Regional nations plus U.S. condemn Venezuela’s new constituent assembly

Delcy Rodriguez (C), president of the National Constituent Assembly, speaks during a meeting of the Truth Commission in Caracas, Venezuela August 16, 2017. REUTERS/Ueslei Marcelino

By Hugh Bronstein and Mitra Taj

CARACAS/LIMA (Reuters) – A group of 12 regional nations plus the United States rejected Venezuela’s new government-allied legislative superbody, saying they would continue to regard the opposition-controlled congress as the country’s only legitimate law maker.

The move came after an announcement on Friday that the newly-created constituent assembly, elected in late July to re-write the crisis-hit country’s constitution, would supersede congress and pass laws on its own.

The Lima Group, including Peru, Argentina, Brazil, Canada, Colombia and seven other regional governments, late on Friday joined the United States in criticizing the assembly for “usurping” the powers of Venezuela’s tradition congress.

The congress has been controlled by the opposition since 2016, but has been neutered by President Nicolas Maduro’s loyalist Supreme Court, which has tossed out almost every law it has passed.

“We reiterate our rejection of the constituent assembly and its actions,” the 12-member Lima Group said in a statement published by Peru’s foreign ministry.

“We ratify our full support for the Venezuelan congress.” it added.

Maduro has slapped the opposition with several measures blaming it for the unrest that killed more than 125 people in recent months as security forces met rock-throwing protesters with rubber bullets and water cannon. The U.N. says government troops used excessive force in many cases.

One of the measures is the assembly’s new truth commission that will investigate opposition candidates running in October gubernatorial elections, to see if they were involved in the deadly protests. Considering that many opposition figures supported the demonstrations, the commission could hobble their efforts at winning governorships in the upcoming vote.

Anti-government marches have stalled since the assembly was inaugurated on Aug. 5. The opposition was stunned by a threat of U.S. military action in Venezuela issued by President Donald Trump on Aug. 11.

The threat played into Maduro’s hands by supporting his oft-repeated assertion that the U.S. “empire” wants to invade Venezuela to steal its oil. The idea had been easily dismissed as absurd by opposition and U.S. officials before Trump’s surprise statement that “a military option” was on the table for dealing with Venezuela’s political crisis.

Over the days ahead the assembly says it will pass a law against “expressions of hate and intolerance,” which rights groups say is so vaguely worded it could allow for the prosecution of almost anyone who voices dissent.

(Reporting by Hugh Bronstein and Mitra Taj; Editing by Andrew Bolton)

Violence prompts U.S. Congress to discuss militant threats

FILE PHOTO: U.S. Representative Michael McCaul (R-TX) speaks to the news media after a meeting at Trump Tower to speak with U.S. President-elect Donald Trump in New York, U.S., November 29, 2016. REUTERS/Lucas Jackson

WASHINGTON (Reuters) – A U.S. congressional panel next month will hold a hearing on violent extremism, including threats from domestic militants, following a white supremacist rally in Charlottesville, Virginia, that turned deadly.

The chairman of the U.S. House of Representatives Homeland Security Committee, Republican Michael McCaul, announced the Sept. 12 hearing in a letter to the panel’s top Democrat, Bennie Thompson.

The committee holds a hearing once a year, around the anniversary of the Sept. 11, 2001, attacks, to discuss worldwide threats.

A committee aide said the Charlottesville protests had prompted the decision to broaden the hearing to include threats from domestic militants.

But Thompson said the move was “not adequate or appropriate” to address his request for a hearing on threats from white supremacists and neo-Nazi groups.

“The September 12 hearing to cover worldwide threats is an annual hearing that was already scheduled prior to the domestic attacks this weekend,” Thompson said. “It will not allow us to go into the depth necessary to address the far-ranging and multifaceted aspects of the threat posed by domestic terrorist threats from white supremacist and neo-Nazi groups.”

The Homeland Security Committee will invite leaders of the Homeland Security Department, the Federal Bureau of Investigation and the National Counterterrorism Center, McCaul said.

