North Korea’s Kim Jong Un to meet Putin in Russia on Thursday: Kremlin

A combination of file photos shows North Korean leader Kim Jong Un attending a wreath laying ceremony at Ho Chi Minh Mausoleum in Hanoi, Vietnam March 2, 2019 and Russia's President Vladimir Putin looking on during a joint news conference with South African President Jacob Zuma after their meeting at the Bocharov Ruchei residence in the Black Sea resort of Sochi, Krasnodar region, Russia, May 16, 2013. REUTERS/Jorge Silva/Pool/Maxim Shipenkov/Pool

By Vladimir Soldatkin and Maria Vasilyeva

MOSCOW/VLADIVOSTOK, Russia (Reuters) – North Korean leader Kim Jong Un and Russian President Vladimir Putin will meet on Thursday in the Russian Pacific port of Vladivostok to discuss the international standoff over Pyongyang’s nuclear program, a Kremlin official said.

The visit is part of Kim’s effort to build foreign support after the breakdown of a second U.S.-North Korea summit in Vietnam in February meant no relief on sanctions for North Korea, analysts said.

The summit will be the first between Putin and the North Korean leader and the nuclear row, and how to resolve it, would be the main item on the agenda, Kremlin aide Yuri Ushakov told reporters.

“In the last few months the situation around the peninsula has stabilized somewhat, thanks in large part to North Korea’s initiatives of stopping rocket testing and closing its nuclear test site,” Ushakov said. “Russia intends to help in any way possible to cement that positive trend.”

The North’s Korean Central News Agency (KCNA) said on Tuesday the visit would happen soon, but did not elaborate on a time or location.

Kim’s chief aide, Kim Chang Son, was seen in Vladivostok on Sunday, according to South Korea’s Yonhap news agency.

Vladivostok is the closest major Russian city to the short stretch of border that Russia and North Korea share, and can be reached from the border via train, Kim’s preferred mode of international transport.

Russia has for years been involved in efforts to persuade North Korea to give up its nuclear program. It was involved in so-called six party talks – along with the two Koreas, Japan, the United States and China – that were last held in 2009.

South Korea’s foreign ministry said it understood the agenda would include Russia-North Korea relations, denuclearisation, and regional cooperation.

“Russia shares our viewpoints such as the achievement of complete denuclearisation on the Korean Peninsula and the settlement of permanent peace,” foreign ministry spokesman Kim In-chul said in Seoul.

“I hope that the summit will be an opportunity that contributes to positive progress.”

RUSSIAN PRESTIGE

After the failed Hanoi summit with U.S. President Donald Trump, Kim is probably looking to prove that he is still sought after by world leaders, and that he has more options, said Artyom Lukin, a professor at Far Eastern Federal University.

Kim did not want to look too dependent on Washington, Beijing and Seoul, he said.

“As for Russia, the Putin-Kim summit will reaffirm Moscow’s place as a major player on the Korean Peninsula. This meeting is important for Russian international prestige.”

Putin previously held a summit in Russia with Kim Jong Un’s father and predecessor as North Korean leader, Kim Jong Il, in 2002. Kim Jong Il visited Russia again in 2011, when he was hosted by Dmitry Medvedev, the Putin lieutenant who at the time was serving as Russian president.

Online media which monitor North Korea reported that the venue for the summit would be the Far Eastern Federal University, on an island that is connected to the mainland part of Vladivostok by a bridge.

The bridge was built in time for the 2012 Asia-Pacific Cooperation Summit, which took place on the same site that now houses the university.

At the university campus on Tuesday, the sports complex had been closed and workers were seen bringing in pieces of furniture, a Reuters TV crew at the site reported. A white tent had been erected next to the sports complex.

At the entrance to the campus, security guards were stopping vehicles as they drove in, and searching them. There were no signs of preparation at Vladivostok railway station.

But at Khasan, a Russian settlement where the train line crosses the border, the state flags of Russia and North Korea were fluttering from the station building on Tuesday. A set of mobile steps for alighting from a train was positioned on the platform edge.

(Additional reporting by Joyce Lee and Josh Smith in SEOUL; Maxim Rodionov in MOSCOW; Writing by Christian Lowe; Editing by Angus MacSwan)

Trump says U.S.-China trade deal may be reached in four weeks

U.S. President Donald Trump talks with with China's Vice Premier Liu He in the Oval Office of the White House in Washington, U.S., April 4, 2019. REUTERS/Jonathan Ernst

By Jeff Mason and David Lawder

WASHINGTON (Reuters) – U.S. President Donald Trump said on Thursday the United States and China were close to a trade deal that could be announced within four weeks, while warning Beijing that it would be difficult to allow trade to continue without a pact.

The two countries are engaged in intense negotiations to end a months-long trade war that has rattled global markets, but hopes of a resolution soared after both sides expressed optimism following talks in Beijing last week.

Speaking to reporters at the White House at the start of a meeting with Chinese Vice Premier Liu He, Trump said some of the tougher points of a deal had been agreed but there were still differences to be bridged.

“We’re getting very close to making a deal. That doesn’t mean a deal is made, because it’s not, but we’re certainly getting a lot closer,” Trump said in the Oval Office.

“And I would think with, oh, within the next four weeks or maybe less, maybe more, whatever it takes, something very monumental could be announced.”

Trump said he would hold a summit with Chinese President Xi Jinping if there were a deal.

Xi assured Trump that text of the China-U.S. trade could be finalized soon, in a message conveyed by Liu He.

According to state-run news agency Xinhua, Liu He told Trump that Xi believed under his and Trump’s leadership, China-U.S. relations will make new and greater progress.

Xi said that in the past month or more, the two sides’ trade teams had maintained close contact and “achieved new and substantive progress on issues in the text of two countries’ trade agreement”.

