Saudi Arabia suspends any dialogue with Qatar: SPA

FILE PHOTO - Saudi Crown Prince Mohammed bin Salman gestures during a military parade by Saudi security forces in preparation for the annual Haj pilgrimage in the holy city of Mecca, Saudi Arabia, August 23, 2017. Saudi Press Agency/Handout via REUTERS

DUBAI (Reuters) – Saudi Arabia on Saturday suspended any dialogue with Qatar, accusing it of “distorting facts”, just after a report of a phone call between the leaders of both countries suggested a breakthrough in the Gulf dispute.

Saudi Arabia’s Crown Prince Mohammed bin Salman spoke by the telephone with Qatar’s Emir Sheikh Tamim bin Hamad al-Thani on Friday when they discussed the Gulf dispute, state media from both countries reported earlier.

Saudi Arabia, the UAE, Egypt and Bahrain cut diplomatic and trade links with Qatar on June 5, suspending air and shipping routes with the world’s biggest exporter of liquefied natural gas, which is home to the region’s biggest U.S. military base.

The nations say Doha supports regional foe Iran and Islamists, charges Qatar’s leaders deny. Kuwait has been trying to mediate the dispute.

“During the call, the Emir of Qatar expressed his desire to sit at the dialogue table and discuss the demands of the four countries to ensure the interests of all,” Saudi state news agency SPA reported.

“The details will be announced later after the Kingdom of Saudi Arabia concludes an understanding with the United Arab Emirates, the Kingdom of Bahrain and the Arab Republic of Egypt,” SPA said.

The phone call was the first publicly reported contact between the two leaders since the start of the crisis.

Qatar’s state news agency QNA said the phone call was based on coordination of U.S. President Donald Trump who had earlier talked with Sheikh Tamim.

Trump on Thursday said he would be willing to step in and mediate the worst dispute in decades among the U.S.-allied Arab states and Qatar, and said he thinks a deal could come quickly.

Both Qatar’s Emir and the Saudi Crown Prince “stressed the need to resolve the crisis by sitting down to the dialogue table to ensure the unity and stability of the GCC countries,” QNA reported.

Sheikh Tamim welcomed the proposal of Prince Mohammed during the call “to assign two envoys to resolve controversial issues in a way that does not affect the sovereignty of the states,” QNA said.

Saudi Arabia later issued a second statement citing an unnamed official at the ministry of the foreign affairs denying the QNA report.

“What was published on the Qatar News Agency is a continuation of the distortion of the Qatari authority of the facts,” SPA reported citing the Saudi official.

“The Kingdom of Saudi Arabia announces the suspension of any dialogue or communication with the authority in Qatar until a clear statement is issued clarifying its position in public.”

(Reporting by Rania El Gamal; additional reporting by Mohamed El Sherif and Mostafa Hashem in Cairo; Editing by Sandra Maler and Lisa Shumaker)

‘Lips and teeth’ no more as China’s ties with North Korea fray

FILE PHOTO: North Korean soldiers chat as they stand guard behind national flags of China (front) and North Korea on a boat anchored along the banks of Yalu River, near the North Korean town of Sinuiju, opposite the Chinese border city of Dandong, June 10, 2013. REUTERS/Jacky Chen

By Philip Wen and Christian Shepherd

BEIJING (Reuters) – When Kim Jong Un inherited power in North Korea in late 2011, then-Chinese president Hu Jintao was outwardly supportive of the untested young leader, predicting that “traditional friendly cooperation” between the countries would strengthen.

Two years later, Kim ordered the execution of his uncle Jang Song Thaek, the country’s chief interlocutor with China and a relatively reform-minded official in the hermetic state.

Since then, ties between the allies have deteriorated so sharply that some diplomats and experts fear Beijing may become, like Washington, a target of its neighbor’s ire.

While the United States and its allies – and many people in China – believe Beijing should do more to rein in Pyongyang, the acceleration of North Korea’s nuclear and missile capabilities has coincided with a near-total breakdown of high-level diplomacy between the two.

Before retiring this summer, China’s long-time point man on North Korea, Wu Dawei, had not visited the country for over a year. His replacement, Kong Xuanyou, has yet to visit and is still carrying out duties from his previous Asian role, traveling to Pakistan in mid-August, diplomats say.

The notion that mighty China wields diplomatic control over impoverished North Korea is mistaken, said Jin Canrong, an international relations professor at Beijing’s Renmin University.

“There has never existed a subordinate relationship between the two sides. Never. Especially after the end of the Cold War, the North Koreans fell into a difficult situation and could not get enough help from China, so they determined to help themselves.”

A famine in the mid-1990s that claimed anywhere from 200,000 to three million North Koreans was a turning point for the economy, forcing private trade on the collectivized state. That allowed the North a degree of independence from outside aid and gave credence to the official “Juche” ideology of self-reliance.

AVOID CHAOS

China fought alongside North Korea during the 1950-53 Korean War, in which Chinese leader Mao Zedong lost his eldest son, and Beijing has long been Pyongyang’s chief ally and primary trade partner.

