U.S. Vice President Pence’s hawkish tone on Russia contrasts with Trump approach

Vice President Mike Pence delivers a speech during a meeting with U.S. troops taking part in NATO led joint military exercises Noble Partner 2017 at the Vaziani military base near Tbilisi, Georgia. REUTERS/Irakli Gedenidze

By Roberta Rampton

WASHINGTON (Reuters) – When President Donald Trump scolded U.S. lawmakers on Thursday for clamping down on Moscow with new sanctions, his message clashed with the one that Vice President Mike Pence pushed during a four-day trip this week to Eastern Europe.

As he toured Estonia, Georgia and Montenegro, Pence said the sanctions passed overwhelmingly by Congress would send a unified message to Russia that it must change its behavior.

Trump, by contrast, took to Twitter to complain that the sanctions legislation, which he grudgingly signed, would send U.S.-Russia relations to “an all-time & very dangerous low.”

While some Republicans played down the divergence, critics said it exemplified an incoherent policy that would unsettle allies and fail to placate Moscow.

“There are some policies where a good cop/bad approach can work,” said Michael McFaul, a U.S. ambassador to Russia under former Democratic President Barack Obama.

But McFaul added that in the case of the Trump administration’s policy toward Russia, Moscow was likely to view the mixed signals as a sign of policy disarray.

If the Republican president continues to want improved relations with Russia, “he’s not achieving his goal,” McFaul said.

The White House’s two-track approach is mirrored in Moscow.

After Trump signed the new sanctions into law on Wednesday, Russian Prime Minister Dmitry Medvedev, the No. 2 in the Russian ruling hierarchy, launched a blistering attack on the White House.

Yet Russian President Vladimir Putin — who has tried to cultivate a personal rapport with Trump in phone conversations and face-to-face meetings at a summit in Germany — has not uttered a word in public about the sanctions since Trump approved them.

Trump has repeatedly said he wants better ties with Russia. But the country has loomed large over the first six months of his administration as a special counsel and U.S. congressional panels investigate allegations Moscow meddled in the 2016 U.S. election to help Trump and also examine any potential role by Trump aides.

Moscow denies any meddling and Trump denies any collusion by his campaign.

After Congress passed the sanctions legislation with a large enough margin to override a presidential veto, Trump signed it on Wednesday but criticized it as infringing on his authority and said he could make “far better deals” with governments than Congress could.

As a countermeasure to the sanctions, Putin called for reducing the staff of the U.S. diplomatic mission by 755 people and for the seizure of two properties near Moscow used by American diplomats.

‘SMALL AND BULLYING LEADER’

Jarrod Agen, deputy chief of staff to Pence, insisted that Trump and Pence were “completely aligned” on Russia.

“It was the president’s decision to send the vice president to the region. It was the president’s decision to deliver the message that the vice president delivered,” Agen told Reuters.

He added that Pence and Trump spoke every day during his trip and sometimes multiple times a day.

The disconnect between Pence and Trump on Russia is an anomaly. Pence usually goes to lengths to emphasize his loyalty to his boss and to downplay any differences.

Their different tone on Russia dates back to the U.S. presidential campaign. While Trump often praised Putin, Pence called the Russian president a “small and bullying leader” during a vice presidential debate last October.

During his trip this week, Pence condemned Russia for its “occupation of Georgia’s soil” as he spoke to U.S. and Georgian troops engaged in joint exercises only 40 miles (64 km) away from Russian troops in South Ossetia.

In Montenegro, Pence accused Russia of trying to “destabilize” the western Balkans – a message criticized by Moscow.

Russia’s Foreign Ministry said it was “regrettable to note that Washington is sliding ever deeper into the primitive ideology of the Cold War era, which is completely detached from reality.”

Traditional Republican conservatives – who favor a hard line on Moscow – have taken some comfort in Pence’s message, as have foreign leaders concerned about the impact of a rapprochement between Trump and Putin.

“What he (Pence) is saying is good and helpful and should be the policy of the Trump administration – and so for those of us who want it to be that way, we’re happy to embrace it,” said Danielle Pletka, senior vice president for foreign and defense policy studies at the American Enterprise Institute.

“None of us know what Donald Trump thinks in his heart of hearts about Russia,” Pletka said. But she added: “If (Trump) were not comfortable with Pence making this trip, Pence would not be making this trip.”

Republican Bob Corker, chairman of the Senate Foreign Relations Committee, said he would not “read a lot” into the different tones struck by Pence and Trump, although he welcomed Pence’s trip to the European countries.

