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Trump breaks ice with China’s Xi in letter seeking ‘constructive’ ties

By Ben Blanchard and Eric Walsh

BEIJING/WASHINGTON (Reuters) – U.S. President Donald Trump has broken the ice with Chinese President Xi Jinping in a letter that said he looked forward to working with him to develop relations, although the pair haven’t spoken directly since Trump took office.

The letter thanked Xi for his congratulatory note on Trump’s inauguration and wished the Chinese people a prosperous Lunar New Year of the Rooster, the White House said in a statement on Wednesday.

“President Trump stated that he looks forward to working with President Xi to develop a constructive relationship that benefits both the United States and China,” it said.

China said on Thursday it attached great importance to China-U.S. ties.

“We highly appreciate President Trump’s holiday greetings to President Xi Jinping and the Chinese people,” Chinese Foreign Ministry spokesman Lu Kang said at a daily press briefing.

Asked whether it was a snub that Trump had held calls with many other world leaders as president, but not Xi, Lu said: “This kind of remark is meaningless.”

He reiterated that China and the U.S. had maintained “close communication” since Trump took office and that cooperation was the “only correct choice”.

“China is willing to work with the United States in adhering to the principles of non-confrontation, mutual respect and mutual benefit to promote cooperation, control disputes, and on a healthy and stable foundation, promote greater development in China-U.S. ties,” Lu said.

Trump and Xi have yet to speak directly since Trump took office on Jan. 20, although they did talk soon after Trump won the U.S. presidential election in November.

Diplomatic sources in Beijing say China has been nervous about Xi being left humiliated in the event a call with Trump goes wrong and the details are leaked to the U.S. media.

Last week, U.S. ties with staunch ally Australia became strained after the Washington Post published details about an acrimonious phone call between Trump and Prime Minister Malcolm Turnbull. [nL4N1FN0JR]

“That is the last thing China wants,” a source familiar with China’s thinking on relations with the United States told Reuters. “It would be incredibly embarrassing for President Xi and for Chinese people, who value the concept of face.”

A senior non-U.S. Western diplomat said China was unlikely to be in a rush to set up such a call.

“These things need to happen in a very controlled environment for China, and China can’t guarantee that with the unpredictable Trump,” the diplomat said.

“Trump also seems too distracted with other issues at the moment to give too much attention to China.”

TAIWAN, YUAN IN FOCUS

There are a number of contentious areas where China fears Trump could go off script, the diplomat said, pointing in particular to the issue of self-ruled Taiwan, as well as trade.

Trump upset China in December by taking a phone call from Taiwan President Tsai Ing-wen. China considers Taiwan a wayward province with no right to formal diplomatic relations with any other country.

Trump has also threatened to slap tariffs on Chinese imports, accusing Beijing of devaluing its yuan currency and stealing U.S. jobs.

In his Senate confirmation hearing, U.S. Secretary of State Rex Tillerson said China should not be allowed access to islands it has built in the disputed South China Sea. The White House also vowed to defend “international territories” in the strategic waterway.

China has repeatedly said it has smooth contacts with the Trump team. The Foreign Ministry in Beijing said last week the two countries were remaining “in close touch”.

That contact has been led by China’s top diplomat, State Councillor Yang Jiechi, who outranks the foreign minister.

Yang told Michael Flynn, Trump’s National Security Advisor, last week that China hopes it can work with the United States to manage and control disputes and sensitive problems. [nL4N1FO364]

The source familiar with China’s thinking said Trump’s administration was “very clear” about China’s position on Taiwan. Trump has yet to mention Taiwan since he took office.

Chinese state media has wondered whether Trump has a China policy at all.

On Thursday, the widely read Global Times tabloid, published by the ruling Communist Party’s official People’s Daily, noted that Trump had not immediately confronted China as had been expected because he had realized upsetting Beijing would backfire badly.

“He has probably realized that real tough action against China would result in a complex chain reaction, even beyond his control,” the paper said in an editorial.

Wang Yiwei, a professor of international relations at Beijing’s elite Renmin University, said the letter suggested the new U.S. administration wanted to signal the importance it attached to the U.S.-China relationship without risking being confronted on specific issues.

