North Korea presses rocket program, but amid signs of drama easing

North Korean leader Kim Jong-Un smiles during a visit to the Chemical Material Institute of the Academy of Defense Science in this undated photo released by North Korea's Korean Central News Agency (KCNA) in Pyongyang on August 23, 2017. KCNA/via REUTERS

By Christine Kim

SEOUL (Reuters) – North Korean leader Kim Jong Un has ordered more solid-fuel rocket engines, state media reported on Wednesday, as he pursues nuclear and missile programs amid a standoff with Washington, but there were signs of tension easing.

The report carried by the KCNA news agency lacked the traditionally robust threats against the United States after weeks of unbridled acrimony, and U.S. President Donald Trump expressed optimism about a possible improvement in relations.

“I respect the fact that he is starting to respect us,” Trump said of Kim at a raucous campaign rally in Phoenix, Arizona.

“And maybe – probably not, but maybe – something positive can come about,” he said.

The KCNA report, about a visit by Kim to a chemical institute, came not long after U.S. Secretary of State Rex Tillerson appeared to make a peace overture, welcoming what he called recent restraint shown by the reclusive North.

Kim was briefed about the process of manufacturing intercontinental ballistic missile (ICBM) warhead tips and solid-fuel rocket engines during his tour of the Chemical Material Institute of the Academy of Defence Science, KCNA said.

“He instructed the institute to produce more solid-fuel rocket engines and rocket warhead tips by further expanding engine production process and the production capacity of rocket warhead tips and engine jets by carbon/carbon compound material,” KCNA said.

North Korea has conducted two nuclear tests and dozens of missile tests since the beginning of last year, significantly raising tension on the heavily militarized Korean peninsula and in defiance of U.N. Security Council resolutions. Two ICBM tests in July resulted in a new round of tougher global sanctions.

The last missile test on July 28 put the U.S. mainland in range, prompting heated exchanges that raised fears of a new conflict on the peninsula.

Tillerson, however, noted what he called the restraint the North had shown and said on Tuesday he hoped a path could be opening for dialogue.

SIMULATED WAR DRILLS

South Korea and the United States are conducting an annual military exercise this week involving computer simulations of a war.

The drills, which the North routinely describes as preparation for invasion, run until Aug. 31, and included South Korean a civil defense exercise on Wednesday that saw traffic halted, movie screenings interrupted and hundreds of thousands of people directed to underground shelters.

The KCNA report said Kim had given “special thanks and special bonus” to officials of the institute, calling them heroes. A photograph showed Kim in a gray pinstriped suit, smiling before a large flow chart that described some kind of manufacturing process.

There was none of the fiery rhetoric of recent weeks, when Kim threatened to fire missiles into the sea near the U.S. Pacific territory of Guam after Trump warned North Korea it would face “fire and fury” if it threatened the United States.

But there were some signs of tension after the United States imposed new North Korea-related sanctions, targeting Chinese and Russian firms and individuals for supporting North Korea’s weapons programs.

The U.S. Treasury designated six Chinese-owned entities, one Russian, one North Korean and two based in Singapore. They included a Namibia-based subsidiary of a Chinese company and a North Korean entity operating in Namibia.

China reacted with irritation, saying the United States should “immediately correct its mistake” of imposing unilateral sanctions on Chinese companies and individuals.

Chinese Foreign Ministry spokeswoman Hua Chunying said all sides, especially the United States and North Korea, needed to exercise restraint.

“We hope all sides can be brave enough to shoulder their responsibilities, show goodwill to each other and take correct actions to help further ease tensions,” she told a regular press briefing.

Singapore-registered companies Velmur Management and Transatlantic Partners were named in the U.S. Treasury’s sanction statement as providing oil to North Korea and working with designated individuals.

Singapore’s Ministry of Foreign Affairs said U.S. authorities had informed them prior to the designations and it was investigating.

“Singapore will strictly fulfil its obligations under the UNSCRs and international law, and not allow our financial system to be abused for the conduct of illicit activities,” the ministry said in a statement, referring to U.N. Security Council resolutions.

Both Velmur and Transatlantic are represented by business service providers in Singapore that manage their local registrations.

Rivkin, which provides secretarial services for Velmur, said it would end its business relationship with the company and file a suspicious transaction report on their dealings to the police.

A representative for MEA Business Consultancy, which is located at the registered address for Transatlantic, said it provided services for the firm but only for registration purposes.

The United States has long urged China to do more to rein in North Korea, which counts Beijing as its lone major ally. Data released on Wednesday showed China’s trade with North Korea fell in July from a month earlier as a ban on coal purchases from its isolated neighbor slowed imports.

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

(Additional reporting by Steve Holland in PHOENIX, David Brunnstrom and Doina Chiacu in WASHINGTON, Josephine Mason and Ben Blanchard in BEIJING and Fathin Ungku and Karishma Singh in SINGAPORE; Writing by Nick Macfie; Editing by Paul Tait, Robert Birsel)

North Korea shipments to Syria chemical arms agency intercepted: U.N. report

North Korea shipments to Syria chemical arms agency intercepted: U.N. report

By Michelle Nichols

UNITED NATIONS (Reuters) – Two North Korean shipments to a Syrian government agency responsible for the country’s chemical weapons program were intercepted in the past six months, according to a confidential United Nations report on North Korea sanctions violations.

