Tag Archives: World Leaders

China says will work with North Korea to boost ties as envoy visits

China says will work with North Korea to boost ties as envoy visits

BEIJING/SEOUL (Reuters) – Traditional friendship between China and North Korea represents “valuable wealth” for their people, China said after its special envoy met a high-ranking North Korean official, but there was no mention of the crisis over North Korea’s weapons.

Song Tao, who heads the ruling Chinese Communist Party’s international department, is visiting Pyongyang to discuss the outcome of the recently concluded Communist Party Congress in China, at which President Xi Jinping cemented his power.

In a brief statement dated Friday but reported by Chinese media on Saturday, the international department said Song, who is there representing Xi, reported to North Korean official Choe Ryong Hae the outcome of the congress.

Song and Choe also talked about relations between their parties and countries, the department said.

“They said that the traditional friendship between China and North Korea was founded and cultivated by both countries former old leaders, and is valuable wealth for the two peoples,” it said.

“Both sides must work hard together to promote the further development of relations between the two parties and two countries to benefit their two peoples.”

The department made no mention of North Korea’s nuclear or missile programs, which are strongly opposed by China.

The North’s official KCNA news agency said Song informed Choe about China’s 19th National Congress “in detail”, and stressed China’s stance to steadily develop the traditionally friendly relations between the two parties and countries.

Song arrived on Friday but it is not clear how long he will be in North Korea.

China has repeatedly pushed for a diplomatic solution to the crisis over North Korea’s development of nuclear weapons and missiles to carry them, but in recent months it has had only limited high-level exchanges with North Korea.

The last time China’s special envoy for North Korea visited the country was in February last year.

NO MAGICIAN

Song’s trip comes just a week after U.S. President Donald Trump visited Beijing as part of an Asia tour, where he pressed for greater action to rein in North Korea, especially from China, with which North Korea does 90 percent of its trade.

The influential state-run Chinese tabloid the Global Times said in an editorial that it was unwise to expect too much from his trip, saying his key mission was to inform North Korea about the party congress in Beijing.

“Song is not a magician,” the newspaper said.

“The key to easing the situation on the peninsula lies in the hands of Washington and Pyongyang. If both sides insist on their own logic and refuse to move in the same direction, even if Song opens a door for talks, the door could be closed any time.”

It is not clear whether Song will meet North Korea’s youthful leader Kim Jong Un.

Kim and President Xi exchanged messages of congratulations and thanks over the Chinese party congress, but neither leader has visited the other’s country since assuming power.

Song’s department is in charge of the party’s relations with foreign political parties, and has traditionally served as a conduit for Chinese diplomacy with North Korea.

China’s new special envoy for North Korea, Kong Xuanyou, who took up his position in August, is not believed to have visited the country since assuming the job.

(Reporting by Joyce Lee and Ben Blanchard; Editing by G Crosse, Robert Birsel)

Iran says biased French stance threatens regional stability

Iran says biased French stance threatens regional stability

ANKARA (Reuters) – Iran accused France of fueling tension in the Middle East by taking a “biased” stance on Tehran’s regional policy, state TV reported on Friday.

“It seems that France has a biased view toward the ongoing crises and humanitarian catastrophes in the Middle East Foreign Ministry spokesman Bahram Qasemi was quoted as saying.

“This view fuels regional conflicts, whether intentionally or unintentionally,” he said.

French Foreign Minister Jean-Yves Le Drian said on Thursday that France was worried about Iran’s involvement in the Middle East crisis and its disputed ballistic missile program.

“Iran’s role and the different areas where this country operates worries us,” Le Drian told a joint news conference with his Saudi counterpart Adel Jubeir in Riyadh.

“I am thinking in particular of Iran’s interventions in regional crises, this hegemonic temptation and I’m thinking of its ballistic program,” he said.

Iran has repeatedly rejected France’s call for talks on its missile program, saying it was defensive and unrelated to a nuclear agreement with world powers struck in 2015.

Paris suggested that new European Union sanctions against Iran may be discussed over its missile tests. But EU foreign policy chief Federica Mogherini seemed to dismiss that idea on Tuesday, keen to avoid risks to the hard-won deal that curbed Iran’s nuclear activity.

