Tag Archives: Tensions

U.S. decries Washington brawl during Turkish president’s visit

A Police officer push a man away from protesters, in this still image captured from a video footage, during a violent clash outside the Turkish ambassador's residence between protesters and Turkish security personnel during Turkish President Tayyip Erdogan's visit to Washington, DC, U.S. on May 16, 2017. Courtesy Armenian National Committee of America/Handout via REUTERS

By Yeganeh Torbati and Julia Harte

WASHINGTON (Reuters) – The United States said on Wednesday it was voicing its “strongest possible” concern to Turkey over a street brawl that erupted between protesters and Turkish security personnel during President Tayyip Erdogan’s visit to Washington, D.C.

Turkey blamed the violence outside its ambassador’s residence on demonstrators linked to the Kurdistan Workers Party (PKK), but Washington’s police chief called it a “brutal attack” on peaceful protesters.

Police said 11 people were injured, including a Washington police officer, and two people were arrested for assault. At least one of those arrested was a protester.

“We are communicating our concern to the Turkish government in the strongest possible terms,” State Department spokeswoman Heather Nauert said in a statement.

A video posted online showed men in dark suits chasing anti-government protesters and punching and kicking them as police intervened. Two men were bloodied from head wounds as bystanders assisted dazed protesters.

Washington Police Chief Peter Newsham told a news conference on Wednesday police had a good idea of most of the assailants’ identities and were investigating with the Secret Service and State Department.

One of the men arrested, Jalal Kheirabadi, told Reuters he was being beaten by three or four people when a D.C. police officer accused him of assault. He spoke by phone on Wednesday night after he was released pending a June court hearing.

Kheirabadi, 42, of Fairfax, Virginia, said he attended the protest to urge the United States to continue its support for Kurdish forces in Syria. He said he remembered being punched by three or four of Erdogan’s guards and seeing a D.C. police officer fall, but he did not recall hitting the officer.

“He stood up and protected me from them, and then he handcuffed me. He was a real gentleman, I appreciated that,” said Kheirabadi, adding that he immediately apologized to the officer.

Kheirabadi said he has lived in the United States for 13 years with his family, including a young son, and had never been in legal trouble in the United States before his arrest. “I didn’t go there to fight,” he said. “It just happened.”

TAUNTS, OBSCENITIES

A charging document for the other man arrested, Ayten Necmi, 49, of Woodside, New York, said peaceful protesters were taunted by a second group of demonstrators who shouted obscenities and taunts at them.

The document said four or five Middle Eastern men in dark suits from the second group assaulted the peaceful protesters. It said about eight people told officers they were attacked, thrown on the ground and stomped.

The Turkish Embassy said in a statement the protesters were affiliated with the outlawed PKK. The group is considered a terrorist group by both Turkey and the United States.

The embassy said Erdogan was in the ambassador’s residence after meeting President Donald Trump, and Turkish-Americans who were there to greet him responded to provocations from PKK-linked protesters.

“The violence and injuries were the result of this unpermitted, provocative demonstration,” the statement said. The claim that protesters were linked to the PKK could not be verified immediately by Reuters.

Tens of thousands of Turks have been detained as Erdogan cracked down on the media and academia following an attempted coup in 2016. Trump made no mention on Tuesday of Erdogan’s record on dissent and free speech.

House of Representatives Foreign Affairs Committee Chairman Ed Royce, a California Republican, called on Attorney General Jeff Sessions and Secretary of State Rex Tillerson “to hold individuals accountable” for the attack.

Washington Mayor Muriel Bowser and five Republican senators, including John McCain of Arizona and Marco Rubio of Florida, also condemned the assault.

Mehmet Tankan, 31, said he was one of a dozen protesters outside the ambassador’s residence chanting anti-Erdogan slogans when the brawl broke out.

Tankan said by telephone seven security personnel, some carrying firearms, rushed up and began punching him, bruising him all over his body.

Tankan said the violence was worse than when Erdogan visited Washington in 2016 and scuffles erupted between his security detail and demonstrators.

“The next time they could kill us easily. I’m scared now too, because I don’t know how it will affect my life here in the United States,” said Tankan, who lives in Arlington, Virginia.

(Reporting by Yeganeh Torbati, Julia Harte and Ian Simpson; Writing by Ian Simpson; Editing by Richard Chang, Tom Brown and David Gregorio)

China installs rocket launchers on disputed South China Sea island: report

FILE PHOTO: Chinese dredging vessels are purportedly seen in the waters around Fiery Cross Reef in the disputed Spratly Islands in the South China Sea in this still image from video taken by a P-8A Poseidon surveillance aircraft provided by the United States Navy May 21, 2015. REUTERS/U.S. Navy/Handout via Reuters

BEIJING (Reuters) – China has installed rocket launchers on a disputed reef in the South China Sea to ward off Vietnamese military combat divers, according to a state-run newspaper, offering new details on China’s ongoing military build-up.

