U.S. House gives final approval to tax bill, delivers victory to Trump

President Trump celebrates with Congressional Republican on the South Lawn of the White House.

By David Morgan and Amanda Becker

WASHINGTON (Reuters) – The Republican-controlled U.S. House of Representatives gave final approval on Wednesday to the biggest overhaul of the U.S. tax code in 30 years, sending a sweeping $1.5 trillion tax bill to President Donald Trump for his signature.

In sealing Trump’s first major legislative victory, Republicans steamrolled opposition from Democrats to pass a bill that slashes taxes for corporations and the wealthy while giving mixed, temporary tax relief to middle-class Americans.

The House approved the measure, 224-201, passing it for the second time in two days after a procedural foul-up forced another vote on Wednesday. The Senate had passed it 51-48 in the early hours of Wednesday.

“We are making America great again,” Trump said, echoing his campaign slogan at a White House celebration with Republican lawmakers. “Ultimately what does it mean? It means jobs, jobs, jobs.”

Trump, who emphasized a tax cut for middle-class Americans during his 2016 campaign, said at an earlier Cabinet meeting that lowering the corporate tax rate from 35 percent to 21 percent was “probably the biggest factor in this plan.”

It was uncertain when the bill would be signed. White House economic adviser Gary Cohn said the timing depended on whether automatic spending cuts triggered by the legislation could be waived. If so, the president will sign it before the end of the year, he said.

The administration expects the waiver to be included in a spending resolution Congress will pass later this week, a White House official told reporters.

BUSINESS FRIENDLY

In addition to cutting the U.S. corporate income tax rate to 21 percent, the debt-financed legislation gives other business owners a new 20 percent deduction on business income and reshapes how the government taxes multinational corporations along the lines the country’s largest businesses have recommended for years.

Millions of Americans would stop itemizing deductions under the bill, putting tax breaks that incentivize home ownership and charitable donations out of their reach, but also making tax returns somewhat simpler and shorter.

The bill keeps the present number of tax brackets but adjusts many of the rates and income levels for each one. The top tax rate for high earners is reduced. The estate tax on inheritances is changed so far fewer people will pay.

Once signed, taxpayers likely would see the first changes to their paycheck tax withholdings in February. Most households will not see the full effect of the tax plan on their income until they file their 2018 taxes in early 2019.

In two provisions added to secure needed Republican votes, the legislation also allows oil drilling in Alaska’s Arctic National Wildlife Refuge and removes a tax penalty under the Obamacare health law for Americans who do not obtain health insurance.

“We have essentially repealed Obamacare and we’ll come up with something that will be much better,” Trump said.

Democrats were united in opposition to the tax legislation, calling it a giveaway to the wealthy that will widen the income gap between rich and poor, while adding $1.5 trillion over the next decade to the $20 trillion national debt. Trump promised in 2016 he would eliminate the national debt as president.

“PILLAGING”

“Today the Republicans take their victory lap for successfully pillaging the American middle class to benefit the powerful and the privileged,” House Democratic leader Nancy Pelosi said.

Opinion polls show the tax bill is unpopular with the public and Democrats promised to make Republicans pay for their vote during next year’s congressional elections, when all 435 House seats and 34 of the 100 Senate seats will be up for grabs.

“Republicans will rue the day they passed this bill,” Senate Democratic leader Chuck Schumer told reporters. “We are going to continue hammering away about why this bill is so unpopular.”

U.S. House Speaker Paul Ryan defended the bill, saying support would grow for after it passes and Americans felt relief. “I think minds are going to change,” Ryan said on ABC’s “Good Morning America” television program.

A few Republicans, a party once defined by fiscal hawkishness, have protested the deficit-spending encompassed in the bill. But most voted for it anyway, saying it would help businesses and individuals while boosting an already expanding economy they see as not growing fast enough.

In the House, 12 Republicans voted against the tax bill. All but one, Walter Jones of North Carolina, were from the high-tax states of New York, New Jersey and California, which will be hit by the bill’s cap on deductions for state and local taxes.

Despite Trump administration promises that the tax overhaul would focus on the middle class and not cut taxes for the rich, the nonpartisan Tax Policy Center, a think tank in Washington, estimated middle-income households would see an average tax cut of $900 next year under the bill, while the wealthiest 1 percent of Americans would see an average cut of $51,000.

The House was forced to vote again after the Senate parliamentarian ruled three minor provisions violated arcane Senate rules. To proceed, the Senate deleted the three provisions and then approved the bill.

Because the House and Senate must approve the same legislation before Trump can sign it into law, the Senate’s late Tuesday vote sent the bill back to the House.

