China agrees U.N. action, and talk, needed to end North Korea crisis

Terminal High Altitude Area Defense (THAAD) interceptors are seen as they arrive at Seongju, South Korea, September 7, 2017. Lee Jong-hyeon/News1 via REUTERS

By Christian Shepherd and Katya Golubkova

BEIJING/VLADIVOSTOK, Russia (Reuters) – China agreed on Thursday that the United Nations should take more action against North Korea after its latest nuclear test, while also pushing for dialogue to help resolve the standoff.

North Korea, which is pursuing its nuclear and missile programs in defiance of international condemnation, said it would respond to any new U.N. sanctions and U.S. pressure with “powerful counter measures”, accusing the United States of aiming for war.

The United States wants the U.N. Security Council to impose an oil embargo on North Korea, ban its exports of textiles and the hiring of North Korean laborers abroad, and to subject leader Kim Jong Un to an asset freeze and travel ban, according to a draft resolution seen by Reuters on Wednesday.

Pressure from Washington has ratcheted up since North Korea conducted its sixth and largest nuclear test on Sunday. That test, along with a series of missile launches, showed it was close to achieving its goal of developing a powerful nuclear weapon that could reach the United States.

“Given the new developments on the Korean peninsula, China agrees that the U.N. Security Council should make a further response and take necessary measures,” Chinese Foreign Minister Wang Yi told reporters.

“Any new actions taken by the international community against the DPRK should serve the purpose of curbing the DPRK’s nuclear and missile programs, while at the same time be conducive to restarting dialogue and consultation,” he said, referring to North Korea by the initials of its official name, the Democratic People’s Republic of Korea.

China is by far North Korea’s biggest trading partner, accounting for 92 percent of two-way trade last year. It also provides hundreds of thousands of tonnes of oil and fuel to the impoverished regime.

U.S. President Donald Trump has urged China to do more to rein in its neighbor, which was typically defiant on Thursday.

“We will respond to the barbaric plotting around sanctions and pressure by the United States with powerful counter measures of our own,” North Korea said in a statement by its delegation to an economic forum in Vladivostok, in Russia’s Far East.

U.S. Treasury Secretary Steve Mnuchin said he had an executive order ready for Trump to sign that would impose sanctions on any country that trades with North Korea, if the United Nations did not put new sanctions on it.

‘DIRTY POLITICS’

Japanese Prime Minister Shinzo Abe and South Korean President Moon Jae-in spoke at the regional meeting in Vladivostok and agreed to try to persuade China and Russia to cut off oil to North Korea as much as possible, according to South Korean officials.

North Korea accused South Korea and Japan of “dirty politics” for what it said was the highjacking a meeting meant to be about economic development.

Russian President Vladimir Putin said at the meeting he thought the North Korea crisis would not escalate into nuclear war, predicting that common sense would prevail.

But he said he believed North Korea’s leadership feared that any freeze of its nuclear program would be followed by what amounted to “an invitation to the cemetery”.

North Korea says it needs its weapons to protect itself from U.S. aggression.

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

China and Russia have advocated a “freeze for freeze” plan, under which the United States and South Korea would stop major military exercises in exchange for North Korea halting its weapons programs.

But neither side appears willing to budge.

Abe later met Putin at the Vladivostok conference and said they both agreed that North Korea’s nuclear test was a serious threat to regional peace and a challenge to global nuclear non-proliferation regime.

Putin said he and Abe decisively condemned North Korea’s launch of a ballistic missile that flew over Japan last week.

THAAD DEPLOYMENT

Amid the rising tension, South Korea installed the four remaining launchers of a U.S. anti-missile Terminal High Altitude Area Defense (THAAD) system on a former golf course south of its capital, Seoul, early on Thursday. Two launchers had already been deployed.

More than 30 people were hurt when about 8,000 police broke up a blockade near the site by about 300 villagers and members of civic groups opposed to the THAAD deployment, fire officials said.

The deployment has drawn strong objections from China, which believes the system’s radar could be used to look deeply into its territory and will upset the regional security balance.

China lodged another stern protest on Thursday.

“We again urge South Korea and the United States to take seriously China’s and regional nations’ security interests and concerns, stop the relevant deployment progress, and remove the relevant equipment,” Foreign Ministry spokesman Geng Shuang told a regular media briefing.

South Korean Marines wrapped up a three-day firing drill aimed at protecting islands just south of the border with North Korea, while the air force will finish up a week-long drill on Friday.

For a graphic on nuclear North Korea, click: http://fingfx.thomsonreuters.com/gfx/rngs/NORTHKOREA-MISSILES/010031V7472/index.html

(Additional reporting by Christine Kim and Soyoung Kim in SEOUL, Christian Shepherd and Vincent Lee in BEIJING, Oksana Kobzeva and Denis Pinchuk in VLADIVOSTOK, Steve Holland, Eric Walsh, Jeff Mason and Jim Oliphant in WASHINGTON and Kiyoshi Takenaka in TOKYO; Writing by Lincoln Feast; Editing by Paul Tait, Robert Birsel and Nick Macfie)

Trump says U.S. not ‘putting up with’ North Korea’s actions

Trump says U.S. not 'putting up with' North Korea's actions

By Jeff Mason and Michael Martina

WASHINGTON/BEIJING (Reuters) – President Donald Trump warned on Wednesday that the United States would no longer tolerate North Korea’s actions but said the use of military force against Pyongyang will not be his “first choice.”

His comment appeared to be in line with classified briefings to Congress in which Trump’s top national security aides – Defense Secretary Jim Mattis, Secretary of State Rex Tillerson and Dan Coats, the director of national intelligence – stressed the search for a diplomatic solution to the crisis, lawmakers said.

A senior administration official, meanwhile, said that the White House has set aside for now consideration of exiting a free trade pact with South Korea, a move being contemplated by Trump that could have complicated relations with Seoul.

In a flurry of phone calls with world leaders days after North Korea’s sixth and most powerful nuclear test, Trump and Chinese President Xi Jinping committed to “take further action with the goal of achieving the denuclearization of the Korean peninsula,” the White House said.

