US Diplomat Nikki Haley Blasts China, Russia For 'Holding The Hand' Of North Korean Leader

Agencies
July 6, 2017

Washington, Jul 6: The top U.S. diplomat to the United Nations blasted Russia and China on Wednesday for "holding the hand" of North Korean leader Kim Jong Un, as the Trump administration struggled to respond to Pyongyang's latest ballistic-missile test.

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U.N. Ambassador Nikki Haley chided Moscow and Beijing over their opposition to a Security Council resolution condemning North Korea and imposing greater economic sanctions for what she called its "sharp military escalation."

She also said Pyongyang was "quickly closing off the possibility of a diplomatic solution" and suggested the United States would continue to consider military action if necessary.

"One of our capabilities lies with our considerable military forces," Haley said during a Security Council meeting in New York. "We will use them if we must, but we prefer not to have to go in that direction."

Haley's pointed speech marked the latest effort by the Trump administration to rally allies and rivals around a common agenda to blunt North Korea's progress, days after Kim's regime tested an intercontinental ballistic missile with a range that experts said would put it within reach of Alaska.

But her remarks also illustrated the limits of the White House's options and lacked specifics about what concrete steps the administration is considering. The missile test marks a new level of advancement in Kim's pursuit of a nuclear weapon that could strike the continental United States. Analysts said a military confrontation could escalate quickly into a mass-casualty war on the Korean Peninsula and Japan, where the United States has stationed tens of thousands of troops.

The standoff cast a shadow as President Donald Trump prepared for his first meeting with Russian President Vladimir Putin and his second with Chinese President Xi Jinping on the sidelines of the Group of 20 summit, which opens Friday in Hamburg. Trump also will meet with Japanese Prime Minister Shinzo Abe and the heads of U.S. allies Britain and Germany.

"We've been pretty consistent that we are never going to broadcast next steps," deputy White House press secretary Sarah Huckabee Sanders told reporters aboard Air Force One as the president traveled to a short stop in Warsaw on Wednesday.

Before leaving Washington, Trump revealed more frustration with Xi, whom he has personally lobbied to enact sanctions on Chinese banks that do business with North Korean companies. The U.S. Treasury Department announced last week that it would block the Bank of Dandong, along the border region between China and North Korea, from accessing U.S. markets. Officials said was the first of potentially greater sanctions by the United States.

On Twitter, Trump wrote: "Trade between China and North Korea grew almost 40% in the first quarter. So much for China working with us - but we had to give it a try!"

Chinese data released in April showed China's trade with the North grew 37.4 percent during the first three months of the year compared with the same period in 2016. China said then that overall trade grew even as it complied with U.N. sanctions and stopped buying North Korean coal.

Russian and Chinese diplomats used the U.N. Security Council meeting to push their joint proposal for a suspension of North Korean nuclear and missile testing in exchange for a suspension of U.S. and South Korean military exercises. Both countries also condemned the U.S. antimissile system being deployed in South Korea and called for it to be removed.

Early Wednesday in Asia, U.S. and South Korean forces fired missiles, conducting joint military exercises that the U.S. Pacific Command cast as a show of "ironclad" resolve.

Daniel Pinkston, a lecturer in international relations at Troy University in Seoul, said he saw no chance Washington and Seoul would agree to halt joint exercises, calling it "a non-starter."

During the U.N. meeting, a Russian official questioned whether North Korea's missile was an ICBM, suggesting it was an intermediate-range weapon.

That prompted Haley to request a second turn at the microphone, during which she said: "If you see this as a threat, if you see this for what it is, which is North Korea showing its muscle, then you need to stand strong. If you chose not to, we will go our own path."

Danny Russel, who served as senior Asia director at the National Security Council under President Barack Obama, said Trump has a "rare blue moon" opportunity this week to meet with and rally the major players - China and Russia on one side and Japan and South Korea on the other - toward some sort of unified display of condemnation of North Korea.

"What the administration needs to do is get China and Russia around an approach, even if it is not as testosterone-rich and muscular as the U.S. would like, so that the basic geometry is five on one, not three on three," said Russel, now a diplomat in residence at the Asia Society in New York. "There is no formula, no path forward, other than war, that isn't built on some degree of common cause between Washington and Beijing."

Victor Cha, who served as senior Asia director at the NSC under President George W. Bush, said the U.S. sanctions on the Dandong bank were "a shot across the bow at the Chinese that what is happening is not working for us. It arguably gives [Trump] a stronger position going in" to the meeting with Xi.

The missile the Kim regime launched had been in the works for years. It flew higher and remained in the air longer than previous attempts, in what experts called a milestone for North Korea

South Korean authorities described North Korea's test as a two-stage missile with a range of about 4,300 to 5,000 miles - enough to reach Alaska and other parts of North America.

South Korean Defense Minister Han Min-koo said there is high probability that Pyongyang will stage another nuclear test and noted gains in its efforts to miniaturize a warhead - steps toward developing nuclear-tipped weapons capable of hitting the mainland United States.

Pyongyang's test appeared to catch the United States by surprise. The Pentagon initially mislabeled the activity as a test of an intermediate-range missile before reclassifying it Wednesday as an ICBM with a range of at least 5,500 kilometers.

Navy Capt. Jeff Davis, a Pentagon spokesman, said that the missile "is not one we have seen before" and that it was launched from a site - the Panghyon airfield about 90 miles north of Pyongyang - that has not been used to test missiles before.

He emphasized that North Korea still has a number of steps to meet before a threat to North America is imminent, noting that Pyongyang has not yet demonstrated the ability to mount a nuclear warhead on a ICBM or show the lateral range necessary.

"But clearly, they are working on it," he said.

North Korea successfully test fired an intercontinental ballistic missile July 3. The missile was launched into a steep arc sending it more than 1,700 vertical miles up before beginning its reentry into Earth's atmosphere.

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News Network
April 11,2024

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Real estate tycoon Truong My Lan was sentenced Thursday to death by a court in Ho Chi Minh city in southern Vietnam in the country's largest financial fraud case ever, state media Thanh Nien said.

It's a rare verdict - she is one of very few women in Vietnam to be sentenced to death for a white collar crime, i.e. looting one of the country's largest banks over a period of 11 years.

The decision is a reflection of the dizzying scale of the fraud. Truong My Lan was convicted of taking out $44bn (£35bn) in loans from the Saigon Commercial Bank. The verdict requires her to return $27bn, a sum prosecutors said may never be recovered. Some believe the death penalty is the court's way of trying to encourage her to return some of the missing billions.

The habitually secretive communist authorities were uncharacteristically forthright about this case, going into minute detail for the media. They said 2,700 people were summoned to testify, while 10 state prosecutors and around 200 lawyers were involved.

The evidence was in 104 boxes weighing a total of six tonnes. Eighty-five defendants were tried with Truong My Lan, who denied the charges.

"There has never been a show trial like this, I think, in the communist era," says David Brown, a retired US state department official with long experience in Vietnam. "There has certainly been nothing on this scale."

The trial was the most dramatic chapter so far in the "Blazing Furnaces" anti-corruption campaign led by the Communist Party Secretary-General, Nguyen Phu Trong.

A conservative ideologue steeped in Marxist theory, Nguyen Phu Trong believes that popular anger over untamed corruption poses an existential threat to the Communist Party's monopoly on power. He began the campaign in earnest in 2016 after out-manoeuvring the then pro-business prime minister to retain the top job in the party.

 The campaign has seen two presidents and two deputy prime ministers forced to resign, and hundreds of officials disciplined or jailed. Now one of the country's richest women has joined their ranks.

Truong My Lan comes from a Sino-Vietnamese family in Ho Chi Minh City, formerly Saigon. It has long been the commercial engine of the Vietnamese economy, dating well back to its days as the anti-communist capital of South Vietnam, with a large, ethnic Chinese community.

She started as a market stall vendor, selling cosmetics with her mother, but began buying land and property after the Communist Party ushered in a period of economic reform, known as Doi Moi, in 1986. By the 1990s, she owned a large portfolio of hotels and restaurants.

Although Vietnam is best known outside the country for its fast-growing manufacturing sector, as an alternative supply chain to China, most wealthy Vietnamese made their money developing and speculating in property.

All land is officially state-owned. Getting access to it often relies on personal relationships with state officials. Corruption escalated as the economy grew, and became endemic.

By 2011, Truong My Lan was a well-known business figure in Ho Chi Minh City, and she was allowed to arrange the merger of three smaller, cash-strapped banks into a larger entity: Saigon Commercial Bank.

Vietnamese law prohibits any individual from holding more than 5% of the shares in any bank. But prosecutors say that through hundreds of shell companies and people acting as her proxies, Truong My Lan actually owned more than 90% of Saigon Commercial.

They accused her of using that power to appoint her own people as managers, and then ordering them to approve hundreds of loans to the network of shell companies she controlled.

The amounts taken out are staggering. Her loans made up 93% of all the bank's lending.

According to prosecutors, over a period of three years from February 2019, she ordered her driver to withdraw 108 trillion Vietnamese dong, more than $4bn (£2.3bn) in cash from the bank, and store it in her basement.

That much cash, even if all of it was in Vietnam's largest denomination banknotes, would weigh two tonnes.

She was also accused of bribing generously to ensure her loans were never scrutinised. One of those who was tried used to be a chief inspector at the central bank, who was accused of accepting a $5m bribe.

The mass of officially sanctioned publicity about the case channelled public anger over corruption against Truong My Lan, whose fatigued, unmade-up appearance in court was in stark contrast to the glamorous publicity photos people had seen of her in the past.

But questions are also being asked about why she was able to keep on with the alleged fraud for so long.

"I am puzzled," says Le Hong Hiep who runs the Vietnam Studies Programme at the ISEAS - Yusof Ishak Institute in Singapore.

"Because it wasn't a secret. It was well known in the market that Truong My Lan and her Van Thinh Phat group were using SCB as their own piggy bank to fund the mass acquisition of real estate in the most prime locations.

"It was obvious that she had to get the money from somewhere. But then it is such a common practice. SCB is not the only bank that is used like this. So perhaps the government lost sight because there are so many similar cases in the market."

David Brown believes she was protected by powerful figures who have dominated business and politics in Ho Chi Minh City for decades. And he sees a bigger factor in play in the way this trial is being run: a bid to reassert the authority of the Communist Party over the free-wheeling business culture of the south.

"What Nguyen Phu Trong and his allies in the party are trying to do is to regain control of Saigon, or at least stop it from slipping away.

"Up until 2016 the party in Hanoi pretty much let this Sino-Vietnamese mafia run the place. They would make all the right noises that local communist leaders are supposed to make, but at the same time they were milking the city for a substantial cut of the money that was being made down there."

At 79 years old, party chief Nguyen Phu Trong is in shaky health, and will almost certainly have to retire at the next Communist Party Congress in 2026, when new leaders will be chosen.

He has been one of the longest-serving and most consequential secretary-generals, restoring the authority of the party's conservative wing to a level not seen since the reforms of the 1980s. He clearly does not want to risk permitting enough openness to undermine the party's hold on political power.

But he is trapped in a contradiction. Under his leadership the party has set an ambitious goal of reaching rich country status by 2045, with a technology and knowledge-based economy. This is what is driving the ever-closer partnership with the United States.

Yet faster growth in Vietnam almost inevitably means more corruption. Fight corruption too much, and you risk extinguishing a lot of economic activity. Already there are complaints that bureaucracy has slowed down, as officials shy away from decisions which might implicate them in a corruption case.

"That's the paradox," says Le Hong Hiep. "Their growth model has been reliant on corrupt practices for so long. Corruption has been the grease that that kept the machinery working. If they stop the grease, things may not work any more."

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