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Trump heads to Japan with North Korea on his mind

U.S. President Donald Trump shouts to reporters as he and and first lady Melania Trump board Air Force One for travel to Hawaii, on his way to an extended trip to five countries in Asia, from Joint Base Andrews, Maryland, U.S. November 3, 2017.

By Steve Holland

HONOLULU (Reuters) – U.S. President Donald Trump heads to Japan on the first stop of his five-nation tour of Asia on Saturday, looking to present a united front with the Japanese against North Korea as tensions run high over Pyongyang’s nuclear and missile tests.

Trump, who is on a 12-day trip, is to speak to U.S. and Japanese forces at Yokota air base shortly after arriving in Japan on Sunday and looked to stress the importance of the alliance to regional security.

Ballistic missile tests by North Korea and its sixth and largest nuclear test, in defiance of U.N. Security Council resolutions, have exacerbated the most critical international challenge of Trump’s presidency.

Aerial drills conducted over South Korea by two U.S. strategic bombers have raised tensions in recent days.

In a display of golf diplomacy, Trump is to play a round of golf with Japanese Prime Minister Shinzo Abe. The two leaders also played together in Florida earlier this year.

Trump will also have a state call with the Imperial Family at Akasaka Palace during his visit. Abe and Trump will meet families of Japanese citizens abducted by North Korea.

Joined by his wife Melania on part of the trip, Trump’s tour of Asia is the longest by an American president since George H.W. Bush in 1992. Besides Japan, he will visit South Korea, China, Vietnam and the Philippines.

Trump extended the trip by a day on Friday when he agreed to participate in a summit of East Asian nations in Manila.

His trip got off to a colorful start in Hawaii. He was taken by boat out to the USS Arizona Memorial, where lies the World War Two ship that was sunk by the Japanese during the Pearl Harbor attack in 1941.

The Trumps tossed white flower petals into the waters at the memorial in honor of those who died at Pearl Harbor.

TRADE, NORTH KOREA

Trump’s trip is to be dominated by trade and how to muster more international pressure on North Korea to give up nuclear weapons.

“We’ll be talking about trade,” Trump told reporters at the White House on Friday. “We’ll be talking about obviously North Korea. We’ll be enlisting the help of a lot of people and countries and we’ll see what happens. But I think we’re going to have a very successful trip. There is a lot of good will.”

Trump has rattled some allies with his vow to “totally destroy” North Korea if it threatens the United States and his dismissal of North Korean leader Kim Jong Un as a “rocket man” on a suicide mission.

White House national security adviser H.R. McMaster, briefing reporters on Friday, defended Trump’s colorful language.

“What’s inflammatory is the North Korean regime and what they’re doing to threaten the world,” McMaster said.

Trump will seek a united front with the leaders of Japan and South Korea against North Korea before visiting Beijing to make the case to Chinese President Xi Jinping that he should do more to rein in Pyongyang.

Trade will factor heavily during Trump’s trip as he tries to persuade Asian allies to agree to trade policies more favorable to the United States.

A centerpiece of the trip will be a visit to the Asia Pacific Economic Cooperation summit in Danang, Vietnam, where he will deliver a speech in support of a free and open Indo-Pacific region, which is seen as offering a bulwark in response to expansionist Chinese policies.

(Reporting By Steve Holland; Editing by Paul Tait)

Plague in Madagascar Surprises and Alarms World Health organizations, U.S. not immune

World Health Organization responding to Seychelles plague

By Kami Klein

Experts are alarmed at a recent outbreak of plague that is spreading through major populated areas in Madagascar. So far there has been 1,836 suspected or confirmed cases of pneumonic plague and 133 deaths in areas that have never seen this form of the disease before.

Every year Africa and Madagascar deal with an outbreak of plague within their borders. The World Health Organization (WHO) anticipates this in outlying areas and is ready to step in with antibiotics and information which eventually curtails the outbreak. This year, health organizations around the world were surprised as the plague has spread so quickly and is primarily being found in heavily populated areas. While they anticipate around 400 cases a year, this year’s outbreak began sooner and a different strain of the disease has the world watching.

What is causing the alarm is that 65% of the plague occurring in Madagascar, pneumonic plague, is the only form that can be spread from human to human through droplets from coughing. This makes containing the disease much more difficult and the chances that there will be more deaths almost certain.

