Exclusive: Trump administration weighing broad sanctions on North Korea – U.S. official

FILE PHOTO: North Korean leader Kim Jong Un provides field guidance at the construction site of Ryomyong Street in this undated picture provided by KCNA in Pyongyang on March 16, 2017. KCNA/via Reuters

By Matt Spetalnick and David Brunnstrom

WASHINGTON (Reuters) – The Trump administration is considering sweeping sanctions aimed at cutting North Korea off from the global financial system as part of a broad review of measures to counter Pyongyang’s nuclear and missile threat, a senior U.S. official said on Monday.

The sanctions would be part of a multi-pronged approach of increased economic and diplomatic pressure – especially on Chinese banks and firms that do the most business with North Korea – plus beefed-up defenses by the United States and its South Korean and Japanese allies, according to the administration official familiar with the deliberations.

While the long-standing option of pre-emptive military strikes against North Korea is not off the table – as reflected by U.S. Secretary of State Rex Tillerson’s warning to Pyongyang during his Asia tour last week – the new administration is giving priority for now to less-risky options.

The policy recommendations being assembled by President Donald Trump’s national security adviser, H.R. McMaster, are expected to reach the president’s desk within weeks, possibly before a summit with Chinese President Xi Jinping in early April, the official said, speaking on condition of anonymity. North Korea is expected to top the agenda at that meeting.

It is not clear how quickly Trump will decide on a course of action, which could be delayed by the slow pace at which the administration is filling key national security jobs.

The White House declined comment.

Trump met McMaster on Saturday to discuss North Korea and said afterward that the country’s leader, Kim Jong Un, was “acting very, very badly.”

The president spoke hours after North Korea boasted of a successful rocket-engine test, which officials and experts think is part of a program aimed at building an intercontinental ballistic missile capable of hitting the United States.

‘SECONDARY SANCTIONS’

The administration source said U.S. officials, including Tillerson, had privately warned China about broader “secondary sanctions” that would target banks and other companies that do business with North Korea, most of which are Chinese.

The move under consideration would mark an escalation of Trump’s pressure on China to do more to contain North Korea. It was not clear how Chinese officials responded to those warnings but Beijing has made clear its strong opposition to such moves.

In Beijing, Chinese Foreign Ministry spokeswoman Hua Chunying said the situation on the Korean peninsula was at a crossroads and there were two prospects.

One, she said, was that the relevant parties could continue to “escalate toward conflict and potential war”.

“The other choice is that all sides can cool down and jointly pull the Korean nuclear issue back to a path of political and diplomatic resolution,” Hua told a daily news briefing on Tuesday.

China would strictly and comprehensively implement its duties under the U.N. Security Council resolutions, which meant implementing sanctions but also making efforts to get back to talks, she added.

The objective of the U.S. move being considered would be to tighten the screws in the same way that the widening of sanctions – to encompass foreign firms dealing with Iran – was used to pressure Tehran to open negotiations with the West on its suspected nuclear weapons program. That effort ultimately led to a 2015 deal to restrict Iran’s nuclear program in return for sanctions relief.

For such measures to have any chance to influence the behavior of North Korea, which is already under heavy sanctions, Washington must secure full international cooperation – especially from China, which has shown little appetite for putting such a squeeze on its neighbor.

Analysts also have questioned whether such sanctions would be as effective on North Korea as they were on a major oil producer such as Iran, given the isolated nation’s limited links to the world financial system.

North Korea has relied heavily on illicit trade done via small Chinese banks. So, to be applied successfully, the new measures would have to threaten to bar those banks from the international financial system.

Also under consideration are expanded efforts to seize assets of Kim and his family outside North Korea, the official said.

MILITARY OPTIONS

The military dimension of the review includes a strengthened U.S. presence in the region and deployment of advanced missile defenses, initially in South Korea and possibly in Japan. The U.S. military has begun to install a Terminal High Altitude Area Defense, or THAAD, system in South Korea, despite Chinese opposition.