Graphic: Republican tax bill’s tax brackets and rates – http://tmsnrt.rs/2BJnrIV

Graphic: U.S. debt level since 1950 – http://reut.rs/2B3Yl3C

(Reporting by David Morgan and Amanda Becker; Additional reporting by Richard Cowan, Roberta Rampton, Gina Chon and Susan Heavey; Writing by John Whitesides; Editing by Jeffrey Benkoe and Bill Trott)

Opposition groups quit Iraqi Kurdish government

People are seen outside the Directorate of province building after it was set on fire by Kurdish protesters in Pera magroon district in Sulaimaniyah, Iraq December 19,

SULAIMANIYA, Iraq (Reuters) – Leading Kurdish opposition movement Gorran has withdrawn its ministers from Iraq’s semi-autonomous Kurdistan Regional Government (KRG) and its member Yousif Mohamed has resigned as parliament speaker, party sources told Reuters on Wednesday.

The Kurdistan Islamic Group (Komal), another opposition party with a smaller presence in parliament, also withdrew from the government.

The departures follow two days of violent unrest in the region, as Kurdish demonstrators joined protests against years of austerity and unpaid public sector salaries, amid tensions between their region and Baghdad.

Some protesters have demanded the regional government’s ousting.

Tension has been high in the region since the central government in Baghdad imposed tough measures when the KRG unilaterally held an independence referendum on Sept. 25 and Kurds voted overwhelmingly to secede.

The move, in defiance of Baghdad, also alarmed neighboring Turkey and Iran who have their own Kurdish minorities.

At least three people were killed and more than 80 wounded on Tuesday. They were killed in clashes with Kurdish security forces, local officials said, and some were injured when the crowd was shot at with rubber bullets and sprayed with tear gas.

Protesters also attacked several offices of the main political parties in Sulaimaniya province on Monday and Tuesday.

CURFEWS IMPOSED

There were no major protests in the city on Wednesday.

Security forces from the region’s capital Erbil have been deployed to help quell the unrest in the city, security sources told Reuters.

After Tuesday’s unrest, curfews were imposed in several towns across the province, some have lasted through Wednesday.

Local media reported smaller protests in towns across the province, including Ranya and Kifri.

In a statement on Tuesday, Kurdish Prime Minister Nechirvan Barzani, who is on an official visit to Germany, told protesters that although he understood their frustrations, the burning of political party offices is “not helpful”.

The United Nations Assistance Mission for Iraq (UNAMI) said on Wednesday it was “deeply concerned” about violence and clashes during the protests, and called for restraint on all sides.

“The people have the right to partake in peaceful demonstrations, and the authorities have the responsibility of protecting their citizens, including peaceful protesters,” UNAMI said in a statement.

UNAMI also called on the Kurdistan Regional Government (KRG) to respect media freedoms after Kurdish Asayish security forces on Tuesday raided the offices of Kurdish private broadcast NRT in Sulaimaniya, and took the channel off the air.

NRT’s founder and opposition figure Shaswar Abdulwahid was also arrested at the Sulaimaniya airport on Tuesday. His family have asked for his release, amid reports that another NRT journalist was arrested in Sulaimaniya on Wednesday.

(Additional reporting and writing by Raya Jalabi in Erbil and Ahmed Aboulenein in Baghdad; Editing by William Maclean)

U.S. home sales hit 11-year high in November, supply still tight

A U.S. flag decorates a for-sale sign at a home in the Capitol Hill neighborhood of Washington, August 21, 2012.

By Lucia Mutikani

WASHINGTON (Reuters) – U.S. home sales increased more than expected in November, hitting their highest level in nearly 11 years, the latest indication that housing was regaining momentum after almost stalling this year.

The National Association of Realtors said on Wednesday that existing home sales surged 5.6 percent to a seasonally adjusted annual rate of 5.81 million units last month amid continued recovery in areas in the South ravaged by Hurricanes Harvey and Irma. That was the highest level since December 2006 and followed an upwardly revised 5.50 million-unit pace in October.

Economists polled by Reuters had forecast home sales rising 0.9 percent to a 5.52 million-unit rate in November from a previously reported 5.48 million-unit pace in October.

Existing home sales make up about 90 percent of U.S. home sales. They rose 3.8 percent on a year-on-year basis in November.

The NAR said sales in the South, which accounts for almost half of the existing homes sales market, increased 8.3 percent last month. Sales rose 6.7 percent in the Northeast and jumped 8.4 percent in the Midwest. They, however, fell 2.3 percent in the West, which has seen a strong increase in house prices.

