Trump pledges to act on North Korean threat

U.S. President Donald Trump gives a public speech in front of the Warsaw Uprising Monument at Krasinski Square in Warsaw, Poland July 6, 2017. REUTERS/Carlos Barria

By Jeff Mason and Roberta Rampton

WARSAW (Reuters) – U.S. President Donald Trump vowed on Thursday to confront North Korea “very strongly” following its latest missile test and urged nations to show Pyongyang that there would be consequences for its weapons program.

North Korea on Tuesday test-launched an intercontinental ballistic missile that some experts believe has the range to reach the U.S. states of Alaska and Hawaii and perhaps the U.S. Pacific Northwest. North Korea said it could carry a large nuclear warhead.

Speaking at a news conference with Polish President Andrzej Duda, Trump said Korea was “a threat, and we will confront it very strongly”.

He said the United States was considering “severe things” for North Korea, but that he would not draw a “red line” of the kind that his Democratic predecessor, Barack Obama, had drawn but not enforced on the use of chemical weapons in Syria.

Trump added: “… they are behaving in a very, very dangerous manner and something will have to be done.”

The issue presents Trump, who took office in January, with perhaps his biggest foreign policy challenge. It has put pressure on his relationship with Chinese President Xi Jinping, whom Trump had pressed without success to rein in Pyongyang.

The United States said on Wednesday that it was ready to use force if necessary to stop North Korea’s nuclear missile program. But China on Thursday called for restraint and made clear it did not want to be targeted by U.S. sanctions.

Meeting in Germany ahead of a G20 summit, Xi told South Korean President Moon Jae-in that “China upholds the denuclearization of the peninsula, maintaining its peace and stability, resolving the issue via dialogue and consultation, and that all sides strictly abide by relevant resolutions of the U.N. Security Council”, according to the Chinese Foreign Ministry.

And Chinese Vice Finance Minister Zhu Guangyao said that, while China would implement relevant U.N. resolutions, “the U.S. should not use their domestic laws as excuses to levy sanctions against Chinese financial institutions”.

“BAD BEHAVIOR”

Trump flew on to Hamburg on Thursday to attend the summit, and was due to meet with Xi there.

His frustration that Beijing has not done more to clamp down on North Korea prompted him to tweet on Wednesday: “Trade between China and North Korea grew almost 40% in the first quarter. So much for China working with us – but we had to give it a try!”

Trump did not mention China specifically in his remarks in Poland, but his message that other countries needed to do more was clearly meant for Beijing.

“President Duda and I call on all nations to confront this global threat and publicly demonstrate to North Korea that there are consequences for their very, very bad behavior,” he said.

U.S. Ambassador to the United Nations Nikki Haley told the U.N. Security Council on Wednesday that the United States would propose new U.N. sanctions in coming days, and that if Russia and China did not support the move, then “we will go our own path”.

Some diplomats say Beijing has not been fully enforcing existing international sanctions on its neighbor and has resisted tougher measures, such as an oil embargo, bans on the North Korean airline and guest workers, and measures against Chinese banks and other firms doing business with the North.

U.S. officials have said the United States might specifically seek unilaterally to sanction more Chinese companies that do business with North Korea, especially banks – echoing a tactic it used to pressurize to Iran to curb its nuclear program.

South Korean presidential spokesman Park Su-hyun gave a somewhat different account of the Xi-Moon meeting. He told reporters that the two men had agreed North Korea’s missile test was “unforgivable”, and had discussed stepping up pressure and sanctions.

(This story has been refiled to make explicit that Trump was speaking in paragraph 5)

(additional reporting by Marcin Goettig; Editing by Kevin Liffey)

Can U.S. defend against North Korea missiles? Not everyone agrees

North Korean leader Kim Jong Un inspects the intercontinental ballistic missile Hwasong-14 in this undated photo released by North Korea's Korean Central News Agency (KCNA) in Pyongyang July 5, 2017. KCNA/via REUTERS

By Mike Stone

WASHINGTON (Reuters) – Not everybody asserts as confidently as the Pentagon that the U.S. military can defend the United States from the growing threat posed by North Korea’s intercontinental ballistic missile capability.

Pyongyang’s first test on Tuesday of an ICBM with a potential to strike the state of Alaska has raised the question: How capable is the U.S. military of knocking down an incoming missile or barrage of missiles?

Briefing reporters on Wednesday, Pentagon spokesman Navy Captain Jeff Davis said: “We do have confidence in our ability to defend against the limited threat, the nascent threat that is there.”

Davis cited a successful test in May in which a U.S.-based missile interceptor knocked down a simulated incoming North Korean ICBM. But he acknowledged the test program’s track program was not perfect.

“It’s something we have mixed results on. But we also have an ability to shoot more than one interceptor,” Davis said.

An internal memo seen by Reuters also showed that the Pentagon upgraded its assessment of U.S. defenses after the May test.

Despite hundreds of billions of dollars spent on a multi-layered missile defense system, the United States may not be able to seal itself off entirely from a North Korean intercontinental ballistic missile attack.

Experts caution that U.S. missile defenses are now geared to shooting down one, or perhaps a small number of basic, incoming missiles. Were North Korea’s technology and production to keep advancing, U.S. defenses could be overwhelmed unless they keep pace with the threat.

