U.S. seeks funds for Middle East peace plan but details are vague and Palestinians unhappy

Palestinians burn a picture of U.S. President Donald Trump and Israeli Prime Minister Benjamin Netanyahu, and representations of Israeli flags during a protest against Bahrain's workshop for U.S. Middle East peace plan, in Gaza City, June 25, 2019. REUTERS/Mohammed Salem

By Matt Spetalnick

MANAMA (Reuters) – The Trump administration prepared to launch its $50 billion economic formula for Israeli-Palestinian peace in Bahrain on Tuesday but the Palestinian leadership reiterated its disdain for the plan and Saudi Arabia, envisaged as one of its main bank-rollers, also indicated some reservations.

Bahraini armoured vehicle takes up position on bridge leading to Manama’s Four Seasons hotel for first day of U.S.-hosted “Peace to Prosperity” conference, in Manama, Bahrain, June 25, 2019. REUTERS/Matt Spetalnick

Bahraini armoured vehicle takes up position on bridge leading to Manama’s Four Seasons hotel for first day of U.S.-hosted “Peace to Prosperity” conference, in Manama, Bahrain, June 25, 2019. REUTERS/Matt Spetalnick

The two-day international meeting, led by Trump’s son-in-law and senior advisor Jared Kushner, has been billed as the first part of Washington’s broader political blueprint to resolve the Israeli-Palestinian conflict.

But the political details of the plan, which has been almost two years in the making, remain a secret. Neither the Israeli nor Palestinian governments will attend the curtain-raising event in Manama, which Lebanon and Iraq are staying away from.

Palestinian President Mahmoud Abbas, whose Palestinian Authority exercises limited self-rule in the Israeli-occupied West Bank, was scathing about its prospects of success.

“Money is important. The economy is important. But politics are more important. The political solution is more important.”

Washington will be hoping that attendees in Manama such as wealthy Gulf states will show a concrete interest in the plan, which expects donor nations and investors to contribute $50 billion to Palestinian territories, Jordan, Egypt and Lebanon.

Saudi Arabia – a close U.S. ally which shares a common foe with Israel in Iran – voiced support on Tuesday for “international efforts aimed at improving prosperity, investment and economic growth in the region”.

But Riyadh reiterated that any peace deal should be based on the Saudi-led Arab peace initiative that has been the Arab consensus on the necessary elements for a deal since 2002.

That plan calls for a Palestinian state drawn along borders which predate Israel’s capture of territory in the 1967 Middle East war, as well as a capital in East Jerusalem and refugees’ right of return – points rejected by Israel.

Kushner said the plan would not adhere to the Arab initiative. “It will be somewhere between the Arab Peace Initiative and between the Israeli position,” he told Al Jazeera TV in an interview to air on Tuesday.

Chief Palestinian negotiator Saeb Erekat said Kushner is “committed to the initiatives of Israel’s colonial settlement councils.”

Israeli Prime Minister Benjamin Netanyahu, a close Trump ally, said Israel was open to the plan. “We’ll hear the American proposition, hear it fairly and with openness,” he said on Sunday.

White House senior adviser Jared Kushner and Treasury Secretary Steven Mnuchin arrive at Manama's Four Seasons hotel, the venue for the U.S.-hosted "Peace to Prosperity" conference, in Manama, Bahrain, June 25, 2019. REUTERS/Matt Spetalnick

White House senior adviser Jared Kushner and Treasury Secretary Steven Mnuchin arrive at Manama’s Four Seasons hotel, the venue for the U.S.-hosted “Peace to Prosperity” conference, in Manama, Bahrain, June 25, 2019. REUTERS/Matt Spetalnick

Expectations for success are low. The Trump team concedes the economic plan – billed “Peace to Prosperity” – will be implemented only if a political solution to one of the world’s most intractable conflicts is reached.

Jordan and Egypt, the only Arab states to have reached peace with Israel, are sending deputy finance ministers. Kushner’s plan has hit a political nerve in Jordan, home to millions of citizens of Palestinian refugee origin.

Saudi Arabia and the United Arab Emirates want to move on from a Palestinian conflict they believe has held back the Arab world. Other Gulf states such as Kuwait, Qatar and Oman have not said who they are sending to the conference.

“If there is a one percent chance we do something good here, we should get together and try,” billionaire Mohamed Alabbar, one of Dubai’s most prominent businessmen, said after arriving at the venue in Manama and embracing two American rabbis.

POLITICAL PLAN?

It is not clear whether the Trump team plans to abandon the “two-state solution,” which involves creation of an independent Palestinian state living side by side with Israel.

The United Nations and most nations back the two-state solution and it has underpinned every peace plan for decades.

But Trump’s team has consistently refused to commit to it, keeping the political stage of the plan a secret.

