U.S. to fight Islamic State in Syria ‘as long as they want to fight’: Mattis

U.S. to fight Islamic State in Syria 'as long as they want to fight': Mattis

By Phil Stewart

WASHINGTON (Reuters) – The U.S. military will fight Islamic State in Syria “as long as they want to fight,” Defense Secretary Jim Mattis said on Monday, describing a longer-term role for U.S. troops long after the insurgents lose all of the territory they control.

As U.S.-backed and Russian-backed forces battle to retake the remaining pockets of Islamic State-held terrain, Mattis said the U.S. military’s longer-term objective would be to prevent the return of an “ISIS 2.0.”

“The enemy hasn’t declared that they’re done with the area yet, so we’ll keep fighting as long as they want to fight,” Mattis said, speaking to reporters at the Pentagon about the future of U.S. operations in Syria.

He also stressed the importance of longer-term peace efforts, suggesting U.S. forces aimed to help set the conditions of a diplomatic solution in Syria, now in its seventh year of civil war.

“We’re not just going to walk away right now before the Geneva process has traction,” he added.

U.S. President Donald Trump and Russian President Vladimir Putin affirmed joint efforts to stabilize Syria as its civil war wanes, including with the expansion of a July 7 truce in the southwestern triangle bordering Israel and Jordan.

Mattis said he believed the southwestern zone was working, and spoke hopefully about additional areas in the future that might allow for more refugees to return home.

“You keep broadening them. Try to (demilitarize) one area then (demilitarize) another and just keep it going, try to do the things that will allow people to return to their homes,” he told reporters at the Pentagon.

He declined to enter into specifics about any future zones.

Russia, which has a long-term military garrison in Syria, has said it wants foreign forces to quit the country eventually.

Turkey said on Monday the United States had 13 bases in Syria and Russia had five. The U.S-backed Syrian YPG Kurdish militia has said Washington has established seven military bases in areas of northern Syria.

The U.S.-led coalition says it does not discuss the location of its forces.

One key aim for Washington is to limit Iranian influence in Syria and Iraq, which expanded during the war with Islamic State.

(Reporting by Phil Stewart; Editing by Peter Cooney)

Tillerson to press Myanmar army chief to halt violence so Rohingya can return

Tillerson to press Myanmar army chief to halt violence so Rohingya can return

By Simon Cameron-Moore and Yimou Lee

YANGON (Reuters) – U.S. Secretary of State Rex Tillerson will stress the need to halt violence and stabilize Rakhine State when he meets the head of Myanmar’s military on Wednesday in a bid to ease the Rohingya refugee crisis, a senior State Department official said.

More than 600,000 Rohingya Muslims have fled to Bangladesh since late August, driven out by a counter-insurgency clearance operation of Myanmar forces in Rakhine. A top U.N. official has called the operation a textbook case of “ethnic cleansing”.

Attending an East Asia summit in Manila on Tuesday, Tillerson met Myanmar leader Aung San Suu Kyi, whose less than two-year-old civilian administration shares power with the military and has no control over its generals.

He will meet Suu Kyi again in the Myanmar capital of Naypyitaw on Wednesday, and hold separate talks with the head of the armed forces, Senior General Min Aung Hlaing.

Asked what approach Tillerson would take with Myanmar’s army chief, the State Department official told journalists in a briefing by teleconference that the emphasis would be on restoring peace in Rakhine.

“We are focusing on trying to stabilize areas in northern Rakhine so that people can return there, stopping the violence, making sure that the military would protect all populations in that area equally and that they conduct a credible investigation that leads to accountability for people who have perpetrated abuses,” said the official, who was with Tillerson in Manila and declined to be identified.

The official said the consequences for the country, also known as Burma, if it failed to respond to the crisis with accountability could be part of the conversation with the military leader.

“Burma made a lot of progress and we would not want to see that progress reversed,” the official added.

U.S. senators in Washington are pressing for economic sanctions and travel restrictions targeting the Myanmar military and its business interests.

“The secretary will reiterate support for Burma’s democratic transition and urge the Burmese government to protect the local population and allow unhindered humanitarian and media access, (and) support for a credible investigation of abuses,” the official added.

Accusations of organized mass rape and other crimes against humanity were leveled at the Myanmar military on Sunday by another senior U.N. official who had toured camps in Bangladesh where Rohingya refugees have taken shelter.

Mass Exodus: http://tmsnrt.rs/2xTAOon

‘WHITEWASH’

Pramila Patten, special representative of the U.N. secretary-general on sexual violence in conflict, said she would raise accusations against the Myanmar military with the International Criminal Court in the Hague.

The military, known as the Tatmadaw, has consistently protested its innocence, and on Monday it posted the findings of an internal investigation on the Facebook page of Min Aung Hlaing.

It said it had found no instances where its soldiers had shot and killed Rohingya villagers, raped women or tortured prisoners. It denied that security forces had torched Rohingya villages or used “excessive force”.

The military said that, while 376 “terrorists” were killed, there were no deaths of innocent people.

Human rights groups poured scorn on the military’s investigation, branding it a “whitewash” and calling for U.N. and independent investigators to be allowed into Myanmar.

“The Burmese military’s absurd effort to absolve itself of mass atrocities underscores why an independent international investigation is needed to establish the facts and identify those responsible,” Brad Adams, Asia director at Human Rights Watch, said in a statement.

Amnesty International also dismissed the military’s internal investigation. “There is overwhelming evidence that the military has murdered and raped Rohingya and burned their villages to the ground,” the London-based rights group said.

The government in mostly Buddhist Myanmar regards the Muslim Rohingya as illegal immigrants from Bangladesh.

And Suu Kyi’s failure to speak out strongly over their plight has widely damaged the Nobel Peace Prize winner’s international reputation as a stateswoman.

