Assad sets sights on Kurdish areas, risking new Syria conflict

Assad sets sights on Kurdish areas, risking new Syria conflict

By Tom Perry, Ellen Francis and Laila Bassam

BEIRUT (Reuters) – With Islamic State near defeat in Syria, Damascus is setting its sights on territory held by Kurdish-led forces including eastern oil fields, risking a new confrontation that could draw the United States in more deeply and complicate Russian diplomacy.

President Bashar al-Assad and his Iranian allies appear to have been emboldened by events in Iraq, where Kurdish authorities have suffered a major blow since regional states mobilised against their independence referendum, analysts say.

Rivalry between the Kurdish-led Syrian Democratic Forces (SDF), supported by the United States, and the Syrian government backed by Iran and Russia is emerging as a fault line with their common enemy – Islamic State – close to collapse in Syria.

Syria’s main Kurdish groups hope for a new phase of negotiations that will shore up their autonomy in northern Syria. Assad’s government, however, is asserting its claim to areas captured by the SDF from the jihadist group, known in Arabic by its enemies as Daesh, in more forceful terms.

On Sunday, Damascus declared Islamic State’s former capital at Raqqa would be considered “occupied” until the Syrian army took control – a challenge to Washington which helped the SDF capture the city in months of fighting.

And the eastern oil fields seized by the SDF in October, including Syria’s largest, will be a target for the government as it tries to recover resources needed for reconstructing areas it controls, according to a Syrian official and a non-Syrian commander in the alliance fighting in support of Assad.

“The message is very clear to the SDF militants and their backers in the coalition, headed by America: the lands they took from Daesh are rightfully the Syrian state’s,” said the non-Syrian commander, who requested that his name and nationality be withheld.

“Regarding the resources of the Syrian people in the east – oil and so on – we will not allow anyone to continue to control the country’s resources and to create cantons or to think about self government,” added the commander, who is part of a military alliance that includes numerous Iran-backed Shi’ite militias from across the region.

The Syrian official said the SDF could not keep control of oil resources. “We won’t permit it,” said the official, speaking to Reuters on condition of anonymity as he was giving a personal view.

The United States has not spelt out how military support for the SDF will evolve after Islamic State’s defeat, a sensitive point due to the concerns of its NATO ally Turkey.

Ankara regards Syrian Kurdish power as a threat its national security as its forces are fighting Kurdish PKK rebels over the border in Turkey.

The U.S.-led coalition, which has established several military bases in northern Syria, has been helping the SDF shore up control of the recently captured al-Omar oil field in Deir al-Zor province.

“Many people will say that will help them with (political) negotiations, but only if the United States remains with them, otherwise they are going to get clobbered,” said Joshua Landis, an expert on Syria and head of the Center for Middle East Studies at the University of Oklahoma.

“I think the Syrian government is going to push on some of these oil wells, in the same way as Iraq just pushed to get Kirkuk oil, and in the same way the Iraqi push is going to embolden the Syrian army,” he said.

KIRKUK “LESSON”

Iraqi Kurds took control of large areas outside their autonomous region during the fight against Islamic State. However, last month’s independence referendum prompted Western opposition and fierce resistance from Baghdad, Ankara and Assad’s Iranian allies, and the Kurdish authorities have since lost much territory to Baghdad, including oil producing areas around the city of Kirkuk.

The Syrian official said this should serve “as a lesson for the Kurds in Syria, so they think about the future”.

Regional sources say the U.S. unwillingness to stop Iraqi government forces, backed by Shi’ite militias, from recapturing Kirkuk sent an encouraging message to Assad and his Iranian allies to retake the SDF-held oil areas in Syria.

With critical military support from Russia and the Iran-backed militias, Assad has recovered swathes of central and eastern Syria from Islamic State this year, having defeated many anti-Assad rebel factions in western Syria.

The Kurdish YPG militia, the dominant force in the SDF, controls the second largest chunk of Syrian territory – around a quarter of the country. Syrian Kurdish leaders say they are not seeking secession.

The YPG and Damascus have mostly avoided conflict during the Syrian civil war, setting aside historic enmity to fight shared foes. Kurdish-led regions of northern Syria have meanwhile focused on establishing an autonomous government which they aim to safeguard.

Moscow has called for a new “congress” of Syrian groups that may start work on a new constitution. The Russian Foreign Ministry published on Tuesday a list of 33 groups and political parties invited to a meeting in the Black Sea resort of Sochi on Nov. 18.

A Syrian Kurdish official told Reuters the administration in northern Syria had been invited to the congress. Kurdish officials said they discussed their political demands with the Russians as recently as last month.

A senior Kurdish politician said government statements directed at the Kurdish-led regions of northern Syria were contradictory, noting that the Syrian foreign minister had said in September that Kurdish autonomy demands were negotiable.

