North Korea sends rare letter of protest over new U.S. sanctions

FILE PHOTO - A North Korean flag flies on a mast at the Permanent Mission of North Korea in Geneva October 2, 2014. REUTERS/Denis Balibouse/File Photo

By Ju-min Park

SEOUL (Reuters) – North Korea sent a rare letter of protest to the U.S. House of Representatives on Friday warning that a new package of tougher sanctions would only spur its development of nuclear weapons, North Korea’s state media reported.

The protest was lodged by the recently revived Foreign Affairs Committee of North Korea’s Supreme People’s Assembly, which said the U.S. House of Representatives was “obsessed” with a sense of disapproval and warned it of dire consequences.

“The U.S. House of Representatives should think twice,” the committee said in its letter, a copy of which was published by the KCNA state news agency.

Tension has been high for weeks over North Korea’s nuclear and missile development and fears it will conduct a sixth nuclear test or test-launch another ballistic missile in defiance of U.N. Security Council resolutions.

The House of Representatives overwhelmingly approved legislation this month to tighten sanctions by targeting North Korea’s shipping industry and companies that do business it.

The U.S. legislation was intended to cut off supplies of cash that help fund North Korea’s nuclear program, and increase pressure to stop human rights abuses such as the use of slave labor, the bill’s sponsor said.

The North’s committee said it would fail.

“As the U.S. House of Representatives enacts more and more of these reckless hostile laws, the DPRK’s efforts to strengthen nuclear deterrents will gather greater pace, beyond anyone’s imagination,” the committee said, referring to North Korea by the initials of its official name, the Democratic People’s Republic of Korea.

Last month, North Korea reconvened the Foreign Affairs Committee, which was abolished in the late 1990s, in what analysts saw as an attempt to improve relations with the outside world amid its deepening isolation.

The committee is chaired by Ri Su Yong, a close aide to leader Kim Jong Un and a career diplomat.

(Reporting by Ju-min Park; Editing by Robert Birsel)

Japan, China to boost financial ties amid protectionist, North Korean tensions

Chinese Finance Minister Xiao Jie (R) and Japanese Finance Minister Taro Aso shake hands during their bilateral meeting, on the sidelines of Asian Development Bank (ADB) annual meeting, in Yokohama, Japan, Saturday, May 6, 2017. REUTERS/Koji Sasahara/Pool

By Tetsushi Kajimoto

YOKOHAMA, Japan (Reuters) – Japan and China agreed to bolster economic and financial cooperation, Japanese Finance Minister Taro Aso said on Saturday, as U.S. President Donald Trump’s protectionist stance and tension over North Korea weigh on Asia’s growth outlook.

Chinese Finance Minister Xiao Jie, who missed a trilateral meeting with his Japanese and South Korean counterparts on Friday for an emergency domestic meeting, had flown in for the talks with Aso, seeking to dispel speculation his absence had any diplomatic implications.

“We actively exchanged views on economic and financial situations in Japan and China and our cooperation in the financial field,” Aso told reporters after the meeting, which included senior finance ministry and central bank officials.

“It was significant that we reconfirmed the need of financial cooperation between the two countries while sharing our experiences in dealing with economic policies and structural issues,” he added.

The two countries agreed to launch joint research on issues of mutual interest – without elaborating – and to report the outcomes at the next talks, which will be held in 2018 in China.

They did not discuss issues such as currencies and geopolitical risks from North Korea’s nuclear and missile program during the dialogue, held on the sidelines of the Asian Development Bank’s (ADB) annual meeting in Yokohama, eastern Japan, Aso said.

Relations between Japan and China have been strained over territorial rows and Japan’s occupation of parts of China in World War Two, though leaders have recently sought to mend ties through dialogue.

Still, China’s increasing presence in infrastructure finance has alarmed some Japanese policymakers, who worry that Beijing’s new development bank, the Asian Infrastructure Investment Bank (AIIB), may overshadow the Japan-backed ADB.

Shortly before the bilateral talks on Saturday, Xiao voiced hope that the ADB will boost ties with China’s high profile “One Belt One Road” infrastructure development initiatives.

“China hopes the ADB … strengthens the strategic ties between its programs and the One Belt One Road initiative to maximize synergy effects and promote Asia’s further development,” Xiao told the ADB’s annual gathering.

Japan and China do agree on the need to respect free trade, which they see as crucial to Asia’s trade-dependent economies.

Finance officials from Japan, China and South Korea agreed to resist all forms of protectionism in Friday’s trilateral meeting, taking a stronger stand than G20 major economies against the protectionist policies advocated by Trump.

China has positioned itself as a supporter of free trade in the wake of Trump’s calls to put America’s interests first and pull out of multilateral trade agreements.

Japan has taken a more accommodative stance toward Washington’s argument that trade must not just be free but fair.

(Reporting by Tetsushi Kajimoto; Editing by Nick Macfie and Alexander Smith)

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)