Russia, digesting U.S. diplomatic retaliation, pledges ‘harsh’ response

The entrance to the building of the Consulate General of Russia is shown in San Francisco, California, U.S., August 31, 2017. REUTERS/Stephen Lam

By Andrew Osborn

MOSCOW (Reuters) – Russia said on Friday it would respond harshly to any U.S. measures designed to hurt it, a day after the United States told Moscow to close its San Francisco consulate and buildings in Washington and New York.

The warning, from Foreign Minister Sergei Lavrov, came as Russia said it was weighing a response to the U.S. move that will force it to shutter two trade missions in the United States as well as the San Francisco consulate by Sept. 2.

“We’ll react as soon as we finish our analysis,” Lavrov told students in Moscow. “We will respond harshly to things that damage us.”

Separately, a top Kremlin aide complained the U.S. demarche pushed bilateral ties further into a blind alley and fuelled a spiral of tit-for-tat retaliatory measures.

U.S. President Donald Trump took office in January, saying he wanted to improve U.S.-Russia ties which were at a post-Cold War low. But since then, ties have frayed further after U.S. intelligence officials said Russia had meddled in the presidential election, something Moscow denies.

Trump, himself battling allegations his associates colluded with Russia, grudgingly signed new sanctions on Moscow into law this month which had been drawn up by Congress.

When it became clear those measures would become law, Moscow ordered the United States to cut its diplomatic and technical staff in Russia by more than half, to 455 people.

Lavrov hinted on Friday that Russia might look at ordering further reductions in U.S. embassy staff, suggesting Moscow had been generous last time by allowing Washington to keep “more than 150” extra people.

He said Russia had cut the U.S. numbers to tally with the number of Russian diplomats in the United States, but that Moscow had generously included more than 150 Russian staff who work at Russia’s representation office at the United Nations.

Lavrov said Moscow still hoped for better relations and blamed Trump’s political foes for the deteriorating situation.

“I want to say that this whole story with exchanging tit-for-tat sanctions was not started by us,” Lavrov said.

“It was started by the Obama administration to undermine U.S.-Russia relations and to not allow Trump to advance constructive ideas or fulfil his pre-election pledges.”

Barack Obama, then outgoing president, expelled 35 suspected Russian spies in December and seized two Russian diplomatic compounds. President Vladimir Putin paused before responding, saying he would wait to see how Trump handled Russia.

“We thought this administration could exercise common sense, but unfortunately the Russophobes in Congress are not allowing it to,” said Lavrov, who complained that the United States had only given Moscow 48 hours to comply with its latest demands.

(Additional reporting by Denis Pinchuk; Editing by Robin Pomeroy)

After North Korea missile, Britain and Japan agree closer security ties

British Prime Minister Theresa May (3rd L) and members of Japan's National Security Council pose for the media prior to their meeting at Japan's Prime Minister Shinzo Abe's official residence in Tokyo on August 31, 2017. (L-R) Defense Minister Itsunori Onodera, Chief Cabinet Secretary Yoshihide Suga, British Prime Minister Theresa May, Prime Minister Shinzo Abe, Deputy Prime Minister and Finance Minister Taro Aso, Foreign Minister Taro Kono, and Shotaro Yachi, head of the National Security Council. REUTERS/Kazuhiro Nogi/Pool

By William James

TOKYO (Reuters) – Britain and Japan said on Thursday they would cooperate in countering the threat posed by North Korea, two days after it fired a missile over northern Japan, and will call on China to exert its leverage.

Prime Minister Theresa May, looking to strengthen relations with one of her closest allies ahead of Brexit, is visiting Japan as it responds to an increasing military threat.

Terming North Korea’s missile program “a global threat”, Prime Minister Shinzo Abe told a news conference that Japan and Britain would cooperate.

“It is very meaningful that Prime Minister May and I agreed to further strengthen pressure on North Korea and to call on China to play a larger role,” he added.

May agreed, noting that China, North Korea’s lone major ally, had been involved in U.N. Security Council debate earlier this week.

“China does have a particular position in this, they have leverage on North Korea and I believe we should be encouraging China to exercise that leverage to do what we all want – which is to ensure that North Korea is not conducting these illegal acts.”

May toured Japan’s flagship Izumo helicopter carrier for a military briefing with Minister of Defence Itsunori Onodera before attending a national security meeting.

May and Abe agreed on a joint declaration on security cooperation, including plans for British soldiers to take part in military exercises on Japanese soil and for collaboration to address the threat of cyber and militant attacks when Japan hosts the Olympics in 2020.

North Korea featured heavily in the talks after it launched a ballistic missile on Tuesday that passed over Japanese territory, prompting international condemnation.

May’s office had said the two leaders were expected to discuss the possibility of further sanctions on North Korea, but neither Abe nor May touched on the issue at the news conference.

The Global Times, a publication of the official People’s Daily of China’s ruling Communist Party, criticized an earlier comment of May’s comment calling for more pressure from China.

“Beijing does not need London to teach it how to deal with North Korea,” the newspaper said.

Asked about the United States, Japan and Britain looking to impose new sanctions on North Korea, Chinese Foreign Ministry spokeswoman Hua Chunying said the situation could only be resolved peacefully through dialogue.