Despite the recent gains, existing home sales remain constrained by a chronic shortage of houses at the lower end of the market, which is keeping prices elevated and sidelining some first-time buyers, who accounted for 29 percent of transactions last month.

Economists and realtors say a 40 percent share of first-time buyers is needed for a robust housing market.

The number of previously owned homes on the market dropped 7.2 percent to 1.67 million units in November. That was the second lowest reading since 1999. Housing inventory has dropped for 30 straight months on a year-on-year basis.

At November’s sales pace, it would take a record low 3.4 months to exhaust the current inventory, down from 3.9 months in October. A six-month supply is viewed as a healthy balance between supply and demand.

With supply still tight, the median house price increased 5.8 percent from a year ago to $248,000 in November. That was the 69th consecutive month of year-on-year price gains. In contrast, annual wage growth has struggled to break above 2.9 percent since the 2007/09 recession ended.

The report came on the heels of data this week showing homebuilder confidence vaulting to a near 18-1/2-year high in December and single-family homebuilding and permits rising in November to levels last seen in the third quarter of 2007.

TAX REVAMP WILL HURT HOUSE PRICES

The NAR said it anticipated a slightly negative impact on the housing market from the Republican overhaul of the U.S. tax code.

The biggest overhaul of the tax system in more than 30 years, which could be signed into law by President Donald Trump soon, will cap the deduction for mortgage interest at $750,000 in home loan value for residences bought from Jan. 1, 2018, through Dec. 31, 2025.

After Dec. 31, 2025, the cap would revert to $1 million in loan value. It suspends the deduction for interest on home equity loans from Jan. 1, 2018 until 2026. The NAR said about 94 percent of homeowners would fall under the $750,000 cap.

Moody’s Analytics chief economist Mark Zandi has warned that the tax revamp would weigh on house prices, with the Northeast corridor, South Florida, big Midwestern cities, and the West Coast suffering the biggest price declines.

“The hit to national house prices is estimated to be near 4 percent at the peak of their impact in summer 2019,” said Zandi. “That is, national house prices will be approximately 4 percent lower than they would have been if there was no tax legislation.”

The PHLX housing index was trading higher in line with a broadly firmer stock market. The dollar slipped against a basket of currencies. Prices for U.S. Treasuries fell.

The government reported on Tuesday that single-family homebuilding, which accounts for the largest share of the housing market, jumped 5.3 percent in November to the highest level since September 2007.

Permits for the future construction of these housing units rose 1.4 percent to a level not seen since August 2007. Housing completions continued to lag at a rate of 1.116 million units.

Realtors estimate that the housing starts and completions rates need to be in a range of 1.5 million to 1.6 million units per month to plug the inventory gap.

(Reporting by Lucia Mutikani; Editing by Andrea Ricci)

South Carolina capital could be first U.S. city to ban gun bump stocks

An example of a bump stock that attaches to a semi-automatic rifle to increase the firing rate is seen at Good Guys Gun Shop in Orem, Utah, U.S. on October 4, 2017.

By Harriet McLeod

(Reuters) – South Carolina’s capital on Tuesday could become the first U.S. city to ban the use of bump stocks, a gun accessory that has drawn national scrutiny after being found among the Las Vegas mass shooter’s arsenal of weapons in the October rampage.

Last month, Massachusetts became the first state to pass a law that explicitly bans bump stocks.

Steve Benjamin, the mayor of Columbia, the South Carolina capital, said the city council was expected in a vote on Tuesday night to approve an ordinance barring the devices, which allow semiautomatic rifles to fire hundreds of rounds a minute like fully automatic machine guns.

“One of the common refrains that you hear, whether it was in Texas or Vegas or Sandy Hook, is that a good guy with a gun could have stopped the carnage,” Benjamin, a Democrat, said in a phone interview on Monday. “It’s time for the good guys with guns to begin to pass some really good policy.”

Authorities said Las Vegas shooter Stephen Paddock had 12 rifles outfitted with bump stocks in the hotel room where he launched his attack on an outdoor concert, killing 58 people and wounding hundreds in the deadliest mass shooting in modern U.S. history.

Since then several states and cities have proposed measures outlawing or restricting the attachments, and the U.S. Justice Department said earlier this month it was considering a ban on certain bump stocks.

California and New York do not prohibit bump stocks outright, but the devices fall under the definition of an automatic weapon, which are illegal in those states, according to Anne Teigen, who covers firearm legislation for the National Conference of State Legislatures. Some other states and the District of Columbia have assault weapons bans that could include bump stocks.

