Tag Archives: United States

Canadian pastor escaped execution due to foreign citizenship

Pastor Hyeon Soo Lim speaks at the Light Presbyterian Church in Mississauga.

TORONTO (Reuters) – A Canadian pastor whom North Korea released this month after two years of imprisonment escaped execution and torture during his captivity because of his nationality, he told CBC News in his first interview since his return.

Hyeon Soo Lim, the pastor from Toronto, said in an interview broadcast on Saturday that he was never harmed and that he would not hesitate to go back to North Korea if the country allowed him. A transcript of the interview was posted on the Canadian public broadcaster’s website.

“If I’m just Korean, maybe they kill me,” Lim said. “I’m Canadian so they cannot, because they cannot kill the foreigners.”

Lim, formerly the senior pastor at one of Canada’s largest churches, had disappeared on a mission to North Korea in early 2015. He was sentenced to hard labor for life in December 2015 on charges of attempting to overthrow the Pyongyang regime.

He said North Korea treated him well despite forcing him to dig holes and break coal by hand all day in a labor camp.

Lim told CBC News that he was “coached and coerced” into confessing that he traveled under the guise of humanitarian work as part of a “subversive plot” to overthrow the government and set up a religious state.

North Korea let him go on humanitarian grounds. The announcement came during heightened tensions between Washington and Pyongyang, although authorities have not said there was any connection between his release and efforts to defuse the standoff over North Korea’s nuclear program.

Lim said he felt no anger at the Kim Jong Un regime for sentencing him to prison.

“No, I thanked North Korea,” he said. “I forgive them.”

 

(Reporting by Denny Thomas; Editing by Lisa Von Ahn)

 

Russian-North Korea projects foundering because of missile tests

A guard walks along a platform past signs, which read "Russia" (L) and "DPRK"(Democratic People's Republic of Korea), at the border crossing between Russia and North Korea in the settlement of Tumangan, North Korea July 18, 2014.

By Polina Nikolskaya and Katya Golubkova

MOSCOW (Reuters) – Commercial ventures planned between Russia and North Korea three years ago are not being implemented because of Pyongyang’s missile testing program, the Minister for the Development of the Russian Far East, Alexander Galushka, said.

Russia has been under international scrutiny over North Korea because it has taken a more doveish approach to Pyongyang than Washington, and Russian trade with North Korea increased sharply at the start of this year.

The United States government earlier this month imposed new North Korea-related sanctions that targeted Russian firms and individuals for, it alleged, supporting Pyongyang’s weapons programs and providing oil.

However Galushka, in an interview with Reuters, said Moscow was faithfully implementing the international sanctions regime on North Korea, and held up the stalled bilateral projects as an indication that Pyongyang was paying an economic price for its weapons program.

“Russia has not violated, does not violate and will not work outside the framework (of the resolution) that was accepted by the U.N. Security Council,” said Galushka, who also heads a Russia-North Korean Intergovernmental Commission.

Russian businesses discussed a number of projects with North Korea in 2014. But then North Korea conducted military tests, including some involving nuclear weapons, and the projects became difficult to implement, Galushka said.

One such project, called “Pobeda”, or “Victory,” would have involved Russian investments and supplies that could be exchanged for access to Korean natural resources.

“We told our North Korean partners more than once … that it hampers a lot, makes it impossible, it restricts things, it causes fear,” Galushka said, referring to the weapons testing.

Another joint project between the two countries is a railway link with North Korea, from the Russian eastern border town of Khasan to Korea’s Rajin.

It is operating but below its potential. The link could work at a capacity of 4 million tonnes a year, officials have said previously, but now it only carries around 1.5 million tonnes of coal per year, according to Galushka.

UN sanctions also prohibit countries from increasing the current numbers of North Korean laborers working in their territories.

According to Galushka, around 40,000 employees from North Korea worked in Russia. Mainly they are engaged in timber processing and construction.

Russian business is interested in access to the North Korea workforce, Galushka said, but the numbers will stay in line with what the sanctions permit.

He said 40,000 workers from North Korea “is a balance formed in the economy, neither more nor less.”

Bilateral trade between the two countries has been decreasing for the last four years, from $112.7 million in 2013 to $76.9 million in 2016, according to Russian Federal Customs Service statistics.

