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Trump talks to Putin, other world leaders about security threats

By Jeff Mason

WASHINGTON (Reuters) – President Donald Trump discussed Syria and the fight against Islamic State with Russian President Vladimir Putin on Saturday in one of several calls with world leaders that the new U.S. president used to put his stamp on international affairs.

Trump’s call with Putin was their first since the New York businessman took office and came as officials said he was considering lifting sanctions on Moscow despite opposition from Democrats and Republicans at home and European allies abroad.

Neither the White House nor the Kremlin mentioned a discussion of sanctions in their statements about the roughly hour-long call.

“The positive call was a significant start to improving the relationship between the United States and Russia that is in need of repair,” the White House said. “Both President Trump and President Putin are hopeful that after today’s call the two sides can move quickly to tackle terrorism and other important issues of mutual concern.”

Former President Barack Obama strongly suggested in December that Putin personally authorized the computer hacks of Democratic Party emails that U.S. intelligence officials say were part of a Russian effort aimed at helping Trump beat Democrat Hillary Clinton in the Nov. 8 election.

Trump’s relationship with Russia is being closely watched by the European Union, which teamed up with the United States to punish Moscow after its annexation of Crimea from Ukraine.

Trump spoke to two top EU leaders, German Chancellor Angela Merkel and French President Francois Hollande, on Saturday in addition to Japanese Prime Minister Shinzo Abe and Australian Prime Minister Malcolm Turnbull.

His call with Merkel, who had a very close relationship with Trump’s predecessor, former President Barack Obama, included a discussion about Russia, the Ukraine crisis, and NATO, the U.S. and German governments said.

Trump has described NATO as being obsolete, a comment that has alarmed long-time U.S. allies. A White House statement said he and Merkel agreed NATO must be capable of confronting “21rst century threats.”

Trump’s executive order restricting travel and instituting “extreme vetting” of visitors from seven Muslim-majority countries already puts him at odds with Merkel, whose embrace of Syrian refugees was praised by Obama even as it created political problems for her domestically.

Trump has said previously that Merkel made a “catastrophic mistake” by permitting more than a million refugees, mostly Muslims fleeing war in the Middle East, to come to her country.

In his call with Hollande, Trump “reaffirmed the U.S. commitment to NATO and noted the importance of all NATO allies sharing the burden on defense spending,” the White House said.

Hollande warned Trump against taking a protectionist approach, which he said would have economic and political consequences, according to a statement from the French president’s office.

The refugee order created confusion and chaotic scenes in airports on Saturday and largely overshadowed the news of Trump’s calls with foreign leaders, which took place throughout the day and which photographers captured in photos and video outside the Oval Office.

During his call with Japan’s Abe, Trump affirmed an “ironclad” U.S. commitment to ensuring Japan’s security. The two leaders also discussed the threat posed by North Korea. They plan to meet in Washington early next month.

Trump spoke to Australia’s Turnbull for 25 minutes and emphasized the close relationship between the two countries.

(additional reporting by Roberta Rampton, Andrea Shalal, Andrew Osborn, Alexander Winning, and Kiyoshi Takenaka; Editing by Nick Zieminski)

Trump tells Republican lawmakers: Enough talk. Time to deliver

By Richard Cowan and Susan Cornwell

PHILADELPHIA (Reuters) – President Donald Trump pushed Republican lawmakers on Thursday for swift action on a sweeping agenda including his planned U.S.-Mexican border wall, tax cuts and repealing the Obamacare law, despite tensions over timetables and priorities.

Congressional Republicans were in Philadelphia for a three-day retreat to hammer out a legislative agenda, with the party in control of the White House, Senate and House of Representatives for the first time in a decade.

“This Congress is going to be the busiest Congress we’ve had in decades, maybe ever,” Trump said in a speech to the lawmakers at a Philadelphia hotel.

“Enough ‘all talk, no action.’ We have to deliver,” Trump added.

But Trump did not hold an expected question-and-answer session with the lawmakers, and his speech veered into side issues such as predicting crowd size for an anti-abortion march in Washington, alleging American voting irregularities and touting winning Pennsylvania in the Nov. 8 election.