The report by a panel of independent U.N. experts, which was submitted to the U.N. Security Council earlier this month and seen by Reuters on Monday, gave no details on when or where the interdictions occurred or what the shipments contained.

“The panel is investigating reported prohibited chemical, ballistic missile and conventional arms cooperation between Syria and the DPRK (North Korea),” the experts wrote in the 37-page report.

“Two member states interdicted shipments destined for Syria. Another Member state informed the panel that it had reasons to believe that the goods were part of a KOMID contract with Syria,” according to the report.

KOMID is the Korea Mining Development Trading Corporation. It was blacklisted by the Security Council in 2009 and described as Pyongyang’s key arms dealer and exporter of equipment related to ballistic missiles and conventional weapons. In March 2016 the council also blacklisted two KOMID representatives in Syria.

“The consignees were Syrian entities designated by the European Union and the United States as front companies for Syria’s Scientific Studies and Research Centre (SSRC), a Syrian entity identified by the Panel as cooperating with KOMID in previous prohibited item transfers,” the U.N. experts wrote.

SSRC has overseen the country’s chemical weapons program since the 1970s.

The U.N. experts said activities between Syria and North Korea they were investigating included cooperation on Syrian Scud missile programs and maintenance and repair of Syrian surface-to-air missiles air defense systems.

The North Korean and Syrian missions to the United Nations did not immediately respond to a request for comment.

The experts said they were also investigating the use of the VX nerve agent in Malaysia to kill the estranged half-brother of North Korea’s leader Kim Jong Un in February.

North Korea has been under U.N. sanctions since 2006 over its ballistic missile and nuclear programs and the Security Council has ratcheted up the measures in response to five nuclear weapons tests and four long-range missile launches.

Syria agreed to destroy its chemical weapons in 2013 under a deal brokered by Russia and the United States. However, diplomats and weapons inspectors suspect Syria may have secretly maintained or developed a new chemical weapons capability.

During the country’s more than six-year long civil war the Organisation for the Prohibition of Chemical Weapons has said the banned nerve agent sarin has been used at least twice, while the use of chlorine as a weapon has been widespread. The Syrian government has repeatedly denied using chemical weapons.

(Reporting by Michelle Nichols; Editing by Tom Brown)

Japan urges pressure on North Korea as U.S. spells out choices

FILE PHOTO: Japanese Foreign Minister Taro Kono gestures during a news conference on the sidelines of the 50th Association of Southeast Asia Nations (ASEAN) Regional Forum (ARF) in Manila, Philippines August 7, 2017. REUTERS/Dondi Tawatao

By Kiyoshi Takenaka and Stephanie Nebehay

TOKYO/GENEVA (Reuters) – Japan said on Tuesday the world must keep pressure on North Korea to rein in its nuclear and missile programs as the United States spelt out the choice for impoverished Pyongyang between belligerence and prosperity.

North Korea has pursued its weapons tests in defiance of U.N. Security Council resolutions and sanctions and ignored all calls, including from major ally China, to stop, prompting a bellicose exchange of rhetoric between the North and the United States.

North Korea justifies its weapons programs, including its recent threat to fire missiles towards the U.S. Pacific territory of Guam, by pointing to perceived U.S. hostility, such as military exercises with South Korea this week.

Japanese Foreign Minister Taro Kono said pressure must be maintained until the North demonstrated it would give up its nuclear program.

“It’s not the time to discuss (the resumption of) six-party talks,” Kono said, referring to international negotiations involving both Koreas, the United States, Russia, China and Japan for the denuclearization of the Korean peninsula.

“It’s time to exert pressure,” he told reporters.

U.S. President Donald Trump’s top priority is to protect the United States and its allies against the “growing threat” from North Korea and America is ready to use “the full range of capabilities” at its disposal, a U.S. envoy said.

U.S. disarmament ambassador Robert Wood told a U.N.-sponsored Conference on Disarmament in Geneva the “path to dialogue still remains an option” for Pyongyang and it had the choice between poverty and belligerence and prosperity and acceptance.

There was no immediate reply from the North Korean delegate in the room.

‘CRAZY’ TO SHARE TIMELINE

The head of the U.S. military’s Pacific Command said diplomacy was key.

Admiral Harry Harris was in South Korea to observe annual joint military drills with the South Korean military, which the North called a step towards nuclear conflict masterminded by U.S. and South Korean “war maniacs”.

“So we hope and we work for diplomatic solutions to the challenge presented by Kim Jong Un,” Harris told reporters at a U.S. air base in Osan, about an hour from the capital, Seoul, referring to the North Korean leader.

He said diplomacy was “the most important starting point” in response to the North’s threat, when asked what actions by North Korea might trigger a preemptive U.S. strike against it.

“As far as a timeline, it would be crazy for me to share with you those tripwires in advance. If we did that, it would hardly be a military strategy,” he said.

The United States and South Korea began the long-planned exercises on Monday, called the Ulchi Freedom Guardian, which the allies have said are purely defensive.

The drills end on Aug. 31 and involve tens of thousands of troops as well as computer simulations designed to prepare for war with a nuclear-capable North Korea.

