Tag Archives: Japan

Record number of U.S. Marines to train in Australia in symbolic challenge to China

FILE PHOTO - U.S. Marines aboard the USS Bonhomme Richard amphibious assault ship stand in formation during a ceremony marking the start of Talisman Saber 2017, a biennial joint military exercise between the United States and Australia aboard the USS Bonhomme Richard amphibious assault ship on the the Pacific Ocean off the coast of Sydney, Australia, June 29, 2017. REUTERS/Jason Reed/File Photo

By Colin Packham

SYDNEY (Reuters) – The United States will deploy a record number of Marines to train in Australia, the Australian defense minister said on Friday, as Washington seeks to counter what it describes as Chinese aggression in the region.

Payne said 1,587 U.S. Marines will spend six months training in Australia’s remote north, an increase of nearly 27 percent on its 2017 rotation for the program known as the Force Posture Initiatives.

“The U.S. military plays a vital role in underwriting security and stability across the Indo-Pacific, and the Force Posture Initiatives will be an essential component in preserving stability and security over the coming decades,” Defence Minister Marise Payne said in a statement.

The deployment, first introduced in 2011 as part of a U.S. “pivot” to Asia, has emerged as a key indicator of Washington’s commitment to the region under U.S. President Donald Trump and his willingness to counter Chinese influence in a region where tensions have spiked amid disputes over the South China Sea.

China claims most of the South China Sea, an important trade route that is also believed to contain large quantities of oil and natural gas, and has been building artificial islands on reefs, some with ports and air strips.

In a move likely to irk Beijing, the U.S. Marines will train with personnel from Australia, Indonesia, Japan, Malaysia, the Philippines, Singapore and Thailand, some of which also have claims in the South China Sea.

“China will monitor whatever the U.S. does and it would prefer that the United States not work with the Asian countries included in these exercises,” said Euan Graham, director of the international security program at Australian think tank the Lowy Institute.

“Beijing would like to deal one-on-one with Southeast Asia nations that have counter claims,” he said.

The U.S. Marines will also bring additional military equipment, including helicopters and F-18 jets, Payne said.

The military deployment also threatens to further weaken Australia-Chinese relations.

Australia, a staunch U.S. ally with no claim to the South China Sea, has long maintained its neutrality in the dispute to protect its economic relationship with China.

But bilateral relations have soured in recent months after Australian Prime Minister Malcolm Turnbull said China was improperly interfering in Canberra’s affairs, an accusation that triggered a rare protest from Beijing.

(Reporting by Colin Packham; Editing by Paul Tait)

Security advisers from U.S., South Korea, Japan meet on North Korean summits: Seoul

FILE PHOTO: Shotaro Yachi speaks with Chinese State Councillor Yang Jiechi (not pictured) during a meeting at the Diaoyutai State Guesthouse in Beijing, China, August 25, 2016. REUTERS/Wu Hong/Pool

By Joyce Lee

SEOUL (Reuters) – The top national security advisers of the United States, South Korea and Japan met at the weekend to discuss North Korea and the “complete denuclearization of the Korean peninsula”, South Korea’s presidential Blue House said on Monday.

The two days of meetings could also help prepare the way for a possible meeting between U.S. President Donald Trump and North Korean leader Kim Jong Un.

They were the latest in a flurry of diplomatic activity spanning Asia, the United States and Europe ahead of North Korea’s planned summits with the South and the United States.

South Korea’s National Security Office chief Chung Eui-yong met U.S. National Security Adviser H.R. McMaster and Japan’s National Security Adviser Shotaro Yachi to discuss summit meetings between Kim and South Korean President Moon Jae-in, the Blue House in Seoul said.

They also discussed the possible meeting between Trump and Kim, it said.

The security advisers from the three countries discussed the “complete denuclearization of the Korean peninsula”, agreed that “it was important to not repeat the mistakes of the past” and to work together closely, the Blue House said.

A senior North Korean diplomat left for Finland on Sunday for talks with former U.S. and South Korean officials, South Korea’s Yonhap News Agency reported.

That followed three days of talks between North Korean and Swedish foreign ministers on security on the Korean peninsula.

Sweden “engaged heavily” on the issue of U.S. detainees during the talks between North Korean and Swedish foreign ministers, CNN reported on Sunday, citing unidentified sources with knowledge of the negotiations.

North Korea is pursuing its nuclear and missile programs in defiance of U.N. Security Council sanctions and has made no secret of its plans to develop a missile capable of hitting the U.S. mainland.