China has said military construction on the islands it controls in the South China Sea will be limited to necessary defensive requirements, and that it can do what it likes on its own territory.

The United States has criticized what it has called China’s militarization of its maritime outposts and stressed the need for freedom of navigation by conducting periodic air and naval patrols near them that have angered Beijing.

The state-run Defense Times newspaper, in a Tuesday report on its WeChat account, said Norinco CS/AR-1 55mm anti-frogman rocket launcher defense systems with the capability to discover, identify and attack enemy combat divers had been installed on Fiery Cross Reef in the Spratly Islands.

Fiery Cross Reef is administered by China but also claimed by the Philippines, Vietnam and Taiwan.

The report did not say when the defense system was installed, but said it was part of a response that began in May 2014, when Vietnamese divers installed large numbers of fishing nets in the Paracel Islands.

China has conducted extensive land reclamation work at Fiery Cross Reef, including building an airport, one of several Chinese-controlled features in the South China Sea where China has carried out such work.

More than $5 trillion of world trade is shipped through the South China Sea every year. Besides China’s territorial claims in the area, Vietnam, Malaysia, Brunei, the Philippines and Taiwan have rival claims.

(Reporting by Philip Wen; Editing by Ben Blanchard)

South Korea’s Moon says ‘high possibility’ of conflict with North as missile crisis builds

FILE PHOTO: North Korea's leader Kim Jong Un watches a military drill marking the 85th anniversary of the establishment of the Korean People's Army (KPA) in this handout photo by North Korea's Korean Central News Agency (KCNA) made available on April 26, 2017. KCNA/Handout via REUTERS/File Photo

By Christine Kim

SEOUL (Reuters) – South Korean President Moon Jae-in said on Wednesday there was a “high possibility” of conflict with North Korea, which is pressing ahead with nuclear and missile programs it says it needs to counter U.S. aggression.

The comments came hours after the South, which hosts 28,500 U.S. troops, said it wanted to reopen a channel of dialogue with North Korea as Moon seeks a two-track policy, involving sanctions and dialogue, to try to rein in its neighbor.

North Korea has made no secret of the fact that it is working to develop a nuclear-tipped missile capable of striking the U.S. mainland and has ignored calls to halt its nuclear and missile programs, even from China, its lone major ally.

It conducted its latest ballistic missile launch, in defiance of UN Security Council resolutions, on Sunday which it said was a test of its capability to carry a “large-size heavy nuclear warhead”, drawing Security Council condemnation.

“The reality is that there is a high possibility of a military conflict at the NLL (Northern Limit Line) and military demarcation line,” Moon was quoted as saying by the presidential Blue House.

He also said the North’s nuclear and missile capabilities seem to have advanced rapidly recently but that the South was ready and capable of striking back should the North attack.

Moon won an election last week campaigning on a more moderate approach towards the North and said after taking office that he wants to pursue dialogue as well as pressure.

But he has said the North must change its attitude of insisting on pressing ahead with its arms development before dialogue is possible.

South Korean Unification Ministry spokesman Lee Duk-haeng told reporters the government’s most basic stance is that communication lines between South and North Korea should reopen.

“The Unification Ministry has considered options on this internally but nothing has been decided yet,” said Lee.

NO WORD YET ON THAAD

Communications were severed by the North last year, Lee said, in the wake of new sanctions following North Korea’s fifth nuclear test and Pyongyang’s decision to shut down a joint industrial zone operated inside the North.

North Korea and the rich, democratic South are technically still at war because their 1950-53 conflict ended in a truce, not a peace treaty. The North defends its weapons programs as necessary to counter U.S. hostility and regularly threatens to destroy the United States.

Moon’s envoy to the United States, South Korean media mogul Hong Seok-hyun, left for Washington on Wednesday. Hong said South Korea had not yet received official word from the United States on whether Seoul should pay for an anti-missile U.S. radar system that has been deployed outside Seoul.

U.S. President Donald Trump has said he wants South Korea to pay for the Terminal High Altitude Area Defense (THAAD) anti-missile system which detected Sunday’s test launch.

China has strongly opposed THAAD, saying it can spy into its territory, and South Korean companies have been hit in China by a nationalist backlash over the deployment.

The United States said on Tuesday it believed it could persuade China to impose new U.N. sanctions on North Korea and warned that Washington would also target and “call out” countries supporting Pyongyang.

Speaking to reporters ahead of a closed-door U.N. Security Council meeting, U.S. Ambassador to the United Nations Nikki Haley also made clear that Washington would only talk to North Korea once it halted its nuclear program.

