Trump calls for firm response to North Korea, targets Seoul on trade

U.S. President Donald Trump (L) welcomes South Korean President Moon Jae-in at the White House in Washington, U.S., June 30, 2017. REUTERS/Jim Bourg

By David Brunnstrom and Lisa Lambert

WASHINGTON (Reuters) – U.S. President Donald Trump called for a determined response to North Korea after talks with South Korea’s President Moon Jae-in on Friday where he stressed the importance of their alliance but took aim at Seoul over trade and sharing the cost of defense.

Trump said the United States was renegotiating what he characterized as a “rough” trade deal with South Korea agreed to five years ago by his predecessor, Barack Obama, and reiterated that an era of “strategic patience” over North Korea’s nuclear and ballistic missile programs had ended.

“Together we are facing the threat of the reckless and brutal regime in North Korea,” Trump said as he stood alongside Moon in the White House Rose Garden. “The nuclear and ballistic missile programs of that regime require a determined response.”

Despite the tough rhetoric, it remains unclear how Trump will find a way forward on North Korea, which is working to develop a nuclear-tipped missile capable of hitting the United States.

U.S. Defense Secretary Jim Mattis has warned the consequences of any military solution would be “tragic on an unbelievable scale.” Trump had pinned his hopes on persuading China, North Korea’s neighbor and main trading partner, to do more to rein in Pyongyang, although he has lately grown frustrated that Beijing has not taken stronger action.

Trump called on regional powers to implement sanctions and demand North Korea “choose a better path and do it quickly.”

Moon, who warned of a “stern response” to any provocations, urged Pyongyang to return promptly to talks.

“Our two leaders will employ both sanctions and dialogue in a phased and comprehensive approach,” Moon said of South Korea and the United States.

Trump and Moon have said they are open to renewed dialogue with North Korea but only under circumstances that would lead to Pyongyang giving up its weapons programs.

Moon told an event at the Center for Strategic and International Studies think tank that moves by North Korea that could create conditions for dialogue could include a freeze on its nuclear and missile tests, or the release of three Americans it is holding in the country.

To be successful, talks would have to involve North Korean leader Kim Jong Un and have as their ultimate aim the complete dismantling of North Korea’s nuclear program, he added.

Trump sought to woo China since a summit with Chinese President Xi Jinping in April but the honeymoon period appears to be over. On Thursday, the United States targeted a Chinese bank and sanctioned Chinese individuals and a firm for dealing with North Korea and approved a $1.42 billion arms deal with Taiwan – decisions that angered Beijing.

STEEL AND AUTOS

South Korea is a long-standing American ally but Trump has spoken harshly about U.S. trade imbalances and threatened to tear up the bilateral trade pact.

“We will do more to remove barriers to reciprocal trade and market access,” Trump said, adding that the two leaders had talked about the thorny trade areas of steel and autos.

Trump said he was encouraged by Moon’s assurances that he would seek a level playing field for American workers and businesses, particularly automakers.

A joint statement said the two sides had agreed to work together to reduce over supply of basic materials such as steel and non-tariff barriers. It also said Trump had accepted an invitation from Moon to visit South Korea this year.

Bonnie Glaser, senior adviser for Asia at the Center for Strategic and International Studies think tank, said it was unwise for Trump to air the trade issue so publicly.

“Public complaints by Trump about unfair trade and inadequate defense spending provide opportunities for China and North Korea to drive a wedge between the allies,” she said.

Trump also emphasized the need to ensure equitable sharing of costs for defense, returning to a theme he raised during his campaign and brought up with other allies, including NATO countries and Japan.

A senior U.S. official said in a briefing before the president’s meeting with Moon that South Korea was in many respects a “model ally,” given its spending of 2.7 percent of GDP on defense and Moon’s plan to grow capabilities.

“We shouldn’t view South Korea as somehow laggard on that front,” the official said on condition of anonymity.

The U.S. goods trade deficit with South Korea has more than doubled since the U.S.-Korea free trade pact known as KORUS took effect in 2012. The agreement was forecast to boost U.S. exports by $10 billion a year, but in 2016 they were $3 billion lower than in 2011.

At the start of Friday’s talks, U.S. Commerce Secretary Wilbur Ross said the largest component of the deficit was automotive trade and many non-tariff barriers to U.S. auto exports to South Korea remained.

“I think the way to address it is to deal product by product with what we can do to change the export side and what we can do to reduce the bad imports side,” he said.

Ross said later on Friday that some progress had been made in the talks.

The current pact was agreed to despite protests by supporters of Moon, who was then in opposition. But analysts have suggested that given the need to preserve a unified front in the face of a hostile North Korea, there could be compromise on both sides to resolve issues.

