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Trump upbeat on China trade talks but wants broad access for U.S. firms

FILE PHOTO: U.S. Trade Representative Robert Lighthizer (2nd right) sits across from China's Vice Premier Liu He (left) during the opening of US-China Trade Talks in the Eisenhower Executive Office Building at the White House in Washington, U.S., January 30, 2019. REUTERS/Leah Millis/File Photo

By Doina Chiacu and David Lawder

WASHINGTON (Reuters) – President Donald Trump expressed optimism about forging a comprehensive trade deal with China as high-level talks continued on Thursday, but said any arrangement that fails to open Chinese markets broadly to U.S. industry and agriculture would be unacceptable.

As delegations from the world’s two top economies held the second of two scheduled days of talks in the U.S. capital aimed at easing a six-month-old trade war, Trump also said no final accord will be made until he meets with Chinese President Xi Jinping in the near future.

The talks were aimed at resolving deep differences over China’s intellectual property practices. Trump has threatened to raise tariffs on $200 billion of Chinese goods to 25 percent from 10 percent on March 2 if an agreement is not reached and impose new tariffs on the rest of Chinese goods shipped to the United States.

Trump was scheduled to meet with the leader of the Chinese delegation, Vice Premier Liu He, at the White House at 3:30 p.m. as talks conclude.

“Meetings are going well with good intent and spirit on both sides,” Trump said on Twitter. “No final deal will be made until my friend President Xi, and I, meet in the near future to discuss and agree on some of the long-standing and more difficult points.”

Trump, who has engaged in a series of fights with a variety of trade partners since becoming president in 2017, has acted as the final decision-maker in U.S. trade negotiations. Trump has vetoed multiple proposed trade deals with China, choosing to push ahead with tariffs on Chinese goods to gain leverage.

The Republican president set a high bar for any agreement in the current round of talks, writing on Twitter, “China’s representatives and I are trying to do a complete deal leaving NOTHING unresolved on the table.”

Trump said he was looking for China to open its markets “not only to Financial Services, which they are now doing, but also to our Manufacturing, Farmers and other U.S. businesses and industries. Without this a deal would be unacceptable!”

Chinese negotiators proposed a meeting between Trump and Xi next month in the Chinese city of Hainan, the Wall Street Journal reported.

Two White House officials said the Chinese had not made an invitation in the current talks for Trump to meet Xi in China soon, but added that they would not be surprised if such an offer was extended during Liu’s meeting on Thursday.

“The White House thus far has been focused on substance, not next steps,” one official told Reuters, speaking on condition of anonymity.

THUMBS UP

People’s Bank of China Governor Yi Gang declined comment on Chinese proposals as he left the delegation’s hotel for the meetings in Eisenhower Executive Office Building, next to the White House. Asked how the talks were going, Yi flashed a thumbs-up sign.

The Journal quoted anonymous sources as saying Chinese proposals mostly involved more purchases of U.S. farm and energy products and promises to invite more American capital into China’s manufacturing and financial services sectors.

U.S. officials have demanded that Beijing make deep structural changes to its industrial policies, including broad new protections for American intellectual property and an end to practices that Washington has said force U.S. companies to transfer technology to Chinese firms in exchange for market access.

The U.S. complaints, along with accusations of Chinese cyber theft of American trade secrets and a systematic campaign to acquire U.S. technology firms, were used by Trump’s administration to justify punitive tariffs on $250 billion worth of Chinese imports.

China has retaliated with tariffs of its own, but has suspended some and is allowing some purchases of U.S. soybeans during the talks.

Chinese officials have said their policies do not coerce technology transfers. They have emphasized steps already taken, including reduced automotive tariffs and a draft foreign investment law expected to be approved in March that improves access for foreign firms and promises to outlaw “administrative means to force the transfer of technology.”

A crucial component of any progress in the talks, according to U.S. officials, is agreement on a mechanism to verify and enforce China’s follow-through on any reform pledges. This could maintain the threat of U.S. tariffs on Chinese goods for the long term.

