Tag Archives: North Korea

Between reckless ally and old rival, China in a bind over North Korea

A general view shows the unfinished New Yalu River bridge that was designed to connect China's Dandong New Zone, Liaoning province, and North Korea's Sinuiju.

By Benjamin Kang Lim and Michelle Nichols

BEIJING/UNITED NATIONS (Reuters) – China is in a bind over what to do about North Korea’s stepped-up nuclear and missile tests, even though it is annoyed with its ally and has started talks with other U.N. Security Council members on a new sanctions resolution against Pyongyang.

China shares a long land border with North Korea and is seen as the only country with real power to bring about change in the isolated and belligerent nation. However, Beijing fears strengthening sanctions could lead to collapse in North Korea, and it also believes the United States and its ally South Korea share responsibility for growing tensions in the region.

China is in a difficult spot, a source close to the Chinese leadership told Reuters when asked if Beijing’s attitude to North Korea had changed after its fifth nuclear test last week.

“On the one hand, China is resolutely opposed to North Korea developing nuclear weapons for fear of triggering a nuclear arms race in the region,” the source said, referring to Japan and South Korea following in Pyongyang’s footsteps.

“On the other hand, North Korea is a big headache but regime change is not an option,” the source added. “Collapse of the regime would lead to chaos in (China’s) northeast” bordering North Korea, the source said, requesting anonymity.

The prospect of a unified Korea under Seoul’s leadership and the possibility of U.S. troops on China’s borders has long been a nightmare for Beijing.

A collapse in North Korea, sending a flood of refugees across the relatively porous border into China’s rustbelt northeastern provinces, would also be deeply destabilizing to Beijing’s rule as well as a huge economic cost.

Those concerns have been around for years, but now Beijing is also deeply angered by a U.S. decision to deploy an advanced anti-missile system in South Korea, the Terminal High Altitude Area Defense (THAAD) system. It has said its own security has been compromised and that North Korea’s recent belligerence is due to this deployment.

Publicly, China has not linked the THAAD deployment with whether it will support sanctions on North Korea. It condemned the latest missile and nuclear tests but said sanctions alone could not resolve the issue and has called for a resumption of talks with Pyongyang.

Beijing has also said it will work within the United Nations to formulate a necessary response to its fifth nuclear test.

“We’re in negotiations on a U.N. Security Council resolution,” Samantha Power, the U.S. ambassador to the United Nations, said on Thursday.

Diplomats said the talks were at an early stage and negotiations were likely to be long and tough.

IRRITATION AND CONSENSUS

One senior U.N. diplomat said Beijing made displeasure with Pyongyang clear at an earlier Security Council meeting called after North Korea tested three medium range missiles at an embarrassing time – when U.S. President Barack Obama and other world leaders were gathered for the G20 summit in the eastern Chinese city of Hangzhou this month.

“The tone of the whole discussion was much more consensual, it didn’t feel like there was two camps fighting arguing with each other,” said the diplomat. “Of course there continue to be different views about sanctions.”

The United States has called on Beijing to use its influence to get North Korea to give up its nuclear ambitions, and to close sanctions “loopholes”, since the existing ones had done little to prevent Pyongyang from pursuing its nuclear and missile programs.

Shen Wenhui, a researcher at the Chinese Academy of Social Sciences, told influential state-run newspaper the Global Times last week that crippling sanctions would cause a “humanitarian disaster” in North Korea.

“In putting sanctions on North Korea, the international community must reduce the effect on ordinary people to the greatest possible extent,” Shen wrote.

China’s concerns also include the larger issue of what Beijing sees as Washington’s attempts to surround it under Obama’s strategic “rebalance” towards Asia. Besides THAAD, the dispute in the South China Sea, cybersecurity and human rights have marred ties between the world’s two biggest economies.

Chinese officials also say that the West over-estimates its influence with North Korea.

“I think any idea to ask North Korea to abandon nuclear weapons would fail, and any idea to ask South Korea to abandon THAAD would fail,” said Shen Dingli, a professor at Shanghai’s elite Fudan University and director of the school’s Program on Arms Control and Regional Security.

North Korea is useful for China, Shen added. “China needs North Korea to counter the United States.”

In Seoul, some are already accepting that China will not do much more to punish North Korea.

