Tag Archives: South Korea

U.S. envoy says North Korean leader ‘begging for war’ as U.N. mulls sanctions

Secretary of Defense James Mattis (L) makes a statement outside the West Wing of the White House in response to North Korea's latest nuclear testing, as Chairman of the Joint Chiefs of Staff Gen. Joseph Dunford listens, in Washington, U.S., September 3, 2017

By Christine Kim and Michelle Nichols

SEOUL/UNITED NATIONS (Reuters) – The United States on Monday said countries trading with North Korea were aiding its “dangerous nuclear intentions” as the United Nations Security Council mulled tough new sanctions and the isolated regime showed signs of planning more missile tests.

South Korea said it was talking to Washington about deploying aircraft carriers and strategic bombers to the Korean peninsula following the North’s sixth and most powerful nuclear test on Sunday.

At a Security Council meeting, U.S. Ambassador Nikki Haley said North Korea’s Kim Jong Un was “begging for war” and urged the 15-member group to adopt the strongest possible measures to deter him.

“War is never something the United States wants. We don’t want it now. But our country’s patience is not unlimited. We will defend our allies and our territory,” Haley said.

“The United States will look at every country that does business with North Korea as a country that is giving aid to their reckless and dangerous nuclear intentions,” she said.

Haley said the United States will circulate a new Security Council resolution on North Korea this week and wants a vote on it next Monday.

China, a top trading partner with North Korea, and Russia called for a peaceful resolution to the crisis.

“China will never allow chaos and war on the (Korean) Peninsula,” said Liu Jieyi, the Chinese ambassador to the United Nations.

Russia said peace in the region was in jeopardy.

“A comprehensive settlement to the nuclear and other issues plaguing the Korean peninsula can be arrived at solely through political diplomatic channels,” Russia’s U.N. Ambassador Vassily Nebenzia said.

North Korea has been under U.N. sanctions since 2006 over its ballistic missile and nuclear programs. Typically, 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.

U.S. President Donald Trump had asked to be briefed on all available military options, according to his defense chief.

Officials said activity around missile launch sites suggested North Korea planned more missile tests.

“We have continued to see signs of possibly more ballistic missile launches. We also forecast North Korea could fire an intercontinental ballistic missile,” Jang Kyoung-soo, acting deputy minister of national defense policy, told a parliament hearing on Monday.

North Korea tested two ICBMs in July that could fly about 10,000 km (6,200 miles), putting many parts of the U.S. mainland within range and prompting a new round of tough international sanctions.

 

MILITARY EXERCISES

South Korea’s air force and army conducted exercises involving long-range air-to-surface and ballistic missiles on Monday following the North’s nuclear test on Sunday, its joint chiefs of staff said in a statement.

In addition to the drill, South Korea will cooperate with the United States and seek to deploy “strategic assets like aircraft carriers and strategic bombers”, Jang said.

South Korea’s defense ministry also said it would deploy the four remaining launchers of a new U.S. missile defense system after the completion of an environmental assessment by the government.

The rollout of the controversial Terminal High Altitude Area Defense (THAAD) system at a site south of the South Korean capital, Seoul, which is vehemently opposed by neighboring China and Russia, had been delayed since June.

At the Security Council, neither Russia nor China mentioned their long-held opposition to THAAD or the prospect of further U.N. sanctions in the wake of North Korea’s nuclear test.

North Korea said it tested an advanced hydrogen bomb for a long-range missile on Sunday, prompting a warning from U.S. Defense Secretary Jim Mattis of a “massive” military response from the United States if it or its allies were threatened.

People walk past a street monitor showing a news report about North Korea's nuclear test in Tokyo, Japan, September 3, 2017.

People walk past a street monitor showing a news report about North Korea’s nuclear test in Tokyo, Japan, September 3, 2017. REUTERS/Toru Hanai

Trump has previously vowed to stop North Korea developing nuclear weapons and said he would unleash “fire and fury” if it threatened U.S. territory

Despite the tough talk, the immediate focus of the international response was on tougher economic sanctions.

Diplomats have said the Security Council could now consider banning North Korean textile exports and its national airline, stop supplies of oil to the government and military, prevent North Koreans from working abroad and add top officials to a blacklist to subject them to an asset freeze and travel ban.

Asked about Trump’s threat to punish countries that trade with North Korea, Chinese Foreign Ministry spokesman Geng Shuang said China has dedicated itself to resolving the North Korean issue via talks, and China’s efforts had been recognized.