“I hope the two sides’ trade teams can continue working in the spirit of mutual respect, equality, and mutual benefit to resolve each other’s concerns, and finish negotiations on the text of the China-U.S. trade agreement soon,” Xi said to Trump through Liu.

KEEPING LEVERAGE

Trump declined to say what would happen to U.S. tariffs on $250 billion worth of goods as part of a deal. China wants the tariffs lifted, while U.S. officials are wary of giving up that leverage, at least for now.

Asked about the benefits of an agreement for China, Trump said: “It’s going to be great for China, in that China will continue to trade with the United States. I mean, otherwise, it would be very tough for us to allow that to happen.”

Goods trade between the United States and China, the world’s two largest economies, totaled $660 billion last year, according to U.S. Census Bureau data, consisting of imports of $540 billion from China and $120 billion in exports to China.

On China’s behalf, Liu cited “great progress” in the talks because of Trump’s direct involvement and expressed hope that the talks would lead to “a good result.”

U.S. SEEKS SWEEPING CHANGES

Trump has previously threatened to impose punitive tariffs on all imports from China, more than a half-trillion dollars worth of products.

U.S. Trade Representative Robert Lighthizer, who is leading the talks for the Trump administration, said there were still some “major, major issues” to resolve and praised Liu’s commitment to reform in China.

Asked about the remaining sticking points, Trump mentioned tariffs and intellectual property theft. He said he would discuss tariffs with Liu in their meeting.

“Some of the toughest things have been agreed to,” Trump said. He later said that an enforcement plan for a deal remained a sticking point as well.

“We have to make sure there’s enforcement. I think we’ll get that done. We’ve discussed it at length,” he said.

Lighthizer and Treasury Secretary Steven Mnuchin are holding talks in Washington with a Chinese delegation this week after meeting together in Beijing last week. The current round of talks is scheduled to go through Friday and possibly longer.

Hopes that the talks were moving in a positive direction have cheered financial markets in recent weeks. But U.S. stocks were mixed on Thursday as investors waited for more developments in the trade negotiations, with the Dow Jones industrial Average slightly higher, and the S&P 500 and Nasdaq Composite slightly lower. [.N]

The United States is seeking reforms to Chinese practices that it says result in the theft of U.S. intellectual property and the forced transfer of technology from U.S. companies to Chinese firms.

Administration officials initially envisioned a summit between Trump and Xi potentially taking place in March, but some U.S. lawmakers and lobbying groups have said recently they were told that the administration was now aiming for a deal in late April.

OUTSTANDING ISSUES

White House economic adviser Larry Kudlow said last week that the talks were “not time-dependent” and could be extended for weeks or even months longer.

While some reform pledges by Beijing are largely set, including an agreement to avoid currency manipulation, an enforcement mechanism to ensure that China keeps its pledges and the status of U.S. tariffs on $250 billion worth of Chinese goods must be resolved.

“China has been very clear, publicly and privately, that they would like to see all the tariffs removed,” U.S. Chamber of Commerce international affairs chief Myron Brilliant told reporters on Tuesday.

“The (Trump) administration has been equally clear that they want to keep some of the tariffs in place as a way to have leverage over China fulfilling its obligations under whatever final package is reached.”

(Reporting by Jeff Mason and David Lawder; Additional reporting by Chris Prentice and Michael Martina in BEIJING; Editing by Peter Cooney, Simon Cameron-Moore and Michael Perry)

U.S. says North Korea diplomacy ‘very much alive,’ but it’s watching rocket site

A satellite image of North Korea's Sohae Satellite Launching Station (Tongchang-ri) which Washington-based Stimson Center's 38 North says, "Rebuilding continues at the engine test stand" is seen in this image released from Washington, DC, U.S., March 7, 2019. Courtesy Airbus Defence & Space and 38 North, Pleiades © CNES 2019, Distribution Airbus DS/Handout via REUTERS

By David Brunnstrom and Matt Spetalnick

WASHINGTON (Reuters) – The chief U.S. envoy for North Korea said on Monday that “diplomacy is still very much alive” with Pyongyang despite a failed summit last month, but cautioned that Washington was closely watching activity at a North Korean rocket site and did not know if it might be planning a new launch.

Stephen Biegun told a conference in Washington that although U.S. President Donald Trump and North Korean leader Kim Jong Un parted on good terms after their Feb. 27-28 summit in Hanoi, big gaps remained between the two sides and North Korea needed to show it was fully committed to giving up its nuclear weapons.

Biegun, the U.S. special representative for North Korea, stressed that U.S.-led sanctions, which Pyongyang wants dropped, would stay in place until North Korea completed denuclearization. He rejected an incremental approach sought by Pyongyang, and said that easing sanctions for partial steps would amount to subsidizing North Korea’s weapons programs.

As Biegun spoke at the Carnegie Nuclear Conference, the Center for Strategic and International Studies (CSIS) think tank issued a new report on activity at North Korea’s Sohae rocket launch site, in which satellite images from Friday showed possible preparations for a launch.

In the course of nearly a year of diplomatic engagement with the United States, North Korea has maintained a freeze on missile and nuclear tests and space rocket launches in place since 2017. Trump has repeatedly stressed this as a positive outcome of the diplomacy.

Biegun said Washington did not know what the activity spotted in North Korea meant. He said the Trump administration took it “very seriously” but cautioned against drawing any snap conclusions.

“What Kim Jong Un will ultimately decide to do may very much be his decision and his decision alone,” Biegun said, adding that Trump had made clear last week he would be “very disappointed” if North Korea were to resume testing.

An authoritative U.S. government source familiar with U.S. intelligence assessments said they did not conclude that a launch was imminent, given North Korea’s apparent desire to keep negotiations going with the United States. However, the source said Pyongyang appeared to want to make clear it retained the capability to resume launches at any moment.

