Tag Archives: North Korea

China seethes on sidelines amid latest North Korea crisis

China seethes on sidelines amid latest North Korea crisis

By Ben Blanchard and Michael Martina

BEIJING (Reuters) – Angered as the United States and its allies ignore Chinese calls to calm tensions over North Korea, and distracted by domestic concerns, China is largely sitting out the latest crisis with nuclear-armed Pyongyang.

While a conflict on the Korean peninsula would affect China, and in worst-case scenarios unleash a radioactive cloud or waves of refugees into its northeast, Beijing has kept a low profile as tension has escalated in recent days.

North Korea dismissed on Thursday warnings by U.S. President Donald Trump that it would face “fire and fury” if it threatened the United States as a “load of nonsense”, and outlined plans for a missile strike near the Pacific territory of Guam.

China, whose regular daily foreign ministry press briefings are suspended for a two week summer holiday, has said little in public about the situation this week, reiterating its usual calls for calm and restraint.

President Xi Jinping has been out of the public eye for more than a week, likely because he is at a secretive Communist Party conclave in the seaside resort of Beidaihe preparing for a key party congress in the autumn, diplomats say.

One Beijing-based Asian diplomat said China was also distracted by a protracted border dispute with India.

“China has different priorities and it’s clear what they are,” said the diplomat, speaking on condition of anonymity.

State media has as usual called for dialogue to end the crisis, but has also lambasted the United States and its allies for doing little to damp down the flames.

The official Xinhua news agency on Thursday accused Japan of “fishing in troubled waters”, using North Korea as an excuse for its own remilitarization. Japan issued a defense white paper this week that warned it was possible that North Korea had already developed nuclear warheads.

Also Thursday, the influential Chinese tabloid Global Times said Washington “only wants to heighten the sanctions and military threats against Pyongyang”.

MAD OVER THAAD

Seoul has fared little better, with China directing anger its way over South Korea’s deployment of the Terminal High Altitude Area Defense (THAAD) anti-missile system. Beijing says THAAD threatens its own security, fearing that its powerful radar will see far into China, and will do nothing to bring North Korea back to talks.

“China is not too worried that the United States might suddenly attack North Korea. It is worried about THAAD,” said Sun Zhe, co-director of the China Initiative of Columbia University’s School of International and Public Affairs.

China remains North Korea’s most important ally and trading partner, despite Beijing’s anger at Pyongyang’s missile and nuclear programs.

China has signed up for tough United Nations sanctions that were agreed on Saturday and says it is committed to enforcing them.

Yet Beijing has been upset by complaints from Washington and Tokyo it is not doing enough to rein in North Korea. The foreign ministry last month called for an end to what it termed the “China responsibility theory”.

China also believes its influence over North Korea, whose relationship China used to describe as “close as lips and teeth,” is limited.

“China has never ‘owned’ North Korea, and North Korea has never listened to China’s suggestions,” said Zhang Liangui, a North Korea expert at China’s Central Party School, which trains rising officials.

“Neither North Korea nor the United States listens to China. They’re too busy heading down the path to a military clash. There’s not much China can do. China can’t stop North Korea and it can’t stop the United States.”

China’s recent relationship with North Korea soured around 2013 as Pyongyang stepped up its missile and nuclear programs, rejecting Chinese efforts to engage the country economically and encourage it to open up.

Chinese officials have for years doubted the efficacy of sanctions, although Foreign Minister Wang Yi said this week that they were needed. However, he said the final aim should be to resolve the issue via talks as only that would ensure lasting peace and stability.

Wang Dong, associate professor of international studies at the elite Peking University, said China had tried hard to prevent the situation from getting out of control. He also said Trump’s domestic problems could play into the current crisis, referring to the U.S. investigation into possible Russian meddling in last year’s presidential election.

“When facing increasingly difficult domestic problems, Trump might have an increasing incentive to do something. Maybe he initially would want a limited military conflict,” Wang said. “So people are certainly worried about that.”

(Editing by Philip McClellan)

North Korea considers missile strike on Guam after Trump’s ‘fire and fury’ warning

North Korea considers missile strike on Guam after Trump's 'fire and fury' warning

By Maureen N. Maratita and Christine Kim

GUAM/SEOUL (Reuters) – North Korea said on Wednesday it is considering plans for a missile strike on the U.S. Pacific territory of Guam, just hours after President Donald Trump told the North that any threat to the United States would be met with “fire and fury”.