U.N. Secretary-General Antonio Guterres urged the pursuit of “peace efforts to realize the vision of two States, Israel and Palestine, living side by side in peace and security”.

Any such solution would have to settle long-standing issues such as the status of Jerusalem, mutually agreed borders, satisfying Israel’s security concerns and Palestinian demands for statehood, and the fate of Israel’s settlements and military presence in territory in Palestinians want to build that state.

In Gaza, businesses closed doors in a general strike called by the ruling Islamist Hamas group and other factions.

In the West Bank on the outskirts of Ramallah, where a small crowd of protesters was dispersed by Israeli troops firing tear gas, Palestinian lawmaker Mustafa Barghouti said: “There can be no economic solution as a substitute for our freedom.”

The workshop is being held in Bahrain, home of the U.S. Navy’s Fifth Fleet, at a time of heightened tension between Tehran and Washington and its Gulf allies. Trump on Monday imposed sanctions on Iran’s Supreme Leader and other officials after Iran downed an U.S. drone last week.

Palestinian leaders have boycotted the conference, and are refusing to engage with the White House – accusing it of pro-Israel bias. Breaking with international convention, Trump in 2017 recognized disputed Jerusalem as Israel’s capital – a move that infuriated the Palestinians and other Arabs.

Seven Palestinian businessmen gathered in the lobby of the Four Seasons hotel, the conference venue. They estimated that 15 to 20 Palestinian business representatives would be present.

“The politicians will not bring us anywhere,” said conference attendee Shlomi Fogel, an Israeli entrepreneur. “We, the business people, should be able to show them there might be another way.”

(Reporting by Matt Spetalnick and Stephen Farrell; Additional reporting by Nidal al-Mughrabi in Gaza and Rami Ayyub in Ramallah; Writing by Ghaida Ghantous; Editing by Angus MacSwan)

Trump says hard to believe Iranian shooting of U.S. drone was intentional

FILE PHOTO: This combination photo shows a U.S. military Global Hawk drone taking off from Sigonella NATO Airbase in the southern Italian island of Sicily March 20, 2011, in this still image taken from video. REUTERS/REUTERS TV/File Photo

By Roberta Rampton, Phil Stewart and Parisa Hafezi

WASHINGTON/DUBAI (Reuters) – U.S. President Donald Trump played down Iran’s downing of a U.S. military surveillance drone on Thursday, saying he suspected it was shot by mistake and “it would have made a big difference” to him had the remotely controlled aircraft been piloted.

While the comments appeared to suggest Trump was not eager to escalate the latest in a series of incidents with Iran, he also warned: “This country will not stand for it.”

Tehran said the unarmed Global Hawk surveillance drone was on a spy mission over its territory, but Washington said it was shot down over international airspace.

“I think probably Iran made a mistake – I would imagine it was a general or somebody that made a mistake in shooting that drone down,” Trump told reporters at the White House.

“We had nobody in the drone. It would have made a big difference, let me tell you, it would have made a big, big difference” if the aircraft had been piloted, Trump said as he met Canadian Prime Minister Justin Trudeau in the Oval Office.

“It’s hard to believe it was intentional, if you want to know the truth,” he added, saying it could have been carried out by someone who was acting “loose and stupid,” and minimizing the incident as “a new wrinkle … a new fly in the ointment.”

The United States, which called the event an “unprovoked attack” in international airspace, is using economic sanctions to pressure Iran to contain its nuclear and ballistic missile programs and to limit its role in regional wars.

It was the latest in an escalating series of incidents in the Gulf region, a critical artery for global oil supplies, since mid-May, including explosive strikes on six oil tankers.

It was unclear how the United States might respond and U.S. House of Representatives Speaker Nancy Pelosi, the top Democrat in Congress, said Washington had no appetite for war with Iran and should “do everything in our power to de-escalate.”

After a White House briefing for lawmakers, Senate Minority Leader Chuck Schumer, told reporters he was worried Trump “may bumble into a war” and said he and his fellow Democrats believed congressional approval was needed to fund any conflict with Iran.

Iran has denied involvement in the tanker attacks, but global jitters about a new Middle East conflagration disrupting oil exports have triggered a jump in crude prices.

Saudi Arabia, Washington’s main Gulf ally, said Iran had created a grave situation with its “aggressive behavior” and the kingdom was consulting other Gulf Arab states on next steps.

Tensions with Iran flared with Trump’s withdrawal last year from a 2015 nuclear accord with Iran and have worsened as Washington imposed fresh sanctions to throttle Tehran’s vital oil trade. Iran retaliated earlier this week with a threat to breach limits on its nuclear activities imposed by the deal.

‘SPY’ DRONE

Iranian state media said the “spy” drone was brought down over the southern Iranian province of Hormozgan, which is on the Gulf, with a locally made “3 Khordad” missile.

