Iran says it might reconsider cooperation with U.N. nuclear watchdog

Head of Iran's Atomic Energy Organization Ali-Akbar Salehi attends the opening of the International Atomic Energy Agency (IAEA) General Conference at their headquarters in Vienna, Austria September 18, 2017.

By Bozorgmehr Sharafedin

LONDON (Reuters) – Iran said on Monday it might reconsider its cooperation with the U.N. nuclear watchdog if the United States failed to respect its commitments in the nuclear deal Tehran struck with world powers in 2015.

U.S. President Donald Trump must decide by mid-January whether to continue waiving U.S. sanctions on Iran’s oil exports under the terms of the nuclear pact that eased economic pressure on Tehran in exchange for limits on its nuclear program.

In October, Trump refused to certify that Iran was complying with the deal, also known by its acronym JCPOA, even though the International Atomic Energy Agency (IAEA) said it was.

“If the United States does not meet its commitment in the JCPOA, the Islamic Republic of Iran would take decisions that might affect its current cooperation with the International Atomic Energy Agency (IAEA),” Iran’s nuclear chief, Ali Akbar Salehi, was quoted as telling IAEA Director General Yukiya Amano in a phone call.

The IAEA is an international organization that seeks to promote the peaceful use of nuclear energy, and is scrutinizing Iran’s compliance with the agreement.

Supporters of the deal insist that strong international monitoring will prevent Iran from developing nuclear bombs. Iran has denied that it is seeking nuclear weapons.

Iranian foreign ministry spokesman Bahram Qasemi said on Monday that Tehran “would not prejudge the decision that America would take on January 13,” but said it was ready for all possible outcomes and “all options were on the table”.

Deputy foreign minister Abbas Araghchi said world powers should be ready for a possible U.S. withdrawal from the deal.

“The international community might come to this conclusion that the United States will withdraw from the JCPOA in the next few days,” Araghchi was quoted as saying by the state news agency IRNA.

“The international community must be ready for this development,” Araghchi added, warning that such a decision would affect stability in the region.

Trump is weighing whether the pact serves U.S. security interests, while the other world powers that negotiated it – France, Germany, Britain, Russia and China – still strongly support it.

U.S. Defense Secretary Jim Mattis said in September that the United States should consider staying in the Iran deal unless it were proven that Tehran was not abiding by the agreement or that it was not in the U.S. national interest to do so.

(Reporting by Bozorgmehr Sharafedin; Editing by Robin Pomeroy, William Maclean)

U.S. targets former Venezuela food minister in new sanctions

Rodolfo Marco Torres (C), newly elected governor of Aragua state, is sworn in to the National Constituent Assembly during a ceremony at Palacio Federal Legislativo, in Caracas, Venezuela October 18, 2017.

WASHINGTON (Reuters) – The United States imposed sanctions on Friday on four current or former Venezuelan government officials, including an ex-food minister who is accused of corruption and mismanagement of the country’s food supply.

The U.S. Treasury said in a statement that it had put the former food minister, Rodolfo Marco, who is also a former finance minister appointed by President Nicolas Maduro, on its Venezuela sanctions list.

It also listed Francisco Rangel, a former governor of Bolivar state; Fabio Zavarse Pabon, a commander in the national armed forces; and Gerardo Izquierdo Torres, a state minister.

The Treasury action freezes any assets the men have under U.S. jurisdiction and bars U.S. citizens from dealing with them.

Venezuela’s Information Ministry did not immediately respond to an email seeking comment.

The move is Washington’s latest action targeting individual politicians and security figures for what U.S. President Donald Trump has called an erosion of democracy. Venezuela is reeling from an economic crisis, with millions struggling with food and medicine shortages.

“President Maduro and his inner circle continue to put their own interests above those of the Venezuelan people,” U.S Treasury Secretary Steve Mnuchin said in a statement.

“This action underscores the United States’ resolve to hold Maduro and others engaged in corruption in Venezuela accountable.”

Maduro regularly laughs off Washington’s disapproval and blames the U.S. “empire” for Venezuela’s economic woes.

