North Korea agrees to talks after U.S., South Korea postpone military drills

Ribbons bearing messages wishing for unification between the two Koreas hang on a barbed-wire fence near the militarized zone separating the two Koreas, in Paju, South Korea, December 21, 2017.

By Christine Kim

SEOUL (Reuters) – North Korea agreed on Friday to hold official talks with the South next week, the first in more than two years, hours after the United States and South Korea delayed a military exercise amid a standoff over the North’s nuclear and missile programs.

South Korea said the North had sent its consent for the talks to be held on Tuesday. The last time the two Koreas engaged in official talks was in December 2015.

The meeting will take place at the border truce village of Panmunjom where officials from both sides are expected to discuss the Winter Olympics, to be held in the South next month, and other inter-Korean relations, South Korean Unification Ministry spokesman Baik Tae-hyun told reporters.

North Korea asked for further negotiations about the meeting to be carried out via documented exchanges, Baik said.

North Korean leader Kim Jong Un opened the way for talks with South Korea in a New Year’s Day speech in which he called for reduced tensions and flagged the North’s possible participation in the Winter Olympics.

But Kim remained steadfast on the issue of nuclear weapons, saying the North would mass produce nuclear missiles for operational deployment and again warned he would launch a nuclear strike if his country was threatened.

U.S. President Donald Trump and his South Korean counterpart Moon Jae-in announced on Thursday that annual large-scale military drills would now take place after the Olympics.

The North sees these drills as preparations for invasion and just cause for its weapons programs that it conducts in defiance of U.N. Security Council resolutions. South Korea and the United States are technically still at war with North Korea after the 1950-53 Korean conflict ended with a truce, not a peace treaty.

Trump had earlier called the proposed inter-Korean talks a “good thing” and that he would send a high-level delegation, including members of his family, to the Olympics, according to South Korea’s presidential office.

In a tweet, Trump, who hurled fresh insults at the North Korean leader this week, took credit for any dialogue that takes place.

“Does anybody really believe that talks and dialogue would be going on between North and South Korea right now if I wasn’t firm, strong and willing to commit our total ‘might’ against the North,” Trump tweeted.

North Korea regularly threatens to destroy the United States and its two key Asia allies, Japan and South Korea.

Chinese Foreign Ministry spokesman Geng Shuang welcomed North and South Korea “taking positive steps to improve ties”, and said the postponement of the military exercises was “without doubt a good thing”.

China’s Commerce Ministry said it would limit exports of crude oil, refined oil products, steel and other metals to North Korea, in line with tough new sanctions imposed by the United Nations.

Japanese Defence Minister Itsunori Onodera sounded a note of caution about the proposed talks.

“I think what is important is to maintain a firm defense posture,” he told reporters in Tokyo.

“North Korea goes through phases of apparent dialogue and provocation but either way, North Korea is continuing its nuclear and missile development. We have no intention of weakening our warning and surveillance.”

The ramped-up momentum for inter-Korean dialogue follows a year of missile and nuclear tests by North Korea as well as an exchange of bellicose comments from Trump and Kim, which raised alarm across the world.

Earlier this week, Nikki Haley, the U.S. ambassador to the United Nations, said Washington had heard reports that Pyongyang might be preparing to fire another missile.

South Korea’s defense ministry has said it had yet to see any evidence of an imminent missile launch.

Analysts with the website 38 North, which tracks North Korea, reported Pyongyang may be preparing to test a rocket engine at a facility in Sohae, North Pyongan province, where all of the North’s satellite launches have taken place since 2012.

Commercial satellite imagery from Dec. 25 showed a rail-mounted environment shelter had been moved away from a test stand, indicating that an engine test may be in the near future, the website said, rather than a new rocket launch suspected in recent media reports.

(Reporting by Christine Kim; Additional reporting by Hyonhee Shin and Josh Smith in SEOUL, Olivier Fabre in TOKYO and Philip Wen in BEIJING and Denis Pinchuk in MOSCOW; Editing by Michael Perry and Nick Macfie)

Vietnam unveils 10,000-strong cyber unit to combat ‘wrong views’

Men use computers at an internet cafe in Bim Son town, outside Hanoi, Vietnam May 15, 2017.