A U.S. official said the drone was a Global Hawk that had been downed in international airspace over the Strait of Hormuz, through which about a third of the world’s seaborne oil exits the Gulf.. Earlier, a U.S. official had described the drone as Triton, a similar aircraft.

Navy Captain Bill Urban, a spokesman for the U.S. military’s Central Command, said Iran’s account that the drone had been flying over Iranian territory was false.

“This was an unprovoked attack on a U.S. surveillance asset in international airspace,” Urban said.

Lieutenant General Joseph Guastella, the top U.S. Air Force commander in the Middle East, told reporters the drone was shot down at high altitude about 34 km (21 miles) from the nearest point of land on the Iranian coast.

Iran’s foreign ministry said the drone had violated Iranian airspace and warned of the consequences of such “illegal and provocative” measures.

Iranian Foreign Minister Mohammad Javad Zarif said on Twitter that the aircraft had taken off from the United Arab Emirates “in stealth mode & violated Iranian airspace.”

Independent confirmation of the drone’s location when it was brought down was not immediately available.

A Iranian Revolutionary Guards statement said the drone’s identification transponder had been switched off “in violation of aviation rules and was moving in full secrecy” when it was downed, Iranian state broadcaster IRIB reported.

IRANIAN ‘RED LINE’

“Our airspace is our red line and Iran has always responded and will continue to respond strongly to any country that violates our airspace,” Ali Shamkhani, secretary of the Supreme National Security Council, told Iran’s Tasnim news agency.

The Global Hawk’s manufacturer, Northrop Grumman Corp, says on its website that it can fly for over 24 hours at a time at altitudes higher than 10 miles (16 km).

Upping the ante in its dealings with Iran, Washington said on Monday it would deploy about 1,000 more troops, along with Patriot missiles and manned and unmanned surveillance aircraft, to the Middle East on top of a 1,500-troop increase announced after the May tanker attacks.

European diplomats have said more evidence is needed to pinpoint responsibility for the tanker strikes.

U.S. sanctions have hammered Iran’s economy, scuttling its oil exports and barring it from the dollar-dominated global finance system. That undoes the promise of trade rewards from the 2015 deal to curb its nuclear ambitions.

Trump has sent forces including aircraft carriers, B-52 bombers and troops to the Middle East over the past few weeks. Iran said last week it was responsible for the security of the Strait of Hormuz, calling on American forces to leave the Gulf.

Tehran has also said it will shortly suspend compliance with the nuclear deal’s curbs on its uranium enrichment, meant to block any pathway to nuclear weapons capability, and threatened to disrupt oil shipments through the Strait of Hormuz.

Senior officials from Iran, France, Germany, Britain, China and Russia will meet on June 28 in Vienna to discuss ways to save the 2015 nuclear accord, the European Union said on Thursday.

(Reporting by Roberta Rampton, Phil Stewart and Parisa Hafezi; Additional reporting by Asma Alsharif and Stephen Kalin in Riyadh, Makini Brice, Doina Chiacu, Richard Cowan, Steve Holland and Jeff Mason in Washinigton and Robin Emmott in Brussels; Writing by Parisa Hafezi and Arshad Mohammed; Editing by Mark Heinrich, Alistair Bell and Peter Cooney)

Trump says he has a ‘feeling’ that U.S., China can strike trade deal

FILE PHOTO: U.S. President Donald Trump speaks at a fundraiser in Des Moines, Iowa, June 11, 2019. REUTERS/Kevin Lamarque

WASHINGTON (Reuters) – U.S. President Donald Trump said on Wednesday he had a “feeling” that a U.S.-China trade deal could be reached but again threatened to increase tariffs on Chinese goods if no agreement is reached.

Speaking to reporters at the White House, Trump also reiterated his intention to meet with Chinese President Xi Jinping but gave no further details.

“I have a feeling that we’re going to make a deal with China,” Trump said.

Trump and administration officials have been eyeing a possible meeting between the two leaders at the upcoming G20 summit in Japan, but Beijing has not confirmed any planned talks.

Trade talks between the world’s two largest economies fell apart in May.

(Reporting by Steve Holland; Writing by Susan Heavey; Editing by Chizu Nomiyama and Jeffrey Benkoe)

British cigarettes, a body in the road: memories of D-Day

Yves Faucon, 86, from Tilly-sur-Seulle in the Normandie region visits his town's military cemetery as he attends an interview with Reuters in Tilly-sur-Seulle, France, May 14, 2019. REUTERS/Christian Hartmann

By Richard Lough

TILLY-SUR-SEULLES, France (Reuters) – It is the sounds and smell of war that are indelibly imprinted in the memory of Yves Faucon, who was 12 when allied troops landed in Normandy and set about driving Nazi Germany’s forces out of France.

