Korea tensions ease slightly as U.S. officials play down war risks

A South Korean soldier stands guard at a guard post near the demilitarized zone separating the two Koreas in Paju, South Korea, August 14, 2017.

By Christine Kim and Ben Blanchard

SEOUL/BEIJING (Reuters) – Tension on the Korean peninsula eased slightly on Monday as South Korea’s president said resolving North Korea’s nuclear ambitions must be done peacefully and U.S. officials played down the risk of an imminent war.

Concern that North Korea is close to achieving its goal of putting the mainland United States within range of a nuclear weapon has caused tension to spike in recent months.

U.S. President Donald Trump warned last week that the U.S. military was “locked and loaded” if North Korea acted unwisely after threatening to land missiles in the sea near the U.S. Pacific territory of Guam.

“There must be no more war on the Korean peninsula. Whatever ups and downs we face, the North Korean nuclear situation must be resolved peacefully,” South Korean President Moon Jae-in told a meeting with senior aides and advisers.

“I am certain the United States will respond to the current situation calmly and responsibly in a stance that is equal to ours,” he said.

U.S. Defense Secretary Jim Mattis and Secretary of State Rex Tillerson sent a conciliatory message to North Korea in an op-ed piece in the Wall Street Journal on Sunday.

“The U.S. has no interest in regime change or accelerated reunification of Korea. We do not seek an excuse to garrison U.S. troops north of the Demilitarized Zone,” the officials said, addressing some of Pyongyang’s fears that Washington ultimately intends to replace the reclusive country’s leadership.

The article took a softer tone on North Korea than the president, who warned Pyongyang last week of “fire and fury” if it launched an attack.

Mattis and Tillerson underlined that the United States aims “to achieve the complete, verifiable and irreversible denuclearization of the Korean Peninsula and a dismantling of the regime’s ballistic-missile programs.”

“While diplomacy is our preferred means of changing North Korea’s course of action, it is backed by military options,” they said.

The United States is adopting a policy of “strategic accountability” towards North Korea, the officials wrote, but it is not clear how this significantly differs from the “strategic patience” Korea policy of former President Barack Obama.

A global index of stocks rose, after fears of a U.S.-North Korea nuclear standoff had driven it to the biggest weekly losses of 2017, while the dollar also strengthened.

U.S. Central Intelligence Agency Director Mike Pompeo said North Korean leader Kim Jong Un might conduct another missile test but talk of being on the cusp of a nuclear war was overstating the risk.

“I’ve seen no intelligence that would indicate that we’re in that place today,” Pompeo told “Fox News Sunday”.

However, North Korea reiterated its threats, with its official KCNA news agency saying “war cannot be blocked by any power if sparks fly due to a small, random incident that was unintentional”.

“Any second Korean War would have no choice but to spread into a nuclear war,” it said in a commentary.

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

MISSILE DOUBTS

South Korean Vice Defence Minister Suh Choo-suk agreed North Korea was likely to continue provocations, including nuclear tests, but did not see a big risk of the North engaging in actual military conflict.

Suh again highlighted doubts about North Korea’s claims about its military capability.

“Both the United States and South Korea do not believe North Korea has yet completely gained re-entry technology in material engineering terms,” Suh said in remarks televised on Sunday for a Korea Broadcasting System show.

Ukraine denied on Monday that it had supplied defense technology to North Korea, responding to an article in the New York Times that said North Korea may have purchased rocket engines from Ukrainian factory Yuzhmash.

Tension in the region has risen since North Korea carried out two nuclear bomb tests last year and two intercontinental ballistic missile tests in July, tests it often conducts to coincide with important national dates.

Tuesday marks the anniversary of Japan’s expulsion from the Korean peninsula, a rare holiday celebrated by both the North and the South. Moon and Kim, who has not been seen publicly for several days, are both expected to make addresses on their respective sides of the heavily militarised border.

Trump has urged China, the North’s main ally and trading partner, to do more to rein in its neighbor, often linking Beijing’s efforts to comments around U.S.-China trade. China strenuously rejects linking the two issues.

Trump will issue an order later on Monday to determine whether to investigate Chinese trade practices that force U.S. firms operating in China to turn over intellectual property, senior administration officials said on Saturday.

Chinese Foreign Ministry spokeswoman Hua Chunying said that Beijing has said many times the essence of China-U.S. trade and business ties is mutual benefit and that there is no future in any trade war between China and the United States.