House of Representatives Speaker Paul Ryan, who initially hesitated in endorsing Trump last year and has criticized him on some issues, disputed the notion that congressional Republicans were not in synch with the New York businessman who was sworn in less than a week ago having never previously held public office.

“We are on the same page with the White House,” Ryan said during a joint news conference with Senate Majority Leader Mitch McConnell.

“This is going to be an unconventional presidency,” Ryan added. “I think you know this by now. … I think we’re going to see unconventional activities like tweets and things like that. I think that’s just something that we’re all going to have to get used to.”

Trump pressed the lawmakers for action on repealing and replacing Democratic former President Barack Obama’s Affordable Care Act, known as Obamacare, even as Republicans scramble to devise a replacement plan, and lowering taxes on “all American businesses” and the middle class.

For weeks, Republicans talked about formulating an agenda for the first 100 days of Trump’s presidency. In recent days, the talk has turned into a 200-day agenda for passing major legislation before the lawmakers’ August recess.

“It’s going to take more than simply 100 days,” Ryan said.

Ryan said that it is “our goal is to get these laws done in 2017,” without guaranteeing that a replacement for Obamacare and a tax reform bill would be enacted by the end of December.

McConnell said lawmakers will take up legislation to provide $12 billion to $15 billion to pay for Trump’s planned wall along the U.S.-Mexico border. Trump signed an executive order on Wednesday for the wall to proceed, part of a package of measures aimed at curbing illegal immigration, although the action has tested already frayed relations with Mexico.

House Republican leader Kevin McCarthy said the pace of legislative action may frustrate Trump.

“President Trump comes from a different world,” McCarthy told reporters. “Out in the business community, he likes things done fast, and he’s going to continue to push them.”

PROTESTS IN PHILADELPHIA

Thousands of anti-Trump protesters took to the streets in Philadelphia, a heavily Democratic bastion that is one of the cities that could be stripped of federal funds for protecting illegal immigrants under a Trump directive.

Marchers carried signs including, “Fascist Pig,” “Protect My Health Care,” “Immigration Makes America Great,” “Planet Over Profit” and “Impeach Trump.”

During his speech, Trump took time to explain his side of the story on Mexico’s president canceling a meeting next week because of Trump’s insistence that America’s southern neighbor eventually pay for the wall. Mexico has said it will not.

Trump said a tax reform bill “will reduce our trade deficits, increase American exports and will generate revenue from Mexico that will pay for the wall, if we decide to go that route.”

McConnell and Ryan did not say whether Congress would offset the wall’s cost by cutting other programs or simply add to huge budget deficits that Republicans have criticized for years.

Ryan and McConnell also indicated congressional Republicans do not plan to modify U.S. law banning torture even as Trump considers bringing back a CIA program for holding terrorism suspects in secret overseas “black site” prisons where interrogation techniques often condemned as torture were used.

“I think the director of the CIA (Mike Pompeo) has made it clear he’s going to follow the law. And I believe virtually all of my members are comfortable with the state of the law on that issue now,” McConnell said.

“Torture’s not legal,” Ryan said. “And we agree with it not being legal.

In a highly unusual move for a visiting foreign leader, British Prime Minister Theresa May, who will see Trump in Washington on Friday, addressed the retreat, calling herself a “fellow conservative who believes in the same principles that underpin the agenda of your party.”

She was loudly applauded for praising Trump’s victory.

“Because of what you have done together, because of that great victory you have won, America can be stronger, greater, and more confident in the years ahead,” May said.

(Additional reporting by David Morgan and Doina Chiacu; Writing by Will Dunham; Editing by Frances Kerry and Cynthia Osterman)

U.S.-Mexico crisis deepens as Trump aide floats border tax idea

boy watches as U.S. workers build wall between U.S. and Mexico

By Steve Holland and Miguel Gutierrez

PHILADELPHIA/MEXICO CITY (Reuters) – The White House on Thursday floated the idea of imposing a 20 percent tax on goods from Mexico to pay for a wall at the southern U.S. border, sending the peso tumbling and deepening a crisis between the two neighbors.

