Tag Archives: Donald Trump

Kremlin says almost all dialogue with U.S. frozen: RIA

Kremlin spokesman

MOSCOW/WASHINGTON (Reuters) – The Kremlin said on Wednesday almost all communications channels between Russia and the United States have been frozen but the U.S. State Department disputed that statement.

Kremlin spokesman Dmitry Peskov said Russia did not expect the incoming U.S. administration to quickly reject enlargement of the North Atlantic Treaty Organization and that almost all communication with the United States had ceased, according to Russia’s RIA news agency.

U.S. President-elect Donald Trump questioned during his election campaign whether the U.S. should protect allies seen as spending too little on defense, raising fears he could withdraw funding for NATO at a time of heightened tensions with Moscow. Russia has said it would take countermeasures in response to any expansion of the 28-member military alliance.

“Almost every level of dialogue with the United States is frozen,” RIA quoted Peskov as saying. “We don’t communicate with one another, or (if we do) we do so minimally.”

State Department spokesman John Kirby quickly rejected Peskov’s statement.

‎”It’s difficult to know exactly what is meant by this comment, but diplomatic engagement with Russia continues across a wide range of issues,” Kirby said in an emailed statement to Reuters. “That we have significant differences with Moscow on some of these issues is well known, but there hasn’t been a break in dialogue.”

U.S. Secretary of State John Kerry and Russian Foreign Minister Sergei Lavrov spoke by phone on Tuesday regarding the situation in Syria, Kirby said.

Separately, the Pentagon said it had held a video conference with counterparts at the Russian defense ministry to ensure the two sides’ air operations do not come into conflict with each other in Syria. Such discussions with Russia are held regularly as U.S. warplanes conduct daily air strikes against Islamic State in Syria.

RIA, citing an interview it said Peskov gave to Russia’s Mir TV station, quoted him as saying he did not know whether President Vladimir Putin would seek re-election in 2018.

“Everyone’s heads are aching because of work and with projects and nobody is thinking or talking about elections,” Peskov said.

Most Kremlin-watchers expect Putin to run for the presidency again.

(Reporting by Peter Hobson in Moscow and Yeganeh Torbati and Lesley Wroughton in Washington; Editing by Andrew Osborn and Richard Chang)

Taiwan loses another ally, says won’t help China ties

Taiwan diplomats

By J.R. Wu and Ben Blanchard

TAIPEI/BEIJING (Reuters) – Taiwan accused China on Wednesday of using Sao Tome and Principe’s financial woes to push its “one China” policy after the West African state ended ties with the self-ruled island, with Taiwan saying China’s action would not help relations across the Taiwan Strait.

China’s claim to Taiwan have shot back into the spotlight since U.S. President-elect Donald Trump broke diplomatic protocol and spoke with Taiwan President Tsai Ing-wen this month, angering Beijing.

Trump has also questioned the “one China” policy which the United States has followed since establishing relations with Beijing in 1979, under which the United States acknowledges that Taiwan is part of China.

The election of Tsai from the pro-independence Democratic Progressive Party this year infuriated Beijing, which suspects she wants to push for the island’s formal independence, though she says she wants to maintain peace with China.

Taiwan Foreign Minister David Lee said Taipei would not engage in “dollar diplomacy” after Sao Tome’s decision.

“We think the Beijing government should not use Sao Tome’s financing black hole … as an opportunity to push its ‘one China’ principle,” Lee told a news conference in Taipei on Wednesday.

“This behavior is not helpful to a smooth cross-Strait relationship.”

Tsai held emergency meetings with cabinet officials and security advisers on Wednesday, and told her ministers:

“Foreign diplomacy is not a zero-sum game,” according to her office spokesman, Alex Huang.

Tsai’s office said in a statement China’s use of Sao Tome’s financial woes to push its “one China” policy would harm stability across the Taiwan Strait.

“This is absolutely not beneficial to the long-term development of cross-Strait relations,” it said.

China says Taiwan has no right to diplomatic recognition as it is part of China, and the issue is an extremely sensitive one for Beijing.

In Beijing, China welcomed Sao Tome’s decision, without explicitly saying it had established formal relations with the former Portuguese colony or making any mention of a request for financial aid.