Many diplomats, however, believe Myanmar’s fragile transition to democracy after 49 years of military rule would be jeopardized if she publicly criticized the armed forces.

“Both parts of the government will have to work together in order to solve this problem…Trying to get two of them to work together, to try to solve the problem, is certainly going to be very important,” the U.S. official said.

The U.S. official said Suu Kyi had been forthcoming in her talks with Tillerson and others during the past few days about the steps that needed to be taken to improve the situation, including plans for the voluntary repatriation of Rohingya.

U.N. Secretary-General Antonio Guterres, Canadian Prime Minister Justin Trudeau were among those she met in Manila to discuss the Rohingya crisis.

“This is a tremendous concern to Canada and to many, many countries around the world,” Trudeau told a news conference.

Japan’s Prime Minister Shinzo Abe pledged up to 117 billion yen ($1 billion) of development aid to Myanmar in his meeting with Suu Kyi.

While world leaders wrung their hands, thousands of Rohingya remained stranded in Myanmar, on beaches around the mouth of the Naf river, hoping to find a boat to make the short, sometimes perilous crossing to Bangladesh.

“They’re still coming, risking their lives, driven by fears of starvation and violence,” Shariful Azam, a police official in Bangladesh’s Cox’s Bazar, a narrow spit of land where the world’s most urgent humanitarian crisis is unfolding.

Trail of destruction: http://tmsnrt.rs/2fDBxTc

A desperate escape: http://tmsnrt.rs/2A1ATUP

(Additional reporting Wa Lone in YANGON, Ruma Paul in DHAKA, Steve Holland, Karen Lema and Manny Mogato in MANILA, David Brunnstrom in WASHINGTON; Editing by Robert Birsel/Mark Heinrich)

Appeals court lets Trump travel ban go partially into effect

Appeals court lets Trump travel ban go partially into effect

By Lawrence Hurley

WASHINGTON (Reuters) – A U.S. appeals court in California on Monday let President Donald Trump’s latest travel ban go partially into effect, ruling the government can bar entry of people from six Muslim-majority countries with no connections to the United States.

A three-judge panel of the San Francisco-based 9th U.S. Circuit Court of Appeals partially granted a Trump administration request to block at least temporarily a judge’s ruling that had put the new ban on hold. Trump’s ban was announced on Sept. 24 and replaced two previous versions that had been impeded by federal courts.

The action means the ban will apply to people from Iran, Libya, Syria, Yemen, Somalia and Chad who do not have connections to the United States.

Those connections are defined as family relationships and “formal, documented” relationships with U.S.-based entities such as universities and resettlement agencies. Those with family relationships that would allow entry include grandparents, grandchildren, brothers-in-law, sisters-in-law, aunts, uncles, nieces, nephews and cousins of people in the United States.

“We are reviewing the court’s order and the government will begin enforcing the travel proclamation consistent with the partial stay. We believe that the proclamation should be allowed to take effect in its entirety,” Justice Department spokeswoman Lauren Ehrsam said.

The state of Hawaii, which sued to block the restrictions, argued that federal immigration law did not give Trump the authority to impose them on six of those countries. The lawsuit did not challenge restrictions toward people from the two other countries listed in Trump’s ban, North Korea and Venezuela.

U.S. District Judge Derrick Watson in Honolulu ruled last month that Hawaii was likely to succeed with its argument.

Hawaii Attorney General Douglas Chin said the court’s decision tracked what the Supreme Court said in June when it partially revived Trump’s second travel ban, which has now expired.

“I’m pleased that family ties to the U.S., including grandparents, will be respected,” Chin added.

Separately on Monday, a group of refugee organizations and individuals filed a lawsuit in Seattle federal court challenging Trump’s decision to suspend entry of refugees from 11 countries, nine of which are majority Muslim, for at least 90 days.

Trump issued his first travel ban targeting several Muslim-majority countries in January, just a week after he took office, and then issued a revised one after the first was blocked by the courts. The second one expired in September after a long court fight and was replaced with another revised version.

Trump has said the travel ban is needed to protect the United States from terrorism by Muslim militants. As a candidate, Trump had promised “a total and complete shutdown of Muslims entering the United States.”

Critics of the travel ban in its various iterations call it a “Muslim ban” that violates the U.S. Constitution by discriminating on the basis of religion.

The 9th Circuit is due to hear oral arguments in the case on Dec. 6. In a parallel case from Maryland, a judge also ruled against the Trump administration and partially blocked the ban from going into effect.

An appeal in the Maryland case is being heard on Dec. 8 by the 4th U.S. Circuit Court of Appeals in Richmond, Virginia. The Maryland case was brought by the American Civil Liberties Union, which represents several advocacy groups, including the International Refugee Assistance Project.

(Reporting by Lawrence Hurley in Washington; Additional reporting by Dan Levine in San Francisco; Editing by Will Dunham and Tom Brown)

Russia, China, others boycott U.S. meeting at U.N. on Venezuela

Russia, China, others boycott U.S. meeting at U.N. on Venezuela

By Michelle Nichols

UNITED NATIONS (Reuters) – Russia, China, Egypt and Bolivia boycotted an informal public United Nations Security Council meeting on Venezuela on Monday organized by the United States, saying the 15-member body should not be involved in the situation.

“The issue is about meddling with the internal domestic affairs of Venezuela,” Russian U.N. Ambassador Vassily Nebenzia told reporters, adding that he hoped the country could settle its issues peacefully without any external interference.

U.S. Ambassador to the United Nations Nikki Haley told the meeting: “The fact that the (Venezuelan) government would go so far as to try and get people not to show up to a meeting is guilt. And that’s unfortunate.”

Venezuela is suffering from a harsh economic crisis and President Nicolas Maduro’s government has clamped down on the opposition, jailing or otherwise barring from office many dissenting leaders and activists.