Shi’ite-dominated Iran and its regional arch-rival Sunni Saudi Arabia, are involved in proxy wars across the region, backing opposite sides in Syria, Yemen, Iraq and Lebanon.

Jubeir told Reuters on Thursday that the kingdom’s actions in the Middle East were a response to what he called the “aggression” of Iran.

Qasemi said Jubeir was repeating baseless claims, the state news agency IRNA reported on Friday.

“Saudi Arabia’s foreign minister’s gestures and his blame game will definitely not reduce the responsibility of this country in undermining the regional stability and security,” Qasemi said.

(Additional reporting by John Iris in Paris,; Writing by Parisa Hafezi, editing by Jon Boyle)

Russia, China, others boycott U.S. meeting at U.N. on Venezuela

Russia, China, others boycott U.S. meeting at U.N. on Venezuela

By Michelle Nichols

UNITED NATIONS (Reuters) – Russia, China, Egypt and Bolivia boycotted an informal public United Nations Security Council meeting on Venezuela on Monday organized by the United States, saying the 15-member body should not be involved in the situation.

“The issue is about meddling with the internal domestic affairs of Venezuela,” Russian U.N. Ambassador Vassily Nebenzia told reporters, adding that he hoped the country could settle its issues peacefully without any external interference.

U.S. Ambassador to the United Nations Nikki Haley told the meeting: “The fact that the (Venezuelan) government would go so far as to try and get people not to show up to a meeting is guilt. And that’s unfortunate.”

Venezuela is suffering from a harsh economic crisis and President Nicolas Maduro’s government has clamped down on the opposition, jailing or otherwise barring from office many dissenting leaders and activists.

Dozens of people have died in violence since the opposition began a sustained wave of protests in April. Met by rubber bullets, water cannon and tear gas fired by the National Guard, the protesters say the crisis demands an early presidential election that they are sure Maduro would lose.

His popularity has been pounded lower by triple-digit inflation and acute food and medicine shortages.

“We received pressure from regional partners not to have this meeting,” Haley said. “This goal is not to degrade anyone. This is not to humiliate a region. This is only to lift up the region.”

Uruguay’s Deputy U.N. Ambassador Luis Bermudez attended the U.N. meeting, but said his country did not believe the situation in Venezuela was a threat to international peace and security.

Venezuela’s U.N. Ambassador Rafael Dario Ramirez spoke to reporters as the meeting was being held, flanked by Nebenzia, Chinese Deputy U.N. Ambassador Wu Haitao and Bolivian U.N. Ambassador Sacha Sergio Llorentty Soliz.

“The meeting is a hostile and clearly interfering act of the United States that undermines the principle of sovereignty of a member state of the U.N.,” Ramirez said. “We condemn this act of political manipulation.”

European Union foreign ministers approved economic sanctions, including an arms embargo, on Venezuela on Monday, saying regional elections last month marred by reported irregularities had deepened the country’s crisis.

The United States has also imposed targeted sanctions on top Venezuelan officials.

The U.N. Security Council also met behind closed doors in May, at Washington’s request, to discuss the crisis in Venezuela.

(Reporting by Michelle Nichols; Editing by James Dalgleish)

Erdogan swipes at Russia, U.S. missions in Syria

Erdogan swipes at Russia, U.S. missions in Syria

ANKARA/SOCHI (Reuters) – Turkish President Tayyip Erdogan took swipes at U.S. and Russian interventions in Syria on Monday and said if countries truly believed a military solution was impossible, they should withdraw their troops.

Russian President Vladimir Putin and his U.S. counterpart Donald Trump said in a joint statement on Saturday they would continue to fight against Islamic State in Syria, while agreeing that there was no military solution to the country’s wider, six-year-old conflict.

“I am having trouble understanding these comments,” Erdogan told reporters before flying to Russia for talks with Putin. “If a military solution is out of the question, then those who say this should pull their troops out.

“Then a political method should be sought in Syria, ways to head into elections should be examined… We will discuss these with Putin,” he said.

After more than four hours of talks with Putin in the southern Russian resort of Sochi, Erdogan said the two leaders had agreed to focus on a political solution to the conflict.