“What we absolutely cannot accept is that on the one hand (we are) making arduous efforts to peacefully resolve the North Korean nuclear issue, and on the other hand (our) interests are being sanctioned or harmed. This is both not objective and not fair,” he told a regular briefing.

On possible new U.N. sanctions, and whether China would support cutting off oil, Geng said it would depend on the outcome of Security Council discussions.

China’s state-run Xinhua news agency said in an editorial that North Korea was “playing a dangerous game of brinkmanship” and it should wake up to the fact that such a tactic “can never bring security it pursues”.

 

SKEPTICISM

While South Korean President Moon Jae-in and Japanese Prime Minister Shinzo Abe agreed on Monday to work with the United States to pursue stronger sanctions, Russia voiced scepticism.

Russian Deputy Foreign Minister Sergei Ryabkov said sanctions on North Korea had reached the limit of their impact. Any more would be aimed at breaking its economy, so a decision to impose further constraints would become dramatically harder, he told a BRICS summit in China.

South Korea says the aim of stronger sanctions is to draw North Korea into dialogue. But, in a series of tweets on Sunday, Trump also appeared to rebuke South Korea for that approach.

“South Korea is finding, as I have told them, that their talk of appeasement with North Korea will not work, they only understand one thing!” Trump said on Twitter.

Still, Trump’s response was more orderly and less haphazard than he had offered after North Korea’s previous hostile actions.

His handling of its latest nuclear test reflected a more traditional approach to crisis management, which U.S. officials said illustrated the influence of Mattis and the new White House chief of staff, retired Marine Corps General John Kelly.

Japanese and South Korean stock markets both closed down about 1 percent on Monday, while safe-haven assets including gold and sovereign bonds ticked higher, but trade was cautious. U.S. stock markets were closed for the Labor Day holiday.

“Assuming the worst on the Korean peninsula has not proven to be a winning trading strategy this year,” said Sean Callow, a senior foreign exchange strategist at Westpac Bank.

“Investors seem reluctant to price in anything more severe than trade sanctions, and the absence of another ‘fire and fury’ Trump tweet has helped encourage markets to respond warily.”

South Korea’s finance minister vowed to support financial markets if instability showed signs of spreading to the real economy.

(Additional reporting by Shin-hyung Lee, Hyunjoo Jin and Cynthia Kim in SEOUL, Steve Holland, David Brunnstrom, Tim Ahmann, David Shepardson and John Walcott in WASHINGTON, John Ruwitch in SHANGHAI, Wayne Cole and Swati Pandey in SYDNEY; Writing by Lincoln Feast and Jeff Mason; Editing by Robert Birsel and Paul Simao)

 

U.S., South Korea agree to revise missile treaty in face of North Korean threats

The intercontinental ballistic missile Hwasong-14, in this photo released July 4, 2017.

SEOUL (Reuters) – U.S. President Donald Trump agreed with South Korean President Moon Jae-in to revise a joint treaty capping the development of the South’s ballistic missiles, Moon’s office said on Saturday, amid a standoff over North Korea’s missile and nuclear tests.

Trump also gave “conceptual” approval to the purchase by the South of billions of dollars of U.S. military hardware, the White House said.

The South wants to raise the missile cap to boost its defenses against the reclusive North, which is pursuing missile and nuclear weapons programs in defiance of international warnings and UN sanctions.

“The two leaders agreed to the principle of revising the missile guideline to a level desired by South Korea, sharing the view that it was necessary to strengthen South Korea’s defense capabilities in response to North Korea’s provocations and threats,” South Korea’s presidential Blue House said.

Impoverished North Korea and the rich, democratic South are technically still at war because their 1950-53 conflict ended in a truce, not a peace treaty. The North regularly threatens to destroy the South and its main ally, the United States.

North Korea sharply raised regional tension this week with the launch of its Hwasong-12 intermediate-range ballistic missile that flew over Japan and landed in the Pacific.

That followed the test launch of two long-range ballistic missiles in July in a sharply lofted trajectory that demonstrated a potential range of 10,000 km (6,000 miles) or more that would put many parts of the U.S. mainland within striking distance.

North Korea has been working to develop a nuclear-tipped missile capable of hitting the United States and has recently threatened to land missiles near the U.S. Pacific territory of Guam.

South Korea’s development of its ballistic missiles is limited to range of 800 km (500 miles) and payload weight of 500 kg (1,100 pounds) under a bilateral treaty revised in 2012.

South Korea has said it wants to revise the agreement to increase the cap on the payload.