(Additional reporting by Fatima Bhojani, Roberta Rampton, Tim Ahmann, David Chance, David Lawder and Eric Beech; Editing by Bill Trott and Andrew Hay)

Suspected North Korea drone spied on U.S. anti-missile system: South Korea officials

FILE PHOTO: A Terminal High Altitude Area Defense (THAAD) interceptor is launched during a successful intercept test, in this undated handout photo provided by the U.S. Department of Defense, Missile Defense Agency. U.S. Department of Defense, Missile Defense Agency/Handout via Reuters/File Photo

SEOUL (Reuters) – A suspected North Korean drone had taken photographs of an advanced U.S. anti-missile battery in South Korea before it crashed on its way home, the South Korean military said on Tuesday.

The drone, mounted with a camera, was found last week in a forest near the border with North Korea. It was similar in size and shape to a North Korean drone found in 2014 on an island near the border.

“We confirmed that it took about 10 photos,” of the anti-missile system, known as the Terminal High Altitude Area Defense (THAAD), a South Korean Defense Ministry official said by telephone.

The drone was suspected to be from North Korea, the official added.

South Korea is hosting the anti-missile defense system in the Seongju region, about 250 km (155 miles) from the border with North Korea, to counter a growing missile threat from the North.

“We will come up with measures to deal with North Korean drones,” said an official at South Korea’s Office of the Joint Chiefs of Staff, who also declined to be identified as he is not authorized to speak to the media.

North Korean drones are known to have flown over South Korea several times.

North Korea has about 300 unmanned aerial vehicles of different types including one designed for reconnaissance as well as combat drones, the United Nations said in a report last year.

The North Korean drones recovered in South Korea were probably procured through front companies in China, with parts manufactured in China, the Czech Republic, Japan and the United States, it added.

The neighbors are technically at war after the 1950-53 Korean War ended in a truce and not a peace treaty.

South Korea and the United States agreed last year to deploy the THAAD unit in response to North Korea’s relentless development of its ballistic missiles, and nuclear weapons, in defiance of U.N. sanctions.

China strongly objects to the THAAD system saying its powerful radar can probe deep into its territory, undermining its security and upsetting a regional balance. China also says the system does nothing to deter North Korea.

South Korea and the United States say the system is aimed solely at defending against North Korean missiles.

(Reporting by Yuna Park; Editing by Kim Coghill, Robert Birsel)

South Korea does not aim to change U.S. missile defense deal: security adviser

FILE PHOTO: A Terminal High Altitude Area Defense (THAAD) interceptor (R) is seen in Seongju, South Korea, April 26, 2017. Lee Jong-hyeon/News1 via REUTERS

By Christine Kim and David Brunnstrom

SEOUL/WASHINGTON (Reuters) – South Korea does not aim to change its agreement on the deployment of a U.S. anti-missile system to protect against North Korea, in spite of a decision to delay its full installation, Seoul’s top national security adviser said on Friday.

Chung Eui-yong called the decision to delay installation of remaining launchers of the Terminal High Altitude Area Defense (THAAD) system, pending a review of its environmental impact, a domestic measure to ensure a democratic process.

“The decision to introduce THAAD was made to protect South Korea and the U.S. forces in South Korea from a growing threat from the North. We won’t take this decision lightly,” Chung told a news briefing.

He said South Korea would discuss ways to strengthen the joint defense against North Korea’s weapons programs during a summit between new South Korean President Moon Jae-in and U.S. President Donald Trump in late June.

Two launchers of a full six-launcher THAAD battery, as well as the system’s far-reaching radar, which China worries could upset the regional security balance, have already been installed on an old golf course in South Korea’s southeastern city of Seongju.

Moon’s office said on Wednesday that deployment of the four remaining launchers would be halted for the environmental assessment, which may take well over a year, according to a senior administration official.

Moon vowed in his election campaign to review the decision to deploy THAAD, which was made by his conservative predecessor, Park Geun-hye, greatly angering South Korea’s neighbor China, an important trading partner, and some domestic critics.

U.S. officials have sought to play down the impact on relations with South Korea, a long-time treaty ally where more than 28,000 troops are based, although a Pentagon spokesman made clear it would like to see the full battery installed.

“We believe considering the threat from North Korea, a full THAAD battery is the best addition to the defense of (South Korea),” Commander Gary Ross said.

A senior official of the U.S. administration told Reuters that U.S. diplomats had sought clarification from South Korean officials as to whether the environmental review was a prelude for a rejection of the whole THAAD system, and were assured that South Korea planned to uphold its end of the agreement.