(Reporting by David Alexander and Lesley Wroughton; Editing by Tim Ahmann and Lisa Von Ahn)

Iran stages pro-government rallies, cleric urges firm punishment for protest leaders

By Parisa Hafezi

ANKARA (Reuters) – Tens of thousands of government supporters rallied across Iran on Friday, swearing allegiance to the clerical establishment and accusing arch enemy the United States of instigating the largest anti-government protests in nearly a decade, state TV reported.

Tehran’s Friday prayer leader called on authorities to deal “firmly” with those responsible for igniting over a week of illegal rallies, in which 22 people were killed and more than 1,000 people were arrested, according to Iranian officials.

“But those ordinary Iranians who were deceived by these American-backed rioters should be dealt with based on Islamic clemency,” cleric Ahmad Khatami told worshippers at Tehran university, TV reported.

Khatami also called on the government to “pay more attention to people’s economic problems.”

The anti-government rallies erupted on December 28 in Iran’s holy Shi’ite city of Mashhad after the government announced plans to increase fuel prices and dismantle monthly cash handout to lower-income Iranians.

The protests spread to more than 80 cities and rural towns, staged by thousands of young and working class Iranians angry about official corruption, unemployment and a deepening gap between rich and poor.

The authorities have produced no evidence of U.S. involvement in the protests, which lacked a unifying leader.

GUARDS QUELLED UNREST

But in Moscow, Russian Deputy Foreign Minister Sergei Ryabkov said Iran’s statements that external influences fomented the unrest were not groundless and Washington used any possible method to destabilize governments it disliked.

He added that U.S. calls for an extraordinary meeting of the U.N. Security Council to discuss the turmoil in Iran interfered with the country’s sovereignty, news agency Interfax said. The Council will meet on Friday at 3 p.m. (2000 GMT) to discuss Iran, Council president Kazakhstan has said.

Residents contacted by Reuters in various cities said the protests had shown sign of abating since Thursday, after the establishment intensified a crackdown on the protesters by dispatching Revolutionary Guards forces to several provinces.

Iran’s elite Guards and its affiliated Basij militia suppressed the country’s 2009 unrest over alleged election fraud, in which dozens of pro-reform Iranians were killed.

Iranian officials said the protests were the result of foreign instigation and mocked U.S. President Donald Trump’s support of protesters against what he called a “brutal and corrupt” establishment.

On Friday rallies, protesters chanted “Death to America” and “Death to Israel”, carrying pictures of Iran’s top authority Supreme Leader Ayatollah Ali Khamenei, and waved Iranian flags.

Television footage of rallies in several cities showed people chanting “We support Imam Khamenei … We will not leave him alone in his fight against enemies”.

“Demonstrators demand the punishment of those behind foreign-linked riots which insulted religion and our authorities,” state television reported, referring to the anti-government protests in which social media footage showed protesters tearing down pictures of Khamenei.

Khatami also called on the government to “pay more attention to people’s economic problems.”

UNITED FRONT

To allay tension, the government has suspended its plans to cut cash handouts and increase fuel prices.

“There are workers who say they have not received their salaries for months … These problems should be resolved,” Khatami said, according to state TV.

Fearing that further unrest could undermine the Islamic republic altogether, Iran’s faction-ridden political elite has displayed a united front.

But Khamenei and his hardline allies have criticized Rouhani for failing to revive the economy after most sanctions on Iran were lifted in 2016 under a nuclear deal reached between Tehran and major powers aimed at curbing the country’s nuclear program.

Rouhani secured the deal in 2015, raising hopes of better economic times among many Iranians, but discontent has since risen over the lack of broad improvement in living standards.

(Writing by Parisa Hafezi, Editing by William Maclean)

U.S. suspends at least $900 million in security aid to Pakistan

President Donald Trump speaks during an address from the White House in Washington, U.S., December 6, 2017.

By Arshad Mohammed and Jonathan Landay

WASHINGTON (Reuters) – The United States said on Thursday it was suspending at least $900 million in security assistance to Pakistan until it takes action against the Afghan Taliban and the Haqqani network militant groups.

The U.S. State Department announced the decision, saying it reflected the Trump administration’s frustration that Pakistan has not done more against the two groups that Washington says use sanctuaries in Pakistan to launch attacks in neighboring Afghanistan that have killed U.S., Afghan and other forces.