The U.S. tariffs on Chinese goods are just one front in Trump’s efforts to upend the global trading order with his “America First” strategy. He has also imposed global tariffs on imported steel and aluminum, washing machines and solar panels and has threatened to raise tariffs on imported cars unless Japan and the European Union offer trade concessions.

(Reporting by Doina Chiacu, Susan Heavey, Chris Prentice, Jeff Mason, Steve Holland, Alexandra Alper and David Lawder; Writing by David Lawder; Editing by Will Dunham)

Trump says time, location for summit with North Korea’s Kim has been set

FILE PHOTO: U.S. President Donald Trump arrives to deliver remarks on border security and the partial shutdown of the U.S. government in the Diplomatic Room at the White House in Washington, U.S., January 19, 2019. REUTERS/Yuri Gripas/File Photo/File Photo

WASHINGTON (Reuters) – U.S. President Donald Trump said on Thursday a time and location for his second summit with North Korea’s Kim Jong Un had been agreed upon, but he did not give any details and said they would be announced next week.

Secretary of State Mike Pompeo said in an interview on Wednesday he was dispatching a team to prepare for the summit to be held somewhere in Asia in late in February.

The last summit, which took place in Singapore in June, was the first such event between a sitting U.S. president and a North Korean leader.

The meeting resulted in a vague commitment by Kim to work toward the denuclearization of the Korean peninsula. But he has not yet taken concrete steps to that end, in Washington’s view.

Speaking in the Oval Office, Trump said he was making tremendous progress with North Korea, but provided no evidence.

(Reporting by Steve Holland; Writing by Makini Brice; Editing by David Alexander and Sonya Hepinstall)

‘El Chapo’ decided ‘who lives and who dies’ as drug boss, U.S. jury told

Assistant U.S. Attorney Andrea Goldbarg points at Mexican drug lord Joaquin "El Chapo" Guzman (back row C) in this courtroom sketch during Guzman's trial in Brooklyn federal court in New York City, U.S., January 30, 2019. REUTERS/Jane Rosenberg

By Brendan Pierson

NEW YORK (Reuters) – Joaquin “El Chapo” Guzman was someone who decided “who lives and who dies,” a prosecutor said in closing arguments in the accused Mexican drug kingpin’s trial in the United States.

“The government does not have to prove that he was the boss, or the only boss, or even one of the top bosses,” Assistant U.S. Attorney Andrea Goldbarg told jurors, though she hastened to add that Guzman was “one of the top bosses, without a doubt.”

Guzman’s lawyers have claimed the cartel’s real leader is Ismael “El Mayo” Zambada, who remains at large, and that their client was framed by Zambada.

Standing in front of a table piled with trial evidence including assault rifles and bricks of cocaine, Goldbarg took a calm, no-nonsense approach as she walked the jury in federal court in Brooklyn through the charges against Guzman one by one.

Guzman, 61, was extradited to the United States in January 2017. The 10 criminal counts include engaging in a continuing criminal enterprise, drug trafficking and money laundering conspiracy, and a life sentence if he is found guilty.

Goldbarg’s summation capped an exhaustive government case that spanned 10 weeks of testimony from more than 50 witnesses, including law enforcement officials and former associates of Guzman who are cooperating with the U.S. government after striking plea deals.

Guzman’s lawyers have aggressively sought to undermine the cooperators’ credibility in their cross-examinations, something Goldbarg addressed head on.

“These witnesses were criminals,” she said. “The government is not asking you to like them.”

Accused Mexican drug lord Joaquin “El Chapo” Guzman sits in court in this courtroom sketch during Guzman’s trial in Brooklyn federal court in New York City, U.S., January 30, 2019. REUTERS/Jane Rosenberg

However, she said, their testimony was corroborated by intercepted phone calls, text messages and letters from Guzman, as well as accounting ledgers seized in a raid on one of his safe houses.

“You know these cooperating witnesses are telling the truth because you heard the same thing from the defendant’s own mouth,” she said.

The intercepted communications showed Guzman plotting drug shipments, dealing with corrupt government officials and, sometimes, ordering his adversaries killed.

“He’s the one who decides who lives and who dies,” Goldbarg said.

Goldbarg then moved methodically through the evidence linking Guzman to each of a series of drug seizures by authorities in the 1990s and 2000s. Her argument is expected to last the rest of the day.