The two countries agreed to the cap as part of a commitment to a voluntary international arms-control pact known as the Missile Technology Control Regime, aimed at limiting the proliferation missiles and nuclear weapons.

The two leaders pledged to continue to apply strong diplomatic and economic pressure on North Korea and to make all necessary preparations to defend against the growing threat by the North, the White House said.

The White House did not mention the voluntary bilateral agreement but said the two leaders agreed to strengthen their defense cooperation and South Korea’s defense capabilities.

Trump “provided his conceptual approval of planned purchases by South Korea of billions of dollars in American military equipment”, the White House said.

Trump, who has warned that the U.S. military is “locked and loaded” in case of further North Korean provocation, reacted angrily to the latest missile test, declaring on Twitter that “talking is not the answer” to resolving the crisis.

North Korea defends its weapons programs as necessary to counter perceived U.S. aggression, such as recent air maneuvers with South Korean and Japanese jets.

(Reporting by Jack Kim in Seoul and Eric Beech in Washington; Editing by Nick Macfie)

Putin warns North Korea situation on verge of ‘large-scale conflict’

North Koreans watch a news report showing North Korea's Hwasong-12 intermediate-range ballistic missile launch

MOSCOW (Reuters) – Russian President Vladimir Putin warned on Friday that the tense standoff between North Korea and the United States was on the verge of large-scale conflict and said it was a mistake to try to pressure Pyongyang over its nuclear missile program.

Putin, who is due to attend a summit of the BRICS nations in China next week, wrote in an article published on the Kremlin’s web site ahead of his trip that he favored negotiations with North Korea instead.

“It is essential to resolve the region’s problems through direct dialogue involving all sides without advancing any preconditions (for such talks),” Putin wrote.

“Provocations, pressure, and bellicose and offensive rhetoric is the road to nowhere.”

The situation on the Korean Peninsula had deteriorated so much that it was now “balanced on the verge of a large-scale conflict,” said the Russian leader.

North Korea has been working to develop a nuclear-tipped missile capable of hitting the United States and has recently threatened to land missiles near the U.S. Pacific territory of Guam.

On Monday, Pyongyang, which sees joint war games between the United States and South Korea as preparations for invasion, raised the stakes in its stand-off with the United States and its allies by firing an intermediate-range missile over Japan.

“In Russia’s opinion the calculation that it is possible to halt North Korea’s nuclear missile programs exclusively by putting pressure on Pyongyang is erroneous and futile,” Putin wrote.

A road map formulated by Moscow and Beijing, which would involve North Korea stopping work on its missile program in exchange for the United States and South Korea halting large-scale war games, was a way to gradually reduce tensions, wrote Putin.

 

(Reporting by Dmitry Solovyov; Editing by Andrew Osborn)

 

North Korea sentences South Korean reporters to death over review of book about country

SEOUL (Reuters) – A North Korean court sentenced two South Korean journalists and their publishers to death for “seriously insulting the dignity” of the country by reviewing and interviewing the British authors of a book about life in the North, its state media said on Thursday.

North Korea has previously issued harshly worded accusations against South Korean entities and individuals for allegedly violating its dignity, by slandering its leadership and its political system.

The book in English titled “North Korea Confidential” was authored by James Pearson, a Seoul-based correspondent for Reuters, and Daniel Tudor, former correspondent in South Korea for the Economist magazine.

The book, based on interviews with North Korean defectors, diplomats and traders, depicts a growing market economy where ordinary North Koreans enjoy access to South Korea music and TV dramas, fashion and smuggled Chinese and American films. Pearson wrote the book, published in 2015, before joining Reuters.

The Korean-language edition, published earlier this month with the title translated as “Capitalist Republic of Korea”, was reviewed by South Korea’s Dong-A Ilbo and Chosun Ilbo newspapers.

A spokesman for the North’s Central Court said in a statement carried by the country’s official KCNA news agency that the book “viciously slandered the reality of the DPRK”, the initials for North Korea’s official name of the Democratic People’s Republic of Korea. The book painted life in the country as increasingly capitalistic where money can buy power and influence, the spokesman said.

The South Korean journalists who reviewed the book “committed a hideous crime of seriously insulting the dignity of the DPRK with the use of dishonest contents” carried by “North Korea Confidential”, the court spokesman said.

The Central Court has ordered the execution of the journalists, Son Hyo-rim of the Dong-A Ilbo and Yang Ji-ho of the Chosun Ilbo, and the publishers of the newspapers. It also demanded the South Korean government investigate their crimes and punish them, the state media said.

