As U.S. and China find common ground on North Korea, is Russia the wild card?

FILE PHOTO: The Friendship and the Broken bridges over the Yalu River connecting the North Korean town of Sinuiju and Dandong in China's Liaoning province, April 16, 2017. REUTERS/Aly Song/File Photo

By James Pearson and Alexei Chernyshev

SEOUL/VLADIVOSTOK, Russia (Reuters) – When North Korean leader Kim Jong Un sent Lunar New Year greetings this year, the first card went to Russian President Vladimir Putin, ahead of leaders from China and other allies of the isolated country, according to its official news agency.

Some academics who study North Korea argue Kim could be looking for Russia to ease any pain if China, which accounts for about 90 percent of North Korea’s trade, steps up sanctions against the isolated country as part of moves to deter its nuclear and missile programs.

U.S. President Donald Trump lavished praise on Chinese President Xi Jinping last week for Beijing’s assistance in trying to rein in Pyongyang. A day later, U.S. Secretary of State Rex Tillerson pressed the United Nations Security Council to impose more sanctions to further isolate Pyongyang.

There is no sign of any sustainable increase in trade between Russia and North Korea, but business and transport links between the two are getting busier.

A new ferry service starting next week will move up to 200 passengers and 1,000 tonnes of cargo six times a month between North Korea and the Russian port of Vladivostok.

Shipping data on Thomson Reuters Eikon shows there has been a recent steady flow of oil tanker traffic from Vladivostok into North Korean east coast ports.

Last Thursday, five North Korean-flagged oil tankers had loaded up at Vladivostok-area ports and identified North Korean ports as their destination. It was not known what products they were carrying.

Earlier this year, Russian government officials visited Pyongyang to discuss more cooperation in rail transport, according to media reports. A Russian-built railway link between the Russian eastern border town of Khasan and the North Korean port of Rajin has been used to carry some coal, metals and various oil products.

“North Korea does not care about China’s pressure or sanctions because there is Russia next door,” said Leonid Petrov, a North Korea expert at Australia National University.

“Pyongyang has been playing off Beijing and Moscow for half a century, letting them compete for the right to aid and influence North Korea.”

Russia, especially Vladivostok, is also home to one of the largest overseas communities of North Koreans in the world, and they send home tens of thousands of dollars in much-needed hard currency each month.

Speaking at the United Nations last week, Tillerson called on states to sever diplomatic and financial ties with Pyongyang and suspend the flow of North Korean guest workers. The Security Council has not yet agreed on any course of action.

While Russia has not indicated it will oppose U.N. sanctions or seek to dilute them, its ties with the United States are fraught, which could complicate its joining any U.S.-led initiative on North Korea.

Trump and Putin spoke in a telephone call on Tuesday and discussed North Korea, among other issues, both sides said. There was no word of any agreement.

“LOYAL PARTNER”

Samuel Ramani, a Russia expert at Oxford University, said support for the Pyongyang regime could bring economic benefits for Moscow. It would demonstrate Russia was “a loyal partner to anti-Western regimes facing international isolation and sanctions”, he said.

“As Russia has close economic links with other countries at odds with the West, like Iran, Venezuela and Syria, this symbolic dimension of the Russia-North Korea relationship has strategic significance.”

The United States is calling for an embargo in oil sales to North Korea, which imports all its fuel needs. China, North Korea’s main supplier, is unlikely to agree because that would be potentially destabilizing for the Pyongyang regime, but it may impose curbs on the trade, experts say.

China exports about 500,000 tonnes of crude and 270,000 tonnes of products each year, oil industry sources in China say. Russia, the other major supplier of oil to North Korea, exported about 36,000 tonnes of oil products in 2015, the latest year for which figures are available, according to U.N. data.

Russia has already taken over the supply of jet fuel to North Korea after China halted exports two years ago, according to the industry sources in China.

Russia is also the source of foreign exchange for North Korea, mostly from Vladivostok.

The city of 600,000 people, just about 100 km (60 miles) from the border with North Korea, is home to thousands of North Koreans who mainly work on construction or do home renovations. A city web site advertises “Korean Professional Contractors” and says they work “Cheaply and Fast”.

One North Korean man, who works as a handyman, told Reuters he was obliged to hand over a portion of his income – $500 – to the North Korean state each month. Thin and in his 30s, he did not disclose his monthly income, but said he charged 4,000 roubles (about $70) for a day’s labor.

The man said he had worked in Russia for 11 years, leaving his wife and daughter back home whom he only saw on rare visits.

Like all North Koreans, he wore a badge on his lapel bearing the portrait of late North Korean leader Kim Il-Sung.

“It’s better here than in North Korea,” said the man, who did not want to be named.  “It’s a very difficult life there. Here you can make money.”

But the most symbolic upturn in ties between Russia and North Korea is the start of regular trips of the Mangyongbong ferry from Monday between Vladivostok and the North Korean town of Rajin.

Vladimir Baranov, the head of Vladivostok-based Investstroitrest company, told Reuters his company had chartered the Mangyongbong and would be the general agent for the ferry route. The aging boat used to ferry tourists between Japan and North Korea, but Tokyo banned its visits in 2006 as part of sanctions against Pyongyang.

An editorial in Japan’s Yomiuri Shimbun newspaper described the ferry service to Russia as “a move that puts a damper on international efforts to strengthen the encirclement of North Korea aimed at halting its nuclear and missile development.”

Still, despite the differences with the United States and the existing links with North Korea, experts say Russia is unlikely to sharp increase trade with Pyongyang because of its low foreign exchange reserves and general unreliability.