The department declined to say exactly how much aid would be suspended, saying the numbers were still being calculated and included funding from both the State and Defense departments.

Pakistan has long rejected accusations that it fails to tackle the militants battling the Kabul government and U.S.-led foreign forces in Afghanistan, from sanctuaries on its side of the border.

On Friday, Pakistan criticized what it called “shifting goalposts” and said the U.S. suspension of aid was counter-productive.

U.S. officials said two main categories of aid are affected: foreign military financing (FMF), which funds purchases of U.S. military hardware, training and services, and coalition support funds (CSF), which reimburse Pakistan for counter-terrorism operations. They said they could make exceptions to fund critical U.S. national security priorities.

CSF funds, which fall under Defense Department authority, are covered by the freeze, said Pentagon spokesman Commander Patrick Evans, saying Congress authorized up to $900 million in such money for Pakistan for fiscal year 2017, which ended Sept. 30. None of that money has yet been disbursed.

The freeze also covers $255 million in FMF for fiscal year 2016, which falls under State Department authority and whose suspension has already been announced, as well as unspecified amounts of FMF that went unspent in earlier fiscal years.

Briefing reporters, U.S. officials stressed the suspension did not affect civilian aid to Pakistan and that the money could go through if Islamabad took decisive action against the groups.

“Our hope is that they will see this as a further indication of this administration’s immense frustration with the trajectory of our relationship and that they need to be serious about taking the steps we have asked in order to put it on more solid footing,” a senior State Department official told reporters.

“We’re hoping that Pakistan will see this as an incentive, not a punishment,” he added.

The Trump administration briefed Congress on its decision on Wednesday.

‘COUNTERPRODUCTIVE’

Pakistan is largely shrugging off the proposed U.S. aid cuts but frets that Washington could take more drastic measures to deter what it sees as Pakistan’s support for the Taliban.

Pakistan is worried about the influence of old rival India in Afghanistan, and at the same time has been battling a Pakistani Taliban insurgency that Pakistan says was largely fueled by its support for the U.S. war on terrorism launched after the Sept. 11, 2001, attacks on the United States.

“Arbitrary deadlines, unilateral pronouncements and shifting goalposts are counterproductive in addressing common threats,” the Pakistani foreign ministry said in a statement.

Pakistan was engaged with the U.S. administration on security cooperation and awaited further detail, it said.

Tense ties between the uneasy allies nosedived on Jan. 1 when U.S. President Donald Trump lashed out on Twitter against Islamabad’s “lies and deceit” despite $33 billion in aid and the White House warned of “specific actions” to pressure Pakistan.

Trump’s frustrations are shared by some U.S. lawmakers, who accused Pakistan of playing a double game by allowing militant groups sanctuary – which Islamabad denies – despite promising to crack down on them.

“Pakistan is one of the most duplicitous governments I’ve had any involvement with,” Senator Bob Corker, Republican chairman of the Senate Foreign Relations Committee, told reporters. “Their, in essence, support of the Haqqani network, or … allowing them to have safe harbor in their country when they’re the greatest threat to our men and women in uniform.”

South Asia expert Christine Fair of Georgetown University voiced concern that Pakistan might retaliate for the suspension by closing the highways from the port city of Karachi on which equipment is trucked to land-locked Afghanistan and the airspace through which supplies are flown to U.S.-led international forces there.

“What is the plan if they close the GLOCs?” she asked, using the military acronym for Ground Lines of Communications.

“What if the Pakistanis shut down the ALOCs (Air Lines of Communications). How do you keep supplying the ANSF?” she asked, referring to the Afghan national security forces.

“Pakistan could be within their rights if they tell us you don’t have flyover rights anymore,” she said.

(Addititional reporting by David Alexander, Phil Stewart and Patricia Zengerle and Drazen Jorgic in ISLAMABAD; Writing by Arshad Mohammed; Editing by James Dalgleish, Robert Birsel)

North Korea agrees to talks after U.S., South Korea postpone military drills

Ribbons bearing messages wishing for unification between the two Koreas hang on a barbed-wire fence near the militarized zone separating the two Koreas, in Paju, South Korea, December 21, 2017.