“Over the next four years, the United States has to increase its current capacity of our deployed systems, aggressively push for more and faster deployment,” said Riki Ellison, founder of the Missile Defense Advocacy Alliance.

MIXED RESULTS

The test records of the U.S. Missile Defense Agency (MDA), charged with the mission to develop, test and field a ballistic missile defense system, also show mixed results.

MDA systems have multiple layers and ranges and use sensors in space at sea and on land that altogether form a defense for different U.S. regions and territories.

One component, the Ground-based Midcourse Defense system (GMD), demonstrated a success rate just above 55 percent. A second component, the Aegis system deployed aboard U.S. Navy ships and on land, had about an 83 percent success rate, according to the agency.

A third, the Terminal High Altitude Area Defense, or THAAD, anti-missile system, has a 100 percent success rate in 13 tests conducted since 2006, according to the MDA.

Lockheed Martin Corp is the prime contractor for THAAD and Aegis. Boeing Co is the lead contractor for GMD.

Since President Ronald Reagan’s administration in the 1980s, the U.S. government has spent more than $200 billion to develop and field a range of ballistic missile defense systems ranging from satellite detection to the sea-based Aegis system, according to the Congressional Research Service.

Funding for MDA was on average $8.12 billion during President Barack Obama’s administration that ended on Jan. 20. President Donald Trump has requested $7.8 billion for fiscal year 2018.

‘ANOTHER YEAR OR TWO’

Last month, Vice Admiral James Syring, then director of the Missile Defense Agency, told a congressional panel that North Korean advancements in the past six months had caused him great concern.

U.S.-based missile expert John Schilling, a contributor to the Washington-based North Korea monitoring project 38 North said the pace of North Korea’s missile development was quicker than expected.

“However, it will probably require another year or two of development before this missile can reliably and accurately hit high-value continental U.S. targets, particularly if fired under wartime conditions,” he said.

Michael Elleman, a fellow for Missile Defence at the International Institute for Strategic Studies, said that although North Korea was several steps from creating a dependable ICBM, “There are absolutely no guarantees” the United States can protect itself.

In missile defense, “Even if it had a test record of 100 percent, there are no guarantees.”

(Reporting by Mike Stone; Additional reporting by Phil Stewart in Washington; Editing by Chris Sanders, Howard Goller and Peter Cooney)

North Korea says its ICBM can carry nuclear warhead; U.S. calls for global action

North Korean leader Kim Jong Un inspects the intercontinental ballistic missile Hwasong-14 in this undated photo released by North Korea's Korean Central News Agency (KCNA) in Pyongyang July 5, 2017. KCNA/via REUTERS

By Jack Kim and Christine Kim

SEOUL (Reuters) – North Korea said on Wednesday its newly developed intercontinental ballistic missile (ICBM) can carry a large nuclear warhead, triggering a call by Washington for global action to hold it accountable for pursuing nuclear weapons.

A spokeswoman for the U.S. Defense Department said it had concluded that North Korea test-launched an ICBM on Tuesday, which some experts now believe had the range to reach the U.S. state of Alaska as well as parts of the mainland United States.

U.S. Secretary of State Rex Tillerson said the test, on the eve of the U.S. Independence Day holiday, represented “a new escalation of the threat” to the United States and its allies, and vowed to take stronger measures.

North Korean leader Kim Jong Un said the test completed his country’s strategic weapons capability that includes atomic and hydrogen bombs and ICBMs, the state KCNA news agency said.

Pyongyang would not negotiate with the United States to give up those weapons until Washington abandons its hostile policy against the North, KCNA quoted Kim as saying.

“He, with a broad smile on his face, told officials, scientists and technicians that the U.S. would be displeased … as it was given a ‘package of gifts’ on its ‘Independence Day’,” KCNA said.

Kim ordered them to “frequently send big and small ‘gift packages’ to the Yankees,” it added.

The launch came days before leaders from the Group of 20 nations are due to discuss steps to rein in North Korea’s weapons program, which it has pursued in defiance of United Nations Security Council sanctions.

The test successfully verified the technical requirements of the newly developed ICBM in stage separation, the atmospheric re-entry of the warhead and the late-stage control of the warhead, KCNA said.

Tillerson warned that any country that hosts North Korean workers, provides economic or military aid to Pyongyang, or fails to implement U.N. sanctions “is aiding and abetting a dangerous regime”.

“All nations should publicly demonstrate to North Korea that there are consequences to their pursuit of nuclear weapons,” Tillerson said in a statement.

DIPLOMATIC PRESSURE

U.S. President Donald Trump has been urging China, North Korea’s main trading partner and only big ally, to press Pyongyang to give up its nuclear program.

The U.N. Security Council, currently chaired by China, will hold an emergency meeting on the matter at 3 p.m. EDT (1900 GMT) on Wednesday, following a request by the United States, Japan and South Korea.

Diplomats say Beijing has not been fully enforcing existing international sanctions on its neighbor, and has resisted tougher measures, such as an oil embargo, bans on the North Korean airline and guest workers, and measures against Chinese banks and other firms doing business with the North.

A 2015 U.N. document estimated that more than 50,000 North Korean workers were overseas earning currencies for the regime, with the vast majority in China and Russia.