“President Xi would like to do something. We’ll see whether or not he can do it. But we will not be putting up with what’s happening in North Korea,” Trump told reporters, though he offered no specifics.

“I believe that President Xi agrees with me 100 percent,” he added.

Asked whether he was considering a military response to North Korea, Trump said: “Certainly, that’s not our first choice, but we will see what happens.”

Xi, who has been under pressure from Trump to do more to help curb North Korea’s nuclear and missile programs, told the U.S. president during their 45-minute call that the North Korean issue must be resolved through “dialogue and consultation.”

The focus on negotiations by China, North Korea’s main trading partner, contrasted with Trump’s assertions over the last few days that now was not the time for talks with North Korea while pressing instead for increased international pressure on Pyongyang.

The United States and South Korea have asked the United Nations to consider tough new sanctions on North Korea after its nuclear test on Sunday that Pyongyang said was an advanced hydrogen bomb.

Late on Wednesday, U.S. Treasury Secretary Steve Mnuchin indicated that if the U.N. Security Council fails to approve sufficiently strong measures, Trump could authorize him to impose sanctions on any country or entity that trades with North Korea.

“We believe that we need to economically cut off North Korea,” Mnuchin told reporters aboard Air Force One as it flew back from North Dakota, where Trump gave a speech on tax reform. “I have an executive order prepared. It’s ready to go to the president. It will authorize me to . . . put sanctions on anybody that does trade with North Korea.”

Mnuchin said that Trump would consider the order “at the appropriate time once he gives the U.N. time to act.”

He provided no further details, including whether Trump would consider slapping sanctions on China, North Korea’s largest trade partner.

Russian President Vladimir Putin insisted on Wednesday that resolving the North Korean nuclear crisis was impossible with sanctions and pressure alone.

Putin met South Korea’s Moon Jae-in on the sidelines of an economic summit in the eastern Russian city of Vladivostok amid mounting international concern that their neighbor plans more weapons tests, including possibly a long-range missile launch before a weekend anniversary.

Putin echoed other world leaders in denouncing North Korea’s latest nuclear bomb test on Sunday, saying Russia did not recognize its nuclear status.

“Pyongyang’s missile and nuclear program is a crude violation of U.N. Security Council resolutions, undermines the non-proliferation regime and creates a threat to the security of northeastern Asia,” Putin said at a news conference.

“At the same time, it is clear that it is impossible to resolve the problem of the Korean peninsula only by sanctions and pressure,” he said.

No headway could be made without political and diplomatic tools, Putin said.

MOON SEEKS SANCTIONS

Moon, who took office this year advocating a policy of pursuing engagement with North Korea, has come under increasing pressure to take a harder line.

He has asked the United Nations to consider tough new sanctions after North Korea’s latest nuclear test.

The United States wants the Security Council to impose an oil embargo on North Korea, ban the country’s exports of textiles and the hiring of North Korean laborers abroad and subject leader Kim Jong Un to an asset freeze and travel ban, according to a draft resolution seen by Reuters on Wednesday.

Diplomats say the U.N. Security Council could also consider barring the country’s airline.

“I ask Russia to actively cooperate as this time it is inevitable that North Korea’s oil supply should be cut at the least,” Moon told Putin, according to a readout from a South Korean official.

Putin said North Korea would not give up its nuclear program no matter how tough the sanctions.

“We too, are against North Korea developing its nuclear capabilities and condemn it, but it is worrying cutting the oil pipeline will harm the regular people, like in hospitals,” Putin said, according to the South Korean presidential official.

Russia’s exports of crude oil to North Korea were tiny at about 40,000 tonnes a year, Putin said. By comparison, China provides it with about 520,000 tonnes of crude a year, according to industry sources.

Last year, China shipped just over 96,000 tonnes of gasoline and almost 45,000 tonnes of diesel to North Korea, where it is used across the economy, from fishermen and farmers to truckers and the military.

Trump and British Prime Minister Theresa May agreed in a telephone call on Tuesday that China must do more to persuade North Korea to cease its missile tests, a spokesman for May said.

‘FREEZE FOR FREEZE’

Sanctions have done little to stop North Korea boosting its nuclear and missile capacity as it faces off with Trump, who has vowed to stop it from being able to hit the U.S. mainland with a nuclear weapon.

China and Russia have advocated a “freeze for freeze” plan, where the United States and South Korea stop major military exercises in exchange for North Korea halting its weapons programs, but neither side is willing to budge.

North Korea says it needs to develop its weapons to defend itself against what it sees as U.S. aggression.

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

China objects to both the military drills and the deployment in South Korea of an advanced U.S. missile defense system that has a radar that can see deep into Chinese territory.

South Korea’s Defence Ministry said the four remaining batteries of the Terminal High Altitude Area Defense (THAAD) system would be deployed on a golf course in the south of the country on Thursday. Two THAAD batteries have already been installed.

For a graphic on nuclear North Korea, click: http://fingfx.thomsonreuters.com/gfx/rngs/NORTHKOREA-MISSILES/010031V7472/index.html

(Additional reporting by Denis Pinchuk in VLADIVOSTOK, Soyoung Kim in SEOUL, Stephanie Nebehay in GENEVA, William Mallard and Kaori Kaneko in TOKYO, Christian Shepherd and Michael Martina in BEIJING, and Jonathan Landay and Jim Oliphant in WASHINGTON; Writing by Matt Spetalnick and Lincoln Feast; Editing by James Dalgleish)

Putin says sanctions, pressure alone won’t resolve North Korea crisis

Putin says sanctions, pressure alone won't resolve North Korea crisis

By Denis Pinchuk and Christine Kim

VLADIVOSTOK, Russia/SEOUL (Reuters) – Resolving the North Korean nuclear crisis is impossible with sanctions and pressure alone, Russian President Vladimir Putin said on Wednesday after meeting his South Korean counterpart, adding that the impact of cutting oil would be worrying.

Putin met South Korea’s Moon Jae-in on the sidelines of an economic summit in the eastern Russian city of Vladivostok amid mounting international concern that their neighbor plans more weapons tests, possibly a long-range missile launch ahead of a weekend anniversary.