“I remember seeing a German body lying on the road and a column of British tanks advancing. One ran over the body,” recalled Faucon, now 87. “It made a grim noise.”

Faucon’s village of Tilly-sur-Seulles, south of Bayeux, lay on the frontline of the allied push toward the city of Caen. The village was won and then lost by the British more than 20 times over a three-week period.

“One morning some Brits arrived and chatted with us. I’ll always remember the smell of their English tobacco. It wasn’t something we were used to.”

More than 150,000 allied soldiers stormed the Normandy beaches on June 6, 1944, bursting through German coastal defenses to open the way to the liberation of western Europe from the Nazi regime.

Seventy-five years later, French President Emmanuel Macron, U.S. President Donald Trump and British Prime Minister Theresa May will attend ceremonies to mark the anniversary of the largest seaborne invasion in history and the soldiers who gave their lives.

Faucon’s widowed mother ran their family-owned hotel in Tilly-sur-Seulles. It was requisitioned by the Germans and as many as 250 German soldiers were holed up in the building. One lunchtime, Faucon said, Field Marshal Erwin Rommel, who commanded the 7th Panzer Division during the 1940 invasion of France, ate there.

Yves Faucon, 86, from Tilly-sur-Seulle in the Normandie region shows a photograph of his mother's hotel in downtown Tilly, which was destroyed during operationsÊafter D-Day, as he attends an interview with Reuters in Tilly-sur-Seulle, France, May 14, 2019. REUTERS/Christian Hartmann

Yves Faucon, 86, from Tilly-sur-Seulle in the Normandie region shows a photograph of his mother’s hotel in downtown Tilly, which was destroyed during operationsÊafter D-Day, as he attends an interview with Reuters in Tilly-sur-Seulle, France, May 14, 2019. REUTERS/Christian Hartmann

“A German soldier watched on as she (Faucon’s mother) cooked for Rommel. She said to him: ‘If I was going to poison a German I would have done it already’.”

Faucon was awoken at dawn on the morning of the landings by a schoolmaster who told him to dress quickly and grab a blanket, as the incessant pounding of artillery on the coast 20km (12.4 miles) north reverberated through the air.

“They put us in a roadside ditch. We hid there the whole day, 80 of us,” said Faucon, who still lives in the village that lay in ruins by the time it was liberated. “The first English soldiers we saw were flanked by Germans. They were prisoners.”

The British forces suffered heavy losses in the battle for control of Tilly-sur-Seulles, fighting which forced the Faucon family to seek refuge in neighboring villages and remote homesteads.

Outside Tilly-sur-Seulles, flowers are planted at the feet of more than 1,200 crosses in a manicured war cemetery, most of them marking the final resting place of British soldiers.

“When you read these headstones, many of them say ‘Rest in Peace’. But they didn’t know peace,” said Kenneth Loughman, a retired U.S. Navy chaplain who served in Vietnam and was visiting the region’s memorials. “We gotta end going to war.”

(Reporting by Richard Lough; Editing by Andrew Heavens)

U.S. House fails to pass disaster aid bill; second attempt likely next month

FILE PHOTO: Tom Geisler surveys damaged to his farm, following flooding in Winslow, outside Omaha, Nebraska, U.S., March 20, 2019. REUTERS/Humeyra Pamuk/File Photo

WASHINGTON (Reuters) – The U.S. House of Representatives on Friday failed to pass a $19.1 billion disaster aid bill supported by President Donald Trump, but is expected to try again early next month.

Following Senate passage of the legislation on Thursday by a vote of 85-8, House leaders had hoped to win quick, unanimous approval of the bill and send it to Trump for his expected signature.

FILE PHOTO: Flood damage is shown in this earial photo in Percival, Iowa, U.S., March 29, 2019. REUTERS/Tom Polansek/File Photo

FILE PHOTO: Flood damage is shown in this earial photo in Percival, Iowa, U.S., March 29, 2019. REUTERS/Tom Polansek/File Photo

But since the House did not go through regular, more time-consuming procedures, it needed the consent of all of its current 432 members to approve the bill.

For months, lawmakers have been haggling behind the scenes over the disaster aid bill in response to hurricanes in the southeastern U.S., severe flooding in the Midwest, devastating wildfires in California and other events.

The $19.1 billion in the bill is intended to help farmers cover their crop losses and rebuild infrastructure hit by disasters, including repairs to U.S. military bases.

Representative Chip Roy, a first-term Republican, objected to holding the vote, citing concerns that the legislation did not include $4.5 billion Trump had requested to deal with a surge of Central American immigrants on the southwestern border.

Roy also complained that the cost of the bill was not offset by savings to other government programs.

“This is a $19-billion bill that is not paid for when we are racking up $100 million of debt per hour,” Roy complained.