“We are not aware of any cities that have passed ordinancesbanning bump stocks,” said Tom Martin, a spokesman for the National League of Cities.

In Columbia, four of the council’s six members approved the city’s proposed ordinance on a first reading earlier this month.

The measure also would ban the use of other gun attachments that allow rifles to fire faster. Owners would be required to keep them stored separately from any weapon.

Trigger-enhancing devices are not gun parts, gun components, weapons or ammunition, which state law prohibits cities from regulating, Benjamin said.

The mayor, who has a background in law enforcement and said he owns guns, said the measure had drawn support from local police and council members who support the Second Amendment to the U.S. Constitution protecting gun ownership rights.

(Reporting by Harriet McLeod in Charleston, South Carolina; Editing by Colleen Jenkins and Leslie Adler)

U.S. investigators seek answers from train crew in Washington derailment

A damaged Amtrak passenger train car is lifted from the tracks at the site of the derailment of Amtrak train 501 in Dupont, Washington, U.S., December 19, 2017.

By Tom James

DUPONT, Wash. (Reuters) – U.S. safety inspectors probing the deadly wreck of a passenger train that careened off a bridge onto a highway in Washington state are eager to question the engineer and a conductor-in-training who were in the cab of the locomotive, officials said on Tuesday.

National Transportation Safety Board (NTSB) officials hoped interviews with all crew members would shed light on why Train 501 on Amtrak’s Cascades line was going more than twice the speed limit around a curved stretch of track when it derailed on Monday.

The accident occurred during the train’s inaugural run on a new, slightly quicker route between Olympia and Tacoma, with 86 people aboard, 80 of them passengers, Amtrak said.

NTSB officials said they planned to interview all the crew members in the next two days, once they sufficiently recover from injuries suffered in the wreck, including the conductor-in-training who was with the engineer at the time.

Safety board member T. Bella Dinh-Zarr told reporters that NTSB investigators would seek to determine, among other factors routinely examined, whether the engineer was distracted while driving the ill-fated train.

“Distraction is one of our most-wanted-list priorities at the NTSB,” she said.

She also said investigators had determined that the train’s emergency brakes were automatically activated while the derailment was occurring, rather than engaged manually by the engineer.

In addition, she confirmed that a safety system known as positive train control (PTC), which automatically slows trains if they go too fast, was not installed on the rail line. She said Congress had extended a mandatory deadline for having the PTC system installed on all passenger railways to 2018.

None of the crew has been identified. All were hospitalized, Dinh-Zarr said.

Three people aboard the train were killed when all 12 carriages and one of the train’s two locomotives tumbled off the rails onto Interstate 5 near the town of DuPont, about 50 miles south of Seattle, officials said. Another 100 people were taken to hospitals, 10 with serious injuries.

Some motorists were among the injured, though nobody on the highway died.

Recorded data recovered from the rear locomotive showed the train was going 80 miles (129 km) per hour on a bend in the track where the speed limit was 30 mph (48 kph), NTSB officials said on Monday night. The board said it was investigating whether other circumstances besides speed were involved, such as track conditions, signals, mechanical issues and human factors.

Speaking at an afternoon news conference on Tuesday, Dinh-Zarr said that a conductor “who was getting experience and familiarizing himself with the territory” was present in the locomotive cab with the engineer. NTSB spokesman Peter Knudson described that second Amtrak employee as a “conductor-in-training.”

Dinh-Zarr said it was not unusual for conductors who are learning a new train route to ride in the cab with the engineer. She said another conductor was posted in the passenger section of the train at the time.

The derailment placed Amtrak, the country’s main passenger rail service, under renewed scrutiny following a series of fatal incidents.

Rescue personnel and equipment are seen at the scene where an Amtrak passenger train derailed on a bridge over interstate highway I-5 in DuPont, Washington, U.S., December 18, 2017.

FILE PHOTO: Rescue personnel and equipment are seen at the scene where an Amtrak passenger train derailed on a bridge over interstate highway I-5 in DuPont, Washington, U.S., December 18, 2017. REUTERS/Steve Dipaola/File Photo

SEEKING TO REOPEN HIGHWAY

Meanwhile, workers lifted mangled train cars onto flatbed trucks from the wreckage site, using two towering cranes in wet, windy weather as they sought to reopen the southbound lanes of Interstate 5, a major West Coast highway stretching from the Canadian border to Mexico.

They expected to remove five of the cars and the locomotive by Tuesday afternoon and take them to a nearby U.S. military base for further examination, officials said.

