U.S., Japanese leaders agree to enhance sanctions against North Korea: White House

U.S. President Donald Trump (R) and Japan's Prime Minister Shinzo Abe shake hands during a bilateral meeting at the G7 summit in Taormina, Sicily, Italy, May 26, 2017. REUTERS/Jonathan Ernst

TAORMINA, Italy (Reuters) – President Donald Trump and Japanese Prime Minister Shinzo Abe agreed on Friday to expand sanctions against North Korea for its continued development of nuclear weapons and ballistic missiles, the White House said in a statement.

“President Trump and Prime Minister Abe agreed their teams would cooperate to enhance sanctions on North Korea, including by identifying and sanctioning entities that support North Korea’s ballistic missile and nuclear programs,” the White House said after the two men held a one-on-one meeting in Sicily.

“They also agreed to further strengthen the alliance between the United States and Japan, to further each country’s capability to deter and defend against threats from North Korea,” the statement said.

North Korea’s growing nuclear and missile threat is seen as a major security challenge for Trump and Abe both. Trump has vowed to prevent the country from being able to hit the United States with a nuclear missile, a capability experts say Pyongyang could have some time after 2020.

(Reporting by Steve Holland, writing by Steve Scherer; editing by Crispian Balmer)

Exclusive: Kim’s rocket stars – The trio behind North Korea’s missile program

FILE PHOTO : North Korean leader Kim Jong Un inspects the intermediate-range ballistic missile Pukguksong-2's launch test with Ri Pyong Chol (2nd L in black uniform) and Jang Chang Ha (R) in this undated photo released by North Korea's Korean Central News Agency (KCNA) May 22, 2017. REUTERS/KCNA/File Photo

By Ju-min Park and James Pearson

SEOUL (Reuters) – After successful missile launches, North Korean leader Kim Jong Un often exchanges smiles and hugs with the same three men and shares a celebratory smoke with them.

The three, shown with Kim in photographs and TV footage in North Korean media, are of great interest to Western security and intelligence agencies since they are the top people in the secretive country’s rapidly accelerating missile program.

They include Ri Pyong Chol, a former top air force general; Kim Jong Sik, a veteran rocket scientist; and Jang Chang Ha, the head of a weapons development and procurement center.

The photographs and TV footage show that the three are clearly Kim’s favorites. Their behavior with him is sharply at variance with the obsequiousness of other senior aides, most of whom bow and hold their hands over their mouths when speaking to the young leader.

Unlike most other officials, two of them have flown with Kim in his private plane Goshawk-1, named after North Korea’s national bird, state TV has shown.

With their ruling Workers Party, military and scientific credentials, the trio is indispensable to North Korea’s rapidly developing weapons programs – the isolated nation has conducted two nuclear tests and dozens of missile launches since the beginning of last year, all in violation of U.N. resolutions.

“Rather than going through bureaucrats, Kim Jong Un is keeping these technocrats right by his side, so that he can contact them directly and urge them to move fast. It reflects his urgency about missile development,” said An Chan-il, a former North Korean military officer who has defected to the South and runs a think tank in Seoul.

Kim Jong Sik and Jang are not from elite families, unlike many other senior figures in North Korea’s ruling class, North Korean leadership experts say. They said Ri, the former air force commander, has been to one of the better-regarded schools in North Korea, but he and the other two were hand-picked by Kim Jong Un.

“Kim Jong Un is raising a new generation of people separate from his father’s key aides,” said a South Korean official with knowledge of the matter, referring to Kim Jong Il, who died in late 2011 leaving the younger Kim in charge.

The official requested anonymity due to the sensitivity of the matter.

THE ‘BIG POTATO’

The most prominent of the three is Ri, according to leadership experts.

Always shown smiling in photographs, he is now deputy director of the Workers’ Party Munitions Industry Department, which oversees the development of North Korea’s ballistic missile program, according to the South Korean government and U.S. Treasury.

The department was blacklisted by the U.S. Treasury in 2010 and Ri was named by the South Korean government last year for activities related to the country’s weapons programs.