According to the Center for Disease Control here in the United States, there are major differences in bubonic plague and pneumonic. Bubonic plague is spread to humans by the bites of infected fleas that live on small mammals such as rats.Without treatment, it kills up to two-thirds of those infected. One in 10 cases will develop into pneumonic plague which is almost always fatal if not treated quickly with antibiotics. This form, can and will spread from human to human which is the case in this outbreak. The good news is that a simple short course of antibiotics can cure the plague, providing it is given early.

Dr. Tim Jagatic told BBC News that the outbreak had spread to populated areas when a man infected with bubonic plague had traveled from the highlands to the capital and then on to the coastal city of Tamatave by bus.

“He had the bubonic form of the plague and entered into one of the major cities, where the bubonic version of the disease had the potential of turning into the pneumonic form without treatment.”

“He was in a closed environment with many people when he started to develop severe symptoms, and he started to transmit the pneumonic form of the disease to others.”

“So it wasn’t recognised until later,” he said, allowing the disease to “proliferate over a period of time unabated”.

This case infected 31 other people, according to the WHO, four of whom died. It wasn’t until a couple of weeks later that an outbreak of the plague was detected and officially confirmed.

Although a travel ban has not been issued as of yet, officials do expect another spike in the disease before the season ends in April. Medical personnel are all on alert in parts of Africa that are most frequented by Madagascar citizens. WHO has delivered nearly 1.2 million doses of antibiotics and released $1.5 million dollars in emergency funds to fight the plague in Madagascar.

Though not widely publicized, the United States does have several cases of plague per year mostly in the Southwest. Dr Tim Jagatic, a doctor with Doctors without Borders currently working in Madagascar stated that the conditions which cause the plague outbreaks on the African island are also found in the US.

“Something today that very few people are aware of is that in the United States for instance, in the south-west, there’s an average of 11 cases of bubonic plague per year.

“These outbreaks occur simply because this is a bacteria which is able to maintain a reservoir in wild animals and every once in awhile, when humans come into contact with fleas that have had contact with the wild animals, it is able to transmit to humans.”

Information Sheet on the Plague

Sources: BBC, WHO,CDC, New York Post CNN

Putin, Trump may meet next week at APEC summit

Russian President Vladimir Putin enters a hall to meet with members of the Presidential Council for Civil Society and Human Rights at the Kremlin in Moscow, Russia October 30, 2017

MOSCOW (Reuters) – Russian President Vladimir Putin and U.S. President Donald Trump may meet next week at an Asian economic summit amid strains over sanctions against Moscow, the Syria conflict and the investigation into alleged Russian meddling in the 2016 U.S. presidential campaign.

The Kremlin on Friday said talks were under way to set up an encounter at the Asia-Pacific Economic Cooperation (APEC) summit in Danang, Vietnam, from Nov. 8-10.

Trump told Fox News in an interview late on Thursday that it was possible he would meet with Putin during the trip.

“We may have a meeting with Putin,” he said. “And, again – Putin is very important because they can help us with North Korea. They can help us with Syria. We have to talk about Ukraine.”

Representatives for the White House did not immediately reply to a request for comment on Friday.

“It (the meeting) is indeed being discussed,” Kremlin spokesman Dmitry Peskov told reporters. “It’s hard to overestimate the importance and significance for all international matters of any contact between the presidents of Russia and the United States.”

Putin and Trump first met at a G20 summit in Hamburg in July when they discussed allegations of Russian meddling in the U.S. election last year but agreed to focus on better ties rather than litigating the past.

But relations between Moscow and Washington have soured further since then.

Trump in August grudgingly signed off on new sanctions against Russia, a move Moscow said ended hopes for better ties. Putin ordered Washington to cut its embassy and consular staff in Russia by more than half.

Tensions have also flared over the conflict in Syria.

If it the Trump-Putin meeting comes about, it would come as investigations in Washington over alleged Russian meddling in the presidential election and possible collusion by the Trump campaign yielded its first indictments.

U.S. special counsel Robert Mueller’s office this week unveiled charges against former Trump campaign manager Paul Manafort, Manafort associate Richard Gates and campaign foreign policy adviser George Papadopoulos. Manafort and Gates pleaded not guilty while Papadapoulos pleaded guilty.

