Exclusive: U.S. mulls using sweeping powers to ramp up production of coronavirus protective gear

By Ted Hesson and Alexandra Alper

WASHINGTON (Reuters) – President Donald Trump’s administration is considering invoking special powers through a law called the Defense Production Act to rapidly expand domestic manufacturing of protective masks and clothing to combat the coronavirus in the United States, two U.S. officials told Reuters.

The use of the law, passed by Congress in 1950 at the outset of the Korean War, would mark an escalation of the administration’s response to the outbreak. The virus first surfaced in China and has since spread to other countries including the United States.

U.S. health officials have told Americans to begin preparing for the spread of the virus in the United States.

The law grants the president the power to expand industrial production of key materials or products for national security and other reasons. The biggest producers of face masks in the United States include 3M Corp and Honeywell International Inc.

Trump, a Republican seeking re-election on Nov. 3, has faced criticism from Democrats over his administration’s response to the outbreak.

Health and Human Services (HHS) Secretary Alex Azar told lawmakers this week that the United States needs a stockpile of about 300 million N95 face masks – respiratory protective devices – for medical workers to combat the spread of the virus. The United States currently has only a fraction of that number available for immediate use, Azar testified.

During an interagency call on Wednesday, officials from HHS and the Department of Homeland Security (DHS) discussed the possibility of invoking the Defense Production Act for the manufacture of “personal protective equipment” that can be worn to prevent infection, according to a DHS official.

Such equipment can include masks, gloves and body suits.

Azar said at a congressional hearing on Wednesday that China controls “a lot of the raw materials as well as the manufacturing capacity” related to face masks.

“Very little of this stuff is apparently made in the (United) States, so if we’re down to domestic capability to produce, it could get tough,” the DHS official told Reuters.

A White House official confirmed that the administration was exploring the use of the law to spur manufacturing of protective gear. Both the DHS official and the White House requested anonymity to discuss the issue.

“Let’s say ‘Company A’ makes a multitude of respiratory masks but they spend 80% of their assembly lines on masks that painters wear and only 20% on the N95,” the White House official said. “We will have the ability to tell corporations, ‘No, you change your production line so it is now 80% of the N95 masks and 20% of the other.'”

“It allows you to basically direct things happening that need to get done,” the official added.

HHS declined to comment. DHS did not immediately respond to a request for comment.

‘VERY LOW’

Trump said on Wednesday the coronavirus risk to the United States remained “very low,” but that federal health officials were prepared to take action and that Vice President Mike Pence would take control of the U.S. response.

Chuck Schumer, the top Senate Democrat, on Thursday accused Trump of “towering and dangerous incompetence” and said the president “must get his act together” on the coronavirus threat.

Invoking the Defense Production Act is one of a number of options under consideration by the administration to combat the virus, the officials said, and no final decision has been made. Trump invoked the law in 2017 to address technological shortfalls in a vaccine production capability and other items such as microelectronics.

The law grants the president broad authority to “expedite and expand the supply of resources from the U.S. industrial base to support military, energy, space, and homeland security programs,” according to a summary on the Federal Emergency Management Agency website.

Azar testified on Wednesday that the United States has a stockpile of around 12 million of the N95 masks that are in line with certifications from the U.S. National Institute for Occupational Safety and Health (NIOSH). HHS also has another 5 million N95 masks that are no longer NIOSH certified, Azar said, perhaps because they are past the expiration date.

In addition to those masks, the U.S. government has a stockpile of 30 million “gauze type” surgical masks, which the U.S. Centers for Disease Control and Prevention has said are less effective because they are loose-fitting.

Azar said the government needs a stockpile of approximately 300 million N95 masks.

U.S. Food and Drug Administration Commissioner Stephen Hahn said in a written statement on Thursday that the agency had heard reports of increased market demand for some types of protective medical gear and “supply challenges,” but was not aware of specific shortages.

CDC Director Robert Redfield testified at a House subcommittee on Thursday that he would ask ordinary Americans not to buy N95 masks at this time.

“There’s no role for these masks in the community,” he said. “These masks need to be prioritized for healthcare professionals.”

(Reporting by Ted Hesson and Alexandra Alper; Additional reporting by Michael Erman, Jeff Mason, Mike Stone and David Brunnstrom; Editing by Ross Colvin, Will Dunham and Daniel Wallis)

North Korea quits liaison office in setback for South after new U.S. sanctions

FILE PHOTO: South Korean President Moon Jae-in and North Korean leader Kim Jong Un wave during a car parade in Pyongyang, North Korea, September 18, 2018. Pyeongyang Press Corps/Pool via REUTERS/File Photo

By Hyonhee Shin and David Brunnstrom

SEOUL/WASHINGTON (Reuters) – North Korea on Friday pulled out of a liaison office with the South, in a major setback for Seoul, just hours after the United States imposed the first new sanctions on the North since the second U.S.-North Korea summit broke down last month.

North Korea said it was quitting the joint liaison office set up in September in the border city of Kaesong after a historic summit between leader Kim Jong Un and South Korea’s President Moon Jae-in early last year.

“The North’s side pulled out after conveying to us that they are doing so on the instructions from a higher level, during a liaison officials’ contact this morning,” South Korea’s Vice Unification Minister Chun Hae-sung told a briefing.

South Korea regrets the decision and urged a swift normalisation of the arrangement, Chun said, adding the South would continue to staff the office, set up as a regular channel of communication to ease hostility between the rivals, which technically remain at war.

The move came after the United States on Thursday blacklisted two Chinese shipping companies it says helped North Korea evade sanctions over its nuclear program and cited 67 vessels it said engaged in illicit trade helping the North.

It was the first such step since a second meeting between President Donald Trump and North Korean leader Kim Jong Un in Hanoi broke down over conflicting demands by the North for relief from sanctions and from the United States for Pyongyang to give up its nuclear weapons.

The North’s withdrawal from the office was another blow to Moon, who has seen his standing as a mediator between Pyongyang and Washington deteriorate and divisions grow within his government over how to break the impasse.

Moon’s administration had touted the office as a major feat resulting from his own summit with Kim last year despite U.S. concerns about possible loosening of sanctions.

The South’s Chun said he would not directly link the North’s move to the failed Hanoi summit. But experts saw a pattern in the North lashing out against the South when its crucial strategic position with Washington is in jeopardy.