“The sanctions that North Korea will not be able to endure will be all blocked by China even without being asked by the North,” Chun Yung-woo, a former South Korean national security adviser, told Reuters. “So the North is hiding behind that and comfortably pursuing the nuclear programmer’s.”

(Additional reporting by Michael Martina in Beijing, James Pearson, Jack Kim and Ju-min Park in Seoul and David Brunnstrom in Washington; Writing by Ben Blanchard; Editing by Raju Gopalakrishnan)

North Korea says ready for ‘another attack’ against U.S. ‘provocations’

A rally celebrating the success of a recent nuclear test is held in Kim Il Sung square in this undated photo released by North Korea's Korean Central News Agency

CARACAS, Venezuela (Reuters) – North Korea’s Foreign Minister said on Thursday the country was ready to launch another attack against the “provocations” of the United States, whose bombers this week flew over South Korea in a show of solidarity with its ally after Pyongyang’s latest nuclear test.

North Korea set off its most powerful nuclear blast to date this month, saying it had mastered the ability to mount a warhead on a ballistic missile and ratcheting up a threat that its rivals and the United Nations have been powerless to contain.

Two U.S. B-1 bombers flew over South Korea on Tuesday, drawing condemnation from the North.

“The people of Korea are ready to stage another attack against the provocations of the United States,” said Foreign Minister Ri Yong Ho during a speech at a meeting of the Non-Aligned Movement countries in Venezuela that was translated into Spanish.

Seoul has also said North Korea was ready to conduct an additional nuclear test at any time.

North Korea’s latest test has launched a fresh push by the United States and South Korea for more sanctions. Pressure for further sanctions was “laughable”, North Korea has said, vowing to continue to strengthen its nuclear power.

(Reporting by Diego Ore; Editing by James Dalgleish)

Top diplomats from U.S., Japan, South Korea to meet on North Korea

Ryoo Yong-gyu, Earthquake and Volcano Monitoring Division Director, points at where seismic waves observed in South Korea came from, during a media briefing at Korea Meteorological Administration in Seoul

By Tony Munroe and Ben Blanchard

SEOUL/BEIJING, Sept 14 (Reuters) – U.S. Secretary of State John Kerry will meet with his Japanese and South Korean counterparts in New York on Sunday to discuss responses to North Korea’s latest nuclear test, South Korea’s foreign ministry said on Wednesday.

The three countries are pushing for tough new U.N. Security Council sanctions on North Korea after the isolated country on Friday conducted its fifth and largest nuclear test.

The blast was in defiance of U.N. sanctions that were tightened in March.

China, the North’s chief ally, backed the March resolution but is more resistant to harsh new sanctions this time after the United States and South Korea decided to deploy a sophisticated anti-missile system in the South, which China adamantly opposes.

South Korea said Foreign Minister Yun Byung-se and his counterparts Kerry and Japanese Foreign Minister Fumio Kishida will meet during the annual U.N. General Assembly to discuss putting further pressure on North Korea.

The United States wants China to do more, with U.S. Defense Secretary Ash Carter last week singling out the role he said China should play in curbing its neighbor.

TESTING TIMES

North Korea has been testing nuclear weapons and ballistic missiles at an unprecedented rate this year under young leader Kim Jong Un.

On Tuesday, Chinese Foreign Minister Wang Yi spoke with South Korea’s Yun by phone, expressing Beijing’s opposition to the North’s latest nuclear test but also reiterating opposition to the planned deployment of the Terminal High Altitude Area Defense (THADD) anti-missile system in the South, China’s foreign ministry said.

China is North Korea’s most important diplomatic and trade partner and refuses to cut the country off completely, fearing it could collapse.

Beijing’s official People’s Daily newspaper on Wednesday called the United States a troublemaker and said it has no right to lecture China about taking responsibility for reining in North Korea as tensions on the peninsula are a direct result of U.S. actions.

In a commentary, the ruling Communist Party’s official paper said the United States was pretending it had nothing to do with the North Korea issue and was putting the blame on others.

“People have reason to doubt whether Washington is willing to make the effort to push the North Korea issue in the direction of a resolution,” the paper said.

China and Russia have pushed for a resumption of six party talks on denuclearization in North Korea. The talks, which also involve Japan, South Korea and the United States, have been on hold since 2008.

Washington has said it is willing to negotiate with the North if it the country commits to denuclearization, which Pyongyang has refused to do.