Putin denounced North Korea’s sixth and largest nuclear bomb test on Sunday, saying Russia did not recognize its nuclear status.

“Pyongyang’s missile and nuclear program is a crude violation of U.N. Security Council resolutions, undermines the non-proliferation regime and creates a threat to the security of northeastern Asia,” Putin said at a joint news conference.

“At the same time, it is clear that it is impossible to resolve the problem of the Korean peninsula only by sanctions and pressure,” he said.

No headway could be made without political and diplomatic tools, Putin said, later telling the TASS news agency that Russian and North Korean delegations might meet at the Vladivostok forum.

Moon, who came to power this year advocating a policy of pursuing engagement with North Korea, has come under increasing pressure to take a harder line.

He has asked the United Nations to consider tough new sanctions after North Korea’s latest nuclear test.

Diplomats say the U.N. Security Council could consider banning North Korean textile exports, barring its airline or stopping supplies of oil to the government and military.

Other measures could include preventing North Koreans from working abroad and putting top officials on a blacklist aimed at imposing asset freezes and travel bans.

“I ask Russia to actively cooperate as this time it is inevitable that North Korea’s oil supply should be cut at the least,” Moon told Putin, according to a readout from a South Korean official.

Putin said North Korea would not give up its nuclear program no matter how tough the sanctions.

“We too, are against North Korea developing its nuclear capabilities and condemn it, but it is worrying cutting the oil pipeline will harm the regular people, like in hospitals,” Putin said, according to the South Korean presidential official.

Russia’s exports of crude oil to North Korea were tiny at about 40,000 tonnes a year, Putin said. By comparison, China provides it with about 520,000 tonnes of crude a year, according to industry sources.

Last year, China shipped just over 96,000 tonnes of gasoline and almost 45,000 tonnes of diesel to North Korea, where it is used across the economy, from fishermen and farmers to truckers and the military.

‘FREEZE FOR FREEZE’

Sanctions have done little to stop North Korea boosting its nuclear and missile capacity as it faces off with U.S. President Donald Trump, who has vowed to stop it from being able to hit the U.S. mainland with a nuclear weapon.

China and Russia have advocated a “freeze for freeze” plan, where the United States and South Korea stop major military exercises in exchange for North Korea halting its weapons programs, but neither side is willing to budge.

North Korea says it needs to develop its weapons to defend itself against what it sees as U.S. aggression.

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

China objects to both the military drills and the deployment in South Korea of an advanced U.S. missile defense system that has a radar that can see deep into Chinese territory.

South Korea’s Defence Ministry said the four remaining batteries of the Terminal High Altitude Area Defense (THAAD) system would be deployed on a golf course in the south of the country on Thursday.

Two THAAD batteries have already been installed.

Chinese Foreign Ministry spokesman Geng Shuang reiterated China’s opposition to the system, saying it could only “severely damage” regional security and raise “tensions and antagonism”.

“China strongly urges the United States and South Korea to pay attention to China and other regional nations’ security interests and concerns, immediately halt the progress of the relevant deployment, and remove the relevant equipment,” Geng said.

BIG BLAST

Asian stocks fell on Wednesday after a slide on Wall Street overnight while the dollar was on the defensive with Korean tension showing few signs of abating.

Sunday’s test of what North Korea said was an advanced hydrogen bomb was its largest by far.

Japan upgraded its assessment of the North Korean test to 160 kilotons from 120 kilotons after the size of the earthquake it generated was revised to magnitude 6.1.

“We estimate this was far bigger than previous nuclear tests,” Defence Minister Itsunori Onodera told reporters.

Satellite imagery appeared to show the blast caused landslides at North Korea’s Punggye-ri test site, according to 38 North, a Washington-based North Korean monitoring project.

South Korean officials said they were watching for radioactive fallout from the test and for signs of preparations for more activity.

British Defence Secretary Michael Fallon said on Wednesday China held the key to resolving the crisis, reiterating comments made by Prime Minister Theresa May and Australian leader Malcolm Turnbull after they spoke with Trump.

“China holds the key, the oil to North Korea flows from China … China has not just influence but has many of the levers that are needed to change behavior in North Korea,” Fallon told BBC radio.

For a graphic on nuclear North Korea, click: http://fingfx.thomsonreuters.com/gfx/rngs/NORTHKOREA-MISSILES/010031V7472/index.html

(Additional reporting by Soyoung Kim in SEOUL, Stephanie Nebehay in GENEVA, William Mallard and Kaori Kaneko in TOKYO, Christian Shepherd and Michael Martina in BEIJING; Writing by Lincoln Feast; Editing by Paul Tait, Robert Birsel)

South Korea seeks bigger warheads, North Korean ICBM reportedly on the move

South Korean troops fire Hyunmoo Missile into the waters of the East Sea at a military exercise in South Korea September 4, 2017. Defense Ministry/Yonhap/via REUTERS ATTENTION EDITORS - THIS IMAGE HAS BEEN SUPPLIED BY A THIRD PARTY. SOUTH KOREA OUT. NO RESALES. NO ARCHIVE.

By Christine Kim

SEOUL (Reuters) – South Korea said on Tuesday an agreement with the United States to scrap a weight limit on its warheads would help it respond to North Korea’s nuclear and missile threat after it conducted its sixth and largest nuclear test two days ago.

South Korean officials believe more weapons tests by the reclusive state are possible, despite international outrage over Sunday’s nuclear test and calls for more sanctions against it.

South Korea’s Asia Business Daily, citing an unidentified source, reported that North Korea had been observed moving a rocket that appeared to be an intercontinental ballistic missile (ICBM) towards its west coast.

The rocket started moving on Monday and was spotted moving only at night to avoid surveillance, the newspaper said.

South Korea’s defense ministry, which warned on Monday that North Korea was ready to launch an ICBM at any time, said it was not able to confirm the report.

Analysts and South Korean policymakers believe North Korea may test another weapon on or around Sept. 9, when it celebrates its founding day.

