Business Day

Trump will not lift sanctions, walks

After the bonhomie of the first evening, US president and North Korean leader Kim Jong-un surprise by failing to strike a deal

- Jeff Mason and Josh Smith Hanoi

US President Donald Trump says he walked away from a nuclear deal at his summit with Kim Jong-un in Vietnam on Thursday because of unacceptab­le demands from the North Korean leader to lift punishing US-led sanctions.

US President Donald Trump says he walked away from a nuclear deal at his summit with Kim Jong-un in Vietnam on Thursday because of unacceptab­le demands from the North Korean leader to lift punishing US-led sanctions.

Trump said two days of talks in the Vietnamese capital Hanoi had made good progress in building relations and on the key issue of denucleari­sation, but it was important not to rush into a bad deal.

“It was all about the sanctions,” Trump said. “Basically, they wanted the sanctions lifted in their entirety, and we couldn’t do that.”

The UN and the US ratcheted up sanctions on North Korea when the reclusive state undertook a series of nuclear and ballistic missile tests in 2017, cutting off its main sources of cash.

Trump and Kim cut short their talks, skipping a planned working lunch at the Frenchcolo­nial-era Metropole hotel after a morning of meetings.

“Sometimes you have to walk, and this was just one of those times,” Trump said, adding “it was a friendly walk”.

He later left Vietnam to return to Washington.

Failure to reach an agreement marks a setback for Trump, a self-styled dealmaker under pressure at home over his ties to Russia and testimony from Michael Cohen, his former personal lawyer who accused him of breaking the law while in office.

Trump said Cohen “lied a lot” during congressio­nal testimony in Washington on Wednesday, though he had told the truth when he said there had been “no collusion” with Russia.

The collapse of the talks raised questions about the Trump administra­tion’s preparatio­ns and about what some critics see as his cavalier style of personal diplomacy.

Since their first summit in Singapore in June, Trump has emphasised his good chemistry with Kim, but there have been doubts about whether the bonhomie could move them beyond summit pageantry to substantiv­e progress on eliminatin­g a North Korean nuclear arsenal that threatens the US.

Things had appeared more promising when the leaders met on Wednesday, predicting successful talks before a social dinner with top aides. The White House had been confident enough to schedule a “joint agreement signing ceremony” at the conclusion of talks.

Like the lunch, the ceremony did not take the place.

“No deal is a surprise, especially as they were both all smiley last evening,” said Lim Sooho, senior research fellow at the Institute for National Security Strategy.

“But no-deal today doesn’t mean there won’t be one in coming months. It means stakes were way too high for the two leaders to give another wishywashy statement like they did in Singapore.”

The Singapore summit, the first between a sitting US president and a North Korean leader, produced a vague statement in which Kim pledged to work toward denucleari­sation of the Korean peninsula. But little progress followed.

News of the summit failure sent South Korea’s currency lower and knocked regional stock markets. South Korea’s Kospi index closed 1.8% lower, marking the biggest one-day percentage loss since October 2018.

North Korea’s old rival South Korea, which backs efforts to end confrontat­ion on the peninsula, said it regretted that no deal had been reached but the two sides had made progress.

Senior Chinese diplomat Wang Yi said difficulti­es in the talks were unavoidabl­e but the two sides should press on and China would play a constructi­ve role. Japanese Prime Minister Shinzo Abe said he backed Trump’s decision and wanted a meeting with Kim.

There was no indication of when Trump and Kim, or their negotiator­s, might meet again. Trump said he would be happy as long as North Korea conducted no more nuclear or interconti­nental ballistic missile tests. North Korea has conducted no tests since late 2017, and Trump said Kim had promised him there would be no resumption.

Trump said he and Kim had discussed dismantlin­g North Korea’s main nuclear facility at Yongbyon, which Kim was willing to do, but Kim had wanted sanctions relief first. There were other facilities that Trump said he wanted included in a deal and the North Koreans had been surprised the Americans knew about them but they had baulked.

“We asked him to do more and he was unprepared to do that, but I’m still optimistic,” US secretary of state Mike Pompeo said, referring to Kim.

Trump said the US would be able to inspect some North Korean facilities but he did not go into specifics. Daniel Russel, a former top State Department diplomat for East Asia, said Kim might have thought he could drive a hard bargain, given Trump’s troubles at home.

“Kim Jong-un is not testing ballistic missiles and nuclear bombs at the moment, but he is testing Donald Trump. Kim may have wanted to see if Trump’s domestic legal and political woes made him desperate enough to take any deal he could get,” he said.

Trump had indicated a more flexible stance in the run-up to the Hanoi summit, prompting some critics to warn that he risked squanderin­g leverage over North Korea if he gave away too much.

US intelligen­ce officials have said there is no sign North Korea would give up its entire arsenal of nuclear weapons, which Kim’s ruling family sees as vital to its survival.

Earlier Kim and Trump, sitting across from each other at a conference table, appeared confident of progress, and Kim had suggested he was ready to give up his nuclear bombs.

“If I’m not willing to do that, I won’t be here right now,” Kim responded when asked if he was ready to give up his nuclear weapons.

 ?? /Reuters ?? Nuclear men: North Korea’s leader Kim Jong-un and US President Donald Trump walk outside the Metropole hotel during the second North Korea-US summit in Hanoi, Vietnam, which started on Wednesday.
/Reuters Nuclear men: North Korea’s leader Kim Jong-un and US President Donald Trump walk outside the Metropole hotel during the second North Korea-US summit in Hanoi, Vietnam, which started on Wednesday.

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