U.S. Interior chief urges changes to national monuments: report

FILE PHOTO: U.S. Interior Secretary Ryan Zinke is interviewed by Reuters, while traveling for his National Monuments Review process, in Boston, Massachusetts, U.S., June 16, 2017. REUTERS/Brian Snyder

WASHINGTON (Reuters) – The head of the U.S. Department of the Interior called for changes to the management of 10 national monuments that would lift restrictions on activities such as logging and mining and shrink at least four of the sites, the Washington Post reported.

U.S. Interior Secretary Ryan Zinke recommended that President Donald Trump reduce the boundaries of the monuments known as Utah’s Bears Ears and Grand Staircase-Escalante, Nevada’s Gold Butte and Oregon’s Cascade-Siskiyou.

Zinke also called for relaxing current restrictions within some of the monuments’ boundaries for activities such as grazing, logging, coal mining and commercial fishing, according to a copy of the memo that the Post obtained.

The Grand Staircase-Escalante monument has areas that “contain an estimated several billion tons of coal and large oil deposits,” Zinke’s report said, suggesting that it could be opened to energy production if Trump makes a reduction in the footprint of the monument.

The Trump administration has promoted “energy dominance,” or plans to produce more coal, oil, and gas for domestic use and selling to allies. With Grand Staircase-Escalante being remote, and oil and coal being plentiful elsewhere, it is uncertain if energy interests would actually drill and mine there, if the monument’s boundaries were changed.

Trump has said previous administrations abused their right to create monuments under the Antiquities Act of 1906 by imposing limits on drilling, mining, logging, ranching and other activities in huge areas, mainly in western states.

The monuments targeted in the memo were created by former presidents George W. Bush, a Republican, and Democrats Bill Clinton and Barack Obama. A designation as a national monument prohibits mining and sets stringent protections for ecosystems on the site.

Interior Department spokeswoman Heather Swift referred questions about the memo to the White House.

“The Trump Administration does not comment on leaked documents, especially internal drafts which are still under review by the President and relevant agencies,” White House spokeswoman Kelly Love said in a statement to Reuters.

NATURAL WONDERS

In June, Zinke told reporters he had recommended shrinking the Bears Ears monument, the country’s newest monument, and last month he sent his recommendations to the Republican president after reviewing more than two dozen national monuments. Trump ordered the review in April as part of his broader effort to increase development on federal lands.

Energy, mining, ranching and timber industries have cheered the review, while conservation groups and the outdoor recreation industry threatened lawsuits over what they see as an effort to undo protections of critical natural and cultural resources.

The Sierra Club, an environmental group, said Zinke had “sold out” public lands. “Leaving the protection of Native American sacred sites, outdoor recreation destinations, and natural wonders to the goodwill of polluting industries is a recipe for disaster,” Sierra’s head Michael Brune said.

Senator Maria Cantwell, the top Democrat on the Senate energy committee, tweeted that former President Teddy Roosevelt, a conservationist, would “roll over in his grave” if he saw Zinke’s “attacks” on public lands.

Besides reducing the four sites, Zinke called for changes at Maine’s Katahdin Woods and Waters, New Mexico’s Organ Mountains-Desert Peaks and Rio Grande del Norte, two Pacific Ocean marine monuments and another marine one off the New England coast.

Many fishing industry supporters cheered changes outlined in Zinke’s memo. Jon Mitchell, the mayor of New Bedford, Massachusetts, a large fishing port, said the marine monument designation process “may have been well intended, but it has simply lacked a comparable level of industry input, scientific rigor and deliberation.”

While the antiquities law enables a president to permanently declare certain places of historic or scientific interest a national monument, a few U.S. presidents have reduced the size of some such areas.

(Reporting by Susan Heavey, Valerie Volcovici and Timothy Gardner; Editing by Marguerita Choy and Marcy Nicholson)

Trump to visit hurricane-ravaged Florida

U.S. President Donald Trump and First Lady Melania Trump (R) board Air Force One for travel to view Hurricane Irma response efforts in Florida, from Joint Base Andrews, Maryland, U.S. September 14, 2017. REUTERS/Jonathan Ernst

By Andrew Innerarity

HOLLYWOOD, Fla. (Reuters) – U.S. President Donald Trump visits hurricane-ravaged Florida on Thursday where police are probing the deaths of eight patients inside a nursing home as Hurricane Irma left millions in the state without power.

Police in Hollywood, north of Miami, opened a criminal investigation on Wednesday after finding three dead patients at the Rehabilitation Center at Hollywood Hill, a facility that had been operating with little or no air conditioning.

Four more patients died at or en route to hospital and a fifth was later identified as having died the night before, officials said.

The death toll from Irma stood at 81, with several hard-hit Caribbean islands accounting for more than half the fatalities, and officials continued to assess damage inflicted by the second major hurricane to strike the U.S. mainland this year.

A destroyed trailer park is pictured in an aerial photo in the Keys in Marathon, Florida, U.S., September 13, 2017. REUTERS/Carlo Allegri

A destroyed trailer park is pictured in an aerial photo in the Keys in Marathon, Florida, U.S., September 13, 2017. REUTERS/Carlo Allegri

Trump will visit Fort Myers in southwest Florida, an area hard hit by the storm, for a briefing on Hurricane Irma. He will then travel south to Naples, Florida to meet with residents tackling the aftermath of storm, the White House said in a statement.