(Reporting by Joyce Lee; Editing by Sandra Maler and Paul Tait)

Japan, South Korea agree to maintain ‘maximum pressure’ on North Korea: minister

South Korea's National Intelligence Service chief Suh Hoon (L) and Japan's Foreign Minister Taro Kono (2-R) at the start of their meeting at the Iikura Guest House in Tokyo, Japan, 12 March 2018. REUTERS/Franck Robichon/Pool

TOKYO (Reuters) – Japan and South Korea agreed on Monday that maximum pressure must be maintained on North Korea until it takes concrete action toward addressing concerns about its nuclear weapon and missile programs, Japan’s foreign minister said.

“Japan and South Korea agreed we will continue to apply maximum pressure on North Korea until it results in concrete action,” the minister, Taro Kono, told reporters, after talks with South Korean National Intelligence Service chief Suh Hoon.

Kono declined to say what that concrete action should be or whether Japan had softened its position on action as a prerequisite for talks.

U.S. President Donald Trump has agreed to meet North Korean leader Kim Jong Un by the end of May. South Korea’s President Moon Jae-in also plans a summit with Kim by the end of April.

Kono also said Japan would be willing to provide money for International Atomic Energy Agency inspections if needed.

He said Japan would work closely with the United States and South Korea including on solving the issue of Japanese citizens abducted in the past by North Korea.

(Reporting by Tim Kelly; Editing by Robert Birsel)

Trump says prepared to meet North Korea’s Kim in first-ever such parley

FILE PHOTO - A combination photo shows a Korean Central News Agency (KCNA) handout of Kim Jong Un released on May 10, 2016, and Donald Trump posing for a photo in New York City, U.S., May 17, 2016. REUTERS/KCNA handout via Reuters/File Photo & REUTERS/Lucas Jackson/File Photo

By Christine Kim and Steve Holland

SEOUL/WASHINGTON (Reuters) – U.S. President Donald Trump said he was prepared to meet North Korea’s Kim Jong Un in what would be the first face-to-face encounter between leaders from the two countries and could mark a breakthrough in a standoff over the North’s nuclear weapons.

Kim had “committed to denuclearization” and to suspending nuclear and missile tests, South Korea’s National Security Office head Chung Eui-yong told reporters at the White House on Thursday after briefing Trump on a meeting South Korean officials held with Kim earlier this week.

Kim and Trump have engaged in an increasingly bellicose exchange of insults over the North’s nuclear and missile programs, which it pursues in defiance of U.N. Security Council resolutions, before an easing of tension coinciding with last month’s Winter Olympics in the South.

“A meeting is being planned,” Trump said on Twitter after speaking to Chung, setting up what would be his biggest foreign policy gamble since taking office in January 2017.

Chung said Trump agreed to meet by May in response to Kim’s invitation. A senior U.S. official said later it could happen “in a matter of a couple of months, with the exact timing and place still to be determined.”

Both Russia and China, who joined years of on-again, off-again “six-party” talks, along with the United States, the two Koreas and Japan, aimed at ending the standoff, welcomed the new, positive signals after months of deteriorating relations between North Korea and the United States.

Trump has derided the North Korean leader as a “maniac,” referred to him as “little rocket man” and threatened in a speech to the United Nations last year to “totally destroy” Kim’s country of 26 million people if it attacked the United States or one of its allies.

Kim responded by calling the U.S. president a “mentally deranged U.S. dotard.”

South Korean President Moon Jae-In, who led the pursuit of detente with North Korea during his country’s hosting of the Winter Olympics, said the summit would set a course for denuclearization, according to a presidential spokesman. Trump had agreed to meet Kim without any preconditions, another South Korean official said.

Asian stock markets rose on the news, with Japan’s Nikkei <.N225> ending up 0.5 percent and South Korean stocks <.KS11> more than 1 percent higher. The dollar also rose against the safe-haven Japanese yen <JPY=>. U.S. stock index futures were little changed ahead of the market’s open Friday morning. [MKTS/GLOB]

“It’s good news, no doubt,” said Hong Chun-Uk, chief economist at Kiwoom Securities in Seoul. “But this will likely prove to be only a short-lived factor unless more and stronger actions follow.”

Trump had previously said he was willing to meet Kim under the right circumstances but had indicated the time was not right for such talks. He mocked U.S. Secretary of State Rex Tillerson in October for “wasting his time” trying to talk to North Korea.

Tillerson said earlier on Thursday during a visit to Africa that, although “talks about talks” might be possible with Pyongyang, denuclearization negotiations were likely a long way off.

‘NO MISSILE TESTS’

“Kim Jong Un talked about denuclearization with the South Korean Representatives, not just a freeze,” Trump said on Twitter on Thursday night. “Also, no missile testing by North Korea during this period of time. Great progress being made but sanctions will remain until an agreement is reached.”

