South China Sea code of conduct talks to be ‘stabilizer’ for region: China premier

South China Sea code of conduct talks to be 'stabilizer' for region: China premier

MANILA (Reuters) – China’s agreement to begin discussions with the Association of Southeast Asian Nations (ASEAN) on the fine print of a code of conduct framework for the disputed South China Sea will be a “stabilizer” for the region, Chinese Premier Li Keqiang said.

“China’s greatest hope is for peace and stability in the South China Sea,” Li told ASEAN leaders in Manila.

Southeast Asia and China foreign ministers in August adopted a negotiating framework for a code of conduct in the South China Sea, a move they hailed as progress but seen by critics as a tactic to buy China time to consolidate its maritime power.

Li, addressing leaders of ASEAN grouping during a summit in the Philippines capital Manila on Monday, said there was a consensus on moving forward and to try to peacefully resolve the thorny issue.

“We hope the talks on the code of conduct will bolster mutual understanding and trust. We will strive under the agreement, to reach a consensus on achieving early implementation of the code of conduct,” Li said, according to a transcript of his speech released by China’s Foreign Ministry on Tuesday.

Li didn’t give a timeframe, but said he hoped this move would be a “stabilizer” for the region.

Critics say the agreement to talk on the details of the code of conduct is only an incremental move, with a final agreement not likely anytime soon. Despite a period of relative stability in the South China Sea, some countries at the summit said this shouldn’t be taken for granted.

The framework seeks to advance a 2002 Declaration of Conduct (DOC) of Parties in the South China Sea, which has mostly been ignored by claimant states, particularly China, which has built seven manmade islands in disputed waters, three of which are equipped with runways, surface-to-air missiles and radars.

All parties say the framework is only an outline for how the code will be established but critics say the failure to outline as an initial objective the need to make the code legally binding and enforceable, or have a dispute resolution mechanism, raises doubts about how effective the pact will be.

Signing China up to a legally binding and enforceable code for the strategic waterway has long been a goal for claimant members of ASEAN, some of which have sparred for years over what they see as China’s disregard for their sovereign rights and its blocking of fishermen and energy exploration efforts.

Malaysia, Taiwan, Brunei, Vietnam and the Philippines all claim some or all of the South China Sea and its myriad shoals, reefs and islands.

(Reporting by James Pomfret in Manila; Editing by Michael Perry)

Russia, China, others boycott U.S. meeting at U.N. on Venezuela

Russia, China, others boycott U.S. meeting at U.N. on Venezuela

By Michelle Nichols

UNITED NATIONS (Reuters) – Russia, China, Egypt and Bolivia boycotted an informal public United Nations Security Council meeting on Venezuela on Monday organized by the United States, saying the 15-member body should not be involved in the situation.

“The issue is about meddling with the internal domestic affairs of Venezuela,” Russian U.N. Ambassador Vassily Nebenzia told reporters, adding that he hoped the country could settle its issues peacefully without any external interference.

U.S. Ambassador to the United Nations Nikki Haley told the meeting: “The fact that the (Venezuelan) government would go so far as to try and get people not to show up to a meeting is guilt. And that’s unfortunate.”

Venezuela is suffering from a harsh economic crisis and President Nicolas Maduro’s government has clamped down on the opposition, jailing or otherwise barring from office many dissenting leaders and activists.

Dozens of people have died in violence since the opposition began a sustained wave of protests in April. Met by rubber bullets, water cannon and tear gas fired by the National Guard, the protesters say the crisis demands an early presidential election that they are sure Maduro would lose.

His popularity has been pounded lower by triple-digit inflation and acute food and medicine shortages.

“We received pressure from regional partners not to have this meeting,” Haley said. “This goal is not to degrade anyone. This is not to humiliate a region. This is only to lift up the region.”

Uruguay’s Deputy U.N. Ambassador Luis Bermudez attended the U.N. meeting, but said his country did not believe the situation in Venezuela was a threat to international peace and security.