Washington is increasingly concerned, however, that the winner of South Korea’s May 9 presidential election might backtrack on the deployment and be less supportive of tougher sanctions.

Tillerson warned on Friday that Washington had not ruled out military action if the threat from North Korea becomes unacceptable.

For now, U.S. officials consider pre-emptive strikes too risky, given the danger of igniting a regional war and causing massive casualties in Japan and South Korea and among tens of thousands of U.S. troops based in both allied countries.

Another U.S. government source said Trump could also opt to escalate cyber attacks and other covert action aimed at undermining North Korea’s leadership.

“These options are not done as stand-alones,” the first U.S. official said. “It’s going to be some form of ‘all of the above,’ probably excluding military action.”

Trump is known to have little patience for foreign policy details, but officials say he seems to have heeded a warning from his predecessor, Barack Obama, that North Korea would be the most urgent international issue he would face.

In his North Korea briefings, Trump has asked repeatedly how many nuclear warheads and missiles Pyongyang has, at the same time as demanding to know how much South Korea and Japan are paying for their own defense, one U.S. official said.

(Reporting by Matt Spetalnick and David Brunnstrom; Additional reporting by John Walcott, and Michael Martina in Beijing; Editing by Kieran Murray, Peter Cooney and Nick Macfie)

U.S. restricts electronics from 10 airports, mainly in Middle East

A passenger walks to his gate at Cairo International Airport. REUTERS/Amr Abdallah Dalsh

By David Shepardson

WASHINGTON (Reuters) – The Trump administration on Tuesday imposed restrictions on carry-on electronic devices on planes coming to the United States from 10 airports in Muslim-majority countries in the Middle East and North Africa in response to unspecified terrorism threats.

The Department of Homeland Security said passengers traveling from those airports could not bring devices larger than a cellphone, such as tablets, portable DVD players, laptops and cameras, into the main cabin. Instead, they must be in checked baggage.

The new restrictions were prompted by reports that militant groups want to smuggle explosive devices in electronic gadgets, officials told reporters on a conference call on Monday.

They did not provide further details on the threat.

The airports are in Cairo; Istanbul; Kuwait City; Doha, Qatar; Casablanca, Morocco; Amman, Jordan; Riyadh and Jeddah, Saudi Arabia; and Dubai and Abu Dhabi in United Arab Emirates.

Officials said the decision had nothing to do with President Donald Trump’s efforts to impose a travel ban on six majority-Muslim nations. A DHS spokeswoman said the government “did not target specific nations. We relied upon evaluated intelligence to determine which airports were affected.”

On March 6, Trump signed a revised executive order barring citizens from Iran, Libya, Syria, Somalia, Sudan and Yemen from traveling to the United States for 90 days. Two federal judges have halted parts of the ban, saying it discriminates against Muslims. Trump has vowed to appeal up to the Supreme Court if necessary.

The airports affected by the electronics rules are served by nine airlines that fly directly from those cities to the United States about 50 times a day, senior government officials said.

The carriers – Royal Jordanian Airlines, Egypt Air, Turkish Airlines, Saudi Arabian Airlines, Kuwait Airways [KA.UL], Royal Air Maroc, Qatar Airways, Emirates and Etihad Airways – have until Friday to comply with the new policy, which took effect early on Tuesday and will be in place indefinitely.

However, an Emirates spokeswoman who confirmed the Dubai-based airline was affected by the restrictions said the new security directive would last until Oct. 14.

The policy does not affect any American carriers because none fly directly to the United States from the airports, officials said.

Officials did not explain why the restrictions only apply to travelers arriving in the United States and not for those same flights when they leave the United States.

The rules do apply to U.S. citizens traveling on those flights, but not to crew members on those foreign carriers. Homeland Security will allow passengers to use larger approved medical devices.

The agency said the procedures would “remain in place until the threat changes” and did not rule out expanding them to other airports.

DHS said in a statement it “seeks to balance risk with impacts to the traveling public and has determined that cellphones and smartphones will be allowed in accessible property at this time.”