But it more than doubled to $31.4 million in the first quarter of 2017 in year-on-year terms. Most of Russia’s exports to North Korea are oil, coal and refined products.

Asked to explain why trade was rising if political issues were hurting commercial projects, a spokeswoman for Galushka’s ministry said in an email: “According to the latest data, there was an objective increase due to exports to North Korea, primarily oil products. But the export of oil does not violate the agreements of the UN countries in any way.”

The interview with Galushka took place before the U.S. imposed the sanctions targeting Russian entities and individuals for trading with North Korea.

Galushka’s ministry referred questions about the new sanctions to the Russian foreign ministry.

Maria Zakharova, a foreign ministry spokeswoman, told reporters Washington’s unilateral sanctions worsened tensions on the Korean peninsula, and that Russia is fulfilling its international obligations in full.

 

(Editing by Andrew Heavens)

 

U.S. current account imbalance unlikely to diminish: researcher

FILE PHOTO - A police officer keeps watch in front of the U.S. Federal Reserve in Washington, DC, U.S. on October 12, 2016. REUTERS/Kevin Lamarque/File Photo

(Reuters) – The United States will likely continue to run a large current account deficit against other countries because of its status as a global safe asset haven among other reasons, a U.S. economist told an annual symposium of some of the world’s most influential central bankers in Jackson Hole, Wyoming, on Saturday.

University of Wisconsin, Madison, professor Menzie Chinn’s research also suggests lawmakers in the United States should look to domestic fiscal policy if they want to reduce external imbalances.

A glut of savings in other countries historically has fueled capital flows into the United States, and while global imbalances have shrunk back to pre-crisis levels such flows will continue to weigh on the nation’s current account balance, especially as the quantity of safe assets has diminished in recent years.

The current account measures the flow of goods, services and investments into and out of a country.

Data shows that the savings glut effect on the current account has faded somewhat but the budget balance has retained its importance since the financial crisis, Chinn said in a paper delivered on the final day of the flagship three-day economic conference.

“Policymakers are clearly not going to seek to diminish America’s ability to generate safe assets. On the other hand, fiscal policy can (and has) had a noticeable influence on current account imbalances,” Chinn told the conference, whose theme this year is how to foster a dynamic global economy.

Global imbalances worry policymakers because they are seen as a risk to financial stability, though views differ on how much of a threat they pose.

The U.S. Congress faces a looming budget battle when it reconvenes in early September. On Tuesday, President Donald Trump promised to shut down the U.S. government if necessary to secure funding for a wall along the border with Mexico.

“For the United States, although the budget balance is not the largest single contributor to the current account imbalances, it is a substantial factor,” Chinn said.

That said, other factors will continue to keep the deficit in place, including the flow of excess savings to the United States.

A large proportion of capital flowing to the United States takes place in the form of purchases of U.S. government securities, particularly by foreign central banks. China and Japan are the largest foreign holders of U.S. government debt.

“While the particular creditor economies might change over time, the U.S. will tend to continue to run deficits larger than is explicable by other factors,” he said.

With monetary policy tightening in the United States and the euro area and similar action in Japan unlikely in the near future “that particular combination will likely lead to an exacerbation, rather than amelioration, of the U.S. current account deficit,” Chinn said.

(Reporting by Lindsay Dunsmuir; Editing by Andrea Ricci)

U.N. official urges Mexico and U.S. to boost refugee protection

U.N. High Commissioner for Refugees (UNHCR) Filippo Grandi speaks during an interview with Reuters at a hotel in Mexico City, Mexico August 25, 2017. REUTERS/Henry Romero

By Daina Beth Solomon and Lizbeth Diaz

MEXICO CITY (Reuters) – The United States and other wealthy nations should do more to resettle migrants and refugees forced to flee their homelands, U.N. High Commissioner for Refugees Filippo Grandi said on Friday.

“We must count on U.S. leadership in refugee protection,” Grandi told Reuters in an interview in Mexico City. “Forced displacement is a poor people problem, not a rich people problem. But we need the rich people to do more to share that burden.”

