Exclusive: U.S. warships sail near South China Sea islands claimed by Beijing

Satellite photo dated March 28, 2018 shows Woody Island. Planet Labs Inc/Handout via REUTERS

By Idrees Ali

WASHINGTON (Reuters) – Two U.S. Navy warships sailed near South China Sea islands claimed by China on Sunday, two U.S. officials told Reuters, in a move that drew condemnation from Beijing as President Donald Trump seeks its continued cooperation on North Korea.

The operation was the latest attempt to counter what Washington sees as Beijing’s efforts to limit freedom of navigation in the strategic waters.

While this operation had been planned months in advance, and similar operations have become routine, it comes at a particularly sensitive time and just days after the Pentagon uninvited China from a major U.S.-hosted naval drill.

The U.S. officials, speaking on condition of anonymity, said the Higgins guided-missile destroyer and the Antietam, a guided-missile cruiser, came within 12 nautical miles of the Paracel Islands, among a string of islets, reefs and shoals over which China has territorial disputes with its neighbors.

The U.S. military vessels carried out maneuvering operations near Tree, Lincoln, Triton and Woody islands in the Paracels, one of the officials said.

Trump’s cancellation of a summit with North Korean leader Kim Jong Un has put further strain on U.S.-China ties amid a trade dispute between the world’s two largest economies.

Critics of the operations, known as a “freedom of navigation,” have said that they have little impact on Chinese behavior and are largely symbolic.

The U.S. military has a long-standing position that its operations are carried out throughout the world, including in areas claimed by allies, and that they are separate from political considerations.

Satellite photographs taken on May 12 showed China appeared to have deployed truck-mounted surface-to-air missiles or anti-ship cruise missiles at Woody Island.

Earlier this month, China’s air force landed bombers on disputed islands and reefs in the South China Sea as part of a training exercise in the region, triggering concern from Vietnam and the Philippines.

The U.S. military did not directly comment on Sunday’s operation, but said U.S. forces operate in the region daily.

“We conduct routine and regular Freedom of Navigation Operations (FONOPs), as we have done in the past and will continue to do in the future,” U.S. Pacific Fleet said in a statement.

China’s Defense Ministry expressed its anger, saying it had sent ships and aircraft to warn the U.S. warships to leave, saying they had entered the country’s territorial waters without permission.

The move “contravened Chinese and relevant international law, seriously infringed upon Chinese sovereignty (and) harmed strategic mutual trust between the two militaries,” it said.

In a separate statement, China’s Foreign Ministry urged the United States to stop such actions.

“China will continue to take all necessary measures to defend the country’s sovereignty and security,” it added, without elaborating.

CONTESTED SEA

Pentagon officials have long complained that China has not been candid enough about its rapid military build-up and using South China Sea islands to gather intelligence in the region.

In March, a U.S. Navy destroyer carried out a “freedom of navigation” operation close to Mischief Reef in the Spratly Islands.

Chinese officials have accused Washington of viewing their country in suspicious, “Cold War” terms.

China’s claims in the South China Sea, through which about $5 trillion in shipborne trade passes each year, are contested by Brunei, Malaysia, the Philippines, Taiwan and Vietnam.

The United States has said it would like to see more international participation in freedom-of-navigation operations in the South China Sea.

(Reporting by Idress Ali in Washington; Additional reporting by Ben Blanchard in Beijing; Editing by Alexander Smith, Alexandra Hudson and Lisa Shumaker)

Syrian rebel fighters pull out of their last besieged area

A woman gestures as she stands on rubble of damaged buildings in Raqqa, Syria May 14, 2018. REUTERS/Aboud Hamam

BEIRUT (Reuters) – The remaining fighters started to withdraw from the last rebel-held enclave in central Syria on Wednesday, state television reported, sealing the government’s control over the area and opening a major stretch of the country’s most important highway.

It further cements President Bashar al-Assad’s dominant position over the most populated parts of Syria after years of fighting, but means any new military campaign might risk direct conflict with foreign powers.

The withdrawal may also be the last in a series of agreed evacuations used by the government to defeat besieged insurgents by forcing them to surrender territory in return for safe passage to opposition areas in the north.

Often brokered by Assad’s Russian allies, such agreements have in recent years become a defining characteristic of Syria’s seven-year war.

In the last two months alone, the United Nations says 110,000 people have been evacuated to northwestern Syria and rebel-held areas north of Aleppo.

The opposition has called it a policy of forced displacement amounting to demographic change to force out Assad’s opponents. The Syrian government has said nobody is forced to leave and those who stay must accept state rule.

The last besieged rebel area, being fully evacuated on Wednesday, is the large enclave located between the cities of Hama and Homs around the towns of Rastan, Talbiseh and Houla.

Rebels still hold large swathes of northwest and southwest Syria that are not besieged because they border Turkey and Jordan, which have at times backed the insurgents and are guarantors of limited truces in those areas.