A North Korean army spokesman repeated a threat of retaliation against the United States for readying a preemptive strike and a war of aggression, using the drills as an excuse to mount such an attack.

“The U.S. will be wholly held accountable for the catastrophic consequences to be entailed by such reckless aggressive war maneuvers, as it chose a military confrontation,” the unidentified spokesman said in comments carried by the North’s official KCNA news agency.

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

(Additional reporting by Christine Kim in Pyeongtaek, South Korea, Tim Kelly in Tokyo; Writing by Jack Kim and Nick Macfie; Editing by Robert Birsel)

What will Kim do next? Sixth nuclear test seen critical for North Korea

North Korean leader Kim Jong Un inspected the Command of the Strategic Force of the Korean People's Army (KPA) in an unknown location in North Korea in this undated photo released by North Korea's Korean Central News Agency (KCNA) on August 15, 2017. KCNA/via REUTERS

By Christine Kim and David Brunnstrom

SEOUL/WASHINGTON (Reuters) – North Korea says it has developed intercontinental missiles capable of targeting any place in the United States.

Now comes the hard part of fulfilling the declared goal of its leader Kim Jong Un: perfecting a nuclear device small and light enough to fit on the missile without affecting its range as well as making it capable of surviving re-entry into the earth’s atmosphere.

To do that, weapons experts say, the isolated state needs to carry out at least another nuclear test, its sixth, and more tests of long-range missiles.

North Korea’s two tests of an intercontinental ballistic missile (ICBM) last month likely carried a payload lighter than any nuclear warhead it is currently able to produce, the experts said.

One way to have a lighter warhead would be to concentrate on developing a thermonuclear device, or hydrogen bomb, which would offer much greater explosive yield relative to size and weight.

Pyongyang claims to have tested a hydrogen bomb, but this has not been proven, said Hans Kristensen, director of the Nuclear Information Program at the Federation of American Scientists.

“Doing so would take several more nuclear tests,” he said.

“The advantage of a thermonuclear warhead is that it packs a lot more power into less weight.”

Choi Jin-wook, a professor of international relations at Japan’s Ritsumeikan University and former president of South Korea’s state-run Korea Institute for National Unification, said a sixth nuclear test would be essential for North Korea to develop an operational nuclear-tipped ICBM.

“In order to make a nuclear weapon deployable it has to be small and light, but North Korea doesn’t seem to have this technology,” he said.

South Korea’s president said on Thursday Pyongyang would be “crossing a red line” if it put a nuclear warhead on an intercontinental ballistic missile, and U.S. President Donald Trump has warned that North Korea would face “fire and fury” if it threatened the United States.

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

KIM MUST WEIGH RISKS

North Korea is a highly secretive nation and predictions of what it will do next are often little more than conjecture.

Still, Kim is likely to be carefully weighing the timing of even a new nuclear test because it will antagonize North Korea’s sole major ally, China, and could trigger even tougher U.N. economic sanctions than those that followed ICBM tests in July.

A U.S. official, who asked not to be named, said that while periodic activity has been seen at North Korea’s Punggye-ri nuclear test site, he had not seen movement there for over a month and there were no current signs of an imminent test.

A second U.S. official added that North Korea has had parts in place for a nuclear launch for months, but no new activity had been seen recently.

Besides developing a miniaturized hydrogen bomb, some experts say it appears Kim’s rocket scientists have yet to master the technology to protect a warhead from the extreme heat and pressure of re-entering the earth’s atmosphere after an intercontinental flight

South Korea believes North Korea will need at least another one or two more years to obtain that re-entry technology, Seoul’s vice defense minister said on Sunday.

“Miniaturization for ballistic missiles is only one of the many challenges of targeting the U.S. with an ICBM,” said David Albright, a physicist and founder of the non-profit Institute for Science and International Security in Washington.

“The re-entry vehicle has to survive and the warhead work,” he said. “I am skeptical that North Korea has mastered all these steps.”

Among North Korea’s capabilities in the field, U.S. intelligence officials have said it likely can produce its own missile engines and does not need to rely on imports.

ESSENTIAL TO SURVIVAL

After Kim Jong Un ramped up the pace of weapons development last year with numerous missile launches as well as two nuclear tests in January and September 2016, some observers had expected a sixth nuclear test as early as this January.

Instead, Pyongyang has spent most of the year testing various types of missiles. After its first and second ICBM tests in July, it threatened to land missiles in the vicinity of Guam, a U.S. Pacific territory, drawing a stern warning from Trump.

Pyongyang has since said Kim has delayed his decision on Guam.

Pyongyang faces significantly tougher sanctions, including from China, if it conducts another nuclear test, said Moon Chung-in, a special adviser on foreign affairs and national security to South Korean President Moon Jae-in.

“If North Korea carries out a sixth nuclear weapons test, China will likely cut oil supplies to North Korea. I believe China has strongly warned North Korea not to conduct another nuclear test,” Moon said.

The Punggye-ri site is just 60 miles (100 km) from the border with China and 125 miles (200 km) from Russia, and past tests have angered both countries and caused them to back increasingly tough U.N. sanctions.

Kim Jong Un, however, sees the ability to threaten the United States as essential to the survival of his personal rule.

