More dead expected in destroyed Florida Panhandle towns after Michael

A man carries food and water past a building damaged by Hurricane Michael in Parker, Florida, U.S., October 13, 2018. REUTERS/Terray Sylvester

By Rod Nickel

MEXICO BEACH, Fla. (Reuters) – Dozens of people remained missing on Sunday in Florida Panhandle communities reduced to ruins by Hurricane Michael as rescuers said they expected the death toll to rise and survivors grappled with power outages and shortages of food and water.

A destroyed home is pictured following Hurricane Michael in Mexico Beach, Florida, U.S., October 13, 2018. REUTERS/Carlo Allegri

A destroyed home is pictured following Hurricane Michael in Mexico Beach, Florida, U.S., October 13, 2018. REUTERS/Carlo Allegri

Already at least 18 deaths in four states have been blamed on the hurricane as rescue crews using cadaver dogs and heavy equipment searched through collapsed homes in small towns such as Mexico Beach and Panama City for more victims.

So far one person has been confirmed killed in Mexico Beach, which took a direct hit from the massive storm, but rescuers have been hobbled by blocked roads and huge piles of rubble from searching much of the town.

“If we lose only one life, to me that’s going to be a miracle,” Mexico Beach Mayor Al Cathey told local media.

Cathey said more than 250 residents had stayed behind when Michael came ashore on Wednesday as a Category 4 hurricane on the five-step Saffir-Simpson scale, one of the most powerful storms to make landfall in the continental United States since records have been kept.

A man walks out of his home following Hurricane Michael in Mexico Beach, Florida, U.S., October 13, 2018. REUTERS/Carlo Allegri

A man walks out of his home following Hurricane Michael in Mexico Beach, Florida, U.S., October 13, 2018. REUTERS/Carlo Allegri

The mayor told ABC News that 46 people out of the town of some 1,000 remained missing or unaccounted for as of Sunday. Search and rescue volunteers have already located hundreds of people initially reported missing last week across the Panhandle.

Florida Governor Rick Scott, who toured the devastated areas by helicopter with Federal Emergency Management Agency (FEMA)officials, said the top priority remained search and rescue efforts.

Scott said crews were also distributing food, water and fuel to residents who have faced long lines for supplies.

More than 1,700 search and rescue workers were deployed, Scott’s office said, including seven swift-water rescue teams and nearly 300 ambulances.

In Panama City, one of the hardest-hit communities, Fire Chief Alex Baird said search and rescue teams were now in “recovery mode” after largely giving up hope of finding any more survivors.

Electricity and telephone service were being slowly restored, but it could be weeks before power is restored to the state’s most damaged areas.

A destroyed boat is pictured following Hurricane Michael in Mexico Beach, Florida, U.S., October 13, 2018. REUTERS/Carlo Allegri

A destroyed boat is pictured following Hurricane Michael in Mexico Beach, Florida, U.S., October 13, 2018. REUTERS/Carlo Allegri

Two Florida prisons housing a total of nearly 3,000 inmates were evacuated and closed at least temporarily after suffering structural damage from Michael, the Florida Department of Corrections said.

The department said no staff or inmates were injured during the storm and all had access to sufficient food and water.

President Donald Trump is expected to visit both Florida and Georgia early this week to inspect the damage, accompanied by first lady Melania Trump, and the White House said late on Saturday the president was fully committed to helping state and local agencies with the recovery.

(Reporting by Rod Nickel; Additional reporting by Devika Krishna Kumar in Port St. Joe, Florida, Bernie Woodall in Florida, Rich McKay in Atlanta and Dan Whitcomb in Los Angeles; Writing by Dan Whitcomb; Editing by Sandra Maler)

Saudi king orders Khashoggi probe, Trump sends Pompeo to discuss case

A car with a diplomatic registration plate arrives at Saudi Arabia's consulate in Istanbul, Turkey October 15, 2018. REUTERS/Murad Sezer

By Tulay Karadeniz and Yara Bayoumy

ANKARA/WASHINGTON (Reuters) – Saudi Arabia’s King Salman on Monday ordered an internal probe into the unexplained disappearance of prominent journalist Jamal Khashoggi as a joint Turkish-Saudi team was set to search the Saudi consulate in Istanbul where he was last seen on Oct. 2.