Venezuela’s U.N. Ambassador Rafael Dario Ramirez spoke to reporters as the meeting was being held, flanked by Nebenzia, Chinese Deputy U.N. Ambassador Wu Haitao and Bolivian U.N. Ambassador Sacha Sergio Llorentty Soliz.

“The meeting is a hostile and clearly interfering act of the United States that undermines the principle of sovereignty of a member state of the U.N.,” Ramirez said. “We condemn this act of political manipulation.”

European Union foreign ministers approved economic sanctions, including an arms embargo, on Venezuela on Monday, saying regional elections last month marred by reported irregularities had deepened the country’s crisis.

The United States has also imposed targeted sanctions on top Venezuelan officials.

The U.N. Security Council also met behind closed doors in May, at Washington’s request, to discuss the crisis in Venezuela.

(Reporting by Michelle Nichols; Editing by James Dalgleish)

Erdogan swipes at Russia, U.S. missions in Syria

Erdogan swipes at Russia, U.S. missions in Syria

ANKARA/SOCHI (Reuters) – Turkish President Tayyip Erdogan took swipes at U.S. and Russian interventions in Syria on Monday and said if countries truly believed a military solution was impossible, they should withdraw their troops.

Russian President Vladimir Putin and his U.S. counterpart Donald Trump said in a joint statement on Saturday they would continue to fight against Islamic State in Syria, while agreeing that there was no military solution to the country’s wider, six-year-old conflict.

“I am having trouble understanding these comments,” Erdogan told reporters before flying to Russia for talks with Putin. “If a military solution is out of the question, then those who say this should pull their troops out.

“Then a political method should be sought in Syria, ways to head into elections should be examined… We will discuss these with Putin,” he said.

After more than four hours of talks with Putin in the southern Russian resort of Sochi, Erdogan said the two leaders had agreed to focus on a political solution to the conflict.

“We agreed that the grounds to focus on a political solution (in Syria) have been formed,” he said.

Putin said Russia would continue to work on Syria with Turkey and their efforts were yielding results: “The level of violence has definitely been reduced, favorable conditions are being created for the progression of a inter-Syrian dialogue.”

Neither leader went into more specific detail. Asked if the two discussed Erdogan’s earlier comments, Kremlin spokesman Dmitry Peskov said the talks were about more complex issues which could not be made public, according to RIA news agency.

Turkey has been annoyed by both Russian and U.S. missions in Syria. Before his trip to Russia, Erdogan said both Moscow, which backs President Bashar al-Assad, and Washington, which armed Syrian YPG Kurdish forces Ankara sees as allied to separatists fighting in southeastern Turkey, had set up bases.

“The United States said it would completely leave Iraq, but it didn’t. The world is not stupid, some realities are being told differently and practiced differently,” he said.

He said the United States had 13 bases in Syria and Russia had five. The YPG has said Washington has established seven military bases in areas of northern Syria. The U.S.-led coalition says it does not discuss the location of its forces.

Russia has been a strong supporter of Assad, whose removal Erdogan has demanded, and Moscow’s military intervention two years ago helped turn the conflict in the Syrian president’s favor.

Turkish troops have also fought in Syria to halt the advance of Kurdish YPG forces along its frontier.

“We attach great importance to the joint steps Turkey and Russia will take on (the) defense industry,” Erdogan said.

His remarks follow Turkey’s recently completed purchase of Russian S-400 surface-to-air missile systems, a defense deal that Turkey’s Western allies see as a snub to the NATO alliance.

The weapon cannot be integrated into NATO defenses.

Ankara says it is making agreements with the Franco-Italian EUROSAM consortium to develop, produce and use its own sources for air defense system.

(Reporting by Tuvan Gumrukcu and Ece Toksabay in ANKARA, Olesya Astakhova in SOCHI and Ezgi Erkoyun in Istanbul; Writing by Dominic Evans and Jack Stubbs; Editing by Ralph Boulton and Peter Graff, William Maclean)

North Korea nuclear arsenal too developed to destroy quickly, says Moon

North Korea nuclear arsenal too developed to destroy quickly, says Moon

By Christine Kim

SEOUL (Reuters) – South Korean President Moon Jae-in said on Tuesday it would not be easy for reclusive North Korea to destroy its nuclear arsenal quickly, even if wanted to, given its weapons programs were so developed.

