Tags: Donald Trump | North Korea | ed royce | cut | funds | north korea | banks

Rep. Royce: 'Shut Off the Money' Next Step With NKorea

By Eric Mack   |   Sunday, 16 Apr 2017 12:02 PM

Military action is not the only way to deter North Korea's nuclear program, Rep. Ed Royce, R-Calif., said Sunday, pointing to economic pressure of cutting off their ability to fund it as "the next step that has to be deployed."

"What we're urging this president to do at this point is what was done once before with Banco Delta Asia, and that is shut down any foreign banks doing any kind of of business in hard currency with North Korea," Rep. Royce, the House Foreign Affairs Committee chairman told CNN's "State of the Union."

"When we last did that, we shut off the money for their program, and we shut it down tight as a drum, and I think that's the next step that has to be deployed."

Royce was pointing to a 2005 Treasury Department action, but his committee last year had led House legislation passed to put "additional pressure on neighboring countries such as China, not to transfer to North Korea," he said.

"We have found that unfortunately China has continued to transfer some of the parts that North Korea has gotten their hands on now, and continues to transfer the type of fuel that keeps the economy going," Royce told host Jake Tapper.

Royce adds China is a key "leverage" vehicle against North Korea.

"There is the realization that if China does cut off all transactions with North Korea, we'll be in a position where once again the dictator will not be able to pay his generals," Royce told Tapper.

"That's what happened the last time we had these kinds of sanctions imposed on Chinese banks, some ten banks back during Banco Delta Asia. So, I think that's the negotiation right now. That's the leverage, and we need that kind of political leverage, because that's the way to get the attention of the regime in North Korea, and have them reconsider on their nuclear program."

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Military action is not the only way to deter North Korea's nuclear program, Rep. Ed Royce, R-Calif., said Sunday, pointing to economic pressure of cutting off their ability to fund it as "the next step that has to be deployed."
ed royce, cut, funds, north korea, banks, china
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2017-02-16
 

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