As about Haley’s comments, Chinese Foreign Ministry spokeswoman Hua Chunying said China would work hard at reducing tensions on the Korean peninsula and finding a peaceful resolution.

Trump has called for an immediate halt to North Korea’s missile and nuclear tests and U.S. Disarmament Ambassador Robert Wood said on Tuesday that China’s leverage was key and Beijing could do more.

Trump warned this month that a “major, major conflict” with North Korea was possible, and in a show of force, sent the Carl Vinson aircraft carrier strike group to Korean waters to conduct drills with South Korea and Japan.

The U.S. troop presence in South Korea, a legacy of the Korean War, is primarily to guard against the North Korean threat.

(Additional reporting by Michelle Nichols at the UNITED NATIONS and Ben Blanchard in BEIJING; Editing by Nick Macfie)

Russia’s Putin says ready to help resolve North Korea nuclear issue: South Korea

Russian President Vladimir Putin attends an opening of the Center via a teleconference with Bethlehem, before a meeting with Palestinian President Mahmoud Abbas at the Bocharov Ruchei state residence in Sochi, Russia, May 11, 2017. REUTERS/Yuri Kochetkov/Pool

By Christine Kim

SEOUL (Reuters) – Russia’s President Vladimir Putin told his newly elected South Korean counterpart, Moon Jae-in, in a phone call on Friday that he is ready to play a “constructive role” in resolving North Korea’s nuclear threat, the South’s presidential office said.

Putin made the comment after Moon said the foremost task to boost cooperation between the two countries was to strengthen strategic bilateral communication to find a solution to curb North Korea’s nuclear threat, the Blue House said in a statement.

“We hope for Russia to play a constructive role in order for North Korea to stop with its nuclear provocations and go the way of denuclearization,” Moon was citing as saying to Putin in the 20-minute conversation.

“I, too, aim to find a way to begin talks quickly between North and South Korea as well as the six-party talks,” Moon said, referring to talks aimed at denuclearizing North Korea involving the United States, China, Japan, Russia and the two Koreas.

The talks collapsed in 2008 after North Korea launched a rocket.

Tension has been high for months on the Korean peninsula over North Korea’s nuclear and missile development and fears it will conduct a sixth nuclear test or test another ballistic missile in defiance of U.N. Security Council resolutions.

Moon is a liberal who advocates a more conciliatory approach to North Korea compared with his conservative predecessor.

Moon also expressed hopes the two countries would be able to cooperate in developing East Asia, including extending a natural gas pipeline from Siberia to South Korea, the Blue House said.

Putin said he was ready to help in all of the matters they discussed and the two leaders invited each other for state visits, the Blue House added.

Moon said he would send a special envoy to Russia soon and Putin said he would welcome the envoy.

The two leaders said they looked forward to meeting at the Group of 20 summit meeting in Germany in July.

Earlier in the day, Moon spoke with British Prime Minister Theresa May and German Chancellor Angela Merkel, the Blue House said. He asked them to help in curbing North Korea’s nuclear program and both promised to.

(Reporting by Christine Kim; Additional reporting by Se Young Lee; Editing by Robert Birsel)

North Korea says will have dialogue with U.S. under right conditions: Yonhap

FILE PHOTO - A North Korean flag flies on a mast at the Permanent Mission of North Korea in Geneva October 2, 2014. REUTERS/Denis Balibouse/File Photo

SEOUL (Reuters) – A senior North Korean diplomat who handles relations with the United States said on Saturday Pyongyang would have dialogue with the U.S. administration if conditions were right, South Korea’s Yonhap news agency reported.

Choe Son Hui, North Korea’s foreign ministry director general for U.S. affairs, made the comment to reporters in Beijing as she was traveling home from Norway, Yonhap said.

“We’ll have dialogue if the conditions are there,” she told reporters when asked if the North was preparing to hold talks with the Trump administration, according to Yonhap.

When asked if North Korea was also preparing to talk with the new government in South Korea, of liberal President Moon Jae-in, Choe said: “We’ll see.”

The comments by Choe, who is a veteran member of the North’s team of nuclear negotiators, came amid stepped up international efforts to press North Korea and ease tension over its pursuit of nuclear arms.

U.S. President Donald Trump warned in an interview with Reuters in late April that a “major, major conflict” with the North was possible, but he would prefer a diplomatic outcome to the dispute over its nuclear and missile programs.

Trump later said he would be “honored” to meet the North’s leader, Kim Jong Un, under the right conditions.

Choe was in Norway for so-called Track Two talks with former U.S. government officials, according to Japanese media, the latest in a series of such meetings.

A source with knowledge of the latest meeting said at least one former U.S. government official took part but the U.S. administration was not involved.

