North Korea threatens to ‘sink’ Japan, reduce U.S. to ‘ashes and darkness’

North Korea threatens to 'sink' Japan, reduce U.S. to 'ashes and darkness'

By Jack Kim and Kiyoshi Takenaka

SEOUL/TOKYO (Reuters) – A North Korean state agency threatened on Thursday to use nuclear weapons to “sink” Japan and reduce the United States to “ashes and darkness” for supporting a U.N. Security Council resolution and sanctions over its latest nuclear test.

The Korea Asia-Pacific Peace Committee, which handles the North’s external ties and propaganda, also called for the breakup of the Security Council, which it called “a tool of evil” made up of “money-bribed” countries that move at the order of the United States.

“The four islands of the archipelago should be sunken into the sea by the nuclear bomb of Juche. Japan is no longer needed to exist near us,” the committee said in a statement carried by the North’s official KCNA news agency.

Juche is the North’s ruling ideology that mixes Marxism and an extreme form of go-it-alone nationalism preached by state founder Kim Il Sung, the grandfather of the current leader, Kim Jong Un.

Regional tension has risen markedly since the reclusive North conducted its sixth, and by far its most powerful, nuclear test on Sept. 3, following a series of missile tests, including one that flew over Japan.

The 15-member Security Council voted unanimously on a U.S.-drafted resolution and a new round of sanctions on Monday in response, banning North Korea’s textile exports that are the second largest only to coal and mineral, and capping fuel supplies.

The North reacted to the latest action by the Security Council, which had the backing of veto-holding China and Russia, by reiterating threats to destroy the United States, Japan and South Korea.

“Let’s reduce the U.S. mainland into ashes and darkness. Let’s vent our spite with mobilization of all retaliation means which have been prepared till now,” the statement said.

Japan’s Nikkei stock index and dollar/yen currency pared gains, although traders said that was more because of several Chinese economic indicators released on Thursday rather than a reaction to the North’s latest statement.

South Korea’s won also edged down around the same time over domestic financial concerns.

Despite the North’s threats, South Korean President Moon Jae-in said he was against having nuclear weapons in his country, either by developing its own arsenal or bringing back U.S. tactical nuclear weapons that were withdrawn in the early 1990s.

“To respond to North Korea by having our own nuclear weapons will not maintain peace on the Korean peninsula and could lead to a nuclear arms race in northeast Asia,” Moon said in an interview with CNN.

South Korea’s Unification Ministry also said it planned to provide $8 million through the U.N. World Food Programme and UNICEF to help infants and pregnant women in the North.

The move marks Seoul’s first humanitarian assistance for the North since its fourth nuclear test in January 2016 and is based on a longstanding policy of separating humanitarian aid from politics, the ministry said.

“DANCING TO THE TUNE”

The North’s latest threats also singled out Japan for “dancing to the tune” of the United States, saying it should never be pardoned for not offering a sincere apology for its “never-to-be-condoned crimes against our people”, an apparent reference to Japan’s wartime aggression.

It also referred to South Korea as “traitors and dogs” of the United States.

Japan criticized the North’s statement harshly.

“This announcement is extremely provocative and egregious. It is something that markedly heightens regional tension and is absolutely unacceptable,” Japanese Chief Cabinet Secretary Yoshihide Suga told reporters.

Japanese Prime Minister Shinzo Abe, visiting India, called for strict enforcement of the U.N. resolution, saying the world must force a change.

The 15-member Security Council voted unanimously on a U.S.-drafted resolution and a new round of sanctions against North Korea on Monday in response to its latest and most powerful test, banning North Korea’s textile exports that are the second largest only to coal and mineral, and capping fuel supplies.

North Korea had already rejected the Security Council resolution, vowing to press ahead with its nuclear and missile programs.

A tougher initial U.S. draft of Monday’s resolution was weakened to win the support of China, the North’s lone major ally, and Russia. Significantly, it stopped short of imposing a full embargo on oil exports to North Korea, most of which come from China.

The latest sanctions also make it illegal for foreign firms to form commercial joint ventures with North Korean entities.

U.S. President Donald Trump has vowed that North Korea will never be allowed to threaten the United States with a nuclear-tipped missile, but has also asked China to do more to rein in its neighbor. China in turn favors an international response to the problem.

Chinese Foreign Ministry spokeswoman Hua Chunying said the international community had reached a “high consensus” on trying to realize a peaceful solution.

“We urge the relevant directly involved parties to seize the opportunity and have the political nerve to make the correct political choice as soon as possible,” Hua told a regular press briefing.

The North accuses the United States, which has 28,500 troops in South Korea, of planning to invade and regularly threatens to destroy it and its Asian allies.