By Christine Kim

SEOUL (Reuters) – North Korea agreed on Friday to hold official talks with the South next week, the first in more than two years, hours after the United States and South Korea delayed a military exercise amid a standoff over the North’s nuclear and missile programs.

South Korea said the North had sent its consent for the talks to be held on Tuesday. The last time the two Koreas engaged in official talks was in December 2015.

The meeting will take place at the border truce village of Panmunjom where officials from both sides are expected to discuss the Winter Olympics, to be held in the South next month, and other inter-Korean relations, South Korean Unification Ministry spokesman Baik Tae-hyun told reporters.

North Korea asked for further negotiations about the meeting to be carried out via documented exchanges, Baik said.

North Korean leader Kim Jong Un opened the way for talks with South Korea in a New Year’s Day speech in which he called for reduced tensions and flagged the North’s possible participation in the Winter Olympics.

But Kim remained steadfast on the issue of nuclear weapons, saying the North would mass produce nuclear missiles for operational deployment and again warned he would launch a nuclear strike if his country was threatened.

U.S. President Donald Trump and his South Korean counterpart Moon Jae-in announced on Thursday that annual large-scale military drills would now take place after the Olympics.

The North sees these drills as preparations for invasion and just cause for its weapons programs that it conducts in defiance of U.N. Security Council resolutions. South Korea and the United States are technically still at war with North Korea after the 1950-53 Korean conflict ended with a truce, not a peace treaty.

Trump had earlier called the proposed inter-Korean talks a “good thing” and that he would send a high-level delegation, including members of his family, to the Olympics, according to South Korea’s presidential office.

In a tweet, Trump, who hurled fresh insults at the North Korean leader this week, took credit for any dialogue that takes place.

“Does anybody really believe that talks and dialogue would be going on between North and South Korea right now if I wasn’t firm, strong and willing to commit our total ‘might’ against the North,” Trump tweeted.

North Korea regularly threatens to destroy the United States and its two key Asia allies, Japan and South Korea.

Chinese Foreign Ministry spokesman Geng Shuang welcomed North and South Korea “taking positive steps to improve ties”, and said the postponement of the military exercises was “without doubt a good thing”.

China’s Commerce Ministry said it would limit exports of crude oil, refined oil products, steel and other metals to North Korea, in line with tough new sanctions imposed by the United Nations.

Japanese Defence Minister Itsunori Onodera sounded a note of caution about the proposed talks.

“I think what is important is to maintain a firm defense posture,” he told reporters in Tokyo.

“North Korea goes through phases of apparent dialogue and provocation but either way, North Korea is continuing its nuclear and missile development. We have no intention of weakening our warning and surveillance.”

The ramped-up momentum for inter-Korean dialogue follows a year of missile and nuclear tests by North Korea as well as an exchange of bellicose comments from Trump and Kim, which raised alarm across the world.

Earlier this week, Nikki Haley, the U.S. ambassador to the United Nations, said Washington had heard reports that Pyongyang might be preparing to fire another missile.

South Korea’s defense ministry has said it had yet to see any evidence of an imminent missile launch.

Analysts with the website 38 North, which tracks North Korea, reported Pyongyang may be preparing to test a rocket engine at a facility in Sohae, North Pyongan province, where all of the North’s satellite launches have taken place since 2012.

Commercial satellite imagery from Dec. 25 showed a rail-mounted environment shelter had been moved away from a test stand, indicating that an engine test may be in the near future, the website said, rather than a new rocket launch suspected in recent media reports.

(Reporting by Christine Kim; Additional reporting by Hyonhee Shin and Josh Smith in SEOUL, Olivier Fabre in TOKYO and Philip Wen in BEIJING and Denis Pinchuk in MOSCOW; Editing by Michael Perry and Nick Macfie)

‘World is doomed’: Erdogan denounces U.S. justice after Turkish banker trial

Turkish President Tayyip Erdogan speaks during a ceremony in Ankara, Turkey, December 21, 2017. Kayhan

ISTANBUL (Reuters) – Tayyip Erdogan denounced U.S. justice on Friday and suggested Turkey could rethink some bilateral agreements with Washington, after a U.S. court convicted a Turkish banker in a trial that included testimony of corruption by top Turkish officials.

