U.S. ratchets up pressure on Iran with resumption of sanctions

FILE PHOTO: Iranian rials, U.S. dollars and Iraqi dinars are seen at a currency exchange shopÊin Basra, Iraq November 3, 2018. REUTERS/Essam al-Sudani

WASHINGTON (Reuters) – The United States reimposes oil and financial sanctions against Iran on Monday, significantly turning up the pressure on Tehran in order to curb its missile and nuclear programs and counter its growing military and political influence in the Middle East.

The move will restore U.S. sanctions that were lifted under a 2015 nuclear deal negotiated by the administration of President Barack Obama, and add 300 new designations in Iran’s oil, shipping, insurance and banking sectors.

President Donald Trump announced in May that his administration was withdrawing from what he called the “worst ever” agreement negotiated by the United States. Other parties to the deal, including Britain, France, Germany, China and Russia, have said they will not leave.

Details of the sanctions will be released at a news conference scheduled for 8:30 a.m. EST (1330 GMT) with Secretary of State Mike Pompeo and Treasury Secretary Steven Mnuchin.

China, India, South Korea, Japan and Turkey – all top importers of Iranian oil – are among eight countries expected to be given temporary exemptions from the sanctions to ensure crude oil prices are not destabilized.

The countries will deposit Iran’s revenue in an escrow account, U.S. officials have said.

Washington has said it will ensure a well-supplied global oil market, with help from ally Saudi Arabia, as Iran oil is cut back. Front-month Brent crude futures, the international benchmark for oil prices, were at $72.53 per barrel on Monday.

The reimposition of the sanctions comes as the United States is focused on U.S. congressional and gubernatorial elections on Tuesday. Campaigning in Chattanooga, Tennessee, late on Sunday, Trump said his “maximum pressure” policy against Iran was working.

“Iran is a much different country than it was when I took office,” said Trump, adding: “They wanted to take over the whole Middle East. Right now they just want to survive.”

Earlier, thousands of Iranians chanted “Death to America” at a rally to mark the anniversary of the seizure of the U.S. Embassy during the 1979 Islamic Revolution.

The International Monetary Fund said on Thursday that Iran should implement policies to safeguard its macroeconomic stability in the face of sanctions.

Senior Iranian officials have dismissed concerns about the impact to its economy.

“America will not be able to carry out any measure against our great and brave nation … We have the knowledge and the capability to manage the country’s economic affairs,” Foreign Ministry spokesman Bahram Qasemi told state TV on Friday.

(Reporting by Lesley Wroughton; Additional reporting by Steve Holland in Chattanooga, Tennessee; Editing by Sonya Hepinstall)

U.S. backs disarmament steps along North Korean demilitarized zone: general

General Vincent K. Brooks, commander of the US Forces Korea (USFK) speaks during the mutual repatriation ceremony of soldiers' remains between South Korean and U.S at the Seoul National Cemetery in Seoul, South Korea, 13 July 2018. Jeon Heon-kyun/Pool via REUTERS

By Josh Smith and Joyce Lee

SEOUL (Reuters) – The outgoing commander of American troops in South Korea voiced support on Monday for controversial measures to reduce military activity along the border with North Korea, as U.S. Secretary of State Mike Pompeo prepared for talks with North Korean officials on denuclearization and plans for a second leaders’ summit.

Writing in a South Korean military publication, U.S. General Vincent Brooks said recent steps by South and North Korea to disarm areas along the so-called demilitarized zone between the two nations have “the support and agreement of the United States.”

Last week a no-fly zone went into effect along the border, despite private concerns by U.S. officials that the move could restrict training and the ability to monitor the border. Other steps included disarming some areas of the border and removing some landmines and guard posts.

“Together, these activities demonstrate a shared commitment to positive action and work to develop the trust essential to the next steps along the road to a lasting and stable peace,” Brooks wrote.

Pompeo previously expressed “discontent” with the deal that created the no-fly zone, which South Korean sources said became a key sticking point for the United States because it would effectively prevent close air support drills.

Brooks’ comments came as U.S. and South Korean marines conducted military drills under the Korean Marine Exchange Program for the first time in months, according to the South Korean ministry of defense.

The exercises were among the training drills indefinitely suspended in June after U.S. President Donald Trump met North Korean leader Kim Jong Un in Singapore and promised to end U.S.-South Korea military exercises.

Although larger exercises were suspended, the two countries have continued small-scale drills, the South’s Ministry of National Defence said on Monday, adding that the marines were holding a training round near the southern city of Pohang.

