First two U.S. troops from North Korean remains identified

Jennie Jin, a forensic anthropologist who leads the Korea War Project at the Defense POW/MIA Accounting Agency (DPAA), shows some of the objects that accompanied the human remains handed over by North Korea, including a wallet, buttons and canteens, at Joint Base Pearl Harbor-Hickam, Hawaii September 10, 2018. REUTERS/Phil Stewart

By Phil Stewart

JOINT BASE PEARL HARBOR-HICKAM (Reuters) – The U.S. military has identified the first two American troops from 55 boxes of human remains from the 1950-53 Korean War that North Korea handed over in July, the agency leading the analysis said on Monday.

The identities are expected to be officially announced in the coming days after the troops’ relatives are informed.

“We will notify the family first,” said John Byrd, director of scientific analysis at the U.S. Defense POW/MIA Accounting Agency, as he stood among the remains undergoing review in Hawaii.

President Donald Trump’s administration has hailed the handover of the remains as evidence of the success of his summit with North Koran leader Kim Jong Un in June. The White House said on Monday it was looking at scheduling a second meeting.

Critics, however, say the summit has so far failed to deliver on promised steps to get Kim to abandon his nuclear weapons program.

The identifications will chip away at the 7,699 U.S. troops who the U.S. military says remain unaccounted for from the Korean War. About 5,300 were lost in what is now North Korea.

Forensic anthropologists are combing through the remains at a secure facility on Joint Base Pearl Harbor-Hickam.

Byrd and Jennie Jin, who leads the agency’s Korean War Project, explained the painstaking identification process which includes methods for finding DNA in bone fragments.

Sampling for DNA analysis has been carried out so far on about half of the boxes of remains, they said. Some bone fragments are as small as a quarter. Other bones have decayed so much that they are little longer than a pencil.

‘HUGE BATTLE’

However, the sets of bones from the two soon-to-be-identified troops are far more complete.

“We noticed … within a few seconds of opening up the box, and pulling him out, that we think this individual is African American and tall and slender,” Byrd said. “And that kind of realization that we have was made possible because of the relatively more complete condition (of the remains).”

The remains of both servicemembers came from the same 1950 battlegrounds near the Chongchon River in what is present-day North Korea. U.S. troops suffered heavy casualties there against Chinese forces that had intervened in the war.

“It’s a huge battle,” said Jin, who estimated that 1,700 of the missing U.S. forces from the war came from that fight alone.

She spoke above tables of bone fragments, still separated with numbers corresponding with the 55 boxes.

Other tables included personal objects from soldiers that don’t have any identification on them, including buttons, canteens and old boots.

Byrd acknowledged that it could take months for the next round of identifications. “There could be some more and maybe right after Christmas,” he said.

Jin, a South Korean-born American citizen, said the work has a personal connection. Her grandfather, now 90, is a survivor of the war who came from one of the areas of present-day North Korea that saw some of the heaviest fighting. He was evacuated south on a U.S. Navy ship, she said.

“It’s really personal to me,” Jin said.

The July transfer coincided with the 65th anniversary of the 1953 armistice that ended fighting between North Korean and Chinese forces and South Korean and U.S.-led forces under the U.N. Command.

The two sides remain technically at war because a peace treaty was never signed.

The United States and North Korea conducted joint searches for remains from 1996 until 2005, when Washington halted the operations citing concerns about the safety of its personnel as Pyongyang stepped up its nuclear program.

(Reporting by Phil Stewart; Editing by Paul Tait and David Stamp)

North Korea’s Kim sets denuclearization time line, prompting thanks from Trump

Chief of the national security office at Seoul's presidential Blue House Chung Eui-yong meets with North Korean leader Kim Jong Un in Pyongyang, North Korea September 5, 2018. Picture taken September 5, 2018. The Presidential Blue House/Handout via REUTERS 


By Hyonhee Shin and Susan Heavey

SEOUL/WASHINGTON (Reuters) – North Korea’s Kim Jong Un has given his first timeline for denuclearization, aiming for the end of U.S. President Donald Trump’s first term, Seoul officials said on Thursday, prompting thanks from Trump who said they would “get it done together”.

Kim and South Korean President Moon Jae-in will also meet in Pyongyang on Sept. 18-20 for a third summit and discuss “practical measures” toward denuclearization, Moon’s national security adviser, Chung Eui-yong, said a day after meeting Kim.

The summit could provide renewed momentum to talks over denuclearization between North Korea and the United States, after Trump canceled a visit to Pyongyang by Secretary of State Mike Pompeo last month citing lack of progress.

Kim told South Korean officials his faith in Trump was “unchanged” and that he wanted denuclearization and an end to hostile relations with the United States before Trump’s first term in office ends in early 2021, Chung said.

“He particularly emphasized that he has never said anything negative about President Trump,” Chung said.

Trump welcomed Kim’s remarks in a trademark Tweet.

“Kim Jong Un of North Korea proclaims ‘unwavering faith in President Trump.’ Thank you to Chairman Kim. We will get it done together!” Trump wrote.

In previous, failed talks, North Korea has said it could consider giving up its nuclear program if the United States provided security guarantees by removing troops from South Korea and withdrawing its so-called nuclear umbrella of deterrence from the South and Japan.

U.S. officials involved in the latest negotiations have said North Korea has refused to even start discussions about defining denuclearization or other key terms such as “verifiable” and “irreversible”, and has insisted the United States must first agree to simultaneous steps to reduce economic pressure.