The court statement did not make any mention of punishment for the book’s authors.

A Dong-A Ilbo representative said the newspaper declined to comment and its reporter Son did not immediately respond to a request for comment. Chosun Ilbo reporter Yang declined to comment while a newspaper representative could not be immediately reached for comment. Tudor, the co-author of the book, declined to comment.

A Reuters spokeswoman declined to comment.

“Dong-A Ilbo, Chosun Ilbo and other conservative media in South Korea have so far committed smear campaign against the DPRK nonstop,” KCNA quoted the court as saying. “The criminals hold no right to appeal and the execution will be carried out any moment and at any place without going through any additional procedures.”

(Reporting by Jack Kim and Soyoung Kim; Editing by Neil Fullick)

U.S. bombers drill over Korean peninsula after latest North Korea launch

U.S. bombers drill over Korean peninsula after latest North Korea launch

By Jack Kim and Kaori Kaneko

SEOUL/TOKYO (Reuters) – South Korean and Japanese jets joined exercises with two U.S. nuclear-capable bombers above and near the Korean peninsula on Thursday, two days after North Korea fired a missile over Japan, sharply raising tension.

The drills, involving two supersonic U.S. B-1B bombers, four U.S. stealth F-35B jets as well as South Korean and Japanese fighter jets, came at the end of annual joint U.S.-South Korea military exercises focused mainly on computer simulations.

“North Korea’s actions are a threat to our allies, partners and homeland, and their destabilizing actions will be met accordingly,” said General Terrence J. O’Shaughnessy, Pacific Air Forces commander, who made an unscheduled visit to Japan.

“This complex mission clearly demonstrates our solidarity with our allies and underscores the broadening cooperation to defend against this common regional threat. Our forward deployed force will be the first to the fight, ready to deliver a lethal response at a moment’s notice if our nation calls.”

North Korea has made no secret of its intention to develop the knowhow to launch a nuclear-tipped missile at the United States and has recently threatened the U.S. Pacific territory of Guam. It denounced the U.S. exercises in traditionally robust fashion.

“The U.S. imperialists and the south Korean puppet forces do not hide their bellicose nature, claiming that the exercises are to ‘counter’ the DPRK’s ballistic rocket launches and nuclear weapons development,” the North’s KCNA news agency said, referring to North Korea by its official name, the Democratic People’s Republic of Korea (DPRK).

“But the wild military acts of the enemies are nothing but the rash act of those taken aback by the intermediate-to-long range strategic ballistic rocket launching drill conducted by the army of the DPRK as the first military operation in the Pacific.”

U.S. President Donald Trump has warned North Korea it would face “fire and fury” if it threatened the United States and that the U.S. military was “locked and loaded” in case of any provocation.

Trump on Wednesday declared “talking is not the answer” to resolving the long-standing impasse.

“The U.S. has been talking to North Korea, and paying them extortion money, for 25 years,” Trump, who last week said North Korean leader Kim Jong Un was “starting to respect” the United States, wrote on Twitter.

“Talking is not the answer!”

However, U.S. Defence Secretary Jim Mattis, when asked by reporters just hours later if the United States had run out of diplomatic solutions with North Korea, replied: “No.”

“We are never out of diplomatic solutions,” Mattis said before a meeting with his South Korean counterpart at the Pentagon. “We continue to work together, and the minister and I share a responsibility to provide for the protection of our nations, our populations and our interests.”

Japanese Defence Minister Itsunori Onodera spoke to Mattis by telephone and agreed to keep putting pressure on North Korea in a “visible” form, Japan’s defense ministry said. Japanese Prime Shinzo Abe said he and visiting British Prime Minister Theresa May agreed to urge China, North Korea’s lone major ally, to do more to rein in the North.

They also discussed the possibility of adopting a new U.N. Security Council resolution over North Korea, a British government source said.

SANCTION OPTIONS

The 15-member Security Council on Tuesday condemned the firing of an intermediate range ballistic missile over Japan as “outrageous” and demanded that North Korea halt its weapons program, but the U.S.-drafted statement did not threaten new sanctions.

Japan was pushing the United States to propose new U.N. Security Council sanctions, which diplomats said could target North Korea’s laborers working abroad, oil supply and textile exports.

Diplomats expected resistance from Russia and fellow veto-wielding power China, particularly given new measures were only recently imposed after North Korea staged two long-range missile launches in July.