“We think it is regrettable that some countries selectively overlook the relevant Security Council resolutions’ demand to advance dialogue, and stubbornly emphasize pressure and sanctions,” she told a daily news briefing.

‘OUTWARD-LOOKING’

Apart from security, May’s trip has focused on trade and investment. She is keen to convince nervy investors that Britain’s exit from the European Union will not make it a less attractive business partner.

Both May and Abe addressed a delegation of British business leaders and senior representatives from major Japanese investors in Britain, such as carmakers Nissan, Toyota and conglomerate Hitachi.

Abe told the gathering that May had assured him Britain’s negotiations on leaving the European Union would be transparent.

May said Japanese investment after Britain’s vote to leave the EU was a vote of confidence and she pledged to build close trade ties with Japan.

“I very much welcome the commitment from Japanese companies such as Nissan, Toyota, Softbank and Hitachi,” May said.

“I am determined that we will seize the opportunity to become an ever more outward-looking global Britain, deepening our trade relations with old friends and new allies.”

During a two-hour train ride between Kyoto and Tokyo late on Wednesday, the two leaders discussed Brexit, with May talking Abe through the details of a series of papers published in recent weeks setting out her negotiating position.

May said on Wednesday Japan’s upcoming trade deal with the EU could offer a template for a future Japan-Britain trade agreement, the latest attempt to show investors that Brexit will not lead to an overnight change in business conditions.

Japan has been unusually open about its concerns over Brexit, worrying that 40 billion pounds ($51.68 billion) of Japanese investment in the British economy could suffer if trading conditions change abruptly when Britain leaves the bloc.

(Additional reporting by Tim Kelly, Elaine Lies, Linda Sieg, Kiyoshi Takenaka and Takashi Umekawa, and Michael Martina in BEIJING; Editing by Clarence Fernandez, Robert Birsel and Nick Macfie)

Trump says ‘talking not the answer’ on North Korea, Mattis disagrees

A missile is launched during a long and medium-range ballistic rocket launch drill in this undated photo released by North Korea's Korean Central News Agency (KCNA) in Pyongyang on August 30, 2017. KCNA/via REUTERS

By Idrees Ali and Soyoung Kim

WASHINGTON/SEOUL (Reuters) – President Donald Trump on Wednesday said “talking is not the answer” to the tense standoff with North Korea over its nuclear missile development, but his defense chief swiftly asserted that the United States still has diplomatic options.

Trump’s comment, coming a day after Pyongyang fired a ballistic missile over Japan that drew U.N. and other international condemnation, renewed his tough rhetoric toward reclusive, nuclear-armed and increasingly isolated North Korea.

“The U.S. has been talking to North Korea, and paying them extortion money, for 25 years,” Trump wrote on Twitter. “Talking is not the answer!”

When asked by reporters just hours later if the United States was out of diplomatic solutions with North Korea amid rising tensions after a series of missile tests by Pyongyang, U.S. Defense Secretary Jim Mattis replied: “No.”

“We are never out of diplomatic solutions,” Mattis said before a meeting with his South Korean counterpart at the Pentagon. “We continue to work together, and the minister and I share a responsibility to provide for the protection of our nations, our populations and our interests.”

Trump, who has vowed not to let North Korea develop nuclear missiles that can hit the mainland United States, had said in a statement on Tuesday that “all options are on the table.”

North Korea said the launch of an intermediate-range ballistic missile (IRBM) on Tuesday was to counter U.S. and South Korean military drills and was a first step in military action in the Pacific to “containing” the U.S. island territory of Guam.

The 15-member U.N. Security Council condemned the firing of the missile over Japan as “outrageous,” and demanded that North Korea halt its weapons program. The U.S.-drafted statement, which did not threaten new sanctions on North Korea, urged all nations to implement U.N. sanctions and said it was of “vital importance” that Pyongyang take immediate, concrete actions to reduce tensions.

Trump’s mention of payments to North Korea appeared to be a reference to previous U.S. aid to the country.

A U.S. Congressional Research Service report said between 1995 and 2008, the United States provided North Korea with over $1.3 billion in assistance. Slightly more than 50 percent was for food and about 40 percent for energy assistance. The assistance was part of a nuclear deal that North Korea later violated.

Since early 2009, the United States has provided virtually no aid to North Korea, though periodically there have been discussions about resuming large-scale food aid.

The latest tweet by the Republican U.S. president drew criticism from some quarters in Washington. Democratic Senator Chris Murphy wrote on Twitter: “Bar is high, but this is perhaps the most dangerous, irresponsible tweet of his entire Presidency. Millions of lives at stake – not a game.”

North Korea’s leader, Kim Jong Un, ordered the launch to be conducted for the first time from its capital, Pyongyang, and said more exercises with the Pacific as the target were needed, the North’s KCNA news agency said on Wednesday.

“The current ballistic rocket launching drill like a real war is the first step of the military operation of the KPA in the Pacific and a meaningful prelude to containing Guam,” KCNA quoted Kim as saying. KPA stands for the Korean People’s Army.

Trump’s secretaries of defense and state have emphasized finding a diplomatic solution to North Korea’s nuclear ambitions. Earlier this month, Mattis told reporters the U.S. effort “is diplomatically led. It has diplomatic traction. It is gaining diplomatic results.”