North Korea appeared to have used a Chinese truck, originally sold for hauling timber, but later converted for military use, to transport and erect the missile on Tuesday.

Trump has indicated he is running out of patience with Beijing’s efforts to rein in North Korea. His administration has said all options are on the table, military included, but suggested those would be a last resort and that sanctions and diplomatic pressure were its preferred course.

Trump is due to meet Chinese President Xi Jinping and Russian President Vladimir Putin during the G20 meeting in Germany this week.

Russia and China joined diplomatic forces on Tuesday and called for North Korea to suspend its ballistic missile program in return for a moratorium on large-scale military exercises by the United States and South Korea.

In Beijing, Chinese Foreign Ministry spokesman Geng Shuang said the joint statement showed the international community wanted dialogue and not antagonistic voices, as he also urged North Korea not to violate U.N. Security Council resolutions.

“We hope relevant counties can maintain calm and restraint, and not take steps that might worsen tensions on the peninsula,” Geng told a daily briefing.

The U.S. and South Korean militaries conducted a ballistic missile test early on Wednesday in a show of force on the east coast of the Korean peninsula. The South said the drill aimed to showcase the ability to strike at the North’s leadership if necessary.

“It’s discouraging that the Chinese (and Russians) are still calling for ‘restraint by all sides’, despite the fact that their client state, North Korea, has cast aside all restraint and is sprinting for the finish line in demonstrating a nuclear-armed ICBM capability,” said Daniel Russel, formerly Washington’s top East Asia diplomat, now a diplomat in residence at the Asia Society Policy Institute.

LONG-RANGE MISSILE

The North’s state media said the missile, Hwasong-14, flew 933 km (580 miles), reaching an altitude of 2,802 km (1,741 miles) in its 39 minutes of flight.

Some analysts said the flight details suggested the new missile had a range of more than 8,000 km (4,970 miles), which would put significant parts of the U.S. mainland in range, a major advance in the North’s program.

The launch was both earlier and “far more successful than expected”, said U.S.-based missile expert John Schilling, a contributor to the Washington-based North Korea monitoring project, 38 North.

It would now probably only be a year or two before a North Korean ICBM achieved “minimal operational capability,” he added.

Experts say a reliable nuclear-tipped ICBM would require a small warhead to fit a long-range missile, technology to protect against intense heat as it re-enters the atmosphere, separate the warhead and guide it to its target.

South Korean President Moon Jae-in, who ordered Wednesday’s drill, said, “The situation was no longer sufficient to respond to the North’s provocation by making statements,” according to his office.

Tuesday’s test poses fresh challenges for Moon, who took office in May with a pledge to engage the North in dialogue while keeping up pressure and sanctions to impede its weapons programs.

His defense minister, Han Min-koo, told parliament on Wednesday there was a high possibility of a sixth nuclear test by the North, but there were no specific indications.

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

(Additional reporting by Lesley Wroughton, David Brunnstrom and Phil Stewart in Washington, and Michelle Nichols in New York and Christian Shepherd in Beijing; Editing by Soyoung Kim and Clarence Fernandez)

North Korea appeared to use China truck in its first claimed ICBM test

The intercontinental ballistic missile Hwasong-14 is seen in this undated photo released by North Korea's Korean Central News Agency (KCNA) in Pyongyang, July, 4 2017. KCNA/via REUTERS

By James Pearson and Jack Kim

SEOUL (Reuters) – North Korea appeared to use a Chinese truck originally sold for hauling timber to transport and erect a ballistic missile that was successfully launched on Tuesday, highlighting the challenge of enforcing sanctions to curb its weapons program.

North Korea state television showed a large truck painted in military camouflage carrying the missile. It was identical to one a U.N. sanctions panel has said was “most likely” converted from a Chinese timber truck.

Since 2006, U.N. sanctions have banned the shipment of military hardware to North Korea. But control of equipment and vehicles that have “dual-use” military and civilian applications has been far less stringent.

The vehicle was imported from China and declared for civilian use by the North Korean foreign ministry, according to a 2013 report by the U.N. panel. Tuesday’s launch was the first time the truck had been seen in a military field operation in pictures published in state media.

China, North Korea’s largest trading partner and its sole major ally, is under increasing pressure from U.S. President Donald Trump, who has said Chinese efforts to rein in North Korea’s weapons programs have failed.

The truck had been previously on display at military parades in 2012 and in 2013 carrying what experts said appeared to be developmental models or mock-ups of North Korea’s intercontinental ballistic missiles.

Images on the North Korea’s state television showed soldiers working on the vehicle mounted with a missile, which was then erected and off-loaded ahead of the launch at a hillside location. Leader Kim Jong Un supervised the test.

The transporter-erector-launcher (TEL) is a vehicle designed to move a ballistic missile and stand it upright, allowing for a mobile system that makes surveillance difficult for spy satellites.

In its 2013 report, the U.N. panel of experts said the features of the vehicle in the 2012 parade exactly matched those of a vehicle sold by China’s Hubei Sanjiang Space Wanshan Special Vehicle Company.

DELIBERATE BREACH?

The company is a subsidiary of China Aerospace Science and Industry Corp, a state-owned company that makes the Shenzhou rocket as well as missiles.

