Axis of Evil

China secretly bought North Korean coal as US watched from above

Fox News

The Glory Hope 1 is shown in a satellite picture, where it took on illicit North Korean coal. (U.S. photo submitted to the United Nations)
At least six cargo ships linked to China furtively violated U.N. sanctions by taking on North Korean coal late last year, potentially providing a significant boost to the rogue regime's coffers, the U.S. alleges.
The U.N. Security Council in August hit North Korea with sanctions that were projected to cut nearly $1 billion from its annual exports revenue of roughly $3 billion, banning exports of coal, iron ore, and other products.
The move, which China ultimately endorsed, came after the isolated country fired two intercontinental ballistic missiles that raised international tensions.
But the six vessels, which the U.S. tracked by satellite and formally reported to the U.N. as sanctions violators in December, defied the sanctions by bringing North Korean coal to Vietnam, Russia, or other ships in mid-sea transfers, the Wall Street Journal reported, citing U.S. officials.
The paper found that the six ships are either managed or owned by Chinese companies or firms registered in Hong Kong. 

The U.S. also sought to have four other ships that have no apparent connections to China labeled as sanctions violators.
One of the Chinese-linked cargo ships, the Glory Hope 1, began violating the sanctions just days after they were passed in August, U.S. officials said, according to the Wall Street Journal.
The Chinese-owned ship flew a Panamanian flag and turned off its automatic identifying transmitter as it headed into a North Korean port on Aug. 7, the Journal reported.

The Chinese-owned ship Kai Xiang was photographed appearing to load North Korean coal. (U.S. photo)

Meanwhile, the U.S. was watching from above, using spy satellites to observe the ship that officials estimate could hold up to $1.5M worth of black-market coal.
The Glory Hope 1 loitered for an extended period at a Chinese port after arriving from North Korea, U.S. officials told the U.N.
U.S. officials suspect the unusual maneuver was a ruse to make it appear that the crew was taking on Chinese cargo, according to the Wall Street Journal.
All U.N. members would have to ban the Glory Hope 1 and the other five ships from their ports in order to formally designate them as sanctions violators.
China’s foreign ministry told the Journal that it fully complies with U.N. resolutions. 

Several of the ship-owners and managers linked to the ships have reportedly been questioned by Chinese authorities.
U.S. National security advisor H.R. McMaster last month threatened harsh consequences for ships that continue to defy the sanctions.
“A company whose ships would engage in that activity ought to be on notice that that might be the last delivery of anything they do for a long time, anywhere,” McMaster said.

Rogue Nations

Chinese Ships Spotted Selling Oil to North Korea
By Yu Yong-weon, Kim Jin-myung

U.S. reconnaissance satellites have spotted Chinese ships selling oil to North Korean vessels on the West Sea around 30 times since October.
According to South Korean government sources, the satellites have pictured large Chinese and North Korean ships illegally trading in oil in a part of the West Sea closer to China than South Korea.
The satellite pictures even show the names of the ships. 

A government source said, "We need to focus on the fact that the illicit trade started after a UN Security Council resolution in September drastically capped North Korea's imports of refined petroleum products."
The U.S. Treasury Department placed six North Korean shipping and trading companies and 20 of their ships on sanctions list on Nov. 21, when it published spy satellite images taken on Oct. 19 showing a ship named Ryesonggang 1 connected to a Chinese vessel.

The department noted that the two ships appeared to be illegally trading in oil from ship to ship to bypass sanctions.
Ship-to-ship trade with North Korea on the high seas is forbidden in UNSC Resolution 2375 adopted in September, but such violations are nearly impossible to detect unless China aggressively cracks down on smuggling.
The problem is that any oil embargo imposed on the North in the event of further provocations will probably be futile as long as illegal smuggling continues.
It is uncertain whether the Chinese government is deliberately looking the other way, but it seems unlikely that it is unaware given the sheer volume.

Two-Face China

China Caught Red-Handed Selling Illegal Oil To North Korea By Spy Cameras
By Nathaniel Artosilla

North Korea's military personnel parade with a portrait of North Korea's late leader Kim Il-sung in central Pyongyang April 25, 2007.