Pompeo, visiting New Delhi, declined to discuss the next steps but said there was a long road ahead in the denuclearization process.

Pompeo visited Pyongyang in July, after which North Korea accused him of making “unilateral and gangster-like demands for denuclearization” while showing little interest in ending the war.

“It is the case that there is still an enormous amount of work to do,” Pompeo told a news conference on Thursday.

Asked about U.S. intelligence that North Korea was still advancing its weapons programs, Pompeo noted that Pyongyang had ceased its nuclear tests and test-firing missiles, “which we consider a good thing.

“But the work of convincing Chairman Kim to make this strategic shift that we’ve talked about for a brighter future for the people of North Korea continues,” Pompeo said.

Moon’s national security adviser Chung said Kim had stressed the need for the United States to reciprocate North Korea’s initial moves, which have included dismantling a nuclear test site and a missile engine facility.

The U.S. embassy in Seoul said it had no information to share on the matter.

FRUSTRATION

North Korea’s official KCNA news agency said Kim told the South’s envoys that his “fixed stand” was to turn the Korean peninsula into “a cradle of peace without nuclear weapons, free from nuclear threat”.

Chung said Kim showed “frustration over the doubt raised by some parts of the international community about his willingness to denuclearize, and asked us to convey his message to the United States”.

“He said he would appreciate that such good faith is accepted with good faith,” Chung said. “He expressed his strong will to carry out more proactive measures toward denuclearization if action is taken in response to the North’s preemptive steps.”

U.S. officials have previously said they have already made concessions, such as halting joint military exercises with South Korea.

During his meeting with Kim, Chung delivered a message from Trump and will relay comments from Kim to U.S. National Security Advisor John Bolton, Moon’s spokesman, Kim Eui-kyeom, told reporters.

Trump spoke to Moon on the evening before Chung’s trip and asked Moon to act as “chief negotiator” between Washington and Pyongyang, the spokesman said.

WHAT HAPPENS FIRST?

Kim and Trump held a landmark summit in Singapore in June, in which they agreed to work toward complete denuclearization. But negotiations have made little progress, while signs North Korea has maintained work on its weapons have emerged.

Under discussion is whether denuclearization or declaring an end to the 1950-53 Korean War should come first.

The war ended with an armistice, not a peace treaty, meaning U.S.-led U.N. forces, including South Korea, are technically still at war with the North.

“The United States shouldn’t delay any further an end-of-war declaration, which the U.S. president promised at the Singapore summit,” the North’s official Rodong Sinmun newspaper said in an editorial.

U.S. officials have said such a declaration could weaken North Korea’s incentive for denuclearization, and create uncertainty about the purpose of 28,500 U.S. troops stationed in South Korea, a legacy of the three-year war.

“Looks like Kim is trying to wash away worries that talks could stall or fail, knowing well that Washington is losing patience,” said Koh Yu-hwan, a professor of North Korean Studies at Dongguk University in Seoul.

“Kim also made it clear that he needs some kind of proof Trump has abandoned the U.S.’s hostile policy before moving toward denuclearization. Kim is trying to prove his sincerity.”

(Additional reporting by Cynthia Kim Joyce Lee in SEOUL John Walcott and Susan Heavey in WASHINGTON and Phil Stewart in NEW DELHI; Writing by Soyoung Kim; Editing by Chris Cushing and Nick Macfie)

China defies U.S. pressure as EU parts ways with Iranian oil

A gas flare on an oil production platform in the Soroush oil fields is seen alongside an Iranian flag in the Persian Gulf, Iran, July 25, 2005. REUTERS/Raheb Homavandi/File Photo

By Chen Aizhu and Florence Tan

BEIJING/SINGAPORE (Reuters) – China, seeking to skirt U.S. sanctions, will use oil tankers from Iran for its purchases of that country’s crude, throwing Tehran a lifeline while European companies such as France’s Total are walking away due to fear of reprisals from Washington.

The United States is trying to halt Iranian oil exports in an effort to force Tehran to negotiate a new nuclear agreement and to curb its influence in the Middle East.

China, which has cut imports of U.S. crude amid a trade war with Washington, has said it opposes unilateral sanctions and defended its commercial ties with Iran.

On Monday, sources told Reuters Chinese buyers of Iranian oil were beginning to shift their cargoes to vessels owned by National Iranian Tanker Co (NITC) for nearly all their imports.

The shift demonstrates that China, Iran’s biggest oil customer, wants to keep buying Iranian crude despite the sanctions, which were reimposed after the United States withdrew in May from a 2015 agreement to halt Iran’s nuclear program.

“The shift started very recently, and it was almost a simultaneous call from both sides,” said one source, a senior Beijing-based oil executive, who asked not to be identified as he is not allowed to speak publicly about commercial deals.

Tehran used a similar system between 2012 and 2016 to circumvent Western-led sanctions, which had curtailed exports by making it virtually impossible to obtain shipping insurance for business with Iran.

Iran, OPEC’s third-largest oil producer, relies on sales of crude to China, Japan, South Korea, India and the EU to generate the lion’s share of budget revenues and keep its economy afloat.

The United States has asked buyers of Iranian oil to cut imports from November. Japan, South Korea, India and most European countries have already slashed operations.

French oil major Total, previously one of the biggest European buyers of Iranian oil, has said it had no choice but to halt imports and abandon Iranian projects to safeguard its operations in the United States.

On Monday, Iranian Oil Minister Bijan Zanganeh said Total had officially left Iran’s South Pars gas project.