HANOI (Reuters) – Vietnam has unveiled a new, 10,000-strong military cyber warfare unit to counter “wrong” views on the Internet, media reported, amid a widening crackdown on critics of the one-party state.

The cyber unit, named Force 47, is already in operation in several sectors, Tuoi Tre newspaper quoted Lieutenant General Nguyen Trong Nghia, deputy head of the military’s political department, as saying at a conference of the Central Propaganda Department on Monday in the commercial hub of Ho Chi Minh City.

“In every hour, minute, and second we must be ready to fight proactively against the wrong views,” the paper quoted the general as saying.

Communist-ruled Vietnam has stepped up attempts to tame the internet, calling for closer watch over social networks and for the removal of content that it deems offensive, but there has been little sign of it silencing criticism when the companies providing the platforms are global.

Its neighbor China, in contrast, allows only local internet companies operating under strict rules.

The number of staff compares with the 6,000 reportedly employed by North Korea. However, the general’s comments suggest its force may be focused largely on domestic internet users whereas North Korea is internationally focused because the internet is not available to the public at large.

In August, Vietnam’s president said the country needed to pay greater attention to controlling “news sites and blogs with bad and dangerous content”.

Vietnam, one of the top 10 countries for Facebook users by numbers, has also drafted an internet security bill asking for local placement of Facebook and Google servers, but the bill has been the subject of heated debate at the National Assembly and is still pending assembly approval.

Cyber security firm FireEye Inc  said Vietnam had “built up considerable cyber espionage capabilities in a region with relatively weak defenses”.

“Vietnam is certainly not alone. FireEye has observed a proliferation in offensive capabilities … This proliferation has implications for many parties, including governments, journalists, activists and even multinational firms,” a spokesman at FireEye, who requested anonymity, told Reuters.

“Cyber espionage is increasingly attractive to nation states, in part because it can provide access to a significant amount of information with a modest investment, plausible deniability and limited risk,” he added.

Vietnam denies such charges.

Vietnam has in recent months stepped up measures to silence critics. A court last month jailed a blogger for seven years for “conducting propaganda against the state”.

In a separate, similar case last month, a court upheld a 10-year jail sentence for a prominent blogger.

(Reporting by Mi Nguyen in HANOI; Additional reporting by Amy Sawitta Lefevre in BANGKOK and Eric Auchard in FRANKFURT; Editing by Amy Sawitta Lefevre and Nick Macfie)

U.S. places Pakistan on watch list for religious freedom violations

Trump to make final tax push as Republican negotiators near deal

WASHINGTON (Reuters) – The U.S. State Department has placed Pakistan on a special watch list for “severe violations of religious freedom,” it said on Thursday, days after the White House said Islamabad would have to do more to combat terrorism to receive U.S. aid.

The State Department also said it had re-designated 10 other nations as “countries of particular concern” under the International Religious Freedom Act for having engaged in or tolerated egregious violations of religious freedom.

The re-designated countries were China, Eritrea, Iran, Myanmar, North Korea, Sudan, Saudi Arabia, Tajikistan, Turkmenistan and Uzbekistan. They were re-designated on Dec. 22.

“The protection of religious freedom is vital to peace, stability, and prosperity,” the department said in a statement. “These designations are aimed at improving the respect for religious freedom in these countries.”

U.S. President Donald Trump has criticized Pakistan for not doing more to combat terrorism, and his administration has informed members of Congress that it will announce plans to end “security assistance” payments to the country.

Pakistan has said it is already doing a lot to fight militants, and summoned the U.S. ambassador to explain a tweet by Trump that said the United States had been foolish in dispensing aid to Islamabad.

(Reporting by Makini Brice; Editing by Tim Ahmann and Susan Thomas)

Japan faces greatest danger since World War due to North Korea

Japan's Prime Minister Shinzo Abe attends Universal Health Coverage Forum 2017 in Tokyo, Japan December 14, 2017.

TOKYO (Reuters) – The security situation facing Japan is the most perilous since World War Two because of North Korea’s “unacceptable” provocations, Prime Minister Shinzo Abe said on Thursday and he vowed to bolster defenses to protect the Japanese people.

Tension in the region has been rising, particularly since North Korea conducted its sixth and largest nuclear test in September, and then in November, said it had successfully tested a new intercontinental ballistic missile that could reach all of the U.S. mainland.