Pompeo, interviewed on broadcaster CBS’s “Face the Nation” program said on Sunday he would be in New York at the end of this week to meet his North Korean counterpart, Kim Yong Chol.

“I expect we’ll make some real progress, including an effort to make sure that the summit between our two leaders can take place, where we can make substantial steps towards denuclearization,” he added.

North Korea has not tested a ballistic missile or nuclear weapon for nearly a year and has said it has shuttered its main nuclear test site and plans to dismantle several more facilities.

In recent weeks, North Korea has pressed harder for what it sees as reciprocal concessions by the United States and other countries.

Over the weekend, Kim hosted President Miguel Diaz-Canel of Cuba – another country under U.S. sanctions – during a lavish visit in Pyongyang, where the two leaders vowed to boost their cooperation.

During a banquet on Sunday, Kim said the “two countries are in the same trench in the struggle for defending sovereignty and dignity of their countries and safeguarding international justice,” according to a state media report.

Diaz-Canel, meanwhile, “voiced his will to meet all challenges by the hostile forces” alongside North Korea, according to the report.

‘NO ECONOMIC RELIEF’

On Friday North Korea warned that it could resume development of its nuclear program if the United States did not drop its campaign of “maximum pressure” and sanctions.

“The improvement of relations and sanctions are incompatible,” a foreign ministry official said in a statement released through state-run KCNA news agency.

“The U.S. thinks that its oft-repeated ‘sanctions and pressure’ lead to ‘denuclearization.’ We cannot help laughing at such a foolish idea.”

South Korea hopes the North and the United States will make “big progress” during the talks set for this week, presidential spokesman Kim Eui-kyeom said on Monday, but declined to comment on the North’s Friday statement.

American officials have remained skeptical of Kim’s commitment to give up his nuclear arsenal, however, and Washington says it will not support easing international sanctions until more verified progress is made.

Pompeo, interviewed on television’s “Fox News Sunday,” said the Trump administration wants a full, verifiable denuclearization of the Korean peninsula, adding that Trump insisted on “no economic relief until we have achieved our ultimate objective.”

South Korean President Moon Jae-in’s continuing efforts to engage with North Korea have fanned U.S. concerns that Seoul could weaken pressure on North Korea to give up nuclear weapons.

In Washington last week, South Korea’s defense minister said the two countries would decide by December on major joint military exercises for 2019. Vigilant Ace, suspended this month, is one of several such exercises halted to encourage dialogue with Pyongyang, which has criticized joint U.S.-South Korea exercises in the past.

The biggest combat-readiness war game ever staged in and around Japan has gone ahead, however, with nuclear-powered aircraft carrier USS Ronald Reagan joining Japanese destroyers and a Canadian warship in the ocean off Japan, another key player in the effort to pressure North Korea.

(Reporting by Josh Smith and Joyce Lee; Additional reporting by Richard Cowan in Washington and Soyoung Kim in SEOUL; Editing by Lisa Shumaker and Paul Simao)

Two Koreas, U.N. forces agree to remove weapons at border

FILE PHOTO: A North Korean soldier patrols at the truce village of Panmunjom inside the demilitarized zone (DMZ) separating the two Koreas, South Korea, April 18, 2018. Picture taken on April 18, 2018. REUTERS/Kim Hong-Ji

By Hyonhee Shin

SEOUL (Reuters) – North and South Korea and the U.N. Command agreed on Monday to withdraw firearms and guard posts in the demilitarized zone village of Panmunjom this week, Seoul’s defense ministry said, the latest move in a fast-improving relationship.

The three sides held their second round of talks at Panmunjom to discuss ways to demilitarize the border in line with a recent inter-Korean pact reached at last month’s summit in Pyongyang.

The U.S.-led UNC, which has overseen affairs in the DMZ since the end of hostilities in the 1950-53 Korean War, was not immediately available for comment, but it said on Friday it supports the two Koreas’ efforts to implement their military deal.

The announcement comes amid U.S. concerns that the inter-Korean military initiative could undermine defense readiness and comes without substantial progress on North Korea’s promised denuclearization.

The neighbors are looking to withdraw 11 guard posts within a 1-km (0.6-mile) radius of the Military Demarcation Line on their border by the end of the year.

They also plan to pull out all firearms from a Joint Security Area (JSA) at Panmunjom and cut to 35 each the numbers of personnel stationed there and share information on surveillance equipment.