“We agreed that the grounds to focus on a political solution (in Syria) have been formed,” he said.

Putin said Russia would continue to work on Syria with Turkey and their efforts were yielding results: “The level of violence has definitely been reduced, favorable conditions are being created for the progression of a inter-Syrian dialogue.”

Neither leader went into more specific detail. Asked if the two discussed Erdogan’s earlier comments, Kremlin spokesman Dmitry Peskov said the talks were about more complex issues which could not be made public, according to RIA news agency.

Turkey has been annoyed by both Russian and U.S. missions in Syria. Before his trip to Russia, Erdogan said both Moscow, which backs President Bashar al-Assad, and Washington, which armed Syrian YPG Kurdish forces Ankara sees as allied to separatists fighting in southeastern Turkey, had set up bases.

“The United States said it would completely leave Iraq, but it didn’t. The world is not stupid, some realities are being told differently and practiced differently,” he said.

He said the United States had 13 bases in Syria and Russia had five. The YPG has said Washington has established seven military bases in areas of northern Syria. The U.S.-led coalition says it does not discuss the location of its forces.

Russia has been a strong supporter of Assad, whose removal Erdogan has demanded, and Moscow’s military intervention two years ago helped turn the conflict in the Syrian president’s favor.

Turkish troops have also fought in Syria to halt the advance of Kurdish YPG forces along its frontier.

“We attach great importance to the joint steps Turkey and Russia will take on (the) defense industry,” Erdogan said.

His remarks follow Turkey’s recently completed purchase of Russian S-400 surface-to-air missile systems, a defense deal that Turkey’s Western allies see as a snub to the NATO alliance.

The weapon cannot be integrated into NATO defenses.

Ankara says it is making agreements with the Franco-Italian EUROSAM consortium to develop, produce and use its own sources for air defense system.

(Reporting by Tuvan Gumrukcu and Ece Toksabay in ANKARA, Olesya Astakhova in SOCHI and Ezgi Erkoyun in Istanbul; Writing by Dominic Evans and Jack Stubbs; Editing by Ralph Boulton and Peter Graff, William Maclean)

Trans-Pacific trade deal advances without United States

Trans-Pacific trade deal advances without United States

By Kiyoshi Takenaka and Mai Nguyen

DANANG, Vietnam (Reuters) – Countries in the Trans Pacific Partnership (TPP) trade deal have agreed on the core elements to move ahead without the United States, officials said on Saturday, after last-minute resistance from Canada raised new doubts about its survival.

Taking the agreement forward is a boost for the principle of multilateral trade pacts after U.S. President Donald Trump ditched the TPP early this year in favor of an “America First” policy he believes would save U.S. jobs.

Talks – often heated – have been held on the sidelines of an Asia-Pacific Economic Cooperation (APEC) summit in the Vietnamese resort of Danang, where Trump and other leaders held their main meeting on Saturday.

“We have overcome the hardest part,” Vietnam’s trade minister, Tran Tuan Anh, told a news conference.

The agreement, which still needs to be finalised, would now be called the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), he said.

Japanese Economy Minister Toshimitsu Motegi said he hoped that moving ahead with the deal would be a step towards bringing back the United States.

Partly to counter China’s growing dominance in Asia, Japan had been lobbying hard for the TPP pact, which aims to eliminate tariffs on industrial and farm products across the 11-nation bloc whose trade totaled $356 billion last year.

Some 20 provisions of the original agreement were suspended. Those included some related to protecting labor rights and the environment, although most were related to intellectual property – one of the main sticking points after the U.S. withdrawal.

“The overall impact on most firms is quite modest,” said Deborah Elms of the Asian Trade Center think-tank, adding that the new version was “essentially identical to the original document”.

DOUBTS

Any kind of deal looked doubtful on Friday, when a summit of TPP leaders was called off after Canadian Prime Minister Justin Trudeau did not attend. Canada’s trade minister later blamed Trudeau’s absence on “a misunderstanding about the schedule”.

Canada, which has the second-biggest economy among remaining TPP countries after Japan, had said it wanted to ensure an agreement that would protect jobs.

