U.S. lawmakers ask Blinken for briefing on Nord Stream 2 natgas pipeline

By Timothy Gardner

WASHINGTON (Reuters) – Several U.S. Representatives on Wednesday raised pressure on the State Department to share plans on potential sanctions on the Nord Stream 2 natural gas pipeline Russia is racing to finish to take fuel to Europe.

“If completed, Nord Stream 2 would enable the Putin regime to further weaponize Russia’s energy resources to exert political pressure throughout Europe,” two Republicans including Michael McCaul, and two Democrats including Marcy Kaptur, wrote in a letter to Secretary of State Antony Blinken.

U.S. representatives and senators have said that the Biden administration has missed a deadline of Feb. 16 to issue Congress a report required by recently passed law on companies helping Russia’s state energy company Gazprom lay pipeline, insure vessels, and certify construction work.

Several companies, including Zurich Insurance Group have already left fearing sanctions and companies listed in report could drop out of the project, making completion difficult.

Nord Stream 2 is more than 90% complete but requires additional tricky work in deep waters of the Baltic Sea off Denmark. The pipeline would bypass Ukraine, through which Russia has sent gas to Europe for decades, depriving it of lucrative transit fees and potentially undermining its struggle against Russian aggression.

The representatives asked Blinken for a briefing with State Department officials to inform them of the status of the report and their assessment of possible sanctionable activity of vessels believed to be helping to finish the project.

President Joe Biden believes the $11 billion pipeline, which would double the existing capacity of the Nord Stream system to take gas undersea to Germany, is a “bad deal for Europe” according to his press secretary Jen Psaki.

State Department spokesman Ned Price told reporters last week that “sanctions are only one” of many tools and that the department will work closely with allies and partners to reinforce European energy security and to safeguard against “predatory behavior”. The department did not immediately respond to a request about the requested briefing.

The representatives said the briefing should include details on “any proposals offered to the Biden administration on the future of the pipeline that aim to persuade the administration to forego or weaken the mandatory sanctions,” apparently referring to any talks between Washington and Germany for a deal on the project.

Gazprom insists the project will be completed in 2021.

(Reporting by Timothy Gardner; Editing by Marguerita Choy)

No decisions made about U.S. troop levels in Afghanistan

WASHINGTON (Reuters) – No decisions have been made on U.S. troop levels in Afghanistan, the State Department said on Wednesday after a bipartisan report to Congress called on Washington to delay a Trump administration plan to pull all U.S. forces out by May 1.

“At this time, no decisions about our force posture have been made,” State Department spokesman Ned Price told reporters, saying the Biden administration was reviewing the U.S.-Taliban troop withdrawal pact negotiated by the Trump administration.

(Reporting by Arshad Mohammed and Lisa Lambert; Editing by Leslie Adler)

U.S. approves $23.37 billion advanced arms sale to UAE, Pompeo says

By Matt Spetalnick and Pete Schroeder

WASHINGTON (Reuters) – The Trump administration told Congress on Tuesday it had approved the U.S. sale of more than $23 billion in advanced weapons systems, including F-35 fighter jets and armed drones, to the United Arab Emirates, Secretary of State Mike Pompeo said.

The formal notification followed a U.S.-brokered agreement in September in which the UAE agreed to normalize relations with Israel, becoming the first of three Arab states to make such a move in recent months.

“This is in recognition of our deepening relationship and the UAE’s need for advanced defense capabilities to deter and defend itself against heightened threats from Iran,” Pompeo said in a statement.

The $23.37 billion package includes up to 50 F-35 Lighting II aircraft, up to 18 MQ-9B Unmanned Aerial Systems and a package of air-to-air and air-to-ground munitions, the State Department said.

The U.S. Senate Foreign Relations and House of Representatives Foreign Affairs committees – whose members have criticized UAE’s role in civilian deaths in Yemen’s civil war – review major weapons sales before the State Department sends its formal notification to the legislative branch.