In his first public comments on Wednesday’s verdict, the Turkish president cast the case as American plot to undermine Turkey’s government and economy – an argument likely to resonate with nationalist supporters.

“If this is the U.S. understanding of justice, then the world is doomed,” Erdogan told a news conference before his departure to France for an official visit.

A U.S. jury convicted an executive of Turkey’s majority state-owned Halkbank  of evading Iran sanctions, at the close of the trial which has strained relations between the NATO allies. Some of the court testimony implicated senior Turkish officials, including Erdogan. Ankara has said the case was based on fabricated evidence.

Without being specific, Erdogan said the case put agreements between the two countries into jeopardy: “….The bilateral accords between us are losing their validity. I am saddened to say this, but this is how it will be from now on.”

Turkey’s foreign ministry on Thursday condemned the conviction as unprecedented meddling in its internal affairs. The row has unnerved investors and weighed on the lira currency, which hit a series of record lows last year.

The court case has put pressure on relations between Washington and the biggest Muslim country in NATO, already strained since a 2016 failed coup in Turkey which Erdogan blames on followers of a cleric who lives in the United States.

Only last week the United States and Turkey lifted all visa restrictions against each other, ending a months-long visa dispute that began when Washington suspended visa services at its Turkish missions after two local employees of the U.S. consulate were detained on suspicion of links to the coup.

The Halkbank executive, Mehmet Hakan Atilla, was convicted on five of six counts, including bank fraud and conspiracy to violate U.S. sanctions law. The case was based on the testimony of a wealthy Turkish-Iranian gold trader, Reza Zarrab, who cooperated with prosecutors and pleaded guilty to charges of leading a scheme to evade U.S. sanctions against Iran.

In his testimony Zarrab implicated top Turkish politicians, including Erdogan. Zarrab said Erdogan, then prime minister, had personally authorised two Turkish banks to join the scheme.

Turkey says the case was based on fabricated evidence and has accused U.S. court officials of ties to the cleric Turkey blames for the coup attempt. The bank has denied any wrongdoing and said its transactions were in line with local and international regulations.

“The United States is carrying out … a chain of plots, and these are not just legal but also economic plots,” Erdogan said.

(Reporting by Daren Butler and Tuvan Gumrukcu; Editing by David Dolan and Peter Graff)

U.S. places Pakistan on watch list for religious freedom violations

Trump to make final tax push as Republican negotiators near deal

WASHINGTON (Reuters) – The U.S. State Department has placed Pakistan on a special watch list for “severe violations of religious freedom,” it said on Thursday, days after the White House said Islamabad would have to do more to combat terrorism to receive U.S. aid.

The State Department also said it had re-designated 10 other nations as “countries of particular concern” under the International Religious Freedom Act for having engaged in or tolerated egregious violations of religious freedom.

The re-designated countries were China, Eritrea, Iran, Myanmar, North Korea, Sudan, Saudi Arabia, Tajikistan, Turkmenistan and Uzbekistan. They were re-designated on Dec. 22.

“The protection of religious freedom is vital to peace, stability, and prosperity,” the department said in a statement. “These designations are aimed at improving the respect for religious freedom in these countries.”

U.S. President Donald Trump has criticized Pakistan for not doing more to combat terrorism, and his administration has informed members of Congress that it will announce plans to end “security assistance” payments to the country.

Pakistan has said it is already doing a lot to fight militants, and summoned the U.S. ambassador to explain a tweet by Trump that said the United States had been foolish in dispensing aid to Islamabad.

(Reporting by Makini Brice; Editing by Tim Ahmann and Susan Thomas)

Japan faces greatest danger since World War due to North Korea

Japan's Prime Minister Shinzo Abe attends Universal Health Coverage Forum 2017 in Tokyo, Japan December 14, 2017.

TOKYO (Reuters) – The security situation facing Japan is the most perilous since World War Two because of North Korea’s “unacceptable” provocations, Prime Minister Shinzo Abe said on Thursday and he vowed to bolster defenses to protect the Japanese people.

