest error in the history of the United States and akin to “throwing rocks into a beehive”.

But Trump, who will be inaugurated on Friday as the 45th U.S. president, raised the prospect of the first big nuclear arms control agreement with Moscow since the Strategic Arms Reduction Treaty signed by President Barack Obama in 2010.

“They have sanctions on Russia — let’s see if we can make some good deals with Russia,” the Republican president-elect was quoted as saying by The Times.

“For one thing, I think nuclear weapons should be way down and reduced very substantially, that’s part of it. But Russia’s hurting very badly right now because of sanctions, but I think something can happen that a lot of people are gonna benefit.”

The United States and Russia are by far the world’s biggest nuclear powers. The United States has 1,367 nuclear warheads on deployed strategic missiles and bombers, and Russia has 1,796 such deployed warheads, according to the latest published assessment by the U.S. State Department.

Under the 2010 New START treaty, Russia and the United States agreed to limit the number of long-range, strategic nuclear weapons they can deploy.

Trump has said he will seek to improve relations with Moscow despite criticism that he is too eager to make an ally of Russian President Vladimir Putin.

The United States and other Western powers imposed sanctions on Russia in 2014 over its annexation of the Crimea peninsula from Ukraine and its support for pro-Russia separatists in eastern Ukraine.

Asked whether he would trust German Chancellor Angela Merkel or Putin more, Trump said: “Well, I start off trusting both –but let’s see how long that lasts. It may not last long at all.”

His relations with Moscow have faced renewed scrutiny after an unsubstantiated report that Russia had collected compromising information about Trump.

The information was summarized in a U.S. intelligence report which was presented to Trump and Obama this month.

The report concluded Russia tried to sway the outcome of the Nov. 8 election in Trump’s favor by hacking and other means. It did not make an assessment on whether Russia’s attempts affected the election’s outcome.

Trump accused U.S. intelligence agencies of leaking the information from the unverified dossier, which he called “fake news” and phony stuff.” Intelligence leaders denied the charge and Moscow has dismissed the accusations against it.

RUSSIAN RELATIONS

In the interview with The Times, Trump was also critical of Russia’s intervention in Syria’s civil war which, along with the help of Iran, has tilted the conflict in President Bashar al-Assad’s favor.

“I think it’s a very rough thing,” Trump said of Russian intervention in Syria. “Aleppo has been such a terrible humanitarian situation.”

The war has killed more than 300,000 people, created the world’s worst refugee crisis and aided the rise of the Islamic State militant group.

On NATO, Trump repeated his view that the military alliance was obsolete but said it was still very important for him.

“I took such heat, when I said NATO was obsolete,” Trump told The Times, referring to comments he made during his presidential election campaign. “It’s obsolete because it wasn’t taking care of terror. I took a lot of heat for two days. And then they started saying Trump is right.”

Trump said many NATO member states were not paying their fair share for U.S. protection.

“A lot of these countries aren’t paying what they’re supposed to be paying, which I think is very unfair to the United States,” Trump said. “With that being said, NATO is very important to me. There’s five countries that are paying what they’re supposed to. Five. It’s not much.”

Trump said he would appoint his son-in-law, Jared Kushner, to try to broker a Middle East peace deal, urged Britain to veto any new U.N. Security Council resolution critical of Israel and criticized Obama’s handling of the deal between Iran and six world powers including the United States which curbed Tehran’s nuclear program.

On Britain’s vote to leave the European Union, Trump said: “Brexit is going to end up being a great thing” and said he was eager to get a trade deal done with the United Kingdom.

(Editing by Peter Cooney and Timothy Heritage)

Trump vows ‘insurance for everybody’ in replacing Obamacare

Donald Trump at conference disucssing Obamacare

WASHINGTON (Reuters) – U.S. President-elect Donald Trump aims to replace Obamacare with a plan that would envisage “insurance for everybody,” he said in an interview with the Washington Post published on Sunday night.

Trump did not give the newspaper specifics about his proposals to replace Democratic President Barack Obama’s signature health insurance law, but said the plan was nearly finished and he was ready to unveil it alongside the leaders of the Republican-controlled Congress. The Republican president-elect takes office on Friday.

“It’s very much formulated down to the final strokes. We haven’t put it in quite yet but we’re going to be doing it soon,” Trump told the Post, adding he was waiting for his nominee for health and human services secretary, Tom Price, to be confirmed.