“It is not an exaggeration to say that the security environment surrounding Japan is at its severest since World War Two. I will protect the people’s lives and peaceful living in any situation,” Abe told a New Year news conference.

Abe said Japan would take new steps to strengthen its defense posture but he did not go to specifics.

The government approved a record military budget last month, with defense outlays due to rise for a sixth year, increasing by 1.3 percent to 5.19 trillion yen ($46 billion), with the biggest item 137 billion yen in reinforcing defenses against North Korean ballistic missiles.

The U.S. ambassador to the United Nations, Nikki Haley, said this week the United States was hearing reports that North Korea might be preparing to fire another missile, and she warned it not to.

“It is absolutely unacceptable that North Korea is trampling the strong desire of Japan and the rest of the international community for peaceful resolutions and continuing with its provocative behavior,” Abe said.

Abe has said he wants to amend Japan’s pacifist constitution with the aim of loosening constraints on the military, although the public is divided over changes to the charter imposed after Japan’s World War Two defeat.

War-renouncing Article 9 of the constitution, if read literally, bans the existence of standing armed forces, but has long been interpreted to allow a military for exclusively defensive purposes.

Abe said he wanted more debate on the issue.

“I would like this to be a year in which public debate over a constitutional revision will be deepened further,” he said.

Abe’s Liberal Democratic Party-led coalition retained its two-thirds “super majority” in parliament’s lower house in an Oct. 22 election, re-energizing his push to revise the constitution.

(Reporting by Kiyoshi Takenaka; Editing by Chang-Ran Kim, Robert Birsel)

U.S. warns North Korea against new missile test, plays down talks

U.S. Ambassador to the United Nations Nikki Haley speaks at UN headquarters in New York, U.S., January 2, 2018

By Rodrigo Campos and Christine Kim

UNITED NATIONS/SEOUL (Reuters) – The U.S. ambassador to the United Nations, Nikki Haley, warned North Korea on Tuesday against staging another missile test and said Washington would not take any talks between North and South Korea seriously if they did not do something to get Pyongyang to give up its nuclear weapons.

Haley told reporters the United States was hearing reports that North Korea might be preparing to fire another missile.

“I hope that doesn’t happen. But if it does, we must bring even tougher measures to bear against the North Korean regime,” Haley said.

South Korea on Tuesday offered talks with North Korea next week, amid a tense standoff over Pyongyang’s nuclear and missile programs, after North Korean leader Kim Jong Un said in a New Year’s Day speech that he was “open to dialogue” with Seoul.

Kim also said he was open to the possibility of North Korean athletes taking part in Winter Olympics South Korea hosts next month.

At the same time, he stressed that his country would push ahead with “mass producing” nuclear warheads in defiance of U.N. sanctions and that he had a nuclear button on his desk capable of launching missiles at the United States.

U.S. President Donald Trump responded to Kim in a Twitter post on Tuesday: “Will someone from his depleted and food starved regime please inform him that I too have a Nuclear Button, but it is a much bigger & more powerful one than his, and my Button works!”

Haley said the United States would not take talks seriously if they did not take steps toward banning North Korea’s nuclear weapons.

“North Korea can talk to anyone they want, but the U.S. is not going to recognize it or acknowledge it until they agree to ban the nuclear weapons that they have,” she said.

Haley gave no details of the missile test preparations.

Another U.S. official, who spoke on condition of anonymity, said there were indications that could point toward a potential missile launch “sooner rather than later,” but cautioned that such signs had been seen in the past and no test had resulted.

‘DRIVE A WEDGE’

U.S. State Department spokeswoman Heather Nauert said North Korea might be “trying to drive a wedge of some sort” between the United States and South Korea and added that while it was up to Seoul to decide who it talked to: “We are very skeptical of Kim Jong Un’s sincerity in sitting down and having talks.”

Trump, who has led a global drive to pressure North Korea through sanctions to give up development of nuclear-tipped missiles capable of hitting the United States, earlier held back judgment on Pyongyang’s offer to talk, saying on Twitter:

“Rocket man now wants to talk to South Korea for first time. “Perhaps that is good news, perhaps not – we will see!”

Trump has frequently derided Kim as “rocket man.” The U.S. president said sanctions and other pressures were starting to have a big impact on North Korea.