Total later confirmed it had notified the Iranian authorities of its withdrawal from South Pars after it failed to obtain a waiver from U.S. sanctions.

Iranian officials had earlier suggested China’s state-owned CNPC could take over Total’s stake and Zanganeh said the process to replace the French company was under way.

“As for the future of Total’s share, we have not been informed of an official CNPC position, but as we have always said, CNPC, a Chinese state-owned company, has the right to resume our participation if it decides so,” Total said in an emailed statement.

WALK AWAY

French President Emmanuel Macron has repeatedly called for safeguarding the Iranian nuclear deal and defended the interests of EU companies in Iran.

But most European companies have conceded that they would be forced to walk away from Tehran for fear of sanctions and losing access to operations that require U.S. dollars.

The first round of U.S. sanctions, which included cutting off Iran and any businesses that trade with it from the U.S. financial system, went into effect on Aug. 7.

A ban on Iranian oil purchases will start in November. Insurers, which are mainly U.S.- or European-based, have begun winding down their Iranian business to comply with the sanctions.

To safeguard their supplies, state oil trader Zhuhai Zhenrong Corp and Sinopec Group, Asia’s biggest refiner, have activated a clause in long-term supply agreements with National Iranian Oil Corp (NIOC) that allows them to use NITC-operated tankers, four sources with direct knowledge of the matter said.

The price for oil under the long-term deals has been changed to a delivered ex-ship basis from the previous free-on-board terms, meaning Iran will cover all costs and risks of delivering the crude as well as handling the insurance, they said.

In July, all 17 tankers chartered to carry oil from Iran to China were operated by NITC, according to shipping data on Thomson Reuters Eikon. In June, eight of 19 vessels chartered were Chinese-operated.

Last month, those tankers loaded about 23.8 million barrels of crude oil and condensate destined for China, or about 767,000 barrels per day (bpd). In June, the loadings were 19.8 million barrels, or 660,000 bpd.

In 2017, China imported an average of 623,000 bpd, according to customs data.

Sinopec declined to comment. A spokesperson for Nam Kwong Group, the parent of Zhenrong, declined to comment.

NIOC did not respond to an email seeking comment. An NITC spokesman said it would forward a request from Reuters for a comment to the country’s Ministry of Culture and Islamic Guidance.

It was not immediately clear how Iran would provide insurance for the Chinese oil purchases, worth some $1.5 billion a month. Insurance usually includes cover for the oil cargoes, third-party liability, and pollution.

(Additional reporting by Parisa Hafezi in Ankara and Cyril Altmeyer in Paris; Writing by Dmitry Zhdannikov; Editing by Dale Hudson)

Joy, disbelief as Korean families separated by war meet after 65 years

North and South Korean family members meet during a reunion at North Korea's Mount Kumgang resort, near the demilitarized zone (DMZ) separating the two Koreas, North Korea, August 20, 2018. Yonhap via REUTERS

By Hyonhee Shin

SEOUL (Reuters) – About 90 families from North and South Korea wept and embraced on Monday as the neighbors held their first reunion events in three years for relatives wrenched apart by the Korean War for more than six decades.

The brief reunions are set to total just 11 hours over the next three days in the North’s tourist resort of Mount Kumgang after the neighbors renewed exchanges this year following a standoff over Pyongyang’s nuclear and missile programs.

North Korean leader Kim Jong Un and South Korean President Moon Jae-in agreed to the reunion events at a summit in April.

About 330 South Koreans from 89 families, many in wheelchairs, embraced 185 separated relatives from the North with tears, joy, and disbelief. Some struggled to recognize family not glimpsed in more than 60 years.

A man selected as a participant for a reunion shows pictures of his deceased mother and little brothers living in North Korea, at a hotel used as a waiting place in Sokcho, South Korea, August 19, 2018. REUTERS/Kim Hong-Ji

A man selected as a participant for a reunion shows pictures of his deceased mother and little brothers living in North Korea, at a hotel used as a waiting place in Sokcho, South Korea, August 19, 2018. REUTERS/Kim Hong-Ji

“How are you so old?” Kim Dal-in, 92, asked his sister, Yu Dok, after gazing at her briefly in silence.

“I’ve lived this long to meet you,” replied the 85-year-old, wiping away tears as she clasped a photograph of her brother in his youth.

Siblings Kim Gyong Sil, 72 and Gyong Yong, 71, wearing the traditional hanbok dress, colored pale violet, stood nervously staring at the entrance, awaiting their 99-year-old mother Han Shin-ja. They could not speak for minutes, wailed loudly and rubbed their cheeks and hands.

“When I fled home in the war…,” Han said, faltering as she choked with emotion and left her sentence incomplete.

The separated families are victims of a decades-long political gridlock since the 1950-53 war ended in a truce rather than a peace treaty, with ties increasingly strained as Pyongyang rapidly stepped up its weapons programs.

More than 57,000 South Korean survivors have registered for the family reunions, which usually end in painful farewells.

For years, Seoul has called for regular meetings between separated families, including the use of video conferences, but the program often fell victim to fragile ties.

At his historic June summit with U.S. President Donald Trump in June, Kim pledged to abandon his country’s nuclear programs if Washington provided security guarantees, but the two sides have since struggled to agree how to reach that goal.

The reunions should be scaled up sharply, held regularly, and include exchanges of visits and letters, said Moon, himself a member of a separated family from the North’s eastern port city of Hungnam.

“It is a shame for both governments that many of the families have passed away without knowing whether their lost relatives were alive,” he told presidential secretaries at a meeting.