Dozens of people have died in violence since the opposition began a sustained wave of protests in April. Met by rubber bullets, water cannon and tear gas fired by the National Guard, the protesters say the crisis demands an early presidential election that they are sure Maduro would lose.

His popularity has been pounded lower by triple-digit inflation and acute food and medicine shortages.

“We received pressure from regional partners not to have this meeting,” Haley said. “This goal is not to degrade anyone. This is not to humiliate a region. This is only to lift up the region.”

Uruguay’s Deputy U.N. Ambassador Luis Bermudez attended the U.N. meeting, but said his country did not believe the situation in Venezuela was a threat to international peace and security.

Venezuela’s U.N. Ambassador Rafael Dario Ramirez spoke to reporters as the meeting was being held, flanked by Nebenzia, Chinese Deputy U.N. Ambassador Wu Haitao and Bolivian U.N. Ambassador Sacha Sergio Llorentty Soliz.

“The meeting is a hostile and clearly interfering act of the United States that undermines the principle of sovereignty of a member state of the U.N.,” Ramirez said. “We condemn this act of political manipulation.”

European Union foreign ministers approved economic sanctions, including an arms embargo, on Venezuela on Monday, saying regional elections last month marred by reported irregularities had deepened the country’s crisis.

The United States has also imposed targeted sanctions on top Venezuelan officials.

The U.N. Security Council also met behind closed doors in May, at Washington’s request, to discuss the crisis in Venezuela.

(Reporting by Michelle Nichols; Editing by James Dalgleish)

Defecting North Korean soldier critical after escape in hail of bullets

Defecting North Korean soldier critical after escape in hail of bullets

By Christine Kim

SEOUL (Reuters) – A North Korean soldier is expected to survive critical wounds he received when his old comrades fired a hail of bullets at him as he made a defection dash to South Korea, the South’s government and military said on Tuesday.

The soldier had on Monday sped toward the border in a “peace village” in the heavily guarded demilitarized zone, in a four-wheel drive vehicle.

But when a wheel came loose, he fled on foot as four North Korean soldiers fired about 40 rounds at him, said Suh Wook, chief director of operations at South Korea’s Joint Chiefs of Staff, briefing lawmakers.

“Until this morning, we heard he had no consciousness and was unable to breathe on his own but his life can be saved,” Suh said.

Surgeons had removed five bullets from the soldier’s body, leaving two inside, Suh added, to murmurs from lawmakers who said the soldier’s escape was “right out of a movie”.

The soldier took cover behind a South Korean structure in a Joint Security Area (JSA) inside the demilitarized zone between the two Koreas.

South Korean and U.S. soldiers, fearing more North Korean fire, later crawled to him to rescue him, the United Nations Command said in a separate statement.

North Korea has not said anything about the soldier. Its military had not given any indication of unusual movements on Tuesday, the South’s military said.

While on average more than 1,000 North Koreans defect to the South every year, most travel via China and it is unusual for a North Korean to cross the land border dividing the two Koreas, which have been in a technical state of war since their 1950-53 conflict ended in a truce, not a peace treaty.

The U.N. Command, in place since the end of the war, said an investigation into the incident was being conducted.

South Korean Defence Minister Song Young-moo said it was the first time North Korean soldiers had fired toward the South’s side of the JSA, prompting complaints from some lawmakers that the South’s military should have returned fire.

Moon Sang-gyun, the South’s defense ministry spokesman, said military operations at the JSA were usually conducted under the orders of the U.N. Command, which is in turn under orders from the U.S. military.

INTESTINAL DAMAGE

The soldier, who was not armed, was flown in a U.N. Command helicopter to an operating theater where doctors began working to save him even before he was out of a uniform that indicated he held a lower rank, Suh said.

South Korean officials have yet to identify where the soldier came from or what his intentions were.

Lee Cook-jong, the surgeon in charge of the soldier’s care at the Ajou University Hospital, told reporters he was suffering from critical intestinal damage.

Hospital officials where under strict security agency orders not to talk to media and all updates on the soldier had to be through the military, workers there told Reuters.

Dr Lee had been “given a talking-to” after a brief exchange with the media, the hospital workers said.

The U.N. military armistice commission said it had informed the North Korean military that the soldier, who was found about 50 meters (150 feet) south of a Military Demarcation Line, was undergoing surgery for his wounds.

Suh said the South had also informed the North on Monday of the soldier and his treatment, via loudspeakers on the border.

North Korea has in the past complained that North Korean defectors had been abducted by South Korea, and it has demanded their release.

This month, the North demanded that South Korea return 12 waitresses it said had been kidnapped while working in China in 2016. South Korea said the 12 women, and one man, had chosen to defect to the South.

Monday was the first time since 2007 a North Korean soldier had defected across the JSA.

(Reporting by Christine Kim; Additional reporting by Cynthia Kim, Yuna Park and Heekyong Yang; Editing by Michael Perry and Robert Birsel)

U.S. would welcome new EU sanctions on Iran: official

U.S. would welcome new EU sanctions on Iran: official

By Gabriela Baczynska

BRUSSELS (Reuters) – Any move by the European Union to impose new sanctions on Iran over its ballistic missile program and alleged involvement in Middle East conflicts would be “interesting and helpful”, a U.S. administration official said on Tuesday.

U.S. President Donald Trump, who has taken a more hawkish line on Iran than predecessor Barack Obama, has said Tehran’s missile program should be curbed and wants to punish Tehran over its role in Yemen and Syria.

Trump has also dealt a blow to an international 2015 deal on Iran’s nuclear program by disavowing Iran’s compliance with its terms. The U.S. Congress now has until mid-December to decide whether to reimpose economic sanctions on Iran that had been lifted in exchange for it limiting its nuclear activity.