Canada’s position has been further complicated by the fact that it is simultaneously renegotiating the North American Free Trade Agreement (NAFTA) with the Trump administration.

Speaking to reporters on Saturday, Trudeau said though Canada was pleased with the progress made on TPP, there was “still more important work to be done.”

Trudeau said Canada will always be “extremely closely linked to the American economy” but there was a need to diversify trade through other deals.

NAFTA talks with the United States were not affecting Canada’s stance on TPP negotiations, he said.

In a speech in Danang, Trump sent out a strong message that he was only interested in bilateral deals in Asia that would not disadvantage the United States.

Chinese President Xi Jinping used the same forum to stress multilateralism and said globalisation was an irreversible trend.

China had noted that the 11 TPP countries had made some progress on the deal, but it “hasn’t paid too much attention” because it is focused on APEC work during the meeting, Zhang Jun, Director General of the Department of International Economic Affairs of China’s Foreign Ministry, told reporters.

He said all trade arrangements in the region should promote openness and inclusiveness, with no “exclusive clubs”.

Zhang said the Beijing-backed Regional Comprehensive Economic Partnership (RCEP) trade pact will not be impacted by TPP, to which China is not party. The two trade deals are not mutually exclusive, and some countries would be members of both.

‘RAPID, COMPLEX CHANGES’

The APEC leaders met in closed sessions on Saturday, pausing for the traditional “family photograph”, taken above the South China Sea.

At the start of the meeting, Vietnamese President Tran Dai Quang noted APEC’s success in removing barriers to trade – as well as the new uncertainty in the world.

“We have witnessed changes more rapid and complex than we expect,” he said in opening remarks.

APEC trade and foreign ministers released a joint statement on Saturday, three days later than planned because of wrangling over customary language the United States wanted to change.

The statement still refers to free and open trade, but it also refers to fair trade and to members “improving adherence to rules agreed upon”.

A reference to strengthening the multilateral trading system was dropped. The ministers also said they would work to improve the functioning of the World Trade Organization – which Trump criticized in Friday’s speech.

Later, leaders of the 21 APEC economies agreed to address “unfair trade practices” and called for the removal of “market distorting subsidies,” in contrast to communiques they have issued in the past.

(Additional reporting by Michael Martina and A. Ananthalakshmi in DANANG, David Ljunggren in OTTAWA; Writing by Matthew Tostevin; Editing by Stephen Coates and Ros Russell)

Putin and Trump talk Syria, election meddling at brief meeting

Putin and Trump talk Syria, election meddling at brief meeting

By Denis Pinchuk and Steve Holland

DANANG, Vietnam (Reuters) – U.S. President Donald Trump and Russian President Vladimir Putin agreed a statement on Syria during a brief meeting at a summit in Vietnam on Saturday and Putin again dismissed allegations of meddling in last year’s U.S. election.

It was their first encounter since July and came at a time that U.S.-Russia relations have been battered and Trump is haunted by the accusations that Putin influenced the election that brought him to the White House.

Trump said their agreement to support a political solution to Syria’s conflict would save “tremendous numbers of lives”.

“We did it very quickly,” Trump told reporters aboard Air Force One after leaving the Asia-Pacific Economic Cooperation (APEC) summit in the resort of Danang for Hanoi, Vietnam’s capital. “We seem to have a very good feeling for each other, a good relationship considering we don’t know each other well.”

Talking after their meeting, Putin described Trump as “a well-mannered person and comfortable to deal with”.

“We know each other little, but the U.S. president is highly civil in his behavior, friendly. We have a normal dialogue but unfortunately little time,” he said.

After emphasizing last year on the campaign trail that it would be nice if the United States and Russia could work together on world problems, Trump has had limited contact with Putin since taking office.

The sight of Trump sitting down with Putin in public also revives the issue of election meddling – still under investigation. Trump’s former campaign manager, Paul Manafort, has been indicted in the probe along with his former deputy, Rick Gates.

Trump said Putin had told him again that he hadn’t meddled in the election.

“I really believe that when he tells me that, he means it,” Trump said of the accusations. “I think he’s very insulted by it, which is not a good thing for our country.”