The sharp increase in tensions rattled financial markets and prompted warnings from U.S. officials and analysts not to engage in rhetorical slanging matches with North Korea, which regularly threatens to destroy the United States.

North Korea said it was “carefully examining” a plan to strike Guam, which is home to about 163,000 people and a U.S. military base that includes a submarine squadron, an airbase and a Coast Guard group.

A Korean People’s Army spokesman said in a statement carried by state-run KCNA news agency the plan would be put into practice at any moment, once leader Kim Jong Un made a decision.

Guam Governor Eddie Calvo dismissed the threat and said the island was prepared for “any eventuality” with strategically placed defenses. He said he had been in touch with the White House and there was no change in the threat level.

“Guam is American soil … We are not just a military installation,” Calvo said in an online video message.

North Korea, which is pursuing missile and nuclear weapons programs in defiance of U.N. Security Council resolutions, also accused the United States of devising a “preventive war” and said in another statement that any plans to execute this would be met with an “all-out war, wiping out all the strongholds of enemies, including the U.S. mainland”.

Washington has warned it is ready to use force if needed to stop North Korea’s ballistic missile and nuclear programs but that it prefers global diplomatic action, including sanctions. The U.N. Security Council unanimously imposed new sanctions on North Korea on Saturday.

Trump issued his strongest warning yet for North Korea in comments to reporters in New Jersey on Tuesday.

“North Korea best not make any more threats to the United States. They will be met with fire and fury like the world has never seen,” Trump said.

U.S. Secretary of State Rex Tillerson, before landing in Guam on a pre-arranged visit, said Trump was trying to send a strong message.

“So I think the president, what the president is doing, is sending a strong message to North Korea in language that Kim Jong Un would understand, because he doesn’t seem to understand diplomatic language,” Tillerson told reporters.

Just moments after Tillerson’s remarks were reported, Trump hammered home his tough talk in a Twitter post about the U.S. nuclear arsenal, in what looked like another warning to North Korea.

“My first order as President was to renovate and modernize our nuclear arsenal,” he said. “It is now far stronger and more powerful than ever before.”

China, North Korea’s closest ally despite Beijing’s anger at Pyongyang’s missile and nuclear programs, described the situation as “complex and sensitive”, and urged calm and a return to talks.

“China calls on all sides to uphold the main direction of a political resolution to the Korean peninsula nuclear issue, and avoid any words or actions that may intensify the problem and escalate the situation,” it said in a statement sent to Reuters, repeating its customary stance.

“‘BLACK SWAN’ EVENT”

North Korea has made no secret of its plans to develop a nuclear-tipped missile able to strike the United States and has ignored all calls to halt its weapons programs.

Pyongyang says its intercontinental ballistic missiles (ICBMs) are a legitimate means of defense against perceived U.S. hostility, including joint military drills with South Korea.

The standoff drove investors out of stocks on Wednesday and into the safety of the yen, Swiss franc, gold and government debt. South Korea’s benchmark index <.KS11> and Japan’s Nikkei <.N225> both closed down more than 1 percent. [MKTS/GLOB]

“Tensions will continue to mount and could eventually develop into a ‘black swan’ event that the markets are not prudently considering,” Steve Hanke, professor of Applied Economics at Johns Hopkins University, told the Reuters Global Markets Forum.

South Korea and the United States remain technically still at war with North Korea after the 1950-53 Korean conflict ended with a truce, not a peace treaty.

The South Korean capital, Seoul, is home to roughly 10 million people and within range of massed North Korean rockets and artillery, which would be impossible to destroy in a first U.S. strike.

Tens of thousands of U.S. troops remain stationed in South Korea and in nearby Japan, the only country to have been attacked with nuclear weapons. Wednesday marked the 72nd anniversary of the atomic bombing of the city of Nagasaki by the United States.

“WAR, WAR, WAR”

A senior official at South Korea’s presidential Blue House rejected talk of a crisis on the Korean peninsula, saying Seoul saw a high possibility of resolving the issue peacefully.

North Korea needed to realize its provocations are making the country more isolated and it should respond to the South’s proposal for dialogue, the official said.

In Dandong, a Chinese trading hub across the border from North Korea, residents said they were unperturbed by the escalating rhetoric.

“North Korea always talks about war, war, war, but it never happens,” said a restaurant owner who asked to be identified only by her surname, Yang.

“We now live in peaceful times. But if war does break out it will be us ordinary people that suffer.”