But the EU, which normally coordinates closely with Washington on international sanctions, has been lobbying hard to preserve the nuclear accord, saying it should be kept separate from missile and regional security matters.

Last week, French President Emmanuel Macron mooted the possibility of fresh sanctions, saying he was “very concerned” about Iran’s missile program following the firing of a missile from Yemen into Saudi Arabia.

“It would certainly be a very interesting and probably helpful move on the part of the EU,” the U.S. administration official told reporters in Brussels when asked if Washington wanted the EU to pursue fresh restrictions on Iran.

The missile fired into Saudi Arabia from Yemen on Nov. 4 was intercepted near Riyadh airport and there were no casualties. Saudi Arabia, which intervened against Iran-backed Houthi rebels in Yemen’s war in 2015, accuses the Islamic Republic of supplying missiles and other weaponry to the Houthis.

Tehran denies this and it also rejected Macron’s remarks, saying its missile program was solely defensive and not linked to the nuclear pact, which European powers, Russia and China – the other parties to the 2015 deal – say is vital to containing Middle East tensions.

EU WARY OF NEW SANCTIONS ON IRAN

And there is no consensus in the EU, where imposing any sanctions requires the unanimity of all 28 member states, on any new punitive measures, a fact made clear by the bloc’s top diplomat after chairing foreign minister talks on Monday.

“We didn’t discuss, not today, not last week (and) I don’t foresee any discussion also in the future, further sanctions from the EU side on Iran,” EU foreign policy chief Federica Mogherini told reporters when asked about Macron’s comments.

“Ballistic missiles are not in the scope of the (nuclear deal),” she said. “This is a discussion and a proposal that was never raised at our table in these recent months and I don’t foresee this happening in the near future.”

Iran and Saudi Arabia are locked in a struggle for Middle East predominance. Their rivalry flared again earlier this month with the resignation of Saudi-backed Lebanese Prime Minister Saad al-Hariri, who blamed an alleged assassination plot against him and accused Tehran and its heavily armed Lebanese ally Hezbollah of sowing conflict in the Arab world.

The U.S. administration official declined to say what the Congress might do in the wake of Trump’s action but said any new U.S. sanctions would be targeted narrowly at people and entities involved directly in the areas of concern.

“We should expect to see a continued use of the U.S. sanctions tool in the areas such as proliferation of weapons of mass destruction, support for terrorist organizations and the deterioration of human rights inside Iran.”

The U.S. official also said the West should keep up pressure on Russia as long as it does not reverse its 2015 annexation of Crimea from Ukraine or implement its side of a peace deal for Ukraine’s east, gripped by a Moscow-backed insurgency.

The EU’s own economic sanctions on Moscow, which restrict business with the Russian energy, defense and financial sectors, are currently in place until the end of January 2018.

(Reporting by Gabriela Baczynska; Editing by Mark Heinrich)

New Jersey man sentenced for role in Russian uranium bribe scheme

WASHINGTON (Reuters) – A New Jersey man was sentenced on Monday to a year and a day in prison for conspiracy to commit money laundering in connection with his role in arranging bribes for the awarding of contracts with Russia’s state-owned nuclear energy corporation, the U.S. Justice Department said.

Boris Rubizhevsky, 67, of Closter, New Jersey, was sentenced to prison along with three years of supervised release and a $26,500 fine by U.S. District Judge Theodore Chuang for the District of Maryland, the department said in a statement.

Rubizhevsky pleaded guilty to the money-laundering conspiracy charge in June 2015. He was accused of acting as an intermediary in connection with bribes to co-conspirator Vadim Mikerin, a former nuclear official of Russia’s state-run enterprise Rosatom, the statement said.

Mikerin, former president of a U.S.-based Rosatom subsidiary, pleaded guilty in 2015 to helping orchestrate more than $2 million in bribe payments through secret accounts in Cyprus, Latvia and Switzerland.

Between October 2011 and February 2013, Rubizhevsky and Mikerin agreed to conceal bribes paid from the United States to overseas bank accounts, including a payment to an account in Latvia, the statement said.

Mikerin was sentenced in December 2015 to 48 months in prison for his role in the money-laundering scheme.

Authorities have said those payments went to Russian nuclear energy officials in exchange for contracts to U.S. companies involved in the shipment of uranium from Russia. Attorneys for Rosatom have said Mikerin acted alone.

Mikerin oversaw the shipment of uranium from Russia for use in American power plants. Much of that material was drawn from decommissioned Russian weapons under an agreement with Washington known as the “Megatons to Megawatts” program, which converted the uranium from thousands of nuclear warheads for civilian use in U.S. nuclear power plants.

At one point, the arrangement fueled 10 percent of U.S. electricity, according to the U.S. Department of Energy.

Daren Condrey, the former owner of Transport Logistics International, pleaded guilty in 2015 to conspiring to make bribe payments to Mikerin in exchange for uranium shipping contracts. The Foreign Corrupt Practices Act makes it a crime to bribe overseas officials to win business.

Mikerin’s arrest followed a seven-year investigation that began as a U.S. intelligence probe into Russian nuclear officials, according to court records and people familiar with the matter.

(Reporting by Eric Walsh; Additional reporting by Joel Schectman; Editing by Peter Cooney and Lisa Shumaker)

Erdogan swipes at Russia, U.S. missions in Syria

Erdogan swipes at Russia, U.S. missions in Syria

ANKARA/SOCHI (Reuters) – Turkish President Tayyip Erdogan took swipes at U.S. and Russian interventions in Syria on Monday and said if countries truly believed a military solution was impossible, they should withdraw their troops.

Russian President Vladimir Putin and his U.S. counterpart Donald Trump said in a joint statement on Saturday they would continue to fight against Islamic State in Syria, while agreeing that there was no military solution to the country’s wider, six-year-old conflict.