Guzman called only one witness in his defense on Tuesday. One of his lawyers is expected to deliver his closing argument on Thursday.

(Reporting By Brendan Pierson in New York; Editing by Anthony Lin and Grant McCool)

Canada to cut Cuba presence after another diplomat falls ill

A security officer speaks on the phone at the Canada's Embassy in Havana, Cuba, April 16, 2018. REUTERS/Alexandre Meneghini

By Anna Mehler Paperny

TORONTO (Reuters) – Canada has decided to cut the number of diplomatic staff in Cuba by up to half after another diplomat fell ill, the Canadian government said in a statement on Wednesday, bringing the total to 14 Canadians suffering mysterious symptoms since 2017.

Canadian and U.S. diplomats in Havana first began complaining of dizziness, headaches and nausea in the spring of 2017. The United States reduced embassy staffing in Cuba from more than 50 to a maximum of 18, after more than two dozen personnel developed unusual illnesses.

(Reporting by Anna Mehler Paperny; Editing by Chizu Nomiyama)

U.S. spy chiefs warn Senate on many threats to the United States

FBI Director Christopher Wray, CIA Director Gina Haspel, Director of National Intelligence Dan Coats, Defense Intelligence Agency (DIA) Director Gen. Robert Ashley, National Security Agency (NSA) Director Gen. Paul Nakasone and Robert Cardillo, director of the National Geospatial-Intelligence Agency, testify to the Senate Intelligence Committee hearing about "worldwide threats" on Capitol Hill in Washington, U.S., January 29, 2019. REUTERS/Joshua Roberts

By Patricia Zengerle and Doina Chiacu

WASHINGTON (Reuters) – China and Russia pose the biggest risks to the United States, and are more aligned than they have been in decades as they target the 2020 presidential election and American institutions to expand their global reach, U.S. intelligence officials told senators on Tuesday.

The spy chiefs broke with President Donald Trump in their assessments of the threats posed by North Korea, Iran and Syria. But they outlined a clear and imminent danger from China, whose practices in trade and technology anger the U.S. president.

While China and Russia strengthen their alliance, Director of National Intelligence Dan Coats said some American allies are pulling away from Washington in reaction to changing U.S. policies on security and trade.

The directors of the CIA, FBI, National Security Agency and other intelligence agencies flanked Coats at the Senate Intelligence Committee hearing. They described an array of economic, military and intelligence threats, from highly organized efforts by China to scattered disruptions by terrorists, hacktivists and transnational criminals.

FBI Director Christopher Wray, CIA Director Gina Haspel, Director of National Intelligence Dan Coats, Defense Intelligence Agency (DIA) Director Gen. Robert Ashley, National Security Agency (NSA) Director Gen. Paul Nakasone and Robert Cardillo, director of the National Geospatial-Intelligence Agency, testify to the Senate Intelligence Committee hearing about “worldwide threats” on Capitol Hill in Washington, U.S., January 29, 2019. REUTERS/Joshua Roberts

“China, Russia, Iran, and North Korea increasingly use cyber operations to threaten both minds and machines in an expanding number of ways – to steal information, to influence our citizens, or to disrupt critical infrastructure,” Coats said.

“Moscow’s relationship with Beijing is closer than it’s been in many decades,” he told the panel.

The intelligence officials said they had protected the 2018 U.S. congressional elections from outside interference, but expected renewed and likely more sophisticated attacks on the 2020 presidential contest.

U.S. adversaries will “use online influence operations to try to weaken democratic institutions, undermine alliances and partnerships, and shape policy outcomes,” Coats said.

The intelligence chiefs’ assessments broke with some past assertions by Trump, including on the threat posed by Russia to U.S. elections and democratic institutions, the threat Islamic State poses in Syria, and North Korea’s commitment to denuclearize.

Coats said North Korea is unlikely to give up its nuclear weapons. Trump has said the country no longer poses a threat.

Coats also said Islamic State would continue to pursue attacks from Syria, as well as Iraq, against regional and Western adversaries, including the United States. Trump, who plans to withdraw U.S. troops from Syria, has said the militant group is defeated.