“All trade with North Korea has to be subsidized,” said Andrei Lankov, a Russian North Korea expert at Seoul’s Kookmin University. “I do not see the Russian government spending its dwindling currency reserves to support the regime they despise and see as incurably ungrateful, and also prone to risky adventurism”.

(Additional reporting by Maria Tsvetkova, Natalia Chumakova, Gleb Gorodyankin, Alexander Winning and Andrew Osborn in Moscow, Steve Holland in Washington,; Michelle Nichols at the United Nations, Chen Aizhu and Josephine Mason in Beijing; Editing by Raju Gopalakrishnan)

North Korea says U.S. bomber flights push peninsula to brink of nuclear war

Kim Jong Un stands on the conning tower of a submarine during his inspection of the Korean People's Army Naval Unit 167 in this undated photo released June 16, 2014. REUTERS/KCNA

By Ju-min Park and Ben Blanchard

SEOUL/BEIJING (Reuters) – North Korea accused the United States on Tuesday of pushing the Korean peninsula to the brink of nuclear war after a pair of strategic U.S. bombers flew training drills with the South Korean and Japanese air forces in another show of strength.

The two supersonic B-1B Lancer bombers were deployed amid rising tensions over North Korea’s pursuit of its nuclear and missile programmes in defiance of U.N. sanctions and pressure from the United States.

The flight of the two bombers on Monday came as U.S. President Donald Trump said he would be “honoured” to meet North Korean leader Kim Jong Un in the right circumstances, and as his CIA director landed in South Korea for talks.

South Korean Defence Ministry spokesman Moon Sang-gyun told a briefing in Seoul that Monday’s joint drill was conducted to deter provocations by the North.

North Korea said the bombers conducted “a nuclear bomb dropping drill against major objects” in its territory at a time when Trump and “other U.S. warmongers are crying out for making a preemptive nuclear strike” on the North.

“The reckless military provocation is pushing the situation on the Korean peninsula closer to the brink of nuclear war,” the North’s official KCNA news agency said on Tuesday.

Tensions on the Korean peninsula have been high for weeks, driven by concerns that the North might conduct its sixth nuclear test in defiance of pressure from the United States and Pyongyang’s sole major ally, China.

The U.S. military’s THAAD anti-missile defence system has reached initial operational capacity in South Korea, U.S. officials told Reuters, although they cautioned that it would not be fully operational for some months.

China has repeatedly expressed its opposition to the system, whose powerful radar it fears could reach inside Chinese territory. Foreign Ministry spokesman Geng Shuang again denounced THAAD on Tuesday.

“We will resolutely take necessary measures to defend our interests,” Geng said, without elaborating.

Asked about Trump’s suggestion he could meet Kim, Geng said China had noted U.S. comments that it wanted to use peaceful means to resolve the issue. Trump has been recently been full of praise of Chinese President Xi Jinping’s efforts to rein in its neighbour.

“China has always believed that using peaceful means via dialogue and consultation to resolve the peninsula’s nuclear issue is the only realistic, feasible means to achieve denuclearization of the peninsula and maintain peace and stability there, and is the only correct choice,” Geng told a daily news briefing.

It was widely feared North Korea could conduct its sixth nuclear test on or around April 15 to celebrate the anniversary of the birth of the North’s founding leader, Kim Il Sung, or on April 25 to coincide with the 85th anniversary of the foundation of its Korean People’s Army.

The North has conducted such tests or missile launches to mark significant events in the past.

Instead, North Korea conducted an annual military parade, featuring a display of missiles on April 15 and then a large, live-fire artillery drill 10 days later.

“VIGILANCE, READINESS”

Acting South Korean president Hwang Kyo-ahn called for stronger vigilance because of continuing provocation by North Korea and for countries such as China to increase pressure on the North.

The U.S. military said Mike Pompeo, director of the Central Intelligence Agency, visited South Korea and conducted detailed security discussions with his South Korean counterpart Lee Byung-ho and also visited Yeonpyeong island, which was bombed by North Korea in 2010.

Trump drew criticism in Washington on Monday when he said he would be “honoured” to meet North Korea’s young leader.

“If it would be appropriate for me to meet with him, I would absolutely, I would be honoured to do it,” Trump told Bloomberg News.

Trump did not say what conditions would be needed for such a meeting to occur or when it could happen.

“Clearly conditions are not there right now,” White House spokesman Sean Spicer said.

Trump warned in an interview with Reuters on Thursday that a “major, major conflict” with North Korea was possible, while China said last week the situation on the Korean peninsula could escalate or slip out of control.

In a show of force, the United States has already sent an aircraft carrier strike group, led by the USS Carl Vinson, to waters off the Korean peninsula to conduct drills with South Korea and Japan.

North Korea test-launched a missile on Saturday that appeared to have failed within minutes, its fourth successive failed launch since March. It has conducted two nuclear tests and a series of missile-related activities at an unprecedented pace since the beginning of last year.

The North is technically still at war with the South after their 1950-53 conflict ended in a truce, not a treaty, and regularly threatens to destroy the United States, Japan and South Korea.

(Writing by Jack Kim; Editing by Paul Tait and Nick Macfie)

Defiant North Korea hints at nuclear tests to boost force ‘to the maximum’

People watch a TV broadcasting of a news report on North Korea's missile launch, at a railway station in Seoul, South Korea.

By Soyoung Kim

SEOUL (Reuters) – North Korea suggested on Monday it will continue its nuclear weapons tests, saying it will bolster its nuclear force “to the maximum” in a “consecutive and successive way at any moment” in the face of what it calls U.S. aggression and hysteria.