The issue was discussed by Trump, U.S. Defense Secretary Jim Mattis and Secretary of State Rex Tillerson at a White House meeting on Thursday.

A State Department spokeswoman, Katina Adams, said the decision to deploy THAAD was an essential response to North Korea’s fast-developing nuclear and missiles programs, which has seen dozens of launches and two bomb tests since the start of last year.

“Each launch … further demonstrates the rationale and necessity of the U.S.-(South Korea) Alliance agreement to deploy THAAD,” she said.

The State Department said U.S. Under Secretary of State Thomas Shannon would visit Seoul from Tuesday to Thursday next week after a stop in Tokyo on Monday to discuss responses to North Korea.

North Korean leader Kim Jong Un has spoken of his aim to develop an intercontinental ballistic missile capable of hitting the mainland United States with a nuclear weapon, presenting Trump with perhaps his most pressing security problem and underscoring the need for close cooperation with Seoul.

Nevertheless, Trump, who campaigned on a populist “America First” platform, risked increased tensions with the U.S. ally when he told Reuters in an interview just before Moon’s election he would either renegotiate or terminate a “horrible” free trade deal with South Korea and said Seoul should pay for THAAD, which he priced at $1 billion.

(Reporting by Christine Kim and Soyoung Kim in Seoul and David Brunnstrom and Steve Holland in Washington; Editing by Robert Birsel and James Dalgleish)

North Korea fires suspected land-to-ship missiles as South Korea delays THAAD

A South Korean soldier walks past a TV broadcast of a news report on North Korea firing what appeared to be several land-to-ship missiles off its east coast, at a railway station in Seoul, South Korea, June 8, 2017. REUTERS/Kim Hong-Ji

By Ju-min Park and Soyoung Kim

SEOUL (Reuters) – North Korea fired what appeared to be several land-to-ship missiles off its east coast on Thursday, South Korea’s military said, a day after the South postponed full deployment of a controversial U.S. anti-missile system designed to deter a North Korean attack.

The launches, the latest in a fast-paced series of missile tests defying world pressure to rein in its weapons program, come less than a week after the United Nations Security Council passed fresh sanctions on the reclusive state.

South Korea on Wednesday said it will hold off on installing remaining components of the U.S. Terminal High Altitude Area Defense (THAAD) system that has angered North Korea’s main ally, China, amid early signs of easing tensions between the two countries.

The missiles were launched Thursday morning from the North Korean coastal city of Wonsan and flew about 200 km (124 miles), South Korea’s Office of Joint Chiefs of Staff said in a statement.

Under third-generation leader Kim Jong Un, North Korea has been conducting missile tests at an unprecedented pace in an effort to develop an intercontinental ballistic missile (ICBM) capable of hitting the mainland United States.

Compared to the different types of ballistic missiles Pyongyang has recently tested, the missiles launched on Thursday are considered to be more defensive in nature, designed to defend against threats such as enemy warships.

North Korea unveiled a number of new weapons at a massive military parade on April 15 to mark the birth anniversary of the state’s founding leader and has since tested some of them.

“What appeared to be a new type of land-to-ship missile equipped with four launching canisters was unveiled at the parade,” said Kim Dong-yub, a military expert at Kyungnam University’s Far Eastern Studies in Seoul. “I think this might be what was used today.”

THAAD DEFENSE DELAYED

Thursday’s launch is the fourth missile test by North Korea since South Korean President Moon Jae-in took office on May 10 pledging to engage in dialogue with Pyongyang. Moon says sanctions and pressure alone have failed to resolve the growing threat from the North’s advancing nuclear and missile program.

Moon had also promised to review the deployment of the THAAD system in South Korea, a decision that was made by the government of his conservative predecessor, Park Geun-hye. On Wednesday, Moon’s office said installation of four additional launchers would be halted until an assessment of the system’s impact on the environment was completed.

Two launchers of the full six-launcher THAAD battery, as well as the system’s far-reaching radar that China worries could upset the regional security balance, have already been installed at a deployment site in the southeastern city of Seongju. The elements will stay in place, South Korea said.

The introduction of the THAAD system has sparked protests in South Korea and a backlash in China against South Korean business interests.

The Global Times, published by China’s official People’s Daily, said in an editorial that no matter the outcome of the environmental study, South Korea’s announcement could reduce friction.

“Obviously, the pressure China puts on South Korea has taken effect. Seoul’s will has been shaken,” the paper said. “However, attitude is not everything. Without solving the problem of THAAD, the pain it has brought to bilateral relations will not disappear, and South Korea must swallow some of the bitter results.”

China should work with Russia on counter-measures to THAAD, the Global Times added.

Asked about the latest missile test, Chinese Foreign Ministry spokeswoman Hua Chunying called for all parties to exercise restraint.