The intelligence officials also said Iran was not developing nuclear weapons in violation of the 2015 nuclear agreement, even though Tehran has threatened to reverse some commitments after Trump pulled out of the deal.

Senators expressed deep concern about current threats.

“Increased cooperation between Russia and China – for a generation that hasn’t been the case – that could be a very big deal on the horizon in terms of the United States,” said Senator Angus King, an independent who caucuses with Democrats.

CHINA BIGGEST COUNTERINTELLIGENCE THREAT

The officials painted a multifaceted picture of the threat posed by China, as they were questioned repeatedly by senators about the No. 2 world economy’s business practices as well as its growing international influence.

“The Chinese counterintelligence threat is more deep, more diverse, more vexing, more challenging, more comprehensive and more concerning than any counterintelligence threat I can think of,” FBI Director Christopher Wray said.

He said almost all the economic espionage cases in the FBI’s 56 field offices “lead back to China.”

Coats said intelligence officials have been traveling around the United States and meeting with corporate executives to discuss espionage threats from China.

He said China has had a meteoric rise in the past decade, adding, “A lot of that was achieved by stealing information from our companies.”

Speaking in Beijing, Chinese foreign ministry spokesman Geng Shuang said he hoped the United States would abandon its zero-sum thinking and work with China, Russia and the rest of the international community to ensure global security.

Tuesday’s testimony came just a day after the United States announced criminal charges against China’s Huawei Technologies Co Ltd [HWT.UL], escalating a fight with the world’s biggest telecommunications equipment maker and coming days before trade talks between Washington and Beijing.

Coats also said Russia’s social media efforts will continue to focus on aggravating social and racial tensions, undermining trust in authorities and criticizing politicians perceived to be anti-Russia.

Senator Mark Warner, the panel’s top Democrat, said he was particularly concerned about Russia’s use of social media “to amplify divisions in our society and to influence our democratic processes” and the threat from China in the technology arena.

The Senate Intelligence Committee is one of several congressional panels, along with Special Counsel Robert Mueller, investigating whether there were any connections between Trump’s 2016 and Russian efforts to influence the election.

Russia denies attempting to influence U.S. elections, while Trump has denied his campaign cooperated with Moscow.

Coats declined to respond when Democratic Senator Ron Wyden asked whether Trump’s not releasing records of his discussions with Russian President Vladimir Putin put U.S. intelligence agencies at a disadvantage.

“To me from an intelligence perspective, it’s just Intel 101 that it would help our country to know what Vladimir Putin discussed with Donald Trump,” Wyden said.

(Reporting by Patricia Zengerle and Doina Chiacu; Additional reporting by Ben Blanchard in Beijing; editing by Mary Milliken and Jonathan Oatis)

North Korea says it wants peace, relations with U.S.

Directional signs bearing North Korean and U.S. flags are seen near the demilitarized zone in Paju, South Korea, June 12, 2018. REUTERS/Kim Hong-Ji

By Stephanie Nebehay

GENEVA (Reuters) – North Korea said on Tuesday that relations with the United States will develop “wonderfully at a fast pace” if Washington responds to its efforts on denuclearization with trustworthy measures and practical actions.

North Korea’s ambassador to the United Nations in Geneva, Han Tae Song, told the U.N.-sponsored Conference on Disarmament that Pyongyang would continue working to establish a “permanent and durable peace mechanism on the Korean peninsula”.

The landmark summit between North Korean leader Kim Jong Un and U.S. President Donald Trump last June produced a promise to work toward the complete denuclearization of the divided peninsula. Progress since then has been patchy.

Washington is demanding concrete action, such as a full disclosure of North Korea’s nuclear and missile facilities, before agreeing to key goals of Pyongyang – easing international sanctions and declaring an official end to the 1950-53 Korean War that ended with an armistice.

The summit had brought about a dramatic turn in relations that had been “the most hostile on earth” and contributed to ensuring peace and security on the peninsula, Han said..

He referred to the two leaders’ joint statement issued after their meeting in Singapore and Kim’s New Year’s Address, adding:

“Accordingly we declared that we would neither make and test nuclear weapons any longer nor use and proliferate them and we have taken various practical measures.