A company manager reached by telephone declined to comment citing the sensitivity of the issue.

China submitted to the U.N. panel a copy of the end user certificate provided by the North stating that six of the vehicles were being imported for the purpose of transporting timber.

The panel said it “considers it most likely that the (North) deliberately breached” the certificate and converted the trucks into transporter-erector-launchers.

This year, North Korea used another Chinese-made truck model to tow submarine-launched ballistic missiles (SLBM) at a military parade on the 105th anniversary of the birth of state founder Kim Il Sung.

Last year, state media published photos showing Chinese-made trucks being used in a new North Korean mobile rocket artillery system.

Both vehicles showed the logo or had markings specific to the Chinese company Sinotruk.

A Sinotruk sales official said in April he was not aware the company’s trucks were used in the military parade.

North Korean state media has in the past released images of Sinotruk chassis and cabins related to construction or mining.

The Chinese Foreign Ministry said on Tuesday, after the launch, it was opposed to North Korea contravening rules laid out in U.N. Security council resolutions. China was working hard to resolve the issue and urged all sides to meet each other half way, it added.

(Writing by Jack Kim; Editing by Bill Tarrant)

North Korea says intercontinental ballistic missile test successful

A man watches a TV broadcast of a news report on North Korea's ballistic missile test, at a railway station in Seoul, South Korea, July 4, 2017. REUTERS/Kim Hong-Ji

By Christine Kim and Jack Kim

SEOUL (Reuters) – North Korea said on Tuesday it successfully test-launched an intercontinental ballistic missile (ICBM) for the first time, which flew a trajectory that experts said could allow a weapon to hit the U.S. state of Alaska.

The launch came days before leaders from the Group of 20 nations were due to discuss steps to rein in North Korea’s weapons program, which it has pursued in defiance of U.N. Security Council sanctions.

The launch, which North Korea’s state media said was ordered and supervised by leader Kim Jong Un, sent the rocket 933 km (580 miles) reaching an altitude of 2,802 km over a flight time of 39 minutes.

North Korea has said it wants to develop a missile mounted with a nuclear warhead capable of striking the U.S. mainland.

To do that it would need an ICBM with a range of 8,000 km (4,800 miles) or more, a warhead small enough to be mounted on it and technology to ensure its stable re-entry into the atmosphere.

Some analysts said the flight details on Tuesday suggested the new missile had a range of more than 8,000 km, underscoring major advances in its program. Other analysts said they believed its range was not so far.

Officials from South Korea, Japan and the United States said the missile landed in the sea in Japan’s Exclusive Economic Zone after being launched on a high trajectory from near an airfield northwest of the North’s capital, Pyongyang.

“The test launch was conducted at the sharpest angle possible and did not have any negative effect on neighboring countries,” North Korea’s state media said in a statement.

The North said its missiles were now capable of striking anywhere in the world.

“It appears the test was successful. If launched on a standard angle, the missile could have a range of more than 8,000 km,” said Kim Dong-yub, a military expert at Kyungnam University’s Institute of Far Eastern Studies in Seoul.

“But we have to see more details of the new missile to determine if North Korea has acquired ICBM technology.”

South Korean President Moon Jae-in, who convened a national security council meeting, said earlier the missile was believed to be an intermediate-range type, but the military was looking into the possibility it was an ICBM.

‘HEAVY MOVE’

U.S. President Donald Trump wrote on Twitter: “North Korea has just launched another missile. Does this guy have anything better to do with his life?” in an apparent reference to North Korean leader Kim Jong Un.

“Hard to believe South Korea and Japan will put up with this much longer. Perhaps China will put a heavy move on North Korea and end this nonsense once and for all!”, Trump said in a series of tweets.

Stock markets in both South Korea and Japan fell, with the Kospi ending down 0.6 percent and Japan’s Nikkei share average ending down 0.1 percent.

Japan’s Prime Minister Shinzo Abe said he would ask the presidents of China and Russia to play more constructive roles in efforts to stop Pyongyang’s arms program.

“Leaders of the world will gather at the G20 meeting. I would like to strongly call for solidarity of the international community on the North Korean issue,” Abe told reporters.

Japan said on Monday the United States, South Korea and Japan would have a trilateral summit on North Korea at the G20. Chinese President Xi Jinping will also be at the July 7-8 meeting in Hamburg, Germany.

Chinese Foreign Ministry spokesman Geng Shuang called for calm and restraint, and reiterated China’s opposition to North Korea’s violation of U.N. resolutions on missile tests.

Responding to Trump’s tweet, Geng said China had for a long time been working hard to resolve the North Korean nuclear issue.

“China’s contribution is obvious to all. China’s role is indispensable,” he told a daily news briefing.

China would continue to work hard and also hoped other parties would work hard too, Geng said.

“We hope all sides can meet each other half way.”

North Korea says it needs to develop its weapons in the face of what it sees as U.S. aggression.

It has conducted five nuclear tests, two since the beginning of last year, and numerous missile tests over the past year.

It often times its tests to show its defiance and to raise the stakes when it sees regional powers getting ready for talks or sanctions, analysts say.

The launch took place hours before the Independence Day celebrations in the United States. North Korea has in the past fired missiles around this time.

LAST CHANCE FOR TALKS?