Mexican President Enrique Pena Nieto announced on Twitter around midday on Thursday that he was scrapping a planned trip to meet with U.S. President Donald Trump, who has repeatedly demanded that Mexico pay for a wall on the U.S. border.

Later in the day, White House spokesman Sean Spicer sent the Mexican peso falling to its low for the day when he told reporters that Trump wanted a 20 percent tax on Mexican imports to pay for construction of the wall.

Spicer gave few details, but his comments resembled an existing idea, known as a border adjustment tax, that the Republican-led U.S. House of Representatives is considering as part of a broad tax overhaul.

The White House said later its proposal was in the early stages. Asked if Trump favored a border adjustment tax, White House Chief of Staff Reince Priebus said such a tax would be “one way” of paying for the border wall.

“It’s a buffet of options,” he said.

The plan being weighed by House Republicans would exempt export revenues from taxation but impose a 20 percent tax on imported goods, a significant change from current U.S. policy.

“If you tax exports from Mexico into the United States, you’re going to make things ranging from avocados to appliances to flat-screen tvs, you’re going to make them more expensive,” Mexican Foreign Minister Luis Videgaray told reporters at the Mexican Embassy in Washington on Thursday night.

Countries like Mexico would not pay such taxes directly. Companies would face the tax if they import products made there into the United States, potentially raising prices for American consumers.

The idea is unpopular with retailers and businesses that sell imported goods in the United States. It also has met opposition from some lawmakers worried about the impact on U.S. consumers.

Trump himself appeared to pan the idea in a Wall Street Journal interview last week, saying the House border adjustment provision was “too complicated.”

Even after Trump’s comments, congressional Republicans have continued to discuss the issue with White House officials in an effort to bring them on board with the idea.

RIFT WITH MEXICO

Trump, who visited Republican lawmakers at their policy retreat in Philadelphia, told them he would use tax reform legislation to pay for the border wall.

“We’re working on a tax reform bill that will reduce our trade deficits, increase American exports and will generate revenue from Mexico that will pay for the wall if we decide to go that route,” he said.

Trump, who took office last week, views the wall, a major promise during his election campaign, as part of a package of measures to curb illegal immigration. Mexico has long insisted it will not heed Trump’s demands to pay for the construction project.

He signed an executive order for construction of the wall on Wednesday. The move provoked outrage in Mexico. A planned meeting between Videgaray and U.S. Homeland Security Secretary John Kelly was canceled, a department spokeswoman said.

Videgaray said Mexico would work with Trump but that paying for the wall was out of the question.

“There are things that go beyond negotiation,” he said. “This is about our dignity and our pride.”

Pena Nieto, who had been under pressure to cancel the summit, tweeted on Thursday: “We have informed the White House that I will not attend the working meeting planned for next Tuesday with @POTUS.”

Trump had tweeted earlier that it would be better for the Mexican leader not to come if Mexico would not pay for the wall. He said later the meeting was canceled by mutual agreement.

Relations have been frayed since Trump launched his presidential campaign in 2015, characterizing Mexican immigrants as murderers and rapists. His trade rhetoric has hit the Mexican economy, causing consumers to rein in spending and foreign businesses to wait on new investments, according to the International Monetary Fund.

Trump has vowed to renegotiate the North American Free Trade Agreement with Mexico and Canada and slap high tariffs on American companies that have moved jobs south of the border.

Mexico ships 80 percent of its exports to the United States, and about half of Mexico’s foreign direct investment has come from its northern neighbor over the past two decades.

The United States runs a $58.8 billion trade deficit with Mexico, according to the latest U.S. government figures. But Mexico is also the United States’ second-largest export market.

(Additional reporting by Roberta Rampton and Ayesha Rascoe in Washington, David Morgan in Philadelphia and Frank Jack Daniel, Dave Graham and Christine Murray in Mexico City; Writing by Emily Stephenson; Editing by Alistair Bell and Peter Cooney)

Hungary set on closer ties with Russia, U.S.: foreign minister

By Krisztina Than and Marton Dunai

BUDAPEST (Reuters) – Hungary favors closer ties with Russia and also expects links with the United States to improve markedly under President Donald Trump, whose criticism of NATO’s strategy on terrorism it endorses, its foreign minister said on Friday.