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

(Additional reporting by Christian Shepherd in Beijing, Hyonhee Shin in Seoul, Sanjeev Miglani in New Delhi and Kiyoshi Takenaka in Tokyo; Editing by Paul Tait and Nick Macfie)

North Korea defiant over U.N. sanctions as Trump says tougher steps needed

North Korea defiant over U.N. sanctions as Trump says tougher steps needed

By Jack Kim and Roberta Rampton

SEOUL/WASHINGTON (Reuters) – North Korea showed trademark defiance on Wednesday over new U.N. sanctions imposed after its sixth and largest nuclear test, vowing to redouble efforts to fight off what it said was the threat of a U.S. invasion.

U.S. President Donald Trump said Monday’s sanctions, unanimously agreed on Monday by the 15-member U.N. Security Council, were just a small step towards what is ultimately needed to rein in Pyongyang over its nuclear and missile programs.

The North’s Foreign Ministry said the resolutions were an infringement on its legitimate right to self-defense and aimed at “completely suffocating its state and people through full-scale economic blockade”.

“The DPRK will redouble the efforts to increase its strength to safeguard the country’s sovereignty and right to existence and to preserve peace and security of the region by establishing the practical equilibrium with the U.S.,” it said in a statement carried by the official KCNA news agency.

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

The statement echoed comments on Tuesday by the North’s ambassador to the United Nations in Geneva, Han Tae Song, who said Pyongyang was “ready to use a form of ultimate means”.

“The forthcoming measures … will make the U.S. suffer the greatest pain it ever experienced in its history,” Han said.

The North’s Rodong Sinmun newspaper also accused South Korea of being Washington’s “puppet”, criticizing Seoul’s agreement with the United States to amend an existing bilateral guideline that will now allow the South to use unlimited warhead payloads on its missiles.

The U.N. Security Council agreed to boost sanctions on North Korea, banning its textile exports and capping fuel supplies, and making it illegal for foreign firms to form commercial joint ventures with North Korean entities.

The U.N. resolution was triggered by North Korea’s test of what it said was a hydrogen bomb.

Damage to mountainous terrain at the North’s nuclear test site in Punggye-ri seen in satellite imagery taken after the latest test was more extensive than anything seen after the five previous tests, the Washington-based 38 North project said.

There was also activity at another location in the Mount Mantap site involving large vehicles and mining equipment that suggests “onsite work could now be changing focus to further prepare those other portals for future underground nuclear testing”, said 38 North, which monitors North Korea.

The North accuses the United States, which has 28,500 troops in South Korea, a legacy of the 1950-53 Korean war, of continual plans for invasion.

North Korea has also tested a missile capable of reaching the United States, but experts say it is likely to be at least a year before it can field an operational nuclear missile that could threaten the U.S. mainland.

ANOTHER SMALL STEP

Trump has vowed not to allow that to happen.

A tougher initial U.S. draft resolution was weakened to win the support of China and Russia, both of which hold U.N. veto power. Significantly, it stopped short of imposing a full embargo on oil exports to North Korea, most of which come from China.

“We think it’s just another very small step, not a big deal,” Trump told reporters at the start of a meeting with Malaysian Prime Minister Najib Razak.

“I don’t know if it has any impact, but certainly it was nice to get a 15-to-nothing vote, but those sanctions are nothing compared to what ultimately will have to happen.”

U.S. Treasury Secretary Steven Mnuchin warned China, North Korea’s main ally and trading partner, that Washington would “put additional sanctions on them and prevent them from accessing the U.S. and international dollar system” if it did not follow through on the new measures.

Another senior administration official told Reuters any such “secondary sanctions” on Chinese banks and other companies were on hold for now to give China time to show it was prepared to fully enforce the latest and previous rounds of sanctions.

Washington so far has mostly held off on new sanctions against Chinese banks and other companies doing business with North Korea, given fears of retaliation by Beijing and possibly far-reaching effects on the world economy.

Russia and China both say they respect U.N. sanctions and have called on the United States to return to negotiations with North Korea. They have also said they could kick-start talks with North Korea if the United States halts joint military drills with South Korea, which Washington has rejected.

An article carried on the front page of the People’s Daily, the official paper of China’s ruling Communist Party, said the Korean peninsula had reached the “moment of choice” where the United States and North Korea must break from the cycle of nuclear tests and sanctions.

“All parties involved in the peninsula have their own strategic considerations, but not being able to see beyond this vicious cycle is not in anyone’s interest,” the article said.

Asked about the North Korean and U.S. rhetoric, China’s foreign ministry reiterated a call for restraint and a return to dialogue.

“We hope all relevant parties can be rational and maintain restraint and not take actions that could further increase tensions on the peninsula,” ministry spokesman Geng Shuang said at a regular briefing.

In another show of force, South Korea’s Air Force conducted its first live-fire exercise of Taurus long-range, air-to-surface missiles on Tuesday, the defense ministry said, as practice for precision bombing North Korean facilities.