“If the U.S. responds to our efforts with trustworthy measures and corresponding practical actions, bilateral relations will develop wonderfully at a fast pace through the process of taking more definite and epoch-making steps,” he said.

Han told Reuters that he had no information on a possible second summit between Kim and Trump, which the White House has said would be held in late February without saying where.

“As we open a new year, we are determined to seize this hard-won unprecedented window of opportunity of diplomacy,” South Korea’s deputy ambassador Lee Jang-Keun told the Geneva forum on Tuesday.

“The recent announcement by the U.S. of holding a second U.S.-DPRK summit meeting in late February is another harbinger of hope,” he said.

South Korea’s foreign minister Kang Kyung-wha told Reuters at Davos last week that North Korea must make concrete pledges toward curbing its nuclear weapons program, such as dismantling its main nuclear complex and allowing international inspections to confirm the process, when leader Kim meets Trump as soon as next month.

(Reporting by Stephanie Nebehay; editing by Angus MacSwan)

Record-breaking cold clobbers two-thirds of the U.S.

FILE PHOTO: Cars move along a snow-covered road in Denver, U.S., January 22, 2019 in this video grab obtained from social media video by Reuters January 28, 2019. Denver International Airport/via REUTERS

By Rich McKay

(Reuters) – Two-thirds of the continental United States will be a frozen ice box Tuesday, as the so-called polar vortex of frigid arctic air spins across the U.S. Midwest, clips the Great Lakes, the Ohio Valley and pushes on into New England.

And the sub-zero cold and bitter winds will stick around for a couple of days, possibly bringing dozens of record lows with a life-threatening freeze before dissipating by the weekend, the National Weather Service reported (NWS).

The polar vortex is a mass of freezing air that normally spins around the North Pole, but has slipped southward and swirled into the United States, forecasters said.

The hardest-hit area will be the Midwest, where wind chill could bring temperatures as low as -50 F (-46C) in the Chicago area by Tuesday evening, the NWS reported. One-to-two feet of snow was forecast in Wisconsin, and six inches in Illinois.

Even Alabama and Mississippi could see snow, the service added.

“This arctic air dumps out of Canada and will affect us for days,” said Richard Bann, a forecaster with the NWS’s Weather Prediction Center in College Park Maryland.

“We’ll even get some snow this afternoon in the (Washington) D.C. area,” he said. “And because it’s so cold, there won’t be much of a warm-up Wednesday. You’ll have to wait for the weekend, before you see any higher temperatures.”

Blizzard conditions were predicted across parts of the western Ohio Valley and snow was expected through Wednesday from the Great Lakes region into New England.

States of emergency have been declared from Wisconsin and Michigan, down to Alabama and Mississippi.

In Illinois, Governor J.B. Pritzker said wind chill could drive temperatures to -55 degrees Fahrenheit in northern parts of the state on Tuesday evening, a level that can cause frostbite in a matter of minutes.

“This is a potentially historic winter storm that will bring extreme cold to our state and all Illinoisans must prepare,” Pritzker said in a written statement released by his office.

Parts of north and central Georgia are expecting about 2 inches of snow or more in the coming days, along with freezing rain and ice-slicked highways. Georgia Gov. Brian Kemp shut down government offices in 35 counties Tuesday, and schools across swaths of the state are also closed.

Air traffic in the region is affected, with more than 1,200 flights canceled and as many delayed, the flight tracking site FlightAware.com reported early Tuesday.

Atlanta-based Delta Air Lines Inc said it would waive flight change fees for passengers affected by the winter weather in Chicago, Detroit and areas of the Upper Midwest.

(Reporting by Rich McKay in Atlanta, Maria Caspani and Gina Cherelus in New York and Dan Whitcomb in Los Angeles; Editing by Andrew Heavens)

U.S. committed to pulling foreign forces out of Afghanistan: official

Afghanistan's President Ashraf Ghani (C) talks with the U.S. special envoy for peace in Afghanistan, Zalmay Khalilzad (L), during a meeting in Kabul, Afghanistan January 27, 2019. Presidential Palace office/Handout via REUTERS

By Rupam Jain

KABUL (Reuters) – A senior U.S. government official, speaking after six days of U.S. peace talks with Afghan Taliban militants, said on Monday that Washington was committed to withdrawing foreign forces from Afghanistan to end more than 17 years of war.