“Diplomacy is still very much alive,” Biegun said. He offered no specifics on when new talks might be held and did not say whether any talks had taken place since the summit, which collapsed over differences on U.S. demands for Pyongyang’s denuclearization and North Korea’s demand for sanctions relief.

ENGAGEMENT

“It’s certainly our expectation that we will be able to continue our close engagement,” Biegun said.

The State Department has declined to say whether there has been any direct engagement between the two sides since the summit.

A national security adviser to South Korean President Moon Jae-in said on Tuesday the United States should seek the gradual denuclearization of North Korea because an “all-or-nothing” strategy will not help break the impasse in talks.

To bridge the gap, Moon could pursue an unofficial inter-Korean summit as he did last year before the first summit between Trump and Kim, and then visit Washington, the adviser said.

Trump has said he remains open to more talks with Kim. U.S. Under Secretary of State for Arms Control and International Security Andrea Thompson told the Washington conference she thought there would be another summit.

Asked if there would be a third meeting, she said Secretary of State Mike Pompeo and Trump had “been very clear that they remain open to the dialogue. They haven’t got a date on the calendar but our teams continue to work towards that.”

Thompson said it was “incredibly important” that all countries continued to maintain U.N. sanctions on North Korea until it gave up its nuclear weapons.

“We are not letting the foot off the gas. We are going to continue with the pressure campaign,” she said.

At the White House on Monday, spokeswoman Sarah Sanders scoffed at reports that China was wary of holding a summit with Trump on trade after he walked out of his meeting with Kim without a deal.

“We’ll see what happens with North Korea the same way we’re going to see what happens in the negotiations with China. They’re ongoing,” she said.

Trump on Friday stressed again his belief in his personal rapport with Kim.

The CSIS report said commercial satellite images acquired last Wednesday and Friday showed North Korea had continued preparations on the launch pad at its Sohae launch facility and at the engine testing stand there.

“Based on past practices, these activities could be consistent with preparations for the delivery of a rocket to the launch pad or engine to the test stand; or they could be North Korean coercive bargain tactics,” it said.

Trump said after his first summit with Kim in Singapore last June that Kim had promised to dismantle the test stand, a pledge the North Korean leader reiterated and expanded on at a summit with Moon in September.

Pyongyang has used Sohae to launch satellites into space since 2011, and Washington says its work there has helped develop missile technology. A satellite launch in April 2012 killed off an Obama administration deal for a freeze in North Korean nuclear and missile testing reached weeks earlier.

(Reporting by David Brunnstrom, Mark Hosenball, Matt Spetalnick, Arshad Mohammed and Doina Chiacu; additional reporting by Hyonhee Shin in SEOUL, editing by Grant McCool and Sonya Hepinstall)

Third summit between Trump and North Korea’s Kim likely, no date set: U.S. official

FILE PHOTO: U.S. Under Secretary of State Andrea Thompson attends a panel discussion after a Treaty on the Non-Proliferation of Nuclear Weapons (NPT) conference in Beijing, China January 31, 2019. REUTERS/Thomas Peter/Pool

WASHINGTON (Reuters) – A U.S. Department of State official on Monday said she thinks there will be a third summit between U.S. President Donald Trump and North Korean leader Kim Jong Un, but no date has been set.

Trump and Kim’s second summit in Vietnam last month collapsed over differences on U.S. demands for Pyongyang’s denuclearization and North Korea’s demand for sanctions relief.

Trump’s national security adviser, John Bolton, said on Sunday that the president was open to another summit with Kim but more time may be needed. Trump and Kim first met in Singapore last June.

U.S. Secretary of State Mike Pompeo and the president “have been very clear that they remain open to the dialogue. They haven’t got a date on the calendar but our teams continue to work towards that,” U.S. Under Secretary of State for Arms Control and International Security Andrea Thompson said when asked if there would be a third meeting.

“Is there a next summit? Well, I think there will be,” said Thompson, who spoke at the Carnegie Nuclear Conference in Washington.

Thompson said it was “incredibly important” that all countries continued to maintain United Nations sanctions on North Korea until it gave up its nuclear weapons.

“We are not letting the foot off the gas. We are going to continue with the pressure campaign,” she said. “We are going to continue to hold those sanctions and we are going to continue to work with the team abroad to make sure those stay in place.”

Trump said on Friday he would be disappointed if Pyongyang were to resume weapons testing and reiterated his belief in his good relationship with Kim despite the collapse of the summit.

Trump commented after U.S. think tanks and Seoul’s spy agency said that North Korea was rebuilding a rocket launch site. Non-proliferation experts have said satellite images indicate North Korea could be preparing to launch a missile or a space rocket in spite of a freeze in testing that has been in place since 2017.

(Reporting by Arshad Mohammed and David Brunnstrom; Additional reporting by Susan Heavey; Editing by Meredith Mazzilli and Grant McCool)

Trump says he would be disappointed if North Korea resumed testing

FILE PHOTO: Intercontinental ballistic missiles (ICBM) are driven past the stand with North Korean leader Kim Jong Un and other high-ranking officials during a military parade marking the 105th birth anniversary of the country's founding father Kim Il Sung, in Pyongyang April 15, 2017. REUTERS/Damir Sagolj/File Photo

By Roberta Rampton and David Brunnstrom

WASHINGTON (Reuters) – U.S. President Donald Trump said on Friday he would be disappointed if North Korea were to resume weapons testing and reiterated his belief in his good relationship with its leader, Kim Jong Un, despite the collapse of a summit with him last week.

“I would be surprised in a negative way if he did anything that was not per our understanding. But we’ll see what happens,” Trump told reporters at the White House. “I would be very disappointed if I saw testing.”