“The devastation left by Hurricane Irma was far greater, at least in certain locations, than anyone thought – but amazing people working hard!” the president said in a Tweet on Tuesday.

One of the most powerful Atlantic storms on record, Irma bore down on the Caribbean with devastating force as it raked the northern shore of Cuba last week.

It barreled into the Florida Keys island chain on Sunday, packing sustained winds of up to 130 miles per hour (215 km per hour) before plowing up the Gulf Coast of the state and dissipating.

In addition to severe flooding across Florida and extensive property damage in the Keys, residents faced widespread power outages that initially plunged more than half the state into darkness.

Some 4.3 million homes and businesses were still without power on Wednesday in Florida and neighboring states.

About 150 of the Florida’s nearly 700 nursing facilities were without electricity as of Wednesday morning, according to the Florida Health Care Association, which represents most of them.

Florida Power & Light provided electricity to parts of the nursing home in Hollywood but the facility was not on a county priority list for emergency power restoration, the utility said.

Total insured losses from the storm are expected to run about $25 billion, including $18 billion in the United States and $7 billion in the Caribbean, catastrophe modeler Karen Clark & Company estimated on Wednesday.

The Florida Keys were particularly hard hit, with federal officials saying 90 percent of its homes were destroyed or heavily damaged. The remote island chain stretches nearly 100 miles (160 km) into the Gulf of Mexico from Florida’s southern tip, connected by a single highway and series of bridges.

On Key West, at the end of the archipelago, hundreds of residents who had refused evacuation orders lined up on Wednesday outside the island’s Salvation Army outpost for water and military-style rations after enduring days of intense heat with little water, power or contact with the outside world.

The stench of dead fish and decaying seaweed permeated the air.

Irma wreaked utter devastation on several of the northern Leeward Islands of the Caribbean, where at least 43 people died. Irma hit Florida about two weeks after Hurricane Harvey plowed into Houston, killing about 60 and causing some $180 billion in damage, mostly from flooding.

(Additional reporting by Zachary Fagenson in Key West, Daniel Trotta in Orlando, Florida; Dan Whitcomb in Los Angeles; Letitia Stein in Detroit, Keith Coffman in Denver,; Colleen Jenkins in Winston-Salem, North Carolina, Brendan O’Brien in Milwaukee and Gina Cherelus, Peter Szekeley, Scott DiSavino and Joseph Ax in New York; Editing by Jon Boyle)

Trump, siding with Democrats, agrees to three-month debt-limit rise: lawmakers

U.S. President Donald Trump meets with Senate Majority Leader Mitch McConnell (L), U.S. Senate Democratic Leader Chuck Schumer (2nd R), House Minority Leader Nancy Pelosi (R) and other congressional leaders in the Oval Office of the White House in Washington, U.S., September 6, 2017. REUTERS/Kevin Lamarque

By Richard Cowan and Susan Cornwell

WASHINGTON (Reuters) – President Donald Trump, siding with Democrats over his fellow Republicans, agreed on Wednesday that Congress should pass an extension of the U.S. debt limit until Dec. 15, a government funding bill covering the same period and disaster aid for Hurricane Harvey victims, Democratic leaders said.

Top Senate Democrat Chuck Schumer and top House of Representatives Democrat Nancy Pelosi made the announcement after a meeting with Trump at the White House, along with the Republican leaders of Congress.

“Both sides have every intention of avoiding default in December and look forward to working together on the many issues before us,” Schumer and Pelosi said in a statement.

A source briefed on the meeting with Trump said Treasury Secretary Steve Mnuchin and all Republicans at the White House meeting argued for a debt limit increase for a longer period. But by the end of the meeting, Trump sided with Democrats who wanted a three-month increase.

The U.S. dollar got a boost on news of agreement on the debt ceiling, which caps how much money the U.S. government can borrow. Many conservatives in Congress are loath to raise it without spending cuts.

The Treasury Department has said the ceiling must be raised in the next few weeks. If not, the government would be unable to borrow more money or pay its bills, including its debt payments. That could hurt the United States’ credit rating, cause financial turmoil, harm the U.S. economy and possibly trigger a recession.

Trump is heading into the toughest legislative stretch of his presidency, with lawmakers facing several pressing legislative priorities.

Those include Harvey disaster relief, raising the debt ceiling by early October to prevent an unprecedented default on U.S. government debt, and passing legislation for federal spending in the fiscal year that begins on Oct. 1 to avoid a government shutdown.

“We have many, many things that are on the plate,” Trump told reporters at the beginning of a White House meeting with the congressional leaders.

“Hopefully we can solve them in a rational way. And maybe we won’t be able to. We’ll probably know pretty much at the end of this meeting or the meetings that we’ll be having over a short period of time,” Trump added.

Trump on Tuesday also gave a Congress six months to pass legislation to decide the fate of the 800,000 so-called Dreamers after rescinding a five-year-old program that had protected them from deportation.