Lee Geum-seom, who has been selected as a participant for a reunion, is helped by volunteers as she arrives at a hotel used as a waiting place in Sokcho, South Korea, August 19, 2018. REUTERS/Kim Hong-Ji

Lee Geum-seom, who has been selected as a participant for a reunion, is helped by volunteers as she arrives at a hotel used as a waiting place in Sokcho, South Korea, August 19, 2018. REUTERS/Kim Hong-Ji

“Expanding and accelerating family reunions is a top priority.”

Ninety-three families from both sides of the border had been initially due to hold a three-day gathering from Monday, but four South Korean members canceled at the last minute because of poor health, the Red Cross said.

From Thursday, 88 more groups of relatives will meet, comprised of 469 individuals from the South and 128 from the North, Seoul’s Unification Ministry says.

For Lee Jong-shik, 81, Monday’s reunion was a hard-won second chance to track down his younger brother, Ri Chong Song, after the failure of a 2009 effort when a different individual showed up, to the dismay of the family from the South.

“I tried so hard, too, searching for you for seven years,” Ri told his brother.

The participants included the families of a prisoner of war and five people abducted by North Korean authorities during the conflict, though the six South Koreans they had hoped to meet had died.

The reunions, which began in 1985, can be a traumatic experience, say survivors, who know they are unlikely to see their relatives again since many are 80 or older and first-timers typically get priority for visits.

About 132,600 individuals were listed as separated families by the end of July. Of the 57,000 survivors, 41.2 percent are in their 80s and 21.4 percent in their 90s, government data show.

The oldest South Korean participant is 101-year-old Baek Seong-gyu, who was reunited with his daughter-in-law and granddaughter.

“Most participants are elderly and many suffer from hypertension, diabetes and have underlying medical conditions,” said physician Han Sang-jo. “Ahead of the reunions, we are thoroughly checking their health.”

Many brought gifts of clothing, medicine, and food for their North Korean relatives since anything deemed extravagant by Pyongyang was unlikely to pass muster.

Moon Hyun-sook, 91, said she put together clothes, cosmetics, and medicine for her two sisters, younger than she is by 12 and 26 years.

“Whenever I saw pretty clothes, I always thought how cute they would look in them,” she said.

(Reporting by Hyonhee Shin and Joyce Lee in SEOUL, Hyun Young Yi in SOKCHO, and Joint Press Corps; Editing by Soyoung Kim and Clarence Fernandez)

South Korea’s diehard Trump supporters hail ‘guardian of liberty’

A member of a conservative right-wing civic group attends an anti-North Korea and pro-U.S. protest in Seoul, South Korea, August 4, 2018. REUTERS/Kim Hong-Ji

By Jeongmin Kim and Minwoo Park

SEOUL (Reuters) – Every time an image of U.S. President Donald Trump appears on TV in South Korea, 69-year-old Vietnam War veteran Chung Seung-jin solemnly salutes.

The U.S. flag Chung keeps in his home in Seoul gets similar respect every morning.

Vietnam War veteran Chung Seung-jin poses for photographs after an interview with Reuters at his home in Suwon, South Korea, July 31, 2018. REUTERS/Kim Hong-Ji

Vietnam War veteran Chung Seung-jin poses for photographs after an interview with Reuters at his home in Suwon, South Korea, July 31, 2018. REUTERS/Kim Hong-Ji

“I salute President Trump and the U.S. flag every day to show how much I trust him,” Chung told Reuters as he attended a recent anti-North Korea rally in the sweltering summer heat in downtown Seoul.

“I salute to pay respect to Mr. Trump, supporting his reign as the leader of the world and guardian of liberty.”

For many South Korean conservatives who liked Trump’s initial tough talk against North Korea’s Kim Jong Un, his abrupt embrace of the autocratic leader at their historic Singapore summit in June was nothing short of a betrayal.

Trump, who ridiculed Kim as “rocket man” last year, has since called the North Korean leader “funny” and “smart” and even praised his ability to retain his authoritarian grip on power.

“Trump said Kim is an ‘amazing leader’, thus legitimizing him. This makes us, the patriotic citizens, feel betrayed,” said Cho Won-jin, leader of the right-wing Korean Patriots’ Party.

Members of a conservative right-wing civic group attend an anti-North Korea and pro-U.S. protest in Seoul, South Korea, August 4, 2018. REUTERS/Kim Hong-Ji

Members of a conservative right-wing civic group attend an anti-North Korea and pro-U.S. protest in Seoul, South Korea, August 4, 2018. REUTERS/Kim Hong-Ji

But for a colorful handful of Trump supporters who gather regularly on the streets of Seoul to call for aggressive action against North Korea, faith in the U.S. president is unshaken.

“I have saluted Trump today as always with utmost sincerity,” said 76-year-old demonstrator Lee Yoon-jo, nodding at a large picture of a beaming Trump at a demonstration in downtown Seoul.

As he saluted, demonstrators held giant U.S. and South Korean flags in front of the U.S. embassy, alongside banners in Korean and English reading “The United States is a thankful brother country that has been devoted to a free Korea”.

Gratitude for U.S. support in the 1950-1953 Korean War, as well as anti-communist rhetoric used by the South’s military rulers in the 1970s still resonate with many older South Koreans, said analyst Jeong Chan-dae of Sungkonghoe University.

“To these elderly conservatives, the U.S. is more than just an ally and more of a ‘savior’,” he said.

