Tillerson says China warned North Korea to stop nuclear tests

April 28, 2017

Washington, Apr 28: U.S. Secretary of State Rex Tillerson said Thursday that China has threatened to impose sanctions on North Korea if it conducts further nuclear tests.

Tillerson said China also told the U.S. that it had informed North Korea "that if they did conduct further nuclear tests, China would be taking sanctions actions on their own."

Earlier Thursday, the senior U.S. Navy officer overseeing military operations in the Pacific said the crisis with North Korea is at the worst point he's ever seen, but he declined to compare the situation to the Cuban missile crisis decades ago.

"It's real," Adm. Harry Harris Jr., commander of U.S. Pacific Command, said during testimony before the Senate Armed Services Committee.

Harris said he has no doubt that North Korean leader Kim Jong Un intends to fulfill his pursuit of a nuclear-tipped missile capable of striking the United States. The admiral acknowledged there's uncertainty within U.S. intelligence agencies over how far along North Korea's nuclear and missile programs are. But Harris said it's not a matter of if but when.

"There is no doubt in my mind," Harris said.

The Trump administration has declared that all options, including a targeted military strike, are on the table to block North Korea from carrying out threats against the United States and its allies in the region. But a pre-emptive attack isn't likely, U.S. officials have said, and the administration is pursuing a strategy of putting pressure on Pyongyang with assistance from China, North Korea's main trading partner and the country's economic lifeline.

With international support, the Trump administration said Thursday it wants to exert a "burst" of economic and diplomatic pressure on North Korea that yields results within months to push the communist government to change course from developing nuclear weapons.

Susan Thornton, the acting top U.S. diplomat for East Asia, said there's debate about whether Pyongyang is willing to give up its weapons programs. She said the U.S. wants "to test that hypothesis to the maximum extent we can" for a peaceful resolution.

But signaling that military action remains possible, Thornton told an event hosted by the Foundation for Defense of Democracies — the Washington think tank has advocated tougher U.S. policies on Iran and North Korea — that the administration treats North Korea as its primary security challenge and is serious that "all options are on the table."

"We are not seeking regime change and our preference is to resolve this problem peacefully," Thornton said, "but we are not leaving anything off the table."

Tillerson took a similar stand in the Fox News interview Thursday, saying: "We do not seek regime change in North Korea. ... What we are seeking is the same thing China has said they seek — a full denuclearization of the Korean peninsula."

In a separate interview with National Public Radio, Tillerson said the U.S. remains open to holding direct negotiations with North Korea.

"But North Korea has to decide they're ready to talk to us about the about the right agenda, and the right agenda is not simply stopping where they are for a few more months or a few more years and then resuming things," he said, according to excerpts of an interview that will air Friday morning. "That's been the agenda for the last 20 years."

Multi-nation negotiations with North Korea on its nuclear program stalled in 2008. The Obama administration attempted to resurrect them in 2012, but a deal to provide food aid in exchange for a nuclear freeze soon collapsed.

Harris told the committee that the financial sanctions imposed against the North Korean regime by the U.S. and other countries have done nothing to slow North Korea's quest for weapons of mass destruction. He also said he's been skeptical of China's willingness to exert its influence over Pyongyang. But Harris said he's become "cautiously optimistic" following recent talks between Trump and Chinese President Xi Jinping.

"It's only been a month or so and it's too early to tell," Harris said. "I wouldn't bet my farm on it."

The House GOP leadership announced late Thursday that it would vote next week on new sanctions against North Korea that would target its shipping industry and those who employ North Korean slave labor abroad.

"The time for waiting on North Korea to get its act together is over. Congress has led the effort to institute tough and far-reaching sanctions against Pyongyang," said House Majority Leader Kevin McCarthy, R-Calif.

In a show of military might, the U.S. has sent a massive amount of American weaponry to the region. A group of American warships led by the aircraft carrier USS Carl Vinson is in striking range of North Korea "if the president were to call on it," Harris told the committee. A U.S. missile defense system called Terminal High-Altitude Area Defense is being installed in South Korea.

Harris said he has adequate forces to "fight tonight" against North Korea if that were to become necessary. But the admiral also said he lacks all the attack submarines he needs and has no capable defense against the thousands of artillery pieces North Korea has assembled near the Demilitarized Zone separating North and South Korea. There are about 28,500 U.S. military personnel serving in South Korea.

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Vietnamese billionaire Truong My Lan sentenced to DEATH for $44bn fraud

News Network

April 11,2024

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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