Any deal the United States makes to sell weapons in the Middle East must satisfy decades of agreement with Israel that it must not impair Israel’s “qualitative military edge” over its neighbors.

The announcement came just days after Democratic challenger Joe Biden won enough states needed to take the presidency from Trump, a Republican who made pro-Israel policies part of his re-election campaign.

Israel initially balked at the prospective sale of F-35 warplanes, valued at $10.4 billion, but dropped its opposition after what it described as U.S. guarantees that Israel’s regional military superiority would be preserved.

The UAE, one of Washington’s closest Middle East allies, has long wanted the stealthy jets and was promised a chance to buy them in a side deal when it agreed to normalize relations with Israel, part of a strategic regional realignment against Iran.

In the past, the F-35 has been denied to Arab states while Israel has about 24 of the jets. Israel is currently slated to purchase 50 of the fighters.

“The proposed sale will make the UAE even more capable and interoperable with U.S. partners in a manner fully consistent with America’s longstanding commitment to ensuring Israel’s Qualitative Military Edge,” Pompeo said.

The $2.97 billon sale of armed drones would mark the first such export since the Trump administration reinterpreted a Cold War-era arms agreement between 34 nations to allow U.S. defense contractors to sell more drones to allies.

(Reporting by Matt Spetalnick and Pete Schroeder; additional reporting by Mike Stone; Editing by David Gregorio and Paul Simao)

Biden camp considers legal action over agency’s delay in recognizing transition

By Simon Lewis and Tim Reid

WILMINGTON, Del. (Reuters) – President-elect Joe Biden’s transition team is considering legal action over a federal agency’s delay in recognizing the Democrat’s victory over President Donald Trump in last week’s election, a Biden official said on Monday.

The General Services Administration (GSA) normally recognizes a presidential candidate when it becomes clear who has won an election so that a transition of power can begin.

That has not yet happened despite U.S. television and news networks declaring Biden the winner on Saturday after he secured enough electoral votes to secure the presidency.

The law does not clearly spell out when the GSA must act, but Biden transition officials say their victory is clear and a delay is not justified, even as Trump refuses to concede defeat.

Trump has repeatedly claimed, without evidence, that there was widespread voting fraud and has filed a raft of lawsuits to challenge the results.

Election officials across the country say there has been no evidence of significant fraud, and legal experts say Trump’s efforts are unlikely to succeed.

GSA Administrator Emily Murphy, appointed by Trump in 2017, has not yet determined that “a winner is clear,” a spokeswoman said. A source close to Murphy said she was a thorough professional who would take her time making a careful decision.

A Biden transition official told reporters on a call that it was time for the GSA’s administration to grant what is known as an ascertainment recognizing the president-elect, and said the transition team would consider legal action if it was not granted.

“Legal action is certainly a possibility, but there are other options as well that we’re considering,” said the official, who spoke on condition of anonymity, declining to outline other options.

The delay is costing the Biden team access to millions of dollars in federal funding and the ability to meet with officials at intelligence agencies and other departments

The transition team needs to be recognized to access funds for salaries, consultants and travel, as well as access to classified information, the official said.

In addition, the team has no access to the State Department, which usually facilitates calls between foreign leaders and the president-elect, the official said.

A senior administration official said the agency did not approve the start of a formal transition process in 2000 for five weeks while Republican George W. Bush and Democrat Al Gore battled over an election that came down to just hundreds of votes in Florida.

(Reporting by Simon Lewis and Tim Reid; Additional reporting by Trevor Hunnicutt and Andrea Shalal; Editing by Kim Coghill and Peter Cooney)

China imposes curbs on U.S. diplomats in response to U.S. move

BEIJING (Reuters) – China on Friday said it had imposed restrictions on staff at the U.S. Embassy and its consulates in mainland China and Hong Kong, responding to U.S. measures announced early this month.

China’s Foreign Ministry did not specify the measures, which it described as reciprocal.

