Trump, in tweets, defends his sharing of information with Russians

FILE PHOTO: A combination of file photos showing Russian Foreign Minister Sergei Lavrov attending a news conference in Moscow, Russia, November 18, 2015, and U.S. President Donald Trump posing for a photo in New York City, U.S., May 17, 2016. REUTERS/Maxim Zmeyev/Lucas Jackson/File Photos

WASHINGTON (Reuters) – U.S. President Donald Trump on Tuesday defended his decision to disclose information to Russian officials during a White House meeting last week, saying he had an “absolute right” to share “facts pertaining to terrorism and airline flight safety.”

The president took to Twitter to counter a torrent of criticism, including from his fellow Republicans, after reports that he had revealed highly classified information about a planned Islamic State operation.

Two U.S. officials said Trump shared the intelligence, supplied by a U.S. ally in the fight against the militant group, with Russian Foreign Minister Sergei Lavrov and Russian Ambassador Sergei Kislyak during a meeting last Wednesday.

The disclosures late on Monday roiled the administration as it struggled to move past the backlash over Trump’s abrupt firing of FBI Director James Comey, who was investigating the president’s ties to Russia.

The turmoil overshadowed Republican legislative priorities such as healthcare and tax reform and laid bare sharp divisions between the White House and U.S. intelligence agencies, which concluded late last year that Russia had tried to influence the 2016 presidential election in Trump’s favor.

Russia has denied such meddling, and Trump bristles at any suggestion he owed his Nov. 8 victory to Moscow.

“As President I wanted to share with Russia (at an openly scheduled W.H. meeting) which I have the absolute right to do, facts pertaining to terrorism and airline flight safety,” Trump said on Twitter. “Humanitarian reasons, plus I want Russia to greatly step up their fight against ISIS & terrorism.”

Trump weighed in personally the morning after his secretary of state, Rex Tillerson, and national security adviser, H.R. McMaster, issued statements saying no sources, methods or military operations were discussed at the Russian meeting.

McMaster said the story, initially reported by the Washington Post, was false.

The U.S. officials told Reuters that while the president has the authority to disclose even the most highly classified information at will, in this case he did so without consulting the ally that provided it, which threatens to jeopardize a long-standing intelligence-sharing agreement.

Bob Corker, the Republican head of the Senate Foreign Relations Committee, called the allegations “very, very troubling.”

“Obviously, they’re in a downward spiral right now,” he said on Monday, “and they’ve got to come to grips with all that’s happening.”

(Reporting by Susan Heavey, Doina Chiacu, Patricia Zengerle, Jeff Mason, Mark Hosenball; Editing by Chizu Nomiyama and Lisa Von Ahn)

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

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

By Ju-min Park and Christine Kim

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

‘IMPROVE UNDERSTANDING’

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

By Ju-min Park and Christine Kim

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

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

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

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

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

Lee’s appointment requires parliamentary approval.

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

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

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

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

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

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

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

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

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

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

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

TRUST, UNDERSTANDING

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

U.N. expert keen to probe Philippines killings, but won’t debate Duterte

Agnes Callamard, a United Nations Special Rapporteur on Extrajudicial, Summary or Arbitrary Executions, answer questions during a interview by the local media at a compound of University of the Philippines in Quezon city, metro Manila, Phiippines May 5, 2017. REUTERS/Romeo Ranoco

MANILA (Reuters) – A United Nations expert who irked the Philippines with a surprise visit said on Saturday she was keen to return and investigate alleged summary killings, but only if President Rodrigo Duterte drops his condition that she must hold a debate with him.

Agnes Callamard, U.N. special rapporteur on extrajudicial killings, has been vocal about allegations of systematic executions in the Philippines as part of Duterte’s war on drugs. Thousands have been killed since he came to power in June last year.

A planned visit by Callamard in December was canceled because she refused to accept Duterte’s conditions.

She turned up in an unofficial capacity on Friday, telling an academic conference on human rights issues that she would not carry out any research this time.

“I am committed to continue my dialogue with the government and I am committed to undertake an official visit, either by myself or with the special rapporteur on the right to health,” Callamard told reporters in Manila.

Duterte has sought a public debate with Callamard before allowing her to conduct an inquiry into allegations of human rights violations against him, and that she be placed under oath before answering questions from the government.

The maverick leader has previously stated his openness toward being probed by the U.N. and western governments, but only if he gets to publicly ask investigators questions, during which he said he would “humiliate” them and create a “spectacle”.