A meeting between Kim and Trump, whose exchange of insults had raised fear of war, would be a major turnaround after a year in which North Korea has carried out a battery of tests aimed at developing a nuclear-tipped missile capable of hitting the U.S. mainland.

Trump’s aides have been wary of North Korea’s diplomatic overtures because of its history of reneging on international commitments and the failure of efforts on disarmament by previous U.S. administrations.

South Koreans responded positively to the news, with online comments congratulating Moon for laying the groundwork for the Trump-Kim talks. Some even suggested Moon should receive the Nobel Peace prize, although scepticism over previous failed talks remained.

North and South Korea, where the United Sates stations 28,500 troops, are technically still at war after their 1950-53 conflict ended in a ceasefire, not a truce.

‘IT MADE SENSE’

Daniel Russel, until last April the assistant secretary of state for East Asia and the Pacific, the most senior U.S. diplomatic position for Asia, said he wanted to see detail and hear from North Korea on the plans.

“Also remember that (North Korea) has for many years proposed that the president of the United States personally engage with North Korea’s leaders as an equal – one nuclear power to another,” he said. “What is new isn’t the proposal, it’s the response.”

A senior administration official told Reuters that Trump agreed to the meeting because it “made sense to accept an invitation to meet with the one person who can actually make decisions instead of repeating the sort of long slog of the past”.

“President Trump has made his reputation on making deals,” the official said.

Republican U.S. Senator Lindsey Graham said Trump’s firm stance on North Korea gave the best hope in decades to resolve the threat peacefully.

“A word of warning to North Korean President Kim Jong Un – the worst possible thing you can do is meet with President Trump in person and try to play him,” Graham said on Twitter. “If you do that, it will be the end of you – and your regime.”

Some U.S. officials and experts worry North Korea could buy time to build up and refine its nuclear arsenal if it drags out talks with Washington.

‘TANGIBLE STEPS’

In what would be a key North Korean concession, Chung, the South Korean official, said Kim understood that “routine” joint military exercises between South Korea and the United States must continue.

Pyongyang had previously demanded that such joint drills, which it has said it sees as a preparation for invasion, be suspended in order for any U.S. talks to go forward.

Tensions over North Korea rose to their highest in years in 2017 and the Trump administration warned that all options were on the table, including military ones, in dealing with Pyongyang.

Signs of a thaw emerged this year, with North and South Korea resuming talks and North Korea attending the Winter Olympics. During the Pyongyang talks this week, the two Koreas agreed on a summit in late April, their first since 2007.

Japan, however, remained cautious.

Japanese Prime Minister Shinzo Abe and Trump, in a call on Thursday, vowed to continue to enforce sanctions until Pyongyang took “tangible steps … toward denuclearization,” the White House said in a statement late Thursday.

“Japan and the United States will not waver in their firm stance that they will continue to put maximum pressure until North Korea takes concrete action towards the complete, verifiable and irreversible end to nuclear missile development,” Abe told reporters in Tokyo.

(Reporting by Christine Kim in SEOUL, and Jeff Mason, David Brunnstrom, Matt Spetalnick, Steve Holland, Yara Bayoumy and John Walcott in WASHINGTON; Additional reporting by Eric Beech, Mohammad Zargham, Susan Cornwell and Susan Heavey in WASHINGTON, and Kaori Kaneko in TOKYO; Writing by Lincoln Feast; Editing by Paul Tait and Nick Macfie)

Seven years after tsunami, Japanese live uneasily with seawalls

A bus is driven past a seawall in Yamada village, Iwate Prefecture, Japan, March 3, 2018. REUTERS/Kim Kyung-Hoon

By Megumi Lim

RIKUZENTAKATA, Japan (Reuters) – When a massive earthquake struck in 2011, Japanese oyster fisherman Atsushi Fujita was working as usual by the sea. Soon after, a huge black wave slammed into his city and killed nearly 2,000 people.

Seven years on, Fujita and thousands like him along Japan’s northeast coast have rebuilt their lives alongside huge sea walls that experts say will protect them if another giant tsunami, which some see as inevitable in a seismically active nation like Japan, was to strike.

A high wave hits a seawall in Tanohata village, Iwate Prefecture, Japan, March 1, 2018. REUTERS/Kim Kyung-Hoon

A high wave hits a seawall in Tanohata village, Iwate Prefecture, Japan, March 1, 2018. REUTERS/Kim Kyung-Hoon

The 12.5-metre (41-ft) concrete wall replaced a 4-metre breakwater that was swamped in the March 11, 2011 disaster. The earthquake and tsunami, which reached as high as 30 meters in some areas, killed nearly 18,000 people across Japan and triggered a nuclear meltdown at the Fukushima power plant.