Congress regularly approves “emergency” disaster aid bills without any cuts to other programs, despite objections from some conservative lawmakers.

When the House returns from a week-long Memorial Day recess it is expected to bring the legislation back to the House floor for likely passage.

Friday’s action played out in a nearly empty House chamber as most of its members have left Washington for a week-long Memorial Day holiday recess.

(Reporting by Richard Cowan; editing by Jonathan Oatis and Nick Zieminski)

North Korea says recent rocket drill was “regular and self-defensive”: KCNA

North Korean military conducts a "strike drill" for multiple launchers and tactical guided weapon into the East Sea during a military drill in North Korea, in this May 4, 2019 photo supplied by the Korean Central News Agency (KCNA). KCNA via REUTERS

By Josh Smith

SEOUL (Reuters) – North Korea’s “strike drill” last week at which leader Kim Jong Un oversaw the launch of rockets and at least one short-range ballistic missile was “regular and self-defensive,” the North’s foreign ministry said on Wednesday, according to state media.

“The recent drill conducted by our army is nothing more than part of the regular military training, and it has neither targeted anyone nor led to an aggravation of the situation in the region,” an unidentified ministry spokesperson said in a statement to the state-run KCNA news agency.

Saturday’s drill was the first test of a ballistic missile by North Korea since it launched a long-range intercontinental ballistic missile in November 2017.

It came in the wake of talks with the United States and South Korea stalling in February, and raised alarms in both countries, which have been seeking to entice the North into abandoning its nuclear weapons and ballistic missile programs.

Seoul responded on Saturday by calling on its northern neighbor to “stop acts that escalate military tension on the Korean Peninsula.”

In a second statement carried by KCNA on Wednesday, a spokesman for the North Korean office in charge of military engagement with South Korea lashed out at Seoul over any suggestion that the rocket drills had violated an inter-Korean agreement aimed at reducing military tension.

“The South Korean military should take a close look at the inter Korean military agreement and recall what it has done itself before talking nonsense that it was against the spirit of the agreement,” the spokesperson said, according to KCNA.

The second statement also criticized last week’s test of a U.S. Minuteman intercontinental ballistic missile (ICBM) by the U.S. Air Force out of California over the Pacific, saying South Korea was in no position to criticize North Korea.

“The South Korean military has no right to say a word to its fellow countrymen when it acted like a mute who ate honey when the United States fired a Minuteman ICBM which threatens us,” the military spokesman said.

U.S. President Donald Trump, who has met with Kim twice, said he was still confident he could have a deal with Kim, and South Korean officials have subsequently played down the test.

North Korea’s foreign ministry statement hit back at “spiteful remarks” about the tests from unnamed critics, warning that “baseless allegations” might “produce a result of driving us to the direction which neither we nor they want to see at all.”

The ministry spokesperson said there was a double standard, with South Korea and the United States carrying out military drills with little criticism.

“Only our regular and self-defensive military drill is branded as provocative, and this is an undisguised manifestation of the attempt to press the gradual disarmament of our state and finally invade us,” the spokesperson said. “We think this is very much unpleasant and regrettable, and we sound a note of warning.”

After meeting with Kim for the first time in June last year, Trump abruptly announced he was cancelling all large-scale military exercises with South Korea.

Smaller exercises have continued, however, drawing regular criticism from Pyongyang.

North Korea had maintained a freeze in nuclear and ballistic missiles testing in place since 2017, a fact Trump has repeatedly pointed out as an important achievement from his engagement with Pyongyang.

Denuclearization talks with North Korea have stalled, however, after Trump and Kim met in February for a second summit but failed to reach an agreement.

North Korea balked at the extent of the demands made by American negotiators, and Trump said he ended the summit early because Kim was asking for nearly all major sanctions to be lifted while offering little in return.

The U.S. special envoy for North Korea, Stephen Biegun, arrived in Seoul on Wednesday for talks with South Korean officials.

He did not respond to questions from journalists, but his agenda is expected to include the missile test, as well as other aspects of talks with North Korea, including plans for possible humanitarian aid.

(Reporting by Josh Smith; Additional reporting by Hyonhee Shin and Minwoo Park. Editing by Clarence Fernandez and Hugh Lawson)

Senate’s McConnell: ‘Case closed’ on Mueller probe, but top Democrat sees ‘cover-up

FILE PHOTO: U.S. President Donald Trump listens to a question from reporters next to Senate Majority Leader Mitch McConnell (R-KY) as he arrives for a closed Senate Republican policy lunch on Capitol Hill in Washington, U.S., March 26, 2019. REUTERS/Brendan McDermid/File Photo

By Richard Cowan

WASHINGTON (Reuters) – U.S. Senate Majority Leader Mitch McConnell on Tuesday sought to slam the door on further investigations of President Donald Trump by declaring “case closed” after a two-year probe of Russia’s meddling in the 2016 elections, even as House Democrats’ war with the White House intensified.