While their relationship has always been clouded by suspicion and mistrust, China grudgingly tolerated North Korea’s provocations as preferable to the alternatives: chaotic collapse that spills across their border, and a Korean peninsula under the domain of a U.S.-backed Seoul government.

That is also the reason China is reluctant to exert its considerable economic clout, worried that measures as drastic as the energy embargo proposed this week by Washington could lead to the North’s collapse.

Instead, China repeatedly calls for calm, restraint and a negotiated solution.

The North Korean government does not provide foreign media with a contact point in Pyongyang for comment by email, fax or phone. The North Korean embassy in Beijing was not immediately available for comment.

China’s foreign ministry did not respond to a faxed request for comment. It has repeatedly spoken out against what it calls the “China responsibility theory” and insists the direct parties – North Korea, South Korea and the United States – hold the key to resolving tensions.

‘FEUDAL AGES’

Until his death in 2011, North Korean leader Kim Jong Il made numerous entreaties to ensure China would back his preferred son as successor.

While then-President Hu reciprocated, the younger Kim, in his late 20s at the time, began to distance himself from his country’s most powerful ally.

“There’s a lot of domestic politics in North Korea where this young leader who isn’t well-known, he’s not proven yet, especially has to show that he’s not in the pocket of Beijing,” said John Delury of Seoul’s Yonsei University. “I think he made the decision first to keep Hu Jintao and then (current President) Xi Jinping really at bay.”

Within months of coming to power, Kim telegraphed North Korea’s intentions by amending its constitution to proclaim itself a nuclear state. The execution of Jang in 2013 sealed Beijing’s distrust of the young leader.

“Of course the Chinese were not happy,” said a foreign diplomat in Beijing focused on North Korea. “Executing your uncle, that’s from the feudal ages.”

In an attempt to warm ties, Xi sent high-ranking Communist Party official Liu Yunshan to attend the North’s October 2015 military parade marking the 70th anniversary of the founding of the Workers’ Party of Korea.

Liu hand-delivered a letter from Xi praising Kim’s leadership and including congratulations not just from the Chinese Communist Party but Xi’s personal “cordial wishes” in a powerful show of respect.

Xi’s overture has been repaid with increasingly brazen actions by Pyongyang, which many observers believe are timed for maximum embarrassment to Beijing. Sunday’s nuclear test, for example, took place as China hosted a BRICS summit, while in May, the North launched a long-range missile just hours before the Belt and Road Forum, dedicated to Xi’s signature foreign policy initiative.

MISREADING LIPS

Mao Zedong’s description of North Korea’s relationship with China is typically mischaracterised as being as close as “lips and teeth”.

His words are better translated as: “If the lips are gone, the teeth will be cold,” a reference to the strategic importance of the North as a geographical security buffer.

Despite its resentment at the pressure North Korea’s actions have put it under, Beijing refrains from taking too hard a line.

It said little when Kim Jong Un’s half-brother was assassinated in February at Kuala Lumpur’s airport. The half-brother, Kim Jong Nam, had been seen as a potential rival for power in Pyongyang and had lived for years in Beijing, then Macau.

An editorial in China’s influential Global Times warned after Pyongyang’s latest nuclear test that cutting off North Korea’s oil would redirect the conflict to one between North Korea and China.

Zhao Tong, a North Korea expert at the Carnegie-Tsinghua Center in Beijing, said North Korea was deeply unhappy with China’s backing of earlier UN sanctions.

“If China supports more radical economic sanctions that directly threaten the stability of the regime, then it is possible that North Korea becomes as hostile to China as to the United States.”

(This story has been refiled to remove reference to uncle in paragraph 18)

(Reporting by Philip Wen and Christian Shepherd; Editing by Tony Munroe and Lincoln Feast)

Putin says sanctions, pressure alone won’t resolve North Korea crisis

Putin says sanctions, pressure alone won't resolve North Korea crisis

By Denis Pinchuk and Christine Kim

VLADIVOSTOK, Russia/SEOUL (Reuters) – Resolving the North Korean nuclear crisis is impossible with sanctions and pressure alone, Russian President Vladimir Putin said on Wednesday after meeting his South Korean counterpart, adding that the impact of cutting oil would be worrying.

Putin met South Korea’s Moon Jae-in on the sidelines of an economic summit in the eastern Russian city of Vladivostok amid mounting international concern that their neighbor plans more weapons tests, possibly a long-range missile launch ahead of a weekend anniversary.

Putin denounced North Korea’s sixth and largest nuclear bomb test on Sunday, saying Russia did not recognize its nuclear status.

“Pyongyang’s missile and nuclear program is a crude violation of U.N. Security Council resolutions, undermines the non-proliferation regime and creates a threat to the security of northeastern Asia,” Putin said at a joint news conference.

“At the same time, it is clear that it is impossible to resolve the problem of the Korean peninsula only by sanctions and pressure,” he said.

No headway could be made without political and diplomatic tools, Putin said, later telling the TASS news agency that Russian and North Korean delegations might meet at the Vladivostok forum.

Moon, who came to power this year advocating a policy of pursuing engagement with North Korea, has come under increasing pressure to take a harder line.