Corker described Pence as the administration’s “ombudsman” on policy and said Defense Secretary Jim Mattis, Secretary of State Rex Tillerson and Trump’s national security adviser, H.R. McMaster, were key to developing Trump’s foreign policy.

A former U.S. official, who spoke on condition of anonymity, was at pains to explain the disconnect between Pence and Trump on Russia.

“We are dealing with a major, open split between the president and basically the rest of his administration with the possible exception of Tillerson,” the former official said.

(Additional reporting by Patricia Zengerle, Arshad Mohammed and Christian Lowe; Editing by Caren Bohan, Peter Cooney and Alister Doyle)

Grand jury issues subpoenas in connection with Trump Jr., Russian lawyer meeting: sources

Donald Trump Jr. stands onstage with his father Republican U.S. presidential nominee Donald Trump after Trump's debate against Democratic nominee Hillary Clinton at Hofstra University in Hempstead, New York, U.S. September 26, 2016. REUTERS/Brian Snyder

By Karen Freifeld and John Walcott

WASHINGTON (Reuters) – A grand jury has issued subpoenas in connection with a June 2016 meeting that included President Donald Trump’s son, his son-in-law and a Russian lawyer, two sources told Reuters on Thursday, signaling an investigation is gathering pace into suspected Russian meddling in the 2016 U.S. election.

The sources added that U.S. Special Counsel Robert Mueller had convened the grand jury investigation in Washington to help examine allegations of Russian interference in the vote. One of the sources said it was assembled in recent weeks.

Russia has loomed large over the first six months of the Trump presidency. U.S. intelligence agencies have concluded that Russia worked to tilt the presidential election in Trump’s favor. Mueller, who was appointed special counsel in May, is leading the probe, which also examines potential collusion by the Trump campaign with Russia.

Moscow denies any meddling and Trump denies any collusion by his campaign, while regularly denouncing the investigations as political witch hunts.

At a rally in Huntington, West Virginia, on Thursday night, Trump said: “Most people know there were no Russians in our campaign. … We didn’t win because of Russia. We won because of you.”

Mueller’s use of a grand jury could give him expansive tools to pursue evidence, including issuing subpoenas and compelling witnesses to testify. The Wall Street Journal earlier reported a grand jury was impaneled.

A spokesman for Mueller declined comment.

A grand jury is a group of ordinary citizens who, working behind closed doors, considers evidence of potential criminal wrongdoing that a prosecutor is investigating and decides whether charges should be brought.

“This is a serious development in the Mueller investigation,” said Paul Callan, a former prosecutor.

“Given that Mueller inherited an investigation that began months ago, it would suggest that he has uncovered information pointing in the direction of criminal charges. But against whom is the real question.”

A lawyer for Trump, Jay Sekulow, appeared to downplay the significance of a grand jury, telling Fox News: “This is not an unusual move.”

U.S. stocks and the dollar weakened following the news, while U.S. Treasury securities gained.

It was not immediately clear to whom subpoenas were issued and the sources did not elaborate.

Some lawyers said it would put pressure on potential witnesses to cooperate with Mueller’s investigation.

“When someone gets a subpoena to testify, that can drive home the seriousness of the investigation,” said David Sklansky, a professor at Stanford Law School and a former federal prosecutor.

In 2005, a grand jury convened by Special Counsel Patrick Fitzgerald returned an indictment of Lewis “Scooter” Libby, a top aide to then-Vice President Dick Cheney.

“A special counsel can bring an indictment and it has happened before,” said Renato Mariotti, a partner at the law firm Thompson Coburn and a former federal prosecutor.

DAMAGING INFORMATION

News last month of the meeting between Donald Trump Jr. and a Russian lawyer who he was told had damaging information about his father’s presidential rival, Democrat Hillary Clinton, fueled questions about the campaign’s dealings with Moscow.

The Republican president has defended his son’s behavior, saying many people would have taken that meeting.

Trump’s son-in-law and White House senior adviser Jared Kushner and former Trump campaign manager Paul Manafort also attended the meeting.

One of the sources said major Russian efforts to interfere in the election on Trump’s behalf began shortly after the June meeting, making it a focus of Mueller’s investigation.

Ty Cobb, special counsel to the president, said he was not aware that Mueller had started using a new grand jury.

“Grand jury matters are typically secret,” Cobb said. “The White House favors anything that accelerates the conclusion of his work fairly. … The White House is committed to fully cooperating with Mr. Mueller.”