The government said it is “concerned about terrorists’ ongoing interest in targeting commercial aviation, including transportation hubs over the past two years.”

Reuters reported Monday that the move had been under consideration since the U.S. government learned of a threat several weeks ago.

U.S. officials have told Reuters the information gleaned from a U.S. commando raid in January in Yemen that targeted al Qaeda in the Arabian Peninsula included bombmaking techniques.

AQAP, based in Yemen, has plotted to down U.S. airliners and claimed responsibility for 2015 attack on the office of Charlie Hebdo magazine in Paris.

The group claimed responsibility for a Dec. 25, 2009, failed attempt by a Nigerian Islamist to down an airliner over Detroit. The device, hidden in the underwear of the man, Umar Farouk Abdulmutallab, failed to detonate.

In 2010, security officials in Britain and Dubai intercepted parcel bombs sent from Yemen to the United States.

The Homeland Security Department stepped up security of U.S.-bound flights in July 2014, requiring tougher screening of mobile phones and other electronic devices and requiring them to be powered up before passengers could board flights to the United States.

(Reporting by David Shepardson; Additional reporting by Yara Bayoumy, Mark Hosenball and Phil Stewart in Washington; Alexander Cornwell in Dubai and Victoria Bryan in Berlin; Editing by Lisa Shumaker and Lisa Von Ahn)

Republicans revamp U.S. health bill, boost benefits to older Americans

Speaker of the House Paul Ryan (R-WI) speaks to the media on Capitol Hill in Washington, U.S., March 16, 2017. REUTERS/Joshua Roberts

By Susan Cornwell and Valerie Volcovici

WASHINGTON (Reuters) – U.S. House Republicans are working on changes to their healthcare overhaul bill to provide more generous tax credits for older Americans and add a work requirement for the Medicaid program for the poor, House Speaker Paul Ryan said on Sunday.

Ryan said Republican leaders still planned to bring the healthcare bill to a vote on the House of Representatives floor on Thursday. Speaking on the “Fox News Sunday” television program, he said leaders were working to address concerns that had been raised by rank-and-file Republicans to the legislation.

Republicans remain deeply divided over the healthcare overhaul, which is President Donald Trump’s first major legislative initiative. It aims to fulfill his campaign pledge to repeal and replace the Affordable Care Act, popularly known as Obamacare, the signature healthcare program of his Democratic predecessor, Barack Obama.

Democrats say the Republican plan could throw millions off health insurance and hurt the elderly, poor and working families while giving tax cuts to the rich.

“We think we should be offering even more assistance than the bill currently does” for lower-income people age 50 to 64, Ryan, the top Republican in Congress, said of the tax credits for health insurance that are proposed in the legislation.

Ryan also said Republicans were working on changes that would allow federal block grants to states for Medicaid and permit states to impose a work requirement for able-bodied Medicaid recipients.

Trump told reporters in a brief conversation aboard Air Force One that he had meetings about healthcare reform in Florida at the weekend and that the effort to sell the proposal was going well.

He has been wooing lawmakers to vote for the bill and won the backing of a dozen conservative lawmakers on Friday after an Oval Office meeting in which the president endorsed a work requirement and block-grant option for Medicaid.

Trump is set to meet Ezekiel Emanuel, a health policy special adviser under Obama who helped shape the Affordable Care Acton, at the White House on Monday, along with Ryan and Health and Human Services Secretary Tom Price.

Block grants would give states a set amount of money to cover people on the Medicaid program and provide flexibility in spending decisions. However, there is no guarantee funding would keep up with future demands.

“TRYING TO FIX BILL”

While Ryan said he felt “very good” about the health bill’s prospects in the House, a leading conservative lawmaker, Representative Mark Meadows, told the C-Span “Newsmakers” program that there were currently 40 Republican “no” votes in the House. Republicans hold a majority in the chamber but cannot afford to have more than 21 defections for the measure to pass.