North Korea’s fifth nuclear test fell on that date last year, reflecting its tendency to conduct weapons tests on significant dates.

North Korea says it needs to develop its weapons to defend itself against what it sees as U.S. aggression.

South Korea, after weeks of rising tension, is talking to the United States about deploying aircraft carriers and strategic bombers to the Korean peninsula, and has been ramping up its own defenses.

U.S. President Donald Trump and his South Korean counterpart, Moon Jae-in, agreed on Monday to scrap a warhead weight limit on South Korea’s missiles, South Korea’s presidential office said, enabling it to strike North Korea with greater force in the event of war.

The White House said Trump gave “in-principle approval” to the move.

The United States and South Korea signed a pact in 1979, a year after the South successfully tested a ballistic missile, with Washington expressing the need for limits on ballistic missile capability over concern that tests could undermine regional security.

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

Both sides have thousands of rockets and artillery pieces aimed at each other across the world’s most heavily armed border, but the North’s rapid development of nuclear weapons and missiles has altered the balance, requiring a stronger response from South Korea, officials say.

“We believe the unlimited warhead payload will be useful in responding to North Korea’s nuclear and missile threats,” South Korean Defence Ministry spokesman Moon Sang-gyun told a briefing.

Under current guidelines, last changed in 2012, South Korea can develop missiles up to a range of 800 km (500 miles) with a maximum payload of 500 kg (1,102 lb).

Most of North Korea’s missiles are designed to carry payloads of 100-1,000 kg (220-2,205 lb), according to Nuclear Threat Initiative (NTI), a U.S.-based think thank.

‘BEGGING FOR WAR’

South Korea’s navy held more exercises on Tuesday, a naval officer told a defense ministry briefing. .

“Today’s training is being held to prepare for maritime North Korean provocations, inspect our navy’s readiness and to reaffirm our will to punish the enemy,” the official said.

U.S. Ambassador to the United Nations Nikki Haley said on Monday North Korean leader Kim Jong Un was “begging for war” and urged the 15-member Security Council to impose the “strongest possible” sanctions to deter him and shut down his trading partners.

Haley said the United States would circulate a new Security Council resolution on North Korea this week and wanted a vote on it on Monday.

Trump has repeatedly warned that “all options were on the table” regarding North Korea, including military options.

Russian President Vladimir Putin said threats of military action were counterproductive.

“Russia condemns North Korea’s exercises, we consider that they are a provocation,” Putin told reporters after a summit of the BRICS countries in China.

“(But) ramping up military hysteria will lead to nothing good. It could lead to a global catastrophe.

While referring to more sanctions as a “road to nowhere”, Putin said Russia was prepared to discuss “some details” around the issue. He did not elaborate.

South Korean Foreign Minister Kang Kyung-wha said she believed her Chinese counterpart, Wang Yi, was open to more sanctions.

“I cannot tell you exact details as the minister asked me not to disclose the content of our discussion, but I could sense that China could be open to more sanctions,” Kang told lawmakers in parliament, referring to a phone call with Wang on Monday.

China’s foreign ministry said it would take part in security council discussions in “a responsible and constructive manner”.

Diplomats have said the Security Council could consider banning North Korean textile exports, banish its national airline and stopping supplies of oil to the government and military.

Other measures could include preventing North Koreans from working abroad and adding top officials to a blacklist aiming at imposing asset freezes and travel bans.

Sanctions imposed after missile tests in July were aimed at slashing North Korea’s $3 billion annual export revenue by a third by banning exports of coal, iron, lead and seafood.

China accounted for 92 percent of North Korea’s trade in 2016, according to South Korea’s government trade promotion agency.

For a graphic on nuclear North Korea, click: http://fingfx.thomsonreuters.com/gfx/rngs/NORTHKOREA-MISSILES/010031V7472/index.html

(Reporting by Christine Kim; Additional reporting by Dennis Pinchuk in XIAMEN, China, Christian Shepherd in BEIJING, Michelle Nichols at the UNITED NATIONS and Tim Ahmann and David Shepardson in WASHINGTON; Writing by Lincoln Feast; Editing by Paul Tait, Robert Birsel)

North Korea warns of ‘more gift packages’ for U.S.

North Korea warns of 'more gift packages' for U.S.

By Stephanie Nebehay

GENEVA (Reuters) – Amid international uproar over North Korea’s latest and biggest nuclear weapons test, one of its top diplomats said on Tuesday it was ready to send “more gift packages” to the United States.

Han Tae Song, ambassador of the Democratic People’s Republic of Korea (DPRK) to the U.N. in Geneva, was addressing the U.N.-sponsored Conference on Disarmament two days after his country detonated its sixth nuclear test explosion.

“I am proud of saying that just two days ago on the 3rd of September, DPRK successfully carried out a hydrogen bomb test for intercontinental ballistic rocket under its plan for building a strategic nuclear force,” Han told the Geneva forum.

“The recent self-defense measures by my country, DPRK, are a ‘gift package’ addressed to none other than the U.S.,” Han said.

“The U.S. will receive more ‘gift packages’ from my country as long as its relies on reckless provocations and futile attempts to put pressure on the DPRK,” he added without elaborating.

Military measures being taken by North Korea were “an exercise of restraint and justified self-defense right” to counter “the ever-growing and decade-long U.S. nuclear threat and hostile policy aimed at isolating my country”.

“Pressure or sanctions will never work on my country,” Han declared, adding: “The DPRK will never under any circumstances put its nuclear deterrence on the negotiating table.”

U.S. disarmament ambassador Robert Wood said that North Korea had defied the international community once again with its test.

“We look forward to working with our partners in the (Security) Council with regard to a new resolution that will put some of the strongest sanctions possible on the DPRK,” he told the conference.

“Advances in the regime’s nuclear and missile program are a threat to us all … now is the time to say tests, threats and destabilizing actions will no longer be tolerated,” Wood said.

“It can no longer be business as usual with this regime.”

The White House said on Monday President Donald Trump had agreed “in principle” to scrap a warhead weight limit on South Korea’s missiles in the wake of the North’s latest test.