McConnell, the top Republican in the U.S. Congress, delivered a stinging rebuke of Democrats seeking additional information on Special Counsel Robert Mueller’s report that found no evidence Trump’s 2016 campaign colluded with Russia.

(Graphic: https://graphics.reuters.com/USA-TRUMP-RUSSIA/010091HX27V/report.pdf)

“The special counsel’s finding is clear. Case closed,” McConnell declared.

Meanwhile, battles between the White House and congressional Democrats over documents and testimony related to the Mueller investigation deepened on Tuesday.

White House Counsel Pat Cipollone informed the House Judiciary Committee in a letter that ex-White House Counsel Don McGahn does not have the legal right to comply with a House of Representatives subpoena and disclose documents related to Mueller’s investigation.

White House spokeswoman Sarah Sanders, when asked by ABC News whether McGahn would comply with the subpoena, said, “I don’t anticipate that that takes place.”

McConnell accused Democrats of being in an “absolute meltdown” and refusing “to accept the bottom line conclusion” that Mueller’s “exhaustive” report found no collusion with Russia.

Since the public release of the report last month, House and Senate Republicans have defended the president and called for an end to congressional investigations.

Mueller detailed extensive contacts between Trump’s campaign and Moscow. His 448-page report also outlined 11 instances in which the president tried to impede the special counsel’s investigation, but avoided a conclusion on whether or not Trump obstructed justice.

Speaking on the Senate floor after McConnell, Senate Democratic Leader Chuck Schumer fired back, calling Trump a “lawless president” and accusing the Senate Republican leader of wanting to bury any congressional investigations.

“Of course he wants to move on. He wants to cover up,” Schumer said of McConnell.

Schumer likened McConnell’s move to President Richard Nixon, who was under investigation by Congress before resigning from office in 1974 in the face of impeachment and likely conviction.

“It’s sort of like Richard Nixon saying let’s move on at the height of the investigation of his wrongdoing,” Schumer said.

While McConnell urged an end to the fight over the Mueller report, he acknowledged that was unlikely. Democrats hold a majority in the House, while Republicans control the Senate.

“Would we finally be able to move on from partisan paralysis and breathless conspiracy theorizing? Or would we remain consumed by unhinged partisanship,” McConnell said, adding, “Regrettably, the answer is pretty obvious.”

House Democrats prepared to meet with Justice Department officials on Tuesday over Attorney General William Barr’s failure to release the full unredacted Mueller report as they prepared to cite him for contempt.

The House Judiciary Committee has scheduled a Wednesday vote on a contempt citation for Barr, who missed a second deadline to give lawmakers the full report and failed to appear at a hearing before the panel last week.

The full House would then vote on the rebuke.

A contempt citation against McGahn or other administration officials could lead to a civil case, raising the possibility of fines and even imprisonment for failure to comply.

The Judiciary Committee is among several House panels investigating Trump and his administration on various matters, including the Russia probe and Trump’s personal and business tax returns.

The administration is stonewalling congressional investigators while the president, who has denied any wrongdoing, vowed to fight all congressional subpoenas.

On Monday, U.S. Treasury Secretary Steven Mnuchin turned down the House Ways and Means Committee’s request for Trump’s tax returns, teeing up a likely legal battle.

Democratic lawmakers want Mueller to testify before Congress, something Trump has balked at although Barr has said he would not object.

If lawmakers decide that Trump obstructed justice by seeking to impede Mueller, Judiciary Committee Chairman Jerrold Nadler could move to impeachment proceedings against the president.

If the House goes down the impeachment route, at least some Republican support would be needed for a Senate conviction.

(Reporting by Richard Cowan; Additional reporting by Susan Heavey, Tim Ahmann and Steve Holland; Editing by Jeffrey Benkoe)

Trump discusses North Korea with Japan’s Abe after reported weapons tests

U.S. President Donald Trump meets with Japan's Prime Minister Shinzo Abe in the Oval Office at the White House in Washington, U.S., April 26, 2019. REUTERS/Kevin Lamarque

WASHINGTON (Reuters) – U.S. President Donald Trump said on Monday he had spoken with Japanese Prime Minister Shinzo Abe about North Korea and trade after North Korea raised doubts about the future of denuclearization dialogue with new weapons tests.

In a tweet, Trump described his talk with Abe, a close ally, as a “Very good conversation!” but gave no other details.

Trump and his administration have played down the North Korean weapons tests, which took place on Saturday, and which military analysts say could have involved short-range, ground-to-ground ballistic missiles.

Abe told reporters the United States and Japan would “respond together” to North Korea “going forward.”

If the weapons were ballistic missiles, they would have been the first fired by North Korea since its 2017 freeze in nuclear and missile testing opened the way for dialogue with the United States and South Korea.

Analysts interpreted the tests as an attempt to exert pressure on Washington to give ground in denuclearization negotiations after a February summit between Trump and North Korean leader Kim Jong Un ended in failure.

In a Twitter message on Saturday, Trump said he was still confident he could reach a deal with Kim.

U.S. Secretary of State Mike Pompeo said on Sunday that Washington still had “every intention” of negotiating with North Korea. Pompeo said he and Trump spoke about the launches on Saturday and were “evaluating the appropriate response.”

“But … we’re going to exhaust every diplomatic opportunity there is,” he told CBS. “We still believe there is a path forward where Chairman Kim can denuclearize without resort to anything beyond diplomacy.”

Pompeo said the launches were “short range” and that Washington had “high confidence” they did not involve intermediate-range missiles or intercontinental missiles that threaten the United States. He said they had not crossed any international boundary and posed no threat to South Korea or Japan.

North Korea’s official media described the tests as a “strike drill” supervised by Kim to test “large-caliber long-range multiple rocket launchers and tactical guided weapons.”

Kim Dong-yub, a military expert at South Korea’s Kyungnam University, said the guided weapons could have been solid-fuel ballistic missiles with a range of up to 500 km (311 miles) that could neutralize the advanced U.S. THAAD anti-missile system deployed in South Korea.

White House adviser Larry Kudlow said on Friday that Washington and Tokyo may finalize a trade agreement by the end of May after Trump and Abe met at the White House last month.

(Reporting by David Brunnstrom and Makini Brice; Editing by Susan Heavey and Jeffrey Benkoe)

China trade team still plans on U.S. talks as Trump vows to raise tariffs

FILE PHOTO: Chinese and U.S. flags are set up for a meeting during a visit by U.S. Secretary of Transportation Elaine Chao at China's Ministry of Transport in Beijing, China April 27, 2018. Picture taken April 27, 2018. REUTERS/Jason Lee/File Photo

By Ben Blanchard and Jeff Mason

BEIJING/WASHINGTON (Reuters) – China said on Monday that a delegation was still preparing to go to the United States for trade talks, even as U.S. President Donald Trump dramatically increased pressure on Beijing to reach a deal, saying he would hike tariffs on Chinese goods this week.

Trump’s comments on Sunday marked a major escalation in tensions between the world’s two largest economies, and a shift in tone from the president, who as recently as Friday had cited progress toward a deal.

Stock markets sank and oil prices tumbled on his remarks, as negotiations to end the months-long trade war were thrown into doubt.

“We are also in the process of understanding the relevant situation. What I can tell you is that China’s team is preparing to go to the United States for the discussions,” Chinese Foreign Ministry spokesman Geng Shuang told a news briefing.

But Geng did not say if Vice Premier Liu He, who is China’s lead official in the negotiations, will be part of the delegation as originally planned. Negotiations are set to start May 8 in Washington.

“What is of vital importance is that we still hope the United States can work hard with China to meet each other halfway, and strive to reach a mutually beneficial, win-win agreement on the basis of mutual respect,” Geng said.

The Wall Street Journal reported earlier that China was considering canceling this week’s meetings in Washington in light of Trump’s comments, which took Chinese officials by surprise.

Trump appeared to defend his decision in a tweet early Monday, slamming the U.S.-China trade deficit and vowing not to lose out to Beijing.

A less-than-rosy update from U.S. Trade Representative Robert Lighthizer, including details that China was pulling back from some previous commitments, prompted Trump’s weekend decision.

“The Trade Deal with China continues, but too slowly, as they attempt to renegotiate. No!” Trump said in a tweet.

Trump said tariffs on $200 billion of goods would increase on Friday to 25 percent from 10 percent, reversing a decision he made in February to keep them at 10 percent due to progress between the two sides.

The president also said he would target a further $325 billion of Chinese goods with 25 percent tariffs “shortly,” essentially covering all products imported to the United States from China.

‘ATMOSPHERE HAS CHANGED’

U.S. officials did not weigh in on whether they expected talks to go ahead this week. The White House and the U.S. Trade Representative’s Office declined to comment. China’s commerce ministry did not immediately respond to a request for comment.

“The atmosphere of the negotiations has changed,” said a Chinese official with knowledge of the situation.

Whether and how the talks proceed are being re-evaluated, the official told Reuters on condition of anonymity.

“All that depends on the attitude of the United States,” the official said.

Chinese news outlets have been told not to independently report on Trump’s tweets, and instead adhere to any report from the official Xinhua news agency, said a source with direct knowledge of the matter.

Global financial markets, which had been expecting news of a trade deal soon, went into a tailspin. U.S. equity futures fell more than 2 percent and stocks across trade-reliant Asia tumbled. China’s main indexes slid 5 percent.