“The big potato in that trio of people is Ri Pyong Chol,” said Michael Madden, an expert on the North Korean leadership. “He’s been around since before Kim Jong Un was even talked about with any seriousness”.

Born in 1948, Ri was partly educated in Russia and promoted when Kim Jong Un started to rise through the ranks in the late 2000s, Madden and the South Korean government official said.

Ri has visited China once and Russia twice. He met China’s defense minister in 2008 as the air force commander and accompanied Kim Jong Il on a visit to a Russian fighter jet factory in 2011, according to state media.

“Ri looks like the party’s guy in the missile program,” said Kim Jin-moo, an expert on North Korea’s elite and former government think tank analyst in Seoul.

THE ROCKET SCIENTIST

The rocket scientist in the trio is Kim Jong Sik.

He started his career as a civilian aeronautics technician, but now wears the uniform of a military general at the Munitions Industry Department, according to experts and the South Korean government.

But it was his role in the North Korea’s first successful launch of a rocket in 2012 which really helped him earn recognition, Madden said.

“When that thing went off and entered into a lower earth orbit, he got credit for that,” said Madden. “The nuclear and missile guys under Kim Jong Un are getting their jobs based on merit”.

Last year, Kim Jong Sik was at the National Aerospace Development Administration or “NADA”, North Korea’s official space agency, where he escorted Kim Jong Un through the mission control room ahead of a successful long-range rocket launch in February.

State TV footage showed him riding to a launch site in Kim Jong Un’s private plane. Upon arrival, he accompanied the young leader down the red carpet and received flowers from other senior officials.

Most other details, including his age, are not known.

THE MYSTERY MAN

Of the three men, the least is known about Jang Chang Ha, president of the Academy of the National Defence Science, previously called the Second Academy of Natural Sciences.

The body is in charge of the secretive country’s research and development of its advanced weapons systems, “including missiles and probably nuclear weapons”, the U.S. Treasury said in 2010 in its decision to blacklist the group.

The organization obtains technology, equipment, and information from overseas for use in weapons programs, the Treasury said. Jang was added to the Treasury blacklist in December 2016.

Under Jang’s leadership, the academy has around 15,000 staff, including some 3,000 missile engineers, according to South Korean media reports, citing unnamed sources.

North Korea’s banned weapons program began in the early 2000s with a similar trio of men close to the leadership who specialized in procurement, science and military affairs.

Of them, logistician Jon Pyong Ho has died. The others – scientist So Sang Guk and military coordinator O Kuk Ryol – are elderly and no longer in the public eye.

Their place, Madden said, has been taken by Kim Jong Un’s hand-picked men.

“These are the men bringing North Korea’s missile program into the 21st Century.” he said.

(Additional reporting by Yeganeh Torbati in WASHINGTON; Editing by Soyoung Kim and Raju Gopalakrishnan)

Trump calls North Korea leader ‘madman’ who cannot be let on the loose: transcript

U.S. President Donald Trump arrives at the Leonardo da Vinci-Fiumicino Airport in Rome, Italy, May 23, 2017. REUTERS/Remo Casilli

WASHINGTON (Reuters) – In a call last month with the Philippines’ president, U.S. President Donald Trump described North Korea’s leader Kim Jong Un as a “madman with nuclear weapons” who could not be let on the loose, according to a leaked Philippine transcript of their call.

Trump told Duterte in the April 29 call that the United States would “take care of North Korea,” and had a lot of firepower in the region, although it did not want to use it, according to a transcript of their conversation published by the Washington Post and the investigative news site The Intercept.

The document included a “confidential” cover sheet from the Americas division of the Philippine Department of Foreign Affairs.

A senior U.S. official said the Trump administration did not dispute the accuracy of the transcript and declined to comment further.

Trump requested Duterte’s help in impressing on China, North Korea’s neighbor and only major ally, the need for it to help rein in Kim, the transcript showed.

“We can’t let a madman with nuclear weapons let on the loose like that,” Trump said. “We have a lot of firepower, more than he has, times 20, but we don’t want to use it.”