The United States accused North Korea’s trading partners of aiding its nuclear ambitions and said Pyongyang was “begging for war”.

(Editing by Tom Miles and Andrew Roche)

South Korea warns that North may launch ICBM after nuclear test

South Korean troops fire Hyunmoo Missile into the waters of the East Sea at a military exercise in South Korea September 4, 2017.

By Christine Kim and David Brunnstrom

SEOUL/WASHINGTON (Reuters) – South Korea said on Monday it was talking to the United States about deploying aircraft carriers and strategic bombers to the Korean peninsula after signs North Korea might launch more missiles in the wake of its sixth and largest nuclear test.

The U.N. Security Council was set to meet later on Monday to discuss new sanctions against the isolated regime. U.S. President Donald Trump had also asked to be briefed on all available military options, according to his defense chief.

Officials said activity around missile launch sites suggested North Korea planned more missile tests.

“We have continued to see signs of possibly more ballistic missile launches. We also forecast North Korea could fire an intercontinental ballistic missile,” Jang Kyoung-soo, acting deputy minister of national defense policy, told a parliament hearing on Monday.

North Korea tested two ICBMs in July that could fly about 10,000 km (6,200 miles), putting many parts of the U.S. mainland within range and prompting a new round of tough international sanctions.

South Korea’s air force and army conducted exercises involving long-range air-to-surface and ballistic missiles on Monday following the North’s nuclear test on Sunday, its joint chiefs of staff said in a statement.

In addition to the drill, South Korea will cooperate with the United States and seek to deploy “strategic assets like aircraft carriers and strategic bombers”, Jang said.

South Korea’s defense ministry also said it would deploy the four remaining launchers of a new U.S. missile defense system after the completion of an environmental assessment by the government.

The rollout of the controversial Terminal High Altitude Area Defense (THAAD) system at a site south of the South Korean capital, Seoul, is vehemently opposed by neighboring China and Russia, had been delayed since June.

 

TOUGH TALK

North Korea said it tested an advanced hydrogen bomb for a long-range missile on Sunday, prompting a warning of a “massive” military response from the United States if it or its allies were threatened.

“We are not looking to the total annihilation of a country, namely North Korea,” U.S. Defense Secretary Jim Mattis said after meeting Trump and his national security team.

“But as I said, we have many options to do so.”

Trump has previously vowed to stop North Korea developing nuclear weapons and said he would unleash “fire and fury” if it threatened U.S. territory

Despite the tough talk, the immediate focus of the international response was expected to be on tougher economic sanctions.

Diplomats have said the U.N. Security Council could now consider banning North Korean textile exports and its national airline, stop supplies of oil to the government and military, prevent North Koreans from working abroad and add top officials to a blacklist to subject them to an asset freeze and travel ban.

Asked about Trump’s threat to punish countries that trade with North Korea, Chinese Foreign Ministry spokesman Geng Shuang said China has dedicated itself to resolving the North Korean issue via talks, and China’s efforts had been recognized.

“What we absolutely cannot accept is that on the one hand (we are) making arduous efforts to peacefully resolve the North Korean nuclear issue, and on the other hand (our) interests are being sanctioned or harmed. This is both not objective and not fair,” he told a regular briefing.

On possible new U.N. sanctions, and whether China would support cutting off oil, Geng said it would depend on the outcome of Security Council discussions.

Chinese state-run Xinhua news agency said in an editorial North Korea was “playing a dangerous game of brinkmanship” and it should wake up to the fact that such a tactic “can never bring security it pursues”.

While South Korean President Moon Jae-in and Japanese Prime Minister Shinzo Abe agreed on Monday to work with the United States to pursue stronger sanctions, Russia voiced scepticism.

Russian Deputy Foreign Minister Sergei Ryabkov said sanctions on North Korea had reached the limit of their impact. Any more would be aimed at breaking its economy, so a decision to impose further constraints would become dramatically harder, he told a BRICS summit in China.

South Korea says the aim of stronger sanctions is to draw North Korea into dialogue. But, in a series of tweets on Sunday, Trump also appeared to rebuke South Korea for that approach.

“South Korea is finding, as I have told them, that their talk of appeasement with North Korea will not work, they only understand one thing!” Trump said on Twitter.

Still, Trump’s response was more orderly and less haphazard than he had offered to other hostile actions by North Korea.

His handling of its latest nuclear test reflected a more traditional approach to crisis management, which U.S. officials said illustrated the influence of Mattis and new White House chief of staff, retired Marine Corps General John Kelly.

 

MARKETS CAUTIOUS

Japanese and South Korean stock markets both closed down about 1 percent on Monday, while safe haven assets including gold and sovereign bonds ticked higher, but trade was cautious. [MKTS/GLOB]

“Assuming the worst on the Korean peninsula has not proven to be a winning trading strategy this year,” said Sean Callow, a senior foreign exchange strategist at Westpac Bank.

“Investors seem reluctant to price in anything more severe than trade sanctions, and the absence of another ‘fire and fury’ Trump tweet has helped encourage markets to respond warily.”

South Korea’s finance minister vowed to support financial markets if instability showed signs of spreading to the real economy.

Sunday’s test had registered with international seismic agencies as a man-made earthquake near a test site. Japanese and South Korean officials said the tremor was about 10 times more powerful than the one picked up after North Korea’s previous nuclear test a year ago.

China’s National Nuclear Safety Administration said data from radiation monitoring stations near the North Korean border showed no impact on “China’s environment or populace”.

Australian Prime Minister Malcolm Turnbull said that, while North Korea was not a puppet state of China, Beijing needed to do more to pressure its neighbor.

“The Chinese are frustrated and dismayed by North Korea’s conduct, but China has the greatest leverage, and with the greatest leverage comes the greatest responsibility,” he told the Australian Broadcasting Corp on Monday.