“We must stand together and reject racism, bigotry, and prejudice, including the hateful ideologies promoted by neo-Nazis, the KKK, and all other white supremacy groups,” McCaul wrote in his response to Democrats’ request for a hearing.

A 32-year-old woman was killed on Saturday in Charlottesville when a car plowed into a rival protest to white supremacist demonstrators. A 20-year-old Ohio man said to have harbored Nazi sympathies has been charged with murder.

President Donald Trump on Tuesday said both sides were to blame for the violence, drawing condemnation from both fellow Republicans and Democrats for failing to single out the white nationalists.

(Reporting by Eric Beech and Caren Bohan; Editing by Howard Goller and Leslie Adler)

Wray confirmed by Senate to lead FBI after Comey firing

Wray confirmed by Senate to lead FBI after Comey firing

By Julia Edwards Ainsley

WASHINGTON (Reuters) – The U.S. Senate on Tuesday confirmed former Justice Department lawyer Christopher Wray as FBI chief, nearly three months after the agency’s previous director, James Comey, was fired by President Donald Trump.

Wray, who was confirmed by vote of 92-5, will take charge of the country’s top domestic law enforcement agency during a federal probe into allegations of collusion between the Trump presidential campaign and Russia.

Since the dismissal of Comey on May 9, the Justice Department has appointed Robert Mueller as special counsel to oversee the investigation with the help of the FBI. Russia denies any interference, and Trump has denied collusion with Russia.

Wray vowed in his confirmation hearing last month to remain independent and not be swayed by politics or pressure from the president. He also praised Muller as the “consummate straight shooter.”

He also worked with Comey on the government’s case in the Enron Corp fraud scandal in the early 2000s.

During the confirmation hearing, Republican Senate Judiciary Committee Chairman Chuck Grassley said Wray’s background showed he was committed to independence, an attribute he said was “vitally important” in the next FBI director.

Wray served as assistant attorney general in charge of the criminal division at the Justice Department under former Republican President George W. Bush.

Former Attorney General Eric Holder and former Deputy Attorney General Sally Yates, both Democrats who served under President Barack Obama, endorsed Wray.

(Reporting by Julia Edwards Ainsley; Editing by Peter Cooney)

Trump signs Russia sanctions law, but slams it as ‘flawed’

U.S. President Donald Trump meets with Russian President Vladimir Putin during their bilateral meeting at the G20 summit in Hamburg, Germany July 7, 2017. REUTERS/Carlos Barria

By Roberta Rampton and Patricia Zengerle

WASHINGTON (Reuters) – U.S. President Donald Trump grudgingly signed into law on Wednesday new sanctions against Russia that Congress had approved overwhelmingly last week, criticizing the legislation as having “clearly unconstitutional” elements.

After signing a bill that runs counter to his desire to improve relations with Moscow, and which also affects Iran and North Korea, the Republican president laid out a lengthy list of concerns.

“While I favor tough measures to punish and deter aggressive and destabilizing behavior by Iran, North Korea, and Russia, this legislation is significantly flawed,” Trump said in a statement announcing the signing.

The Republican-controlled Congress approved the legislation by such a large margin on Thursday that it would have thwarted any effort by Trump to veto the bill.

The legislation has already provoked countermeasures by Russian President Vladimir Putin, who has ordered big cuts to the number of staff at the U.S. diplomatic mission to Russia.

Congress approved the sanctions to punish the Russian government over interference in the 2016 presidential election, annexation of Ukraine’s Crimea and other perceived violations of international norms.

Trump said he was concerned about the sanctions’ effect on work with European allies, and on American business.

“My administration … expects the Congress to refrain from using this flawed bill to hinder our important work with European allies to resolve the conflict in Ukraine, and from using it to hinder our efforts to address any unintended consequences it may have for American businesses, our friends, or our allies,” he said.

The president also complained about what he said were “clearly unconstitutional provisions” in the legislation relating to presidential powers to shape foreign policy.

The new sanctions measure, the first major foreign policy legislation approved by Congress since Trump took office in January, includes a provision allowing Congress to stop any effort by the president to ease existing sanctions on Russia.