“We have noted the statement from the government of Sao Tome and Principe on the 20th to break so-called ‘diplomatic’ ties with Taiwan. China expresses appreciation of this, and welcomes Sao Tome back onto the correct path of the ‘one China’ principle,” the foreign ministry said in a statement.

Ministry spokeswoman Hua Chunying declined to comment when asked when the two countries may exchange ambassadors, and dismissed a question on how much China may have offered Sao Tome to switch ties as being “very imaginative”.

Defeated Nationalist forces fled to Taiwan at the end of a civil war in 1949 and Beijing has never renounced the use of force to bring Taiwan under its control.

In Africa, only Burkina Faso and Swaziland now maintain formal ties with Taiwan. President Tsai will visit Central American allies Honduras, Nicaragua, Guatemala and El Salvador next month.

“We now have 21 allies left. We must cherish them,” Lee said.

China and Taiwan had for years tried to poach each other’s allies, often dangling generous aid packages in front of developing nations.

But they began an unofficial diplomatic truce after signing a series of landmark trade and economic agreements in 2008 following the election of the China-friendly Ma Ying-jeou as Taiwan’s president.

Sao Tome and Principe’s tiny island economy is heavily dependent on cocoa exports but its position in the middle of the oil-rich Gulf of Guinea has raised interest in its potential as a possible oil and gas producer.

Diplomatic sources in Beijing have previously said Sao Tome was likely high on China’s list of countries to lure away from Taiwan.

In 2013, Sao Tome said China planned to open a trade mission to promote projects there, 16 years after it broke off relations over Sao Tome’s diplomatic recognition of Taiwan.

(Editing by Lincoln Feast, Robert Birsel)

Dollar index holds near 14-year high

US Dollar

By Richard Leong

NEW YORK (Reuters) – The dollar was little changed on Monday versus a basket of currencies, holding near a 14-year peak buttressed by expectations of fiscal stimulus from U.S. President-elect Donald Trump and a faster pace of interest rate increases.

The greenback scaled back from its highest since early February against the yen as data that showed Japan’s export performance improved strongly in November spurred a burst of profit-taking.

The dollar, which has rallied since Trump’s win on Nov. 8, will likely trade in a tight range in coming days on dwindling liquidity, analysts said.

Profit-taking and lower U.S. Treasury yields <US2YT=RR> <US10YT=RR> would keep the greenback from rising further, they said.

“The dollar would be reasonably sideways between now and the end of the year,” said Jason Leinwand, founder and chief executive officer of FirstLine FX in Randolph, New Jersey.

The dollar index <.DXY> which measures the greenback versus the euro, yen and four other currencies, was up 0.03 percent at 102.98. On Dec. 15, it reached 103.56 which was its highest since Dec 2002.

Traders await a speech from Fed Chair Janet Yellen at 1:30 p.m. (1830 GMT) for possible hints that last week’s Fed meeting, where policy-makers signaled the central bank could increase interest rates three times in 2017, was interpreted by markets as more hawkish than had been intended. [FED/DIARY]

U.S. interest rates futures implied traders saw about a 46 percent chance the Fed would hike at least three times in 2017 with the next increase likely in June, according to CME Group’s FedWatch program. <FFM7> <FFZ7>

Prospects of more rate hikes supported bullish bets on the dollar. Data released on Friday showed dollar net long positions were little changed on Dec. 13. Net shorts on the yen rose to their largest since early December last year. [IMM/FX]

The Bank of Japan started a two-day policy meeting on Monday, at which it is expected to keep its 10-year government bond yield target <JP10YT=RR> as the weaker yen helps Japan’s economic prospects, a Reuters poll showed on Friday.

“The speed of the yen’s weakening was likely much faster than the BOJ anticipated,” said Ayako Sera, market economist at Sumitomo Mitsui Trust Bank in Tokyo.

The dollar was down almost 0.9 percent at 117.13 yen <JPY=> after climbing to 118.66 yen on Dec. 15 which was the highest since Feb. 2, according to Reuters data showed.

(In Dec 19 item, corrects spelling of last name to Leinwand, not Weinwand, in 5th paragraph)

(Additional reporting by Jemima Kelly in London and Tokyo markets team; Editing by Chizu Nomiyama)

U.S. ready to confront Beijing on South China Sea: admiral

Guided missile destroyer in South China Sea

By Colin Packham

SYDNEY (Reuters) – The United States is ready to confront China should it continue its overreaching maritime claims in the South China Sea, the head of the U.S. Pacific fleet said on Wednesday, comments that threaten to escalate tensions between the two global rivals.

China claims most of the resource-rich South China Sea through which about $5 trillion in ship-borne trade passes every year. Neighbors Brunei, Malaysia, the Philippines, Taiwan and Vietnam also have claims.

The United States has called on China to respect the findings of the arbitration court in The Hague earlier this year which invalidated its vast territorial claims in the strategic waterway.

But Beijing continues to act in an “aggressive” manner, to which the United States stands ready to respond, Admiral Harry Harris, head of the U.S. Pacific Command, said in a speech in Sydney.

“We will not allow a shared domain to be closed down unilaterally no matter how many bases are built on artificial features in the South China Sea,” he said. “We will cooperate when we can but we will be ready to confront when we must.”

The comments threaten to stoke tensions between the United States and China, already heightened by President-elect Donald Trump’s decision to accept a telephone call from Taiwan’s president on Dec. 2 that prompted a diplomatic protest from Beijing.

Asked about Harris’s remarks, Chinese Foreign Ministry spokesman Geng Shuang said the situation in the South China Sea was currently stable, thanks to the hard work of China and others in the region.

“We hope the United States can abide by its promises on not taking sides on the sovereignty dispute in the South China Sea, respect the efforts of countries in the region to maintain peace and stability in the South China Sea region and do more to promote peace and stability there,” he told a daily news briefing.

The United States estimates Beijing has added more than 3,200 acres (1,300 hectares) of land on seven features in the South China Sea over the past three years, building runways, ports, aircraft hangars and communications equipment.

In response, the United States has conducted a series of freedom-of-navigation operations in the South China Sea, the latest of which came in October.

The patrols have angered Beijing, with a senior Chinese official in July warning the practice may end in “disaster”.

Harris said it was a decision for the Australian government whether the U.S. ally should undertake its own freedom-of-navigation operations, but said the United States would continue with the practice.

“The U.S. fought its first war following our independence to ensure freedom of navigation,” said Harris. “This is an enduring principle and one of the reasons our forces stand ready to fight tonight.”

(Additional reporting by Ben Blanchard in Beijing; Editing by Lincoln Feast and Jacqueline Wong)

Exclusive: Top U.S. spy agency has not embraced CIA assessment on Russia hacking – sources

Padlock with the word hack, a representation of cyber attacks

By Mark Hosenball and Jonathan Landay

WASHINGTON (Reuters) – The overseers of the U.S. intelligence community have not embraced a CIA assessment that Russian cyber attacks were aimed at helping Republican President-elect Donald Trump win the 2016 election, three American officials said on Monday.

While the Office of the Director of National Intelligence (ODNI) does not dispute the CIA’s analysis of Russian hacking operations, it has not endorsed their assessment because of a lack of conclusive evidence that Moscow intended to boost Trump over Democratic opponent Hillary Clinton, said the officials, who declined to be named.

The position of the ODNI, which oversees the 17 agency-strong U.S. intelligence community, could give Trump fresh ammunition to dispute the CIA assessment, which he rejected as “ridiculous” in weekend remarks, and press his assertion that no evidence implicates Russia in the cyber attacks.

Trump’s rejection of the CIA’s judgment marks the latest in a string of disputes over Russia’s international conduct that have erupted between the president-elect and the intelligence community he will soon command.

An ODNI spokesman declined to comment on the issue.

“ODNI is not arguing that the agency (CIA) is wrong, only that they can’t prove intent,” said one of the three U.S. officials. “Of course they can’t, absent agents in on the decision-making in Moscow.”

The Federal Bureau of Investigation, whose evidentiary standards require it to make cases that can stand up in court, declined to accept the CIA’s analysis – a deductive assessment of the available intelligence – for the same reason, the three officials said.

The ODNI, headed by James Clapper, was established after the Sept. 11, 2001, attacks on the recommendation of the commission that investigated the attacks. The commission, which identified major intelligence failures, recommended the office’s creation to improve coordination among U.S. intelligence agencies.