In an interview with Reuters days before Russian President Vladimir Putin visits Budapest to discuss closer energy ties, Peter Szijjarto also said the European Union’s sanctions regime against Moscow was ineffective and should be scrapped.

“Hungary’s position on the sanctions is that (they are) useless,” Szijjarto said, estimating Hungary had lost export opportunities worth $6.5 billion since they were introduced in place in 2014.

“Should we be happy with Russia’s economy declining? No, we regret that,” he said, adding that Budapest did not view Moscow as a threat.

Hungary, a member of NATO and the EU, has remained on good terms with Russia under the sanctions regime, imposed following its annexation of Crimea in March 2014 and its subsequent involvement in the separatist conflict in Ukraine.

Prime Minister Viktor Orban has in the past criticized the sanctions, and his overall relations with EU authorities have been less smooth, with Budapest notably defying Brussels over the latter’s attempt to introduce a quota system for hosting refugees.

Speaking in English, Szijjarto said the sanctions had also damaged the wider European economy and failed politically as they had not persuaded Russia to honor the four-power Minsk agreement to end the fighting in eastern Ukraine.

His preference would be for “really high level” talks to find new footing for relations with Russia.

“I don’t see Russia as a threat on Hungary. I understand and respect that our Polish friends, Baltic friends have another position on that… Russia would not attack any NATO member state. I don’t think it would be in Russia’s interest.”

TALKING ENERGY

Szijjarto said Hungary, which will host Putin on Feb. 2, is already looking at ways to extend cooperation on natural gas supplies with Russia beyond 2021.

“We have to start now,” he said, adding Budapest would like to develop alternative energy sources but Russia was far more reliable than European partners, which had failed to build the necessary infrastructure to reduce reliance on Russian gas.

Hungary is also pressing ahead with the construction of two new power blocks at its Paks nuclear plant, a 10 billion euro deal with Moscow that has come under scrutiny from Brussels, with a state aid probe still pending.

Once that probe gives the green light, “we will start (construction) immediately,” Szijjarto said.

Budapest also expects a “massive improvement” in ties with Washington, he said, agreeing with Trump’s view that NATO had failed to defend successfully against the threat of terrorism.

“Currently if we speak about threats …I see ISIS as a threat… A non-state actor is the most serious threat to the civilized world. And in this regard, I think yes, NATO could have a bigger role.”

Hungary’s Prime Minister Viktor Orban clashed with the Barack Obama administration over what critics said was an erosion of democratic values by his government.

Last year Orban was one of the first international leaders to endorse Trump, who, Szijjarto said would no longer “interfere into the internal political issues of Hungary.”

“Now as the new President made it very clear that export of democracy is out of the focus of US foreign policy… this kind of pressure… will disappear,” he said.

(editing by John Stonestreet)

Philippines says U.S. military to upgrade bases, defense deal intact

Philippine President Duterte discusses U.S. bases on Philippines

By Manuel Mogato

MANILA (Reuters) – The United States will upgrade and build facilities on Philippine military bases this year, Manila’s defense minister said on Thursday, bolstering an alliance strained by President Rodrigo Duterte’s opposition to a U.S. troop presence.

The Pentagon gave the green light to start the work as part of an Enhanced Defence Cooperation Agreement (EDCA), a 2014 pact that Duterte has threatened to scrap during barrages of hostility towards the former colonial power.

“EDCA is still on,” Defence Secretary Delfin Lorenzana told a news conference.

EDCA allows the expansion of rotational deployment of U.S. ships, aircraft and troops at five bases in the Philippines as well as the storage of equipment for humanitarian and maritime security operations.

Lorenzana said Washington had committed to build warehouses, barracks and runways in the five agreed locations and Duterte was aware of projects and had promised to honor all existing agreements with the United States.

This week, Republican U.S. Senator John McCain, who headed the U.S. Senate’s Armed Services Committee, proposed $7.5 billion of new military funding for U.S. forces and their allies in the Asia-Pacific.

The geopolitical landscape in Asia has been shaken up by Duterte’s grudge against Washington, his overtures towards erstwhile adversary China, and the election of U.S. President Donald Trump, whose administration has indicated it may take a tough line on China’s activities in the South China Sea.