Trump’s comments to reporters on the White House lawn before leaving to visit Alabama came after two U.S. think tanks and Seoul’s spy agency said this week that North Korea was rebuilding a rocket launch site.

There have also been reports emanating from South Korea’s intelligence service of new activity at a factory that produced North Korea’s first intercontinental ballistic missiles capable of reaching the United States.

Trump said he thought his and the U.S. relationship with Kim and North Korea was “a very good one.”

“I think it remains good,” he said.

Trump, eager for a big foreign policy win on North Korea which has eluded his predecessors for decades, has repeatedly stressed his good relationship with Kim. He went as far late last year as saying that they “fell in love,” but the bonhomie has failed to bridge the wide gap between the two sides.

A second summit between Trump and Kim collapsed last week over differences on U.S. demands for Kim to give up his nuclear weapons and North Korea’s demands for sanctions relief.

North Korean state media acknowledged the fruitless summit for the first time on Friday, saying people were blaming the United States for the lack of an agreement.

“The public at home and abroad that had hoped for success and good results from the second … summit in Hanoi are feeling regretful, blaming the U.S. for the summit that ended without an agreement,” its Rodong Sinmun newspaper said in a commentary.

The paper directed fiery rhetoric against Japan, accusing it of being “desperate to interrupt” relations between Pyongyang and Washington and “applauding” the breakdown of the summit.

Washington has said it is open to more talks with North Korea but it has rejected an incremental approach to negotiations sought by Pyongyang and it remains unclear when the two sides might meet again.

U.S. Secretary of State Mike Pompeo said on Monday he was hopeful he would send a delegation to North Korea for more talks in the next couple of weeks, but that he had received “no commitment yet.”

A senior State Department official who briefed reporters in Washington on Thursday said the United States was keen to resume talks as soon as possible, but North Korea’s negotiators needed to be given more latitude than they were given ahead of the summit.

“There will necessarily need to be a period of reflection here. Both sides are going to have to digest the outcome to the summit,” said the official, who spoke on condition of anonymity.

“Fundamentally, where we really need to see the progress, and we need to see it soon, is on meaningful and verifiable steps on denuclearization. That’s our goal and that’s how we see these negotiations picking up momentum.”

The official said complete denuclearization was the condition for North Korea’s integration into the global economy, a transformed relationship with the United States and a permanent peace regime on the Korean peninsula.

White House National Security Adviser John Bolton, a hard-liner who has argued for a tough approach to North Korea, said this week that Trump was open to more talks, but also warned of tougher sanctions if North Korea did not denuclearize.

Bolton and other U.S. officials have sought to play down the activity spotted at the Sohae rocket launch site, although Trump on Thursday called it “disappointing.”

The official who briefed reporters on Thursday said he would “not necessarily share the conclusion” of the think tanks that the Sohae site was operational again, but said any use of the site would be seen as “backsliding” on commitments to Trump.

North Korea has frozen nuclear and missile testing since 2017, and Trump has pointed to this as a positive outcome from nearly a year’s engagement with North Korea.

Sohae has been used in the past to rest missile engines and to launch rockets that U.S. officials say have helped development of North Korea’s weapons programs.

(Reporting by Roberta Rampton, David Brunnstrom, Lisa Lambert and Susan Heavey in Washington and Hyonhee Shin, Joyce Lee and Ju-min Park in Seoul; Editing by Jonathan Oatis)

U.S. open to North Korea talks despite missile program activity

FILE PHOTO: Intercontinental ballistic missiles (ICBM) are driven past the stand with North Korean leader Kim Jong Un and other high-ranking officials during a military parade marking the 105th birth anniversary of the country's founding father Kim Il Sung, in Pyongyang April 15, 2017. REUTERS/Damir Sagolj/File Photo

By David Brunnstrom and Hyonhee Shin

WASHINGTON/SEOUL (Reuters) – U.S. President Donald Trump is open to additional talks with Pyongyang over denuclearization, his national security adviser said on Thursday, despite reports that North Korea is reactivating parts of its missile program.

New activity has been detected at a factory that produced North Korea’s first intercontinental ballistic missiles (ICBMs) capable of reaching the United States, South Korea’s JoongAng Ilbo and Donga Ilbo newspapers reported, citing lawmakers briefed by the National Intelligence Service.

This week, two U.S. think tanks and Seoul’s spy agency said North Korea was rebuilding a rocket launch site, prompting Trump to say he would be “very, very disappointed in Chairman Kim” if it were true.

The reports of North Korean activity raise more questions about the future of the dialogue Trump has pursued with North Korean leader Kim Jong Un after a second summit between the two leaders in Vietnam broke down last week.White House national security adviser John Bolton said on Thursday that Trump was still open to additional talks with North Korea over denuclearization.

“The president’s obviously open to talking again. We’ll see when that might be scheduled or how it might work out,” Bolton said in an interview with Fox News.

He said it was too soon to make a determination on the reports of the North Korean activities.

“We have a lot of ways of getting information,” he said. “We’re going to study the situation carefully. As the president said, it would be very, very disappointing if they were taking this direction.”

The Vietnam summit between Kim and Trump last week collapsed over differences on how far North Korea was willing to limit its nuclear program and the degree of U.S. willingness to ease economic sanctions against the isolated country.

Trump, eager for a big foreign policy win on North Korea that has eluded his predecessors for decades, has repeatedly stressed his good relationship with Kim. He went as far late last year as saying they “fell in love,” but the bonhomie has failed so far to bridge the wide gap between the two sides.

MISSILE FACTORY

Movement of cargo vehicles was spotted recently around a North Korean factory at Sanumdong in Pyongyang, which produced ICBMs.