Earlier, House Speaker Paul Ryan said any legislation to address the Dreamers would also need to address border security, a position sure to antagonize Democrats. Ryan also said any immigration legislation the House would consider would have to have the support of Trump.

Schumer urged Republicans to put forward legislation protecting the Dreamers without other issues attached.

The House on Wednesday approved roughly $8 billion in initial emergency aid for relief and rebuilding after Hurricane Harvey, which tore into Texas on Aug. 25. The measure, which provides $7.4 billion for the Federal Emergency Management Agency and $450 million for the Small Business Administration, will now go to the Senate and, barring unexpected setbacks, could be on Trump’s desk to sign by the end of the week.

(Additional reporting by Jeff Mason, Amanda Becker, Doina Chiacu, Richard Cowan, James Oliphant and David Morgan; Writing by Will Dunham; Editing by Alistair Bell)

Trump to begin tax reform push next week, White House adviser tells FT

U.S. President Donald Trump speaks to the National Convention of the American Legion in Reno, Nevada, U.S., August 23, 2017. REUTERS/Joshua Roberts

WASHINGTON (Reuters) – U.S. President Donald Trump will begin a major push next week to convince the public of the need for tax reform, shifting his focus to fiscal policy in an effort to win a big legislative victory by the end of the year, The Financial Times reported on Friday.

Trump would begin the effort next Wednesday with a speech in Missouri, the first in a series of addresses to generate public support on the issue, Gary Cohn, director of the National Economic Council, told the newspaper.

“We are completely engaged in tax reform,” Cohn told the FT in an interview. “Starting next week the president’s agenda and calendar is going to revolve around tax reform. He will start being on the road making major addresses justifying the reasoning for tax reform.”

Although Cohn stressed that tax reform would be front and center of Trump’s agenda, the Republican-controlled Congress faces two other pressing issues when it returns from its August recess on Sept. 5.

Lawmakers need to approve an increase in the U.S. debt ceiling to allow the federal government to keep borrowing money and paying its bills, including its debt obliterations. Separately they need to pass at least stop-gap spending measures to keep the government operating. Deadlines on both issues will loom within weeks after lawmakers return from their break.

Asked by the FT whether the debate over the debt ceiling could derail the tax reform drive, Cohn said that “at the end of the day, Congress has to increase the debt ceiling – that is just the reality.” He added that this would be in September, before tax reform legislation.

“The key point is this: tax reform is the White House’s number one focus right now,” he added.

Cohn said White House officials had been working with Senate Majority Leader Mitch McConnell, House of Representatives Speaker Paul Ryan and other leading congressional Republicans on “an outline and skeleton” for the tax reform proposal, “and we have a good skeleton that we have agreed to.”

The details Cohn discussed were similar to those mentioned by Ryan at a meeting with Boeing employees on Thursday.

Asked whether the focus on tax reform had been complicated by Twitter attacks by the Republican president on McConnell and Ryan, Cohn said the White House officials worked well with the two “and we have made a massive amount of progress” on taxes.

Cohn said the House Ways and Means Committee would put more “flesh and bone” on the tax reform plan when lawmakers return from the recess. He said he believed a bill could pass tax committees in both chambers and be passed by both the House and Senate by the end of 2017.

TAX DETAILS

In the case of individual taxpayers, Cohn said the president’s reform plan would protect the three big deductions that people can claim on taxes: for home mortgages, charitable giving and retirement savings.

Beyond that, it would increase the caps for the standard deduction while eliminating most other personal deductions, Cohn said. The plan also aims to get rid of taxes on estates left when people die.

Cohn said for businesses, the administration is proposing to lower corporate tax rates, while eliminating many of the deductions that businesses use to reduce the amount of tax they must pay.

Asked whether the corporate tax rate could be cut to 15 percent as previously suggested by Trump, Cohn said, “I would like to get the tax rate as low as possible so that businesses want to create jobs here.”

He said the administration would propose going to a system where American companies would not have to pay additional tax when they bring profits earned overseas back to the United States.

“Today, they often have to pay extra taxes for bringing profits back to the U.S.,” Cohn said. “Our current system basically creates a penalty for headquartering in the U.S.”

He said the administration did envision a one-time low tax rate on all overseas profits.

(Reporting by David Alexander and Makini Brice; Editing by Jeffrey Benkoe and Frances Kerry)

Trump says U.S. debt ceiling ‘mess’ could have been avoided

U.S. President Donald Trump waves as he steps out from Air Force One in Reno, Nevada, U.S., August 23, 2017. REUTERS/Joshua Roberts

WASHINGTON (Reuters) – President Donald Trump said on Thursday congressional leaders could have avoided a legislative “mess” if they had heeded his advice on raising the U.S. debt ceiling, renewing criticism of fellow Republicans whose support he needs to advance his policy agenda.

Trump said he had advised Senate Majority Leader Mitch McConnell and House of Representatives Speaker Paul Ryan to link passage of legislation raising the debt ceiling to a measure on veterans affairs that he signed on Aug. 12.

“I requested that Mitch M & Paul R tie the Debt Ceiling legislation into the popular V.A. Bill (which just passed) for easy approval,” Trump said a in Twitter post.

“They … didn’t do it so now we have a big deal with Dems holding them up (as usual) on Debt Ceiling approval. Could have been so easy-now a mess!” he added, referring to Democrats.