U.S. President Donald Trump said meanwhile he had spoken with King Salman about Khashoggi, a critic of the kingdom’s policies, and that he was sending Secretary of State Mike Pompeo to meet the king immediately.

FILE PHOTO: Saudi dissident Jamal Khashoggi speaks at an event hosted by Middle East Monitor in London Britain, September 29, 2018. Middle East Monitor/Handout via REUTERS.

FILE PHOTO: Saudi dissident Jamal Khashoggi speaks at an event hosted by Middle East Monitor in London Britain, September 29, 2018. Middle East Monitor/Handout via REUTERS.

Trump also said Salman denied “any knowledge of whatever may have happened” to Khashoggi, who disappeared after he went to the Saudi consulate in Istanbul two weeks ago, and told him the Saudis are working closely with Turkey on the case.

Khashoggi, a U.S. resident and Washington Post columnist, vanished after entering the consulate to get marriage documents. Turkish officials have said authorities believe he was murdered and his body removed, allegations that Saudi Arabia has denied.

The case has provoked an international outcry, with Trump threatening “severe punishment” if it turns out Khashoggi was killed in the consulate and European allies urging “a credible investigation” and accountability for those responsible.

A Turkish diplomatic source said investigators would inspect the consulate on Monday afternoon, after delays last week when Turkey accepted a Saudi proposal to work together to find out what happened to Khashoggi.

“The King has ordered the Public Prosecutor to open an internal investigation into the Khashoggi matter based on the info from the joint team in Istanbul,” a Saudi official, not authorized to speak publicly, told Reuters.

Asked when the public prosecutor could make an announcement about the investigation, the official said: “He was instructed to work quickly.”

A man holds a picture of Saudi journalist Jamal Khashoggi as media members film during a protest outside the Saudi Consulate in Istanbul, Turkey October 8, 2018. REUTERS/Murad Sezer

A man holds a picture of Saudi journalist Jamal Khashoggi as media members film during a protest outside the Saudi Consulate in Istanbul, Turkey October 8, 2018. REUTERS/Murad Sezer

Britain expects Riyadh to provide “a complete and detailed response” to questions over Khashoggi’s disappearance, Prime Minister Theresa May’s spokesman said on Monday.

Saudi Arabia has responded to Western statements by saying it would retaliate against any pressure or economic sanctions “with greater action”, and Arab allies rallied to support it, setting up a potential showdown between the world’s top oil exporter and its main Western allies.

King Salman and Turkish President Tayyip Erdogan spoke by telephone on Sunday evening and stressed the importance of the two countries creating a joint group as part of the probe.

Broadcaster CNN Turk reported on Monday that the Saudi team had arrived at Istanbul police headquarters.

ECONOMIC IMPACT

The Saudi riyal fell to its lowest in two years and its international bond prices slipped over fears that foreign investment inflows could shrink amid international pressure.

The Saudi stock market had tumbled 7.2 percent over the previous two trading days but rebounded 2 percent on Monday.

Foreign capital is key to Saudi plans for economic diversification and job creation.

But concern over the disappearance has seen media organizations and a growing number of attendees pull out of a “Davos in the Desert” investment conference set for Oct. 23-25, which has become the biggest show for investors to promote Saudi Crown Prince Mohammed bin Salman’s reform vision.

On Monday, a source familiar with the matter said Blackstone CEO Stephen Schwarzman and BlackRock Chief Executive Larry Fink were pulling out of the summit. Both companies declined comment.

Saudi Arabia’s Public Investment Fund (PIF), which hosts the conference, has tentatively committed $20 billion to an infrastructure investment planned with Blackstone Group. Prince Mohammed told Reuters last year that Blackstone and BlackRock Inc were planning to open offices in the kingdom.

Bahrain called for a boycott of Uber, in which PIF has invested $3.5 billion after its chief executive officer said he would not attend the conference.