The only other area still surrounded by the Syrian army, in the Yarmouk Palestinian refugee camp south of Damascus, is held by Islamic State fighters who look unlikely to agree to withdraw to the patch of desert they still hold in east Syria.

More than a quarter of Syria is held by an alliance of Kurdish and Arab militias that the United States helped in the fight against Islamic State.

U.S. President Donald Trump has said he wants to pull American troops from Syria, but the Pentagon has said they are staying for now.

SIEGE

Assad focused on the remaining besieged rebel pockets last month after taking back Eastern Ghouta, the biggest insurgent enclave near Damascus, in a ferocious, weeks-long offensive.

Having held the area being evacuated on Wednesday for years, rebels agreed earlier this month to withdraw along with their families and other civilians who did not want to come back under Assad’s rule.

Since the enclave straddled Syria’s main north-south highway in the stretch between Hama and Homs, recapturing it will significantly ease communication lines in government areas.

Some 27,000 people have left the enclave already since the evacuations began earlier this month, a local government official said. The last convoy of buses began to leave on Wednesday, according to state media.

Last month, 66,000 people left Eastern Ghouta under similar agreements, the U.N. has said. Other major evacuations have included from east Aleppo in late 2016, when more than 30,000 people left.

Tens of thousands of other people have left smaller pockets in recent years. It has added to a humanitarian crisis in northwestern Idlib province, where the pre-war population of about 1 million people has been doubled by those fleeing other parts of the country.

(Reporting By Angus McDowall; Editing by Matthew Mpoke Bigg)

Before expulsions, a brick-by-brick hardening of U.S. stance toward Moscow

By Phil Stewart and Matt Spetalnick

WASHINGTON (Reuters) – America’s most sweeping expulsion of Russian diplomats since the Cold War may have seemed like a dramatic escalation in Washington’s response to Moscow, but the groundwork for a more confrontational U.S. posture had been taking shape for months — in plain sight.

While President Donald Trump’s conciliatory rhetoric toward Moscow has dominated headlines, officials at the U.S. State Department, Pentagon and White House made a series of lower-profile decisions over the past year to counter Russia around the world – from Afghanistan to North Korea to Syria.

The State Department earlier in March announced plans to provide anti-tank missiles to Ukraine to defend against Russia-backed separatists in eastern Ukraine. Trump’s predecessor as president, Barack Obama, had declined to do so over fears of provoking Moscow.

In Syria last month, the U.S. military killed or injured as many as 300 men working for a Kremlin-linked private military firm after they attacked U.S. and U.S.-backed forces. The White House, meanwhile, firmly tied Russia to deadly strikes on civilians in Syria’s eastern Ghouta region.

Both the White House and Pentagon’s top policy documents unveiled in January portrayed Russia as an adversary that had returned to the center of U.S. national security planning.

That was all before the United States said on Monday it would expel 60 Russian diplomats, joining governments across Europe in punishing the Kremlin for a nerve agent attack on a former Russian spy in Britain that they have blamed on Moscow.

Russia has denied any involvement.

With Monday’s announcement, however, it was unclear whether Trump is promoting – or just acquiescing to – the tougher U.S. stance developed by his advisers and generals.

Trump’s critics sought to portray him as a reluctant actor in any get-tough approach to Russia, even though one senior administration official described him as involved “from the beginning” in the expulsions of Russian diplomats.

“It is disturbing how grudgingly he came to this decision,” said U.S. Representative Adam Smith, the top Democrat on the House Armed Services Committee.

Still, the Trump administration’s actions run counter to widespread perception, fueled by the president’s own statements, that Trump has softened America’s stance toward Russian President Vladimir Putin amid a U.S. investigation into Moscow’s meddling in the 2016 presidential election.

Regardless of the tough actions, the inconsistent messaging may undermine Washington’s strategy to deter Moscow’s aggressive behavior, experts warn.

“U.S. signaling is all undercut by Trump’s lack of seriousness about Russia,” said Andrew Weiss, a Russia expert at the Carnegie Endowment for International Peace.

Just last Tuesday, Trump congratulated Putin on his re-election, drawing sharp criticism from fellow Republicans.

But in another sign of mixed messaging, Trump two days later named John Bolton, a strident Russia hawk, to become his national security adviser.

DOWNWARD SPIRAL

Although the nerve agent attack was the official trigger for the U.S. expulsions, Trump administration officials warned that the attack should not be viewed in isolation, citing a series of destabilizing and aggressive actions by Moscow.

In Afghanistan, Trump’s top commander on the ground accused Russia again last week of arming Taliban militants.

On North Korea, Trump himself told Reuters in January that Russia was helping Pyongyang evade United Nations sanctions.

And less than two weeks ago, the Trump administration imposed the first sanctions against Russia for election meddling and cyber attacks, though it held off on punishing business magnates close to Putin.

U.S. officials and experts widely expect ties to further deteriorate, at least in the near term, and caution that Russia’s next steps could extend far beyond retaliation against American diplomats.