The government insists it must be given the opportunity to question U.N. rapporteurs because the Philippines had already been maligned by allegations of systematic state-sponsored killings of drug dealers and users.

Presidential spokesman Ernesto Abella said on Friday the government would complain to the U.N. after Callamard failed to notify it of her Manila visit.

It turned out, however, that Callamard had actually informed the government in advance of her trip through the Philippine mission in Geneva.

But on Saturday, the government issued a statement, this time saying Callamard “conveniently failed to disclose” that the Philippine mission had asked her to reconsider the trip since Philippine officials would be in Geneva at the same time and were expecting to see her.

“Her delayed reply came on the day she left for the Philippines. This was neither timely nor proper courtesy accorded to a sovereign nation,” the statement said.

(Reporting by Enrico dela Cruz; Editing by Martin Petty and Clelia Oziel)

U.S. needs to balance foreign alliances: Tillerson

U.S. Secretary of State Rex Tillerson delivers remarks to the employees at the State Department in Washington, U.S., May 3, 2017. REUTERS/Yuri Gripas

By Yeganeh Torbati

WASHINGTON (Reuters) – U.S. Secretary of State Rex Tillerson on Wednesday outlined for his staff how an “America First” agenda translates into foreign policy, but did not address the Trump administration’s proposed budget cuts, which worry many diplomats.

It was the first time Tillerson had addressed all employees since his first day on the job on Feb. 2, when he spoke to hundreds of State Department officials in the building’s lobby, and the most thorough explanation yet of the Trump administration’s approach to foreign policy.

Some allies and even some U.S. officials have interpreted Republican President Donald Trump’s “America First” agenda, which puts Americans’ interests at home ahead of those of its partners overseas, as a threat to retreat from the world.

Tillerson said U.S. foreign policy priorities had gotten “a little bit out of balance” in the previous decades, with the United States too focused on promoting economic activity and trade with emerging economies.

“These are really important relationships to us, and they’re really important alliances, but we’ve got to bring them back into balance,” he said, speaking without notes and walking around the stage in a packed State Department auditorium.

He also signaled that the United States would de-emphasize human rights concerns in some of its interactions with other countries, saying that while U.S. values remain constant, its policies can adapt.

“If we condition too heavily that others must adopt this value that we’ve come to over a long history of our own, it really creates obstacles to our ability to advance our national security interests, our economic interests,” Tillerson said.

TILLERSON’S WORLD TOUR

Tillerson gave a tour of U.S. priorities around the world, including in East Asia, Russia, Africa, and the Western Hemisphere, omitting Europe.

With regard to North Korea’s nuclear program, Tillerson said the administration is willing to use so-called secondary sanctions to target foreign companies that continue to do business with Pyongyang in contravention of United Nations sanctions.

The pressure campaign on North Korea is “at about dial setting 5 or 6 right now,” Tillerson said.

On China, Tillerson said the United States has a “tremendous opportunity” to define its relationship with the superpower for the next several decades, and that he sensed great interest by the Chinese leadership to do that as well.

He and Defense Secretary Jim Mattis will chair a dialogue with their Chinese counterparts in June, in addition to a dialogue focused on economics and trade and led by Treasury Secretary Steven Mnuchin and Commerce Secretary Wilbur Ross.

Tillerson said he had told Russian President Vladimir Putin during his visit to Moscow last month that U.S.-Russia relations were at their lowest point since the Cold War.

“He did not disagree,” Tillerson said. “He shrugged his shoulders and nodded in agreement.”

But in remarks lasting nearly 40 minutes, Tillerson did not address the administration’s proposed 28 percent budget cut for U.S. diplomacy and foreign aid, which would reduce funding for the United Nations, climate change and cultural exchange programs. That proposal has made many American diplomats and aid workers anxious.

The Trump administration also has not named candidates for the vast majority of State Department positions requiring Senate confirmation, and many are being filled by career diplomats in “acting” positions. Tillerson began his remarks by thanking those officials, to applause from the crowd.

One veteran official who watched the speech criticized Tillerson’s use of the “America First” slogan. The phrase was used in the 1930s by isolationists who sought to keep the United States out of World War Two.

“The fact that they still use ‘America First’ shows they know nothing about history, and what’s worse is they don’t care.

“It’s offensive,” said the official, who requested anonymity.