Japanese Prime Minister Shinzo Abe will seek Cuba’s help in responding to North Korea’s nuclear and missile programs during a rare visit to Havana next week, a spokesman said.

Top diplomats from U.S., Japan, South Korea to meet on North Korea

World leaders from US, Japan, and South Korea

By Tony Munroe and Ben Blanchard

SEOUL/BEIJING (Reuters) – U.S. Secretary of State John Kerry will meet with his Japanese and South Korean counterparts in New York on Sunday to discuss responses to North Korea’s latest nuclear test, South Korea’s foreign ministry said on Wednesday.

The three countries are pushing for tough new U.N. Security Council sanctions on North Korea after the isolated country on Friday conducted its fifth and largest nuclear test.

The blast was in defiance of U.N. sanctions that were tightened in March.

China, the North’s chief ally, backed the March resolution but is more resistant to harsh new sanctions this time after the United States and South Korea decided to deploy a sophisticated anti-missile system in the South, which China adamantly opposes.

South Korea said Foreign Minister Yun Byung-se and his counterparts Kerry and Japanese Foreign Minister Fumio Kishida will meet during the annual U.N. General Assembly to discuss putting further pressure on North Korea.

The United States wants China to do more, with U.S. Defence Secretary Ash Carter last week singling out the role he said China should play in curbing its neighbor.

TESTING TIMES

North Korea has been testing nuclear weapons and ballistic missiles at an unprecedented rate this year under young leader Kim Jong Un.

On Tuesday, Chinese Foreign Minister Wang Yi spoke with South Korea’s Yun by phone, expressing Beijing’s opposition to the North’s latest nuclear test but also reiterating opposition to the planned deployment of the Terminal High Altitude Area Defense (THADD) anti-missile system in the South, China’s foreign ministry said.

China is North Korea’s most important diplomatic and trade partner and refuses to cut the country off completely, fearing it could collapse.

Beijing’s official People’s Daily newspaper on Wednesday called the United States a troublemaker and said it has no right to lecture China about taking responsibility for reining in North Korea as tensions on the peninsula are a direct result of U.S. actions.

In a commentary, the ruling Communist Party’s official paper said the United States was pretending it had nothing to do with the North Korea issue and was putting the blame on others.

“People have reason to doubt whether Washington is willing to make the effort to push the North Korea issue in the direction of a resolution,” the paper said.

China and Russia have pushed for a resumption of six party talks on denuclearization in North Korea. The talks, which also involve Japan, South Korea and the United States, have been on hold since 2008.

Washington has said it is willing to negotiate with the North if it the country commits to denuclearization, which Pyongyang has refused to do.

Japanese Prime Minister Shinzo Abe will seek Cuba’s help in responding to North Korea’s nuclear and missile programs during a rare visit to Havana next week, a spokesman said.

(Editing by Lincoln Feast)

North Korea ramps up uranium enrichment, enough for six nuclear bombs a year: experts

Kim Jong Un of North Korea

By Jack Kim and James Pearson

SEOUL (Reuters) – North Korea will have enough material for about 20 nuclear bombs by the end of this year, with ramped-up uranium enrichment facilities and an existing stockpile of plutonium, according to new assessments by weapons experts.

The North has evaded a decade of U.N. sanctions to develop the uranium enrichment process, enabling it to run an effectively self-sufficient nuclear program that is capable of producing around six nuclear bombs a year, they said.

The true nuclear capability of the isolated and secretive state is impossible to verify. But after Pyongyang conducted its fifth and most powerful nuclear test last week and, according to South Korea, was preparing for another, it appears to have no shortage of material to test with.

North Korea has an abundance of uranium reserves and has been working covertly for well over a decade on a project to enrich the material to weapons-grade level, the experts say.

That project, believed to have been expanded significantly, is likely the source of up to 150 kilograms (330 pounds) of highly enriched uranium a year, said Siegfried Hecker, a leading expert on the North’s nuclear program.

That quantity is enough for roughly six nuclear bombs, Hecker, who toured the North’s main Yongbyon nuclear facility in 2010, wrote in a report on the 38 North website of Johns Hopkins University in Washington published on Monday.

Added to an estimated 32- to 54 kilogram plutonium stockpile, the North will have sufficient fissile material for about 20 bombs by the end of 2016, Hecker said.