U.S. Ambassador to the United Nations Nikki Haley said the new sanctions could eventually starve North Korea of an additional $500 million or more in annual revenue.

The United States has said that a previous round of sanctions agreed in August was aimed at cutting North Korea’s $3 billion in exports by a third.

(Additional reporting by Christine Kim and Yuna Park in SEOUL, Michael Martina and Christian Shepherd in BEIJING, and Roberta Rampton and David Brunnstrom in WASHINGTON; Editing by Lincoln Feast, Paul Tait and Nick Macfie)

North Korea sanctions ‘nothing compared to what will have to happen’: Trump

U.S. President Donald Trump waits to greet Malaysia's Prime Minister Najib Razak at the White House in Washington, U.S. September 12, 2017. REUTERS/Jonathan Ernst

By Roberta Rampton

WASHINGTON (Reuters) – U.S. President Donald Trump said on Tuesday the latest U.N. sanctions on North Korea were only a very small step and nothing compared to what would have to happen to deal with the country’s nuclear program.

The U.N. Security Council unanimously voted to boost sanctions on North Korea on Monday, with its profitable textile exports now banned and fuel supplies capped, prompting a traditionally defiant threat of retaliation against the United States.

Monday’s decision, triggered by the North’s sixth and largest nuclear test this month, was the ninth such resolution unanimously adopted by the 15-member Security Council since 2006 over North Korea’s ballistic missile and nuclear programs.

A tougher initial U.S. draft was weakened to win the support of China, Pyongyang’s main ally and trading partner, and Russia, both of which hold veto power in the council. Significantly, it stopped short of imposing a full embargo on oil exports to North Korea, most of which come from China.

Trump told reporters at the start of a meeting with Malaysian Prime Minister Najib Razak that he was pleased Malaysia no longer did business with North Korea, before adding that he had just discussed the U.N. vote with Secretary of State Rex Tillerson.

“We think it’s just another very small step, not a big deal. … I don’t know if it has any impact, but certainly it was nice to get a 15-to-nothing vote.

“But those sanctions are nothing compared to what ultimately will have to happen,” he said without elaborating. Trump has vowed not to allow North Korea to possess a nuclear missile capable of hitting the United States.

U.S. Treasury Secretary Steven Mnuchin told a conference earlier on Tuesday that if China did not follow through on the new sanctions, “we will put additional sanctions on them and prevent them from accessing the U.S. and international dollar system.”

Washington so far has mostly held off on new sanctions against Chinese banks and other companies doing business with North Korea, given fears of retaliation by Beijing and possibly far-reaching effects on the world economy.

CHINA AND NORTH KOREA

Trump is likely to make a stop in China in November during his first official visit to Asia and Tillerson was due to hold talks later on Tuesday with China’s most senior diplomat, State Councilor Yang Jiechi, at which details of the trip are expected to be discussed, U.S. officials said.

The U.S. president has wavered between criticizing China for not doing enough on North Korea to heaping personal praise on the Chinese President Xi Jinping.

North Korea said its Sept. 3 test was of an advanced hydrogen bomb and was its most powerful by far.

Its ambassador to the United Nations in Geneva, Han Tae Song, rejected the resolution as “illegal and unlawful” and said Washington was “fired up for political, economic, and military confrontation.”

North Korea is “ready to use a form of ultimate means,” Han said. “The forthcoming measures … will make the U.S. suffer the greatest pain it ever experienced in its history.”

He did not elaborate, but North Korea frequently vows to destroy the United States.

The latest U.N. resolution also calls on countries to inspect vessels on the high seas, with the consent of the flag state, if they have reasonable grounds to believe ships are carrying prohibited cargo to North Korea.

It also bans joint ventures with North Korean entities, except for nonprofit public utility infrastructure projects, and prohibits countries from bringing in new North Korean workers.

On Tuesday, frustrated U.S. lawmakers called on Tuesday for a “supercharged” response to North Korea’s nuclear and missile tests, saying Washington should act alone if necessary to stiffen sanctions on companies from China and any country doing business with Pyongyang. [nL2N1LT10K}

Saying “time is running out,” Representative Ed Royce, the Republican chairman of the House of Representatives Foreign Affairs Committee said the United States should give Chinese banks and companies “a choice between doing business with North Korea or the United States.”

Assistant Treasury Secretary Marshall Billingslea acknowledged at a House hearing that he had not seen sufficient evidence past sanctions were effective, but defended the administration’s strategy.

He called on anyone aware of efforts to enable North Korean trade to come forward before getting caught. “We are closing in on North Korea’s trade representatives,” he said.

U.S. Ambassador to the United Nations Nikki Haley said the United States was “not looking for war” and if North Korea agreed to stop its nuclear program, it could “reclaim its future.”