The locomotive alone weighs more than 270,000 pounds (120 tonnes) and will require an extra-large truck to move, Dan Hall, the regional commander for the Washington State Patrol, said at a news conference.

The southbound stretch of Interstate 5 will remain closed for several days, the Washington State Department of Transportation said.

At least two of the three people who died in the derailment were transit enthusiasts who wanted to see the maiden run of a new route for the train line, said Abe Zumwalt, director of policy research for the Rail Passengers Association.

Jim Hamre and Zack Willhoite were members of the association, the Washington, D.C.-based organization said in a statement identifying the two men as victims of the wreck. Willhoite worked for a local transportation agency, Pierce Transit, as a customer service support specialist.

“They were best friends and they took all kinds of trips together, and given that yesterday was an inaugural run on a service that both had advocated for tirelessly, it made sense that they were on board,” Zumwalt said in a phone interview.

(Additional reporting by Jonathan Allen in New York and Alex Dobuzinskis in Los Angeles. Writing by Jonathan Allen and Steve Gorman; Editing by Jonathan Oatis and Cynthia Osterman)

Ukraine, allies fear escalation after Russia exits ceasefire group

A member of the Ukrainian armed forces patrols area in the government-held village of Travneve, Ukraine, November 23, 2017. Picture taken November 23, 2017. REUTERS/Oleksandr Klymenko

By Alessandra Prentice

KIEV (Reuters) – Ukrainian officials, security monitors and Kiev’s foreign backers warned on Wednesday that Moscow’s decision to withdraw from a Ukrainian-Russian ceasefire control group could worsen the fighting in eastern Ukraine.

On Monday, the Russian foreign ministry said it was recalling officers serving at the Joint Centre for Control and Coordination (JCCC) in Ukraine, accusing the Ukrainian side of obstructing their work and limiting access to the front line.

Ukrainian Defence Minister Stepan Poltorak and security chief Olekshandr Turchynov said the decision, coupled with a recent surge in fighting in the eastern Donbass region, suggested Russia had switched to a more offensive strategy.

“We cannot rule out that they withdrew their officers in order to start stepping up not only military provocations but also military operations,” Turchynov said. “We will strengthen our positions at the front.”

“The Ukrainian armed forces are currently prepared for a change in the situation,” Poltorak told journalists.

A Russia-backed separatist insurgency erupted in 2014 and the bloodshed has continued despite a ceasefire that was meant to end the conflict. More than 10,000 people have been killed, with casualties reported on a near-daily basis.

A spokesman for the Organisation for Security and Co-operation in Europe, which works with the JCCC to monitor the much-violated Minsk peace agreement, said:

“We are concerned about any step that might lead to a further deterioration of the security situation in the region, affecting both the SMM (OSCE special monitoring mission) and the civilian population.”

Fighting between Ukrainian troops and separatists has climbed to the worst level in months, the OSCE said this week, after the shelling of a frontline village wounded civilians and destroyed or damaged dozens of homes.

Russia denies accusations from Ukraine and NATO it supports the rebels with troops and weapons, but the U.S. envoy to peace talks, Kurt Volker, said Moscow was answerable for the violence.

“Russia withdrew its officers from JCCC – a ceasefire implementation tool – right before a massive escalation in ceasefire violations. Ukraine just suffered some of the worst fighting since February, 2017. Decision for peace lies with Russia,” Volker tweeted on Tuesday.

Germany and France, which have spearheaded international efforts to resolve the conflict, expressed concern. A Germany foreign ministry spokesman said “it could have severe consequences for civilians in the conflict zones.”

“We call on the Russian authorities to reconsider this decision and hope that the Ukrainian authorities will guarantee access to Ukrainian territory to Russian representatives of the joint center (JCCC),” said Alexandre Giorgini, deputy spokesman for the French foreign ministry.

Created in 2014, the JCCC is made up of Ukrainian and Russian officers, who are meant to work together to ensure the safety of OSCE monitors and help implement the Minsk ceasefire.

(Reporting by Alessandra Prentice, Pavel Polityuk, Natalia Zinets in Kiev, additional reporting by Francois Murphy in Vienna, Michael Nienaber in Berlin and John Irish in Paris, editing by Matthias Williams, Larry King)

Student tax breaks survive the tax bill, make the most of them

Graduates celebrate receiving a Masters in Business Administration from Columbia University during the year's commencement ceremony in New York in this May 18, 2005 file photo. dreams of many college seniors. REUTERS/Chip East/Files

By Gail MarksJarvis

CHICAGO (Reuters) – If you are going to college, getting extra training for a job, or paying off student loans, there are myriad tax breaks worth thousands of dollars to people burdened by college costs.