The Treasury Department, already using “extraordinary measures” to remain current on its obligations, has said the limit on the amount the federal government may borrow must be raised by Sept. 29.

The issue is one of the must-pass measures Congress will take up when it returns on Sept. 5 from its August recess. Another is a spending bill: Congress will have about 12 working days from when it returns from the break to approve spending measures to keep the government open.

Trump threatened on Tuesday to shut down the government if Congress failed to secure funding for his long-promised wall along the U.S. border with Mexico. His threat, which added a new complication to Republicans’ months-long struggle to reach a budget deal, rattled markets and drew rebukes from some Republicans.

Democrats have slammed Trump over his comments.

On the debt ceiling issue, House Democratic leader Nancy Pelosi said on Thursday that with Republicans controlling the White House and both chambers in Congress, “the American people expect and deserve a plan from Republicans to avert a catastrophic default and ensure the full faith and credit of the United States.”

On Thursday, investors were more broadly waiting for speeches on Friday by central bank governors at a conference in Jackson Hole, Wyoming, for any new indications on monetary policy. U.S. stocks opened higher but then turned negative, and U.S. Treasury yields edged higher.

Yields on Treasury bills due in early October rose on concerns that payments on the debt could be delayed if lawmakers fail to raise the debt ceiling before the government runs out of funds.

“There’s disjointedness because of the debt ceiling,” said Lou Brien, a market strategist at DRW Trading in Chicago.

RELATIONS WITH MCCONNELL

Trump’s renewed criticism of the Republican leaders came just a day after the White House and McConnell issued separate statements saying they were continuing to work together on shared priorities, seeking to counter news reports that their relationship is disintegrating.

Trump and McConnell “remain united on many shared priorities, including middle class tax relief, strengthening the military, constructing a southern border wall, and other important issues,” the White House said in its statement.

Trump also reiterated his criticism of McConnell on Thursday over the Senate’s failure in July to pass a bill to replace Democratic former President Barack Obama’s healthcare law, legislation opposed by Republicans since it was enacted in 2010.

“The only problem I have with Mitch McConnell is that, after hearing Repeal & Replace for 7 years, he failed!That should NEVER have happened!,” Trump said in a tweet.

McConnell offered muted criticism of Trump on Thursday, saying he was “a little concerned about some of the trade rhetoric” by the president and others.

Trump has repeatedly condemned trade deals he believes are bad for American workers and for the U.S. economy. On Tuesday he cast doubt on any deal emerging to improve the North America Free Trade Agreement with Mexico and Canada. “We’ll end up probably terminating NAFTA at some point,” he said.

“Trade is a winner for America,” McConnell told a gathering of Kentucky farmers and lawmakers. “You may or may not know this, but of all the current free trade agreements that we have with the various countries all around the world, if you add them all up, we actually have a trade surplus.”

“The assumption that every free trade agreement is a loser for America is largely untrue,” McConnell said.

The New York Times reported on Tuesday that McConnell and Trump were locked in a political “cold war,” especially after an Aug. 9 phone call it said devolved into a shouting match. On that day and the next, Trump assailed McConnell via Twitter, angered by a speech McConnell had given saying Trump had “excessive expectations” of Congress.

(Story refiles to delete duplicated phrase ‘which added’ in seventh paragraph.)

(Reporting by David Alexander, Makini Brice and Ayesha Rascoe in Washington; Karen Brettell and Megan Davies in New York; Writing by David Alexander; Editing by Frances Kerry)

More disruptions feared from cyber attack; Microsoft slams government secrecy

Indonesia's Minister of Communications and Information, Rudiantara, speaks to journalists during a press conference about the recent cyber attack, at a cafe in Jakarta, Indonesia

By Dustin Volz and Eric Auchard

WASHINGTON/FRANKFURT (Reuters) – Officials across the globe scrambled over the weekend to catch the culprits behind a massive ransomware worm that disrupted operations at car factories, hospitals, shops and schools, while Microsoft on Sunday pinned blame on the U.S. government for not disclosing more software vulnerabilities.

Cyber security experts said the spread of the worm dubbed WannaCry – “ransomware” that locked up more than 200,000 computers in more than 150 countries – had slowed but that the respite might only be brief amid fears new versions of the worm will strike.

In a blog post on Sunday, Microsoft President Brad Smith appeared to tacitly acknowledge what researchers had already widely concluded: The ransomware attack leveraged a hacking tool, built by the U.S. National Security Agency, that leaked online in April.

“This is an emerging pattern in 2017,” Smith wrote. “We have seen vulnerabilities stored by the CIA show up on WikiLeaks, and now this vulnerability stolen from the NSA has affected customers around the world.”

He also poured fuel on a long-running debate over how government intelligence services should balance their desire to keep software flaws secret – in order to conduct espionage and cyber warfare – against sharing those flaws with technology companies to better secure the internet.

“This attack provides yet another example of why the stockpiling of vulnerabilities by governments is such a problem,” Smith wrote. He added that governments around the world should “treat this attack as a wake-up call” and “consider the damage to civilians that comes from hoarding these vulnerabilities and the use of these exploits.”