Meadows and two other Republican opponents of the bill, Senators Mike Lee of Utah and Ted Cruz of Texas, met at Trump’s Mar-a-Lago estate in Florida on Saturday “negotiating with the president’s team, trying to fix this bill,” Cruz told CBS’ “Face the Nation.”

North Carolina Republican Meadows said the changes being considered for the Medicaid program would not go far enough if they left it up to states to decide whether to put in place a work requirement.

Price acknowledged the tough negotiations, telling ABC’s “This Week”: “It’s a fine needle that needs to be thread, there’s no doubt about it.”

The healthcare bill would face significant challenges in the Senate even if it were to pass the House.

Senator Tom Cotton, a conservative Arkansas Republican, said the bill would not reduce premiums for people on the private insurance market. “It’s fixable, but it’s going to take a lot of work,” Cotton said on CNN’s “State of the Union.”

Moderate Republicans have also expressed concerns about the bill, and their worries are often not the same as that of conservatives.

Speaking on NBC’s “Meet the Press,” Republican Senator Susan Collins of Maine worried the bill would harm older Americans, and shift Medicaid costs to states – something critics say a block-grant approach would only make worse.

Collins said coverage issues must also be dealt with, citing a report from the Congressional Budget Office that said 14 million people would lose health coverage under the House bill over the next year and 24 million over the next decade.

Affordability has been one of the bigger concerns that insurers and hospital groups have raised about the legislation. To the extent that a change in tax credits makes healthcare more affordable for some people, insurers and hospitals could stand to benefit.

The BlueCross BlueShield Association emphasized the need for the replacement to be affordable when the draft of the healthcare bill was released earlier this month. The association represents BCBS insurers that cover the vast majority of the roughly 10 million people enrolled in 2017 Obamacare plans.

North Korea engine test may be prelude to partial ICBM flight

North Korean leader Kim Jong Un watched the ground jet test of a Korean-style high-thrust engine newly developed by the Academy of the National Defence Science in this undated picture provided by KCNA in Pyongyang on March 19, 2017.

By Ju-min Park

SEOUL (Reuters) – North Korea has likely mastered the technology to power the different stages of an intercontinental ballistic missile (ICBM) and may show it off soon, analysts say, but it is likely still a long way from being able to hit the mainland United States.

North Korean state media announced its latest rocket-engine test on Sunday, saying it would help North Korea achieve world-class satellite-launch capability, indicating a new type of rocket engine that could be compatible with an ICBM.

The test showed “meaningful” progress, a spokesman for South Korea’s Defence Ministry said on Monday, with the firing of a main engine and four auxiliary engines as part of the development of a new rocket booster.

Pentagon spokesman Captain Jeff Davis declined to give a specific assessment of the test but said it was “consistent with the pattern we’ve seen by North Korea to continue to develop their ballistic missile program.”

The North Korean announcement came as U.S. Secretary of State Rex Tillerson was in Beijing at the end of his first visit to Asia for talks dominated by concern about North Korea’s nuclear and missile programs.

South Korean Defense Ministry spokesman Lee Jin-woo said the test showed progress in engine function, but added that further analysis was needed to show the exact thrust produced and possible uses for the engine.

North Korea’s state media released pictures of the high-thrust engine test overseen by leader Kim Jong Un, and said he had called it “a new birth” of the country’s rocket industry.

Experts say space rockets and long-range missiles involve fundamentally identical technologies, but with different configurations for trajectory and velocity for the stages.

MOTOR FOR ICBM?

Kim Dong-yub of Seoul’s Institute for Far Eastern Studies said he believed North Korea had carried out “a comprehensive test for the first-stage rocket for an ICBM.”

“It appears that North Korea has worked out much of its development of the first-stage rocket booster,” he said.

Joshua Pollack, of Washington’s Nonproliferation Review, said four steering nozzles had also been seen in older, long-range rockets North Korea used to launch objects into space in 2012 and 2016. But he said the main engine was quite different from anything seen previously and appeared roughly the right diameter to serve as either the first or second stage of an ICBM.