PRELIMINARY EVIDENCE

Similar campaigns trended on social media in Saudi Arabia and the United Arab Emirates. UAE businessman Khalaf Ahmad Al-Habtoor urged a boycott of Virgin, which has suspended discussions with PIF over a planned $1 billion investment.

Khashoggi, a familiar face on Arab talk shows, moved to the United States last year fearing retribution for his criticism of Prince Mohammed, who has cracked down on dissent with arrests.

The former newspaper editor once interviewed Osama bin Laden and later became a consummate insider, advising former Saudi intelligence chief Prince Turki al-Faisal when he served as ambassador in London and Washington.

A pro-government Turkish daily published preliminary evidence last week from investigators it said identified a 15-member Saudi intelligence team which arrived in Istanbul on diplomatic passports hours before Khashoggi disappeared.

The Saudi consulate referred Reuters to authorities in Riyadh who did not respond to questions about the 15 Saudis.

(Additional reporting by Trevor Hunnicutt in Washington, Rob Cox of Breakingviews, William James in London; Writing by Stephen Kalin; Editing by David Dolan, William Maclean)

Turkish court rules to release U.S. pastor Brunson

Norine Brunson, wife of U.S. pastor Andrew Brunson, departs for her husband's court hearing in Izmir, Turkey October 12, 2018. REUTERS/Osman Orsal

By Ezgi Erkoyun

ALIAGA, Turkey (Reuters) – A Turkish court ruled on Friday to release the U.S. evangelical Christian pastor at the center of a bitter diplomatic row between Ankara and Washington, a move that could be the first step toward mending ties between the NATO allies.

The court passed a 3 years and 1-1/2 month sentence on Andrew Brunson, who had been charged with terrorism offences, but said he would not serve any further time because he had already been detained since October 2016.

Witnesses said Brunson wept as the decision was announced. Before the judge’s ruling, the pastor told the court: “I am an innocent man. I love Jesus, I love Turkey.”

The case against Brunson, an evangelical preacher from North Carolina who has lived in Turkey for more than 20 years and was arrested two years ago, had led to U.S. tariffs against Turkey and drawn condemnation from President Donald Trump.

Brunson was charged with links to Kurdish militants and supporters of Fethullah Gulen, the cleric blamed by Turkey for a failed coup attempt in 2016. Brunson denied the accusation and Washington had demanded his immediate release.

Earlier, witnesses told the court that testimonies attributed to them against the pastor were inaccurate, heightening expectations that Brunson could be released and returned to the United States.

Brunson appeared in the courtroom in the western coastal town of Aliaga wearing a black suit, white shirt and red tie. His wife Norine looked on from the visitors’ seating area as he listened to testimony from defense and prosecution witnesses.

“I do not understand how this is related to me,” Brunson said after the judge questioned one of a series of witnesses. He said the judge was asking the witness about incidents Brunson was not involved in.

The lira was little changed on the day. It had firmed 3 percent on Thursday on expectations that he would be released. It stood at 5.910 at 1336 GMT.

(Adds dropped name in para 2.)

(Writing by Daren Butler and David Dolan; Editing by Angus MacSwan and Dominic Evans)

U.S. pastor’s lawyer says new Turkish prosecution witnesses irrelevant to case

FILE PHOTO: Ismail Cem Halavurt, lawyer of the jailed pastor Andrew Brunson, talks to media outside the Aliaga Prison and Courthouse complex in Izmir, Turkey May 7, 2018. REUTERS/Osman Orsal/File Photo

By Yesim Dikmen

ISTANBUL (Reuters) – New prosecution witnesses expected to testify on Friday in the Turkish trial of a U.S. Christian pastor on terrorism charges lack relevance as their testimony will focus on incidents after Andrew Brunson’s arrest, his lawyer said.

The case against Brunson, an evangelical preacher from North Carolina who has lived in Turkey for more than 20 years, has become the flashpoint in a diplomatic row between Ankara and Washington, triggering U.S. tariffs against Turkey and condemnation from U.S. President Donald Trump.