A U.S. ban on travel to North Korea comes into effect on Friday, curbing one of its few remaining supplies of foreign currency.

China again urged restraint from all parties.

Defence ministry spokesman Ren Guoqiang told a monthly briefing that China would never allow war or chaos on the Korean peninsula, its doorstep, and military means were not an option.

“China strongly demands all sides to exercise restraint and remain calm and not do anything to worsen tensions,” Ren said, adding that Chinese forces were maintaining a normal state of alert along the North Korean border.

Chinese foreign ministry spokeswoman Hua Chunying said the situation on the peninsula was serious.

“I also want to stress that the current tense situation on the peninsula isn’t a screenplay or a video game,” she told reporters.

“It’s real, and is an immense and serious issue that directly involves the safety of people from both the north and south of the peninsula, as well as peace and stability of the entire region.”

‘KEY MILESTONE’

The Pentagon’s Missile Defense Agency and the crew of the guided-missile destroyer USS John Paul Jones conducted a “complex missile defense flight test” off Hawaii on Wednesday, resulting in the intercept of a medium-range ballistic missile target, the agency said.

The agency’s director, Lieutenant General Sam Greaves, called the test “a key milestone” in giving U.S. Navy Aegis Ballistic Missile Defense ships an enhanced capability, but did not mention North Korea.

The United States and South Korea are technically still at war with North Korea because their 1950-53 conflict ended in a truce, not a peace treaty.

North Korea routinely says it will never give up its weapons programs, calling them necessary to counter perceived American hostility.

For an interactive on North Korea’s missile capabilities, click: http://fingfx.thomsonreuters.com/gfx/rngs/NORTHKOREA-MISSILES/010041L63FE/index.html

For a graphic on North Korean missile trajectories, ranges, click: http://fingfx.thomsonreuters.com/gfx/rngs/NORTHKOREA-MISSILES/010050CG0RT/NORTHKOREA-MISSILES.png

For a graphic on Kim’s new act of defiance, click: http://fingfx.thomsonreuters.com/gfx/rngs/NORTHKOREA-MISSILES/010050KV1C3/index.html

(Additional reporting by Tim Kelly, Linda Sieg, William James and Nubohiro Kubo in TOKYO, Michael Martina and Ben Blanchard in BEIJING; Writing by Lincoln Feast and Nick Macfie; Editing by Raju Gopalakrishnan, Robert Birsel)

North Korea tests short-range missiles as South Korea, U.S. conduct drills

North Korea tests short-range missiles as South Korea, U.S. conduct drills

By Jack Kim and Phil Stewart

SEOUL/WASHINGTON (Reuters) – North Korea fired several short-range missiles into the sea off its east coast early on Saturday, South Korea and the U.S. military said, as the two allies conducted annual joint military drills that the North denounces as preparation for war.

The U.S. military’s Pacific Command said it had detected three short-range ballistic missiles, fired over a 20 minute period.

One appeared to have blown up almost immediately while two flew about 250 km (155 miles) in a northeasterly direction, Pacific Command said, revising an earlier assessment that two of the missiles had failed in flight.

The test came just days after senior U.S. officials praised North Korea and leader Kim Jong Un for showing restraint in not firing any missiles since late July.

The South Korean Office of the Joint Chiefs of Staff said the projectiles were launched from the North’s eastern Kangwon province into the sea.

Later on Saturday, the South Korean Presidential Blue House said the North may have fired an upgraded 300-mm caliber multiple rocket launcher but the military was still analyzing the precise details of the projectiles.

Pacific Command said the missiles did not pose a threat to the U.S. mainland or to the Pacific territory of Guam, which North Korea had threatened earlier this month to surround in a “sea of fire”.

Tensions had eased somewhat since a harsh exchange of words between Pyongyang and Washington after U.S. President Donald Trump had warned North Korean leader Kim Jong Un he would face “fire and fury” if he threatened the United States.

North Korea’s last missile test on July 28 was for an intercontinental ballistic missile designed to fly 10,000 km (6,200 miles). That would put parts of the U.S. mainland within reach and prompted heated exchanges that raised fears of a new conflict on the peninsula.

Japan’s Chief Cabinet Secretary Yoshihide Suga said the missiles did not reach its territory or exclusive economic zone and did not pose a threat to Japan’s safety.

MILITARY DRILLS

The South Korean and U.S. militaries are in the midst of the annual Ulchi Freedom Guardian drills involving computer simulations of a war to test readiness and run until Aug. 31.

