Trump sanctions fail to slow Turkey assault; Syrian troops move on Manbij

Smoke rises over the Syrian town of Ras al-Ain as seen from the Turkish border town of Ceylanpinar, Sanliurfa province, Turkey, October 15, 2019. REUTERS/Stoyan Nen

MANBIJ, Syria (Reuters) – Turkey ignored U.S. sanctions and pressed on with its assault on northern Syria on Tuesday, while the Russia-backed Syrian army roared into one of the most hotly contested cities abandoned by U.S. forces in Donald Trump’s retreat.

Reuters journalists accompanied Syrian government forces who entered the centre of the city of Manbij, a flashpoint where U.S. troops had previously conducted joint patrols with Turkey.

Russian and Syrian flags were flying from a building on the city outskirts, and from a convoy of military vehicles.

U.S. forces announced they had pulled out of the city.

A week after reversing U.S. policy and moving troops out of the way to allow Turkey to attack Washington’s Syrian allies, Trump announced a package of sanctions to punish Ankara.

But the measures – mainly a hike in steel tariffs and a pause in trade talks – were less robust than financial markets had expected, and Trump’s critics derided them as too feeble to have an impact.

The Turkish lira, which had fallen on the expectation of tougher U.S. measures, recovered after the sanctions were announced, as did its bond and stock markets, with traders noting that Trump had spared Turkish banks.

Trump’s unexpected decision to withhold protection from Syria’s Kurds after a phone call with Turkish President Tayyip Erdogan a week ago swiftly upended five years of U.S. policy in the Middle East.

The withdrawal gives a free hand to Washington’s adversaries in the world’s deadliest ongoing war, namely Syrian President Bashar al-Assad and his Russian and Iranian allies.

The United States announced on Sunday it was withdrawing its entire force of 1,000 troops from northern Syria. Its former Kurdish allies immediately forged a new alliance with Assad’s Russia-backed government, inviting the army into towns across the breadth of their territory.

TROOPS ENTER MANBIJ

Russian-backed Syrian forces moved swiftly to fill the void left by departing Americans from Manbij west of the Euphrates river, which Turkey has vowed to capture.

“We are out of Manbij,” said Colonel Myles B Caggins, spokesman for the U.S.-led coalition in Syria. Troops “are executing a deliberate withdrawal from northeast Syria.”

A group of journalists accompanied by Syrian army personnel journeyed into Manbij city where upon their arrival a group of people gathered, waving the Syrian flag and pictures of Assad.

However the reporters left when gunfire was heard and a group of some 10 young men in Kurdish YPG uniforms began breaking cameras and yelling.

Syrian state media said SDF fighters had opened fire on a march organised by the people of Manbij to welcome the army.

Trump’s pullout ends joint U.S.-Turkish patrols of the Manbij area under a deal aimed to persuade Turkey not to invade.

Syrian state television broadcast footage of what it said was government troops entering Manbij on Tuesday, under their new deal with the Kurds. A resident inside the city told Reuters the Syrian troops were on its outskirts. Turkey-backed Syrian fighters said they would continue their advance towards Manbij.

A Reuters cameraman on the Turkish frontier reported heavy bombardment on Tuesday morning of the Syrian border town of Ras al Ain, where a spokesman for the Kurdish-led Syrian Democratic Forces reported a fierce battle was taking place.

SANCTIONS ANNOUNCEMENT “FALLS VERY SHORT”

Trump has defended his reversal of U.S. policy as part of a plan to withdraw the United States from “endless” wars in the Middle East.

But his critics, including senior figures in his own Republican Party, cast it as a betrayal of the Kurds, loyal allies who lost thousands of fighters as the principal ground forces in Washington’s battle against Islamic State.

The Democratic speaker of the House of Representatives, Nancy Pelosi, said Trump’s sanctions were too little, too late.

“His announcement of a package of sanctions against Turkey falls very short of reversing that humanitarian disaster.”

Turkey says it aims to defeat the Kurdish YPG militia, which it sees as terrorists for their links to separatists in Turkey, and to create a “safe zone” where millions of Syrian refugees can be resettled.

The United Nations says 160,000 people have fled their homes as Turkish forces advance. The Kurdish administration puts the number of displaced at 270,000.

The U.N. Human Rights office said on Tuesday Turkey could be held responsible for war crimes by fighters under its direction, potentially including the assassination of Hevrin Khalaf, a leading Kurdish politician killed on the side of a highway on Saturday by gunmen who posted the incident on the Internet.

Turkish-backed fighters have denied blame for her murder.

Erdogan, who has pledged to continue military operations come what may, said Turkey was giving the world a chance to bring peace to the region.

“The international community missed its opportunity to prevent the Syrian crisis from pulling an entire region into a maelstrom of instability,” he wrote in the Wall Street Journal. “The European Union – and the world – should support what Turkey is trying to do.”

The Syrian army deployments into Kurdish-held territory evacuated by Washington are a victory for President Bashar al-Assad and his most powerful ally, Russia, giving them a foothold in the biggest remaining swath of the country that had been beyond their grasp.