U.S. President Donald Trump has said a “major, major conflict” with North Korea is possible over its nuclear and ballistic missile programs, while China said last week the situation on the Korean peninsula could escalate or slip out of control.

In a show of force, the United States has sent the nuclear-powered USS Carl Vinson aircraft carrier group to waters off the Korean peninsula to join drills with South Korea to counter a series of threats of destruction from North Korea, formally known as the Democratic People’s Republic of Korea (DPRK).

“Now that the U.S. is kicking up the overall racket for sanctions and pressure against the DPRK, pursuant to its new DPRK policy called ‘maximum pressure and engagement’, the DPRK will speed up at the maximum pace the measure for bolstering its nuclear deterrence,” a spokesman for North Korea’s foreign ministry said in a statement carried by its official KCNA news agency.

North Korea’s “measures for bolstering the nuclear force to the maximum will be taken in a consecutive and successive way at any moment and any place decided by its supreme leadership,” the spokesman said.

Reclusive North Korea has carried out five nuclear tests and a series of missile tests in defiance of U.N. Security Council and unilateral resolutions. It has been conducting such tests at an unprecedented rate and is believed to have made progress in developing intermediate-range and submarine-launched missiles.

It test-launched a missile on Saturday which Washington and Seoul said was unsuccessful, but which nevertheless drew widespread international condemnation.

‘TOP PRIORITY’

South Korea said the United States had reaffirmed it would shoulder the cost of deploying the Terminal High Altitude Area Defense (THAAD) anti-missile system to counter the North Korean threat, days after Trump said Seoul should pay for the $1 billion battery.

In a telephone call on Sunday, Trump’s national security adviser, H.R. McMaster, reassured his South Korean counterpart, Kim Kwan-jin, that the U.S. alliance with South Korea was its top priority in the Asia-Pacific region, the South’s presidential office said.

Trump, asked about his message to North Korea after the latest missile test, told reporters: “You’ll soon find out,” but did not elaborate on what the U.S. response would be.

Trump stepped up his outreach to allies in Asia over the weekend to discuss the North Korean threat and make sure all are “on the same page” if action is needed, a top White House official said.

“There is nothing right now facing this country and facing the region that is a bigger threat than what is happening in North Korea,” White House Chief of Staff Reince Priebus told ABC’s “This Week.”

The THAAD deployment has drawn protests from China, which says the powerful radar that can penetrate its territory will undermine regional security, and from residents of the area in which it is being deployed, worried they will be a target for North Korean missiles.

The United States is seeking more help from China, the North’s major ally, to rein in Pyongyang’s nuclear and missile development. Trump, in the Reuters interview, praised Chinese counterpart Xi Jinping as a “good man”.

Tension on the Korean peninsula has been high for weeks over fears the North may conduct a long-range missile test, or its sixth nuclear test, around the time of the April 15 anniversary of its state founder’s birth.

North Korea, technically still at war with the South after their 1950-53 conflict ended in a truce, not a treaty, regularly threatens to destroy the United States, Japan and South Korea and has said before it will pursue its nuclear and missile programs to counter perceived U.S. aggression.

(Writing by Nick Macfie; Editing by Robert Birsel)

North Korea test-fires ballistic missile in defiance of world pressure

North Korea's leader Kim Jong Un watches a military drill marking the 85th anniversary of the establishment of the Korean People's Army (KPA) in this handout photo by North Korea's Korean Central News Agency (KCNA) made available on April 26, 2017. KCNA/Handout via REUTERS

By Jack Kim and Ju-min Park

SEOUL (Reuters) – North Korea test-fired a ballistic missile on Saturday shortly after U.S. Secretary of State Rex Tillerson warned that failure to curb Pyongyang’s nuclear and ballistic missile programs could lead to “catastrophic consequences”.

U.S. and South Korean officials said the test, from an area north of the North Korean capital, appeared to have failed, in what would be the North’s fourth straight unsuccessful missile test since March.

The test came as the USS Carl Vinson aircraft carrier group arrived in waters near the Korean peninsula, where it began exercises with the South Korean navy on Saturday, about 12 hours after the failed launch, a South Korean navy official said.

Tillerson, in a U.N. Security Council meeting on North Korea on Friday, repeated the Trump administration’s position that all options were on the table if Pyongyang persisted with its nuclear and missile development.

“The threat of a nuclear attack on Seoul, or Tokyo, is real, and it’s only a matter of time before North Korea develops the capability to strike the U.S. mainland,” Tillerson said.

“Failing to act now on the most pressing security issue in the world may bring catastrophic consequences.”

U.S. President Donald Trump said the launch was an affront to China, the North’s sole main ally.

“North Korea disrespected the wishes of China & its highly respected President when it launched, though unsuccessfully, a missile today. Bad!,” Trump said in a post on Twitter after the launch.

Chinese Foreign Minister Wang Yi told the U.N. meeting it was not only up to China to solve the North Korean problem.

“The key to solving the nuclear issue on the peninsula does not lie in the hands of the Chinese side,” Wang said.

In a commentary on Saturday, China’s official Xinhua news agency said both North Korea and the United States needed to tread cautiously.

“If both sides fail to make such necessary concessions, then not only will the two countries, but the whole region and the whole world end up paying a heavy price for a possible confrontation.”

Trump, in an interview with Reuters on Thursday, praised Chinese leader Xi Jinping for “trying very hard” on North Korea but warned a “major, major conflict” was possible.