South Korean spy chief Suh Hoon told lawmakers he viewed the activity as missile-related, the JoongAng Ilbo said. It quoted Suh as saying North Korea continued to run its uranium enrichment facility at the main Yongbyon nuclear complex after a first summit between Trump and Kim last June in Singapore.

The Sanumdong factory produced the Hwasong-15 ICBM, which can fly more than 13,000 km (8,080 miles). After its test flight in 2017, North Korea declared the completion of its “state nuclear force,” before pursuing talks with South Korea and the United States last year.

South Korea’s presidential office and defense ministry declined to confirm the reports on Sanumdong, saying they were closely monitoring North Korea’s activities together with the United States.

The U.S. State Department said it could not comment on intelligence matters.

Separately, U.S. think tanks reported on Thursday that North Korea’s Sohae Satellite Launching Station appeared to be operational again after work that began days before Trump met with Kim in Hanoi.

Washington’s Center for Strategic and International Studies think tank called the work a “snapback” after North Korea partially dismantled the site, acting on a pledge by Kim to Trump at the Singapore summit.

“The rebuilding activities at Sohae demonstrate how quickly North Korea can easily render reversible any steps taken towards scrapping its WMD program with little hesitation,” it said.

“North Korea’s actions constitute an affront to the president’s diplomatic strategy (and) demonstrate North Korean pique at Trump’s refusal to lift economic sanctions during the meetings in Hanoi.”

The Washington-based 38 North think tank also said the Sohae site appeared now to have returned to normal operational status.

FILE PHOTO: North Korean leader Kim Jong Un makes his way to board a train to depart for North Korea at Dong Dang railway station in Vietnam, March 2, 2019. REUTERS/Kim Kyung-Hoon

FILE PHOTO: North Korean leader Kim Jong Un makes his way to board a train to depart for North Korea at Dong Dang railway station in Vietnam, March 2, 2019. REUTERS/Kim Kyung-Hoon

SANCTIONS WARNING

Some analysts see the work as aimed at pressing Washington to agree to a deal, rather than as a definite move to resume tests.

A U.S. government source, who did not want to be identified, said North Korea’s plan in rebuilding the site could have been to offer a demonstration of good faith by conspicuously stopping again if a summit pact was struck, while furnishing a sign of defiance or resolve if the meeting failed.

Imagery from Planet Labs Inc analyzed by the Center for Nonproliferation Studies at the Middlebury Institute of International Studies in California showed activity at Sohae from Feb. 23 until Wednesday.

38 North said photos from Wednesday showed the rail-mounted transfer building used to move rockets at the site was complete, cranes had been removed from the launch pad and the transfer building moved to the end of the pad.

“But we don’t draw any conclusions from that besides they are restoring the facility,” Joel Wit of 38 North told Reuters. “There is no evidence to suggest anything more than that.”

On Wednesday, Bolton, a hardliner who was argued for a tough approach to North Korea in the past, warned of new sanctions if it did not scrap its weapons program.

Despite the sanctions talk, there have been signs across Asia that Trump’s “maximum pressure” sanctions campaign against North Korea has sprung leaks.

In a new sanctions breach, three South Korean companies were found to have brought in more than 13,000 tons of North Korean coal, worth 2.1 billion won ($2 million) since 2017, by making it out to have been produced in China and Vietnam, South Korea said.

North Korean media has given conflicting signals about its relations with the United States, while appearing to target Bolton as a spoiler.

Its state television aired a 78-minute documentary late on Wednesday focused on showing a cordial mood between Trump and Kim as the summit ended, indicating Pyongyang was not about to walk away from negotiations, experts say.

It also showed a stone-faced Bolton during a meeting in Hanoi, while Trump and other U.S. participants were all smiles.

In a return to a more usual, strident tone, the KCNA news agency criticized new small-scale military exercises that the United States and South Korea plan to hold instead of a large-scale spring exercise they have called off.

The news agency said the drills would be a “violent violation” of agreements signed between the United States and North Korea as well as between the two Koreas.

The U.S. and South Korean militaries said last week that they would not carry out a large-scale spring joint military exercises, replacing it with smaller-scale ones.

(Reporting by Jeff Mason and David Brunnstrom; additional reporting by Mark Hosenball, David Alexander and Tim Ahmann in Washington and Hyonhee Shin and Joyce Lee in Seoul; Editing by Clarence Fernandez and Alistair Bell)

White House’s Hassett says progress in China trade talks-Fox Business

FILE PHOTO: Trump economic adviser Kevin Hassett gestures as he speaks during a news briefing at the White House in Washington, U.S., September 10, 2018. REUTERS/Kevin Lamarque

WASHINGTON (Reuters) – White House economic adviser Kevin Hassett said on Monday that U.S. Trade Representative Robert Lighthizer has made progress in talks with China and a deal was possible to end a dispute that has already put tariffs on hundreds of billions of dollars worth of goods.

“I think that it looks like Ambassador Lighthizer has made a lot of progress, and we might get there on China,” Hassett said in an interview with Fox Business Network.

World markets were buoyed on Monday by investors’ optimism that a trade deal could be cemented as soon as this month to resolve the ongoing trade war between the world’s two largest economies.

“I think everybody’s hopeful, as the markets are, that this is going to get to the finish line sometime soon,” Hassett told Fox, adding that details of any deal are still being worked out.

On Sunday, U.S. President Donald Trump said on Twitter that trade talks were progressing well and that he had asked China to immediately remove all tariffs on U.S. agricultural products while delaying his own plan to impose 25 percent tariffs on Chinese goods.

A summit between Trump and his Chinese counterpart Xi Jinping could occur around March 27 to finalize a deal, the Wall Street Journal reported on Sunday, citing a source briefed on negotiations.

A representative for the White House said they had no comment on the ongoing negotiations.