U.S. aerospace expert John Schilling, a contributor to the 38 North North Korea monitoring website, said the motor appeared too big for any ICBM North Korea has been known to be working on, but would be a good fit for the second stage of a new space rocket it is planning – or for a yet-unknown ICBM design.

Kim said North Korea had not yet mastered the re-entry technology needed for an ICBM, so still had work to do before it was able to hit the United States. It might though soon be able to demonstrate that it had perfected an ICBM system’s booster rocket stage.

“What could be next is they would make a new type of ICBM with this new engine system and launch it, but not the entire stages, but to make only the first stage, fly about 400 km and drop. They are not going to show it all at once.”

A U.S. administration official declined to give a specific technical assessment of the test but said it showed North Korea was “150 percent” committed to its weapons programs.

“This is one more indication that they are going to act in a way that is counterproductive,” he said.

North Korea has conducted five nuclear tests and a series of missile launches in defiance of U.N. resolutions, and experts and Western officials believe it is working to develop nuclear-tipped missiles that can reach the United States.

North Korean leader Kim Jong Un said this year the country was close to test-launching an ICBM, prompting U.S. President Donald Trump to tweet: “It won’t happen!”

Last week, Tillerson issued the Trump administration’s starkest warning yet to North Korea, saying a military response would be “on the table” if it took action to threaten South Korean and U.S. forces.

Trump told reporters on Sunday he held meetings on North Korea over the weekend and said Kim was “acting very, very badly.”

China said on Monday the situation with North Korea was at a new crossroads with two scenarios – a deterioration to war or a diplomatic solution.

“Any chance for dialogue must be seized, as long as there’s hope,” Foreign Minister Wang Yi said in Beijing.

(Additional reporting by James Pearson in Seoul and David Brunnstrom, Matt Spetalnick and Idrees Ali in Washington; Editing by Jack Kim and James Dalgleish)

New U.S.-led force to deter Russia in Poland with NATO

U.S. (R to L), Poland's flags and jack of the President of Poland are seen during the inauguration ceremony of bilateral military training between U.S. and Polish troops in Zagan, Poland,

By Robin Emmott

BRUSSELS (Reuters) – A U.S.-led battalion of more than 1,100 soldiers will be deployed in Poland from the start of April, a U.S. commander said on Monday, as the alliance sets up a new force in response to Moscow’s 2014 annexation of Crimea.

More than 900 U.S. soldiers, around 150 British personnel and some 120 Romanian troops will make up the battlegroup in northeastern Poland, one of four multinational formations across the Baltic region that Russia has condemned as an aggressive strategy on its frontiers.

“This is a mission, not a cycle of training events,” U.S. Army Lt. Colonel Steven Gventer, who heads the battlegroup, told a news conference. “The purpose is to deter aggression in the Baltics and in Poland … We are fully ready to be lethal.”

Britain, Canada and Germany are leading the other three battlegroups in Estonia, Latvia and Lithuania, which are due to be operational by June. They will have support from a series of NATO nations including France.

In total, some 4,000 NATO troops – equipped with tanks, armored vehicles, air support and hi-tech mission information rooms – will monitor for and defend against any potential Russian incursions.

Moscow, which denies having any expansionist or aggressive agenda, accuses NATO of trying to destabilize central Europe and has respond by forming four new military divisions to strengthen its western and central regions and stepping up exercises.

Seeking to avoid stationing troops permanently on Russia’s borders, the new NATO force across the Baltics and Poland can rely on a network of eight small NATO outposts in the region, regular training exercises and, in the case of attack, a much larger force of 40,000 alliance troops.

“We are not the entirety of NATO’s response,” said U.S. Army Major Paul Rothlisberger, part of the U.S.-led battalion to be based in Orzysz, 220 kilometers (137 miles) northeast of Warsaw.

The alliance is seeking to show the ex-Soviet countries in NATO that they are protected from the kind of annexation Russia orchestrated in February in 2014 in Ukraine’s Crimea.