“North Korea will conduct a sixth nuclear test in order to bring the United States to negotiations,” said Yoo Ho-yeol, professor of unification and diplomacy at Seoul’s Korea University.

“I don’t know exactly when (it will happen), but a sixth nuclear test is a less dangerous option for North Korea than firing missiles towards Guam.”

(Additional reporting by Heekyong Yang and Ju-min Park in Seoul, John Walcott and Idrees Ali in Washington, Writing by Soyoung Kim; Editing by Raju Gopalakrishnan)

North Korea delays Guam missile firing, U.S. says dialogue up to Kim

North Korea delays Guam missile firing, U.S. says dialogue up to Kim

By Christine Kim and Yeganeh Torbati

SEOUL/WASHINGTON (Reuters) – North Korean leader Kim Jong Un has delayed a decision on firing missiles towards Guam while he waits to see what the United States does, the North’s state media reported on Tuesday as the United States said any dialogue was up to Kim.

The United States and South Korea have prepared for more joint military drills, which has infuriated the North, and experts warned it could still go ahead with a provocative plan.

In his first public appearance in about two weeks, Kim inspected the command of the North’s army on Monday, examining a plan to fire four missiles aimed at landing near the U.S. Pacific territory of Guam, the official KCNA news agency reported.

“He said that if the Yankees persist in their extremely dangerous reckless actions on the Korean peninsula and in its vicinity, testing the self-restraint of the DPRK, the latter will make an important decision as it already declared,” KCNA said.

The DPRK stands for North Korea’s official name, the Democratic People’s Republic of Korea.

Pyongyang’s plans to fire missiles near Guam prompted a surge in tensions in the region last week, with U.S. President Donald Trump saying the U.S. military was “locked and loaded” if North Korea acted unwisely.

But U.S. officials have taken a gentler tone in recent days.

Asked by reporters on Tuesday about the North Korean delay, Secretary of State Rex Tillerson said it was up to Kim to decide if he wants to talk to the United States.

“We continue to be interested in finding a way to get to dialogue but that’s up to him,” Tillerson told reporters.

In photos released with the KCNA report, Kim was seen holding a baton and pointing at a map showing a flight path for the missiles appearing to start from North Korea’s east coast, flying over Japan toward Guam. North Korea has often threatened to attack the United States and its bases and released similar photos in the past but never followed through.

South Korean President Moon Jae-in said on Tuesday his government would prevent war by all means.

“Military action on the Korean peninsula can only be decided by South Korea and no one else can decide to take military action without the consent of South Korea,” Moon said in a speech to commemorate the anniversary of the nation’s liberation from Japanese military rule in 1945.

“The government, putting everything on the line, will block war by all means,” Moon said.

Asian shares rose for a second day on Tuesday and the dollar firmed after Kim’s comments. U.S. stocks were flat at midday on Tuesday.

Speaking to his Russian counterpart Sergei Lavrov, Chinese Foreign Minister Wang Yi said it was urgent the United States and North Korea “put the brakes” on mutually irritating words and actions, China’s Foreign Ministry said.

‘NO STEPPING BACK’

Japan will seek further reassurance from Washington in meetings between Japan’s defense chief and foreign minister and their U.S. counterparts on Thursday.

“The strategic environment is becoming harsher and we need to discuss how we will respond to that,” a Japanese foreign ministry official said in a briefing in Tokyo.

“We will look for the U.S. to reaffirm it defense commitment, including the nuclear deterrent.”

The Liberation Day holiday, celebrated by both North and South, will be followed next week by joint U.S.-South Korean military drills.

North Korea has persisted with its nuclear and missile programs to ward off perceived U.S. hostility, in defiance of U.N. Security Council resolutions and sanctions.

China, North Korea’s main ally and trading partner, has repeatedly urged Pyongyang to halt its weapons program and at the same time urged South Korea and the United States to stop military drills to lower tensions.

Kim Dong-yub, a professor and military expert at Kyungnam University’s Institute of Far Eastern Studies in Seoul, urged caution in assuming North Korea was bluffing with its missile threats.

“There is no stepping back for North Korea. Those who don’t know the North very well fall into this trap every time (thinking they are easing threats) but we’ve seen this before.”

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

North Korea is currently holding three U.S. citizens it accuses of espionage or hostile acts, but now is not the right time to discuss them, KCNA reported, cited a foreign ministry spokesman.

Pyongyang has used detainees to extract concessions, including high-profile visitors from the United States, which has no formal diplomatic relations with North Korea.

On Guam, home to a U.S. air base, a Navy installation, a Coast Guard group and roughly 6,000 U.S. military personnel, residents expressed relief at the lessening of tensions.

“I’m reading between the lines that I don’t see an imminent threat,” Guam Lieutenant Governor Ray Tenorio told a media briefing in the island’s capital of Hagatna.