Tillerson’s remarks followed an invitation to State Department and U.S. Agency for International Development employees this week to participate in an online survey to help identify “efficiency improvements,” in line with a March directive from Trump to “reorganize governmental functions and eliminate unnecessary agencies.” In his speech, the secretary urged employees to fill out the survey and give input on how to reform the agency.

Tillerson said the State Department, like many institutions, was built for the Cold War era.

He said he recognized that deep change to the State Department “is really stressful for a lot of people” and said the administration has “no preconceived notions on the outcome” of a review.

One State Department official faulted Tillerson for not talking in detail about the budget cuts, as well as for not taking questions from employees.

Previous secretaries of state, including Colin Powell, Condoleezza Rice and Hillary Clinton, held question-and-answer sessions with State Department employees within weeks of taking office.

“They wanted to make this look like he was talking to us, but it was more about the appearance than any substance,” said the official, speaking on the condition of anonymity.

Two other State Department officials, however, spoke highly of Tillerson’s remarks, saying it was early to expect him to take questions from the rank and file and saying he provided guidance both on foreign policy and on the challenge of reorganizing the department.

“I can understand folks wanting more details. I just don’t think we are in a place where he can provide more details,” said one of these officials about the expected State Department budget cuts. “My big takeaway was put on your big-girl britches, and when you look back you will feel like you were part of making this reform happen.”

(Additonal reporting by Arshad Mohammad, Jonathan Landay and John Walcott; Editing by Jonathan Oatis)

Russian, Turkish leaders re-affirm their pact on Syria

Russian President Vladimir Putin (L) shakes hands with his Turkish counterpart Tayyip Erdogan during a meeting in Sochi, Russia. Sputnik/Alexei Nikolsky/Kremlin via REUTERS

By Denis Pinchuk

SOCHI, Russia (Reuters) – The leaders of Russia and Turkey on Wednesday publicly re-affirmed their commitment to working together to end the conflict in Syria, despite a gas attack on a Syrian city that tested their fragile alliance.

Russian President Vladimir Putin and his Turkish counterpart Tayyip Erdogan, both subject to mounting criticism from Western governments over their rights records, have formed a pact on Syria despite backing rival sides in the civil conflict there.

They met on Wednesday in the Russian Black Sea resort of Sochi, their first meeting since a deadly April 4 chemical attack on the Syrian city of Khan Sheikhoun.

Erdogan at the time blamed the attack on Russia’s ally, the Syrian government, while Putin suggested the attack had been faked to discredit Syrian President Bashar al-Assad.

Speaking to reporters after their talks, Putin and Erdogan said they were still focused on working together to end the conflict in Syria, which has turned the country into a breeding ground for violent Islamist militant groups.

“We stand by our Russian friends in the fight against terror,” Erdogan said at a joint press conference, standing alongside Putin.

Both leaders said they would maintain their support for a stop-start peace process, based in the Kazakh city of Astana, in which Moscow, Ankara and Tehran are co-sponsors.

In the latest round of talks there, representatives of Syria’s armed opposition said they were suspending their participation.

SAFE ZONES

Erdogan and Putin also voiced support for a proposal, backed by U.S. President Donald Trump, to create so-called safe zones in Syria to protect civilians from the fighting.

“We all take the view that we need to… create mechanisms that would guarantee a cessation of bloodshed and create the conditions for the start of a political dialogue. In this respect our position and that of the Turkish president totally coincide,” Putin said.

On the gas attack, Putin and Erdogan did not mention previous differences over who was to blame. Instead, Erdogan said that he had reached agreement with Putin that whoever was responsible should be punished.

Russia’s military intervention in support of Assad has kept the Syrian president in power, while Turkey backs the armed opposition groups who are trying to oust him.

Turkey shot down a Russian air force jet in 2015 near the Turkish-Syrian border, creating a diplomatic crisis and prompting trade sanctions. Putin and Erdogan say they have put that crisis behind them.

Some diplomats see the alliance between Erdogan and Putin as offering at least a chance of steering the warring sides in Syria towards talks after six years of fighting that has killed hundreds and thousands of people and displaced millions.

Some of the trade restrictions introduced after the Russian jet was shot down are still in place, a lingering irritation in Russian-Turkish relations.

After the talks in Sochi on Wednesday, Russian Deputy Prime Minister Arkady Dvorkovich said Turkey had agreed to lift restrictions on imports of Russian wheat within days. There was no immediate confirmation of this from Turkish officials.