“The (Korean) peninsula issue and trade and business issues are in a different category from each other,” Hua added. “On these two issues, China and the United States should respect each other and increase cooperation. Using one issue as a tool for exerting pressure on another is clearly inappropriate.”

China’s Commerce Ministry issued an order on Monday banning imports of coal, iron ore, lead concentrates and ore, lead and sea food from North Korea, effective from Tuesday.

The move followed the announcement of U.N. sanctions against North Korea this month which have to be enforced within 30 days by member states.

U.S. Joint Chiefs of Staff Chairman Joseph Dunford told South Korea’s Moon in a meeting on Monday that U.S. military options being prepared against North Korea would be for when diplomatic and economic sanctions failed, according to Moon’s office.

(Writing by Lincoln Feast and Alistair Bell; Editing by Raju Gopalakrishnan and James Dalgleish)

 

In call with Trump, China’s Xi urges restraint over North Korea

FILE PHOTO: Navy vessels are moored in port at the U.S. Naval Base Guam at Apra Harbor, Guam March 5, 2016. Major Jeff Landis,USMC (Ret.)/Naval Base Guam/Handout/File Photo via REUTERS

By James Oliphant and Ben Blanchard

BEDMINSTER, N.J./BEIJING (Reuters) – China’s President Xi Jinping said there needs to be a peaceful resolution to the North Korean nuclear issue, and in a telephone call with U.S. President Donald Trump he urged all sides to avoid words or action that raise tensions.

Xi’s comments came hours after Trump warned North Korea that the U.S. military was “locked and loaded” as Pyongyang accused the U.S. leader of driving the Korean peninsula to the brink of nuclear war.

The Pentagon said the United States and South Korea would proceed as planned with a joint military exercise in 10 days, an action sure to further antagonize North Korea.

In a statement, China’s foreign ministry said Xi told Trump that a peaceful resolution to the North Korean nuclear issue was essential, and urged calm.

“Concerned parties must exercise restraint and avoid remarks and actions that escalate tensions on the Korean peninsula,” it cited Xi as saying.

In their phone call, Trump and Xi “agreed North Korea must stop its provocative and escalatory behavior,” the White House said in a statement, and reiterated their mutual commitment to denuclearize the Korean peninsula. It added the relationship between Trump and Xi was “extremely close” and “will hopefully lead to a peaceful resolution of the North Korea problem.”

Trump, vacationing at his Bedminster, New Jersey, golf resort, earlier took to Twitter to warn North Korean leader Kim Jong Un that U.S. “military solutions are now fully in place, locked and loaded, should North Korea act unwisely”.

Again referring to Kim, Trump added, “If he utters one threat … or if he does anything with respect to Guam or any place else that’s an American territory or an American ally, he will truly regret it, and he will regret it fast.”

In remarks to reporters after a meeting with U.S. Secretary of State Rex Tillerson and U.S. Ambassador to the United Nations Nikki Haley, Trump said the situation with North Korea was “very dangerous and it will not continue”.

He added, “We will see what happens. We think that lots of good things could happen, and we could also have a bad solution.”

Despite the tough rhetoric, Trump insisted that “nobody loves a peaceful solution better than President Trump.”

South Korea’s presidential Blue House said in a statement on Saturday the United States and China were working to resolve the North Korea crisis, and it hoped the two leaders’ phone call “will be able to resolve the peak of tension and act as a catalyst for the situation to move on to a new dimension.”

(To view an interactive package on North Korea’s missile capabilities, click http://tmsnrt.rs/2t0oSv7)

TRUMP TO GUAM: “YOU’RE SAFE”

Guam, the Pacific island that is a U.S. territory and home to a U.S. air base, a Navy installation, a Coast Guard group and around 6,000 U.S. military personnel, posted emergency guidelines on Friday to help residents prepare for any potential nuclear attack.

North Korean state news agency KCNA said on Thursday the North Korean army would complete plans in mid-August to fire four intermediate-range missiles over Japan to land in the sea 18 to 25 miles (30 to 40 km) from Guam.

Japan’s government decided to deploy its Patriot missile defense system to four locations in the west of the country, media reported. No one at Japan’s defense ministry was available to comment on Saturday.