The U.S. president told Duterte that Washington had sent two nuclear submarines to waters off the Korean peninsula, comments likely to raise further questions about his handling of sensitive information after U.S. officials said Trump discussed intelligence about Islamic State with Russian officials this month.

“We have two submarines – the best in the world. We have two nuclear submarines, not that we want to use them at all,” Trump said.

The Philippines foreign ministry said earlier in a statement that it had no comment on news reports about the leaked transcript.

But it said that under Philippine law there was “criminal and civil liability attached to the hacking, unauthorized disclosure and use of illegally or inadvertently obtained confidential government documents.”

The ministry said it valued the need for transparency, but the release of some information could affect national security and regional stability. “As such, we appeal to the sense of responsibility and patriotism of all concerned,” it added.

North Korea has vowed to develop a nuclear-tipped missile that can strike the U.S. mainland, presenting Trump with perhaps his biggest foreign policy challenge.

It has conducted dozens of missile launches and two nuclear bomb tests since the start of last year.

Trump has said “a major, major conflict” with North Korea is possible and that all options are on the table, but his administration says it wants to resolve the crisis diplomatically with the aid of tougher sanctions.

On May 1, just after the call with Duterte, Trump said he would be “honored” to meet Kim Jong Un, under the right conditions.

According to the transcript, Trump said he hoped China would act to solve the North Korea problem.

“They really have the means because a great degree of their stuff comes through China,” Trump said. “They (Beijing) are doing certain things, like not accepting calls. But if China doesn’t do it, we will do it,” Trump said, having asked Duterte if he thought China had influence over Kim.

Trump said Kim had the “powder” – an apparent reference to North Korea’s nuclear capability – “but he doesn’t have the delivery system.”

“All his rockets are crashing. That’s the good news. But eventually when he gets that delivery system,” Trump said without finishing his sentence.

While North Korea missile tests have frequently failed, Trump and Duterte spoke before an apparently successful test of a long-range missile this month.

Western experts say that test appeared to have advanced North Korea’s aim of developing a missile capable of reaching the U.S. mainland, although the capability was probably still several years away.

The director of the U.S. Defense Intelligence Agency, General Vincent Stewart, said on Tuesday that if left unchecked, North Korea was on an “inevitable” path to obtaining a nuclear-armed missile capable of striking the United States.

In a show of force, the United States has sent the nuclear-powered aircraft carrier Carl Vinson to waters off the Korean peninsula, where it joined the Michigan, a nuclear submarine that docked in South Korea in April.

(Reporting by David Brunnstrom, Matt Spetalnick in WASHINGTON and Karen Lema in MANILA; editing by Nick Macfie and Jonathan Oatis)

Trump tells Duterte of two U.S. nuclear subs in Korean waters: NYT

FILE PHOTO: The Ohio-class guided-missile submarine USS Michigan arrives for a regularly scheduled port visit while conducting routine patrols throughout the Western Pacific in Busan, South Korea, April 24, 2017. Jermaine Ralliford/Courtesy U.S. Navy/Handout via REUTERS

MANILA (Reuters) – U.S. President Donald Trump told his Philippine counterpart that Washington has sent two nuclear submarines to waters off the Korean peninsula, the New York Times said, comments likely to raise questions about his handling of sensitive information.

Trump has said “a major, major conflict” with North Korea is possible because of its nuclear and missile programs and that all options are on the table but that he wants to resolve the crisis diplomatically.

North Korea has vowed to develop a missile mounted with a nuclear warhead that can strike the mainland United States, saying the program is necessary to counter U.S. aggression.

Trump told Philippine President Rodrigo Duterte Washington had “a lot of firepower over there”, according to the New York Times, which quoted a transcript of an April 29 call between the two.

“We have two submarines — the best in the world. We have two nuclear submarines, not that we want to use them at all,” the newspaper quoted Trump as telling Duterte, based on the transcript.

The report was based on a Philippine transcript of the call that was circulated on Tuesday under a “confidential” cover sheet by the Americas division of the Philippine Department of Foreign Affairs.

In a show of force, the United States has sent the nuclear-powered USS Carl Vinson aircraft carrier to waters off the Korean peninsula, where it joined the USS Michigan, a nuclear submarine that docked in South Korea in late April.

According to the Times, a senior Trump administration official in Washington, who was not authorized to publicly discuss the call and insisted on anonymity, confirmed the transcript was an accurate representation of the call between the two leaders.

U.S. officials, speaking on condition of anonymity, have said Trump discussed intelligence about Islamic State with Russian Foreign Minister Sergei Lavrov and Russian Ambassador Sergei Kislyak at talks in the Oval Office this month, raising questions about Trump’s handling of secrets.

Trump also praised Duterte for doing an “unbelievable job on the drug problem”, the New York Times reported, a subject that has drawn much criticism in the West.

Almost 9,000 people, many small-time users and dealers, have been killed in the Philippines since Duterte took office on June 30. Police say about one-third of the victims were shot by officers in self-defense during legitimate operations.

(Reporting by Karen Lema; Editing by Nick Macfie)

North Korea, if left unchecked, on ‘inevitable’ path to nuclear ICBM: U.S.

U.S. Director of National Intelligence Dan Coats (L) and Director of the Defense Intelligence Agency Lieutenant General Vincent Stewart testify before the Senate Armed Services Committee on worldwide threats, on Capitol Hill in Washington, U.S., May 23, 2017. REUTERS/Yuri Gripas

By Phil Stewart and Idrees Ali

WASHINGTON (Reuters) – North Korea, if left unchecked, is on an “inevitable” path to obtaining a nuclear-armed missile capable of striking the United States, Defense Intelligence Agency Director Lieutenant General Vincent Stewart told a Senate hearing on Tuesday.

The remarks are the latest indication of mounting U.S. concern about Pyongyang’s advancing missile and nuclear weapons programs, which the North says are needed for self-defense.

U.S. lawmakers pressed Stewart and the Director of National Intelligence Dan Coats to estimate how far away North Korea was from obtaining an intercontinental ballistic missile(ICBM) that could reach the United States.

They repeatedly declined to offer an estimate, saying that doing so would reveal U.S. knowledge about North Korea’s capabilities, but Stewart warned the panel the risk was growing.

“If left on its current trajectory the regime will ultimately succeed in fielding a nuclear-armed missile capable of threatening the United States homeland,” Stewart said.

“While nearly impossible to predict when this capability will be operational, the North Korean regime is committed and is on a pathway where this capability is inevitable.”

The U.N. Security Council is due to meet on Tuesday behind closed doors to discuss Sunday’s test of a solid-fuel Pukguksong-2 missile, which defies Security Council resolutions and sanctions. The meeting was called at the request of the United States, Japan and South Korea.

INTELLIGENCE GAPS

John Schilling, a missile expert contributing to Washington’s 38 North think tank, estimated it would take until at least 2020 for North Korea to be able to develop an ICBM capable of reaching the U.S. mainland and until 2025 for one powered by solid fuel.

But Coats acknowledged gaps in U.S. intelligence about North Korea and the thinking of its leader Kim Jong Un.

He cited technological factors complicating U.S. intelligence gathering, including gaps in U.S. intelligence, surveillance and reconnaissance (ISR), which rely on assets like spy satellites and drone aircraft.

“We do not have constant, consistent ISR capabilities and so there are gaps, and the North Koreans know about these,” Coats said.

Washington has been trying to persuade China to agree to new sanctions on North Korea, which has conducted dozens of missile firings and tested two nuclear bombs since the start of last year.

New data on Tuesday showed China raised its imports of iron ore from North Korea in April to the highest since August 2014 but bought no coal for a second month after Beijing halted coal shipments from its increasingly isolated neighbor.

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.