Tension in the region has been rising, particularly since North Korea conducted its sixth and largest nuclear test in September, and then in November, said it had successfully tested a new intercontinental ballistic missile that could reach all of the U.S. mainland.

“It is not an exaggeration to say that the security environment surrounding Japan is at its severest since World War Two. I will protect the people’s lives and peaceful living in any situation,” Abe told a New Year news conference.

Abe said Japan would take new steps to strengthen its defense posture but he did not go to specifics.

The government approved a record military budget last month, with defense outlays due to rise for a sixth year, increasing by 1.3 percent to 5.19 trillion yen ($46 billion), with the biggest item 137 billion yen in reinforcing defenses against North Korean ballistic missiles.

The U.S. ambassador to the United Nations, Nikki Haley, said this week the United States was hearing reports that North Korea might be preparing to fire another missile, and she warned it not to.

“It is absolutely unacceptable that North Korea is trampling the strong desire of Japan and the rest of the international community for peaceful resolutions and continuing with its provocative behavior,” Abe said.

Abe has said he wants to amend Japan’s pacifist constitution with the aim of loosening constraints on the military, although the public is divided over changes to the charter imposed after Japan’s World War Two defeat.

War-renouncing Article 9 of the constitution, if read literally, bans the existence of standing armed forces, but has long been interpreted to allow a military for exclusively defensive purposes.

Abe said he wanted more debate on the issue.

“I would like this to be a year in which public debate over a constitutional revision will be deepened further,” he said.

Abe’s Liberal Democratic Party-led coalition retained its two-thirds “super majority” in parliament’s lower house in an Oct. 22 election, re-energizing his push to revise the constitution.

(Reporting by Kiyoshi Takenaka; Editing by Chang-Ran Kim, Robert Birsel)

Canada criticizes U.S. lumber duties put in place on Wednesday

A log driver works a barge of Canadian logs at Squamish Mills Ltd in Howe Sound near Squamish, British Columbia, Canada, April 25, 2017.

WINNIPEG, Manitoba (Reuters) – The Canadian government on Wednesday criticized the United States for a decision to impose duties on certain softwood lumber exports and underlined its determination to fight the move.

The duties, which went into effect on Wednesday, are “unfair, unwarranted and troubling,” Foreign Minister Chrystia Freeland said in a statement.

Ottawa has already launched challenges against the duties – which range from about 10 percent to nearly 24 percent, below a preliminary range of about 17 percent to 31 percent – with the World Trade Organization and through NAFTA.

The U.S. Commerce Department’s decision will impose anti-dumping and anti-subsidy duties affecting about $5.66 billion worth of lumber and comes amid increasingly acrimonious talks on renegotiating NAFTA, the trilateral trade pact between the United States, Canada and Mexico.

Joe Patton, U.S. Lumber Coalition Co‐Chair and Vice President of Wood Products at The Westervelt Company, defended the duties.

“These duties are a fair enforcement of U.S. trade law. For decades, the Canadian government has abused the law and provided massive subsidies to its lumber industry, harming U.S. producers and workers,” he said on Wednesday.

The decision to impose tariffs followed failed talks to end the decades-long dispute between the two countries. The row centers on the fees paid by Canadian lumber mills for timber cut largely from government-owned land. Those fees are lower than fees paid on U.S. timber, which comes largely from private land.

The U.S. Commerce Department accuses Canada of unfairly subsidizing and dumping softwood lumber, which is commonly used in the construction of homes. Canada denies it is dumping the lumber.

The US Dept of Commerce was not immediately available for comment on Wednesday.

(Reporting by Rod Nickel in Winnipeg, Manitoba; and David Ljunggren in Ottawa; writing by Sue Thomas; Additional reporting by Lesley Wroughton in Washington; Editing by Chizu Nomiyama and Jim Finkle)

U.S. warns North Korea against new missile test, plays down talks

U.S. Ambassador to the United Nations Nikki Haley speaks at UN headquarters in New York, U.S., January 2, 2018

By Rodrigo Campos and Christine Kim

UNITED NATIONS/SEOUL (Reuters) – The U.S. ambassador to the United Nations, Nikki Haley, warned North Korea on Tuesday against staging another missile test and said Washington would not take any talks between North and South Korea seriously if they did not do something to get Pyongyang to give up its nuclear weapons.