“One day they say we are willing to negotiate and then someone else denies this or puts out an opposing statement,” Fawza Youssef said in a telephone interview with Reuters. “One of them declares war and the other wants to come negotiate. What is the regime’s strategy? Dialogue or war?”

After the final defeat of Islamic State in Deir al-Zor, “the situation will drive all the political sides and the combatants to start the stage of negotiations”, Youssef said.

The SDF has also pushed into Arab majority areas, including Raqqa and parts of Deir al-Zor, where it is working to establish its model of multi-ethnic local governance.

Analysts believe the Syrian Kurdish groups could use the SDF-held Arab areas as bargaining chips in negotiations with Damascus.

“There is no other option than to negotiate,” Youssef said. “Either a new stage of tensions and attrition will start – which we are 100 percent against – or a stage of dialogue and negotiations will start.”

(Additional reporting by Yara Bayoumy in Washington; Writing by Tom Perry; editing by David Stamp)

Exclusive: U.S. needs to improve oversight of labs handling dangerous pathogens – report

Exclusive: U.S. needs to improve oversight of labs handling dangerous pathogens - report

By Julie Steenhuysen

CHICAGO (Reuters) – A year-long audit of the program overseeing U.S. labs that handle lethal pathogens such as Ebola and anthrax found overworked safety inspectors, an absence of independent review and weak biosafety protections that could expose lab workers and the public to harm, a government report will say on Tuesday.

The report by the Government Accountability Office to Congress followed a series of mishaps in which dangerous pathogens were inadvertently released. The report, seen by Reuters, concluded that the Federal Select Agent Program needs an overhaul.

The GAO audited laboratory safety oversight following errors that could have exposed dozens of people to live anthrax bacteria and the deadly toxin ricin. Its report will guide questioning of officials before the House Energy and Commerce Committee’s oversight subcommittee on Thursday.

The Federal Select Agent Program is jointly run by the U.S. Centers for Disease Control and Prevention (CDC) and the Animal and Plant Health Inspection Service (APHIS) of the U.S. Department of Agriculture.

According to the report, a chief concern is that the program is too focused on physical security measures, such as preventing theft from labs, and needs to focus more on biosafety issues that could protect researchers and the wider public from errors.

The GAO report also noted that many of the labs using high-risk pathogens for research belong to either CDC or the USDA, and recommended that Congress consider setting up a fully independent oversight body to remove potential conflicts of interest.

“The Select Agent Program does not fully meet our key elements of effective oversight,” the report stated.

Safety lapses in CDC labs captured headlines in 2014 when scientists at a high-level biosecurity lab did not properly inactivate anthrax bacteria before sending the material to labs with fewer safeguards. More than 80 scientists were exposed to potentially live anthrax, though no one fell ill.

In the months that followed, the Food and Drug Administration disclosed the discovery of decades-old vials of smallpox in a storage closet, while a U.S. Army lab erroneously shipped live anthrax to nearly 200 labs worldwide.

To address concerns of conflict of interest, CDC and APHIS have made structural changes to increase the program’s independence, but according to the GAO report, the program has not undergone a comprehensive risk management review, even as problems with lab safety continue to come to light.

As recently as last November, the Department of Homeland Security found a private lab inadvertently shipped ricin – a lethal poison – to one of its training centers on multiple occasions in 2011.

“Considering the type of research we’re talking about, we should have a much more robust, systematic oversight approach. That seems to be lacking,” said an aide to the House committee who declined to be identified.

To avoid conflicts of interest, inspections of APHIS laboratories are supposed to be carried out by the CDC, and inspections of CDC labs are to be carried out by APHIS. But the report revealed that at least three times in 2015, APHIS inspected its own laboratories, partly because there is no process in place to ensure compliance.

The report also cited excessive workloads for inspectors, which delay inspection reports and make it harder to retain personnel. In some cases, inspectors have been assigned to tasks outside of their expertise. For example, the GAO found that an APHIS physical security expert was asked to inspect ventilation systems – a critical protection against the accidental release of dangerous pathogens.

Short of a move by Congress to create an independent oversight agency, GAO recommended that CDC and APHIS officials conduct a risk assessment of the Select Agent Program and how it handles conflicts of interest. It also recommended that program officials shift inspection priorities to focus on high-risk activities in labs and develop a joint plan to train and hire inspectors.

The Health and Human Services Department, which oversees CDC, and the USDA, which runs APHIS, agreed with many of these recommendations, according to the report. Officials from the CDC and APHIS will testify at the Thursday hearing.

(Reporting by Julie Steenhuysen; Editing by Michele Gershberg)

Two ex-Trump aides charged in Russia probe, third pleads guilty

Two ex-Trump aides charged in Russia probe, third pleads guilty

By Sarah N. Lynch and Karen Freifeld

WASHINGTON (Reuters) – Federal investigators probing Russian interference in the 2016 U.S. election charged President Donald Trump’s former campaign manager Paul Manafort and another aide, Rick Gates, with money laundering on Monday.