Although many were threatened in early versions of the tax bills crafted by the Senate and House and Representatives, students can breathe a sigh of relief that the benefits all remain. Tax experts suggest using these strategies before the end of December to get every penny possible:

* Student loan interest deduction

About 12.4 million borrowers make use of this deduction. You can deduct up to $2,500 in interest per year, which can result in tax savings that for some top $600.

The deduction depends on how much you have paid in a single tax year toward your student loans and also depends on your income.

If your loan payments made so far for 2017 do not qualify for the $2,500 maximum deduction and you are still paying off student loans, consider paying more before the end of the year to boost the deduction, said Mark Kantrowitz, publisher of www.Cappex.com. You can find out how much interest you have paid so far this year from the student loan servicer that collects your monthly payments.

To take the full $2,500 deduction, an individual cannot have a modified adjusted gross income over $65,000, and for couples $135,000. For individuals with incomes up to $80,000 and for married couples earning up to $165,000, smaller deductions apply.

Paying extra by Dec. 31 would be particularly wise if your income next year is likely to put you over the income cutoff, said Gil Charney, director of tax and policy analysis for The Tax Institute at H&R Block.

* College credits

Both the American Opportunity Credit and Lifetime Learning Credit provide tax breaks to help pay for education, but apply to different stages.

For undergrads, the American Opportunity Credit is worth up to $2,500 per year, but can be used only for the first four years of college. Students must attend at least half-time.

If you have not paid enough tuition and fees to qualify for the full credit this year and have been billed for the first quarter or semester in 2018, consider paying the bill now to maximize the 2017 credit, Charney said. The credit covers 100 percent of the first $2,000 in tuition and fees paid in a year; then 25 percent of the next $2,000.

Remember, there are income limits. You can’t get the full credit with modified adjusted gross income over $80,000; $160,000 for couples.

If your income will exceed the limit in 2018 but qualifies in 2017, this would be the year to capture as much as possible.

The same strategy applies to the Lifetime Learning Credit, which is valuable to part-time students, graduate students or workers trying to enhance job opportunities with an extra course or training.

The Lifetime Learning Credit is worth $2,000, or 20 percent of the first $10,000 spent in a year. So consider paying ahead for 2018 education, especially if you are near an income cutoff: over $56,000 in modified adjusted gross income for individuals, or $112,000 for couples for the maximum credit.

Keep in mind that if two spouses are going to school they cannot both claim the $2,000; it is a maximum per household. The American Opportunity Credit is kinder because it applies per student. Parents with three children in college at the same time could claim the credit for each child and do it annually for the four years a child is in an undergraduate program.

For more details, see IRS Publication 970

The opinions expressed here are those of the author, a columnist for Reuters.

(Editing by Beth Pinsker and Leslie Adler)

Turkish PM calls Rohingya killings in Myanmar ‘genocide’

Rohingya refugee children play at the Shamlapur refugee camp near Cox's Bazar, Bangladesh December 20, 2017. REUTERS/Marko Djurica

COX’S BAZAR, Bangladesh (Reuters) – Turkey’s prime minister on Wednesday dubbed the killing of minority Muslim Rohingyas in Myanmar by its security forces “genocide” and urged the international community to ensure their safety back home.

Binali Yildirim met several Rohingyas in two refugee camps in Cox’s Bazar in neighboring Bangladesh.

Almost 870,000 Rohingya fled there, about 660,000 of whom arrived after Aug. 25, when Rohingya militants attacked security posts and the Myanmar army launched a counter-offensive.

“The Myanmar military has been trying to uproot Rohingya Muslim community from their homeland and for that they persecuted them, set fire to their homes, villages, raped and abused women and killed them,” Yildirim told reporters from Cox’s Bazar, before flying back to Turkey.

“It’s one kind of a genocide,” he said.

“The international community should also work together to ensure their safe and dignified return to their homeland,” Yildirim, who was accompanied by Bangladesh’s Foreign Minister Abul Hassan Mahmood Ali, said.

Surveys of Rohingya refugees in Bangladesh by aid agency Medecins Sans Frontieres have shown at least 6,700 Rohingya were killed in Rakhine state in the month after violence flared up on Aug. 25, MSF said last week.

The U.N. High Commissioner for Human Rights Zeid Ra’ad al-Hussein has called the violence “a textbook example of ethnic cleansing” and said he would not be surprised if a court eventually ruled that genocide had taken place.