Trump allies insisted Washington had not given its blessing to the Turkish offensive, and demanded a ceasefire.

“The United States of America simply is not going to tolerate Turkey’s invasion in Syria any further,” Vice President Mike Pence said. “We are calling on Turkey to stand down, end the violence and come to the negotiating table.”

Trump’s sanctions include reimposing steel tariffs and halting talks on a trade deal. But bilateral trade between Turkey and the United States is small – around a tenth the size of Turkey’s trade with Europe. Washington’s most effective form of economic leverage would be to hinder Turkey’s access to U.S. financial markets, a step Trump has so far avoided.

“The sanctions are not related to banking, so the markets will have a positive perception,” said Cem Tozge, asset management director at Ata Invest.

In a potentially more damaging blow, German carmaker Volkswagen said it was postponing a final decision on whether to build a 1 billion euro ($1.1 billion) plant in Turkey, citing concern over “current developments” after international condemnation of the incursion.

European countries have criticised the offensive but have limited their response so far to announcing suspensions of arms sales, although weapons account for only a small fraction of EU-Turkish trade.

Trump said U.S. troops would remain at a small garrison at Tanf in southern Syria “to continue to disrupt remnants” of Islamic State. The base on the southern border is hundreds of miles away from the Kurdish area in the north that had previously been the main U.S. theatre.

(Additional reporting by Ellen Francis and Tom Perry in Beirut, Tuvan Gumrukcu in Ankara, Can Sezer and Behiye Selin Taner in Istanbul; Writing by Peter Graff; editing by Mike Collett-White)

As options narrow on Syria, Trump prepares to drop sanctions hammer on Turkey

By Idrees Ali and Humeyra Pamuk

WASHINGTON (Reuters) – President Donald Trump’s administration is set to impose economic sanctions on Ankara, potentially as early as this week, for its incursion into northern Syria, one of the few levers the United States still has over NATO-ally Turkey.

Using the U.S. military to stop the Turkish offensive on U.S.-allied Kurdish fighters was never an option, defense officials have said, and Trump asked the Pentagon on Sunday to begin a “deliberate” withdrawal of all U.S. troops from northern Syria.

After Treasury Secretary Steven Mnuchin said on Friday that Trump had authorized “very powerful” new sanctions targeting Turkey, the administration appeared ready to start making good on Trump’s threat to obliterate Turkey’s economy.

On Sunday, Trump said he was listening to Congress, where Republicans and Democrats are pushing aggressively for sanctions action.

“Dealing with @LindseyGrahamSC and many members of Congress, including Democrats, about imposing powerful Sanctions on Turkey,” Trump said on Twitter, referring to the loyal Trump ally and U.S. senator who lambasted the president last week.

“Treasury is ready to go, additional legislation may be sought. There is great consensus on this. Turkey has asked that it not be done. Stay tuned!” he added.

A U.S. official, speaking on condition of anonymity, told Reuters that sanctions were “being worked out at all levels of the government for rollout.”

Trump is struggling to quell harsh criticism, including from some of his staunchest Republican backers, that he gave Turkish President Tayyip Erdogan a green light to attack the Kurds last Sunday when he decided to pull a small number of U.S. troops out of the border area.

Turkey’s offensive aims to neutralize the Kurdish YPG militia, the main component of the Syrian Democratic Forces (SDF) and seen by Ankara as a terrorist group aligned with Kurdish insurgents in Turkey. But the SDF has also been Washington’s key ally in fighting that has dismantled Islamic State’s jihadist “caliphate” in Syria.

Trump’s decision, rooted in his long-stated aim to get the United States out of “endless wars,” has prompted bipartisan concerns that it opens the door to the revival of Islamic State.

While sanctions appear to be the strongest tool of deterrence, the United States and its European allies could also ponder arms sales bans and the threat of war crimes prosecutions.

“Good decision by President @realDonaldTrump to work with Congress to impose crippling sanctions against Turkeys outrageous aggression/war crimes in Syria,” Graham tweeted.

‘MONUMENTAL FAILURE’

It is unclear what sanctions are in the order drafted last week, which Mnuchin said was ready for activation at any moment, and whether they would be as severe as what lawmakers are proposing.

Representatives Eliot Engel, the Democratic chairman of the U.S. House of Representatives Foreign Affairs Committee, and Mike McCaul, the committee’s senior Republican, introduced a bill last Friday that would sanction Turkish officials involved in the Syria operation and banks involved with Turkey’s defense sector until Turkey ends military operations in Syria.

It also would stop arms from going to Turkish forces in Syria, and require the administration to impose existing sanctions on Turkey for its purchase of a Russian S-400 missile-defense system.

Turkey’s Foreign Ministry said late on Friday that Turkey would retaliate against any steps aimed at countering its efforts to fight terrorism, in response to the announcement of possible U.S. sanctions against Turkey.

The United States has successfully gone after Turkey with sanctions and tariffs before, hitting Ankara last year to pressure authorities to return an American pastor on trial for terrorism charges.