The North has been conducting missile and nuclear weapons related activities at an unprecedented rate and is believed to have made progress in developing intermediate-range and submarine-launched missiles.

Tension on the Korean peninsula has been high for weeks over fears the North may conduct a long-range missile test, or its sixth nuclear test, around the time of the April 15 anniversary of its state founder’s birth.

JAPAN PROTESTS

Japanese Prime Minister Shinzo Abe condemned the test as a grave threat to the international order.

“I urged Russia to play a constructive role in dealing with North Korea,” Abe told reporters in London. “Japan is watching how China will act in regard to North Korea.”

U.S. officials, speaking on condition of anonymity, said the North Koreans had probably tested a medium-range missile known as a KN-17 and it appeared to have broken up within minutes of taking off.

The South Korean military said the missile reached an altitude of 71 km (44 miles) before disintegrating. It said the launch was a clear violation of U.N. resolutions and warned the North not to act rashly.

With North Korea acting in defiance of the pressure, the United States could conduct new naval drills and deploy more ships and aircraft in the region, a U.S. official told Reuters.

The dispatch of Carl Vinson to the waters off the Korean peninsula is a “reckless action of the war maniacs aimed at an extremely dangerous nuclear war,” the Rodong Sinmun, the official newspaper of North Korea’s ruling Workers’ Party, said in a commentary on Saturday.

Inter-continental ballistic rockets will fly into the United States “if the U.S. shows any slight sign of provocation,” the newspaper said.

MORE SANCTIONS MOOTED

Kim Dong-yub, an expert at Kyungnam University’s Institute of Far Eastern Studies in Seoul, said North Korea might have got the data it wanted with the missile’s short flight, then blown it up in a bid to limit the anger of China, which warned Pyongyang against further provocation.

North Korea rattled world powers in February when it successfully launched a new intermediate-range ballistic missile that it said could carry a nuclear weapon. It also successfully tested ballistic missiles on March 6.

It is not clear what has caused the series of failed missile tests since then.

The Trump administration could respond to the test by speeding up its plans for new U.S. sanctions, including possible measures against specific North Korean and Chinese entities, said the U.S. official, who declined to be identified.

“Something that’s ready to go could be taken from the larger package and expedited,” said the official.

The U.N. Security Council is likely to start discussing a statement to condemn the missile launch, said diplomats.

But condemnations and sanctions resolutions since 2006, when North Korea conducted its first nuclear test, have done little to impede its push for ballistic missiles and nuclear arms.

The South Korean politician expected to win a May 9 presidential election, Moon Jae-in, called the test an “exercise in futility”.

“We urge again the Kim Jong Un regime to immediately stop reckless provocative acts and choose the path to cooperate with the international community,” Park Kwang-on, a spokesman for Moon, said in a statement, referring to the North Korean leader.

Moon has advocated a more moderate policy on the North and been critical of the deployment of an advanced U.S. missile defense system in the South intended to counter North Korea’s missile threat, which China also strongly objects to.

(This story has been refiled to clarify timing of naval exercise in paragraph three.)

(Additional reporting by Soyoung Kim in SEOUL, Idrees Ali, David Brunnstrom and Matt Spetalnick in WASHINGTON, Tim Kelly and Nobuhiro Kubo in TOKYO, John Ruwitch in SHANGHAI and Michelle Nichols and Lesley Wroughton at the UNITED NATIONS, William James and Alistair Smout in LONDON; Editing Lincoln Feast and Robert Birsel)

U.S. says failure to act on North Korea could be catastrophic

U.S. Secretary of State Rex Tillerson speaks at a Security Council meeting on the situation in North Korea at the United Nations, in New York City, U.S., April 28, 2017. REUTERS/Stephanie Keith

By Michelle Nichols and Lesley Wroughton

UNITED NATIONS (Reuters) – U.S. Secretary of State Rex Tillerson warned on Friday that failure to curb North Korea’s nuclear and missile abilities could lead to ‘catastrophic consequences,’ while China and Russia cautioned Washington against threatening military force to solve the problem.

While Washington has pressed Beijing to rein in its ally Pyongyang, Chinese Foreign Minister Wang Yi told the U.N. Security Council that “the key to solving the nuclear issue on the peninsula does not lie in the hands of the Chinese side.”

Tillerson urged the 15-member body to act before North Korea does and called on states to sever diplomatic and financial ties with Pyongyang. He said that because China accounted for 90 percent of North Korean trade, its role was particularly important.

“Failing to act now on the most pressing security issue in the world may bring catastrophic consequences,” Tillerson said in his first remarks to the council as secretary of state.

The United States was not pushing for regime change and preferred a negotiated solution, but Pyongyang, for its own sake, should dismantle its nuclear and missile programs, he said.

“The threat of a nuclear attack on Seoul, or Tokyo, is real, and it’s only a matter of time before North Korea develops the capability to strike the U.S. mainland,” Tillerson said.

While Tillerson repeated the Trump administration’s position that all options are on the table if Pyongyang persists with its nuclear and missile development, Yi said military threats would not help.

Yi said dialogue and negotiations were the “only way out” and called on parties to stop arguing over who must take the first step. China wants talks first and action later, while the United States wants North Korea to curtail its nuclear program before such talks start.

“The use of force does not solve differences and will only lead to bigger disasters,” Wang told the council.

U.S. President Donald Trump said in an interview with Reuters on Thursday that a “major, major conflict” with North Korea was possible over its nuclear and ballistic missile programs.

‘FRIGHTENING’ CONSEQUENCES

Russian Deputy Foreign Minister Gennady Gatilov also said on Friday the use of force would be “completely unacceptable.”