South Korea’s Moon, elected this week on a platform of a moderate approach to North Korea, has said he would be willing to go to Pyongyang under the right circumstances and said dialogue must be used in parallel with sanctions to resolve the problem over North Korea’s weapons.

North Korea has conducted five nuclear tests in defiance of U.N. and U.S. sanctions and is also developing long-range missiles to deliver atomic weapons.

It says it needs such weapons to defend itself against U.S. aggression.

(Reporting by Jack Kim; Editing by Robert Birsel)

South Korea urges ‘parallel’ talks and sanctions to rein in North Korea

South Korean President Moon Jae-in speaks with Chinese President Xi Jinping by telephone at the Presidential Blue House in Seoul, South Korea in this handout picture provided by the Presidential Blue House and released by Yonhap on May 11, 2017. Blue House/Yonhap via REUTERS

By Ju-min Park and Christine Kim

SEOUL (Reuters) – South Korea’s new president launched international efforts to defuse tension over North Korea’s weapons development on Thursday, urging both dialogue and sanctions while also aiming to ease Chinese anger about a U.S. anti-missile system.

Moon Jae-in, a liberal former human rights lawyer, was sworn in on Wednesday and said in his first speech as president he would immediately address security tensions that have raised fears of war on the Korean peninsula.

Moon first spoke to Chinese President Xi Jinping and later to Japanese Prime Minister Shinzo Abe, with how to respond to North Korea’s rapidly developing nuclear and ballistic missile programs, in violation of U.N. Security Council resolutions, dominating talks.

“The resolution of the North Korean nuclear issue must be comprehensive and sequential, with pressure and sanctions used in parallel with negotiations,” Moon’s spokesman, Yoon Young-chan, quoted Moon as telling Xi.

“Sanctions against North Korea are also a means to bring the North to the negotiating table aimed at eliminating its nuclear weapons,” Yoon told a briefing, adding that Xi indicated his agreement.

Moon has taken a more conciliatory line with North Korea than his conservative predecessors and advocates engagement. He has said he would be prepared to go to Pyongyang “if the conditions are right”.

Regional experts have believed for months that North Korea is preparing for its sixth nuclear test and was working to develop a nuclear-tipped missile capable of reaching the United States, presenting U.S. President Donald Trump with perhaps his most pressing security issue.

Trump told Reuters in an interview last month major conflict with North Korea was possible though he would prefer a diplomatic outcome.

North Korea says it needs its weapons to defend itself against the United States which it says has pushed the region to the brink of nuclear war.

“Threats from North Korea’s nuclear and missile development have entered a new stage,” Japan’s Abe told Moon in their telephone call, according to Japanese Deputy Chief Cabinet Secretary Koichi Hagiuda.

“How to respond to North Korea … is an urgent issue. I would like to closely cooperate with the president to achieve the denuclearization of North Korea,” Abe told Moon.

But Abe also said “dialogue for dialogue’s sake would be meaningless” and he called on North Korea to demonstrate “sincere and concrete action”, Hagiuda said, adding that Moon shared Abe’s views.

Japan has been concerned that Moon will take a tough line on feuds stemming from the bitter legacy of its 1910-1945 colonization of the Korean peninsula and could fray ties at a time when cooperation on North Korea is vital.

Moon told Abe to “look straight at history” and not make the past “a barrier”, though he raised South Korea’s dissatisfaction with a 2015 agreement meant to put to rest a dispute over Japanese compensation for South Korean women forced to work in Japanese brothels before and during World War Two, Korea’s presidential office said.

(For a graphic on South Korea’s presidential election, click tmsnrt.rs/2p0AyLf)

‘IMPROVE UNDERSTANDING’

While South Korea, China and Japan all share worry about North Korea, ties between South Korea and China have been strained by South Korea’s decision to install a U.S. anti-missile system in defense against the North.

China says the Terminal High Altitude Area Defense (THAAD) undermines its security as its powerful radar can probe deep into its territory.

China says the system does little to curb the threat posed by North Korea’s nuclear and missile programs, which it has been pressing ahead with in defiance of U.S. pressure and UN sanctions.

The deployment of THAAD was agreed last year by South Korea’s previous administration after North Korea conducted a long-range rocket launch that put an object into space.

Moon came to power with a promise to review the system and he told Xi that North Korea must cease making provocations before tension over the deployment could be resolved, officials said.

In the first direct contact between the South Korean and Chinese leaders, Xi explained China’s position, Yoon, the South Korean presidential spokesman said, without elaborating.

“President Moon said he understands China’s interest in the THAAD deployment and its concerns, and said he hopes the two countries can swiftly get on with communication to further improve each other’s understanding,” Yoon told a briefing.

South Korea and the United States began deploying the THAAD system in March and it has since become operational.

Xi told Moon South Korea and China should respect each other’s concerns, set aside differences, seek common ground and handle disputes appropriately, China’s foreign ministry said in a statement.