“The UN Security Council resolution has clear rules on (North Korea’s) use of ballistic missiles technologies,” she said. “All sides should work together to de-escalate tensions and take active steps to stabilize the region.”

U.S. President Donald Trump has been pressing China aggressively to rein in North Korea, warning that all options, including a pre-emptive military strike, are on the table if Pyongyang persists with its nuclear and missile development.

Seoul, Tokyo and Washington were analyzing the launches for further information, officials said.

Japan’s navy and air force conducted military drills with two U.S. aircraft carriers in the Sea of Japan last week, following similar joint U.S.-South Korea exercises.

“North Korea likely wanted to show off its ability to precisely target a large warship, in relation to the joint military drills involving U.S. aircraft carriers,” Roh Jae-cheon, South Korea’s Joint Chiefs of Staff spokesman, told a media briefing.

“By testing different types of missiles, North Korea also appears to be aiming to secure the upper hand in relations with South Korea and the United States.”

The isolated country, which has conducted dozens of missile tests and tested two nuclear bombs since the beginning of 2016 in defiance of U.N. Security Council resolutions, says the program is necessary to counter U.S. aggression.

(Additional reporting by Christine Kim in SEOUL, and Christian Shepherd and Ben Blanchard in BEIJING; Editing by Lincoln Feast)

South Korea defense ministry ‘intentionally dropped’ THAAD units in report: Blue House

FILE PHOTO: A Terminal High Altitude Area Defense (THAAD) interceptor is launched during a successful intercept test, in this undated handout photo provided by the U.S. Department of Defense, Missile Defense Agency. U.S. Department of Defense, Missile Defense Agency/Handout via Reuters/File Photo

By Jack Kim

SEOUL (Reuters) – South Korea’s Defence Ministry “intentionally dropped” mentioning that four more launchers had been deployed for the controversial U.S. THAAD anti-missile system in a report to President Moon Jae-in’s top aides, his office said on Wednesday.

Moon has ordered a probe at the defense ministry, saying it was “very shocking” the launchers had been brought in without being reported to the new government or to the public, presidential Blue House spokesman Yoon Young-chan said on Tuesday.

The Defence Ministry intentionally omitted details about the Terminal High Altitude Area Defence (THAAD) system battery (THAAD) in a report last week, when the new government was preparing for Moon’s summit with U.S. President Donald Trump next month, Yoon told a briefing.

“The Blue House has confirmed that the Defence Ministry has intentionally dropped the introduction of four more launchers in its report,” Yoon said.

Moon took office on May 10 without a transition period because a snap presidential election was held just two months after his predecessor, Park Geun-hye, was ousted in a corruption scandal. Moon inherited his defense minister along with the rest of his cabinet from the previous administration.

The THAAD battery was initially deployed in March in the southeastern region of Seongju with just two of its maximum load of six launchers to counter a growing North Korean missile threat.

An earlier version of the defense ministry report specified the total number of launchers being prepared for deployment and the name of the U.S. military base where the four were being kept, but the reference was removed in the final version delivered to the Blue House, Yoon said.

The Pentagon said it had been “very transparent” with South Korea’s government about THAAD deployment.

US MISSILE DEFENSE TEST

During his successful presidential campaign, Moon called for a parliamentary review of the THAAD system, the deployment of which has infuriated China, North Korea’s lone major ally. Moon had also called for more engagement and dialogue with Pyongyang.

Asked about South Korea’s Defence Ministry dropping mention of the four additional launchers, Chinese Foreign Ministry spokeswoman Hua Chunying expressed “serious concern”, and reiterated a call for THAAD to be withdrawn.

North Korea has conducted three ballistic missile tests since Moon took office, maintaining its accelerated pace of missile and nuclear-related activities since the beginning of last year in defiance of U.N. sanctions.

In Washington, the U.S. military said on Tuesday it had staged a successful, first-ever missile defense test involving a simulated attack by an intercontinental ballistic missile.

“The intercept of a complex, threat-representative ICBM target is an incredible accomplishment … a critical milestone for this program,” Vice Admiral Jim Syring, the director of the Missile Defence Agency, said in a statement.

Moon’s order of a probe over the THAAD deployment came amid signs of easing tensions between South Korea and China, a major trading partner.

China had been incensed over the THAAD deployment, saying it would do little to deter the missile threat from North Korea while allowing the U.S. military to use its radar to look deep into its territory and at its own missile systems.

Japanese Prime Minister Shinzo Abe told China’s top diplomat on Wednesday that he would like to work with China to try to rein in North Korea’s nuclear and missile programs.