Trump has offered divergent comments on North Korea in recent weeks. On Aug. 22, he tweeted that “I respect the fact that he is starting to respect us,” referring to Kim, and that maybe “something positive can come about.” On Aug. 8, Trump had threatened to unleash “fire and fury” against North Korea if it threatened the United States, and two days later delivered some more menacing words.

North Korea threatened to fire four missiles into the sea near Guam, home to a major U.S. military presence, after Trump’s “fire and fury” remark.

‘KEY MILESTONE’

The U.S. Defense Department’s Missile Defense Agency and the crew of the USS John Paul Jones conducted a “complex missile defense flight test” off Hawaii early on Wednesday, resulting in the intercept of a medium-range ballistic missile target, the agency said.

The agency’s director, Lieutenant General Sam Greaves, called the test “a key milestone” in giving U.S. Navy Aegis Ballistic Missile Defense ships an enhanced capability, but did not mention North Korea.

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

In Geneva, American disarmament ambassador Robert Wood, addressing the U.N.-sponsored Conference on Disarmament, called for “concerted action” by the international community to pressure North Korea into abandoning its banned nuclear and missile program by fully enforcing economic sanctions.

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

Speaking during a visit to the Japanese city of Osaka, British Prime Minister Theresa May called on China to put more pressure on North Korea.

Asked about her comments, Chinese Foreign Ministry spokeswoman Hua Chunying said some “relevant sides” were only selectively carrying out the U.N. resolutions by pushing hard on sanctions yet neglecting to push for a return to talks.

She said this was not the attitude “responsible countries” should have when the “smell of gunpowder” remained strong over the Korean peninsula.

“When it comes to sanctions, they storm to the front but when it comes to pushing for peace they hide at the very back,” Hua told a daily news briefing.

North Korea has conducted dozens of ballistic missile tests under Kim in defiance of U.N. sanctions, but firing a projectile over mainland Japan was a rare and provocative move. Tuesday’s test was of the same Hwasong-12 missile Kim had threatened to use on Guam, but the test flight took it in another direction, over northern Japan’s Hokkaido island and into the sea.

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

For a graphic on North Korean missile trajectories, click: http://fingfx.thomsonreuters.com/gfx/rngs/NORTHKOREA-MISSILES/010050CG0RT/NORTHKOREA-MISSILES.png

For a graphic on Kim’s new act of defiance, click: http://fingfx.thomsonreuters.com/gfx/rngs/NORTHKOREA-MISSILES/010050KV1C3/index.html

(Additional reporting by Jack Kim in Seoul, and Philip Wen and Michael Martina in Beijing, Susan Heavey, Yeganeh Torbati and David Alexander in Washington, Kanishka Singh in Bengaluru and William James in Osaka, Japan; Writing by Will Dunham; Editing by Jeffrey Benkoe and Alistair Bell)

Germany keen to avoid new ‘ice age’ in ties between Russia, West

U.S. Secretary of State Rex Tillerson (R) and German Foreign Minister Sigmar Gabriel walk out to meet the press where Tillerson made a statement about the flooding in Houston, Texas, but declined questions, prior to a bilateral meeting, at the State Department, in Washington, U.S., August 29, 2017. REUTERS/Mike Theiler

WASHINGTON (Reuters) – Germany and Europe want to ensure that new U.S. sanctions against Russia do not lead to a new “ice age” in ties between Russia and the West, German Foreign Minister Sigmar Gabriel said on Tuesday.

Gabriel said he spoke with U.S. Secretary of State Rex Tillerson about the sanctions in a meeting in Washington, adding that he was grateful that U.S. President Donald Trump had agreed to coordinate on further measures with U.S. allies.

“We as Europeans have great concerns that this will have unintended consequences for Europe. We don’t want to completely destroy our business relations with Russia, especially in the energy sector,” Gabriel said.

Trump this month approved new sanctions on Moscow for its 2014 annexation of Ukraine’s Crimea peninsula and for what U.S. intelligence agencies say was its meddling in the U.S. presidential election, a charge Russia denies.

Gabriel has criticized the United States for the move, saying the new punitive measures expose European companies involved in energy projects in Russia to fines for breaching U.S. law.

Economy Minister Brigitte Zypries even urged the EU to retaliate against the United States if the new sanctions on Russia should end up penalizing German firms.

Gabriel said European leaders were concerned that the latest sanctions would not only have economic consequences, but could also “lead to a new ice age between Russia and the United States and the West.”

Despite European concerns about the sanctions, Gabriel insisted that Moscow must do its part to implement a fragile ceasefire agreement in place for eastern Ukraine, including the withdrawal of heavy weapons.

“That would be a starting point for improved relations,” Gabriel said.

German Chancellor Angela Merkel and French President on Monday called for Russia and Ukraine to increase their efforts to implement the ceasefire agreement.

The conflict between Ukrainian forces and Russian-backed separatists has claimed more than 10,000 lives since it erupted in 2014. Germany and France have tried to convince both sides to implement a peace deal agreed in Minsk in 2015 but with little success so far.