During his first official visit to the region since assuming the post last year, the U.N. official said Mexico also needs to step up protection for asylum and refugee applicants, especially along its southern border.

Every year thousands of people from El Salvador, Guatemala and Honduras, some of the world’s most impoverished and violent nations, head north in search of a better life.

But that journey has become increasingly dangerous and expensive, with criminals assaulting, extorting and kidnapping migrants as they attempt to pass through Mexico, forcing some to remain south of the U.S. border.

U.N. figures show some 8,000 people applied for refugee status last year in Mexico, up 5,000 from 2015. Asylum applications in Mexico jumped 150 percent between November 2016 and March 2017, according to Mexican refugee agency COMAR.

“There’s been an increase because of the causes that push people to flee – the unbelievable violence perpetrated against civilians in countries like Honduras and El Salvador,” Grandi said.

Grappling with drug trafficking, extortion and kidnapping, Mexico is witnessing one of its worst periods of violence, and has suffered an estimated 150,000 gang-related murders and about 30,000 disappearances in the past decade.

Washington, meanwhile, has heralded a drop in unauthorized southern border crossings as proof its crackdown on illegal immigration is working.

U.S. President Donald Trump’s administration has also lowered the cap on refugee admissions, setting the limit at 50,000 compared with about 85,000 approved in 2016.

U.S. officials have said they plan to review the migrant-vetting process as well to counter the risk of admitting terrorists. Grandi said he supported the push to improve security, but urged the United States to expand its refugee resettlement program.

Mexico is among the countries that could wind up accepting more refugees and asylum seekers if the United States continues toughening its migration policies.

“If less people go to the United States … there is a possibility that Mexico will host more,” Grandi said.

(Editing by Dave Graham and James Dalgleish)

U.S. towns that want to shed Confederate symbols hit bureaucratic roadblocks

U.S. towns that want to shed Confederate symbols hit bureaucratic roadblocks

By Joseph Ax

(Reuters) – As early as November, the stretch of Jefferson Davis Highway that runs through Alexandria, Virginia, will boast a new title after the city council voted to erase the name of the Confederacy’s president.

But the city’s neighbors to the north in Arlington are powerless to initiate a similar change, even though local officials would like to follow Alexandria’s example.

The difference lies in a simple distinction: Unlike Alexandria, Arlington is technically a county, not a city, and under Virginia law cannot alter major road names without permission from the state legislature.

As officials across the United States increasingly consider excising Confederate names from streets, schools and monuments following the violence in Charlottesville, Virginia, many are confronting bureaucratic and legal obstacles.

(GRAPHIC: Monumental Change – http://tmsnrt.rs/2vofYs6)

An Aug. 12 rally organized by white nationalists to protest against plans to remove a statue of Confederate General Robert E. Lee from a public park devolved into armed clashes on the streets of the college town, and one woman was killed when a man plowed a car into anti-fascist counterprotesters.

The violence has escalated an ongoing debate over Confederate symbols. Some people view them as hateful and racist, while others say they represent their Southern heritage and are tributes to fallen soldiers.

In some cases, the local laws impose a series of steps. In Austin, a liberal bastion in the heart of Republican Texas, the city council recently began the process of renaming Robert E. Lee Road and Jeff Davis Avenue.

Austin’s ordinances call for every person who owns property along either street to be notified, and if anyone objects, the council must hold a public hearing on the proposed change. Meanwhile, the city’s traffic engineer, fire department and police department must review the proposal along with the local gas company and the U.S. Postal Service, among other agencies.

“It’s a process that is fairly involved,” said Austin Councilwoman Ann Kitchen, whose district includes Robert E. Lee Road.

‘SITE-BASED DECISION-MAKING’

The Dallas Independent School District will take up whether to rename several schools named for Confederate generals at a Sept. 14 meeting.

In a 1,300-word provision, the board’s own policies lay out a lengthy procedure for naming or renaming a facility: The proposal has to come from the school itself and must be backed by at least one member of the parent-teacher association, the administration and a state-mandated “site-based decision-making committee.” The policy also calls for such changes to be considered only after April 1, near the end of the school year.

The process is so complicated that, in light of Charlottesville, the board will likely discuss ways to waive parts of the policy to expedite the renaming, said Dan Micciche, the school board president.