John Dowd, one of Trump’s personal lawyers, said: “With respect to the news of the grand jury, I can tell you President Trump is not under investigation.”

A spokesman for Manafort declined to comment.

Lawyers for Trump Jr. and Kushner did not immediately respond to requests for comment.

‘NOT THINKING OF FIRING MUELLER’

Trump has questioned Mueller’s impartiality and members of Congress from both parties have expressed concern that Trump might dismiss him. Republican and Democratic senators introduced two pieces of legislation on Thursday seeking to block Trump from firing Mueller.

Sekulow denied that was Trump’s plan.

“The president is not thinking of firing Bob Mueller,” Sekulow said.

One source briefed on the matter said Mueller was investigating whether, either at the meeting or afterward, anyone affiliated with the Trump campaign encouraged the Russians to start releasing material they had been collecting on the Clinton campaign since March 2016.

Another source familiar with the inquiry said that while the president himself was not now under investigation, Mueller’s investigation was seeking to determine whether he knew of the June 9 meeting in advance or was briefed on it afterward.

Reuters earlier reported that Mueller’s team was examining money-laundering accusations against Manafort and hoped to push him to cooperate with their probe into possible collusion between Trump’s campaign and Russia. It is not known if the grand jury is investigating those potential charges.

(Additional reporting by Noeleen Walder, Jan Wolfe, Anthony Lin, Jonathan Stempel, Tom Hals, Julia Ainsley, Joel Schectman, Yara Bayoumy, Patricia Zengerle and Eric Beech; Writing by Phil Stewart; Editing by Bill Trott and Peter Cooney)

Trump administration moves to make tougher U.S. visa vetting permanent

FILE PHOTO: A sign warns of surveillance at the International Arrival area, on the day that U.S. President Donald Trump's limited travel ban, approved by the U.S. Supreme Court, goes into effect, at Logan Airport in Boston, Massachusetts, U.S., June 29, 2017. REUTERS/Brian Snyder

By Yeganeh Torbati

WASHINGTON (Reuters) – The Trump administration moved on Thursday to make permanent a new questionnaire that asks some U.S. visa applicants to provide their social media handles and detailed biographical and travel history, according to a public notice.

The questionnaire was rolled out in May as part of an effort to tighten vetting of would-be visitors to the United States, and asks for all prior passport numbers, five years’ worth of social media handles, email addresses and phone numbers and 15 years of biographical information including addresses, employment and travel history. (See: http://bit.ly/2v0qsR2)

A State Department official declined to provide data on how many times the form had been used or which nationalities had been asked to fill it out since May, only stating that it estimates 65,000 visa applicants per year “will present a threat profile” that warrants the extra screening.

President Donald Trump ran for office in 2016 pledging to crack down on illegal immigration for security reasons, and has called for “extreme vetting” of foreigners entering the United States. On Wednesday, he threw his support behind a bill that would cut legal immigration to the United States by 50 percent over 10 years.

The Office of Management and Budget, which must approve most new federal requests of information from the public, initially approved the form on an “emergency” basis, which allowed its use for six months rather than the usual three years.

The State Department published a notice in the Federal Register on Thursday seeking to use the form for the next three years. The public has 60 days to comment on the request. (See: http://bit.ly/2uZNXJD)

The questions are meant to “more rigorously evaluate applicants for terrorism, national security-related, or other visa ineligibilities,” the notice said.

While the questions are voluntary, the form says failure to provide the information may delay or prevent the processing of a visa application.

Trump ordered a temporary travel ban in March on citizens of Iran, Libya, Somalia, Sudan, Syria and Yemen. After months of legal wrangling, the Supreme Court in June allowed the travel ban to go forward with a limited scope.

The form does not target any particular nationality.

Seyed Ali Sepehr, who runs an immigration consultancy in California serving Iranian clients applying for U.S. visas, said that since late June, all of his clients who have been referred for extra security checks have also been asked to fill out the new form.

Kiyanoush Razaghi, an immigration attorney based in Maryland, said he knows of Iraqis, Libyans and Iranians who have been asked to fill out the form.

Immigration attorney Steve Pattison said one of his clients, who is not from one of the six travel ban countries, had been asked to fill out the new form when applying for a visitor visa, indicating that consular officers are using it broadly.

“It could be that everyone is missing another consequence of the use of the form – its deployment in a far wider sense to cover all sorts of individuals,” Pattison said.