Turkey is the second largest Russian wheat importer after Egypt. For Turkey’s flour millers, Russian wheat is one of the most important sources of supply.

Putin, at his joint news conference with Erdogan, said though that Russia would leave in place for now some of its restrictions on Turkey — an embargo on tomato imports and curbs on entry visas for Turkish citizens.

Putin said that Russia would resume buying Turkish tomatoes, but it needed time to make sure that Russian farmers who sank money into growing tomatoes at home did not lose out on their investment.

(Additional reporting by Tuvan Gumrukcu and Ece Toksabay in ANKARA; Writing by Christian Lowe; Editing by Ken Ferris)

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

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

By James Pearson and Alexei Chernyshev

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

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

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

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

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

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

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

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

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

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

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

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

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

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

“LOYAL PARTNER”

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

China welcomes ASEAN summit declaration on South China Sea

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

BEIJING (Reuters) – China on Tuesday welcomed a softer stand taken by Southeast Asian countries on the disputed South China Sea at a weekend summit, saying it showed efforts to ease tension were working.

The Association of South East Asian Nations (ASEAN) dropped references to “land reclamation and militarization” from its chairman’s statement this year at the end of its summit in the Philippine capital, Manila.

The reference had been included last year and was even in an earlier, unpublished version of the statement, seen by Reuters on Saturday.

Two ASEAN diplomats said that this year, China had pressed ASEAN chair the Philippines to keep China’s contentious activities in the strategic waterway off ASEAN’s official agenda.

China is not a member of the 10-member bloc and did not attend the summit but it is extremely sensitive about the content of its statements.

It has often been accused of trying to influence the drafting of statements to muzzle what it sees as challenges to its sweeping sovereignty claim.

Chinese Foreign Ministry spokesman Geng Shuang did not directly answer a question on whether China had exerted pressure over the statement.

“Since last year, with the joint efforts of China and ASEAN countries including the Philippines, temperatures in the South China Sea situation have gone down and things have eased up. I think this accords with the interests of countries in the region,” Geng told a daily news briefing.

“The relevant situation at this ASEAN summit again fully shows the positive changes in the South China Sea situation and that the joint wish of countries in this region is to seek stability, promote cooperation and seek development, and this should be respected and supported by all sides.”

China has reacted angrily to individual members of the regional bloc expressing their concern about its rapid reclamation of reefs in the Spratlys islands and its installation of missile systems on them.

Philippine foreign ministry official Zaldy Patron, who is in-charge of ASEAN affairs, said nobody at the summit had pushed strongly on the South China Sea issue, or mentioned anything about land reclamation and militarization.

“But on the other hand, the leaders highlighted improving relations between ASEAN and China,” Patron said in Manila.

The softer statement comes as Philippine President Rodrigo Duterte seeks to bury the hatchet with China after years of wrangling over its maritime assertiveness and over-lapping claims.

After lobbying from Duterte, China agreed to let Philippine boats back to the rich fishing ground of the disputed Scarborough Shoal following a four-year blockade.

China claims most of the South China Sea. Vietnam, the Philippines, Malaysia, Brunei and Taiwan also have competing claims that overlap with China’s.

(Reporting by Ben Blanchard; Additional reporting by Manny Mogato in Manila; Editing by Robert Birsel)

U.S. says ‘major conflict’ with North Korea possible, China warns of escalation

A U.S. Navy MH-60R Sea Hawk helicopter from the "Blue Hawks" of Helicopter Maritime Strike Squadron 78 fires chaff flares during a training exercise near the aircraft carrier USS Carl Vinson (CVN 70) in the Philippine Sea. U.S. Navy/Mass Communication Specialist 2nd Class Sean M. Castellano/via REUTERS

By Steve Holland and David Brunnstrom

WASHINGTON (Reuters) – U.S. President Donald Trump said a “major, major conflict” with North Korea was possible over its nuclear and ballistic missile programmes, while China said the situation on the Korean peninsula could escalate or slip out of control.

Trump, speaking to Reuters on Thursday, said he wanted to resolve the crisis peacefully, possibly through the use of new economic sanctions, although a military option was not off the table.

“There is a chance that we could end up having a major, major conflict with North Korea,” Trump said in an interview at the Oval Office.

“We’d love to solve things diplomatically but it’s very difficult,” he said, describing North Korea as his biggest global challenge.