Other locales are finding their authority usurped by a higher power.

In Decatur, Georgia, some residents have demanded the removal of a Confederate monument, but the memorial is actually owned by Dekalb County, rather than the city. State law, meanwhile, specifically prohibits the removal of Confederate memorials.

Georgia is not alone. North Carolina, Virginia, Mississippi and Alabama – which passed its law earlier this year – bar cities from removing any historical monuments.

Such efforts can also draw lawsuits, which can take months or even years to resolve.

In Arlington, Jay Fisette, the chairman of the county board, issued a statement last week deploring the “domestic terrorism” displayed at Charlottesville and recognizing the desire among some residents to rename Jefferson Davis Highway and Lee Highway, another route that runs through the county.

In a phone interview, Fisette noted that the county already asked legislators to change the name two years ago, with little success, and will do so again this year.

“It is certainly my hope that after the experience of Charlottesville, the legislature will look upon it favorably,” he said.

(Reporting by Joseph Ax; Editing by Daniel Wallis and Cynthia Osterman)

North Korea tests short-range missiles as South Korea, U.S. conduct drills

North Korea tests short-range missiles as South Korea, U.S. conduct drills

By Jack Kim and Phil Stewart

SEOUL/WASHINGTON (Reuters) – North Korea fired several short-range missiles into the sea off its east coast early on Saturday, South Korea and the U.S. military said, as the two allies conducted annual joint military drills that the North denounces as preparation for war.

The U.S. military’s Pacific Command said it had detected three short-range ballistic missiles, fired over a 20 minute period.

One appeared to have blown up almost immediately while two flew about 250 km (155 miles) in a northeasterly direction, Pacific Command said, revising an earlier assessment that two of the missiles had failed in flight.

The test came just days after senior U.S. officials praised North Korea and leader Kim Jong Un for showing restraint in not firing any missiles since late July.

The South Korean Office of the Joint Chiefs of Staff said the projectiles were launched from the North’s eastern Kangwon province into the sea.

Later on Saturday, the South Korean Presidential Blue House said the North may have fired an upgraded 300-mm caliber multiple rocket launcher but the military was still analyzing the precise details of the projectiles.

Pacific Command said the missiles did not pose a threat to the U.S. mainland or to the Pacific territory of Guam, which North Korea had threatened earlier this month to surround in a “sea of fire”.

Tensions had eased somewhat since a harsh exchange of words between Pyongyang and Washington after U.S. President Donald Trump had warned North Korean leader Kim Jong Un he would face “fire and fury” if he threatened the United States.

North Korea’s last missile test on July 28 was for an intercontinental ballistic missile designed to fly 10,000 km (6,200 miles). That would put parts of the U.S. mainland within reach and prompted heated exchanges that raised fears of a new conflict on the peninsula.

Japan’s Chief Cabinet Secretary Yoshihide Suga said the missiles did not reach its territory or exclusive economic zone and did not pose a threat to Japan’s safety.

MILITARY DRILLS

The South Korean and U.S. militaries are in the midst of the annual Ulchi Freedom Guardian drills involving computer simulations of a war to test readiness and run until Aug. 31.

The region where the missiles were launched, Kittaeryong, is a known military test site frequently used by the North for short-range missile drills, said Kim Dong-yub, a military expert at the Institute for Far Eastern Studies in Seoul.

“So rather than a newly developed missile, it looks to be short range missiles they fired as part of their summer exercise and also in response to the Ulchi Freedom Guardian drill,” he said.

The United States and South Korea are technically still at war with the North because their 1950-53 conflict ended in a truce, not a peace treaty. The North routinely says it will never give up its weapons programs, saying they are necessary to counter perceived U.S. hostility.

Washington has repeatedly urged China, North Korea’s main ally and trading partner, to do more to rein in Pyongyang.

China’s commerce ministry late on Friday banned North Korean individuals and enterprises from doing new business in China, in line with United Nations Security Council sanctions passed earlier this month.

TRUMP BRIEFED

The White House said Trump had been briefed about the latest missiles but did not immediately have further comment.

The U.S. State Department did not immediately comment about the Saturday launches. Secretary of State Rex Tillerson earlier this week credited the North with showing restraint by not launching a missile since the July ICBM test.