The NSA and White House did not immediately respond to requests for comment about the Microsoft statement.

Economic experts offered differing views on how much the attack, and associated computer outages, would cost businesses and governments.

The non-profit U.S. Cyber Consequences Unit research institute estimated that total losses would range in the hundreds of millions of dollars, but not exceed $1 billion.

Most victims were quickly able to recover infected systems with backups, said the group’s chief economist, Scott Borg.

California-based cyber risk modeling firm Cyence put the total economic damage at $4 billion, citing costs associated with businesses interruption.

U.S. President Donald Trump on Friday night ordered his homeland security adviser, Tom Bossert, to convene an “emergency meeting” to assess the threat posed by the global attack, a senior administration official told Reuters.

Senior U.S. security officials held another meeting in the White House Situation Room on Saturday, and the FBI and the NSA were working to help mitigate damage and identify the perpetrators of the massive cyber attack, said the official, who spoke on condition of anonymity to discuss internal deliberations.

The investigations into the attack were in the early stages, however, and attribution for cyber attacks is notoriously difficult.

The original attack lost momentum late on Friday after a security researcher took control of a server connected to the outbreak, which crippled a feature that caused the malware to rapidly spread across infected networks.

Infected computers appear to largely be out-of-date devices that organizations deemed not worth the price of upgrading or, in some cases, machines involved in manufacturing or hospital functions that proved too difficult to patch without possibly disrupting crucial operations, security experts said.

Microsoft released patches last month and on Friday to fix a vulnerability that allowed the worm to spread across networks, a rare and powerful feature that caused infections to surge on Friday.

Code for exploiting that bug, which is known as “Eternal Blue,” was released on the internet last month by a hacking group known as the Shadow Brokers.

The head of the European Union police agency said on Sunday the cyber assault hit 200,000 victims in at least 150 countries and that number would grow when people return to work on Monday.

MONDAY MORNING RUSH?

Monday was expected to be a busy day, especially in Asia, which may not have seen the worst of the impact yet, as companies and organizations turned on their computers.

“Expect to hear a lot more about this tomorrow morning when users are back in their offices and might fall for phishing emails” or other as yet unconfirmed ways the worm may propagate, said Christian Karam, a Singapore-based security researcher.

The attack hit organizations of all sizes.

Renault said it halted manufacturing at plants in France and Romania to prevent the spread of ransomware.

Other victims include is a Nissan manufacturing plant in Sunderland, northeast England, hundreds of hospitals and clinics in the British National Health Service, German rail operator Deutsche Bahn and international shipper FedEx Corp

A Jakarta hospital said on Sunday that the cyber attack had infected 400 computers, disrupting the registration of patients and finding records.

Account addresses hard-coded into the malicious WannaCry virus appear to show the attackers had received just under $32,500 in anonymous bitcoin currency as of (1100 GMT) 7 a.m. EDT on Sunday, but that amount could rise as more victims rush to pay ransoms of $300 or more.

The threat receded over the weekend after a British-based researcher, who declined to give his name but tweets under the profile @MalwareTechBlog, said he stumbled on a way to at least temporarily limit the worm’s spread by registering a web address to which he noticed the malware was trying to connect.

Security experts said his move bought precious time for organizations seeking to block the attacks.

(Additional reporting by Jim Finkle, Neil Jerome Morales, Masayuki Kitano, Kiyoshi Takenaka, Jose Rodriguez, Elizabeth Piper, Emmanuel Jarry, Orathai Sriring, Jemima Kelly, Alistair Smout, Andrea Shalal, Jack Stubbs, Antonella Cinelli, Kate Holton, Andy Bruce, Michael Holden, David Milliken, Tim Hepher, Luiza Ilie, Patricia Rua, Axel Bugge, Sabine Siebold, Eric Walsh, Engen Tham, Fransiska Nangoy, Soyoung Kim, Mai Nguyen and Nick Zieminski; Editing by Mark Heinrich and Peter Cooney)

Trump vows to broker Israeli-Palestinian peace

U.S. President Donald Trump (L) stands in the Oval Office with Chief of Staff Reince Priebus following an interview with Reuters at the White House in Washington, U.S., April 27, 2017. REUTERS/Carlos Barria

By Jeff Mason and Matt Spetalnick

WASHINGTON (Reuters) – President Donald Trump vowed on Wednesday to work to broker peace between Israel and the Palestinians as he hosted Palestinian President Mahmoud Abbas at the White House but offered no clues about how he could break the deadlock and revive long-stalled negotiations.

In their first face-to-face meeting, Trump pressed Palestinian leaders to “speak in a unified voice against incitement” to violence against Israelis but he stopped short of explicitly recommitting his administration to a two-state solution to the decades-old conflict, a longstanding bedrock of U.S. policy.

“We will get this done,” Trump told Abbas during a joint appearance at the White House, saying he was prepared to act a mediator, facilitator or arbitrator between the two sides.

Abbas quickly reasserted the goal of a Palestinian state as vital to any rejuvenated peace process, reiterating that it must have its capital in Jerusalem with borders based on pre-1967 lines. Israel rejects a full return to 1967 borders as a threat to its security.