China appears to have a soft spot for its neighbour North Korea as the country was spotted selling oil to the country in spite of sanctions levied by the United Nations. 

Images from a spy satellite revealed Chinese and North Korean vessels illicitly linking up at sea for the purpose of selling oil to the rogue state.
The images, which were published by a South Korean newspaper, led US President Donald Trump to condemn China as ship-to-ship transfers are prohibited under the UN-imposed sanctions. 

Trump added that such a move would prevent "a friendly solution" to the crisis over Pyongyang's nuclear program
"Caught red-handed," Trump wrote on Twitter. 

"Very disappointed that China is allowing oil to go into North Korea"
The revelation happens just after Trump's state visit to China which gave the impression that the US finally managed to win Beijing's support in the war of words with nuke-nut Kim whom he dubbed "Rocketman." 

This is a massive setback for US foreign policy in the region at a time world edges closer to a new world war.
China had already denied using its ships to sell oil to its neighbour. 

The imagessuggest otherwise, however, revealing that trading has been going on for three months with at least 30 shipments being delivered.
Back in September, the UN Security Council unanimously decided to impose new economic sanctions on North Korea after a recent intercontinental ballistic missile (ICBM) test. 

The sanctions aim to further limit the country's access to refined petroleum products and crude oil by capping them at 500,000 barrels a year.
The US-drafted resolution aims to stifle as much as 90 percent of oil supplies to the hermit kingdom threatening further reductions should the North conduct another nuclear test or launch another ICBM. By illegally selling oil to the country, it gives a massive boost of confidence in their dream of wiping out the US by aiding to the communist country's nuclear missile program.

Sina Delenda Est

How President Trump can put pressure on China over North Korea's nuclear threat
By Oren Dorell

U.S. President Donald Trump has been pressuring China to do more to curb North Korea's nuclear and long-range missile activities. 

President Trump expressed frustration Wednesday that China is not doing enough to pressure its ally, North Korea, to halt its nuclear weapon and missile programs, and signaled that he may turn to other options to thwart North Korea's ambitions.
“Trade between China and North Korea grew almost 40% in the first quarter,” Trump tweeted. 

“So much for China working with us — but we had to give it a try!”

Trump’s tweet came after North Korea on Tuesday successfully tested its first intercontinental ballistic missile capable of reaching Alaska. 

The missile, able to carry a nuclear warhead, is intended to “put an end to the U.S. nuclear war threat and blackmail,” according to a statement by North Korea’s official news agency.
Here are some options Trump has available:

Enforce current U.N. sanctions
At an emergency meeting Wednesday of the United Nations Security Council, U.S. Ambassador Nikki Haley said countries around the world face a choice: Trade with North Korea or trade with the United States.
"Countries that are allowing, even encouraging trade with North Korea in violation of United Nations Security Council resolutions ... also would like to maintain their trade relationship with the United States," Haley said. 

"That’s not going to happen."
The U.S. has considerable military capabilities, "but we prefer not to go in that direction," Haley said.
The latest sanctions resolution passed by the U.N. Security Council in November was touted as the strongest ever, but the State Department and analysts say those measures have yet to be fully enforced.
The sanctions limit North Korea’s sale of conventional weapons, coal and iron ore, especially if revenue would benefit its nuclear or ballistic missile programs.
China, which handles 90% of North Korea's trade with other countries, increased trade with North Korea 37% in the first quarter of this year, just before Beijing announced it would cut back buying cheap, high-quality North Korean anthracite coal, said economist Thomas Byrne, president of The Korea Society, a New York City-based group that promotes U.S.-Korean understanding.
The increase appeared to be caused by companies that "topped off" before the sanctions went into effect, he said.
North Korea also trades with Malaysia, Singapore, Vietnam, Iran and Congo. 

"Iran and other countries do small amounts of trade that add up," Byrne said.
China and other countries are clearly not implementing all the U.N. sanctions, said Anthony Ruggiero, a senior fellow at the Foundation for Defense of Democracies, a think tank in Washington, D.C.
Some of those countries need help from the U.S. to screen for complicated financial arrangements designed to hide North Korean involvement, while others are not interested in implementing the sanctions because they benefit from cut-rate North Korean pricing, Ruggiero said.

