US-Russia preliminary disarmament talks “constructive”

Rome – The United States and Russia on Friday characterized their first preliminary talks on strategic arms reduction as “constructive” and “very productive.”

The talks between US and Russian diplomats are to prepare the ground for a meeting between US Secretary of State Hillary Rodham Clinton and Russian Foreign Minister Sergei Lavrov on May 7.

Earlier in April US President Barack Obama and his Russian counterpart Dmitry Medvedev agreed during a meeting in London to commit to draw up a new deal on nuclear disarmament to replace the US-Russian strategic weapons reduction programme (START) which expires at the end of 2009. (dpa)

North, South Korea to hold first talks in over a year

London, Apr.21 (ANI): North and South Korea are preparing to hold their first official talks for over a year, amid rising cross-border and regional tensions.
A team headed by an official from Seoul’s unification ministry crossed the heavily fortified border for the meeting at a joint industrial estate just north of the frontier, reports The Telegraph.

Tuesday’s meeting comes amid icy cross-border relations and threats from Pyongyang’s military.

The North is furious with South Korean President Lee Myung-Bak, who has abandoned a policy of providing almost unconditional aid to the communist state.

Regional tensions are also rising after the North’s purported satellite launch on April 5, widely seen overseas as a disguised missile test.

The North, angry at UN censure of the launch, has announced it is quitting nuclear disarmament talks and restarting its atomic weapons programme. It has expelled US and UN nuclear inspectors.

Following the launch South Korea announced it would push ahead with plans to join a US-led initiative against shipments of weapons of mass destruction.

The North says any move by its neighbour to join the Proliferation Security Initiative (PSI) would be seen as a declaration of war.

Analysts believe the North will try to force the South to choose between PSI and the future of Kaesong, using the detainee as a bargaining chip. (ANI)

Regional powers aim to rein in N.Korea-reports

China minister wants U.S. to engage North Korea

* Russian foreign minister may visit Pyongyang

* Two detained U.S. journalists could come into play

By Jon Herskovitz

SEOUL, April 17 (Reuters) – Regional powers may be looking to hold talks with North Korea to prevent the secretive state from restarting its nuclear arms plant and defuse tensions that have rattled regional security, reports and analysts said on Friday.

U.N. nuclear inspectors left North Korea on Thursday after an angry Pyongyang said it would boycott nuclear disarmament talks, expel the inspectors and restart its plant that makes arms-grade plutonium in response to being chastised at the United Nations for launching a long-range rocket about two weeks ago. [ID:nLG123520]

China, the North’s biggest benefactor, wants the United States to engage Pyongyang directly in a bid to ease the escalating tensions, China’s Foreign Minister Yang Jiechi told Japan’s Nikkei newspaper.

“(China) hopes for an improvement and development of U.S.-North Korea relations,” Yang, a former ambassador to Washington, said in an interview in Beijing.

Russian Foreign Minister Sergei Lavrov may go to Pyongyang next week to try and sway the North to return to six-way nuclear talks and abide by a disarmament-for-aid deal, South Korea’s largest daily Chosun Ilbo reported diplomatic sources in Moscow as saying.

China and Russia prevented North Korea from being hit with fresh sanctions for the launch, widely seen as a disguised long-range missile test that violated U.N. resolutions.

But they backed a U.N. Security Council statement on Monday condemning North Korea for the April 5 launch. Until that statement Beijing had avoided open criticism, instead suggesting it was a legitimate satellite launch, as Pyongyang claimed.

Beijing’s handling of impoverished North Korea has wobbled in past days, suggesting policy makers did not anticipate the full force of Pyongyang’s anger.

POWER PLAY

China, whose energy and food aid to North Korea prop up its economy, has the strongest voice in persuading North Korea to return to the sputtering nuclear talks among the two Koreas, China, Japan, Russia and the United States, analysts said. [ID:nSP423380]

North Korea has used its military threat for years to gain global attention and squeeze concessions out of regional powers.

By making these moves early in the administration of new U.S. President Barack Obama, it has more cards to play during his presidency and forces him to make crucial decisions about how it will manage its relations with Pyongyang, analysts said. [ID:nN16549359]

The Obama administration is unlikely to hold direct talks with North Korea over the nuclear threats because it could be seen as a sign of rewarding Pyongyang’s bad behaviour, diplomatic sources have said.

However, North Korea may discuss terms for releasing two U.S. journalists it detained last month near its border with China — Euna Lee and Laura Ling of California-based media outlet Current TV — as a way to engage in direct talks with Washington.

“(The matter) could spark a back-channel negotiation, which could ultimately open the door for bilateral talks later on,” said Yun Duk-min of the Institute of Foreign Affairs and National Security in Seoul.

Market players in North Asia, which accounts for one-sixth of the global economy, have been unfazed by the North’s latest actions seen as typical sabre rattling.

But North Korea could ratchet up tension if it followed through on its threat to restart its ageing Yongbyon nuclear plant, which was being taken apart under the six-way nuclear deal in return for massive aid and better diplomatic standing.

It will take at least a year to resume all activities at the plant, which has produced enough fissile material for six to eight nuclear bombs, experts said.

However, it may only take as little as three months for the North to restore its plutonium separation facility. North Korea could extract enough fissile material for one bomb from fuel rods cooling at Yongbyon, they said. (Additional reporting by Chris Buckley in Beijing, Linda Sieg in Tokyo and Kim Junghyun and Jack Kim in Seoul; Editing by Jeremy Laurence)

North Korea orders U.N. inspectors out

SEOUL (Reuters) – North Korea ordered U.N. inspectors to leave on Tuesday after saying it would quit international nuclear disarmament talks and restart a plant that makes bomb-grade plutonium, the United Nations said.

Secretary of State Hillary Clinton strongly criticized the expulsions and said she hoped the United States and its allies could discuss it with the North.

“We are viewing this as an unnecessary response to the legitimate statement put out of concern by the Security Council,” Clinton told reporters in Washington.

The U.N. Security Council on Monday unanimously condemned North Korea’s rocket launch on April 5 as contravening a U.N. ban and demanded enforcement of existing sanctions.

“Obviously we hope that there will be an opportunity to discuss this not only with our partners and allies but also eventually with the North Koreans,” added Clinton, who was set to meet a senior Chinese official in Washington.

North Korea said in a statement the U.N. action and separate six-country nuclear talks were an infringement of its sovereignty and it “will never participate in the talks any longer nor … be bound to any agreement.”

The statement, carried by the official KCNA news agency, said North Korea would “bolster its nuclear deterrent for self-defense in every way.”

The United Nations’ nuclear watchdog, the International Atomic Energy Agency, said North Korea had ordered U.N. inspectors to leave the reclusive communist country.

“(North Korea) has today informed IAEA inspectors in the Yongbyon facility that it is immediately ceasing all cooperation,” IAEA spokesman Marc Vidricaire said in a statement issued in Vienna.

White House spokesman Robert Gibbs said, “North Korea will not find acceptance by the international community unless it verifiably abandons its pursuit of nuclear weapons.”

Experts said the poor, energy-starved North lacked the technology to make an advanced light-water reactor.

Financial markets in Seoul and Tokyo were not affected by North Korea’s announcement, with investors seeing it as more of the saber-rattling they have come to expect from Pyongyang.

North Korea began taking apart its Soviet-era Yongbyon nuclear plant more than a year ago as a part of a disarmament-for-aid deal it reached with China, Japan, Russia, South Korea and the United States.

The U.N. response to a launch widely seen as a disguised test of a long-range missile will have little immediate impact on the North’s faltering economy and the divided international reaction could embolden leader Kim Jong-il, analysts said.

As well as the United States, Japan and Russia also urged North Korea to return to the often-stalled nuclear talks.

CHINA’S STANCE

But China, which shares a border with North Korea and is the closest thing Pyongyang can claim as a major ally, called on all parties to “pay attention to the broader picture” and exercise “calm and restraint.”

A Foreign Ministry spokeswoman said Beijing still hoped to achieve the denuclearization of the Korean peninsula through dialogue and negotiations.

Experts said the North could have its plant that separates plutonium from spent fuel rods up and running again in as little as three months.

Announcements like this from North Korea are part of a familiar pattern of behavior, and as such it is not likely to be a destabilizing factor for regional economies.

“Market players have come to view belligerent North Korean statements as bargaining ploys that are not to be taken at face value,” said Tim Condon, an economist at ING Financial Markets in Singapore.

Chinese officials had originally called for restraint over the North Korean rocket launch. However, by subsequently joining the U.N. condemnation, Beijing has stoked uncertainty about how it intends to balance ties with Pyongyang against pressure from regional powers.

New U.N. measures may cause Beijing to curb trade in a few items but it will keep its flow of energy, grains and other materials that prop up the North’s broken-down economy.

The U.S.-authored statement, agreed by the five permanent Security Council members and Japan, ordered a committee to begin activating financial sanctions and an arms and limited trade embargo laid down in a resolution 2 1/2 years ago.

North Korea’s leader has basked in patriotic glory stemming from the launch in his state’s propaganda, which has helped him return to the limelight after a suspected stroke in August raised questions about his grip on power.

(Additional reporting by Chris Buckley and Lucy Hornby in Beijing, Sue Pleming in Washington, Yoo Choonsik, Kim Junghyun and Rhee So-eui in Seoul, Linda Sieg in Tokyo; Writing by Ralph Gowling; Editing by Doina Chiacu)

Seoul shares seen down on U.S. data, fall

SEOUL, April 15 (Reuters) – Seoul shares are likely to fall
on Wednesday as weak retail data hurt Wall Street, with techs
likely to be under pressure after Intel Corp (INTC.O) fell
despite solid earnings after failing to give a clear revenue
forecast.

“Seoul shares will probably undergo some correction after
overnight falls in U.S. stocks, but it will not likely be
significant. We think this will be a little bump on the road to
the market’s gradual rebound, said Park So-yeon, a market
analyst at Korea Investment and Securities.

Analysts expected a limited impact from news that North
Korea ordered U.N. inspectors to leave on Tuesday after saying
it would quit international nuclear disarmament talks and
restart a plant that makes bomb-grade plutonium [ID:nSP497987].

“North Korea has more political implications than economic
implications. I do not think investors will pay much attention
to it,” said Kim Se-jung, a market analyst at Shinyoung
Securities.

Elsewhere, