Kenya’s Finance Minister Cuts Spending, Money Transfer Taxes to Rise

Kenya’s Finance Minister Henry Rotich has cut the government’s spending budget by 55.1 billion shillings ($546.90 million), or 1.8 percent, for the fiscal year from July this year, a Treasury document showed on Wednesday.

The government is facing a tough balancing act after a public outcry over a new 16 percent value added tax on all petroleum products forced President Uhuru Kenyatta to suggest to parliament to keep the VAT and cut if by half.

In the document detailing the new spending estimates, Rotich said the budget had to be adjusted because of the amendments to tax measures brought by lawmakers when they first debated it and passed it last month.

The proposed halving of the VAT rate on fuel has left the government with a funding shortfall, hence the cuts in spending.

Parliament will vote on a raft of proposals, including the 1.8 percent cut on spending, in a special sitting on Thursday.

Kenya’s economy is expected to grow by 6 percent this year, recovering from a drought, slowdown in lending and election-related worries that cut growth in 2017, but investors and the IMF have expressed concerns over growing public debt.

While the next election is still four years away, the government’s economic policies are chafing with citizens angered by increasing costs of living. Fuel dealers protested when the VAT on fuel kicked in this month and citizen groups have gone to court to try to block new or higher taxes.

Separate documents sent by Kenyatta to parliament ahead of Thursday’s sitting underscored the debate in government over how to boost revenues without hurting the poor.

His government has to reduce a gaping fiscal deficit while boosting spending on priority areas such as healthcare and affordable housing.

In order to balance the government’s books after the reduction of the fuel tax, he is trying to reinstate several tax measures struck out by parliament, including a 2 percentage hike on excise duty for mobile phone money transfers to 12 percent.

Kenya’s biggest mobile phone operator Safaricom said in June it was opposed to any tax rise on mobile phone-based transfers, arguing that it would mainly hurt the poor, most of whom do not have bank accounts and rely on services such as its M-Pesa platform.

The president also asked parliament to double the excise duty on the fees charged by banks, money transfer services, and other financial institutions to 20 percent.

Parliament in August threw out an earlier version of proposed fees on bank transfers, a so-called “Robin Hood” tax of 0.05 percent on transfers of more than 500,000 shillings.

The president has not yet signed the budget due to the dispute over the planned tax hikes. Kenyatta’s Jubilee party and its allies have a comfortable majority in parliament.

The Kenya National Chamber of Commerce and Industry this month said the government should widen the tax base. It also urged the state to cut expenditure, reduce wastage of public funds and deal with corruption, which some studies have found lose the government about a third of its annual budget.

 

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Envoy: US Seeking to Negotiate Treaty With Iran

The United States is seeking to negotiate a treaty with Iran that will cover both its ballistic missile and nuclear programs, the U.S. special envoy for Iran said on Wednesday ahead of U.N. meetings in New York next week.

“The new deal that we hope to be able to sign with Iran, and it will not be a personal agreement between two governments like the last one, we seek a treaty,” envoy Brian Hook told an audience at the Hudson Institute think tank.

But Hook said Iranian leaders have not been interested in talking despite statements by President Donald Trump and Secretary of State Mike Pompeo this year that the administration was willing to meet.

Trump announced in May that he was pulling the United States out of an Obama-era nuclear deal signed between Iran and six world powers.

The 2015 deal was an executive agreement that was not ratified by the U.S. Senate. A treaty would require approval by the Senate.

Opponents of the nuclear agreement have argued that Obama’s failure to seek ratification of the deal allowed Trump to unilaterally scrap the deal in May.

“They did not have the votes in the U.S. Senate so they found the votes in the U.N. Security Council. That is insufficient in our system of government if you want to have something enduring and sustainable,” Hook said, without elaborating on how the administration would negotiate.

Trump will chair a session on Iran during the U.N. General Assembly meetings in New York next week. In July, Trump said he was willing to meet Iran’s leaders “anytime they want” prompting speculation that a meeting could occur at the U.N. meetings next week.

“The ayatollah, the president and foreign minister have all indicated they are not interested in talking,” Hook said, referring to Iran’s Supreme Leader Ali Khamenei, President Hassan Rouhani and Foreign Minister Mohammad Javad Zarif.

“We respect that though that does not change our plans. We have a sanctions regime that is underway, stronger measures are yet to come,” he added.

Hook said the administration was expanding its diplomatic efforts to ensure that purchases of Iranian oil were “close to zero” by Nov. 4 when Washington reimposed oil sanctions against Tehran.

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Envoy: US Seeking to Negotiate Treaty With Iran

The United States is seeking to negotiate a treaty with Iran that will cover both its ballistic missile and nuclear programs, the U.S. special envoy for Iran said on Wednesday ahead of U.N. meetings in New York next week.

“The new deal that we hope to be able to sign with Iran, and it will not be a personal agreement between two governments like the last one, we seek a treaty,” envoy Brian Hook told an audience at the Hudson Institute think tank.

But Hook said Iranian leaders have not been interested in talking despite statements by President Donald Trump and Secretary of State Mike Pompeo this year that the administration was willing to meet.

Trump announced in May that he was pulling the United States out of an Obama-era nuclear deal signed between Iran and six world powers.

The 2015 deal was an executive agreement that was not ratified by the U.S. Senate. A treaty would require approval by the Senate.

Opponents of the nuclear agreement have argued that Obama’s failure to seek ratification of the deal allowed Trump to unilaterally scrap the deal in May.

“They did not have the votes in the U.S. Senate so they found the votes in the U.N. Security Council. That is insufficient in our system of government if you want to have something enduring and sustainable,” Hook said, without elaborating on how the administration would negotiate.

Trump will chair a session on Iran during the U.N. General Assembly meetings in New York next week. In July, Trump said he was willing to meet Iran’s leaders “anytime they want” prompting speculation that a meeting could occur at the U.N. meetings next week.

“The ayatollah, the president and foreign minister have all indicated they are not interested in talking,” Hook said, referring to Iran’s Supreme Leader Ali Khamenei, President Hassan Rouhani and Foreign Minister Mohammad Javad Zarif.

“We respect that though that does not change our plans. We have a sanctions regime that is underway, stronger measures are yet to come,” he added.

Hook said the administration was expanding its diplomatic efforts to ensure that purchases of Iranian oil were “close to zero” by Nov. 4 when Washington reimposed oil sanctions against Tehran.

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Thousands Back Home in North Syria After Russia-Turkey Deal

Thousands of people who were recently displaced by violence in northwest Syria have returned home following a Russia-Turkey deal that averted a government offensive on the last major rebel stronghold, Syrian opposition activists said Wednesday.

The United Nations said that in the first 12 days of September, over 38,000 people were internally displaced by an intense government aerial bombing campaign in Idlib and neighboring provinces. Most of them headed toward the border with Turkey, packing already overcrowded camps there, the U.N. Office for the Coordination of Humanitarian Affairs said.

It said over 4,500 are estimated to have spontaneously returned to their homes shortly afterward when government bombardment stopped.

The Britain-based Syrian Observatory for Human Rights said that some 7,000 people have returned to their towns and villages since Monday when Russia and Turkey announced the deal.

Syria-based opposition activist Yazan Mohammed said the flow of people back to their homes started days before Monday’s deal was announced between Russia and Turkey as residents were expecting it.

The demilitarized zone will be established by Oct. 15 and be 15-20 kilometers (9-12 miles) deep, with troops from Russia and NATO-member Turkey conducting coordinated patrols. Turkey’s Foreign Minister Mevlut Cavusoglu said the agreement would allow civilians and Turkey-backed anti-government rebels to remain in the demilitarized zone and “retain light arms.”

Idlib is home to some of the government’s staunchest opponents, including civilians and insurgents.

Insurgent groups include al-Qaida-linked Hayat Tahrir al-Sham — or Levant Liberation Committee — the Turkistan Islamic Party and Horas al-Din, or Guardians of Religion.

Speaking against the deal, some in Idlib said they feared it would pave the way for a massive attack.

The Observatory said some hard-line groups including Guardians of Religion and the Soldiers of God, rejected the deal and said they will not withdraw from the demilitarized zone. The groups warned that they will fight any side that will try to disarm or remove them from the planned demilitarized zone, the Observatory said.

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Thousands Back Home in North Syria After Russia-Turkey Deal

Thousands of people who were recently displaced by violence in northwest Syria have returned home following a Russia-Turkey deal that averted a government offensive on the last major rebel stronghold, Syrian opposition activists said Wednesday.

The United Nations said that in the first 12 days of September, over 38,000 people were internally displaced by an intense government aerial bombing campaign in Idlib and neighboring provinces. Most of them headed toward the border with Turkey, packing already overcrowded camps there, the U.N. Office for the Coordination of Humanitarian Affairs said.

It said over 4,500 are estimated to have spontaneously returned to their homes shortly afterward when government bombardment stopped.

The Britain-based Syrian Observatory for Human Rights said that some 7,000 people have returned to their towns and villages since Monday when Russia and Turkey announced the deal.

Syria-based opposition activist Yazan Mohammed said the flow of people back to their homes started days before Monday’s deal was announced between Russia and Turkey as residents were expecting it.

The demilitarized zone will be established by Oct. 15 and be 15-20 kilometers (9-12 miles) deep, with troops from Russia and NATO-member Turkey conducting coordinated patrols. Turkey’s Foreign Minister Mevlut Cavusoglu said the agreement would allow civilians and Turkey-backed anti-government rebels to remain in the demilitarized zone and “retain light arms.”

Idlib is home to some of the government’s staunchest opponents, including civilians and insurgents.

Insurgent groups include al-Qaida-linked Hayat Tahrir al-Sham — or Levant Liberation Committee — the Turkistan Islamic Party and Horas al-Din, or Guardians of Religion.

Speaking against the deal, some in Idlib said they feared it would pave the way for a massive attack.

The Observatory said some hard-line groups including Guardians of Religion and the Soldiers of God, rejected the deal and said they will not withdraw from the demilitarized zone. The groups warned that they will fight any side that will try to disarm or remove them from the planned demilitarized zone, the Observatory said.

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Iraq Court Condemns to Death ‘Deputy of IS Leader’

An Iraqi court on Wednesday sentenced to death on terror charges a prominent jihadist described as a deputy of Islamic State group leader Abu Bakr al-Baghdadi, after he was captured in Turkey.

“The Karkh criminal court in Baghdad sentenced to death by hanging one of the most prominent leaders of IS, who served as a deputy of Baghdadi,” judicial spokesman Abdel Sattar Bayraqdar said.

The Iraqi authorities announced in February that Ismail Alwan Salman al-Ithawi had been extradited from Turkey after fleeing first Iraq and then Syria as the group’s self-proclaimed “caliphate” crumbled.

The jihadist was tracked and detained through cooperation between Turkish, Iraqi and US intelligence agencies, a senior Iraqi official told AFP at the time.

He said the arrest came after an elite Iraqi unit hunting IS members “infiltrated the highest levels” of the jihadist group, which has claimed a string of deadly attacks in the West in recent years.

A native of the Iraqi city of Ramadi, Ithawi was accused of holding several positions including IS “minister” in charge of religious edicts.

Originally from Iraq, Baghdadi has been dubbed the “most wanted man on the planet” and the United States is offering a $25 million reward for his capture.

He has been pronounced dead on several occasions, but an Iraqi intelligence official said in May that he remained alive in Syrian territory by the Iraqi border.

In a purported new audio recording released last month, the IS chief called on Muslims to wage “jihad.”

He made his only known public appearance in Iraq’s second city of Mosul in July 2014.

Iraq has condemned several hundred people, including around 100 foreign women, to death for IS links, and dozens of convicted jihadists have already been executed.

Many more have been handed life terms, including nine Tajik women who were sentenced by an Iraqi criminal court on Wednesday for belonging to IS, a judicial official said.

The country has repeatedly faced criticism from international human rights groups over the high number of death sentences handed down by its anti-terrorist courts.

Iraq declared “victory” over IS in December after a three-year war against the jihadists who once controlled nearly one third of the country as well as swathes of neighboring Syria.

The Iraqi military has kept up operations targeting mostly remote desert areas where jihadists have continued to carry out attacks.

Over the border in Syria, U.S.-backed fighters last week launched a fierce assault against a dwindling pocket of territory held by IS in eastern Deir Ezzor province.

 

 

 

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Iraq Court Condemns to Death ‘Deputy of IS Leader’

An Iraqi court on Wednesday sentenced to death on terror charges a prominent jihadist described as a deputy of Islamic State group leader Abu Bakr al-Baghdadi, after he was captured in Turkey.

“The Karkh criminal court in Baghdad sentenced to death by hanging one of the most prominent leaders of IS, who served as a deputy of Baghdadi,” judicial spokesman Abdel Sattar Bayraqdar said.

The Iraqi authorities announced in February that Ismail Alwan Salman al-Ithawi had been extradited from Turkey after fleeing first Iraq and then Syria as the group’s self-proclaimed “caliphate” crumbled.

The jihadist was tracked and detained through cooperation between Turkish, Iraqi and US intelligence agencies, a senior Iraqi official told AFP at the time.

He said the arrest came after an elite Iraqi unit hunting IS members “infiltrated the highest levels” of the jihadist group, which has claimed a string of deadly attacks in the West in recent years.

A native of the Iraqi city of Ramadi, Ithawi was accused of holding several positions including IS “minister” in charge of religious edicts.

Originally from Iraq, Baghdadi has been dubbed the “most wanted man on the planet” and the United States is offering a $25 million reward for his capture.

He has been pronounced dead on several occasions, but an Iraqi intelligence official said in May that he remained alive in Syrian territory by the Iraqi border.

In a purported new audio recording released last month, the IS chief called on Muslims to wage “jihad.”

He made his only known public appearance in Iraq’s second city of Mosul in July 2014.

Iraq has condemned several hundred people, including around 100 foreign women, to death for IS links, and dozens of convicted jihadists have already been executed.

Many more have been handed life terms, including nine Tajik women who were sentenced by an Iraqi criminal court on Wednesday for belonging to IS, a judicial official said.

The country has repeatedly faced criticism from international human rights groups over the high number of death sentences handed down by its anti-terrorist courts.

Iraq declared “victory” over IS in December after a three-year war against the jihadists who once controlled nearly one third of the country as well as swathes of neighboring Syria.

The Iraqi military has kept up operations targeting mostly remote desert areas where jihadists have continued to carry out attacks.

Over the border in Syria, U.S.-backed fighters last week launched a fierce assault against a dwindling pocket of territory held by IS in eastern Deir Ezzor province.

 

 

 

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Egyptian-French Movie Star Gamil Ratib Dies

Award-winning Egyptian-French actor Gamil Ratib died Wednesday in Cairo. He was 92.

Ratib is widely considered one of the greatest Egyptian movie actors of all time because of his screen presence and personal style.

He acted in French and Egyptian movies, including David Lean’s 1962 epic “Lawrence of Arabia” with Anthony Quinn and Omar Sharif, and Carol Reed’s 1956 movie “Trapeze” with Gina Lollobrigida, Burt Lancaster, and Tony Curtis.

Ratib once said on an Egyptian television show that he was a very good friend of Quinn, that the late American movie star helped him several times to find a job in the movie industry. He later became an icon of cinema and theater.

Ratib was one of Egypt’s top-grossing movie stars, performing in many films in a career spanning 65 years.

He was honored several times in film festivals and picked up many awards, including the French Legion d’Honneur, the highest French order of merit for military and civil merits.

 

Ratib was born in Cairo, Egypt, in November 1926. He studied law and arts in France and performed in several French plays. In the early 1950s, Ratib joined “La Comédie-Française,” one of the oldest theaters in the world.

He made his movie debut in ‘I Am The East’ in 1945. Later, he played leading roles in such films as Deuxième Bureau Contre Terroristes (1961), Réseau Secret (1967), L’Alphomega (1973), L’Étoile du Nord (1982), and Un été à La Goulette (1996). He lived between Paris and Cairo.

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Egyptian-French Movie Star Gamil Ratib Dies

Award-winning Egyptian-French actor Gamil Ratib died Wednesday in Cairo. He was 92.

Ratib is widely considered one of the greatest Egyptian movie actors of all time because of his screen presence and personal style.

He acted in French and Egyptian movies, including David Lean’s 1962 epic “Lawrence of Arabia” with Anthony Quinn and Omar Sharif, and Carol Reed’s 1956 movie “Trapeze” with Gina Lollobrigida, Burt Lancaster, and Tony Curtis.

Ratib once said on an Egyptian television show that he was a very good friend of Quinn, that the late American movie star helped him several times to find a job in the movie industry. He later became an icon of cinema and theater.

Ratib was one of Egypt’s top-grossing movie stars, performing in many films in a career spanning 65 years.

He was honored several times in film festivals and picked up many awards, including the French Legion d’Honneur, the highest French order of merit for military and civil merits.

 

Ratib was born in Cairo, Egypt, in November 1926. He studied law and arts in France and performed in several French plays. In the early 1950s, Ratib joined “La Comédie-Française,” one of the oldest theaters in the world.

He made his movie debut in ‘I Am The East’ in 1945. Later, he played leading roles in such films as Deuxième Bureau Contre Terroristes (1961), Réseau Secret (1967), L’Alphomega (1973), L’Étoile du Nord (1982), and Un été à La Goulette (1996). He lived between Paris and Cairo.

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Amnesty: Crackdown Turns Egypt into ‘Open-Air Prison’ for Critics

Amnesty International on Wednesday accused Egypt’s government of mounting a crackdown on freedom of expression that had turned the country into an “open-air prison” for critics.

The international human rights group said authorities had arrested at least 111 people since December for criticizing President Abdel Fattah al-Sisi and Egypt’s human rights situation in a campaign that surpassed any under ousted President Hosni Mubarak.

“It is currently more dangerous to criticize the government in Egypt than at any time in the country’s recent history,” Amnesty’s North Africa Campaigns Director Najia Bounaim said in a statement.

“Egyptians living under President al-Sisi are treated as criminals simply for peacefully expressing their opinions.”

A government spokesman had no immediate comment on the Amnesty report when contacted by Reuters.

The security services had ruthlessly clamped down on independent political, social and cultural spaces, Amnesty said.

“These measures, more extreme than anything seen in former President Hosni Mubarak’s repressive 30-year rule, have turned Egypt into an open-air prison for critics,” it said.

Sisi’s supporters maintain the president, who was re-elected in March, has been trying to combat an Islamist insurgency and restore order to the country following years of chaos after Arab Spring demonstrations forced Mubarak to step down in 2011.

They say that Sisi has improved security since 2013, when as army chief he ousted Islamist President Mohamed Mursi following mass protests against his rule.

Among those arrested were at least 35 people held on charges of “unauthorized protest” and “joining a terrorist group” after a peaceful protest against metro fare increases, and comics and satirists who posted commentary online, Amnesty said.

They also include prominent figures and possible presidential contenders, such as former military chief of staff Sami Anan and former presidential contender Abdel Moneim Abol Fotouh, as well as former state auditor Hesham Genena.

Amnesty said at least 28 journalists were among those detained since December 2017.

“President al-Sisi’s administration is punishing peaceful opposition and political activists with spurious counterterrorism legislation and other vague laws that define any dissent as a criminal act,” Bounaim said.

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Amnesty: Crackdown Turns Egypt into ‘Open-Air Prison’ for Critics

Amnesty International on Wednesday accused Egypt’s government of mounting a crackdown on freedom of expression that had turned the country into an “open-air prison” for critics.

The international human rights group said authorities had arrested at least 111 people since December for criticizing President Abdel Fattah al-Sisi and Egypt’s human rights situation in a campaign that surpassed any under ousted President Hosni Mubarak.

“It is currently more dangerous to criticize the government in Egypt than at any time in the country’s recent history,” Amnesty’s North Africa Campaigns Director Najia Bounaim said in a statement.

“Egyptians living under President al-Sisi are treated as criminals simply for peacefully expressing their opinions.”

A government spokesman had no immediate comment on the Amnesty report when contacted by Reuters.

The security services had ruthlessly clamped down on independent political, social and cultural spaces, Amnesty said.

“These measures, more extreme than anything seen in former President Hosni Mubarak’s repressive 30-year rule, have turned Egypt into an open-air prison for critics,” it said.

Sisi’s supporters maintain the president, who was re-elected in March, has been trying to combat an Islamist insurgency and restore order to the country following years of chaos after Arab Spring demonstrations forced Mubarak to step down in 2011.

They say that Sisi has improved security since 2013, when as army chief he ousted Islamist President Mohamed Mursi following mass protests against his rule.

Among those arrested were at least 35 people held on charges of “unauthorized protest” and “joining a terrorist group” after a peaceful protest against metro fare increases, and comics and satirists who posted commentary online, Amnesty said.

They also include prominent figures and possible presidential contenders, such as former military chief of staff Sami Anan and former presidential contender Abdel Moneim Abol Fotouh, as well as former state auditor Hesham Genena.

Amnesty said at least 28 journalists were among those detained since December 2017.

“President al-Sisi’s administration is punishing peaceful opposition and political activists with spurious counterterrorism legislation and other vague laws that define any dissent as a criminal act,” Bounaim said.

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Macedonian Court Rejects Bids to Scrap Name Referendum

Macedonia’s constitutional court has rejected two bids to declare illegal and unconstitutional the upcoming referendum on renaming the country “North Macedonia.”

The vote on Sept. 30 has been hailed by western officials as a major chance for the small Balkan country to launch the process of joining NATO and the European Union.

Judges voted 7-2 on Wednesday to reject the two bids, filed by the World Macedonian Congress, a Skopje-based diaspora group, and the small, left-wing Levitsa party.

Renaming Macedonia is a key element of a deal with neighboring Greece to end a decades-old dispute. Greece says Macedonia’s current name implies claims on its own northern province of Macedonia, and on its ancient heritage.

If the deal goes ahead, Greece will lift objections to Macedonia joining NATO and the EU.

 

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Macedonian Court Rejects Bids to Scrap Name Referendum

Macedonia’s constitutional court has rejected two bids to declare illegal and unconstitutional the upcoming referendum on renaming the country “North Macedonia.”

The vote on Sept. 30 has been hailed by western officials as a major chance for the small Balkan country to launch the process of joining NATO and the European Union.

Judges voted 7-2 on Wednesday to reject the two bids, filed by the World Macedonian Congress, a Skopje-based diaspora group, and the small, left-wing Levitsa party.

Renaming Macedonia is a key element of a deal with neighboring Greece to end a decades-old dispute. Greece says Macedonia’s current name implies claims on its own northern province of Macedonia, and on its ancient heritage.

If the deal goes ahead, Greece will lift objections to Macedonia joining NATO and the EU.

 

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EU’s Tusk Says Will Call Special Brexit Summit Mid-November

European Council President Donald Tusk said on Wednesday he would call an extra Brexit summit of European Union leaders around mid-November to finalize a deal with Britain.

Tusk told a news conference before chairing a summit of all 28 EU leaders in the Austrian city of Salzburg later on Wednesday: “The Brexit negotiations are entering their decisive phase. Various scenarios are still possible today but I’d like to stress that some of Prime Minister May’s proposals from Chequers indicated positive evolution in the UK’s approach.”

Tusk said that went for the UK’s readiness to work closely with the EU on security and foreign policy after Brexit but stressed that Chequers proposals from premier Theresa May for the future Irish border and economic cooperation between the EU and Britain “will need to reworked and further negotiated”.

“Today there is perhaps more hope but there is surely less and less time,” Tusk added. “Every day that is left we must use for talks. I’d like to finalize them still this autumn,” he said. He would propose that the EU leaders hold another extra summit on Brexit around mid-November.

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EU’s Tusk Says Will Call Special Brexit Summit Mid-November

European Council President Donald Tusk said on Wednesday he would call an extra Brexit summit of European Union leaders around mid-November to finalize a deal with Britain.

Tusk told a news conference before chairing a summit of all 28 EU leaders in the Austrian city of Salzburg later on Wednesday: “The Brexit negotiations are entering their decisive phase. Various scenarios are still possible today but I’d like to stress that some of Prime Minister May’s proposals from Chequers indicated positive evolution in the UK’s approach.”

Tusk said that went for the UK’s readiness to work closely with the EU on security and foreign policy after Brexit but stressed that Chequers proposals from premier Theresa May for the future Irish border and economic cooperation between the EU and Britain “will need to reworked and further negotiated”.

“Today there is perhaps more hope but there is surely less and less time,” Tusk added. “Every day that is left we must use for talks. I’d like to finalize them still this autumn,” he said. He would propose that the EU leaders hold another extra summit on Brexit around mid-November.

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Community Comes Together in Wake of Hurricane Florence

The worst of Hurricane Florence’s sweep through the American south is only now becoming clear as coastal rivers and lakes reach historic levels. But even with the lack of electricity and flooded roads, neighbors are working together in small towns across the hard-hit coastline. VOA’s Katherine Gypson has more from North Carolina.

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Community Comes Together in Wake of Hurricane Florence

The worst of Hurricane Florence’s sweep through the American south is only now becoming clear as coastal rivers and lakes reach historic levels. But even with the lack of electricity and flooded roads, neighbors are working together in small towns across the hard-hit coastline. VOA’s Katherine Gypson has more from North Carolina.

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Dissonant Notes as EU Leaders Try to Harmonize in Mozart’s Hometown

Another European Union leaders’ summit and more big decisions to make — on Brexit, migration and the future direction of the bloc. Or more likely there will be a postponement in making them.

This time the gathering is in the hometown of composer Wolfgang Amadeus Mozart, Austria’s Salzburg, overlooked by the Alps.

Mozart’s music was classical in style but full of contrapuntal complexities and at the Salzburg summit the EU leaders will once again grapple with “melodic” lines pulling against each other but without the skill of the composer to gather them into overall harmony.

Competing views

Two opposing camps will lock horns in Salzburg: one headed by French President Emmanuel Macron, who will lobby for ambitious reforms to boost integration between member states and to centralize economic governance, and the other headed by Hungary’s Viktor Orbán and like-minded nativists from Austria, Italy and Poland, championing an end to immigration from outside Europe’s borders and insisting on greater flexibility for national governments on how they govern and with less meddling from Brussels.

Clouding the meeting will be embarrassing revelations that former European politicians, including a former Austrian chancellor and a former Italian prime minister, were recruited after they left office by President Donald Trump’s former campaign chief, Paul Manafort, to lobby covertly in the U.S. on behalf of Ukraine’s Kremlin-backed Viktor Yanukovych before a popular uprising ousted him.

Manafort, who pled guilty last week to two criminal charges filed against him by special counsel Robert Mueller, pulled together European politicians secretly in what has become known as the Hapsburg Group.

The lobbying effort has become part of Mueller’s legal case against President Trump’s former campaign chief, but it also raises questions in Europe about the integrity of what some analysts describe as the EU’s “establishment class” characterized by the readiness of some its members to cash in on their careers and to line their pockets by lobbying on behalf of interests they opposed when in office, adding to populist disdain of the EU.

Brexit deadlock

The British are holding out hopes that the Salzburg summit will break the Brexit deadlock and mark a way station in their efforts to secure a departure deal from the EU that Prime Minister Theresa May can sell to her divided Conservative Party and fractious House of Commons.

Discord has been the major theme of the long-running and often stalled Brexit negotiations, but in recent days EU negotiators have appeared to soften their tone in an apparent bid to give May a helping hand just days away from a likely feisty British Conservative conference, where the seeds of a challenge to her leadership could be sown by among others her former foreign minister Boris Johnson.

The EU’s chief negotiator Michel Barnier has suggested a deal might be “possible” within two months and has recently talked uncharacteristically in jaunty terms about how opposing negotiators are eighty percent in agreement.

And European Commission President Jean-Claude Juncker avoided inflammatory taunts about Brexit in his annual state-of-the-union address to the European Parliament this month.

Angela Merkel reportedly is keen to get a Brexit deal in order for the EU to focus on the even more potentially dangerous issues to the bloc’s cohesion, such as disputes over migration policy and rule-of-law challenges being mounted by populist nationalist leaders in Italy, Hungary and Poland.

Poland was banned Monday from an EU body representing member states’ judicial institutions for the perceived erosion of the independence of country’s judiciary following changes introduced by the right wing Law and Justice (PiS) government.

Brussels has threatened further sanctions over what it terms “systemic threats” to the rule of law in Poland after a purge of the Supreme Court through the forced retirements of one-third of the justices.

Polish President Andrzej Duda rebuffed EU threats telling supporters this week at a rally in the south of Poland, “they should leave us in peace and let us fix Poland.”

According to a readout from German and Austrian officials, Merkel and Austrian Chancellor Sebastian Kurz, who is hosting the summit, discussed Monday ahead of the EU leaders’ gathering the importance of avoiding Britain crashing out of the EU without a trade deal, which would hurt Britain more but would have an adverse impact on some EU states. “We have the same view that we must do all we can to avoid a hard Brexit,” the Austrian Chancellor said.

Brexit plan

The British hope the EU leaders will soften their instructions to Barnier and his team of negotiators, allowing him to make concessions on May’s so-called Chequers Plan. Her plan would see British firms being allowed frictionless access to the EU market in goods, but not in services and in return it would accept some rulings from the European Court of Justice and tie Britain to common standards and manufacturing regulations.

But there’s still considerable resistance from Brussels to May’s plan, which was agreed by her cabinet at the Prime Minister’s country residence known as Chequers. EU officials and member states see her proposal as amounting to cherry-picking, which could serve as an example to other member states to follow suit. They worry also that Britain could end up as a floating assembly plant for non-European manufacturers mainly from Asia, who could locate there enticed by low-tax deals and enjoy privileged access to the bloc.

Officially the Salzburg summit is an informal meeting of EU national leaders without the legal power to make binding decisions. By holding a talking-shop EU leaders hope that non-agreement on migration and the EU’s future shape — as well as on Brexit — will not be seen as a setback, EU officials concede.

“This allows them the opportunity to clear the air and talk more frankly without there being any expectations,” an official told VOA. Any decisions that are ‘informally taken could be rubber-stamped at a scheduled formal summit next month, he added.

Beefed-up border force

On migration, no one expects any breakthroughs. Every time EU leaders discuss migration policy they seem to worsen disputes.

The latest proposals, which include plans for “controlled centers” inside the EU to process migrants as well as the establishment of “regional disembarkation platforms” for migrants in North Africa have earned the scorn of both populists and liberals. Populists argue the centers should be closed camps arguing if they are open, migrants will just wander off. Liberals fear the closed camps will be squalid camps with migrants open to abuse. They point to the centers in operation in the Greek islands, where the poor conditions have been condemned by rights groups and the UN.

The EU Commission is also pushing for the establishment “genuine border police” and a beefing up the European Border and Coast Guard Agency (EBCG), which was created in 2016. But critics say the EU’s border is too large for it to be effectively secured.

Some member states dislike the idea of EU police taking control of the border, preferring national border guards do that without meddling from Brussels. In June this year, the commission proposed strengthening the EBCG with around 10,000 border guards.

Mozart’s most famous piece for string quartet, No. 19, was nicknamed “Dissonance,” because of its unusually slow introduction. It is not listed as one of the pieces to be played at any of the formal events during the Salzburg summit.

WATCH: Henry Ridgwell’s Preview of Summit

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Dissonant Notes as EU Leaders Try to Harmonize in Mozart’s Hometown

Another European Union leaders’ summit and more big decisions to make — on Brexit, migration and the future direction of the bloc. Or more likely there will be a postponement in making them.

This time the gathering is in the hometown of composer Wolfgang Amadeus Mozart, Austria’s Salzburg, overlooked by the Alps.

Mozart’s music was classical in style but full of contrapuntal complexities and at the Salzburg summit the EU leaders will once again grapple with “melodic” lines pulling against each other but without the skill of the composer to gather them into overall harmony.

Competing views

Two opposing camps will lock horns in Salzburg: one headed by French President Emmanuel Macron, who will lobby for ambitious reforms to boost integration between member states and to centralize economic governance, and the other headed by Hungary’s Viktor Orbán and like-minded nativists from Austria, Italy and Poland, championing an end to immigration from outside Europe’s borders and insisting on greater flexibility for national governments on how they govern and with less meddling from Brussels.

Clouding the meeting will be embarrassing revelations that former European politicians, including a former Austrian chancellor and a former Italian prime minister, were recruited after they left office by President Donald Trump’s former campaign chief, Paul Manafort, to lobby covertly in the U.S. on behalf of Ukraine’s Kremlin-backed Viktor Yanukovych before a popular uprising ousted him.

Manafort, who pled guilty last week to two criminal charges filed against him by special counsel Robert Mueller, pulled together European politicians secretly in what has become known as the Hapsburg Group.

The lobbying effort has become part of Mueller’s legal case against President Trump’s former campaign chief, but it also raises questions in Europe about the integrity of what some analysts describe as the EU’s “establishment class” characterized by the readiness of some its members to cash in on their careers and to line their pockets by lobbying on behalf of interests they opposed when in office, adding to populist disdain of the EU.

Brexit deadlock

The British are holding out hopes that the Salzburg summit will break the Brexit deadlock and mark a way station in their efforts to secure a departure deal from the EU that Prime Minister Theresa May can sell to her divided Conservative Party and fractious House of Commons.

Discord has been the major theme of the long-running and often stalled Brexit negotiations, but in recent days EU negotiators have appeared to soften their tone in an apparent bid to give May a helping hand just days away from a likely feisty British Conservative conference, where the seeds of a challenge to her leadership could be sown by among others her former foreign minister Boris Johnson.

The EU’s chief negotiator Michel Barnier has suggested a deal might be “possible” within two months and has recently talked uncharacteristically in jaunty terms about how opposing negotiators are eighty percent in agreement.

And European Commission President Jean-Claude Juncker avoided inflammatory taunts about Brexit in his annual state-of-the-union address to the European Parliament this month.

Angela Merkel reportedly is keen to get a Brexit deal in order for the EU to focus on the even more potentially dangerous issues to the bloc’s cohesion, such as disputes over migration policy and rule-of-law challenges being mounted by populist nationalist leaders in Italy, Hungary and Poland.

Poland was banned Monday from an EU body representing member states’ judicial institutions for the perceived erosion of the independence of country’s judiciary following changes introduced by the right wing Law and Justice (PiS) government.

Brussels has threatened further sanctions over what it terms “systemic threats” to the rule of law in Poland after a purge of the Supreme Court through the forced retirements of one-third of the justices.

Polish President Andrzej Duda rebuffed EU threats telling supporters this week at a rally in the south of Poland, “they should leave us in peace and let us fix Poland.”

According to a readout from German and Austrian officials, Merkel and Austrian Chancellor Sebastian Kurz, who is hosting the summit, discussed Monday ahead of the EU leaders’ gathering the importance of avoiding Britain crashing out of the EU without a trade deal, which would hurt Britain more but would have an adverse impact on some EU states. “We have the same view that we must do all we can to avoid a hard Brexit,” the Austrian Chancellor said.

Brexit plan

The British hope the EU leaders will soften their instructions to Barnier and his team of negotiators, allowing him to make concessions on May’s so-called Chequers Plan. Her plan would see British firms being allowed frictionless access to the EU market in goods, but not in services and in return it would accept some rulings from the European Court of Justice and tie Britain to common standards and manufacturing regulations.

But there’s still considerable resistance from Brussels to May’s plan, which was agreed by her cabinet at the Prime Minister’s country residence known as Chequers. EU officials and member states see her proposal as amounting to cherry-picking, which could serve as an example to other member states to follow suit. They worry also that Britain could end up as a floating assembly plant for non-European manufacturers mainly from Asia, who could locate there enticed by low-tax deals and enjoy privileged access to the bloc.

Officially the Salzburg summit is an informal meeting of EU national leaders without the legal power to make binding decisions. By holding a talking-shop EU leaders hope that non-agreement on migration and the EU’s future shape — as well as on Brexit — will not be seen as a setback, EU officials concede.

“This allows them the opportunity to clear the air and talk more frankly without there being any expectations,” an official told VOA. Any decisions that are ‘informally taken could be rubber-stamped at a scheduled formal summit next month, he added.

Beefed-up border force

On migration, no one expects any breakthroughs. Every time EU leaders discuss migration policy they seem to worsen disputes.

The latest proposals, which include plans for “controlled centers” inside the EU to process migrants as well as the establishment of “regional disembarkation platforms” for migrants in North Africa have earned the scorn of both populists and liberals. Populists argue the centers should be closed camps arguing if they are open, migrants will just wander off. Liberals fear the closed camps will be squalid camps with migrants open to abuse. They point to the centers in operation in the Greek islands, where the poor conditions have been condemned by rights groups and the UN.

The EU Commission is also pushing for the establishment “genuine border police” and a beefing up the European Border and Coast Guard Agency (EBCG), which was created in 2016. But critics say the EU’s border is too large for it to be effectively secured.

Some member states dislike the idea of EU police taking control of the border, preferring national border guards do that without meddling from Brussels. In June this year, the commission proposed strengthening the EBCG with around 10,000 border guards.

Mozart’s most famous piece for string quartet, No. 19, was nicknamed “Dissonance,” because of its unusually slow introduction. It is not listed as one of the pieces to be played at any of the formal events during the Salzburg summit.

WATCH: Henry Ridgwell’s Preview of Summit

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US Military Critical to Disaster Response in Carolinas

While the effects of Tropical storm Florence continue to linger in the Mid-Atlantic, the U.S. military has been mobilized to provide critical disaster relief support in the Carolinas. As VOA Pentagon correspondent Carla Babb reports, troops will be needed to continue that support long after the storm has subsided.

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US Military Critical to Disaster Response in Carolinas

While the effects of Tropical storm Florence continue to linger in the Mid-Atlantic, the U.S. military has been mobilized to provide critical disaster relief support in the Carolinas. As VOA Pentagon correspondent Carla Babb reports, troops will be needed to continue that support long after the storm has subsided.

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Proposed Inter-Korean Projects Could Violate UN, US Sanctions

As South Korean President Moon Jae-in meets with North Korean leader Kim Jong Un for their third summit, there is increasing concern that the inter-Korean economic projects Seoul envisions could violate sanctions and fracture the U.S.-South Korean alliance.

“The South Korean government appears to be headed in the direction of, or inclined to violate bans on joint ventures with North Korea, support for trade with North Korea, and infrastructure projects with North Korea, all of which require the permission of the U.N. committee,” said Joshua Stanton, a Washington-based attorney who helped draft the North Korea Sanctions Enforcement Act that former President Barack Obama signed in February 2016. 

For South Korea to carry out joint economic projects with North Korea, it would need to seek exemptions on sanctions from the U.N. Security Council Sanctions Committee on North Korea.

However, “the mandate of the committee does not include the authority to modify existing terms specified in various resolutions,” said William Newcomb, a former U.S. Treasury official who is on the U.N. Security Council’s Panel of Experts on North Korea.

Disruption of relationship

If South Korea does not ask for exemptions from sanctions, Seoul will face a risk of rupturing its relationship with the U.S., Stanton said.

“It would be an extinction-level event for the U.S.-South Korean alliance,” he said. “This is an absolutely incomprehensible betrayal by a nation that calls itself our ally that Americans have defended with [their] blood and with their money.” 

And if sanctions are willfully violated, Stanton said South Korea would be, “in its own way, a rogue nation.” The roster of rogue nations includes North Korea, Iran, Sudan, Syria and others.

South Korea has been planning several joint economic projects with North Korea since April’s inter-Korean summit. As the U.S. and North Korean relationship has thawed in the aftermath of the Singapore summit held in June between President Donald Trump and Kim, Seoul stepped up its plans, and a third inter-Korean summit began Tuesday in Pyongyang.

Days before Moon and Kim met, however, the U.S. announced new unilateral sanctions against North Korea. On Thursday, Washington targeted North Korea’s China-based company, Yanbian Silver Star Network Technology, its North Korean CEO, Jong Song Hwa, and its Russia-based subsidiary, Volasys Silver Star, which sells IT services and products.

There is also talk of the U.S. using military force to curb North Korea from evading sanctions at sea by monitoring ship-to-ship transfers by coordinating its efforts with countries like Australia, Japan, New Zealand, Canada, France, and the U.K. as well as South Korea.

The projects South Korea has been planning with the North include constructing an inter-Korean railway, which Moon has publicly backed, reopening the Kaesong Industrial Complex, and resuming the tours to Mount Kumgang, a landmark of great natural beauty with a special hold on the Korean soul. The tours and the complex appeal to South Korean companies.

Possible sanction violations

Each could violate sanctions that were imposed on North Korea in 2016 in response to its fourth nuclear weapons test and a long-range missile launch.

“In the absence of waivers and exemptions from the United Nations, which the U.S. as one of the Security Council members would have to support, Mount Kumgang and Kaesong would violate sanctions,” said Troy Stangarone, senior director of the Korea Economic Institute, who is a specialist on South Korea trade and North Korea.  

Under U.N. Resolution 2375 issued in September 2017, “forming joint ventures or cooperative entities, new and existing, with DPRK (North Korean) entities or individuals” is prohibited.

Additionally, any products manufactured using North Korean labor, potentially including items fabricated in the Kaesong Industrial Complex, will be banned from U.S. commerce. The Countering America’s Adversaries through Sanctions Act (CAATSA) adopted in August 2017 stipulates that manufacturers purge any parts made with North Korean labor from their supply chains.

While Moon is expected to attempt to broker a denuclearization deal between the U.S. and North Korea at the summit and continue Seoul’s rapprochement with Pyongyang aimed toward eventual unification, South Korea must make sure that it does not violate sanctions as it pursues inter-Korean projects, Stanton said.

“I don’t think they actually did read the sanctions,” he said. “When you look at Moon Jae-in, he will go out and make all of these promises” and when it’s pointed out that “that there’s a provision that you’re violating here … they will respond by saying it’s not sanctions violation because it’s good for everyone to have peace.”

One of the projects is the construction of a railroad to connect Seoul and Sinuju, the North’s northeastern border near the Chinese city of Dandong, via Pyongyang, eventually linking to Beijing and then venturing toward Europe via the Trans-Mongolian and Trans-Siberian railways.

Railway project concerns

William Brown, a former U.S. intelligence official who is currently a professor of North Korean economy at Georgetown University, said for the railroad project to move forward, South Korea would have to finance the construction, which could end up funding the North Korean government. 

“A big railway project wouldn’t work without severe pullback of U.N. sanctions and probably U.S. sanctions as well,” said Brown. 

According to Stanton, providing both public and private financial support to North Korea is banned under U.N. Resolution 2321 adopted in November 2016.

However, plans for the railroad and the other projects are being formulated. Although South Korean officials said they do not expect to make any agreements on joint economic projects, top business leaders from Samsung, LG Group and Hyundai accompanied Moon to the summit.

Since Moon’s first summit with Kim, Hyundai has been developing a task force to prepare for restarting the Mount Kumgang tours and Kaesong factories.

When Mount Kumgang initially opened in 1998, Hyundai Asan had the exclusive right to operate tours. The company agreed to pay Pyongyang a fixed monthly sum, which was subsequently changed to a percentage of monthly profit when the attraction proved less profitable than anticipated, said Bradley Babson, an advisory council member of the Korea Economic Institute of America. 

The tours ended in 2008 after a North Korean guard shot and killed a South Korean tourist.

Resuming the tours under an arrangement similar to the original deal would violate current sanctions. 

Initially, the Kaesong Industrial Complex was mostly financed by the South Korean government and major South Korean companies. The complex that opened in 2004 included factories where South Korean manufacturers could employ inexpensive North Korean workers.

Each North Korean worker was supposed to be paid $70 a month, but they received a fraction of that from their government, Brown said. 

Wages likely diverted

In February 2016 during the administration of Park Geun-hye, Seoul’s Unification Ministry said wages were paid in U.S. dollars to the North Korean government and not directly to the laborers, and most of the money is believed to have been diverted to the North’s Office 39, which is thought to finance Pyongyang’s nuclear and missile programs.

The Treasury Department sanctioned Office 39, describing it as “a secretive branch” of the North Korean government that provides critical support to the regime’s leadership “in part through engaging in illicit economic activities and managing slush funds and generating revenues for the leadership.”

Moon, who was elected in May 2017 after Park’s impeachment, revived the “sunshine policy” of building ties with North Korea through aid and exchanges.

In July 2017, Moon’s office said that there was no proof that money from Kaesong funded North Korea’s weapons program. But Stangarone said the money would have indirectly supported the North’s weapons program even if it did not directly finance it. 

“The primary issue,” he said, “is even if North Korea were … to only spend that money on other things rather than nuclear program or its military in general, that funding then frees up other funding they would have had to use and allow them to spend it on those weapons program.”  

 

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Proposed Inter-Korean Projects Could Violate UN, US Sanctions

As South Korean President Moon Jae-in meets with North Korean leader Kim Jong Un for their third summit, there is increasing concern that the inter-Korean economic projects Seoul envisions could violate sanctions and fracture the U.S.-South Korean alliance.

“The South Korean government appears to be headed in the direction of, or inclined to violate bans on joint ventures with North Korea, support for trade with North Korea, and infrastructure projects with North Korea, all of which require the permission of the U.N. committee,” said Joshua Stanton, a Washington-based attorney who helped draft the North Korea Sanctions Enforcement Act that former President Barack Obama signed in February 2016. 

For South Korea to carry out joint economic projects with North Korea, it would need to seek exemptions on sanctions from the U.N. Security Council Sanctions Committee on North Korea.

However, “the mandate of the committee does not include the authority to modify existing terms specified in various resolutions,” said William Newcomb, a former U.S. Treasury official who is on the U.N. Security Council’s Panel of Experts on North Korea.

Disruption of relationship

If South Korea does not ask for exemptions from sanctions, Seoul will face a risk of rupturing its relationship with the U.S., Stanton said.

“It would be an extinction-level event for the U.S.-South Korean alliance,” he said. “This is an absolutely incomprehensible betrayal by a nation that calls itself our ally that Americans have defended with [their] blood and with their money.” 

And if sanctions are willfully violated, Stanton said South Korea would be, “in its own way, a rogue nation.” The roster of rogue nations includes North Korea, Iran, Sudan, Syria and others.

South Korea has been planning several joint economic projects with North Korea since April’s inter-Korean summit. As the U.S. and North Korean relationship has thawed in the aftermath of the Singapore summit held in June between President Donald Trump and Kim, Seoul stepped up its plans, and a third inter-Korean summit began Tuesday in Pyongyang.

Days before Moon and Kim met, however, the U.S. announced new unilateral sanctions against North Korea. On Thursday, Washington targeted North Korea’s China-based company, Yanbian Silver Star Network Technology, its North Korean CEO, Jong Song Hwa, and its Russia-based subsidiary, Volasys Silver Star, which sells IT services and products.

There is also talk of the U.S. using military force to curb North Korea from evading sanctions at sea by monitoring ship-to-ship transfers by coordinating its efforts with countries like Australia, Japan, New Zealand, Canada, France, and the U.K. as well as South Korea.

The projects South Korea has been planning with the North include constructing an inter-Korean railway, which Moon has publicly backed, reopening the Kaesong Industrial Complex, and resuming the tours to Mount Kumgang, a landmark of great natural beauty with a special hold on the Korean soul. The tours and the complex appeal to South Korean companies.

Possible sanction violations

Each could violate sanctions that were imposed on North Korea in 2016 in response to its fourth nuclear weapons test and a long-range missile launch.

“In the absence of waivers and exemptions from the United Nations, which the U.S. as one of the Security Council members would have to support, Mount Kumgang and Kaesong would violate sanctions,” said Troy Stangarone, senior director of the Korea Economic Institute, who is a specialist on South Korea trade and North Korea.  

Under U.N. Resolution 2375 issued in September 2017, “forming joint ventures or cooperative entities, new and existing, with DPRK (North Korean) entities or individuals” is prohibited.

Additionally, any products manufactured using North Korean labor, potentially including items fabricated in the Kaesong Industrial Complex, will be banned from U.S. commerce. The Countering America’s Adversaries through Sanctions Act (CAATSA) adopted in August 2017 stipulates that manufacturers purge any parts made with North Korean labor from their supply chains.

While Moon is expected to attempt to broker a denuclearization deal between the U.S. and North Korea at the summit and continue Seoul’s rapprochement with Pyongyang aimed toward eventual unification, South Korea must make sure that it does not violate sanctions as it pursues inter-Korean projects, Stanton said.

“I don’t think they actually did read the sanctions,” he said. “When you look at Moon Jae-in, he will go out and make all of these promises” and when it’s pointed out that “that there’s a provision that you’re violating here … they will respond by saying it’s not sanctions violation because it’s good for everyone to have peace.”

One of the projects is the construction of a railroad to connect Seoul and Sinuju, the North’s northeastern border near the Chinese city of Dandong, via Pyongyang, eventually linking to Beijing and then venturing toward Europe via the Trans-Mongolian and Trans-Siberian railways.

Railway project concerns

William Brown, a former U.S. intelligence official who is currently a professor of North Korean economy at Georgetown University, said for the railroad project to move forward, South Korea would have to finance the construction, which could end up funding the North Korean government. 

“A big railway project wouldn’t work without severe pullback of U.N. sanctions and probably U.S. sanctions as well,” said Brown. 

According to Stanton, providing both public and private financial support to North Korea is banned under U.N. Resolution 2321 adopted in November 2016.

However, plans for the railroad and the other projects are being formulated. Although South Korean officials said they do not expect to make any agreements on joint economic projects, top business leaders from Samsung, LG Group and Hyundai accompanied Moon to the summit.

Since Moon’s first summit with Kim, Hyundai has been developing a task force to prepare for restarting the Mount Kumgang tours and Kaesong factories.

When Mount Kumgang initially opened in 1998, Hyundai Asan had the exclusive right to operate tours. The company agreed to pay Pyongyang a fixed monthly sum, which was subsequently changed to a percentage of monthly profit when the attraction proved less profitable than anticipated, said Bradley Babson, an advisory council member of the Korea Economic Institute of America. 

The tours ended in 2008 after a North Korean guard shot and killed a South Korean tourist.

Resuming the tours under an arrangement similar to the original deal would violate current sanctions. 

Initially, the Kaesong Industrial Complex was mostly financed by the South Korean government and major South Korean companies. The complex that opened in 2004 included factories where South Korean manufacturers could employ inexpensive North Korean workers.

Each North Korean worker was supposed to be paid $70 a month, but they received a fraction of that from their government, Brown said. 

Wages likely diverted

In February 2016 during the administration of Park Geun-hye, Seoul’s Unification Ministry said wages were paid in U.S. dollars to the North Korean government and not directly to the laborers, and most of the money is believed to have been diverted to the North’s Office 39, which is thought to finance Pyongyang’s nuclear and missile programs.

The Treasury Department sanctioned Office 39, describing it as “a secretive branch” of the North Korean government that provides critical support to the regime’s leadership “in part through engaging in illicit economic activities and managing slush funds and generating revenues for the leadership.”

Moon, who was elected in May 2017 after Park’s impeachment, revived the “sunshine policy” of building ties with North Korea through aid and exchanges.

In July 2017, Moon’s office said that there was no proof that money from Kaesong funded North Korea’s weapons program. But Stangarone said the money would have indirectly supported the North’s weapons program even if it did not directly finance it. 

“The primary issue,” he said, “is even if North Korea were … to only spend that money on other things rather than nuclear program or its military in general, that funding then frees up other funding they would have had to use and allow them to spend it on those weapons program.”  

 

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Woman Accusing Judge Kavanaugh of Sexual Assault Wants FBI Probe

Lawyers for the woman who is accusing U.S. Supreme Court nominee Brett Kavanaugh of sexual assault more than 30 years ago says she wants the FBI to investigate her allegation before she testifies publicly.

Kavanaugh denies the charge and will apparently tell his side of the story before the Senate Judiciary Committee next Monday. 

His accuser, Christine Blasey Ford, has also been invited to testify. 

But Ford’s lawyers said in a letter Tuesday to Committee Chairman Chuck Grassley that some of the senators on the committee “appear to have made up their minds” and believe Kavanaugh.

The lawyers also said Ford has become the subject of death threats and harassment, and expressed fears that the committee planned to have her “relive this traumatic and harrowing incident” while testifying at the same table as Kavanaugh and in front of national television cameras.

“Nobody should be subject to threats and intimidation, and Dr. Ford is no exception,” Grassley said in a statement later Tuesday.

The Republican senator said there were no plans to have Ford and Kavanaugh appear at the same time, and that the committee had offered her the opportunity to appear before a private hearing.

He further rejected calls for an FBI investigation, saying the Senate has the information it needs to handle the matter on its own.

“Dr. Ford’s testimony would reflect her personal knowledge and memory of events. Nothing the FBI or any other investigator does would have any bearing on what Dr. Ford tells the committee, so there is no reason for any further delay,” Grassley said.

Senator Dianne Feinstein, the top Democrat on the Judiciary Committee, said Republicans are not taking Ford’s allegations seriously and are rushing into a “completely unfair” hearing.

“We should honor Dr. Blasey Ford’s wishes and delay this hearing. A proper investigation must be completed, witnesses interviewed, evidence reviewed and all sides spoken to. Only then should the chairman set a hearing date,” Feinstein said.

President Donald Trump gave Kavanaugh a ringing new endorsement Tuesday, saying he felt “so badly” that Kavanaugh is facing scrutiny over the allegations.

“This is not a man that deserves this,” Trump said. “I feel terrible for his family.”

The president renewed his criticism of Feinstein for not disclosing the allegations when she first learned of them in July. He accused Democrats of being “lousy politicians, but good obstructionists” in their efforts to derail Kavanaugh’s confirmation to a lifetime appointment on the country’s highest court. 

Feinstein reiterated Tuesday that making the allegations public was not her decision to make, but rather up to Ford to decide if and when we wanted to do so.

Ford, a California psychology professor, told The Washington Post Kavanaugh groped her at a suburban Washington house party when she was 15 and he was 17. 

She said Kavanaugh, “stumbling drunk,” threw her down on a bed, grinding his body against hers and trying to pull off her one-piece bathing suit and the clothing she was wearing over it. Ford said when she tried to scream, he put his hand over her mouth.

She said she feared Kavanaugh might inadvertently kill her before she managed to flee.

Some Democratic lawmakers have also called for an FBI investigation. The agency conducted background checks six times over the years on Kavanaugh.

But Trump said ahead of his news conference, “I don’t think the FBI should be involved because they don’t want to be involved.” He said senators hearing Ford’s accusations, if she testifies, “will open it up and they will do a very good job” considering Ford’s allegations and Kavanaugh’s denial.

Grassley said the panel plans to call only two witnesses, Ford and Kavanaugh, and not another man, Mark Judge, whom Ford says was in the same bedroom during the alleged attack.

Grassley’s omission of Judge, who has said he has no memory of the alleged attack, and other possible witnesses, drew the ire of Feinstein. 

“It’s impossible to take this process seriously,” Feinstein said.

“What about other witnesses like Kavanaugh’s friend Mark Judge?” Feinstein said. “What about individuals who were previously told about this incident? What about experts who can speak to the effects of this kind of trauma on a victim? This is another attempt by Republicans to rush this nomination and not fully vet Judge Kavanaugh.”

Republicans, some of whom see the allegations as a stalling tactic by Democrats to thwart Kavanaugh’s confirmation, have been pushing to confirm him before November’s midterm elections, when they could lose their 51-49 majority control of the Senate.

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