Trump has long said he would like improved ties with Russia. But any such efforts by his administration have been hamstrung by findings by U.S. intelligence agencies that Russia interfered to help the Republican against Democratic presidential candidate Hillary Clinton. U.S. congressional committees and a special counsel are investigating. Moscow denies any meddling and Trump denies any collusion by his campaign.

In a second statement on the legislation, Trump said that, “Despite its problems, I am signing this bill for the sake of national unity.”

“It represents the will of the American people to see Russia take steps to improve relations with the United States,” he added.

The legislation will affect a range of Russian industries and might further hurt the Russian economy, already weakened by 2014 sanctions imposed after Russia annexed Crime from Ukraine.

It also cracks down on Iran and North Korea for activities that include their missile development programs and human rights abuses, including seeking to punish foreign banks that do business with North Korea.

NO FANFARE FOR BILL SIGNING

After Congress approved the sanctions, the Kremlin ordered the United States to cut about 60 percent of its diplomatic staff in Russia. Putin said on Sunday that Russia had ordered the United States to cut 755 of its 1,200 embassy and consulate staff by September, and was seizing two diplomatic properties.

Besides angering Moscow, the legislation has upset the European Union, which has said the new sanctions might affect its energy security and prompt it to act, too.

Trump’s fellow Republicans praised him for signing the bill.

However, one Republican senator, Lindsey Graham, while welcoming the signing, was critical of the low-key way it was done, without the typical array of television cameras and reporters present.

“The fact (that) he does this kind of quietly I think reinforces the narrative that the Trump administration is not really serious about pushing back on Russia. And I think that is a mistake, too, because Putin will see this as a sign of weakness,” Graham said in a CNN interview.

Several provisions of the sanctions target the Russian energy sector, with new limits on U.S. investment in Russian companies. American companies also would be barred from participating in energy exploration projects where Russian firms have a stake of 33 percent or higher.

The legislation includes sanctions on foreign companies investing in or helping Russian energy exploration, although the president could waive those sanctions.

It would give the Trump administration the option of imposing sanctions on companies helping develop Russian export pipelines, such as the Nord Stream 2 pipeline carrying natural gas to Europe, in which German companies are involved.

(Reporting by Roberta Rampton and Patricia Zengerle; Additional reporting by Doina Chiacu, Susan Heavey and Caren Bohan; Writing by Frances Kerry; Editing by Jonathan Oatis)

Senate Democrats offer Republicans help on tax reform – with conditions

The United States Capitol is seen prior to an all night round of health care votes on Capitol Hill in Washington, U.S., July 27, 2017. REUTERS/Aaron P. Bernstein -The United States Capitol is seen prior to an all night round of health care votes on Capitol Hill in Washington, U.S., July 27, 2017. REUTERS/Aaron P. Bernstein -

By David Morgan

WASHINGTON (Reuters) – U.S. Senate Democrats offered to work with Republicans on a bipartisan tax reform package on Tuesday but only if it does not cut taxes for the wealthy, add to the federal deficit or allow Republicans to enact legislation on their own.

The conditional offer may not attract immediate response from Republicans. But it adds to growing signs of interest in bipartisan cooperation since the collapse of Republican healthcare legislation in the Senate last week.

In an Aug 1 letter to President Donald Trump and Republican leaders in the Senate, 45 lawmakers led by Senate Democratic leader Chuck Schumer said a bipartisan effort would raise wages for workers, grow jobs, promote investment and modernize the tax system for U.S. businesses.

“We are writing to express our interest in working with you on bipartisan tax reform,” said the letter, which then cited “prerequisites” for Democratic participation that Republicans would likely find hard to swallow.

Trump, along with Republicans in the Senate and House of Representatives, has called for major tax cuts for businesses and individuals, saying that lower tax rates would drive the economy and grow jobs.

Senator Orrin Hatch, Republican chairman of the tax-writing Senate Finance Committee, told Reuters on Monday that bipartisanship may be necessary to ensure that tax reform succeeds but blamed Democrats for slowing down the legislative process.