The plan, he said, would include “lower numbers, much lower deductibles,” without elaborating.

“We’re going to have insurance for everybody,” Trump said. “There was a philosophy in some circles that if you can’t pay for it, you don’t get it. That’s not going to happen with us.”

Trump was also quoted as saying in the interview that he would target pharmaceutical companies over drug pricing and insist they negotiate directly with the Medicare and Medicaid government health plans for the elderly and poor.

U.S. House Republicans won passage on Friday of a measure starting the process of dismantling the Affordable Care Act, popularly known as Obamacare, despite concerns about not having a ready replacement and the potential financial cost of repealing the law.

With the vote, Republicans began delivering on their promise to end Obamacare, also a campaign pledge of Trump, who has called the program a “disaster.”

The law, which expanded health coverage to some 20 million people, has been plagued by increases in insurance premiums and deductibles and by some large insurers leaving the system.

Republicans have called Obamacare federal government overreach and have sought to undermine it in Congress and the courts since it was passed by Democratic majorities in the House and Senate in 2010.

Democrats say Obamacare has allowed growing numbers of Americans to get medical insurance and helped slow the rise in healthcare spending.

(Writing by Mary Milliken; Editing by Will Dunham and Peter Cooney)

China will ‘take off the gloves’ if Trump continues on Taiwan, state media warns

Donald Trump at news conference discussing Taiwan relations

By Christian Shepherd

BEIJING (Reuters) – China will “take off the gloves” and take strong action if U.S. President-elect Donald Trump continues to provoke Beijing over Taiwan once he assumes office, two leading state-run newspapers said on Monday.

In an interview with the Wall Street Journal published on Friday, Trump said the “One China” policy was up for negotiation. China’s foreign ministry, in response, said “One China” was the foundation of China-U.S. ties and was non-negotiable.

Trump broke with decades of precedent last month by taking a congratulatory telephone call from Taiwan President Tsai Ing-wen, angering Beijing which sees Taiwan as part of China.

“If Trump is determined to use this gambit in taking office, a period of fierce, damaging interactions will be unavoidable, as Beijing will have no choice but to take off the gloves,” the English-language China Daily said.

The Global Times, an influential state-run tabloid, echoed the China Daily, saying Beijing would take “strong countermeasures” against Trump’s attempt to “impair” the “One China” principle.

“The Chinese mainland will be prompted to speed up Taiwan reunification and mercilessly combat those who advocate Taiwan’s independence,” the paper said in an editorial.

Chinese Foreign Ministry spokeswoman Hua Chunying said the United States was clearly aware of China’s position on “One China”.

“Any person should understand that in this world there are certain things that cannot be traded or bought and sold,” she told a daily news briefing.

“The One China principle is the precondition and political basis for any country having relations with China.”

Hua added, “If anyone attempts to damage the One China principle or if they are under the illusion they can use this as a bargaining chip, they will be opposed by the Chinese government and people.

“In the end it will be like lifting a rock to drop it on one’s own feet,” she said, without elaborating.

TAIWAN MAY BE “SACRIFICED”

The Global Times said Trump’s endorsement of Taiwan was merely a ploy to further his administration’s short term interests, adding: “Taiwan may be sacrificed as a result of this despicable strategy.”

“If you do not beat them until they are bloody and bruised, then they will not retreat,” Yang Yizhou, deputy head of China’s government-run All-China Federation of Taiwan Compatriots, told an academic meeting on cross-straits relations in Beijing on Saturday.

Taiwan independence must “pay a cost” for every step forward taken, “we must use bloodstained facts to show them that the road is blocked,” Yang said, according to a Monday report on the meeting by the official People’s Daily Overseas Edition.

The United States, which switched diplomatic recognition from Taipei to Beijing in 1979, has acknowledged the Chinese position that there is only “One China” and that Taiwan is part of it.

The China Daily said Beijing’s relatively measured response to Trump’s comments in the Wall Street Journal “can only come from a genuine, sincere wish that the less-than-desirable, yet by-and-large manageable, big picture of China-U.S. relations will not be derailed before Trump even enters office”.

But China should not count on the assumption that Trump’s Taiwan moves are “a pre-inauguration bluff, and instead be prepared for him to continue backing his bet”.

“It may be costly. But it will prove a worthy price to pay to make the next U.S. president aware of the special sensitivity, and serious consequences of his Taiwan game,” said the national daily.