Last week, Washington said it would require senior Chinese diplomats to get State Department approval before visiting university campuses or holding cultural events with more than 50 people outside mission grounds, which it had said were a response to China’s restrictions on American diplomats.

(Reporting by Lusha Zhang and Tony Munroe; Editing by Kevin Liffey)

Hong Kong will suspend some legal cooperation with U.S., China says

BEIJING (Reuters) – Hong Kong will suspend an agreement on mutual legal assistance with the United States, China’s foreign ministry said on Thursday, in a tit-for-tat response to Washington ending some agreements with Hong Kong.

The U.S. State Department notified Hong Kong on Wednesday that Washington had suspended or terminated three bilateral agreements with the semi-autonomous city following China’s imposition of a sweeping national security law.

“China urges the U.S. to immediately correct its mistakes,” foreign ministry spokesman Zhao Lijian told a news briefing on Thursday as he announced the suspension of the agreement on legal assistance.

The agreement, signed in 1997 before Britain returned Hong Kong to China, specified that the United States and Hong Kong governments would help each other in criminal matters such as transferring people in custody or searching and confiscating proceeds of crime.

The U.S. State Department said earlier the three agreements the United States ended covered “the surrender of fugitive offenders, the transfer of sentenced persons, and reciprocal tax exemptions on income derived from the international operation of ships”.

The U.S. decision followed President Donald Trump’s order last month to end Hong Kong’s special status under U.S. law to punish China for what he called “oppressive actions” against the former British colony.

Trump signed an executive order that he said would end the preferential economic treatment for the city following the imposition of the draconian new security law.

The national security law punishes anything China considers secession, subversion, terrorism or collusion with foreign forces with up to life in prison and has drawn criticism from Western countries that worry the law will end the freedoms promised when the former British colony returned to Chinese rule.

Beijing and the Hong Kong government have defended the law as necessary to restore order and preserve prosperity after months of at times violent anti-government protests last year.

Hong Kong has become another contentious issue between China and the United States, whose relations were already strained by differences over trade, China’s claims in the South China Sea and its treatment of its Muslim Uighur minority.

(Reporting by Yew Lun Tian; Editing by Toby Chopra, Robert Birsel)

U.S. officially notifies Hong Kong it has ended three agreements: State Dept

WASHINGTON (Reuters) – The U.S. State Department said it notified Hong Kong on Wednesday that Washington has suspended or terminated three bilateral agreements with the semi-autonomous city following China’s imposition of a sweeping national security law.

The ending of the agreements follows U.S. President Donald Trump’s order last month to end Hong Kong’s special status under U.S. law to punish China for what he called “oppressive actions” against the former British colony.

The State Department said in a statement the agreements ended covered “the surrender of fugitive offenders, the transfer of sentenced persons, and reciprocal tax exemptions on income derived from the international operation of ships.”

“These steps underscore our deep concern regarding Beijing’s decision to impose the National Security Law, which has crushed the freedoms of the people of Hong Kong,” State Department Spokeswoman Morgan Ortagus said.

Trump signed an executive order last month that he said would end the preferential economic treatment for the city following the imposition of the draconian new national security law.

The legislation punishes anything China considers secession, subversion, terrorism or collusion with foreign forces with up to life in prison and has drawn criticism from Western countries that worry the law will end the freedoms promised when the former British colony returned to Chinese rule in 1997.

Analysts have said U.S.-China ties have deteriorated to their worst level in decades.

Washington this month imposed sanctions on Hong Kong leader Carrie Lam and other current and former Hong Kong and mainland officials whom Washington accuses of curtailing political freedom in the financial hub.

The U.S. government has also required goods made in the former British colony for export to the United States to be labelled as made in China after Sept. 25.