The United States could look at targeting arm sales to Turkey, something a number of European countries have already done. France said on Saturday that it had suspended all weapon sales to Turkey and warned Ankara that its offensive in northern Syria threatened European security.

The White House could also look at increasing pressure on Turkey over reports of human rights abuses during the offensive, with a threat of war crimes prosecutions.

The United States is looking into reports that a Kurdish politician and captured Kurdish fighters were killed in northeastern Syria amid Turkey’s offensive, a State Department spokesman told Reuters, adding that Washington found the reports disturbing.

In response to the reports, the U.S. official said: “This is awful. All these are among the issues that is addressed

by our executive order,” referring to the sanctions.

Experts doubted that any of the U.S. punishments would make Erdogan change his mind, given his long-held belief that the Kurdish fighters in Syria threaten national security and whom Ankara sees as a branch of the Kurdistan Workers Party (PKK).

“This is a monumental failure on behalf of the United States,” said Aaron Stein, director of the Middle East program at the Foreign Policy Research Institute think tank.

Stein said it would be the Syrian government or Russia, not American sanctions, that could stop the Turkish operation.

“The only thing that will stop them is if the regime or the Russians move in significant numbers to where they stop,” Stein said.

The Syrian army will deploy along the length of the border with Turkey in an agreement with the Kurdish-led administration in northern Syria to help repel a Turkish offensive, the Kurdish-led administration said on Sunday.

The United States does have one person that Erdogan has long wanted extradited: the U.S.-based Muslim cleric Fethullah Gulen, accused by Turkey of orchestrating a failed 2016 military coup against Erdogan.

U.S. officials have said the courts would require sufficient evidence to extradite the elderly Gulen, who has denied any involvement in the coup and has lived in self-imposed exile in the United States since 1999.

(Reporting by Idrees Ali and Humeyra Pamuk; Editing by Mary Milliken and Peter Cooney)

China wants more talks before signing Trump’s ‘Phase 1’ deal: Bloomberg

(Reuters) – China wants more talks as soon as the end of October to hammer out the details of the “phase one” trade deal outlined by U.S. President Donald Trump before Chinese President Xi Jinping agrees to sign it, Bloomberg reported on Monday, citing people familiar with the matter.

Beijing may send a delegation led by Chinese Vice Premier Liu He to finalize a written deal that could be signed by the two leaders at the Asia-Pacific Cooperation summit next month in Chile, Bloomberg said.

China wants Trump to also scrap a planned tariff hike in December in addition to the hike scheduled for this week, the report added.

(Reporting by Rama Venkat in Bengaluru; Editing by Alex Richardson)

Russia-backed Syrian forces step in as U.S. retreats

Turkish-backed Syrian rebels drive on a street in the Turkish border town of Akcakale in Sanliurfa province, Turkey, October 14, 2019. REUTERS/Stoyan Nenov

Russia-backed Syrian forces step in as U.S. retreats
By Ellen Francis and Tuvan Gumrukcu

BEIRUT/ANKARA (Reuters) – Russia-backed Syrian forces wasted no time in taking advantage of an abrupt U.S. retreat from Syria on Monday, deploying deep inside Kurdish-held territory south of the Turkish frontier less than 24 hours after Washington announced a full withdrawal.

Washington’s Kurdish former allies said they invited in the government troops as an “emergency measure” to help fend off an assault by Turkey, launched last week with “a green light” from President Donald Trump that the Kurds describe as a betrayal.

The Syrian government’s deployment on Monday is a major victory for President Bashar al-Assad and his principal ally Russia, who gained a military foothold across the biggest swathe of the country that had been beyond their grasp.

Under their deal with the Kurds, government forces are poised to move into border areas from the town of Manbij in the west to Derik, 400 km (250 miles) to the east.

Syrian state media reported that troops had already entered Tel Tamer, a town on the strategically important M4 highway that runs east-west around 30 km south of the frontier with Turkey.

State TV later showed residents welcoming Syrian forces into the town of Ain Issa, which lies on another part of the highway, hundreds of km (miles) away. An SDF media official said he could not confirm these deployments.

Ain Issa commands the northern approaches to Raqqa, former capital of the Islamic State “caliphate”, which Kurdish fighters recaptured from the militants two years ago in one of the biggest victories of a U.S.-led campaign.

Much of the M4 lies on the southern edge of territory where Turkey aims to set up a “safe zone” inside Syria. Turkey said it had seized part of the highway. An official of the Kurdish-led Syrian Democratic Forces (SDF) said clashes were ongoing.

U.S. STRATEGY CRUMBLES

The swift Syrian government deployments came as the strategy the United States has pursued in Syria for the past five years crumbled overnight. Washington announced on Sunday it was abruptly pulling out its entire force of 1,000 troops which had fought alongside Syrian Kurds against Islamic State since 2014.

A U.S. official said on Monday a diplomatic team working to help stabilize territory captured from Islamic State. U.S. troops were still on the ground but early phases of their withdrawal had started, the official said.

Two other U.S. officials have told Reuters the bulk of the U.S. pullout could be completed within days.