The governor of Guam, Eddie Baza Calvo, posted a video on Facebook of himself speaking with Trump. “We are with you a thousand percent. You are safe,” Trump told Calvo.

Washington wants to stop Pyongyang from developing nuclear missiles that could hit the United States. North Korea sees its nuclear arsenal as protection against the United States and its partners in Asia.

Trump said he was considering additional sanctions on North Korea, adding these would be “very strong.” He gave no details and did not make clear whether he meant unilateral or multilateral sanctions.

U.S. officials have said new U.S. steps that would target Chinese banks and firms doing business with Pyongyang are in the works, but these have appeared to be put on hold to give Beijing time to show it is serious about enforcing new U.N. sanctions.

BACK CHANNELS

Trump said he did not want to talk about diplomatic “back channels” with North Korea after U.S. media reports that Joseph Yun, the U.S. envoy for North Korea policy, had engaged in diplomacy for several months with Pak Song Il, a senior diplomat at Pyongyang’s U.N. mission, on the deteriorating ties and the issue of Americans imprisoned in North Korea.

But Daniel Russel, until April the top U.S. diplomat for East Asia, said this so-called New York channel had been a relatively commonplace means of communication with North Korea over the years, and was not a forum for negotiation.

“It’s never been a vehicle for negotiations and this doesn’t constitute substantive U.S.-DPRK dialogue,” he said, using the acronym for North Korea’s formal name, Democratic People’s Republic of Korea.

Both Moscow and Berlin expressed alarm over the rise in rhetoric over North Korea, and Russian Foreign Minister Sergei Lavrov urged Pyongyang and Washington to sign up to a joint Russian-Chinese plan by which North Korea would freeze missile tests and the United States and South Korea would impose a moratorium on large-scale military exercises. Neither the United States nor North Korea has embraced the plan.

German Chancellor Angela Merkel said there is no military solution, adding that “an escalation of the rhetoric is the wrong answer.”

The French presidency said North Korea was engaged in a “dangerous escalation” of tensions.

President Emmanuel Macron “calls for all parties to act responsibly and prevent any further escalation in tensions,” the Elysee palace said in a statement.

British Foreign Secretary Boris Johnson said blame for problems lay with North Korea, and that the international community was “shoulder to shoulder” in efforts to stop North Korean aggression.

“We are working with the US and our partners in the region to bring this crisis to a diplomatic end,” he tweeted.

As the rhetoric has ratcheted up, South Koreans are buying more ready-to-eat meals for emergency use, and the government aims to expand nationwide civil defense drills planned for Aug. 23. Hundreds of thousands of troops and huge arsenals are arrayed on both sides of the tense demilitarized zone between the two Koreas.

(Additional reporting by Doina Chiacu, David Brunnstrom and Idrees Ali in WASHINGTON, Dahee Kim, Haejin Choi and Christine Kim in SEOUL, Dustin Volz in SAN FRANCISCO, Tim Kelly in TOKYO, Martin Petty in GUAM, Michelle Nichols at the UNITED NATIONS, Dmitry Solovyov in MOSCOW, Joseph Nasr and Paul Carrel in BERLIN; Writing by Will Dunham, Eric Beech and Ian Geoghegan; Editing by Clarence Fernandez)

Minutes from missiles, Guam islanders get to grips with uncertain fate

A hotel receptionist reads a local newspaper in Tamuning, Guam, a U.S. Pacific Territory, August 12, 2017. REUTERS/Erik De Castro

By Martin Petty

GUAM (Reuters) – Fourteen minutes is not long to prepare for a potential catastrophe. That’s the estimated time taken from a launch of a mid-range ballistic missile in North Korea until impact on Guam, where residents seem resigned to the belief that their fate is out of their control.

The local government of this tiny U.S. Pacific island issued preparation guidance to its 163,000 people on Friday on how best to hide and deal with radiation after threats by Pyongyang to strike Guam, or test its missiles in its surrounding waters.

But islanders don’t seem in a hurry to get ready.

Mike Benavente, 37, who maintains air conditioners, said he saw the advisory on Facebook, but preferred family time at a beach barbecue to stocking up on supplies and thinking about suitable shelter options.

“Preparation for attack? I’m doing it!” he said, pointing to a grill he was readying for burgers and hot dogs. “If we have a big missile coming here, everyone’s gonna die. How can I prepare for a missile?”