Yildirim inaugurated a medical camp at Balukhali, sponsored by Turkey, and handed over two ambulances to Cox’s Bazar district administration. He also distributed food to Rohingya refugees at Kutupalong makeshift camp.

He urged the international community to enhance support for Rohingyas in Bangladesh and help find a political solution to this humanitarian crisis.

U.N. investigators have heard Rohingya testimony of a “consistent, methodical pattern of killings, torture, rape and arson”.

The United Nations defines genocide as acts meant to destroy a national, ethnic, racial or religious group in whole or in part. Such a designation is rare under international law, but has been used in contexts including Bosnia, Sudan and an Islamic State campaign against the Yazidi communities in Iraq and Syria.

Nobel peace laureate Aung San Suu Kyi’s less than two-year old civilian government has faced heavy international criticism for its response to the crisis, though it has no control over the generals it has to share power with under Myanmar’s transition after decades of military rule.

Yildirim’s trip follows Turkish first lady Emine Erdogan’s visit in September to the Rohingya camp, when she said the crack down in Myanmar’s Rakhine state was “tantamount to genocide” and a solution to the Rohingya crisis lies in Myanmar alone.

(Reporting by Mohammad Nurul Islam; Editing by Malini Menon and Richard Balmforth)

Philippine leader declares unilateral ceasefire for Christmas

FILE PHOTO: Philippine National Police chief General Ronald Dela Rosa whispers to President Rodrigo Duterte during the announcement of the disbandment of police operations against illegal drugs at the Malacanang palace in Manila, Philippines

MANILA (Reuters) – Philippine President Rodrigo Duterte has declared a 10-day unilateral ceasefire with communist rebels to allow Filipinos to celebrate a “stress-free” Christmas season, two weeks after peace talks with the insurgents were formally scrapped.

Presidential spokesman Harry Roque said Duterte had ordered the army and police to suspend offensive operations from Dec. 24 to Jan. 2 “to lessen the apprehension of the public this Christmas season”.

He said he expected the Maoists and their political leaders to “do a similar gesture of goodwill.”

There was no immediate comment from the communist rebel movement, whose top leaders and negotiators have been living in exile in The Netherlands since the late 1980s.

Duterte restarted a stalled peace process and freed several communist leaders as a gesture of good faith when he came to office last year but he recently abandoned talks due to escalating rebel attacks.

He has vented his fury on a near-daily basis at what he considers duplicity by the Communist Party of the Philippines (CPP) and its armed wing, the New People’s Army (NPA). He has collectively declared them a “terrorist organization” and has ended the three-decades peace process.

The rebel forces, estimated to number around 3,000, have been waging a protracted guerrilla warfare in the countryside for nearly 50 years in a conflict that has killed more than 40,000 people and stifled growth in resource-rich areas of the Philippines.

The guerrillas have been targeting mines, plantations, construction and telecommunication companies, demanding “revolutionary taxation” to finance arms purchases and recruitment activities.

Duterte on Tuesday night said he only wanted Filipinos to celebrate a “stress-free” Christmas.

“I do not want to add more strain to what people are now suffering,” he told reporters.

(Reporting by Manuel Mogato; Editing by Martin Petty and Michael Perry)

South Korea says delay in military drills aimed only at ensuring peaceful Olympics

South Korean and U.S. Marines take part in a winter military drill in Pyeongchang, South Korea, December 19, 2017. REUTERS/Kim Hong-Ji

By Josh Smith

SEOUL (Reuters) – South Korean officials said on Wednesday a proposed delay in military drills with the United States was aimed at ensuring a peaceful 2018 Winter Olympics, not ending the North Korean missile crisis, as relations with China suffered new setbacks.

South Korean President Moon Jae-in is seeking to soothe relations with North Korea, which is pursuing nuclear and missile programmes in defiance of U.N. sanctions, and with China, the North’s lone major ally, before the Games begin in South Korea in February.

China, which hosted years of on-again-off-again six-party talks to try to end the North Korea standoff, resumed some blocks on group tours to South Korea, industry sources said, and rebuked Seoul for firing warning shots at Chinese fishing boats

On Tuesday, Moon, who visited China last week, said he had proposed postponing major military drills with the United States until after the Games, a move his office said was designed to reassure athletes and spectators.

“This is confined to our efforts to host a peaceful Olympics,” an official from the presidential Blue House said. “We are only talking about the exercises which are supposed to take place during the Olympics and Paralympics.”

North Korea sees the regular joint exercises as preparation for war, while China is still angry about the deployment of a U.S. anti-missile system, commonly known as THAAD, by South Korea, whose powerful radar it fears could see deep inside its territory.