“The North sees its nuclear issue and ties with the United States as a matter of greater strategic importance, so when they try to assert its position, they sacrifice the ties with the South, which is considered inferior,” said Shin Beom-chul of the Asan Institute for Policy Studies in Seoul.

Moon’s office reacted by holding an urgent meeting, headed by his national security adviser, to discuss the withdrawal.

The won weakened about 0.4 percent against the dollar in non-deliverable forward (NDF) trade after the news.

NEW SANCTIONS

The U.S. Treasury Department identified two Chinese firms for new sanctions – Dalian Haibo International Freight Co Ltd and Liaoning Danxing International Forwarding Co Ltd – which had helped the North evade U.S. and international sanctions, it said.

It also cited 67 vessels for engaging in illicit transfers of refined petroleum with North Korean tankers or facilitating the export of the North’s coal.

Reuters was unable to locate contact details for either of the Chinese companies to seek comment.

The U.S. sanctions prohibit U.S. dealings with the designated companies and freezes any assets they have in the United States.

“The United States and our like-minded partners remain committed to achieving the final, fully verified denuclearization of North Korea and believe that the full implementation of North Korea-related U.N. Security Council resolutions is crucial to a successful outcome,” Treasury Secretary Steven Mnuchin said in a statement.

The latest sanctions showed there was some “leakage” in North Korea sanctions enforcement by China, but it was mostly abiding by U.N. resolutions, a senior U.S. official told reporters on condition of anonymity.

While declining to say whether Washington was trying to send a post-summit message to Pyongyang, the official said Trump “has made clear that the door is wide open to continuing the dialogue with North Korea.”

LIMBO

U.S.-North Korean engagement has appeared to be in limbo since the Feb. 27-28 summit, despite U.S. Secretary of State Mike Pompeo saying on March 4 he was hopeful he could send a team to North Korea “in the next couple of weeks.”

North Korea has warned it is considering suspending talks and may rethink a freeze on missile and nuclear tests, in place since 2017, unless Washington makes concessions.

Activity was detected at the North’s main rocket test facility around the time of the failed summit, fueling concern that Pyongyang may be about to resume weapons development to ratchet up pressure on Washington.

On Monday, two senior U.S. senators called for the Trump administration to correct a slowing pace of American sanctions designations on North Korea, saying such actions had seen a marked decline in the past year of U.S. diplomatic engagement with Pyongyang.

They pointed to a recent U.N. report that North Korea continued to defy U.N. sanctions with an increase in smuggling of petroleum products and coal and violation of bans on arms sales.

A U.N. sanctions panel said in the report Liaoning Danxing was suspected of illicitly shipping Mercedes-Benz limousines to North Korea. Last July, the Netherlands seized a cargo of Belarusian vodka, also banned as luxury goods, en route to North Korea via the company, it said.

(Reporting by David Brunnstrom, Matt Spetalnick and Doina Chiacu in Washington and Hyonhee Shin and Joyce Lee in Seoul; Additional reporting by Choonsik Yoo in Seoul and Gao Liangping and Ben Blanchard in Beijing; Editing by Jack Kim and Clarence Fernandez)

Trump and North Korea’s Kim predict success in high-stakes nuclear summit

U.S. President Donald Trump and North Korean leader Kim Jong Un shake hands before their one-on-one chat during the second U.S.-North Korea summit at the Metropole Hotel in Hanoi, Vietnam February 27, 2019. REUTERS/Leah Millis

By Soyoung Kim and Jeff Mason

HANOI (Reuters) – North Korean leader Kim Jong Un and U.S. President Donald Trump met in Vietnam on Wednesday for a second summit that the United States hopes will persuade North Korea to give up its nuclear weapons in exchange for promises of peace and development.

Kim and Trump shook hands and smiled briefly in front of a row of their national flags at the Metropole hotel in the Vietnamese capital, Hanoi, before heading to dinner together.

Trump told reporters he thought the talks would be very successful, and asked if he was “walking back” on denuclearization, said “no”.

At their historic first summit in Singapore last June, Trump and Kim pledged to work toward denuclearization and permanent peace on the Korean peninsula but little progress has been made.

Kim said they had overcome obstacles to hold their second summit and praised Trump for his “courageous decision” to begin a dialogue.

“Now that we’re meeting here again like this, I’m confident that there will be an excellent outcome that everyone welcomes, and I’ll do my best to make it happen,” Kim said.

Trump and Kim held a 20-minute, one-on-one chat before sitting down to dinner with U.S. Secretary of State Mike Pompeo Trump’s acting Chief of Staff Mick Mulvaney, Kim’s top envoy, Kim Yong Chol, and North Korean Foreign Minister Ri Yong Ho.

On Thursday, the two leaders will hold a series of meetings, the White House said. The venue has not been announced.

“We’re going to have a very busy day tomorrow,” said a smiling, relaxed-looking Trump, seated beside Kim at a round table with the other four officials and two interpreters.

“Our relationship is a very special relationship.”

Experts said the pair were at pains to show their relationship had improved since their first meeting, with their body language closely mirroring each other.

A child with stickers of the North Korean and Vietnamese flags on her face reacts at the Vietnam-North Korea Friendship kindergarten, founded by North Korean Government in Hanoi, ahead of the North Korea-U.S. summit in Hanoi, Vietnam February 27, 2019. REUTERS/Athit Perawongmetha

A child with stickers of the North Korean and Vietnamese flags on her face reacts at the Vietnam-North Korea Friendship kindergarten, founded by North Korean Government in Hanoi, ahead of the North Korea-U.S. summit in Hanoi, Vietnam February 27, 2019. REUTERS/Athit Perawongmetha

GOOD RELATIONS

Trump said late last year he and Kim “fell in love”, but whether the bonhomie can move them beyond summit pageantry to substantive progress on eliminating Pyongyang’s nuclear arsenal that threatens the United States is the question that will dominate the talks.

Trump and Kim’s Singapore summit, the first meeting between a sitting U.S. president and a North Korean leader, ended with great fanfare but little substance over how to dismantle North Korea’s nuclear weapons and ballistic missiles.

In the run-up to this summit, Trump has indicated a more flexible stance, saying he was in no rush to secure North Korea’s denuclearization. He repeated that on Wednesday, saying while some people believed the talks should be moving more quickly, he was satisfied.