North Korea is under heavy international pressure to end its weapons programs, pursued in defiance of U.N. Security Council resolutions. But it has vowed never to give up its nuclear arsenal.

Speaking to reporters in the Philippines, Moon said that if North Korea agreed to hold talks, negotiations could be held with all options open.

“If talks begin to resolve the North Korea nuclear issue, I feel it will be realistically difficult for North Korea to completely destroy its nuclear capabilities when their nuclear and missile arsenal are at a developed stage,” Moon said in a briefing.

“If so, North Korea’s nuclear program should be suspended, and negotiations could go on to pursue complete denuclearization.”

Moon’s remarks were made available by the presidential Blue House.

Last week, the North said it did not oppose dialogue, but would “never put the issue related to the supreme interests of the DPRK and security of its people on the bargaining table”.

“We are not interested in such dialogue and negotiations in the least,” the North’s official news agency said, referring to the country by its official name, the Democratic People’s Republic of Korea.

The North defends the programs as a necessary defense against U.S. plans to invade. The United States, which has 28,500 troops in South Korea, a legacy of the 1950-53 Korean war, denies any such intention.

U.S. President Donald Trump has traded insults and threats with North Korean leader Kim Jong Un as North Korea races toward its goal of developing a nuclear-tipped missile capable of reaching the United States.

Trump threatened in his maiden U.N. address to “totally destroy” North Korea if the United States was threatened and has said the time for talking, the policy of previous U.S. administrations, is over.

Moon reiterated his stance that now was the time to increase pressure on North Korea so that it would come to talks.

He said differences in understanding between South Korea and China, North Korea’s lone major ally, regarding the deployment of the U.S. Terminal High Altitude Area Defense (THAAD) system on South Koran soil had not been resolved.

“China has not said it has changed its stance to agree to THAAD and still says THAAD infringes on its security. We have, in turn, explained THAAD is not aimed at China but only toward curbing North Korea’s nuclear and missile provocations,” he said.

Last month, South Korea and China agreed to end a year-long standoff over THAAD which had seen South Korean companies doing business in China suffer from retaliation against the system’s deployment.

(Reporting by Christine Kim; Editing by Nick Macfie)

Jailed German-Turkish reporter sees Turkey drifting toward fascism

Jailed German-Turkish reporter sees Turkey drifting toward fascism

BERLIN (Reuters) – Deniz Yucel, a German-Turkish journalist detained by Ankara since February, has accused Turkish President Tayyip Erdogan of subjecting his entire society to a “regime of fear” and said Turkey is drifting toward fascism.

Yucel, 44, a correspondent for the newspaper Die Welt, made the remarks in a lengthy interview with the German newspaper die tageszeitung to be published on Saturday.

Turkish authorities arrested Yucel, on Feb. 14 on charges of propaganda in support of a terrorist organization, during a wave of arrests prompted by a failed coup attempt in July 2016.

Germany is backing a complaint filed by Yucel with the European Court of Human Rights, and has repeatedly called for him and other Germans being held in Turkey to be released.

The detentions have contributed to a sharp deterioration in relations between the two NATO allies.

In total, Ankara has jailed more than 50,000 people pending trial and suspended or dismissed some 150,000 state workers including teachers, judges and soldiers since the coup, which Turkey blames on the movement of U.S-based cleric Fethullah Gulen. Gulen has denied any role, and condemned the coup.

Yucel told the newspaper he remained in solitary confinement at Silivri prison, west of Istanbul. “Solitary confinement is torture,” he said.

Yucel also said that even his prison guards were afraid of making a wrong move: “A regime of fear is not directed solely at its critics, but also affects members of the oppressive apparatus.”

He said Erdogan himself had the most to fear: “He knows what to expect if he loses power, and that is why he is subjecting the whole society to his regime of fear.”