(Additional reporting by Ben Blanchard and John Ruwitch; Editing by Michael Perry and Randy Fabi)

Trade tensions, dollar danger cloud economic optimism in Davos

Axel A Weber, economy expert

By Noah Barkin

DAVOS, Switzerland (Reuters) – A trade war between the United States and China and a strengthening dollar are among the biggest threats to a brightening global economic outlook, according to leading economists at the World Economic Forum in Davos.

As political leaders, businessmen and bankers converge on the resort in the Swiss Alps this week, they can draw hope from a more benign economic picture and a rally in global stock markets on expectations of major stimulus under a new U.S. administration led by Donald Trump.

The backdrop is brighter than it was a year ago, when concerns about a rapid economic slowdown in China led to what Credit Suisse CEO Tidjane Thiam described at the time as “the worst start to any year on record in financial markets ever”.

“I am more optimistic than last year. If no major political or geopolitical uncertainties materialize and derail the world economy, it might even surprise to the upside in 2017,” Axel Weber, the chairman of Swiss bank UBS <UBSG.S> and a former president of the German Bundesbank, told Reuters.

Still, there are big storm clouds on the horizon.

“It is too early to give the all clear,” Weber continued. “This cyclical upswing hides but does not solve the world’s underlying structural problems, which are excessive debt, over-reliance on monetary policy, and adverse demographic developments.”

Among the biggest concerns for 2017 cited by the half dozen economists interviewed by Reuters was the threat of a U.S.-China trade war, and broader economic tensions, triggered by what they fear could be a more confrontational Trump administration.

Trump is threatening to brand China a currency manipulator and impose heavy tariffs on imports of Chinese goods. Last month he named leading China critic Peter Navarro, author of the book “Death by China”, as a top trade adviser.

“This is the key uncertainty because you don’t know how much the rhetoric is a ploy to get better deals,” said Raghuram Rajan, an economist at the University of Chicago who stepped down as governor of India’s central bank last September.

“I’m worried about the people he is surrounding himself with. If they have a more protectionist world view and believe the reason the U.S. is not doing well is because others are cheating that creates a certain kind of rhetoric that could end up very badly for the world.”

CURRENCY RISKS

Last month, the U.S. Federal Reserve hiked interest rates for just the second time in a decade, a sign that the lengthy period of ultra-loose monetary policy that followed the global financial crisis may be coming to an end.

The World Bank said last week that it expects global growth to accelerate to 2.7 percent this year, up from a post-crisis low of 2.3 percent in 2016, on the back of a pickup in U.S. growth and a recovery in emerging markets fueled by a rise in commodity prices.

A year ago in Davos, both Rajan and Weber warned about the limits of loose monetary policy. But now that the Fed is in tightening mode, a new set of risks has emerged.

One is a further strengthening of the dollar, which is already hovering near 14-year highs against the euro.

A further appreciation could widen the U.S. trade deficit, increasing pressure on Trump to resort to protectionist policies. It could also expose weaknesses in the balance sheets of borrowers outside the United States who have borrowed in dollars but hold domestic currency assets.

In Europe, by contrast, a stronger dollar could add fuel to a solid if unspectacular economic recovery, allowing the European Central Bank to plot an end to its own easy money policies including the bond-buying, or quantitative easing (QE), program it recently extended through to the end of 2017.

While welcome, this would also come with risks, particularly for the peripheral euro zone countries that have come to depend on QE to keep a lid on their borrowing costs.

“Just when you think the euro zone is stable it might turn out not to be,” said Kenneth Rogoff of Harvard University, a former chief economist at the International Monetary Fund (IMF).

“If U.S. interest rates continue to rise and the dollar appreciates against the euro it’s going to start getting very hard for (ECB President) Mario Draghi to tell the story that he’s doing QE to prop up inflation. If he ever slows down on QE, the vulnerabilities of the periphery countries are huge.”

EUROPEAN BANKS

Rajan and Richard Baldwin of the Graduate Institute in Geneva said they viewed European banks as another big risk for the global outlook. Italy agreed last month to inject about 6.6 billion euros into Monte dei Paschi di Siena <BMPS.MI>, but the weakness of other Italian banks and German institutions, including Deutsche Bank <DBKGn.DE>, remain a concern.