(Reporting by Doina Chiacu, Susan Heavey and Steve Holland; Editing by Chizu Nomiyama and Jeffrey Benkoe)

South Korea to work with U.S. and North Korea after failed nuclear talks

U.S. President Donald Trump pumps his fist at members of the U.S. military as he arrives to address them after his summit meeting with North Korea's Kim Jong Un in Vietnam during a refueling stop at Elmendorf Air Force Base in Anchorage, Alaska, U.S., February 28, 2019. REUTERS/Leah Millis

By Joyce Lee and Hyonhee Shin

SEOUL/HANOI (Reuters) – South Korea will work with the United States and North Korea to ensure they reach agreement on denuclearization, the South’s president said on Friday, a day after talks between the U.S. and North Korean leaders collapsed over sanctions.

A second summit between U.S. President Donald Trump and North Korean leader Kim Jong Un, in Vietnam, was cut short after they failed to reach a deal on the extent of sanctions relief North Korea would get in exchange for steps to give up its nuclear program.

South Korea’s President Moon Jae-in has been an active supporter of efforts to end confrontation on the Korean peninsula, meeting Kim three times last year and trying to facilitate his nuclear negotiations with the United States.

“My administration will closely communicate and cooperate with the United States and North Korea so as to help their talks reach a complete settlement by any means,” Moon said in a speech in the South Korean capital, Seoul.

Moon also said South Korea would consult the United States on ways to resume joint projects with the North including tourism development at Mount Kumgang and the Kaesong industrial complex, both in North Korea.

The Hanoi summit came eight months after Trump and Kim met for the first time in Singapore and agreed to establish new relations and peace in exchange for a North Korean commitment to work toward complete denuclearization of the Korean peninsula.

Trump said two days of talks had made good progress but it was important not to rush into a bad deal. He said he had walked away because of unacceptable North Korean demands.

“It was all about the sanctions,” Trump told a news conference after the talks were cut short. “Basically, they wanted the sanctions lifted in their entirety, and we couldn’t do that.”

On Friday, Trump tweeted that the negotiations with Kim were “very substantive” and that “we know what they want and they know what we must have,” but he gave no other details about any next steps. “Relationship very good, let’s see what happens!” he wrote.

‘BIGGEST STEP’

However, North Korean Foreign Minister Ri Yong Ho told a midnight news conference after Trump left Hanoi that North Korea had sought only a partial lifting of sanctions “related to people’s livelihoods and unrelated to military sanctions.”

He said North Korea had offered a realistic proposal involving the dismantling of all of its main nuclear site at Yongbyon, including plutonium and uranium facilities, by engineers from both countries.

“This is the biggest denuclearization step we can take based on the current level of trust between the two countries,” Ri said.

North Korean Vice Foreign Minister Choe Son Hui told the briefing she had the impression that Kim “might lose his willingness to pursue a deal” after the U.S. side rejected a partial lifting of sanctions in return for the destruction of Yongbyon, “something we had never offered before.”

Speaking to South Korean media later on Friday, Choe appeared more pessimistic about chances for progress.

“Having conducted the talks this time, it occurs to us that there may not be a need to continue,” she said, adding that North Korea had taken “many steps” to try to reach a deal.

“We’re doing a lot of thinking,” she said while adding, the situation would change “if our demands can be resolved.”

But despite the doubt that Choe raised, both sides have indicated they want to maintain the momentum and press on.

“We are anxious to get back to the table so we can continue that conversation that will ultimately lead to peace and stability, better life for the North Korean people, and a lower threat, a denuclearized North Korea,” U.S. Secretary of State Mike Pompeo told a news conference in Manila.

North Korean media adopted a conciliatory tone.

The state KCNA news agency said Kim and Trump had a constructive, sincere exchange and decided to continue productive talks, without mentioning that the talks ended abruptly with no agreement.

Kim, who is due to leave Vietnam on Saturday, also expressed gratitude to Trump for putting in efforts to get results, KCNA said.

‘OPPORTUNITY TO TALK’

A U.S. State Department official said the North Korean media coverage had been constructive, indicating “ample opportunity to talk.”

The United Nations and the United States ratcheted up sanctions on North Korea when the reclusive state conducted repeated nuclear and ballistic missile tests in 2017, cutting off its main sources of hard cash

The United States has demanded North Korea’s complete, verifiable and irreversible denuclearization before sanctions can be lifted. North Korea has denounced that position as “gangster like.”

The U.S. official said North Korea had proposed closing part of its Yongbyon nuclear complex in exchange for the lifting of all U.N. sanctions except those directly targeting their weapons of mass destruction programs.

The U.S. side said “that wouldn’t work”, he said.

“The dilemma that we were confronted with is the North Koreans at this point are unwilling to impose a complete freeze on their weapons of mass destruction programs,” said the official, who declined to be identified.

“So to give many, many billions of dollars in sanctions relief would in effect put us in a position of subsidizing the ongoing development of weapons of mass destruction,” said the official, who spoke on condition of anonymity.

Analysts estimate North Korea may have a nuclear arsenal of 20 to 60 weapons, which, if fitted to its intercontinental ballistic missiles, could threaten the U.S. mainland.

The collapse of the summit leaves Kim in possession of that arsenal though Trump said the North Korean leader had agreed to maintain his moratorium on nuclear and ballistic missile tests.

Failure to reach an agreement also marks a setback for Trump, a self-styled dealmaker under pressure at home over his ties to Russia and testimony from Michael Cohen, his former lawyer who accused him of breaking the law while in office.