At Monday’s meeting, the three sides agreed to remove firearms and guard posts from the JSA by Thursday, and carry out a joint inspection over the following two days, the ministry said.

The two Koreas have been removing landmines around the area as part of the agreement and they confirmed the completion of the demining operation at the talks with the UNC.

“We discussed the timeline of the pullout of firearms and guard posts, as well as ways to adjust the number of guard personnel and conduct joint inspections,” the ministry said in a statement.

The agreement also includes a halt in “all hostile acts” and a no-fly zone around the border.

North and South Korea are technically still at war because the 1950-53 conflict ended in a truce, not a peace treaty, but relations have improved considerably in the last year.

After his third summit in Pyongyang, South Korean President Moon Jae-in said the North was ready to invite international experts to watch the dismantling of a key missile site and would close the main Yongbyon nuclear complex if Washington took reciprocal actions.

Those actions could include putting a formal end to the 1950-53 war, opening of a U.S. liaison office in North Korea, humanitarian aid and an exchange of economic experts, Moon said.

But Washington demands North Korea takes irreversible steps to scrap its arsenal, such as a full disclosure of nuclear facilities and material.

(Reporting by Hyonhee Shin; Editing by Nick Macfie)

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 agrees to inspections in bid to salvage nuclear talks

South Korean President Moon Jae-in shakes hands with North Korean leader Kim Jong Un after signing the joint statement in Pyongyang, North Korea, September 19, 2018. Pyeongyang Press Corps/Pool via REUTERS

By Hyonhee Shin and Soyoung Kim

SEOUL (Reuters) – North Korea said on Wednesday it would permanently abolish its key missile facilities in the presence of foreign experts, in a new gesture by leader Kim Jong Un to revive faltering talks with Washington over his country’s nuclear program.

After a summit in Pyongyang, Kim and South Korean President Moon Jae-in said the North was also willing to close its main nuclear complex but only if the United States took unspecified reciprocal action.

The pledges Kim and Moon made at their third summit this year could inject fresh momentum into the stalled nuclear negotiations between Washington and Pyongyang and lay the groundwork for another meeting Kim recently proposed to U.S. President Donald Trump.

“I don’t think President Moon got everything he was seeking from these interactions, but Kim Jong Un gave Moon some tangible things for which he can take credit,” said Michael Madden, an analyst at the Stimson Centre’s 38 North think tank in Washington.

“These are good-faith gestures which will likely facilitate further and more substantive negotiations,” Madden said, adding a second summit between Kim and Trump was “highly probable”.

Kim pledged to work toward the “complete denuclearization of the Korean peninsula” during his two meetings with Moon earlier this year and at his historic June summit with Trump in Singapore.

South Korean President Moon Jae-in attends an unveiling ceremony of the commemorative tree in Pyongyang, North Korea, September 19, 2018. Pyeongyang Press Corps/Pool via REUTERS

South Korean President Moon Jae-in attends an unveiling ceremony of the commemorative tree in Pyongyang, North Korea, September 19, 2018. Pyeongyang Press Corps/Pool via REUTERS

But discussions over how to implement the vague commitments have since faltered. Washington is demanding concrete action towards denuclearization, such as a full disclosure of North Korea’s nuclear and missile facilities, before agreeing to key goals of Pyongyang – declaring an official end to the 1950-53 Korean War and easing tough international sanctions.

Trump‏ welcomed the latest pledges, saying they were part of “tremendous progress” with Pyongyang on a number of fronts, and hailed the “very good news” from the Korean nations’ summit.

“He’s calm, I’m calm – so we’ll see what happens,” Trump told reporters at the White House, referring to Kim. “It’s very much calmed down.”

But the United States is likely to be concerned economic cooperation plans announced by the two Korean leaders that could undermine U.S.-driven United Nations sanctions against North Korea.

Speaking at a joint news conference in Pyongyang, the two Korean leaders agreed to turn the Korean peninsula into a “land of peace without nuclear weapons and nuclear threats.”

Kim said he would visit Seoul in the near future, in what would be the first-ever visit to South Korean capital by a North Korean leader. Moon said the visit was expected to take place by the end of the year.

The leaders also announced a series of steps to deepen bilateral exchanges in the economy, culture and sport.