Putin dismissed suggestions Russia influenced the elections through political advertising. Tech companies, including Facebook, have said some Russian-bought political content spread on their platforms around the time of the election.

“There is no confirmation of our mass media meddling in election campaigns – and there can’t be any,” Putin said.

NO SIT-DOWN

Scheduling and unspecified protocol issues were to blame for the fact that a mooted sit-down meeting with Trump did not happen in Danang, Putin said.

Trump said they had two or three very short conversations.

They were seen chatting amicably as they walked to the position where the traditional APEC summit photo was being taken at a viewpoint looking over the South China Sea.

Pictures from the APEC meeting also showed Trump walking up to Putin at the summit table and patting him on the back. They also shook hands at the summit dinner on Friday evening.

It would be a great thing to have a good relationship with Russia, Trump said.

“He could really help us in North Korea,” Trump said. “If Russia helped us in addition to China that problem would go away a lot faster.”

The Kremlin said the statement on Syria was coordinated by Russian Foreign Minister Sergei Lavrov and U.S. Secretary of State Rex Tillerson especially for the meeting in Danang.

With Islamic State having suffered losses in Syria and beyond, greater attention is turning to the broader conflict between President Bashar al-Assad’s forces and rebel factions.

They confirmed their commitment to Syria’s sovereignty, independence and territorial integrity and called on all parties to the Syrian conflict to take an active part in the Geneva political process, it said.

(Additional reporting by Steve Holland in DANANG and Maria Kiselyova in MOSCOW; Writing by Matthew Tostevin; Editing by Stephen Coates/Ros Russell/Louise Heavens)

Putin says doping allegations against Russia meant to stir discontent

Putin says doping allegations against Russia meant to stir discontent

By Polina Nikolskaya

MOSCOW (Reuters) – Russian President Vladimir Putin suggested on Thursday that allegations of a state-sponsored doping program in Russia were an attempt to sow discontent ahead of the country’s presidential elections.

Reports commissioned by the World Anti-Doping Agency (WADA) have raised allegations of the existence of a state-run program that included tampering with Russian athletes’ positive tests by laboratory and security officials at the 2014 Sochi Games.

The International Olympic Committee (IOC) is now investigating the allegations and has banned six cross-country skiers for life from the Olympics over doping violations at Sochi.

“This is what is bothering me: the (Pyeongchang Winter) Olympics start in February, and when are our presidential elections? In March,” RIA Novosti state news agency quoted Putin as saying.

“There are big suspicions that all this is being done to create for someone the necessary conditions for discontent among sport lovers, athletes.”

Putin, widely expected to stand in and win the elections, also suggested the United States’ influence in international sports organizations could be having a deleterious effect on Russia.

Putin said the United States was home to “the main companies that order and pay for television rights, the main sponsors and advertisers” of major sporting events.

“In retaliation for our alleged meddling in their election, they (the United States) want to create problems in the election of the president of Russia,” Putin said.

Last month, Putin said the IOC was being pressured by the United States to prevent Russia taking part in the 2018 Pyeongchang Winter Olympics.

Russia escaped a blanket ban at the 2016 Olympics in Rio de Janeiro although it was, and remains, barred from competing in international athletics events.

The country’s Paralympic Committee and anti-doping agency RUSADA are also still suspended over the doping scandals.

Despite repeated calls for cooperation with international bodies to help rid Russia of doping, the authorities have always denied the state’s role in the scandal.

The IOC has said it will decide during its executive board meeting being held on Dec. 5-7 on the participation of Russian competitors at the 2018 winter games.

(Reporting by Polina Nikolskaya; Writing by Gabrielle Tétrault-Farber; Editing by Ralph Boulton)

In Beijing, Trump presses China on North Korea and trade

In Beijing, Trump presses China on North Korea and trade

By Steve Holland and Christian Shepherd

BEIJING (Reuters) – U.S. President Donald Trump pressed China to do more to rein in North Korea on Thursday and said bilateral trade had been unfair to the United States, but praised President Xi Jinping’s pledge that China would be more open to foreign firms.

On North Korea’s nuclear and missile programs, Trump said “China can fix this problem quickly and easily”, urging Beijing to cut financial links with North Korea and also calling on Russia to help.