(Reporting by Yeganeh Torbati; editing by Sue Horton and Grant McCool)

Trump, frustrated by Afghan war, suggests firing U.S. commander: officials

FILE PHOTO: A U.S. Navy Corpsman and U.S. soldier take part in a helicopter Medevac exercise in Helmand province, Afghanistan, July 6, 2017. REUTERS/Omar Sobhani/File Photo

By Steve Holland and John Walcott

WASHINGTON (Reuters) – President Donald Trump’s doubts about the war in Afghanistan has led to a delay in completing a new U.S. strategy in South Asia, skepticism that included a suggestion that the U.S. military commander in the region be fired, U.S. officials said on Wednesday.

During a July 19 meeting in the White House Situation Room, Trump demanded that his top national security aides provide more information on what one official called “the end-state” in a country where the United States has spent 16 years fighting against the Taliban with no end in sight.

The meeting grew stormy when Trump said Defense Secretary James Mattis and Joint Chiefs of Staff Chairman Joseph Dunford, a Marine general, should consider firing Army General John Nicholson, commander of U.S. forces in Afghanistan, for not winning the war.

“We aren’t winning,” he told them, according to the officials, who spoke on condition of anonymity.

In addition, once the meeting concluded, Trump’s chief strategist, Steve Bannon, got into what one official called “a shouting match” with White House national security adviser H.R. McMaster over the direction of U.S. policy.

Some officials left the meeting “stunned” by the president’s vehement complaints that the military was allowing the United States to lose the war

Mattis, McMaster and other top aides are putting together answers to Trump’s questions in a way to try to get him to approve the strategy, the officials said.

The White House had no comment on the accounts of the meeting.

Another meeting of top aides is scheduled on Thursday.

Although Trump earlier this year gave Mattis the authority to deploy U.S. military forces as he sees fit, in fact the defense secretary’s plans to add around 4,000 more U.S. troops to the 8,400 currently deployed in Afghanistan are being caught up in the delay surrounding the strategy, the officials said.

“It’s been contingent all along informally on the strategy being approved,” a senior administration official said of the troop deployment.

Trump has long been a skeptic of lingering U.S. involvement in foreign wars and has expressed little interest in deploying military forces without a specific plan on what they will do and for how long.

Officials said Trump argued that the United States should demand a share of Afghanistan’s estimated $1 trillion in mineral wealth in exchange for its assistance to the Afghan government.

But other officials noted that without securing the entire country, which could take many years, there is no way to get the country’s mineral riches to market, except to Iran. Trump complained that the Chinese are profiting from their mining operations, the officials said.

(Editing by Jonathan Oatis)

Angry and inspired: Democrats train new wave of candidates

Participants give their stump speeches at the graduation event of the Emerge Oregon training program for Democratic women to enter politics, in Portland, Oregon, U.S. July 22, 2017. Picture taken July 22, 2017. REUTERS/Steve Dipaola

By John Whitesides

ROCKVILLE, Md. (Reuters) – The 100 Democratic women who packed into a suburban Maryland conference room recently for a one-day training on how to run for political office were more than activists eager to battle President Donald Trump and his fellow Republicans.

The teachers, students and business leaders were also a window into the future for a Democratic Party desperate for new blood, and into the booming effort to turn the left’s grassroots anti-Trump activism into a new wave of Democratic officeholders.

As thousands of potential first-time candidates explore political bids in what Democratic veterans say is an unprecedented surge of activity, a broad but informal network of groups is beefing up efforts to train them for the task.

The goal: turning neophytes into successful politicians who can win, giving the party a deep and diverse bench of up-and-coming progressive talent at all levels of government.

“This era of Trump has made everybody just want to run for office, and it’s not easy,” said Josh Morrow, executive director of 314 Action, which since its founding last year has heard from about 6,000 scientists, engineers and mathematicians exploring political runs and trained nearly 500 of them.

“No matter how accomplished people are, they need help when they first run,” Morrow said.

The surge of interest has given dispirited Democrats, long criticized as a top-heavy party lacking fresh faces, hope for a renaissance at the local and state levels after repeated setbacks under President Barack Obama.

Building from the ground up, from the school board to the statehouse, is a party priority after losing nearly 1,000 state legislative seats in the last eight years. Republicans also control the White House, both chambers of Congress and 33 governor’s offices, the most in nearly a century.

“Local offices matter, and as Democrats we have sort of forgotten that,” said Amanda Litman, a staffer on Democrat Hillary Clinton’s presidential campaign who founded the group Run for Something after the 2016 election to recruit and prepare millennials for office.