A third former Trump adviser, George Papadopoulos, pleaded guilty in early October to lying to the FBI, it was announced on Monday.

It was a sharp escalation of U.S. Justice Department Special Counsel Robert Mueller’s five-month-old investigation into alleged Russian efforts to tilt the election in Trump’s favor and into potential collusion by Trump aides.

Manafort, 68, a longtime Republican operative, and Gates were arraigned at a federal courthouse in Washington.

Both men pleaded not guilty to the charges in a 12-count indictment, ranging from money laundering to acting as unregistered agents of Ukraine’s former pro-Russian government.

The judge ordered house arrest for both men, and set a $10 million unsecured bond for Manafort and a $5 million unsecured bond for Gates. With unsecured bonds, they are released without having to pay but will owe money if they fail to appear in court. There will be another hearing on Thursday.

The developments in the Mueller probe weighed on the U.S. dollar, which slipped 0.5 percent against a basket of currencies.

Mueller’s investigation and others by congressional committees into alleged Russian efforts to influence the election have cast a shadow over Trump’s first nine months in office.

U.S. intelligence agencies say Russia interfered in the election by hacking and releasing embarrassing emails and disseminating propaganda via social media to discredit Democratic presidential candidate Hillary Clinton. Russia denies the allegations and Trump denies any collusion.

Neither Trump nor his campaign was mentioned in the indictment against Manafort and Gates. The charges, some going back more than a decade, center on Manafort’s work for Ukraine.

The indictment includes accusations of conspiracy against the United States, failure to report foreign bank accounts to the U.S. government and conspiracy to launder money, a count that carries a 20-year maximum prison sentence.

A White House spokeswoman said the indictment had nothing to do with Trump or his campaign and showed no evidence of collusion between the campaign and Russia.

“We’ve been saying from Day One there’s no evidence of Trump-Russia collusion, and nothing in the indictment today changes that at all,” spokeswoman Sarah Sanders told a news briefing.

Manafort’s attorney, Kevin Downing said in a statement that there was no evidence the Trump campaign colluded with the Russian government. Downing said Manafort’s work for the Ukrainians ended in 2014, two years before he joined the Trump campaign.

Downing accused Mueller of using a “novel” legal theory to prosecute Manafort under a law requiring lobbyists to register with the Department of Justice when they are doing work for a foreign government.

GUILTY PLEA

In a development directly related to Trump’s 2016 election campaign, it emerged on Monday that Papadopoulos, a former campaign adviser, pleaded guilty earlier this month to making false statements to Federal Bureau of Investigation agents.

Mueller’s office said Papadopoulos lied to FBI agents about the timing of contact between him and a professor in London who claimed to have information that would hurt Clinton.

Papadopoulos, a little-known former foreign policy adviser in the campaign, made a plea bargain that stated he had since “met with the Government on numerous occasions to provide information and answer questions,” according to a court document.

Sanders, the White House spokeswoman, said Papadopoulos’ role in the campaign was “extremely limited” and that he was a volunteer.

“He asked to do things (and) he was basically pushed back or not responded to in any way,” she said.

In a May 4 email quoted in the Papadopoulos indictment, a Trump campaign employee forwarded a message from Papadopoulos proposing a meeting between Trump and the Russian government to another campaign official.

The employee included a note, according to the indictment, that read: “Let’s discuss. We need someone to communicate that DT is not doing these trips. It should be someone low level in the campaign so as not to send any signal.”

A source in Washington, who did not want to be identified and who has seen the email, said the sender was Manafort and the recipient was Gates.

Manafort ran the Trump campaign from June to August of 2016 before resigning amid reports he might have received millions of dollars in illegal payments from a pro-Russian political party in Ukraine.

FRUSTRATION

Trump reiterated his frustration on Monday with the Mueller probe, which he has called “a witch hunt.”

“Sorry, but this is years ago, before Paul Manafort was part of the Trump campaign. But why aren’t Crooked Hillary & the Dems the focus?????,” Trump wrote on Twitter, referring to Clinton.

Mueller has been investigating Manafort’s financial and real estate dealings and his prior work for a political group, the Party of Regions, which backed former pro-Kremlin Ukrainian President Viktor Yanukovich.

Both Manafort and Gates generated tens of millions of dollars of income from Ukraine work and laundered money through scores of U.S. and foreign entities to hide payments from American authorities, the indictment said.

They concealed from the United States their work and revenue as agents of Ukrainian political parties and used their wealth to lead a “lavish lifestyle” without paying taxes on the income, it said.

The indictment said Manafort owned properties in Manhattan, Brooklyn, the Hamptons, Arlington, Virginia, and elsewhere.

Prosecutors said Manafort spent almost $1 million on eight rugs in two years and more than $1.3 million on clothes from shops in Beverly Hills, California, and New York City. They also said he had been making payments on four Range Rovers and a Mercedes-Benz.

Gates was a longtime business partner of Manafort and has ties to Russian and Ukrainian oligarchs. He also served as deputy to Manafort during his brief tenure as Trump’s campaign chairman.

(Reporting by Sarah N. Lynch and Karen Freifeld; Additional reporting by Doina Chiacu, Susan Heavey, Steve Holland and Mark Hosenball in Washington and Jan Wolfe, Megan Davies and Emily Flitter in New York.; Writing by Alistair Bell and Caren Bohan; Editing by Jonathan Oatis and Peter Cooney)

China, South Korea agree to mend ties after THAAD standoff

China, South Korea agree to mend ties after THAAD standoff

By Christine Kim and Ben Blanchard

SEOUL/BEIJING (Reuters) – Seoul and Beijing on Tuesday agreed to move beyond a year-long stand-off over the deployment of a U.S. anti-missile system in South Korea, a dispute that has been devastating to South Korean businesses that rely on Chinese consumers.

The unexpected detente comes just days before U.S. President Donald Trump begins a trip to Asia, where the North Korean nuclear crisis will take center stage, and helped propel South Korean stocks to a record high.

The installation of the U.S. Terminal High Altitude Area Defense (THAAD) system had angered China, with South Korea’s tourism, cosmetics and entertainment industries bearing the brunt of a Chinese backlash, although Beijing has never specifically linked that to the THAAD deployment.

Beijing worries the THAAD system’s powerful radar can penetrate into Chinese territory.

“Both sides shared the view that the strengthening of exchange and cooperation between Korea and China serves their common interests and agreed to expeditiously bring exchange and cooperation in all areas back on a normal development track,” South Korea’s foreign ministry said in a statement.

Before the THAAD dispute, bilateral relations flourished, despite Beijing’s historic alliance with North Korea and Seoul’s close ties with Washington, which includes hosting 28,500 U.S. troops. China is South Korea’s biggest trading partner.

“At this critical moment all stakeholders should be working together to address the North Korea nuclear challenge instead of creating problems for others,” said Wang Dong, associate professor of international studies at China’s Peking University.

“This sends a very positive signal that Beijing and Seoul are determined to improve their relations.”

As part of the agreement, South Korean President Moon Jae-in will meet Chinese President Xi Jinping on the sidelines of the summit of Asia-Pacific Economic Cooperation (APEC) countries in Vietnam on Nov. 10-11.

South Korea recognized China’s concerns over THAAD and made it clear the deployment was not aimed at any third country and did not harm China’s strategic security interests, China’s foreign ministry said.

China reiterated its opposition to the deployment of THAAD, but noted South Korea’s position and hoped South Korea could appropriately handle the issue, it added.

“China’s position on the THAAD issue is clear, consistent and has not changed,” Chinese Foreign Ministry spokeswoman Hua Chunying told a daily briefing in Beijing.

RETAIL RELIEF

The thaw is a big relief for South Korean tourism and retail firms as well as K-pop stars and makers of films and soap operas, which had found themselves unofficially unwelcome in China over the past year.

In South Korea, a halving of inbound Chinese tourists in the first nine months of the year cost the economy $6.5 billion in lost revenue based on the average spending of Chinese visitors in 2016, data from the Korea Tourism Organization shows.

The spat knocked about 0.4 percentage points off this year’s expected economic growth, according to the Bank of Korea, which now forecasts an expansion of 3 percent.

The sprawling Lotte Group, which provided the land where the THAAD battery was installed and is a major operator of hotels and duty free stores, has been hardest hit. It faces a costly overhaul and is expected to sell its Chinese hypermarket stores for a fraction of what it invested.

A spokesman for holding company Lotte Corp expressed hope that South Korean firms’ activity in China would improve following the announcement.

An official at Seoul’s presidential Blue House, who declined to be named given the sensitivity of the matter, said improvements for South Korean companies would come slowly.

Shares in South Korean tourism and retail companies rallied nonetheless, with Asiana Airlines gaining 3.6 percent and Lotte Shopping up 7.14 percent. The benchmark Kospi index hit a record for a third straight day, gaining 0.9 percent.

China has grown increasingly angry with North Korea’s ongoing pursuit of nuclear weapons and ballistic missiles in defiance of United Nations sanctions, even as it chafes at U.S. pressure to rein in its isolated ally.

NORTH KOREA TENSIONS

The recent deterioration in ties between China and North Korea may have contributed to Tuesday’s agreement, the Blue House official said.

Pyongyang has undertaken an unprecedented missile testing program in recent months, as well as its biggest nuclear test yet in early September, as it seeks to develop a powerful nuclear weapon capable of reaching the United States.

The head of NATO on Tuesday urged all United Nations members to fully and transparently implement sanctions against North Korea.

“North Korea’s ballistic and nuclear tests are an affront to the United Nations Security Council,” NATO Secretary General Jens Stoltenberg said in Tokyo, where he met Japanese Prime Minister Shinzo Abe.