North Korea said its latest test proved it was capable of mounting a nuclear warhead on a medium-range ballistic missile, but its claims to be able to miniaturize a nuclear device have never been independently verified. [nL3N1BL1ND]

Assessments of the North’s plutonium stockpile are generally consistent and believed to be accurate because experts and governments can estimate plutonium production levels from telltale signs of reactor operation in satellite imagery.

South Korean Defence Minister Han Min-koo this year estimated the North’s plutonium stockpile at about 40 kilograms.

But Hecker, a former director of the U.S. Los Alamos National Laboratory, where nuclear weapons have been designed, has called North Korea’s uranium enrichment program “their new nuclear wildcard,” because Western experts do not know how advanced it is.

PAKISTAN CONNECTION

Jeffrey Lewis of the California-based Middlebury Institute of International Studies said North Korea had an unconstrained source of fissile material, both plutonium from the Yongbyon reactor and highly-enriched uranium from at least one and probably two sites.

“The primary constraint on its program is gone,” Lewis said. Weapons-grade plutonium has to be extracted from spent fuel taken out of reactors and then reprocessed, and therefore would be limited in quantity. A uranium enrichment program greatly boosts production of material for weapons.

The known history of the uranium enrichment project dates to 2003, when the North was confronted by the United States with evidence of a clandestine program to build a facility to enrich uranium with the help of Pakistan.

Former Pakistani President Pervez Musharraf said in his memoirs that A.Q. Khan, the father of that country’s nuclear program, transferred two dozen centrifuges to the North and some technical expertise around 1999.

“It was also clear that the suspected Pakistani connection had taken place, as the centrifuge design resembled Pakistan’s P-2 centrifuge,” Hecker said in a report in May.

Hecker reported being shown around a two-story building in the Yongbyon complex in November 2010 that a North Korean engineer said contained 2,000 centrifuges and a control room Hecker called “astonishingly modern.”

By 2009, the North had likely acquired the technology to be able to expand the uranium project indigenously, Joshua Pollack, editor of the U.S.-based Nonproliferation Review, has said.

North Korea has not explicitly admitted to operating the centrifuges to produce weapons-enriched uranium, instead claiming they were intended to generate fuel for a light water reactor it was going to build.

Despite sanctions, by now North Korea is probably largely self-sufficient in operating its nuclear program, although it may still struggle to produce some material and items, Lewis said.

“While we saw this work in Iran, over time countries can adjust to sanctions,” he said.

(Editing by Raju Gopalakrishnan)

U.S. Bombers fly over South Korea in show of force after nuclear test

A U.S. Air Force B-1B bomber flies over Osan Air Base in Pyeongtaek

By James Pearson and Ju-min Park

SEOUL (Reuters) – Two U.S. B-1 bombers flew over South Korea on Tuesday in a show of force and solidarity with its ally after North Korea’s nuclear test last week, while a U.S. envoy called for a swift and strong response to Pyongyang from the United Nations.

Speaking in the South Korean capital on Tuesday, Sung Kim, the U.S. envoy on North Korea, added that the United States remained open to meaningful dialogue with Pyongyang on ending its pursuit of nuclear weapons.

“Our intention is to secure the strongest possible (U.N. Security Council) resolution that includes new sanctions as quickly as possible,” Kim told a news briefing after meeting his South Korean counterpart.

He said the United States would work with China, North Korea’s major diplomatic ally, to close loopholes in existing resolutions, which were tightened with Beijing’s backing in March.

“China has been very clear that they understand the need for a new U.N. security council resolution in response to the latest North Korean nuclear test,” Kim said.

However, China and Russia, which strongly oppose a recent decision by the United States and South Korea to deploy an advanced anti-missile system in the South to counter the North’s missile threat, have shown reluctance to back further sanctions.

“Both sides think that North Korea’s nuclear test is not beneficial to peace and stability on the Korean peninsula,” China’s official People’s Daily newspaper said on Tuesday following a high-level China-Russia security meeting in Beijing.

“At present, we must work hard to prevent the situation on the peninsula continuing to escalate, and put the issue of the nuclearization of the peninsula back on the track of dialogue and consultation,” it said.

FORCE AND SOLIDARITY

The pair of U.S. supersonic B-1B Lancer strategic bombers took off from their base in Guam and flew with two Japan Air Self Defense Force aircraft before a “hand-off” to South Korean fighters, according to the U.S. military.