He has asked the United Nations to consider tough new sanctions after North Korea’s latest nuclear test.

Diplomats say the U.N. Security Council could consider banning North Korean textile exports, barring its airline or stopping supplies of oil to the government and military.

Other measures could include preventing North Koreans from working abroad and putting top officials on a blacklist aimed at imposing asset freezes and travel bans.

“I ask Russia to actively cooperate as this time it is inevitable that North Korea’s oil supply should be cut at the least,” Moon told Putin, according to a readout from a South Korean official.

Putin said North Korea would not give up its nuclear program no matter how tough the sanctions.

“We too, are against North Korea developing its nuclear capabilities and condemn it, but it is worrying cutting the oil pipeline will harm the regular people, like in hospitals,” Putin said, according to the South Korean presidential official.

Russia’s exports of crude oil to North Korea were tiny at about 40,000 tonnes a year, Putin said. By comparison, China provides it with about 520,000 tonnes of crude a year, according to industry sources.

Last year, China shipped just over 96,000 tonnes of gasoline and almost 45,000 tonnes of diesel to North Korea, where it is used across the economy, from fishermen and farmers to truckers and the military.

‘FREEZE FOR FREEZE’

Sanctions have done little to stop North Korea boosting its nuclear and missile capacity as it faces off with U.S. President Donald Trump, who has vowed to stop it from being able to hit the U.S. mainland with a nuclear weapon.

China and Russia have advocated a “freeze for freeze” plan, where the United States and South Korea stop major military exercises in exchange for North Korea halting its weapons programs, but neither side is willing to budge.

North Korea says it needs to develop its weapons to defend itself against what it sees as U.S. aggression.

South Korea and the United States are technically still at war with North Korea after the 1950-53 Korean conflict ended with a truce, not a peace treaty.

China objects to both the military drills and the deployment in South Korea of an advanced U.S. missile defense system that has a radar that can see deep into Chinese territory.

South Korea’s Defence Ministry said the four remaining batteries of the Terminal High Altitude Area Defense (THAAD) system would be deployed on a golf course in the south of the country on Thursday.

Two THAAD batteries have already been installed.

Chinese Foreign Ministry spokesman Geng Shuang reiterated China’s opposition to the system, saying it could only “severely damage” regional security and raise “tensions and antagonism”.

“China strongly urges the United States and South Korea to pay attention to China and other regional nations’ security interests and concerns, immediately halt the progress of the relevant deployment, and remove the relevant equipment,” Geng said.

BIG BLAST

Asian stocks fell on Wednesday after a slide on Wall Street overnight while the dollar was on the defensive with Korean tension showing few signs of abating.

Sunday’s test of what North Korea said was an advanced hydrogen bomb was its largest by far.

Japan upgraded its assessment of the North Korean test to 160 kilotons from 120 kilotons after the size of the earthquake it generated was revised to magnitude 6.1.

“We estimate this was far bigger than previous nuclear tests,” Defence Minister Itsunori Onodera told reporters.

Satellite imagery appeared to show the blast caused landslides at North Korea’s Punggye-ri test site, according to 38 North, a Washington-based North Korean monitoring project.

South Korean officials said they were watching for radioactive fallout from the test and for signs of preparations for more activity.

British Defence Secretary Michael Fallon said on Wednesday China held the key to resolving the crisis, reiterating comments made by Prime Minister Theresa May and Australian leader Malcolm Turnbull after they spoke with Trump.

“China holds the key, the oil to North Korea flows from China … China has not just influence but has many of the levers that are needed to change behavior in North Korea,” Fallon told BBC radio.

For a graphic on nuclear North Korea, click: http://fingfx.thomsonreuters.com/gfx/rngs/NORTHKOREA-MISSILES/010031V7472/index.html

(Additional reporting by Soyoung Kim in SEOUL, Stephanie Nebehay in GENEVA, William Mallard and Kaori Kaneko in TOKYO, Christian Shepherd and Michael Martina in BEIJING; Writing by Lincoln Feast; Editing by Paul Tait, Robert Birsel)

Putin: Russia reserves right to cut further U.S. diplomatic mission

Russian President Vladimir Putin attends a news conference after BRICS (Brazil, Russia, India, China and South Africa) Summit in Xiamen, China September 5, 2017. Sputnik/Mikhail Klimentyev/Kremlin via REUTERS

By Denis Pinchuk

XIAMEN, China (Reuters) – Russia reserves the right to cut further the number of U.S. diplomatic staff in Moscow, Russian President Vladimir Putin said on Tuesday, in response to what he called Washington’s “boorish” treatment of Russia’s diplomatic mission on U.S. soil.

Speaking after U.S. officials ordered Russia to vacate diplomatic premises in several American cities, Putin said he would order the Russian foreign ministry to take legal action over alleged violations of Russia’s property rights.

“That the Americans reduced the number of our diplomatic facilities – this is their right,” Putin told a news conference in the Chinese city of Xiamen, where he was attending a summit of major emerging economies.

“The only thing is that it was done in such a clearly boorish manner. That does not reflect well on our American partners. But it’s difficult to conduct a dialogue with people who confuse Austria and Australia. Nothing can be done about it. Probably such is the level of political culture of a certain part of the U.S. establishment.”