South Korean President Moon Jae-in, first lady Kim Jung-sook, North Korean leader Kim Jong Un and his wife Ri Sol Ju visit Taedong River Seafood Restaurant in Pyongyang, North Korea, September 19, 2018. Pyeongyang Press Corps/Pool via REUTERS

South Korean President Moon Jae-in, first lady Kim Jung-sook, North Korean leader Kim Jong Un and his wife Ri Sol Ju visit Taedong River Seafood Restaurant in Pyongyang, North Korea, September 19, 2018. Pyeongyang Press Corps/Pool via REUTERS

VERIFICATION

Kim’s latest promises come days before Moon meets Trump in New York at the U.N. General Assembly next week. South Korean officials hope Moon will be able to convince Trump to restart nuclear talks with Pyongyang, after he canceled a trip by his secretary of state to North Korea last month, citing lack of progress.

Though North Korea has unilaterally stopped nuclear and missile tests, it did not allow international inspections of the dismantling its main nuclear test site in May, drawing criticism that its action was for show and could be easily reversed.

As a next step, North Korea will allow experts from “concerned countries” to watch the closure of its missile engine testing site and launch pad in the northwestern town of Dongchang-ri, according to a joint statement signed by Moon and Kim.

The facilities were a key test center for North Korea’s intercontinental ballistic missiles designed to reach the United States.

The North also “expressed its readiness” to take additional measures, such as a permanent dismantlement of its main nuclear facilities in Yongbyon should there be unspecified corresponding action from the United States, according to the statement.

Those U.S. steps could include an end-of-war declaration, South Korea’s national security adviser, Chung Eui-yong, told reporters.

The neighbors remain technically at war because the Korean War ended in armistice and not a peace treaty.

North Korea has consistently refused to give up its nuclear arsenal unilaterally, and stressed that the United States should first agree to a formal declaration ending the war.

Satellite images and other evidence in recent months have suggested North Korea is continuing to work on its nuclear program clandestinely.

Seo Yu-suk, a research manager at the Institute of North Korean Studies in Seoul, said the facilities at Dongchang-ri and Yongbyon were “almost obsolete” and the North has mobile missile launchers that are easier to use and harder to detect, while there are likely covert sites elsewhere.

SANCTIONS BUSTING?

At the summit, the two Koreas agreed to begin construction to reconnect railways and roads linking the countries within this year. They will also work to restart a joint factory park in the North border city of Kaesong and tours to the North’s Mount Kumgang resort, when conditions are met.

Some experts worry those projects could constitute a violation of U.N. Security Council sanctions aimed at drying up resources for Pyongyang’s weapons programs, and upset Washington.

The two Koreas also agreed to pursue a bid to co-host the 2032 Summer Olympic Games, and actively work together in other international competitions including the 2020 Olympic Games in Tokyo.

Later on Wednesday, Moon was scheduled to watch the North’s signature “Brilliant Fatherland” Mass Game, with a formation of glowing drones, lasers and stadium-sized gymnastics shows designed to glorify the country.

On Thursday, the last day of his three-day visit, Moon plans to visit Mount Baektu in North Korea with Kim before returning home.

North Korea says Kim’s grandfather and father were born at Mount Baektu, a centerpiece of the North’s idolization and propaganda campaign to highlight the ruling family’s sacred bloodline.

(Reporting by Hyonhee Shin, Joyce Lee, Soyoung Kim and Joint Press Corps; Additional reporting by Jeongmin Kim, Haejin Choi and Ju-min Park in Seoul, and Roberta Rampton and David Brunnstrom in Washington; Editing by Alex Richardson and Alistair Bell)

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)

First two U.S. troops from North Korean remains identified

Jennie Jin, a forensic anthropologist who leads the Korea War Project at the Defense POW/MIA Accounting Agency (DPAA), shows some of the objects that accompanied the human remains handed over by North Korea, including a wallet, buttons and canteens, at Joint Base Pearl Harbor-Hickam, Hawaii September 10, 2018. REUTERS/Phil Stewart

By Phil Stewart

JOINT BASE PEARL HARBOR-HICKAM (Reuters) – The U.S. military has identified the first two American troops from 55 boxes of human remains from the 1950-53 Korean War that North Korea handed over in July, the agency leading the analysis said on Monday.

The identities are expected to be officially announced in the coming days after the troops’ relatives are informed.

“We will notify the family first,” said John Byrd, director of scientific analysis at the U.S. Defense POW/MIA Accounting Agency, as he stood among the remains undergoing review in Hawaii.

President Donald Trump’s administration has hailed the handover of the remains as evidence of the success of his summit with North Koran leader Kim Jong Un in June. The White House said on Monday it was looking at scheduling a second meeting.