FILE PHOTO: Ismail Cem Halavurt, lawyer of the jailed pastor Andrew Brunson, arrives at Aliaga Prison and Courthouse complex in Izmir, Turkey, July 18, 2018. REUTERS/Kemal Aslan

FILE PHOTO: Ismail Cem Halavurt, lawyer of the jailed pastor Andrew Brunson, arrives at Aliaga Prison and Courthouse complex in Izmir, Turkey, July 18, 2018. REUTERS/Kemal Aslan

Brunson, who was jailed in October 2016 and has been under house arrest since July, is due to appear in court for the next hearing in his trial on Friday. The prosecution is expected to introduce two new secret witnesses, but Brunson’s lawyer Cem Halavurt said their testimonies were not germane to the case.

One of the witnesses, called “Sword” by prosecutors, claimed to have seen Brunson’s wife at a Christian gathering in Western Turkey, according to testimony to prosecutors published by the Hurriyet newspaper. The meeting made Sword feel “uncomfortable”, according to the Hurriyet’s account of the testimony.

“The incidents took place when my client was in jail,” Halavurt told Reuters. “These incidents are not relevant to my client.”

The court in Izmir, the coastal province where Brunson ran his small church, will decide whether it will hear the testimony from the new witnesses at the hearing.

U.S. Secretary of State Mike Pompeo said on Wednesday that Brunson’s release on Friday would be an important step and the right thing for Turkey to do.

Brunson is charged with links to Kurdish militants and supporters of Fethullah Gulen, the cleric blamed by Turkey for a failed coup attempt in 2016. He has denied the accusation – as has Gulen – and Washington has demanded his immediate release.

Jailed or held under house arrest since October 2016, Brunson faces up to 35 years in jail if convicted. Last month the main prosecutor in his trial was replaced, a move his lawyer cautiously welcomed, saying it might be a sign of changing political will.

Despite pressure from the Trump administration, Turkish President Tayyip Erdogan has insisted that he has no sway over the judiciary and that the courts will decide on Brunson’s fate.

(Writing by Ezgi Erkoyun; Editing by David Dolan and Matthew Mpoke Bigg)

Trump says next meeting with North Korea’s Kim being set up

FILE PHOTO: U.S. President Donald Trump and North Korea's leader Kim Jong Un meet at the start of their summit at the Capella Hotel on the resort island of Sentosa, Singapore June 12, 2018. REUTERS/Jonathan Ernst/File Photo

By Roberta Rampton

WASHINGTON (Reuters) – U.S. President Donald Trump said on Tuesday plans were being made for his second summit with North Korean leader Kim Jong Un and he thinks “incredible” progress has been made in U.S. talks with the long-isolated country.

“Well it is happening and we’re setting that up right now,” Trump told reporters at the White House after announcing the resignation of U.N. Ambassador Nikki Haley.

He said Secretary of State Mike Pompeo had very good talks with Kim over the weekend and that three or four locations were being considered for the two leaders’ next summit. “Timing won’t be too far away,” he said.

Trump and Kim held a historic first summit in Singapore on June 12 at which Kim pledged to work toward denuclearization of the Korean peninsula. However, his actions have fallen short of Washington’s demands for a complete inventory of its weapons and facilities and irreversible steps to give up its arsenal.

Still, Trump was upbeat on progress made so far.

“You got no rockets flying, you have no missiles flying, you have no nuclear testing,” Trump said in the Oval Office. “We’ve made incredible progress – beyond incredible.

“But I have agreed to meet,” he said. “We have a very good relationship with Chairman Kim. I like him, he likes me, the relationship is good.”

Pompeo said on Monday the two sides were “pretty close” to agreeing on details for a second summit.

Pompeo told reporters Kim had said he was ready to allow international inspectors into North Korea’s Punggye-ri nuclear testing site and the Sohae missile engine test facility as soon as the United States and North Korea agreed on logistics.

However, experts questioned what Pompeo had achieved on Sunday on his fourth visit to Pyongyang this year. They said the North Korean leader appeared simply to be repackaging and dragging out past pledges.