“As for our buildings and facilities, this is an unprecedented thing,” Putin said. “This is a clear violation of Russia’s property rights. Therefore, for a start, I will order the Foreign Ministry to go to court – and let’s see just how efficient the much-praised U.S. judiciary is.”

U.S. President Donald Trump took office in January, saying he wanted to improve ties with Russia. Putin also spoke favorably of Trump.

But relations have been damaged by accusations from U.S. intelligence officials that Russia sought to meddle in the presidential election. Russia has denied interfering in the vote.

Asked by a reporter if he was disappointed with Trump, Putin said: “Whether I am disappointed or not, your question sounds very naive – he is not my bride and, likewise, I am neither his bride nor bridegroom.”

“We are both statesmen. Every nation has interests of its own. In his activities, Trump is guided by the national interests of his country, and I by the interests of mine.”

“I greatly hope that we will be able, just as the current U.S. president said, to find some compromises while resolving bilateral and international problems … taking into account our joint responsibility for international security.”

DIPLOMATIC PARITY

The U.S. order for Russia to vacate some of its diplomatic properties was the latest in a series of tit-for-tat actions that began when former U.S. president Barack Obama, late last year, expelled 35 Russian diplomats.

The Obama administration said it was retaliating for Russian meddling in the U.S. presidential election.

In July, Moscow responded, ordering the United States to cut the number of its diplomatic and technical staff working in Russia by around 60 percent, to 455.

Moscow said the move aimed to bring the number of U.S. and Russian diplomats working on each other’s soil to parity. But Putin said the latest expulsions ordered by Washington brought the number of Russian diplomats on U.S. soil to below parity.

He said the United States was erroneously counting 155 Russian diplomats working at the United Nations headquarters in New York as being Russian diplomats on U.S. soil. If they are removed from the equation, Putin said, Russia has fewer than 455 diplomats in the United States.

“We reserve the right to take a decision on the number of U.S. diplomats in Moscow. But we won’t do that for now. Let’s wait and see how the situation develops further,” he said.

The United States has ordered the closure of the Russian consulate in San Francisco and two buildings housing trade missions in Washington and New York.

U.S.-Russian relations have also been badly strained by Moscow’s annexation of Crimea in 2014 and the subsequent separatist conflict in eastern Ukraine, developments which led Washington to impose economic sanctions on Russia.

Trump, himself battling allegations that his associates colluded with Russia, grudgingly signed into law the new sanctions against Moscow that had been drawn up by Congress.

(Reporting by Denis Pinchuk; Writing by Dmitry Solovyov; Editing by Christian Lowe and Gareth Jones)

After North Korea missile, Britain and Japan agree closer security ties

British Prime Minister Theresa May (3rd L) and members of Japan's National Security Council pose for the media prior to their meeting at Japan's Prime Minister Shinzo Abe's official residence in Tokyo on August 31, 2017. (L-R) Defense Minister Itsunori Onodera, Chief Cabinet Secretary Yoshihide Suga, British Prime Minister Theresa May, Prime Minister Shinzo Abe, Deputy Prime Minister and Finance Minister Taro Aso, Foreign Minister Taro Kono, and Shotaro Yachi, head of the National Security Council. REUTERS/Kazuhiro Nogi/Pool

By William James

TOKYO (Reuters) – Britain and Japan said on Thursday they would cooperate in countering the threat posed by North Korea, two days after it fired a missile over northern Japan, and will call on China to exert its leverage.

Prime Minister Theresa May, looking to strengthen relations with one of her closest allies ahead of Brexit, is visiting Japan as it responds to an increasing military threat.

Terming North Korea’s missile program “a global threat”, Prime Minister Shinzo Abe told a news conference that Japan and Britain would cooperate.

“It is very meaningful that Prime Minister May and I agreed to further strengthen pressure on North Korea and to call on China to play a larger role,” he added.

May agreed, noting that China, North Korea’s lone major ally, had been involved in U.N. Security Council debate earlier this week.

“China does have a particular position in this, they have leverage on North Korea and I believe we should be encouraging China to exercise that leverage to do what we all want – which is to ensure that North Korea is not conducting these illegal acts.”

May toured Japan’s flagship Izumo helicopter carrier for a military briefing with Minister of Defence Itsunori Onodera before attending a national security meeting.

May and Abe agreed on a joint declaration on security cooperation, including plans for British soldiers to take part in military exercises on Japanese soil and for collaboration to address the threat of cyber and militant attacks when Japan hosts the Olympics in 2020.

North Korea featured heavily in the talks after it launched a ballistic missile on Tuesday that passed over Japanese territory, prompting international condemnation.

May’s office had said the two leaders were expected to discuss the possibility of further sanctions on North Korea, but neither Abe nor May touched on the issue at the news conference.

The Global Times, a publication of the official People’s Daily of China’s ruling Communist Party, criticized an earlier comment of May’s comment calling for more pressure from China.

“Beijing does not need London to teach it how to deal with North Korea,” the newspaper said.