For first-timers, the initial enthusiasm for public service can quickly give way to worried questions about the logistics of building a fundraising list, utilizing social media and crafting a message.

“I knew I had a steep learning curve,” said Thereasa Black, a lawyer and Navy veteran running for the U.S. Congress from Maryland. She attended the Rockville session run by Emerge America, which prepares women for office.

“This is a way to find people who are like-minded and going through what you are, and can help you,” she said.

A Republican spokesman said Democrats would need more than training and fresh faces to gain ground in next year’s midterm elections given the losses of first-time Democratic candidates in special congressional races in Georgia and Montana earlier this year.

“The challenges that Democrats face go much deeper and come down to fundraising and messaging,” said Rick Gorka, a spokesman for the Republican National Committee, which sponsored a training program for about 4,500 volunteer field staff and operatives last year.

‘SO MANY THINGS I DIDN’T KNOW’

Geoffrey Dittberner, 30, said he had volunteered on campaigns before deciding to run for the Minnesota legislature, but he was still unprepared for being a candidate before he was accepted into Run for Something’s training program.

“There were so many things I didn’t know – fundraising, setting up a campaign organization – but they made it pretty easy,” he said. The group’s Slack application gave him access to a variety of resources, from tutorials to mentors and peer networks, discussion groups and on-call experts, he said.

Aside from new groups like 314 Action and Run for Something, about a dozen established organizations that have long offered training to progressive candidates also have been flooded with interest since Trump’s election.

Emily’s List, which for years has trained women candidates who favor abortion rights, has hired five more staffers this year for a reconstituted training unit. It already has heard from 16,000 women interested in becoming candidates this year, compared to 920 in 2016.

Emerge America has seen applications jump by 87 percent and added five new state chapters. The Maryland state chapter, which ran the one-day course in Rockville, had trained 250 women by mid-year. Last year, it trained 55.

At Emerge’s Rockville session, candidates were encouraged to listen more than they talk and delve into their own experiences to explain what motivated them to run.

“When we tap into our own personal story, we relate better to people in our community,” Diane Fink, executive director for Emerge Maryland, told the class. She asked them to put together a three-minute story that explains how they got started.

While Democrats nationally have battled over their core message, most of the training programs say they avoid telling candidates specifically what issues to emphasize.

“First and foremost you should be talking about what matters to voters, not to you,” said veteran Democratic strategist Kelly Dietrich, who founded the National Democratic Training Committee last year to offer free online training for any Democrat running for any office.

So far, more than 6,000 have signed up.

(Editing by Cynthia Osterman)

Trump and senators seek to slash legal immigration

President Trump speaks during an announcement on immigration reform accompanied by Senator Tom Cotton and Senator David Perdue. REUTERS/Carlos Barria

By Ayesha Rascoe and Mica Rosenberg

WASHINGTON/NEW YORK (Reuters) – After a crackdown on illegal immigration that has sharply reduced the number of unauthorized border crossings from Mexico, U.S. President Donald Trump is now turning his attention to reducing the number of legal immigrants in the country.

The White House is throwing its support behind a bill developed by Republican senators Tom Cotton of Arkansas and David Perdue of Georgia that would cut legal immigration by 50 percent over 10 years by reducing the kinds of relatives immigrants can bring into the country.

But the legislation faces an uphill climb to get through Congress where some senior Republicans back comprehensive immigration reform, not a tough crackdown.

Under the new bill, known as the RAISE Act, the United States would prioritize high-skilled immigrants by setting up a merits-based system similar to those used by Canada and Australia.

Trump and the Republican lawmakers blasted the current immigration system as out of date and argued that it hurts American workers by driving down wages.

“This competitive application process will favor applicants who can speak English, financially support themselves and their families and demonstrate skills that will contribute to our economy,” Trump said.

The Senators said they worked closely with the White House on this latest version of their bill. “This is probably our third or fourth visit to the Oval Office to work with President Trump,” Cotton told reporters.

LONG HISTORY

Slashing legal immigration has long been pushed by low-immigration advocacy groups in Washington like NumbersUSA and the ideas have been backed by now-Attorney General Jeff Sessions, who is now facing public criticism from Trump.

NumbersUSA President Roy Beck hailed the bill and said that it “will do more than any other action to fulfill President Trump’s promises as a candidate.” Trump vowed to crack down on illegal immigration during his campaign and signed two executive orders soon after taking office to increase border security and interior enforcement.