He has also said he would be happy as long as North Korea, which has not tested a nuclear weapon or intercontinental ballistic missile since 2017, maintained that freeze.

Some critics have said Trump appeared to be wavering on a long-standing U.S. demand for complete and irreversible denuclearization by North Korea and risked squandering leverage if he gave away too much, too quickly.

Asked if he would declare a formal end to the Korean War, which North Korea has long called for, Trump said: “We’ll see.”

North and South Korea have been technically at war since their 1950-53 conflict, with the Americans backing the South, ended in a truce, not a treaty.

Evans Revere, a former U.S. negotiator with North Korea, said Trump was under pressure, given the criticism and other domestic problems, and Kim might try to use that.

“Kim may be tempted to push Trump even harder for concessions, knowing how much the president wants and needs that testing pause,” Revere said.

Students from Nguyen Du secondary school hold U.S. and Vietnam flags outside the Presidential Palace, as they wait for wait to greet U.S. President Donald Trump, in Hanoi, Vietnam, February 27, 2019. REUTERS/Leah Millis

Students from Nguyen Du secondary school hold U.S. and Vietnam flags outside the Presidential Palace, as they wait for wait to greet U.S. President Donald Trump, in Hanoi, Vietnam, February 27, 2019. REUTERS/Leah Millis

‘AWESOME’ POTENTIAL

U.S. intelligence officials have said there is no sign North Korea will ever give up its entire arsenal of nuclear weapons, which it sees as its guarantee of national security. Analysts say it won’t commit to significant disarmament unless punishing U.S.-led economic sanctions are eased.

The two sides have discussed specific and verifiable denuclearization measures, such as allowing inspectors to observe the dismantlement of North Korea’s Yongbyon nuclear reactor, U.S. and South Korean officials say.

U.S. concessions could include opening liaison offices or clearing the way for inter-Korean projects.

Despite little progress on his goal of ridding North Korea of its weapons programs, Trump appeared to be betting on his personal relationship with Kim, and the economic incentive after 70 years of hostility between their countries.

“Vietnam is thriving like few places on earth. North Korea would be the same, and very quickly, if it would denuclearize,” Trump said on Twitter ahead of the meeting.

“The potential is AWESOME, a great opportunity, like almost none other in history, for my friend Kim Jong Un. We will know fairly soon – Very Interesting!”

For Trump, a deal that eases the North Korean threat could hand him a big foreign-policy achievement in the midst of domestic troubles.

While he is in Hanoi, his former personal lawyer Michael Cohen is testifying before U.S. congressional committees, with the president’s business practices the main focus.

Cohen, in wide-ranging testimony he is due to deliver on Wednesday, refers to a comment Trump made to him about avoiding the U.S. military draft for the Vietnam War on medical grounds: “‘You think I’m stupid, I wasn’t going to Vietnam’,” Cohen cited Trump as saying.

“I find it ironic, President Trump, that you are in Vietnam right now,” Cohen said in a draft statement seen by Reuters.

Trump, responding to the statement on Twitter, said Cohen was lying to reduce his prison time. He declined to respond when a reporter asked him about Cohen later.

 

(Reporting by Soyoung Kim and Jeff Mason in HANOI; Additional reporting by Hyonhee Shin, James Pearson, Mai Nyugen, Ju-min Park, Khanh Vu, Josh Smith in HANOI, David Brunnstrom and Matt Spetalnick in WASHINGTON; Editing by Robert Birsel and Lincoln Feast)

Trump won’t rush North Korea on denuclearization; peace deal possible

A person walks past a banner showing North Korean and U.S. flags ahead of the North Korea-U.S. summit in Hanoi, Vietnam, February 25, 2019. REUTERS/Kim Kyung-Hoon

By Hyonhee Shin

HANOI (Reuters) – U.S. President Donald Trump and North Korea’s Kim Jong Un will hold a second summit this week with no real expectation of a final deal on ridding the North of nuclear weapons but raised hopes on Monday for an official peace on the peninsula at long last.

The two leaders are due to meet in the Vietnamese capital, Hanoi, on Wednesday and Thursday, eight months after their historic summit in Singapore, the first between a sitting U.S. president and a North Korean leader.

At the time, they pledged to work toward the complete denuclearization of the Korean peninsula, but their vague agreement has produced few results. U.S. Democratic senators and security officials have warned Trump against cutting a deal that would do little to curb North Korea’s nuclear ambitions.

Trump, speaking in Washington on the eve of his departure for Vietnam, said he believed he saw eye to eye with Kim and that they had developed “a very, very good relationship”.

In a tweet on Monday, Trump stressed the benefits to North Korea if it gave up its nuclear weapons.

“With complete Denuclearization, North Korea will rapidly become an Economic Powerhouse. Without it, just more of the same. Chairman Kim will make a wise decision!”

Vietnamese police leave their headquarters to patrol ahead of the upcoming North Korea-U.S. summit in Hanoi, Vietnam February 25, 2019. Doan Tan/VNA via REUTERS

Vietnamese police leave their headquarters to patrol ahead of the upcoming North Korea-U.S. summit in Hanoi, Vietnam February 25, 2019. Doan Tan/VNA via REUTERS

A South Korean presidential spokesman told reporters in Seoul the two sides might agree to a formal end of the 1950-1953 Korean War, which the North has long called for as a major step towards normalizing ties.

“The possibility is there,” the spokesman, Kim Eui-kyeom told a briefing in Seoul when asked if an end-of-war declaration was on the agenda.

In a speech on Sunday night, Trump appeared to play down any hope of a major breakthrough, saying he would be happy as long as North Korea maintained its pause on weapons testing.

“I’m not in a rush. I don’t want to rush anybody,” he said. “I just don’t want testing. As long as there’s no testing, we’re happy.”

Trump is expected to leave for Vietnam at about 12:30 p.m. EST (1730 GMT).

North Korea conducted its last nuclear test, its sixth, in September 2017. It last tested an intercontinental ballistic missile in November 2017.

Before that freeze, the North conducted a series of tests that it says has given it powerful nuclear bombs and missiles capable of reaching the U.S. mainland.

The United States has for years demanded North Korea’s complete, verifiable and irreversible denuclearization before any concessions will be granted. North Korea denounced that stance as unilateral and “gangster-like”.