Asked about the United States, Japan and Britain looking to impose new sanctions on North Korea, Chinese Foreign Ministry spokeswoman Hua Chunying said the situation could only be resolved peacefully through dialogue.

“We think it is regrettable that some countries selectively overlook the relevant Security Council resolutions’ demand to advance dialogue, and stubbornly emphasize pressure and sanctions,” she told a daily news briefing.

‘OUTWARD-LOOKING’

Apart from security, May’s trip has focused on trade and investment. She is keen to convince nervy investors that Britain’s exit from the European Union will not make it a less attractive business partner.

Both May and Abe addressed a delegation of British business leaders and senior representatives from major Japanese investors in Britain, such as carmakers Nissan, Toyota and conglomerate Hitachi.

Abe told the gathering that May had assured him Britain’s negotiations on leaving the European Union would be transparent.

May said Japanese investment after Britain’s vote to leave the EU was a vote of confidence and she pledged to build close trade ties with Japan.

“I very much welcome the commitment from Japanese companies such as Nissan, Toyota, Softbank and Hitachi,” May said.

“I am determined that we will seize the opportunity to become an ever more outward-looking global Britain, deepening our trade relations with old friends and new allies.”

During a two-hour train ride between Kyoto and Tokyo late on Wednesday, the two leaders discussed Brexit, with May talking Abe through the details of a series of papers published in recent weeks setting out her negotiating position.

May said on Wednesday Japan’s upcoming trade deal with the EU could offer a template for a future Japan-Britain trade agreement, the latest attempt to show investors that Brexit will not lead to an overnight change in business conditions.

Japan has been unusually open about its concerns over Brexit, worrying that 40 billion pounds ($51.68 billion) of Japanese investment in the British economy could suffer if trading conditions change abruptly when Britain leaves the bloc.

(Additional reporting by Tim Kelly, Elaine Lies, Linda Sieg, Kiyoshi Takenaka and Takashi Umekawa, and Michael Martina in BEIJING; Editing by Clarence Fernandez, Robert Birsel and Nick Macfie)

U.S. bombers drill over Korean peninsula after latest North Korea launch

U.S. bombers drill over Korean peninsula after latest North Korea launch

By Jack Kim and Kaori Kaneko

SEOUL/TOKYO (Reuters) – South Korean and Japanese jets joined exercises with two U.S. nuclear-capable bombers above and near the Korean peninsula on Thursday, two days after North Korea fired a missile over Japan, sharply raising tension.

The drills, involving two supersonic U.S. B-1B bombers, four U.S. stealth F-35B jets as well as South Korean and Japanese fighter jets, came at the end of annual joint U.S.-South Korea military exercises focused mainly on computer simulations.

“North Korea’s actions are a threat to our allies, partners and homeland, and their destabilizing actions will be met accordingly,” said General Terrence J. O’Shaughnessy, Pacific Air Forces commander, who made an unscheduled visit to Japan.

“This complex mission clearly demonstrates our solidarity with our allies and underscores the broadening cooperation to defend against this common regional threat. Our forward deployed force will be the first to the fight, ready to deliver a lethal response at a moment’s notice if our nation calls.”

North Korea has made no secret of its intention to develop the knowhow to launch a nuclear-tipped missile at the United States and has recently threatened the U.S. Pacific territory of Guam. It denounced the U.S. exercises in traditionally robust fashion.

“The U.S. imperialists and the south Korean puppet forces do not hide their bellicose nature, claiming that the exercises are to ‘counter’ the DPRK’s ballistic rocket launches and nuclear weapons development,” the North’s KCNA news agency said, referring to North Korea by its official name, the Democratic People’s Republic of Korea (DPRK).

“But the wild military acts of the enemies are nothing but the rash act of those taken aback by the intermediate-to-long range strategic ballistic rocket launching drill conducted by the army of the DPRK as the first military operation in the Pacific.”

U.S. President Donald Trump has warned North Korea it would face “fire and fury” if it threatened the United States and that the U.S. military was “locked and loaded” in case of any provocation.

Trump on Wednesday declared “talking is not the answer” to resolving the long-standing impasse.

“The U.S. has been talking to North Korea, and paying them extortion money, for 25 years,” Trump, who last week said North Korean leader Kim Jong Un was “starting to respect” the United States, wrote on Twitter.

“Talking is not the answer!”

However, U.S. Defence Secretary Jim Mattis, when asked by reporters just hours later if the United States had run out of diplomatic solutions with North Korea, replied: “No.”

“We are never out of diplomatic solutions,” Mattis said before a meeting with his South Korean counterpart at the Pentagon. “We continue to work together, and the minister and I share a responsibility to provide for the protection of our nations, our populations and our interests.”

Japanese Defence Minister Itsunori Onodera spoke to Mattis by telephone and agreed to keep putting pressure on North Korea in a “visible” form, Japan’s defense ministry said. Japanese Prime Shinzo Abe said he and visiting British Prime Minister Theresa May agreed to urge China, North Korea’s lone major ally, to do more to rein in the North.

They also discussed the possibility of adopting a new U.N. Security Council resolution over North Korea, a British government source said.