However the biggest threat may be political. Were French far-right leader Marine Le Pen, who favors a Brexit-style referendum on France’s EU membership, to deliver a Trump-like surprise in the two-round French election in April and May, doubts about the future of the EU and euro zone will increase.

The chances of that seem slim for now. A poll last week suggested conservative candidate Francois Fillon would beat Le Pen in a runoff by a 63 to 37 percent margin. But after two seismic political shocks in 2016 – Trump and Brexit – no one is counting her out.

“Political surprises may fundamentally alter the currently favorable economic and financial outlook for 2017,” said Weber.

(Reporting by Noah Barkin; Editing by Pravin Char)

U.S. in deal to reform Baltimore police after Freddie Gray death

mural of late Freddie Gray in Baltimore

By Donna Owens

BALTIMORE (Reuters) – The city of Baltimore will enact a series of police reforms including changes in how officers use force and transport prisoners under an agreement with the U.S. Justice Department filed in federal court on Thursday.

The agreement comes almost two years after the death of a black man, Freddie Gray, of injuries sustained while in police custody sparked a day of rioting and arson in the majority-black city. It also led to an investigation that found the city’s police routinely violated residents’ civil rights.

Outgoing U.S. Attorney General Loretta Lynch said the deal, which is subject to a judge’s approval, would be binding even after President-elect Donald Trump is sworn in on Jan. 20.

“The reforms in this consent decree will help ensure effective and constitutional policing, restore the community’s trust in law enforcement, and advance public and officer safety,” Lynch told reporters, flanked by recently elected Mayor Catherine Pugh.

The 227-page consent decree agreement is the result of months of negotiations after a federal report released in August found that the city’s 2,600-member police department routinely violated black residents’ civil rights with strip searches, by excessively using force and other means.

The probe followed the April 2015 death of Gray, 25, who died of injuries sustained in the back of a police van. His was one of a series of high-profile deaths in U.S. cities from Ferguson, Missouri, to North Charleston, South Carolina, that sparked an intense debate about race and justice and fueled the rise of the Black Lives Matter movement.

The Department of Justice is scheduled to release the findings of its investigation into the Chicago Police Department on Friday in the Midwest city, local media reported. In Philadelphia on Friday, a report on reform efforts by the Philadelphia Police Department will be released, according to a statement from the Department of Justice.

Prosecutors brought charges against six officers involved in Gray’s arrest but secured no convictions.

William Murphy Jr., an attorney who represented the Gray family in a civil suit against the city that led to a $6 million settlement, praised the deal.

“Make no mistake, today is a revolution in policing in Baltimore,” Murphy said.

The head of city’s police union was warier, saying his group had not been a part of the negotiations.

“Neither our rank and file members who will be the most affected, nor our attorneys, have had a chance to read the final product,” Gene Ryan, president of the Baltimore Fraternal Order of Police, said in a statement.

City officials said union officials had been involved in talks early on but stopped attending meetings.

(Additional reporting by Timothy McLaughlin in Chicago. Editing by Tom Brown and Andrew Hay)

New North Dakota governor expects controversial pipeline to be built

man holds American flag at Dakota Access Pipeline protest

By Ernest Scheyder

(Reuters) – North Dakota Governor Doug Burgum, who took office last month in the height of tensions surrounding the Dakota Access Pipeline, said he believed the line would eventually be built and asked opponents to clean their protest camp before spring floodwaters create a potential ecological disaster.

A centrist Republican with no prior political experience, Burgum was elected in a landslide on a platform of streamlining government and improving relations across the state. Burgum built a successful software business before selling it to Microsoft Corp <MSFT.O> in 2001.

Burgum told Reuters that approval of the pipeline appeared to be a foregone conclusion once Donald Trump moved into the White House.

“I expect the world’s going to change dramatically on that day relative to finding resolution on this issue,” Burgum said in an interview. “I would expect that (Energy Transfer Partners <ETP.N>) will get its easement and it will go through.”

A coalition of Native American groups, environmentalists, Hollywood stars and veterans of the U.S. armed forces protested the $3.8 billion oil project at a North Dakota camp, which at one point held more than 5,000, though that number has shrunk in size during the winter.

Opponents contend construction would damage sacred lands and any leaks could pollute the water supply of the Standing Rock Sioux tribe.

Last month, President Barack Obama denied a key permit needed to complete the pipeline, but Trump has said he will review that decision.