Sunday’s announcement of the U.S. retreat came just a week after Trump said he would shift a small number of troops out of the way near the border, allowing Turkey to attack the Kurds in what Kurdish officials branded a stab in the back.

Thousands of fighters from a Kurdish-led force have died since 2014 fighting against Islamic State in partnership with the United States, a strategy the Trump administration had continued after inheriting it from his predecessor Barack Obama.

Trump says he aims to extract the United States from “endless” wars in the Middle East, in keeping with his view that Washington cannot be the world’s policeman. However, he has announced the Syrian retreat even as he has sent thousands of troops on a new deployment to Saudi Arabia.

His Syrian policy reversal allowed Turkey to launch a cross-border assault last week that sent tens of thousands of civilians fleeing and the Kurds scrambling to find new friends.

“After the Americans abandoned the region and gave the green light for the Turkish attack, we were forced to explore another option, which is talks with Damascus and Moscow to find a way out and thwart these Turkish attacks,” senior Kurdish official Badran Jia Kurd said.

Jia Kurd described the new arrangement with Assad’s forces as a “preliminary military agreement”, and said political aspects would be discussed later.

The Kurds have led an autonomous administration across a wide stretch of north and east Syria. Assad aims to restore his government’s authority across all of Syria after more than eight years of war.

Another senior Kurdish politician, Aldar Xelil, called the pact with Damascus “an emergency measure”.

“The priority now is protecting the border’s security from the Turkish danger,” Xelil said. “We are in contact with the Damascus government to reach common (ground) in the future.”

The biggest change for years in the battlefield of the world’s deadliest ongoing war, the developments create a potential new frontline hundreds of kilometers long between forces of Russia and Turkey and their Syrian allies and proxies.

The U.S. exit leaves Turkish President Tayyip Erdogan and Russia’s Vladimir Putin, along with Assad’s other ally Iran, as Syria’s undisputed foreign power brokers.

Russia and Turkey have hammered out a fragile truce for the northwest, the only other part of Syria still beyond Assad’s grip. Both predicted they would avoid conflict as the area where they face each other is now set to spread across the breadth of the country.

“There are many rumors at the moment. However, especially through the embassy and with the positive approach of Russia in Kobani, it appears there won’t be any issues,” Erdogan said when asked about the prospect of confrontation with Russia. Kobani, on the Turkish border, is one of the first Kurdish-held cities where reports emerged of possible government deployment.

Kremlin spokesman Dmitry Peskov dismissed the suggestion that Russia could clash with Turkish forces. “We wouldn’t even like to think of that scenario,” he said.

ALARM

The Turkish assault has drawn widespread international criticism and alarm that it could allow Islamic State fighters in Syria to escape Kurdish-run prisons and regroup.

Ankara says it aims to neutralize the Kurdish YPG militia – the leading component of the SDF – which it views as a terrorist group because of its links to Kurdish separatists in Turkey.

U.S. Defense Secretary Mike Esper indicated on Sunday that one factor behind the U.S. pullout was that the Kurds aimed to strike a deal with Russia and Syria. Hours later, the Kurdish-led administration said it had made precisely such a deal.

Turkey says it aims to form a “safe zone” in Syria to settle many of the 3.6 million Syrian refugees it is hosting. Erdogan said on Sunday that the operation would extend from Kobani in the west to Hasaka in the east.

Turkey’s European allies have criticized the incursion, threatening to impose sanctions. Erdogan says Turkey will send Syrian refugees to Europe if the EU does not back the offensive.

The fighting has raised Western concerns that the Kurds would be unable to keep thousands of Islamic State fighters in jail and tens of thousands of their family members in camps.

The region’s Kurdish-led administration said 785 Islamic State-affiliated foreigners escaped a camp at Ain Issa over the weekend. The British-based war monitor Syrian Observatory for Human Rights, citing sources in the camp, said the number who escaped was smaller, around 100.

Trump, providing no evidence, tweeted on Monday that the Kurds might be releasing Islamic State prisoners deliberately to lure U.S. troops back. Escaped fighters were “easily recaptured by Turkey or European Nations from where many came, but they should move quickly,” Trump said.

(This story restores dropped word “forces” in headline)

(Writing by Tuvan Gumrukcu, Dominic Evans and Peter Graff; Editing by Mark Heinrich)

Tens of thousands of Hong Kong protesters plead for U.S. help

By John Ruwitch and Jessie Pang

HONG KONG (Reuters) – Tens of thousands of mostly young pro-democracy activists rallied in Hong Kong on Monday in the first legal protest since the introduction of colonial-era emergency laws and pleaded for help from the United States.

They chanted “Fight for Freedom, Fight for Hong Kong” as they gathered peacefully near central government offices in the Admiralty district of the Chinese-ruled city only hours after police said violent protests had escalated to a “life-threatening level”.

A small bomb exploded and a policeman was stabbed on Sunday night, the latest violence in four months of unrest in which police have responded to petrol bombs and rocks with tear gas, rubber bullets, water cannon and sometimes live rounds.

Emergency laws introduced on Oct. 5 banning face masks at rallies and carrying a maximum penalty of one year in jail sparked some of the worst violence since the unrest started.