Holding a faded black-and-white photograph from his time he fought alongside American allies in the Vietnam War in 1968, Chung said: “Without the U.S., South Korea would never have been able to exist.”

Trump and Kim met in Singapore in June, where they announced an agreement in which Kim reaffirmed his “unwavering” commitment to denuclearize. Little progress on that front has been made in the weeks since.

A Gallup Korea poll conducted just after the summit found 48 percent of South Korean conservatives thought the meeting went well, compared to 79 percent of progressives.

Standing on a corner in Seoul, surrounded by flags and anti-North Korean banners, the small knot of demonstrators are unfazed by the shift in tone, noting that Trump could still resort to “regime change” if a denuclearisation deal doesn’t pan out.

“President Trump has always masterfully guided and protected South Korea and the free world and always will,” Lee said, again giving a military salute. “Thank you, Mr. President.”

(Reporting by Jeongmin Kim and Minwoo Park; Writing by Josh Smith; Editing by Nick Macfie)

When to end the war? North Korea, U.S. at odds over path to peace

FILE PHOTO: U.S. President Donald Trump shows the document, that he and North Korea's leader Kim Jong Un signed acknowledging the progress of the talks and pledge to keep momentum going, after their summit at the Capella Hotel on Sentosa island in Singapore June 12, 2018. At right is U.S. Secretary of State Mike Pompeo. REUTERS/Jonathan Ernst/File Photo

By Josh Smith

SEOUL (Reuters) – Washington’s reluctance to declare an end to the Korean War until after North Korea abandons its nuclear arsenal may put it at odds not only with Pyongyang, but also with allies in South Korea.

The 1950-1953 Korean War ended in an armistice rather than a peace treaty, leaving the U.S.-led United Nations forces technically still at war with North Korea.

Friday marks 65th anniversary of the truce, which will be commemorated by the United Nations Command in a ceremony in the fortified demilitarized zone that has divided the two Koreas since the war. North Korean veterans of the war, which left more than 1.2 million dead, will gather in Pyongyang for a conference.

In their April summit, the leaders of North and South Korea agreed to work this year with the United States and China, which also played a major role in the war, to replace the armistice with a peace agreement.

In June, U.S. President Donald Trump and North Korean leader Kim Jong Un signed a statement saying they would seek “to establish new U.S.–DPRK relations in accordance with the desire of the peoples of the two countries for peace and prosperity,” using the initials of the North Korea’s official name, the Democratic People’s Republic of Korea.

Kim has broadly committed to the “denuclearization of the Korean peninsula” if the United States and its allies drop their “hostile” policies and the North has made clear it sees an official end to the state of war as crucial to lowering tensions.

Many experts and officials in Washington, however, fear signing a peace deal first could erode the international pressure they believe led Kim to negotiate. It could also endanger the decades-long U.S. military alliance with South Korea, and may undermine the justification for the U.S. troops based on the peninsula.

“Broadly speaking, one side wants denuclearization first, normalization of relations later, and the other wants normalization of relations first, then denuclearization later,” said Christopher Green, a senior advisor at the International Crisis Group.

North Korea says it has taken steps to halt its nuclear development, including placing a moratorium on missile and nuclear bomb testing, demolishing its only known nuclear test site, and dismantling a rocket facility.

American officials have praised those moves, but remain skeptical. U.S. Secretary of State Mike Pompeo told Congress on Wednesday North Korea was continuing to produce fuel for nuclear bombs.

A spokesperson for the U.S. State Department said while “peace on the Korean Peninsula is a goal shared by the world,” the international community would not accept a nuclear armed North Korea.

“As we have stated before, we are committed to building a peace mechanism with the goal of replacing the Armistice agreement when North Korea has denuclearized,” the spokesperson said in an emailed statement.

DOUBTS ON BOTH SIDES

In recent weeks Pyongyang has renewed calls for a declaration of the end of the war, calling it the “first process for peace” and a key way the United States can add heft to its guarantees of security.

“The adoption of the declaration on the termination of war is the first and foremost process in the light of ending the extreme hostility and establishing new relations between the DPRK and the U.S.,” North Korean state media said in a statement on Tuesday.

After Pompeo visited Pyongyang in June for talks, state media quoted a spokesman for the North’s Ministry of the Foreign Affairs criticizing the U.S. delegation for not mentioning the idea of a peace regime.

“It seems quite obvious that even if North Korea is negotiating sincerely, they aren’t going to be willing to give up their nuclear capacity in the absence of a peace system that gives them regime security,” Green said.

Many officials in Washington appeared concerned that an early declaration of peace could lead to the collapse of the U.S.-South Korea alliance with calls for U.S. troops to leave the Korean peninsula, he added.

OTHER PLAYERS

South Korean leaders in 1953 opposed the idea of a truce that left the peninsula divided, and were not signatories to the armistice. The treaty was signed by the commander of North Korea’s army, the American commander of the U.N. Command, and the commander of the “Chinese People’s volunteers”.

While South Korean officials say they are committed to the full denuclearization of North Korea, they have shown more flexibility in the timing of a peace agreement than their U.S. allies.

South Korea’s Unification Minister Cho Myoung-gyon said on Tuesday it is possible to declare an end to war this year.

“We are in consultations with the North and the United States in that direction,” he told a parliamentary session, adding that a three-way declaration would be part of an initial phase of denuclearization.

China says it is open to participating in the process.