Separately, a South Korean lawmaker said North Korea probably stole South Korean warship blueprints after hacking into a local shipbuilder’s database last April.

Expectations had been growing for a warming in the frosty bilateral ties following this month’s conclave of China’s Communist Party, during which Xi cemented his status as China’s most powerful leader after Mao Zedong.

Earlier this month, South Korea and China agreed to renew a $56 billion currency swap agreement, while Chinese airlines are reportedly planning to restore flight routes to South Korea that had been cut during the spat.

Tuesday’s agreement came after high-level talks led by Nam Gwan-pyo, deputy director of national security of the Blue House, and Kong Xuanyou, assistant foreign minister of China and the country’s special envoy for North Korea-related matters.

(Reporting by Christine Kim and Hyonhee Shin in SEOUL and Ben Blanchard in BEIJING, with additional reporting by Dahee Kim and Joyce Lee; Writing by Tony Munroe; Editing by Lincoln Feast and Ian Geoghegan)

U.N. picks Norwegian for Myanmar role as tensions simmer over Rohingya crisis

U.N. picks Norwegian for Myanmar role as tensions simmer over Rohingya crisis

YANGON (Reuters) – The United Nations named a new interim U.N. resident coordinator for Myanmar on Tuesday, appointing Knut Ostby of Norway to take over the humanitarian role at a time of growing strains with the Myanmar government over the handling of the Rohingya crisis.

The appointment of a temporary placeholder was expected after Myanmar blocked an upgrade of the U.N. country chief position.

Myanmar’s de facto leader, Nobel Peace Prize winner Aung San Suu Kyi, has told diplomats in private meetings that she is frustrated with the United Nations, particularly its human rights arm.

Ostby, who has served with the United Nations in a number of hotspots, including Afghanistan and East Timor, will replace Renata Lok-Dessallien, who has completed her term.

Some 600,000 Rohingya Muslims have fled to Bangladesh after ethnic violence erupted in Myanmar’s northern Rakhine state in late August.

Rights monitors and Rohingya refugees say the army and Rakhine Buddhist vigilantes have forced them to flee their homes.

U.N. investigators interviewing Rohingyas living in refugee camps near Cox’s Bazar said on Friday they had gathered testimony pointing to a “consistent, methodical pattern” of killings, torture, rape and arson.

The fact-finding team, led by former Indonesian attorney general Marzuki Darusman, said the death toll from the Myanmar army’s crackdown following Rohingya insurgent attacks on Aug. 25 was unknown, but “may turn out to be extremely high”.

The U.N. team, which was established by the U.N. Human Rights Council in March, renewed its appeal for access to Rakhine state and for talks with the Myanmar government and military to “establish the facts”.

In the early stages of the crisis, the United Nations described the military campaign as “ethnic cleansing”, an accusation rejected by Myanmar, which says its military was engaged in counter-insurgency operations against Rohingya militants behind a series of attacks on security posts.

Suu Kyi has said the refugees can return, but thousands continue to arrive in Bangladesh.

Myanmar, an overwhelmingly Buddhist country with small Christian and Muslim minorities, is struggling to emerge from decades of military rule, and Suu Kyi’s democratically elected government is engaged in a peace dialogue with members of various armed ethnic groups.

(Reporting by Antoni Slodowski; Writing by Simon Cameron-Moore)

Major Venezuelan opposition parties to boycott local polls

Major Venezuelan opposition parties to boycott local polls

By Andreina Aponte and Andrew Cawthorne

CARACAS (Reuters) – Three of Venezuela’s largest opposition parties vowed on Monday to boycott mayoral polls later this year in protest at an election system they say is biased in favor of President Nicolas Maduro’s ruling socialists.

The multi-party Democratic Unity coalition has had a tough 2017, first failing to bring down Maduro in four months of protests that led to 125 deaths, then losing surprisingly to the Socialist Party in a gubernatorial election earlier this month.

That has left the opposition weakened and divided, and Maduro strengthened, despite growing foreign pressure on his government over alleged rights abuses and corruption, and an unprecedented economic crisis that has millions skipping food.

Three heavyweight movements in the opposition – Justice First, Popular Will and Democratic Action – announced on Monday they did not trust the government-leaning election board sufficiently to participate in the municipal polls in December.

Justice First leader Julio Borges, who also heads the opposition-led congress, said authorities cheated in the 2013 presidential election, denied Venezuelans a recall referendum last year, and rigged the Oct. 15 gubernatorial vote.

So instead of going into another “manipulated” vote, the opposition should focus on demanding reforms to the election board in anticipation of next year’s presidential poll, he said.

“The objective remains getting Nicolas Maduro out of power, and in this struggle, the world is with us,” he told reporters.

To the surprise of some, the Democratic Action party also joined the boycott. Its candidates won four governorships in October’s vote and then infuriated many opposition supporters by swearing loyalty to a pro-Maduro legislative superbody.