In a guidance note titled “Preparing for an Imminent Missile Threat”, Guam Homeland Security advised seeking out in advance windowless shelters in homes, schools and offices, with concrete “dense enough to absorb radiation”.

It said if an attack warning came, residents should seek shelter and stay there for at least 24 hours. Those caught outside should lay down, cover their heads and “not look at the flash or fireball” to avoid going blind.

Plush hotels along Guam’s Tumon beach didn’t seem in a rush to prepare either. Staff at several hotels and resorts said they knew guidelines had been issued but already had procedures in place for emergencies.

“We have an evacuation plan for typhoon, tsunami, terrorism, but we don’t have anything for a North Korean missile attack,” said a supervisor at one resort, who asked that neither he nor his hotel be identified because he wasn’t authorized to speak to the media.

A manager at a hotel nearby had a printed copy of the guidelines, but said there was no instruction yet to distribute it to guests.

TIME LIMITED

North Korea on Thursday said plans would be completed by mid-August to fire four intermediate-range missiles to land near Guam, some 3,500 kilometers (2,175 miles) away, after U.S. President Donald Trump said any threat would be “met with fire and fury like the world has never seen.”

Guam, an island half the size of Hong Kong and some 7,000 km from the U.S. mainland, is a target because of its naval base and air force base, from which two B-1B supersonic bombers were deployed close to the Korean peninsula on Tuesday.

It is also a permanent home to a Terminal High Altitude Area Defense (THAAD) interceptor.

Local authorities have been reassuring residents and tourists that a “strategic defense umbrella” across the Western Pacific can counter any missile attacks, and the chance of a successful North Korean strike on Guam was minimal.

“Our confidence is it’s point zero zero, zero zero, zero – that’s five zeros – and a one,” the governor’s homeland security advisor, George Charfauros, said on Friday.

“The threat level has not changed. It’s business as usual.”

That was the case on Saturday in Guam’s malls and along its pristine beaches, where children played in the turquoise sea as parents drank beer and prepared picnics.

“I haven’t really thought about preparation. We really don’t know what to do if there’s a missile attack,” said Marlene, 37, an accountant.

“We get just 14 minutes. The military says they’ll be ready, so we’re banking on them.”

Auto parts seller Mitch Aguon, 51, spent his day off fishing and said preparation was pointless.

“By the time we hear about it, it’ll be too late and there’s no room for us ordinary Joes in the bomb shelters. We’re dead meat,” he said.

(Editing by Ian Geoghegan)

Simmering North Korea tensions knock back Wall Street

Simmering North Korea tensions knock back Wall Street

By Sruthi Shankar

(Reuters) – U.S. indexes were trading at session lows on Thursday afternoon, with the Dow and the Nasdaq posting triple-digit point declines, as investors fretted over escalating tensions between the United States and North Korea.

North Korea said it was completing plans to fire four intermediate-range missiles over Japan to land near the U.S. Pacific island territory of Guam in an unusually detailed threat.

The threat followed U.S. President Donald Trump’s warning on Tuesday that any threats by Pyongyang would be “met with fire and fury like the world has never seen”.

“Markets are looking for any reason at all for a reset. That reset is being triggered by North Korea geopolitical concern and stretched valuations,” said Peter Kenny, senior market strategist at Global Markets Advisory Group, New York.

Trump’s comments on Tuesday ended the Dow’s nine-day streak of record closes.

Investors on Thursday scampered to safe-haven assets such as gold and the Swiss franc, helping the precious metal hit a more two-month high.

The CBOE Volatility Index <.VIX>, the most widely followed barometer of expected near-term stock market volatility, rose to a near three-month high of 15.36.

At 12:36 p.m. ET (1636 GMT), the Dow Jones Industrial Average <.DJI> was down 158.98 points, or 0.72 percent, at 21,889.72 and the S&P 500 <.SPX> was down 27.37 points, or 1.11 percent, at 2,446.65.

The last time the S&P 500 fell over 1 percent was on May. 17.

The Nasdaq Composite <.IXIC> was down 115.35 points, or 1.82 percent, at 6,236.98. Apple <AAPL.O> was down 2.3 percent, weighing most on the index.

Shares of Macy’s <M.N> tumbled 9.5 percent and Kohl’s <KSS.N> 6.7 percent after the department store operators reported a drop in quarterly same-store sales that stoked concerns that their turnaround may still be a long way off.