Trump noted that the United States has not lifted the “very big sanctions” it has imposed on Pyongyang.

“I’d love to remove them, but we have to get something for doing it,” Trump said.

North Korea is very interested in reaching some sort of agreement on denuclearization so that it can grow economically with the benefit of the foreign investment closed to it now, Trump said.

The U.N. World Food Program said on Tuesday that the supply of food remains precarious in North Korea, where one in five children is stunted by malnutrition. More than 10 million North Koreans, nearly 40 percent of the population, are undernourished and need humanitarian aid, it said.

“I will tell you they’re calling, wanting to go there and wanting to invest,” Trump said. “At some point, when Chairman Kim makes that decision, I think he’s going to unleash something that’s going to be spectacular, really spectacular.

“And I think he knows it and I think that’s one of the reasons that we’re having very successful conversations.”

(Reporting by Roberta Rampton and Doina Chiacu; Editing by Lisa Lambert, Paul Simao and Jonathan Oatis)

U.S. labor market hot, jobs hard to fill: Fed’s Harker

FILE PHOTO: People wait in line to attend TechFair LA, a technology job fair, in Los Angeles, California, U.S., January 26, 2017. REUTERS/Lucy Nicholson - RC1458E83C90

(Reuters) – U.S. employers are struggling to fill jobs and that is unlikely to change any time soon given the labor market is getting quite tight, Federal Reserve Bank of Philadelphia President Patrick Harker said on Tuesday.

“We have a labor market with very little slack left, and the most common refrain I hear from employers is that they can’t fill the jobs they have,” Harker said in prepared remarks to a conference on higher education. “Those demographic and technological pressures are unlikely to recede.”

The unemployment rate fell to near a 49-year low of 3.7 percent last month.

(Reporting by Jonathan Spicer; Editing by Chizu Nomiyama)

Trump’s U.N. envoy Nikki Haley quits, denies 2020 ambitions

U.S. President Donald Trump talks with U.N. Ambassador Nikki Haley in the Oval Office of the White House after it was reported the president had accepted the Haley's resignation. REUTERS/Jonathan Ernst

By Steve Holland and Roberta Rampton

WASHINGTON (Reuters) – The U.S. ambassador to the United Nations, Nikki Haley, announced on Tuesday she is resigning, and immediately denied she was preparing to challenge President Donald Trump in the 2020 presidential election.

Sitting beside Trump in the Oval Office, Haley said her 18-month stint at the United Nations had been “an honor of a lifetime” and said she would stay on until the end of the year.

Haley, 46, is the latest in a long line of high-profile departures from the administration, such as former Secretary of State Rex Tillerson, who was fired in March, and Steve Bannon, Trump’s chief strategist, who left in August 2017.

Describing her time at the United Nations as “fantastic” and “incredible,” Trump said he had accepted Haley’s resignation and would name her successor within two or three weeks.

A former governor of South Carolina who is the daughter of Indian immigrants, Haley is a rising star in the Republican Party and is often mentioned as a possible candidate for the 2020 presidential elections.

But she said on Tuesday she would not be running and would campaign for Trump. “No, I am not running for 2020.” she said.

Echoing previous statements from Trump, Haley said the United States under his presidency is now respected around the world.

“Now the United States is respected. Countries may not like what we do, but they respect what we do. They know that if we say we’re going to do something, we follow it through,” she said.

Haley has been the face of Trump’s “America First” policy at the United Nations, steering the U.S. withdrawal from several U.N. programs and ardently defending his hard-line policies against Iran and North Korea over their nuclear programs.

“She has done an incredible job. She is a fantastic person, very importantly, but she also is somebody that gets it,” Trump said on Tuesday. She told Trump around six months ago that she was thinking of quitting by the end this year “to take a little time off,” he said.

“She’s done a fantastic job and we’ve done a fantastic job together. We’ve solved a lot of problems and we’re in the process of solving a lot of problems,” he said.

Haley discussed her resignation with Trump last week when she visited him at the White House, Axios news site reported.