“Trump has sent many messages that makes the world confused, like on the South China Sea and ‘One China’ policy, so if he makes a phone call President Xi will ask ‘what do you mean?’,” Wang said. “He wants to avoid this so he just sends a letter for the first step.”

(Reporting by Ben Blanchard in BEIJING and Eric Walsh in WASHINGTON; Additional reporting by Beijing newsroom and Michael Martina; Editing by Paul Tait and Nick Macfie)

U.S. governors send 428-project list for Trump’s infrastructure plan

(Reuters) – U.S. governors on Wednesday sent the Trump administration a list of 428 “shovel-ready” projects they regard as high-priority for President Donald Trump’s plan to fix the nation’s infrastructure.

The list of projects cover 49 U.S. states and territories, the bipartisan National Governor’s Association said in an e-mail. The NGA will not be making the final list publicly available.

The NGA had said on Jan. 23 that it had, at the request of the White House, assembled a list of 300 projects costing billions of dollars from 43 states and territories, with more expected to come.

Trump’s Presidential campaign throughout last year included a promise to pursue a $1 trillion infrastructure program, which would come at a time when major public works projects are crumbling.

The American Society of Civil Engineers’ infrastructure report card has estimated the United States needs to invest $3.6 trillion by 2020.

(Reporting by Akankshita Mukhopadhyay in Bengaluru; Editing by Savio D’Souza)

Erdogan, Trump agree to act jointly against Islamic State in Syria: Turkish sources

WASHINGTON/ANKARA (Reuters) – Turkish President Tayyip Erdogan and U.S. President Donald Trump agreed in a phone call overnight to act jointly against Islamic State in the Syrian towns of al-Bab and Raqqa, both controlled by the militants, Turkish presidency sources said on Wednesday.

The two leaders discussed issues including a safe zone in Syria, the refugee crisis and the fight against terror, the sources said. They also said Erdogan had urged the United States not to support the Syrian Kurdish YPG militia.

Trump spoke about the two countries’ “shared commitment to combating terrorism in all its forms” and welcomed Turkey’s contributions to the fight against Islamic State, the White House said in a statement, but it gave no further details.

The Syrian Democratic Forces (SDF), an alliance of U.S.-backed militias, started a new phase of its campaign against Islamic State in Raqqa on Saturday.

Turkey, a NATO ally and part of the U.S.-led coalition against Islamic State, has repeatedly said it wants to be part of the operation to liberate Raqqa but does not want the YPG, which is part of the SDF alliance, to be involved.

Erdogan’s relations with former U.S. President Barack Obama were strained by U.S. support for the YPG militia, which Ankara regards as a terrorist organization and an extension of Kurdish militants waging an insurgency inside Turkey.

The Turkish army and Syrian rebel groups it supports are meanwhile fighting Islamic State in a separate campaign around al-Bab, northeast of the city of Aleppo. Ankara has complained in the past about a lack of U.S. support for that campaign.

The offices of both leaders said Trump had reiterated U.S. support for Turkey “as a strategic partner and NATO ally” during the phone call on Tuesday.

The Turkish sources said new CIA Director Mike Pompeo would visit Turkey on Thursday to discuss the YPG, and battling the network of U.S.-based Turkish cleric Fethullah Gulen, whom Turkey accuses of orchestrating a July coup attempt.

Turkey has been frustrated by what it sees as Washington’s reluctance to hand over Gulen, who has lived in self-imposed exile in Pennsylvania since 1999.

There was no immediate confirmation from Washington of Pompeo’s visit.

(Reporting by Washington newsroom, Tulay Karadeniz and Humeyra Pamuk in Ankara; Editing by Nick Tattersall and Louise Ireland)

Tillerson stresses cooperation in calls with Australia, Japan, South Korea

By David Brunnstrom and Lesley Wroughton

WASHINGTON (Reuters) – U.S. Secretary of State Rex Tillerson has underscored Washington’s intent to strengthen ties with Australia, Japan and South Korea, the State Department said on Tuesday, a move aimed at reassuring allies unnerved by the campaign rhetoric of new President Donald Trump.