(Reporting by Andrea Shalal; Editing by Hugh Lawson)

North Korea presses rocket program, but amid signs of drama easing

North Korean leader Kim Jong-Un smiles during a visit to the Chemical Material Institute of the Academy of Defense Science in this undated photo released by North Korea's Korean Central News Agency (KCNA) in Pyongyang on August 23, 2017. KCNA/via REUTERS

By Christine Kim

SEOUL (Reuters) – North Korean leader Kim Jong Un has ordered more solid-fuel rocket engines, state media reported on Wednesday, as he pursues nuclear and missile programs amid a standoff with Washington, but there were signs of tension easing.

The report carried by the KCNA news agency lacked the traditionally robust threats against the United States after weeks of unbridled acrimony, and U.S. President Donald Trump expressed optimism about a possible improvement in relations.

“I respect the fact that he is starting to respect us,” Trump said of Kim at a raucous campaign rally in Phoenix, Arizona.

“And maybe – probably not, but maybe – something positive can come about,” he said.

The KCNA report, about a visit by Kim to a chemical institute, came not long after U.S. Secretary of State Rex Tillerson appeared to make a peace overture, welcoming what he called recent restraint shown by the reclusive North.

Kim was briefed about the process of manufacturing intercontinental ballistic missile (ICBM) warhead tips and solid-fuel rocket engines during his tour of the Chemical Material Institute of the Academy of Defence Science, KCNA said.

“He instructed the institute to produce more solid-fuel rocket engines and rocket warhead tips by further expanding engine production process and the production capacity of rocket warhead tips and engine jets by carbon/carbon compound material,” KCNA said.

North Korea has conducted two nuclear tests and dozens of missile tests since the beginning of last year, significantly raising tension on the heavily militarized Korean peninsula and in defiance of U.N. Security Council resolutions. Two ICBM tests in July resulted in a new round of tougher global sanctions.

The last missile test on July 28 put the U.S. mainland in range, prompting heated exchanges that raised fears of a new conflict on the peninsula.

Tillerson, however, noted what he called the restraint the North had shown and said on Tuesday he hoped a path could be opening for dialogue.

SIMULATED WAR DRILLS

South Korea and the United States are conducting an annual military exercise this week involving computer simulations of a war.

The drills, which the North routinely describes as preparation for invasion, run until Aug. 31, and included South Korean a civil defense exercise on Wednesday that saw traffic halted, movie screenings interrupted and hundreds of thousands of people directed to underground shelters.

The KCNA report said Kim had given “special thanks and special bonus” to officials of the institute, calling them heroes. A photograph showed Kim in a gray pinstriped suit, smiling before a large flow chart that described some kind of manufacturing process.

There was none of the fiery rhetoric of recent weeks, when Kim threatened to fire missiles into the sea near the U.S. Pacific territory of Guam after Trump warned North Korea it would face “fire and fury” if it threatened the United States.

But there were some signs of tension after the United States imposed new North Korea-related sanctions, targeting Chinese and Russian firms and individuals for supporting North Korea’s weapons programs.

The U.S. Treasury designated six Chinese-owned entities, one Russian, one North Korean and two based in Singapore. They included a Namibia-based subsidiary of a Chinese company and a North Korean entity operating in Namibia.

China reacted with irritation, saying the United States should “immediately correct its mistake” of imposing unilateral sanctions on Chinese companies and individuals.

Chinese Foreign Ministry spokeswoman Hua Chunying said all sides, especially the United States and North Korea, needed to exercise restraint.

“We hope all sides can be brave enough to shoulder their responsibilities, show goodwill to each other and take correct actions to help further ease tensions,” she told a regular press briefing.

Singapore-registered companies Velmur Management and Transatlantic Partners were named in the U.S. Treasury’s sanction statement as providing oil to North Korea and working with designated individuals.

Singapore’s Ministry of Foreign Affairs said U.S. authorities had informed them prior to the designations and it was investigating.

“Singapore will strictly fulfil its obligations under the UNSCRs and international law, and not allow our financial system to be abused for the conduct of illicit activities,” the ministry said in a statement, referring to U.N. Security Council resolutions.

Both Velmur and Transatlantic are represented by business service providers in Singapore that manage their local registrations.

Rivkin, which provides secretarial services for Velmur, said it would end its business relationship with the company and file a suspicious transaction report on their dealings to the police.

A representative for MEA Business Consultancy, which is located at the registered address for Transatlantic, said it provided services for the firm but only for registration purposes.

The United States has long urged China to do more to rein in North Korea, which counts Beijing as its lone major ally. Data released on Wednesday showed China’s trade with North Korea fell in July from a month earlier as a ban on coal purchases from its isolated neighbor slowed imports.

The United States is 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 U.S. hostility.

(Additional reporting by Steve Holland in PHOENIX, David Brunnstrom and Doina Chiacu in WASHINGTON, Josephine Mason and Ben Blanchard in BEIJING and Fathin Ungku and Karishma Singh in SINGAPORE; Writing by Nick Macfie; Editing by Paul Tait, Robert Birsel)

U.S. targets Chinese and Russia entities over North Korea

Treasury Secretary Steven Mnuchin walks through the lobby of Trump Tower in New York City, U.S., August 15, 2017. REUTERS/Brendan McDermid

By David Brunnstrom and Doina Chiacu

WASHINGTON (Reuters) – The United States is imposing new North Korea-related sanctions, targeting Chinese and Russian firms and individuals for supporting Pyongyang’s weapons programs, U.S. officials announced on Tuesday, but stopped short of an anticipated focus on Chinese banks.