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

(Reporting by Phil Stewart and Idrees Ali; Additional reporting by David Brunnstrom; Editing by James Dalgleish)

Symantec says ‘highly likely’ North Korea group behind ransomware attacks

A screenshot shows a WannaCry ransomware demand, provided by cyber security firm Symantec, in Mountain View, California, U.S. May 15, 2017. Courtesy of Symantec/Handout via REUTERS

By Joseph Menn

SAN FRANCISCO (Reuters) – Cyber security firm Symantec Corp <SYMC.O> said on Monday it was “highly likely” a hacking group affiliated with North Korea was behind the WannaCry cyber attack this month that infected more than 300,000 computers worldwide and disrupted hospitals, banks and schools across the globe.

Symantec researchers said they had found multiple instances of code that had been used both in the North Korea-linked group’s previous activity and in early versions of WannaCry.

In addition, the same Internet connection was used to install an early version of WannaCry on two computers and to communicate with a tool that destroyed files at Sony Pictures Entertainment. The U.S. government and private companies have accused North Korea in the 2014 Sony attack.

North Korea has routinely denied any such role. On Monday, it called earlier reports that it might have been behind the WannaCry attack “a dirty and despicable smear campaign.”

Lazarus is the name many security companies have given to the hacking group behind the Sony attack and others. By custom, Symantec does not attribute cyber campaigns directly to governments, but its researchers did not dispute the common belief that Lazarus works for North Korea.

In a blog post, Symantec listed numerous links between Lazarus and software the group had left behind after launching an earlier, less virulent, version of the malware in February. One was a variant of software used to wipe disks during the Sony Pictures attack, while another tool used the same internet addresses as two other pieces of malware linked to Lazarus.

At the same time, flaws in the WannaCry code, its wide spread, and its demands for payment in the electronic bitcoin before files are decrypted suggest that the hackers were not working for North Korean government objectives in this case, said Vikram Thakur, Symantec’s security response technical director.

“Our confidence is very high that this is the work of people associated with the Lazarus Group, because they had to have source code access,” Thakur said in an interview.

But he added: “We don’t think that this is an operation run by a nation-state.”

With WannaCry, Thakur said, Lazarus Group members could have been moonlighting to make extra money, or they could have left government service, or they could have been contractors without direct obligations to serve only the government.

The most effective version of WannaCry spread by using a flaw in Microsoft’s Windows and a program that took advantage of it that had been used by the U.S. National Security Agency, officials said privately.

That program was among a batch leaked or stolen and then dumped online by a group calling itself The Shadow Brokers, who some in U.S. intelligence believe to be affiliated with Russia.

Analysts have been weighing in with various theories on the identity of those behind WannaCry, and some early evidence had pointed to North Korea. The Shadow Brokers endorsed that theory, perhaps to take heat off their own government backers for the disaster.

Cybersecurity company Kaspersky has said it had found several similarities between the WannaCry malware from the earlier attack and those used by Lazarus. But in an interview last week, its Asia research director, Vitaly Kamluk, said it was not conclusive evidence. “It’s unusual,” he said.

Beau Woods, deputy director of the Cyber Statecraft Initiative at the Atlantic Council, said that the Korean language used in some versions of the WannaCry ransom note was not that of a native speaker, making a Lazarus connection unlikely.

But Thakur said that some hackers deliberately obfuscate their language to make tracing them harder. It is also possible that the writer in question was a contractor in another country, he said.

Thakur said a less likely scenario is that Lazarus’ main aim was to create chaos by distributing WannaCry.

If the hackers’ main objective was to earn money on the side, that would suggest an undisciplined hacking operation run by North Korea, one that could be exploited and weakened by the country’s many foes.

“The intelligence community will probably take away from this that there is a possibility of splinters in the Lazarus Group, or members who are interested in filling their own pockets, and that could help,” Thakur said.

Lazarus has also been linked to attacks on banks using their SWIFT messaging network. Last year, hackers stole $81 million from Bangladesh’s central bank. Symantec said malware used in that attack was linked to Lazarus.

(Reporting by Joseph Menn, Dustin Volz, Jeremy Wagstaff and Ju-Min Park; Editing by Chris Reese, Mary Milliken and Raju Gopalakrishnan)

North Korea says missile ready for mass production, U.S. questions progress

The scene of the intermediate-range ballistic missile Pukguksong-2's launch test. KCNA/via REUTERS

By Ju-min Park and Phil Stewart

SEOUL/WASHINGTON (Reuters) – North Korea said on Monday it successfully tested what it called an intermediate-range ballistic missile, which met all technical requirements and could now be mass-produced, although U.S. officials and experts questioned the extent of its progress.

The United States, which has condemned repeated North Korean missile launches, said Sunday’s launch of what North Korea dubbed the Pukguksong-2 was of a “medium-range” missile, and U.S.-based experts doubted the reliability of the relatively new solid-fuel type after so few tests.

U.S. officials, who spoke on condition of anonymity, said the test did not demonstrate a new capability, or one that could threaten the United States directly. But the test was North Korea’s second in a week and South Korea’s new liberal government said it dashed its hopes for peace.

U.S. officials have been far less sanguine about the test of a long-range KN-17, or Hwasong-12, missile just over a week ago, which U.S. officials believe survived re-entry to some degree.

North Korea said that launch tested the capability to carry a “large-size heavy nuclear warhead” and put the U.S. mainland within “sighting range.”

Western experts say the Hwasong-12 test did appear to have advanced North Korea’s aim of developing an intercontinental ballistic missile capable of reaching the U.S. mainland, even if it is still some way off from achieving that capability.

The U.N. Security Council is due to meet on Tuesday behind closed doors to discuss Sunday’s test, which defies Security Council resolutions and sanctions. The meeting was called at the request of the United States, Japan and South Korea.

Washington has been trying to persuade China to agree to new sanctions on North Korea, which has conducted dozens of missile firings and tested two nuclear bombs since the start of last year.

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.

North Korea’s state news agency, KCNA, said the latest missile test was supervised by leader Kim Jong Un and verified the reliability of Pukguksong-2’s solid-fuel engine, stage separation and late-stage guidance for a nuclear warhead. It said data was recorded by a device mounted on the warhead.

‘PRIDE’

“Saying with pride that the missile’s rate of hits is very accurate and Pukguksong-2 is a successful strategic weapon, he (Kim) approved the deployment of this weapon system for action,” KCNA said.

“Now that its tactical and technical data met the requirements of the Party, this type of missile should be rapidly mass-produced in a serial way …, he said.”

KCNA said Kim was able to view the Earth from a camera mounted on the missile. “Supreme leader Kim Jong Un said it feels grand to look at the Earth from the rocket we launched and the entire world looks so beautiful,” KCNA said.

South Korea’s military said the missile flew about 500 km (310 miles), reaching an altitude of 560 km (350 miles).

It said the test would have provided more “meaningful data” for North Korea’s missile program, but further analysis was necessary to determine whether Pyongyang had mastered the technology needed to stop the warhead burning up on re-entering the Earth’s atmosphere.

U.S.-based experts said the Pukguksong-2 would have a maximum range of about 1,500 km (930 miles) and questioned North Korea’s assertion that the reliability of the solid-fuel missile had been proven, given limited testing.

“Entering mass production this early in the development phase is risky, but perhaps a risk North Korea feels comfortable managing,” said Michael Elleman of the International Institute for Strategic Studies.

Jeffrey Lewis, of the California-based Middlebury Institute of International Studies, said North Korea would probably continue to test the missile after deployment, fixing flaws as they emerged.

The use of solid fuel presents advantages for weapons because it is more stable and can be transported easily allowing for a launch at very short notice from mobile launchers.

Developing longer-range solid fuel missiles, however, was highly complicated and would “take time, lots of it,” Elleman said.

John Schilling, a missile expert contributing to Washington’s 38 North think tank, estimated it would take until at least 2020 for North Korea to be able to develop an ICBM capable of reaching the U.S. mainland and until 2025 for one powered by solid fuel.

North Korea’s current missiles already pose a threat to South Korea and Japan and the tens of thousands of U.S. troops based in both countries.

Daniel Russel, Washington’s former top diplomat for Asia, said Pyongyang’s aim appeared to be to convince the United States and the rest of the world of the need to accept North Korea as a nuclear-armed state.