“It feels like we’re in jail, even though we haven’t done anything bad,” the 52-year-old Fujita said.

Since the disaster, some towns have forbidden construction in flat areas nearest the coast and have relocated residents to higher land. Others, such as Rikuzentakata, have raised the level of their land by several meters before constructing new buildings.

A common thread, though, is the construction of seawalls to replace breakwaters that were overwhelmed by the tsunami. Some 395 km (245 miles) of walls have been built at a cost of 1.35 trillion yen ($12.74 billion).

“The seawalls will halt tsunamis and prevent them from inundating the land,” said Hiroyasu Kawai, researcher at the Port and Airport Research Institute in Yokosuka, near Tokyo.

“Even if the tsunami is bigger than the wall, the wall will delay flooding and guarantee more time for evacuation.”

Residential houses and commercial buildings stand behind a seawall at a port in Miyako, Iwate Prefecture, Japan, March 2, 2018. REUTERS/Kim Kyung-Hoon

Residential houses and commercial buildings stand behind a seawall at a port in Miyako, Iwate Prefecture, Japan, March 2, 2018. REUTERS/Kim Kyung-Hoon

ADJUSTING

Many residents initially welcomed the idea of the walls but have become more critical over time. Some say they were not consulted enough in the planning stages or that money spent on the walls has meant that other rebuilding, such as housing, has fallen behind.

Others worry the walls will damage tourism.

“About 50 years ago, we came up here with the kids and enjoyed drives along the beautiful ocean and bays,” said Reiko Iijima, a tourist from central Japan, who was eating at an oyster restaurant across from the seawall.

“Now, there’s not even a trace of that.”

Part of a wall in the city of Kesennuma, further south, has windows in it – but these, too, draw complaints.

“They’re a parody,” said Yuichiro Ito, who lost his home and younger brother in the tsunami. “It’s just to keep us happy with something we never wanted in the first place.”

A fishing boat is seen through a window of a seawall at a port in Miyako, Iwate Prefecture, Japan, March 2, 2018. REUTERS/Kim Kyung-Hoon

A fishing boat is seen through a window of a seawall at a port in Miyako, Iwate Prefecture, Japan, March 2, 2018. REUTERS/Kim Kyung-Hoon

Fisherman Fujita said that while the tsunami had improved oyster farming in the area by stirring up sea floors and removing accumulated sludge, the sea walls could block natural water flows from the land and impact future production.

Many municipalities said the giant walls had to be in place before permission could be granted for reconstruction elsewhere.

“I can’t say things like ‘the wall should be lower’ or ‘we don’t need it,'” said Katsuhiro Hatakeyama, who has rebuilt his bed and breakfast business in the same location as before. “It’s thanks to the wall that I could rebuild, and now have a job.”

But many find the wall hard to adjust to.

“Everyone here has lived with the sea, through generations,” said Sotaro Usui, head of a tuna supply company. “The wall keeps us apart – and that’s unbearable.”

(Additional reporting by Kim Kyung-hoon, Writing by Elaine Lies; Editing by Karishma Singh and Neil Fullick)

Tepco’s ‘ice wall’ fails to freeze Fukushima’s toxic water buildup

By Aaron Sheldrick and Malcolm Foster

OKUMA, Japan (Reuters) – A costly “ice wall” is failing to keep groundwater from seeping into the stricken Fukushima Dai-ichi nuclear plant, data from operator Tokyo Electric Power Co shows, preventing it from removing radioactive melted fuel at the site seven years after the disaster.

When the ice wall was announced in 2013, Tepco assured skeptics that it would limit the flow of groundwater into the plant’s basements, where it mixes with highly radioactive debris from the site’s reactors, to “nearly nothing.”

However, since the ice wall became fully operational at the end of August, an average of 141 metric tonnes a day of water has seeped into the reactor and turbine areas, more than the average of 132 metric tonnes a day during the prior nine months, a Reuters analysis of the Tepco data showed.

The groundwater seepage has delayed Tepco’s clean-up at the site and may undermine the entire decommissioning process for the plant, which was battered by a tsunami seven years ago this Sunday. Waves knocked out power and triggered meltdowns at three of the site’s six reactors that spewed radiation, forcing 160,000 residents to flee, many of whom have not returned to this once-fertile coast.

Though called an ice wall, Tepco has attempted to create something more like a frozen soil barrier.