The Office of Foreign Assets Control designated six Chinese-owned entities, one Russian, one North Korean and two based in Singapore. They included a Namibia-based subsidiary of a Chinese company and a North Korean entity operating in Namibia.

Six individuals including four Russians, one Chinese and one North Korean were targeted, the Treasury Department said.

The move follows toughened United Nations sanctions agreed this month after North Korea tested its first two intercontinental ballistic missiles in July.

The Treasury Department said the new sanctions targeted those helping already-designated individuals supporting North Korea’s nuclear and ballistic missile programs and its energy trade. They included three Chinese coal importers.

The steps also targeted those helping North Korea send workers abroad and enabling sanctioned North Korea entities to get access to the U.S. and international financial system.

“Treasury will continue to increase pressure on North Korea by targeting those who support the advancement of nuclear and ballistic missile programs, and isolating them from the American financial system,” Treasury Secretary Steven T. Mnuchin said in a statement.

“It is unacceptable for individuals and companies in China, Russia, and elsewhere to enable North Korea to generate income used to develop weapons of mass destruction.”

A new round of U.S. sanctions had been expected, but Washington appeared to delay them while securing Chinese and Russian support for tougher U.N. steps.

U.S. officials and U.N. diplomats say the threat of U.S. “secondary sanctions” against Chinese firms with North Korean ties and trade pressure helped persuade China to drop opposition to the U.N. sanctions.

The latest steps stopped short of targeting Chinese financial institutions dealing with North Korea, a step that would have greatly angered Beijing. The Trump administration is still hoping China will pressure Pyongyang.

“The sanctions target a range of North Korea’s illicit activities and the focus on Chinese facilitators is another message to Beijing,” said Anthony Ruggiero, a Foundation for Defense of Democracies senior fellow and former U.S. Treasury official.

“However, there are missing elements. There’s no focus on the efforts of Chinese banks that facilitate these transactions. In addition, these Chinese networks likely have additional front companies operating on behalf of the network and those were not sanctioned.”

China is North Korea’s neighbor and main trading partner and U.S. foreign policy experts say Chinese companies have long had a key role in financing Pyongyang.

The Chinese and Russians embassies in Washington did not respond to requests for comment. China has said in the past it is strongly opposed to unilateral sanctions outside the U.N. framework, and has accused the United States of using “long-arm” jurisdiction in targeting Chinese entities.

(Additional reporting by Yeganeh Torbati; Editing by David Alexander and Jeffrey Benkoe)

Japan urges pressure on North Korea as U.S. spells out choices

FILE PHOTO: Japanese Foreign Minister Taro Kono gestures during a news conference on the sidelines of the 50th Association of Southeast Asia Nations (ASEAN) Regional Forum (ARF) in Manila, Philippines August 7, 2017. REUTERS/Dondi Tawatao

By Kiyoshi Takenaka and Stephanie Nebehay

TOKYO/GENEVA (Reuters) – Japan said on Tuesday the world must keep pressure on North Korea to rein in its nuclear and missile programs as the United States spelt out the choice for impoverished Pyongyang between belligerence and prosperity.

North Korea has pursued its weapons tests in defiance of U.N. Security Council resolutions and sanctions and ignored all calls, including from major ally China, to stop, prompting a bellicose exchange of rhetoric between the North and the United States.

North Korea justifies its weapons programs, including its recent threat to fire missiles towards the U.S. Pacific territory of Guam, by pointing to perceived U.S. hostility, such as military exercises with South Korea this week.

Japanese Foreign Minister Taro Kono said pressure must be maintained until the North demonstrated it would give up its nuclear program.

“It’s not the time to discuss (the resumption of) six-party talks,” Kono said, referring to international negotiations involving both Koreas, the United States, Russia, China and Japan for the denuclearization of the Korean peninsula.

“It’s time to exert pressure,” he told reporters.

U.S. President Donald Trump’s top priority is to protect the United States and its allies against the “growing threat” from North Korea and America is ready to use “the full range of capabilities” at its disposal, a U.S. envoy said.

U.S. disarmament ambassador Robert Wood told a U.N.-sponsored Conference on Disarmament in Geneva the “path to dialogue still remains an option” for Pyongyang and it had the choice between poverty and belligerence and prosperity and acceptance.

There was no immediate reply from the North Korean delegate in the room.

‘CRAZY’ TO SHARE TIMELINE

The head of the U.S. military’s Pacific Command said diplomacy was key.

Admiral Harry Harris was in South Korea to observe annual joint military drills with the South Korean military, which the North called a step towards nuclear conflict masterminded by U.S. and South Korean “war maniacs”.

“So we hope and we work for diplomatic solutions to the challenge presented by Kim Jong Un,” Harris told reporters at a U.S. air base in Osan, about an hour from the capital, Seoul, referring to the North Korean leader.