In Tuesday’s letter, Democrats said bipartisan tax reform should offer no relief for the wealthy, citing Treasury Secretary Steven Mnuchin’s assertion last November that there would be no absolute tax cut for the upper class.

“We hope you agree. Tax reform cannot be a cover story for delivering tax cuts to the wealthiest,” the Democrats said.

The Democrats also demanded that Republicans abandon their strategy of passing tax legislation in the Senate with a simple majority under a parliamentary procedure called reconciliation.

Republicans control the Senate by a slim 52-48 margin and say they need reconciliation to avoid a Democratic filibuster. They were unable to pass healthcare legislation last week, even with a simple majority.

Democrats also said they would not support deficit-financed tax cuts, which some Republicans view as a viable option.

Forty-three Senate Democrats and two independents signed the letter. Absent were the names of three Democrats facing reelection next year: Heidi Heitkamp of North Dakota, Joe Donnelly of Indiana and Joe Manchin of West Virginia.

(Reporting by David Morgan; Editing by Cynthia Osterman)

Trump tells Republicans to get back on healthcare bill

U.S. President Donald Trump calls on Republican Senators to move forward and vote on a healthcare bill to replace the Affordable Care Act in the Blue Room of the White House in Washington,

By Susan Cornwell

WASHINGTON (Reuters) – U.S. President Donald Trump and members of his administration on Sunday goaded Republican senators to stick with trying to pass a healthcare bill, after the lawmakers failed spectacularly last week to muster the votes to end Obamacare.

For the second day running, the Republican president tweeted his impatience with Congress’ inability to deliver on his party’s seven-year promise to replace the Affordable Care Act, President Barack Obama’s signature healthcare bill commonly known as Obamacare. Members of his administration took to the airwaves to try to compel lawmakers to take action.

But it was unclear whether the White House admonishments would have any impact on Capitol Hill, where Republicans who control both houses signaled last week that it was time to move on to other issues.

Republicans’ zeal to repeal and replace Obamacare was met with both intra-party divisions between moderates and conservatives and also the increasing approval of a law that raised the number of insured Americans by 20 million.

Polling indicates a majority of Americans are ready to move on from healthcare at this point. According to a Reuters/Ipsos poll released on Saturday, 64 percent of 1,136 people surveyed on Friday and Saturday said they wanted to keep Obamacare, either “entirely as is” or after fixing “problem areas.” That is up from 54 percent in January.

With the U.S. legislative branch spinning its wheels, the executive branch pledged to look at rewriting Obamacare regulations. Health and Human Services Secretary Tom Price told ABC’s “This Week” that he would change those regulations that drive up costs or “hurt” patients.

Price sidestepped questions about whether there were administration plans to waive Obamacare’s mandate that individuals have health insurance, saying “all things are on the table to try to help patients.”

But Price also told NBC he would implement Obamacare because it is the “law of the land.”

That Obamacare was still law clearly angered Trump, who has no major legislative accomplishments to show for his first half-year in office. “Don’t give up Republican Senators, the World is watching: Repeal Replace …” the president said in a tweet on Sunday morning.

 

NOT ‘TIME TO MOVE ON’

On Friday, Senate Republicans failed to collect enough votes to repeal even a few parts of Obamacare. That capped a week of failed Senate votes on whether to simply repeal, or repeal and replace, the 2010 law, while Trump repeatedly berated lawmakers in a late attempt to influence the legislation.

“The president will not accept those who said, quote, ‘it’s time to move on,'” Kellyanne Conway, a senior counselor to Trump, said on Fox News Sunday. Senate Majority Leader Mitch McConnell, a Republican, had made exactly that comment before dawn on Friday morning after the failed healthcare vote.

The White House budget director, Mick Mulvaney, said on Sunday lawmakers should stay in session to get something done on healthcare – even if this means postponing votes on other issues such as raising the debt ceiling.

“So yes. They need to stay. They need to work. They need to pass something,” Mulvaney said on CNN.