Tension in the region has risen since North Korea carried out two nuclear bomb tests last year and two ICBM tests in July.

Japanese fighters conducted joint air drills with U.S. supersonic bombers in Japanese skies close to the Korean peninsula on Tuesday, Japan’s Air Self Defence Force said.

On Monday, two U.S. B-1 bombers flew from Guam over the Korean peninsula as part of its “continuous bomber presence”, a U.S. official said, in a sign of the island’s strategic importance.

DEEPLY TROUBLING

Guam, popular with Japanese and South Korean tourists, is protected by the advanced U.S. Terminal High Altitude Area Defense (THAAD) anti-missile system, deployed in South Korea.

“I know they’ve not been successful,” Vilma Quichocho, a treasurer at Guam’s Department of Administration, said of previous attempts to launch missiles from North Korea. “But now they’re talking about nuclear warheads and it’s kind of scary.”

Madeleine Z. Bordallo, the U.S. Congresswoman for Guam, said she was confident U.S. forces could protect it from the “deeply troubling” North Korean nuclear threat. She called on Trump to show “steady leadership” and work with the international community to lower tension.

Seoul resident Kim Sung-un, 29, said North Korea tended to make a lot of threats about missile attacks, but did not follow through.

“So I am leaning toward going to Guam, but also at the same time, I can’t help feeling anxious about it,” she said.

Republican U.S. Senator John McCain said Trump should tread cautiously when issuing threats, unless he is prepared to act.

“I take exception to the president’s comments because you’ve got to be sure you can do what you say you’re going to do,” he said in a radio interview.

Former U.S. diplomat Douglas Paal, now with the Carnegie Endowment for International Peace think tank in Washington, said Trump should not get into a war of words with Pyongyang.

“It strikes me as an amateurish reflection of a belief that we should give as we get rhetorically. That might be satisfying at one level, but it takes us down into the mud that we should let Pyongyang enjoy alone,” said Paal, who served as a White House official under previous Republican administrations.

In a small show of goodwill, North Korea said on Wednesday it had released a Canadian pastor serving a life sentence there on humanitarian grounds.

There was no obvious direct connection between the release and the standoff with the United States, but North Korea has in the past attracted the attention of Washington, and visits by high-profile Americans, with the detention and release of U.S. citizens.

(Additional reporting by Soyoung Kim in SEOUL, Amy Miyazaki, Linda Sieg and Tim Kelly in TOKYO, Philip Wen in DANDONG, Martin Petty in MANILA, James Oliphant, Doina Chiacu, Susan Heavey, John Walcott, Idrees Ali and David Brunnstrom in WASHINGTON, Rodrigo Campos in NEW YORK, and Divya Chowdhury in MUMBAI; Writing by Lincoln Feast; Editing by Paul Tait and Nick Macfie)

Tillerson in Thailand presses for more action on North Korea

U.S. Secretary of State Rex Tillerson shakes hands with Thailand's Foreign Minister Don Pramudwinai at the Ministry of Foreign Affairs in Bangkok, Thailand August 8, 2017. REUTERS/Athit Perawongmetha

By Amy Sawitta Lefevre

BANGKOK (Reuters) – U.S. Secretary of State Rex Tillerson on Tuesday pressed Thai leaders for more action on North Korea during the highest level visit to Thailand by a U.S. official since a military coup in 2014 soured relations with the United States.

Tillerson’s top priority has been urging Southeast Asian countries to do more to cut funding streams for North Korea.

The United States believes North Korean front companies are active in Thailand and is trying to encourage the Thais to shut them down, Assistant Secretary for East Asian and Pacific Affairs Susan Thornton told reporters aboard Tillerson’s plane.

The companies are using Bangkok as a regional hub and change their names frequently, she said.

Before meeting Tillerson, Prime Minister Prayuth Chan-ocha said Thailand would support a U.N. resolution on new sanctions on Pyongyang over its missile tests. But he made no mention of specific action.

The United States was encouraging Thailand to take as many North Korean refugees as it can handle, Thornton said. Reuters reported exclusively last week that the number of North Koreans slipping illegally into Thailand has surged in recent months.

Thailand’s own politics and human rights record were also in focus, as Washington strengthens relations with its oldest ally in the region after they were downgraded following the coup.

“We want Thailand to emerge as a strengthened democracy that respects and guarantees human rights and fundamental freedoms at home and plays a leading role in advancing regional security and prosperity,” a US embassy spokesman said.