Trump was speaking alongside Xi in the Chinese capital to announce the signing of about $250 billion in commercial deals between U.S. and Chinese firms, a display that some in the U.S. business community worry detracts from tackling deep-seated complaints about market access in China.

Xi said the Chinese economy would become increasingly open and transparent to foreign firms, including those from the United States, and welcomed U.S. companies to participate in his ambitious “Belt and Road” infrastructure-led initiative.

Trump made clear that he blamed his predecessors, not China, for the trade imbalance, and repeatedly praised Xi, calling him “a very special man”.

“But we will make it fair and it will be tremendous for both of us,” Trump said.

Xi smiled widely when Trump said he does not blame China for the deficit and also when Trump said Xi gets things done.

“Of course there are some frictions, but on the basis of win-win cooperation and fair competition, we hope we can solve all these issues in a frank and consultative way,” Xi said.

“Keeping opening up is our long-term strategy. We will never narrow or close our doors. We will further widen them,” he said. China would also offer a more fair and transparent environment for foreign firms, including U.S. ones, Xi said.

MODEST PROGRESS

Trump is pressing China to tighten the screws further on North Korea and its development of nuclear weapons in defiance of U.N. sanctions. At least modest progress is hoped for, although there are no immediate signs of a major breakthrough, a U.S. official said earlier.

Referring to Xi, Trump said: “I do believe there’s a solution to that, as do you.”

Xi reiterated that China would strive for the denuclearisation of the Korean peninsula but offered no hint that China would change tack on North Korea, with which it fought side-by-side in the 1950-53 Korean war against U.S.-led forces.

“We are devoted to reaching a resolution to the Korean peninsula issue through dialogue and consultations,” Xi said.

Briefing reporters after the talks, U.S. Secretary of State Rex Tillerson said Trump told Xi: “You’re a strong man, I’m sure you can solve this for me.”

Tillerson said both leaders agreed they could not accept a nuclear-armed North Korea but he acknowledged they had some differences over tactics and timing.

Tillerson pointed out that Trump, in a speech in Seoul, had “invited the North Koreans to come to the table,” in line with the Chinese desire for a negotiated solution. He added, however, that Trump was prepared for a “military response” if he deemed the threat serious enough, but “that’s not his first choice”.

“We are going to work hard on diplomatic efforts as well,” he said, but did not elaborate.

In a show of the importance China puts on Trump’s first official visit, Thursday’s welcoming ceremony outside Beijing’s Great Hall of the People overlooking Tiananmen Square was broadcast live on state television – unprecedented treatment for a visiting leader.

Earlier on Thursday, Xi said he had a deep exchange of views with Trump and reached consensus on numerous issues of mutual concern.

“For China, cooperation is the only real choice, only win-win can lead to an even better future,” he said.

Xi said China and the United States strengthened high-level dialogue on all fronts over the past year and boosted coordination on major international issues, such as the Korean peninsula and Afghanistan.

“Relations between China and the United States are now on a new historical starting point,” Xi said.

Trump and Xi hit it off at their first meeting in April at Trump’s Mar-a-Lago resort in Florida and continued their “bromance” on Wednesday with an afternoon of sightseeing together with their wives. However, divisions persist over trade and North Korea.

And while Xi is riding high after consolidating power at a twice-a-decade Communist Party Congress last month, Trump comes to China saddled with low public approval ratings and dogged by investigations into Russian links to his election campaign.

‘HORRIBLE’ TRADE SURPLUS

Trump has ratcheted up his criticism of China’s massive trade surplus with the United States – calling it “embarrassing” and “horrible” last week – and has accused Beijing of unfair trade practices.

For its part, China says U.S. restrictions on Chinese investment in the United States and on high-tech exports need to be addressed.

Several corporate chief executives were in Beijing as part of a delegation led by U.S. Commerce Secretary Wilbur Ross, with General Electric and semiconductor maker Qualcomm Inc among those announcing billions of dollars in sales to China. [L3N1NF2IA]

But Qualcomm’s agreement to sell $12 billion worth of components to three Chinese mobile phone makers over three years is non-binding, and critics say such public announcements are sometimes more show than substance.