“The combative rhetoric coupled with reckless muscle-flexing has led to a situation where the whole world seriously is now wondering whether there’s going to be a war or not,” he told the council. “One ill thought out or misinterpreted step could lead to the most frightening and lamentable consequences.”

Gatilov said North Korea felt threatened by regular joint U.S. and South Korean military exercises and the deployment of a U.S. aircraft carrier group to waters off the Korean peninsula.

China and Russia both also repeated their opposition to the deployment of a U.S. anti-missile system in South Korea. Gatilov described it as a “destabilizing effort,” while Wang said it damaged trust among the parties on the North Korea issue.

Japanese Foreign Minister Fumio Kishida told the council that to bring North Korea back to the table the international community “must send a strong message that provocation comes at a high price.”

“There is no doubt that dialogue is necessary … however under the current situation where North Korea continues to advance its nuclear and ballistic missile programs, meaningful dialogue is clearly not possible,” he said.

The Trump administration is focusing its North Korea strategy on tougher economic sanctions, possibly including an oil embargo, a global ban on its airline, intercepting cargo ships and punishing Chinese banks doing business with Pyongyang, U.S. officials told Reuters earlier this month.

Since 2006, North Korea has been subject to U.N. sanctions aimed at impeding the development of its nuclear and missile programs. The council has strengthened sanctions following each of North Korea’s five nuclear tests.

(Editing by Steve Orlofsky and Frances Kerry)

Exclusive: Trump says ‘major, major’ conflict with North Korea possible, but seeks diplomacy

U.S. President Donald Trump looks out a window of the Oval Office following an interview with Reuters at the White House in Washington, U.S., April 27, 2017. REUTERS/Carlos Barria

By Stephen J. Adler, Steve Holland and Jeff Mason

WASHINGTON (Reuters) – U.S. President Donald Trump said on Thursday a major conflict with North Korea is possible in the standoff over its nuclear and missile programs, but he would prefer a diplomatic outcome to the dispute.

“There is a chance that we could end up having a major, major conflict with North Korea. Absolutely,” Trump told Reuters in an Oval Office interview ahead of his 100th day in office on Saturday.

Nonetheless, Trump said he wanted to peacefully resolve a crisis that has bedeviled multiple U.S. presidents, a path that he and his administration are emphasizing by preparing a variety of new economic sanctions while not taking the military option off the table.

“We’d love to solve things diplomatically but it’s very difficult,” he said.

In other highlights of the 42-minute interview, Trump was cool to speaking again with Taiwan’s president after an earlier telephone call with her angered China.

He also said he wants South Korea to pay the cost of the U.S. THAAD anti-missile defense system, which he estimated at $1 billion, and intends to renegotiate or terminate a U.S. free trade pact with South Korea because of a deep trade deficit with Seoul.

Asked when he would announce his intention to renegotiate the pact, Trump said: “Very soon. I’m announcing it now.”

Trump also said he was considering adding stops to Israel and Saudi Arabia to a Europe trip next month, emphasizing that he wanted to see an Israeli-Palestinian peace. He complained that Saudi Arabia was not paying its fair share for U.S. defense.

Asked about the fight against Islamic State, Trump said the militant group had to be defeated.

“I have to say, there is an end. And it has to be humiliation,” he said, when asked about what the endgame was for defeating Islamist violent extremism.

XI ‘TRYING VERY HARD’

Trump said North Korea was his biggest global challenge. He lavished praise on Chinese President Xi Jinping for Chinese assistance in trying to rein in Pyongyang. The two leaders met in Florida earlier this month.

“I believe he is trying very hard. He certainly doesn’t want to see turmoil and death. He doesn’t want to see it. He is a good man. He is a very good man and I got to know him very well.

“With that being said, he loves China and he loves the people of China. I know he would like to be able to do something, perhaps it’s possible that he can’t,” Trump said.

Trump spoke just a day after he and his top national security advisers briefed U.S. lawmakers on the North Korean threat and one day before Secretary of State Rex Tillerson will press the United Nations Security Council on sanctions to further isolate Pyongyang over its nuclear and missile programs.

The Trump administration on Wednesday declared North Korea “an urgent national security threat and top foreign policy priority.” It said it was focusing on economic and diplomatic pressure, including Chinese cooperation in containing its defiant neighbor and ally, and remained open to negotiations.

U.S. officials said military strikes remained an option but played down the prospect, though the administration has sent an aircraft carrier and a nuclear-powered submarine to the region in a show of force.

Any direct U.S. military action would run the risk of massive North Korean retaliation and huge casualties in Japan and South Korea and among U.S. forces in both countries.

‘I HOPE HE’S RATIONAL’

Trump, asked if he considered North Korean leader Kim Jong Un to be rational, said he was operating from the assumption that he is rational. He noted that Kim had taken over his country at an early age.

“He’s 27 years old. His father dies, took over a regime. So say what you want but that is not easy, especially at that age.

“I’m not giving him credit or not giving him credit, I’m just saying that’s a very hard thing to do. As to whether or not he’s rational, I have no opinion on it. I hope he’s rational,” he said.

Trump, sipping a Coke delivered by an aide after the president ordered it by pressing a button on his desk, rebuffed an overture from Taiwan President Tsai Ing-wen, who told Reuters a direct phone call with Trump could take place again after their first conversation in early December angered Beijing.

China considers neighboring Taiwan to be a renegade province.

“My problem is that I have established a very good personal relationship with President Xi,” said Trump. “I really feel that he is doing everything in his power to help us with a big situation. So I wouldn’t want to be causing difficulty right now for him.