Local law enforcement have voiced concerns that any reversal by the federal government could cause the area to swell again with protesters, straining resources.

David Archambault, chairman of the Standing Rock Sioux tribe, has repeatedly asked protesters to leave the area and let the pipeline fight play out in courts.

Burgum said he agrees with Archambault and asked protesters to help clean up the camp before it threatens the environment itself. More than 300 vehicles, along with dozens of temporary dwellings and other detritus, have been abandoned at the campsite, which sits in a flood plain that is likely to be overrun by spring rain and snowmelt.

State officials are concerned that floodwaters could carry that material away.

“The amount of cleanup that needs to take place is enormous,” Burgum said. “We’ve got a potential ecological disaster if this land floods and all the debris flows downstream into tribal lands.”

(Reporting by Ernest Scheyder; Editing by Andrew Hay)

China rejects U.S. trade claims, says outlook challenging, complicated

employees stand next to container ship, holding U.S. trade goods

BEIJING (Reuters) – China’s commerce ministry said on Thursday it will “try all methods” to stabilize trade in what it sees as a challenging and complicated trade outlook this year.

Commerce Ministry spokesman Sun Jiwen told a regular briefing in Beijing that China faced weak foreign demand and “intensifying trade protectionism.”

Sun’s comments came as China faces threats from incoming U.S. President Donald Trump to impose heavy import taxes on Chinese goods entering the United States, China’s largest trade partner.

The Commerce Ministry spokesman dismissed the U.S.-China Economic and Security Review Commission’s November 2016 Report to Congress, which accused China of violating global trade rules.

The report said: “China continues to violate the spirit and the letter of its international obligations by pursuing import substitution policies, imposing forced technology transfers, engaging in cyber-enabled theft of intellectual property, and obstructing the free flow of information and commerce.”

Sun insisted China had strictly adhered to World Trade Organization rules.

“The report’s understanding of problems in China-U.S. trade and investment, and the reasons behind it, are different from China’s. China can’t accept it,” Sun said.

“We hope for equal dialogues and cooperation to resolve conflicts.”

(Reporting by Yawen Chen and Michael Martina; Editing by Eric Meijer)

Trump’s CIA nominee includes Russia in list of global challenges

guy to be head of CIA under Trump

By David Alexander and Jonathan Landay

WASHINGTON (Reuters) – U.S. President-elect Donald Trump’s nominee to head the CIA portrayed multiple challenges facing the United States on Thursday, from an aggressive Russia to a “disruptive” Iran to a China that he said is creating “real tensions.”

Diverging from Trump’s stated aim of seeking closer ties with Russia, Pompeo said that Russia is “asserting itself aggressively” by invading and occupying Ukraine, threatening Europe, and “doing nearly nothing” to destroy Islamic State.

Mike Pompeo, a Republican member of the House of Representatives and a former U.S. Army officer, was speaking at the start of his confirmation hearing in the U.S. Senate.

In his prepared opening statement, Pompeo noted that the CIA does not make policy on any country, adding, “it is a policy decision as to what to do with Russia, but it will be essential that the Agency provide policymakers with accurate intelligence and clear-eyed analysis of Russian activities.”

His testimony came at a time when Trump, a Republican who takes office on Jan. 20, has openly feuded with U.S. intelligence agencies.

For weeks, the president-elect questioned the intelligence agencies’ conclusion that Russia used hacking and other tactics to try to tilt the 2016 presidential election in his favor. Trump said on Wednesday that Russia was behind the hacking but that other countries were hacking the United States as well.

This week, Trump furiously denounced intelligence officials for what he said were leaks to the media by intelligence agencies of a dossier that makes unverified, salacious allegations about his contacts in Russia.

Pompeo, a conservative lawmaker from Kansas who is on the House Intelligence Committee, listed challenges facing the United States, saying “this is the most complicated threat environment the United States has faced in recent memory.”

This included what he called a “resilient” Islamic State and the fallout from Syria’s long civil war.

Pompeo also included North Korea, which he said had “dangerously accelerated its nuclear and ballistic missile capabilities.” He said China was creating “real tensions” with its activities in the South China Sea and in cyberspace as it flexed its muscles and expanded its military and economic reach.

He called Iran an “emboldened, disruptive player in the Middle East, fueling tensions” with Sunni Muslim allies of the United States.

(Writing by Frances Kerry; Editing by Howard Goller)