The House of Representatives has already gone home for its August break and the Senate is expected to do the same by mid-August.

Mulvaney also said Trump was seriously considering carrying out threats he tweeted about on Saturday, when the president said that “if a new HealthCare Bill is not approved quickly, BAILOUTS for Insurance Companies and BAILOUTS for Members of Congress will end very soon!”

That tweet appeared to be referring to the approximately $8 billion in cost-sharing reduction subsidies the federal government pays to insurers to lower the price of health coverage for low-income Americans.

The Saturday tweet also appeared to be a threat to end the employer contribution for members of Congress and their staffs, who were moved from the normal federal employee healthcare benefits program onto the Obamacare insurance exchanges as part of the 2010 healthcare law.

“What he’s saying is, look, if Obamacare is hurting the American people – and it is – then why shouldn’t it hurt insurance companies and more importantly, perhaps for this discussion, members of Congress?” Mulvaney said on Sunday on CNN.

Some Republicans have said they are trying to find a way forward on healthcare. Senate Republican Susan Collins, one of three Republicans who voted against repealing parts of Obamacare on Friday, told NBC that Congress should produce a series of bills with bipartisan input on healthcare, including appropriating the cost-sharing subsidies.

The Senate has one vote scheduled when it reconvenes on Monday afternoon: whether to confirm a U.S. circuit court judge. Senate aides said they had no guidance for the agenda beyond that vote.

 

(Additional reporting by Sarah N. Lynch, Roberta Rampton, and Caren Bohan; Editing by Phil Berlowitz and Mary Milliken)

 

U.S. lawmakers reach deal for Senate Russia sanctions vote

Senator Bob Corker (R-TN) arrives for a health care vote on Capitol Hill in Washington, U.S. July 26, 2017. REUTERS/Eric Thayer

By Patricia Zengerle, Andrew Osborn and Philip Blenkinsop

WASHINGTON/MOSCOW/BRUSSELS (Reuters) – U.S. lawmakers reached an agreement on Wednesday paving the way for the U.S. Senate to pass a bill as soon as this week to impose new sanctions on Russia and bar President Donald Trump from easing sanctions on Moscow without Congress’ approval.

Earlier on Wednesday, Russia warned it was edging closer to retaliation against Washington after the House of Representatives backed new U.S. sanctions on Moscow, while the European Union said the move might affect its energy security and it stood ready to act too.

“I am glad to announce that we have reached an agreement that will allow us to send sanctions legislation to the president’s desk,” Senator Bob Corker, the Republican chairman of the U.S. Senate Foreign Relations Committee, said in a statement on Wednesday evening.

He said the Senate would move to approve sanctions on Russia and Iran that it originally passed in mid-June, as well as sanctions on North Korea developed by the House of Representatives and included in a bill the House passed overwhelmingly on Wednesday.

Before the latest agreement, some senators had objected to the North Korea measures and it had looked like the sanctions bill, already delayed since mid-June, could languish into September.

If the bill passes the Senate as expected, it would be sent to the White House for Trump to sign into law or veto. It is, however, expected to garner enough support to override a Trump veto.

The House voted 419-3 on Tuesday to impose new sanctions on Moscow and force Trump to obtain lawmakers’ approval before easing any punitive measures on Russia.

“This is rather sad news from the point of view of Russia-U.S. ties,” said Dmitry Peskov, a Kremlin spokesman. “We are talking about an extremely unfriendly act.”

He said President Vladimir Putin would decide if and how Moscow would retaliate once the sanctions became law. Russia’s deputy foreign minister warned the move was taking bilateral relations into uncharted waters, killing off hopes of improving them in the near future.

DOGGED BY RUSSIA ALLEGATIONS

Trump, whose presidency has been embroiled in a distracting dispute over his associates’ alleged ties to Moscow, is on the defensive over accusations Russia helped elect him last year. He has said he wants to mend relations with Russia that are languishing at a post-Cold War low.

Trump had denied that there was any collusion between his campaign and Russia.