 

For a graphic on nuclear North Korea, click: http://fingfx.thomsonreuters.com/gfx/rngs/NORTHKOREA-MISSILES/010031V7472/index.html

 

 

(Additional reporting by Shin-hyung Lee, Hyunjoo Jin, Cynthia Kim in SEOUL, Steve Holland and John Walcott in WASHINGTON, John Ruwitch in SHANGHAI, Wayne Cole and Swati Pandey in SYDNEY; Writing by Lincoln Feast; Editing by Paul Tait, Robert Birsel)

 

U.S., South Korea agree to revise missile treaty in face of North Korean threats

The intercontinental ballistic missile Hwasong-14, in this photo released July 4, 2017.

SEOUL (Reuters) – U.S. President Donald Trump agreed with South Korean President Moon Jae-in to revise a joint treaty capping the development of the South’s ballistic missiles, Moon’s office said on Saturday, amid a standoff over North Korea’s missile and nuclear tests.

Trump also gave “conceptual” approval to the purchase by the South of billions of dollars of U.S. military hardware, the White House said.

The South wants to raise the missile cap to boost its defenses against the reclusive North, which is pursuing missile and nuclear weapons programs in defiance of international warnings and UN sanctions.

“The two leaders agreed to the principle of revising the missile guideline to a level desired by South Korea, sharing the view that it was necessary to strengthen South Korea’s defense capabilities in response to North Korea’s provocations and threats,” South Korea’s presidential Blue House said.

Impoverished North Korea and the rich, democratic South are technically still at war because their 1950-53 conflict ended in a truce, not a peace treaty. The North regularly threatens to destroy the South and its main ally, the United States.

North Korea sharply raised regional tension this week with the launch of its Hwasong-12 intermediate-range ballistic missile that flew over Japan and landed in the Pacific.

That followed the test launch of two long-range ballistic missiles in July in a sharply lofted trajectory that demonstrated a potential range of 10,000 km (6,000 miles) or more that would put many parts of the U.S. mainland within striking distance.

North Korea has been working to develop a nuclear-tipped missile capable of hitting the United States and has recently threatened to land missiles near the U.S. Pacific territory of Guam.

South Korea’s development of its ballistic missiles is limited to range of 800 km (500 miles) and payload weight of 500 kg (1,100 pounds) under a bilateral treaty revised in 2012.

South Korea has said it wants to revise the agreement to increase the cap on the payload.

The two countries agreed to the cap as part of a commitment to a voluntary international arms-control pact known as the Missile Technology Control Regime, aimed at limiting the proliferation missiles and nuclear weapons.

The two leaders pledged to continue to apply strong diplomatic and economic pressure on North Korea and to make all necessary preparations to defend against the growing threat by the North, the White House said.

The White House did not mention the voluntary bilateral agreement but said the two leaders agreed to strengthen their defense cooperation and South Korea’s defense capabilities.

Trump “provided his conceptual approval of planned purchases by South Korea of billions of dollars in American military equipment”, the White House said.

Trump, who has warned that the U.S. military is “locked and loaded” in case of further North Korean provocation, reacted angrily to the latest missile test, declaring on Twitter that “talking is not the answer” to resolving the crisis.

North Korea defends its weapons programs as necessary to counter perceived U.S. aggression, such as recent air maneuvers with South Korean and Japanese jets.

(Reporting by Jack Kim in Seoul and Eric Beech in Washington; Editing by Nick Macfie)

After North Korea missile, Britain and Japan agree closer security ties

British Prime Minister Theresa May (3rd L) and members of Japan's National Security Council pose for the media prior to their meeting at Japan's Prime Minister Shinzo Abe's official residence in Tokyo on August 31, 2017. (L-R) Defense Minister Itsunori Onodera, Chief Cabinet Secretary Yoshihide Suga, British Prime Minister Theresa May, Prime Minister Shinzo Abe, Deputy Prime Minister and Finance Minister Taro Aso, Foreign Minister Taro Kono, and Shotaro Yachi, head of the National Security Council. REUTERS/Kazuhiro Nogi/Pool

By William James

TOKYO (Reuters) – Britain and Japan said on Thursday they would cooperate in countering the threat posed by North Korea, two days after it fired a missile over northern Japan, and will call on China to exert its leverage.

Prime Minister Theresa May, looking to strengthen relations with one of her closest allies ahead of Brexit, is visiting Japan as it responds to an increasing military threat.

Terming North Korea’s missile program “a global threat”, Prime Minister Shinzo Abe told a news conference that Japan and Britain would cooperate.

“It is very meaningful that Prime Minister May and I agreed to further strengthen pressure on North Korea and to call on China to play a larger role,” he added.

May agreed, noting that China, North Korea’s lone major ally, had been involved in U.N. Security Council debate earlier this week.

“China does have a particular position in this, they have leverage on North Korea and I believe we should be encouraging China to exercise that leverage to do what we all want – which is to ensure that North Korea is not conducting these illegal acts.”

May toured Japan’s flagship Izumo helicopter carrier for a military briefing with Minister of Defence Itsunori Onodera before attending a national security meeting.

May and Abe agreed on a joint declaration on security cooperation, including plans for British soldiers to take part in military exercises on Japanese soil and for collaboration to address the threat of cyber and militant attacks when Japan hosts the Olympics in 2020.

North Korea featured heavily in the talks after it launched a ballistic missile on Tuesday that passed over Japanese territory, prompting international condemnation.

May’s office had said the two leaders were expected to discuss the possibility of further sanctions on North Korea, but neither Abe nor May touched on the issue at the news conference.

The Global Times, a publication of the official People’s Daily of China’s ruling Communist Party, criticized an earlier comment of May’s comment calling for more pressure from China.

“Beijing does not need London to teach it how to deal with North Korea,” the newspaper said.

Asked about the United States, Japan and Britain looking to impose new sanctions on North Korea, Chinese Foreign Ministry spokeswoman Hua Chunying said the situation could only be resolved peacefully through dialogue.

“We think it is regrettable that some countries selectively overlook the relevant Security Council resolutions’ demand to advance dialogue, and stubbornly emphasize pressure and sanctions,” she told a daily news briefing.

‘OUTWARD-LOOKING’

Apart from security, May’s trip has focused on trade and investment. She is keen to convince nervy investors that Britain’s exit from the European Union will not make it a less attractive business partner.