It also wants to avoid a return to the Cold War, when the United States had some 300,000 service personnel stationed in Europe, and stick to a 1997 agreement with Moscow not to permanently station forces on the Russian border.

The plan is being implemented as Western powers try for a peace settlement in eastern Ukraine, where NATO says Russia supports separatist rebels with weapons and troops.

Russia plans to stage large-scale war games near its western borders this year, but has not said how many troops will take part.

(Reporting by Robin Emmott; Editing by Tom Heneghan)

Russian parliament backs investigation into U.S. media

MOSCOW (Reuters) – The Russian lower house of parliament, the State Duma, has approved a proposal to launch an investigation into U.S. media organizations that operate in Russia, it said in a statement posted on its web site late on Friday.

The investigation, which will be conducted by the Duma’s information policy, technologies and communications committee, will check whether CNN, the Voice of America, Radio Liberty and “other American media” are complying with Russian law.

The statement said the Duma backed the move on Friday evening after Konstantin Zatulin, an MP from the pro-Kremlin United Russia party, proposed an investigation to retaliate for what he called a “repressive” U.S. move against Russian state-funded broadcaster RT.

He said he was referring to an initiative by U.S. Senator Jeanne Shaheen, who has introduced a bill to empower the Justice Department to investigate possible violations of the Foreign Agents Registration Act by RT.

Shaheen, a Democrat, cited a U.S. intelligence agency assessment that suggested RT was part of a Russian influence campaign to help Donald Trump win the White House last year. The Kremlin and RT have strongly rejected that allegation.

Foreign media in Russia are overseen by the Russian Foreign Ministry, whose spokeswoman Maria Zakharova this week singled out Shaheen’s demarche for criticism, quipping ironically that the senator should have included a clause drawing up a list of books for burning.

The U.S. move also solicited the ire of Margarita Simonyan, RT’s editor-in-chief, who on Wednesday told the daily Izvestia it had echoes of the activities of U.S. Senator Joseph McCarthy, who oversaw a campaign to expose people he regarded as communists in the 1950s.

(Reporting by Andrew Osborn; Editing by Julia Glover)

South Dakota’s governor vetoes loosening of concealed carry gun laws

FILE PHOTO: Republican Governor Dennis Daugaard of South Dakota listens to remarks during a discussion at the National Governors Association Winter Meeting in Washington, February 23, 2014. EUTERS/Mike Theiler/File Photo

By Tom James

(Reuters) – South Dakota’s Republican Governor Dennis Daugaard on Friday vetoed a pair of bills that would have loosened restrictions on carrying concealed guns in the state, after saying current laws made sense and were adequate.

One measure would have allowed carrying concealed weapons in the state without a permit. The second proposed allowing carriers of an enhanced permit to carry concealed weapons at the state capitol.

South Dakota bars convicted felons and those convicted of some violent or drug crimes from obtaining a concealed weapons permit.

Eleven U.S. states allow gun owners to carry concealed weapons without a permit, according to the Law Center to Prevent Gun Violence, a gun-control advocacy group. Another 39, including South Dakota, allow concealed carry with a permit.

In a letter accompanying one of the vetoes, Daugaard, who had previously pointed to his own membership in the National Rifle Association, defended the state’s existing concealed weapons laws as reasonable.

“I am unaware of a single instance in which a person who could lawfully possess a gun was denied a permit to carry a concealed pistol,” Daugaard wrote. By comparison, he added, two counties in the state have turned down nearly 600 permit applicants “who were disqualified due to mental illness or due to violent or drug-related crimes.”

The veto echoed statements Daugaard made in a Feb. 11 editorial in the Rapid City Journal, in which he said he viewed the state’s laws as “effective, appropriate and minimal.” Daugaard also vetoed a similar proposal loosening concealed-carry standards in 2012.