As well as clouding efforts to rein in North Korea’s nuclear ambitions, the THAAD deployment has also led to recriminations from Beijing against South Korean companies.

Moon explained the difficulties faced by South Korean companies that were doing business in China and asked for Xi’s “special attention” to ease those concerns, Yoon said.

China has also denied it is doing anything to retaliate against South Korean businesses.

(Additional reporting by Ben Blanchard in BEIJING and Kiyoshio Takenaka in TOKYO; Writing by Jack Kim; Editing by Paul Tait, Robert Birsel)

New South Korea president vows to address North Korea, broader tensions

Newly elected South Korean President Moon Jae-in takes an oath during his inauguration ceremony at the National Assembly in Seoul, South Korea, May 10, 2017. REUTERS/Ahn Young-joon/Pool

By Ju-min Park and Christine Kim

SEOUL (Reuters) – South Korea’s new liberal President Moon Jae-in was sworn in on Wednesday and vowed to immediately tackle the difficult tasks of addressing North Korea’s advancing nuclear ambitions and soothing tensions with the United States and China.

Moon said in his first speech as president he would begin efforts to defuse security tensions on the Korean peninsula and negotiate with Washington and Beijing to ease a row over a U.S. missile defense system being deployed in the South.

In his first key appointments, Moon named two liberal veterans with ties to the “Sunshine Policy” of engagement with North Korea from the 2000s to the posts of prime minister and spy chief.

Moon named Suh Hoon, a career spy agency official and a veteran of inter-Korea ties, as the head of the National Intelligence Service. Suh was instrumental in setting up two previous summits between the North and South.

Veteran liberal politician Lee Nak-yon was nominated to serve as prime minister. Now a regional governor, Lee was a political ally of the two former presidents who held the summits with the North in 2000 and 2007,

Lee’s appointment requires parliamentary approval.

Moon was expected to fill the remaining cabinet and presidential staff appointments swiftly to bring an end to a power vacuum left by the removal of Park Geun-hye in March in a corruption scandal that rocked South Korea’s business and political elite.

“I will urgently try to solve the security crisis,” Moon said in the domed rotunda hall of the parliament building. “If needed, I will fly straight to Washington. I will go to Beijing and Tokyo and, if the conditions are right, to Pyongyang also.”

Spy chief nominee Suh said Moon could go to Pyongyang if it was clear the visit would help resolve the North Korean nuclear crisis and ease military tension on the Korean peninsula.

North Korea is likely to welcome Moon’s election but its state media made no mention of his victory on Wednesday.

The deployment of the U.S. Terminal High Altitude Area Defense System (THAAD) in the South has angered China, Seoul’s major trading partner, which sees the system’s powerful radar as a threat to its security.

The issue has clouded efforts to rein in North Korea’s nuclear and missile programs, and also led to recriminations by Beijing against South Korean companies.

Moon, 64, also pledged to sever what he described as the collusive ties between business and government that have plagued many of South Korea’s family-run conglomerates, known as chaebol, and vowed to be incorruptible.

“I take this office empty-handed, and I will leave the office empty-handed,” Moon said.

Moon met leaders of opposition parties before his simple swearing-in ceremony at parliament and promised to coordinate with them on national security.

Office workers and passersby lined the streets as Moon’s motorcade passed through central Seoul en route to the presidential Blue House.

Moon waved to well-wishers through the sunroof of his limousine, which was flanked by police motorbikes.

TRUST, UNDERSTANDING

Chinese President Xi Jinping and Japanese Prime Minister Shinzo Abe both congratulated Moon on Wednesday. Xi said China was willing to handle disputes with South Korea “appropriately” on the basis of mutual trust and understanding.

Abe said in a statement he looked forward to working with Moon to improve relations, describing South Korea as one of Japan’s most important neighbors.

The decision by the ousted Park’s government to host the THAAD system has already proved a headache for Moon as Seoul tries to walk a fine line between Washington, its closest security ally, and Beijing.

Moon has said the decision had been made hastily and his government should have the final say on whether to deploy it.

China hoped South Korea “pays attention to China’s security concerns” and deals “appropriately” with the THAAD issue, a Chinese foreign ministry spokesman told a briefing in Beijing.

As president, Moon must find a way to coax an increasingly belligerent North Korea to ease its nuclear and missile threats. It has conducted its fifth nuclear test and a series of missile launches since the start of last year, ratcheting up tension.

Washington wants to increase pressure on Pyongyang through further isolation and sanctions, in contrast to Moon’s advocacy for greater engagement with the reclusive North.

In one of his first acts as president, Moon spoke by telephone with Chairman of the Joint Chiefs of Staff Lee Sun-jin. Moon’s Democratic Party said he was briefed on the status of the North Korean military and South Korea’s military readiness.