This picture purportedly taken on July 4, 2017 and released by North Korea's official Korean Central News Agency on July 5, 2017 shows North Korean leader Kim Jong-Un (C) celebrating the successful test-fire of the intercontinental ballistic missile Hwasong-14 at an undisclosed location. 

Stop Chinese missile carriers
The U.S. could start calling out companies involved in North Korea's weapons programs, such as two Chinese trucking companies that provided or helped build large vehicles that North Korea uses to transport, erect and launch its missiles, said Richard Fisher, a China and Korea analyst at the International Assessment and Strategy Center.
The China Aerospace Science and Industry Corporation and the China National Heavy Duty Truck Group, or Sinotruk, have provided trucks or large missile carriers that North Korea uses to transport missiles aimed at U.S. forces in Asia, Fisher said. 

The vehicles were displayed in an April 15 military parade, where North Korean leader Kim Jong Un’s forces showed off their capabilities.

A primary school student An Jae-Gwon (10) poses for a portrait during a festive 'children's day' event at 'Primary School Number 4' in Pyongyang, June 6, 2017.

"In order for those trucks to carry the missile, the missile company has to be involved," Fisher said. "We should have no problem demanding that the Chinese take back all these large 16-wheel transporter erector launchers."

Expose Beijing's support
U.S. intelligence officials could expose companies involved in helping North Korea obtain the capacity to produce lithium-6. 

It is crucial to develop thermonuclear weapons — hydrogen bombs and boosted atomic bombs — that produce a far more powerful blast than atomic bombs, Fisher said.
According to a March 17 report by the Institute for Science and International Security, citing government sources, North Korea arranged in 2012 to purchase industrial equipment and materials in China, including mercury and lithium hydroxide. 

Those substances have civilian as well as military uses, but together indicate an effort to produce lithium-6 for weapons, according to the institute's report.
That means the Chinese government approved the transfer of technology to manufacture thermonuclear weapons to North Korea, Fisher said.
“It’s simply inconceivable that the Chinese government would have allowed the transfer of this kind of technology without multilevel approval up to the Chinese Communist Party politburo,” he said. 

Seek tougher U.N. sanctions
Haley on Wednesday urged the Security Council to tighten sanctions against North Korea, but China and Russia expressed reservations.
China's envoy, Liu Jieyi, called North Korea's missile test unacceptable and called "on all parties to refrain from provocative actions and statements and to engage in full talks to resolve this issue."
Russia's deputy U.N. ambassador, Vladimir Safronkov, said, "Any attempts to justify a military solution are inadmissible and may lead to destabilization of the region. Attempts to economically strangle North Korea are equally inadmissible."
The November sanctions resolution “calls upon” the international community to “exercise vigilance” over North Korean activities that produce revenue for the regime and its weapons program. 

These include workers sent abroad by North Korea to earn hard currency used for the country's nuclear and ballistic missile programs, according to the resolution.
This “slave labor,” Ruggiero said, has been used to build World Cup facilities in Qatar and St. Petersburg, Russia, in the Russian logging industry and in Kuwait, generating $500 million annually for North Korea.
Tillerson should seek a change to the resolution's permissive language to an outright ban, Ruggiero said. 

And the U.S. push for a new resolution that cuts off North Korea’s access to revenue streams from laborers and to counter illicit activities such as cyber bank heists and drug trafficking, Ruggiero said.

Impose U.S.-coalition sanctions
The U.S. could bypass the Security Council and impose its own sanctions. 

The Trump administration could develop a multinational coalition to cut off revenue to the North Korean government, like the Obama administration did to counter Iran’s nuclear weapons program.
The U.S. and its allies should issue arrest warrants for senior company officers in China and other countries who participate in military assistance programs that benefit North Korea, and seize their assets, Fisher said.
They could start with targeting individuals, companies and financial institutions that did business with the Dandong Hongxiang Industrial Development Company, a Chinese firm named in U.S. sanctions issued in September, or citizens of China, Russia, Vietnam and Cuba who worked with North Koreans named in sanctions issued on March 31. 