MADURO: ‘BALLOTS, NOT BULLETS’

Opposition supporters have been split over participating in elections this year. Some say it is the only way to show they are a majority and undermine Maduro, while a growing number argue there is no point in fighting a “dictator” via a system rigged in his favor.

They are pinning their hopes on international action, including U.S. sanctions against Maduro’s government.

Maduro, whose personal popularity has plunged since his 2013 election due to food shortages and runaway inflation, said “sabotage” and “insurrection” were being planned against the mayoral votes.

“I declare myself in battle,” the 54-year-old successor to Hugo Chavez said in a meeting with governors on Monday.

“Those who attack the election system must pay.”

Opposition leaders say the government has long been rigging elections by gross abuse of state funds in favor of socialist candidates, and dirty tricks such the last-minute moving of vote centers in opposition areas for the October ballot.

They have also presented some allegations of ballot-rigging.

However, Maduro insists Venezuela’s system is entirely trustworthy and impossible to hack. It has received international praise in the past, although it was slammed over July’s vote for the Constituent Assembly superbody.

Maduro says the street protests earlier this year were a mask for a U.S.-backed coup plot, and accuses opponents of wanting to oust him by undemocratic means.

“Venezuelans want ballots, not bullets,” said Maduro.

(Writing by Andrew Cawthorne; Editing by Alexandra Ulmer and Rosalba O’Brien)

MSF says closing most cholera centers in Yemen as epidemic wanes

MSF says closing most cholera centers in Yemen as epidemic wanes

By Stephanie Nebehay

GENEVA (Reuters) – The medical charity Medecins Sans Frontieres (Doctors Without Borders) is closing most of its 37 cholera treatment centers in Yemen, saying the epidemic appears to have peaked.

Some 884,368 suspected cholera cases have been recorded in the war-torn country in the past six months, including 2,184 deaths, according to the latest figures from the World Health Organization (WHO). The case fatality rate is now 0.25 percent.

“The number of cholera cases reported in MSF treatment centers has significantly decreased since the peak of the outbreak. As a result, the medical organization is closing the majority of its cholera treatment centers or reducing their capacity,” MSF said in a statement late on Monday.

Some 567 new patients sought treatment for suspected cholera at MSF’s centers in nine governorates of Yemen during the second week of October, down from 11,139 at the peak in the third week in June, it said.

“Only 9 percent of patients admitted by MSF last week needed to be hospitalized and a limited number of patients have symptoms that correspond with the cholera case definition (acute watery diarrhea with or without vomiting),” it said. “The remaining cases are believed to be due to other pathogens.”

Ghassan Abou Chaar, MSF head of mission in Yemen, said: “The cholera outbreak is not over but it is no longer our medical priority in Yemen. However, this should not eclipse the dire health situation of millions of Yemenis who are unable to access basic primary healthcare.”

Civil war in Yemen has killed more than 10,000 people since it began in March 2015. Yemen’s war pits the armed Houthi movement that controls the capital against the internationally-recognized government of President Abd-Rabbu Mansour Hadi, which is backed by a Saudi-led coalition that has launched thousands of air strikes to restore him to power.

Cholera epidemics usually subside once the disease passes through a population, but aid agencies say the Yemen epidemic lasted longer and spread wider than they initially expected because of the war’s toll on health care.

U.N. humanitarian chief Mark Lowcock said on Sunday that an aid effort by the World Health Organization, United Nations Children’s Fund UNICEF, the International Committee for the Red Cross (ICRC) and other agencies had managed to “largely contain the devastating cholera epidemic”, but warned it could flare up again without urgent investment in health, water and sanitation.

ICRC said last month that the humanitarian situation in Yemen is a “catastrophe”, and cholera cases could reach a million by the end of the year.

Alexandre Faite, head of the ICRC delegation in Yemen, said at the time that the “health sector is really on its knees in Yemen … the health staff is on its knees as well because they are not paid.”

“Preventable illnesses and deaths are increasing in Yemen, and this can be partly attributed to the salary crisis,” MSF said, noting that doctors, nurses and other public health workers had not been paid in 13 months.

(Reporting by Stephanie Nebehay; Editing by Peter Graff)

Puerto Rico’s path to restore power shifts after Whitefish exit

Puerto Rico's path to restore power shifts after Whitefish exit

By Jessica Resnick-Ault and Scott DiSavino

NEW YORK (Reuters) – Efforts to restore electricity to Puerto Rico nearly six weeks after Hurricane Maria are shifting as the island’s utility and its regulators, along with U.S. authorities, removed a key contractor and moved to triple the funding of another.

The U.S. Army Corps of Engineers, which is leading the federal power restoration effort, said it plans to boost the size of a key contract awarded to Fluor Corp by $600 million, to $840 million, according to a government filing.

The Army Corps said it was modifying the contract to ensure “continued execution of the critical repair and restoration of the electric power grid in Puerto Rico.”