Haley told reporters the United States was hearing reports that North Korea might be preparing to fire another missile.

“I hope that doesn’t happen. But if it does, we must bring even tougher measures to bear against the North Korean regime,” Haley said.

South Korea on Tuesday offered talks with North Korea next week, amid a tense standoff over Pyongyang’s nuclear and missile programs, after North Korean leader Kim Jong Un said in a New Year’s Day speech that he was “open to dialogue” with Seoul.

Kim also said he was open to the possibility of North Korean athletes taking part in Winter Olympics South Korea hosts next month.

At the same time, he stressed that his country would push ahead with “mass producing” nuclear warheads in defiance of U.N. sanctions and that he had a nuclear button on his desk capable of launching missiles at the United States.

U.S. President Donald Trump responded to Kim in a Twitter post on Tuesday: “Will someone from his depleted and food starved regime please inform him that I too have a Nuclear Button, but it is a much bigger & more powerful one than his, and my Button works!”

Haley said the United States would not take talks seriously if they did not take steps toward banning North Korea’s nuclear weapons.

“North Korea can talk to anyone they want, but the U.S. is not going to recognize it or acknowledge it until they agree to ban the nuclear weapons that they have,” she said.

Haley gave no details of the missile test preparations.

Another U.S. official, who spoke on condition of anonymity, said there were indications that could point toward a potential missile launch “sooner rather than later,” but cautioned that such signs had been seen in the past and no test had resulted.

‘DRIVE A WEDGE’

U.S. State Department spokeswoman Heather Nauert said North Korea might be “trying to drive a wedge of some sort” between the United States and South Korea and added that while it was up to Seoul to decide who it talked to: “We are very skeptical of Kim Jong Un’s sincerity in sitting down and having talks.”

Trump, who has led a global drive to pressure North Korea through sanctions to give up development of nuclear-tipped missiles capable of hitting the United States, earlier held back judgment on Pyongyang’s offer to talk, saying on Twitter:

“Rocket man now wants to talk to South Korea for first time. “Perhaps that is good news, perhaps not – we will see!”

Trump has frequently derided Kim as “rocket man.” The U.S. president said sanctions and other pressures were starting to have a big impact on North Korea.

Kim and Trump have exchanged fiery barbs in the last year and the U.S. president has warned that the United States would have no choice but to “totally destroy” North Korea if forced to defend itself or its allies.

North Korea regularly threatens to destroy the United States, South Korea and Japan and tested its most powerful intercontinental ballistic missile in November, which it said was capable of delivering a warhead anywhere in the United States.

South Korea’s Unification Minister Cho Myong-gyon said the offer for high-level talks next Tuesday had been discussed with the United States. Nauert said she was not aware if the matter had been discussed in advance of the South Korean response.

Cho suggested the talks be held at the border village of Panmunjom and said they should be focused on North Korea’s participation at the Olympics, but other issues would likely arise, including the denuclearisation of North Korea.

“I repeat: The government is open to talking with North Korea, regardless of time, location and form,” Cho said.

Should the talks be held, it would be the first such dialogue since a vice-ministerial meeting in December 2015.

South Korean President Moon Jae-in welcomed Kim’s New Year address and asked his government to move as quickly as possible to bring North Korea to the Olympics, but he stressed that an improvement in inter-Korean relations “cannot go separately with resolving North Korea’s nuclear program”.

China, which has persistently urged a return to talks to ease tensions, said recent positive comments from North and South Korea were a good thing.

“China welcomes and supports North Korea and South Korea taking earnest efforts to treat this as an opportunity to improve mutual relations, promote the alleviation of the situation on the Korean peninsula and realize denuclearisation on the peninsula,” Foreign Ministry spokesman Geng Shuang said.

(Reporting by Christine Kim, Jane Chung and Hyonhee Shin in Seoul, Michael Martina in Beijing, Doina Chiacu, David Brunnstrom, David Alexander and Arshad Mohammed in Washington, and Rodrigo Campos at the United Nations; Editing by Andrew Hay, Alistair Bell and Lisa Shumaker)