The two sets of sanctions targeted Chinese and North Koreans alleged to have raised money to fund illicit North Korean proliferation activities.
"The Dandong Hongxiang company (and four of its officers) is sanctioned, but 22 front companies are not, and no banks were sanctioned in the recent action," Ruggiero said.

Cut access to U.S. banks
The Treasury Department could cut off access to the U.S. financial system for banks, companies and individuals anywhere in the world who do business with North Korean entities. 

That would shut down North Korea’s missile and conventional weapons sales, which represent 40% of the nation’s economy, said Bruce Bechtol, a political science professor at Angelo State University in Texas and an expert on North Korea.
A financial dragnet that covers all foreign intermediaries working on North Korea’s behalf, including banks involved in money laundering, front companies and foreign individuals who establish bank accounts in return for financial kickbacks “would bring North Korea to its knees,” Bechtol said.
Last week, the Treasury Department did just that, cutting off a Chinese bank, a shipping company and two Chinese individuals from the U.S. financial system because of their support for North Korea.
"We will follow the money, and cut off the money," Treasury Secretary Steve Mnuchin said on June 29.

US Reserves Right to Punish China Firms Working With North Korea

By MATTHEW PENNINGTON, WASHINGTON
In this Feb. 26, 2016 photo, Assistant Secretary of State for East Asian and Pacific Affairs Daniel Russel meets with reporters after the meeting with South Korean senior officials at the Foreign Ministry in Seoul, South Korea. Russel said that Washington reserves the right to punish Chinese companies that violate U.N. sanctions on North Korea if Chinese authorities don’t take action.

The United States reserves the right to punish Chinese companies that violate U.N. sanctions on North Korea if Chinese authorities don't take action, a senior U.S. official said Wednesday.
Top U.S. diplomat for East Asia, Daniel Russel, said that since most of North Korea's illegal activities are conducted through neighboring China, companies are "going to have to tighten up and shut down operations." 

The U.S. is looking to cooperate with international partners in cutting revenue sources for the North's nuclear and missile programs.
North Korea has conducted two nuclear test explosions and more than 20 missile launches this year, intensifying concern that it is closer to having a nuclear-tipped missile that could reach America.
The Justice Department last month unsealed criminal charges against a China-based company, Dandong Hongxiang Industrial Development Co., and four of its executives for conspiring to evade sanctions, and the Treasury Department barred them from business dealings with the U.S. Chinese authorities have also said they were investigating Hongxiang on suspicion of unspecified "serious economic crimes."
"To the extent that the Chinese authorities themselves take action against North Korea malefactors or Chinese companies that are collaborating with North Korea then there's no cause for action by the United States or others," Russel told reporters.
"Where they don't take action, the United States reserves the right under U.N. Security Council resolution 2270 or under our own national authorities to take action," he said, referring to the most recent sanctions resolution against North Korea, adopted in March.
Russel said while there's "frustration and differences of view" between Washington and Beijing, they do cooperate on North Korea. 

The U.S. is constantly "scanning the horizon" for evidence of sanctions violations and makes a point of sharing with China first any information they have about "bad actors" there, he said.
China is the North's traditional ally and main trading partner. 

The U.S. is currently pushing for tighter U.N. sanctions that would impose additional restrictions on North Korea's exports of coal that account for about one-third of its export income and mostly go to China.
A succession of U.N. sanctions resolutions and U.S. sanctions have failed to stop North Korea's weapons development and to force it to return to negotiations on giving up its nuclear program in exchange for aid. 

The North argues that it needs nuclear weapons to deter a U.S. invasion. 

Russel called that "absurd."
He argued that the nuclear program has only diminished the security of North Korea and its dictatorial leader Kim Jong Un and hurt its diplomatic and economic standing.
"Put yourself in Kim Jong Un's place. That is not a good place to be. Perhaps he's got an enhanced capacity to conduct a nuclear attack and then immediately die. But that can't be plan A," Russel said.
The U.S. retains 28,000 troops in South Korea, a legacy of the 1950-53 Korean War which ended without a formal peace treaty.