“So I would certainly want to speak to him first.”

Trump also said he hoped to avoid a potential government shutdown amid a dispute between congressional Republicans and Democrats over a spending deal with a Saturday deadline looming.

But he said if a shutdown takes place, it will be the Democrats’ fault for trying to add money to the legislation to “bail out Puerto Rico” and other items.

He also defended the one-page tax plan he unveiled on Wednesday from criticism that it would increase the U.S. deficit, saying better trade deals and economic growth would offset the costs.

“We will do trade deals that are going to make up for a tremendous amount of the deficit. We are going to be doing trade deals that are going to be much better trade deals,” Trump said.

(Editing by Ross Colvin)

Estonia says Russia may put troops in Belarus to challenge NATO

FILE PHOTO: Estonia’s Defence Minister Margus Tsahkna speaks during the official ceremony welcoming the deployment of a multi-national NATO battalion in Tapa, Estonia, April 20, 2017. REUTERS/Ints Kalnins/File Photo

By Robin Emmott

VALETTA (Reuters) – Estonia’s defense minister said on Thursday that Russia may use large-scale military exercises to move thousands of troops permanently into Belarus later this year in a warning to NATO.

Russia and Belarus aim to hold joint war games in September that some North Atlantic Treaty Organisation allies believe could number more than 100,000 troops and involve nuclear weapons training, the biggest such exercise since 2013.

Defence Minister Margus Tsahkna said Estonia and other NATO governments had intelligence suggesting Moscow may leave Russian soldiers in Belarus once the so-called Zapad 2017 exercises are over, also pointing to public data of Russian railway traffic to Belarus.

Tsahkna cited plans to send 4,000 railway carriages to Belarus to transport Russian troops and gear there, possibly to set up a military outpost in its closest ally.

“For Russian troops going to Belarus, it is a one-way ticket,” Tsahkna told Reuters in an interview in Malta.

“This is not my personal opinion, we are analyzing very deeply how Russia is preparing for the Zapad exercises,” he said before a meeting of EU defense ministers.

Russia’s Defence Ministry did not immediately reply to a Reuters request for comment on the subject.

Moscow denies any plans to threaten NATO and says it is the U.S.-led alliance that is risking stability in eastern Europe. The Kremlin has not said how many troops will take part in Zapad 2017.

“We see what they are doing on the other side of the EU-NATO border. Troops may remain there after Zapad,” Tsahkna said, saying that Tallinn had shared its concerns with Baltic and NATO allies. He put the number of potential troops in the thousands.

Such a move could see Russian troops on the border with Poland, Lithuania and Latvia just as the U.S.-led NATO alliance stations multinational battalions in the Baltic region in response to Russia’s 2014 annexation of Ukraine’s Crimea.

“QUESTION OF TRUST”

The scale of this year’s Zapad exercises, which date from Soviet times when they were first used to test new weapon systems, is one of NATO’s most pressing concerns, as diplomats say the war games are no simple military drill.

Previous large-scale exercises in 2013 employed special forces training, longer-range missiles and unmanned aerial vehicles that were later used in Russia’s annexation of Crimea, its support for separatists in eastern Ukraine and in its intervention in Syria, NATO diplomats said.

Russia, bridling at NATO’s expansion eastwards into its old Soviet sphere of influence, says its exercises are a response to NATO’s 4,000-strong new deterrent force in the Baltics and Poland that will begin to rotate through the region from June.

Russian Defence Minister Sergei Shoigu said in January the scenario for the Zapad 2017 exercises would “take into account the situation linked to increased NATO activity along the borders of the Union state,” Russian media cited, in a reference to the union of Russia and Belarus.

The exercises, to be held simultaneously on military training grounds in Russia and Belarus, aim to focus on joint planning, command tactics and joint troop formations, he said.

“In the future we plan to strengthen the practical nature of such exercises, taking into account the emerging foreign policy realities,” Shoigu added, in an apparent reference to the expansion of NATO, which is soon to include Montenegro.

The U.S. Army’s top European commander has called on Russia to open its exercises to observers to calm Baltic concerns.

Asked about Moscow’s possible motives for leaving troops in Belarus, Tsahkna said it was likely about President Vladimir Putin’s image as a strong leader at home, as well as cementing ties with Belarus, which was alarmed by the Crimea annexation.

“Russia has presidential elections next year and Putin needs to show strength to the Russian people,” Tsahkna said. “It’s also a question of trust with Belarus.”

The West has sought to improve ties with Belarus over the past two years, lifting some sanctions in an overture to the country’s President Alexander Lukashenko, the man the West calls Europe’s “last dictator.”

But Belarus remains Russia’s ally and a member of Putin’s Eurasian trade bloc. Belarus Defence Minister Andrei Ravkov has echoed Russia’s position that NATO is a threat, also accusing Ukraine of raising tensions by aligning itself with the West.

(Additional reporting by Dmitry Solovyov in Moscow; Editing by Toby Chopra)

China welcomes U.S. saying it’s open to talks on North Korea

A military drill marking the 85th anniversary of the establishment of the Korean People's Army (KPA) is seen in this handout photo by North Korea's Korean Central News Agency (KCNA) made available on April 26, 2017. KCNA/Handout via REUTERS

By Michael Martina and Ju-min Park

BEIJING/SEOUL (Reuters) – China on Thursday welcomed an apparently softer tone by the United States on the North Korean nuclear and missile crisis but stressed its opposition to a U.S. missile defense system being deployed in South Korea.