The Wall Street Journal also has reported that U.S. authorities have enough evidence to charge six members of the Russian government in the hacking of Democratic National Committee computers during the 2016 campaign.

(Reporting by Polina Nikolskaya in Moscow and Susan Heavey in Washington; Writing by Andrew Osborn; Editing by Maria Kiselyova and Bill Trott)

Supreme Leader Khamenei says U.S. is Iran’s ‘number one enemy’

Iran's Supreme Leader Ayatollah Ali Khamenei waves as he arrives to deliver a speech in Tehran, Iran, November 2, 2017. Leader.ir/Handout via REUTERS

By Parisa Hafezi

ANKARA (Reuters) – The United States is Iran’s “number one enemy” and Tehran will never succumb to Washington’s pressure over a multinational nuclear deal, Iran’s Supreme Leader Ayatollah Ali Khamenei said in a televised speech on Thursday.

U.S. President Donald Trump broke ranks with other major powers last month by refusing to formally certify Iran’s compliance with the nuclear deal. Under that deal, most sanctions on Iran were lifted in exchange for Tehran curbing its nuclear work.

“The American president’s foolish remarks against our people show the depth of America’s hostility towards the entire Iranian nation,” Iran’s top authority Khamenei told a group of students.

“America is the number one enemy of our nation.”

Since the deal was reached in 2015, Khamenei has continued to denounce the United States publicly, suggesting that antagonism between the two countries since the 1979 Islamic revolution in Tehran would not abate because of the accord.

Iran and the United States severed diplomatic ties shortly after the revolution, when hardline students took 52 Americans hostage for 444 days. Iran will mark the anniversary of the American embassy seizure on Saturday.

Trump has called the nuclear agreement, which was reached under his predecessor Barack Obama, “the worst deal ever negotiated” and has adopted a harsh approach to Iran over its nuclear and ballistic missile programs.

Washington has imposed new sanctions on Iran over its missile activity, calling on Tehran not to develop missiles capable of delivering nuclear bombs. Iran says it has no such plans and its missile program is solely for defense purposes.

The deal’s other signatories, Britain, France, Germany, Russia and China, and the European Union say Washington cannot unilaterally cancel an international accord enshrined by a U.N. resolution.

Iranian officials have repeatedly said that Tehran would stick to the nuclear accord as long as the other signatories respected it. But it has warned about the consequences if the deal falls apart.

“We will never accept their bullying over the nuclear deal … Americans are using all the wickedness to damage the result of the nuclear talks,” Khamenei said to chants of “Death to America” by students.

“Any retreat by Iran will make America more blatant and impudent … Resistance is the only option.”

Trump also accuses Iran of supporting terrorism in the Middle East. Iran rejects that and in turn blames the growth of militant groups such as Islamic State on the policies of the United States and its regional allies.

Shi’ite-dominated Iran and its regional arch-rival, U.S.-backed Sunni Saudi Arabia, are involved in proxy wars across the region, backing opposite sides in Syria, Yemen, Iraq and Lebanon.

(Writing by Parisa Hafezi; Editing by Catherine Evans)

Long-awaited U.S. Republican legislation calls for deep tax cuts

A congressional aide places a placard on a podium for the House Republican's legislation to overhaul the tax code on Capitol Hill.

By David Morgan and Amanda Becker

WASHINGTON (Reuters) – President Donald Trump’s drive for the deep tax cuts that he promised as a candidate reached a major milestone on Thursday, with his fellow Republicans in the House of Representatives unveiling long-awaited legislation to overhaul the tax code.

The bill called for slashing the corporate tax rate to 20 percent from 35 percent and cutting tax rates on individuals and families by consolidating the current number of tax brackets to four from seven: 12 percent, 25 percent, 35 percent and 39.6 percent, which is now the top rate and would be retained.

Largely in line with expectations for the tax-cut plan they have been developing behind closed doors for weeks, the House tax-writing Ways and Means Committee proposed roughly doubling the standard deduction for individuals and families.

It also called for preserving the home mortgage interest deduction for existing mortgages and for newly purchased homes up to $500,000, as well as continuing the deduction for state and local property taxes, capped at $10,000. It would retain the tax benefits of popular retirement savings programs including 401(k) and IRA.