But in recent days, Trump has signaled a possible softening, saying he would love to be able to remove tough sanctions if there was meaningful progress on denuclearization.

Trump said he and Kim expected to make progress at the summit. He scoffed at critics of his handling of North Korea, and added that Chinese President Xi Jinping has been supportive of U.S. efforts.

A man walks past a banner depicting North Korean leader Kim Jong Un and U.S. President Donald Trump ahead of the North Korea-U.S. summit in Hanoi, Vietnam, February 25, 2019. REUTERS/Kim Kyung-Hoon

A man walks past a banner depicting North Korean leader Kim Jong Un and U.S. President Donald Trump ahead of the North Korea-U.S. summit in Hanoi, Vietnam, February 25, 2019. REUTERS/Kim Kyung-Hoon

LIMITED DEAL?

Speculation that the Trump administration is open to a limited deal at the summit has raised expectations the two sides might finally declare an end to a technical state of hostilities that has existed on the Korean peninsula since the Korean War ended with an armistice, not a truce.

In return, North Korea could allow international inspectors to observe the dismantlement of its nuclear reactor at Yongbyon, analysts say.

The United States could also agree to opening U.S.-North Korea liaison offices and allow some inter-Korean projects, provided the North takes steps toward denuclearization.

South Korea’s President Moon Jae-in, who supports opening up North Korea, praised both Trump and Kim in comments in Seoul, and said those opposed to better ties on the peninsula, and between North Korea and the United States, should “discard such biased perspectives”.

Trump is scheduled to arrive in Vietnam on Tuesday evening, Vietnam’s foreign ministry said. On Wednesday morning, Trump is set to meet Vietnam President Nguyen Phu Trong, who is also general secretary of the ruling Communist Party, the ministry said.

Vietnam has released few details about arrangements for the summit including its specific venue or timing.

Kim is making his way to Vietnam by train and passed through the Chinese city of Hengyang at about 3.30 p.m. (0730 GMT), South Korea’s Yonhap news agency reported.

That means he would be due to arrive in Vietnam early on Tuesday. No official details of his travel have been released.

(Additional reporting by Mai Nguyen and Josh Smith in HANOI and David Brunnstrom in WASHINGTON; Writing by Robert Birsel; Editing by Lincoln Feast and Bill Berkrot)

Kim says ready to meet Trump ‘anytime,’ warns of ‘new path’

North Korean leader Kim Jong Un poses for photos in Pyongyang in this January 1, 2019 photo released by North Korea's Korean Central News Agency (KCNA). KCNA/via REUTERS.

By Hyonhee Shin and Soyoung Kim

SEOUL (Reuters) – North Korean leader Kim Jong Un said on Tuesday he is ready to meet U.S. President Donald Trump again anytime to achieve their common goal of denuclearizing the Korean Peninsula, but warned he may have to take an alternative path if U.S. sanctions and pressure against the country continued.

In a nationally televised New Year address, Kim said denuclearization was his “firm will” and North Korea had “declared at home and abroad that we would neither make and test nuclear weapons any longer nor use and proliferate them.”

Kim added that Pyongyang had “taken various practical measures” and if Washington responded “with trustworthy measures and corresponding practical actions … bilateral relations will develop wonderfully at a fast pace.”

“I am always ready to sit together with the U.S. president anytime in the future, and will work hard to produce results welcomed by the international community without fail,” Kim said.

However, he warned that North Korea might be “compelled to explore a new path” to defend its sovereignty if the United States “seeks to force something upon us unilaterally … and remains unchanged in its sanctions and pressure.”

It was not clear what Kim meant by “a new path,” but his comments are likely to further fuel skepticism over whether North Korea intends to give up a nuclear weapons program that it has long considered essential to its security.

In response to the news, Trump wrote on Twitter, “I also look forward to meeting with Chairman Kim who realizes so well that North Korea possesses great economic potential!”

There was no immediate comment from the White House. Asked for a reaction, a U.S. State Department official said: “We decline the opportunity to comment.”

South Korea’s presidential office, however, welcomed Kim’s speech, saying it carried his “firm will” to advance relations with Seoul and Washington.

Kim and Trump vowed to work toward denuclearization and build “lasting and stable” peace at their landmark summit in Singapore in June, but little progress has been made since.

Trump has said a second summit with Kim is likely in January or February, though he wrote on Twitter last month that he was “in no hurry.”

U.S. Secretary of State Mike Pompeo made several trips to Pyongyang last year but the two sides have yet to reschedule a meeting between him and senior North Korean official Kim Yong Chol after an abrupt cancellation in November.

Pyongyang has demanded Washington lift sanctions and declare an official end to the 1950-1953 Korean War in response to its initial, unilateral steps toward denuclearization, including dismantling its only known nuclear testing site and a key missile engine facility.

SANCTIONS

U.S. officials have said the extent of initial North Korean steps were not confirmed and could be easily reversed. Washington has halted some large-scale military exercises with Seoul to aid negotiations but has called for strict global sanctions enforcement on impoverished North Korea until its full, verifiable denuclearization.

Kim’s reference to pledges not to make nuclear weapons could indicate a first moratorium on such weapons production, although it was not clear if this was conditional. While Pyongyang conducted no nuclear or missile tests last year, satellite images have pointed to continued activity at related facilities.

The U.S. special representative for North Korea, Stephen Biegun, reiterated last month that Washington had no intention of easing sanctions but had agreed to help South Korea send flu medication to North Korea, saying such cooperation could help advance nuclear diplomacy.

Analysts said Kim’s message sent clear signals that North Korea was willing to stay in talks with Washington and Seoul this year – but on its own terms.

“North Korea seems determined in 2019 to receive some sort of sanctions relief … The challenge, however, is will Team Trump be willing to back away from its position of zero sanctions relief?” said Harry Kazianis of the Washington-based Centre for the National Interest.

“Kim’s remarks seem to suggest his patience with America is wearing thin.”

After racing toward the goal of developing a nuclear-tipped missile capable of hitting the United States in 2017, Kim used last year’s New Year speech to warn that “a nuclear button is always on the desk of my office” and order mass production of nuclear bombs and ballistic missiles.

But he also offered to send a delegation to the 2018 Winter Olympics in the South in February, setting off a flurry of diplomacy that included three summits with South Korean President Moon Jae-in, and the meeting with Trump in June.