On Monday night, many protesters wore face masks in defiance of the ban.

Speakers urged the United States to pass a Hong Kong human rights act to ensure democracy for the former British colony, which returned to Chinese rule in 1997.

“Make Hong Kong Great Again”, read one poster. Some protesters waved the U.S. flag and carried “Uncle Sam” recruitment posters reading “Fight for Freedom, Stand with HK”.

“All of the Hong Kong people feel hopeless and the government hasn’t listened to our voices so we need the USA to help us,” said protester Edward Fong, 28.

The protesters are angry at what they see as Beijing’s tightening grip on the city which was guaranteed 50 years of freedoms under the “one country, two systems” formula under which it returned to China. Beijing rejects the charge and accuses Western countries, especially the United States and Britain, of stirring up trouble.

The unrest poses the biggest popular challenge to Chinese President Xi Jinping since he came to power in 2012. He warned that any attempt to divide China would be crushed.

“Anyone attempting to split China in any part of the country will end in crushed bodies and shattered bones,” Xi said in a meeting on Sunday with leaders in Nepal, where he was visiting, according to China’s state broadcaster CCTV.

‘THEY ARE RIOTERS, CRIMINALS’

In contrast to Monday night’s peaceful protest, rallies descended into chaos on Sunday with running skirmishes between protesters and police in shopping malls and on the streets.

Black-clad activists threw 20 petrol bombs at one police station, while others trashed shops and metro stations.

A crude explosive device, which police said was similar to those used in “terrorist attacks”, was remotely detonated as a police car drove past and officers were clearing roadblocks on Sunday night.

A police officer also had his neck slashed by a protester.

“Violence against police has reached a life-threatening level,” said Deputy Commissioner of Police Tang Ping-keung.

“They are not protesters, they are rioters and criminals. Whatever cause they are fighting for it never justifies such violence.”

Protests have attracted millions of people but have gradually become smaller in recent weeks. Yet violence by hardcore activists has risen, prompting debate over tactics. But they say they remained united.

“Violence is always undesirable, but in the case of Hong Kong, we have no other option,” said regular protester Jackson Chan, 21.

“In June, 2 million took to the street and demonstrated peacefully, yet the government showed a complete disregard to the public opinion… Escalation of violence is inevitable,” Chan said.

On Monday, speakers called on U.S. senators to vote for the Hong Kong Human Rights and Democracy Act of 2019, saying it would be their “most powerful weapon”.

The bill supports human rights in Hong Kong with measures under consideration such as annual reviews of its special economic status and sanctions on those who undermine its autonomy. The text will not be finalised until it passes both houses of Congress and is signed by the president.

“We are exhausted and scared, many of us have been detained and tortured… We believe international help will come one day,” said one speaker.

Police have fired thousands of rounds of tear gas and rubber bullets at brick- and petrol bomb-throwing protesters and arrested more than 2,300 people since June, many teenagers. Two people have been shot and wounded.

Hong Kong leader Carrie Lam is due to deliver her annual Policy Address on Wednesday amid pressure to restore confidence in the government.

Hong Kong is facing its first recession in a decade because of the protests, with tourism and retail hardest hit.

(Additional reporting by Anne Marie Roantree and Donny Kwok in Hong Kong; Writing by Michael Perry; Editing by Robert Birsel and Nick Macfie)

U.S. company supplying tear gas to Hong Kong police faces mounting criticism

By Rajesh Kumar Singh

CHICAGO (Reuters) – Another U.S. senator has joined a chorus against Pennsylvania-based NonLethal Technologies Inc for selling riot gear to Hong Kong that is being used against pro-democracy protesters.

The privately held company, which makes and exports a wide range of riot and crowd control equipment for military and law enforcement agencies, has been in the spotlight ever since it was discovered that Hong Kong police are employing its tear gas canisters to disperse anti-government demonstrations.

In one photo that has been widely shared on social media, NonLethal’s name is stamped on the casing of a spent tear gas canister.

The use of U.S.-made gear to quell protests has prompted several lawmakers to call for halting and even banning tear gas exports to the city. In July, Senator Ted Cruz, a Republican, proposed in a tweet that the United States consider banning exports of tear gas to Hong Kong if the attacks on the protesters were not stopped.

Similarly, in August, U.S. Representatives Chris Smith, a Republican, and James McGovern, a Democrat, wrote to Secretary of State Mike Pompeo and Secretary of Commerce Wilber Ross, asking them to suspend future sales of crowd and riot control equipment to Hong Kong police.

They followed up their letter with a bipartisan bill in the House of Representatives last month, which seeks to prohibit commercial exports of certain nonlethal crowd control items and defense articles and services to the city. If passed, the ban would take effect within 30 days.

U.S. Senator Rick Scott, a Florida Republican, on Thursday became the latest to raise concerns about the exports.

In a letter to NonLethal’s president shared on Twitter, Scott said the sales were equivalent to supporting efforts of the Chinese president to “harm ordinary citizens and peaceful protesters.” He urged the manufacturer of tear gas to “put human rights above profits.”