Most White House watchers believe Trump will reluctantly sign off on the new sanctions, given deep support for them among U.S. lawmakers and his desire to avoid being accused of being soft on Moscow.

Representative Ed Royce, the Republican chairman of the House Foreign Affairs Committee, said Trump would have little choice. The Senate passed a version of the legislation, without the North Korea sanctions, on June 15 by 98-2.

“I think the president will sign it,” Royce said on NBC’s Meet the Press Daily on Wednesday.

The issue has rattled Russia, which fears that its economy, weakened by 2014 Western sanctions imposed over its role in the Ukraine crisis, will now find it harder to recover and grow. Foreign investors could be scared off.

The European Union frets that new U.S. restrictions could pose obstacles to its companies doing business with Russia and threaten the bloc’s energy supply lines.

The Kremlin’s alleged interference in the 2016 U.S. presidential election is one reason lawmakers have pushed for the new sanctions.

HOPES FADE FOR DETENTE

Peskov said Moscow would wait until the sanctions became law before fully analyzing them and deciding how to respond.

Moscow had hoped that Trump, who made upbeat statements about Putin before winning the White House, would work to repair the U.S.-Russia relationship. But it has watched with frustration as the vote-meddling allegations killed off hopes of any detente.

The Russian Foreign Ministry said this month that too many American spies were operating in Russia under diplomatic cover and it might expel some to retaliate for the expulsion of 35 Russian diplomats last year by then-President Barack Obama’s administration.

Many Russian politicians increasingly believe Trump’s political foes and Congress have left the U.S. president with little room for maneuver on Russia and they have nothing to lose by retaliating.

In Brussels, European Commission President Jean-Claude Juncker said the EU was ready to act “within a matter of days” if it felt the new U.S. sanctions undermined the bloc’s energy security.

Brussels fears the new sanctions will damage European firms and oil and gas projects on which the EU is dependent.

The Russia section of the bill includes sanctions on a range of industries.

Several provisions target Russian energy, with new limits on U.S. investment in Russian companies. U.S. firms also would be barred from participating in energy exploration projects where Russian firms have a stake of 33 percent or higher.

The bill includes sanctions on foreign firms investing in or helping Russian energy exploration, although the president could waive those sanctions.

The bill would give the Trump administration the option of imposing sanctions on firms helping develop Russian export pipelines, such as the Nord Stream 2 pipeline carrying natural gas to Europe, in which German companies are involved.

In a concession to allies, those sanctions are optional, not mandatory.

The European Commission said a number of EU concerns had been taken into account in the most recent version of the bill, but said it could lead to sanctions on any company, including European, that worked on Russian energy export pipelines.

(Additional reporting by Dmitry Solovyov and Katya Golubkova in Moscow, Alissa de Carbonnel in Brussels and Susan Heavey in Washington; Editing by Yara Bayoumy, James Dalgleish, Toni Reinhold)

Philippine Congress agrees to extend Mindanao martial law to end of year

An anti martial law protestor hold a placard while protesting during the special session on the extension of martial law at the House of Representatives in Quezon City, metro Manila, Philippines July 22, 2017. REUTERS/Dondi Tawatao

By Enrico Dela Cruz

MANILA (Reuters) – Philippine lawmakers on Saturday voted to retain martial law on the southern island of Mindanao until the end of the year, giving President Rodrigo Duterte more time to tackle armed extremists allied with the Islamic State group.

Some 261 legislators agreed to extend military rule in a seven hour-long joint special session of the House of Representatives and the Senate, more than the required two-thirds of the house.

Security officials had told lawmakers that martial law was needed to stabilize a region where Islamic State was gaining influence, and supporters could be inspired to stage uprisings in other areas of Mindanao, joined by foreign jihadists.

Defence Secretary Delfin Lorenzana warned of more serious problems if the government did not have the powers to act swiftly.

“We need martial law because we haven’t addressed yet the existence of other Daesh-inspired groups,” he said, referring to another name for Islamic State.

Duterte placed Mindanao under martial law on May 23 when heavily-armed militants belonging to the Maute and Abu Sayyaf groups along with foreign fighters stormed Marawi City, sparking the biggest security crisis of his presidency.