SANCTION OPTIONS

The 15-member Security Council on Tuesday condemned the firing of an intermediate range ballistic missile over Japan as “outrageous” and demanded that North Korea halt its weapons program, but the U.S.-drafted statement did not threaten new sanctions.

Japan was pushing the United States to propose new U.N. Security Council sanctions, which diplomats said could target North Korea’s laborers working abroad, oil supply and textile exports.

Diplomats expected resistance from Russia and fellow veto-wielding power China, particularly given new measures were only recently imposed after North Korea staged two long-range missile launches in July.

A U.S. ban on travel to North Korea comes into effect on Friday, curbing one of its few remaining supplies of foreign currency.

China again urged restraint from all parties.

Defence ministry spokesman Ren Guoqiang told a monthly briefing that China would never allow war or chaos on the Korean peninsula, its doorstep, and military means were not an option.

“China strongly demands all sides to exercise restraint and remain calm and not do anything to worsen tensions,” Ren said, adding that Chinese forces were maintaining a normal state of alert along the North Korean border.

Chinese foreign ministry spokeswoman Hua Chunying said the situation on the peninsula was serious.

“I also want to stress that the current tense situation on the peninsula isn’t a screenplay or a video game,” she told reporters.

“It’s real, and is an immense and serious issue that directly involves the safety of people from both the north and south of the peninsula, as well as peace and stability of the entire region.”

‘KEY MILESTONE’

The Pentagon’s Missile Defense Agency and the crew of the guided-missile destroyer USS John Paul Jones conducted a “complex missile defense flight test” off Hawaii on Wednesday, resulting in the intercept of a medium-range ballistic missile target, the agency said.

The agency’s director, Lieutenant General Sam Greaves, called the test “a key milestone” in giving U.S. Navy Aegis Ballistic Missile Defense ships an enhanced capability, but did not mention North Korea.

The United States and South Korea are technically still at war with North Korea because their 1950-53 conflict ended in a truce, not a peace treaty.

North Korea routinely says it will never give up its weapons programs, calling them necessary to counter perceived American hostility.

For an interactive on North Korea’s missile capabilities, click: http://fingfx.thomsonreuters.com/gfx/rngs/NORTHKOREA-MISSILES/010041L63FE/index.html

For a graphic on North Korean missile trajectories, ranges, click: http://fingfx.thomsonreuters.com/gfx/rngs/NORTHKOREA-MISSILES/010050CG0RT/NORTHKOREA-MISSILES.png

For a graphic on Kim’s new act of defiance, click: http://fingfx.thomsonreuters.com/gfx/rngs/NORTHKOREA-MISSILES/010050KV1C3/index.html

(Additional reporting by Tim Kelly, Linda Sieg, William James and Nubohiro Kubo in TOKYO, Michael Martina and Ben Blanchard in BEIJING; Writing by Lincoln Feast and Nick Macfie; Editing by Raju Gopalakrishnan, Robert Birsel)

Germany keen to avoid new ‘ice age’ in ties between Russia, West

U.S. Secretary of State Rex Tillerson (R) and German Foreign Minister Sigmar Gabriel walk out to meet the press where Tillerson made a statement about the flooding in Houston, Texas, but declined questions, prior to a bilateral meeting, at the State Department, in Washington, U.S., August 29, 2017. REUTERS/Mike Theiler

WASHINGTON (Reuters) – Germany and Europe want to ensure that new U.S. sanctions against Russia do not lead to a new “ice age” in ties between Russia and the West, German Foreign Minister Sigmar Gabriel said on Tuesday.

Gabriel said he spoke with U.S. Secretary of State Rex Tillerson about the sanctions in a meeting in Washington, adding that he was grateful that U.S. President Donald Trump had agreed to coordinate on further measures with U.S. allies.

“We as Europeans have great concerns that this will have unintended consequences for Europe. We don’t want to completely destroy our business relations with Russia, especially in the energy sector,” Gabriel said.

Trump this month approved new sanctions on Moscow for its 2014 annexation of Ukraine’s Crimea peninsula and for what U.S. intelligence agencies say was its meddling in the U.S. presidential election, a charge Russia denies.

Gabriel has criticized the United States for the move, saying the new punitive measures expose European companies involved in energy projects in Russia to fines for breaching U.S. law.

Economy Minister Brigitte Zypries even urged the EU to retaliate against the United States if the new sanctions on Russia should end up penalizing German firms.

Gabriel said European leaders were concerned that the latest sanctions would not only have economic consequences, but could also “lead to a new ice age between Russia and the United States and the West.”

Despite European concerns about the sanctions, Gabriel insisted that Moscow must do its part to implement a fragile ceasefire agreement in place for eastern Ukraine, including the withdrawal of heavy weapons.

“That would be a starting point for improved relations,” Gabriel said.

German Chancellor Angela Merkel and French President on Monday called for Russia and Ukraine to increase their efforts to implement the ceasefire agreement.

The conflict between Ukrainian forces and Russian-backed separatists has claimed more than 10,000 lives since it erupted in 2014. Germany and France have tried to convince both sides to implement a peace deal agreed in Minsk in 2015 but with little success so far.