Kim and Trump have exchanged fiery barbs in the last year and the U.S. president has warned that the United States would have no choice but to “totally destroy” North Korea if forced to defend itself or its allies.

North Korea regularly threatens to destroy the United States, South Korea and Japan and tested its most powerful intercontinental ballistic missile in November, which it said was capable of delivering a warhead anywhere in the United States.

South Korea’s Unification Minister Cho Myong-gyon said the offer for high-level talks next Tuesday had been discussed with the United States. Nauert said she was not aware if the matter had been discussed in advance of the South Korean response.

Cho suggested the talks be held at the border village of Panmunjom and said they should be focused on North Korea’s participation at the Olympics, but other issues would likely arise, including the denuclearisation of North Korea.

“I repeat: The government is open to talking with North Korea, regardless of time, location and form,” Cho said.

Should the talks be held, it would be the first such dialogue since a vice-ministerial meeting in December 2015.

South Korean President Moon Jae-in welcomed Kim’s New Year address and asked his government to move as quickly as possible to bring North Korea to the Olympics, but he stressed that an improvement in inter-Korean relations “cannot go separately with resolving North Korea’s nuclear program”.

China, which has persistently urged a return to talks to ease tensions, said recent positive comments from North and South Korea were a good thing.

“China welcomes and supports North Korea and South Korea taking earnest efforts to treat this as an opportunity to improve mutual relations, promote the alleviation of the situation on the Korean peninsula and realize denuclearisation on the peninsula,” Foreign Ministry spokesman Geng Shuang said.

(Reporting by Christine Kim, Jane Chung and Hyonhee Shin in Seoul, Michael Martina in Beijing, Doina Chiacu, David Brunnstrom, David Alexander and Arshad Mohammed in Washington, and Rodrigo Campos at the United Nations; Editing by Andrew Hay, Alistair Bell and Lisa Shumaker)

Russian tankers fueled North Korea via transfers at sea

A North Korean flag flies on a mast at the Permanent Mission of North Korea in Geneva October 2, 2014.

By Guy Faulconbridge, Jonathan Saul and Polina Nikolskaya

LONDON/MOSCOW (Reuters) – Russian tankers have supplied fuel to North Korea on at least three occasions in recent months by transferring cargoes at sea, according to two senior Western European security sources, providing an economic lifeline to the secretive Communist state.

The sales of oil or oil products from Russia, the world’s second biggest oil exporter and a veto-wielding member of the United Nations Security Council, breach U.N. sanctions, the security sources said.

The transfers in October and November indicate that smuggling from Russia to North Korea has evolved to loading cargoes at sea since Reuters reported in September that North Korean ships were sailing directly from Russia to their homeland.

“The Russian vessels made transfers at sea to the North Koreans,” the first security source, who spoke on condition of anonymity, told Reuters. The source said the transfers of oil or oil products took place on several occasions and were a breach of sanctions.

A second source, who independently confirmed the existence of the Russian ship-to-ship fuel trade with North Korea, said there was no evidence of Russian state involvement in the latest transfers.

“There is no evidence that this is backed by the Russian state but these Russian vessels are giving a lifeline to the North Koreans,” the second European security source said.

In comments carried by Russia’s RIA Novosti state news agency on Saturday, the Russian Foreign Ministry said the country was observing sanctions against North Korea.

The two security sources cited naval intelligence and satellite imagery of the vessels operating out of Russian Far Eastern ports on the Pacific but declined to disclose further details to Reuters, saying it was classified.

The Russian Customs Service declined to comment when asked on Wednesday if Russian ships had supplied fuel to North Korean vessels. The owner of one ship accused of smuggling oil to North Korea denied any such activity.

SATELLITE DATA

The U.S. State Department, in a statement, called on Russia and other U.N. members to “strictly implement” sanctions on North Korea and to work “more closely together to shut down U.N.-prohibited activities, including ship-to-ship transfers of refined petroleum and the transport of coal from North Korea”.

The latest report came as China, responding on Friday to criticism from U.S. President Donald Trump, denied it had illicitly shipped oil products to North Korea.

North Korea relies on imported fuel to keep its struggling economy functioning. It also requires oil for its intercontinental ballistic missile and nuclear program that the United States says threatens the peace in Asia.

“The vessels are smuggling Russian fuel from Russian Far Eastern ports to North Korea,” said the first security source, who spoke on condition of anonymity.