The bill is the starting gun for a frantic race toward what Trump and Republicans in the House and Senate hope will be their first major legislative victory since he took office in January: the enactment this year of a package of deep tax cuts.

“This is the beginning of the end of this horrible tax code,” House Ways and Means Committee Chairman Brady told reporters on Thursday as he entered a meeting with Republican lawmakers ahead of the bill’s release.

The bill would create a new family tax credit, double exemptions for estate taxes on inherited assets and repeal the estate tax over six years, while also allowing small businesses to write off loan interest, according to the document.

The bill would cap the maximum tax rate on small businesses and other non-corporate enterprises at 25 percent, down from the present maximum rate on “pass-through” income of 39.6 percent. It would also set standards for distinguishing between individual wage income and actual pass-through business income to prevent tax-avoidance abuse of the new, lower tax level.

It would create a new 10-percent tax on U.S. companies’ high-profit foreign subsidiaries, calculated on a global basis, in a move to prevent companies from moving profits overseas, the Wall Street Journal reported.

Foreign businesses operating in the United States would face a tax of up to 20 percent on payments they make overseas from their American operations, the Journal added.

MARKET REACTION

U.S. equities have rallied in 2017 to a series of record highs, partly on expectations of deep corporate tax cuts. They were down slightly on Thursday as initial details of the Republican plan emerged. Housing stocks fell; bank stocks initially fell but then cut their losses.

Investors cautioned the tax plan was preliminary and it was too soon to gauge the effect on specific industries and asset classes. Long-dated bond yields and the U.S. dollar were down.

“This was what the market has been waiting for,” said Sean Simko, head of fixed-income management at Sei Investments Co in Pennsylvania. “It’s pretty much what the market has heard and priced in for. We are also waiting for the Fed chair nominee announcement and the payrolls number (Friday). Until then, the markets are going to be pretty contained.”

Congress has not succeeded with comprehensive tax changes since 1986, when Republican Ronald Reagan was in the White House and Democrats controlled the House. Bipartisan cooperation led to the passage of that plan, but Republicans have frozen Democrats out of the process of developing this legislation and passed a budget plan that would enable them to pass it with no Democratic votes.

Independent analysts have said that, based on an outline of the plan previously made public, corporations and the wealthiest Americans would benefit the most, and the federal deficit would be greatly expanded over the next decade because of a loss of tax revenue.

Trump said at the White House this week that he wanted Congress to pass the tax overhaul by the U.S. Thanksgiving holiday on Nov. 23.

Trump, House Republican leaders and Republican members of Brady’s panel will then meet at the White House on Thursday afternoon. Trump is also meeting separately with Republican senators, who must also unite to pass the tax plan.

“We’re going to get it done,” added House Republican leader Kevin McCarthy.

Brady himself predicts the initial legislation will change next week, when his panel is due to begin preparing it for an eventual House vote.

While Republicans control the White House and both chambers of Congress, intra-party differences have prevented them from passing major legislation sought by Trump, as exemplified by the collapse of their effort to dismantle the Obamacare law. Any failure to pass tax cuts legislation would call into question Republicans’ basic ability to deliver on promises.

The bill must also pass the Senate, where Republicans hold a slimmer 52-48 majority and earlier this year failed to garner enough votes to pass a major healthcare overhaul. Senate Republican leaders have said they aim to finish their work on taxes by year-end.

Democrats have criticized the proposed tax cuts as a giveaway to corporations and the wealthy that would harm workers and middle-class Americans.

(Reporting by Amanda Becker and David Morgan; Additional reporting by Richard Leong, Susan Heavey and Susan Cornwell; Writing by Will Dunham; Editing by Lisa Von Ahn and Nick Zieminski)

South Korea spy agency sees signs of planned new missile test by North

North Korean leader Kim Jong Un visits a cosmetics factory in this undated photo released by North Korea's Korean Central News Agency (KCNA) in Pyongyang on October 28, 2017.

By Hyonhee Shin

SEOUL (Reuters) – North Korea may be planning a new missile test, South Korea’s spy agency told lawmakers on Thursday, after brisk activity was spotted at its research facilities, just days before U.S. President Donald Trump visits Seoul.

Reclusive North Korea has carried out a series of nuclear and missile tests in defiance of U.N. Security Council resolutions, but has not launched any missiles since firing one over Japan on Sept. 15, the longest such lull this year.