Using 34.5 billion yen ($324 million) in public funds, Tepco sunk about 1,500 tubes filled with brine to a depth of 30 meters (100 feet) in a 1.5-kilometre (1-mile) perimeter around four of the plant’s reactors. It then cools the brine to minus 30 degrees Celsius (minus 22 Fahrenheit).

The aim is to freeze the soil into a solid mass that blocks groundwater flowing from the hills west of the plant to the coast.

However, the continuing seepage has created vast amounts of toxic water that Tepco must pump out, decontaminate and store in tanks at Fukushima that now number 1,000, holding 1 million tonnes. It says it will run out of space by early 2021.

“I believe the ice wall was ‘oversold’ in that it would solve all the release and storage concerns,” said Dale Klein, the former chairman of the U.S. Nuclear Regulatory Commission and the head of an external committee advising Tepco on safety issues.

“The hydrology of the Fukushima site is very complicated and thus the exact water flow is hard to predict,” he said, “especially during heavy rains.”

TYPHOON

The water inflows often fluctuate with rainfall. The dry month of January averaged 83 tons a day, Tepco data showed.

But when a typhoon struck during the last week of October, 866 tons a day poured into the reactors.

Overall, Tepco says a combination of drains, pumps and the ice wall has cut water flows by three-quarters, from 490 tons a day during the December 2015 to February 2016 period to an average of 110 tons a day for December 2017 to February 2018.

It is hard to measure exactly how much the ice wall is contributing, Tepco officials say, but based on computer analysis the utility estimates the barrier is reducing water flows by about 95 tonnes a day compared to two years ago, before the barrier was operating.

“Our assessment is that the ice wall has been effective,” said Naohiro Masuda, Tepco’s chief decommissioning officer, adding that rain falling within the ice wall perimeter contributed to surging volumes. “We now believe we have a system in place to manage the water level.”

However, a government-commissioned panel on Wednesday offered a mixed assessment of the ice wall, saying it was partially effective but more steps were needed.

Controlling the groundwater seepage using the ice wall has been central to Japan’s program to show it had the Fukushima decommissioning in hand.

The barrier was announced just days before Tokyo won the bid to host the 2020 Summer Olympics and Prime Minister Shinzo Abe declared that Fukushima was “under control” in his final pitch to the International Olympic Committee.

In addition to the building costs, the ice wall needs an estimated 44 million kilowatt hours of electricity a year to run, enough to power about 15,000 typical Japanese homes.

NO MORE SPACE

Meanwhile, Tepco must decide how to cope with the growing volume of water stored on site.

The purification process removes 62 radioactive elements from the contaminated water but it leaves tritium, a mildly radioactive element that is difficult to separate from water. Not considered harmful in low doses, tritium is released into oceans and rivers by nuclear plants around the world at various national standard levels.

But local residents, particularly fishermen, oppose ocean releases because they fear it will keep consumers from buying Fukushima products. Many countries, including South Korea and China, still have restrictions on produce from Fukushima and neighboring areas.

A government-commissioned task force is examining five options for disposing of the tritium-laced water, including ocean releases, though no decision has been made.

Ken Buesseler, a radiochemist at the Woods Hole Oceanographic Institution in the United States, suggests that Tepco should open the tanks to external inspections to see if the water is safe.

“From the public’s viewpoint, I think they’d want a bit of independent confirmation,” Buesseler said. “It’s no harder and a lot cheaper than building an ice wall.”

(Reporting by Malcolm Foster and Aaron Sheldrick; Editing by Christian Schmollinger)

As talks with North near, South Korea sees familiar hurdles ahead

FILE PHOTO: North Korean leader Kim Jong Un watches the launch of a Hwasong-12 missile in this undated photo released by North Korea's Korean Central News Agency (KCNA) on September 16, 2017. KCNA via REUTERS/File Photo

By Hyonhee Shin

SEOUL (Reuters) – With the specter of two past summits that failed to blunt North Korea’s nuclear ambitions, South Korean officials planning talks next month now face the thorny task of overcoming familiar sticking points with the threat of war looming over any failure.

A South Korean delegation returned home on Tuesday from a first-ever meeting with North Korean leader Kim Jong Un, to announce the agreement on a North-South summit next month, the first since 2007.

Seoul officials see the talks as the starting point of President Moon Jae-in’s initiative to denuclearize and build lasting peace on the peninsula, beginning with a freeze in the North’s nuclear program and ending in its complete abolishment.

“While pursuing a fundamental resolution of the standoff, we need to take some initial denuclearization steps, putting a halt to further testing and returning to dialogue,” a senior South Korean government official said on condition of anonymity.