He said diplomacy was “the most important starting point” in response to the North’s threat, when asked what actions by North Korea might trigger a preemptive U.S. strike against it.

“As far as a timeline, it would be crazy for me to share with you those tripwires in advance. If we did that, it would hardly be a military strategy,” he said.

The United States and South Korea began the long-planned exercises on Monday, called the Ulchi Freedom Guardian, which the allies have said are purely defensive.

The drills end on Aug. 31 and involve tens of thousands of troops as well as computer simulations designed to prepare for war with a nuclear-capable North Korea.

A North Korean army spokesman repeated a threat of retaliation against the United States for readying a preemptive strike and a war of aggression, using the drills as an excuse to mount such an attack.

“The U.S. will be wholly held accountable for the catastrophic consequences to be entailed by such reckless aggressive war maneuvers, as it chose a military confrontation,” the unidentified spokesman said in comments carried by the North’s official KCNA news agency.

The United States and North Korea are technically still at war with the North because their 1950-53 conflict ended in a truce, not a peace treaty.

(Additional reporting by Christine Kim in Pyeongtaek, South Korea, Tim Kelly in Tokyo; Writing by Jack Kim and Nick Macfie; Editing by Robert Birsel)

Regional nations plus U.S. condemn Venezuela’s new constituent assembly

Delcy Rodriguez (C), president of the National Constituent Assembly, speaks during a meeting of the Truth Commission in Caracas, Venezuela August 16, 2017. REUTERS/Ueslei Marcelino

By Hugh Bronstein and Mitra Taj

CARACAS/LIMA (Reuters) – A group of 12 regional nations plus the United States rejected Venezuela’s new government-allied legislative superbody, saying they would continue to regard the opposition-controlled congress as the country’s only legitimate law maker.

The move came after an announcement on Friday that the newly-created constituent assembly, elected in late July to re-write the crisis-hit country’s constitution, would supersede congress and pass laws on its own.

The Lima Group, including Peru, Argentina, Brazil, Canada, Colombia and seven other regional governments, late on Friday joined the United States in criticizing the assembly for “usurping” the powers of Venezuela’s tradition congress.

The congress has been controlled by the opposition since 2016, but has been neutered by President Nicolas Maduro’s loyalist Supreme Court, which has tossed out almost every law it has passed.

“We reiterate our rejection of the constituent assembly and its actions,” the 12-member Lima Group said in a statement published by Peru’s foreign ministry.

“We ratify our full support for the Venezuelan congress.” it added.

Maduro has slapped the opposition with several measures blaming it for the unrest that killed more than 125 people in recent months as security forces met rock-throwing protesters with rubber bullets and water cannon. The U.N. says government troops used excessive force in many cases.

One of the measures is the assembly’s new truth commission that will investigate opposition candidates running in October gubernatorial elections, to see if they were involved in the deadly protests. Considering that many opposition figures supported the demonstrations, the commission could hobble their efforts at winning governorships in the upcoming vote.

Anti-government marches have stalled since the assembly was inaugurated on Aug. 5. The opposition was stunned by a threat of U.S. military action in Venezuela issued by President Donald Trump on Aug. 11.

The threat played into Maduro’s hands by supporting his oft-repeated assertion that the U.S. “empire” wants to invade Venezuela to steal its oil. The idea had been easily dismissed as absurd by opposition and U.S. officials before Trump’s surprise statement that “a military option” was on the table for dealing with Venezuela’s political crisis.

Over the days ahead the assembly says it will pass a law against “expressions of hate and intolerance,” which rights groups say is so vaguely worded it could allow for the prosecution of almost anyone who voices dissent.

(Reporting by Hugh Bronstein and Mitra Taj; Editing by Andrew Bolton)

With a wary eye on Iran, Saudi and Iraqi leaders draw closer

With a wary eye on Iran, Saudi and Iraqi leaders draw closer

By Ahmed Rasheed and Sylvia Westall

BAGHDAD/DUBAI (Reuters) – It was an unusual meeting: An Iraqi Shi’ite Muslim cleric openly hostile to the United States sat in a palace sipping juice at the invitation of the Crown Prince of Saudi Arabia, the Sunni kingdom that is Washington’s main ally in the Middle East.

For all the implausibility, the motivations for the July 30 gathering in Jeddah between Moqtada al-Sadr and Crown Prince Mohammed bin Salman run deep, and center on a shared interest in countering Iranian influence in Iraq.

For Sadr, who has a large following among the poor in Baghdad and southern Iraqi cities, it was part of efforts to bolster his Arab and nationalist image ahead of elections where he faces Shi’ite rivals close to Iran.

For the newly elevated heir to the throne of conservative Saudi Arabia, the meeting – and talks with Iraqi Prime Minister Haider al-Abadi in June – is an attempt to build alliances with Iraqi Shi’ite leaders in order to roll back Iranian influence.

“Sadr’s visit to Saudi Arabia is a bold shift of his policy to deliver a message to regional, influential Sunni states that not all Shi’ite groups carry the label ‘Made in Iran’,” said Baghdad-based analyst Ahmed Younis.

This policy has assumed greater prominence now that Islamic State has been driven back in northern Iraq, giving politicians time to focus on domestic issues ahead of provincial council elections in September and a parliamentary vote next year.