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

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

For a graphic on Americans detained by North Korea, click: http://apac1.proxy.cp.extranet.thomsonreuters.biz/fingfx/gfx/rngs/USA-NORTHKOREA/0100412Z2B4/northkorea-detainee.jpg

(Additional reporting by Soyoung Kim and Jane Chung in Seoul, Tim Kelly in Tokyo, Ben Blanchard in Beijing and Joseph Campbell in Guam; Writing by Lincoln Feast and Alistair Bell; Editing by Michael Perry, Nick Macfie and Jeffrey Benkoe)

North Korea holds off on Guam missile plan as China urges ‘brakes’ on rhetoric

North Korea holds off on Guam missile plan as China urges 'brakes' on rhetoric

By Christine Kim and Idrees Ali

SEOUL/WASHINGTON (Reuters) – North Korea’s leader has delayed a decision on firing missiles towards Guam while he waits to see what the United States does next, the North’s state media said on Tuesday, as South Korea’s president said Seoul would seek to prevent war by all means.

Signs of an easing in tension on the Korean peninsula helped stock markets rally for a second day running even as the United States and South Korea prepared for more joint military drills, which infuriate the North, and experts warned it could still go ahead with its provocative plan.

In his first public appearance in about two weeks, North Korean leader Kim Jong Un inspected the command of the North’s army on Monday, examining a plan to fire four missiles to land near the U.S. Pacific territory of Guam, the official KCNA said in a report.

“He said that if the Yankees persist in their extremely dangerous reckless actions on the Korean peninsula and in its vicinity, testing the self-restraint of the DPRK, the latter will make an important decision as it already declared,” the report said.

The DPRK stands for North Korea’s official name, the Democratic People’s Republic of Korea.

In photos released with the KCNA report, Kim was seen holding a baton and pointing at a map showing a flight path for the missiles appearing to start from North Korea’s east coast, flying over Japan towards Guam. North Korea has often threatened to attack the United States and its bases and released similar photos in the past but never followed through.

Pyongyang’s plans to fire missiles near Guam prompted a surge in tensions in the region last week, with U.S. President Donald Trump saying the U.S. military was “locked and loaded” if North Korea acted unwisely.

South Korean President Moon Jae-in said on Tuesday there would be no military action without Seoul’s consent and his government would prevent war by all means.

“Military action on the Korean peninsula can only be decided by South Korea and no one else can decide to take military action without the consent of South Korea,” Moon said in a speech to commemorate the anniversary of the nation’s liberation from Japanese military rule in 1945.

“The government, putting everything on the line, will block war by all means,” Moon said.

Speaking to his Russian counterpart Sergei Lavrov, Chinese Foreign Minister Wang Yi said it was urgent the United States and North Korea “put the brakes” on mutually irritating words and actions to lower temperatures and prevent an “August crisis”, China’s Foreign Ministry said in a statement.

NUCLEAR DETERRENT

Japan will be seeking further reassurance from Washington in meetings between Japan’s defense chief and foreign minister and their U.S. counterparts on Thursday.

“The strategic environment is becoming harsher and we need to discuss how we will respond to that,” a Japanese foreign ministry official said in a briefing in Tokyo.

“We will look for the U.S. to reaffirm it defense commitment, including the nuclear deterrent.”

The Liberation Day holiday, celebrated by both North and South, will be followed next week by the joint U.S.-South Korean military drills.

North Korea has persisted with its nuclear and missile programs, to ward off perceived U.S. hostility, in defiance of U.N. Security Council resolutions and sanctions.

China, North Korea’s main ally and trading partner, has repeatedly urged Pyongyang to halt its weapons program and at the same time urged South Korea and the United States to stop military drills to lower tensions.

On Tuesday, Chinese Foreign Ministry spokeswoman Hua Chunying said the crisis was approaching a critical juncture and urged all sides in the standoff to help “put out the flames” and not add fuel to the fire.

Hua said she noted comments by U.S. Defense Secretary Jim Mattis and Secretary of State Rex Tillerson about using diplomacy to resolve the issue, saying China hoped these words can be put into action.

“We also call on North Korea to echo this in response,” Hua told a daily news briefing.

Asian shares rose for a second day on Tuesday and the dollar firmed after Kim’s comments further eased tension and prompted investors to move back into riskier assets after a sharp selloff last week. [MKTS/GLOB]

Kim Dong-yub, a professor and a military expert at Kyungnam University’s Institute of Far Eastern Studies in Seoul, urged caution in assuming North Korea was bluffing with its missile threats.

“There is no stepping back for North Korea. Those who don’t know the North very well fall into this trap every time (thinking they are easing threats) but we’ve seen this before.”

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

North Korea is currently holding three U.S. citizens it accuses of espionage or hostile acts but now was not the right time to discuss them, KCNA cited a foreign ministry spokesman as saying in a separate report.

Pyongyang has in the past used detainees to extract concessions, including high-profile visits from the United States, which has no formal diplomatic relations with North Korea.

U.S. officials have in recent days played down the risk of an imminent conflict while stressing their preparedness to respond militarily to any attack from North Korea.

Mattis said on Monday the U.S. military would know the trajectory of a missile fired from North Korea within moments and would “take it out” if it looked like it would hit the U.S. Pacific territory.

“The bottom line is, we will defend the country from an attack; for us (U.S. military) that is war,” Mattis said.

On Guam, home to a U.S. air base, a Navy installation, a Coast Guard group and roughly 6,000 U.S. military personnel, residents expressed some relief at the lessening of tensions.

“I’m reading between the lines that I don’t see an imminent threat,” Guam Lieutenant Governor Ray Tenorio told a media briefing in the island’s capital of Hagatna.