In separate calls with counterparts from the three long-time allies, they agreed to work closely to tackle threats from North Korea’s nuclear ambitions and increased tensions in the East and South China seas, State Department spokesman Mark Toner said,

“Secretary Tillerson reiterated the Administration’s intent to strengthen our military alliances, our economic partnerships, and our diplomatic cooperation,” he said in a statement.

Tillerson expressed interest in early meetings with his counterparts “and expressed his deep respect for their nations’ contributions to regional security, global prosperity, democratic institutions, and the rule of law,” it said.

The calls come at a time of raised concerns in the Asia-Pacific about Trump’s attitude to the region.

During his election campaign, Trump appeared to question U.S. alliances with Tokyo and Seoul and complained that they were not sharing enough of the cost of the U.S. security umbrella. Trump has also criticized Japan’s trade policies as damaging to U.S. jobs.

More recently ties with Australia were strained after details of an acrimonious phone call between Trump and Australian Prime Minister Malcolm Turnbull emerged and the former described a deal between the two nations on refugee resettlement as “dumb.”

Japanese Prime Minister Shinzo Abe is due to visit Washington for a two-day summit with Trump from Friday that is expected to focus on security ties in the face of a rising China and trade.

Earlier on Tuesday, Japan’s Kyodo news agency quoted Japanese Foreign Minister Fumio Kishida as saying that Tillerson had confirmed that a long-standing commitment by Washington to defend Japanese territory applies to the Senkakus, a group of small islands that China claims and calls the Diaoyus.

The State Department declined to comment on the Kyodo report but U.S. Defense Secretary Jim Mattis reaffirmed America’s commitment to its mutual defense treaty with Japan on Friday when he met Abe in Tokyo and in a call with Abe in late January. Trump said the U.S. security commitment was “ironclad.

Turnbull’s leadership was questioned after he was berated by Trump and an opinion poll published on Monday showed support for his coalition had slipped to its lowest level since he took power 17 months ago and that his Liberal-National coalition would easily fall if an election were held now.

(Reporting by Lesley Wroughton and David Brunnstrom; editing by Diane Craft, Bernard Orr)

China says United States should ‘brush up on’ South China Sea history

BEIJING (Reuters) – The United States needs to brush up on its history about the South China Sea, as World War Two-related agreements mandated that all Chinese territories taken by Japan had to be returned to China, Chinese Foreign Minister Wang Yi said in Australia.

China has been upset by previous comments from the new U.S. administration about the disputed waterway.

In his Senate confirmation hearing, Secretary of State Rex Tillerson said China should not be allowed access to islands it has built there. The White House also vowed to defend “international territories” in the strategic waterway.

However, last week U.S. Defense Secretary Jim Mattis suggested that diplomacy should be the priority in the South China Sea.

In comments carried on the foreign ministry’s website late on Tuesday, Wang said he had a “suggestion” for this American friends. “Brush up on the history of World War Two,” Wang was quoted as saying during a visit to Canberra, Australia.

The 1943 Cairo Declaration and 1945 Potsdam Declaration clearly state that Japan had to return to China all Chinese territory taken by Japan, Wang said.

“This includes the Nansha Islands,” he added, using China’s name for the Spratly Islands.

“In 1946, the then-Chinese government with help from the United States openly and in accordance with the law took back the Nansha Islands and reefs that Japan had occupied, and resumed exercising sovereignty,” Wang said.

“Afterwards, certain countries around China used illegal methods to occupy some of the Nansha islands and reefs, and it’s this that created the so-called South China Sea dispute.”

China is committed to having talks with the parties directly involved, and in accordance with historical facts and international law to peacefully resolve the issue, and that position will not change, Wang said.

Countries outside the region should support the efforts of China and others in the region to maintain the peace and stability of the South China Sea, and not do the opposite, he added.

China sets great store on Mattis’ comments stressing diplomatic efforts in the South China Sea, as this is not only the position set by China and Southeast Asia but also the “correct choice” for countries outside the region, Wang said.

China claims most of the South China Sea, while Taiwan, Malaysia, Vietnam, the Philippines and Brunei claim parts of the waters that command strategic sea lanes and have rich fishing grounds along with oil and gas deposits.