“This is both a tactical and strategic move by Sadr. He wants to play the Saudis off against the Iranians, shake down both sides for money and diplomatic cover,” said Ali Khedery, who was a special assistant to five U.S. ambassadors in Iraq.

“NECESSARY EVIL”

Ultimately, Sadr seeks a leadership role in Iraq that would allow him to shape events without becoming embroiled in daily administration, which could erode his popularity, diplomats and analysts say.

Such a role – religious guide and political kingmaker – would fit with the patriarchal status the Sadr religious dynasty has for many Shi’ite Arabs in Iraq, Lebanon, Kuwait and Bahrain.

Days after the Jeddah meeting, Sadr met Sheikh Mohammed bin Zayed al-Nahayan, Crown Prince of Abu Dhabi, who has also taken an assertive line against Tehran, the dominant foreign power in Iraq since the 2003 U.S. invasion ended Sunni minority rule.

Iran has since increased its regional influence, with its forces and allied militias spearheading the fight against Islamic State in Iraq and Syria and holding sway in Baghdad.

For Saudi Arabia, which sees itself as the bastion of Sunni Islam, less Iranian influence in Iraq would be a big win in a rivalry that underpins conflict across the Middle East.

“There are plans to secure peace and reject sectarianism in the region,” Sadr told the Saudi-owned Asharq al-Awsat newspaper last week, saying that it was “necessary to bring Iraq back into the Arab fold”.

When asked what Saudi Arabia hoped to achieve with Sadr’s recent visit to the Kingdom and the UAE, a Saudi official at the Saudi embassy in Washington said: “Saudi Arabia hopes to encourage Iraqis to work together to build a strong resilient and independent state. With that in mind, it will reach out to any party who could contribute to achieving that goal.”

Washington supports the Saudi-Iraq rapprochement, but the embracing of Sadr raises questions about whether it sees a man known for his anti-Americanism as a reliable figure.

“It is perhaps close to a necessary evil,” a U.S. official said of the visit, although he said it was a “very uncomfortable position for us to be in” due to Sadr’s anti-Americanism, which had led to the deaths of U.S. citizens.

“His visits to the region, and broadly the high-profile visits by Iraq, those things broadly are good, in that they get Iraq facing the Gulf nations and they help to turn their attention away from Iran,” the official said.

A second U.S. official said that Washington viewed the visits positively, “not because we’re Sadr fans but because we’ve been pushing Saudi Arabia to mend fences and open gates with Iraq”.

LIMITED INFLUENCE

A politician close to Sadr said the Jeddah meeting was aimed at building confidence and toning down sectarian rhetoric between the two countries.

The rapprochement is “a careful testing of the waters with the Abadi government and some of the Shia centers of influence like Sadr and the interior minister,” said Ali Shihabi, executive director of the Washington-based Arabia Foundation.

How far detente can go is unclear: Iran has huge political, military and economic influence in Iraq. Saudi Arabia is playing catch-up, having reopened an embassy in Baghdad only in 2015 after a 25-year break caused by the Iraqi invasion of Kuwait.

Whatever the Saudis and Gulf states do, “Iran will stay the key player in Iraq for at least the next 10 years,” said Wathiq al-Hashimi, chairman of the Iraqi Group for Strategic Studies think-tank.

Khedery said Saudi Arabia and the other Gulf states were not skilled at exerting external influence.

“They usually just throw money at issues and the beneficiaries of that largesse become very, very wealthy and that’s it,” he said. The Iranians in Iraq offered intelligence, diplomatic support and cash and wielded “big sticks” against anyone stepping out of line, he said.

Still, the Jeddah meeting has produced practical results.

Sadr’s office said there was an agreement to study investment in Shi’ite regions of southern Iraq. Riyadh will also consider opening a consulate in Iraq’s holy Shi’ite city of Najaf, Sadr’s base.

Saudi Arabia would donate $10 million to help Iraqis displaced by the war on Islamic State in Iraq, Sadr said, while Iraq’s oil minister said Riyadh had discussed building hospitals in Basra and Baghdad.

After the Saudi trip, Sadr again urged the Iraqi government to dismantle the Tehran-backed Shi’ite paramilitary groups involved in the fight against Islamic State – a theme that is expected to become a top election issue.

A source from Sadr’s armed group told Reuters that after the visit orders were issued to remove anti-Saudi banners from its headquarters, vehicles and streets.

Sadr had called on the Saudis to “stop hostile speeches by fanatical hardline clerics who describe Shi’ites as infidels,” and Crown Prince Mohammed had promised efforts toward this, the politician close to Sadr said.

It remains to be seen how far Saudi Arabia can prevent anti-Shi’ite outbursts by its media or on social media, since Wahhabism, the kingdom’s official ultra-conservative Sunni Muslim school, regards Shi’ism as heretical.

But the Saudi minister of state for Gulf affairs, Thamer al-Subhan, called for tolerance after greeting Sadr, using Twitter to decry “Sunni extremism and Shi’ite extremism”.

Saudi Arabia this week cracked down on Twitter users, including a radical Sunni cleric who published insulting comments about Shi’ites.

WIDER RAPPROCHEMENT

As part of the wider detente, Iraq and Saudi Arabia announced last month they are setting up a council to upgrade strategic relations.