“If North Korea continues its dangerous path, we will continue with further pressure,” said Haley, who credited a “strong relationship” between Trump and Chinese President Xi Jinping for the resolution.

She said the sanctions could eventually starve North Korea of an additional $500 million or more in annual revenue. The United States has said that a previous rounds of sanctions agreed in August were aimed at cutting North Korea’s $3 billion in exports by a third.

China’s official Xinhua news agency said in a commentary that the Trump administration was making a mistake by rejecting diplomatic engagement with North Korea.

“The U.S. needs to switch from isolation to communication in order to end an ‘endless loop’ on the Korean peninsula, where “nuclear and missile tests trigger tougher sanctions and tougher sanctions invite further tests,” it said.

(Restores dropped word “to” in first paragraph.)

(Additional reporting by Hyonhee Shin and Christine Kim in Seoul, David Lawder in Washington, Philip Wen in Beijing, Kaori Kaneko in Tokyo, David Brunnstrom in Washington and Stephanie Nebehay in Geneva; Editing by Nick Macfie and Jonathan Oatis)

U.N. Security Council steps up sanctions on defiant North Korea

U.N. Security Council steps up sanctions on defiant North Korea

By Michelle Nichols and Jack Kim

UNITED NATIONS/SEOUL (Reuters) – The U.N. Security Council unanimously voted to step up sanctions on North Korea, with its profitable textile exports now banned and fuel supplies capped, prompting a traditionally defiant threat of retaliation against the United States.

Monday’s decision, triggered by the North’s sixth and largest nuclear test this month, was the ninth such resolution unanimously adopted by the 15-member Security Council since 2006 over North Korea’s ballistic missile and nuclear programs.

Japan and South Korea said after the passage of the U.S.-drafted Security Council resolution they were prepared to apply more pressure if North Korea refused to end its aggressive development of nuclear weapons and ballistic missiles.

A tougher initial U.S. draft was weakened to win the support of China, Pyongyang’s main ally and trading partner, and Russia, both of which hold veto power in the council.

“We don’t take pleasure in further strengthening sanctions today. We are not looking for war,” U.S. Ambassador to the United Nations Nikki Haley told the council after the vote. “The North Korean regime has not yet passed the point of no return.

“If it agrees to stop its nuclear program, it can reclaim its future … If North Korea continues its dangerous path, we will continue with further pressure,” said Haley, who credited a “strong relationship” between U.S. President Donald Trump and Chinese President Xi Jinping for the successful resolution negotiations.

North Korea’s ambassador, Han Tae Song, told the U.N.-sponsored Conference on Disarmament in Geneva on Tuesday the United States was “fired up for political, economic, and military confrontation”.

The North regularly threatens to destroy the South and its main ally, the United States, which it accuses of continual preparation for invasion.

“My delegation condemns in the strongest terms, and categorically rejects, the latest illegal and unlawful U.N. Security Council resolution,” he said.

The Democratic People’s Republic of Korea (DPRK) was “ready to use a form of ultimate means”, Han said, without elaborating.

“The forthcoming measures by DPRK will make the U.S. suffer the greatest pain it ever experienced in its history.”

U.S. disarmament ambassador Robert Wood took the floor to say the Security Council resolution “frankly sent a very clear and unambiguous message to the regime that the international community is tired, is no longer willing to put up with provocative behavior from this regime”.

U.N. member states are now required to halt imports of textiles from North Korea, its second largest export after coal and other minerals in 2016 that totaled $752 million and accounted for a quarter of its income from trade, according to South Korean data. Nearly 80 percent went to China.

“This resolution also puts an end to the regime making money from the 93,000 North Korean citizens it sends overseas to work and heavily taxes,” Haley said.

“This ban will eventually starve the regime of an additional $500 million or more in annual revenues,” she said.

RESUME DIALOGUE

South Korea’s presidential Blue House said the only way for Pyongyang to end diplomatic isolation and free itself of economic pressure was to end its nuclear program and resume dialogue.

“North Korea needs to realize that a reckless challenge against international peace will only bring about even stronger international sanctions against it,” the Blue House said.

However, China’s official Xinhua news agency said in a commentary that the Trump administration was making a mistake by rejecting diplomatic engagement with the North.

“The U.S. needs to switch from isolation to communication in order to end an ‘endless loop’ on the Korean peninsula, where “nuclear and missile tests trigger tougher sanctions and tougher sanctions invite further tests,” Xinhua said.

Japanese Prime Minister Shinzo Abe quickly welcomed the resolution and said after the vote it was important to change North Korea’s policy by stepping up pressure.

The resolution imposes a ban on condensates and natural gas liquids, a cap of 2 million barrels a year on refined petroleum products, and a cap on crude oil exports to North Korea at current levels. China supplies most of North Korea’s crude.

