Disappearance of Saudi Arabian journalist overshadows global financial meeting – Los Angeles Times

* http://www.latimes.com/world/asia/la-fg-saudi-mnuchin-khashoggi-20181013-story.html

U.S. Treasury Secretary (equivalent to a finance minister) speaking at a press conference at the IMF/World Bank meetings in Indonesia on Oct. 13 2018 (Simon Roughneen)

NUSA DUA — U.S. Treasury Secretary Steven T. Mnuchin said Saturday that he was sticking with plans to attend a government-sponsored investment conference in Saudi Arabia this month despite the uproar over the disappearance of a prominent Saudi journalist, although he said he would reconsider that decision “if more information comes out.”

Mnuchin said he was concerned about the fate of Saudi-born journalist Jamal Khashoggi, who entered the Saudi consulate in Istanbul, Turkey, last week and has not been seen since.

Turkish investigators say Khashoggi, a well-connected Washington Post columnist who had become a critic of the powerful Saudi crown prince, was killed and his body dismembered by an elite Saudi security team. Saudi officials say Khashoggi left the consulate freely, but have not substantiated their claim.

President Trump, who had said little publicly about Khashoggi for more than a week, acknowledged for the first time Saturday that the Saudi government could have ordered his killing, telling CBS News there would be “severe punishment” if that were confirmed.

Until now, the Trump administration’s support for a summit seen as a pet project of the crown prince, Mohammed bin Salman — reflects its close economic and military ties with Saudi Arabia.

Mnuchin spoke on the sidelines of a World Bank and International Monetary Fund meeting on the Indonesian resort island of Bali, where Khashoggi’s fate shadowed discussions of the trade dispute between the U.S. and China, the world’s two biggest economies.

Saudi Arabia’s ambitious Oct. 23 investment summit  has become a lightning rod in the wake of Khashoggi’s disappearance.

Media companies including the Financial Times, CNN, Bloomberg, the New York Times and the Los Angeles Times withdrew their participation. British entrepreneur Richard Branson, Uber chief executive Dara Khosrowshahi and World Bank President Jim Yong Kim have also said they wouldn’t attend.

IMF Managing Director Christine Lagarde said that despite her concerns over Khashoggi, she did not intend to change her plans and would attend the summit. “Horrifying things have been reported, and I am horrified,” Lagarde said Saturday. “But I have to conduct the business of the IMF in all corners of the world, and with many governments.”

At the meeting in Indonesia, which was attended by many of the world’s finance ministers and central bankers, Mnuchin also faced questions over the escalating U.S. trade war with China.

Speaking to reporters, the Treasury secretary reiterated Trump’s demand for “free, fair and reciprocal” trade and disputed the view that U.S. economic policy was moving in a protectionist direction.

Mnuchin said the U.S. was still working toward negotiating free trade agreements with the European Union and Japan. He added those moves would not amount to “a coalition to pressure China.”

Mnuchin’s comments came a week after a speech by Vice-President Mike Pence accused China of “employing a whole-of-government approach, using political, economic, and military tools, as well as propaganda, to advance its influence and benefit its interests in the United States.” Pence noted that China’s GDP is now 9 times bigger than it was l17 years ago and claimed that “much of this success was driven by American investment in China.”

Amid a tit-for-tat dispute that has seen the U.S. and China impose import duties on goods from the other country, making them more expensive for consumers, the IMF last week cut its global growth forecast for the 2019 fiscal year from 3.9% to 3.7%, citing uncertainties caused by protectionism.

The U.S. has threatened to impose tariffs on another $267 billion worth of Chinese imports, which would place almost all of what China sells to the U.S. under restrictions.

The face-off has alarmed world leaders, with Indonesian President Joko Widodo likening it to the warring kingdoms portrayed in the fictional HBO series “Game of Thrones.”

Indonesian President Joko Widodo and International Monetary Fund Managing Director Christine Lagarde (both center) at the IMF/World Bank annual meetings in Nusa Dua, Bali, Indonesia on Oct. 12 (Simon Roughneen)

Argentina’s finance minister, Nicolás Dujovne, told reporters that it was up to the U.S. and China to resolve the dispute, while Malaysian finance minister Lim Guan Eng said the tariff hikes were “already impacting global growth.”

While countries like Malaysia could theoretically stand to benefit from investment by businesses seeking to sidestep the trade war, Lim told The Times: “In the long term, everyone loses.” T

he fear is that if the trade war expands, global supply chains in which companies disperse operations in various countries could be affected, particularly if these supply parts to either the U.S. or China.

Chinese Foreign Ministry spokesperson Lu Kang said this week that “the trade friction is provoked by the U.S. side alone” and that China was simply responding. The U.S. disputes that, accusing China of unfair trade and investment rules.

Many leaders expressed hope that a proposed meeting between Trump and Chinese President Xi Jinping in November, at a summit of G-20 countries in Argentina, could soothe the tensions.

But asked whether that meeting would take place, Mnuchin said, “I don’t think any decision has been made.”

Argentina finance minister Nicolas Dujovne speaking to media at the IMF/World Bank meetings in Indonesia on Oct. 11 2018 (Simon Roughneen)

Malaysian finance minister Lim Guan Eng at the IMF/World Bank meetings in Bali, Indonesia on Oct. 10 2018 (Simon Roughneen)

*with Shashank Bengali

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