“One could argue we would be deceived by the North as we have been for the last 20 years, but that’s the past – we have different people and different programs now,” the official said.

Moon said on Wednesday he had suggested to the North a rough roadmap progressing from a nuclear freeze to denuclearization, an opposition party chair told reporters after meeting with him.

But Moon said there won’t be “many agreements” to come out of the summit, according to a ruling party lawmaker who took part in the meeting.

Moon also called a 2005 deal of six-nation nuclear talks, under which Pyogyang agreed to give up its nuclear program in return for economic and energy aid and an end to its diplomatic isolation, a “failed model”, the first politician said.

FAMILIAR PATTERN

Former officials in Washington and Tokyo reacted with scepticism to the North’s offer of talks on denuclearization, seeing a familiar pattern of threats followed by talks that fail to win significant concessions.

Chief among the disagreements that have scuttled past efforts to defuse the standoff is North Korea’s requests for security guarantees in return for abandoning its nuclear weapons.

During talks with Moon’s envoys this week, the North expressed its willingness to denuclearize if military threats against it are eliminated, and the security of its regime is guaranteed, without presenting precise conditions.

“(North Korea) has never said what they mean by the guarantee of regime security,” one former senior South Korean official told Reuters.

“That means it’s up to them to decide whether the security is guaranteed or not, and that means they have full control.”

Pyongyang has protested South Korea-U.S. joint military drills as a rehearsal of war.

It has also called the roughly 28,000 American troops stationed in South Korea a potential invasion force that can only be countered by a robust nuclear deterrent.

The North’s official KCNA news agency said on Wednesday the United States is “getting frantic” with the deployment of U.S. troops on the Korean peninsula and their drills to get “familiar with its terrain and arms buildup there”.

Moon’s special advisor Moon Chung-in has raised the possibility for a possible pullout of U.S. forces, saying the president has the right to “let them out”.

Moon declined to comment on the summit, saying: “We will see.”

SECURITY GUARANTEE?

Any discussion of a U.S. troop withdrawal will be fraught, however, as both Seoul and Washington see them as a bulwark against North Korean provocations.

“For the North, a peace treaty and denuclearization means the removal of U.S. forces from not only the peninsula but also Japan and other bases in the Pacific theater,” said Kim Young-mok, a former South Korean diplomat who was involved in the making of a 1994 freeze-for-aid framework deal between Pyongyang and Washington.

“We responded by pledging non-aggression, but I guess it wasn’t enough.”

South Korean officials expect the issue to arise again, but are hoping Pyongyang won’t make impossible demands.

Another senior official acknowledged the difficulty in making progress in any peace talks without addressing the issue of eliminating the military threat to North Korea and guaranteeing the security of its regime.

“The North bring up disarmament talks and the withdrawal of U.S. forces”, the official said.

“If they do, things could get ugly quickly despite the summit, and the South Korea-U.S. alliance would face serious problems. But if the North were to move things forward, they would hopefully present something more realistic.”

Wi Sung-lac, a former South Korean nuclear negotiator, said there needs to be clearer mutual understanding of the definition of denuclearization to facilitate future talks.

“It’s unlikely to see any tangible outcome on the nuclear issue before the summit,” he said.

“The United States and North Korea could sit together at the negotiating table in the meantime, which would provide better optics for the summit but probably not in terms of substance.”

(Reporting by Hyonhee Shin; Additional reporting by Christine Kim; Editing by Josh Smith and Lincoln Feast)

Oil drops on surprise U.S. gasoline stocks build; crude stocks also up

FILE PHOTO: An oil pump is seen operating in the Permian Basin near Midland, Texas, U.S. on May 3, 2017. Picture taken May 3, 2017. REUTERS/Ernest Scheyder/File Photo

By Ayenat Mersie

NEW YORK (Reuters) – Oil prices fell more than 1 percent on Wednesday and gasoline futures tumbled, after the U.S. government said crude inventories rose more than expected while gasoline stocks posted a big build instead of the draw that was forecast.

U.S. crude inventories rose by 3 million barrels for the week ending Feb. 23, compared with analyst expectations for a build of 2.1 million barrels.

Gasoline inventories rose by 2.5 million barrels, compared to analyst expectations for a 190,000-barrel drawdown. Gasoline futures fell sharply, leading the rest of the energy complex lower.

“The report was bearish, primarily due to the fairly large crude oil and gasoline inventory builds,” said John Kilduff, partner at energy hedge fund Again Capital LLC in New York.

U.S. West Texas Intermediate crude dropped 75 cents at $62.26 a barrel, a 1.2 percent decline, as of 10:55 a.m. EST (1555 GMT). Brent crude futures for the most active May contract were down 84 cents at $65.68 a barrel.