Cotton and Perdue said their bill does not affect temporary visas for workers in certain tech sectors and seasonal jobs that are popular with many businesses. They stressed that the legislation was narrowly focused, an approach they hoped would be able to get bipartisan support.

“We’re not trying to boil the ocean here and change everything about our immigration law,” Cotton said.

But other Republican lawmakers said the bill might be going too far. Senator Lindsey Graham, from South Carolina, said his state is dependent on immigrant labor to sustain the two biggest sectors of the economy, agriculture and tourism.

Economists have called into the question the benefits of cutting legal immigration. FWD.us, a group that represents the tech industry said that the bill would “severely harm the economy.”

The bill aims to end the diversity visa lottery, which allows 50,000 people from underrepresented countries to obtain green cards.

It also sets a 50,000 annual cap on refugees, instead of a level mandated by the president.

Refugee organizations said permanently limiting number of refugees allowed in the country goes against an American value of offering safe haven to people fleeing violence and oppression.

Trump suggested at an event in New York’s Long Island on Friday, where he spoke out against violence committed by Central American gang members, that immigrants today are different than in previous generations.

“What happened to the old days when people came into this country and they worked and they worked and they worked and they had families and paid taxes and they did all sorts of things and their families got stronger and they were closely knit?” Trump asked the audience of law enforcement officers. “We don’t see that.”

(Additional reporting by Roberta Rampton in Washington)

Iran says new U.S. sanctions violate nuclear deal, vows ‘proportional reaction’

Iran says new U.S. sanctions violate nuclear deal, vows 'proportional reaction'

(Reuters) – Iran said new sanctions imposed by U.S. President Donald Trump on Wednesday break the terms of its nuclear deal with the United States and other world powers, and vowed an “appropriate and proportional” response.

Trump, who during his election campaign called the nuclear agreement – negotiated under his predecessor Barack Obama – “the worst deal ever”, signed the new sanctions into law along with measures against Russia and North Korea.

Iran had already said it would complain to the body that oversees the 2015 deal – under which it accepted curbs on its nuclear program in return for sanctions relief – about the measures passed in Congress last week in response to a missile development program and human rights abuses.

“In our view the nuclear deal has been violated and we will show an appropriate and proportional reaction to this issue,” Deputy Foreign Minister Abbas Araqchi said in an interview with state TV, according to the ISNA news agency.

While Russia has reacted to the sanctions by ejecting U.S. embassy staff, Iran has no diplomatic relations or direct trade links with the United States so its options are limited. Araqchi said Tehran’s response would be “intelligent”.

“The main goal of America in approving these sanctions against Iran is to destroy the nuclear deal and we will show a very intelligent reaction to this action,” Araqchi said.

“We are definitely not going to act in a way that get us entangled in the politics of the American government and Trump.”

The new U.S. sanctions, signed a day before Iranian President Hassan Rouhani takes part in a ceremony before being sworn in for a second term, are likely to embolden his hardline critics who say the nuclear deal was a form of capitulation.

The United States is one of six countries to sign up to the deal with Iran, and the others – Russia, China, Britain, France and Germany – have said they see it as a success in easing concerns that Iran might be trying to develop nuclear weapons.

The deal has also meant European countries flocking back to invest in oil-rich Iran, with France’s Total agreeing to develop a new phase of the South Pars gas field, the world’s largest.

Araqchi said the Europeans would not allow Trump to destroy the nuclear deal.

“What Total did and the contract that was signed between this company and Iran sent a message from Europe to the Americans that whatever the conditions they will continue their economic relations with Iran,” he said.

In a separate announcement, Tehran confirmed that Rouhani would keep on two important ministers for his second term: Oil Minister Bijan Zanganeh, who is largely credited for closing the Total deal, and Foreign Minister Mohammad Javad Zarif, Iran’s lead negotiator in the nuclear agreement.

(Reporting by Babak Dehghanpisheh; Writing by Robin Pomeroy; Editing by Louise Ireland)

Tillerson says he and Trump disagree over Iran nuclear deal

Tillerson says he and Trump disagree over Iran nuclear deal

By Yeganeh Torbati

WASHINGTON (Reuters) – U.S. Secretary of State Rex Tillerson acknowledged on Tuesday that he and President Donald Trump disagree over the 2015 Iran nuclear deal, and said the two men discuss how to use the international agreement to advance administration policies.