“UPS AND DOWNS”

Tillerson offered no specific message on human rights when he spoke to the American community at the ambassador’s residence and highlighted the 200-year-old relationship.

“We want to continue to grow that relationship, even in its ups and downs,” he said.

Tillerson met Thailand’s foreign minister, Don Pramudwinai, before junta chief Prayuth. Don also emphasized support for the U.N. resolution on North Korea.

Following his meeting with Tillerson, Don told reporters in Bangkok that trade between Thailand and North Korea had dropped by as much as 94 percent over the past year.

“Thailand will act as a good member of the United Nations … one result is trade which dropped significantly. It dropped 94 percent,” Don told reporters.

U.S. President Donald Trump has spoken to Prayuth by telephone and invited him to the White House, but no date has been set yet.

Human rights groups have voiced concern about the re-establishment of normal relations while Thailand’s junta continues to crack down on critics.

“It would be a practical mistake for Tillerson to not condition positive diplomatic relations on improvements in the protection of human rights,” Matthew Smith, of the Fortify Rights group, told Reuters.

Thailand’s military seized power in May 2014 after months of street protests with a promise to eventually restore democracy, but elections will not happen before next year and a new constitution retains a powerful political say for the army.

Since the coup, Thailand has aligned itself more closely with Beijing, and this year approved purchases of more than $500 million worth of Chinese submarines, tanks and helicopters, besides construction of a new rail link.

Another source of friction is Thailand’s trade surplus over the United States. It was the 11th largest last year, at nearly $19 billion, although Thai officials expect a sharp rise in U.S. imports to reduce it.

During his five-hour visit to Bangkok, Tillerson signed a condolence book for the revered late King Bhumibol Adulyadej, whose death after seven decades on the throne was felt deeply in Thailand.

Tillerson’s visit follows his attendance at a regional security forum in Manila at the weekend.

(Additional reporting by Aukkarapon Niyomyat, Juarwee Kittisilpa and Panu Wongcha-um; Editing by Matthew Tostevin and Clarence Fernandez)

Japan defense review warns of enhanced North Korea threats

Japan's Defence Minister Itsunori Onodera attends a news conference at Defence Ministry in Tokyo, Japan August 8, 2017. REUTERS/Issei Kato

By Kiyoshi Takenaka

TOKYO (Reuters) – Japan warned on Tuesday against the acute threat posed by North Korea’s weapons programs as Pyongyang’s continued series of missile and nuclear tests, in defiance of U.N. sanctions, brings technological progress to the reclusive state.

Japan released its annual Defence White Paper after North Korea fired two intercontinental ballistic missiles (ICBMs) last month on lofted trajectories to land off Japan’s west coast.

“It is conceivable that North Korea’s nuclear weapons program has already considerably advanced and it is possible that North Korea has already achieved the miniaturization of nuclear weapons and has acquired nuclear warheads,” the Defence Ministry said.

“Since last year, when it forcibly implemented two nuclear tests and more than 20 ballistic missile launches, the security threats have entered a new stage,” it added in the 563-page document.

North Korea’s latest ICBM test showed Pyongyang may now be able to reach most of the continental United States, two U.S. officials have told Reuters.

The growing threat has prompted Japanese municipalities to hold evacuation drills in case of a possible missile attack, and boosted demand for nuclear shelters.

Missiles launched on a lofted trajectory were difficult to intercept, the defense ministry said.

With North Korea pressing ahead with missile tests, a group of ruling party lawmakers led by Itsunori Onodera, who became defense minister on Thursday, urged Prime Minister Shinzo Abe in March to consider acquiring the capability to hit enemy bases.

If realized, that would be a drastic change in Japan’s defense posture. Tokyo has so far avoided taking the controversial and costly step of acquiring bombers or cruise missiles with the range to strike other countries.

“North Korea’s missiles represent a deepening threat. That, along with China’s continued threatening behavior in the East China Sea and South China Sea, is a major concern for Japan,” Onodera told a news briefing in Tokyo.

The ministry said the number of Japan’s jet scrambles against Chinese aircraft hit a record in the year to March 2017. The first confirmed advancement of China’s aircraft carrier to the Pacific also came in December 2016.

“There is a possibility that their naval activities, as well as air force activities, will pick up pace in the Sea of Japan from now on,” the ministry said.

“We need to keep a close eye on the Chinese naval force’s activity,” it added.