Yucel said he hoped the European Court would act quickly on his case after a Nov. 28 deadline for Turkey to submit its position, but that he was not sure what to expect.

He said that, like many of Erdogan’s critics, he was disappointed that the court had rejected cases brought by teachers and government workers affected by the crackdown, which Erdogan says is necessary to guarantee Turkey’s stability.

“But I also know the European Court of Human Rights was founded to deal with individual human rights violations, not to stop a whole country drifting into fascism,” he said.

The newspaper said the interview had been conducted in writing via Yucel’s lawyers.

(Reporting by Andrea Shalal; Editing by Kevin Liffey)

Middle East tensions loom over Dubai aerospace pageant

Al Fursan, the UAE Air Force performs during Dubai Airshow November 8, 2015. REUTERS/Ahmed Jadallah/File Photo

By Alexander Cornwell and Tim Hepher

DUBAI (Reuters) – Rising Middle East tensions and a corruption crackdown in Saudi Arabia will cast a shadow over next week’s Dubai Airshow, as military and aerospace leaders try to gauge whether they might prolong a weapons-buying spree in the region.

Fraying business confidence since the summer, when a sudden rift emerged between Arab powers, means the recent rapid growth of major Gulf airlines will also be under scrutiny when the Middle East’s largest industry showcase opens on Sunday.

The biennial gathering has produced a frenzy of deals in the past, especially four years ago when Dubai’s Emirates and Qatar Airways opened the show with a display of unity as they unveiled a headline-grabbing order for passenger jets.

But highlighting the current rift between Qatar and Arab nations including the United Arab Emirates, Qatar Airways’ outspoken chief executive will not be at the show, which has also been overshadowed by political upheaval in Saudi Arabia.

Distrust between Arab Gulf states, on top of escalating tensions between regional arch-rivals Saudi Arabia and Iran, is likely to keep defense spending high on the agenda at the Nov 12-16 event, to be attended by dozens of military delegates.

Saudi Arabia and allies are exploring increases in missile defenses following ballistic missile tests in Iran, which have been heavily criticized by Saudi Arabia and the United States.

Iran views its ballistic missile program as an essential precautionary defense.

“The hot area for the Middle East has been air defense,” said Sash Tusa, aerospace analyst at UK-based Agency Partners.

“While the issue of Iran’s missile tests is new, demand from the Emirates and Saudi Arabia already reflects the fact that they have been at war, in some cases on two fronts, for over two years.”

Saudi Arabia and Iran are facing off in proxy wars in Yemen and Syria. Saudi Arabia, which recently committed to tens of billions of dollars of U.S. equipment, says it has intercepted a missile fired from Yemen over Saudi capital Riyadh.

 

SAUDI CRACKDOWN

Few defense deals get signed at the show itself, but it is seen as a major opportunity to test the mood of arms buyers and their mainly Western suppliers.

But analysts say the way of doing business is up for discussion after an unprecedented crackdown on corruption in Saudi Arabia that erupted days before the show’s opening.

“The big question on many multinational company minds now … {is} will they will change the way in which decision making works when it comes to purchases of their equipment and services,” said Sorana Parvulescu, partner at Control Risks in Dubai.

Those detained in the crackdown include billionaire Prince Alwaleed bin Talal, whose Kingdom Holding part owns Saudi Arabia’s second biggest airline flynas, and Prince Miteb bin Abdullah, head of the country’s elite internal security forces.

“There will be questions around how does this impact their (foreign firms) model of operations in the country and their market share and their market position,” Parvulescu said.

Airbus and Boeing will be pushing hard for new deals on the civil side of the show at Dubai’s future mega-airport, after a pause for breath at the last edition in 2015. Boeing goes into the event with a wide lead in this year’s order race.

Emirates, the region’s biggest carrier, is expected to finalize an additional order for Airbus A380s, which if secured could be crucial to extending the costly superjumbo program.