Both May and Abe addressed a delegation of British business leaders and senior representatives from major Japanese investors in Britain, such as carmakers Nissan, Toyota and conglomerate Hitachi.

Abe told the gathering that May had assured him Britain’s negotiations on leaving the European Union would be transparent.

May said Japanese investment after Britain’s vote to leave the EU was a vote of confidence and she pledged to build close trade ties with Japan.

“I very much welcome the commitment from Japanese companies such as Nissan, Toyota, Softbank and Hitachi,” May said.

“I am determined that we will seize the opportunity to become an ever more outward-looking global Britain, deepening our trade relations with old friends and new allies.”

During a two-hour train ride between Kyoto and Tokyo late on Wednesday, the two leaders discussed Brexit, with May talking Abe through the details of a series of papers published in recent weeks setting out her negotiating position.

May said on Wednesday Japan’s upcoming trade deal with the EU could offer a template for a future Japan-Britain trade agreement, the latest attempt to show investors that Brexit will not lead to an overnight change in business conditions.

Japan has been unusually open about its concerns over Brexit, worrying that 40 billion pounds ($51.68 billion) of Japanese investment in the British economy could suffer if trading conditions change abruptly when Britain leaves the bloc.

(Additional reporting by Tim Kelly, Elaine Lies, Linda Sieg, Kiyoshi Takenaka and Takashi Umekawa, and Michael Martina in BEIJING; Editing by Clarence Fernandez, Robert Birsel and Nick Macfie)

Trump says ‘talking not the answer’ on North Korea, Mattis disagrees

A missile is launched during a long and medium-range ballistic rocket launch drill in this undated photo released by North Korea's Korean Central News Agency (KCNA) in Pyongyang on August 30, 2017. KCNA/via REUTERS

By Idrees Ali and Soyoung Kim

WASHINGTON/SEOUL (Reuters) – President Donald Trump on Wednesday said “talking is not the answer” to the tense standoff with North Korea over its nuclear missile development, but his defense chief swiftly asserted that the United States still has diplomatic options.

Trump’s comment, coming a day after Pyongyang fired a ballistic missile over Japan that drew U.N. and other international condemnation, renewed his tough rhetoric toward reclusive, nuclear-armed and increasingly isolated North Korea.

“The U.S. has been talking to North Korea, and paying them extortion money, for 25 years,” Trump wrote on Twitter. “Talking is not the answer!”

When asked by reporters just hours later if the United States was out of diplomatic solutions with North Korea amid rising tensions after a series of missile tests by Pyongyang, U.S. Defense Secretary Jim Mattis replied: “No.”

“We are never out of diplomatic solutions,” Mattis said before a meeting with his South Korean counterpart at the Pentagon. “We continue to work together, and the minister and I share a responsibility to provide for the protection of our nations, our populations and our interests.”

Trump, who has vowed not to let North Korea develop nuclear missiles that can hit the mainland United States, had said in a statement on Tuesday that “all options are on the table.”

North Korea said the launch of an intermediate-range ballistic missile (IRBM) on Tuesday was to counter U.S. and South Korean military drills and was a first step in military action in the Pacific to “containing” the U.S. island territory of Guam.

The 15-member U.N. Security Council condemned the firing of the missile over Japan as “outrageous,” and demanded that North Korea halt its weapons program. The U.S.-drafted statement, which did not threaten new sanctions on North Korea, urged all nations to implement U.N. sanctions and said it was of “vital importance” that Pyongyang take immediate, concrete actions to reduce tensions.

Trump’s mention of payments to North Korea appeared to be a reference to previous U.S. aid to the country.

A U.S. Congressional Research Service report said between 1995 and 2008, the United States provided North Korea with over $1.3 billion in assistance. Slightly more than 50 percent was for food and about 40 percent for energy assistance. The assistance was part of a nuclear deal that North Korea later violated.

Since early 2009, the United States has provided virtually no aid to North Korea, though periodically there have been discussions about resuming large-scale food aid.

The latest tweet by the Republican U.S. president drew criticism from some quarters in Washington. Democratic Senator Chris Murphy wrote on Twitter: “Bar is high, but this is perhaps the most dangerous, irresponsible tweet of his entire Presidency. Millions of lives at stake – not a game.”

North Korea’s leader, Kim Jong Un, ordered the launch to be conducted for the first time from its capital, Pyongyang, and said more exercises with the Pacific as the target were needed, the North’s KCNA news agency said on Wednesday.

“The current ballistic rocket launching drill like a real war is the first step of the military operation of the KPA in the Pacific and a meaningful prelude to containing Guam,” KCNA quoted Kim as saying. KPA stands for the Korean People’s Army.

Trump’s secretaries of defense and state have emphasized finding a diplomatic solution to North Korea’s nuclear ambitions. Earlier this month, Mattis told reporters the U.S. effort “is diplomatically led. It has diplomatic traction. It is gaining diplomatic results.”

Trump has offered divergent comments on North Korea in recent weeks. On Aug. 22, he tweeted that “I respect the fact that he is starting to respect us,” referring to Kim, and that maybe “something positive can come about.” On Aug. 8, Trump had threatened to unleash “fire and fury” against North Korea if it threatened the United States, and two days later delivered some more menacing words.

North Korea threatened to fire four missiles into the sea near Guam, home to a major U.S. military presence, after Trump’s “fire and fury” remark.

‘KEY MILESTONE’

The U.S. Defense Department’s Missile Defense Agency and the crew of the USS John Paul Jones conducted a “complex missile defense flight test” off Hawaii early on Wednesday, resulting in the intercept of a medium-range ballistic missile target, the agency said.

The agency’s director, Lieutenant General Sam Greaves, called the test “a key milestone” in giving U.S. Navy Aegis Ballistic Missile Defense ships an enhanced capability, but did not mention North Korea.

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

In Geneva, American disarmament ambassador Robert Wood, addressing the U.N.-sponsored Conference on Disarmament, called for “concerted action” by the international community to pressure North Korea into abandoning its banned nuclear and missile program by fully enforcing economic sanctions.