Tillerson had said he hoped that the lack of missile launches or other “provocative acts” by Pyongyang could mean a path could be opening for dialogue “sometime in the near future.”

Trump also expressed optimism earlier this week about a possible improvement in relations. “I respect the fact that he is starting to respect us,” Trump said of Kim.

North Korea’s state media reported on Saturday that Kim had guided a contest of amphibious landing and aerial strike by its army against targets modeled after South Korean islands near the sea border on the west coast.

The official KCNA news agency quoted Kim as telling its Army that it “should think of mercilessly wiping out the enemy with arms only and occupying Seoul at one go and the southern half of Korea.”

A new poster on a North Korean propaganda website on Saturday showed a missile dealing “a retaliatory strike of justice” against the U.S. mainland, threatening to “wipe out the United States, the source of evil, without a trace.”

On Wednesday, Kim ordered the production of more rocket engines and missile warheads during a visit to a facility associated with North Korea’s ballistic missile program.

Diagrams and what appeared to be missile parts shown in photographs published in the North’s state media suggested Pyongyang was pressing ahead with building a longer-range ballistic missile that could potentially reach any part of the U.S. mainland including Washington.

(For an interactive package on North Korea’s missile capabilities click http://fingfx.thomsonreuters.com/gfx/rngs/NORTHKOREA-MISSILES/010041L63FE/index.html)

(Additional reporting by Ju-min Park in Seoul, Nobuhiro Kubo and Tim Kelly in Tokyo, Christian Shepherd in Beijing and David Brunnstrom and Idrees Ali in Washington; Editing by Lincoln Feast and Michael Perry)

Residents flee Texas coast ahead of Hurricane Harvey landfall

By Brian Thevenot

CORPUS CHRISTI, Texas (Reuters) – Businesses closed and lines of cars streamed out of coastal Texas as officials called for residents to evacuate ahead of Hurricane Harvey, expected to arrive about midnight as the most powerful storm to hit the U.S. mainland in more than a decade.

The hurricane is forecast to slam first near Corpus Christi, Texas, drop flooding rains along the central Texas coast and potentially loop back over the Gulf of Mexico before hitting Houston, some tracking models showed.

“My urgent message to my fellow Texans is that if you live in a region where evacuation has been ordered, you need to heed that advice and get out of harm’s way while you can,” Texas Gov. Greg Abbott said in a televised address.

The storm has so far shutdown 22 percent, or 377,000 barrels per day (bpd) of Gulf of Mexico oil production, the U.S. reported Friday afternoon, and halted 4.4 percent of U.S. refinery output. Some inland shale oil producers ceased operations as a precaution against expected flooding.

Gas stations and grocery stores in the region were packed as residents readied their cars and pantries for any shortages following the storm. Coldplay, the British rock band, canceled a Friday concert in Houston, telling fans it didn’t want to risk anyone’s safety.

At a Willis, Texas, station, about 50 miles (77 km) north of Houston, Corey Martinez, 40, was heading to Dallas from his Corpus Christi home.

“It has been pretty stressful. We’re just trying to get ahead of the storm,” he said. “We’ve never been through a hurricane before.”

Harvey became a Category 3 hurricane on Friday, the National Hurricane Center said, the third most powerful on the Saffir-Simpson scale with winds of 111-129 mile per hour (178-208 km/h) that can uproot trees, damage homes and disrupt utilities for days. That would make it the first major hurricane to hit the mainland United States since Hurricane Wilma struck Florida in 2005.

The storm was about 85 miles (140 km) off Corpus Christi and packing winds of 110 mph in early afternoon on Friday, the NHC said. It projected windspeeds could reach 120 mph just before landfall.

The NHC’s latest tracking model shows the storm sitting southwest of Houston for more than a day, giving the nation’s fourth most populous city a double dose of rain and wind.

“Now is the time to urgently hide from the wind. Failure to adequately shelter may result in serious injury, loss of life, or immense human suffering,” the National Weather Service said.

Up to 35 inches (97 cm) of rain are expected over parts of Texas, and sea levels may surge as high as 12 feet (3.7 meters). Louisiana could get 10 to 15 inches of rain. Flood warnings are in effect for Louisiana and northern Mexico.