“I am having trouble understanding these comments,” Erdogan told reporters before flying to Russia for talks with Putin. “If a military solution is out of the question, then those who say this should pull their troops out.

“Then a political method should be sought in Syria, ways to head into elections should be examined… We will discuss these with Putin,” he said.

After more than four hours of talks with Putin in the southern Russian resort of Sochi, Erdogan said the two leaders had agreed to focus on a political solution to the conflict.

“We agreed that the grounds to focus on a political solution (in Syria) have been formed,” he said.

Putin said Russia would continue to work on Syria with Turkey and their efforts were yielding results: “The level of violence has definitely been reduced, favorable conditions are being created for the progression of a inter-Syrian dialogue.”

Neither leader went into more specific detail. Asked if the two discussed Erdogan’s earlier comments, Kremlin spokesman Dmitry Peskov said the talks were about more complex issues which could not be made public, according to RIA news agency.

Turkey has been annoyed by both Russian and U.S. missions in Syria. Before his trip to Russia, Erdogan said both Moscow, which backs President Bashar al-Assad, and Washington, which armed Syrian YPG Kurdish forces Ankara sees as allied to separatists fighting in southeastern Turkey, had set up bases.

“The United States said it would completely leave Iraq, but it didn’t. The world is not stupid, some realities are being told differently and practiced differently,” he said.

He said the United States had 13 bases in Syria and Russia had five. The YPG has said Washington has established seven military bases in areas of northern Syria. The U.S.-led coalition says it does not discuss the location of its forces.

Russia has been a strong supporter of Assad, whose removal Erdogan has demanded, and Moscow’s military intervention two years ago helped turn the conflict in the Syrian president’s favor.

Turkish troops have also fought in Syria to halt the advance of Kurdish YPG forces along its frontier.

“We attach great importance to the joint steps Turkey and Russia will take on (the) defense industry,” Erdogan said.

His remarks follow Turkey’s recently completed purchase of Russian S-400 surface-to-air missile systems, a defense deal that Turkey’s Western allies see as a snub to the NATO alliance.

The weapon cannot be integrated into NATO defenses.

Ankara says it is making agreements with the Franco-Italian EUROSAM consortium to develop, produce and use its own sources for air defense system.

(Reporting by Tuvan Gumrukcu and Ece Toksabay in ANKARA, Olesya Astakhova in SOCHI and Ezgi Erkoyun in Istanbul; Writing by Dominic Evans and Jack Stubbs; Editing by Ralph Boulton and Peter Graff, William Maclean)

Travelers says it is in ‘right spot’ for cyber insurance exposure

Travelers says it is in 'right spot' for cyber insurance exposure

By Suzanne Barlyn

(Reuters) – Travelers Cos Inc <TRV.N> plans to stick to its recent growth pace for sales of cyber insurance, which protects businesses against hacking and other liabilities, despite potential to boost it, as the insurer assesses risks in the segment, its head of specialty insurance said on Monday.

“We feel like we’re just in the right spot,” Thomas Kunkel, the insurer’s president of bond and specialty insurance, said during an investor meeting in Connecticut.

Travelers has increased its cyber business at a 40 percent compound annual growth rate since 2011 and could quicken the pace, Kunkel said. “It would not be hard,” he said.

But Travelers must be “respectful and prudent” about the risks involved in cyber, Kunkel said.

Insurers have said the growing sophistication of hackers alongside a still-evolving cyber insurance industry makes it difficult to quantify their potential cyber-related losses.

About three-quarters of cyber policies that Travelers writes cover up to $1 million in damages, while nearly a quarter cover between $1 million and $5 million, the company said.

“We manage our limits very closely,” Kunkel said.

Equifax Inc <EFX.N>, which compiles credit information about consumers and assigns them scores, disclosed in September that cyber criminals had breached its systems between mid-May and late July and stolen the sensitive information of 145.5 million people. The hack is among the largest ever.

Regulation will also drive demand for cyber insurance, particularly in the financial services sector, Fitch Ratings said in a report on Monday.

“As the cyber insurance market develops, competition is likely to erode profit margins,” Fitch said.

Some insurers who ultimately enter the cyber market may lack underwriting experience and take on risks that could exceed their capital, Fitch said.

Events that could trigger large claims include cyber attacks on electronic grids and transportation systems, or hacks of large data storage clouds, Fitch said.

Insurer American International Group Inc <AIG.N> said on Oct. 26 that it was reviewing all types of coverage it offers to gauge its exposure to cyber risk.

AIG will start including cyber coverage as part of its commercial casualty insurance during the first quarter of 2018, Tracie Grella, global head of cyber risk insurance, said at the time.

The move would boost rates but also make it clearer how customers are covered if they are the victim of a security breach.

Many commercial insurers offer stand-alone cyber coverage, but it is not yet a standard addition to most other policies, such as property and casualty.

(Reporting by Suzanne Barlyn in New York; Editing by Lisa Von Ahn and Matthew Lewis)

Special Report: Lead poisoning lurks in scores of New York areas

Special Report: Lead poisoning lurks in scores of New York areas

By Joshua Schneyer and M.B. Pell

NEW YORK (Reuters) – In public health circles, New York City is known for its long war on lead poisoning.

The city outlawed residential lead paint in 1960, 18 years before a national ban. A 2004 housing law targeted “elimination” of childhood lead poisoning within six years. The city offers free lead testing in housing, vows to fix hazards and bill landlords when necessary, and has seen childhood exposure rates decline year after year.

Yet inspectors didn’t visit the Brooklyn apartment where Barbara Ellis lived until after her twin daughters tested high for lead three years in a row, she said. They found peeling lead paint on doors and windows. The girls required speech and occupational therapy for their developmental delays, common among lead-exposed children.