Trump at times vowed during the 2016 presidential election campaign to withdraw from the agreement, which was signed by the United States, Russia, China and three European powers to curb Iran’s nuclear program in return for lifting most Western sanctions.

Trump has preserved the deal for now, although he has made clear he did so reluctantly after being advised to do so by Tillerson.

“He and I have differences of views on things like JCPOA, and how we should use it,” Tillerson said at a State Department briefing, using the acronym for the deal, formally called the Joint Comprehensive Plan of Action (JCPOA).

Tillerson said that Washington could “tear it up and walk away” or stay in the deal and hold Iran accountable to its terms, which he said would require Iran to act as a “good neighbor.”

Critics say the deal falls short in addressing Iran’s support for foreign fighters in Iraq and Syria, arms shipments around the Middle East and ballistic missile tests.

The White House did not immediately respond to a request for comment on Tillerson’s remarks.

Trump said in an interview with the Wall Street Journal last month that he predicts Iran will be judged “noncompliant” with the Iran deal at the next deadline in October, and that he would have preferred to do so months ago.

Tillerson expressed a more nuanced view of the deal’s potential benefits on Tuesday.

“There are a lot of alternative means with which we use the agreement to advance our policies and the relationship with Iran, and that’s what the conversation generally is around with the president as well,” Tillerson said.

European officials would likely be reluctant to re-impose sanctions, especially the broader measures that helped drive Iran to negotiate over its nuclear program in the first place, he said.

New U.S. sanctions on Iran in July were a breach of the nuclear deal and Tehran had lodged a complaint with the body that oversees the pact’s implementation, a senior Iranian politician said.

Tillerson acknowledged that the United States is limited in how much it can pressure Iran on its own and said it was important to coordinate with the other parties to the agreement.

“The greatest pressure we can put to bear on Iran to change the behavior is a collective pressure,” he said.

(Reporting by Yeganeh Torbati; editing by Grant McCool)

Top Senate Democrat urges Trump to block China deals over North Korea

Senate Minority Leader Chuck Schumer, accompanied by Senator Patty Murray (D-WA) and Senator Debbie Stabenow (D-MI), speaks with reporters following the successful vote to open debate on a health care bill on Capitol Hill in Washington, U.S., July 25, 2017. REUTERS/Aaron P. Bernstein

WASHINGTON (Reuters) – The top Democrat in the U.S. Senate called on President Donald Trump on Tuesday to block some Chinese investments in the United States to pressure China “to help rein in North Korea’s threatening and destabilizing behavior.”

In a letter to Trump, Senate Democratic leader Chuck Schumer urged him to use his authority through the Committee on Foreign Investment in the United States, or CFIUS, to pressure Beijing by suspending approval of “all mergers and acquisitions in the U.S. by Chinese entities.”

Schumer’s request comes amid concern about North Korea, which fired a missile Friday that experts said was capable of hitting Los Angeles. Trump has repeatedly urged China to rein in its ally North Korea, and Schumer agreed.

“It is my assessment that China will not deter North Korea unless the United States exacts greater economic pressure on China,” Schumer wrote to Trump, a Republican. “The U.S. must send a clear message to China’s government.”

Senator John Cornyn, a Republican on the Senate Intelligence Committee, was unconvinced that CFIUS was the right tool.

“That’s not specifically the purpose of CFIUS. CFIUS is a national security vehicle to try to make sure that high-tech investments by foreign countries don’t steal our cutting-edge technology,” Cornyn said outside his Senate office.

“I’m happy to work with Senator Schumer to figure out what his concerns are,” added Cornyn, who has urged changes at CFIUS because of China. His worry, however, was not North Korea but that China would close the technology gap between the U.S. and Chinese militaries.

Led by the U.S. Department of Treasury, CFIUS reviews foreign acquisitions of U.S. companies on national security grounds and can take action on its own or refer cases to the president.

In an interview with Reuters Friday, the top U.S. counter-intelligence official suggested the Trump administration was already working on a plan to toughen CFIUS.

“We’re making significant progress on that, working with both sides of Pennsylvania Avenue,” said William Evanina, National Counterintelligence Executive, referring to the White House and Congress. “I think it’s going to look a lot different than it does now.”

Evanina, whose office oversees U.S. government efforts to counter spying and industrial espionage, declined to be more specific but noted that China’s direct investment in the United States quadrupled from 2015 to 2016, to $48 billion annually.

China’s UN ambassador, on the other hand, has said that it was up to Washington and Pyongyang to work toward talks on North Korea’s weapons programs.