After years of expansion, some analysts are questioning the viability of the Gulf hub model, which has seen three airlines, Emirates, Etihad Airways, and Qatar Airways, emerge as some of the world’s most influential after taking advantage of their geographic location of connecting east and west.

Leasing executives have also raised doubts over whether the Big Three will take delivery of all of the more than 500 wide-body jets currently on order from Airbus and Boeing.

In September, Middle Eastern carriers saw their slowest rate of international demand growth in over eight years.

 

(Reporting by Alexander Cornwell and Tim Hepher; Editing by Mark Potter)

 

Putin says doping allegations against Russia meant to stir discontent

Putin says doping allegations against Russia meant to stir discontent

By Polina Nikolskaya

MOSCOW (Reuters) – Russian President Vladimir Putin suggested on Thursday that allegations of a state-sponsored doping program in Russia were an attempt to sow discontent ahead of the country’s presidential elections.

Reports commissioned by the World Anti-Doping Agency (WADA) have raised allegations of the existence of a state-run program that included tampering with Russian athletes’ positive tests by laboratory and security officials at the 2014 Sochi Games.

The International Olympic Committee (IOC) is now investigating the allegations and has banned six cross-country skiers for life from the Olympics over doping violations at Sochi.

“This is what is bothering me: the (Pyeongchang Winter) Olympics start in February, and when are our presidential elections? In March,” RIA Novosti state news agency quoted Putin as saying.

“There are big suspicions that all this is being done to create for someone the necessary conditions for discontent among sport lovers, athletes.”

Putin, widely expected to stand in and win the elections, also suggested the United States’ influence in international sports organizations could be having a deleterious effect on Russia.

Putin said the United States was home to “the main companies that order and pay for television rights, the main sponsors and advertisers” of major sporting events.

“In retaliation for our alleged meddling in their election, they (the United States) want to create problems in the election of the president of Russia,” Putin said.

Last month, Putin said the IOC was being pressured by the United States to prevent Russia taking part in the 2018 Pyeongchang Winter Olympics.

Russia escaped a blanket ban at the 2016 Olympics in Rio de Janeiro although it was, and remains, barred from competing in international athletics events.

The country’s Paralympic Committee and anti-doping agency RUSADA are also still suspended over the doping scandals.

Despite repeated calls for cooperation with international bodies to help rid Russia of doping, the authorities have always denied the state’s role in the scandal.

The IOC has said it will decide during its executive board meeting being held on Dec. 5-7 on the participation of Russian competitors at the 2018 winter games.

(Reporting by Polina Nikolskaya; Writing by Gabrielle Tétrault-Farber; Editing by Ralph Boulton)

At North Korea’s doorstep, Trump warns of U.S. power while also striking conciliatory note

At North Korea's doorstep, Trump warns of U.S. power while also striking conciliatory note

By Steve Holland, Matt Spetalnick and Christine Kim

SEOUL (Reuters) – President Donald Trump on Tuesday warned North Korea he was prepared to use the full range of U.S. military power to stop any attack, but in a more conciliatory appeal than ever before he urged Pyongyang to “make a deal” to end the nuclear standoff.

Speaking on North Korea’s doorstep during a visit to Seoul, Trump said that while “we hope to God” not to have to resort to the use of full U.S. military might, he was ready to do whatever was necessary to prevent the “North Korean dictator” from threatening millions of lives.

“We cannot allow North Korea to threaten all that we have built,” Trump said after talks with South Korean President Moon Jae-in, who has supported diplomatic outreach to Pyongyang.

But at times taking a more measured, less confrontational tone, Trump also urged North Korea to “do the right thing” and added that: “I do see some movement,” though he declined to elaborate.

“It really makes sense for North Korea to come to the table and make a deal,” Trump told reporters at a joint news conference with Moon.

Despite Trump’s renewed threats against North Korea, it was a far cry from the more strident approach he has pursued in recent months, including his previous dismissal of any diplomatic efforts with Pyongyang as a waste of time.

North Korean leader Kim Jong Un has made clear, however, that he has little interest in negotiations, at least until he has developed a nuclear-tipped missile capable of hitting the U.S. mainland.