However a flurry of activity including the movement of vehicles has been detected at the North’s missile research facilities in Pyongyang, where the most recent missile test was conducted, pointing to another possible launch, South Korea’s Intelligence Service said in a briefing to lawmakers.

It did not say how the activity was detected.

North Korea has made no secret of its plans to perfect a nuclear-tipped missile capable of reaching the U.S. mainland. It regularly threatens to destroy the United States and its “puppet”, South Korea.

“There is a possibility of a new missile launch given the active movement of vehicles around the missile research institute in Pyongyang. The North will constantly push for further nuclear tests going forward, and the miniaturization and diversification of warheads,” the intelligence agency said at the briefing.

The North’s nuclear testing site in the northwestern town of Punggye-ri could have been damaged by its sixth and largest nuclear test on Sept. 3, according to Kim Byung-kee, Yi Wan-young and Lee Tae-gyu, members of South Korea’s parliamentary intelligence committee.

The explosion triggered an aftershock within eight minutes and three additional shocks.

Japanese broadcaster TV Asahi, citing unnamed sources, said on Tuesday a tunnel at the test site collapsed after that explosion, possibly killing more than 200 people. Reuters has not been able to verify the report which North Korea on Thursday denounced as false and defamatory.

Pyongyang will likely detonate more devices as it tries to master the miniaturization of nuclear warheads to put atop missiles, the lawmakers said.

The third tunnel at the Punggye-ri complex remained ready for another test “at any time”, while construction had resumed at a fourth tunnel, making it unable to be used “for a considerable amount of time”, they added.

Trump is to visit five Asian nations in coming days for talks in which North Korea will be a major focus. The visit includes the North’s lone major ally, China, and U.S. allies Japan and South Korea, which have watched with increasing worry as Trump and North Korea have exchanged bellicose rhetoric.

(Reporting by Hyonhee Shin in Seoul; Editing by Nick Macfie)

Monsanto, BASF weed killers strain U.S. states with crop damage complaints

Monsanto's research farm is pictured near Carman, Manitoba, Canada on August 3, 2017.

By Tom Polansek

CHICAGO (Reuters) – U.S. farmers have overwhelmed state governments with thousands of complaints about crop damage linked to new versions of weed killers, threatening future sales by manufacturers Monsanto Co and BASF.

Monsanto is banking on weed killers using a chemical known as dicamba – and seeds engineered to resist it – to dominate soybean production in the United States, the world’s second-largest exporter.

The United States has faced a weed-killer crisis this year caused by the new formulations of dicamba-based herbicides, which farmers and weed experts say have harmed crops because they evaporate and drift away from where they are applied.

Monsanto and BASF say the herbicides are safe when properly applied. They need to convince regulators after the flood of complaints to state agriculture departments.

The U.S. Environmental Protection Agency (EPA) last year approved use of the weed killers on dicamba-resistant crops during the summer growing season. Previously, farmers used dicamba to kill weeds before they planted seeds, and not while the crops were growing.

However, the EPA approved such use only until Nov. 9, 2018, because “extraordinary precautions” are needed to prevent dicamba products from tainting vulnerable crops, a spokesman told Reuters in a statement last week. The agency wanted to be able to step in if there were problems, he said.

Next year, the EPA will determine whether to extend its approval by reviewing damage complaints and consulting with state and industry experts. States are separately considering new restrictions on usage for 2018.

Major soybean-growing states, including Arkansas, Missouri and Illinois, each received roughly four years’ worth of complaints about possible pesticide damage to crops this year due to dicamba use, state regulators said.

Now agriculture officials face long backlogs of cases to investigate, which are driving up costs for lab tests and overtime. Several states had to reassign employees to handle the load.

“We don’t have the staff to be able to handle 400 investigations in a year plus do all the other required work,” said Paul Bailey, director of the Plant Industries division of the Missouri Department of Agriculture.

In Missouri, farmers filed about 310 complaints over suspected dicamba damage, on top of the roughly 80 complaints about pesticides the state receives in a typical year, he said.

Nationwide, states launched 2,708 investigations into dicamba-related plant injury by Oct. 15, according to data compiled by the University of Missouri.

States investigate such complaints to determine whether applicators followed the rules for using chemicals. Those found to have violated regulations can be fined.