The South argues it needs THAAD to guard against the threat posed by North Korea, which regularly threatens to destroy South Korea, Japan and the United States.

For a graphic on North Korea’s missile launches, click http://tmsnrt.rs/2j2S5T3

The proposed delay in drills was discussed during a summit last week between Moon and Chinese President Xi Jinping, after the proposal had already been submitted to the Americans, the Blue House official said.

China and Russia have proposed a “freeze for freeze” arrangement under which North Korea would stop its nuclear and missile tests in exchange for a halt to the exercises. However, the official denied the proposed delay had anything to do with the freeze idea.

U.S. Secretary of State Rex Tillerson said in Ottawa on Tuesday he was unaware of any plans to “alter longstanding and scheduled and regular military exercises”.

North Korea has stepped up its missile and nuclear tests at an unprecedented rate this year, and any new provocation from the North would “inevitably have an impact” on the exercises, the Blue House official said.

“It is a display of the president’s strong message that North Korea must not conduct any provocation (during the Olympics),” the official told reporters.

South Korean and U.S. Marines take part in a winter military drill in Pyeongchang, South Korea, December 19, 2017. REUTERS/Kim Hong-Ji

South Korean and U.S. Marines take part in a winter military drill in Pyeongchang, South Korea, December 19, 2017. REUTERS/Kim Hong-Ji

“BIOLOGICAL EXPERIMENTS”

Japan’s Asahi newspaper reported on Wednesday, citing an unidentified person connected to South Korean intelligence, that North Korea was conducting biological experiments to test the possibility of loading anthrax-laden warheads on its intercontinental ballistic missiles.

The Asahi report said the U.S. government was aware of the tests, which were meant to ascertain whether the anthrax bacteria could survive the high temperatures that occur during warheads’ re-entry from space.

Reuters was unable to verify the report independently.

In a statement released by state media, North Korea’s Ministry of Foreign Affairs called reports it was developing biological weapons “nonsense” designed to provoke nuclear war.

The United States has given China a draft resolution for tougher U.N. sanctions on North Korea and is hoping for a quick vote on it by the U.N. Security Council, a Western diplomat said on Tuesday, however Beijing has yet to sign on.

When asked about the U.S. resolution at a press briefing on Wednesday, Chinese Foreign Ministry spokeswoman Hua Chunying would only say that China always takes a responsible and constructive attitude towards Security Council talks on North Korea.

The United States has also called on the Security Council to blacklist 10 ships for circumventing sanctions on North Korea. Hua said China had received the proposal from the United States.

WARNING SHOTS

China has resumed at least some restrictions on group tours into the South, South Korea’s inbound travel agency said. The restrictions were first in place last year as part of China’s retaliation over THAAD deployment.

“I was told from my boss this morning that our Chinese partners (based in Beijing and Shandong) said they won’t send group tourists to South Korea as of January,” the official from Naeil Tour Agency told Reuters by phone.

One source in China said the reason for reinstating the ban was to rein in overly aggressive tour operators who had been rolling out package deals to South Korea too quickly in the eyes of authorities.

Foreign ministry spokeswoman Hua told reporters she had not heard of a tourism ban, but she reiterated that Moon’s visit to Beijing was successful and that China has an open attitude towards exchanges and cooperation in all areas.

Beijing has never officially confirmed restrictions on tourism.

Three representatives at Beijing travel agencies told Reuters that they were not currently organising group tours to South Korea. One confirmed that the tourism administration had issued the notice, while a third said: “At the moment we have no group trips to South Korea.”

A travel agency in the northern province of Shandong also said it could not organise group trips. Three others said they could, but with restrictions such as on the number of people.

South Korea’s coast guard said on Wednesday it had fired around 250 warning shots on Tuesday to chase away a fleet of 44 Chinese boats fortified with iron bars and steel mesh that were fishing illegally in South Korean waters.

“The Chinese fishing boats sought to swarm around and collide with our patrol ship, ignoring the broadcast warnings,” the coast guard said in a statement.

China, which has in the past lodged diplomatic protests to South Korea over the use of force by its coast guard, expressed “serious concern” about the latest clash.

(For a graphic on rocket science, click http://tmsnrt.rs/2t6WEPL)

(Reporting by Dahee Kim, Hyonhee Shin, Heekyong Yang and Yuna Park in SEOUL, Tim Kelly in TOKYO, Adam Jourdan in SHANGHAI, and Pei Li, Gao Liangping and Ben Blanchard in BEIJING; Editing by Paul Tait and Nick Macfie)