“Life-threatening and devastating flooding expected near the coast due to heavy rainfall and storm surge,” the NHC said.

The storm’s approach triggered evacuations in south Texas communities and central coast residents were voluntarily leaving the area. Cities canceled classes on Friday and Monday at dozens of schools along the south Texas coast, home to 5.8 million people from Corpus Christi to Galveston.

David Ramirez left his home in Corpus Christi early on Friday to wait out the storm in San Antonio, Texas.

“With the level of storm surge they’re talking about, there isn’t a lot I could do to protect my house,” he said in an interview while awaiting directions to an emergency shelter.

Harvey also forced the cancellation or delay of at least 40 flights in and out of major airports in Texas on Friday, according to Flightaware.com, which tracks airline traffic.

Louisiana and Texas declared states of disaster, authorizing the use of state resources to prepare. President Donald Trump has been briefed and is ready to provide resources if needed, the White House said on Thursday.

The port of Houston, the nation’s busiest petrochemical port, closed its terminals at noon, and earlier halted inbound and outbound ship traffic on Friday. The city of Houston warned residents of flooding from close to 20 inches of rain over several days.

GASOLINE PRICES SPIKE

More than 45 percent of the country’s refining capacity is along the U.S. Gulf Coast, and nearly a fifth of the nation’s crude oil is produced offshore. Ports from Corpus Christi to Texas City, Texas, were closed to incoming vessels.

The U.S. government said 9.6 percent of crude output capacity was shut and 14.6 percent of natural gas production was halted.

Three refineries in Corpus Christi and one farther inland at Three Rivers were shutting down ahead of the storm. Two others reduced output as ports were closed.

Concern that Harvey could cause shortages in fuel supply drove benchmark gasoline prices to their highest in four months, before profit trading pulled back prices. Meanwhile, U.S. gasoline margins hit their strongest levels in 5 years for this time of year earlier in the day.

Prices for gasoline in spot physical markets on the Gulf Coast rose to a near three-year high.

The U.S. government has emergency stockpiles of crude available to plug disruptions, and has regularly used them to dampen the impact on energy supplies of previous storms.

The stockpiles in the Strategic Petroleum Reserve were last used in 2012, after Tropical Storm Isaac shut down 95 percent of oil output in the Gulf and hit Louisiana. The government has not yet said if it plans to use the reserve after Harvey.

Houston-based energy bank Tudor Pickering Holt & Co said in a note not to expect significant or lasting production impacts from Harvey. But it said it would impact some production and disrupt refinery runs, imports and exports, “which will show up in the weekly inventory numbers for the next few weeks.”

Royal Dutch Shell Plc, Anadarko Petroleum Corp and Exxon Mobil Corp have evacuated staff from offshore oil and gas platforms in the storm’s path.

The potential for flooding at shale oil fields in south Texas that produce more than one million barrels of oil a day led several producers to curb operations. EOG Resources Inc said shut some production in the Eagle Ford shale region. Noble Energy Inc and Statoil ASA also said they were evacuating some staff from production facilities.

Union Pacific Corp, the No. 1 U.S. railroad, said it was moving rail cars in yards prone to flooding to high elevations and will curtail trains operating through areas likely to be hit by excessive winds and rain that will impact operations.

Union Pacific said changes could include locations from Brownsville near the border with Mexico north to Beaumont, Texas.

(Reporting by Brendan O’Brien in Milwaukee and Brian Thevenot in Corpus Christi; Editing Meredith Mazzilli and Andrew Hay)

Trump to begin tax reform push next week, White House adviser tells FT

U.S. President Donald Trump speaks to the National Convention of the American Legion in Reno, Nevada, U.S., August 23, 2017. REUTERS/Joshua Roberts

WASHINGTON (Reuters) – U.S. President Donald Trump will begin a major push next week to convince the public of the need for tax reform, shifting his focus to fiscal policy in an effort to win a big legislative victory by the end of the year, The Financial Times reported on Friday.

Trump would begin the effort next Wednesday with a speech in Missouri, the first in a series of addresses to generate public support on the issue, Gary Cohn, director of the National Economic Council, told the newspaper.