It comes a day after Puerto Rican Governor Ricardo Rossello and the Puerto Rico Electric Power Authority (PREPA) said they would cancel a $300 million contract with Whitefish Energy Holdings, after an uproar over the deal’s provisions and the tiny Montana company’s lack of experience with projects of such a large size.

Fluor, which declined comment, was already in the process of bringing in people to help restore transmission and distribution of power to the U.S. territory. Hurricane Maria knocked out power to all 3.4 million residents of Puerto Rico, and only about 30 percent of power has been restored nearly six weeks later.

The Army Corps’ action on Monday signals that Fluor is now the primary contractor on Puerto Rico. The Army Corps awarded the original $240 million Fluor contract. The more controversial Whitefish contract was handled directly with PREPA.

The Whitefish deal came under fire after it was revealed last week that the terms were obtained without a competitive public bidding process. Residents, local officials and U.S. federal authorities all criticized the arrangement.

Conflict over who should lead the process of restoration and oversee PREPA has hampered efforts. PREPA, the island’s bankrupt power utility, and the governor have argued that the utility should maintain control, while a fiscal control board created by U.S. Congress last year to restructure the island’s finances has also jockeyed for control.

“PREPA and the governor of Puerto Rico and the administration here need to make a decision on who is in charge of PREPA,” said Ariel Horowitz of Synapse Energy Economics, a consultant to Puerto Rico’s energy regulator.

Puerto Rico’s energy commission, a small regulatory board tasked with overseeing PREPA, has the option of assigning an independent adviser to monitor progress in restoring the grid, but has not done so yet.

ISOLATION A PROBLEM

Currently, there are about 400 subcontracting crews on the island working to bring back power. Rossello said he wants to have 1,000 crews by Nov. 8, leaning on so-called mutual aid from utilities in New York and Florida, which have crews on the island.

Getting assistance from other utilities, which usually help one another after storms, may continue to be complicated by Puerto Rico’s isolation and lack of investment in its system.

A private sector source, who could not be named, said the transition from Whitefish, should it be handled smoothly, will hopefully accelerate the restoration of power. He said PREPA’S goal of restoring 95 percent of power by mid-December – a full three months after the hurricane – is slow for a typical utility.

PREPA did not respond to a request for comment.

Whitefish said it has completed significant work on two major transmission lines that crossed over the mountains of Puerto Rico. A person familiar with PREPA’s operations said on Monday that Whitefish would complete work on critical lines despite the cancellation of the contract.

Several other utilities are on the island, as well as private contractors that include Southern Co’s PowerSecure unit and Fluor.

An Army Corps spokesman said the Corps is not currently planning on hiring those reporting to Whitefish, but the subcontractors – Fluor and PowerSecure – might. Officials at Fluor and Southern did not comment on that possibility.

JEA, the municipal utility for Jacksonville, Florida, said it would keep its crew of about 40 people on the island, even if it no longer reports to Whitefish.

(Reporting by Jessica Resnick-Ault and Scott DiSavino; Additional reporting by Nick Brown; Editing by David Gaffen and Leslie Adler)

Iran fulfilling nuclear deal commitments: IAEA chief

Iran fulfilling nuclear deal commitments: IAEA chief

ABU DHABI (Reuters) – Iran is fulfilling its commitments under the nuclear deal with world powers and U.N. inspectors are facing no problems in their verification efforts, the International Atomic Energy Agency (IAEA) director-general said on Monday.

U.S. President Donald Trump said earlier this month that he would not continue to certify the multinational 2015 agreement, reached under his predecessor Barack Obama, and warned that he might ultimately terminate it.

Iran would abandon the agreement if it were deemed not be serving its national interests, President Hassan Rouhani said in reaction to Trump’s decision. But he also said, “No president can revoke an international deal…(and) Iran will continue to honour its commitments under the deal.”

The other parties to the accord – Britain, Germany, France, Russia, China and the European Union have all reaffirmed their commitment to it and urged the United States not to back out.

IAEA chief Yukiya Amano, whose inspectors are tasked with monitoring compliance with the deal, reiterated that Iran was adhering to it.

“The IAEA can state that such nuclear-related commitments are being implemented,” Amano told a news conference in Abu Dhabi following a trip to Iran on Sunday where he met with Rouhani and other officials.

“I requested that Iran … fully implement the nuclear-related commitments. This (was) the main thrust of the meeting in Iran … Regarding the activities of our inspectors, they are discharging their responsibility without problem,” he said.

Under the agreement, Iran undertook to restrict its nuclear programme to help ensure it could not be put to developing atomic bombs in exchange for the lifting of trade and financial sanctions that had hobbled its oil-based economy.

Amano added that he had told Iranian officials the nuclear deal was a “significant gain for verification”.

Speaking on the sidelines of an international conference on nuclear power in the United Arab Emirates, Amano declined comment on U.S. policy towards Iran and on Iran’s absence from the meeting, which draws together IAEA member states.