Moon’s election could add volatility to relations with Washington, given his questioning of the THAAD deployment, but it was not expected to change the alliance significantly, a U.S. official said.

The White House also congratulated Moon, saying it looked forward to working with him to strengthen their longstanding alliance.

Moon must also try to mend a society badly bruised by the corruption scandal that doomed Park’s administration.

His party lacks a majority in a divided parliament. To push through major initiatives, including creating 500,000 jobs annually and reforming the chaebol, he will need to forge partnerships with some of those he fought on his path to the presidency.

Moon won with 41.1 percent of the votes but that seemingly comfortable margin belied an ideological and generational divide in the country of 51 million people.

Data from an exit poll conducted by South Korea’s top three television networks showed that, while Moon won the majority of votes cast by those under the age of 50, conservative rival Hong Joon-pyo found strong support among voters in their 60s and 70s.

(For a graphic on South Korea presidential election, click http://tmsnrt.rs/2p8kyHn)

(Additional reporting by Joyce Lee, Jack Kim, Se Young Lee, Cynthia Kim and James Pearson in SEOUL, Matt Spetalnick and David Brunnstrom in WASHINGTON, Ben Blanchard in BEIJING, and Elaine Lies in TOKYO, Editing by Soyoung Kim and Paul Tait)

Japan, China to boost financial ties amid protectionist, North Korean tensions

Chinese Finance Minister Xiao Jie (R) and Japanese Finance Minister Taro Aso shake hands during their bilateral meeting, on the sidelines of Asian Development Bank (ADB) annual meeting, in Yokohama, Japan, Saturday, May 6, 2017. REUTERS/Koji Sasahara/Pool

By Tetsushi Kajimoto

YOKOHAMA, Japan (Reuters) – Japan and China agreed to bolster economic and financial cooperation, Japanese Finance Minister Taro Aso said on Saturday, as U.S. President Donald Trump’s protectionist stance and tension over North Korea weigh on Asia’s growth outlook.

Chinese Finance Minister Xiao Jie, who missed a trilateral meeting with his Japanese and South Korean counterparts on Friday for an emergency domestic meeting, had flown in for the talks with Aso, seeking to dispel speculation his absence had any diplomatic implications.

“We actively exchanged views on economic and financial situations in Japan and China and our cooperation in the financial field,” Aso told reporters after the meeting, which included senior finance ministry and central bank officials.

“It was significant that we reconfirmed the need of financial cooperation between the two countries while sharing our experiences in dealing with economic policies and structural issues,” he added.

The two countries agreed to launch joint research on issues of mutual interest – without elaborating – and to report the outcomes at the next talks, which will be held in 2018 in China.

They did not discuss issues such as currencies and geopolitical risks from North Korea’s nuclear and missile program during the dialogue, held on the sidelines of the Asian Development Bank’s (ADB) annual meeting in Yokohama, eastern Japan, Aso said.

Relations between Japan and China have been strained over territorial rows and Japan’s occupation of parts of China in World War Two, though leaders have recently sought to mend ties through dialogue.

Still, China’s increasing presence in infrastructure finance has alarmed some Japanese policymakers, who worry that Beijing’s new development bank, the Asian Infrastructure Investment Bank (AIIB), may overshadow the Japan-backed ADB.

Shortly before the bilateral talks on Saturday, Xiao voiced hope that the ADB will boost ties with China’s high profile “One Belt One Road” infrastructure development initiatives.

“China hopes the ADB … strengthens the strategic ties between its programs and the One Belt One Road initiative to maximize synergy effects and promote Asia’s further development,” Xiao told the ADB’s annual gathering.

Japan and China do agree on the need to respect free trade, which they see as crucial to Asia’s trade-dependent economies.

Finance officials from Japan, China and South Korea agreed to resist all forms of protectionism in Friday’s trilateral meeting, taking a stronger stand than G20 major economies against the protectionist policies advocated by Trump.

China has positioned itself as a supporter of free trade in the wake of Trump’s calls to put America’s interests first and pull out of multilateral trade agreements.

Japan has taken a more accommodative stance toward Washington’s argument that trade must not just be free but fair.

(Reporting by Tetsushi Kajimoto; Editing by Nick Macfie and Alexander Smith)

As U.S. and China find common ground on North Korea, is Russia the wild card?

FILE PHOTO: The Friendship and the Broken bridges over the Yalu River connecting the North Korean town of Sinuiju and Dandong in China's Liaoning province, April 16, 2017. REUTERS/Aly Song/File Photo

By James Pearson and Alexei Chernyshev

SEOUL/VLADIVOSTOK, Russia (Reuters) – When North Korean leader Kim Jong Un sent Lunar New Year greetings this year, the first card went to Russian President Vladimir Putin, ahead of leaders from China and other allies of the isolated country, according to its official news agency.