Meeting North Korean Foreign Minister Ri Yong Ho in Pyongyang on Thursday, Chinese Vice Foreign Minister Kong Xuanyou said China supported the reconciliation process between the North and the United States, China’s Foreign Ministry said.

China is willing to work hard with all sides to promote the process of establishing a “peace mechanism” for the Korean peninsula, Kong added, without elaborating.

(Additional reporting by Hyonhee Shin in Seoul and Ben Blanchard in Beijing; Editing by Lincoln Feast and Clarence Fernandez)

Japan’s heat wave drives up food prices, prison inmate dies

A woman uses a parasol on the street during a heatwave in Tokyo, Japan July 25, 2018. REUTERS/Kim Kyung-Hoon

TOKYO (Reuters) – Vegetable prices in Japan are spiking as much as 65 percent in the grip of a grueling heat wave, which drove temperatures on Wednesday to records in some areas hit by flooding and landslides, hampering clean-up and recovery efforts.

As many as 65 people died in the week to July 22, up from 12 the previous week, government figures show, while a prisoner in his forties died of a heat stroke in central Miyoshi city, amid what medical experts called an “unprecedented” heat wave.

An agriculture ministry official in Tokyo, the capital, warned against “pretty severe price moves” for vegetables if predictions of more weeks of hot weather held up, resulting in less rain than usual.

“It’s up to the weather how prices will move from here,” the official said. “But the Japan Meteorological Agency has predicted it will remain hot for a few more weeks, and that we will have less rain than the average.”

The most recent data showed the wholesale price of cabbage was 129 yen ($1.16) per kg in Tokyo on Monday, the ministry said, for example, an increase of 65 percent over the average late-July price of the past five years.

Temperatures in Japan’s western cities of Yamaguchi and Akiotacho reached record highs of 38.8 Celsius (101.8 Fahrenheit) and 38.6 C (101.5 F), respectively, on Wednesday afternoon.

In Takahashi, another western city and one of the areas hit hardest by this month’s flooding, the mercury reached 38.7 C (101.7 F), just 0.3 degrees off an all-time high.

In Miyoshi, where the prisoner died after a heat stroke, the temperature on the floor of his cell was 34 degrees C (93 F) shortly before 7 a.m. on Tuesday. The room had no air-conditioning, like most in the prison.

Authorities who found him unresponsive in his cell sent him to a hospital outside the prison, but he was soon pronounced dead, a prison official said.

“It is truly regrettable that an inmate lost his life,” Kiyoshi Kageyama, head of the prison, said in a statement. “We will do our utmost in maintaining (prisoners’) health, including taking anti-heat stroke steps.”

On the Tokyo stock market, shares in companies expected to benefit from a hot summer, such as ice-cream makers, have risen in recent trade.

Shares in Imuraya Group, whose subsidiary sells popular vanilla and red-bean ice cream, were up nearly 10 percent on the month, while Ishigaki Foods, which sells barley tea, surged 50 percent over the same period.

Kimono-clad women using sun umbrellas pause on a street during a heatwave in Tokyo, Japan July 25, 2018. REUTERS/Issei Kato

Kimono-clad women using sun umbrellas pause on a street during a heatwave in Tokyo, Japan July 25, 2018. REUTERS/Issei Kato

In neighboring South Korea, the unremitting heat has killed at least 14 people this year, the Korea Centers for Diseases Control and Prevention said.

The heat wave was at the level of a “special disaster”, South Korean President Moon Jae-in said on Tuesday, as electricity use surged and vegetable prices rose.

(Reporting by Kiyoshi Takenaka in Tokyo and Jeongmin Kim in SEOUL; Additional reporting by Ritsuko Ando and Aaron Sheldrick in TOKYO; Editing by Clarence Fernandez)

Exclusive: North Korean fuel prices drop, suggesting U.N. sanctions being undermined

FILE PHOTO: North Koreans take a truck through a path amongst the fields, along the Yalu River, in Sakchu county, North Phyongan Province, North Korea, June 20, 2015. REUTERS/Jacky Chen/File Photo

By Hyonhee Shin

SEOUL (Reuters) – Gasoline prices in North Korea have nearly halved since late March, market data analyzed by Reuters shows, adding weight to suspicions that fuel is finding its way into the isolated economy from China and elsewhere despite U.N. sanctions.

The United Nations Security Council passed a resolution in December to ban nearly 90 percent of refined petroleum exports to North Korea over its nuclear and missile programs.

But as North Korean leader Kim Jong Un has moved to improve relations with the United States, China and South Korea, concerns have grown that the policy of “maximum pressure” through sanctions and isolation, is losing steam.

Kim and U.S. President Donald Trump agreed to work toward denuclearization at their summit in Singapore on June 12. Experts say any fuel aid in breach of sanctions could erode the diplomatic progress.

China said on Tuesday it strictly abided by U.N. sanctions, but indicated it may have resumed some fuel shipments to North Korea in the second quarter of this year.

Gasoline was sold by private dealers in the North Korean capital Pyongyang at about $1.24 per kg as of Tuesday, down 33 percent from $1.86 per kg on June 5 and 44 percent from this year’s peak of $2.22 per kg on March 27, according to Reuters analysis of data compiled by the Daily NK website. Diesel prices are at $0.85 per kg, down about 17 percent from March.

The website is run by North Korean defectors who collect prices via phone calls with multiple traders in the North after cross-checks to corroborate their information, offering a rare glimpse into the livelihoods of ordinary North Koreans.