Monsanto has said that U.S. farmers spraying this past summer failed to follow detailed instructions of up to 4,550 words printed on labels.

The companies will change usage instructions in hopes of avoiding a repeat of the past summer’s problems.

“With significant adoption and a lot of interest in this new technology, we recognize that many states have received a number of reports of potential off-target application of dicamba in 2017,” Monsanto spokeswoman Charla Lord said last month.

PHOTOGRAPHING DAMAGED SOYBEANS

State investigators try to visit fields within days after farmers report possible damage to take photos before signs of injury, such as cupped leaves on soybean plants hit by dicamba, disappear. They question farmers and the people who applied the herbicide, and often gather samples from plants to test.

In Arkansas, farmers filed about 985 complaints associated with dicamba, the most of any state. Investigators are probing about 1,200 total complaints involving pesticide use, which includes weed killers, said Terry Walker, director of the Arkansas State Plant Board.

Arkansas delayed inspections of animal feed and allowed overtime to handle the dicamba cases, which is not normal practice, Walker said. He was unable to provide a cost estimate for dealing with the complaints.

Among the farmers who reported damage was Reed Storey, who said he wanted to ensure state officials knew dicamba caused damage even when users follow the instructions.

“I’m calling strictly to let y’all know that we have an issue with this product,” Storey, who spoke last month, said he told Arkansas regulators.

Illinois received about 421 total pesticide complaints, the most since at least 1989, said Warren Goetsch, acting chief of the Bureau of Environmental Programs at the Illinois Department of Agriculture. That includes at least 245 complaints associated with dicamba, which could take until next year to finish investigating, he said.

“It’s frustrating I think for us that we’re as behind as we are,” Goetsch said.

MONSANTO’S BIG BET

Monsanto is betting on dicamba-tolerant soybeans to replace those that withstand glyphosate, an herbicide used for decades but which is becoming less effective as weeds develop resistance. The company aims for its dicamba-resistant seeds to account for half the U.S. soybeans planted by 2019.

Monsanto, which is in the process of being acquired by Bayer AG for $63.5 billion, said it plans to open a call center to help customers use dicamba next year and is talking with states about the product.

Monsanto’s net sales increased $1.1 billion, or 8 percent, in fiscal year 2017 due partly to increased sales of its dicamba-resistant soybean seeds.

The company and BASF already face several lawsuits from farmers alleging damage to plants from dicamba used by neighbors.

ANALYZING PLANT SAMPLES

The EPA provides grants to states that help fund investigations into pesticide damage and this year offered 35 states extra assistance analyzing plant samples for dicamba, according to the agency.

Minnesota and Illinois turned to the EPA for help, with the latter saying the federal agency has better equipment to detect low levels of dicamba.

In Iowa, the state’s laboratory bureau received 515 samples to test this year, up 35 percent, as dicamba use helped drive up the total number of pesticide complaints to 270 from a typical range of 70 to 120, according to the state. Each test costs up to $9.

“We are really anxious to flip the page and look ahead to 2018 and try to figure out the things that can be done to improve the situation,” said Mike Naig, deputy secretary of the Iowa Department of Agriculture and Land Stewardship.

(Reporting by Tom Polansek; Editing by Jo Winterbottom and Matthew Lewis)

Russia’s Putin arrives in Iran to discuss Syria, nuclear deal

Russian President Vladimir Putin (L) meets with his Iranian counterpart Hassan Rouhani in Tehran, Iran November 1, 2017.

By Denis Pinchuk

TEHRAN (Reuters) – Russian President Vladimir Putin began a visit to Iran on Wednesday designed to underpin closer ties between two countries at loggerheads with the United States as President Donald Trump threatens to pull out of a 2015 nuclear deal with Tehran.

Putin and his Iranian hosts are expected to discuss the nuclear deal and regional crises such as the Syrian conflict, in which Moscow and Tehran are the main backers of President Bashar al-Assad, while Washington, Turkey and most Arab states support opposition groups seeking to overthrow him.

“We are very pleased that, apart from our bilateral relations, our two countries play an important role in securing peace and stability in the region,” Iranian President Hassan Rouhani told Putin in his welcoming remarks.