“There is still a question of whether this is one of the famous Trump negotiation tactics, or are we really going to see some drastic increase in tariffs,” said Nick Twidale, Sydney-based analyst at Rakuten Securities Australia. “If it’s the latter, we’ll see massive downside pressure across all markets.”

Mindful of his 2020 re-election bid, Trump had also suggested the duties were not leading to price increases for U.S. consumers. “The Tariffs paid to the USA have had little impact on product cost, mostly borne by China,” he tweeted.

Tariffs on Chinese goods are actually paid to the United States by companies that import the goods, and most of those companies are U.S.-based. American businesses, while supportive of Trump’s crackdown on China’s trade practices, are eager for the tariffs to be removed, not expanded.

“Raising tariffs means raising taxes on millions of American families and inviting further retaliation on American farmers,” said Christin Fernandez, a spokeswoman for the Retail Industry Leaders Association.

‘HANG TOUGH’

Nevertheless, the president’s aggressive strategy drew rare bipartisan support from U.S. Senate Democratic leader Chuck Schumer, who urged Trump to “hang tough” in a tweet: “Don’t back down. Strength is the only way to win with China.”

One Chinese trade expert said recent signs of resilience in both economies were breeding over-confidence.

“The urgency is gone. So, it’s likely to see a longer trade war,” the expert said, speaking on condition of anonymity due to the sensitivity of the topic.

The trade war resulted in billions of dollars in losses for both sides in 2018, hitting autos, technology and above all, agriculture, while inflicting collateral damage on export-reliant economies and companies from Japan to Germany.

On Friday, Trump said talks with China were going well.

Last week, industry sources said they believed the talks were in the end game, but a Trump administration official said aides had told the president that significant hurdles remained.

The increase in U.S. tariffs on Friday would be the first since Trump imposed 10 percent tariffs on $200 billion of Chinese goods in September, coming on top of 25 percent tariffs on $50 billion of goods enacted earlier last year.

Negotiations about tariffs have been one of the remaining sticking points between the two sides. China wants the tariffs to be removed, while Trump wants to keep some, if not all, as part of any final deal to ensure China lives up to its commitments, a White House official said on Sunday.

(Reporting by Jeff Mason, David Shepardson, Timothy Gardner, Lawrence Hurley and Makini Brice in Washington; Sinead Carew in New York; and Ben Blanchard, Michael Martina, Shu Zhang, Jing Xu, Cheng Leng and Yawen Chen in Beijing; Editing by Simon Cameron-Moore and Jeffrey Benkoe)

Trump rejects Mexican efforts in face of fresh migrant caravan

FILE PHOTO: U.S. Marines help to build a concertina wire barricade at the U.S. Mexico border in preparation for the arrival of a caravan of migrants at the San Ysidro border crossing in San Diego, California, U.S., November 13, 2018. REUTERS/Mike Blake/File Photo

WASHINGTON (Reuters) – U.S. President Donald Trump on Wednesday called on Mexico to do more to block a new caravan of migrants and asylum-seekers traveling through the country toward the United States, reiterating his threat to close the border or send more troops.

“A very big Caravan of over 20,000 people started up through Mexico,” Trump wrote on Twitter. “It has been reduced in size by Mexico but is still coming. Mexico must apprehend the remainder or we will be forced to close that section of the Border & call up the Military.”

Trump said Mexico was not doing enough to apprehend and return migrants and, without offering evidence, said Mexican soldiers recently had “pulled guns” U.S. troops.

He said the incident probably was “a diversionary tactic for drug smugglers” and armed troops were being sent to the border.

Mexican officials could not be immediately reached for comment on Trump’s statement.

Trump has made cracking down on immigration a priority that fueled his 2016 presidential campaign and election victory. More than 100,000 people were apprehended or presented themselves to U.S. authorities in March, according to the White House, which said it was the highest number in a decade.

In response to what Trump has described as a crisis, his administration has sent thousands of active-duty and National Guard troops to the border and moved border agents to handle an influx of migrants. Last month, Trump threatened to close the U.S.-Mexico border if the Mexican government did not immediately stem illegal migration.

When Congress declined to designate money to build a border wall, Trump declared a national emergency earlier this year over the issue in a bid to redirect funding for the project, thrusting the immigration issue to the forefront of the 2020 presidential race.

The head of Mexico’s National Migration Institute, Tonatiuh Guillen, on Tuesday pointed to an increase in deportations from the country, saying Mexico had returned 15,000 migrants in the past 30 days.

He did not specify where the people were deported to, but the majority of people traveling through Mexico to the United States are from Guatemala, Honduras and El Salvador, where migrants say they are fleeing corruption, gang violence and entrenched poverty.

(Reporting by Makini Brice; Editing by Susan Heavey and Bill Trott)