A U.S. official, familiar with the council negotiations and speaking on condition of anonymity, said North Korea imported about 4.5 million barrels of refined petroleum products annually and 4 million barrels of crude oil.

Chinese officials have privately expressed fears that an oil embargo could risk causing massive instability in their neighbor. Russia and China have also expressed concern about the humanitarian impact of stiffer sanctions on North Korea.

Haley said the resolution aimed to hit “North Korea’s ability to fuel and fund its weapons program”. Trump has vowed not to allow North Korea to develop a nuclear missile capable of hitting the mainland United States.

South Korean officials said after the North’s sixth nuclear test that Pyongyang could soon launch another intercontinental ballistic missile in defiance of international pressure. North Korea said its Sept. 3 test was of an advanced hydrogen bomb and was its most powerful by far.

The latest resolution contained new political language urging “further work to reduce tensions, so as to advance the prospects for a comprehensive settlement”.

The resolution also calls on countries to inspect vessels on the high seas, with the consent of the flag state, if they have reasonable grounds to believe the ships are carrying prohibited cargo.

It also bans joint ventures with North Korean entities, except for non-profit public utility infrastructure projects.

(Additional reporting by Hyonhee Shin and Christine Kim in Seoul, Philip Wen in Beijing, Kaori Kaneko in Tokyo, David Brunnstrom in Washington and Stephanie Nebehay in Geneva; Editing by Nick Macfie)

U.N. Security Council to vote Monday on weakened North Korea sanctions

North Korean leader Kim Jong Un claps during a celebration for nuclear scientists and engineers who contributed to a hydrogen bomb test, in this undated photo released by North Korea's Korean Central News Agency (KCNA) in Pyongyang on September 10, 2017.

By Michelle Nichols and Jack Kim

UNITED NATIONS/SEOUL (Reuters) – The U.N. Security Council is set to vote on Monday on a watered-down U.S.-drafted resolution to impose new sanctions on North Korea over its latest nuclear test, diplomats said, but it was unclear whether China and Russia would support it.

North Korea warned the United States that it would pay a “due price” for spearheading efforts for fresh sanctions for this month’s nuclear test, which followed a series of test missile launches, all in defiance of U.N. sanctions.

A U.S.-drafted resolution originally calling for an oil embargo on the North, a halt to its key exports of textiles and subjecting leader Kim Jong Un to a financial and travel ban have been weakened, apparently to placate Russia and China which both have veto powers, diplomats said.

It no longer proposes blacklisting Kim and relaxes sanctions earlier proposed on oil and gas, a draft reviewed by Reuters shows. It still proposes a ban on textile exports.

North Korea was condemned globally for conducting its sixth nuclear test on Sept 3, which it said was of an advanced hydrogen bomb. NATO head Jens Stoltenberg said at the weekend that North Korea’s “reckless behavior”, pursuing nuclear and missile programs, was a global threat and required a global response.

The tensions have weighed on global markets, but on Monday there was some relief among investors that North Korea did not conduct a further missile test this weekend when it celebrated its founding anniversary.

Still, North Korea denounced efforts by Washington to impose new U.N.-backed sanctions against the country. The North’s Foreign Ministry spokesman said the United States was “going frantic” to manipulate the Security Council over Pyongyang’s nuclear test, which it said was part of “legitimate self-defensive measures.”

“In case the U.S. eventually does rig up the illegal and unlawful ‘resolution’ on harsher sanctions, the DPRK shall make absolutely sure that the U.S. pays due price,” the spokesman said in a statement carried by the official KCNA news agency.

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

“The world will witness how the DPRK tames the U.S. gangsters by taking a series of actions tougher than they have ever envisaged,” the unnamed spokesman said.

“The DPRK has developed and perfected the super-powerful thermo-nuclear weapon as a means to deter the ever-increasing hostile moves and nuclear threat of the U.S. and defuse the danger of nuclear war looming over the Korean peninsula and the region.”

South Korean President Moon Jae-in said last week during a visit to Russia that shutting off North Korea’s supply of oil was inevitable this time to bring Pyongyang to talks and he called for Russian President Vladimir Putin’s support.

Putin has remained firm however that such sanctions on oil would have negative humanitarian effects on North Koreans.

China, the North’s lone major ally, may be most critical though in deciding if oil sanctions go ahead because it controls an oil pipeline that industry sources say provides about 520,000 tonnes of crude a year to the North.

A Security Council resolution needs nine votes in favor and no vetoes by permanent members the United States, Britain, France, Russia or China to pass.

Chinese Foreign Ministry spokesman Geng Shuang stressed the need for consensus and maintaining peace.

“I have said before that China agrees that the U.N. Security Council should make a further response and necessary actions with respect to North Korea’s sixth nuclear test,” he told reporters.