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

(Additional reporting by Soyoung Kim and Jane Chung in Seoul, Tim Kelly in Tokyo, Ben Blanchard in Beijing and Joseph Campbell in Guam; Writing by Lincoln Feast; Editing by Michael Perry and Nick Macfie)

China seethes on sidelines amid latest North Korea crisis

China seethes on sidelines amid latest North Korea crisis

By Ben Blanchard and Michael Martina

BEIJING (Reuters) – Angered as the United States and its allies ignore Chinese calls to calm tensions over North Korea, and distracted by domestic concerns, China is largely sitting out the latest crisis with nuclear-armed Pyongyang.

While a conflict on the Korean peninsula would affect China, and in worst-case scenarios unleash a radioactive cloud or waves of refugees into its northeast, Beijing has kept a low profile as tension has escalated in recent days.

North Korea dismissed on Thursday warnings by U.S. President Donald Trump that it would face “fire and fury” if it threatened the United States as a “load of nonsense”, and outlined plans for a missile strike near the Pacific territory of Guam.

China, whose regular daily foreign ministry press briefings are suspended for a two week summer holiday, has said little in public about the situation this week, reiterating its usual calls for calm and restraint.

President Xi Jinping has been out of the public eye for more than a week, likely because he is at a secretive Communist Party conclave in the seaside resort of Beidaihe preparing for a key party congress in the autumn, diplomats say.

One Beijing-based Asian diplomat said China was also distracted by a protracted border dispute with India.

“China has different priorities and it’s clear what they are,” said the diplomat, speaking on condition of anonymity.

State media has as usual called for dialogue to end the crisis, but has also lambasted the United States and its allies for doing little to damp down the flames.

The official Xinhua news agency on Thursday accused Japan of “fishing in troubled waters”, using North Korea as an excuse for its own remilitarization. Japan issued a defense white paper this week that warned it was possible that North Korea had already developed nuclear warheads.

Also Thursday, the influential Chinese tabloid Global Times said Washington “only wants to heighten the sanctions and military threats against Pyongyang”.

MAD OVER THAAD

Seoul has fared little better, with China directing anger its way over South Korea’s deployment of the Terminal High Altitude Area Defense (THAAD) anti-missile system. Beijing says THAAD threatens its own security, fearing that its powerful radar will see far into China, and will do nothing to bring North Korea back to talks.

“China is not too worried that the United States might suddenly attack North Korea. It is worried about THAAD,” said Sun Zhe, co-director of the China Initiative of Columbia University’s School of International and Public Affairs.

China remains North Korea’s most important ally and trading partner, despite Beijing’s anger at Pyongyang’s missile and nuclear programs.

China has signed up for tough United Nations sanctions that were agreed on Saturday and says it is committed to enforcing them.

Yet Beijing has been upset by complaints from Washington and Tokyo it is not doing enough to rein in North Korea. The foreign ministry last month called for an end to what it termed the “China responsibility theory”.

China also believes its influence over North Korea, whose relationship China used to describe as “close as lips and teeth,” is limited.

“China has never ‘owned’ North Korea, and North Korea has never listened to China’s suggestions,” said Zhang Liangui, a North Korea expert at China’s Central Party School, which trains rising officials.

“Neither North Korea nor the United States listens to China. They’re too busy heading down the path to a military clash. There’s not much China can do. China can’t stop North Korea and it can’t stop the United States.”

China’s recent relationship with North Korea soured around 2013 as Pyongyang stepped up its missile and nuclear programs, rejecting Chinese efforts to engage the country economically and encourage it to open up.

Chinese officials have for years doubted the efficacy of sanctions, although Foreign Minister Wang Yi said this week that they were needed. However, he said the final aim should be to resolve the issue via talks as only that would ensure lasting peace and stability.

Wang Dong, associate professor of international studies at the elite Peking University, said China had tried hard to prevent the situation from getting out of control. He also said Trump’s domestic problems could play into the current crisis, referring to the U.S. investigation into possible Russian meddling in last year’s presidential election.

“When facing increasingly difficult domestic problems, Trump might have an increasing incentive to do something. Maybe he initially would want a limited military conflict,” Wang said. “So people are certainly worried about that.”

(Editing by Philip McClellan)

North Korea considers missile strike on Guam after Trump’s ‘fire and fury’ warning

North Korea considers missile strike on Guam after Trump's 'fire and fury' warning

By Maureen N. Maratita and Christine Kim

GUAM/SEOUL (Reuters) – North Korea said on Wednesday it is considering plans for a missile strike on the U.S. Pacific territory of Guam, just hours after President Donald Trump told the North that any threat to the United States would be met with “fire and fury”.

The sharp increase in tensions rattled financial markets and prompted warnings from U.S. officials and analysts not to engage in rhetorical slanging matches with North Korea, which regularly threatens to destroy the United States.

North Korea said it was “carefully examining” a plan to strike Guam, which is home to about 163,000 people and a U.S. military base that includes a submarine squadron, an airbase and a Coast Guard group.

A Korean People’s Army spokesman said in a statement carried by state-run KCNA news agency the plan would be put into practice at any moment, once leader Kim Jong Un made a decision.

Guam Governor Eddie Calvo dismissed the threat and said the island was prepared for “any eventuality” with strategically placed defenses. He said he had been in touch with the White House and there was no change in the threat level.