(Reporting by Andrea Shalal; Editing by Hugh Lawson)

Canadian pastor escaped execution due to foreign citizenship

Pastor Hyeon Soo Lim speaks at the Light Presbyterian Church in Mississauga.

TORONTO (Reuters) – A Canadian pastor whom North Korea released this month after two years of imprisonment escaped execution and torture during his captivity because of his nationality, he told CBC News in his first interview since his return.

Hyeon Soo Lim, the pastor from Toronto, said in an interview broadcast on Saturday that he was never harmed and that he would not hesitate to go back to North Korea if the country allowed him. A transcript of the interview was posted on the Canadian public broadcaster’s website.

“If I’m just Korean, maybe they kill me,” Lim said. “I’m Canadian so they cannot, because they cannot kill the foreigners.”

Lim, formerly the senior pastor at one of Canada’s largest churches, had disappeared on a mission to North Korea in early 2015. He was sentenced to hard labor for life in December 2015 on charges of attempting to overthrow the Pyongyang regime.

He said North Korea treated him well despite forcing him to dig holes and break coal by hand all day in a labor camp.

Lim told CBC News that he was “coached and coerced” into confessing that he traveled under the guise of humanitarian work as part of a “subversive plot” to overthrow the government and set up a religious state.

North Korea let him go on humanitarian grounds. The announcement came during heightened tensions between Washington and Pyongyang, although authorities have not said there was any connection between his release and efforts to defuse the standoff over North Korea’s nuclear program.

Lim said he felt no anger at the Kim Jong Un regime for sentencing him to prison.

“No, I thanked North Korea,” he said. “I forgive them.”

 

(Reporting by Denny Thomas; Editing by Lisa Von Ahn)

 

Russian nuclear bombers fly near North Korea in rare show of force

A Russian TU-95 bomber flies over around southern part of Japan in this handout picture taken by Japan Air Self-Defence Force and released by the Joint Staff Office of the Defense Ministry of Japan August 23, 2017. Picture taken August 23, 2017. Joint Staff Office of the Defense Ministry of Japan/HANDOUT via REUTERS

By Andrew Osborn

MOSCOW (Reuters) – Russian nuclear-capable strategic bombers have flown a rare mission around the Korean Peninsula at the same time as the United States and South Korea conduct joint military exercises that have infuriated Pyongyang.

Russia, which has said it is strongly against any unilateral U.S. military action on the peninsula, said Tupolev-95MS bombers, code named “Bears” by NATO, had flown over the Pacific Ocean, the Sea of Japan, the Yellow Sea and the East China Sea, prompting Japan and Seoul to scramble jets to escort them.

The flight, which also included planes with advanced intelligence gathering capabilities, was over international waters and was announced by the Russian Defence Ministry on the same day as Moscow complained about the U.S.-South Korean war games.

“The US and South Korea holding yet more large-scale military and naval exercises does not help reduce tensions on the Korean Peninsula,” Maria Zakharova, a spokeswoman for the foreign ministry, told a news briefing in Moscow.

“We urge all sides to exercise maximum caution. Given the arms build-up in the region, any rash move or even an unintended incident could spark a military conflict.”

The United States and South Korea began the long-planned joint military exercises on Monday, heightening tensions with Pyongyang which called the drills a “reckless” step towards nuclear conflict.

Some military experts regard the hulking Russian turboprop bombers which made the flight near the Korean Peninsula as a relic of the Cold War. But Russia has upgraded the aircraft since the Soviet fall and, since 2007, has used the planes to back its diplomacy with shows of force and to probe other countries’ airspaces.

Moscow said the bombers had been accompanied by Sukhoi-35S fighter jets and A-50 early warning and control aircraft.

The A-50s, the Russian equivalent of the Boeing E-3 Sentry AWACS aircraft, are designed to track aerial and ground targets at a long range, among other capabilities.

TENSIONS

Moscow did not say how many aircraft had taken part or when the mission had taken place.

“Our long-range aviation pilots, according to an established plan, regularly carry out flights over neutral waters over the Atlantic, the Arctic, the Black Sea and the Pacific Ocean from their bases and from tactical airfields,” the defense ministry said in the same statement.

It said the TU-95MS bombers were refueled in mid-air during the mission, and that during parts of the route they had been escorted by South Korean and Japanese military jets.

Russia, which shares a border with North Korea, has repeatedly voiced concerns about rising tensions on the Korean Peninsula caused by Pyongyang’s nuclear missile program, and has also complained about possible plans by Japan to deploy a U.S. anti-missile system on its soil.

Foreign Ministry Spokeswoman Zakharova said on Thursday that if Tokyo did go ahead and opt to deploy such a system it would be disproportional to the North Korean missile threat and could upset wider strategic stability in the region.

Japan has at least twice before this year been forced to scramble its jets to intercept Russian aircraft.

The daily Izvestia newspaper reported in October last year that Russia was close to finishing setting up a new division of heavy bombers to patrol “the Japan-Guam-Hawaiian Islands triangle.”