In North Korea, gas is sold via informal channels such as street stalls and informal markets and by weight rather than by volume, as it is in South Korea, the United States and elsewhere, so North Koreans prefer to quote “per kg” rates, said Kang Mi-jin, who works at Daily NK. A 200 liter barrel of petrol holds around 180 kg.

U.S. prices stand at around 75 cents per liter or $2.839 per gallon.

“My assessment is that there was a greater inflow (of fuel supplies) from abroad, especially China since Kim’s trips there,” said Kang, who speaks regularly to sources inside North Korea.

Kim first visited China to meet President Xi Jinping in March, and they held two more summits, in May and June.

SANCTIONS

The latest fuel data comes amid mounting suspicion in Washington that North Korea may be using the recent diplomatic thaw to get a lifeline from China.

North Korea gets most of its fuel from China, its biggest trading partner, and some from Russia. Washington and Seoul officials have said the North imports some 4.5 million barrels of refined petroleum products and 2 million barrels of crude oil each year.

Last year’s U.N. resolution capped refined imports at 500,000 barrels a year.

Chinese Foreign Ministry spokesman Geng Shuang told reporters on Tuesday that China has consistently and strictly abided by U.N. Security Council resolutions on North Korea.

China had exported 7,432 tonnes of refined oil products to North Korea in the first six months of this year, out of a total of 60,000 tonnes a year stipulated by the U.N. sanctions.

China had reported its exports to the Security Council’s sanctions committee in a timely manner, Geng added.

“The relevant situation is totally open and transparent,” he said, without elaborating.

Since official Chinese customs data showed no gasoline and diesel exports to North Korea from January to March, Geng’s comments suggested China resumed some shipments some time after Kim and Xi’s first meeting.

Overall, China’s trade with North Korea in the first half of this year tumbled 56 percent on the back of the tightening sanctions, customs data showed on Monday.

Last week, U.S. Secretary of State Mike Pompeo accused North Korea of “illegally smuggling petroleum products into the country at a level that far exceeds quotas” established by the UN.

“Illegal ship-to-ship transfers are the most prominent means by which this is happening. Every UN member state must step up enforcement,” he wrote on Twitter, without naming any country.

China and Russia delayed a U.S. push last week for a UN Security Council panel to order a halt to refined petroleum exports to North Korea, asking for more detail on a U.S. accusation that Pyongyang breached sanctions, diplomats said.

The United States provided a list to the committee earlier this month of 89 illicit North Korean transactions and a few select photos, seen by Reuters.

Seoul’s foreign ministry said last week that the authorities were investigating two ships with Panama and Sierra Leone flags suspected to have illegally transferred North Korean coal into South Korea via Russia.

NO MAJOR SUFFERING

North Korean rice prices have also been stable since a spike last September, when the UN Security Council imposed new sanctions. Rice has hovered around $0.62 per kg throughout this year.

Stable fuel and rice prices suggest no immediate signs of major suffering in North Korea despite South Korea’s recent estimates the impoverished state’s economy contracted at its sharpest rate in two decades last year.

South Korea’s central bank said North Korea’s gross domestic product shrank 3.5 percent last year, marking the biggest decline since 1997, citing international sanctions and drought.

While other defectors reported some suffering in remote rural regions, Daily NK’s Kang said fuel demand has been steady in North Korea, and overall living conditions have improved in line with a booming unofficial market economy.

The unofficial markets, known as jangmadang, have grown to account for about 60 percent of the economy, according to the Institute for Korean Integration of Society.

“I’ve seen signs the economy was slowly improving over the past five years, and in last year things are still developing but perhaps not as fast as before,” a Western consultant who makes regular trips to North Korea told Reuters.

Kim, who vowed not to let the people “tighten their belt again” in his first-ever public speech in 2012, announced in April a shift in focus from nuclear programs to the economy. Analysts say that will be difficult while sanctions remain in place.

“I don’t think there is an outcry in the markets now, but there could be one toward the end of this year,” said Kim Byeong-yeon, a North Korea economy specialist at the Seoul National University.

(Reporting by Hyonhee Shin. Additional reporting by Josh Smith and Cynthia Kim in SEOUL and Ben Blanchard in BEIJING. Editing by Lincoln Feast.)

South Korea says sanctions shrank North Korean economy at sharpest rate in 20 years

FILE PHOTO: A North Korean man is photographed from the Chinese side of the border near the town of Changbai, China as he rides a bicycle along the Yalu River in the North Korean town of Hyesan, November 23, 2017. REUTERS/Damir Sagolj/File Photo

By Cynthia Kim and Hayoung Choi

SEOUL (Reuters) – North Korea’s economy contracted at the sharpest rate in two decades in 2017, South Korea’s central bank estimated on Friday, as international sanctions and drought hit growth hard, with signs living conditions were beginning to deteriorate.

Gross domestic product (GDP) in North Korea last year shrank 3.5 percent from the previous year, marking the biggest decline since a 6.5 percent drop in 1997 when the isolated nation was hit by a devastating famine, the Bank of Korea said.

North Korea does not publish economic data, and comprehensive public figures on social conditions are nonexistent.

However, analysts believe wider sanctions last year are likely to make the economic deterioration in 2018 worse than 2017, which could add to humanitarian need in the politically isolated state.

“The sanctions were stronger in 2017 than they were in 2016,” Shin Seung-cheol, head of the BOK’s National Accounts Coordination Team said.

“External trade volume fell significantly with the exports ban on coal, steel, fisheries and textile products. It’s difficult to put exact numbers on those but (export bans) crashed industrial production,” Shin said.