This year, Kim said inter-Korean relations had entered a “completely new phase,” and offered to resume key inter-Korean economic projects banned under international and South Korean sanctions, without conditions.

(Reporting by Hyonhee Shin, Soyoung Kim and Hyunyoung Yi; Additional reporting by David Brunnstrom and David Shepardson in Washington; Editing by Stephen Coates and Paul Simao)

Growing split in Seoul over North Korea threatens Korea detente, nuclear talks

South Korean President Moon Jae-in and North Korean leader Kim Jong Un shake hands at the truce village of Panmunjom inside the demilitarized zone separating the two Koreas, South Korea, April 27, 2018. Korea Summit Press Pool/Pool via Reuters/File Photo

By Hyonhee Shin

SEOUL (Reuters) – When Seoul was preparing to open a liaison office in the North Korean city of Kaesong this summer after a decade of virtually no contact with its longtime enemy, South Korean officials had heated debates over whether they should seek approval from Washington.

Some top aides to President Moon Jae-in stressed it was an issue for the two Koreas alone and there was no need to involve their U.S. ally, two people with knowledge of the situation told Reuters.

But to the surprise of several officials at the meeting, Unification Minister Cho Myoung-gyon argued Washington must be consulted because Seoul’s plans might run afoul of sanctions imposed on North Korea over its nuclear weapons program.

Two dozen countries including the Britain, Germany and Sweden already have embassies in Pyongyang, and other officials saw the proposed liaison office as a far lower-level of contact with the North.

And they certainly did not expect Cho to be a leading advocate of strict enforcement of sanctions. Cho was Moon’s personal choice to head the ministry, whose prime mission is to foster reconciliation, cooperation and eventual reunification with the North.

Cho, whose 30-year public service history has been inextricably linked to reunification, was even sacked from the ministry in 2008 over his “dovish” stance toward Pyongyang.

At the suggestion of Cho and senior diplomats, Seoul ultimately sought U.S. consent before opening the office in September, one of the sources said.

All the sources spoke to condition of anonymity due to sensitivity of the matter.

Cho declined to comment for this article, but a senior official at the Unification Ministry said it was aware of criticisms of Cho.

“Inter-Korean ties are unique in their nature, but it’s been difficult, and there’s North Korea’s duplicity. It’s a dilemma we face or our fate,” the official said, asking not to be named because of the sensitivity of the issue.

 

CHIEF NEGOTIATOR, OR ROADBLOCK?

The previously unreported debate among Moon’s top officials illustrates a growing divide within South Korea over how to progress relations with the North while keeping Washington on the side.

Some corners of the administration argue Seoul can’t afford to be seen veering from the U.S.-led sanctions and pressure campaign until Pyongyang gives up its nuclear weapons program, while others feel closer inter-Korean ties can help expedite the stalled diplomatic process, several officials close to the situation say.

“If the internal rift leads to moving too quickly with the North without sufficient U.S. consultations, it could pose a setback to not only the nuclear talks but also the alliance and inter-Korean relations,” said Shin Beom-chul, a senior fellow at the Asan Institute for Policy Studies in Seoul.

After the inter-Korean thaw gave way to reconciliation efforts between North Korean leader Kim Jong Un and U.S. President Donald Trump earlier this year, Trump asked Moon to be “chief negotiator” between the two.

That task has become increasingly difficult as Washington and Pyongyang blame each other for the faltering nuclear talks.

U.S. officials insist punishing sanctions must remain until North Korea completely denuclearises. North Korea says it has already made concessions by dismantling key facilities and Washington must reciprocate by easing sanctions and declaring an end to the 1950-53 Korean War.

“Unlike other advisers, Minister Cho has balanced his staunch desire for peace with an understanding of the importance of retaining a strong South Korea-U.S. alignment,” said Patrick Cronin of the Centre for a New American Security, an Asia expert in close touch with both U.S. and South Korean officials.

“Some alliance discord is inevitable and not worrisome. What would be worrisome would be a clear rupture in South Korea-U.S. approaches for managing North Korea.”

The presidential Blue House declined to comment, but Moon told reporters on Monday the view that there was discord between South Korea and the United States was “groundless” because there is no difference in the two countries’ positions on the North’s denuclearization.

SLOW PROGRESS, MOUNTING FRUSTRATION

A third source familiar with the presidential office’s thinking said there was mounting frustration with Cho within the Blue House and even inside the Unification Ministry amid concerns he worried too much about U.S. views.

“What the president would want from him as the unification minister is to come up with bold ideas to make his pet initiatives happen,” the source said.

During three summits this year, Moon and Kim agreed to re-link railways and roads, and when conditions are met, restart the joint factory park in Kaesong and tours to the North’s Mount Kumgang resort that have been suspended for years.

None of those plans have made much headway, either because sanctions ban them outright, or as in the case of Kaesong, Seoul took time to convince skeptical U.S. officials that cross-border projects wouldn’t undermine sanctions.

North Korea itself has been an unpredictable partner. Discussions through the Kaesong office have been few and far between, with Pyongyang’s negotiators often failing to show up for scheduled weekly meetings without notice, Unification Ministry officials say.

Even so, the Kaesong move has caused tensions with Washington.

U.S. officials told Seoul that South Korea’s explanations on the Kaesong office were not “satisfactory,” the South’s Foreign Minister Kang Kyung-wha told a parliamentary hearing in August.

Washington was also caught off guard when a group of businessmen who used to operate factories in the now-closed Kaesong industrial park were invited for the opening ceremony of the office, a diplomatic source in Seoul said.

The allies launched a working group last month led by their nuclear envoys to coordinate North Korean policy. It was borne out of U.S. desire to “keep inter-Korean relations in check,” the source said.

Asked about the Kaesong office, a U.S. State Department official said: “We expect all member states to fully implement U.N. sanctions, including sectoral goods banned under UN Security Council resolution, and expect all nations to take their responsibilities seriously to help end (North Korea’s) illegal nuclear and missile programs.”

Another State official said the United States endorsed April’s inter-Korean summit agreement during its own summit with North Korea “because progress on inter-Korean relations must happen in lockstep with progress on denuclearization.”