(Additional reporting by Dmitry Solovyov; Editing by Ralph Boulton)

North Korea presses rocket program, but amid signs of drama easing

North Korean leader Kim Jong-Un smiles during a visit to the Chemical Material Institute of the Academy of Defense Science in this undated photo released by North Korea's Korean Central News Agency (KCNA) in Pyongyang on August 23, 2017. KCNA/via REUTERS

By Christine Kim

SEOUL (Reuters) – North Korean leader Kim Jong Un has ordered more solid-fuel rocket engines, state media reported on Wednesday, as he pursues nuclear and missile programs amid a standoff with Washington, but there were signs of tension easing.

The report carried by the KCNA news agency lacked the traditionally robust threats against the United States after weeks of unbridled acrimony, and U.S. President Donald Trump expressed optimism about a possible improvement in relations.

“I respect the fact that he is starting to respect us,” Trump said of Kim at a raucous campaign rally in Phoenix, Arizona.

“And maybe – probably not, but maybe – something positive can come about,” he said.

The KCNA report, about a visit by Kim to a chemical institute, came not long after U.S. Secretary of State Rex Tillerson appeared to make a peace overture, welcoming what he called recent restraint shown by the reclusive North.

Kim was briefed about the process of manufacturing intercontinental ballistic missile (ICBM) warhead tips and solid-fuel rocket engines during his tour of the Chemical Material Institute of the Academy of Defence Science, KCNA said.

“He instructed the institute to produce more solid-fuel rocket engines and rocket warhead tips by further expanding engine production process and the production capacity of rocket warhead tips and engine jets by carbon/carbon compound material,” KCNA said.

North Korea has conducted two nuclear tests and dozens of missile tests since the beginning of last year, significantly raising tension on the heavily militarized Korean peninsula and in defiance of U.N. Security Council resolutions. Two ICBM tests in July resulted in a new round of tougher global sanctions.

The last missile test on July 28 put the U.S. mainland in range, prompting heated exchanges that raised fears of a new conflict on the peninsula.

Tillerson, however, noted what he called the restraint the North had shown and said on Tuesday he hoped a path could be opening for dialogue.

SIMULATED WAR DRILLS

South Korea and the United States are conducting an annual military exercise this week involving computer simulations of a war.

The drills, which the North routinely describes as preparation for invasion, run until Aug. 31, and included South Korean a civil defense exercise on Wednesday that saw traffic halted, movie screenings interrupted and hundreds of thousands of people directed to underground shelters.

The KCNA report said Kim had given “special thanks and special bonus” to officials of the institute, calling them heroes. A photograph showed Kim in a gray pinstriped suit, smiling before a large flow chart that described some kind of manufacturing process.

There was none of the fiery rhetoric of recent weeks, when Kim threatened to fire missiles into the sea near the U.S. Pacific territory of Guam after Trump warned North Korea it would face “fire and fury” if it threatened the United States.

But there were some signs of tension after the United States imposed new North Korea-related sanctions, targeting Chinese and Russian firms and individuals for supporting North Korea’s weapons programs.

The U.S. Treasury designated six Chinese-owned entities, one Russian, one North Korean and two based in Singapore. They included a Namibia-based subsidiary of a Chinese company and a North Korean entity operating in Namibia.

China reacted with irritation, saying the United States should “immediately correct its mistake” of imposing unilateral sanctions on Chinese companies and individuals.

Chinese Foreign Ministry spokeswoman Hua Chunying said all sides, especially the United States and North Korea, needed to exercise restraint.

“We hope all sides can be brave enough to shoulder their responsibilities, show goodwill to each other and take correct actions to help further ease tensions,” she told a regular press briefing.

Singapore-registered companies Velmur Management and Transatlantic Partners were named in the U.S. Treasury’s sanction statement as providing oil to North Korea and working with designated individuals.

Singapore’s Ministry of Foreign Affairs said U.S. authorities had informed them prior to the designations and it was investigating.

“Singapore will strictly fulfil its obligations under the UNSCRs and international law, and not allow our financial system to be abused for the conduct of illicit activities,” the ministry said in a statement, referring to U.N. Security Council resolutions.

Both Velmur and Transatlantic are represented by business service providers in Singapore that manage their local registrations.

Rivkin, which provides secretarial services for Velmur, said it would end its business relationship with the company and file a suspicious transaction report on their dealings to the police.

A representative for MEA Business Consultancy, which is located at the registered address for Transatlantic, said it provided services for the firm but only for registration purposes.

The United States has long urged China to do more to rein in North Korea, which counts Beijing as its lone major ally. Data released on Wednesday showed China’s trade with North Korea fell in July from a month earlier as a ban on coal purchases from its isolated neighbor slowed imports.

The United States is technically still at war with the North because their 1950-53 conflict ended in a truce, not a peace treaty. The North routinely says it will never give up its weapons programs, saying they are necessary to counter U.S. hostility.

(Additional reporting by Steve Holland in PHOENIX, David Brunnstrom and Doina Chiacu in WASHINGTON, Josephine Mason and Ben Blanchard in BEIJING and Fathin Ungku and Karishma Singh in SINGAPORE; Writing by Nick Macfie; Editing by Paul Tait, Robert Birsel)