Tokyo’s ties with Beijing have long been plagued by a territorial dispute over a group of tiny, uninhabited East China Sea islets and the legacy of Japan’s wartime aggression.

Chinese Foreign Minister Wang Yi dismissed the white paper, telling state television in Manila, which he visited for a regional security meeting, that Japan was “playing the same old tune”.

(Reporting by Kiyoshi Takenaka; Additional reporting by Tim Kelly, and Ben Blanchard in BEIJING; Editing by Paul Tait and Clarence Fernandez)

China says willing to pay the price for new North Korea sanctions

China says willing to pay the price for new North Korea sanctions

By Ben Blanchard

BEIJING (Reuters) – China will pay the biggest price from the new United Nations sanctions against North Korea because of its close economic relationship with the country, but will always enforce the resolutions, Chinese Foreign Minister Wang Yi said.

The United Nations Security Council unanimously imposed new sanctions on North Korea on Saturday that could slash its $3 billion annual export revenue by a third.

Speaking at a regional security forum in Manila on Monday, Wang said the new resolution showed China and the international community’s opposition to North Korea’s continued missile tests, the foreign ministry said in a statement on Tuesday.

“Owing to China’s traditional economic ties with North Korea, it will mainly be China paying the price for implementing the resolution,” the statement cited Wang as saying.

“But in order to protect the international non-proliferation system and regional peace and stability, China will as before fully and strictly properly implement the entire contents of the relevant resolution.”

China has repeatedly said it is committed to enforcing increasingly tough U.N. resolutions on North Korea, though it has also said what it terms “normal” trade and ordinary North Koreans should not be affected.

The latest U.N. resolution bans North Korean exports of coal, iron, iron ore, lead, lead ore and seafood. It also prohibits countries from increasing the numbers of North Korean laborers currently working abroad, bans new joint ventures with North Korea and any new investment in current joint ventures.

DOOR TO DISCUSSIONS?

Wang said that apart from the new sanctions, the resolution also made clear that the six party talks process, a stalled dialogue mechanism with North Korea that also includes Russia and Japan, should be restarted.

China appreciated comments earlier this month by U.S. Secretary of State Rex Tillerson that the United States does not seek to topple the North Korean government and would like dialogue with Pyongyang at some point, Wang added.

The United States does not seek regime change, the collapse of the regime, an accelerated reunification of the peninsula or an excuse to send the U.S. military into North Korea, Tillerson said.

Wang said Tillerson’s “Four Nos” promise was a positive signal.

China “hopes North Korea can echo this signal from the United States”, Wang added.

Speaking at the same forum on Monday, Tillerson held a door open for dialogue with North Korea saying Washington was willing to talk to Pyongyang if it halted a series of recent missile test launches.

North Korea said the latest sanctions infringed its sovereignty and it was ready to give Washington a “severe lesson” with its strategic nuclear force in response to any U.S. military action.

The successful testing of two intercontinental ballistic missiles (ICBMs) last month suggested the reclusive North was making technical progress, Japan’s annual Defence White Paper warned.

“Since last year, when it forcibly implemented two nuclear tests and more than 20 ballistic missile launches, the security threats have entered a new stage,” the Japanese Defence Ministry said in the 563-page document released on Tuesday.

“It is conceivable that North Korea’s nuclear weapons program has already considerably advanced and it is possible that North Korea has already achieved the miniaturization of nuclear weapons and has acquired nuclear warheads,” it said.

South Korea reiterated further resolutions against Pyongyang could follow if it did not pull back.

“North Korea should realise if it doesn’t stop its nuclear, missile provocations it will face even stronger pressure and sanctions,” Defence Ministry spokesman Moon Sang-gyun told a regular news briefing. “We warn North Korea not to test or misunderstand the will of the South Korea-U.S. alliance.”

(Additional reporting by Kiyoshi Takenaka in TOKYO and Christine Kim in SEOUL; Editing by Lincoln Feast and Michael Perry)

World stocks reach new peak in world full of surprises

Traders work in front of the German share price index, DAX board, at the stock exchange in Frankfurt, Germany, August 4, 2017.

By John Geddie

LONDON (Reuters) – World stocks breached record highs on Monday as better-than-expected company earnings and economic data from the United States stole the focus from rising geopolitical tension over North Korea’s nuclear program.

The U.S. dollar  dipped slightly but held on to most of Friday’s gains – its biggest daily rise this year – made after data showed the United States created more jobs than forecast last month.