The protests have plunged the city, an Asian financial hub, into its worst crisis since it returned to Chinese rule in 1997, posing the biggest popular challenge to Chinese President Xi Jinping since he came to power in 2012.

What began as opposition to a now-withdrawn extradition bill has evolved into a pro-democracy movement fanned by fears that China is stifling Hong Kong’s freedoms, guaranteed under a “one country, two systems” formula introduced in 1997.

China denies the accusations and says foreign countries, including Britain and the United States, are fomenting unrest.

In his Oct. 10 letter, Scott said during a recent trip to the city he saw firsthand how the company’s products were used in a “dangerous and malicious manner to intentionally harm protesters.”

He requested to meet with the company’s president, Scott Oberdick, to discuss his concerns.

Oberdick, however, told Reuters on Friday that he had not seen Scott’s letter. When asked about the criticism his company has been facing for selling tear gas to Hong Kong police, Oberdick hung up the phone.

NonLethal does not share its financial details with public. However, in 2017, it was listed as one of the top 10 companies in the world producing riot-control systems, according to London-based market research firm Visiongain.

According to its website, the company provides “a full range of less lethal grenades and less lethal ammunition to allow the most effective level of force to be used for various situations.” However, for overseas sales, most of its products require an export license from the United States Department of Commerce.

An online petition, urging the White House to suspend any export application of crowd control equipment to Hong Kong, has garnered more than 110,000 signatures.

Amnesty International has also called on countries including the United States to halt all transfers of less lethal “crowd control” equipment – including water cannon vehicles, tear gas, pepper spray, rubber bullets, projectile launchers and parts and components – to Hong Kong.

(Reporting by Rajesh Kumar Singh in Chicago; Editing by Matthew Lewis)

U.S. to deploy large number of forces to Saudi Arabia

By Phil Stewart and Idrees Ali

WASHINGTON (Reuters) – The United States announced on Friday a new, large deployment of forces to Saudi Arabia to help bolster the kingdom’s defenses following the Sept. 14 attack on its oil facilities, which Washington and Riyadh have blamed on Iran.

The planned deployment, which was first reported by Reuters, will include fighter squadrons, one air expeditionary wing and air defense personnel, the Pentagon said.

The Pentagon said it was sending two additional Patriot batteries and one Terminal High Altitude Area Defense system (THAAD).

“Taken together with other deployments, this constitutes an additional 3,000 forces that have been extended or authorized within the last month,” Pentagon spokesman Jonathan Hoffman said in a statement.

It was unclear whether some of the newly announced troops might replace other American forces expected to depart the region in the coming weeks or months.

The Pentagon has yet to announce, for example, whether it will replace the aircraft carrier USS Abraham Lincoln and its strike group when it eventually wraps up its deployment to the Middle East.

The deployment is part of a series of what the United States has described as defensive moves following the attack on Saudi Arabia’s oil facilities last month, which rattled global energy markets and exposed major gaps in Saudi Arabia’s air defenses.

Iran has responded to previous U.S. troop deployments this year with apprehension. It denies responsibility for the attack on Saudi Arabia as well as attacks on oil tankers earlier this year.

(Reporting by Phil Stewart and Idrees Ali; Editing by Chris Reese and Tom Brown)

GM appeals directly to employees as strike losses pile up

By Ben Klayman and David Shepardson

DETROIT/WASHINGTON (Reuters) – General Motors Co took the unusual step of appealing directly to employees in a blog post on Friday that laid out the terms of the automaker’s latest offer aimed at ending a month-long strike.

While emphasizing GM’s commitment to the collective bargaining process, the letter, signed by Gerald Johnson, executive vice-president for global manufacturing, circumvents United Auto Workers (UAW) leadership and points to frustration at a lack of progress on ending a conflict that has already cost the company more than $1 billion.

The UAW strike began on Sept. 16, with the union’s 48,000 members seeking higher pay, greater job security, a bigger share of profits and protection of healthcare benefits. Credit Suisse estimated the loss could hit about $1.5 billion.

As part of its revised offer, GM boosted the amount it plans to invest in the United States to about $9 billion from its previous offer of $7 billion, a source familiar with the offer said.

Of the new total, $7.7 billion would be invested directly in GM plants, with the rest going to joint ventures including a potential battery plant near the Lordstown, Ohio, factory that has been idled, the source said.

GM stock was up 2.2 percent in midday trading.

The company said the offer also includes increased compensation through wages and one-time payments, preserving industry-leading healthcare benefits without increasing workers’ costs, enhanced profit sharing with unlimited upside and a higher ratification bonus than the $8,000 previously offered.

For temporary workers, GM said its offer would create a path to permanent employment and include a ratification bonus.

“The strike has been hard on you, your families, our communities, the company, our suppliers and dealers,” GM’s letter read, saying the latest offer increased compensation and promised a path to full-time jobs for temporary workers.

“We have advised the union that it’s critical that we get back to producing quality vehicles for our customers. … Our offer builds on the winning formula we have all benefited from over the past several years.”

A UAW spokesman declined to comment on the new offer.