“We hope Security Council members on the basis of sufficient consultations reach consensus and project a united voice. The response and actions the Security Council makes should be conducive to the denuclearization of the peninsula, conducive to safeguarding the peace and stability of the peninsula, and conducive to push forward the use of peaceful and political means to resolve the peninsula nuclear issue.”

 

FALLOUT

The latest draft of the resolution reflects the challenge in imposing tough sanctions on the North by curbing its energy supply and singling out its leader for a financial and travel ban, a symbolic measure at best but one that is certain to rile Pyongyang.

It will also be a disappointment to South Korea, which has sought tough new sanctions that would be harder for Pyongyang to ignore, as it said dialogue remained on the table.

“We have been in consultations that oil has to be part of the final sanctions,” South Korean Foreign Minister Kang Kyung-wha told a news conference, saying Pyongyang was on a “reckless path”.

“I do believe that whatever makes it into the final text and is adopted by consensus hopefully will have significant consequences on the economic pressure against North Korea.”

There was no independent verification of the North’s claim to have conducted a hydrogen bomb test, but some experts said there was enough strong evidence to suggest Pyongyang had either developed a hydrogen bomb or was getting close.

KCNA said on Sunday that Kim threw a banquet to celebrate the scientists and top military and party officials who contributed to the nuclear bomb test, topped with an art performance and a photo session with the leader himself.

The standoff is also spilling over into the business relationship between South Korea and China.

South Korea’s Lotte Shopping  is considering selling its supermarkets in China and other options should political tensions between Seoul and Beijing continue next year, an official at the retailer told Reuters.

China has pressured South Korean businesses via boycotts and bans since Seoul decided last year to deploy a U.S.-made missile defense system as a deterrent to North Korea. Beijing says the system’s radar can penetrate far into its territory.

South Korea deployed four additional units of the Terminal High Altitude Area Defense (THAAD) system on Thursday after the North’s latest nuclear test.

The heightened tension could have a substantial impact on South Korea’s economy and could also disrupt trade between the United States and China, ratings agency Fitch said on Monday.

Outright military conflict on the Korean peninsula is unlikely but prolonged tension could undermine business and consumer sentiment, Fitch said.

 

(Additional reporting by Christine Kim and Hyunjoo Jin in SEOUL and Philip Wen in BEIJING; Editing by Neil Fullick and Nick Macfie)

 

France discusses increased pressure on North Korea with Trump, Abe

North Korean leader Kim Jong Un provides guidance with Ri Hong Sop (2nd L) and Hong Sung Mu ( 2nd R) on a nuclear weapons program in this undated photo released by North Korea's Korean Central News Agency (KCNA) in Pyongyang September 3, 2017. KCNA via REUTERS

PARIS (Reuters) – France’s Emmanuel Macron discussed increased pressure and sanctions on North Korea on the telephone with U.S. President Donald Trump and Japan’s Prime Minister Shinzo Abe on Saturday, the French president’s office said.

The three leaders stressed the need for a “united and firm” reaction from the international community toward Pyongyang, Macron’s office said.

South Korea was bracing on Saturday for a possible further missile test by North Korea as it marked its founding anniversary, just days after its sixth and largest nuclear test.

The French presidency said North Korea’s “repeated provocations” were a “threat to peace and international security”. It also said Macron had expressed France’s “solidarity” with Japan.

Tension on the Korean peninsula has escalated as North Korea’s leader, Kim Jong Un, has stepped up the development of weapons, testing a string of missiles this year, including one flying over Japan.

Experts believe the Pyongyang government is close to its goal of developing a powerful nuclear weapon capable of reaching the United States, something U.S. President Trump has vowed to prevent.

(Reporting by Michel Rose,; Writing by Matthias Blamont, Editing by Leigh Thomas and Angus MacSwan)

‘Lips and teeth’ no more as China’s ties with North Korea fray

FILE PHOTO: North Korean soldiers chat as they stand guard behind national flags of China (front) and North Korea on a boat anchored along the banks of Yalu River, near the North Korean town of Sinuiju, opposite the Chinese border city of Dandong, June 10, 2013. REUTERS/Jacky Chen

By Philip Wen and Christian Shepherd

BEIJING (Reuters) – When Kim Jong Un inherited power in North Korea in late 2011, then-Chinese president Hu Jintao was outwardly supportive of the untested young leader, predicting that “traditional friendly cooperation” between the countries would strengthen.

Two years later, Kim ordered the execution of his uncle Jang Song Thaek, the country’s chief interlocutor with China and a relatively reform-minded official in the hermetic state.

Since then, ties between the allies have deteriorated so sharply that some diplomats and experts fear Beijing may become, like Washington, a target of its neighbor’s ire.