“The intended message to the United States is that your pressure campaign won’t work and we’ll see your sanctions and raise you yet another advance in our ballistic missile program,” Russel, now diplomat in residence at the Asia Society Policy Institute, told Reuters.

On Sunday U.S. Secretary of State Rex Tillerson termed North Korea’s missile testing “disappointing, disturbing” and said economic and diplomatic pressure would continue.

Japan’s chief Cabinet secretary, Yoshihide Suga, said on Monday it was important to cut North Korea’s foreign currency earnings and to block shipments and technology transfers that aid North Korea’s nuclear missile development.

China repeated its call for all parties to exercise restraint and not let tension mount further.

(Additional reporting by Kaori Kaneko in Tokyo, Ben Blanchard in Beijing and David Brunnstrom and Matt Spetalnick in Washington; Editing by Peter Cooney and James Dalgleish)

Exclusive: U.S., Japanese firms collaborating on new missile defense radars – sources

FILE PHOTO: Logos of Mitsubishi Electric Corp are seen at a news conference at the company's headquarters in Tokyo, Japan, May 23, 2016. REUTERS/Toru Hanai/File Photo

By Tim Kelly and Nobuhiro Kubo

TOKYO (Reuters) – Raytheon Co and Lockheed Martin Corp are working with Japanese partners on rival projects to develop new radars that will enhance Japan’s shield against any North Korean missile strike, government and defense industry sources in Tokyo told Reuters.

As nuclear-armed Pyongyang builds ever more advanced missiles with the ability to strike anywhere in Japan, Tokyo is likely to fund a ground version of the ship-based Aegis defense system deployed on warships in the Sea of Japan, other sources had said earlier.

Raytheon is allied with Mitsubishi Electric Corp on the project while Lockheed is working with Fujitsu Ltd. The intent is to extend the range of Japan’s detection and targeting radars multiple times beyond range of models currently deployed at sea, the five government and industry sources said.

“Japan’s government is very interested in acquiring this capability,” said one of the sources with knowledge of the radar plans. The sources asked not to be identified because they were not authorized to speak to the media.

“Japan wants to have Aegis Ashore operational by 2023 at the latest,” said another of the sources.

Lockheed Martin, Raytheon and Mitsubishi Electric declined comment, while Fujitsu did not respond to requests for comment.

A spokesman for Japan’s Ministry of Defense said Tokyo did not currently have any concrete plans to collaborate with the United States on Aegis radars. “It is not our place to discuss the activities of corporations,” the spokesman added.

The proposed Aegis Ashore radars would be variants of models already developed by Raytheon and Lockheed, the sources said. They would include components using gallium nitride, an advanced material fabricated separately by Mitsubishi Electric and Fujitsu that can amplify power far more efficiently than conventional silicon-based semiconductors.

Nuclear-capable North Korea has a fast accelerating missile development program and Japanese officials have been worried that its ballistic missile defenses (BMD) could be overwhelmed by swarm attacks or be circumvented by warheads launched on lofted trajectories.

In the latest snub to demands it end its weapons program, North Korea on Sunday fired what it described as a intermediate-range ballistic missile that flew about 500 km (311 miles), falling into waters off its east coast.

It had tested another missile the previous Sunday. North Korea said that launch tested the capability to carry a “large-size heavy nuclear warhead” and put the U.S. mainland within “sighting range.”

Japan would likely need three Aegis Ashore batteries to cover the whole country, each of which would cost around $700 million without missiles, one of the sources said.

EXPORT

The idea is that such systems could eventually be sold to the U.S. or other militaries, representing a second chance for Japan to break into global arms markets after a failed bid last year to sell Australia a fleet of submarines in what Tokyo had hoped would spur military exports.

Prime Minister Shinzo Abe ended a decades-old ban on arms exports in 2014 to help beef up the nation’s military and lower the unit cost of home-built military equipment but Japan’s long-isolated defense companies have so far had scant success winning business overseas.

“Rather than a fully engineered submarine or other platform, the best way Japan can win export deals is to get Japanese components and technology integrated into U.S. equipment,” another of the sources said.