Last month, Secretary of State Mike Pompeo met Cho in Washington, bluntly warning him that inter-Korean cooperation and progress on nuclear negotiations should “remain aligned.”

FILE PHOTO: South Korean Unification Minister Cho Myoung-gyon walks to board a plane to leave for Pyongyang, North Korea, to participate in the inter-Korean basketball matches, at Seoul Airport in Seongnam, South Korea, July 3, 2018. Ahn Young-joon/Pool via REUTERS/File Photo

FILE PHOTO: South Korean Unification Minister Cho Myoung-gyon walks to board a plane to leave for Pyongyang, North Korea, to participate in the inter-Korean basketball matches, at Seoul Airport in Seongnam, South Korea, July 3, 2018. Ahn Young-joon/Pool via REUTERS/File Photo

ROCK AND A HARD PLACE

Even as he faced pressure from Washington to hold a tough line, Cho was being criticized for dragging his feet on reconciliation.

In May, the North called off planned talks with the South led by Cho in protest against U.S.-South Korean air combat exercises. When the meeting eventually took place, Cho’s counterpart, Ri Son Gwon, openly blamed Cho for having caused a “grave situation” that resulted in the cancellation of the talks.

At the Kaesong office opening, factory owners pressed Cho to reopen the complex and said they were dismayed at the Unification Ministry for repeatedly rejecting requests to visit the border city to check on equipment and facilities idled since the 2016 shutdown.

“We’ve expressed, directly and indirectly, our complaint that the minister may be too lukewarm about our requests, even though allowing the trip has nothing to do with sanctions,” said Shin Han-yong, who chairs a group of businessmen with plants in Kaesong.

Cho recently told the parliament the delays are due to scheduling issues with the North, adding the ministry “needs more time to explain the overall circumstances” to the international community.

Shin, the expert at Asan, warned any move to undermine sanctions may expose South Korean companies to risks of punishment.

After Moon and Kim’s summit in Pyongyang in September, a senior U.S. Treasury official called compliance officers at seven South Korean banks to warn them that resuming financial cooperation with North Korea “does not align with U.S. policies” and the banks must comply with U.N. and U.S. financial sanctions, according to a South Korean regulatory document.

“Realistically we have no option but to consider U.S. positions, as the top priority is the North’s denuclearization and the United States has the biggest leverage on that,” said Kim Hyung-suk, who served as vice unification minister until last year.

“Without progress on the nuclear issues, there would be constraints at some point in sustaining inter-Korean ties. And Minister Cho knows that.”

(Editing by Soyoung Kim and Lincoln Feast.)

Trump releases first two names of U.S. war dead handed over by North Korea

FILE PHOTO: A U.S. Marine stands as caskets containing the remains of American servicemen from the Korean War handed over by North Korea arrive at Joint Base Pearl Harbor-Hickam in Honolulu, Hawaii, Aug. 1, 2018. REUTERS/Hugh Gentry/File Photo

WASHINGTON (Reuters) – U.S. President Donald Trump released the names on Thursday of two Army soldiers killed in the 1950-1953 Korean War whose remains were handed over by North Korea this year in a goodwill gesture.

Trump said the first remains identified by the U.S. military belonged to Army Master Sergeant Charles H. McDaniel, 32, of Vernon, Indiana, and Army Private First Class William H. Jones, 19, of Nash County, North Carolina.

“These HEROES are home, they may Rest In Peace, and hopefully their families can have closure,” Trump said in his Twitter post.

North Korea handed over 55 boxes containing the remains of war dead in July, fulfilling a pledge by North Korean leader Kim Jong Un during his June summit with the U.S. president in Singapore.

The remains, which were repatriated to Hawaii on Aug. 1, included only one “dog tag,” a form of identification in the U.S. military.

The U.S. Defense POW/MIA Accounting Agency (DPAA) said earlier this month it had identified the first two American troops from the boxes of remains, but declined to name them publicly, saying their relatives would be notified first.

On Thursday, the DPAA said it was hoping to speak next month with the North Korean military about resuming field operations inside North Korea to find remains of U.S. service members.

“We have communicated, through the DPRK mission to the U.N., an invitation to sit down with them to negotiate the resumption of field operations inside North Korea that would commence in the spring of 2019,” Kelly McKeague, director of the DPAA, told Reuters.

McKeague said North Korea had not yet accepted the invitation.

More than 7,700 U.S. troops remain unaccounted for from the Korean War.

The United States and North Korea worked together on joint field activities to recover remains from 1996 to 2005, until Washington halted operations, expressing concerns about the safety of its personnel.

The Trump administration has hailed the handover of the remains as evidence of the success of Trump’s summit with Kim.

The administration said on Wednesday it was ready to resume talks with North Korea after Pyongyang pledged to dismantle key missile facilities and suggested it would close its main Yongbyon nuclear complex in exchange for unspecified action by Washington.

(Reporting by Idrees Ali and David Alexander; Editing by G Crosse and Peter Cooney)

North Korea’s Kim wants another Trump summit to speed denuclearization: South Korea’s Moon

South Korean President Moon Jae-in and North Korean leader Kim Jong Un walk during a luncheon, in this photo released by North Korea's Korean Central News Agency (KCNA) on September 21, 2018. KCNA via REUTERS

By Hyonhee Shin and Joyce Lee

SEOUL (Reuters) – North Korea’s Kim Jong Un wants a second summit with U.S. President Donald Trump soon to hasten denuclearization, but a key goal is declaring an end this year to the 1950-53 Korean War, the South’s President Moon Jae-in said on Thursday.

Moon said he and Kim spent most of a three-day summit discussing how to break an impasse and restart nuclear talks between Pyongyang and Washington, which are at odds over which should come first, denuclearization or ending the war.

Kim, who recently proposed another summit with Trump after their unprecedented June talks in Singapore, said the North was willing to “permanently dismantle” key missile facilities in the presence of outside experts, and the Yongbyon main nuclear complex, if the United States took corresponding action.

The joint statement from the summit stipulates his commitment to a “verifiable, irreversible dismantlement” of the nuclear programs, and ending the war would be a first U.S. reciprocal step, Moon said.

“Chairman Kim expressed his wish that he wanted to complete denuclearization quickly and focus on economic development,” Moon told a news conference in Seoul, shortly after returning from the summit with Kim in Pyongyang.