“Their words and speech are still a little slurred,” Ellis, a subway conductor, said of daughters Kaitlyn and Chasity, now 6. Tired of feuding with their landlord, they found new lodging in Harlem.

The family’s plight is not uncommon.

Areas of high lead exposure risk remain throughout America’s largest and richest city, a Reuters exploration of blood testing data found. In the first examination of its kind, reporters obtained New York childhood blood testing data down to the census tract level – neighborhood areas with some 4,000 residents apiece. In densely populated New York, a tract often covers several square blocks.

While poisoning has nearly been eliminated in many neighborhoods, Reuters identified 69 New York City census tracts where at least 10 percent of small children screened over an 11-year period, from 2005 to 2015, had elevated lead levels.

That is twice the rate found across Flint, Michigan, during the peak of its notorious water contamination crisis in 2014 and 2015, where the Centers for Disease Control and Prevention found 5 percent of children’s tests were high.

The risk areas spanned New York neighborhoods and demographic groups. Peeling old paint is a conspicuous hazard, but reporters tracked other perils hiding in plain sight, from leaded soil and water, to dangerous toys, cosmetics and health supplements.

In 2015, 5,400 city children tested with an elevated blood lead level, 5 micrograms per deciliter or higher, New York’s most recent annual report on lead poisoning showed. More than 800 had levels at least twice that high.

Previously undisclosed data explored by Reuters offers a hyper-local look at neighborhood areas where the city has fallen short of its eradication goal.

“New York’s prevention program is renowned, so the fact it still has pockets like these shows how challenging this issue is on a national scale,” said Patrick MacRoy, a former director of Chicago’s lead poisoning prevention program.

Reuters found:

• A 2004 housing law co-sponsored by Bill de Blasio, now the mayor, targeted scofflaw landlords. But the city isn’t policing two key provisions that require landlords to find and fix hazards, sometimes waiting until children get poisoned before taking action.

• The areas where the most children tested high are in Brooklyn, including neighborhoods with historic brownstones and surging real estate values, where construction and renovation can unleash the toxin. The worst spot – with recent rates nearly triple Flint’s – was in a Hasidic Jewish area with the city’s highest concentration of small children.

• An affluent area near Riverside Park in Manhattan’s Upper West Side has had rates comparable to Flint’s.

• Reporters were able to buy dangerous leaded products in city shops, including children’s jewelry. One item, a cosmetic marketed for use around children’s eyes, tested with levels 4,700 times the U.S. safety standard. It was labeled lead-free.

• Reuters purchased other items subject to New York lead warnings through online giants Amazon and EBay, which later pulled the items from their websites.

• Soil testing in Brooklyn backyards and a park detected lead levels comparable to some sites designated under the federal Superfund toxic-cleanup program.

While exposure rates have dropped citywide – by up to 86 percent since 2005 – the number of children meeting New York’s criteria for lead poisoning, twice the CDC’s elevated threshold, barely budged between 2012 and 2015.

“Unfortunately, nationally and locally, we are beginning to see signs there is a leveling off in what was once a steep downward trend,” said Rebecca Morley, a housing expert who co-authored a recent report calling for more aggressive national lead abatement policies.

In a statement, City Hall spokeswoman Olivia Lapeyrolerie said comparisons between New York and Flint are “alarmist and inaccurate,” given the city’s sharp declines in lead poisoning and aggressive prevention efforts.

But Morley, while crediting the city’s progress, said the data show “extreme pockets of poisoning remain.”

New York is just one of hundreds of American communities struggling with poisoning. In a two-year investigation, Reuters has now documented 3,810 census tracts or zip code areas across 34 U.S. states where recent high childhood lead test rates have been double those found in Flint.

There’s no safe level of lead in a child’s blood. Exposure is linked to brain damage, lower IQ, behavioral disorders, and lifelong health impacts.

Six-year-old twins Kaitlyn and Chasity Ellis, who were exposed to lead in a Brooklyn apartment, pose with their mother Barbara Ellis (R) and grandfather Ruden Ellis in a park in Harlem - where the family now lives - in New York City, U.S. September 20, 2017. REUTERS/Joshua Schneyer

Six-year-old twins Kaitlyn and Chasity Ellis, who were exposed to lead in a Brooklyn apartment, pose with their mother Barbara Ellis (R) and grandfather Ruden Ellis in a park in Harlem – where the family now lives – in New York City, U.S. September 20, 2017. REUTERS/Joshua Schneyer

A QUESTION OF ENFORCEMENT

Seventy percent of New York’s housing stock was built in the 1950s or earlier, when lead was still common in paint. A toddler can be poisoned by swallowing a dime-sized flake of lead paint, or by ingesting paint dust.

“Housing is a main way that young kids get poisoned,” said Deborah Nagin, director of the city’s lead poisoning prevention program. “It’s very important that lead paint hazards, when we identify them, don’t sit around.”

Nagin’s health department division works closely with New York’s Housing and Preservation Department, HPD, whose 400 inspectors are trained to detect lead perils.

A 2004 housing code, Local Law 1, championed by then City Council member de Blasio, gave HPD broad authority to cite landlords for paint hazards and get them fixed quickly. Since then HPD has issued more than 230,000 lead paint violations to landlords.

But its inspectors aren’t able to visit all older housing in a city with more than 2 million tenant-occupied units. And the law’s explicit goal – elimination of poisoning – remains elusive seven years past its 2010 target date.

Among the reasons: There is little or no city enforcement of two provisions of the law, designed to make private landlords responsible for preventing poisoning.

One requires landlords to conduct annual lead paint inspections in pre-1960 housing units where small children live, fix hazards and keep records. The other requires them to “permanently seal or remove” lead paint from spots like windows and door-frames – so-called friction surfaces, where paint often breaks down – before new tenants move in.