Critics, however, say the summit has so far failed to deliver on promised steps to get Kim to abandon his nuclear weapons program.

The identifications will chip away at the 7,699 U.S. troops who the U.S. military says remain unaccounted for from the Korean War. About 5,300 were lost in what is now North Korea.

Forensic anthropologists are combing through the remains at a secure facility on Joint Base Pearl Harbor-Hickam.

Byrd and Jennie Jin, who leads the agency’s Korean War Project, explained the painstaking identification process which includes methods for finding DNA in bone fragments.

Sampling for DNA analysis has been carried out so far on about half of the boxes of remains, they said. Some bone fragments are as small as a quarter. Other bones have decayed so much that they are little longer than a pencil.

‘HUGE BATTLE’

However, the sets of bones from the two soon-to-be-identified troops are far more complete.

“We noticed … within a few seconds of opening up the box, and pulling him out, that we think this individual is African American and tall and slender,” Byrd said. “And that kind of realization that we have was made possible because of the relatively more complete condition (of the remains).”

The remains of both servicemembers came from the same 1950 battlegrounds near the Chongchon River in what is present-day North Korea. U.S. troops suffered heavy casualties there against Chinese forces that had intervened in the war.

“It’s a huge battle,” said Jin, who estimated that 1,700 of the missing U.S. forces from the war came from that fight alone.

She spoke above tables of bone fragments, still separated with numbers corresponding with the 55 boxes.

Other tables included personal objects from soldiers that don’t have any identification on them, including buttons, canteens and old boots.

Byrd acknowledged that it could take months for the next round of identifications. “There could be some more and maybe right after Christmas,” he said.

Jin, a South Korean-born American citizen, said the work has a personal connection. Her grandfather, now 90, is a survivor of the war who came from one of the areas of present-day North Korea that saw some of the heaviest fighting. He was evacuated south on a U.S. Navy ship, she said.

“It’s really personal to me,” Jin said.

The July transfer coincided with the 65th anniversary of the 1953 armistice that ended fighting between North Korean and Chinese forces and South Korean and U.S.-led forces under the U.N. Command.

The two sides remain technically at war because a peace treaty was never signed.

The United States and North Korea conducted joint searches for remains from 1996 until 2005, when Washington halted the operations citing concerns about the safety of its personnel as Pyongyang stepped up its nuclear program.

(Reporting by Phil Stewart; Editing by Paul Tait and David Stamp)

North Korea’s Kim sets denuclearization time line, prompting thanks from Trump

Chief of the national security office at Seoul's presidential Blue House Chung Eui-yong meets with North Korean leader Kim Jong Un in Pyongyang, North Korea September 5, 2018. Picture taken September 5, 2018. The Presidential Blue House/Handout via REUTERS 


By Hyonhee Shin and Susan Heavey

SEOUL/WASHINGTON (Reuters) – North Korea’s Kim Jong Un has given his first timeline for denuclearization, aiming for the end of U.S. President Donald Trump’s first term, Seoul officials said on Thursday, prompting thanks from Trump who said they would “get it done together”.

Kim and South Korean President Moon Jae-in will also meet in Pyongyang on Sept. 18-20 for a third summit and discuss “practical measures” toward denuclearization, Moon’s national security adviser, Chung Eui-yong, said a day after meeting Kim.

The summit could provide renewed momentum to talks over denuclearization between North Korea and the United States, after Trump canceled a visit to Pyongyang by Secretary of State Mike Pompeo last month citing lack of progress.

Kim told South Korean officials his faith in Trump was “unchanged” and that he wanted denuclearization and an end to hostile relations with the United States before Trump’s first term in office ends in early 2021, Chung said.

“He particularly emphasized that he has never said anything negative about President Trump,” Chung said.

Trump welcomed Kim’s remarks in a trademark Tweet.

“Kim Jong Un of North Korea proclaims ‘unwavering faith in President Trump.’ Thank you to Chairman Kim. We will get it done together!” Trump wrote.

In previous, failed talks, North Korea has said it could consider giving up its nuclear program if the United States provided security guarantees by removing troops from South Korea and withdrawing its so-called nuclear umbrella of deterrence from the South and Japan.

U.S. officials involved in the latest negotiations have said North Korea has refused to even start discussions about defining denuclearization or other key terms such as “verifiable” and “irreversible”, and has insisted the United States must first agree to simultaneous steps to reduce economic pressure.