Chinese Foreign Minister Wang Yi said there was a danger that the situation on the Korean peninsula could escalate or slip out of control, his ministry said.

Wang made the comments in a meeting at the United Nations with a Russian diplomat on Thursday, the ministry said in a statement.

China, the only major ally of North Korea, has been increasingly uncomfortable in recent months about its neighbour’s pursuit of nuclear weapons and long-range ballistic missiles in violation on U.N. resolutions.

The United States has called on China to do more to rein in Pyongyang and Trump lavished praise on Chinese President Xi Jinping for his efforts, calling him “a good man”.

“I believe he is trying very hard. I know he would like to be able to do something. Perhaps it’s possible that he can’t. But I think he’d like to be able to do something,” Trump said.

U.S. Secretary of State Rex Tillerson said on Thursday that China had asked North Korea not to conduct any more nuclear tests. Beijing had warned Pyongyang it would impose unilateral sanctions if it went ahead, he added.

Tillerson did not say when China made the threat. He is due to chair a meeting with U.N Security Council foreign ministers on Friday, where he said he would stress the need for members to fully implement existing sanctions as well as possible next steps.

Chinese Foreign Ministry spokesman Geng Shuang, asked about Tillerson’s remarks, would not say what actions China might take if there were a new nuclear test and would not comment directly on what Tillerson had said.

“We oppose any behaviour that goes against Security Council resolutions. I think this position is very clear. This is what we have told the United States. I think North Korea is also very clear about this position,” Geng told reporters.

China banned imports of North Korean coal in February, cutting off its most important export, and Chinese media this month raised the possibility of restricting oil shipments to the North if it unleashed more provocations.

Geng said Friday’s UN meeting should not fixate on new sanctions.

“If the meeting only focuses on increasing sanctions and pressure, I think this will not only lose a rare opportunity, it may also exacerbate the confrontation between all sides and may damage efforts to promote peace and talks,” he said.

MISSILE DEFENCE, CARRIER GROUP

In a show of force, the United States is sending the USS Carl Vinson aircraft carrier group to waters off the Korean peninsula, where it will join the USS Michigan, a nuclear submarine that docked in South Korea on Tuesday. South Korea’s navy has said it will hold drills with the U.S. strike group.

Admiral Harry Harris, the top U.S. commander in the Pacific, said on Wednesday the carrier was in the Philippine Sea, within two hours’ striking distance of North Korea if needs be.

Harris also said a U.S. missile defence system being deployed in South Korea to ward off any North Korean attack would be operational in coming days.

China has been angered by the deployment of the Terminal High Altitude Area Defense (THAAD), complaining that its radar can see deep into China and undermines its security.

Trump said in the interview he wants South Korea to pay the cost of the THAAD, which he estimated at $1 billion. South Korea, one of Washington’s most crucial allies in the region, said the United States would have to bear the cost, pointing to possible friction ahead.

Trump’s remarks came as South Korea heads into a presidential poll on May 9 that will likely elect liberal frontrunner Moon Jae-in, who has said the next administration in Seoul should have the final say on THAAD.

Trump has vowed to prevent North Korea from being able to hit the United States with a nuclear missile, a capability experts say Pyongyang could have some time after 2020.

North Korea has conducted five nuclear tests and numerous missile tests, including one this month, a day before a summit between Trump and Xi in Florida.

North Korea, technically still at war with the South after their 1950-53 conflict ended in a truce, not a treaty, regularly threatens to destroy the United States and says it will pursue its nuclear and missile programmes to counter perceived U.S. aggression.

“It is just the U.S. which has pushed the situation on the peninsula to the brink of nuclear war by staging the largest-ever aggressive joint military drills against the DPRK for the past two months after bringing all sorts of nuclear strategic assets to south Korea,” the North’s KCNA state news agency said in a commentary.

DPRK stands for the Democratic People’s Republic of Korea.

“…The nuclear force of the DPRK is a treasure sword of justice and reliable war deterrent to defend the sovereignty and dignity of the country and global peace from the nuclear war threat posed by the U.S.”

Trump, asked if he considered North Korean leader Kim Jong Un to be rational, said he was operating from the assumption that he is rational. He noted that Kim had taken over his country at an early age.

In Moscow, Russian President Vladimir Putin and visiting Japanese Prime Minister Shinzo Abe called on North Korea and other countries on Thursday to avoid behaviour or rhetoric that could increase tension.