Washington has repeatedly urged China, North Korea’s main ally and trading partner, to do more to rein in Pyongyang.

Speaking during a visit to the Japanese city of Osaka, British Prime Minister Theresa May called on China to put more pressure on North Korea.

Asked about her comments, Chinese Foreign Ministry spokeswoman Hua Chunying said some “relevant sides” were only selectively carrying out the U.N. resolutions by pushing hard on sanctions yet neglecting to push for a return to talks.

She said this was not the attitude “responsible countries” should have when the “smell of gunpowder” remained strong over the Korean peninsula.

“When it comes to sanctions, they storm to the front but when it comes to pushing for peace they hide at the very back,” Hua told a daily news briefing.

North Korea has conducted dozens of ballistic missile tests under Kim in defiance of U.N. sanctions, but firing a projectile over mainland Japan was a rare and provocative move. Tuesday’s test was of the same Hwasong-12 missile Kim had threatened to use on Guam, but the test flight took it in another direction, over northern Japan’s Hokkaido island and into the sea.

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

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

For a graphic on Kim’s new act of defiance, click: http://fingfx.thomsonreuters.com/gfx/rngs/NORTHKOREA-MISSILES/010050KV1C3/index.html

(Additional reporting by Jack Kim in Seoul, and Philip Wen and Michael Martina in Beijing, Susan Heavey, Yeganeh Torbati and David Alexander in Washington, Kanishka Singh in Bengaluru and William James in Osaka, Japan; Writing by Will Dunham; Editing by Jeffrey Benkoe and Alistair Bell)

North Korea launch increases focus on risky U.S. shootdown option

A missile is launched during a long and medium-range ballistic rocket launch drill in this undated photo released by North Korea's Korean Central News Agency (KCNA) in Pyongyang on August 30, 2017. KCNA/via REUTERS

By Matt Spetalnick and David Brunnstrom

WASHINGTON (Reuters) – North Korea’s firing of a ballistic missile over Japan could increase pressure on Washington to consider shooting down future test launches, although there is no guarantee of success and U.S. officials are wary of a dangerous escalation with Pyongyang.

More attention is likely to focus on the prospects for intercepting a missile in flight after North Korea on Tuesday conducted one of its boldest missile tests in years, one government official said.

Such a decision would not be taken lightly given tensions over North Korea’s nuclear and missile programs.

And while President Donald Trump has repeatedly vowed that “all options are on the table”, there has been no sign of any quick policy shift in Washington toward direct U.S. military action.

But Pyongyang’s launch of an intermediate-range Hwasong-12 missile over Japan’s northern Hokkaido island underscored how Trump’s tough rhetoric, pursuit of sanctions and occasional shows of military force around the Korean peninsula have done little to deter North Korea’s leader.

“Kim Jong Un has chosen to thumb his nose at the Americans and Japanese by conducting this test,” said David Shear, former U.S. assistant secretary of defense for East Asia.

U.S. Defense Secretary Jim Mattis has already pledged that the military would shoot down any missile it deemed a danger to U.S. or allied territory.

What is unclear is whether Washington would be prepared to use its multi-layered missile defense systems to intercept a missile like the one that overflew Japan but never directly threatened its territory.

Doing so would essentially be a U.S. show of force rather than an act of self-defense.

“I would think that in government deliberations that would likely be one of the options out on the table,” Shear said.

Some analysts say there is a danger that North Korea would see it as an act of war and retaliate militarily with potentially devastating consequences for South Korea and Japan.

China, North Korea’s neighbor and main trading partner, would also likely oppose such a direct U.S. military response.

MINIMIZING DAMAGE

Experts say there is no guarantee that U.S. missile defense systems, including Aegis ballistic missile defense ships in the region and Terminal High Altitude Area Defense (THAAD) systems based in Guam and South Korea, would hit their target, despite recent successful tests.

A failed attempt would be an embarrassment to the United States and could embolden North Korea, which this year has already conducted two tests of an intercontinental ballistic missile believed capable of hitting the U.S. mainland.

The United States has spent $40 billion over 18 years on research and development into missile defense systems but they have never been put into operation under wartime conditions.

Mattis this month expressed confidence the U.S. military could intercept a missile fired by North Korea if it was headed to Guam, after North Korea said it was developing a plan to launch four intermediate range missiles to land near the U.S. territory.

If North Korea fired at the United States, the situation could quickly escalate to war, Mattis said.

GROWING THREAT

Not everyone is convinced the U.S. military can defend against North Korea’s growing missile capability.

Some experts caution that U.S. missile defenses are now geared to shooting down one, or perhaps a small number, of incoming missiles. If North Korea’s technology and production keep advancing, U.S. defenses could be overwhelmed.

“If a shootdown fails, it would be embarrassing, though not terribly surprising,” said Michael Elleman, a missile expert at the 38 North think tank in Washington.

“Missile defense does not provide a shield that protects against missiles. Rather, it is like air defense; it is designed to minimize the damage an adversary can inflict,” he said.

One U.S. official said the military would be especially cautious about shooting down a North Korean missile that did not pose a direct threat because of the risk of civilian casualties if it were intercepted over Japan or South Korea, as well as difficulty in determining how Pyongyang might retaliate. The official spoke on condition of anonymity.

U.S. military and intelligence officials warn North Korea could unleash a devastating barrage of missiles and artillery on Seoul and U.S. bases in South Korea in response to any military attack.

Targeting of a North Korean missile in flight that did not endanger the United States or its allies could also raise legal questions. U.N. Security Council resolutions that ban Pyongyang’s ballistic missile programs do not explicitly authorize such actions.

Japan also faces questions over the legality of shooting down missiles in its airspace but not aimed at Japan. Under legislation passed in 2015, Tokyo can exercise a limited right of collective self-defense, or militarily aiding an ally under attack, if it judges the threat to Japan as “existential”.

(Reporting By Matt Spetalnick and David Brunnstrom Additional reporting by Idrees Ali and Mike Stone in WASHINGTON, Linda Sieg and Tim Kelly in TOKYO; Editing by Warren Strobel and Lincoln Feast)