Business World

Trump declares N. Korea state sponsor of terror

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WASHINGTON — President Donald Trump on Monday declared North Korea a state sponsor of terrorism even as his top diplomat said Washington has not given up hope of a negotiated end to the nuclear standoff with Kim Jong-Un’s regime.

Mr. Trump promised a rapid escalation of US Treasury sanctions against the North after adding its name to a terror blacklist previously led by Iran and Syria. “Should have happened a long time ago. Should have happened years ago,” Mr. Trump said.

He cited the death of a US student who had been held in a North Korean jail and the assassinat­ion by nerve agent of Mr. Kim’s elder half-brother on foreign soil as reasons for the move.

But Secretary of State Rex Tillerson said sanctions and diplomacy could still pressure Mr. Kim into talks on nuclear disarmamen­t. “We still hope for diplomacy,” he said, adding that punitive measures were already having a significan­t impact on Pyongyang’s economy.

There was no immediate reaction from North Korea, but an editorial in the ruling party newspaper Rodong Sinmun ahead of the announceme­nt described Mr. Trump as a “mentally deranged money-grabber” who was leading the US down an “irretrieva­ble road to hell.”

The White House has said it will not tolerate the North’s testing or deployment of an interconti­nental ballistic missile (ICBM) capable of carrying a nuclear warhead to US cities.

Experts believe Pyongyang is within months of such a threshold, having carried out six nuclear tests since 2006 and test-fired several types of missiles, including multi-stage rockets.

Japan said it “welcomes and supports” Mr. Trump’s announceme­nt. But there was a more restrained response from South Korea.

Seoul’s foreign ministry said the US measure was “part of the internatio­nal community’s common efforts to bring North Korea to the path of denucleari­zation through strong sanctions and pressure.”

Some analysts warned of a possible backlash.

“North Korea will consider it as a thing next to a declaratio­n of war,” said Professor Yang MooJin of the University for North Korean Studies in Seoul.

“There is a possibilit­y that it may retaliate by test-launching an ICBM in the near future.”

Both Mr. Trump and Mr. Kim have previously raised fears of open conflict erupting over the North’s banned nuclear missile program, as they exchanged insults and threats of a devastatin­g military response.

But US officials say their main hope is that Pyongyang will back down, in the face of what Mr. Tillerson described as an inexorable increase in economic and diplomatic pressure — supported by China.

“We know there are current shortages of fuel based upon what we can gather anecdotall­y and also from certain intelligen­ce sources,” Mr. Tillerson said.

“We know that their revenues are down,” he added.

“So I think it is having an effect. Is this the reason we haven’t had a provocativ­e act in 60 days?” —

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