In a Thursday letter to UAW leaders, GM urged the union to agree to around-the-clock negotiations, while the union insisted in its own letter on dealing with five specific issues first before it responded to the broader proposal made to union negotiators Monday.

GM Chief Executive Officer Mary Barra met Wednesday with UAW President Gary Jones and lead GM negotiator Terry Dittes to urge a faster response by the union to the company’s last offer.

One of the five issues the committees are discussing is the fate of four U.S. factories that GM has indicated could close; another is future technological changes to production, according to the UAW letter. Dittes said he did not know when the issues would be resolved, suggesting a final deal may not be close.

UAW workers are concerned that as GM shifts to more electric vehicles it will require fewer workers, and that workers in battery production plants may earn less than those at existing transmission plants.

Reuters previously reported GM told the UAW it could build a new battery plant near the now-shuttered Lordstown factory, and assemble an electric truck at its Detroit Hamtramck plant.

Moody’s said in a Friday report that GM must maintain its flexibility under any new deal to build electric and self-driving vehicles without its fixed costs rising further. It said GM’s annual costs in wages and benefits are more than $1 billion higher than foreign automakers operating U.S. plants.

“It is critical for GM that any new UAW contract not allow an even wider differential,” Moody’s said.

“We expect that the long-term strategic benefits of obtaining a UAW contract … will outweigh the costs of enduring a protracted strike that might last into November,” Moody’s added.

On Sunday, the UAW said the talks took a “turn for the worse” and on Tuesday the union urged GM to boost U.S. vehicle production. Union workers are angry about production of trucks and sport-utility vehicles in Mexico.

The UAW’s membership is largely in the Midwest, in states that could be critical to both sides in the 2020 presidential election, so the strike has drawn the attention of Republican President Donald Trump, his rivals seeking the Democratic nomination, and U.S. lawmakers. They have urged GM to build more vehicles in the United States and shift work from Mexico.

(Additional reporting by Ankit Ajmera in Bengaluru; editing by Patrick Graham, Saumyadeb Chakrabarty and David Gregorio)

California governor says broad power shutdown to prevent fires ‘unacceptable’

By Alex Dobuzinskis and Andrew Hay

LOS ANGELES (Reuters) – California Governor Gavin Newsom called a widespread electricity shutdown triggered by a power company to prevent wildfires “unacceptable”, as gale-force winds and dry weather posed a critical fire threat to the north of the state.

Pacific Gas and Electric Co (PG&E) has imposed unprecedented shut-offs that left more than 730,000 homes and workplaces in northern California without power on the second day of planned outages.

But as of late Thursday, power was restored to more than half of those who had lost it, PG&E officials said in a release. About 312,000 electric customers remained without power as of 10 p.m. officials said.

Some of the state’s most devastating wildfires were sparked in recent years by damage to electrical transmission lines from high winds, with flames then spreading through tinder-dry vegetation to populated areas.

Newsom, a Democrat, told a news conference on Thursday he did not fault the utility for shutting off electricity as a safety measure, but he described the outage as too broad and said it resulted from years of mismanagement by the utility.

“We’re seeing a scale and scope of something that no state in the 21st century should experience,” Newsom said. “What’s happened is unacceptable and it’s happened because of neglect.”

The remarks were the most pointed comments Newsom has directed at PG&E since the outages began early on Wednesday. Among the questions he raised was whether the utility was too large, with a service area covering more than 40 counties.

He also faulted PG&E for putting what he called “greed” ahead of investments in its infrastructure to protect the electrical grid from dangerous winds.

PG&E filed for bankruptcy in January 2019, citing potential civil liabilities in excess of $30 billion from major wildfires linked to its transmission wires and other equipment.

PG&E Chief Executive Bill Johnson acknowledged that his company had left “millions of people” without a “fundamental service” they expect and deserve.

“This is not how we want to serve you,” he told a media briefing in San Francisco, adding that PG&E “was not adequately prepared” for such a large power outage.

‘THIRD WORLD COUNTRY’

As high winds moved south, a similar cut-off was under way by neighboring utility Southern California Edison, which warned that more than 173,000 customers could lose power in parts of eight counties, including Los Angeles, San Bernardino and Ventura.

Residents, business owners and even public officials expressed frustration about the blackouts, which the utility began on a much smaller scale last year during times of high fire risk.

“Northern California is not a Third World country,” the San Jose Mercury Statesman said in an editorial. “It’s unacceptable that the region is being forced to endure this level of disruption as the long-term strategy for dealing with the threat of wildfires.”

PG&E, California’s biggest investor-owned utility, said power would be restored to areas once up to 77 mph (124 kph) winds die down and 2,500 miles (4,025 km) of transmission lines could be inspected.

“We faced a choice between hardship or safety, and we chose safety,” Michael Lewis, PG&E’s senior vice president of electric operations, said in a statement.

ECONOMIC COST

The National Weather Service said the hot gusty winds that usually hit northern California in October, sometimes called the “Diablo Winds”, would continue into Friday morning.

Much of northern California, from San Francisco to the Oregon border, remains under a state “red flag” fire alert, although no major blazes have been reported.

“As soon as the weather passes, PG&E will begin safety inspections with 6,300 field personnel and 45 helicopters standing at the ready once we get the all clear,” the utility said in a tweet on Thursday.

Oakland supermarkets brought in refrigeration trucks to save food.

Michael Wara of the Stanford Woods Institute for the Environment estimated the economic cost of the shutdown could reach $2.5 billion, with small businesses hit hardest as they typically lacked back-up generators.

In Santa Rosa, a California wine country town where entire subdivisions were destroyed by a deadly 2017 wildfire, restaurateurs Mark and Terri Stark said they had to close one of their six restaurants after it lost power.

“This is preventative medicine and medicine sometimes is not good to take,” said Mark Stark, 60, who lost one restaurant in the 2017 blaze. The fires in that region killed 46 people.

“Those fires and what they caused are still very real for people in our ‘hood,” he said.

(Reporting By Andrew Hay in TAOS, N.M. and Alex Dobuzinskis in Los Angleles; additional reporting by Scott Disavino in New York and Rich McKay in Atlanta; Editing by Bill Tarrant, Cynthia Osterman, Tom Hogue and Richard Pullin)

With U.S. tariffs looming, China drums up hope for a partial trade deal

By Yawen Chen and Michael Martina

BEIJING (Reuters) – A Chinese state newspaper said on Friday that a “partial” trade deal would benefit China and the United States, and Washington should take the offer on the table, reflecting Beijing’s aim of cooling the row before more U.S. tariffs kick in.

Both sides have slapped duties on hundreds of billions of dollars of goods during the 15-month trade dispute, which has shaken financial markets and uprooted global supply chains as companies move production elsewhere.

As top U.S. and Chinese negotiators wrapped up a first day of trade talks in more than two months on Thursday, business groups expressed optimism the two sides might be able to ease the conflict and delay a U.S. tariff hike scheduled for next week.

China’s top trade negotiator, Vice Premier Liu He, said on Thursday that China is willing to reach agreement with the United States on matters that both sides care about so as to prevent friction from leading to any further escalation.

He stressed that “the Chinese side came with great sincerity”.

Adding to that, the official China Daily newspaper said in an editorial in English: “A partial deal is a more feasible objective”.

“Not only would it be of tangible benefit by breaking the impasse, but it would also create badly needed breathing space for both sides to reflect on the bigger picture,” the paper said.

Hours ahead of an expected meeting between China’s Liu and U.S. President Donald Trump at the White House, China’s securities regulator unveiled a firm timetable for scrapping foreign ownership limits in futures, securities and mutual fund companies for the first time.

China previously said it would further open up its financial sector on its own terms and at its own pace, but the timing of Friday’s announcement suggests Beijing is keen to show progress in its plan to increase foreigners’ access to the sector, which is among a host of demands from Washington in the trade talks.

Chinese officials are offering to increase annual purchases of U.S. agricultural products as the two countries seek to resolve their trade dispute, the Financial Times reported on Wednesday, citing unidentified sources.

The U.S. Department of Agriculture (USDA) on Thursday confirmed net sales of 142,172 tonnes of U.S. pork to China in the week ended Oct. 3, the largest weekly sale to the world’s top pork market on record.

A U.S.-China currency agreement is also being floated as a symbol of progress in talks between the world’s two largest economies, although that would largely repeat past pledges by China, currency experts say, and will not change the dollar-yuan relationship that has been a thorn in the side of Trump.

PESSIMISM ‘STILL JUSTIFIED’

Analysts have noted China sent a larger-than-normal delegation of senior Chinese officials to Washington, with commerce minister Zhong Shan and deputy ministers on agriculture and technology also present.

The sudden optimism about a potential de-escalation is in stark contrast to much more gloomy predictions in business circles just days ago on the heels of a series of threatened crackdowns on China by the Trump administration.

On Tuesday, the U.S. government widened its trade blacklist to include Chinese public security bureaus and some of China’s top artificial intelligence startups, punishing Beijing for its treatment of Muslim minorities.

Surprised by the move, Chinese government officials told Reuters on the eve of talks that they had lowered expectations for significant progress.

Friday’s China Daily editorial also warned that “pessimism is still justified”, noting that the talks would finish just three days before Washington is due to raise tariffs on $250 billion worth of Chinese imports.

The negotiations were the “only window” to end deteriorating relations, it added.

Trump, said on Thursday that the talks had so far gone very well. But he has previously insisted he would not be satisfied with a partial deal to resolve his two-year effort to change China’s trade, intellectual property and industrial policy practices, which he argues cost millions of U.S. jobs.

There have also been reports that the Trump administration is readying additional measures aimed at China, with unknown consequences for trade negotiations.

Such wildly shifting expectations have been a persistent feature of the trade war, and observers remained cautious over what might emerge from this week’s talks.

“China wants peace, but I don’t think China will give more,” one Chinese trade expert said on condition of anonymity.

(Reporting by Yawen Chen and Michael Martina; Editing by Simon Cameron-Moore & Kim Coghill)