For those watching second quarter corporate results in recent weeks, there have been many such surprises. Of the nearly 1000 companies in the MSCI world index that have reported, 67 percent have beaten expectations, according to Reuters data.

These two factors helped nudge the flagship share index above a peak breached late last month, setting a new all-time high of 480.09 on Monday.

The Dow Jones, which recorded its eighth consecutive record high on Friday, was set to open up slightly on Monday.

“Global equities remain the preferred asset class for investors and this can be clearly seen in the new highs hit by world indices today,” said Edward Park, investment director at Brooks Macdonald.

“Whilst the headline beat in non-farm payrolls was the primary positive for the market … equity prices are supported by a strong earnings season and relatively low event risk over the next few months.”

Aside from a slight weakening in the Korean won, there was little financial market reaction to the news over the weekend that the U.N. Security Council unanimously imposed new sanctions on North Korea aimed at pressuring Pyongyang to end its nuclear program.

South Korean President Moon Jae-in and his U.S. counterpart, Donald Trump, agreed in a telephone call on Monday to apply maximum pressure and sanctions on North Korea, while China expressed hope that North and South Korea could resume contact soon.

Yields on U.S. and German government bonds – seen as a safe haven in times of stress – held above one-month lows hit at the tail end of last week.

 

ASIAN GAINS

A strong rise in U.S. and Asian stocks propelled the world index to a new high, with the strength of the euro providing a bit of a headache for European markets.

Earlier in Asian trading, MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.5 percent while Japan’s Nikkei added 0.5 percent.

Chinese blue chips were bolstered by data showing the country’s foreign exchange reserves rose twice as much as expected in July.

A dramatic reduction in capital outflows – which are seen as one of China’s biggest risks – has helped boost confidence in the world’s second largest economy ahead of a key political leadership reshuffle in coming months.

The euro zone’s main stock index edged lower, however, as the single currency headed back towards 20-month high, a trend which appears to be denting profitability in certain sectors.

Of the MSCI Europe companies having reported, 61 percent have either met or beat expectations. But focusing on industrial firms – of which many depend on exports, and are sensitive to a stronger euro – the beat ratio is just 37 percent.

“The euro is likely to have an impact in the third quarter, with a 10 percent appreciation of the euro lowering earnings per share by around 5 percent,” said Valentin Bissat, senior strategist at Mirabaud Asset Management.

DOLLAR DOUBTS

The upbeat U.S. jobs data offers policymakers some assurance that inflation will gradually rise to the central bank’s 2 percent target, and likely clear the way for a plan to start shrinking its massive bond portfolio later this year.

But market pricing shows investors are still about evenly divided over whether the Fed will also opt to raise rates again in December.

For some analysts, Monday’s pull back in the dollar backs some views in markets that Friday’s rally may not have legs.

The dollar index, which tracks the greenback against a basket of six global peers, inched back 0.2 percent to 93.361. It rallied 0.76 percent on Friday, its biggest one-day gain this year.

The dollar slipped 0.2 percent against the euro to $1.1796 per euro, after surging 0.8 percent on Friday.

“The most logical view here is the moves on Friday were clearly just a sizeable covering of USD shorts, from what was one of the biggest net short positions held against the USD for many years,” Chris Weston, chief market strategist at IG in Melbourne, wrote in a note.

For the dollar rally to gain momentum, the market needs to change its interest rate pricing, Weston added.

In commodities, oil prices slid back from nine-week highs hit on Aug. 4 as worries lingered over high production from OPEC and the United States.

Global benchmark Brent crude futures were down 60 cents, or 1.14 percent, at $51.82 a barrel. They traded as low as $51.56 a barrel earlier in the day.

Gold  steadied as the dollar surrendered some of its gains, but remained under pressure. The precious metal was marginally lower at $1,257.41 an ounce, extending Friday’s 0.8 percent loss.

 

(Reporting by John Geddie in London and Nichola Saminather in Singapore Additional reporting by Helen Reid in London; Editing by Richard Balmforth)

 

North Korea ready to teach U.S. ‘severe lesson’, says U.N. abused its authority

North Korean Foreign Minister Ri Yong-ho (C) walks toward an escalator during ongoing meetings at the Philippine International Convention Center

MANILA (Reuters) – North Korea is ready to give the United States a “severe lesson” with its strategic nuclear force if it takes military action against it, and will not put its nuclear program or its missiles on the negotiating table, it said in a statement to a regional meeting on Monday.