Both Seoul and Washington argue that increasingly strict international sanctions imposed over North Korea’s nuclear weapon and ballistic missile program have been instrumental in leader Kim Jong Un’s decision to impose a ban on weapons testing and to negotiate with international leaders.

North Korea has called the sanctions “vicious” but rejects suggestions that the pressure led them to pursue diplomatic talks.

The situation also worsened last year with international experts fearing North Korea was facing the worst drought in 16 years, though late summer rains helped avoid acute food shortages.

North Korean leader Kim Jong Un in April vowed to switch the country’s strategic focus from the development of its nuclear arsenal jump starting his economy, but analysts say that will be difficult while sanctions remain in place.

“As long as exports of minerals are part of the sanctions, by far the most profitable item of its exports, Pyongyang will have no choice but to continue with its current negotiations with the U.S.,” said Kim Byeong-yeon, an economics professor at the Seoul National University who specializes in the North Korean economy.

U.S. President Donald Trump has said that sanctions won’t be lifted until Kim moves to give up his nuclear and missile arsenal.

INDUSTRY TAKES A HIT

North Korea’s coal-intensive industries and manufacturing sectors have suffered as the UN Security Council ratcheted up the sanctions in response to years of nuclear tests by Pyongyang.

Industrial production, which accounts for about a third of the nation’s total output, fell 8.5 percent. That marked the steepest decline since 1997 as factory production collapsed on restrictions of flows of oil and other energy resources into the country. Output from agriculture, construction industries fell by 1.3 percent and 4.4 percent, respectively.

China, its biggest trading partner, suspended coal purchases last year which cut North Korea’s main export revenue source while its suspended fuel sales into to country sparked a surge in gasoline and diesel prices, data reviewed by Reuters showed earlier.

Since then, however, fuel prices have stabilized and even dropped in recent weeks, according to a report published last week on the North Korean Economy Watch website.

“My best guess is that it’s a combination of increased smuggling, perhaps aided by China’s declining vigilance in enforcing sanctions and restrictions against illicit trade across the border,” analyst Benjamin Katzeff Silberstein wrote in the report.

North Korea’s black market, or Jangmadang, has grown to account for about 60 percent of the economy, according to the Institute for Korean Integration of Society.

“Shrinking trade first hits the Kim regime and top officials, and then later affects unofficial markets,” said Kim at Seoul National University, noting the squeeze would also be felt in household income and private consumption.

China’s total trade with North Korea dropped 59.2 percent in the first half of 2018 from a year earlier, China’s customs data showed last week.

The BOK uses figures compiled by the government and spy agencies to make its economic estimates. The bank’s survey includes monitoring of the size of rice paddy crops in border areas, traffic surveillance, and interviews with defectors.

HUMAN TOLL

Prices for food staples like rice and corn have remained stable under changing sanctions, and there are signs that a growing number of North Koreans have access to electronic appliances, often powered by solar panels, according to data gathered by the DailyNK website.

North Korean defectors in the South, however, say they hear reports of increased suffering.

“The economic status in Hamgyong area was very bad, according to my sources within North Korea,” said Kim Seung-cheol, a defector who heads the NK Reform Radio station in Seoul, referencing an area near the border with China.

“In South Hamgyong, some people died of hunger. Since trade with China fell significantly, foreign traders in the border area are suffering from poverty.”

The United Nations’ top aid official visited the country last week and said there was “clear evidence of humanitarian need.”

Other U.N. officials warn that aid groups face difficulties accessing international banking channels, transporting goods into the North Korea, while rising fuel prices hinder aid delivery.

North Korea’s Gross National Income per capita stands at 1.46 million won ($1,283.52), making it about 4.4 percent the size of South Korea’s, the BOK said.

Overall exports from North Korea dropped 37.2 percent in 2017, marking the biggest fall since a 38.5 percent decline in 1998, the BOK said on Friday, citing data from the Korea Trade-Investment Promotion Agency.

($1 = 1,137.5000 won)

(Additional reporting by Cynthia Kim,; Editing by Sam Holmes)

South Korea scraps annual government war drill as talks with North go on

FILE PHOTO - South Korean President Moon Jae-in and North Korean leader Kim Jong Un meet in the truce village of Panmunjom inside the demilitarized zone separating the two Koreas, South Korea, April 27, 2018. Korea Summit Press Pool/Pool via Reuters

SEOUL (Reuters) – South Korea said on Tuesday it has decided to scrap an annual government mobilization drill this year as part of a suspended joint exercise with the United States but will carry out its own drills to maintain readiness. The ministers of safety and defense made the announcement at a media briefing on Tuesday. The drill, called the Ulchi exercises, usually takes place every August in tandem with the joint Freedom Guardian military drill with the United States.

Seoul and Washington said in June they would halt the joint exercise after U.S. President Donald Trump pledged to end war games following his summit with North Korean leader Kim Jong Un in Singapore on June 12.

Seoul’s presidential office has said the suspension of the combined exercise could facilitate ongoing nuclear talks between North Korea and the United States.

South Korea would develop a new drill model by incorporating Ulchi and the existing Taeguk command post exercises, which would be aimed at fighting militancy and large-scale natural disasters, the ministers said.

That incorporated exercise would be launched in October when the Hoguk field training drill takes place, the ministers said.

“Our military will carry out planned standalone drills this year and decide on joint exercises through close consultations with the United States,” Defence Minister Song Young-moo said.

(Reporting by Hyonhee Shin, Christine Kim; Editing by Paul Tait)