The B-1Bs were then escorted by South Korean and U.S. fighter jets in a low-altitude flight over Osan Air Base, which is 77 km (48 miles) from the Demilitarised Zone border with the North and about 40 km (25 miles) from the South’s capital Seoul.

“These flights demonstrate the solidarity between South Korea, the United States, and Japan to defend against North Korea’s provocative and destabilizing actions,” said Admiral Harry Harris, commander of the U.S. Pacific Command.

North Korea’s official KCNA news agency said public anger was “exploding like a volcano” over Washington’s dispatch of bombers to South Korea.

“Any sanction, provocation and pressure cannot ruin our status as a nuclear state and evil political and military provocations will only result in a flood of reckless nuclear attacks that will bring a final destruction,” KCNA said.

China urged restraint among all parties. “If there is a vicious cycle of tensions continuing to rise and mutual provocations, this is not in anyone’s interests,” Chinese foreign ministry spokeswoman Hua Chunying told a daily briefing.

North Korea’s weapons enhancements, including the testing of various types of missiles this year at an unprecedented rate, have alarmed neighbors South Korea and Japan.

A U.S. Air Force U-2 jet flies over Osan Air Base in Pyeongtaek, South Korea, September 13, 2016. REUTERS/Kim Hong-Ji

A U.S. Air Force U-2 jet flies over Osan Air Base in Pyeongtaek, South Korea, September 13, 2016. REUTERS/Kim Hong-Ji

South Korean President Park Geun-hye maintained her tough stance against the North.

The two Koreas remain technically at war after their 1950-53 conflict ended in a truce, not a peace treaty.

“I want our government and military to stay fully ready to retaliate, determined to end North Korea’s regime once North Korea fires even one missile nuclear-armed missile toward our territory,” Park told a cabinet meeting.

A group of lawmakers in South Korea said on Monday the country should have a nuclear force of its own, either by acquiring weapons or asking the United States to redeploy tactical nuclear weapons withdrawn under a 1991 pact for denuclearization of the Korean peninsula.

Kim, the U.S. envoy, said there was no need to reintroduce nuclear weapons in South Korea.

North Korea has refused the U.S. demand that it accept denuclearization as a condition for holding dialogue.

“It’s a question of North Korean intentions and commitment. If North Korea is ready to talk to us sincerely, I think we can work with that within the six party process,” Kim said.

The six party talks aimed at ending the North’s nuclear program involve the United States, Russia, Japan, South Korea, China, and North Korea but have been stalled since 2008.

South Korea said on Monday the North is ready to conduct an additional nuclear test at any time after setting off its most powerful blast to date on Friday.

(Additional reporting by Kim Do-gyun in Osan, Ben Blanchard in Beijing and Linda Sieg in Tokyo; Writing by Jack Kim and Tony Munroe; Editing by Lincoln Feast and Raju Gopalakrishnan)

North Korea ready for another nuclear test any time: South Korea

Kim Jon Un of North Korea

By Ju-min Park and Jack Kim

SEOUL (Reuters) – North Korea is ready to conduct an additional nuclear test at any time, South Korea’s Defense Ministry said on Monday, three days after the reclusive North’s fifth test drew widespread condemnation.

Pyongyang set off its most powerful nuclear blast to date on Friday, saying it had mastered the ability to mount a warhead on a ballistic missile and ratcheting up a threat that its rivals and the United Nations have been powerless to contain.

“Assessment by South Korean and U.S. intelligence is that the North is always ready for an additional nuclear test in the Punggye-ri area,” the site of the North’s five nuclear explosions, South Korean Defense Ministry spokesman Moon Sang-gyun told a news briefing.

“North Korea has a tunnel where it can conduct an additional nuclear test,” Moon said.

South Korea is pushing for more sanctions against Pyongyang to close what it says were loopholes left in the last United Nations Security Council resolution adopted in March.

Both China and Russia backed sanctions imposed in March following the North’s January nuclear test, but their apparent ambivalence about fresh sanctions cast doubt on the Security Council’s ability to quickly form a consensus.

“We expect that China, as one of the Security Council member states, should take this issue seriously and play a very constructive role to come up with a very effective and strong sanctions resolution,” a South Korean foreign ministry official said.

NEW SANCTIONS?

The Security Council denounced the latest test on Friday and said it would begin work immediately on a resolution. The United States, Britain and France – three of the five veto-wielding permanent members – pushed for the 15-member body to impose new sanctions.

However, China’s foreign ministry spokeswoman Hua Chunying said sanctions alone could not solve the North Korean nuclear issue. The crux of the issue lay with the United States, not China, she added.

On Saturday, Russian Foreign Minister Sergei Lavrov said a “creative” response was needed.

Speaking to Lavrov on Monday, Chinese Foreign Minister Wang Yi said China “strongly urged North Korea and other relevant parties to remain calm and exercise restraint, and not take any new steps to intensify tensions”, China’s Foreign Ministry said.

Russia’s Foreign Ministry said Lavrov and Wang condemned North Korea’s latest nuclear test in a phone conversation on Monday. Russia and China are the remaining veto powers on the Security Council.

As tensions rose on the Korean peninsula in the week of last week’s test, South Korea’s President Park Geun-hye said that North Korea’s nuclear weapons and missiles posed an “imminent threat.

“As North Korea has publicly said nuclear warheads have been standardized and customized to mount on ballistic missiles, we should keep in mind that North Korea’s nuclear missiles are a realistic, imminent threat targeting us, not a simple threat for negotiations,” Park said in a meeting with major political party leaders.

Pyongyang’s assertions that it is able to miniaturize a nuclear warhead have never been independently verified.

BOMBER FLIGHT DELAYED

North Korean Foreign Minister Ri Yong Ho, formerly the country’s chief nuclear negotiator, arrived in Beijing on Monday and was seen entering the country’s embassy, Japan’s Kyodo news agency reported.

Ri left Pyongyang on Monday to attend a meeting of the Non-Aligned Movement countries in Venezuela and later the U.N. General Assembly, the North’s official KCNA news agency said.

A U.S. special envoy for the isolated state, Sung Kim, will travel to Seoul on Monday. Kim met Japanese officials on Sunday and said the United States may launch unilateral sanctions against North Korea, echoing comments by U.S. President Barack Obama on Friday in the wake of the test.

South Korea’s Yonhap news agency reported that bad weather had delayed the flight of an advanced U.S. B-1B bomber to the Korean peninsula, a show of strength and solidarity with ally Seoul, scheduled for Monday.

The flight from the U.S. base in Guam would now take place on Tuesday, a U.S. Forces in Korea official told Reuters, declining to identify the type of aircraft involved.

A group of 31 South Korean conservative lawmakers said the country should have nuclear weapons, either by acquiring its own arms or asking the Americans to redeploy tactical nuclear weapons that were withdrawn from the South under a 1991 pact for the decentralization of the peninsula.

“We should discuss every plan including an independent nuclear armament program at the level of self-defense to safeguard peace,” Won Yoo-chul, a senior lawmaker for the ruling Saenuri Party, said in a statement.

South Korea’s defense ministry said there was no change in its policy barring nuclear weapons.

(Additional reporting by John Ruwitch in Shanghai and Michael Martina in Beijing; Editing by Lincoln Feast and Alex Richardson)

Wall Street to open lower after North Korea test, Fed comments

Traders working at Stock Market

By Chuck Mikolajczak

NEW YORK (Reuters) – U.S. stocks were poised for a lower open on Friday amid investor caution following a nuclear test by North Korea and comments by a U.S. Federal Reserve official that supported an interest rate hike.

North Korea conducted its fifth and biggest nuclear test on Friday and said it had mastered the ability to mount a warhead on a ballistic missile, drawing condemnation from the United States as well as China, Pyongyang’s main ally.

“The timing of North Korea flexing their nuclear muscles is interesting in that it comes on the heels of the leader of the free world’s trip to Asia,” said Art Hogan, chief market strategist at Wunderlich Securities in New York, referring to President Barack Obama, who arrived in Asia last week to attend a G20 meeting before touring other Asian nations.

“So that is in and of itself kind of insulting but it’s also disturbing if they are making significant traction here, but it’s hard to know.”

Futures extended losses after Boston Fed President Eric Rosengren, a historically dovish policymaker, said the Federal Reserve increasingly faces risks if it waits too much longer so a gradual policy tightening is likely appropriate.

S&P 500 e-minis <ESc1> were down 11.75 points, or 0.54 percent, with 148,435 contracts changing hands. Nasdaq 100 e-minis <NQc1> were down 28.25 points, or 0.59 percent, in volume of 15,946 contracts and Dow e-minis <1YMc1> were down 101 points, or 0.55 percent, with 16,420 contracts changing hands.