Russian and Iranian help has proved crucial for Assad, allowing him to win a series of military victories since 2015 and to reestablish his control over most of Syria. Moscow is now trying to build on that success with a new diplomatic push, including a meeting in the Black Sea resort of Sochi next month.

Moscow is also an important ally for Iran in its confrontation with the Trump administration, which on Oct. 13 refused to certify Tehran’s two-year-old nuclear deal with six major powers that include Russia and the United States.

Russia has criticized Trump’s move, which has opened a 60-day window for Congress to act to reimpose economic sanctions on Iran. These were lifted under the 2015 accord in return for Tehran curbing its nuclear program.

“This is a very important visit (by Putin) … It shows the determination of Tehran and Moscow to deepen their strategic alliance…. which will shape the future of the Middle East,” one Iranian official told Reuters, on condition of anonymity.

“Both Russia and Iran are under American pressure … Tehran has no other choice but to rely on Moscow to ease the U.S. pressure,” said the official.

Another Iranian official said Trump’s aggressive Iran policy had united Iran’s faction-ridden leadership in alignment with Russia.

During his visit, Putin will also discuss boosting bilateral economic ties, and will take part in a three-way summit between Russia, Iran and neighboring Azerbaijan, state TV said.

(Writing by Parisa Hafezi; Editing by Gareth Jones)

Exclusive: U.S. needs to improve oversight of labs handling dangerous pathogens – report

By Julie Steenhuysen

CHICAGO (Reuters) – A year-long audit of the program overseeing U.S. labs that handle lethal pathogens such as Ebola and anthrax found overworked safety inspectors, an absence of independent review and weak biosafety protections that could expose lab workers and the public to harm, a government report will say on Tuesday.

The report by the Government Accountability Office to Congress followed a series of mishaps in which dangerous pathogens were inadvertently released. The report, seen by Reuters, concluded that the Federal Select Agent Program needs an overhaul.

The GAO audited laboratory safety oversight following errors that could have exposed dozens of people to live anthrax bacteria and the deadly toxin ricin. Its report will guide questioning of officials before the House Energy and Commerce Committee’s oversight subcommittee on Thursday.

The Federal Select Agent Program is jointly run by the U.S. Centers for Disease Control and Prevention (CDC) and the Animal and Plant Health Inspection Service (APHIS) of the U.S. Department of Agriculture.

According to the report, a chief concern is that the program is too focused on physical security measures, such as preventing theft from labs, and needs to focus more on biosafety issues that could protect researchers and the wider public from errors.

The GAO report also noted that many of the labs using high-risk pathogens for research belong to either CDC or the USDA, and recommended that Congress consider setting up a fully independent oversight body to remove potential conflicts of interest.

“The Select Agent Program does not fully meet our key elements of effective oversight,” the report stated.

Safety lapses in CDC labs captured headlines in 2014 when scientists at a high-level biosecurity lab did not properly inactivate anthrax bacteria before sending the material to labs with fewer safeguards. More than 80 scientists were exposed to potentially live anthrax, though no one fell ill.

In the months that followed, the Food and Drug Administration disclosed the discovery of decades-old vials of smallpox in a storage closet, while a U.S. Army lab erroneously shipped live anthrax to nearly 200 labs worldwide.

To address concerns of conflict of interest, CDC and APHIS have made structural changes to increase the program’s independence, but according to the GAO report, the program has not undergone a comprehensive risk management review, even as problems with lab safety continue to come to light.

As recently as last November, the Department of Homeland Security found a private lab inadvertently shipped ricin – a lethal poison – to one of its training centers on multiple occasions in 2011.

“Considering the type of research we’re talking about, we should have a much more robust, systematic oversight approach. That seems to be lacking,” said an aide to the House committee who declined to be identified.

To avoid conflicts of interest, inspections of APHIS laboratories are supposed to be carried out by the CDC, and inspections of CDC labs are to be carried out by APHIS. But the report revealed that at least three times in 2015, APHIS inspected its own laboratories, partly because there is no process in place to ensure compliance.

The report also cited excessive workloads for inspectors, which delay inspection reports and make it harder to retain personnel. In some cases, inspectors have been assigned to tasks outside of their expertise. For example, the GAO found that an APHIS physical security expert was asked to inspect ventilation systems – a critical protection against the accidental release of dangerous pathogens.