“The risk of escalation doesn’t just come from tit-for-tat punishments,” said Matthew Rojansky, a Russia expert at the Wilson Center think tank in Washington, citing the potential for more aggressive moves from the Middle East to the cyber realm.

U.S. officials have said the Trump administration still seeks to avoid a complete rupture in bilateral relations. One official said Russian cooperation was still sought to address thorny diplomatic issues like North Korea and Iran.

(Additional reporting by John Walcott; editing by Mary Milliken and G Crosse)

North Korea says willing to hold talks with U.S., halt nuclear tests: South

North Korean leader Kim Jong Un meets members of the special delegation of South Korea's President in this photo released by North Korea's Korean Central News Agency (KCNA) on March 6, 2018. KCNA/via Reuter

By Christine Kim

SEOUL (Reuters) – North Korea is willing to hold talks with the United States on denuclearisation and will suspend nuclear tests while those talks are under way, the South said on Tuesday after a delegation returned from the North where it met leader Kim Jong Un.

North and South Korea, still technically at war but enjoying a sharp easing in tension since the Winter Olympics in the South last month, will also hold their first summit in more than a decade next month at the border village of Panmunjom, the head of the delegation, Chung Eui-yong, told a media briefing.

“North Korea made clear its willingness to denuclearize the Korean peninsula and the fact there is no reason for it to have a nuclear program if military threats against the North are resolved and its regime is secure,” Chung said.

Reacting to the news, U.S. President Donald Trump tweeted: “We will see what happens!”

Chung cited the North as saying it would not carry out nuclear or missile tests while talks with the international community were under way. North Korea has not carried out any such tests since November last year.

“The North also said it can have frank talks with the United States on denuclearisation and the normalization of ties between North Korea and the United States,” Chung said.

The prospect of talks between the isolated North and the United States helped boost global stock markets, with the broadest gauge of global shares, MSCI’s All Country World Index, rising 0.6 percent and U.S. stock futures pointing to a higher opening on Wall Street.

TRADING THREATS

Washington and Pyongyang have been at loggerheads for months over the North’s nuclear and missile programs, with Trump and Kim Jong Un trading insults and threatening war. North Korea has regularly vowed never to give up its nuclear program, which it sees as an essential deterrent and “treasured sword” against U.S. plans for invasion.

The United States, which stations 28,500 troops in the South, a legacy of the Korean War, denies any such plans.

To ensure close communication, the two Koreas, whose 1950-53 conflict ended in a mere truce, not a peace treaty, will set up a hotline between South Korean President Moon Jae-in and Kim Jong Un, Chung said.

The last inter-Korean summit was in 2007 when late former president Roh Moo-hyun was in office.

The agreement came on the heels of a visit made by a 10-member South Korean delegation led by Chung to the North Korean capital, Pyongyang, on Monday in hopes of encouraging North Korea and the United States to talk to one another.

Kim Jong Un met senior South Korean government officials for the first time and said it was his “firm will to vigorously advance” inter-Korean ties and pursue reunification, the North’s official news agency said.

“Through this delegation visit, the South Korean government created a very important opportunity to manage North Korea’s nuclear and missile threats, prevent war on the Korean peninsula and create military trust going forward,” said Cheong Seong-chang, a senior research fellow at the Sejong Institute.

Tensions between the two Koreas eased during the Olympics in South Korea, where Moon hosted a high-level North Korean delegation and the two sides presented a joint women’s ice hockey team. Kim Jong Un had invited Moon to North Korea for a summit, which was the first such request from a North Korean leader to a South Korean president.

Some U.S. lawmakers reacted with cautious optimism to signs of an opening for dialogue.

“This is encouraging,” Democratic Senator Chris Coons said in an interview with MSNBC on Tuesday. “This suggests that diplomacy can be the follow on to confrontation.”

Republican Senator Jeff Flake told MSNBC: “This is encouraging news. It’s not definitive. I mean, I’m not sure that this will hold, but it is encouraging to see that they’re ready to talk.”

North Korean leader Kim Jong Un greets a member of the special delegation of South Korea's President at a dinner in this photo released by North Korea's Korean Central News Agency (KCNA) on March 6, 2018. KCNA/via Reuters

North Korean leader Kim Jong Un greets a member of the special delegation of South Korea’s President at a dinner in this photo released by North Korea’s Korean Central News Agency (KCNA) on March 6, 2018. KCNA/via Reuters

U.S.-S.KOREA DRILLS TO GO ON

North Korea has boasted of developing nuclear-tipped missiles capable of reaching the United States, in defiance of U.N. Security Council resolutions, but Pyongyang and Washington both say they want a diplomatic solution to the stand-off.

The first inter-Korean talks in more than two years were held early this year to bring North Korea to the Winter Olympics, when South Korea and the United States also postponed an annual joint large-scale military exercise that North Korea views as a preparation for invasion.

During this week’s visit, a senior Blue House official said North Korea was informed it was not feasible to postpone the joint military drills between South Korea and the United States again and that Kim Jong Un acknowledged the situation.