“He hoped a second summit with Trump would take place in the near future, in order to move the denuclearization process along quickly.”

INSPECTIONS

Moon said Kim was also open to inspection of a nuclear test site in the northwest town of Punggye-ri, which he called the North’s sole existing facility for underground detonations.

While Pyongyang has stopped nuclear and missile tests this year, it failed to keep its pledge to allow international inspections of its dismantling of the Punggye-ri site in May, stirring criticism that the move could be reversed.

U.S. Secretary of State Mike Pompeo said on Wednesday he had invited North Korea’s foreign minister to meet in New York next week and other Pyongyang officials to Vienna for talks with nuclear envoy Stephen Biegun.

Asked on Thursday if those meetings would take place, U.S. State Department spokeswoman Heather Nauert said invitations had been sent and added: “We certainly stand ready to meet if they are able to.”

Nauert said Washington looked forward to a formal readout of the North-South talks in meetings with the South Koreans next week, which will include one between Trump and Moon on Monday on the sidelines of the U.N. General Assembly.

Asked about Pompeo’s statement on Wednesday welcoming plans for the dismantlement of all facilities at Yongbyon in the presence of U.S. and IAEA inspectors, Nauert said Moon and Kim had talked about inspectors.

“Having IAEA inspectors and United States inspectors be a part of anything is really just a shared understanding,” she said.

“Any time you have a nuclear situation like this where there is a dismantlement, the expectation is that the IAEA would be part of that, so that would be just the normal course of doing business. We have that shared understanding with the countries.”

Asked why this detail was not in the document signed by Moon and Kim, Nauert replied: “We have had conversations … with the government of North Korea and that is our mutual understanding; that is also the understanding between (South) Korea and North Korea. That was one of the things discussed, according to my understanding of it, over the past few days.”

Nauert did not respond when asked if the United States was willing to take “corresponding measures,” except to say: “Nothing can happen in the absence of denuclearization; denuclearization has to come first.”

The North Korean ambassador to the United Nations, Kim Song, did not reply when asked by reporters on Thursday if his foreign minister would meet Pompeo on the sidelines of the U.N. General Assembly next week.

ENDING WAR

Kim pledged to work toward the “complete denuclearization of the Korean peninsula” during two meetings with Moon and his encounter with Trump, but follow-up negotiations on how to implement the vague commitments have since faltered.

Washington calls for concrete action, such as a full disclosure of North Korea’s nuclear and missile facilities, before satisfying Pyongyang’s key demands, including an official end to the war and the easing of international sanctions.

The war ended in an armistice, rather than a peace treaty, meaning U.S.-led United Nations forces, including South Korea, are technically still at war with the North.

But there have been concerns in South Korea and the United States that ending the war would ultimately prompt China and Russia, if not North Korea, to demand that the United Nations Command (UNC), which overlaps with U.S. forces in South Korea, be disbanded and leave.

Seoul aims to jointly announce with the United States an end to the war within this year, a measure Moon said he would discuss with Trump when they meet next week at the United Nations General Assembly in New York.

An end-of-war declaration would not affect the presence of U.S. troops and the UNC in the South, Moon said, adding that Kim shared his view.

“It would be a political declaration that would mark a starting point for peace negotiations,” Moon said.

“A peace treaty would be sealed, as well as normalization of North Korea-U.S. relations, after the North achieves complete denuclearization.”

(Reporting by Hyonhee Shin and Joyce Lee; additional repotring by David Brunnstrom in Washington and Michelle Nichols at the United Nations; editing by Soyoung Kim, Clarence Fernandez and Lisa Shumaker)

North Korea’s Kim says summit with Trump stabilized region, sees more progress

South Korean President Moon Jae-in and North Korean leader Kim Jong Un wave during a car parade in Pyongyang, North Korea, September 18, 2018. Pyeongyang Press Corps/Pool via REUTERS

By Hyonhee Shin and Joyce Lee

SEOUL (Reuters) – North Korean leader Kim Jong Un said on Tuesday his “historic” summit with U.S. President Donald Trump in Singapore stabilized regional security, and that he expected further progress at an inter-Korean summit aimed at reviving stalled nuclear diplomacy.

Kim thanked South Korea’s President Moon Jae-in for bringing about the Singapore meeting in June as the two leaders began their third round of talks in Pyongyang.

“Thanks to that, the political situation in the region has stabilized and I expect more advanced results,” Kim told Moon, referring to the Singapore gathering, at the start of their talks.

The Kim-Moon summit will be a litmus test for another meeting Kim has recently proposed to Trump, with the South Korean president seeking to engineer a proposal that combines a framework for the North’s denuclearization and a joint declaration ending the 1950-53 Korean War.

Moon expressed gratitude for Kim’s “bold decision to open a new era”.

The first session of the talks, which lasted for two hours, were held at the headquarters of the North’s ruling Workers’ Party Central Committee, with party vice chairman Kim Yong Chol and Kim Jong Un’s sister Kim Yo Jong, as well as South Korea’s national security adviser Chung Eui-yong and spy chief Suh Hoon in attendance.

LIMOUSINE PARADE

Earlier, the leaders paraded down the streets of Pyongyang in Kim’s black Mercedes limousine to loud cheers from nearly 100,000 North Koreans who waved flowers and chanted “Motherland!Unification!”

Kim greeted Moon with hugs and handshakes as the South Korean leader landed in the North’s capital with a mission to rekindle momentum in faltering talks between Washington and Pyongyang over denuclearization and a formal end to the 1950-53 Korean War.

As Kim escorted Moon to the Paekhwawon State Guest House, where Moon will stay during his three-day visit, Kim said he wanted to produce a “bigger outcome at a faster pace” than the two leaders have achieved so far.

Moon, himself the offspring of a family displaced by the war, has met Kim twice this year at the border village of Panmunjom.

“You Mr. President are traveling all around the world, but our country is humble compared with developed nations,” Kim told Moon. “I’ve been waiting and waiting for today. The level of the accommodation and schedule we provide may be low, but it’s our best sincerity and heart.”

Moon said it was “time to bear fruit” and thanked Kim for his hospitality, which included a massive welcome ceremony at Pyongyang International Airport featuring a large, goose-stepping honor guard and a military band.

During their motor parade through Pyongyang’s landmark Ryomyong Street, a new residential district launched last year under Kim’s initiative to modernize the city, Kim and Moon briefly stepped out of the vehicle to greet and take flowers from members of the crowd.