Despite the unprecedented pace of tests since the start of last year, analysts have said they believed North Korea was years away from having a nuclear-tipped ICBM capable of hitting the United States.

North Korea is also trying to develop intermediate-range missiles capable of hitting U.S. bases in the Pacific. The last North Korean launches before Tuesday were of land-to-sea cruise missiles on June 8.

David Wright, co-director of the Global Security Program at the U.S.-based Union of Concerned Scientists, said the assessments of the Tuesday flight time and distance suggested the missile might was launched on a “very highly lofted” trajectory of more than 2,800 km.

The same missile could reach a maximum range of roughly 6,700 km on a standard trajectory, Wright said in a blog post.

“That range would not be enough to reach the lower 48 states or the large islands of Hawaii, but would allow it to reach all of Alaska,” he said.

South Korea’s Moon said on Monday North Korea now faced its “last opportunity” to engage in talks with the outside world.

North Korea has conducted four ballistic missile tests since Moon took office in May, vowing to use dialogue as well as pressure to bring Pyongyang’s nuclear and missile programs under control.

This week, North Korea was a major topic in phone calls between Trump and the leaders of China and Japan, both of whom reaffirmed their commitment to a denuclearized Korean Peninsula.

Trump has recently suggested he was running out of patience with China’s efforts to pressure North Korea.

(For an interactive package on North Korea’s missile capabilities, click http://tmsnrt.rs/2t6WEPL)

(Additional reporting by Soyoung Kim in SEOUL, Kiyoshi Takenaka and Elaine Lies in TOKYO, Ben Blanchard in BEIJING and Ayesha Rascoe in WASHINGTON; Editing by Bill Tarrant, Robert Birsel)

U.S. targets Chinese bank, company, two individuals over North Korea

The flag of North Korea is seen in Geneva, Switzerland, June 20, 2017. REUTERS/Pierre Albouy

By Joel Schectman and David Brunnstrom

WASHINGTON (Reuters) – The United States imposed sanctions on two Chinese citizens and a shipping company on Thursday for helping North Korea’s nuclear and missile programs and accused a Chinese bank of laundering money for Pyongyang.

U.S. Treasury Secretary Steve Mnuchin said the actions were designed to cut off funds that North Korea uses to build its weapons programs in defiance of U.N. Security Council and unilateral sanctions.

“We will follow the money and cut off the money,” he told a news conference.

A Treasury statement identified the bank as the Bank of Dandong and the firm as Dalian Global Unity Shipping Co Ltd. It identified the two individuals as Sun Wei and Li Hong Ri.

The sanctions imposed on the two Chinese citizens and the shipping company blacklists them from doing business with U.S.-tied companies and people.

Bank of Dandong did not respond immediately to a request for comment. A staff member at Dalian Global Unity would not comment on the sanctions and subsequent calls to the firm’s office in Dalian went unanswered.

Mnuchin said U.S. officials were continuing to look at other companies that may be helping North Korea and may roll out additional sanctions.

U.S. foreign policy experts say Chinese companies have long had a key role in financing Pyongyang. However, Mnuchin said the action was not being taken to send China a message. “This wasn’t aimed at China. We continue to work with them,” he said.

Asked about the U.S. sanctions on Friday, Chinese Foreign Ministry Spokesman Lu Kang said that China consistently opposes unilateral sanctions imposed outside the U.N. framework.

“We strongly urge the United States to immediately correct its relevant wrong moves to avoid affecting bilateral cooperation on the relevant issue,” he said, without elaborating.

China’s ambassador to the United States, Cui Tiankai, said China opposed the United States using domestic laws to impose “long-arm jurisdiction” on Chinese companies or individuals, the official Xinhua news agency reported on Friday.

“If a Chinese company or individual has acted in a way that violates United Nations Security Council resolutions, then China will investigate and handle the issue in accordance with Chinese law,” he told an event in Washington on Thursday evening.

GROWING FRUSTRATION

U.S. officials told Reuters this week that President Donald Trump was growing increasingly frustrated with China over its inaction on North Korea and bilateral trade issues, and was now considering possible trade actions against Beijing.

A senior White House official told reporters on Wednesday China was “falling far short of what it could bring to bear on North Korea in terms of pressure.”

The U.S. move came as Trump was due to meet South Korean President Moon Jae-in at the White House on Thursday to discuss steps to push North Korea to abandon its weapons programs, which have become an increasing threat to the United States.

It also came after the United States sanctioned a Chinese industrial machinery wholesaler, Dandong Hongxiang Industrial Development Co, in September for its ties to North Korea’s nuclear program, the first time Washington had taken such a step against a Chinese firm.

China’s Foreign Ministry said in the same month Hongxiang was under investigation for “illegal behavior” and “economic crimes” following the provisions of U.N. resolution 2270, which imposed tighter sanctions on North Korea in March.

Mnuchin said the United States would discuss efforts to choke off funding for North Korea’s nuclear and missile programs with China and other countries at next week’s Group of 20 summit in Germany.

The U.S. Treasury Department said in an online notice published on Thursday the Bank of Dandong had served as a gateway for North Korea to access the U.S. financial system. Authorities said 17 percent of Dandong’s customer transactions in the bank’s U.S. accounts had ties to North Korea.