Her U.N. counterparts described her as charming and yet very tough. She saw herself as a fighter.

“I don’t see (my role) as pushing an ‘America First’ policy, I see it as defending America because every day I feel like I put body armor on. I just don’t know who I’m fighting that day,” Haley told Reuters earlier this year.

(Reporting by Roberta Rampton and Steve Holland; Additional reportng by Doina Chiacu, Makini Brice, Susan Heavey and Lisa Lambert in Washington and Michelle Nichols at the United Nations; Writing by Alistair Bell; Editing by Jonathan Oatis)

Trump cites ‘historic’ trade pact with Canada, Mexico

FILE PHOTO: Flags of the U.S., Canada and Mexico fly next to each other in Detroit, Michigan, U.S. August 29, 2018. REUTERS/Rebecca Cook/File Photo

By Susan Heavey

WASHINGTON (Reuters) – U.S. President Donald Trump on Monday took credit for salvaging a trilateral free trade accord with Canada and Mexico, marking it as a victory in his campaign to reshape global commerce as financial markets breathed a sigh of relief.

The deal, announced on Sunday, is a reworking of the 1994 North American Free Trade Agreement, which underpins $1.2 trillion in trade between the three countries. Trump had described NAFTA as a bad deal for Americans and threatened to eliminate it as part of his “America First” agenda.

The new United States-Mexico-Canada Agreement (USMCA) is aimed at bringing more jobs into the United States, with Canada and Mexico accepting more restrictive commerce with the United States, their main export partner.

While changing NAFTA and bringing down U.S. trade deficits was a top Trump campaign pledge, Sunday’s agreement largely leaves the broader deal intact and maintains supply chains that would have been fractured under weaker bilateral deals.

U.S., Canadian and Mexican stocks were trading higher on Monday, with the benchmark S&P 500 index.SPX rising more than 0.7 percent and the Toronto Stock Exchange’s S&P/TSX index. GSPTS gaining about 0.4 percent.

The Canadian dollar CAD strengthened to a four-month high against the U.S. dollar, while the Mexican peso rose to near a two-month high against the greenback before paring some gains.

Trump, who is scheduled to make a statement at 11 a.m. EDT (1500 GMT), on Twitter called the agreement with the United States’ northern neighbor “wonderful” and “a historic transaction.”

“It is a great deal for all three countries, solves the many deficiencies and mistakes in NAFTA, greatly opens markets to our Farmers and Manufacturers, reduce Trade Barriers to the U.S. and will bring all three Great Nations closer together in competition with the rest of the world,” Trump wrote.

Canadian Prime Minister Justin Trudeau on Sunday called it “a good day for Canada” after negotiators worked frantically ahead of the U.S.-imposed midnight deadline. He is scheduled to speak to reporters at noon EDT (1600 GMT).

The pact preserved a key trade dispute settlement mechanism sought by Canada even as Ottawa agreed to open up its dairy markets to U.S. farmers.

The deal effectively maintains the current auto sector and largely spares Canada and Mexico from the prospect of U.S. tariffs on their vehicles, although it will make it harder for global automakers to build cars cheaply in Mexico.

Trump vowed during his 2016 presidential campaign to tear up current U.S. trade deals, which he blamed for a loss of American manufacturing jobs. His administration has abandoned other trade accords and slapped tariffs on a number of key trading partners, including China.

“It’s a promise made, promise kept,” Peter Navarro, the White House trade adviser, told Fox News on Monday. “NAFTA is dead. We have USMCA.”

U.S. President Donald Trump takes a question from a New York Times reporter during a news conference on the sidelines of the 73rd session of the United Nations General Assembly in New York, U.S., September 26, 2018. REUTERS/Carlos Barria

U.S. President Donald Trump takes a question from a New York Times reporter during a news conference on the sidelines of the 73rd session of the United Nations General Assembly in New York, U.S., September 26, 2018. REUTERS/Carlos Barria

STEEL TARIFFS

Mexican Economy Minister Ildefonso Guajardo on Monday said the new accord could be signed by the three countries’ leaders when they meet at a G20 summit in Buenos Aires in late November.