Beijing is also troubled by the possibility the THAAD system would open the door to a wider deployment the U.S. missile defense systems, possibly in Japan and elsewhere, military analysts say.

South Korean companies have faced product boycotts and bans on Chinese tourists visiting South Korea, although China has denied discriminating against them.

(Reporting by Jack Kim; Additional reporting by Phil Stewart in Washington, Ben Blanchard in Beijing and Kiyoshi Takenaka in Tokyo; Editing by Bill Tarrant)

North Korea missile detected by THAAD, program progressing faster than expected: South

The long-range strategic ballistic rocket Hwasong-12 (Mars-12). KCNA via REUTERS

By Christine Kim and Tom Miles

SEOUL/GENEVA (Reuters) – North Korea’s missile program is progressing faster than expected, South Korea’s defense minister said on Tuesday, after the UN Security Council demanded the North halt all nuclear and ballistic missile tests and condemned Sunday’s test-launch.

South Korean Defence Minister Han Min-koo told parliament the test-launch had been detected by the controversial U.S. THAAD anti-missile system, whose deployment in the South has infuriated China.

The reclusive North, which has defied all calls to rein in its weapons programs, even from its lone major ally, China, said the missile test was a legitimate defense against U.S. hostility.

The North has been working on a missile, mounted with a nuclear warhead, capable of striking the U.S. mainland.

U.S. President Donald Trump’s administration has called for an immediate halt to Pyongyang’s provocations and has warned that the “era of strategic patience” with North Korea is over. U.S. Disarmament Ambassador Robert Wood said on Tuesday China’s leverage was key and it could do more.

Han said Sunday’s test-launch was “successful in flight”.

“It is considered an IRBM (intermediate range ballistic missile) of enhanced caliber compared to Musudan missiles that have continually failed,” he said, referring to a class of missile designed to travel up to 3,000 to 4,000 km (1,860 to 2,485 miles).

Asked if North Korea’s missile program was developing faster than the South had expected, he said: “Yes.”

Han said the Terminal High Altitude Area Defense (THAAD) anti-missile unit deployed by the U.S. military in the South detected the North Korean missile, marking the first time the controversial system has been put to use since its deployment last month.

China has strongly opposed THAAD, whose radar it fears could be used to spy into its territory, despite assurances from Washington that THAAD is purely defensive. South Korean companies, from automakers to retailers and cosmetics firms, have been hit in China by a nationalist backlash over Seoul’s decision to deploy the system.

The North’s KCNA news agency said Sunday’s launch tested its capability to carry a “large-size heavy nuclear warhead”. Its ambassador to China said in Beijing on Monday it would continue such test launches “any time, any place”.

The test-launch was a legitimate act of self-defense and U.S. criticism was a “wanton violation of the sovereignty and dignity of the DPRK”, a North Korean diplomat told the U.N. Conference on Disarmament in Geneva on Tuesday.

DPRK are the initials of North Korea’s official name, the Democratic People’s Republic of Korea.

“The DPRK will bolster its self-defense capabilities as long as the United States continues its hostile policies towards the DPRK and imposes nuclear threats and makes blackmail,” diplomat Ju Yong Choi said.

The missile flew 787 km (489 miles) on a trajectory reaching an altitude of 2,111.5 km (1,312 miles), KCNA said.

Pyongyang has regularly threatened to destroy the United States, which it accuses of pushing the Korean peninsula to the brink of nuclear war by conducting recent military drills with South Korea and Japan.

Trump and new South Korean President Moon Jae-in will meet in Washington next month, with North Korea expected to be high on the agenda, the South’s presidential Blue House said.

Moon met Matt Pottinger, overseeing Asian affairs at the U.S. National Security Council, on Tuesday and said he hoped to continue to have “sufficient, close discussions” between Seoul and Washington, the Blue House press secretary told a briefing.

“FURTHER SANCTIONS POSSIBLE”

In a unanimous statement, the 15-member UN Security Council on Monday said it was of vital importance that North Korea show “sincere commitment to denuclearization through concrete action and stressed the importance of working to reduce tensions”.

“To that end, the Security Council demanded the Democratic People’s Republic of Korea conduct no further nuclear and ballistic missile tests,” the council said, adding that it was ready to impose further sanctions on the country.

The North’s foreign ministry rejected the statement, saying it infringed on its right to self-defense, particularly as the missile was test-launched at a sharp angle to ensure safety of neighboring countries.

The UN statement also condemned an April 28 ballistic missile launch by Pyongyang.

Following that launch, Washington began talks with China on possible new U.N. sanctions. Traditionally, the United States and China have negotiated new measures before involving remaining council members.

The United States sees China as key, U.S. Disarmament Ambassador Wood told reporters on a conference call.