(Additional reporting by Phil Stewart, Matt Spetalnick, Eric Beech and Patricia Zengerle in Washington, Denis Pinchuk and Vladimir Soldatkin in Moscow, Ben Blanchard and Vincent Lee in Beijing and Ju-min Park in Seoul; Writing by Raju Gopalakrishnan and Nick Macfie; Editing by Robert Birsel)

China welcomes U.S. saying it’s open to talks on North Korea

A military drill marking the 85th anniversary of the establishment of the Korean People's Army (KPA) is seen in this handout photo by North Korea's Korean Central News Agency (KCNA) made available on April 26, 2017. KCNA/Handout via REUTERS

By Michael Martina and Ju-min Park

BEIJING/SEOUL (Reuters) – China on Thursday welcomed an apparently softer tone by the United States on the North Korean nuclear and missile crisis but stressed its opposition to a U.S. missile defense system being deployed in South Korea.

China has long promoted dialogue to resolve the “Korean nuclear issue” as North Korea has repeatedly threatened to destroy the United States which in turn has warned that “all options are on the table” in ending North Korean provocations.

The Trump administration said on Wednesday it aimed to push North Korea into dismantling its nuclear and missile programs, which are in violation of U.N. Security Council resolutions, through tougher international sanctions and diplomatic pressure.

“The United States seeks stability and the peaceful denuclearization of the Korean peninsula. We remain open to negotiations toward that goal. However, we remain prepared to defend ourselves and our allies,” it said in a statement.

Asked about the U.S. comments, Chinese Foreign Ministry spokesman Geng Shuang said China had noted that many U.S. officials had recently made such remarks.

“We have noted these expressions, and have noted the message conveyed in these expressions hoping to resolve the Korean nuclear issue peacefully through dialogue and consultation,” he said.

“We believe this message is positive and should be affirmed.”

South Korea and the United States agreed on Thursday on “swift punitive measures” against North Korea in the event of further provocation. The South also said the deployment of a U.S. anti-missile defense system was moving ahead effectively a day after angry protests against the battery and fierce opposition from China.

South Korea on Wednesday moved parts of the Terminal High Altitude Area Defense (THAAD) system to its deployment site on a golf course about 250 km (155 miles) south of the capital, Seoul, signaling a faster installation of the system.

Several hundred South Korean villagers protested near the site, hurling water bottles at vehicles moving the parts in.

CHINA AGAIN DENOUNCES THAAD

The top U.S. Commander in the Pacific, Admiral Harry Harris, said on Wednesday the THAAD system would be operational “in coming days” bolstering the ability to defend the U.S. ally and the 28,500 U.S. troops stationed there.

A photograph taken of the site showed a THAAD interceptor on the back of a mobile launcher erected and pointed skywards on green lawn as a military transport helicopter hovered nearby.

China says the system’s advanced radar can penetrate deep into its territory and undermine its security. It is adamant in its opposition.

“The deployment of the THAAD anti-missile system in South Korea damages the regional strategic balance and stability. The Chinese side is resolutely opposed to this,” Defence Ministry spokesman Yang Yujun told reporters.

“China’s military will continue to carry out live-fire military exercises and test new military equipment in order to firmly safeguard national security and regional peace and stability.”

U.S. Secretary of State Rex Tillerson, Defense Secretary Jim Mattis and Director of National Intelligence Dan Coats described North Korea on Wednesday as “an urgent national security threat and top foreign policy priority”.

The U.S. signal of a willingness to exhaust non-military avenues came as the USS Carl Vinson aircraft carrier group approached Korean waters, where it will join the USS Michigan nuclear submarine.

North Korea, which conducted its biggest ever artillery exercise to mark the 85th anniversary of its military’s creation on Tuesday, says it needs to develop weapons to defend itself from U.S. aggression.

A North Korean official speaking on CNN said the country would not be influenced by outside events.

“As long as America continues its hostile acts of aggression, we will never stop nuclear and missile tests,” said Sok Chol Won, director of the North’s Institute of Human Rights at the Academy of Social Sciences.

Moon Jae-in, the front-runner in South Korea’s May 9 presidential election, has called for a delay in THAAD deployment, saying a decision should be made after gathering public opinion and more talks with Washington.

(Additional reporting by Phil Stewart in WASHINGTON and Ben Blanchard in BEIJING; Writing by Jack Kim and Nick Macfie; Editing by Robert Birsel)