Kim Jong Un said he understood the drills, expected in April, would be of a similar scale seen in previous years, the official said. The North Korean leader also had a request for the world: that he be seriously acknowledged as a dialogue counterpart, said the official.

The South’s delegation leader, Chung, said he would travel to the United States to explain the outcome of the visit to North Korea and that he had a message from North Korea he would deliver to Trump.

Chung will later visit China and Russia, while Suh Hoon, the head of South Korea’s spy agency and another member of the delegation, will head to Japan.

The United States has said before it is open to talks but its position has been that dialogue must be aimed at North Korea’s denuclearisation, something Pyongyang has rejected.

Moon has also remained vigilant against North Korea’s weapons ambitions, saying on Tuesday South Korea should bolster its defenses in tandem with talks with Pyongyang.

The Pentagon has nevertheless said it was “cautiously optimistic” about the North-South talks, which resumed in January for the first time in two years.

(Reporting by Christine Kim; Additional reporting by Hyonhee Shin; Editing by Nick Macfie and Alex Richardson)

With an eye on Russia, U.S. to increase nuclear capabilities

National flags of Russia and the U.S. fly at Vnukovo International Airport in Moscow, Russia April 11, 2017.

By Idrees Ali

WASHINGTON (Reuters) – Concerned about Russia’s growing tactical nuclear weapons, the United States will expand its nuclear capabilities, a policy document released on Friday said, a move some critics say could increase the risk of miscalculation between the two countries.

It represents the latest sign of hardening resolve by President Donald Trump’s administration to address challenges from Russia, at the same time he is pushing for improved ties with Moscow to rein in a nuclear North Korea.

The focus on Russia is in line with the Pentagon shifting priorities from the fight against Islamist militants to “great power competition” with Moscow and Beijing.

“Our strategy will ensure Russia understands that any use of nuclear weapons, however limited, is unacceptable,” the document, known as the Nuclear Posture Review, said.

The rationale for building up new nuclear capabilities, U.S. officials said, is that Russia currently perceives the United States’ nuclear posture and capabilities as inadequate.

By expanding its own low-yield nuclear capability, the United States would deter Russia from using nuclear weapons, U.S. officials argue.

Low-yield nuclear weapons, while still devastating, have a strength of less than 20 kilotons. The atomic bomb dropped on Hiroshima had about the same explosive power.

The argument for these weapons is that larger nuclear bombs are so catastrophic that they would never be used and do not work as an effective deterrent. With less power and destruction, the low-yield option would potentially be more likely to be used, serving as an effective deterrent.

The Pentagon document, which is largely in line with the previous review in 2010, said the U.S. will modify a small number of submarine-launched ballistic missile warheads with low-yield options.

In the long term, the U.S. military will also develop a new nuclear-armed sea-launched cruise missile. The missile could have the less powerful option, but a decision has not been made, and will take up to a decade to develop, officials said.

Greg Weaver, deputy director of strategic capabilities at the Pentagon, said the United States would be willing to limit developing the missile if Russia would “redress the imbalance in non-strategic nuclear forces.”

Weaver said the most difficult task for those working on the review was trying to address the gap between Russian and American non-strategic nuclear weapons.

Russia has a stockpile of 2,000 non-strategic nuclear weapons, according to the Pentagon. The U.S. has a few hundred active low-yield weapons deployed in Europe.

RESPONDING TO RUSSIA

U.S. officials argue that since the last nuclear review, Russia has expanded and modernized its non-strategic nuclear weapons, annexed Crimea in 2014, and deployed a ground-launched cruise missile that breaches the 1987 Intermediate-range Nuclear Forces (INF) treaty. The treaty bans testing and fielding missiles with ranges of 500-5,500 kms (310-3,417 miles).

“The U.S. is not arms racing, we are responding to Russian initiative here,” Weaver said.

Some experts have questioned the expansion.

Jon Wolfsthal, a former top advisor to President Barack Obama on arms control, said there was a possibility that it could lead to a miscalculation.

“If we put nuclear weapons on cruise missiles and we launch conventional cruise missiles, how does Russia know that they are conventional?” he said.

The document argues that by developing U.S. nuclear responses, it raises the Russian threshold for using the weapons, rather than lowering the U.S. threshold.

Kingston Reif, director for disarmament research at the Arms Control Association advocacy group, said the document could bolster a new kind of arms race.

“It’s not an arms race in terms of numbers like during the Cold War, but is an arms race that involves more than just the United States and Russia and it involves upgrading and improving the capability of existing nuclear forces,” Reif said.

The review called for continuing the B-83 bomb, the largest nuclear weapon in the U.S. stockpile, until a replacement is found, reversing plans to retire it.

(Reporting by Idrees Ali; Editing by Yara Bayoumy and James Dalgleish)

Taliban active in 70 percent of Afghanistan, BBC study finds

Afghan security forces take position on a roof of a building the site of a blast and gunfire between Taliban and Afghan forces in PD 6 in Kabul, Afghanistan March 1, 2017.

WASHINGTON (Reuters) – The Taliban are openly active in 70 percent of Afghanistan’s districts, fully controlling 4 percent of the country and demonstrating an open physical presence in another 66 percent, according to a BBC study published on Tuesday.

The BBC estimate, which it said was based on conversations with more than 1,200 individual sources in all districts of the South Asian country, was significantly higher than the most recent assessment by the NATO-led coalition.

The coalition said on Tuesday that the Taliban contested or controlled only 44 percent of Afghan districts as of October 2017.

Afghanistan has been reeling over the past nine days from a renewed spate of violence that is adding scrutiny to the latest, more aggressive U.S.-backed strategy to bolster Afghan forces battling the Taliban in a 16-year-old war.

A bomb hidden in an ambulance struck the city center and killed more than 100 people, just over a week after an attack on the Hotel Intercontinental, also in Kabul, which left more than 20 people dead, including four U.S. citizens.

The BBC counted 399 districts in Afghanistan, but the NATO-led force counted 407. The reason for the discrepancy was not immediately clear.

The BBC study said the Afghan government controlled 122 districts, or about 30 percent of the country. Still, it noted, that did not mean that they were free from Taliban attacks.

“Kabul and other major cities, for example, suffered major attacks – launched from adjacent areas, or by sleeper cells – during the research period, as well as before and after,” the report said.

Asked about the BBC’s study, the Pentagon did not comment directly, but pointed to the latest figures by the NATO-led coalition asserting that about 56 percent of Afghanistan’s territory was under Afghan government control or influence.

Captain Thomas Gresback, a spokesman for the coalition in Kabul, said the BBC estimate overstated the militants’ “influence impact”.

“This is a criminal network, not a government in waiting,” Gresback said in an emailed statement.

“What really matters is not the number of districts held, but population controlled. RS assesses that around 12 percent of the population is actually under full Taliban control,” he said, referring to the Resolute Support mission.

The study by Britain’s public broadcaster quoted a spokesman for Afghan President Ashraf Ghani playing down the findings.

The BBC study also said Islamic State had a presence in 30 districts, but noted it did not fully control any of them.

(Reporting by Phil Stewart, addional reporting by Robert Birsel in KABUL; Editing by G Crosse and Nick Macfie)

Tech firms let Russia probe software widely used by U.S. government

A general view shows a building, which houses the office of HP Russia, in Moscow, Russia August 30, 2017.

By Dustin Volz, Joel Schectman and Jack Stubbs

WASHINGTON/MOSCOW (Reuters) – Major global technology providers SAP, Symantec and McAfee have allowed Russian authorities to hunt for vulnerabilities in software deeply embedded across the U.S. government, a Reuters investigation has found.

The practice potentially jeopardizes the security of computer networks in at least a dozen federal agencies, U.S. lawmakers and security experts said. It involves more companies and a broader swath of the government than previously reported.

In order to sell in the Russian market, the tech companies let a Russian defense agency scour the inner workings, or source code, of some of their products. Russian authorities say the reviews are necessary to detect flaws that could be exploited by hackers.

But those same products protect some of the most sensitive areas of the U.S government, including the Pentagon, NASA, the State Department, the FBI and the intelligence community, against hacking by sophisticated cyber adversaries like Russia.

Reuters revealed in October that Hewlett Packard Enterprise software known as ArcSight, used to help secure the Pentagon’s computers, had been reviewed by a Russian military contractor with close ties to Russia’s security services.

Now, a Reuters review of hundreds of U.S. federal procurement documents and Russian regulatory records shows that the potential risks to the U.S. government from Russian source code reviews are more widespread.

Beyond the Pentagon, ArcSight is used in at least seven other agencies, including the Office of the Director of National Intelligence and the State Department’s intelligence unit, the review showed. Additionally, products made by SAP, Symantec and McAfee and reviewed by Russian authorities are used in at least eight agencies. Some agencies use more than one of the four products.

McAfee, SAP, Symantec and Micro Focus, the British firm that now owns ArcSight, all said that any source code reviews were conducted under the software maker’s supervision in secure facilities where the code could not be removed or altered. The process does not compromise product security, they said. Amid growing concerns over the process, Symantec and McAfee no longer allow such reviews and Micro Focus moved to sharply restrict them late last year.

The Pentagon said in a previously unreported letter  to Democratic Senator Jeanne Shaheen that source code reviews by Russia and China “may aid such countries in discovering vulnerabilities in those products.”

Reuters has not found any instances where a source code review played a role in a cyberattack, and some security experts say hackers are more likely to find other ways to infiltrate network systems.

But the Pentagon is not alone in expressing concern. Private sector cyber experts, former U.S. security officials and some U.S. tech companies told Reuters that allowing Russia to review the source code may expose unknown vulnerabilities that could be used to undermine U.S. network defenses.