“CHIEF NEGOTIATOR”

Trump has asked Moon to be “chief negotiator” between himself and Kim, according to Moon’s aides, after Trump canceled a trip to Pyongyang by his secretary of state last month.

Washington wants to see concrete action toward denuclearization by North Korea before agreeing to a key goal of Pyongyang – declaring an end to the 1950-53 Korean War.

The conflict ended with an armistice, not a peace treaty, leaving U.S.-led U.N. forces including South Korea technically still at war with the North.

South Korea is pinning high hopes on Kim’s remarks to Moon’s special envoys earlier this month that he wants to achieve denuclearization within Trump’s first term in office ending in early 2021.

“If North Korea-U.S. dialogue is restarted after this visit, it would have much significance in itself,” Moon said before his departure.

Underscoring the challenges ahead, North Korea’s official Rodong Sinmun said on Tuesday “the responsibility falls squarely on the United States” for the stalled nuclear discussions.

“It is due to its nonsensical, irrational stubbornness that other issues can only be discussed after our country has completely verifiably, irreversibly dismantled our nuclear capabilities… without showing the intention to build trust including declaring the end of war,” the newspaper said in an editorial.

On Wednesday, Moon and Kim plan to hold a second day of official talks after which they are expected to unveil a joint statement, and a separate military pact designed to defuse tensions and prevent armed clashes. Moon will return home early Thursday.

Traveling with Moon are South Korean business tycoons, including Samsung scion Jay Y. Lee and the chiefs of SK Group and LG Group. They met North Korean Deputy Prime Minister Ri Ryong Nam, who is in charge of economic affairs, although Seoul officials said they did not expect any specific joint economic projects to be agreed given extensive international sanctions.

The United States is pressing other countries to strictly observe U.N. sanctions aimed at choking off funding for Pyongyang’s nuclear and ballistic missile programs.

North Korea says it has destroyed its main nuclear and missile engine test site and has halted atomic and ballistic missile tests, but U.S. officials and analysts believe it is continuing to work on its weapons plans covertly.

U.S. Ambassador to the United Nations Nikki Haley accused Russia on Monday of “cheating” on U.N. sanctions on North Korea.

(Reporting by Hyonhee Shin, Joyce Lee, Soyoung Kim and Pyongyang Press Corps; Editing by Lincoln Feast and Alex Richardson)

North Korea tells U.S. denuclearization talks may fall apart

FILE PHOTO: U.S. President Donald Trump addresses members of his cabinet and the news media as Secretary of State Mike Pompeo looks on during a cabinet meeting at the White House in Washington, U.S., August 16, 2018. REUTERS/Kevin Lamarque

WASHINGTON/SEOUL (Reuters) – North Korean officials have warned in a letter to the United States that denuclearization talks were “again at stake and may fall apart”, CNN reported on Tuesday, citing people familiar with the matter.

The letter was delivered directly to U.S Secretary of State Mike Pompeo, and stated that North Korean leader Kim Jong Un’s government felt that the process could not move forward.

“The U.S. is still not ready to meet (North Korean) expectations in terms of taking a step forward to sign a peace treaty,” CNN reported, citing sources.

The 1950-1953 Korean War ended in an armistice rather than a peace treaty, leaving U.S.-led U.N. forces technically still at war with North Korea.

FILE PHOTO: U.S. President Donald Trump and North Korea's leader Kim Jong Un leave after signing documents that acknowledge the progress of the talks and pledge to keep momentum going, after their summit at the Capella Hotel on Sentosa island in Singapore June 12, 2018. REUTERS/Jonathan Ernst/File Photo

FILE PHOTO: U.S. President Donald Trump and North Korea’s leader Kim Jong Un leave after signing documents that acknowledge the progress of the talks and pledge to keep momentum going, after their summit at the Capella Hotel on Sentosa island in Singapore June 12, 2018. REUTERS/Jonathan Ernst/File Photo

The North has long made clear that it sees an official end to the state of war as crucial to lowering tensions on the Korean peninsula.

The United States has been reluctant to declare an end to the Korean War until after North Korea abandons its nuclear weapons program.

The Washington Post reported on Monday that U.S. President Donald Trump called off a visit to North Korea by Pompeo after the latter received a belligerent letter from a senior North Korean official just hours after the trip was announced last week.

CNN reported that the letter was sent by the former head of North Korea’s spy agency, Kim Yong Chol, but it was not known how it was sent. The Washington Post said North Korea had been increasingly communicating through its U.N. mission.

CNN reported that the letter also mentioned that if a compromise could not be reached and the nascent talks crumble, North Korea could resume “nuclear and missile activities”.

‘PLOT’

On Sunday, North Korea’s state media accused the United States of “double-dealing” and “hatching a criminal plot” but did not mention Pompeo’s canceled visit.

The Washington Post said the exact contents of the message were unclear, but it was sufficiently belligerent that Trump and Pompeo decided to call off the planned trip.

The trip had been announced the previous day for this week and Pompeo had intended to introduce a newly named special envoy, Stephen Biegun, to his North Korean counterparts.

The White House referred queries on the Washington Post report to the State Department, which did not immediately respond to a request for comment.

In canceling Pompeo’s trip, Trump publicly acknowledged for the first time that his effort to get North Korea to denuclearize had stalled since his June 12 summit with Kim in Singapore.

U.S. intelligence and defense officials have repeatedly expressed doubts about North Korea’s willingness to give up its nuclear weapons and they had not expected Pompeo’s trip to yield positive results.

A South Korea presidential spokesman said he was not in a position to comment on the authenticity of the letter but acknowledged that talks between Washington and Pyongyang were in a stalemate.

“With North Korea and the U.S. remaining stalemated, there is an even bigger need for an inter-Korea summit,” Kim Eui-kyeom, a spokesman for the presidential Blue House told a briefing.

South Korea’s President Moon Jae-in said this month his planned third summit with North Korea’s Kim next month would be another step towards the denuclearization of the Korean peninsula and an end to the Korean War.

(Reporting by Mekhla Raina in BENGALURU, David Brunnstrom and Matt Spetalnick in WASHINGTON, Cynthia Kim in SEOUL; Editing by Peter Cooney, Robert Birsel)