Pompeo, visiting New Delhi, declined to discuss the next steps but said there was a long road ahead in the denuclearization process.

Pompeo visited Pyongyang in July, after which North Korea accused him of making “unilateral and gangster-like demands for denuclearization” while showing little interest in ending the war.

“It is the case that there is still an enormous amount of work to do,” Pompeo told a news conference on Thursday.

Asked about U.S. intelligence that North Korea was still advancing its weapons programs, Pompeo noted that Pyongyang had ceased its nuclear tests and test-firing missiles, “which we consider a good thing.

“But the work of convincing Chairman Kim to make this strategic shift that we’ve talked about for a brighter future for the people of North Korea continues,” Pompeo said.

Moon’s national security adviser Chung said Kim had stressed the need for the United States to reciprocate North Korea’s initial moves, which have included dismantling a nuclear test site and a missile engine facility.

The U.S. embassy in Seoul said it had no information to share on the matter.

FRUSTRATION

North Korea’s official KCNA news agency said Kim told the South’s envoys that his “fixed stand” was to turn the Korean peninsula into “a cradle of peace without nuclear weapons, free from nuclear threat”.

Chung said Kim showed “frustration over the doubt raised by some parts of the international community about his willingness to denuclearize, and asked us to convey his message to the United States”.

“He said he would appreciate that such good faith is accepted with good faith,” Chung said. “He expressed his strong will to carry out more proactive measures toward denuclearization if action is taken in response to the North’s preemptive steps.”

U.S. officials have previously said they have already made concessions, such as halting joint military exercises with South Korea.

During his meeting with Kim, Chung delivered a message from Trump and will relay comments from Kim to U.S. National Security Advisor John Bolton, Moon’s spokesman, Kim Eui-kyeom, told reporters.

Trump spoke to Moon on the evening before Chung’s trip and asked Moon to act as “chief negotiator” between Washington and Pyongyang, the spokesman said.

WHAT HAPPENS FIRST?

Kim and Trump held a landmark summit in Singapore in June, in which they agreed to work toward complete denuclearization. But negotiations have made little progress, while signs North Korea has maintained work on its weapons have emerged.

Under discussion is whether denuclearization or declaring an end to the 1950-53 Korean War should come first.

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

“The United States shouldn’t delay any further an end-of-war declaration, which the U.S. president promised at the Singapore summit,” the North’s official Rodong Sinmun newspaper said in an editorial.

U.S. officials have said such a declaration could weaken North Korea’s incentive for denuclearization, and create uncertainty about the purpose of 28,500 U.S. troops stationed in South Korea, a legacy of the three-year war.

“Looks like Kim is trying to wash away worries that talks could stall or fail, knowing well that Washington is losing patience,” said Koh Yu-hwan, a professor of North Korean Studies at Dongguk University in Seoul.

“Kim also made it clear that he needs some kind of proof Trump has abandoned the U.S.’s hostile policy before moving toward denuclearization. Kim is trying to prove his sincerity.”

(Additional reporting by Cynthia Kim Joyce Lee in SEOUL John Walcott and Susan Heavey in WASHINGTON and Phil Stewart in NEW DELHI; Writing by Soyoung Kim; Editing by Chris Cushing and Nick Macfie)

China defies U.S. pressure as EU parts ways with Iranian oil

A gas flare on an oil production platform in the Soroush oil fields is seen alongside an Iranian flag in the Persian Gulf, Iran, July 25, 2005. REUTERS/Raheb Homavandi/File Photo

By Chen Aizhu and Florence Tan

BEIJING/SINGAPORE (Reuters) – China, seeking to skirt U.S. sanctions, will use oil tankers from Iran for its purchases of that country’s crude, throwing Tehran a lifeline while European companies such as France’s Total are walking away due to fear of reprisals from Washington.

The United States is trying to halt Iranian oil exports in an effort to force Tehran to negotiate a new nuclear agreement and to curb its influence in the Middle East.

China, which has cut imports of U.S. crude amid a trade war with Washington, has said it opposes unilateral sanctions and defended its commercial ties with Iran.

On Monday, sources told Reuters Chinese buyers of Iranian oil were beginning to shift their cargoes to vessels owned by National Iranian Tanker Co (NITC) for nearly all their imports.

The shift demonstrates that China, Iran’s biggest oil customer, wants to keep buying Iranian crude despite the sanctions, which were reimposed after the United States withdrew in May from a 2015 agreement to halt Iran’s nuclear program.