(Reporting by Ben Blanchard; Editing by Michael Perry)

Appeals court to hear arguments on Trump’s travel ban

Donald Trump speaking to U.S. Central Command

By Dan Levine and Timothy Gardner

SAN FRANCISCO/WASHINGTON (Reuters) – The U.S. Justice Department will face off with opponents in a federal appeals court on Tuesday over the fate of President Donald Trump’s temporary travel ban on people from seven Muslim-majority countries, his most controversial act since taking office last month.

Last Friday, U.S. District Judge James Robart suspended Trump’s ban, opening a window for people from the seven affected countries to enter the country.

The 9th U.S. Circuit Court of Appeals in San Francisco will hear arguments over whether to restore the ban from Justice Department lawyers and opposing attorneys for the states of Minnesota and Washington at 3 p.m. PST (6.00 p.m. ET).

In a tweet on Monday night, Trump said: “The threat from radical Islamic terrorism is very real, just look at what is happening in Europe and the Middle-East. Courts must act fast!”

Trump has said the travel measures are designed to protect the country against the threat of terrorism. He has derided Robart, appointed by Republican President George W. Bush, as a “so-called judge.”

In a brief filed on Monday, the Justice Department said the suspension of Trump’s order was too broad and “at most” should be limited to people who were already granted entry to the country and were temporarily abroad, or to those who want to leave and return to the United States.

Opponents say the 90-day ban barring entry for citizens from Iran, Iraq, Libya, Somalia, Sudan, Syria and Yemen and imposing a 120-day halt to all refugees, is illegal. The state of Washington argues it has suffered harm, saying some students and faculty at state universities had been stranded overseas because of the ban.

The Republican president’s Jan. 27 executive order sparked protests and chaos at U.S. and overseas airports in the weekend that followed.

All the people who had carried out fatal attacks inspired by Islamist militancy in the United States since the Sept. 11, 2001, attacks had been U.S. citizens or legal residents, the New America think tank said. None came to the United States or were from a family that emigrated from one of the countries listed in the travel ban, it said. (http://bit.ly/2keSmUO)

UPHILL FIGHT?

Trump faces an uphill battle in the liberal-leaning San Francisco court. Two members of three-judge panel that will hear the arguments were appointed by former Democratic Presidents Jimmy Carter and Barack Obama, and one was appointed by Bush.

Appeals courts are generally leery of upending the status quo, which in this case is the lower court’s suspension of the ban.

Opponents of the ban received far more filings in support of their position than the Department of Justice. Washington state’s challenge was backed by about a dozen friends-of-the- court briefs submitted by at least 17 state attorneys general, more than 100 companies, and about a dozen labor and civil rights groups. About a dozen conservative groups supported the government in three such briefs.

The appeals court was focusing on the narrow question of whether the district court had grounds to put the order on hold. The bigger legal fight over whether Trump had authority to issue the order will be addressed later in the litigation.

(Additional reporting by Peter Henderson in San Francisco)

Iran leader rebuffs Trump’s warning on missiles

By Bozorgmehr Sharafedin

DUBAI (Reuters) – Ayatollah Ali Khamenei dismissed Donald Trump’s warning to Iran to stop its missile tests, saying the new U.S. president had shown the “real face” of American corruption.

In his first speech since Trump’s inauguration, Iran’s supreme leader called on Iranians to respond to Trump’s “threats” on Feb. 10, the anniversary of Iran’s 1979 Islamic revolution. Trump had tried but failed to frighten Iranians, Khamenei said.

“We are thankful to (Trump) for making our life easy as he showed the real face of America,” Khamenei told a meeting of military commanders in Tehran, according to his website.

The White House has said the last week’s missile test was not a direct breach of Iran’s 2015 nuclear pact with six world powers, but that it “violates the spirit of that”..

In remarks published on Tuesday, Iranian Foreign Minister Mohammad Javad Zarif said Tehran would not agree to renegotiate its nuclear agreement.

“I believe Trump will push for renegotiation. But Iran and European countries will not accept that,” Mohammad Javad Zarif told Ettelaat newspaper. “We will have difficult days ahead.”