The official, who declined to be identified, described “significant progress” in talks last week with the Taliban in Qatar about a foreign troop pullout, but more negotiations were needed on a ceasefire and its timing.

“Of course we don’t seek a permanent military presence in Afghanistan,” the official said in the capital Kabul.

“Our goal is to help bring peace in Afghanistan and we would like a future partnership, newly defined with a post peace government,” the official told Reuters. “We would like to leave a good legacy.”

There could not be a withdrawal without a ceasefire, the official said.

The issue looms as a sticking point in the next round of talks on Feb. 25, with the U.S. official saying Taliban negotiators wanted a full withdrawal before a ceasefire.

Despite the presence of U.S.-led foreign forces training, advising and assisting their Afghan counterparts, the Taliban control nearly half of Afghanistan and stage near-daily attacks against the Western-backed Afghan government and its security forces.

Afghan President Ashraf Ghani said last week that 45,000 members of the country’s security forces had been killed since he took office in 2014.

There were reports last month that the United States was considering pulling out almost half of its forces, but a White House spokesman said U.S. President Donald Trump had not issued orders to withdraw. However, the administration has not denied the reports.

CORE CONCERNS

Both U.S. officials and the hardline Islamic group hailed progress after the talks on Saturday with U.S. special peace envoy Zalmay Khalilzad. He told the New York Times on Monday that a draft framework had been completed but details still needed to be fleshed out.

Taliban sources told Reuters on Saturday that the United States had agreed on the withdrawal of foreign troops within 18 months of the signing of a pact but the U.S. official said a timeline was not discussed.

The United States has about 14,000 troops in Afghanistan as part of a NATO-led mission and a U.S. counter-terrorism mission largely directed at groups such as Islamic State and al Qaeda.

Some 8,000 troops from 38 other countries are participating in the operation, known as Resolute Support.

The official said progress was made on addressing core U.S. concerns that Afghanistan will not be used as a base by al Qaeda or Islamic State for attacks against the United States and its allies.

“That is why we came to Afghanistan in the first place,” the official said.

Apart from the ceasefire, the Taliban did not discuss the need for talks with the Afghan government to reach a durable political settlement, the U.S. official said.

The Taliban have repeatedly refused to talk to the Afghan government, which they see as a puppet of the United States, throwing into question how effective a peace deal could really be.

The Taliban do want, however, to join an interim government post-deal – something that alarms Ghani.

Khalilzad, an Afghan-born American diplomat, met Ghani for four hours on Sunday to outline progress and seek his support.

In response, Ghani said in a televised address that the presence of foreign forces was based on an international agreement and they will not be required for ever.

“No Afghans want foreign forces in their country for the long term,” Ghani said.

“The current presence of foreign forces is based on need…and according to an exact and arranged plan we are trying to bring down that number to zero.”

(Reporting by Rupam Jain and Abdul Qadir Sediqi, Writing by Greg Torode; Editing by Nick Macfie)

Venezuela’s Guaido calls for new protests as pressure on Maduro rises

FILE PHOTO: Venezuelan opposition leader and self-proclaimed interim president Juan Guaido accompanied by his wife Fabiana Rosales, speaks to the media after a holy Mass at a local church in Caracas, Venezuela, Jan. 27, 2019. REUTERS/Carlos Barria/File Photo

By Brian Ellsworth

CARACAS (Reuters) – Juan Guaido, the Venezuelan opposition leader and self-proclaimed president, on Monday called for new street demonstrations as pressure intensified on President Nicolas Maduro and the crisis-stricken OPEC nation.

Countries around the world have recognized Guaido as Venezuela’s rightful leader, and the United States vowed to starve Maduro’s administration of oil revenue after he was sworn in Jan. 10 for a second term that was widely dubbed illegitimate.