Retailers’ results are being keenly watched by investors to gauge the companies’ strategy to counter No. 1 online retailer Amazon.com’s <AMZN.O> growth.

Data showed U.S. producer prices unexpectedly fell in July, recording their biggest drop in nearly a year, while another set showed the number of Americans filing for unemployment benefits unexpectedly rose last week.

“This inflation data for the month was not good. Wall Street was expecting more inflation. Every August we have some reason to run up the alarm”, Kenny said.

However, Federal Reserve Bank of New York President William Dudley suggested on Thursday that the central bank was on track to raise interest rates once more as he expects sluggish inflation to rise over the next several months.

Blue Apron <APRN.N> slumped as much as 19.1 percent to a record low after the meal-kit delivery service provider reported a bigger-than-expected loss in its first quarterly report as a public company.

Perrigo <PRGO.N> surged 17.6 percent after the drugmaker raised its full-year adjusted profit forecast. Declining issues outnumbered advancers on the NYSE by 2,461 to 444. On the Nasdaq, 2,303 issues fell and 567 advanced.

(Reporting by Sruthi Shankar in Bengaluru; Editing by Sriraj Kalluvila)

Qatar Airways evaluates routes opened by boycotting countries

FILE PHOTO: Qatar Airways aircraft at Hamad International Airport in Doha, Qatar June 12, 2017. REUTERS/Naseem Zeitoon/File Photo

DOHA (Reuters) – Qatar Airways is evaluating whether it will use air routes which media reports said were opened this week by countries embroiled in a political dispute with Qatar, the airline’s chief executive said on Wednesday.

Qatari-owned aircraft are blocked from using the airspace of Saudi Arabia, Bahrain, Egypt and the United Arab Emirates as part of economic sanctions enforced by the four countries in June.

Qatar Airways is studying “the flexibility and benefit” of one “very short route” while another route off the Egyptian coast was “useless” to the airline, Chief Executive Akbar al-Baker said at a Doha press conference.

Al-Baker did not say where the short route was located or when the airline would decide if it would use the routes.

The United Nation’s aviation agency said on Aug. 8 Bahrain and the United Arab Emirates had agreed to open some of its airspace to Qatari aircraft, according to media reports.

Saudi Arabia, Bahrain, Egypt and the UAE severed ties with Qatar on June 5, accusing it of supporting Islamist militants.

Qatar has denied the allegations.

The airspace closures have forced Qatar Airways to fly longer, more expensive routes, prompting Doha to call for the UN’s International Civil Aviation Organization to intervene.

 

(Reporting by Tom Finn, writing by Alexander Cornwell. Editing by Jane Merriman)

 

China, Vietnam meeting canceled amid South China Sea tensions

Honour guards raise an Association of Southeast Asian Nations (ASEAN) flag at a flag-raising ceremony to mark the 50th anniversary of the regional group at Vietnam's Ministry of Foreign Affairs in Hanoi August 8, 2017. REUTERS/Kham

MANILA (Reuters) – A scheduled meeting between the foreign ministers of China and Vietnam was canceled on the sidelines of a regional gathering, Chinese embassy officials said, amid growing tension between the two countries over the South China Sea.

Vietnam had held out for language that noted concern about island-building and criticized militarization in South China Sea in the communique on Sunday from foreign ministers of the Association of South East Asian Nations (ASEAN).

Vietnam has emerged as the most vocal opponent of China’s claims in the waterway, where more than $3 trillion in cargo pass every year.

The Chinese embassy officials gave no reason for the cancellation of the meeting scheduled for Monday in Manila between China’s Wang Yi and Vietnam’s Pham Binh Minh.

A Chinese foreign ministry official said they had “already met”. Vietnam’s foreign ministry did not respond immediately to a request for comment.

State media in Vietnam said the ministers had held a “pull aside” meeting and exchanged views. It showed pictures of them shaking hands.

Although the language in the ASEAN communique reflected that in previous years, some countries pursuing deeper business ties with Beijing, such as Cambodia and the Philippines, had argued for dropping it.

Beijing is sensitive to even a veiled reference by ASEAN to its reclamation of seven reefs and its military installations in the South China Sea, which it claims in almost its entirety despite the competing claims of five other countries.

Tension has risen since June, when Vietnam infuriated China by drilling for oil and gas in an offshore block that Beijing disputes. The exploration was suspended after diplomatic protests from China.