Reporters reviewed the past 12 years of HPD violation records and found the agency hasn’t cited a single landlord for failure to conduct the annual inspections. Only one was cited for failure to remediate friction surfaces between tenants, in 2010.

“If the city’s not going to nail a few people for failing to do this, then no one is going to pay attention to these requirements,” said Matthew Chachere, a lawyer with anti-poverty group Northern Manhattan Improvement Corporation, who helped draft the 2004 law.

Mayor de Blasio declined comment.

Rafael Cestero, a former HPD commissioner under Mayor Michael Bloomberg, said the measures would be hard to enforce. “There has to be some realism in what we expect a government agency to actually do,” Cestero said. The department focuses on paint violations its own inspectors find, he said, often in response to tenant complaints.

CONEY ISLAND KIDS

In a statement, City Hall called its complaint-based enforcement system “highly effective” at reducing poisoning.

Yet it doesn’t always work, leaving some families to fend for themselves until a child gets poisoned, Reuters found.

In a 116-year-old building in Coney Island, Brooklyn, unit 2R’s grimy walls are marked with “LEAD PAINT” stamps next to two children’s beds, where inspectors recently found the toxin.

HPD records show the cramped apartment has 163 outstanding housing code violations.

During a reporter’s recent visit, the power was out and the building’s common areas were scattered with rodent droppings. In an apartment, a gas kitchen oven was jerry-rigged to provide heat.

Back in 2015, when Natalia Rollins moved here from a homeless shelter, the mother of two felt lucky. A city-sponsored voucher program, CITYFEPS, helped place her in a $1,515-a-month apartment and covered much of the rent.

Rollins, 25, soon grew scared for her baby boys. There was peeling old paint, a ceiling cave-in, roach, rodent and bee infestations, buckling floorboards, a broken window.

“I hated living in shelters, but nobody should have to live like this either,” said Rollins, a daycare worker. “The landlord would just ignore my calls. When you’re on a voucher you’re treated differently.”

Rollins says she reported housing concerns through the city’s 311 hotline dozens of times. Inspectors visited, but didn’t initially test for lead.

Two months ago her son Noah, 2, was diagnosed with lead poisoning. After receiving his test result, the city Health Department quickly swooped in and found the apartment rife with paint hazards.

Noah’s language is developing, but Natalia worries about his acute sensitivity to noises and his pica behavior, a tendency to eat non-food items. Natalia, Noah and older brother Randy, who is autistic, are now staying in a Bronx safe house for lead poisoning victims operated by Montefiore Hospital.

Ervin Johnson, Rollins’ Coney Island landlord, said the apartment was in “excellent condition” when she moved in. “If her kid got exposed to lead, it probably came from somewhere else,” he said.

But the city says most poisoned children are exposed at home, and records show Johnson’s building has been on the citywide list of the 200 “most distressed” multi-unit dwellings since 2007. “This landlord has repeatedly failed their duty to safeguard our youngest New Yorkers,” the city said.

Lapeyrolerie said the city is now pressing Johnson to “immediately” address the building’s violations and working to find Rollins another apartment.

Lapses in public housing have also come to light. For years, the city’s public housing authority, NYCHA, failed to conduct required annual lead inspections in older public housing, an ongoing federal investigation found.

“We can and must do better,” NYCHA spokeswoman Ilana Maier said.

Citywide, the rate of screened children showing a high blood test in 2015 was 1.7 percent, below the CDC’s estimated national average of 2.5 percent.

Yet rates can vary wildly. A tract on the well-to-do Upper West Side of Manhattan – adjacent to Riverside Park between 105th and 109th Streets – had rates similar to Flint’s even in recent years. The area features grand old buildings and multi-million dollar apartments, where renovations could put children at risk if lead safety practices aren’t followed.

WILLIAMSBURG WOES

Decades ago, Williamsburg, Brooklyn, was a low-rent and largely industrial area. Today, its spacious lofts and privileged perch across from downtown Manhattan attract the well-heeled.

Working-class residents remain, too, including thousands of Hasidic Jews from the Satmar sect, who have settled in the neighborhood’s southern zone since World War II. With their distinctive dress and traditions, the Hasidim’s orthodox lifestyle strikes a contrast to the hipster glitz encroaching nearby.

Hasidic Williamsburg suffers alarming rates of childhood lead poisoning, ranking as the riskiest spot Reuters found citywide.

Across three southern Williamsburg census tracts, as many as 2,400 children tested at or above the CDC’s current elevated lead threshold between 2005 and 2015. In one, 21 percent of children tested during this period had high lead levels. Rates in the most recent years were lower, but still above Flint’s.

On Lee Avenue, boys wearing black hats and coats stream out of yeshivas, while women shop in kosher markets and kibitz in Yiddish in front of old brownstones, many built around 1900.

“When I saw the numbers I freaked out,” said Rabbi David Niederman, head of the United Jewish Organizations of Williamsburg. “The concentration of old housing and the number of children in them are big factors.”

In Hasidic Williamsburg, around 25 percent of the population is age five or younger, compared to about 6 percent citywide.

In recent years, city health workers homed in on the poisoning cluster. UJO and other groups helped health officials conduct outreach, distributing lead awareness pamphlets in Yiddish, urging clinics to boost screening, and holding meetings for residents and landlords.

As recently as 2015, one area tract had a rate of 13 percent, the highest in the city. It’s too early to tell whether rates have since dropped.

DANGERS ON STORE SHELVES

Newly mobile toddlers are the most common lead victims, but school-aged kids and adults are also vulnerable.

Recent testing at the city’s public schools showed more than 80 percent had at least one water outlet with lead levels above the Environmental Protection Agency’s standard of 15 parts per billion. New York public radio station WNYC mapped those results. Faucets that test high are shut off pending repairs, but leaded water lines remain common in New York buildings.