“(The United States and North Korea) hold the primary responsibility to keep things moving, to start moving in the right direction, not China,” China’s U.N. Ambassador Liu Jieyi told reporters on Monday. “No matter how capable China is, China’s efforts will not yield practical results.”

While China worries about North Korea’s nuclear and missile programs, and the U.S. reaction to them, its overriding concern, U.S. officials say, is to avoid a North Korean collapse, which could send millions of refugees fleeing toward China and lead to a reunified Korea allied with Washington.

Schumer’s plan to prohibit CFIUS from approving Chinese deals would be technically legal but would stretch CFIUS’ mandate, CFIUS experts said.

“What sounds like effectively a bar on Chinese investment that is being suggested is probably legal but quite different than the case-by-case process that CFIUS has used in the past,” said Stephen Heifetz of the law firm Steptoe & Johnson LLP who represents clients before CFIUS. “The U.S. government should consider the potential for a Chinese response.”

The task force this year faces what could well be a record number of deals, many of them controversial as Chinese firms scout U.S. targets as varied as hotels and film studios to hedge against a weaker yuan <CNY=>.

(Additional reporting by Diane Bartz, Susan Cornwell and Warren Strobel; Writing by Susan Heavey; Editing by Bill Trott and James Dalgleish)

Trump administration sends conflicting signals on Russia sanctions

U.S. Vice President Mike Pence (L) arrives with Secretary of State Rex Tillerson (R) to attend a joint press conference held by U.S. President Donald Trump and Colombian President Juan Manuel Santos at the White House in Washington, U.S., May 18, 2017. REUTERS/Yuri Gripas

By Yeganeh Torbati

WASHINGTON (Reuters) – President Donald Trump grudgingly accepted new congressional sanctions on Russia, the top U.S. diplomat said on Tuesday, remarks in contrast with those of Vice President Mike Pence, who said the bill showed Trump and Congress speaking “with a unified voice.”

The U.S. Congress voted last week by overwhelming margins for sanctions to punish the Russian government over interference in the 2016 presidential election, annexation of Crimea and other perceived violations of international norms.

U.S. Secretary of State Rex Tillerson told reporters that he and Trump did not believe the new sanctions would “be helpful to our efforts” on diplomacy with Russia.

Trump has been clear that he wants to improve relations with Russia, a desire that has been hamstrung by findings of U.S. intelligence agencies that Russia interfered to help the Republican against Democrat Hillary Clinton. U.S. congressional panels and a special counsel are investigating. Moscow denies any meddling and Trump denies any collusion by his campaign.

Tillerson, who did business in Russia when he was chief executive of Exxon Mobil, has said repeatedly that the world’s two major nuclear powers cannot have such a bad relationship.

“The action by the Congress to put these sanctions in place and the way they did, neither the President nor I were very happy about that,” Tillerson said. “We were clear that we didn’t think it was going to be helpful to our efforts, but that’s the decision they made, they made it in a very overwhelming way. I think the president accepts that.”

Tillerson stopped short of saying definitively that Trump would sign the sanctions, saying only that “all indications are he will sign that bill.”

Vice President Mike Pence, at a press conference in Georgia with Prime Minister Giorgi Kvirikashvili, said unequivocally that “President Trump will sign the Russia sanctions bill soon.”

Pence acknowledged that the administration objected to earlier versions of the sanctions bill because it did not grant enough flexibility to the administration, but said it “improved significantly” in later versions.

“And let me say that in signing the sanction, our President and our Congress are speaking with a unified voice,” Pence said.

White House spokeswoman Sarah Sanders said on Tuesday the sanctions bill was under review and would be signed.

“There’s nothing holding him back,” Sanders said at a news briefing. Trump has until Aug. 9 to sign the bill, or veto it, or it will automatically become law.

In retaliation for the sanctions, Russian President Vladimir Putin said on Sunday that the U.S. diplomatic mission in Russia must reduce its staff by 755 people. Russia is also seizing two properties near Moscow used by American diplomats.

Tillerson said Putin probably believes his response was a symmetrical action to Washington seizing two Russian properties in the United States and expelling 35 diplomats last December.

“Of course it makes our lives more difficult,” he said.

Tillerson said he and Russian Foreign Minister Sergei Lavrov would meet in Manila on the margins of next weekend’s meetings of the Association of Southeast Asian Nations.

(Reporting by Yeganeh Torbati; additional reporting by Ayesha Rascoe and Patricia Zengerle; editing by Grant McCool)