After the ASEAN meeting, China’s foreign minister had called out “some countries” who voiced concern over island reclamation.

Wang said that China had not carried out reclamation for two years. “At this time, if you ask who is carrying out reclamation, it is definitely not China – perhaps it is the country that brings up the issue that is doing it,” he added.

Satellite images have shown that Vietnam has carried out reclamation work in two sites in the disputed seas in recent years.

On Tuesday, the state-run China Daily cited unnamed sources as saying Vietnam had tried to hype up the reclamation issue in the communique, pointing out that Vietnam has accelerated its land reclamation in the South China Sea.

“Undoubtedly, what Vietnam has done is the trick of a thief crying ‘stop thief,'” the paper quoted one of the sources as saying.

Australia, Japan and the United States on Monday urged Southeast Asia and China to ensure that a South China Sea code of conduct they have committed to draw up will be legally binding and said they strongly opposed “coercive unilateral actions”.

China has strongly opposed what it calls interference by countries outside the region in the South China Sea issue.

Meeting Japanese Foreign Minister Taro Kono on the sidelines of a regional security forum in Manila on Monday, Wang urged Japan to respect the efforts of China and ASEAN countries and play a more constructive role for regional peace and stability.

“Don’t always make trouble behind the backs of other countries and provoke quarrels,” the ministry cited Wang as saying.

(Reporting by Christian Shepherd; Additional reporting by Ben Blanchard in BEIJING; Editing by Michael Perry)

China set for easy ride from ASEAN on disputed South China Sea

China set for easy ride from ASEAN on disputed South China Sea

By Manuel Mogato

MANILA (Reuters) – Southeast Asian ministers meeting this week are set to avoid tackling the subject of Beijing’s arming and building of manmade South China Sea islands, preparing to endorse a framework for a code of conduct that is neither binding nor enforceable.

The Association of South East Asian Nations (ASEAN) has omitted references to China’s most controversial activities in its joint communique, a draft reviewed by Reuters shows.

In addition, a leaked blueprint for establishing an ASEAN-China code of maritime conduct does not call for it to be legally binding, or seek adherence to the United Nations Convention on the Law of the Sea (UNCLOS).

The two drafts highlight China’s growing regional clout at a time of uncertainty whether the new U.S. administration will try to check Beijing’s assertiveness in the disputed waters.

The South China Sea chapter in the latest draft communique, a negotiated text subject to changes, is a watered-down version of one issued in Laos last year.

ASEAN expressed “serious concern” in that text, and “emphasised the importance of non-militarisation and self-restraint in all activities, including land reclamation.”

But the latest text calls for avoidance of “unilateral actions in disputed features” instead.

The role of the Philippines as 2017 chair of ASEAN has helped China keep a lid on discord.

Once ASEAN’s most vocal critic of China’s conduct, the Philippines, under President Rodrigo Duterte, has put aside disputes in exchange for Chinese funding pledges of $24 billion.

ASEAN ties with the United States, under President Donald Trump, have been in flux, as questions linger over Washington’s commitment to maritime security and trade in Asia, diminishing the grouping’s bargaining power with Beijing.

A legally binding and enforceable code of conduct has been a goal for ASEAN’s claimant members – Brunei, Malaysia, the Philippines and Vietnam – since a 2002 pact to ensure freedom of navigation and overflight and leave rocks and reefs uninhabited.

That pact, the Declaration of Conduct (DOC) of Parties in the South China Sea, has been largely ignored, particularly by China, which reclaimed seven reefs and can now deploy combat planes on three, besides defense systems already in place.

Analysts and some ASEAN diplomats worry that China’s sudden support for negotiating a code of conduct is a ploy to buy time to further boost its military capability.

“We could have done more to push China to agree to a much stronger document, holding claimant states more accountable,” said one ASEAN diplomat.

The agreed two-page framework is broad and leaves wide scope for disagreement, urging a commitment to the “purposes and principles” of UNCLOS, for example, rather than adherence.

The framework papers over the big differences between ASEAN nations and China, said Patrick Cronin of the Center for a New American Security.

“Optimists will see this non-binding agreement as a small step forward, allowing habits of cooperation to develop, despite differences,” he said.

“Pessimists will see this as a gambit favorable to a China determined to make the majority of the South China Sea its domestic lake.”