Consumer products are another concern. This year, lead safety advocate Tamara Rubin documented several varieties of the wildly popular fidget spinner toy that contained lead.

And in New York’s popular bodegas, other dangerously leaded products can be found on shelves.

Reporters bought several products that can be used by children or pregnant women from area shops, ordered others from online vendors, and sent 13 items for testing at an accredited laboratory. Six had lead levels exceeding consumer product safety standards.

In Jackson Heights, Queens, a vibrant cauldron of the city’s diverse immigrant populations, scores of small shops sell toy jewelry.

Two items Reuters had tested, a butterfly hairpiece and a glittery earring and beret set, each had lead content above the 100 parts per million U.S. safety standard for toys. Both were Chinese imports. One was labeled “lead-safe.”

The city health department sometimes conducts sweeps, seizing dangerous products or ordering shops to destroy them. It recently found Mexican lead-glazed pottery and issued a public advisory.

But some shopkeepers aren’t aware of the warnings, or ignore them.

In the southern section of Brooklyn’s Ditmas Park area, more than 500 children tested high for lead from 2005 through 2015. Many families in the area emigrated from Pakistan and Bangladesh.

In New York, children of South Asian descent are found to have especially high blood lead levels more often than other children. Sometimes, the poisoning can be linked to imported products.

A string of bright blue, red and gold tubes containing eyeliner – known as ‘surma,’ ‘kajal’ or ‘kohl’ – can be found in many Ditmas Park shops. The cosmetic is sometimes applied to children and touted to improve eye health.

Two varieties reporters bought, both marked lead-free, had unsafe lead levels.

The label for Hashmi Surmi Special liquid, made in Pakistan, says it contains “0.00 percent” lead. Lab testing showed 4.7 percent lead, or 4,700 times the Food and Drug Administration safety standard for cosmetics.

The Hashmi brand website says its surma eyeliner should be used by little ones “right from their childhood to prevent stress on sight.”

Manufacturer A.Q. & Co acknowledged the product contains a lead compound, but said it’s safe when “used externally.”

Health departments disagree. Across the United States, several have linked use of surma to childhood poisoning cases.

New York City has warned against using or selling these products, and FDA guidance says they are illegal to import.

When reporters returned to the Bisillah Grocery Store where they bought the Hashmi eyeliner, a shopkeeper said he’d stopped sales months ago, after a customer had an “allergic reaction.” Reminded of a far more recent sale to a reporter, he said, “You must have bought one of the last bottles.”

The Hashmi eyeliner was still available in several other shops nearby.

Other products U.S. health departments have warned about were easy to find online for delivery to New York City doorsteps.

Reuters purchased leaded Indian Ayurvedic medicines from vendors on Ebay and Amazon.

One of them, Ovarin, is touted to improve women’s reproductive health. It was shipped from a vendor in India via Amazon.com Marketplace. “A Boon to the Womanhood,” its online marketing said. Lab testing showed it contains enough lead to potentially harm mother and unborn child when taken at the suggested dosage.

Its maker, Ban Lab, didn’t respond to interview requests.

Amazon.com removed the product from its website after hearing from Reuters that it was subject to health warnings.

Another product, Zandu brand Maha Yograj Guggul, indicated for joint pain and other ailments, was purchased from a vendor in New Jersey via Ebay.com and tested high for lead.

Manufacturer Emami Group acknowledged the product contains lead, as required by Indian regulations for certain Ayurvedic formulas. The product should only be taken under a doctor’s supervision, its packaging says.

Ebay said it would prohibit sale of the item. Amazon and Ebay said they continually monitor products for safety concerns.

OVERHEAD, UNDERFOOT

In Queens, the city subway’s Number 7 train rumbles overhead on an elevated track.

Last year, a painters trade union said it discovered that lead paint has been raining down on bustling Queens neighborhoods from the subway’s century-old structures. A Brooklyn federal judge set a hearing for this December to consider whether to declare a public health emergency.

Poisoning risks also lurk underfoot in some city areas, where past industrial or vehicle emissions, trash incineration, and runoff from buildings with old paint have tainted the soil.

On a late summer evening, reporters conducted soil testing with help from researchers along a path in McCarren Park, a popular family destination in Greenpoint, Brooklyn.

Columbia University Environmental Sciences graduate student Franziska Landes has been testing soil around the former industrial neighborhood for months. Among the scores of backyards Landes has tested, most have had at least one reading above the EPA’s 400 parts per million lead safety threshold for areas where children play.

Aiming a futuristic-looking XRF analyzer gun into the soil, Landes quickly found one spot, along a jogging path, whose reading was five times that level.

“Wow, that’s a high one,” Landes said. Several other readings on the same path were lower, but still above the EPA threshold.

Nagin, director of New York’s lead-poisoning program, said her department hasn’t usually prioritized soil risks in an urban environment where children’s access to yards is limited. She recently met with Columbia researchers and is taking a deeper look.

Soil researcher Joshua Cheng, a professor at Brooklyn College, said more vigilance is needed. Residents in affected areas should avoid tracking dirt into homes, wash children’s hands often, and place clean topsoil in spots testing high, he said.

“The lead levels found in Brooklyn backyards are often similar to areas where there has been past lead smelting activity,” Cheng said. “They’re comparable to Superfund sites.”

Sarah DuFord, a mother of two, was among the Greenpoint residents who invited reporters into her backyard to test.

One reading was below the EPA threshold, but others were around four times that level.

“This confirms my fears,” she said. Her next step: screening her 2-year-old for lead.

Then and Now – Childhood lead poisoning in New York: http://tmsnrt.rs/2mojaEm

(Additional reporting by Devika Krishna Kumar. Editing by Ronnie Greene)