“This shows that we have a strong, vibrant bilateral economic relationship, and yet we still need to focus on leveling the playing field because U.S. companies continue to be disadvantaged doing business in China,” said William Zarit, chairman of the American Chamber of Commerce in China.

Trump railed against China’s trade practices during the 2016 U.S. presidential campaign and threatened to take action once in office. But he has since held back on any major trade penalties, making clear he was doing so to give Beijing time to make progress reining in North Korea.

A U.S. official said both sides were “in sync” about wanting to minimize friction during the visit and recreate the positive tone of the April summit.

Trump was not expected to put much emphasis in his talks with Xi on thorny issues such as the disputed South China Sea and self-ruled Taiwan, claimed by China as its own, although the leaders’ aides may deal with those matters privately, the official told Reuters, speaking on condition of anonymity.

China has repeatedly pushed back at suggestions it should be doing more to rein in North Korea, which does about 90 percent of its trade with China, saying it is fully enforcing U.N. sanctions and that everyone has a responsibility to lower tension and get talks back on track.

(This story was refiled to restore dropped word in paragraph 16.)

(Additional reporting by Matt Spetalnick, Matthew Miller, Philip Wen and John Ruwitch; Writing by Ben Blanchard and Tony Munroe; Editing by Clarence Fernandez and Nick Macfie)

Saudi mass arrests jolt markets, play to ire over corruption

Saudi mass arrests jolt markets, play to ire over corruption

By Katie Paul and Stephen Kalin

RIYADH (Reuters) – Most major Gulf stock markets slid early on Tuesday on jitters about Saudi Arabia’s sweeping anti-graft purge, a campaign seen by critics as a populist power grab but by ordinary Saudis as an overdue attack on the sleaze of a moneyed ultra-elite.

U.S. President Donald Trump endorsed the crackdown, saying some of those arrested “have been ‘milking’ their country for years”, but some Western officials expressed unease about the possible reaction in Riyadh’s opaque tribal and royal politics.

Authorities detained dozens of top Saudis including billionaire Prince Alwaleed bin Talal in a move widely seen as an attempt by Crown Prince Mohammed bin Salman to neuter any opposition to his lightening ascent to the pinnacle of power.

Admirers see it as an assault on the endemic theft of public funds in the world’s top oil exporter, an absolute monarchy.

“Corruption should have been fought a long time ago, because it’s corruption that delays society’s development,” Riyadh resident Hussein al-Dosari told Reuters.

“God willing, everything that happened … is only the beginning of what is planned,” said Faisal bin Ali, adding he wanted to see “correcting mistakes, correcting ministries and correcting any injustices against the general population.”

But some analysts see the arrests as the latest in a string of moves shifting power from a consensus-based system dispersing authority among the ruling Al Saud to a governing structure centered around 32-year-old Prince Mohammed himself.

Investors worry that his campaign against corruption — involving the arrests of the kingdom’s most internationally-well known businessmen — could see the ownership of businesses and assets become vulnerable to unpredictable policy shifts.

INVESTOR NERVES

The Saudi stock index .TASI was down 1.6 percent after 75 minutes of trade. Shares linked to people detained in the investigation led falls. [L5N1ND2CR]

Among them, Prince Alwaleed’s Kingdom Holding plunged by its 10 percent daily limit, bringing its losses in the three days since the investigation was announced to 21 percent.

In Dubai, where Saudis have been significant investors, the index slipped 0.6 percent. The index in Abu Dhabi, less exposed to Saudi money, inched up 0.1 percent. But Kuwait continued to slide, with its index losing 3.8 percent.

The show of investor nerves coincided with sharply heightened strains between Riyadh and Tehran, reflected in a fresh denunciation of adversary Iran by Prince Mohammed over its role in Yemen, and by continuing mutual acrimony over political turmoil in Lebanon, another cockpit of Iranian-Saudi rivalry.

Displaying an apparently undimmed taste for navigating several challenges simultaneously, Prince Mohammed said Iran’s supply of rockets to militias in Yemen is an act of “direct military aggression” that could be an act of war.