The Philippines has said it wants no part in anything confrontational in the strategic waterway and will not jeopardize promises of extensive Chinese trade and investment, and offers of military hardware, that Duterte has got since he launched his surprise foreign policy shift.

Lorenzana said the Philippines had asked China for two to three fast boats, two drones, sniper rifles and a robot for bomb disposal, in a $14 million arms donation from China.

The arms package would be used to support operations against Islamist Abu Sayyaf militants in the southern Philippines, he said.

“If these are quality equipment, we will probably buy more,” he said.

Lorenzana said Russia was offering hardware such as ships, submarines, planes and helicopters.

As with China, those offers have come as a result of a charm offensive by Duterte, who has praised Russia and its leadership. He last year said if Russia and China started a “new order” in the world, he would be the first to join.

Duterte was infuriated by U.S. expressions of concern about extra-judicial killings in a campaign against drugs he launched after he took office in June.

(Editing by Martin Petty, Robert Birsel)

Venezuela’s opposition revives push to end Maduro’s rule

Protesters in Venezuela hold sign that reads "Let us vote"

By Diego Oré and Anggy Polanco

CARACAS/SAN CRISTOBAL, Venezuela (Reuters) – Offering prized bags of flour to police and hurling empty medicine boxes on the floor, Venezuelan opposition protesters launched a new push on Monday to force President Nicolas Maduro from power and end 18 years of socialist rule.

Turnout for the opposition’s first rallies of 2017 was not massive, reflecting disillusionment over last year’s failure to bring about a referendum to recall the 54-year-old leader and successor to Hugo Chavez.

But those who did march in a string of rallies around the country turned creative in their complaints about the South American OPEC nation’s unprecedented economic crisis.

In the politically volatile western state of Tachira, long a hotbed of anti-Maduro sentiment, some demonstrators proffered flour – an increasingly scarce and expensive commodity during the nation’s three-year recession – to police, witnesses said.

In Caracas, where several thousand opposition supporters marched, some threw empty medicine cartons on the floor to symbolize shortages afflicting the health sector.

Security forces fired teargas in Tachira to stop protesters from reaching an office of the National Election Council, while in Caracas they used tear gas against people blocking a highway.

With many of Venezuela’s 30 million people skipping meals, unable to pay soaring prices for basic goods and facing long lines for scarce subsidized products, Maduro, who won a 2013 election to succeed Chavez, has become deeply unpopular.

Polls showed a majority of Venezuelans wanted a referendum last year which could have brought his rule to an early end and sparked a presidential vote. But compliant courts and election authorities thwarted the move, alleging fraud in signature collections.

“This government is scared of votes, and the election council is the instrument they use to avoid them,” said housewife Zoraida Castro, 46, during a march to the election council’s office in southern Ciudad Bolivar city.

The opposition Democratic Unity coalition is demanding dates for regional elections that are supposed to happen this year, and also urging Maduro to hold a new presidential ballot.

“It’s a day of struggle in Venezuela,” said coalition secretary general Jesus Torrealba, in Barquisimeto town to show solidarity with a Catholic archbishop whose residence was recently attacked after he criticized the government.

Maduro’s six-year term is due to end in early 2019.

Red-shirted government supporters, who accuse the opposition of seeking a coup with U.S. connivance, were also marching on Monday, a politically significant day for Venezuelans: the anniversary of the 1958 fall of dictator Marcos Perez Jimenez.

They gathered at the National Pantheon building to honor leftist guerrilla Fabricio Ojeda, who was murdered in 1966.

(Additional reporting by German Dam in Ciudad Bolivar, Anggy Polanco in San Cristobal; Writing by Andrew Cawthorne; Editing by Alexandra Ulmer and Paul Simao)

North Korean elite turning against leader Kim: defector

By James Pearson

SEOUL (Reuters) – The North Korean elite are outwardly expressing their discontent towards young leader Kim Jong Un and his government as more outside information trickles into the isolated country, North Korea’s former deputy ambassador to London said on Wednesday.

Thae Yong Ho defected to South Korea in August last year and since December 2016 has been speaking to media and appearing on variety television shows to discuss his defection to Seoul and his life as a North Korean envoy.