While the United States and its allies – and many people in China – believe Beijing should do more to rein in Pyongyang, the acceleration of North Korea’s nuclear and missile capabilities has coincided with a near-total breakdown of high-level diplomacy between the two.

Before retiring this summer, China’s long-time point man on North Korea, Wu Dawei, had not visited the country for over a year. His replacement, Kong Xuanyou, has yet to visit and is still carrying out duties from his previous Asian role, traveling to Pakistan in mid-August, diplomats say.

The notion that mighty China wields diplomatic control over impoverished North Korea is mistaken, said Jin Canrong, an international relations professor at Beijing’s Renmin University.

“There has never existed a subordinate relationship between the two sides. Never. Especially after the end of the Cold War, the North Koreans fell into a difficult situation and could not get enough help from China, so they determined to help themselves.”

A famine in the mid-1990s that claimed anywhere from 200,000 to three million North Koreans was a turning point for the economy, forcing private trade on the collectivized state. That allowed the North a degree of independence from outside aid and gave credence to the official “Juche” ideology of self-reliance.

AVOID CHAOS

China fought alongside North Korea during the 1950-53 Korean War, in which Chinese leader Mao Zedong lost his eldest son, and Beijing has long been Pyongyang’s chief ally and primary trade partner.

While their relationship has always been clouded by suspicion and mistrust, China grudgingly tolerated North Korea’s provocations as preferable to the alternatives: chaotic collapse that spills across their border, and a Korean peninsula under the domain of a U.S.-backed Seoul government.

That is also the reason China is reluctant to exert its considerable economic clout, worried that measures as drastic as the energy embargo proposed this week by Washington could lead to the North’s collapse.

Instead, China repeatedly calls for calm, restraint and a negotiated solution.

The North Korean government does not provide foreign media with a contact point in Pyongyang for comment by email, fax or phone. The North Korean embassy in Beijing was not immediately available for comment.

China’s foreign ministry did not respond to a faxed request for comment. It has repeatedly spoken out against what it calls the “China responsibility theory” and insists the direct parties – North Korea, South Korea and the United States – hold the key to resolving tensions.

‘FEUDAL AGES’

Until his death in 2011, North Korean leader Kim Jong Il made numerous entreaties to ensure China would back his preferred son as successor.

While then-President Hu reciprocated, the younger Kim, in his late 20s at the time, began to distance himself from his country’s most powerful ally.

“There’s a lot of domestic politics in North Korea where this young leader who isn’t well-known, he’s not proven yet, especially has to show that he’s not in the pocket of Beijing,” said John Delury of Seoul’s Yonsei University. “I think he made the decision first to keep Hu Jintao and then (current President) Xi Jinping really at bay.”

Within months of coming to power, Kim telegraphed North Korea’s intentions by amending its constitution to proclaim itself a nuclear state. The execution of Jang in 2013 sealed Beijing’s distrust of the young leader.

“Of course the Chinese were not happy,” said a foreign diplomat in Beijing focused on North Korea. “Executing your uncle, that’s from the feudal ages.”

In an attempt to warm ties, Xi sent high-ranking Communist Party official Liu Yunshan to attend the North’s October 2015 military parade marking the 70th anniversary of the founding of the Workers’ Party of Korea.

Liu hand-delivered a letter from Xi praising Kim’s leadership and including congratulations not just from the Chinese Communist Party but Xi’s personal “cordial wishes” in a powerful show of respect.

Xi’s overture has been repaid with increasingly brazen actions by Pyongyang, which many observers believe are timed for maximum embarrassment to Beijing. Sunday’s nuclear test, for example, took place as China hosted a BRICS summit, while in May, the North launched a long-range missile just hours before the Belt and Road Forum, dedicated to Xi’s signature foreign policy initiative.

MISREADING LIPS

Mao Zedong’s description of North Korea’s relationship with China is typically mischaracterised as being as close as “lips and teeth”.

His words are better translated as: “If the lips are gone, the teeth will be cold,” a reference to the strategic importance of the North as a geographical security buffer.

Despite its resentment at the pressure North Korea’s actions have put it under, Beijing refrains from taking too hard a line.

It said little when Kim Jong Un’s half-brother was assassinated in February at Kuala Lumpur’s airport. The half-brother, Kim Jong Nam, had been seen as a potential rival for power in Pyongyang and had lived for years in Beijing, then Macau.

An editorial in China’s influential Global Times warned after Pyongyang’s latest nuclear test that cutting off North Korea’s oil would redirect the conflict to one between North Korea and China.

Zhao Tong, a North Korea expert at the Carnegie-Tsinghua Center in Beijing, said North Korea was deeply unhappy with China’s backing of earlier UN sanctions.

“If China supports more radical economic sanctions that directly threaten the stability of the regime, then it is possible that North Korea becomes as hostile to China as to the United States.”

