JUDY WOODRUFF: From natural disasters to nuclear
diplomacy, President Trump ordered new sanctions
today aimed at crippling North Korea's nuclear
and ballistic missile programs.
The order allows for targeting individuals
and companies that trade with North Korea,
including foreign banks.
The president made the announcement during
a lunch with South Korea's President Moon
Jae-in and Japan's Prime Minister Shinzo Abe.
DONALD TRUMP: For much too long, North Korea
has been allowed to abuse the international
financial system to facilitate funding for
its nuclear weapons and missile programs.
Tolerance for this disgraceful practice must
end now.
JUDY WOODRUFF: Later today, North Korea's
leader, Kim Jong-un, called President Trump
-- quote -- "deranged" and said that he -- quote
-- "pay dearly for his threat."
We get more on today's move with David Cohen,
who served as deputy director of the CIA and
undersecretary for terrorism and financial
intelligence at the Treasury Department during
the Obama administration.
David Cohen, welcome back to the program.
DAVID COHEN, Former Deputy Director, Central
Intelligence Agency: Good to see you..
JUDY WOODRUFF: So, how significant is this
move by the president?
DAVID COHEN: I think it's actually quite significant.
These new sanctions that the president issued
today with an executive order creates new,
real and meaningful authorities for the United
States to impose sanctions both on businesses
that are working with North Korea and what
is I think quite significant, financial institutions
that are working with North Korea.
It is a combination really of what had been
imposed on Russia and what we had done with
respect to Iran that really ramped up the
pressure there.
JUDY WOODRUFF: So there have been sanctions
against North Korea.
How is this different from what had been done
before?
DAVID COHEN: Well, most significantly, this
authority allows what are called secondary
sanctions on foreign financial institutions,
which mostly are Chinese banks.
So, what it says is, any Chinese bank or any
foreign financial institution that is working
with designated, so sanctioned, North Korean
entities can be cut off from the United States.
That puts real pressure on those banks, and
the president today said that they need to
make a choice between working with North Korean
institutions or working with the United States.
JUDY WOODRUFF: So, meantime, David Cohen,
the Chinese government announced today that
it is ordering its banks to cease doing any
business with North Korea.
So what does that tell you?
DAVID COHEN: That tells me that the Chinese
may have known this was coming, and are taking
steps to protect their financial system from
the risk that one of their banks will get
caught in these secondary sanctions.
They're telling their banks, back off from
North Korea, don't do business with North
Korea.
That will protect them from the possibility
that they will be sanctioned by the U.S.
JUDY WOODRUFF: And what does all this mean
for North Korea?
I just read the quote, the comment today from
Kim Jong-un.
What does it really mean for their country?
DAVID COHEN: Well, you know, Kim Jong-un is
a master of over-the-top rhetoric.
And we should look at what they do, not what
Kim Jong-un says, because he is very practiced
in that sort of rhetoric.
JUDY WOODRUFF: Right.
DAVID COHEN: What these sanctions, I think,
means is, I think it's a signal to the North
Koreans that the United States is trying to
maximize pressure.
But with that, and in all the statements from
the White House today, came the hint that,
if there was a potential negotiation here
about the nuclear program, the United States
was open to hearing that out.
So I think it's a possibility for a negotiation.
JUDY WOODRUFF: So potential pain for them
not having this business, but an opening,
is what you're saying?
DAVID COHEN: Exactly, and real significant
pain if the United States follows through
on imposing sanctions under these new authorities.
JUDY WOODRUFF: All right, David Cohen, thank
you again.
DAVID COHEN: Thank you.
JUDY WOODRUFF: Appreciate it.