Japan is expected to make a final decision to acquire a ground-based Aegis system this year. It has also looked at buying THAAD (Terminal High Altitude Area Defense), which would add a third layer of defense between Aegis and Japan’s last line of defense PAC-3 Patriot missiles, to counter the North Korean threat.

Each THAAD battery, which come with missiles already loaded, costs around $1 billion.

Using either THAAD or beefed up Aegis radars could, however, anger China, which is already upset that THAAD batteries recently deployed in South Korea can peer deep beyond its border.

(Editing by Raju Gopalakrishnan)

South Korea fires at suspected drone at border with North amid missile crisis

Ballistic rocket is seen launching during a drill by the Hwasong artillery units of the KPA Strategic Force, July 2016. KCNA/via REUTERS

By Ju-min Park and Christine Kim

SEOUL (Reuters) – South Korea’s military fired warning shots at a suspected drone from North Korea on Tuesday amid tension over Pyongyang’s latest missile test which drew international condemnation and a warning from China.

The identity of the object remained unclear, the military said, but Yonhap news agency said it was possibly a drone, more than 90 shots were fired in return and it disappeared from radar screens.

The incursion came with tension already high on the Korean peninsula after the North’s test-launch of a ballistic missile test on Sunday which Pyongyang said proved advances in its pursuit of building a nuclear-tipped weapon that can hit U.S. targets.

The United States has been trying to persuade China, North Korea’s lone major ally, to do more to rein in North Korea, which has conducted dozens of missile launches and tested two nuclear bombs since the start of last year, in defiance of U.N. Security Council sanctions and resolutions.

The North has made no secret of its plans to develop a missile capable of striking the United States and has ignored calls to halt its weapons programs, even from China. It says the program is necessary to counter U.S. aggression.

“We urge North Korea to not do anything to again violate U.N. Security Council resolutions,” Chinese Foreign Minister Wang Yi said in a statement posted on the Foreign Ministry’s website on Tuesday.

“At the same time, we hope all parties can maintain restraint, not be influenced by every single incident, …persist in carrying out Security Council resolutions on North Korea and persevere with the resolution of the issue through peaceful means, dialogue and consultation.”

Wang was responding to reporters’ questions on Monday while in Ivory Coast, according to the statement.

The North’s official KCNA news agency, citing the spokesman for the foreign ministry, said the country had “substantially displayed” the capabilities for mounting a nuclear attack on Hawaii and Alaska and had built full capabilities for attacking the U.S. mainland.

U.S. and South Korean officials and experts believe the North is several years away from having such a capability.

North Korea said on Monday that Sunday’s launch met all technical requirements that could allow mass-production of the missile, which it calls the Pukguksong-2.

The test was North Korea’s second in a week and South Korea’s new liberal government said it dashed its hopes for peace on the peninsula.

The U.N. Security Council condemned the launch and again expressed its concern over the North’s behavior. The Security Council is due to meet behind closed doors later on Tuesday.

North Korea’s recent missile tests were a legitimate act of self-defense by a “fully-fledged nuclear power”, North Korean diplomat Ju Yong Chol told the U.N. Conference on Disarmament in Geneva on Tuesday.

“It is the United States’ hostile policy and its aggressive joint military drills, nuclear threats and military build-up around the Korean peninsula that really aggravates the situation on the Korean peninsula and the region and which compels the DPRK to also up its nuclear deterrence,” he said.

DPRK are the initials for the North’s official name, the Democratic People’s Republic of Korea. Ju was the only speaker at the forum who did not begin his remarks by offering condolences to Britain for the victims of Monday night’s bomb attack at a concert in Manchester.

The South Korean military did not say if the unidentified object was hit by the warning shots on Tuesday, but it disappeared from military radar.

North Korea has previously sent drones into South Korean airspace, with some crashing. In January 2016, South Korea fired warning shots at a suspected drone which turned back.

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 to counter the North Korean threat.

(Additional reporting by Michael Martina in Beijing and Tom Miles in Geneva; Editing by Nick Macfie and Jack Kim)