Trump faced deep skepticism at home and abroad over his chances for a breakthrough with Abbas, not least because the new U.S. administration has yet to articulate a cohesive strategy for restarting the moribund peace process.

Abbas’ White House talks follow a mid-February visit by Israeli Prime Minister Benjamin Netanyahu, who moved quickly to reset ties after a frequently combative relationship with the Republican president’s predecessor, Democratic President Barack Obama.

Trump sparked international criticism at the time when he appeared to back away from support for a two-state solution, saying he would leave it up to the parties themselves to decide. The goal of an Palestinian state living peacefully beside Israel has been the position of successive U.S. administrations and the international community

The meeting with Abbas, the Western-backed head of the Palestinian Authority, was another test of whether Trump, in office a little more than 100 days, is serious about pursuing what he has called the “ultimate deal” of Israeli-Palestinian peace that eluded his predecessors.

“I’ve always heard that perhaps the toughest deal to make is between the Israelis and the Palestinian,” Trump said on Wednesday. “Let’s see if we can prove them wrong.”

But he offered no new policy prescriptions.

LOW EXPECTATIONS

Abbas, speaking through a translator, told Trump that under “your courageous stewardship and your wisdom, as well as your great negotiations ability,” the Palestinians would be partners seeking a “historic peace treaty.”

The last round of U.S.-brokered peace talks collapsed in 2014.

Abbas said “it’s about time for Israel to end its occupation of our people and our land” – a reference to Jewish settlement building in the West Bank. Reaffirming his commitment to a two-state solution, he called on Israel to recognize Palestinian statehood just as Palestinians recognize the state of Israel.

Though expectations are low for significant progress, plans are being firmed up for Trump to visit the right-wing Israeli leader in Jerusalem and possibly Abbas in the West Bank, targeted for May 22-23, according to people familiar with the matter. U.S. and Israeli officials have declined to confirm the visit.

Questions have been raised about Trump’s choice of his son-in-law, Jared Kushner, who entered the White House with no government experience, to oversee Middle East peace efforts, along with Trump’s longtime business lawyer, Jason Greenblatt, as on-the-ground envoy.

The administration seeks to enlist Israel’s Sunni Arab neighbors, who share Israeli concerns about Shi’ite Iran, to help rejuvenate Middle East peacemaking.

Abbas, who governs in the West Bank while Hamas militants rule Gaza, was under pressure at home to avoid making major concessions to Trump, especially with an ongoing hunger strike by hundreds of Palestinian prisoners held by Israel.

Palestinian officials say it will be hard for Abbas to return to the negotiating table without a long-standing pre-condition of a freeze on Jewish settlement expansion on land Israel occupied in 1967 which Palestinians want for a state.

Trump’s pro-Israel rhetoric during the 2016 election campaign raised concern among Palestinians about whether their leaders will get a fair hearing.

Trump’s promise to move the U.S. Embassy to Jerusalem from Tel Aviv, strongly opposed by Palestinians, has been shifted to the back burner, and he has asked Netanyahu to put unspecified limits on settlement activity.

(Additional reporting by David Alexander, Nidal al-Mughrabi in Gaza and Ali Sawafta in Ramallah; Editing by Howard Goller and Jonathan Oatis)

New York girds itself for Trump’s first visit as president

U.S. President Donald Trump speaks to staffers setting up for the Commander in Chief's trophy presentation in the Rose Garden of the White House in Washington, U.S., May 2, 2017. REUTERS/Joshua Roberts

By Laila Kearney

NEW YORK (Reuters) – New York is bracing for President Donald Trump’s first trip back to his hometown since taking office in January in a Thursday visit that is expected to draw protests and snarl traffic in the United States’ most populous city.

The trip could mark a repeat of the chaotic 2-1/2 months between the real estate developer’s Nov. 8 election and Jan. 20 swearing-in, when crowds of protesters and admirers flocked outside his home in the gold-metal-clad Fifth Avenue Trump Tower.

The early days of the Trump administration have brought aggressive rhetoric and moves to crack down on immigration as well as roll back environmental regulations, much of which has ruffled feathers in the liberal northeast city.

Anti-Trump activists, some of whom have organized marches across the country since Trump’s stunning election victory, are planning loud protests to mark the native son’s return.

“A very hot welcome is being planned for Mr. Trump,” said Alexis Danzig, a member of Rise and Resist, an informal group of activists which formed as Trump came to power. “We’ll be out in full force to voice our grievances.”

Trump’s business dealings and romantic fallouts were constant city tabloid fodder in the 1980s and 1990s. His television show, “The Apprentice,” broadcast Trump to the world as the ultimate Big Apple dealmaker during the 2000s.

While the Trump brand is internationally associated with New York, fewer than one in five city residents voted for him.

Mayor Bill de Blasio and Governor Andrew Cuomo, both Democrats, have said his stance on immigrants has put him at odds with a city where nearly a third of residents are foreign-born.

Protesters plan to gather Thursday near the Intrepid Sea, Air and Space Museum, a decommissioned aircraft carrier where Trump and Australian Prime Minister Malcolm Turnbull are to have their first in-person meeting. One of the pair’s last exchanges was an acrimonious phone call in January.

New York police declined to provide details of their preparations for Trump’s tour and the protests planned around it.