“We are completely engaged in tax reform,” Cohn told the FT in an interview. “Starting next week the president’s agenda and calendar is going to revolve around tax reform. He will start being on the road making major addresses justifying the reasoning for tax reform.”

Although Cohn stressed that tax reform would be front and center of Trump’s agenda, the Republican-controlled Congress faces two other pressing issues when it returns from its August recess on Sept. 5.

Lawmakers need to approve an increase in the U.S. debt ceiling to allow the federal government to keep borrowing money and paying its bills, including its debt obliterations. Separately they need to pass at least stop-gap spending measures to keep the government operating. Deadlines on both issues will loom within weeks after lawmakers return from their break.

Asked by the FT whether the debate over the debt ceiling could derail the tax reform drive, Cohn said that “at the end of the day, Congress has to increase the debt ceiling – that is just the reality.” He added that this would be in September, before tax reform legislation.

“The key point is this: tax reform is the White House’s number one focus right now,” he added.

Cohn said White House officials had been working with Senate Majority Leader Mitch McConnell, House of Representatives Speaker Paul Ryan and other leading congressional Republicans on “an outline and skeleton” for the tax reform proposal, “and we have a good skeleton that we have agreed to.”

The details Cohn discussed were similar to those mentioned by Ryan at a meeting with Boeing employees on Thursday.

Asked whether the focus on tax reform had been complicated by Twitter attacks by the Republican president on McConnell and Ryan, Cohn said the White House officials worked well with the two “and we have made a massive amount of progress” on taxes.

Cohn said the House Ways and Means Committee would put more “flesh and bone” on the tax reform plan when lawmakers return from the recess. He said he believed a bill could pass tax committees in both chambers and be passed by both the House and Senate by the end of 2017.

TAX DETAILS

In the case of individual taxpayers, Cohn said the president’s reform plan would protect the three big deductions that people can claim on taxes: for home mortgages, charitable giving and retirement savings.

Beyond that, it would increase the caps for the standard deduction while eliminating most other personal deductions, Cohn said. The plan also aims to get rid of taxes on estates left when people die.

Cohn said for businesses, the administration is proposing to lower corporate tax rates, while eliminating many of the deductions that businesses use to reduce the amount of tax they must pay.

Asked whether the corporate tax rate could be cut to 15 percent as previously suggested by Trump, Cohn said, “I would like to get the tax rate as low as possible so that businesses want to create jobs here.”

He said the administration would propose going to a system where American companies would not have to pay additional tax when they bring profits earned overseas back to the United States.

“Today, they often have to pay extra taxes for bringing profits back to the U.S.,” Cohn said. “Our current system basically creates a penalty for headquartering in the U.S.”

He said the administration did envision a one-time low tax rate on all overseas profits.

(Reporting by David Alexander and Makini Brice; Editing by Jeffrey Benkoe and Frances Kerry)

U.S. Navy recovers second body in search for sailors missing after collision

The U.S. Navy guided-missile destroyer USS John S. McCain is seen after a collision. REUTERS/Ahmad Masood

SINGAPORE (Reuters) – U.S Navy and Marine Corps divers have recovered and identified a second body in the search for ten sailors missing after a collision between a guided-missile destroyer and merchant vessel near Singapore earlier this week, the U.S. Navy said on Friday.

The USS John S. McCain collided with the merchant tanker in waters near Singapore and Malaysia on Monday, which led to an international search-and-rescue operation for the missing sailors. The navy recovered the first body from inside the hull of the warship earlier this week.

“More divers and equipment arrived overnight to continue search and recovery operations for eight missing sailors inside flooded compartments of the ship,” the U.S. Seventh Fleet said in statement on its website.

On Thursday, the U.S. Navy suspended the wider search and rescue operation to focus recovery efforts on the damaged hull of the ship, which is moored at Singapore’s Changi Naval Base.

The Navy has already released the names of all the sailors who were missing.