“When Kim Jong Un first came to power, I was hopeful that he would make reasonable and rational decisions to save North Korea from poverty, but I soon fell into despair watching him purging officials for no proper reasons,” Thae said during his first news conference with foreign media on Wednesday.

“Low-level dissent or criticism of the regime, until recently unthinkable, is becoming more frequent,” said Thae, who spoke in fluent, British-accented English.

“We have to spray gasoline on North Korea, and let the North Korean people set fire to it.”

Thae, 54, has said publicly that dissatisfaction with Kim Jong Un prompted him to flee his post. Two university-age sons living with him and his wife in London also defected with him.

North and South Korea are technically still at war because their 1950-53 conflict ended in a truce, not a peace treaty. The North, which is subject to U.N. sanctions over its nuclear and missile programs, regularly threatens to destroy the South and its main ally, the United States.

Thae is the most senior official to have fled North Korea and entered public life in the South since the 1997 defection of Hwang Jang Yop, the brains behind the North’s governing ideology, “Juche”, which combines Marxism and extreme nationalism.

Today’s North Korean system had “nothing to do with true communism”, Thae said, adding that the elite, like himself, had watched with unease as countries like Cambodia, Vietnam and the former Soviet Union embraced economic and social reforms.

Thae has said that more North Korean diplomats are waiting in Europe to defect to South Korea.

North Korea still outwardly professes to maintain a Soviet-style command economy, but for years a thriving network of informal markets and person-to-person trading has become the main source of food and money for ordinary people.

Fully embracing these reforms would end Kim Jong Un’s rule, Thae said. Asked if Kim Jong Un’s brother, Kim Jong Chol, could run the country instead, Thae remained skeptical.

“Kim Jong Chol has no interest in politics. He is only interested in music,” Thae said.

“He’s only interested in Eric Clapton. If he was a normal man, I’m sure he’d be a very good professional guitarist”.

(Reporting by James Pearson; Editing by Nick Macfie)

Trump to choose Supreme Court justice nominee on Feb. 2

WASHINGTON (Reuters) – U.S. President Donald Trump said on Wednesday he will make his choice to fill the vacancy on the U.S. Supreme Court on Feb. 2 as he seeks to restore the conservative majority on the Supreme Court.

Trump announced the date in Twitter message one day after meeting with key U.S. senators and promising to unveil his nominee to fill the vacancy left by the death of conservative Justice Antonin Scalia nearly a year ago.

Three U.S. appeals court judges are among those under close consideration by Trump, who took office last Friday and had said he would act on a nominee next week.

Appointment as a Supreme Court justice requires Senate confirmation for the lifetime post. Trump’s fellow Republicans control the Senate with a 52-48 majority, but Democrats could potentially try to block the nomination using procedural hurdles.

On Tuesday, Senate Democratic Leader Chuck Schumer said he told Trump in the meeting that Democrats would fight any nominee they consider to be outside the mainstream.

Trump is in position to name Scalia’s replacement because the Republican-led U.S. Senate last year refused to consider Democratic President Barack Obama’s nominee, appeals court judge Merrick Garland.

The current frontrunners include three conservative jurists who were appointed to the bench by Republican former President George W. Bush: Neil Gorsuch, a judge on the Denver-based 10th U.S. Circuit Court of Appeals; Thomas Hardiman, who serves on the Philadelphia-based 3rd U.S. Circuit Court of Appeals; and William Pryor, a judge on the Atlanta-based 11th U.S. Circuit Court of Appeals.

(Reporting by Lawrence Hurley, Susan Heavey and Doina Chiacu; Editing by Chizu Nomiyama and Frances Kerry)

Trump invites Netanyahu to Washington for visit: White House

By Ayesha Rascoe and Matt Spetalnick

WASHINGTON (Reuters) – President Donald Trump invited Israeli Prime Minister Benjamin Netanyahu to visit Washington in early February during a phone call in which they discussed the importance of strengthening the U.S.-Israeli relationship, the White House said on Sunday.

In his first call with Netanyahu since taking office on Friday, Trump stressed his “unprecedented commitment to Israel’s security.”