(Additional reporting by Eric Beech, Matt Spetalnick and David Brunnstrom in WASHINGTON; Jeff Mason, Soyoung Kim, James Pearson, Josh Smith, Ju-min Park, Mai Nyugen, Khanh Vu, Jack Kim in HANOI; Martin Petty and Karen Lema in MANILA; Editing by Robert Birsel and Lincoln Feast)

Trump, North Korea give conflicting accounts of summit collapse

North Korean Vice Foreign Minister Choe Son Hui speaks to reporters after a news conference following the end of a summit between North Korean leader Kim Jong Un and U.S. President Donald Trump, in Hanoi, Vietnam, March 1, 2019. Yonhap/via REUTERS

By Jeff Mason and Josh Smith

HANOI (Reuters) – A second summit between U.S. President Donald Trump and North Korea leader Kim Jong Un collapsed on Thursday over sanctions on Pyongyang, and the two sides gave conflicting accounts of what led to the failure, raising questions about the future of denuclearization talks.

Trump said two days of talks in the Vietnamese capital Hanoi had made good progress in building relations and on the main issue of denuclearization, but it was important not to rush into a bad deal. He said he had walked away because of unacceptable North Korean demands.

“It was all about the sanctions,” Trump said at a news conference after the talks were cut short. “Basically, they wanted the sanctions lifted in their entirety, and we couldn’t do that.”

However, North Korean Foreign Minister Ri Yong Ho told a news conference past midnight and hours after Trump left Hanoi that North Korea had sought only a partial lifting of sanctions and had offered a realistic proposal, including the dismantling of its main nuclear site at Yongbyon.

The United States demanded “one more” measure beyond dismantling Yongbyon, Ri said. He said if Washington partially removed sanctions, North Korea could permanently end all nuclear material production, including plutonium and uranium, under U.S. observation.

“This is the biggest denuclearization step we can take based on the current level of trust between the two countries,” Ri said in a rare exchange between a North Korean official and reporters. “In fact, as we take steps toward denuclearization, the most important issue is security but we thought it would be more burdensome for the United States to take military-related measures, which is why we saw partial lifting of sanctions as corresponding action.”

North Korea’s position would not change, even if Washington proposed further talks, Ri said.

The White House did not immediately respond to a request for comment on the minister’s remarks.

The United Nations and the United States ratcheted up sanctions on North Korea when the reclusive state conducted repeated nuclear and ballistic missile tests in 2017, cutting off its main sources of hard cash.

Trump and Kim cut short their talks, skipping a planned working lunch at the French-colonial-era Metropole hotel after a morning of meetings.

“Sometimes you have to walk, and this was just one of those times,” Trump said, adding “it was a friendly walk”.

Failure to reach an agreement marks a setback for Trump, a self-styled dealmaker under pressure at home over his ties to Russia and testimony from Michael Cohen, his former personal lawyer who accused him of breaking the law while in office.

The collapse of the talks raised questions about the Trump administration’s preparations and about what some critics see as his cavalier style of personal diplomacy.

Since their first summit in Singapore in June, Trump has stressed his good chemistry with Kim, but there have been doubts about whether the bonhomie could move them beyond summit pageantry to substantive progress on eliminating a North Korean nuclear arsenal that threatens the United States.

Things had appeared more promising when the leaders met on Wednesday, predicting successful talks before a social dinner with top aides.

The White House had been confident enough to schedule a “joint agreement signing ceremony” at the conclusion of talks. Like the lunch, the ceremony did not take the place.

 

MARKETS HIT

“No deal is a surprise, especially as they were both all smiley last evening,” said Lim Soo-ho, senior research fellow at the Institute for National Security Strategy.

“But no-deal today doesn’t mean there won’t be one in coming months. It means stakes were way too high for the two leaders to give another wishy-washy statement like they did in Singapore.”

Daniel Russel, the State Department’s former top diplomat for East Asia until early in the Trump administration, said the failure showed Trump had rushed into the summit.

“The Hanoi Summit validates Benjamin Franklin&rsquo’s axiom that by failing to prepare, you are preparing to fail,” he said. “The hard diplomatic work of narrowing differences and exploring options had simply not been done, so it is not surprising that the two leaders encountered insurmountable differences.”

The Singapore summit, the first between a sitting U.S. president and a North Korean leader, produced a vague statement in which Kim pledged to work toward denuclearization of the Korean peninsula.

But little progress followed.

News of the summit failure sent South Korea’s currency lower and knocked regional stock markets. South Korea’s Kospi index closed 1.8 percent lower, marking the biggest one-day percentage loss since Oct 2018.

North Korea’s old rival South Korea, which backs efforts to end confrontation on the peninsula, said it regretted that no deal had been reached but the two sides had made progress.

Senior Chinese diplomat Wang Yi said difficulties in the talks were unavoidable but the two sides should press on and China would play a constructive role.

Japanese Prime Minister Shinzo Abe said he backed Trump’s decision and wanted a meeting with Kim.

There was no indication of when Trump and Kim, or their negotiators, might meet again.

U.S. Secretary of State Mike Pompeo said they could hold further meetings, but there was no plan to do so immediately.

Kicking off their second day of talks in Hanoi, Trump said he would be happy as long as North Korea conducted no more nuclear or intercontinental ballistic missile tests.

North Korea has conducted no tests since late 2017, and Trump said Kim had promised him there would be no resumption.

Trump said he and Kim had discussed dismantling Yongbyon, which Kim was willing to do, but Kim had wanted sanctions relief first.

Trump said there were other facilities he wanted included in a deal – and the North Koreans had been surprised the Americans knew about them – but they had baulked.

TESTING TRUMP?

Russel said Kim might have thought he could drive a hard bargain, given Trump’s domestic troubles.

“Kim Jong Un is not testing ballistic missiles and nuclear bombs at the moment, but he is testing Donald Trump. Kim may have wanted to see if Trump’s domestic legal and political woes made him desperate enough to take any deal he could get,” he said.

Trump had indicated a more flexible stance in the run-up to the Hanoi summit, prompting some critics to warn that he risked squandering leverage over North Korea if he gave away too much.