One lingering issue from the transition period, that of the costs of protecting the president-elect’s building was resolved earlier this week in a proposed federal budget including $61 million to reimburse New York and other local governments for providing Trump-related security.

“That’s good news for our city and the hardworking police officers faced with this unprecedented security challenge,” de Blasio said in a statement.

(Additional reporting by Jonathan Allen; Editing by Scott Malone and Andrew Hay)

Trump says chemical attack in Syria crossed many lines

A crater is seen at the site of an airstrike, after what rescue workers described as a suspected gas attack in the town of Khan Sheikhoun in rebel-held Idlib, Syria. REUTERS/Ammar Abdullah

By Jeff Mason and Tom Perry

WASHINGTON/BEIRUT (Reuters) – U.S. President Donald Trump accused Syrian President Bashar al-Assad’s government of going “beyond a red line” with a poison gas attack on civilians and said his attitude toward Syria and Assad had changed, but gave no indication of how he would respond.

Trump said the attack, which killed at least 70 people, many of them children, “crosses many, many lines”, an allusion to his predecessor Barack Obama’s threat to topple Assad with air strikes if he used such weapons. His accusations against Assad put him directly at odds with Moscow, the Syrian’s president principal backer.

“I will tell you, what happened yesterday is unacceptable to me,” Trump told reporters at a news conference with Jordan’s King Abdullah on Wednesday.

“And I will tell you, it’s already happened that my attitude toward Syria and Assad has changed very much,” though when asked at an earlier meeting whether he was formulating a new policy on Syria, Trump said: “You’ll see.”

Vice President Mike Pence, when asked whether it was time to renew the call for Assad to be ousted and safe zones be established, told Fox News: “But let me be clear, all options are on the table,” without elaborating.

U.S. officials rejected Russia’s assertion that Syrian rebels were to blame for the attack.

Trump’s comments, which came just a few days after Washington said it was no longer focused on making Assad leave power, suggested a clash between the Kremlin and Trump’s White House after initial signals of warmer ties. Trump did not mention Russia in his comments on Wednesday but Secretary of State Rex Tillerson said it was time for Russia to think carefully about its support for Assad.

Pence said the time had come for Moscow to “keep the word that they made to see to the elimination of chemical weapons so that they no longer threaten the people in that country.”

Western countries, including the United States, blamed Assad’s armed forces for the worst chemical attack in Syria for more than four years.

U.S. intelligence officials, based on a preliminary assessment, said the deaths were most likely caused by sarin nerve gas dropped by Syrian aircraft on the town of Khan Sheikhoun on Tuesday. A senior State Department official said Washington had not yet ascertained it was sarin.

Moscow offered an alternative explanation that would shield Assad: that the poison gas belonged to rebels and had leaked from an insurgent weapons depot hit by Syrian bombs.

A senior White House official, speaking on condition of anonymity, said the Russian explanation was not credible. “We don’t believe it,” the official said.

COUNTER-RESOLUTION

The United States, Britain and France have proposed a draft U.N. Security Council resolution that would condemn the attack; the Russian Foreign Ministry called it “unacceptable” and said it was based on “fake information”.

Kremlin spokesman Dmitry Peskov said Moscow would press its case blaming the rebels and Deputy Foreign Minister Gennady Gatilov said Russia would veto the draft if Western nations went to a vote without further consultations, Interfax news agency reported.

Moscow has proposed its own draft, TASS news agency quoted a spokesman of Russia’s U.N. mission, Fyodor Strzhizhovsky, as saying on Wednesday.

The U.S. ambassador to the United Nations, Nikki Haley, issued what appeared to be a threat of unilateral action if Security Council members could not agree.

“When the United Nations consistently fails in its duty to act collectively, there are times in the life of states that we are compelled to take our own action,” she told the council, without elaborating.

Trump described the attack as “horrible” and “unspeakable.” He faulted Obama for failing to carry through on his “red line” threat and when asked if he had responsibility to respond to the attack, said: “I now have responsibility”.

The new incident means Trump is faced with same dilemma that faced his predecessor: whether to openly challenge Moscow and risk deep involvement in a Middle East war by seeking to punish Assad for using banned weapons, or compromise and accept the Syrian leader remaining in power at the risk of looking weak.

While some rebels hailed Trump’s statement as an apparent shift in the U.S. position, others said it was too early to say whether the comments would result in a real change in policy.

Fares al-Bayoush, a Free Syrian Army commander, told Reuters: “Today’s statement contains a serious difference from the previous statements, and we expect positivity … from the American role.

Others who declined to be identified said they would wait and see.

Video uploaded to social media showed civilians sprawled on the ground, some in convulsions, others lifeless. Rescue workers hose down the limp bodies of small children, trying to wash away chemicals. People wail and pound on the chests of victims.

The charity Medecins Sans Frontieres said one of its hospitals in Syria had treated patients “with symptoms – dilated pupils, muscle spasms, involuntary defecation – consistent with exposure to neuro-toxic agents such as sarin”. The World Health Organization also said the symptoms were consistent with exposure to a nerve agent.

“We’re talking about war crimes,” French U.N. Ambassador Francois Delattre told reporters in New York.