Reuters was unable to independently verify that the vessels had transferred fuel to North Korean vessels, whether the Russian state knew about the sales or how many Russian vessels were involved in the transfers. It was also unclear how much fuel may have been smuggled.

Ship satellite positioning data consulted by Reuters and available on Reuters Eikon shows unusual movements by some of the Russian vessels named by the security sources including switching off the transponders which give a precise location.

The security sources said the Russian-flagged tanker Vityaz was one vessel that had transferred fuel to North Korean vessels.

The Vityaz left the port of Slavyanka near Vladivostok in Russia on Oct. 15 with 1,600 tonnes of oil, according to Russian port control documents.

Documents submitted by the vessel’s agent to the Russian State Port Control authority showed its destination as a fishing fleet in the Japan Sea. Shipping data showed the vessel switched off its transponder for a few days as it sailed into open waters.

According to the European security sources, the Vityaz conducted a ship-to-ship transfer with the North Korean Flagged Sam Ma 2 tanker in open seas during October.

Reuters could not independently verify the transfer as ship tracking data showed that the Sam Ma 2 had turned off its transponder from the start of August.

The owner of the Russian vessel denied any contact with North Korean vessels but also said it was unaware that the vessel was fuelling fishing boats.

OIL PRODUCTS

Yaroslav Guk, deputy director of the tanker’s owner, Vladivostok-based Alisa Ltd, said the vessel had no contacts with North Korean vessels.

“Absolutely no, this is very dangerous,” Guk told Reuters by telephone. “It would be complete madness.”

When contacted a second time, Guk said the vessel did not have any contacts with North Korean ships and that he would not answer further questions.

An official at East Coast Ltd, the vessel’s transport agent, declined to comment.

Two other Russian flagged tankers made similar journeys between the middle of October and November, leaving from the ports of Slavyanka and Nakhodka into open seas where they switched off their transponders, shipping data showed.

In September, Reuters reported that at least eight North Korean ships that left Russia loaded with fuel this year headed for their homeland despite declaring other destinations, a ploy that U.S. officials say is often used to undermine sanctions.

A Russian shipping source with knowledge of Far Eastern marine practices said North Korean vessels had stopped loading fuel in Russia’s Far Eastern ports but that fuel is delivered at sea by tankers using ship-to-ship transfers, or even by fishing vessels.

China on Friday denied reports it had been illicitly selling oil products to North Korea in violation of U.N. sanctions, after U.S. President Donald Trump said he was unhappy that China had allowed oil to reach the isolated nation.

China’s denial came a day after it blocked a U.S. effort at the United Nations to blacklist six ships Washington believes had engaged in illicit trade with North Korea, a U.N. Security Council diplomat said.

According to documents seen by Reuters this month, the United States had proposed that the U.N. Security Council blacklist 10 ships for illicit trade with North Korea.

It accused the vessels of “conducting illegal ship-to-ship transfers of refined petroleum products to North Korean vessels or illegally transporting North Korean coal to other countries for exports.”

Three North Korean ships among the 10 were blacklisted, along with a Panama-registered vessel.

(Additional reporting by David Brunnstrom in Washington, and Gabrielle Tetrault-Farber in Moscow; Editing by Giles Elgood, Leslie Adler and Alison Williams)

South Korea seizes second ship suspected of providing oil to North Korea

The Lighthouse Winmore, a Hong Kong-flagged vessel suspected of transferring oil to North Korea in defiance of international sanctions, is seen in the sea off Yeosu, South Korea December 29, 2017.

By Yuna Park and Hyunjoo Jin

SEOUL (Reuters) – South Korean authorities have seized a Panama-flagged vessel suspected of transferring oil products to North Korea in violation of international sanctions, a customs official said on Sunday.

The seizure was the second to be revealed by South Korea within a few days, as the United Nations steps up efforts to squeeze essential oil supplies to the reclusive North following its nuclear or ballistic missile tests.

The ship, KOTI, was seized at Pyeongtaek-Dangjin port, the official told Reuters, without elaborating, due to the sensitivity of the issue. The port is on the west coast, south of Incheon.

A marine official also confirmed the seizure, which he said was done “recently”.