(Reporting by Sylvia Westall and Stanley Carvalho; Editing by Mark Heinrich)

Spain awaits next move by ousted Catalan leader from Belgium

Spain awaits next move by ousted Catalan leader from Belgium

By Raquel Castillo and Angus MacSwan

MADRID (Reuters) – Spain’s foreign minister said on Tuesday he would be surprised if Belgium granted political asylum to Catalan secessionist leader Carles Puigdemont, who turned up there after Madrid’s dismissal and takeover of Catalonia’s regional government.

By Tuesday, the Madrid government had gained the upper hand in the protracted struggle over Catalonia’s independence drive.

Resistance to Madrid’s imposition of direct control on the autonomous region failed to materialize at the start of the week on Monday. The secessionist leadership is in disarray, and attention is now turning to a regional election called by Prime Minister Mariano Rajoy for Dec. 21 as a way out of the crisis.

But Puigdemont, whose parliament declared an independent Catalan republic on Friday before being removed by Rajoy, remains a thorn in Madrid’s side. He was due to make a statement later on Tuesday in Brussels, where he was seen by journalists on Tuesday after having dropped out of sight for 24 hours.

Spain’s prosecutor called for charges of rebellion and other crimes to be laid against him, which carry combined sentences of more than 30 years in prison. Spain’s Supreme Court also began proceedings for rebellion against the Catalan parliament speaker and other senior lawmakers, a court spokesman said on Tuesday.

Any request for asylum in Belgium could lead to a diplomatic dispute between the two European Union nations. But Spanish Foreign Minister Alfonso Dastis appeared to play down that prospect for now.

“We have no certainty of what he is doing,” he told Cadena Ser radio. “We would be a bit surprised, given the situation regarding the right of asylum in Europe, but the actions of ex-president Puigdemont are not easy to foresee.”

Any decision would be up to Belgian courts, not the government, Dastis said. “If Belgium grants asylum to Puigdemont, it will not be a normal situation. Let’s leave it there for now.”

In Belgium, Puigdemont’s lawyer Paul Bekaert, a veteran human rights advocate, told Reuters his client was considering seeking asylum but it was not certain.

“We have not yet decided. We have a lot of time to decide,” Bekaert said. “We will see in the coming weeks what we are doing.”

While Belgium has an unusual track record in refusing to extradite Europeans wanted by other EU states, the main reason Puigdemont had come was to address a wider audience for Catalonia’s grievances against Madrid, Bekaert said.

European nations including Britain, Germany and France have backed Rajoy and rejected an independent Catalan state, although some have called for dialogue between the opposing sides.

The Spanish government has also said Puigdemont was welcome to take his chances and stand in the Dec. 21 election.

UNCERTAINTY TO BUILD

The political crisis, Spain’s gravest in the four decades since the return of democracy in the late 1970s, was triggered by an independence referendum in Catalonia on Oct. 1.

Though it was declared illegal by Spanish courts and less than half Catalonia’s eligible voters took part, the pro-secessionist regional government said the vote gave it a mandate for independence.

Some prominent ousted Catalan leaders, including Puigdemont and Vice President Oriol Junqueras, had said they would not accept their dismissal. But their respective parties, PdeCat and Esquerra Republicana de Catalunya, said on Monday they would take part in the Dec. 21 election, a tacit acceptance of direct rule from Madrid.

Two opinion polls showed support for independence may have started to wane. A Sigma Dos survey published in El Mundo showed 33.5 percent of Catalans were in favor of independence, while a Metroscopia poll published by El Pais put that number at 29 percent. That compared with 41.1 percent in July, according to an official survey carried out by the Catalan government.

Opponents of secession say a majority of Catalans want to remain part of Spain and did not take part in the referendum.

But some analysts say the dispute is not going to disappear anytime soon despite the present state of play.

“Spain is heading for a period of disruption, and like the UK and Brexit, having its policy agenda dominated by one political issue while other key challenges fade into the background,” said Raj Badiani, an economist at IHS Markit in London.

“A more tangible impact from the crisis could evolve from early 2018, with the uncertainty set to build as Catalans push harder for a legally binding referendum.”

The government’s move to impose direct rule received the backing of several influential Catalan business lobbies, which called on firms to stay in the region. The chaos has prompted an exodus of businesses from Catalonia, which contributes about a fifth of Spain’s economy.

Credit rating agency Fitch late on Monday said the escalation of tensions in Catalonia significantly worsened the outlook for Spain’s economic growth and could prompt negative action on the country’s rating.

In Barcelona, some people displayed exasperation.

“It’s a farcical and completely ridiculous situation,” said Ernesto Hernandez Busto, a 42-year-old editor. “This extreme nationalism, this separatism, has taken Catalonia to the most absurd situation and the worst inconvenience we have had in the last 40 years.”

(Additional reporting by Paul Day and Sonya Dowsett in Madrid, Lucasta Bath and Clement Rossignol in Belgium; Editing by Janet Lawrence)