In October, the U.S. government formally accused Russia of a campaign of cyber attacks against American political organizations ahead of the Nov. 8 presidential election. Democratic President Barack Obama has said he warned Russian President Vladimir Putin about consequences for the attacks.

Reports of the assessment by the CIA, which has not publicly disclosed its findings, have prompted congressional leaders to call for an investigation.

Obama last week ordered intelligence agencies to review the cyber attacks and foreign intervention in the presidential election and to deliver a report before he turns power over to Trump on Jan. 20.

The CIA assessed after the election that the attacks on political organizations were aimed at swaying the vote for Trump because the targeting of Republican organizations diminished toward the end of the summer and focused on Democratic groups, a senior U.S. official told Reuters on Friday.

Moreover, only materials filched from Democratic groups – such as emails stolen from John Podesta, the Clinton campaign chairman – were made public via WikiLeaks, the anti-secrecy organization, and other outlets, U.S. officials said.

“THIN REED”

The CIA conclusion was a “judgment based on the fact that Russian entities hacked both Democrats and Republicans and only the Democratic information was leaked,” one of the three officials said on Monday.

“(It was) a thin reed upon which to base an analytical judgment,” the official added.

Republican Senator John McCain said on Monday there was “no information” that Russian hacking of American political organizations was aimed at swaying the outcome of the election.

“It’s obvious that the Russians hacked into our campaigns,” McCain said. “But there is no information that they were intending to affect the outcome of our election and that’s why we need a congressional investigation,” he told Reuters.

McCain questioned an assertion made on Sunday by Republican National Committee Chairman Reince Priebus, tapped by Trump to be his White House chief of staff, that there were no hacks of computers belonging to Republican organizations.

“Actually, because Mr. Priebus said that doesn’t mean it’s true,” said McCain. “We need a thorough investigation of it, whether both (Democratic and Republican organizations) were hacked into, what the Russian intentions were. We cannot draw a conclusion yet. That’s why we need a thorough investigation.”

In an angry letter sent to ODNI chief Clapper on Monday, House Intelligence Committee Chairman Devin Nunes said he was “dismayed” that the top U.S. intelligence official had not informed the panel of the CIA’s analysis and the difference between its judgment and the FBI’s assessment.

Noting that Clapper in November testified that intelligence agencies lacked strong evidence linking Russian cyber attacks to the WikiLeaks disclosures, Nunes asked that Clapper, together with CIA and FBI counterparts, brief the panel by Friday on the latest intelligence assessment of Russian hacking during the election campaign.

(Editing by Yara Bayoumy and Jonathan Oatis)

U.S. court puts Obamacare case on hold until Trump takes office

President-elect Donald Trump

By Lawrence Hurley

WASHINGTON (Reuters) – A federal appeals court on Monday brought to an end President Barack Obama’s bid to overturn a ruling that threatens to gut his signature healthcare law by putting the case on hold until after President-elect Donald Trump, who aims to repeal Obamacare, takes office.

The Obama administration had appealed a judge’s May ruling favoring the challenge filed by Republicans in the U.S. House of Representatives against a key part of the 2010 law. But the U.S. Court of Appeals for the District of Columbia Circuit agreed to a request by the Republicans to delay its consideration of the government’s appeal until after Trump takes office on Jan. 20.

The Obama administration opposed the move.

If the law is repealed by Congress, the case would be moot. The court’s decision to put the case on hold will not have an immediate effect on the law, as the lower court ruling was put on hold pending the appeal. The court said both sides should provide an update on the status of the case by Feb. 21.

The challenge targeted government reimbursements to insurance companies to compensate them for reductions that the law required them to make to customers’ out-of-pocket medical payments.

Trump has said he favors repealing and replacing Obamacare but would consider retaining certain elements.

The law has enabled millions of previously uninsured Americans to obtain health insurance, but Republicans condemn Obamacare as a government overreach and have mounted a series of legal challenges.

The Obama administration appealed U.S. District Judge Rosemary Collyer’s ruling that the government cannot spend billions of dollars in federal funds without congressional approval to provide subsidies under the healthcare law to private insurers to help people afford medical coverage.

The House Republicans argued that the administration violated the U.S. Constitution because it is the legislative branch, not the executive branch, that authorizes government spending.

The Obama administration has interpreted the provision as a type of federal spending that does not need to be explicitly authorized by Congress.