The battle to liberate Marawi continues two months after, with more than 420 militants, 100 soldiers and 45 civilians killed. Some of those were executed by the rebels, according to the military.

Government troops pulverized and retook some of the Maute strongholds after weeks of artillery attacks and airstrikes, but an estimated 70 militants remained holed up in the downtown area.

“The rebellion in Marawi continues to persist and we want to stop the spread of the evil ideology of terrorism and free the people of Mindanao from the tyranny of lawlessness and violent extremism,” Presidential Spokesman Ernesto Abella said in a statement.

But martial law remains a sensitive issue in the Philippines as it brings back memories of human rights abuses that occurred in the 1970s under the late dictator Ferdinand Marcos.

He was ousted in a “people power” revolt in 1986. Saturday’s vote paves the way for the first ever extension of a period of martial law since the Marcos era.

Opponents expressed fears Duterte might eventually place the entire country under martial law, but the authorities have dismissed that.

Senator Franklin Drilon said the extension until end of the year was too long and Senator Risa Hontiveros, a staunch critic of Duterte, said martial law has “no strategic contribution to the military’s anti-terrorism operations”.

Congressman Edcel Lagman said there was “no factual basis” for martial law and that the siege in Marawi was terrorism, not rebellion.

Rebellion is one of the pre-conditions for declaring martial law under a 1987 constitution that was drafted to prevent a repeat of the Marcos era abuses.

Military chief General Eduardo General Año said retaking Marawi has proven difficult because it was the first time troops had engaged in a “Mosul-type, hybrid urban warfare”, referring to the fighting in the Iraqi city until recently held by Islamic State.

(Reporting by Enrico dela Cruz; Additional reporting by Manuel Mogato; Editing by Martin Petty & Shri Navaratnam)

U.S. Senate Republicans set repeal vote as healthcare overhaul sinks

FILE PHOTO - U.S. Senate Majority Leader Mitch McConnell speaks to the media about plans to repeal and replace Obamacare on Capitol Hill in Washington, DC, U.S. on June 27, 2017. REUTERS/Aaron P. Bernstein/File Photo

By Susan Cornwell

WASHINGTON (Reuters) – U.S. Senate Republican leader Mitch McConnell set a vote on a straight repeal of Obamacare after efforts to overhaul the healthcare law collapsed, but the new approach unraveled within hours on Tuesday in a sharp setback for President Donald Trump and his Republican Party.

The disarray in the Republican-controlled Senate rattled financial markets and cast doubt on the chances for getting Trump’s other domestic policy priorities, such as tax reform, through a divided Congress.

Repealing and replacing Obamacare has been a top Republican goal for seven years, and Trump made the promise a centerpiece of his White House campaign. The overhaul’s failure calls into question not only his ability to get his agenda through Congress but that of the Republican Party to govern effectively.

Saying he was disappointed, Trump told reporters at the White House that “we’re probably in that position where we’ll just let Obamacare fail.”

“We’re not going to own it, I’m not going to own it. … Republicans are not going to own it. We will let Obamacare fail, and then the Democrats are going to come to us,” he said.

McConnell gave up on efforts to overhaul the 2010 Affordable Care Act late on Monday after it became clear he did not have the votes. Instead, he announced plans to vote in coming days on a two-year transition to simply repeal the healthcare law with no replacement.

“We will now try a different way to bring the American people relief from Obamacare,” McConnell said on Tuesday as he opened the Senate, where the Republicans hold a razor-thin 52-48 majority. “I think we owe them at least that much.”

But Republican Senators Shelley Moore Capito of West Virginia, Susan Collins of Maine and Lisa Murkowski of Alaska quickly announced they would not back repeal, dooming the fledgling effort. With Democrats united in opposition, Republicans can only afford to lose two votes to pass the measure in the Senate.