The deal does not include any changes to separate U.S. tariffs on steel and aluminum levied on a number of Washington’s trading partners, including Canada, Mexico, China and the European Union.

Mexican Foreign Minister Luis Videgaray on Monday said he hoped concerns over the metals tariffs could be resolved before the new trilateral deal is signed.

Navarro, in his interview with Fox, said the two trade issues were separate.

U.S. officials intend to sign the new trilateral deal by Nov. 30, Navarro said. It would then be submitted for approval by the U.S. Congress, currently controlled by Trump’s fellow Republicans.

U.S. Senator Pat Roberts, a Kansas Republican who oversees the Senate’s agricultural committee, said he was “eager to review the details” of the deal and noted the outsized role trade with Canada and Mexico had on rural U.S. states like his.

U.S. Senator Joni Ernst of Iowa, a top farming state, praised the agreement in a tweet on Monday: “Our farmers need stability and access to markets.”

Democratic U.S. Senator Amy Klobuchar of Minnesota, which borders Canada, also said she would review the terms and was glad her state’s “number one trading partner” was “back in the mix.”

The United States and Mexico clinched a bilateral agreement in late August after the Trump administration sought separate lines of talks, leaving Canada to negotiate its own terms.

A senior source close to the trade talks said Mexico’s Videgaray, Trudeau’s chief of staff Katie Telford and White House adviser Jared Kushner helped over the weekend to facilitate Sunday’s agreement. Advisers to Mexico’s incoming government, Marcelo Ebrard and Jesus Seade, were also consulted “in real time,” the source said.

(Reporting by Susan Heavey; Additional reporting by Lisa Lambert in Washington and Frank Jack Daniel in Mexico City; Editing by Franklin Paul and Paul Simao)

Trump says he wants two-state solution for Mideast conflict

U.S. President Donald Trump and Israeli Prime Minister Benjamin Netanyahu hold a bilateral meeting during the 73rd session of the United Nations General Assembly at U.N. headquarters in New York, U.S., September 26, 2018. REUTERS/Carlos Barria

By Steve Holland

UNITED NATIONS (Reuters) – U.S. President Donald Trump said on Wednesday he wanted a two-state solution to resolve the Israeli-Palestinian conflict, the clearest expression yet of his administration’s support for such an outcome.

The Trump administration has in the past said it would support a two-state solution if both sides agreed to it.

Trump, in a meeting with Israeli Prime Minister Benjamin Netanyahu at the United Nations, also said he wanted to unveil a peace plan in the next two to three months.

“I like a two-state solution. That’s what I think works best … That’s my feeling,” said Trump, who is attending the annual U.N. gathering of world leaders.

Netanyahu has said that any future Palestinian state must be demilitarized and must recognize Israel as the state of the Jewish people – conditions that Palestinians say show he is not sincere about peacemaking.

The United States’ Arab allies are strong proponents of a two state solution.

“I really believe something will happen. They say it’s the toughest of all deals,” Trump said.

He added that Israel will have to do something good for the other side without elaborating.

Doubts have mounted over whether Trump’s administration can secure what he has called the “ultimate deal” since December, when the U.S. President recognized Jerusalem as Israel’s capital and then moved the U.S. Embassy there.

“It is a dream of mine to get that done prior to the end of my first term,” Trump said of an agreement on the conflict.

“I don’t want to do it in my second term. We’ll do other things in my second term,” he said. “I think a lot of progress has been made. I think that Israel wants to do something and I think that the Palestinians actually want to do something.”

Jerusalem is one of the major issues in the Israeli-Palestinian conflict. Both sides claim it as a capital. Trump’s move outraged the Palestinians, who have since boycotted Washington’s peace efforts, led by Trump’s son-in-law and adviser, Jared Kushner.

The Palestinians want to establish a state in the West Bank and the Gaza Strip and East Jerusalem. Israel captured those territories in the 1967 Middle East war and annexed East Jerusalem in a move not recognized internationally. It regards all of the city as its eternal and indivisible capital.