At 9:30 EDT (1330 GMT), Federal Reserve Bank of Dallas President Robert Kaplan, a non-voting member, is scheduled to speak.

The Fed will hold a two-day policy meeting on Sept. 20-21. Expectations for a rate hike had climbed in recent weeks after comments from a number of Fed officials, only to be tamped down again in the past several days after a host of disappointing economic reports. The current expectations for a September rate hike stand at 18 percent, according to CME’s FedWatch tool.

U.S. stocks have been subdued for two months, with the benchmark S&P 500 index failing to register a move of more than 1 percent on a closing basis in either direction since July 8. The index is still only 0.4 percent away from its last record high registered on Aug. 15.

Data due on Friday includes July wholesale inventories at 10 a.m. EDT (1400 GMT), which are not expected to have changed from the prior month.

Also due is the weekly rig count from Baker Hughes, which could impact the price of oil after both Brent <LCOc1> and U.S. <CLc1> prices surged more than 4 percent Thursday in the wake of a surprisingly huge drawdown in U.S. crude stocks.

Restoration Hardware <RH.N> shares surged 10.3 percent to $38.94 in premarket trading after the company posted second-quarter earnings that topped Wall Street expectations.

Pipeline company Enterprise Products Partners <EPD.N> late Thursday withdrew its takeover bid for rival Williams Cos Inc <WMB.N>, saying Williams’ lack of engagement left it with “no actionable path forward.”

(Reporting by Chuck Mikolajczak; Editing by Bernadette Baum)

North Korea conducts fifth and largest nuclear test, drawing broad condemnation

South Korean emergency meeting

* Test seen as North’s most powerful yet

* Japan protests, sends jets to monitor for radiation

* China begins emergency radiation testing

* South accuses North of “maniacal recklessness”

* UN Security Council to hold closed-door meeting Friday –
dips

(Adds UN, CTBTO estimate, further condemnations)

By Ju-min Park and Jack Kim

SEOUL, Sept 9 (Reuters) – North Korea conducted its fifth
and biggest nuclear test on Friday and said it had mastered the
ability to mount a warhead on a ballistic missile, ratcheting up
a threat that its rivals and the United Nations have been
powerless to contain.

The blast, on the 68th anniversary of North Korea’s
founding, was more powerful than the bomb dropped on Hiroshima,
according to some estimates, and drew condemnation from the
United States as well as China, Pyongyang’s main ally.

Diplomats said the United Nations Security Council would
discuss the test at a closed-door meeting on Friday, at the
request of the United States, Japan and South Korea.

Under 32-year-old dictator Kim Jong Un, North Korea has
accelerated the development of its nuclear and missile
programmes, despite U.N. sanctions that were tightened in March
and have further isolated the impoverished country.

South Korean President Park Geun-hye, in Laos after a summit
of Asian leaders, said Kim was showing “maniacal recklessness”
in completely ignoring the world’s call to abandon his pursuit
of nuclear weapons.

U.S. President Barack Obama, aboard Air Force One on his way
home from Laos, said the test would be met with “serious
consequences”, and held talks with Park and with Japanese Prime
Minister Shinzo Abe, the White House said.

China said it was resolutely opposed to the test and urged
Pyongyang to stop taking any actions that would worsen the
situation. It said it would lodge a protest with the North
Korean embassy in Beijing.

There were further robust condemnations from Russia, the
European Union, NATO, Germany and Britain.

North Korea, which labels the South and the United States as
its main enemies, said its “scientists and technicians carried
out a nuclear explosion test for the judgment of the power of a
nuclear warhead,” according to its official KCNA news agency.

It said the test proved North Korea was capable of mounting
a nuclear warhead on a medium-range ballistic missile, which it
last tested on Monday when Obama and other world leaders were
gathered in China for a G20 summit.

Pyongyang’s claims of being able to miniaturise a nuclear
warhead have never been independently verified.

Its continued testing in defiance of sanctions presents a
challenge to Obama in the final months of his presidency and
could become a factor in the U.S. presidential election in
November, and a headache to be inherited by whoever wins.

“Sanctions have already been imposed on almost everything
possible, so the policy is at an impasse,” said Tadashi Kimiya,
a University of Tokyo professor specialising in Korean issues.