“I’m not going to talk about various policy options that we may or may not consider, but I will say this: we are certainly engaged right now in looking at a number of measures – political, economic, security – to deal with these provocative acts by the DPRK, and dangerous acts in many cases,” he said.

“So we are going to be raising the level of engagement with China on this issue. China really is the key in dealing with the North Korea issue. Ninety percent of the DPRK’s trade is with China, so clearly there is a lot more leverage that China has, and we would like China to use.”

The Security Council first imposed sanctions on North Korea in 2006 and has stiffened them in response to its five nuclear tests and two long-range rocket launches. Pyongyang is threatening a sixth nuclear test.

Trump warned in an interview with Reuters this month that a “major, major conflict” with North Korea was possible. In a show of force, the United States sent an aircraft carrier strike group, led by the Carl Vinson, to waters off the Korean peninsula to conduct drills with South Korea and Japan.

Admiral Harry Harris, the top U.S. commander in the Asia-Pacific, said continued missile launches by North Korea showed the importance of the alliance between Japan and the United States and called the North’s actions unacceptable.

Harris met Japanese Prime Minister Shinzo Abe, who also said China could apply more pressure to rein in North Korea.

“Now is the time to put pressure on North Korea,” Abe said. “Japan and the United States must coordinate and put pressure.”

The U.S. Seventh Fleet carrier, the Ronald Reagan, left Yokosuka in Japan on Tuesday on its regular spring patrol and will be out for around three to four months, a Seventh Fleet spokesman said.

Besides worries about North Korea’s missile and nuclear weapons programs, cyber security researchers have found technical evidence they said could link the North with the global WannaCry “ransomware” cyber attack that has infected more than 300,000 computers in 150 countries since Friday.

(For a graphic on North Korea missile launch, click http://tmsnrt.rs/2pNI8t6)

(For an interactive on nuclear North Korea, click http://tmsnrt.rs/2n0gd92)

(Additional reporting by Jack Kim and Ju-min Park in SEOUL, Michelle Nichols at the UNITED NATIONS and Kiyoshi Takenaka and Minami Funakoshi in TOKYO; Writing by Nick Macfie)

Japan favors Aegis Ashore over THAAD to boost missile defense: sources

The deckhouse of the Aegis Ashore Missile Defense System (AAMDS) at Deveselu air base, Romania, May 12, 2016. Inquam Photos/Adel Al-Haddad/via REUTERS

TOKYO (Reuters) – Japan is leaning towards choosing the Aegis Ashore missile-defense system over another advanced system called Terminal High Altitude Area Defense (THAAD), government and ruling party sources said.

Faced with North Korea’s rapid missile and nuclear development, and its threats, Japan has been looking into introducing a new missile-defense layer – either the THAAD or the Aegis Ashore, a land-based version of the Aegis system developed for war ships.

Lockheed Martin Corp makes both systems.

The government now favors the Aegis Ashore system as it comes with a wider coverage area, which would mean fewer units needed to protect Japan, and it is also cheaper, three government and two ruling party sources said.

The sources, who spoke this week, declined to be identified because they are not authorized to speak to media on the topic.

An Aegis Ashore unit costs about 70 billion-80 billion yen ($618 million-$706 million), while a THAAD unit costs more than 100 billion yen, the sources said.

Also, the introduction of Aegis Ashore would help reduce the burden of round-the-clock vigilance shouldered by Japanese warships equipped with the Aegis system, they said.

The government will make a final decision on the new system in coming months, after sending, possibly this month, an inspection team to Hawaii, where U.S. forces operate Aegis Ashore test facilities, they said.

Japan’s ruling Liberal Democratic Party in March urged Prime Minister Shinzo Abe’s government to consider acquiring the capability to hit enemy bases and to beef up missile defense.

($1 = 113.3300 yen)

(Reporting by Nobuhiro Kubo; Writing by Kiyoshi Takenaka; Editing by Robert Birsel)

South Korea urges ‘parallel’ talks and sanctions to rein in North Korea

South Korean President Moon Jae-in speaks with Chinese President Xi Jinping by telephone at the Presidential Blue House in Seoul, South Korea in this handout picture provided by the Presidential Blue House and released by Yonhap on May 11, 2017. Blue House/Yonhap via REUTERS

By Ju-min Park and Christine Kim

SEOUL (Reuters) – South Korea’s new president launched international efforts to defuse tension over North Korea’s weapons development on Thursday, urging both dialogue and sanctions while also aiming to ease Chinese anger about a U.S. anti-missile system.

Moon Jae-in, a liberal former human rights lawyer, was sworn in on Wednesday and said in his first speech as president he would immediately address security tensions that have raised fears of war on the Korean peninsula.