“Guam is American soil … We are not just a military installation,” Calvo said in an online video message.

North Korea, which is pursuing missile and nuclear weapons programs in defiance of U.N. Security Council resolutions, also accused the United States of devising a “preventive war” and said in another statement that any plans to execute this would be met with an “all-out war, wiping out all the strongholds of enemies, including the U.S. mainland”.

Washington has warned it is ready to use force if needed to stop North Korea’s ballistic missile and nuclear programs but that it prefers global diplomatic action, including sanctions. The U.N. Security Council unanimously imposed new sanctions on North Korea on Saturday.

Trump issued his strongest warning yet for North Korea in comments to reporters in New Jersey on Tuesday.

“North Korea best not make any more threats to the United States. They will be met with fire and fury like the world has never seen,” Trump said.

U.S. Secretary of State Rex Tillerson, before landing in Guam on a pre-arranged visit, said Trump was trying to send a strong message.

“So I think the president, what the president is doing, is sending a strong message to North Korea in language that Kim Jong Un would understand, because he doesn’t seem to understand diplomatic language,” Tillerson told reporters.

Just moments after Tillerson’s remarks were reported, Trump hammered home his tough talk in a Twitter post about the U.S. nuclear arsenal, in what looked like another warning to North Korea.

“My first order as President was to renovate and modernize our nuclear arsenal,” he said. “It is now far stronger and more powerful than ever before.”

China, North Korea’s closest ally despite Beijing’s anger at Pyongyang’s missile and nuclear programs, described the situation as “complex and sensitive”, and urged calm and a return to talks.

“China calls on all sides to uphold the main direction of a political resolution to the Korean peninsula nuclear issue, and avoid any words or actions that may intensify the problem and escalate the situation,” it said in a statement sent to Reuters, repeating its customary stance.

“‘BLACK SWAN’ EVENT”

North Korea has made no secret of its plans to develop a nuclear-tipped missile able to strike the United States and has ignored all calls to halt its weapons programs.

Pyongyang says its intercontinental ballistic missiles (ICBMs) are a legitimate means of defense against perceived U.S. hostility, including joint military drills with South Korea.

The standoff drove investors out of stocks on Wednesday and into the safety of the yen, Swiss franc, gold and government debt. South Korea’s benchmark index <.KS11> and Japan’s Nikkei <.N225> both closed down more than 1 percent. [MKTS/GLOB]

“Tensions will continue to mount and could eventually develop into a ‘black swan’ event that the markets are not prudently considering,” Steve Hanke, professor of Applied Economics at Johns Hopkins University, told the Reuters Global Markets Forum.

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

The South Korean capital, Seoul, is home to roughly 10 million people and within range of massed North Korean rockets and artillery, which would be impossible to destroy in a first U.S. strike.

Tens of thousands of U.S. troops remain stationed in South Korea and in nearby Japan, the only country to have been attacked with nuclear weapons. Wednesday marked the 72nd anniversary of the atomic bombing of the city of Nagasaki by the United States.

“WAR, WAR, WAR”

A senior official at South Korea’s presidential Blue House rejected talk of a crisis on the Korean peninsula, saying Seoul saw a high possibility of resolving the issue peacefully.

North Korea needed to realize its provocations are making the country more isolated and it should respond to the South’s proposal for dialogue, the official said.

In Dandong, a Chinese trading hub across the border from North Korea, residents said they were unperturbed by the escalating rhetoric.

“North Korea always talks about war, war, war, but it never happens,” said a restaurant owner who asked to be identified only by her surname, Yang.

“We now live in peaceful times. But if war does break out it will be us ordinary people that suffer.”

Tension in the region has risen since North Korea carried out two nuclear bomb tests last year and two ICBM tests in July.

Japanese fighters conducted joint air drills with U.S. supersonic bombers in Japanese skies close to the Korean peninsula on Tuesday, Japan’s Air Self Defence Force said.

On Monday, two U.S. B-1 bombers flew from Guam over the Korean peninsula as part of its “continuous bomber presence”, a U.S. official said, in a sign of the island’s strategic importance.

DEEPLY TROUBLING

Guam, popular with Japanese and South Korean tourists, is protected by the advanced U.S. Terminal High Altitude Area Defense (THAAD) anti-missile system, deployed in South Korea.

“I know they’ve not been successful,” Vilma Quichocho, a treasurer at Guam’s Department of Administration, said of previous attempts to launch missiles from North Korea. “But now they’re talking about nuclear warheads and it’s kind of scary.”

Madeleine Z. Bordallo, the U.S. Congresswoman for Guam, said she was confident U.S. forces could protect it from the “deeply troubling” North Korean nuclear threat. She called on Trump to show “steady leadership” and work with the international community to lower tension.

Seoul resident Kim Sung-un, 29, said North Korea tended to make a lot of threats about missile attacks, but did not follow through.

“So I am leaning toward going to Guam, but also at the same time, I can’t help feeling anxious about it,” she said.

Republican U.S. Senator John McCain said Trump should tread cautiously when issuing threats, unless he is prepared to act.

“I take exception to the president’s comments because you’ve got to be sure you can do what you say you’re going to do,” he said in a radio interview.