(This story has been refiled to remove reference to uncle in paragraph 18)

(Reporting by Philip Wen and Christian Shepherd; Editing by Tony Munroe and Lincoln Feast)

South Korea braces for possible new missile test to mark North’s founding day

FILE PHOTO: South Korean national flags hang on a barbed-wire fence near the demilitarized zone separating the two Koreas in Paju, South Korea, August 14, 2017. REUTERS/Kim Hong-Ji

By Christine Kim

SEOUL (Reuters) – South Korea braced for a possible further missile test by North Korea when it marks its founding anniversary on Saturday, just days after its sixth and largest nuclear test, which it marks each year with a big display of pageantry and military hardware.

Throughout the week, South Korean officials have warned the North could launch another intercontinental ballistic missile, in defiance of U.N. sanctions and amid an escalating standoff with the United States.

Last year, North Korea conducted its fifth nuclear test on the Sept. 9 anniversary.

Tension on the Korean peninsula has escalated as North Korea’s young leader, Kim Jong Un, has stepped up the development of weapons, testing a string of missiles this year, including one flying over Japan, and conducting its sixth nuclear test on Sunday.

Experts believe the isolated regime is close to its goal of developing a powerful nuclear weapon capable of reaching the United States, something Trump has vowed to prevent.

South Korean nuclear experts, checking for contamination, said on Friday they had found minute traces of radioactive xenon gas but that it was too early to link it to Sunday’s explosion.

The Nuclear Safety and Security Commission (NSSC) said it had been conducting tests on land, air and water samples since shortly after the North Korean nuclear test on Sunday.

Xenon is a naturally occurring, colorless gas that is used in manufacturing of some sorts of lights. But the NSSC said it had detected xenon-133, a radioactive isotope that does not occur naturally and which has in the past been linked to North Korea’s nuclear tests.

There was no chance the xenon “will have an impact on South Korea’s territory or population”, the agency said.

U.S. President Donald Trump has repeatedly said all options are on the table in dealing with North Korea and on Thursday said he would prefer not to use military action, but if he did, it would be a “very sad day” for North Korea.

“Military action would certainly be an option. Is it inevitable? Nothing is inevitable,” Trump told reporters. “If we do use it on North Korea, it will be a very sad day for North Korea.”

Even as Trump has insisted that now is not the time to talk, senior members of his administration have made clear that the door to a diplomatic solution is open, especially given the U.S. assessment that any pre-emptive strike would unleash massive North Korean retaliation.

North Korea says it needs its weapons to protect itself from U.S. aggression and regularly threatens to destroy the United States.

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.

US CARRIER ON THE MOVE

The USS Ronald Reagan, a nuclear-powered carrier, left its home port in Japan for a routine autumn patrol of the Western Pacific, a Navy spokeswoman said. That area included waters between Japan and the Korean peninsula, she added, without giving any further details.

The Ronald Reagan was out on routine patrol from May until August, and was sent to the Sea of Japan with the another carrier, the USS Carl Vinson, to take part in drills with Japan’s Self Defence Forces as well as the South Korean military.

North Korea vehemently objects to military exercises on or near the peninsula, and China and Russia have suggested the United States and South Korea halt their exercises to lower tension.

While Trump talked tough on North Korea, China agreed on Thursday that the United Nations should take more action against it, but it also pushed for dialogue.

The U.N. Security Council is expected to vote on a new set of sanctions soon. Russian Foreign Minister Sergei Lavrov said that it was too early to draw conclusions about the final form of the U.N. resolution, Russia’s Interfax news agency quoted Lavrov as saying at a news conference on Friday.

North Korea offered fresh vitriol against the pending sanctions, specifically targeting U.S. ambassador to the United Nations Nikki Haley, who this week accused North Korean leader Kim of “begging for war”.

“There is nothing more foolish than thinking we, a strong nuclear state, will endure this evil pressure aimed at overthrowing our state,” the North’s official news agency said in a commentary.

“Even if Nikki Haley is blind, she must use her mouth correctly. The United States administration will pay for not being able to control the mouth of their U.N. representative.”

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.

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.

China’s economic influence has been felt by South Korea as well. The two countries have been at loggerheads over South Korea’s decision to deploy a U.S. anti-missile system, the Terminal High Altitude Area Defense, which has a powerful radar that can probe deep into China.

Shares in South Korean automaker Hyundai Motor and key suppliers slid on Friday on worry over its position in China after highly critical Chinese state newspaper comments.

The military section of China’s Global Times newspaper on Thursday referred to THAAD as “a malignant tumor”.

Graphic on Nuclear North Korea: http://tmsnrt.rs/2n0gd92

(Additional reporting by Nobuhiro Kubo in TOKYO, Hyunjoo Jin in SEOUL and Christian Lowe in MOSCOW; Writing by Nick Macfie; Editing by Robert Birsel)

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)