On the campaign trail, Trump repeatedly promised to tear up the nuclear deal. While his Secretary of State, Rex Tillerson, has not called for an outright rejection of the accord, he has suggested a “full review” of it.

The supreme leader, Iran’s top authority, also said Trump has “confirmed what we have been saying for more than 30 years about the political, economic, moral and social corruption in the U.S. ruling system.”

Trump responded to a Jan. 29 Iranian missile test by saying “Iran is playing with fire” and slapping fresh sanctions on individuals and entities, some of them linked to Iran’s elite Revolutionary Guards.

“No enemy can paralyze the Iranian nation,” Khamenei said. “(Trump) says ‘you should be afraid of me’. No! The Iranian people will respond to his words on Feb. 10 and will show their stance against such threats.”

A U.N. Security Council resolution underpinning the pact urges Iran to refrain from testing missiles designed to be able to carry nuclear warheads, but imposes no obligation.

Under the accord, Iran agreed to curb its nuclear program in exchange for relief from some U.S., European and U.N. economic sanctions. Critics of Iran said the deal emboldened Tehran to increase its involvement in wars in Arab countries, a charge Tehran denies.

President Hassan Rouhani said on Tuesday that, in contrast to Trump’s view, the nuclear deal was a “win-win” accord, and could be used as a stepping stone to defuse tension in the region.

(Reporting by Bozorgmehr Sharafedin; Writing by William Maclean; Editing by Robin Pomeroy and Raissa Kasolowsky)

U.S. should expand missile defense due to North Korea, Iran: lawmaker

U.S. Rep Mac Thornberry discussing missile defense against Iran and North Korea

By Patricia Zengerle

WASHINGTON (Reuters) – The United States should invest more in missile defense given missile testing by North Korea and Iran, the chairman of the House of Representatives Armed Services Committee said on Monday.

The comments by Republican Representative Mac Thornberry followed new U.S. sanctions against Iran after Tehran’s recent ballistic missile tests. Washington is also concerned North Korea may be preparing to test a new ballistic missile.

Thornberry’s position was a sign of support in Congress for military spending to counter North Korea after President Donald Trump during the 2016 election campaign raised doubts about future U.S. funding to defend allies like South Korea and Japan.

“If you look at what’s happening around the world, I would mention Iran and North Korea, the importance of missile defense is increasing,” Thornberry said at a roundtable discussion with reporters.

He said there was a need both to provide more systems and to improve missile defense technology. “Actors around the world are building missiles that are harder to stop,” he added.

Jim Mattis, Trump’s defense secretary, told South Korea last week that Washington and Seoul would stand “shoulder-to-shoulder” to face the threat from North Korea.

Both South Korea and the United States have recommitted to plans to deploy an $800 million advanced missile defense system in South Korea later this year.

More broadly, Thornberry also said he expected an end to strict limits on defense spending now that Republicans control both Congress and the White House.

The 2011 Budget Control Act imposed across-the-board cuts on government spending, and under former President Barack Obama, a Democrat, congressional Democrats were able to ward off Republican pushes to increase the defense budget without also raising spending on non-defense items such as education and medical research.

“I think we have a tremendous opportunity to do the right thing,” Thornberry said. “There’s more of the federal budget being looked at, in play, if you will, than has been the case for many years.”

The Trump administration is expected within weeks to send Congress a request for a supplemental bill to increase defense spending this year.

(Reporting by Patricia Zengerle; Editing by Andrew Hay)

U.S. could grant final permit for Dakota pipeline as soon as Friday: government lawyer

police barricade north of Dakota Access Pipeline

By Valerie Volcovici

WASHINGTON (Reuters) – The U.S. Army secretary could make a decision on the final permit needed to complete the controversial Dakota Access Pipeline as soon as Friday, the government’s lawyer told a Washington, D.C., court on Monday.

The Army Corp of Engineers told the court it has submitted its recommendation to Robert Speer, the acting secretary of the Army, on whether it needs to complete a full environmental review before it can grant the final permit allowing work to start on a contested tunnel under a lake. The review was requested in December by former President Barack Obama.