“Even letting people look at source code for a minute is incredibly dangerous,” said Steve Quane, executive vice president for network defense at Trend Micro, which sells TippingPoint security software to the U.S. military.

Worried about those risks to the U.S. government, Trend Micro has refused to allow the Russians to conduct a source code review of TippingPoint, Quane said.

Quane said top security researchers can quickly spot exploitable vulnerabilities just by examining source code.

“We know there are people who can do that, because we have people like that who work for us,” he said.

OPENING THE DOOR

Many of the Russian reviews have occurred since 2014, when U.S.-Russia relations plunged to new lows following Moscow’s annexation of Crimea. Western nations have accused Russia of sharply escalating its use of cyber attacks during that time, an allegation Moscow denies.

Some U.S. lawmakers worry source code reviews could be yet another entry point for Moscow to wage cyberattacks.

“I fear that access to our security infrastructure – whether it be overt or covert – by adversaries may have already opened the door to harmful security vulnerabilities,” Shaheen told Reuters.

In its Dec. 7 letter to Shaheen, the Pentagon said it was “exploring the feasibility” of requiring vendors to disclose when they have allowed foreign governments to access source code. Shaheen had questioned the Pentagon about the practice following the Reuters report on ArcSight, which also prompted Micro Focus to say it would restrict government source code reviews in the future. HPE said none of its current products have undergone Russian source code review.

Lamar Smith, the Republican chairman of the House Science, Space and Technology Committee, said legislation to better secure the federal cybersecurity supply chain was clearly needed.

Most U.S. government agencies declined to comment when asked whether they were aware technology installed within their networks had been inspected by Russian military contractors. Others said security was of paramount concern but that they could not comment on the use of specific software.

A Pentagon spokeswoman said it continually monitors the commercial technology it uses for security weaknesses.

NO PENCILS ALLOWED Tech companies wanting to access Russia’s large market are often required to seek certification for their products from Russian agencies, including the FSB security service and Russia’s Federal Service for Technical and Export Control (FSTEC), a defense agency tasked with countering cyber espionage.

FSTEC declined to comment and the FSB did not respond to requests for comment. The Kremlin referred all questions to the FSB and FSTEC.

FSTEC often requires companies to permit a Russian government contractor to test the software’s source code.

SAP HANA, a database system, underwent a source code review in order to obtain certification in 2016, according to Russian regulatory records. The software stores and analyzes information for the State Department, Internal Revenue Service, NASA and the Army.

An SAP spokeswoman said any source code reviews were conducted in a secure, company-supervised facility where recording devices or even pencils are “are strictly forbidden.”

“All governments and governmental organizations are treated the same with no exceptions,” the spokeswoman said.

While some companies have since stopped allowing Russia to review source code in their products, the same products often remain embedded in the U.S. government, which can take decades to upgrade technology.

Security concerns caused Symantec to halt all government source code reviews in 2016, the company’s chief executive told Reuters in October. But Symantec Endpoint Protection antivirus software, which was reviewed by Russia in 2012, remains in use by the Pentagon, the FBI, and the Social Security Administration, among other agencies, according to federal contracting records reviewed by Reuters.

In a statement, a Symantec spokeswoman said the newest version of Endpoint Protection, released in late 2016, never underwent a source code review and that the earlier version has received numerous updates since being tested by Russia. The California-based company said it had no reason to believe earlier reviews had compromised product security. Symantec continued to sell the older version through 2017 and will provide updates through 2019.

McAfee also announced last year that it would no longer allow government-mandated source code reviews.

The cyber firm’s Security Information and Event Management (SIEM) software was reviewed in 2015 by a Moscow-based government contractor, Echelon, on behalf of FSTEC, according to Russian regulatory documents. McAfee confirmed this.

The Treasury Department and Defense Security Service, a Pentagon agency tasked with guarding the military’s classified information, continue to rely on the product to protect their networks, contracting records show.

McAfee declined to comment, citing customer confidentiality agreements, but it has previously said the Russian reviews are conducted at company-owned premises in the United States.

‘YOU CAN’T TRUST ANYONE’

On its website, Echelon describes itself as an official laboratory of the FSB, FSTEC, and Russia’s defense ministry. Alexey Markov, the president of Echelon, which also inspected the source code for ArcSight, said U.S. companies often initially expressed concerns about the certification process.

“Did they have any? Absolutely!!” Markov wrote in an email.

“The less the person making the decision understands about programming, the more paranoia they have. However, in the process of clarifying the details of performing the certification procedure, the dangers and risks are smoothed out.”

Markov said his team always informs tech companies before handing over any discovered vulnerabilities to Russian authorities, allowing the firms to fix the detected flaw. The source code reviews of products “significantly improves their safety,” he said.

Chris Inglis, the former deputy director of the National Security Agency, the United States’ premier electronic spy agency, disagrees.

“When you’re sitting at the table with card sharks, you can’t trust anyone,” he said. “I wouldn’t show anybody the code.”