“The president and the prime minister agreed to continue to closely consult on a range of regional issues, including addressing the threats posed by Iran,” the White House said in a statement.

Trump also said peace between Israel and the Palestinians could only be negotiated between the two parties, but that the United States would work with Israel to achieve that goal.

Relations between Israel and the Obama administration ended on a contentious note, when the United States declined to veto a U.N. Security Council resolution calling for a halt to Israeli settlement-building.

The readout from the White House did not include any mention of moving the U.S. embassy in Israel to Jerusalem from Tel Aviv, an action that would likely spark anger in the Arab world.

Earlier on Sunday, the White House said it was only in the early stages of talks to fulfill Trump’s campaign pledge to relocate the embassy.

“We are at the very beginning stages of even discussing this subject,” White House spokesman Sean Spicer said in a statement. Aides said no announcement of an embassy move was imminent.

Washington’s embassy is in Tel Aviv, as are most foreign diplomatic posts. Israel calls Jerusalem its eternal capital, but Palestinians also lay claim to the city as part of an eventual Palestinian state. Both sides cite biblical, historical and political claims.

Any decision to break with the status quo is likely to prompt protests from U.S. allies in the Middle East such as Saudi Arabia, Jordan and Egypt. Washington relies on those countries for help in fighting the Islamic State militant group, which the new U.S. president has said is a priority.

The U.S. Congress passed a law in 1995 describing Jerusalem as the capital of Israel and saying it should not be divided, but successive Republican and Democratic presidents have used their foreign policy powers to maintain the embassy in Tel Aviv and to back negotiations between Israel and the Palestinians on the status of Jerusalem.

In early December, then-President Barack Obama renewed the presidential waiver on an embassy move until the beginning of June. It is unclear whether Trump would be able to legally override it and go ahead with relocation of the embassy.

U.S. diplomats say that, despite the U.S. legislation, Washington’s foreign policy is in practice broadly aligned with that of the United Nations and other major powers, which do not view Jerusalem as Israel’s capital and do not recognize Israel’s annexation of Arab East Jerusalem after its capture in the 1967 Middle East war.

Israel approved building permits on Sunday for hundreds of homes in three East Jerusalem settlements in expectation that Trump will row back on the previous administration’s criticism of such projects.

(Reporting by Ayesha Rascoe, Warren Strobel and Matt Spetalnick; Editing by Howard Goller and Paul Simao)

Executive actions ready to go as Trump prepares to take office

By Ayesha Rascoe and Julia Edwards Ainsley

WASHINGTON (Reuters) – Donald Trump is preparing to sign executive actions on his first day in the White House on Friday to take the opening steps to crack down on immigration, build a wall on the U.S.-Mexican border and roll back outgoing President Barack Obama’s policies.

Trump, a Republican elected on Nov. 8 to succeed Democrat Obama, arrived in Washington on a military plane with his family a day before he will be sworn in during a ceremony at the U.S. Capitol.

Aides said Trump would not wait to wield one of the most powerful tools of his office, the presidential pen, to sign several executive actions that can be implemented without the input of Congress.

“He is committed to not just Day 1, but Day 2, Day 3 of enacting an agenda of real change, and I think that you’re going to see that in the days and weeks to come,” Trump spokesman Sean Spicer said on Thursday, telling reporters to expect activity on Friday, during the weekend and early next week.

Trump plans on Saturday to visit the headquarters of the CIA in Langley, Virginia. He has harshly criticized the agency and its outgoing chief, first questioning the CIA’s conclusion that Russia was involved in cyber hacking during the U.S. election campaign, before later accepting the verdict. Trump also likened U.S. intelligence agencies to Nazi Germany.

Trump’s advisers vetted more than 200 potential executive orders for him to consider signing on healthcare, climate policy, immigration, energy and numerous other issues, but it was not clear how many orders he would initially approve, according to a member of the Trump transition team who was not authorized to talk to the press.

Signing off on orders puts Trump, who has presided over a sprawling business empire but has never before held public office, in a familiar place similar to the CEO role that made him famous, and will give him some early victories before he has to turn to the lumbering process of getting Congress to pass bills.

The strategy has been used by other presidents, including Obama, in their first few weeks in office.