The Saudi cabinet has approved a joint trade commission to look at investment while a Saudi daily reported the countries planned to reopen a border crossing shut for more than 25 years – a point raised by Sadr on his visit.

Brett McGurk, U.S. special envoy for the coalition against Islamic State, tweeted earlier on Wednesday that he had visited the Iraq-Saudi border: “Closed since ’90. ISIS attacked in ’15. Today: secure, re-open, bustling w/1200 pilgrims per day.”

Another sign of rapprochement is an agreement to increase direct flights to a daily basis. Iraqi Airways hopes to reopen offices in Saudi airports to help Iraqis travel to the kingdom, especially for pilgrimages, Iraq’s transport ministry said.

Then there is coordination on energy policy.

As OPEC producers, the two cooperated in November to support oil prices. Their energy ministers discussed bilateral cooperation and investment last week.

Iranian reaction to the meetings has been minimal.

“Iraqi personalities and officials do not need our permission to travel outside of Iraq or to report to us,” foreign ministry spokesman Bahram Qasemi said last week, according to the semi-official Fars news agency.

(Additional reporting by Maher Chmaytelli in Erbil, William Maclean and Rania El Gamal in Dubai and Yara Bayoumy in Washington; Editing by Giles Elgood and Leslie Adler)

Iran’s military chief in rare visit to Turkey for Syria talks

Turkish Chief of Staff General Hulusi Akar and his Iranian counterpart Major General Mohammad Baqeri are seen during a welcoming ceremony in Ankara, Turkey, August 15, 2017. REUTERS/Stringer

By Parisa Hafezi and Tuvan Gumrukcu

ANKARA (Reuters) – Turkish and Iranian military leaders held talks on Wednesday over cooperation in the Syrian conflict and counter-terrorism, officials said, during a rare visit to NATO-member Turkey by the Islamic Republic’s military chief of staff.

Turkey’s ties with Washington have been strained by U.S. support for Kurdish fighters in Syria, and the visit by Iranian General Mohammad Baqeri is the latest sign that Ankara is increasing cooperation with other powers such as Iran and Russia.

Baqeri met his Turkish counterpart on Tuesday and Turkey’s Defence Minister Nurettin Canikli on Wednesday in what Turkish media said was the first visit by an Iranian chief of staff since Iran’s 1979 Islamic revolution.

He was due to meet President Tayyip Erdogan later on Wednesday.

Turkey and Iran have supported rival sides in Syria’s six-year-old conflict, with Iran-backed fighters helping President Bashar al-Assad to drive back rebels battling to overthrow him, including some supported by Ankara.

Turkey is concerned that the Syrian chaos has empowered Kurdish forces who it says are closely tied to the long-running insurgency in its southeastern regions, as well as Islamic State fighters who have waged attacks inside Turkey, and is working with Iran and Russia to reduce the fighting in some areas.

An Iranian source said Baqeri was accompanied by the head of the ground forces of the Revolutionary Guards Corps, Iran’s most powerful security entity.

“There have been no such visits between the two countries for a long time, but considering regional developments and security issues – border security and the fight against terrorism – there was a need for such a visit,” Baqeri told Iranian state television on arrival on Tuesday.

The Iranian source said that, in addition to the war in Syria, the two sides would discuss the conflict in Iraq as well as dealing with Kurdish militants in the Turkish-Iranian border region, where Turkish media say Turkey has started building a frontier wall.

RUSSIAN MILITARY CHIEF

Turkey, Iran and Russia agreed in May to set up “de-escalation zones” in Syria to try to stem the fighting in some parts of the country, including the northern province of Idlib, which borders Turkey and has since been overrun by jihadists linked to a former al Qaeda affiliate.

That has thrown into question any suggestion that the three countries could deploy a force to police the Idlib region.

“The negotiations regarding the Idlib issue are still ongoing,” Turkey’s Foreign Minister Mevlut Cavusoglu told Turkish broadcaster TRT Haber on Wednesday.

“After the Iranian chief of staff, the Russian chief of staff will also come to Turkey,” he added.

Turkey has said for months that it is close to buying an S-400 missile defense system from Russia, and Erdogan said in July that the deal had already been signed.

Cavusoglu said Russia understood Turkey’s sensitivities about arming Kurdish fighters better than the United States, although he said U.S. officials had informed Turkey that the most recent shipments to the YPG did not include guns.

“The United States gives us reports about how many weapons they have given to the YPG every month,” he said. The latest “said they gave armored vehicles and a bulldozer, but no guns.”

Turkey’s stepped-up military talks with Iran and Russia coincide with a major oil and gas deal involving firms from the three countries.

The Turkish firm Unit International said this week it has signed a $7 billion agreement with Russia’s state-owned Zarubezhneft and Iran’s Ghadir Investment Holding to drill for oil and natural gas in Iran.

Turkey is also discussing transporting more goods through Iran to the Gulf state of Qatar, which is locked in a dispute with its neighbors Saudi Arabia, Bahrain and the United Arab Emirates.

(Additional reporting by Tulay Karadeniz and Ece Toksabay in Ankara; Editing by Dominic Evans and Alister Doyle)