CONSENSUS CONSTRAINTS

Diplomats say ASEAN’s requirement of consensus in decision-making allows China to pressure some members to disagree with proposals it dislikes. China has long denied interfering.

A separate ASEAN document, dated May and seen by Reuters, shows that Vietnam pushed for stronger, more specific text.

Vietnam sought mention of respect for “sovereignty, sovereign rights and jurisdiction” not only in accordance with international law, but more specifically, UNCLOS.

Sovereign rights cover entitlements to fish and extract natural resources.

Experts say the uncertain future U.S. commitment to Asia leaves Vietnam in the most exposed position, as it has competing claims with China and relies on imports from its neighbor.

Opposition by China has repeatedly disrupted Vietnam’s efforts to exploit offshore energy reserves, most recently in an area overlapping what Beijing considers its oil concessions.

The code of conduct framework was useful to build confidence, said Philippine security expert Rommel Banlaoi, but was not enough to manage and prevent conflict in the South China Sea.

China claims almost the entire South China Sea, through which about $5 trillion in goods pass every year. Brunei, Malaysia, the Philippines, Taiwan and Vietnam also have claims.

(Writing by Martin Petty; Editing by Clarence Fernandez)

Turkey promises to eliminate anti-China media reports

Chinese Foreign Minister Wang Yi (R) shakes hands with Turkish Foreign Minister Mevlut Cavusoglu during their meeting at Diaoyutai State Guesthouse in Beijing, China, 03 August 2017. REUTERS/Roman Pilipey/Pool

BEIJING (Reuters) – Turkey regards China’s security as akin to its own and will move to stamp out any anti-China reports in its media, Turkish Foreign Minister Mevlut Cavusoglu said on Thursday, after meeting his Chinese counterpart Wang Yi.

China and Turkey have repeatedly vowed to step up cooperation on security and counter-terrorism, amid Beijing’s concerns about ethnic Uighurs from its restive far western region of Xinjiang fighting with militants in the Middle East.

“We take China’s security as our security,” Cavusoglu said, speaking through a Chinese translator during a joint news briefing with Wang in Beijing.

“We absolutely will not allow in Turkey any activities targeting or opposing China. Additionally, we will take measures to eliminate any media reports targeting China,” he added, but did not give details.

Uighurs are a largely Muslim, Turkic-language speaking minority from China’s western Xinjiang region.

Hundreds, possibly thousands, keen to escape unrest in Xinjiang have traveled clandestinely via Southeast Asia to Turkey, with which many see themselves as sharing religious and cultural ties.

Beijing says some Uighurs then end up fighting with Islamist militants in Iraq and Syria. It denies accusations that it restricts the Uighurs’ religious freedoms.

European leaders have been alarmed by Turkish President Tayyip Erdogan’s crackdown on opponents since a failed coup attempt last year, and what critics see as his attack on free speech.

About 150 media outlets have been shut and around 160 journalists jailed, the Turkish Journalists’ Association says.

Turkish authorities say the crackdown is justified by the gravity of the coup attempt, in which rogue soldiers tried to overthrow the government, killing 250 people, mostly civilians.

In 2015, Turkey angered China by expressing concern about reports of restrictions on worship and fasting by Uighurs in Xinjiang during the holy month of Ramadan. Turkish protesters have marched on China’s embassy and consulate in Turkey over the treatment of Uighurs.

The two countries have also quarreled over Thailand’s deportation of Uighur migrants back to China.

But Ankara is keen to tap into Beijing’s ambitious Belt and Road infrastructure investment plan to link China with the rest of Asia and the world. Erdogan visited China in May when President Xi Jinping hosted his first Belt and Road summit.

“China is willing to work with Turkey to enhance the ancient spirit of the Silk Road, … and in jointly promoting the Belt and Road plan unlock new cooperative potential,” Wang added.

(Reporting by Michael Martina; Editing by Clarence Fernandez)

China welcomes U.S. seeking dialogue with North Korea

China welcomes U.S. seeking dialogue with North Korea

By Michael Martina

BEIJING (Reuters) – China on Thursday welcomed comments by Secretary of State Rex Tillerson that the United States does not seek to topple the North Korean government and would like dialogue with Pyongyang at some point, saying China had always supported talks.

Tillerson reiterated that Washington sought to persuade North Korea to give up its missile and nuclear weapons programs through peaceful pressure.