(Writing by John Whitesides; Additional reporting by Caroline Humer in New York and Ginger Gibson, Richard Cowan in Washington; Editing by Tom Brown, Nick Zieminski and Jonathan Oatis)

Philippine president asks Congress to keep martial law until end of year

Activists display placards calling for lifting of martial law in the southern Philippines, as Philippine President Rodrigo Duterte has asked the Philippine Congress to extend the implementation of martial law in the island of Mindanao until the end of the year, to allow the armed forces to quell Islamist militancy in parts of the southern island, during a protest outside the presidential palace in Manila, Philippines July 18, 2017. REUTERS/Romeo Ranoco

By Martin Petty

MANILA (Reuters) – Philippine President Rodrigo Duterte on Tuesday asked Congress to extend martial law on the southern island of Mindanao until the end of the year, to grant him time to crush a rebel movement inspired by the Islamic State group.

The region of 22 million people, which has a history of separatist and Marxist rebellion, was placed under military rule on May 23 after rebels from the Maute and Abu Sayyaf groups took over parts of Marawi City, plunging the Philippines into its biggest security crisis in years.

Insurgents have put up fierce resistance, with scores of fighters still holed up in central Marawi after 57 days of government ground offensives, air strikes and artillery bombardments, in a battle authorities say has killed 413 militants, 98 members of the security forces and 45 civilians.

“The primary objective of the possible extension is to allow our forces to continue with their operations unhampered by deadlines and to focus more on the liberation of Marawi and its rehabilitation and rebuilding,” said presidential spokesman Ernesto Abella, reading a letter signed by Duterte.

A hardcore of gunmen were on Tuesday clinging on to positions in a deserted commercial heart, which has been reduced to rubble by a bombing campaign that has angered residents with no homes or businesses to return to.

Duterte has appointed a taskforce to rebuild Marawi, with a 20 billion peso ($394.81 million) budget.

The brazen assault by organized, heavily armed militants who have pledged allegiance to Islamic State has fanned fears that extremists may have radicalized and recruited more fighters than was previously thought.

The Marawi siege is the fourth battle between the Maute clan and the military over the past nine months and the country’s defense minister, Delfin Lorenzana, has admitted the combat and planning capability of the enemy has been underestimated.

Lorenzana on Tuesday met Singaporean counterpart Ng Eng Hen, who offered the Philippines urban warfare training and use of surveillance aircraft to locate militants, adding to reconnaissance support Australia and the United States is currently providing.

Duterte has long warned that Mindanao faced contamination by Islamic State, and experts say Muslim parts of the predominantly Catholic southern Philippines are fertile ground for expansion due to their history of marginalization and neglect.

BIG PROBLEM

While few dispute that Duterte has a serious problem on his hands, his critics have derided his declaration of martial law across all of Mindanao, an area the size of South Korea.

Martial law allows for deeper surveillance and arrests without warrant, giving security forces a freer rein to go after suspected extremist financiers and facilitators.

According to several senate and congress leaders who dined with the president on Monday evening, Duterte had told them he wanted martial law for another 60 days.

In the case of continuing martial law beyond the initial 60-day limit, the constitution does not restrict how long it can be extended, although Congress can challenge it.

Senator Antonio Trillanes, Duterte’s top critic, said such a long extension was a “whimsical misuse of power”.

“I have already forewarned the public of Duterte’s authoritarian tendencies and this is another proof of it,” he said in a statement.

Martial law is a sensitive issue in the Philippines, bringing back memories of the 1970s rule of late dictator Ferdinand Marcos, who was accused of exaggerating security threats to justify harsh measures that allowed his regime to suppress dissent brutally.

The extension would be the first time since the Marcos era that martial law was renewed.

Outrage about martial law has largely been restricted to Duterte’s main critics, with the majority of Filipinos behind his security measures, according to opinion polls.

Lower house speaker, Pantaleon Alvarez, an ally of Duterte, said it was likely Congress would endorse the president’s request to extend martial law until the end of the year.

He also said Congress should look into possible intelligence failures that led to the siege, in particular, how the militants managed to stockpile so many weapons.

(Additional reporting by Manuel Mogato; Editing by Michael Perry)