Moon first spoke to Chinese President Xi Jinping and later to Japanese Prime Minister Shinzo Abe, with how to respond to North Korea’s rapidly developing nuclear and ballistic missile programs, in violation of U.N. Security Council resolutions, dominating talks.

“The resolution of the North Korean nuclear issue must be comprehensive and sequential, with pressure and sanctions used in parallel with negotiations,” Moon’s spokesman, Yoon Young-chan, quoted Moon as telling Xi.

“Sanctions against North Korea are also a means to bring the North to the negotiating table aimed at eliminating its nuclear weapons,” Yoon told a briefing, adding that Xi indicated his agreement.

Moon has taken a more conciliatory line with North Korea than his conservative predecessors and advocates engagement. He has said he would be prepared to go to Pyongyang “if the conditions are right”.

Regional experts have believed for months that North Korea is preparing for its sixth nuclear test and was working to develop a nuclear-tipped missile capable of reaching the United States, presenting U.S. President Donald Trump with perhaps his most pressing security issue.

Trump told Reuters in an interview last month major conflict with North Korea was possible though he would prefer a diplomatic outcome.

North Korea says it needs its weapons to defend itself against the United States which it says has pushed the region to the brink of nuclear war.

“Threats from North Korea’s nuclear and missile development have entered a new stage,” Japan’s Abe told Moon in their telephone call, according to Japanese Deputy Chief Cabinet Secretary Koichi Hagiuda.

“How to respond to North Korea … is an urgent issue. I would like to closely cooperate with the president to achieve the denuclearization of North Korea,” Abe told Moon.

But Abe also said “dialogue for dialogue’s sake would be meaningless” and he called on North Korea to demonstrate “sincere and concrete action”, Hagiuda said, adding that Moon shared Abe’s views.

Japan has been concerned that Moon will take a tough line on feuds stemming from the bitter legacy of its 1910-1945 colonization of the Korean peninsula and could fray ties at a time when cooperation on North Korea is vital.

Moon told Abe to “look straight at history” and not make the past “a barrier”, though he raised South Korea’s dissatisfaction with a 2015 agreement meant to put to rest a dispute over Japanese compensation for South Korean women forced to work in Japanese brothels before and during World War Two, Korea’s presidential office said.

(For a graphic on South Korea’s presidential election, click tmsnrt.rs/2p0AyLf)

‘IMPROVE UNDERSTANDING’

While South Korea, China and Japan all share worry about North Korea, ties between South Korea and China have been strained by South Korea’s decision to install a U.S. anti-missile system in defense against the North.

China says the Terminal High Altitude Area Defense (THAAD) undermines its security as its powerful radar can probe deep into its territory.

China says the system does little to curb the threat posed by North Korea’s nuclear and missile programs, which it has been pressing ahead with in defiance of U.S. pressure and UN sanctions.

The deployment of THAAD was agreed last year by South Korea’s previous administration after North Korea conducted a long-range rocket launch that put an object into space.

Moon came to power with a promise to review the system and he told Xi that North Korea must cease making provocations before tension over the deployment could be resolved, officials said.

In the first direct contact between the South Korean and Chinese leaders, Xi explained China’s position, Yoon, the South Korean presidential spokesman said, without elaborating.

“President Moon said he understands China’s interest in the THAAD deployment and its concerns, and said he hopes the two countries can swiftly get on with communication to further improve each other’s understanding,” Yoon told a briefing.

South Korea and the United States began deploying the THAAD system in March and it has since become operational.

Xi told Moon South Korea and China should respect each other’s concerns, set aside differences, seek common ground and handle disputes appropriately, China’s foreign ministry said in a statement.

As well as clouding efforts to rein in North Korea’s nuclear ambitions, the THAAD deployment has also led to recriminations from Beijing against South Korean companies.

Moon explained the difficulties faced by South Korean companies that were doing business in China and asked for Xi’s “special attention” to ease those concerns, Yoon said.

China has also denied it is doing anything to retaliate against South Korean businesses.

(Additional reporting by Ben Blanchard in BEIJING and Kiyoshio Takenaka in TOKYO; Writing by Jack Kim; Editing by Paul Tait, Robert Birsel)

Chinese military conducts live-fire drills, weapons tests

BEIJING (Reuters) – China’s military has conducted live-fire drills and weapons tests in the northeastern Bohai Sea close to the Korean peninsula, the country’s defense ministry said on Tuesday.

In a brief statement late on Tuesday, the ministry said the tests of new missiles and weapons were carried out by the People’s Liberation Army’s Rocket Force “in recent days” and were designed to raise operational capability so as to effectively deal with national security threats. No further details were provided.