The United States does not seek regime change, the collapse of the regime, an accelerated reunification of the peninsula or an excuse to send the U.S. military into North Korea, Tillerson said.

Speaking to reporters, Chinese Foreign Minister Wang Yi said China “attached great importance” to Tillerson’s remarks and his reiteration of what Wang called the “Four Nos” principle.

“We hope the U.S. side can put this ‘Four Nos’ principle into actual policy towards North Korea,” Wang said.

The United States has recently been paying more attention to security issues on the Korean peninsula, and China has always believed security is the key to resolving the problem, he added.

North Korea says it needs a strong military deterrent to prevent a hostile United States from attacking it.

China hopes all sides can meet each other halfway and through talks find a way of resolving each others security concerns as this is the key for a resolution, Wang said.

In a separate statement sent to Reuters regarding Tillerson’s remarks, the foreign ministry said it had always supported dialogue between the United States and North Korea.

On Saturday, Pyongyang said it had conducted another successful test of an intercontinental ballistic missile that proved its ability to strike the United States.

Tillerson, who will also attend the ASEAN Regional Forum in Manila, is expected to press China and other regional nations to take tougher action against North Korea.

China has signed up for increasingly tough United Nations sanctions against North Korea, but has also pushed for a resumption of dialogue and de-escalation by both Pyongyang and Washington.

Tillerson’s remarks showed “courage”, said the state-run Global Times newspaper, which is usually known for its nationalistic bent.

“Many Americans would think Tillerson is showing weakness, but we see his statement as the most courageous expression from Washington regarding the Korean peninsula issue,” it said in an editorial on Thursday.

“While (Washington) exerts pressure on North Korea, it should leave some alternatives for Pyongyang and make it believe that abandoning its nuclear and missile programs will do more good than insisting on this path.”

Wang also urged all parties not to heighten tension on the Korean peninsula and said China had already clearly condemned North Korea’s latest missile test.

“Regarding North Korea’s recent missile launch, once again in violation of UN Security Council resolutions, China has already clearly expressed our opposition,” Wang said.

“At the same time, we also call on all parties not to take any actions that will lead to an escalation in tensions.”

(Writing by Philip Wen and Ben Blanchard; Editing by Paul Tait and Clarence Fernandez)

Russia takes over U.S. compound in Moscow in retaliation over sanctions

Russia takes over U.S. compound in Moscow in retaliation over sanctions

MOSCOW (Reuters) – Russian authorities on Wednesday took over a summer-house compound in Moscow leased by the U.S. embassy, five days after the Kremlin ordered Washington to slash its diplomatic presence in Russia.

In retaliation for new U.S. sanctions, President Vladimir Putin has ordered the United States to cut around 60 percent of its diplomatic staff in Russia by Sept. 1, and said Moscow would seize a dacha country villa used by U.S. embassy staff and a warehouse.

U.S. employees cleared out the dacha on Tuesday and a Reuters journalist who visited the property on Wednesday saw a large metal padlock securing the front gate.

The one-storey building and courtyard, previously used by diplomatic staff at weekends and to host embassy parties, was empty and cleared of barbecue equipment and garden furniture.

Two policemen in a car in front of the main entrance said they had been instructed to guard the property and did not expect any visits from U.S. or Russian officials.

“I don’t know when this situation will change,” one of the policemen said.

Maria Olson, a spokeswoman for the U.S. embassy, had no immediate comment when contacted by Reuters. She was quoted by Russia’s Interfax news agency as saying the embassy had retrieved all its possessions from the villa, and from the warehouse.

Putin said on Sunday Russia had ordered the United States to cut 755 of its 1,200 diplomatic staff in its embassy and consular operations, though many of those let go will be Russian citizens, with the United States allowed to choose who leaves.

The ultimatum issued by the Russian leader is a display to voters at home that he is prepared to stand up to Washington – but is also carefully calibrated to avoid directly affecting the U.S. investment he needs, or burning his bridges with U.S. President Donald Trump.

One local Russian employee at the embassy, who declined to be named when speaking to the media, said staff were still in the dark about their future employment.

“They say they will have to cut a lot of jobs – not just diplomats and technical staff, but also in the ancillary services, including drivers, janitors and cooks,” he said. “I hope I won’t be in trouble, but who knows.”

(Reporting by Jack Stubbs and Dmitry Solovyov; Editing by Richard Balmforth)