The U.S. Supreme Court in 2012 and 2015 issued major rulings authored by conservative Chief Justice John Roberts that preserved Obamacare and rejected conservative challenges.

(Reporting by Lawrence Hurley; Editing by Will Dunham)

With Dakota denial, outlook for U.S. pipelines turns murky

People celebrate the temporary win of the North Dakota Pipeline

By Liz Hampton

HOUSTON (Reuters) – The U.S. Army’s denial of an easement for the Dakota Access Pipeline, after permitting and legal obligations were followed, sets an uncertain precedent for new projects despite President-elect Donald Trump’s promise to support energy infrastructure.

The decision came after months of protests by the Standing Rock Sioux tribe and others who said the line could desecrate tribal grounds, or a spill could contaminate drinking water.

While most of the 1,172-mile (1,885-km) pipeline is complete, Energy Transfer Partners, the line’s owner, needed an easement from the U.S. Army Corps of Engineers (USACE) to drill under Lake Oahe. The lake, a water source formed by a dam on the Missouri River, has been the focus of protesters.

The Army’s intervention sets an unsettling precedent, analysts and industry groups told Reuters, because Energy Transfer had undergone the necessary environmental reviews and permitting processes to move ahead with construction.

“I think it sends a horrible signal to anyone wanting to invest in a project and I strongly suspect those policies will be discontinued on Jan. 20th,” said Brigham McCown, the former head of the U.S. Pipeline and Hazardous Materials Safety Administration (PHMSA) under George W. Bush, referring to the inauguration of President-elect Donald Trump.

Still, the decision to deny the easement tempers some of the optimism pipeline companies assumed following the election of Trump, who is seen as more supportive of oil and gas projects.

Energy Transfer Partners said in a statement the decision was politically motivated and it did not intend to reroute the line.

(For graphic on the Dakota Access Pipeline, click http://tmsnrt.rs/2cqkRJ7)

DELAYS &amp; RISING COSTS

Beyond the federal approval issues, state and local governments have also mobilized against pipelines. Earlier this year, Georgia’s state legislature passed a bill to restrict pipeline developments, stopping a gasoline line from Florida to South Carolina from being built.

Energy Transfer chief executive Kelcy Warren, a donor to Trump’s campaign, said his election was a positive. Last week Trump for the first time voiced support for the Dakota Access project.

Trump has also said he would support TransCanada Corp’s Keystone XL, which the Obama Administration rejected last year.

Denying permits for an already-approved pipeline adds a new level of uncertainty to projects. Oil companies have already been facing growing resistance from environmental groups that have resulted in delays or unanticipated costs.

Equipment used for the Dakota Access line has been set on fire, and in October, a group of protesters turned off valves on pipelines transporting oil from Canada to the United States. Together, those lines had capacity to move some 2.8 million barrels per day of oil.

“Until you see that Trump has a track record of approving things and showing that things can get built in time, it’s tough to say it’s not a murky environment for pipelines,” said Sarp Ozkan, manager of energy analytics for Drillinginfo.

That means pipelines could face higher risk premiums and have a harder time getting volume commitments from shippers that underpin such projects, Ozkan said.

Energy Transfer has said it expects to lose almost $84 million each month the Dakota Access pipeline is delayed, and that losing shippers could result in its cancellation, according to a court filing.

“I think midstream companies will hope that each project can be decided based on necessary permitting approvals, but there will be increased risk where agencies like USACE are involved,” said Sandy Fielden, director of research in commodities and energy at Morningstar.

While the Standing Rock Sioux have said they would support a rerouting of the line, others, such as the Indigenous Environmental Network (IEN), want it canceled.

“Given Trump’s support of the Dakota Access, and the Keystone XL, we remain cautious,” said Dallas Goldtooth, a spokesman for IEN.

(Reporting by Liz Hampton in Houston; Editing by Tom Hogue)

Netanyahu to discuss ‘bad’ Iran deal with Trump, Kerry stresses settlements

Benjamin Netanyahu

By Jeffrey Heller and Arshad Mohammed

JERUSALEM/WASHINGTON (Reuters) – Israeli Prime Minister Benjamin Netanyahu said on Sunday he would discuss with Donald Trump the West’s “bad” nuclear deal with Iran after the U.S. president-elect enters the White House.