He was speaking in a phone call with British Foreign Minister Boris Johnson after Saudi air defense forces intercepted a ballistic missile they said was fired toward Riyadh on Saturday by the Houthis.

Saudi-led forces, which back the internationally-recognized government, have been targeting the Houthis in a war which has killed more than 10,000 people and triggered a humanitarian disaster in one of the region’s poorest countries.

Iran has denied it was behind the missile launch, rejecting the Saudi and U.S. statements condemning Tehran as “destructive and provocative” and “slanders”.

The coincidence of heightened Saudi-Iranian tensions and Saudi domestic political upheaval has stirred unease among some Western governments and analysts about the emergence of an impromptu policy-making style under Prince Mohammed.

“He seems to be pushing the creation of a personalized system of rule without the checks and balances that have typically characterized the Saudi system of governance,” wrote Marc Lynch, professor of political science and international affairs at George Washington University, in the Washington Post.

“In both domestic and foreign affairs, he has consistently undertaken sudden and wide-ranging campaigns for unclear reasons which shatter prevailing norms.”

PIVOTAL POWER BASE

Among those held in the anti-graft purge was Prince Miteb bin Abdullah, who was replaced as minister of the National Guard, a pivotal power base rooted in the kingdom’s tribes. That recalled a palace coup in June that ousted Mohammed bin Nayef as heir to the throne.

A former senior U.S. intelligence official cautioned that given the National Guard’s loyalties, Prince Mohammed, widely known as MbS, could face a backlash.

“I find it difficult to believe that it (National Guard) will simply roll over and accept the imposition of new leadership in such an arbitrary fashion.”

But the crackdown may go some way to soothing public disgust over financial abuses by the powerful, some Saudis say.

“There is no doubt that it (the detentions) soothes the anger of the regular citizen who felt that such names and senior leaders who appeared in the list were immune from legal accountability,” said a Saudi-based political analyst Mansour al-Ameer.

“Its spread to the general population is evidence that no one is excluded from legal accountability, and this will eventually benefit the citizen and (national) development.”

(Reporting by Gulf team, Writing by William Maclean,Editing by Jon Boyle)

In meeting with military, Trump talks of ‘calm before the storm’

In meeting with military, Trump talks of 'calm before the storm'

By Jeff Mason

WASHINGTON (Reuters) – After discussing Iran and North Korea with U.S. military leaders on Thursday, President Donald Trump posed for a photo with them before dinner and declared the moment “the calm before the storm.”

“You guys know what this represents?” Trump said after journalists gathered in the White House state dining room to photograph him and first lady Melania Trump with the uniformed military leaders and their spouses.

“Maybe it’s the calm before the storm,” he said.

What storm?

“You’ll find out,” Trump told questioning reporters.

Classical music played in the background and tables were set in the nearby Blue Room for a fancy meal.

The White House did not immediately reply to a request to clarify Trump’s remark.

Earlier in the evening, while seated with the top defense officials in the cabinet room, Trump talked about the threat from North Korea and preventing Iran from getting a nuclear weapon.

“In North Korea, our goal is denuclearization,” he said. “We cannot allow this dictatorship to threaten our nation or our allies with unimaginable loss of life. We will do what we must do to prevent that from happening. And it will be done, if necessary, believe me.”

During his speech to the United Nations General Assembly last month, Trump said the United States would “totally destroy” North Korea if needed to defend itself or U.S. allies.

The president on Thursday also had tough words for Iran, saying the country had not lived up to the spirit of an agreement forged with world powers to curb its nuclear program.

A senior administration official said on Thursday

that Trump was expected to announce soon he would decertify the landmark agreement.

Trump has filled top posts within his administration with military generals, including his chief of staff, retired General John Kelly, and national security adviser, Lieutenant General H.R. McMaster. McMaster, who normally dresses in civilian clothes at the White House, wore his uniform for the meeting.

Without being specific, Trump pressed the leaders to be faster at providing him with “military options” when needed.

“Moving forward, I also expect you to provide me with a broad range of military options, when needed, at a much faster pace. I know that government bureaucracy is slow, but I am depending on you to overcome the obstacles of bureaucracy,” he said during their cabinet room meeting.

(Reporting by Jeff Mason; Editing by Peter Cooney)