China has long promoted dialogue to resolve the “Korean nuclear issue” as North Korea has repeatedly threatened to destroy the United States which in turn has warned that “all options are on the table” in ending North Korean provocations.

The Trump administration said on Wednesday it aimed to push North Korea into dismantling its nuclear and missile programs, which are in violation of U.N. Security Council resolutions, through tougher international sanctions and diplomatic pressure.

“The United States seeks stability and the peaceful denuclearization of the Korean peninsula. We remain open to negotiations toward that goal. However, we remain prepared to defend ourselves and our allies,” it said in a statement.

Asked about the U.S. comments, Chinese Foreign Ministry spokesman Geng Shuang said China had noted that many U.S. officials had recently made such remarks.

“We have noted these expressions, and have noted the message conveyed in these expressions hoping to resolve the Korean nuclear issue peacefully through dialogue and consultation,” he said.

“We believe this message is positive and should be affirmed.”

South Korea and the United States agreed on Thursday on “swift punitive measures” against North Korea in the event of further provocation. The South also said the deployment of a U.S. anti-missile defense system was moving ahead effectively a day after angry protests against the battery and fierce opposition from China.

South Korea on Wednesday moved parts of the Terminal High Altitude Area Defense (THAAD) system to its deployment site on a golf course about 250 km (155 miles) south of the capital, Seoul, signaling a faster installation of the system.

Several hundred South Korean villagers protested near the site, hurling water bottles at vehicles moving the parts in.

CHINA AGAIN DENOUNCES THAAD

The top U.S. Commander in the Pacific, Admiral Harry Harris, said on Wednesday the THAAD system would be operational “in coming days” bolstering the ability to defend the U.S. ally and the 28,500 U.S. troops stationed there.

A photograph taken of the site showed a THAAD interceptor on the back of a mobile launcher erected and pointed skywards on green lawn as a military transport helicopter hovered nearby.

China says the system’s advanced radar can penetrate deep into its territory and undermine its security. It is adamant in its opposition.

“The deployment of the THAAD anti-missile system in South Korea damages the regional strategic balance and stability. The Chinese side is resolutely opposed to this,” Defence Ministry spokesman Yang Yujun told reporters.

“China’s military will continue to carry out live-fire military exercises and test new military equipment in order to firmly safeguard national security and regional peace and stability.”

U.S. Secretary of State Rex Tillerson, Defense Secretary Jim Mattis and Director of National Intelligence Dan Coats described North Korea on Wednesday as “an urgent national security threat and top foreign policy priority”.

The U.S. signal of a willingness to exhaust non-military avenues came as the USS Carl Vinson aircraft carrier group approached Korean waters, where it will join the USS Michigan nuclear submarine.

North Korea, which conducted its biggest ever artillery exercise to mark the 85th anniversary of its military’s creation on Tuesday, says it needs to develop weapons to defend itself from U.S. aggression.

A North Korean official speaking on CNN said the country would not be influenced by outside events.

“As long as America continues its hostile acts of aggression, we will never stop nuclear and missile tests,” said Sok Chol Won, director of the North’s Institute of Human Rights at the Academy of Social Sciences.

Moon Jae-in, the front-runner in South Korea’s May 9 presidential election, has called for a delay in THAAD deployment, saying a decision should be made after gathering public opinion and more talks with Washington.

(Additional reporting by Phil Stewart in WASHINGTON and Ben Blanchard in BEIJING; Writing by Jack Kim and Nick Macfie; Editing by Robert Birsel)

North Korea stages large-scale artillery drill as U.S. submarine docks in South

Soldiers walk in front of the Monument to the Foundation of the Workers' Party in Pyongyang, North Korea April 16, 2017. REUTERS/Damir Sagolj

By Ju-min Park

SEOUL (Reuters) – North Korea conducted a big live-fire exercise on Tuesday to mark the foundation of its military as a U.S. submarine docked in South Korea in a show of force amid growing concern over the North’s nuclear and missile programs.

The port call by the USS Michigan came as a U.S. aircraft carrier strike group steamed toward Korean waters and as top envoys for North Korea policy from South Korea, Japan and the United States met in Tokyo.

Fears have risen in recent weeks that North Korea would conduct another nuclear test or long-range missile launch in defiance of U.N. sanctions, perhaps on the Tuesday anniversary of the founding of its military.

But instead of a nuclear test or big missile launch, North Korea deployed a large number of long-range artillery units in the region of Wonsan on its east coast for a live-fire drill, South Korea’s military said. North Korea has an air base in Wonsan and missiles have also been tested there.

“North Korea is conducting a large-scale firing drill in Wonsan areas this afternoon,” the South’s Office of Joint Chiefs of Staff said in a statement.

The South Korean military was monitoring the situation and “firmly maintaining readiness”, it said.

The South’s Yonhap News Agency said earlier the exercise was possibly supervised by North Korean leader Kim Jong Un.

North Korea’s state media was defiant in a commentary marking the 85th anniversary of the foundation of the Korean People’s Army, saying its military was prepared “to bring to closure the history of U.S. scheming and nuclear blackmail”.

“There is no limit to the strike power of the People’s Army armed with our style of cutting-edge military equipment including various precision and miniaturized nuclear weapons and submarine-launched ballistic missiles,” the official Rodong Sinmun newspaper said in a front-page editorial.

North Korea’s growing nuclear and missile threat is perhaps the most serious security challenge confronting U.S. President Donald Trump. He has vowed to prevent North Korea from being able to hit the United States with a nuclear missile and has said all options are on the table, including a military strike.