Anthony Ruggiero, a former senior Treasury official in the Office of Terrorist Financing and Financial Crimes, said the action against Bank of Dandong was the first time U.S. authorities had sought to punish a Chinese bank accused of helping North Korea.

It would immediately cause Western firms to cut off any transactions with Bank of Dandong, he said. It may also cause financial institutions in Western Europe and the United States to further scrutinize whether their Chinese business could have links to North Korea.

“The designation will make reputable Western banks ask questions about larger financial institutions in China,” said Ruggiero, who is now a senior fellow at the non-profit Foundation for Defense of Democracies.

(Reporting by David Brunnstrom and Joel Schectman; Additional reporting by Jeff Mason in WASHINGTON, and Meng Meng, Shu Zhang, Ben Blanchard and Christian Shepherd in BEIJING; Editing by Diane Craft and Paul Tait)

North Korea calls for execution of ex-South Korea leader over ‘assassination’ plot

South Korean ousted leader Park Geun-hye arrives at a court in Seoul, South Korea, May 23, 2017. REUTERS/Kim Hong-Ji

By Jack Kim

SEOUL (Reuters) – North Korea said on Wednesday it has issued a standing order for the execution of former South Korean President Park Geun-hye and her spy chief for what it said was a plot to assassinate its leader, and it demanded that the South hand the pair over.

The North’s official KCNA said “revelation showed” Park had masterminded a plot to execute its “supreme leadership” in 2015 and it was imposing the “death penalty on traitor Park Geun-hye” and her spy chief, Lee Byung-ho.

KCNA did not disclose the source of the “revelation,” but a Japanese newspaper reported this week that Park in 2015 approved a plan to overturn the North Korean regime of leader Kim Jong Un.

Park was ousted in March over a corruption scandal and is in detention in South Korea while on trial.

South Korea’s National Intelligence Agency (NIS) said it was “unpardonable” that North Korea made threats against its citizens and said the news report of a plot to kill Kim Jong Un “had no grounds.”

Japan’s Asahi Shimbun newspaper reported on Monday, citing sources familiar with Park’s North Korea policy, that Park had signed off on a plot to remove the North’s leader in 2015 and the plan was orchestrated by the South’s spy agency.

“We declare at home and abroad that we will impose the death penalty on traitor Park Geun-hye and ex-director of the puppet intelligence service … criminals of hideous state-sponsored terrorism who hatched and pressed for the heinous plot to hurt the supreme leadership of the DPRK,” KCNA said.

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

“We declare that in case the U.S. and the South Korean puppet forces again attempt at hideous state-sponsored terrorism targeting the supreme leadership … we will impose summary punishment without advance notice,” KCNA said.

KCNA said the statement was issued jointly by the North’s Ministry of State Security, the Ministry of People’s Security and the Central Public Prosecutors Office.

North and South Korea are technically in a state of war under a truce that ended the 1950-53 Korean War, and the North routinely warns of annihilating the South Korean government.

North Korean government agencies often issue harsh rhetoric in state media over perceived insults, or what they see as threats to the security of their leaders. The trend has intensified under Kim Jong Un.

In May, North Korea accused the U.S. Central Intelligence Agency and the South’s spy agency of another plot to assassinate its “supreme leadership” with biochemical weapon.

At that time, it also demanded the handover of former NIS chief Lee.

(Editing by Robert Birsel and Leslie Adler)

U.S. worries Russia could step up North Korea support to fill China void

U.S. Ambassador to the United Nations Nikki Haley testifies to the House Appropriations State, Foreign Operations and Related Programs Subcommittee on the budget for the U.N. in Washington, D.C., U.S., June 27, 2017. REUTERS/Joshua Roberts

By Michelle Nichols

UNITED NATIONS (Reuters) – As the United States pressures China to enforce United Nations sanctions on its ally North Korea, Washington is concerned that Russia could provide support to Pyongyang and fill any vacuum left by Beijing, U.S. Ambassador to the United Nations Nikki Haley said on Tuesday.

“I’m concerned that Russia may backfill North Korea,” Haley told U.S. lawmakers in Washington. “We don’t have proof of that, but we are watching that carefully.”

While Washington has urged countries to downgrade ties with Pyongyang over its nuclear and ballistic missile programs, a cross-border ferry service was launched in May between North Korea and neighboring Russia. Russian President Vladimir Putin has said the world should talk to, rather than threaten, North Korea.

“We just need to keep the pressure on China, we need to keep our eyes on Russia, and we need to continue to let the North Korea regime know we are not looking for regime change … we just want them to stop the nuclear activity,” Haley said.

The U.N. Security Council first imposed sanctions on North Korea in 2006 over its ballistic missile and nuclear programs and has ratcheted up the measures in response to five nuclear tests and two long-range missile launches. The government in Pyongyang is threatening a sixth nuclear test.

The Trump administration has been pressing China aggressively to rein in its reclusive neighbor, warning that all options are on the table if Pyongyang persists with its nuclear and missile development programs.

Beijing has repeatedly said its influence on North Korea is limited and that it is doing all it can, but U.S. President Donald Trump last week said China’s efforts had failed.

The United States has struggled to slow North Korea’s programs, which have become a security priority given Pyongyang’s vow to develop a nuclear-tipped missile capable of hitting the U.S. mainland.