Former U.S. diplomat Douglas Paal, now with the Carnegie Endowment for International Peace think tank in Washington, said Trump should not get into a war of words with Pyongyang.

“It strikes me as an amateurish reflection of a belief that we should give as we get rhetorically. That might be satisfying at one level, but it takes us down into the mud that we should let Pyongyang enjoy alone,” said Paal, who served as a White House official under previous Republican administrations.

In a small show of goodwill, North Korea said on Wednesday it had released a Canadian pastor serving a life sentence there on humanitarian grounds.

There was no obvious direct connection between the release and the standoff with the United States, but North Korea has in the past attracted the attention of Washington, and visits by high-profile Americans, with the detention and release of U.S. citizens.

(Additional reporting by Soyoung Kim in SEOUL, Amy Miyazaki, Linda Sieg and Tim Kelly in TOKYO, Philip Wen in DANDONG, Martin Petty in MANILA, James Oliphant, Doina Chiacu, Susan Heavey, John Walcott, Idrees Ali and David Brunnstrom in WASHINGTON, Rodrigo Campos in NEW YORK, and Divya Chowdhury in MUMBAI; Writing by Lincoln Feast; Editing by Paul Tait and Nick Macfie)

Japan defense review warns of enhanced North Korea threats

Japan's Defence Minister Itsunori Onodera attends a news conference at Defence Ministry in Tokyo, Japan August 8, 2017. REUTERS/Issei Kato

By Kiyoshi Takenaka

TOKYO (Reuters) – Japan warned on Tuesday against the acute threat posed by North Korea’s weapons programs as Pyongyang’s continued series of missile and nuclear tests, in defiance of U.N. sanctions, brings technological progress to the reclusive state.

Japan released its annual Defence White Paper after North Korea fired two intercontinental ballistic missiles (ICBMs) last month on lofted trajectories to land off Japan’s west coast.

“It is conceivable that North Korea’s nuclear weapons program has already considerably advanced and it is possible that North Korea has already achieved the miniaturization of nuclear weapons and has acquired nuclear warheads,” the Defence Ministry said.

“Since last year, when it forcibly implemented two nuclear tests and more than 20 ballistic missile launches, the security threats have entered a new stage,” it added in the 563-page document.

North Korea’s latest ICBM test showed Pyongyang may now be able to reach most of the continental United States, two U.S. officials have told Reuters.

The growing threat has prompted Japanese municipalities to hold evacuation drills in case of a possible missile attack, and boosted demand for nuclear shelters.

Missiles launched on a lofted trajectory were difficult to intercept, the defense ministry said.

With North Korea pressing ahead with missile tests, a group of ruling party lawmakers led by Itsunori Onodera, who became defense minister on Thursday, urged Prime Minister Shinzo Abe in March to consider acquiring the capability to hit enemy bases.

If realized, that would be a drastic change in Japan’s defense posture. Tokyo has so far avoided taking the controversial and costly step of acquiring bombers or cruise missiles with the range to strike other countries.

“North Korea’s missiles represent a deepening threat. That, along with China’s continued threatening behavior in the East China Sea and South China Sea, is a major concern for Japan,” Onodera told a news briefing in Tokyo.

The ministry said the number of Japan’s jet scrambles against Chinese aircraft hit a record in the year to March 2017. The first confirmed advancement of China’s aircraft carrier to the Pacific also came in December 2016.

“There is a possibility that their naval activities, as well as air force activities, will pick up pace in the Sea of Japan from now on,” the ministry said.

“We need to keep a close eye on the Chinese naval force’s activity,” it added.

Tokyo’s ties with Beijing have long been plagued by a territorial dispute over a group of tiny, uninhabited East China Sea islets and the legacy of Japan’s wartime aggression.

Chinese Foreign Minister Wang Yi dismissed the white paper, telling state television in Manila, which he visited for a regional security meeting, that Japan was “playing the same old tune”.

(Reporting by Kiyoshi Takenaka; Additional reporting by Tim Kelly, and Ben Blanchard in BEIJING; Editing by Paul Tait and Clarence Fernandez)

North Korea fires missile into sea off east coast in unusual night test

North Korean leader Kim Jong Un watches the test of a new-type anti-aircraft guided weapon system organised by the Academy of National Defence Science in this undated photo released by North Korea's Korean Central News Agency (KCNA) May 28, 2017. KCNA/via REUTERS

SEOUL (Reuters) – North Korea fired a ballistic missile on Friday in an unusual late-night test launch from its northern Jangang province that landed in the sea off its east coast, possibly in Japan’s exclusive economic zone, South Korea and Japan said.

The launch took place at 11:41 p.m. (1441 GMT), an official at South Korea’s Office of the Joint Chiefs of Staff said. The U.S. Defense Department also confirmed the launch as a ballistic missile, saying it was making further assessments.

South Korean President Moon Jae-in called a National Security Council meeting for 1 a.m. Saturday, his office said, and Japanese Prime Minister Shinzo Abe also said a National Security Council meeting would be convened.

Japanese Chief Cabinet Secretary Yoshihide Suga said that the North Korean missile flew for about 45 minutes.

(Reporting by Jack Kim in Seoul, William Mallard in Tokyo and Idrees Ali in Washington; Editing by Raju Gopalakrishnan)