(Reporting by Daphne Psaledakis; Editing by Susan Heavey and Marguerita Choy)

Exclusive: Taiwan in talks to make first purchase of sophisticated U.S. drones – sources

FILE PHOTO: Flags of Taiwan and U.S. are placed for a meeting between U.S. House Foreign Affairs Committee Chairman Ed Royce speaks and with Su Chia-chyuan, President of the Legislative Yuan in Taipei, Taiwan March 27, 2018. REUTERS/Tyrone Siu

By Mike Stone

WASHINGTON (Reuters) – The United States is negotiating the sale of at least four of its large sophisticated aerial drones to Taiwan for the first time, according to six U.S. sources familiar with the negotiations, in a deal that is likely to ratchet up tensions with China.

The SeaGuardian surveillance drones have a range of 6,000 nautical miles (11,100 km), far greater than the 160-mile range of Taiwan’s current fleet of drones.

While the sale of the unmanned aerial vehicles has been tacitly authorized by the State Department, two of the people said, it is not known whether the U.S. officials have approved exporting the drones with weapons attached, one of them said.

The deal has to be approved by members of Congress who may receive formal notification as soon as next month, two of the people said. Congress could choose to block a final agreement.

It would be the first drone sale after President Donald Trump’s administration moved ahead with its plan to sell more drones to more countries by reinterpreting an international arms control agreement called the Missile Technology Control Regime (MTCR).

While Taiwan’s military is well-trained and well-equipped with mostly U.S.-made hardware, China has a huge numerical superiority and is adding advanced equipment of its own.

Taiwan submitted its request to buy armed drones early this year, one of the people familiar with the talks said. The United States last week sent Taiwan the pricing and availability data for the deal, a key step that denotes official approval to advance the sale. It is, however, non-binding and could be reversed.

A deal for the four drones, ground stations, spares, training and support could be worth around $600 million using previous sales as a guide. There could also be options for additional units in the future, one of the people said.

The island is bolstering its defenses in the face of what it sees as increasingly threatening moves by Beijing, such as regular Chinese air force and naval exercises near Taiwan

Relations between Beijing and Washington – already at their lowest point in decades over accusations of spying, a trade war, the coronavirus and Hong Kong – could fray more if the deal gets the final go-ahead from U.S. officials. The Pentagon has said arms sales to Taiwan will continue, and the Trump administration has kept a steady pace of Navy warships passing through the Taiwan Strait.

China claims Taiwan as its own territory, and Beijing has never renounced the use of force to bring the self-ruled island under its control. Beijing has denounced the Trump administration’s increased support for Taiwan.

China’s sophisticated air defenses could likely shoot down a handful of drones, according to Bonnie Glaser, the director of the China Power Project at CSIS, a Washington think tank. But she still expects “China to scream about even the smallest arms sale that the U.S. makes to Taiwan because any sale challenges the ‘One China’ principle.”

“They get particularly agitated if they think it’s an offensive capability,” she said, adding that she expected the Trump administration to be less cautious than its predecessors.

The Taipei Economic and Cultural Representative Office in the United States did not respond to a request for comment.

“As a matter of policy we do not comment on or confirm proposed defense sales or transfers until they have been formally notified to Congress,” a State Department spokesman said.

ONLY FOR FEW U.S. ALLIES

The U.S. has been eager to sell Taiwan tanks and fighter jets, but the deal to sell drones would be notable since only a few close allies – including Britain, Italy, Australia, Japan and South Korea – have been allowed to purchase the largest U.S.-made drones.

Currently, the Taiwanese government has a fleet of 26 Albatross drones made by Taiwan’s National Chung-Shan Institute of Science and Technology, a quasi-defense ministry research agency, that can fly 160 nautical miles (300 km), or 80 before returning to base, according to records kept by the Bard Center for the Study of the Drone.

General Atomics Aeronautical Systems Inc’s SeaGuardian has an airframe that can handle carrying weapons – but only if contractually allowed by the U.S. government.

The United States has sold France unarmed MQ-9 Reapers which are similar to SeaGuardian’s, and later gave permission to arm them.