U.S. intelligence officials have said there is no sign North Korea would eve give up its entire arsenal of nuclear weapons, which Kim’s ruling family sees as vital to its survival.

 

(Reporting by Soyoung Kim and Jeff Mason in HANOI; Additional reporting by Soyoung Kim, Joyce Lee, Jeongmin Kim, Hyonhee Shin, Jack Kim, James Pearson, Mai Nyugen, Ju-min Park, Khanh Vu in HANOI, Ben Blanchard in BEIJING, David Brunnstrom and Matt Spetalnick in WASHINGTON; Editing by Robert Birsel, Lincoln Feast and Grant McCool)

Trump won’t rush North Korea on denuclearization; peace deal possible

A person walks past a banner showing North Korean and U.S. flags ahead of the North Korea-U.S. summit in Hanoi, Vietnam, February 25, 2019. REUTERS/Kim Kyung-Hoon

By Hyonhee Shin

HANOI (Reuters) – U.S. President Donald Trump and North Korea’s Kim Jong Un will hold a second summit this week with no real expectation of a final deal on ridding the North of nuclear weapons but raised hopes on Monday for an official peace on the peninsula at long last.

The two leaders are due to meet in the Vietnamese capital, Hanoi, on Wednesday and Thursday, eight months after their historic summit in Singapore, the first between a sitting U.S. president and a North Korean leader.

At the time, they pledged to work toward the complete denuclearization of the Korean peninsula, but their vague agreement has produced few results. U.S. Democratic senators and security officials have warned Trump against cutting a deal that would do little to curb North Korea’s nuclear ambitions.

Trump, speaking in Washington on the eve of his departure for Vietnam, said he believed he saw eye to eye with Kim and that they had developed “a very, very good relationship”.

In a tweet on Monday, Trump stressed the benefits to North Korea if it gave up its nuclear weapons.

“With complete Denuclearization, North Korea will rapidly become an Economic Powerhouse. Without it, just more of the same. Chairman Kim will make a wise decision!”

Vietnamese police leave their headquarters to patrol ahead of the upcoming North Korea-U.S. summit in Hanoi, Vietnam February 25, 2019. Doan Tan/VNA via REUTERS

Vietnamese police leave their headquarters to patrol ahead of the upcoming North Korea-U.S. summit in Hanoi, Vietnam February 25, 2019. Doan Tan/VNA via REUTERS

A South Korean presidential spokesman told reporters in Seoul the two sides might agree to a formal end of the 1950-1953 Korean War, which the North has long called for as a major step towards normalizing ties.

“The possibility is there,” the spokesman, Kim Eui-kyeom told a briefing in Seoul when asked if an end-of-war declaration was on the agenda.

In a speech on Sunday night, Trump appeared to play down any hope of a major breakthrough, saying he would be happy as long as North Korea maintained its pause on weapons testing.

“I’m not in a rush. I don’t want to rush anybody,” he said. “I just don’t want testing. As long as there’s no testing, we’re happy.”

Trump is expected to leave for Vietnam at about 12:30 p.m. EST (1730 GMT).

North Korea conducted its last nuclear test, its sixth, in September 2017. It last tested an intercontinental ballistic missile in November 2017.

Before that freeze, the North conducted a series of tests that it says has given it powerful nuclear bombs and missiles capable of reaching the U.S. mainland.

The United States has for years demanded North Korea’s complete, verifiable and irreversible denuclearization before any concessions will be granted. North Korea denounced that stance as unilateral and “gangster-like”.

But in recent days, Trump has signaled a possible softening, saying he would love to be able to remove tough sanctions if there was meaningful progress on denuclearization.

Trump said he and Kim expected to make progress at the summit. He scoffed at critics of his handling of North Korea, and added that Chinese President Xi Jinping has been supportive of U.S. efforts.

A man walks past a banner depicting North Korean leader Kim Jong Un and U.S. President Donald Trump ahead of the North Korea-U.S. summit in Hanoi, Vietnam, February 25, 2019. REUTERS/Kim Kyung-Hoon

A man walks past a banner depicting North Korean leader Kim Jong Un and U.S. President Donald Trump ahead of the North Korea-U.S. summit in Hanoi, Vietnam, February 25, 2019. REUTERS/Kim Kyung-Hoon

LIMITED DEAL?

Speculation that the Trump administration is open to a limited deal at the summit has raised expectations the two sides might finally declare an end to a technical state of hostilities that has existed on the Korean peninsula since the Korean War ended with an armistice, not a truce.

In return, North Korea could allow international inspectors to observe the dismantlement of its nuclear reactor at Yongbyon, analysts say.

The United States could also agree to opening U.S.-North Korea liaison offices and allow some inter-Korean projects, provided the North takes steps toward denuclearization.

South Korea’s President Moon Jae-in, who supports opening up North Korea, praised both Trump and Kim in comments in Seoul, and said those opposed to better ties on the peninsula, and between North Korea and the United States, should “discard such biased perspectives”.

Trump is scheduled to arrive in Vietnam on Tuesday evening, Vietnam’s foreign ministry said. On Wednesday morning, Trump is set to meet Vietnam President Nguyen Phu Trong, who is also general secretary of the ruling Communist Party, the ministry said.

Vietnam has released few details about arrangements for the summit including its specific venue or timing.

Kim is making his way to Vietnam by train and passed through the Chinese city of Hengyang at about 3.30 p.m. (0730 GMT), South Korea’s Yonhap news agency reported.

That means he would be due to arrive in Vietnam early on Tuesday. No official details of his travel have been released.

(Additional reporting by Mai Nguyen and Josh Smith in HANOI and David Brunnstrom in WASHINGTON; Writing by Robert Birsel; Editing by Lincoln Feast and Bill Berkrot)