In a transcript of a statement by Foreign Minister Ri Yong-ho, which was distributed to media in Manila, Pyongyang called new U.N. sanctions “fabricated” and warned there would be “strong follow-up measures” and acts of justice. It said the resolution showed the United Nations had abused its authority.

It said its intercontinental ballistic missile tests in July proved that the entire United States was in its firing range, and those missiles were a legitimate means of self-defense.

It was not immediately clear whether the statement was read to the ASEAN Regional Forum on Monday.

 

 

(Reporting by Neil Jerome Morales and Manolo Serapio Jr; Writing by Martin Petty; Editing by Nick Macfie)

 

U.S. may soon expand U.N. talks on North Korea sanctions, signaling China deal: diplomats

U.S. may soon expand U.N. talks on North Korea sanctions, signaling China deal: diplomats

By Michelle Nichols

UNITED NATIONS (Reuters) – The United States could shortly broaden talks on a push for stronger U.N. sanctions on North Korea to include all 15 Security Council members, signaling a likely deal with China on new measures, diplomats said on Thursday.

Since North Korea’s July 4 launch of an intercontinental ballistic missile (ICBM), the United States has been negotiating with Pyongyang ally China on a draft resolution to impose new sanctions on North Korea, which fired a second ICBM last Friday, in defiance of U.N. Security Council resolutions.

“We have been working very hard for some time and we certainly hope that this is going to be a consensus resolution,” China’s U.N. Ambassador Liu Jieyi told Reuters on Thursday.

Some diplomats said the United States could give the draft resolution to all 15 council members as early as Thursday.

Typically, the United States and China have agreed sanctions on North Korea before formally involving other council members. A resolution needs nine votes in favor and no vetoes by the United States, China, Russia, France or Britain to be adopted.

The United States has been informally keeping Britain and France in the loop on the negotiations, while U.S. Ambassador to the United Nations Nikki Haley said China had been sharing the draft and negotiating with Russia.

U.S. President Donald Trump’s administration has been frustrated that China has not done more to rein in North Korea and Washington has threatened to impose new sanctions on Chinese firms doing business with Pyongyang.

But Chinese Foreign Minister Wang Yi told his British counterpart, Boris Johnson, on Friday that China would continue to fully and strictly implement Security Council resolutions on North Korea, the ministry said.

Haley said on Sunday the United States was “done talking about North Korea” and China must decide if it is willing to back imposing stronger U.N. sanctions. But she has also acknowledged that Russia’s engagement on the draft resolution would be the “true test.”

Russia noted on Thursday that the permanent five (P5) veto powers had yet to formally discuss the draft. It was not immediately clear if poor relations between Russia and the United States, which imposed new unilateral sanctions on Russia on Wednesday, would hamper the negotiations.

“Even if there is an agreement between the U.S. and China, it doesn’t mean there is an agreement between the P5 members,” said Russia’s U.N. Ambassador Vassily Nebenzia, who met with Liu earlier on Thursday and discussed a possible resolution.

“Maybe there is a bilateral agreement (between Beijing and Washington), but that’s not a universal one,” he said, adding that while he was aware of what might be in the resolution he had not seen “the draft as it stands now.”

The U.S. mission to the United Nations declined to comment.

Moscow has disagreed with assessments by Western powers that Pyongyang has launched two long-range missiles, saying they were mid-range. Diplomats say China and Russia only view a test of a long-range missile or a nuclear weapon as a trigger for further possible U.N. sanctions.

North Korea has been under U.N. sanctions since 2006 over its ballistic missile and nuclear programs and the Security Council has ratcheted up the measures in response to five nuclear weapons tests and two long-range missile launches.

(Reporting by Michelle Nichols; Additional reporting by Ben Blanchard in BEIJING; Editing by James Dalgleish)

U.S. bans travel to North Korea from September 1, says Americans should leave

FILE PHOTO: People carry flags in front of statues of North Korea founder Kim Il Sung (L) and late leader Kim Jong Il during a military parade marking the 105th birth anniversary Kim Il Sung, in Pyongyang April 15, 2017. REUTERS/Damir Sagolj

By Yeganeh Torbati

WASHINGTON (Reuters) – A ban on travel by U.S. passport holders to North Korea will take effect on Sept. 1 and Americans in the country should leave before that date, the U.S. State Department said on Wednesday.