The region where the missiles were launched, Kittaeryong, is a known military test site frequently used by the North for short-range missile drills, said Kim Dong-yub, a military expert at the Institute for Far Eastern Studies in Seoul.

“So rather than a newly developed missile, it looks to be short range missiles they fired as part of their summer exercise and also in response to the Ulchi Freedom Guardian drill,” he said.

The United States and South Korea are technically still at war with the North because their 1950-53 conflict ended in a truce, not a peace treaty. The North routinely says it will never give up its weapons programs, saying they are necessary to counter perceived U.S. hostility.

Washington has repeatedly urged China, North Korea’s main ally and trading partner, to do more to rein in Pyongyang.

China’s commerce ministry late on Friday banned North Korean individuals and enterprises from doing new business in China, in line with United Nations Security Council sanctions passed earlier this month.

TRUMP BRIEFED

The White House said Trump had been briefed about the latest missiles but did not immediately have further comment.

The U.S. State Department did not immediately comment about the Saturday launches. Secretary of State Rex Tillerson earlier this week credited the North with showing restraint by not launching a missile since the July ICBM test.

Tillerson had said he hoped that the lack of missile launches or other “provocative acts” by Pyongyang could mean a path could be opening for dialogue “sometime in the near future.”

Trump also expressed optimism earlier this week about a possible improvement in relations. “I respect the fact that he is starting to respect us,” Trump said of Kim.

North Korea’s state media reported on Saturday that Kim had guided a contest of amphibious landing and aerial strike by its army against targets modeled after South Korean islands near the sea border on the west coast.

The official KCNA news agency quoted Kim as telling its Army that it “should think of mercilessly wiping out the enemy with arms only and occupying Seoul at one go and the southern half of Korea.”

A new poster on a North Korean propaganda website on Saturday showed a missile dealing “a retaliatory strike of justice” against the U.S. mainland, threatening to “wipe out the United States, the source of evil, without a trace.”

On Wednesday, Kim ordered the production of more rocket engines and missile warheads during a visit to a facility associated with North Korea’s ballistic missile program.

Diagrams and what appeared to be missile parts shown in photographs published in the North’s state media suggested Pyongyang was pressing ahead with building a longer-range ballistic missile that could potentially reach any part of the U.S. mainland including Washington.

(For an interactive package on North Korea’s missile capabilities click http://fingfx.thomsonreuters.com/gfx/rngs/NORTHKOREA-MISSILES/010041L63FE/index.html)

(Additional reporting by Ju-min Park in Seoul, Nobuhiro Kubo and Tim Kelly in Tokyo, Christian Shepherd in Beijing and David Brunnstrom and Idrees Ali in Washington; Editing by Lincoln Feast and Michael Perry)

Russia sends nuclear-capable bombers on mission near South Korea, Japan

A Tupolev Tu-95MS strategic bomber, the carrier of nuclear rockets, lands at the Yemelyanovo airport near Russia's Siberian city of Krasnoyarsk, June 8, 2011. REUTERS/Ilya Naymushin

MOSCOW (Reuters) – Russian nuclear-capable strategic bombers have flown over the Pacific Ocean, the Sea of Japan, the Yellow Sea and the East China Sea, prompting Japan and South Korea to scramble jets to escort them, Russia said on Thursday.

Russia’s Defence Ministry said in a statement the Tupolev-95MS bombers, code named “Bears” by NATO, flew over neutral waters and were accompanied by Russian Sukhoi-35S fighter jets and A-50 early warning and control aircraft.

It gave no details about the overall number of aircraft that had taken part in what it called a pre-arranged flight and did not say when or why the mission took place.

The TU-95MS bombers were refueled in mid-air during the mission, the ministry said.

During parts of the route, the bombers were escorted by South Korean and Japanese military jets, it added.

Russia, which shares a border with North Korea, has repeatedly voiced concerns about rising tensions on the Korean Peninsula caused by Pyongyang’s nuclear missile program, and has complained about Japan’s plans to deploy a U.S. anti-missile system on its soil.

(Reporting by Dmitry Solovyov; Editing by Andrew Osborn)

U.S., South Korea begin computer-simulated drills which North says are aimed at nuclear war

A U.S. Air Force U-2 Dragon Lady takes part in a drill at Osan Air Base in Pyeongtaek, South Korea, August 21, 2017.

By Christine Kim

SEOUL (Reuters) – South Korean and U.S. forces began computer-simulated military exercises on Monday amid tension over North Korea’s weapons programs, while a report it has earned millions of dollars in exports is likely to raise doubt about the impact of sanctions.