(Reporting by Sam Holmes; Editing by Simon Cameron-Moore)

U.S. fighter pilots in Afghanistan prepare for more air strikes

A U.S. Air Force F-16 Fighting Falcon aircraft takes off for a nighttime mission at Bagram Airfield, Afghanistan, August 22, 2017. REUTERS/Josh Smith

By Josh Smith

BAGRAM AIRFIELD, Afghanistan (Reuters) – For the fighter pilots at the largest U.S. military base in Afghanistan, President Donald Trump’s new strategy for the war should mean escalating an already surging air campaign, and possibly including an unrestrained offensive against the Taliban.

The number of U.S. air strikes in Afghanistan has already dramatically spiked since Trump took office in January, from 1,074 in all of last year to 2,244 as of August 20 this year.

After a months-long review of his Afghanistan policy, Trump committed the United States last week to an open-ended conflict in the country and promised a stepped-up campaign against the Taliban insurgents.

Few details have emerged, but the pilots in Bagram are preparing for the possibility they’ll be taking the fight to the Taliban in a way they haven’t since the U.S.-led “combat mission” in Afghanistan was called off at the end of 2014.

Among their targets since then have been Islamic State militants, who are also active in the country.

“Between the two groups, the Taliban are definitely smarter,” F-16 pilot Maj. Daniel Lindsey told Reuters. “The Taliban are much harder to kill.”

While Islamic State has launched a series of deadly attacks around the country, it has nowhere near the influence, reach, and community ties that the Taliban has.

It’s those factors that pilots say make the Taliban a more challenging target, and one that has outlasted years of heavy bombardment.

“The Taliban is often embedded in the community, but nobody likes the Islamic State, so they are often separate,” Lindsey said.

NEW PARAMETERS

In many ways, Trump’s policy is less a new plan than the continuation of a slow slide back into combat for American troops, although officials are quick to say their mission will remain focused on training and advising Afghan forces.

On Thursday, the commander of U.S. troops in Afghanistan, Gen. John Nicholson, confirmed that his forces would increase air support for Afghan troops.

“We know the enemy fears air power,” he told reporters in Kabul.

White House officials have said that rolling back territorial gains by the Taliban will be one of the key objectives of the new strategy.

For a time after former president Barack Obama declared America’s combat mission over in Afghanistan at the end of 2014, U.S. forces were restricted from attacking the Taliban in most circumstances except self-defense.

As the group expanded its hold in Afghanistan, however, Obama began to loosen some of those rules and Trump has gone further in sending U.S. troops back into battle with their old adversaries.

Asked about the recent effects of U.S. air strikes, Taliban spokesman Zabihullah Mujahid said the group’s fighters had become used to dodging American bombs.

“In 2010, 2011 and 2012 the U.S. air strikes were successful and we lost many Mujahideen,” he told Reuters. “But now we have enough experience to avoid casualties during their strikes by hiding in mountain holes and other places.”

Still, forcing the Taliban to hide and preventing them from massing fighters has in some cases been credited with helping Afghan security forces hold on to some cities and blunt Taliban offensives.

EXPANDING STRIKES

Trump also announced that he would “lift restrictions and expand authorities in the field,” but it remains unclear exactly what that would entail.

A U.S. military spokesman in Kabul, Capt. William Salvin, said U.S. forces are still limited to conducting air strikes in three broad circumstances: self-defense, counter-terrorism strikes against specific groups, and helping Afghan troops achieve “strategic effects.”

He declined to say whether those parameters might change.

The U.S. military does not publicize its rules of engagement, but Lindsey said compared to when he was a fighter pilot at the height of the troop surge in Iraq in 2007, the so-called “ROE” in Afghanistan were less restrictive.

“Some guys can complain about it, but most I know don’t seem to have any problem finding Islamic State or Taliban to kill,” he said. “If you use the rules smartly, you’ll get the bad guys.”

The surge in air strikes has led the U.S. Air Force units at Bagram to increase their maintenance and intelligence efforts, said F-16 pilot Maj. Abraham Lehman.

Officials say ramping up the number of strikes further would require the deployment of more support staff as well as additional specialized troops on the ground to coordinate the strikes.

While he said he had no information on new plans to deploy additional aircraft, Lehman said it “made sense” to increase air support as the Pentagon sends thousands more troops to the country.

“What we do is always a joint effort between us and the ground troops,” Lehman said.

(Additional reporting by Mirwais Harooni in Kabul, Editing by Raju Gopalakrishnan)