“In reality, the means by which the United States, South
Korea and Japan can put pressure on North Korea have reached
their limits,” he said.

UNPRECEDENTED RATE

North Korea has been testing different types of missiles at
an unprecedented rate this year, and the capability to mount a
nuclear warhead on a missile is especially worrisome for its
neighbours South Korea and Japan.

“The standardisation of the nuclear warhead will enable the
DPRK to produce at will and as many as it wants a variety of
smaller, lighter and diversified nuclear warheads of higher
strike power,” KCNA said, referring to the country’s formal
name, the Democratic People’s Republic of Korea.

It was not clear whether Pyongyang had notified Beijing or
Moscow of its planned nuclear test. Senior officials from
Pyongyang were in both capitals this week.

Chinese Foreign Ministry spokeswoman Hua Chunying said she
had no information to provide when asked if China had advance
warning of the test, and would not be drawn on whether China
would support tougher sanctions against its neighbour.

Although Beijing has criticised North Korea’s nuclear and
missile tests, it has repeatedly expressed anger since the
United States and South Korea decided in July to deploy the
Terminal High Altitude Area Defense (THAAD) anti-missile system
in the South.

China calls THAAD a threat to its own security and will do
nothing to bring North Korea back to the negotiating table on
its nuclear programme.

Preliminary data collected by the Vienna-based Comprehensive
Nuclear-Test-Ban Treaty Organization (CTBTO), which monitors
nuclear tests around the world, indicates the magnitude – around
5 – of the seismic event detected in North Korea on Friday was
greater than a previous one in January.

Jeffrey Lewis of the California-based Middlebury Institute
of International Studies said the highest estimates of seismic
magnitude suggested this was North Korea’s most powerful nuclear
test so far.

He said the seismic magnitude and surface level indicated a
blast with a 20- to 30-kilotonne yield. Such a yield would make
this test larger than the nuclear bomb dropped by the United
States on the Japanese city of Hiroshima in World War Two.

“That’s the largest DPRK test to date, 20-30kt, at least.
Not a happy day,” Lewis told Reuters.

South Korea’s military put the force of the blast at 10
kilotonnes, which would still be the North’s most powerful
nuclear blast to date.

“The important thing is, that five tests in, they now have a
lot of nuclear test experience. They aren’t a backwards state
any more,” Lewis said.

(Reporting by Jack Kim, Ju-min Park, James Pearson, Se Young
Lee, Nataly Pak, and Yun Hwan Chae in SEOUL; Additional
reporting by Ben Blanchard in BEIJING, Kaori Kaneko and Linda
Sieg in TOKYO, Kirsti Knolle in VIENNA and Eric Beech and
Michelle Nichols in WASHINGTON; Writing by Tony Munroe; Editing
by Raju Gopalakrishnan and Ian Geoghegan)

North Korea missile launches ‘extremely concerning’: France

A North Korean flag flies on a mast at the Permanent Mission of North Korea in Geneva

UNITED NATIONS (Reuters) – Ballistic missile tests carried out by North Korea on Monday are “extremely concerning” and France favors a quick and firm reaction by the U.N. Security Council, France’s U.N. ambassador said on Tuesday.

North Korea fired three ballistic missiles into the sea off its east coast on Monday, the South Korean and U.S. militaries said, as the leaders of the Group of 20 major economies held a summit in China, the North’s main diplomatic ally.

Speaking ahead of a Security Council meeting to discuss North Korea, Ambassador Francois Delattre said the launches were “a clear and unacceptable new violation of the Security Council resolutions” and a threat to regional and international peace and security.

“We very much favor a quick and firm reaction by the Security Council to this new provocation,” he said.

Koro Bessho, Japan’s U.N. ambassador, added: “We want to have a united and clear message,” without elaborating.

Monday’s missile launches were the latest in a series by North Korea this year in violation of Security Council resolutions that were supported by China and that ban all ballistic missile-related activities by Pyongyang.

North Korea rejects the ban as infringing its sovereign right to pursue a space program and self defense.

North Korea has been under U.N. sanctions since 2006. The 15-member Security Council toughened the sanctions in March in response to North Korea’s fourth nuclear test in January and the launch of a long-range rocket in February.

(Reporting by Rodrigo Campos; Editing by Yara Bayoumy and Frances Kerry)