Some academics who study North Korea argue Kim could be looking for Russia to ease any pain if China, which accounts for about 90 percent of North Korea’s trade, steps up sanctions against the isolated country as part of moves to deter its nuclear and missile programs.

U.S. President Donald Trump lavished praise on Chinese President Xi Jinping last week for Beijing’s assistance in trying to rein in Pyongyang. A day later, U.S. Secretary of State Rex Tillerson pressed the United Nations Security Council to impose more sanctions to further isolate Pyongyang.

There is no sign of any sustainable increase in trade between Russia and North Korea, but business and transport links between the two are getting busier.

A new ferry service starting next week will move up to 200 passengers and 1,000 tonnes of cargo six times a month between North Korea and the Russian port of Vladivostok.

Shipping data on Thomson Reuters Eikon shows there has been a recent steady flow of oil tanker traffic from Vladivostok into North Korean east coast ports.

Last Thursday, five North Korean-flagged oil tankers had loaded up at Vladivostok-area ports and identified North Korean ports as their destination. It was not known what products they were carrying.

Earlier this year, Russian government officials visited Pyongyang to discuss more cooperation in rail transport, according to media reports. A Russian-built railway link between the Russian eastern border town of Khasan and the North Korean port of Rajin has been used to carry some coal, metals and various oil products.

“North Korea does not care about China’s pressure or sanctions because there is Russia next door,” said Leonid Petrov, a North Korea expert at Australia National University.

“Pyongyang has been playing off Beijing and Moscow for half a century, letting them compete for the right to aid and influence North Korea.”

Russia, especially Vladivostok, is also home to one of the largest overseas communities of North Koreans in the world, and they send home tens of thousands of dollars in much-needed hard currency each month.

Speaking at the United Nations last week, Tillerson called on states to sever diplomatic and financial ties with Pyongyang and suspend the flow of North Korean guest workers. The Security Council has not yet agreed on any course of action.

While Russia has not indicated it will oppose U.N. sanctions or seek to dilute them, its ties with the United States are fraught, which could complicate its joining any U.S.-led initiative on North Korea.

Trump and Putin spoke in a telephone call on Tuesday and discussed North Korea, among other issues, both sides said. There was no word of any agreement.

“LOYAL PARTNER”

Samuel Ramani, a Russia expert at Oxford University, said support for the Pyongyang regime could bring economic benefits for Moscow. It would demonstrate Russia was “a loyal partner to anti-Western regimes facing international isolation and sanctions”, he said.

“As Russia has close economic links with other countries at odds with the West, like Iran, Venezuela and Syria, this symbolic dimension of the Russia-North Korea relationship has strategic significance.”

The United States is calling for an embargo in oil sales to North Korea, which imports all its fuel needs. China, North Korea’s main supplier, is unlikely to agree because that would be potentially destabilizing for the Pyongyang regime, but it may impose curbs on the trade, experts say.

China exports about 500,000 tonnes of crude and 270,000 tonnes of products each year, oil industry sources in China say. Russia, the other major supplier of oil to North Korea, exported about 36,000 tonnes of oil products in 2015, the latest year for which figures are available, according to U.N. data.

Russia has already taken over the supply of jet fuel to North Korea after China halted exports two years ago, according to the industry sources in China.

Russia is also the source of foreign exchange for North Korea, mostly from Vladivostok.

The city of 600,000 people, just about 100 km (60 miles) from the border with North Korea, is home to thousands of North Koreans who mainly work on construction or do home renovations. A city web site advertises “Korean Professional Contractors” and says they work “Cheaply and Fast”.

One North Korean man, who works as a handyman, told Reuters he was obliged to hand over a portion of his income – $500 – to the North Korean state each month. Thin and in his 30s, he did not disclose his monthly income, but said he charged 4,000 roubles (about $70) for a day’s labor.

The man said he had worked in Russia for 11 years, leaving his wife and daughter back home whom he only saw on rare visits.

Like all North Koreans, he wore a badge on his lapel bearing the portrait of late North Korean leader Kim Il-Sung.

“It’s better here than in North Korea,” said the man, who did not want to be named.  “It’s a very difficult life there. Here you can make money.”

But the most symbolic upturn in ties between Russia and North Korea is the start of regular trips of the Mangyongbong ferry from Monday between Vladivostok and the North Korean town of Rajin.

Vladimir Baranov, the head of Vladivostok-based Investstroitrest company, told Reuters his company had chartered the Mangyongbong and would be the general agent for the ferry route. The aging boat used to ferry tourists between Japan and North Korea, but Tokyo banned its visits in 2006 as part of sanctions against Pyongyang.