Gasoline futures lost 2.2 percent to $1.7636 a gallon. The rise in inventories came even as refineries boosted activity in the most recent week.

“In spite of refiners undergoing maintenance, they continue to process more crude compared to previous years adding to gasoline and diesel supply,” said Andrew Lipow, president at Lipow Oil Associates in Houston.

Soaring U.S. production kept a lid on oil prices this year, even though the Organization of the Petroleum Exporting Countries and Russia have reduced output.

A Reuters survey on Wednesday showed OPEC maintained its supply cuts in February, dropping output to 32.28 million bpd, lowest since April of last year.

“Climbing U.S. production continues to weigh on the market as traders fear that the OPEC output cuts will be nullified by the rising U.S. output,” said William O’Loughlin, investment analyst at Australia’s Rivkin Securities.

U.S. crude production has risen by a fifth since mid-2016 to more than 10 million barrels per day. Wednesday’s release showed weekly production rose again to 10.3 million bpd. More reliable monthly figures are due later in the day, and analysts expect that report to show another large upward revision.

Prices were pressured earlier after three of the world’s top consumers of crude – China, India and Japan – reported a slowdown in monthly factory activity.

The U.S. dollar hit a one-month high Wednesday, putting additional pressure on crude. A stronger dollar makes oil more expensive for holders of other currencies.

(Additional reporting by Scott DiSavino in NEW YORK, Amanda Cooper in LONDON, Aaron Sheldrick in TOKYO and Henning Gloystein in SINGAPORE; Editing by Dale Hudson and David Gregorio)

Trump says launching ‘largest-ever’ package of sanctions against North Korea

U.S. President Donald Trump takes questions from to reporters before departing the White House to speak at CPAC in Washington, U.S., February 23, 2018. REUTERS/Jim Bour

By Christine Kim and Steve Holland

SEOUL/WASHINGTON (Reuters) – U.S. President Donald Trump said on Friday the United States would launch the “largest-ever” package of sanctions against North Korea, intensifying pressure on the reclusive country to giving up its nuclear and missile programs.

“Today I am announcing that we are launching the largest-ever set of new sanctions on the North Korean regime,” Trump said in excerpts of a speech he was to deliver on Friday.

He said the Treasury Department soon will be taking action to further cut off sources of revenue and fuel that North Korea uses to fund its nuclear program and sustain its military.”

He said the effort will target more than 50 “vessels, shipping companies and trade businesses that are assisting North Korea in evading sanctions.

North Korea’s missile and nuclear program, which is seeking to develop a nuclear-tipped missile capable of reaching the U.S. mainland, is the Trump administration’s biggest national security challenge. Trump and North Korean leader Kim Jong Un have taunted each other through the media and Trump has threatened him with “fire and fury like the world has never seen.”

Tougher sanctions may jeopardize the latest detente between the two Koreas, illustrated by the North’s participation in the Winter Olympics in the South, amid preparations for talks about a possible summit between North Korean leader Kim Jong Un and South Korean President Moon Jae-in.

U.S. Vice President Mike Pence had hinted at such a sanctions package two weeks ago during a stop in Tokyo that preceded his visit to South Korea for the Pyeongchang Olympics.

North Korea last year conducted dozens of missile launches and its sixth and largest nuclear test in defiance of U.N. Security Council resolutions. It defends the weapons programs as essential to deter U.S. aggression.

It has been more than two months since North Korea’s last missile test.

Kim said he wants to boost the “warm climate of reconciliation and dialogue” with South Korea, which hosts 28,500 U.S. troops, after a high-level delegation, including his sister, returned from the Olympics.

In an extension of that rapprochement, the North agreed on Friday to hold working-level talks on Tuesday for the Pyeongchang Winter Paralympics on the North’s side of the border village of Panmunjom.

The new U.S. sanctions will be announced while Trump’s daughter, Ivanka, is visiting South Korea. She had dinner with Moon after a closed-door meeting with the president.

“We are very, very excited to attend the 2018 winter Olympic games to cheer for Team USA and to reaffirm our strong and enduring commitment with the people of the Republic of Korea,” Ivanka, a senior White House adviser who has a long been a close confidante of her father’s, said at Incheon airport.

Ivanka Trump’s visit to South Korea coincides with that of a sanctioned North Korean official, Kim Yong Chol, blamed for the deadly 2010 sinking of a South Korean navy ship that killed 46 sailors. His delegation will attend the closing ceremony and also meet Moon.