Rep. Lee Qualm, who sponsored the proposal relaxing the state capitol restrictions, called the vetoes “frustrating,” and said in a phone interview on Friday that he would try to override them when the legislature returns from recess March 27. An override requires a two-thirds majority in South Dakota, and Qualm said both bills were only a handful of votes short of that threshold in both chambers.

Rep. Lynne Disanto, sponsor of the broader of the two bills, did not respond to calls or emails seeking comment.

The bills’ failure at the hands of a Republican governor pointed to a divide in his party over the regulations. Neither bill received full Republican support in either chamber, and the statewide measure was opposed by about one in five Republicans in the House and one in three in the Senate.

(Reporting by Tom James in Seattle; Editing by Patrick Enright and Richard Chang)

U.S., China soften tone, say to work together on North Korea

Chinese Foreign Minister Wang Yi (R) talks with U.S. Secretary of State Rex Tillerson at Diaoyutai State Guesthouse on March 18, 2017 in Beijing, China. REUTERS/ Lintao Zhang/POOL

By Yeganeh Torbati and Ben Blanchard

BEIJING (Reuters) – The United States and China will work together to get nuclear-armed North Korea take “a different course”, U.S. Secretary of State Rex Tillerson said on Saturday, softening previous criticism of Beijing after talks with his Chinese counterpart.

China has been irritated at being repeatedly told by Washington to rein in North Korea’s surging nuclear and ballistic missile programmes, one of a series of hurdles in ties between the world’s two largest economies.

But Chinese Foreign Minister Wang Yi described the talks with Tillerson as “candid, pragmatic and productive”. The two sides appeared to have made some progress or put aside differences on difficult issues, at least in advance of a planned summit between Chinese President Xi Jinping and U.S. President Donald Trump.

On Friday, Tillerson issued the Trump administration’s starkest warning yet to North Korea, saying in Seoul that a military response would be “on the table” if Pyongyang took action to threaten South Korean and U.S. forces.

Tillerson took a softer line after the meeting with Wang. He told reporters both China and the United States noted efforts over the last two decades had not succeeded in curbing the threat posed by North Korea’s weapons programmes.

“We share a common view and a sense that tensions on the peninsula are quite high right now and that things have reached a rather dangerous level, and we’ve committed ourselves to doing everything we can to prevent any type of conflict from breaking out,” Tillerson said.

He said Wang and he agreed to work together to persuade North Korea “make a course correction and move away from the development of their nuclear weapons.”

Wang said U.N. resolutions on North Korea both mapped out sanctions and called for efforts to resume efforts for a negotiated settlement.

“No matter what happens, we have to stay committed to diplomatic means as a way to seek peaceful settlement,” he said.

Wang said he and Tillerson “both hope to find ways to restart the talks”.

“Neither of us are ready to give up the hope for peace,” he said.

Tillerson had said on Friday that any talks on North Korea could only take place after it began the process of unwinding its weapons programmes.

A U.S. official had told Reuters in Washington earlier this week that Tillerson may raise the prospect of imposing “secondary sanctions” on Chinese banks and other firms doing business with North Korea in defiance of U.N. sanctions.

Trump said in a tweet on Friday that North Korea was “behaving very badly” and accused China, Pyongyang’s neighbour and only major ally, of doing little to resolve the crisis.

XI-TRUMP SUMMIT

However, the two sides appear to have toned down differences as they work on finalising a trip by Xi to the United States, possibly next month, for his first summit with Trump.

Wang said the two countries were in “close communication” on arranging the meeting, but gave no details.

The state-run Chinese tabloid the Global Times said on Saturday that it was in China’s interests to stop North Korea’s nuclear ambitions but to suggest China cut the country off completely was ridiculous as it would be fraught with danger.

“Once there is chaos in North Korea, it would first bring disaster to China. I’m sorry, but the United States and South Korea don’t have the right to demand this of China,” it said in an editorial.

A former oil executive with no prior diplomatic experience, Tillerson will meet Xi on Sunday.

North Korea has conducted two nuclear tests and a series of missile launches since the beginning of last year.