The KOTI’s estimated time of arrival at the port was Dec. 19, according to VesselFinder Ltd., a tracking service provider,

The ship can carry 5,100 tonnes of oil and has a crew mostly from China and Myanmar, Yonhap News Agency reported, adding that South Korea’s intelligence and customs officials are conducting a joint probe into the vessel.

A Foreign Ministry spokesman confirmed the probe, declining to provide details.

“The government has been in close consultations with related countries and ministries to thoroughly implement the sanctions by the U.N. Security Council,” the spokesman said.

PROPOSED BLACKLISTING

On Friday, South Korea said that in late November it seized the Hong Kong-flagged Lighthouse Winmore, which is suspected of transferring as much as 600 tons of oil to the North Korea-flagged Sam Jong 2.

The U.N. Security Council last month unanimously imposed new sanctions on North Korea for a recent intercontinental ballistic missile test, seeking to limit its access to refined petroleum products and crude oil.

The United States has also proposed that the United Nations Security Council blacklist 10 ships for transporting banned items from North Korea, according to documents seen by Reuters on Tuesday.

The Lighthouse Winmore is one of the 10 ships proposed to be blacklisted. The KOTI does not seem to be included on the list.

On Thursday, China blocked a U.S. effort at the United Nations to blacklist six foreign-flagged ships, a U.N. Security Council diplomat said.

China’s Foreign Ministry, responding to a question from Reuters on the blocking, said Beijing always fully and strictly implemented Security Council resolutions.

“At the same time, any measures taken by the Security Council must have a basis in conclusive and actual proof. China will continue to participate in the work of the relevant Security Council sanctions committee on this principle,” it said in a short statement, without elaborating.

China also denied reports it had been illicitly selling oil products to North Korea in defiance of U.N. sanctions, after U.S. President Donald Trump said he was unhappy that China had allowed oil to reach the isolated nation.

Russian tankers have supplied fuel to North Korea on at least three occasions in recent months by transferring cargoes at sea, breaching U.N. sanctions, sources told Reuters.

(Reporting by Yuna Park and Hyunjoo Jin; Additional reporting by Hyonhee Shin in SEOUL and Ben Blanchard in BEIJING; Editing by Kim Coghill and Richard Borsuk)

South Korea offers talks with defiant North ahead of Olympics

People look toward the north through a barbed-wire fence near the militarized zone separating the two Koreas, in Paju, South Korea, December 21,

By Christine Kim

SEOUL (Reuters) – South Korea on Tuesday offered talks with North Korea amid a standoff over its weapons programs, a day after North Korean leader Kim Jong Un said he was open to negotiations but that his country would push ahead with “mass producing” nuclear warheads.

The offer for high-level talks next Tuesday had been discussed with the United States, the South’s unification minister said, while a decision on whether to push back a massive joint military drill between South Korea and the United States until after the Winter Olympics was pending.

Tension has been rising over North Korea’s nuclear and missile programs, which it pursues in defiance of years of U.N. Security Council resolutions, with bellicose rhetoric coming from both Pyongyang and the White House. The North sees the regular war drills between the South and the United States as preparations for war.

“We look forward to candidly discussing interests from both sides face-to-face with North Korea along with the North’s participation in the Pyeongchang Winter Olympics,” Unification Minister Cho Myong-gyon told reporters.

“I repeat, the government is open to talking with North Korea, regardless of time, location and form.”

Cho said he expects the dialogue at the border village of Panmunjom, if it happens, to be focused on North Korea’s participation at the Olympics in February, but other issues would likely arise, including the decentralization of North Korea.

Should the talks be held on Jan. 9, it would be the first such dialogue since a vice-ministerial meeting in December 2015.

The offer landed after a New Year’s Day speech by Kim who said he was “open to dialogue” with Seoul, and for North Korean athletes to possibly take part in the Winter Games, but he persistently declared North Korea a nuclear power.

After welcoming Kim’s address, South Korean President Moon Jae-in had asked his government earlier in the day to move as quickly as possible to bring North Korea to the Olympics.

Chinese Foreign Ministry spokesman Geng Shuang said the recent positive comments from both sides about improving relations, and Kim’s remarks about participating in the upcoming Olympics, were a “good thing”.

“China welcomes and supports North Korea and South Korea taking earnest efforts to treat this as an opportunity to improve mutual relations, promote the alleviation of the situation on the Korean peninsula and realize denuclearization on the peninsula.”