“The pressure on China can’t stop,” Haley said. “We have to have China doing what they’re supposed to. At the same time all other countries need to make sure they’re enforcing the sanctions that the Security Council has already put in place.”

Trump, increasingly frustrated with China over its inaction on North Korea and bilateral trade issues, is now considering possible trade actions against Beijing, senior administration officials told Reuters.

The United States also plans to place China on its global list of worst offenders in human trafficking and forced labor, sources said, a step that could aggravate tensions with Beijing.

(Additional reporting by Patricia Zengerle, editing by G Crosse)

North Korea tests rocket engine, possibly for ICBM: U.S. officials

A North Korean flag is pictured at its embassy in Beijing January 6, 2016. REUTERS/Kim Kyung-Hoon

By Phil Stewart

WASHINGTON (Reuters) – North Korea has carried out another test of a rocket engine that the United States believes could be part of its program to develop an intercontinental ballistic missile, a U.S. official told Reuters on Thursday.

The United States assessed that the test, the latest in a series of engine and missile trials this year, could be for the smallest stage of an intercontinental ballistic missile (ICBM) rocket engine, said the official, who spoke on the condition of anonymity.

A second U.S. official also confirmed the test but did not provide additional details on the type of rocket component that was being tested or whether it fit into the ICBM program.

One official said he believed the test had taken place within the past 24 hours.

North Korea’s state media, which is normally quick to publicize successful missile-related developments, did not carry any reports on the engine test.

South Korean officials did not have details about the reported test and declined to comment on the possible nature of the engine.

Chinese Foreign Ministry spokesman Geng Shuang said China opposed any action that violated UN Security Council resolutions and called for restraint from all parties.

South Korean President Moon Jae-in, who was elected last month on a platform of a more moderate approach to Pyongyang including dialogue to ease tension, inspected the test-launch of a ballistic missile on Friday that is being developed by the South’s military.

“I believe in dialogue, but dialogue is possible when it’s backed by strong defense and engagement policy is possible only when we have security ability that can overwhelm the North,” Moon was quoted by his office as saying at the test site.

Moon’s office did not disclose the details of the missile being tested, but South Korea has been working to develop ballistic missiles with a range of 800 km (500 miles), a voluntary cap under an agreement with the United States.

The United States has tried for years to discourage South Korea from developing longer-range ballistic missiles in keeping with the Missile Technology Control Regime, a voluntary international arms-control pact.

CHINA PRESSED TO EXERT PRESSURE

The disclosure of the North’s engine test came a day after the United States pressed China to exert more economic and diplomatic pressure on North Korea to help rein in its nuclear and missile programs during a round of high-level talks in Washington.

Moon told Reuters in an exclusive interview on Thursday that strong new sanctions would be needed if the North conducted a new nuclear test or an intercontinental ballistic missile test and that he planned to call on Chinese President Xi Jinping to play a greater role in reining in Pyongyang’s arms program.

However, the Chinese Foreign Ministry spokesman questioned such calls.

“When the world says that it hopes China can do even more, I don’t know what ‘do even more’ refers to,” Geng told a daily news briefing in Beijing on Friday.

“We’ve said many times that China is making unremitting efforts to resolve the Korean peninsula nuclear issue, and plays an active and constructive role,” he said.

U.S. President Donald Trump has warned that a “major, major conflict” with North Korea is possible over its weapons programs, although U.S. officials say tougher sanctions, not military force, are the preferred option.

China’s top diplomat, Yang Jiechi, told Trump in a meeting at the White House that Beijing was willing to “maintain communication and coordination” with the United States in an effort to defuse tension on the Korean peninsula, according to a statement from China’s Foreign Ministry on Friday.

The head of the U.S. Defense Intelligence Agency told Congress last month that North Korea, if left unchecked, was on an “inevitable” path to obtaining a nuclear-armed missile capable of striking the U.S. mainland.

However, experts say Pyongyang could still be years away from have a reliable ICBM capability.

The continental United States is around 5,600 miles (9,000 km) from North Korea. ICBMs have a minimum range of about 3,400 miles (5,500 km), but some are designed to travel 6,200 miles (10,000 km) or farther.

Any military solution to the North Korea crisis would be “tragic on an unbelievable scale”, Trump’s defense secretary, Jim Mattis, said last month.

The United States, meanwhile, is ramping up capabilities to defend against the threat from North Korea, staging its first-ever successful test to intercept an incoming ICBM-type missile in May.

But a test on June 21 of a new capability being developed by the United States and Japan to defend against shorter-range missiles failed to hit its target, the U.S. Missile Defense Agency said on Thursday.

It was the second such test of the SM-3 Block IIA interceptor, which is being developed by Raytheon <RTN.N>. The previous intercept test, conducted in February, had been successful.

(Reporting by Phil Stewart; Additional reporting by Christine Kim and Jack Kim in SEOUL and Michael Martina in BEIJING; Editing by Jonathan Oatis, Lincoln Feast and Paul Tait)

Trump says China tried but failed to help on North Korea

U.S. President Donald Trump (L) and China's President Xi Jinping walk along the front patio of the Mar-a-Lago estate after a bilateral meeting in Palm Beach, Florida, U.S., April 7, 2017. REUTERS/Carlos Barria

By Steve Holland and Michael Martina

WASHINGTON/BEIJING (Reuters) – Chinese efforts to persuade North Korea to rein in its nuclear program have failed, President Donald Trump said on Tuesday, ratcheting up the rhetoric over the death of an American student who had been detained by Pyongyang.