“He wants to show he will take action and not be stifled by Washington gridlock,” said Princeton University presidential historian Julian Zelizer.

Trump is expected to impose a federal hiring freeze and take steps to delay a Labor Department rule due to take effect in April that would require brokers who give retirement advice to put their clients’ best interests first.

He also will give official notice he plans to withdraw from the 12-nation Trans-Pacific Partnership trade deal and renegotiate the North American Free Trade Agreement with Canada and Mexico, Spicer said. “I think you will see those happen very shortly,” Spicer said.

Obama, ending eight years as president, made frequent use of his executive powers during his second term in office, when the Republican-controlled Congress stymied his efforts to overhaul immigration and environmental laws. Many of those actions are now ripe targets for Trump to reverse.

BORDER WALL

Trump is expected to sign an executive order in his first few days to direct the building of a wall on the southern border with Mexico, and actions to limit the entry of asylum seekers from Latin America, among several immigration-related steps his advisers have recommended.

That includes rescinding Obama’s order that allowed more than 700,000 people brought into the United States illegally as children to stay in the country on a two-year authorization to work and attend college, according to several people close to the presidential transition team.

It is unlikely Trump’s order will result in an immediate roundup of these immigrants, sources told Reuters. Rather, he is expected to let the authorizations expire.

The issue could set up a confrontation with Obama, who told reporters on Wednesday he would weigh in if he felt the new administration was unfairly targeting those immigrants.

Advisers to Trump expect him to put restrictions on people entering the United States from certain countries until a system for “extreme vetting” for Islamist extremists can be set up.

During his presidential campaign, Trump proposed banning non-American Muslims from entering the United States, but his executive order regarding immigration is expected to be based on nationality rather than religion.

Another proposed executive order would require all Cabinet departments to disclose and pause current work being done in connection with Obama’s initiatives to curb carbon emissions to combat climate change.

Trump also is expected to extend prohibitions on future lobbying imposed on members of his transition team.

‘THE HIGHEST IQ’

Washington was turned into a virtual fortress ahead of the inauguration, with police ready to step in to separate protesters from Trump supporters at any sign of unrest.

As Obama packed up to leave the White House, Trump and his family laid a wreath at the Tomb of the Unknown Soldier in Arlington National Cemetery and attended a concert at the Lincoln Memorial.

Trump spoke earlier to lawmakers and Cabinet nominees at a luncheon in a ballroom at his hotel, down the street from the White House, announcing during brief remarks that he would pick Woody Johnson, owner of the New York Jets of the National Football League, as U.S. ambassador to Britain.

“We have a lot of smart people. I tell you what, one thing we’ve learned, we have by far the highest IQ of any Cabinet ever assembled,” Trump said.

Trump has selected all 21 members of his Cabinet, along with six other key positions requiring Senate confirmation. The Senate is expected on Friday to vote to confirm retired General James Mattis, Trump’s pick to lead the Pentagon, and retired General John Kelly, his homeland security choice.

Senate Republicans had hoped to confirm as many as seven Cabinet members on Friday, but Democrats balked at the pace. Trump spokesman Spicer accused Senate Democrats of “stalling tactics.”

Also in place for Monday will be 536 “beachhead team members” at government agencies, Vice President-elect Mike Pence said, a small portion of the thousands of positions Obama’s appointees will vacate.

Trump has asked 50 Obama staffers in critical posts to stay on until replacements can be found, including Deputy Defense Secretary Robert Work and Brett McGurk, envoy to the U.S.-led coalition fighting Islamic State.

The list includes Adam Szubin, who has long served in an “acting” capacity in the Treasury Department’s top anti-terrorism job because his nomination has been held up by congressional Republicans since Obama named him to the job in April 2015.

The Supreme Court said U.S. Chief Justice John Roberts, who will administer the oath of office on Friday, met with Trump on Thursday to discuss inauguration arrangements.

(Additional reporting by Steve Holland, David Shepardson, Susan Heavey, David Alexander, Doina Chiacu, Ayesha Rascoe, Ginger Gibson, Mike Stone, Emily Stephenson, David Brunnstrom and Lawrence Hurley)

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