Landing earlier at Osan Air Base outside Seoul, the president and First Lady Melania Trump stepped down from Air Force One onto a red carpet as he began a 24-hour visit that could aggravate tension with North Korea.

He then flew by helicopter to Camp Humphreys, the largest U.S. military base in the country, and met U.S. and South Korean troops, along with Moon.

The White House billed Trump’s trip as intended to demonstrate U.S. resolve over a hardline approach to the North Korean nuclear and missile threats.

But many in the region had expressed fear that any further bellicose rhetoric by Trump toward Pyongyang could increase the potential for a devastating military conflict.

TRUMP PRAISE FOR MOON

Trump praised Moon for “great cooperation” despite differences in the past over how to confront North Korea and over a trade pact between the United States and South Korea.

At the news conference, the leaders said they had agreed to renegotiate the trade agreement in a timely fashion.

In formal talks after an elaborate welcoming ceremony outside the presidential Blue House in Seoul, Moon told Trump he hoped his visit would relieve some of South Koreans’ anxiety over North Korea.

Pyongyang’s recent nuclear and missile tests in defiance of U.N. resolutions and an exchange of insults between Trump and Kim have raised the stakes in the most critical international challenge of Trump’s presidency.

At the news conference, Trump said Pyongyang must understand the “unparalleled strength” that Washington had at its disposal.

He cited three U.S. aircraft carrier strike groups that are converging on the Western Pacific for exercises as well as a nuclear submarine he said was also in position.

Trump has rattled some U.S. allies with his vow to “totally destroy” North Korea if it threatens the United States and by deriding Kim as a “Rocket Man on a suicide mission.”

Kim responded by calling Trump a “mentally deranged U.S. dotard.”

Trump’s senior aides privately have since urged him to avoid “personalizing” the conflict any further, U.S. officials say.

On the second leg of his five-nation trip, Trump toured the sprawling Camp Humphreys garrison, which lies about 100 km (60 miles) from the border with reclusive North Korea, and met commanders and troops.

The base visit gave him a first-hand view of the massive military assets the United States has in place in South Korea, but it also could serve as a reminder of the cost in U.S. military lives – as well as the potential massive South Korean civilian losses – if the current crisis spirals into war.

“MAY YOUR DREAMS COME TRUE”

Trump wrapped up his first day with a dinner hosted at the Blue House, dining on grilled sole, beef ribs and chocolate cake while being serenaded by a K-pop singer with an orchestra in the background.

“Mr President, may your dreams come true,” Trump said to Moon, raising his glass in a toast.

North Korea has not conducted a missile test for 53 days, the longest such lull in testing this year. North Korean state media has not commented on Trump’s arrival in the South.

South Korea’s spy agency said last week that North Korea may be preparing another missile test, raising speculation that such a launch could be timed for Trump’s trip to the region.

U.S. officials have said privately that intercepting a test missile is among options under consideration, though there is disagreement within the administration about the risks.

Trump had previously criticized Moon over his support for diplomatic engagement with Pyongyang – something the U.S. president once called “appeasement” – but both leaders used Tuesday’s news conference to stress common ground.

Moon urged maximum pressure from sanctions against North Korea to force it to negotiate abandonment of its nuclear program, something Pyongyang says it will never give up.

Several hundred supporters and protesters lined the streets of downtown Seoul as Trump’s motorcade passed by en route to the Blue House, waving flags and posters, with some saying, “No Trump, No War, Yes Peace,” while others cheered, “Trump! Trump!”

will deliver a speech on Wednesday to South Korea’s National Assembly expected to focus heavily on his North Korea policy, which has stressed sanctions and military pressure instead of diplomatic engagement with Pyongyang.

The North accuses the United States, which has 28,500 troops in South Korea, a legacy of the 1950-53 Korean war, of planning to invade and regularly threatens to destroy it and its Asian allies. Washington denies any such intention.

