
By CNNMoney's Charles Riley
The Pentagon has accused China of trying to extract sensitive information from U.S. government computers, the latest in a series of rhetorical skirmishes between the two countries on the issue of cyberattacks.
The frank assessment, made in an annual report to U.S. lawmakers on Chinese military capabilities, is the harshest and most detailed set of accusations made thus far by the Obama administration.
"In 2012, numerous computer systems around the world, including those owned by the U.S. government, continued to be targeted for intrusions, some of which appear to be attributable directly to the Chinese government and military," the report said.
The Pentagon said China is carrying out the attacks in an effort to extract information from "diplomatic, economic and defense industrial base sectors that support U.S. national defense programs." The intellectual property and data is likely being used to bolster China's own defense and high tech industries, the report said
FULL STORYBy Jim Clancy
A week of critical diplomacy is set to begin in Washington, Beijing and Pyongyang. But the sides are so far apart, at least in public declarations, it is impossible to predict where any diplomatic efforts will lead.
North Korea continues to hold fast to the position that its nuclear and ballistic missile programs are non-negotiable. Pyongyang's official news agency says the North wants U.N. Security Council sanctions lifted. The sanctions were put in place after North Korea launched a three-stage rocket last December that put a satellite in orbit. More sanctions were added when the North conducted its third underground nuclear test in February.
By Pam Benson and Chris Lawrence
Despite the uproar over a disclosure this week of Pentagon intelligence concluding North Korea may be able to deliver a nuclear weapon on a ballistic missile, it's not the first time the Defense Intelligence Agency has suggested Pyongyang had that capability.
Since 2005, two former DIA chiefs have raised the possibility during congressional testimony.
At a Senate Armed Service Committee hearing in April 2005, then-DIA director Vice Admiral Lowell Jacoby acknowledged the possibility in response to a question about whether North Korea had the capability to put a nuclear device on a missile.
"The assessment is that they have the capability to do that," Jacoby said.
FULL POST
U.S. Secretary of State John Kerry arrived in South Korea on Friday for a trip likely to focus on North Korea's recent nuclear threats and provocations.
Kerry, who landed in Seoul, is about 30 miles (48 kilometers) from the demilitarized zone that separates the two countries. The Korean peninsula is rife with tensions over the belligerent threats issued by Pyongyang.
Shortly after his arrival, Kerry told reporters at a news conference with the South Korean foreign minister that the United States and South Korea agree that North Korea will not be accepted as a nuclear power.
"The rhetoric that we are hearing is simply unacceptable,” Kerry said.
Kerry also said that the United States is prepared to enter into talks with North Korea, but only if the North is serious about negotiating the denuclearization of the Korean peninsula.
By Jill Dougherty
The Obama administration says China is increasingly frustrated by the provocative actions of North Korea and Secretary of State John Kerry will try to convince leaders in Beijing that Pyongyang is, as one senior administration official said, "putting China's own interests at risk."
Briefing reporters on Kerry's plane as he flew from London to the first stop on his four-day Asian tour, that official and a senior State Department official said the administration is urging China to use its leverage with the North "otherwise it is very destabilizing."
FULL POST
By Elise Labott
When he visits Asia later this week, Secretary of State John Kerry will discuss potential diplomatic incentives for North Korea once it stops its bellicose rhetoric and threatening behavior, senior administration officials tell CNN.
Officials warn any resumption of talks with North Korea is premature, and could only come once Pyongyang adheres to its international obligations. But they say Kerry hopes the new emphasis on diplomacy will give the North Koreans a face-saving way to de-escalate the current situation.
"Secretary Kerry agrees that we have to have a robust deterrent because we really don't know what these guys will do," one senior official said. "But he also knows that the North Koreans need a diplomatic off-ramp and that they have to be able to see it."
Kerry left Saturday for the Middle East and then for London before traveling to Seoul, Bejing and Tokyo later next week. FULL POST
Defense Secretary Chuck Hagel quoted President Dwight D. Eisenhower Wednesday, telling rising military officers "the wise and prudent administration of the vast resources required by defense calls for extraordinary skill."
In his first major policy speech since taking over the Pentagon, Hagel focused on the budget problems facing the Defense Department and the rest of the government.
"A combination of fiscal pressures and a gridlocked political process has led to far more abrupt and deeper reductions than were planned for or expected. Now DoD is grappling with the serious and immediate challenge of sequester - which is forcing us to take as much as a $41 billion cut in this current fiscal year," Hagel said at the National Defense University at Fort McNair.
FULL POST
By Chris Lawrence
While North Korea continues to elevate threats against the United States and its allies, the Pentagon has not seen anything "out of the ordinary" around key missile sites, a defense official told CNN on Friday.
But the heightened rhetoric over nuclear attacks, so far unmatched by any actual military moves, has no foreseeable endgame, a second defense official said.
"This could go on for a while, and we could see variations of the rhetoric," the second official said.
North Korean leader Kim Jong Un has approved a plan to put rockets on standby to fire at U.S. targets, including the American mainland and military bases in the Pacific and in South Korea, state media reported Thursday.