Last week, it launched four more ballistic missiles and is working to develop nuclear-tipped missiles that can reach the United States.

Washington has been pressing Beijing to do more to stop North Korea’s nuclear and missile programmes.

China has called for a dual track approach, urging North Korea to suspend its tests and the United States and South Korea to suspend military drills, so both sides can return to talks.

China has also been infuriated by the deployment of the THAAD, or Terminal High Altitude Area Defense, missile defence system in South Korea, which it says will both harm China’s own security and do nothing to ease tensions.

China says the system’s powerful radar will extend into the country’s northeast and potentially track Chinese missile launches, and maybe even intercept them. Russia also opposes THAAD, for the same reasons.

There are other tricky issues too, including the self-ruled island of Taiwan which China claims as its own.

The Trump administration is crafting a big new arms package for Taiwan that could include advanced rocket systems and anti-ship missiles to defend against China, U.S. officials said, a deal sure to anger Beijing.

Wang said Saturday’s talks included discussions on THAAD and Taiwan but did not give details.

(Additional reporting by Elias Glenn; Editing by Raju Gopalakrishnan)

Trump, Germany’s Merkel to hold first face-to-face meeting at White House

German Chancellor Angela Merkel gives a statement at the Chancellery in Berlin. REUTERS/Fabrizio Bensch

By Jeff Mason and Andreas Rinke

WASHINGTON (Reuters) – President Donald Trump welcomes German Chancellor Angela Merkel on Friday for a White House meeting that could help determine the future of the transatlantic alliance and shape the working relationship between two of the world’s most powerful leaders.

The new U.S. president and the long-serving stateswoman, whose country is Europe’s largest economy, will discuss funding for NATO and relations with Russia in their first meeting since Trump took office in January.

The meeting is consequential for both sides.

Merkel, who officials say has prepared carefully for the encounter, is likely to press Trump for assurances of support for a strong European Union and a commitment to fight climate change.

Trump, who as a presidential candidate criticized Merkel for allowing hundreds of thousands of refugees into Germany, will seek her support for his demand that North Atlantic Treaty Organization nations pay more for their defense needs.

Relationship building will be a less overt but important agenda item. Merkel had close relations with Trump’s Democratic and Republican predecessors, Barack Obama and George W. Bush, and she is likely to seek a strong working relationship with Trump despite major policy differences and wariness in Germany about the former New York businessman.

“Those who know the chancellor know that she has a knack for winning over people in personal discussions. I am sure that Donald Trump will not be immune,” said Juergen Hardt, a conservative lawmaker who helps coordinate transatlantic relations for the German government.

Trump is eager to see follow-through on his demand that European countries shoulder more of the burden of paying for the NATO alliance, which he has criticized.

He will also seek counsel from Merkel on how to deal with Russian President Vladimir Putin, a leader Merkel has dealt with extensively and whom Trump, to the consternation of Republican and Democratic lawmakers, has praised.

“The president will be very interested in hearing the chancellor’s views on her experience interacting with Putin,” a senior administration official told reporters.

CLIMATE ACCORD

A U.S. official said the Trump administration’s position on U.S. participation in the Paris agreement to curb climate change would likely come up in the Merkel meeting and be further clarified in the weeks and months ahead. Merkel is a strong supporter of international efforts to fight global warming.

Trump has called climate change a hoax and vowed during his campaign to “cancel” the Paris agreement within 100 days, saying it would be too costly for the U.S. economy.

Since being elected, he has been mostly quiet on the issue. In a New York Times interview in November, he said he would keep an open mind about the Paris deal.

Merkel is also likely to press Trump about U.S. support for European security, despite assurances from Vice President Mike Pence about that issue on his recent trip to Europe.

“There is still lingering doubt about … how the U.S. sees European security, and whether the U.S. sees its security and Europe’s security as intrinsically linked and inseparable,” Jeffrey Rathke, a senior fellow at the Center for Strategic & International Studies, told reporters.

(Additional reporting by Noah Barkin; Editing by Peter Cooney)