(Additional reporting by Soyoung Kim, James Pearson, Josh Smith and Hyonhee Shin in Seoul, Phil Stewart and Idrees Ali in Washington; writing by Matt Spetalnick; Editing by Clarence Fernandez and Nick Macfie)

China, South Korea agree to mend ties after THAAD standoff

China, South Korea agree to mend ties after THAAD standoff

By Christine Kim and Ben Blanchard

SEOUL/BEIJING (Reuters) – Seoul and Beijing on Tuesday agreed to move beyond a year-long stand-off over the deployment of a U.S. anti-missile system in South Korea, a dispute that has been devastating to South Korean businesses that rely on Chinese consumers.

The unexpected detente comes just days before U.S. President Donald Trump begins a trip to Asia, where the North Korean nuclear crisis will take center stage, and helped propel South Korean stocks to a record high.

The installation of the U.S. Terminal High Altitude Area Defense (THAAD) system had angered China, with South Korea’s tourism, cosmetics and entertainment industries bearing the brunt of a Chinese backlash, although Beijing has never specifically linked that to the THAAD deployment.

Beijing worries the THAAD system’s powerful radar can penetrate into Chinese territory.

“Both sides shared the view that the strengthening of exchange and cooperation between Korea and China serves their common interests and agreed to expeditiously bring exchange and cooperation in all areas back on a normal development track,” South Korea’s foreign ministry said in a statement.

Before the THAAD dispute, bilateral relations flourished, despite Beijing’s historic alliance with North Korea and Seoul’s close ties with Washington, which includes hosting 28,500 U.S. troops. China is South Korea’s biggest trading partner.

“At this critical moment all stakeholders should be working together to address the North Korea nuclear challenge instead of creating problems for others,” said Wang Dong, associate professor of international studies at China’s Peking University.

“This sends a very positive signal that Beijing and Seoul are determined to improve their relations.”

As part of the agreement, South Korean President Moon Jae-in will meet Chinese President Xi Jinping on the sidelines of the summit of Asia-Pacific Economic Cooperation (APEC) countries in Vietnam on Nov. 10-11.

South Korea recognized China’s concerns over THAAD and made it clear the deployment was not aimed at any third country and did not harm China’s strategic security interests, China’s foreign ministry said.

China reiterated its opposition to the deployment of THAAD, but noted South Korea’s position and hoped South Korea could appropriately handle the issue, it added.

“China’s position on the THAAD issue is clear, consistent and has not changed,” Chinese Foreign Ministry spokeswoman Hua Chunying told a daily briefing in Beijing.

RETAIL RELIEF

The thaw is a big relief for South Korean tourism and retail firms as well as K-pop stars and makers of films and soap operas, which had found themselves unofficially unwelcome in China over the past year.

In South Korea, a halving of inbound Chinese tourists in the first nine months of the year cost the economy $6.5 billion in lost revenue based on the average spending of Chinese visitors in 2016, data from the Korea Tourism Organization shows.

The spat knocked about 0.4 percentage points off this year’s expected economic growth, according to the Bank of Korea, which now forecasts an expansion of 3 percent.

The sprawling Lotte Group, which provided the land where the THAAD battery was installed and is a major operator of hotels and duty free stores, has been hardest hit. It faces a costly overhaul and is expected to sell its Chinese hypermarket stores for a fraction of what it invested.

A spokesman for holding company Lotte Corp expressed hope that South Korean firms’ activity in China would improve following the announcement.

An official at Seoul’s presidential Blue House, who declined to be named given the sensitivity of the matter, said improvements for South Korean companies would come slowly.

Shares in South Korean tourism and retail companies rallied nonetheless, with Asiana Airlines gaining 3.6 percent and Lotte Shopping up 7.14 percent. The benchmark Kospi index hit a record for a third straight day, gaining 0.9 percent.

China has grown increasingly angry with North Korea’s ongoing pursuit of nuclear weapons and ballistic missiles in defiance of United Nations sanctions, even as it chafes at U.S. pressure to rein in its isolated ally.

NORTH KOREA TENSIONS

The recent deterioration in ties between China and North Korea may have contributed to Tuesday’s agreement, the Blue House official said.