Trump sent the USS Carl Vinson aircraft carrier strike group for exercises off the Korean peninsula as a warning to North Korea and a show of solidarity with U.S. allies.

South Korea’s navy said it was conducting a live-fire exercise with U.S. destroyers in waters west of the Korean peninsula and would soon join the carrier strike group approaching the region.

China, North Korea’s sole major ally which nevertheless objects to its weapons development, has repeatedly called for calm, and its envoy for Korean affairs, Wu Dawei, was in Tokyo on Tuesday.

“We hope that all parties, including Japan, can work with China to promote an early peaceful resolution of the issue, and play the role, put forth the effort, and assume the responsibility that they should,” Chinese foreign ministry spokesman Geng Shuang told reporters in Beijing.

Japan’s envoy on North Korea, Kenji Kanasugi, said after talks with his U.S. and South Korean counterparts that they agreed China should take a concrete role to resolve the crisis and it could use an oil embargo as a tool to press the North.

“We believe China has a very, very important role to play,” said the U.S. envoy for North Korea policy, Joseph Yun.

South Korea’s envoy, Kim Hong-kyun, said they had also discussed how to get Russia’s help to press North Korea.

Japanese Prime Minister Shinzo Abe is expected to meet Russian President Vladimir Putin on April 27, the Kremlin said. It did not elaborate.

RARE SENATE BRIEFING

Matching the flurry of diplomatic and military activity in Asia, the State Department in Washington said on Monday U.S. Secretary of State Rex Tillerson would chair a special ministerial meeting of the U.N. Security Council on North Korea on Friday.

Tillerson, along with Defense Secretary Jim Mattis, Director of National Intelligence Dan Coats and Joint Chiefs chairman General Joseph Dunford, would also hold a rare briefing for the entire U.S. Senate on North Korea on Wednesday, Senate aides said.

A North Korean foreign ministry spokesman said those meetings called by U.S. officials clearly reflected the U.S. pressure that could “ignite a full-out war” on the Korean peninsula.

“The reality of today again proves the decision to strengthen nuclear power in quality and quantity under the banner of pursuing economic development and nuclear power was the correct one,” the unidentified spokesman said in a statement issued by the North’s state media.

On Monday, Trump called for tougher U.N. sanctions on the North, saying it was a global threat and “a problem that we have to finally solve”.

“The status quo in North Korea is also unacceptable,” Trump told a meeting with the 15 U.N. Security Council ambassadors, including China and Russia, at the White House. “The council must be prepared to impose additional and stronger sanctions on North Korean nuclear and ballistic missile programs.”

The official China Daily said it was time for Pyongyang and Washington to take a step back from harsh rhetoric and heed calls for a peaceful resolution.

“Judging from their recent words and deeds, policymakers in Pyongyang have seriously misread the U.N. sanctions, which are aimed at its nuclear/missile provocations, not its system or leadership,” the newspaper said in an editorial.

“They are at once perilously overestimating their own strength and underestimating the hazards they are brewing for themselves.”

The nuclear-powered submarine the USS Michigan, which arrived in the South Korean port of Busan, is built to carry and launch ballistic missiles and Tomahawk cruise missiles.

(Additional reporting by Ben Blanchard and Michael Martina in BEIJING, Kaori Kaneko, Linda Sieg, Elaine Lies and Tim Kelly in TOKYO, and Steve Holland, Matt Spetalnick, Susan Heavey and David Brunnstrom in WASHINGTON, Vladimir Soldatkin in MOSCOW; Writing by Jack Kim; Editing by Paul Tait, Robert Birsel)

Chinese, Iranian firms to sign first nuclear plant redesign contracts

A view of the Arak heavy-water project 190 km (120 miles) southwest of Tehran August 26, 2006. REUTERS/ISNA/Handout

BEIJING (Reuters) – Companies from China and Iran will this weekend sign the first commercial contracts to redesign an Iranian nuclear plant as part of an international deal reached in 2015 over Iran’s nuclear program, China’s Foreign Ministry said on Thursday.

The fate of the Arak reactor in central Iran was one of the toughest sticking points in the long nuclear negotiations that led to the agreement, signed by Iran with the United States, Britain, France, China, Russia and Germany.

In the redesign, the heavy water reactor will be reconfigured so it cannot yield fissile plutonium usable in a nuclear bomb.

Ministry spokesman Lu Kang said the contracts for the plant’s redesign would be signed on Sunday in Vienna with initial agreements having already been reached in Beijing, describing it as an important part of the Iran nuclear deal.

China and the United States are joint heads of the working group on the Arak project, and progress has been smooth, Lu told a daily news briefing.

“The signing of this contract will create good conditions for substantively starting the redesign project,” Lu said.

Iran has said that the 40-megawatt, heavy-water plant is aimed at producing isotopes for cancer and other medical treatments, and has denied that any of its nuclear activity is geared to developing weapons.

The announcement comes as U.S. Secretary of State Rex Tillerson accused Iran of “alarming ongoing provocations” to destabilize countries in the Middle East as the Trump administration launched a review of its policy toward Tehran.

Tillerson said the review would not only look at Iran’s compliance with the 2015 nuclear deal but also its behavior in the region which he said undermined U.S. interests in Syria, Iraq, Yemen and Lebanon.

Lu, while not directly referring to Tillerson’s comments, said China hopes all parties could ensure the nuclear deal was implemented, appropriately handle disagreements and make positive contributions to nuclear non-proliferation and peace and stability in the Middle East.

(Reporting by Ben Blanchard; Editing by Robert Birsel)