(Reporting by Dustin Volz and Joel Schectman in Washington and Jack Stubbs in Moscow.; Editing by Jonathan Weber and Ross Colvin)

As U.S. goes quiet on close naval patrols, China speaks out

An aerial photo taken though a glass window of a Philippine military plane shows the alleged on-going land reclamation by China on Mischief Reef in the Spratly Islands in the South China Sea, west of Palawan, Philippines, May 11, 2015.

By Greg Torode and Philip Wen

HONG KONG/BEIJING (Reuters) – While the Pentagon plays down patrols close to Chinese-controlled reefs and islands in the South China Sea, Beijing is sounding the alarm about them, seeking to justify what experts say will be an even greater presence in the disputed region.

Chinese officials publicized the latest U.S. “freedom of navigation patrol”, protesting the deployment last week of the destroyer USS Hopper to within 12 nautical miles of Scarborough Shoal, an atoll west of the Philippines which Beijing disputes with Manila.

It was the second time in recent months that confirmation of a patrol came from Beijing, not Washington, which had previously announced or leaked details.

Bonnie Glaser, a security expert at Washington’s Center for Strategic and International Studies, said while the administration of U.S. President Donald Trump had a policy of keeping the patrols regular but low key, China was willing to publicly exploit them to further their military ends.

“It is difficult to conclude otherwise,” she said. “Even as it pushes ahead with these (patrols), I don’t think the Trump administration has really come to terms with what it will tolerate from China in the South China Sea, and what it simply won’t accept, and Beijing seems to grasp this.”

In official statements, Chinese foreign ministry official Lu Kang said China would take “necessary measures to firmly safeguard its sovereignty” in the resource-rich sea.

Some regional diplomats and security analysts believe that will involve increased Chinese deployments and the quicker militarization of China’s expanded facilities across the Spratlys archipelago.

While U.S. officials did not target China in their comments, couching freedom-of-navigation patrols as a “routine” assertions of international law, Beijing was quick to cast Washington as the provocateur.

The Communist Party’s official People’s Daily newspaper on Monday accused the U.S. of upsetting recent peace and co-operation and “wantonly provoking trouble”, saying China had must now strengthen its presence in the strategic waterway.

CONSTRUCTION AND MILITARIZATION

In recent years, China has built up several reefs and islets into large-scale airstrips and bases as it seeks to assert and enforce its claims to much of the sea, through which some $3 trillion in trade passes annually. The Philippines, Vietnam, Malaysia and Brunei, as well as Taiwan, hold rival claims.

Chinese coastguard and People’s Liberation Army navy ships patrol vast swathes of the South China Sea, routinely shadowing U.S. and other international naval deployments, regional naval officers say.

Zhang Baohui, a mainland security analyst at Hong Kong’s Lingnan University, told Reuters he believed Beijing was rattled by Trump’s sharpening Asia strategy and they might be tempted to react in the South China Sea, even after months of relative calm.

“We can perhaps expect the Chinese to push ahead with militarization as retaliation,” he said.

A new U.S. national defense strategy unveiled last week stressed the need to counter the rising authoritarian powers of China and Russia, outlining a need to better support allies and newer partners against coercion.

While most analysts and regional envoys believe China remains keen to avoid an actual conflict with the significantly more powerful U.S. navy in the South China Sea, it is working to close the gap.

China has added bunkers, hangars and advanced radars on its new runways in the Spratlys, although it has not fully equipped them with the advanced surface-to-air and anti-ship missiles they use to protect the Paracels grouping further north.

Similarly, Beijing has yet to land jet fighters in the Spratlys – test flights some experts are expecting this year.

POTENTIAL FLASHPOINT

The latest patrol was at least the fifth such patrol under the Trump administration and the first to Scarborough – one of the more contentious features in the region.

Scarborough, once a U.S. bombing range, was blockaded by the Chinese in 2012, prompting the Philippines to launch its successful legal case in the Hague against China’s excessive territorial claims.

China allowed Filipino fishermen back to Scarborough’s rich waters last year, but it remains a potential flashpoint as both sides claim sovereignty and China maintains a steady presence of ships nearby.

While experts and regional envoys expect China to ramp up operations from the Spratlys, none expect it to build on Scarborough – something widely believed to be a red line that would provoke the United States, given its long-standing security treaty with the Philippines.

Shi Yinhong, who heads the Center for American Studies at Beijing’s Renmin University, said China had “lived with” U.S. patrols for several years but the key facts on the ground remained in China’s favor and broader tensions had “improved remarkably”.

“These islands, especially those with reclaimed land and military capability already deployed, they’re still in Chinese hands,” Shi, who has advised the Chinese government on diplomacy, told Reuters.

“I don’t think Trump has the stomach and the guts to change this fundamental status quo.”

 

(Reporting By Greg Torode in Hong Kong and Philip Wen in Beijing; Editing by Lincoln Feast)

Pentagon puts countering China, Russia at center of U.S. defense strategy

: Three F/A-18E Super Hornets fly in formation over the aircraft carriers USS Ronald Reagan (CVN 76), USS Theodore Roosevelt (CVN 71), USS Nimitz (CVN 68) and their strike groups along with ships from the Republic of Korea Navy as they transit the Western Pacific, November 12, 2017.