Pyongyang has undertaken an unprecedented missile testing program in recent months, as well as its biggest nuclear test yet in early September, as it seeks to develop a powerful nuclear weapon capable of reaching the United States.

The head of NATO on Tuesday urged all United Nations members to fully and transparently implement sanctions against North Korea.

“North Korea’s ballistic and nuclear tests are an affront to the United Nations Security Council,” NATO Secretary General Jens Stoltenberg said in Tokyo, where he met Japanese Prime Minister Shinzo Abe.

Separately, a South Korean lawmaker said North Korea probably stole South Korean warship blueprints after hacking into a local shipbuilder’s database last April.

Expectations had been growing for a warming in the frosty bilateral ties following this month’s conclave of China’s Communist Party, during which Xi cemented his status as China’s most powerful leader after Mao Zedong.

Earlier this month, South Korea and China agreed to renew a $56 billion currency swap agreement, while Chinese airlines are reportedly planning to restore flight routes to South Korea that had been cut during the spat.

Tuesday’s agreement came after high-level talks led by Nam Gwan-pyo, deputy director of national security of the Blue House, and Kong Xuanyou, assistant foreign minister of China and the country’s special envoy for North Korea-related matters.

(Reporting by Christine Kim and Hyonhee Shin in SEOUL and Ben Blanchard in BEIJING, with additional reporting by Dahee Kim and Joyce Lee; Writing by Tony Munroe; Editing by Lincoln Feast and Ian Geoghegan)

Turkey’s Erdogan takes legal action after lawmaker calls him ‘fascist dictator’

Turkey's Erdogan takes legal action after lawmaker calls him 'fascist dictator'

ISTANBUL (Reuters) – President Tayyip Erdogan filed a criminal complaint against a prominent opposition lawmaker on Tuesday, one of Erdogan’s lawyers said, after the deputy called the Turkish leader a fascist dictator.

In blistering criticism of Erdogan, the spokesman for the main opposition Republican People’s Party, Bulent Tezcan, attacked what he said was a “fearful atmosphere” in Turkey.

Erdogan’s lawyer, Huseyin Aydin, said on Twitter: “We have filed a legal petition concerning Bulent Tezcan with the Ankara chief prosecutor’s office for the crime of insulting the president.” Aydin also posted photos of the petition.

“The suspect’s statements are part of a new campaign against our president and cannot be interpreted as an isolated incident,” the petition said, saying such a campaign had also been launched ahead of last year’s attempted coup.

In a speech on Monday in the western city of Tekirdag, criticizing local judicial authorities, Tezcan had said: “If you try to scare people and to create a fearful atmosphere by showing legal words as illegal ones we will not be deterred.”

His comments appeared to be in defense of the local mayor, a CHP member, who was questioned by authorities this month after he reportedly called Erdogan a “dictator” at a party congress.

“I don’t know if our mayor said that or not. I, here in Tekirdag, say it now: ‘Erdogan is a fascist dictator’,” Tezcan said.

His comments prompted a swift backlash from Erdogan’s office and lawmakers from his ruling AK Party, with Erdogan’s spokesman Ibrahim Kalin saying his “hate speech is an example of disgrace for the main opposition”.

Insulting the president is a crime punishable by up to four years in prison in Turkey.

Lawyers for Erdogan, who has dominated Turkish politics for more than a decade, have filed more than 1,800 cases against people including cartoonists, a former Miss Turkey winner and school children on accusations of insulting him.

Following the failed coup of July 15 last year, Erdogan said he would drop outstanding suits, in a one-off gesture.

Nonetheless, rights groups and some Western governments have voiced concern that Turkey is sliding toward authoritarianism. Some 150,000 people have been sacked or suspended from their jobs and more than 50,000 jailed pending trial on suspicion of links to the failed coup.

Erdogan says such measures are necessary to ensure stability and defend Turkey from multiple security threats.

 

(Reporting by Gulsen Solaker; Writing by Daren Butler; Editing by Paul Tait and David Dolan)