“The shift started very recently, and it was almost a simultaneous call from both sides,” said one source, a senior Beijing-based oil executive, who asked not to be identified as he is not allowed to speak publicly about commercial deals.

Tehran used a similar system between 2012 and 2016 to circumvent Western-led sanctions, which had curtailed exports by making it virtually impossible to obtain shipping insurance for business with Iran.

Iran, OPEC’s third-largest oil producer, relies on sales of crude to China, Japan, South Korea, India and the EU to generate the lion’s share of budget revenues and keep its economy afloat.

The United States has asked buyers of Iranian oil to cut imports from November. Japan, South Korea, India and most European countries have already slashed operations.

French oil major Total, previously one of the biggest European buyers of Iranian oil, has said it had no choice but to halt imports and abandon Iranian projects to safeguard its operations in the United States.

On Monday, Iranian Oil Minister Bijan Zanganeh said Total had officially left Iran’s South Pars gas project.

Total later confirmed it had notified the Iranian authorities of its withdrawal from South Pars after it failed to obtain a waiver from U.S. sanctions.

Iranian officials had earlier suggested China’s state-owned CNPC could take over Total’s stake and Zanganeh said the process to replace the French company was under way.

“As for the future of Total’s share, we have not been informed of an official CNPC position, but as we have always said, CNPC, a Chinese state-owned company, has the right to resume our participation if it decides so,” Total said in an emailed statement.

WALK AWAY

French President Emmanuel Macron has repeatedly called for safeguarding the Iranian nuclear deal and defended the interests of EU companies in Iran.

But most European companies have conceded that they would be forced to walk away from Tehran for fear of sanctions and losing access to operations that require U.S. dollars.

The first round of U.S. sanctions, which included cutting off Iran and any businesses that trade with it from the U.S. financial system, went into effect on Aug. 7.

A ban on Iranian oil purchases will start in November. Insurers, which are mainly U.S.- or European-based, have begun winding down their Iranian business to comply with the sanctions.

To safeguard their supplies, state oil trader Zhuhai Zhenrong Corp and Sinopec Group, Asia’s biggest refiner, have activated a clause in long-term supply agreements with National Iranian Oil Corp (NIOC) that allows them to use NITC-operated tankers, four sources with direct knowledge of the matter said.

The price for oil under the long-term deals has been changed to a delivered ex-ship basis from the previous free-on-board terms, meaning Iran will cover all costs and risks of delivering the crude as well as handling the insurance, they said.

In July, all 17 tankers chartered to carry oil from Iran to China were operated by NITC, according to shipping data on Thomson Reuters Eikon. In June, eight of 19 vessels chartered were Chinese-operated.

Last month, those tankers loaded about 23.8 million barrels of crude oil and condensate destined for China, or about 767,000 barrels per day (bpd). In June, the loadings were 19.8 million barrels, or 660,000 bpd.

In 2017, China imported an average of 623,000 bpd, according to customs data.

Sinopec declined to comment. A spokesperson for Nam Kwong Group, the parent of Zhenrong, declined to comment.

NIOC did not respond to an email seeking comment. An NITC spokesman said it would forward a request from Reuters for a comment to the country’s Ministry of Culture and Islamic Guidance.

It was not immediately clear how Iran would provide insurance for the Chinese oil purchases, worth some $1.5 billion a month. Insurance usually includes cover for the oil cargoes, third-party liability, and pollution.

(Additional reporting by Parisa Hafezi in Ankara and Cyril Altmeyer in Paris; Writing by Dmitry Zhdannikov; Editing by Dale Hudson)

Joy, disbelief as Korean families separated by war meet after 65 years

North and South Korean family members meet during a reunion at North Korea's Mount Kumgang resort, near the demilitarized zone (DMZ) separating the two Koreas, North Korea, August 20, 2018. Yonhap via REUTERS

By Hyonhee Shin

SEOUL (Reuters) – About 90 families from North and South Korea wept and embraced on Monday as the neighbors held their first reunion events in three years for relatives wrenched apart by the Korean War for more than six decades.

The brief reunions are set to total just 11 hours over the next three days in the North’s tourist resort of Mount Kumgang after the neighbors renewed exchanges this year following a standoff over Pyongyang’s nuclear and missile programs.

North Korean leader Kim Jong Un and South Korean President Moon Jae-in agreed to the reunion events at a summit in April.

About 330 South Koreans from 89 families, many in wheelchairs, embraced 185 separated relatives from the North with tears, joy, and disbelief. Some struggled to recognize family not glimpsed in more than 60 years.