Opponents argue that letting the pipeline cross under Lake Oahe, a reservoir that is the water source for the Standing Rock Sioux Reservation, would damage sacred lands and could leak oil into the tribe’s water supply.

Proponents believe the pipeline is necessary to transport U.S. oil safely and that it would create jobs.

Jan Hasselman, an attorney with Earthjustice, who represents the Standing Rock Sioux, said the tribe will challenge the U.S. government in court if the Army grants the easement. The tribe, along with other Native American groups, environmentalists and other activists, have opposed the $3.8 billion Dakota Access Pipeline led by Energy Transfer Partners LP <ETP.N>.

He said it is unclear whether construction could begin while the decision is challenged or whether the court will grant an injunction blocking the work.

“Our position is the tribe’s treaty rights and the law require the full (Environmental Impact Study) process that the government initiated in December. Issuing the easement without that process will be a serious violation of the law,” Hasselman told Reuters.

A spokesman for the Army was not immediately available to comment. Energy Transfer Partners declined to comment on the legal proceedings.

At the hearing at the D.C. Circuit Court on Monday, lawyers for ETP said the pipeline would become fully operational around 90 days after construction begins. If the easement is granted, oil can start crossing under the lake, a reservoir that is part of the Missouri River, as soon as 60 days after construction starts.

(Additional reporting by Liz Hampton in Houston; Editing by Dan Grebler)

China, United States cannot afford conflict: Chinese foreign minister

Chinese Foreign minister speaking on how U.S. and China need to work together

By Colin Packham

SYDNEY (Reuters) – There would be no winner from conflict between China and the United States, Chinese Foreign Minister Wang Yi warned on Tuesday, seeking to dampen tension between the two nations that flared after the election of U.S. President Donald Trump.

Relations between China and United States have soured after Trump upset Beijing in December by taking a telephone call from Taiwan President Tsai Ing-wen and threatened to impose tariffs on Chinese imports.

China considers Taiwan a wayward province, with no right to formal diplomatic relations with any other country.

But China is committed to peace, Wang said, after meeting Australia’s Foreign Minister Julia Bishop.

“There cannot be conflict between China and the United States, as both sides will lose and both sides cannot afford that,” he told reporters in the Australian capital of Canberra.

While seeking to reduce tension, Wang called on global leaders to reject protectionism, which Trump has backed with his “America First” economic plans.

“It is important to firmly commit to an open world economy,” Wang added. “It is important to steer economic globalisation towards greater inclusiveness, broader shared benefit in a more sustainable way.”

Just days ahead of Trump taking office, Chinese President Xi Jinping was in Switzerland as the keynote speaker at the World Economic Forum in Davos, offering a vigorous defence of globalisation and signalling Beijing’s desire to play a bigger role on the world stage.

Wang said that China does not want to lead or replace anyone, and that as its national strength is still limited it must focus on its own development, according to comments carried on the Chinese Foreign Ministry’s website.

“We must remain clear headed about the various comments demanding China play a ‘leadership role’,” Wang said.

While Trump’s trade policies have spurred concern the United States is entering a period of economic protectionism, China has previously accused Australia of adopting a similar practice by blocking the sale of major assets to Chinese interests.

Bishop urged China to consider joining a pan-Pacific trade pact abandoned last month by Trump, who has said he prefers bilateral deals.

“I want to encourage China to consider the agreement,” Bishop said, referring to the Trans-Pacific Partnership.

As China called on nations to be open to offshore investment, Wang said Beijing would link its “One Belt, One Road” (OBOR) policy with Australia’s plan to develop its remote northern region.

The programme announced by Xi in 2013 envisages investments by China in infrastructure projects, including railways and power grids in central, west and southern Asia, as well as Africa and Europe.

Australia has ambitious plans to develop its Northern Territory, a frontier region with little infrastructure, but efforts have largely stalled for lack of investment.

(This story has been refiled to replace “influence” with “national strength” in ninth paragraph, adds dropped word in first paragraph.)

(Additional reporting by Ben Blanchard in Beijing; Editing by Clarence Fernandez and Pritha Sarkar)

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