“DEEP BREATH” NEEDED

Chun Yung-woo, a former South Korean national security adviser, said Seoul should have taken more time before reacting to Kim’s comments.

“I regret the government had even lost the flexibility to spend one day or two taking a deep breath and meticulously analyzing Kim Jong Un’s ulterior motive before hastily issuing a welcoming statement,” he said.

“The government will have to strive more to come up with a countermeasure not to get caught in a trap set by Kim Jong Un.”

Choi Moon-soon, governor of Gangwon Province where the Olympics are to be held next month, has proposed South Korea send cruise ships to bring North Korean athletes and officials to Pyeongchang, according to South Korean media.

Choi met North Korean sports official Mun Woong in China on Dec. 18 on the sidelines of a international youth football tournament where North and South Korea soccer teams competed, the Dong-A Ilbo newspaper reported.

The governor did not immediately respond to a request by Reuters for comment.

This week’s exchanges follow a year dominated by fiery threats form Kim and U.S. President Donald Trump who vowed to destroy North Korea if threatened, even as U.S. diplomats pushed for a diplomatic solution.

North Korea, which regularly threatens to destroy the United States, South Korea and Japan, tested its most powerful intercontinental ballistic missile in November, which it said was capable of delivering a warhead to anywhere in the United States.

Kim said in a New Year’s Day speech on Monday he would consider sending a delegation to the Olympics.

“North Korea’s participation in the Winter Games will be a good opportunity to showcase the national pride and we wish the Games will be a success. Officials from the two Koreas may urgently meet to discuss the possibility,” Kim said.

North Korea would focus in 2018 on “mass-producing nuclear warheads and ballistic missiles for operational deployment”.

“The whole territory of the U.S. is within the range of our nuclear strike and a nuclear button is always on the desk of my office and this is just a reality, not a threat,” he said, while emphasizing that the weapons would only be used if North Korea was threatened.

The U.S. State Department did not respond to a requests for comment on Kim’s address, but analysts said it was an attempt to weaken the U.S.-South Korean alliance.

The Commerce Ministry in China, North Korea’s lone major ally, also said it will continue to fully implement U.N. sanctions on North Korea.

Trump said on Twitter last week that China has been “caught” allowing oil into North Korea and said such moves would prevent “a friendly solution” to the crisis.

(Reporting by Christine Kim; Additional reporting by Jane Chung and Hyonhee Shin in Seoul, and Michael Martina in Beijing; Editing by Nick Macfie)

After Trump criticism, China denies selling oil illicitly to North Korea

: A Chinese flag is seen in front of the Friendship bridge over the Yalu River connecting the North Korean town of Sinuiju and Dandong in China's Liaoning Province on April 1, 2017.

By Philip Wen and David Brunnstrom

BEIJING/WASHINGTON (Reuters) – China on Friday denied reports it has been illicitly selling oil products to North Korea after U.S. President Donald Trump said he was not happy that China had allowed oil to reach the isolated nation.

Trump said on Twitter the previous day that China had been “caught” allowing oil into North Korea and that would prevent “a friendly solution” to the crisis over North Korea’s nuclear and missile programs that it conducts in defiance of heavy U.N. Security Council sanctions.

“I have been soft on China because the only thing more important to me than trade is war,” Trump said in a separate interview with The New York Times.

South Korea’s Chosun Ilbo newspaper this week quoted South Korean government sources as saying that U.S. spy satellites had detected Chinese ships transferring oil to North Korean vessels about 30 times since October.

U.S. officials have not confirmed details of this report.

Chinese Foreign Ministry spokeswoman Hua Chunying told reporters she had noted recent media reports including suggestions a Chinese vessel was suspected of transporting oil to a North Korean vessel on Oct. 19.

“The Chinese side has conducted immediate investigation. In reality, the ship in question has, since August, not docked at a Chinese port and there is no record of it entering or leaving a Chinese port,” Hua said.

She said she was not aware if the vessel had docked at the port in other countries but the relevant media reports “did not accord with facts”.

“China has always implemented U.N. Security Council resolutions pertaining to North Korea in their entirety and fulfils its international obligations. We never allow Chinese companies and citizens to violate the resolutions,” Hua said.

“If, through investigation, it’s confirmed there are violations of the U.N. Security Council resolutions, China will deal with them seriously in accordance with laws and regulations.”