Trump has held high hopes for greater cooperation from China to exert influence over North Korea, leaning heavily on Chinese President Xi Jinping for his assistance. The two leaders had a high-profile summit in Florida in April and Trump has frequently praised Xi while resisting criticizing Chinese trade practices.

“While I greatly appreciate the efforts of President Xi & China to help with North Korea, it has not worked out. At least I know China tried!” Trump wrote on Twitter.

It was unclear whether his remark represented a significant shift in his thinking in the U.S. struggle to stop North Korea’s nuclear program and its test launching of missiles or a change in U.S. policy toward China.

“I think the president is signaling some frustration,” Christopher Hill, a former U.S. ambassador to South Korea, told MSNBC. “He’s signaling to others that he understands this isn’t working, and he’s trying to defend himself, or justify himself, by saying that at least they tried as opposed to others who didn’t even try.”

China’s Foreign Ministry said on Wednesday that China had made “unremitting efforts” to resolve tensions on the Korean peninsula, and that it had “always played and important and constructive role”.

“China’s efforts to resolve the peninsula nuclear issue is not due to any external pressure, but because China is a member of the region and a responsible member of the international community, and because resolving the peninsula nuclear issue is in China’s interests,” ministry spokesman Geng Shuang told a daily news briefing.

On Tuesday, a U.S. official, who did not want to be identified, said U.S. spy satellites had detected movements recently at North Korea’s nuclear test site near a tunnel entrance, but it was unclear if these were preparations for a new nuclear test – perhaps to coincide with high-level talks between the United States and China in Washington on Wednesday.

“North Korea remains prepared to conduct a sixth nuclear test at any time when there is an order from leadership but there are no new unusual indications that can be shared,” a South Korean Defense Ministry official said, speaking on the condition of anonymity.

Seoul was in close consultation with Washington over the matter, the official added.

North Korea last tested a nuclear bomb in September, but it has conducted repeated missile test since and vowed to develop a nuclear-tipped missile capable of hitting the U.S. mainland, putting it at the forefront of Trump’s security worries.

U.S.-CHINA DIALOGUE

The Trump statement about China was likely to increase pressure on Beijing ahead of Wednesday’s Diplomatic and Security Dialogue, which will pair U.S. Secretary of State Rex Tillerson and Defense Secretary James Mattis with China’s top diplomat, State Councilor Yang Jiechi, and General Fang Fenghui, chief of joint staff of the People’s Liberation Army.

The State Department says the dialogue will focus on ways to increase pressure on North Korea, but also cover such areas as counter-terrorism and territorial rivalries in the South China Sea.

The U.S. side is expected to press China to cooperate on a further toughening of international sanctions on North Korea. The United States and its allies would like to see an oil embargo and bans on the North Korean airline and guest workers among other moves, steps diplomats say have been resisted by China and Russia.

In a sign that U.S.-Chinese relations remain stable, a White House aide said Trump’s daughter Ivanka Trump and her husband, White House senior adviser Jared Kushner, were invited by the Chinese government to visit the country later this year.

Trump has hardened his rhetoric against North Korea following the death of Otto Warmbier, a University of Virginia student who died on Monday in the United States after returning from captivity in North Korea in a coma.

“A DISGRACE”

In a White House meeting with visiting Ukraine President Petro Poroshenko, Trump criticized the way Warmbier’s case was handled in the year since his arrest, appearing to assail both North Korea and his predecessor, President Barack Obama.

“What happened to Otto is a disgrace. And I spoke with his family. His family is incredible … but he should have been brought home a long time ago,” Trump said.

State Department spokeswoman Heather Nauert said the United States holds North Korea accountable for Warmbier’s “unjust imprisonment” and urged Pyongyang to release three other Americans who are detained.

Chinese state-run newspaper the Global Times, published by the official People’s Daily, said Chinese officials must be wary that Warmbier’s death might push Washington to put greater pressure on Beijing.

“China has made the utmost efforts to help break the stalemate in the North Korean nuclear issue. But by no means will China, nor will Chinese society permit it to, act as a ‘U.S. ally’ in pressuring North Korea,” the Global Times said in an editorial.

If Washington imposes sanctions on Chinese enterprises, it would lead to “grave friction” between the two countries, said the paper, which does not represent Chinese government policy.

Trump’s tweet about China took some advisers by surprise. A senior administration official, speaking on condition of anonymity, said the United States had limited options to rein in North Korea without Chinese assistance.

White House spokesman Sean Spicer said a meeting between Trump and North Korean leader Kim Jong Un is less likely following Warmbier’s death.

Spicer said Trump would be willing to meet Kim under the right conditions, but “clearly we’re moving further away, not closer to those conditions.”

For graphic on Americans detained by North Korea, click: http://tmsnrt.rs/2r5xYpB

(Additional reporting by David Brunnstrom, David Alexander and John Walcott in Washington and Jack Kim in Seoul; Editing by Howard Goller, Leslie Adler and Lincoln Feast)