A man selected as a participant for a reunion shows pictures of his deceased mother and little brothers living in North Korea, at a hotel used as a waiting place in Sokcho, South Korea, August 19, 2018. REUTERS/Kim Hong-Ji

A man selected as a participant for a reunion shows pictures of his deceased mother and little brothers living in North Korea, at a hotel used as a waiting place in Sokcho, South Korea, August 19, 2018. REUTERS/Kim Hong-Ji

“How are you so old?” Kim Dal-in, 92, asked his sister, Yu Dok, after gazing at her briefly in silence.

“I’ve lived this long to meet you,” replied the 85-year-old, wiping away tears as she clasped a photograph of her brother in his youth.

Siblings Kim Gyong Sil, 72 and Gyong Yong, 71, wearing the traditional hanbok dress, colored pale violet, stood nervously staring at the entrance, awaiting their 99-year-old mother Han Shin-ja. They could not speak for minutes, wailed loudly and rubbed their cheeks and hands.

“When I fled home in the war…,” Han said, faltering as she choked with emotion and left her sentence incomplete.

The separated families are victims of a decades-long political gridlock since the 1950-53 war ended in a truce rather than a peace treaty, with ties increasingly strained as Pyongyang rapidly stepped up its weapons programs.

More than 57,000 South Korean survivors have registered for the family reunions, which usually end in painful farewells.

For years, Seoul has called for regular meetings between separated families, including the use of video conferences, but the program often fell victim to fragile ties.

At his historic June summit with U.S. President Donald Trump in June, Kim pledged to abandon his country’s nuclear programs if Washington provided security guarantees, but the two sides have since struggled to agree how to reach that goal.

The reunions should be scaled up sharply, held regularly, and include exchanges of visits and letters, said Moon, himself a member of a separated family from the North’s eastern port city of Hungnam.

“It is a shame for both governments that many of the families have passed away without knowing whether their lost relatives were alive,” he told presidential secretaries at a meeting.

Lee Geum-seom, who has been selected as a participant for a reunion, is helped by volunteers as she arrives at a hotel used as a waiting place in Sokcho, South Korea, August 19, 2018. REUTERS/Kim Hong-Ji

Lee Geum-seom, who has been selected as a participant for a reunion, is helped by volunteers as she arrives at a hotel used as a waiting place in Sokcho, South Korea, August 19, 2018. REUTERS/Kim Hong-Ji

“Expanding and accelerating family reunions is a top priority.”

Ninety-three families from both sides of the border had been initially due to hold a three-day gathering from Monday, but four South Korean members canceled at the last minute because of poor health, the Red Cross said.

From Thursday, 88 more groups of relatives will meet, comprised of 469 individuals from the South and 128 from the North, Seoul’s Unification Ministry says.

For Lee Jong-shik, 81, Monday’s reunion was a hard-won second chance to track down his younger brother, Ri Chong Song, after the failure of a 2009 effort when a different individual showed up, to the dismay of the family from the South.

“I tried so hard, too, searching for you for seven years,” Ri told his brother.

The participants included the families of a prisoner of war and five people abducted by North Korean authorities during the conflict, though the six South Koreans they had hoped to meet had died.

The reunions, which began in 1985, can be a traumatic experience, say survivors, who know they are unlikely to see their relatives again since many are 80 or older and first-timers typically get priority for visits.

About 132,600 individuals were listed as separated families by the end of July. Of the 57,000 survivors, 41.2 percent are in their 80s and 21.4 percent in their 90s, government data show.

The oldest South Korean participant is 101-year-old Baek Seong-gyu, who was reunited with his daughter-in-law and granddaughter.

“Most participants are elderly and many suffer from hypertension, diabetes and have underlying medical conditions,” said physician Han Sang-jo. “Ahead of the reunions, we are thoroughly checking their health.”

Many brought gifts of clothing, medicine, and food for their North Korean relatives since anything deemed extravagant by Pyongyang was unlikely to pass muster.

Moon Hyun-sook, 91, said she put together clothes, cosmetics, and medicine for her two sisters, younger than she is by 12 and 26 years.

“Whenever I saw pretty clothes, I always thought how cute they would look in them,” she said.

(Reporting by Hyonhee Shin and Joyce Lee in SEOUL, Hyun Young Yi in SOKCHO, and Joint Press Corps; Editing by Soyoung Kim and Clarence Fernandez)