In the New York Times interview, Trump explicitly tied his administration’s trade policy with China, North Korea’s lone major ally, to its perceived cooperation in resolving the North Korea standoff.

“When I campaigned, I was very tough on China in terms of trade. They made — last year, we had a trade deficit with China of $350 billion, minimum. That doesn’t include the theft of intellectual property, O.K., which is another $300 billion,” Trump said, according to a transcript of the interview.

“If they’re helping me with North Korea, I can look at trade a little bit differently, at least for a period of time. And that’s what I’ve been doing. But when oil is going in, I’m not happy about that.”

An official with the U.S. State Department said the U.S. government was aware of vessels engaged in such activity involving refined petroleum and coal.

“We have evidence that some of the vessels engaged in these activities are owned by companies in several countries, including China,” the official said, speaking on condition of anonymity.

The United States says the full cooperation of China, North Korea’s neighbor and main trading partner, is vital to the success of efforts to rein in North Korea, while warning that all options are on the table, including military ones, in dealing with it.

China has repeatedly said it is fully enforcing all resolutions against North Korea, despite suspicion in Washington, Seoul and Tokyo that loopholes still exist.

‘EVADING SANCTIONS’

South Korea said on Friday it had seized a Hong Kong-flagged ship suspected of transferring oil to North Korea.

A senior South Korean foreign ministry official said the ship, the Lighthouse Winmore, was seized when it arrived at a South Korean port in late November.

“It’s unclear how much oil the ship had transferred to North Korea for how long and on how many occasions, but it clearly showed North Korea is engaged in evading the sanctions,” the official told Reuters.

South Korea’s customs service concluded that the Lighthouse Winmore had loaded about 14,000 tons of Japanese refined petroleum products in South Korea on Oct. 11, reportedly bound for Taiwan, the official said.

But instead, it transferred as much as 600 tons to the North Korea-flagged Sam Jong 2 on Oct. 19 in international waters between China and the Korean peninsula, on the order of its charterer, Billions Bunker Group Corp., based in Taiwan, the ministry official said.

It was not immediately possible to find contact information for the company.

A spokesman for Taiwan’s presidential office, Alex Huang, said the company was not incorporated in Taiwan.

“As a responsible member of international society, Taiwan will continue to fully comply with all U.N. sanctions against North Korea, in order to support peace and stability in the region,” he said in a statement.

The Hong Kong government said it was “liaising with the Korean parties concerned to obtain further information about the incident, and will take appropriate actions as necessary”.

Employees at the office of Lighthouse Ship Management, the ship’s registered manager, in the Chinese port city of Guangzhou, declined to comment and said they had no knowledge of the situation.

China’s foreign ministry spokeswoman said she did not have any information about the matter.

Both ships were among 10 vessels that the United States had proposed that the U.N. Security Council should blacklist for transporting banned items from North Korea, documents seen by Reuters this month showed.

China and Russia subsequently asked for more time to consider the U.S. proposal.

Ship tracking data in Thomson Reuters Eikon shows that the Lighthouse Winmore has mainly been doing supply runs between China and Taiwan since August.

Prior to that, it was active between India and the United Arab Emirates. In October, when it allegedly transferred petroleum products to the North Korean ship, the Lighthouse Winmore had its tracking transponder switched off.

The Trump administration has led a drive to step up global sanctions on North Korea in response to its efforts to develop nuclear-tipped missiles capable of hitting the United States.

The U.N. Security Council last week unanimously imposed new sanctions on North Korea for a recent intercontinental ballistic missile (ICBM) test, seeking to further limit its access to refined petroleum products and crude oil.

The U.S.-drafted U.N. resolution seeks to ban nearly 90 percent of refined petroleum exports to North Korea by capping them at 500,000 barrels a year.

It also caps crude oil supplies to North Korea at 4 million barrels a year and commits the Security Council to further cuts if North Korea conducts another nuclear or intercontinental ballistic missile test.

In September, the Security Council put a cap of 2 million barrels a year on refined petroleum products exports to North Korea.

(Additional reporting by Hyonhee Shin and Josh Smith in Seoul, Venus Wu and Tyrone Siu in Hong Kong and Brenda Goh in Shanghai; Writing by Ben Blanchard; Editing by Robert Birsel and Nick Macfie)