Labib Nahhas, chief of foreign relations at Ahrar al-Sham, one of the biggest rebel groups in western Syria, called the Russian statement factually wrong and one which contradicted witness accounts.

“This statement provides Assad with the required coverage and protection to continue his despicable slaughter of the Syrian people,” Nahhas told Reuters.

The incident is the first time U.S. intelligence officials have accused Assad of using sarin since 2013, when hundreds of people died in an attack on a Damascus suburb. At that time, Washington said Assad had crossed a “red line” set by then-President Obama.

Obama threatened an air campaign to topple Assad but called it off at the last minute when the Syrian leader agreed to give up his chemical arsenal under a deal brokered by Moscow, a decision which Trump has long said proved Obama’s weakness.

SAME DILEMMA

The Western-drafted U.N. Security Council resolution condemns the attack and presses Syria to cooperate with international investigators. Russia has blocked seven resolutions to protect Assad’s government, most recently in February.

Trump’s response to a diplomatic confrontation with Moscow will be closely watched at home because of accusations by his political opponents that he is too supportive of Russian President Vladimir Putin.

U.S. intelligence agencies say Russia intervened in the U.S. presidential election last year through computer hacking to help Trump defeat Hillary Clinton. The FBI and two congressional committees are investigating whether figures from the Trump campaign colluded with Moscow, which the White House denies.

Trump’s relationship with Russia has deteriorated since the presidential election campaign, when Trump praised Putin as a strong leader and vowed to improve relations between the two countries, including a more coordinated effort to defeat Islamic State in Syria.

But as Russia has grown more assertive, including interfering in European politics and deploying missiles in its western Kaliningrad region and a new ground-launched cruise missile near Volgograd in southern Russia – an apparent violation of the 1987 Intermediate Nuclear Forces (INF) Treaty – relations have cooled, U.S. officials have said.

The chemical attack in Idlib province, one of the last major strongholds of rebels, who have fought since 2011 to topple Assad, complicates diplomatic efforts to end a war that has killed hundreds of thousands of people and driven half of Syrians from their homes.

Over the past several months, Western countries, including the United States, had been quietly dropping their demands that Assad leave power in any deal to end the war, accepting that the rebels no longer had the capability to topple him by force.

The use of banned chemical weapons would make it harder for the international community to sign off on any peace deal that does not remove him. Britain and France on Wednesday renewed their call for Assad to leave power.

(Additional reporting by Maria Tsvetkova and Polina Devitt in Moscow; Michelle Nichols at the United Nations and Lesley Wroughton and Steve Holland in Washington; writing by Peter Graff, Philippa Fletcher and Yara Bayoumy; Editing by Sonya Hepinstall, Louise Ireland and Lisa Shumaker)

Pittsburgh cafe finds politics and coffee can leave bitter taste

Nick Miller, co-owner of the Black Forge Coffee House punches a customer loyalty card for a patron in the Allentown neighborhood of Pittsburgh, Pennsylvania, U.S., March 31, 2017. REUTERS/Maranie Staab

By David DeKok

HARRISBURG, Pa. (Reuters) – The owners of a Pittsburgh coffee shop found out the hard way that in the hyper-polarized political climate of 2017, punching holes in pictures of President Donald Trump and other conservative stalwarts is no laughing matter for some.

The Black Forge Coffee Shop has been fielding phone calls this week from people around the country upset about the cafe’s customer loyalty cards featuring a who’s who of prominent conservatives, according to its owners.

The idea puts a topical twist on a familiar perk: Buy a coffee and the store punches a hole through a photo of Trump, Vice President Mike Pence or one of the others. After all 10 conservatives are punched, the customer gets a free cup.

“We wanted to do something unique that would stand out,” said Nick Miller, who has run the shop with his business partner Ashley Corts for about 18 months. “It’s not a statement; it’s really just a joke.”

More than a few people apparently were not amused.

While some people were calling the shop to voice their displeasure, others emailed images of the owners’ faces superimposed with targets. Disparging comments about the shop suddenly started popping up Facebook and Yelp.com.

“HORRIBLE PLACE,” Yelp user Alexis K. of Oceanside, California, wrote. “I refuse to support a busines who can act this way about our president who WE ELECTED fair and square.”

In addition to Trump and Pence, the cards feature the likenesses of Senator Ted Cruz and Rick Santorum, a former U.S. senator from Pennsylvania. Rounding out the gallery are five conservative commentators: Ann Coulter, Rush Limbaugh, Bill O’Reilly, Mike Huckabee and Pat Robertson, as well as controversial pharma executive Martin Shkreli.

The shop has been handing out the cards for months, but the deluge of calls, many of them abusive, only started after Fox News picked up the story on Wednesday, the co-owner says.

Fortunately, no one who has come into the shop in person has been abusive to the staff, said Miller, a Democratic voter.

It may help that Black Forge is next door to a Pittsburgh police stations, and many officers are regular customers, Miller said.

“They thought it was pretty funny,” he said. “They were surprised no one could see it was just a joke.”

Despite the ire that the cards have stirred up, Miller said he has no regrets. After all, publicity is publicity – and business is booming, he said.

(Editing By Frank McGurty and Cynthia Osterman)