WASHINGTON (Reuters) – The U.S. military has put countering China and Russia at the heart of a new national defense strategy unveiled on Friday, the latest sign of shifting American priorities after more than a decade and a half of focusing on the fight against Islamist militants.

The strategy document, the first of its kind since at least 2014, sets priorities for the U.S. Defense Department that are expected to be reflected in future defense spending requests. The Pentagon released an unclassified, 11-page version of the document on Friday.

The so-called “National Defense Strategy” represents the latest sign of hardening resolve by President Donald Trump’s administration to address challenges from Russia and China, despite Trump’s calls for improved ties with Moscow and Beijing.

“It is increasingly clear that China and Russia want to shape a world consistent with their authoritarian model – gaining veto authority over other nations’ economic, diplomatic and security decisions,” the document said.

Elbridge Colby, deputy assistant secretary of defense for strategy and force development, said at a briefing with reporters that Russia was far more brazen than China in its use of military power.

Russia annexed Ukraine’s Crimean peninsula in 2014 and intervened militarily in Syria to support its ally, Syrian President Bashar al-Assad. Still, Moscow was limited by its economic resources, Colby said.

China, on the other hand, was described as economically and militarily ascendant by the document. It has embarked on far-reaching military modernization that Colby said was in “deep contravention to our interests.”

“This strategy really represents a fundamental shift to say, look, we have to get back, in a sense, to the basics of the potential for war and this strategy says the focus will be on prioritizing preparedness for war, in particular major power war,” he added.

The document also listed North Korea among the Pentagon’s top priorities, citing the need to focus U.S. missile defenses against the threat from Pyongyang, which beyond its nuclear weapons has also amassed an arsenal of biological, chemical, and conventional arms.

It said that while state actors would have to be countered, non-state actors like Islamist militants would continue to pose a threat.

The document said that international alliances would be critical for the U.S. military, by far the world’s best-resourced. But it also stressed a need for burden-sharing, an apparent nod to Trump’s public criticism of allies who he says unfairly take advantage of U.S. security guarantees.

(Reporting by Idrees Ali, Editing by Rosalba O’Brien)

Japan, U.S., South Korea to hold missile tracking drill amid North Korea crisis

North Korean leader Kim Jong Un gives field guidance to various units in Samjiyon County, in this photo released by North Korea's Korean Central News Agency (KCNA) in Pyongyang

TOKYO (Reuters) – The United States, Japan and South Korea will hold two days of missile tracking drills starting on Monday, Japan’s Maritime Self-Defence Force said, as tensions rise in the region over North Korea’s fast-developing weapons programmes.

The United States and South Korea conducted large-scale military drills last week, which the North said made the outbreak of war “an established fact”.

North Korea has fired missiles over Japan as it pursues nuclear weapons and ballistic missiles in defiance of U.N. sanctions and international condemnation. On Nov. 29, it test-fired an intercontinental ballistic missile which it said was its most advanced yet, capable of reaching the mainland United States.

This week’s exercises will be the sixth drills sharing information in tracking ballistic missiles among the three nations, the defence force said.

It did not say whether the controversial THAAD system would be involved. The installation of the U.S. Terminal High Altitude Area Defense system in South Korea has angered China, which fears its powerful radar could look deep into China and threaten its own security.

North Korea’s missile test last month prompted a U.S. warning that North Korea’s leadership would be “utterly destroyed” if war were to break out. The Pentagon has mounted repeated shows of force after North Korean tests.

The United States has also pressured China and other nations to cut trade and diplomatic ties with North Korea, as part of international efforts to dry up Pyongyang’s illegal cash flows that could fund its weapons programmes.

On Sunday, South Korea said it would impose new unilateral sanctions on 20 institutions and a dozen individuals in North Korea, barring any financial transactions between those sanctioned and any South Koreans.

“This unilateral sanction will prevent illegal funds flowing to North Korea and contribute to reinforce international communities’ sanctions against North Korea,” South Korea’s finance ministry said in a statement.

The move is largely symbolic as trade and financial exchanges between the two Koreas have been barred since May 2010 following the torpedoing of a South Korean warship, which the North denied.

Japanese Defence Minister Itsunori Onodera said the ministry plans to include 730 million yen ($6.4 million) to help build a new missile interceptor system, the Aegis Ashore, in its next fiscal year budget request, public broadcaster NHK reported.

North Korea regularly threatens to destroy South Korea, Japan and the United States and says its weapons programmes are necessary to counter U.S. aggression. The United States stations 28,500 troops in the South, a legacy of the 1950-53 Korean War.

($1 = 113.4800 yen)

(Reporting by Kaori Kaneko, additional reporting by Haejin Choi in SEOUL, Editing by Nick Macfie)