An editorial in Japan’s Yomiuri Shimbun newspaper described the ferry service to Russia as “a move that puts a damper on international efforts to strengthen the encirclement of North Korea aimed at halting its nuclear and missile development.”

Still, despite the differences with the United States and the existing links with North Korea, experts say Russia is unlikely to sharp increase trade with Pyongyang because of its low foreign exchange reserves and general unreliability.

“All trade with North Korea has to be subsidized,” said Andrei Lankov, a Russian North Korea expert at Seoul’s Kookmin University. “I do not see the Russian government spending its dwindling currency reserves to support the regime they despise and see as incurably ungrateful, and also prone to risky adventurism”.

(Additional reporting by Maria Tsvetkova, Natalia Chumakova, Gleb Gorodyankin, Alexander Winning and Andrew Osborn in Moscow, Steve Holland in Washington,; Michelle Nichols at the United Nations, Chen Aizhu and Josephine Mason in Beijing; Editing by Raju Gopalakrishnan)

ASEAN firms up South China Sea stance as Beijing lobbies over statement

An aerial view of China occupied Subi Reef at Spratly Islands in disputed South China Sea April 21, 2017. REUTERS/Francis Malasig/Pool

By Manuel Mogato and Enrico Dela Cruz

MANILA (Reuters) – Southeast Asian countries have altered a statement to be issued at Saturday’s ASEAN summit to include references to militarization and island-building in the South China Sea, the latest draft shows, in a move likely to frustrate Beijing.

Chinese embassy representatives in Manila had sought to influence the content of the communique by lobbying Philippine officials, two ASEAN diplomatic sources told Reuters.

However, four ASEAN member states disagreed with omitting “land reclamation and militarization” – terms included in the statement issued last year in Laos, but not featured in an earlier draft of this year’s statement seen on Wednesday.

China is not a member of the Association of South East Asian Nations, and is not attending the summit. China embassy officials in Manila could not be reached and China’s foreign ministry did not immediately respond to request for comment.

ASEAN references to the South China Sea issue typically do not name China. Beijing is extremely sensitive to anything it perceives as a veiled reference to its expansion of its seven manmade islands in the Spratly archipelago, including with hangers, runways, radars and missiles.

The final version of the statement has yet to be agreed, but changes so far indicate ASEAN is resisting moves by China to keep its contentious activities in the strategic waterway off ASEAN’s official agenda.

China’s lobbying, and its burgeoning friendship with Philippine President Rodrigo Duterte, may not have been enough to influence Manila’s position either.

“The Philippines is under too much pressure,” one of the sources said.

(For graphic on the Scarborough Shoal, click http://fingfx.thomsonreuters.com/gfx/rngs/ASEAN-SUMMIT-SOUTHCHINASEA/010021LX3Z6/ASEAN-SUMMIT-SOUTHCHINASEA.jpg)

(For graphic on the turf war on the South China Sea, click http://fingfx.thomsonreuters.com/gfx/rngs/1/6/12/index.html)

TABOO TOPIC

This year’s summit comes at a time of uncertainty about U.S. interests in the region and whether it will maintain its maritime presence to counter China’s assertiveness.

Chinese officials pressed for words that might allude to last year’s international arbitration ruling to be kept out of the statement, the diplomats said, particularly the term “full respect for legal and diplomatic processes”.

The latest draft still includes that, although it was moved out of the South China Sea section to another.

“They do not want any phrase linked to the arbitration case,” one source said.

The Hague ruling, in a case brought by the Philippines in 2013, angered China because it invalidated China’s claim of sovereignty over almost the entire South China Sea. China refuses to recognize the decision.

As part of his engagement with China, Duterte has decided not to press it to abide by the arbitration award anytime soon. On Thursday he said it was pointless for ASEAN to pressure China.

In his address to open the leaders’ summit, Duterte made no mention of the South China Sea, but touched on many issues central to his 10-month administration.

Duterte mentioned extremism, piracy, interference in a country’s affairs, and his signature fight against drugs, for which he has been widely condemned over the deaths of thousands of Filipinos.

“The illegal drug trade apparatus is massive. But it is not impregnable,” he said. “With political will and cooperation, it can be dismantled, it can be destroyed before it destroys our societies.”

Duterte then hosted two meetings with ASEAN leaders, which were not open to media.

ASEAN and China are hoping to this year agree on a framework to create a code of conduct over the South China Sea, 15 years after committing to draft it. Some ASEAN diplomats doubt China is sincere about agreeing to a set of rules.

In unusually direct comments for an ASEAN Secretary General, Le Luong Minh on Thursday told Reuters the code needed to be legally binding to put a stop to “unilateral actions”, because a previous commitment to play fair had been ignored.

(Additional reporting by John Ruwitch in Shanghai; Writing by Martin Petty; Editing by Lincoln Feast)