Last year, the United States approved a potential sale to Taiwan of 108 General Dynamics Corp M1A2 Abrams tanks worth around $2 billion as well as anti-tank and anti-aircraft munitions. A separate sale of 66 Lockheed Martin-made fighter jets also made it through the State Department’s process.

In recent weeks, China said it will sanction Lockheed Martin Co for involvement in the latest U.S. arms sale to Taiwan.

(Reporting by Mike Stone in Washington, D.C. ; Editing by Mary Milliken and Edward Tobin)

U.S. diplomats head to China despite row over Houston consulate

By Humeyra Pamuk

WASHINGTON (Reuters) – A flight bound for Shanghai carrying U.S. diplomats has left the United States as Washington presses ahead with its plan to restaff its mission in China a day after a U.S. order to close the Chinese consulate in Houston sharply escalated tensions.

A person familiar with the matter told Reuters the flight, carrying an unspecified number of U.S. diplomats, left Washington on Wednesday evening. The State Department did not immediately respond to a request for comment.

An internal State Department email dated July 17, seen by Reuters, said the department was working to arrange a charter flight to Shanghai from Washington’s Dulles International Airport departing on Thursday.

The source said this flight had departed earlier than initially planned.

The email said a tentative July 29 flight to Tianjin and Beijing was in the initial planning stages and a target date for another flight, to Guangzhou, was still to be determined.

The memo said priority was being given to reuniting separated families and returning section/agency heads.

The U.S. is working to fully restaff its mission in China, one of its largest in the world, which was evacuated in February because of COVID-19, the illness caused by the new coronavirus.

Thursday’s flight went ahead despite a dramatic move by Washington to close China’s consulate in Houston amid sweeping espionage allegations.

China warned on Thursday it would be forced to respond to the U.S. move, which had “severely harmed” relations.

It gave no details, but the South China Morning Post reported that China may close the U.S. consulate in Chengdu, while a source told Reuters on Wednesday it was considering shutting the consulate in Wuhan, where the United States withdrew staff at the start of the coronavirus outbreak.

Two flights have so far taken place to return some of the more than 1,200 U.S. diplomats with their families to China since negotiations for the returns hit an impasse in early July over conditions China wanted to impose on the Americans.

The impasse caused the State Department to postpone flights tentatively scheduled for the first 10 days of July.

U.S.-China relations have deteriorated this year to their lowest level in decades over a wide range of issues, including China’s handling of the coronavirus pandemic, bilateral trade and a new security law for Hong Kong.

Washington and Beijing have been negotiating for weeks over the terms of how to bring U.S. diplomats back amid disagreement over COVID-19 testing and quarantine procedures as well as frequency of flights and how many each can bring back.

(Reporting by Humeyra Paumuk; Additional reporting by David Brunnstrom; Editing by Mary Milliken and Diane Craft)

Some State Department employees have tested positive for coronavirus – Pompeo

WASHINGTON (Reuters) – A handful of U.S. State Department employees across the globe have tested positive for the new coronavirus, Secretary of State Mike Pompeo said on Tuesday.

“We’ve had a couple of employees, you can count them on one hand, who have positive tests,” Pompeo said in a news briefing. “We’ve handled those exactly the way we’re asking every American to respond to those wherever they find themselves in the world.”

He gave no details on the precise number of State Department employees who have tested positive for the highly contagious virus, where they were based or whether they had returned to the United States. He noted that the State Department has already limited U.S. diplomats’ travel.

“We’ll continue to take care of our team, we will act in a way that’s consistent with the CDC’s (U.S. Centers for Disease Control and Prevention) guidelines and the professional medical staff who work here with the State Department,” he said.

Pompeo added that he felt “great,” though he did not say whether he had been tested for the coronavirus.

(Reporting by Humeyra Pamuk, Writing by Daphne Psaledakis and Jonathan Landay, Editing by Franklin Paul and Paul Simao)