South Korean President Moon Jae-in said the joint drills, called Ulchi Freedom Guardian, were purely defensive and did not aim to increase tension on the peninsula, but North Korea denounced the exercises as preparation for war.

“There is no intent at all to heighten military tension on the Korean peninsula as these drills are held annually and are of a defensive nature,” Moon told cabinet ministers.

“North Korea should not exaggerate our efforts to keep peace nor should they engage in provocations that would worsen the situation, using (the exercise) as an excuse,” he said.

The joint U.S.-South Korean drills last until Aug. 31 and involve computer simulations designed to prepare for war with a nuclear-capable North Korea.

The United States also describes them as “defensive in nature”, a term North Korean state media has dismissed as a “deceptive mask”.

“It’s to prepare if something big were to occur and we needed to protect ROK,” said Michelle Thomas, a U.S. military spokeswoman, referring to South Korea by its official name, the Republic of Korea.

North Korea views such exercises as preparations for invasion and has fired missiles and taken other actions to show its anger over military drills in the past.

“This is aimed to ignite a nuclear war on the Korean peninsula at any cost,” the North’s KCNA news agency said.

“The situation on the Korean peninsula has plunged into a critical phase due to the reckless north-targeted war racket of the war maniacs.”

North and South Korea are technically still at war after the 1950-53 Korean War ended with a truce, not a peace treaty.

North Korea’s rapid progress in developing nuclear weapons and missiles capable of reaching the U.S. mainland has fueled a surge in regional tension and U.N.-led sanctions appear to have failed to bite deeply enough to change its behavior.

China, North Korea’s main ally and trading partner, has urged the United States and South Korea to scrap the exercises. Russia has also asked for the drills to stop but the United States has not backed down.

Speaking in Beijing, Chinese Foreign Ministry spokeswoman Hua Chunying said North and South Korea and the United States all needed to make more effort to ease tension.

“We think that South Korea and the United States holding joint drills is not beneficial to easing current tensions or efforts by all sides to promote talks,” she told a daily news briefing.

 

SANCTIONS UNDERMINED

Japan’s Kyodo news agency reported that a confidential U.N. report found North Korea evaded U.N. sanctions by “deliberately using indirect channels” and had generated $270 million in banned exports since February.

The “lax enforcement” of existing sanctions and Pyongyang’s “evolving evasion techniques” were undermining the U.N. goal of getting North Korea to abandon its nuclear and ballistic missile programs, Kyodo quoted the report as saying.

The U.N. Security Council unanimously imposed new sanctions on North Korea on Aug. 5 that could slash its $3 billion annual export revenue by a third. The latest sanctions were imposed after North Korea tested two intercontinental ballistic missiles in July.

U.S. President Donald Trump warned North Korea this month it would face “fire and fury” if it threatens the United States.

The North responded by threatening to fire missiles towards the U.S. Pacific island territory of Guam, but later said it was holding off while it waited to see what the United States would do next.

There will be no field training during the current exercise, according to U.S. Forces Korea.

The United States has about 28,000 troops in South Korea. About 17,500 U.S. service members are participating in the exercise this month, down from 25,000 last year, according to the Pentagon.

U.S. Defense Secretary Jim Mattis said on Sunday the reduction in the number of U.S. troops taking part reflected a need for fewer personnel and was not because of tension with North Korea.

Other South Korean allies are also joining this year, with troops from Australia, Britain, Canada, Colombia, Denmark, the Netherlands, and New Zealand taking part.

 

(Writing by Linda Sieg; Additional reporting by Ben Blanchard in BEIJING; Editing by Paul Tait, Robert Birsel)

 

Korea tensions ease slightly as U.S. officials play down war risks

A South Korean soldier stands guard at a guard post near the demilitarized zone separating the two Koreas in Paju, South Korea, August 14, 2017.

By Christine Kim and Ben Blanchard

SEOUL/BEIJING (Reuters) – Tension on the Korean peninsula eased slightly on Monday as South Korea’s president said resolving North Korea’s nuclear ambitions must be done peacefully and U.S. officials played down the risk of an imminent war.

Concern that North Korea is close to achieving its goal of putting the mainland United States within range of a nuclear weapon has caused tension to spike in recent months.

U.S. President Donald Trump warned last week that the U.S. military was “locked and loaded” if North Korea acted unwisely after threatening to land missiles in the sea near the U.S. Pacific territory of Guam.