Chinese President Xi Jinping is overseeing a sweeping modernization of the country’s armed forces, with an emphasis on technological innovation and naval capability as it seeks to project greater power in the disputed South China Sea.

While no other country has claims in the busy Bohai Sea, the drills come amid heightened tension on the Korean peninsula, including Chinese anger at the deployment of the U.S. anti-missile defense system THAAD in South Korea last month.

At a regular news briefing last month, China’s defense ministry responded to questions about the THAAD deployment by foreshadowing the weapons tests, saying they were necessary to safeguard its national security.

(Reporting by Philip Wen; Editing by SImon Cameron-Moore)

China welcomes U.S. saying it’s open to talks on North Korea

A military drill marking the 85th anniversary of the establishment of the Korean People's Army (KPA) is seen in this handout photo by North Korea's Korean Central News Agency (KCNA) made available on April 26, 2017. KCNA/Handout via REUTERS

By Michael Martina and Ju-min Park

BEIJING/SEOUL (Reuters) – China on Thursday welcomed an apparently softer tone by the United States on the North Korean nuclear and missile crisis but stressed its opposition to a U.S. missile defense system being deployed in South Korea.

China has long promoted dialogue to resolve the “Korean nuclear issue” as North Korea has repeatedly threatened to destroy the United States which in turn has warned that “all options are on the table” in ending North Korean provocations.

The Trump administration said on Wednesday it aimed to push North Korea into dismantling its nuclear and missile programs, which are in violation of U.N. Security Council resolutions, through tougher international sanctions and diplomatic pressure.

“The United States seeks stability and the peaceful denuclearization of the Korean peninsula. We remain open to negotiations toward that goal. However, we remain prepared to defend ourselves and our allies,” it said in a statement.

Asked about the U.S. comments, Chinese Foreign Ministry spokesman Geng Shuang said China had noted that many U.S. officials had recently made such remarks.

“We have noted these expressions, and have noted the message conveyed in these expressions hoping to resolve the Korean nuclear issue peacefully through dialogue and consultation,” he said.

“We believe this message is positive and should be affirmed.”

South Korea and the United States agreed on Thursday on “swift punitive measures” against North Korea in the event of further provocation. The South also said the deployment of a U.S. anti-missile defense system was moving ahead effectively a day after angry protests against the battery and fierce opposition from China.

South Korea on Wednesday moved parts of the Terminal High Altitude Area Defense (THAAD) system to its deployment site on a golf course about 250 km (155 miles) south of the capital, Seoul, signaling a faster installation of the system.

Several hundred South Korean villagers protested near the site, hurling water bottles at vehicles moving the parts in.

CHINA AGAIN DENOUNCES THAAD

The top U.S. Commander in the Pacific, Admiral Harry Harris, said on Wednesday the THAAD system would be operational “in coming days” bolstering the ability to defend the U.S. ally and the 28,500 U.S. troops stationed there.

A photograph taken of the site showed a THAAD interceptor on the back of a mobile launcher erected and pointed skywards on green lawn as a military transport helicopter hovered nearby.

China says the system’s advanced radar can penetrate deep into its territory and undermine its security. It is adamant in its opposition.

“The deployment of the THAAD anti-missile system in South Korea damages the regional strategic balance and stability. The Chinese side is resolutely opposed to this,” Defence Ministry spokesman Yang Yujun told reporters.

“China’s military will continue to carry out live-fire military exercises and test new military equipment in order to firmly safeguard national security and regional peace and stability.”

U.S. Secretary of State Rex Tillerson, Defense Secretary Jim Mattis and Director of National Intelligence Dan Coats described North Korea on Wednesday as “an urgent national security threat and top foreign policy priority”.

The U.S. signal of a willingness to exhaust non-military avenues came as the USS Carl Vinson aircraft carrier group approached Korean waters, where it will join the USS Michigan nuclear submarine.

North Korea, which conducted its biggest ever artillery exercise to mark the 85th anniversary of its military’s creation on Tuesday, says it needs to develop weapons to defend itself from U.S. aggression.

A North Korean official speaking on CNN said the country would not be influenced by outside events.

“As long as America continues its hostile acts of aggression, we will never stop nuclear and missile tests,” said Sok Chol Won, director of the North’s Institute of Human Rights at the Academy of Social Sciences.

Moon Jae-in, the front-runner in South Korea’s May 9 presidential election, has called for a delay in THAAD deployment, saying a decision should be made after gathering public opinion and more talks with Washington.

(Additional reporting by Phil Stewart in WASHINGTON and Ben Blanchard in BEIJING; Writing by Jack Kim and Nick Macfie; Editing by Robert Birsel)