Maduro says the United States is promoting a coup against him and promised to stay in office, backed by Russia and China, which have bankrolled his government and fought off efforts to have his government disavowed by the United Nations.

Guaido said opposition sympathizers should take to the streets on Wednesday to pass out copies of a pamphlet proposing amnesty that would give some legal protection to members of the military in hopes they will turn against Maduro.

“We must remain united as active agents of change in every corner of the country,” Guaido tweeted on Monday. “We’re doing well, very well, Venezuela!”

On Sunday, Israel and Australia joined countries backing the 35-year-old Guaido, and U.S. President Donald Trump said his government had accepted Venezuelan opposition figure Carlos Alfredo Vecchio as a diplomatic representative to the United States.

Guaido took advantage of a major street demonstration on Jan. 23 to swear himself in as the country’s rightful leader, accusing Maduro of usurping power following a disputed 2018 re-election that countries around the world described as a fraud.

Guaido is asking for help in getting control of the Venezuelan government’s offshore assets.

In recent days, he urged British Prime Minister Theresa May and Bank of England Governor Mark Carney to block Maduro’s government from collecting more than $1 billion in gold held by the Bank of England.

Venezuela’s once-buoyant socialist economic system has imploded from corruption and mismanagement since the collapse of world oil prices in 2014, pushing inflation to almost 2 million percent and driving millions of Venezuelans to neighboring countries.

Maduro says his government is the victim of an “economic war” led by his political adversaries with the help of Washington, which has levied several rounds of sanctions against the country since 2017.

(Reporting by Brian Ellsworth; Editing by Jeffrey Benkoe)

U.S. diplomats leave Caracas embassy as Washington backs Maduro rival

A U.S. flag waves at the U.S. Embassy in Caracas, Venezuela, January 25, 2019. REUTERS/Adriana Loureiro

By Marcos Ascanio

CARACAS (Reuters) – Some U.S. diplomats left the embassy in Caracas for the airport on Friday in a convoy escorted by police, according to a Reuters witness, after Venezuelan President Nicolas Maduro broke off relations with Washington and ordered American personnel out.

The United States has rejected Maduro, a socialist in power since 2013, as the oil-rich nation’s legitimate head of state and has thrown its support behind opposition leader Juan Guaido, the head of Venezuela’s National Assembly.

Guaido, who has galvanized the country’s opposition, proclaimed himself interim president on Wednesday. But he still has no control over the state’s functions, which remain loyal to Maduro despite a deep economic and political crisis.

People wait for a news conference of Venezuela’s opposition leader Juan Guaido in Caracas, Venezuela, January 25, 2019. REUTERS/Carlos Garcia Rawlins

The State Department has ordered some U.S. government workers to leave Venezuela and said U.S. citizens should consider leaving the South American country.

It did not immediately respond to a request for comment on the movement of embassy personnel on Friday.

A Reuters witness at around 8:30 a.m. local time (1230 GMT) saw a convoy of sport utility vehicles accompanied by police motorcycles and vehicles with flashing lights drive onto a Caracas highway in the direction of the airport. Other police blocked regular traffic.

Another video circulating on social media showed the same caravan leaving the embassy, a fortified compound overlooking the city center.

Maduro, in a fiery speech on Wednesday, said he was cutting off diplomatic relations with the United States for instigating a “coup” against him, though U.S. President Donald Trump’s administration then said its relations would be with Guaido.

To ratchet up pressure on Maduro, who began a second term on Jan. 10 following an election last year widely considered to be a fraud, the United States is seeking to cut off funds for his government, U.S. officials said on Thursday.

Both Guaido, who has not appeared in public since mass anti-government protests on Wednesday, and Maduro are scheduled to hold press conferences on Friday.

In an interview with broadcaster Univision on Thursday, Guaido described the recent events as “the beginning of the end” for Maduro, who has presided over Venezuela’s worst ever economic crisis. Guaido said he would work to guarantee humanitarian aid and take new measures to pressure Maduro.

“Our challenge is to secure free elections, and we want them as soon as possible. But we are living in a dictatorship,” he said, from an undisclosed location.

(Additional reporting; Writing by Angus Berwick; Editing by Brian Ellsworth and Paul Simao)

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