Journalists and humanitarian workers may apply for exceptions to the ban, the department said in a public notice.

The U.S. government last month said it would bar Americans from traveling to North Korea due to the risk of “long-term detention” there.

The ban comes at a time of heightened tensions between the United States and North Korea, which has been working to develop a nuclear-tipped missile capable of hitting the United States.

North Korea will become the only country to which Americans are banned from traveling.

American student Otto Warmbier, sentenced last year to 15 years’ hard labor in North Korea, returned to the United States in a coma on June 13 after being released on humanitarian grounds, and died June 19. The circumstances surrounding his death are not clear, including why he fell into a coma.

North Korea has said through its state media that Warmbier’s death was “a mystery” and dismissed accusations that he had died as a result of torture and beating in captivity.

The State Department issued a notice in the Federal Register on Wednesday declaring U.S. passports invalid for travel to, in or through North Korea. The restriction takes effect in 30 days, and applies for one year unless extended or revoked by the secretary of state.

“Persons currently in North Korea on a U.S. passport should depart North Korea before the travel restriction enters into effect on Friday, September 1, 2017,” the department said in a statement.

Professional reporters or journalists, representatives of the International Committee of the Red Cross or the American Red Cross traveling on official missions, those traveling to North Korea for “compelling humanitarian considerations” and those whose requests are “in the national interest” may ask for a special validation of their passports in order to travel to the country, the State Department said.

North Korea is currently holding two Korean-American academics and a missionary, a Canadian pastor and three South Korean nationals who were doing missionary work. Japan says North Korea has also detained at least several dozen of its nationals.

(Reporting by Yeganeh Torbati, David Brunnstrom and David Alexander; Editing by Jonathan Oatis and James Dalgleish)

China welcomes U.S. seeking dialogue with North Korea

China welcomes U.S. seeking dialogue with North Korea

By Michael Martina

BEIJING (Reuters) – China on Thursday welcomed comments by Secretary of State Rex Tillerson that the United States does not seek to topple the North Korean government and would like dialogue with Pyongyang at some point, saying China had always supported talks.

Tillerson reiterated that Washington sought to persuade North Korea to give up its missile and nuclear weapons programs through peaceful pressure.

The United States does not seek regime change, the collapse of the regime, an accelerated reunification of the peninsula or an excuse to send the U.S. military into North Korea, Tillerson said.

Speaking to reporters, Chinese Foreign Minister Wang Yi said China “attached great importance” to Tillerson’s remarks and his reiteration of what Wang called the “Four Nos” principle.

“We hope the U.S. side can put this ‘Four Nos’ principle into actual policy towards North Korea,” Wang said.

The United States has recently been paying more attention to security issues on the Korean peninsula, and China has always believed security is the key to resolving the problem, he added.

North Korea says it needs a strong military deterrent to prevent a hostile United States from attacking it.

China hopes all sides can meet each other halfway and through talks find a way of resolving each others security concerns as this is the key for a resolution, Wang said.

In a separate statement sent to Reuters regarding Tillerson’s remarks, the foreign ministry said it had always supported dialogue between the United States and North Korea.

On Saturday, Pyongyang said it had conducted another successful test of an intercontinental ballistic missile that proved its ability to strike the United States.

Tillerson, who will also attend the ASEAN Regional Forum in Manila, is expected to press China and other regional nations to take tougher action against North Korea.

China has signed up for increasingly tough United Nations sanctions against North Korea, but has also pushed for a resumption of dialogue and de-escalation by both Pyongyang and Washington.

Tillerson’s remarks showed “courage”, said the state-run Global Times newspaper, which is usually known for its nationalistic bent.

“Many Americans would think Tillerson is showing weakness, but we see his statement as the most courageous expression from Washington regarding the Korean peninsula issue,” it said in an editorial on Thursday.

“While (Washington) exerts pressure on North Korea, it should leave some alternatives for Pyongyang and make it believe that abandoning its nuclear and missile programs will do more good than insisting on this path.”

Wang also urged all parties not to heighten tension on the Korean peninsula and said China had already clearly condemned North Korea’s latest missile test.

“Regarding North Korea’s recent missile launch, once again in violation of UN Security Council resolutions, China has already clearly expressed our opposition,” Wang said.

“At the same time, we also call on all parties not to take any actions that will lead to an escalation in tensions.”

(Writing by Philip Wen and Ben Blanchard; Editing by Paul Tait and Clarence Fernandez)