Short of a move by Congress to create an independent oversight agency, GAO recommended that CDC and APHIS officials conduct a risk assessment of the Select Agent Program and how it handles conflicts of interest. It also recommended that program officials shift inspection priorities to focus on high-risk activities in labs and develop a joint plan to train and hire inspectors.

The Health and Human Services Department, which oversees CDC, and the USDA, which runs APHIS, agreed with many of these recommendations, according to the report. Officials from the CDC and APHIS will testify at the Thursday hearing.

(Reporting by Julie Steenhuysen; Editing by Michele Gershberg)

Puerto Rico’s path to restore power shifts after Whitefish exit

By Jessica Resnick-Ault and Scott DiSavino

NEW YORK (Reuters) – Efforts to restore electricity to Puerto Rico nearly six weeks after Hurricane Maria are shifting as the island’s utility and its regulators, along with U.S. authorities, removed a key contractor and moved to triple the funding of another.

The U.S. Army Corps of Engineers, which is leading the federal power restoration effort, said it plans to boost the size of a key contract awarded to Fluor Corp by $600 million, to $840 million, according to a government filing.

The Army Corps said it was modifying the contract to ensure “continued execution of the critical repair and restoration of the electric power grid in Puerto Rico.”

It comes a day after Puerto Rican Governor Ricardo Rossello and the Puerto Rico Electric Power Authority (PREPA) said they would cancel a $300 million contract with Whitefish Energy Holdings, after an uproar over the deal’s provisions and the tiny Montana company’s lack of experience with projects of such a large size.

Fluor, which declined comment, was already in the process of bringing in people to help restore transmission and distribution of power to the U.S. territory. Hurricane Maria knocked out power to all 3.4 million residents of Puerto Rico, and only about 30 percent of power has been restored nearly six weeks later.

The Army Corps’ action on Monday signals that Fluor is now the primary contractor on Puerto Rico. The Army Corps awarded the original $240 million Fluor contract. The more controversial Whitefish contract was handled directly with PREPA.

The Whitefish deal came under fire after it was revealed last week that the terms were obtained without a competitive public bidding process. Residents, local officials and U.S. federal authorities all criticized the arrangement.

Conflict over who should lead the process of restoration and oversee PREPA has hampered efforts. PREPA, the island’s bankrupt power utility, and the governor have argued that the utility should maintain control, while a fiscal control board created by U.S. Congress last year to restructure the island’s finances has also jockeyed for control.

“PREPA and the governor of Puerto Rico and the administration here need to make a decision on who is in charge of PREPA,” said Ariel Horowitz of Synapse Energy Economics, a consultant to Puerto Rico’s energy regulator.

Puerto Rico’s energy commission, a small regulatory board tasked with overseeing PREPA, has the option of assigning an independent adviser to monitor progress in restoring the grid, but has not done so yet.

ISOLATION A PROBLEM

Currently, there are about 400 subcontracting crews on the island working to bring back power. Rossello said he wants to have 1,000 crews by Nov. 8, leaning on so-called mutual aid from utilities in New York and Florida, which have crews on the island.

Getting assistance from other utilities, which usually help one another after storms, may continue to be complicated by Puerto Rico’s isolation and lack of investment in its system.

A private sector source, who could not be named, said the transition from Whitefish, should it be handled smoothly, will hopefully accelerate the restoration of power. He said PREPA’S goal of restoring 95 percent of power by mid-December – a full three months after the hurricane – is slow for a typical utility.

PREPA did not respond to a request for comment.

Whitefish said it has completed significant work on two major transmission lines that crossed over the mountains of Puerto Rico. A person familiar with PREPA’s operations said on Monday that Whitefish would complete work on critical lines despite the cancellation of the contract.

Several other utilities are on the island, as well as private contractors that include Southern Co’s PowerSecure unit and Fluor.

An Army Corps spokesman said the Corps is not currently planning on hiring those reporting to Whitefish, but the subcontractors – Fluor and PowerSecure – might. Officials at Fluor and Southern did not comment on that possibility.

JEA, the municipal utility for Jacksonville, Florida, said it would keep its crew of about 40 people on the island, even if it no longer reports to Whitefish.

(Reporting by Jessica Resnick-Ault and Scott DiSavino; Additional reporting by Nick Brown; Editing by David Gaffen and Leslie Adler)

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