Speaking separately to a conference in Washington, Netanyahu and U.S. Secretary of State John Kerry clashed over the Iran deal and Israel’s settlement construction on the occupied West Bank, which Kerry depicted as an obstacle to peace.

During the U.S. election campaign, Trump, a Republican, called last year’s nuclear pact a “disaster” and “the worst deal ever negotiated”. He has also said it would be hard to overturn an agreement enshrined in a U.N. resolution.

“Israel is committed to preventing Iran from acquiring nuclear weapons. That has not changed and will not change. As far as President-elect Trump, I look forward to speaking to him about what to do about this bad deal,” Netanyahu told the Saban Forum, a conference on the Middle East, in Washington, via satellite from Jerusalem. Trump takes office on Jan. 20.

Netanyahu has been a harsh critic of the nuclear deal, a legacy foreign policy achievement for Democratic President Barack Obama. But he had largely refrained from attacking the pact in recent months as Israeli and U.S. negotiators finalised a 10-year, $38 billion military aid package for Israel.

Before the nuclear agreement, Netanyahu, a conservative, strained relations with the White House by addressing the U.S. Congress in 2015 and cautioning against agreeing to the pact.

The Obama administration promoted the deal as a way to suspend Tehran’s suspected drive to develop atomic weapons. In return, Obama agreed to lift most sanctions against Iran. Tehran denies ever having considered developing nuclear arms.

Under the deal, Iran committed to reducing the number of its centrifuges by two-thirds, capping its level of uranium enrichment well below the level needed for bomb-grade material, reducing its enriched uranium stockpile from around 10,000 kg to 300 kg for 15 years, and submitting to international inspections to verify its compliance.

“The problem isn’t so much that Iran will break the deal, but that Iran will keep it because it just can walk in within a decade, and even less … to industrial-scale enrichment of uranium to make the core of an arsenal of nuclear weapons,” Netanyahu told the forum.

‘NO, NO, NO AND NO’

Appearing later in person, Kerry defended the deal, arguing its monitoring provisions provided the ability to detect any significant uptick in Iran’s nuclear programs, “in which case every option that we have today is available to us then.”

Kerry pushed Israel to rein in construction of Jewish settlements on West Bank land it occupied in a 1967 war that the Palestinians want for a state. He also bluntly rejected the idea advanced by some Israelis that Israel might make a separate peace with Arab nations that share its concerns about Iran.

“No, no, no and no,” Kerry said. “There will be no advance and separate peace with the Arab world without the Palestinian process and Palestinian peace.”

On settlements, Kerry said: “There’s a basic choice that has to be made by Israelis … and that is, are there going to be continued settlements … or is there going to be separation and the creation of two states?”

The central issues to be resolved in the conflict include borders between Israel and a future Palestinian state, the future of Jewish settlements in the West Bank, which most nations regard as illegal, the fate of Palestinian refugees and the status of Jerusalem.

(Additional reporting by Larry King; Editing by Peter Cooney)

Obama, trying to protect legacy, unlikely to act on Mideast peace

President Obama and Benjamin Netanyahu

By Arshad Mohammed and Matt Spetalnick

WASHINGTON (Reuters) – U.S. President Barack Obama, keen to preserve his legacy on domestic health care and the Iran nuclear deal, is not expected to make major moves on Israeli-Palestinian peace before leaving office, U.S. officials said on Thursday.

One official, who spoke on condition of anonymity, said the last word on the president’s failed peace effort might come from Secretary of State John Kerry at an appearance on Sunday at an annual Middle East conference in Washington.

Obama’s aides are wary of being seen picking a fight with Donald Trump at a time when he hopes to persuade the Republican President-elect to preserve parts of his legacy, including the Iran nuclear deal, Obamacare and the opening to Cuba.

While Obama has yet to present his final decision, several officials said he had given no sign that he intended to go against the consensus of his top advisers, who have mostly urged him not to take dramatic steps, a second official said.

“There is no evidence that there is any muscle behind (doing) anything,” said a third official.

Putting new pressure on Israel could be seen as a vindictive parting shot by Obama at Israeli Prime Minister Benjamin Netanyahu, the first official said, noting they have had a testy relationship.

There is concern that Trump, in response, might over-react in trying to demonstrate his own pro-Israel credentials, for example by moving the U.S. Embassy to Jerusalem from Tel Aviv, a step that would enrage Palestinians and create an international furor.

Officials said Obama has weighed enshrining his own outline for a deal in a U.N. Security Council resolution that would live on after he gives way to Trump on Jan. 20. Another idea was to give a speech laying out such parameters.

These options appear to have lost steam.

Kerry, who led the last round of peace talks that collapsed in 2014, appears on Sunday at the Saban Forum conference of U.S., Israeli and Arab officials.

Officials could not rule out that Obama might also talk about Israeli-Palestinian diplomacy before he leaves office. The White House and the Israeli embassy declined comment.

The central issues to be resolved in the conflict include borders between Israel and a future Palestinian state, the fate of Jewish settlements in the West Bank, which most nations regard as illegal, the fate of Palestinian refugees and the status of Jerusalem.

Israeli officials remain concerned that Obama and his aides have not explicitly ruled out some kind of last-ditch U.S. action, either at the United Nations or in another public forum.

U.S. officials said Obama could also have his hand forced, notably if another nation like France put forward a U.N. Security Council resolution condemning Israeli settlement activity as illegal or illegitimate, daring Washington to veto it as it did a similar French-proposed resolution in 2011.

U.S. ambassador to Israel Dan Shapiro, asked if Washington would again veto a French proposal, told Israel’s Army Radio: “We will always oppose unilateral proposals.”

He added: “If there is something more balanced, I cannot guess what the response will be.”

(Additional reporting by Jeffrey Heller in Jerusalem; Editing by Yara Bayoumy and James Dalgleish)

FBI to gain expanded hacking powers as Senate effort to block fails

Password on Computer Screen

By Dustin Volz

WASHINGTON (Reuters) – A last-ditch effort in the Senate to block or delay rule changes that would expand the U.S. government’s hacking powers failed Wednesday, despite concerns the changes would jeopardize the privacy rights of innocent Americans and risk possible abuse by the incoming administration of President-elect Donald Trump.

Democratic Senator Ron Wyden attempted three times to delay the changes, which will take effect on Thursday and allow U.S. judges will be able to issue search warrants that give the FBI the authority to remotely access computers in any jurisdiction, potentially even overseas. His efforts were blocked by Senator John Cornyn of Texas, the Senate’s second-ranking Republican.

The changes will allow judges to issue warrants in cases when a suspect uses anonymizing technology to conceal the location of his or her computer or for an investigation into a network of hacked or infected computers, such as a botnet.

Magistrate judges can currently only order searches within the jurisdiction of their court, which is typically limited to a few counties.

In a speech from the Senate floor, Wyden said that the changes to Rule 41 of the federal rules of criminal procedure amounted to “one of the biggest mistakes in surveillance policy in years.”

The government will have “unprecedented authority to hack into Americans’ personal phones, computers and other devices,” Wyden said.

He added that such authority, which was approved by the Supreme Court in a private vote earlier this year, but was not subject to congressional approval, was especially troubling in the hands of an administration of President-elect Trump, a Republican who has “openly said he wants the power to hack his political opponents the same way Russia does.”

Democratic Senator Chris Coons of Delaware and Republican Senator Steve Daines of Montana also delivered speeches voicing opposition to the rule changes.

The U.S. Justice Department has pushed for the changes to the federal rules of criminal procedure for years, arguing they are procedural in nature and the criminal code needed to be modernized for the digital age.

In an effort to address concerns, U.S. Assistant Attorney General Leslie Caldwell wrote a blog post this week arguing that the benefits given to authorities from the rule changes outweighed any potential for “unintended harm.”

“The possibility of such harm must be balanced against the very real and ongoing harms perpetrated by criminals – such as hackers, who continue to harm the security and invade the privacy of Americans through an ongoing botnet, or pedophiles who openly and brazenly discuss their plans to sexually assault children,” Caldwell wrote.

A handful of judges in recent months had dismissed evidence brought as part of a sweeping FBI child pornography sting, saying the search warrants used to hack suspects’ computers exceeded their jurisdiction.

The new rules are expected to make such searches generally valid.

Blocking the changes would have required legislation to pass both houses of Congress, then be signed into law by the president.

(Reporting by Dustin Volz, editing by G Crosse)