“There must be no more war on the Korean peninsula. Whatever ups and downs we face, the North Korean nuclear situation must be resolved peacefully,” South Korean President Moon Jae-in told a meeting with senior aides and advisers.

“I am certain the United States will respond to the current situation calmly and responsibly in a stance that is equal to ours,” he said.

U.S. Defense Secretary Jim Mattis and Secretary of State Rex Tillerson sent a conciliatory message to North Korea in an op-ed piece in the Wall Street Journal on Sunday.

“The U.S. has no interest in regime change or accelerated reunification of Korea. We do not seek an excuse to garrison U.S. troops north of the Demilitarized Zone,” the officials said, addressing some of Pyongyang’s fears that Washington ultimately intends to replace the reclusive country’s leadership.

The article took a softer tone on North Korea than the president, who warned Pyongyang last week of “fire and fury” if it launched an attack.

Mattis and Tillerson underlined that the United States aims “to achieve the complete, verifiable and irreversible denuclearization of the Korean Peninsula and a dismantling of the regime’s ballistic-missile programs.”

“While diplomacy is our preferred means of changing North Korea’s course of action, it is backed by military options,” they said.

The United States is adopting a policy of “strategic accountability” towards North Korea, the officials wrote, but it is not clear how this significantly differs from the “strategic patience” Korea policy of former President Barack Obama.

A global index of stocks rose, after fears of a U.S.-North Korea nuclear standoff had driven it to the biggest weekly losses of 2017, while the dollar also strengthened.

U.S. Central Intelligence Agency Director Mike Pompeo said North Korean leader Kim Jong Un might conduct another missile test but talk of being on the cusp of a nuclear war was overstating the risk.

“I’ve seen no intelligence that would indicate that we’re in that place today,” Pompeo told “Fox News Sunday”.

However, North Korea reiterated its threats, with its official KCNA news agency saying “war cannot be blocked by any power if sparks fly due to a small, random incident that was unintentional”.

“Any second Korean War would have no choice but to spread into a nuclear war,” it said in a commentary.

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

MISSILE DOUBTS

South Korean Vice Defence Minister Suh Choo-suk agreed North Korea was likely to continue provocations, including nuclear tests, but did not see a big risk of the North engaging in actual military conflict.

Suh again highlighted doubts about North Korea’s claims about its military capability.

“Both the United States and South Korea do not believe North Korea has yet completely gained re-entry technology in material engineering terms,” Suh said in remarks televised on Sunday for a Korea Broadcasting System show.

Ukraine denied on Monday that it had supplied defense technology to North Korea, responding to an article in the New York Times that said North Korea may have purchased rocket engines from Ukrainian factory Yuzhmash.

Tension in the region has risen since North Korea carried out two nuclear bomb tests last year and two intercontinental ballistic missile tests in July, tests it often conducts to coincide with important national dates.

Tuesday marks the anniversary of Japan’s expulsion from the Korean peninsula, a rare holiday celebrated by both the North and the South. Moon and Kim, who has not been seen publicly for several days, are both expected to make addresses on their respective sides of the heavily militarised border.

Trump has urged China, the North’s main ally and trading partner, to do more to rein in its neighbor, often linking Beijing’s efforts to comments around U.S.-China trade. China strenuously rejects linking the two issues.

Trump will issue an order later on Monday to determine whether to investigate Chinese trade practices that force U.S. firms operating in China to turn over intellectual property, senior administration officials said on Saturday.

Chinese Foreign Ministry spokeswoman Hua Chunying said that Beijing has said many times the essence of China-U.S. trade and business ties is mutual benefit and that there is no future in any trade war between China and the United States.

“The (Korean) peninsula issue and trade and business issues are in a different category from each other,” Hua added. “On these two issues, China and the United States should respect each other and increase cooperation. Using one issue as a tool for exerting pressure on another is clearly inappropriate.”

China’s Commerce Ministry issued an order on Monday banning imports of coal, iron ore, lead concentrates and ore, lead and sea food from North Korea, effective from Tuesday.

The move followed the announcement of U.N. sanctions against North Korea this month which have to be enforced within 30 days by member states.

U.S. Joint Chiefs of Staff Chairman Joseph Dunford told South Korea’s Moon in a meeting on Monday that U.S. military options being prepared against North Korea would be for when diplomatic and economic sanctions failed, according to Moon’s office.

(Writing by Lincoln Feast and Alistair Bell; Editing by Raju Gopalakrishnan and James Dalgleish)

 

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)