Asked what Israel might have to give up in return for the embassy’s move to Jerusalem, Trump replied: What will Israel have to give up after U.S. embassy move to Jerusalem? “I took probably the biggest chip off the table.

“And so obviously we have to make a fair deal, we have to do something. Deals have to be good for both parties … Israel got the first chip and it’s a big one.”

(Reporting by Steve Holland and Arshad Mohammed; Writing by Yara Bayoumy; editing by Grant McCool)

U.S. approval of $330 million military sale to Taiwan draws China’s ire

Taiwan Air Force's F-16 fighter jets fly during the annual Han Kuang military exercise at an army base in Hsinchu, northern Taiwan, July 4, 2015. REUTERS/Patrick Lin

WASHINGTON (Reuters) – The U.S. State Department has approved the sale to Taiwan of spare parts for F-16 fighter planes and other military aircraft worth up to $330 million, prompting China to warn on Tuesday that the move jeopardized Sino-U.S. cooperation.

U.S. military sales to self-ruled Taiwan, which China claims as its territory, is an irritant in the relations between the world’s two largest economies. Taiwan would still need to finalize details of the sale with U.S. companies.

“This proposed sale will contribute to the foreign policy and national security of the United States by helping to improve the security and defensive capability of the recipient, which has been and continues to be an important force for political stability, military balance, and economic progress in the region,” the Pentagon’s Defense Security Cooperation Agency said in a statement issued on Monday.

Chinese Foreign Ministry spokesman Geng Shuang said that U.S. arms sales to Taiwan were a serious breech of international law and harmed Chinese sovereignty and security interests.

FILE PHOTO: A military honour guard holds a Taiwanese national flag as he attending flag-raising ceremony at Chiang Kai-shek Memorial Hall, in Taipei, Taiwan March 16, 2018. REUTERS/Tyrone Siu

FILE PHOTO: A military honour guard holds a Taiwanese national flag as he attending flag-raising ceremony at Chiang Kai-shek Memorial Hall, in Taipei, Taiwan March 16, 2018. REUTERS/Tyrone Siu

China strongly opposes the planned arms sales and has already lodged “stern representations” with the United States, he told a daily news briefing in Beijing.

China urges the United States to withdraw the planned sale and stop military contacts with Taiwan, to avoid serious harm to both Sino-U.S. cooperation in major areas, and peace and stability in the Taiwan Strait, Geng added.

China’s Defense Ministry, in a separate statement, also condemned the planned sale, adding that the Chinese military had a “firm and unshakable” resolve to protect the country’s sovereignty and territorial integrity.

China is deeply suspicious of U.S. intentions toward Taiwan, which is equipped with mostly U.S.-made weaponry and wants Washington to sell it more advanced equipment, including new fighter jets.

In a statement on Tuesday, Taiwan’s Presidential Office thanked the United States for its support and said the island would continue to “stay in close communication and cooperation” with Washington for issues including security.

Military experts said the balance of power between Taiwan and China has shifted in favor of China, which could probably overwhelm the island unless U.S. forces came quickly to its aid.

The $330 million request covers spare parts for “F-16, C-130, F-5, Indigenous Defense Fighter (IDF), all other aircraft systems and subsystems, and other related elements of logistics and program support,” the Pentagon said, adding that it notified Congress of the possible sale. Lockheed Martin Corp makes the F-16.

The Pentagon said the proposed sale is required to maintain Taiwan’s “defensive and aerial fleet,” and would not alter the military balance in the region.

China has never renounced the use of force to bring what it sees as a wayward province under its control.

Chinese President Xi Jinping told U.S. Defense Secretary Jim Mattis during a visit to Beijing in June that Beijing was committed to peace, but could not give up “even one inch” of territory that the country’s ancestors had left behind.

(Reporting by Mohammad Zargham; Additional reporting by Yimou Lee in TAIPEI and Ben Blanchard in BEIJING; editing by Leslie Adler, Lisa Shumaker & Simon Cameron-Moore)