The South Korean president said South Korea cannot acknowledge North Korea as a nuclear state and talks with the North on denuclearization and improving inter-Korean relations must go hand in hand, Moon’s spokesman, Yoon Young-chan, said at a news conference.

He said close cooperation between the United States and South Korea is important for the talks.

“President Moon also said out of all countries, South Korea has the strongest will to say it cannot acknowledge North Korea as a nuclear state,” he said.

Moon made the comments to Ivanka.

The Blue House has said there are no official opportunities for U.S. and North Korean officials to meet.

“RIGHT PERSON”

Kim Yong Chol is the vice chairman of the North’s ruling Workers’ Party’s Central Committee and was previously chief of the Reconnaissance General Bureau, a top North Korean military intelligence agency that South Korea blamed for the sinking of its navy corvette, the Cheonan. North Korea has denied any involvement.

Seoul said it approved the pending visit by Kim Yong Chol in the pursuit of peace and asked for public understanding in the face of opposition protests.

“Under current difficult circumstances, we have decided to focus on whether peace on the Korean peninsula and improvement in inter-Korean relations can be derived from dialogue with (the visiting North Korean officials), not on their past or who they are,” said Unification Ministry spokesman Baik Tae-hyun in a media briefing.

Kim Yong Chol currently heads the United Front Department, the North’s office responsible for handling inter-Korean affairs.

South Korea’s decision on Thursday to allow in Kim Yong Chol, currently sanctioned by the United States and South Korea, sparked protest from family members of the dead sailors and opposition parties.

Many have been angered at the North’s participation at the Games, which they say has been a reward for bad behavior with no quid pro quo from Pyongyang.

(Reporting by Christine Kim in SEOUL and Steve Holland in WASHINGTON; Editing by Nick Macfie and Bill Trott)

Lesser-known North Korea cyber-spy group goes international: report

Binary code is seen on a screen against a North Korean flag in this illustration photo November 1, 2017. REUTERS/Thomas White/Illustration

By Eric Auchard

FRANKFURT (Reuters) – A North Korean cyber espionage group previously known only for targeting South Korea’s government and private sector deepened its sophistication and hit further afield including in Japan and the Middle East in 2017, security researchers said on Tuesday.

Cyber attacks linked by experts to North Korea have targeted aerospace, telecommunications and financial companies in recent years, disrupting networks and businesses around the world. North Korea rejects accusations it has been involved in hacking.

U.S. cyber security firm FireEye said the state-connected Reaper hacking organization, which it dubbed APT37, had previously operated in the shadows of Lazarus Group, a better-known North Korean spying and cybercrime group widely blamed for the 2014 Sony Pictures and 2017 global WannaCry attacks.

APT37 had spied on South Korean targets since at least 2012 but has been observed to have expanded its scope and sophistication to hit targets in Japan, Vietnam and the Middle East only in the last year, FireEye said in a report.

The reappraisal came after researchers found that the spy group showed itself capable of rapidly exploiting multiple “zero-day” bugs – previously unknown software glitches that leave security firms no time to defend against attacks, John Hultquist, FireEye’s director of intelligence analysis said.

“Our concern is that their (international) brief may be expanding, along with their sophistication,” Hultquist said.

“We believe this is a big thing”.

APT37 has focused on covert intelligence gathering for North Korea, rather than destructive attacks or financial cyber crime, as Lazarus Group and other similar hacking groups have been shown to engage in order to raise funds for the regime, it said.

The group appears to be connected to attack groups previously described as ScarCruft by security researchers at Kaspersky and Group123 by Cisco’s Talos unit, FireEye said.

“We assess with high confidence that this activity is carried out on behalf of the North Korean government given malware development artefacts and targeting that aligns with North Korean state interests,” the security report said.

From 2014 until 2017, APT37 concentrated mainly on South Korean government, military, defense industrial organizations and the media sector, as well as targeting North Korean defectors and human rights groups, the report said.

Since last year, its focus has expanded to include an organization in Japan associated with the United Nations missions on human rights and sanctions against the regime and the director of a Vietnamese trade and transport firm.

Its spy targets included a Middle Eastern financial company as well as an unnamed mobile network operator, which FireEye said had provided mobile phone service in North Korea until business dealings with the government fell apart.

FireEye declined to name the firm involved, but Egypt’s Orascom <OTMT.CA> provided 3G phone service in the country via a joint venture from 2002 to 2015, until the North Korean regime seized control of the venture, according to media reports.

Asked for comment, a spokeswoman for Orascom said she had no immediate knowledge of the matter and was looking into it.

(Reporting by Eric Auchard, and Nadine Awadalla in Cairo, Editing by William Maclean)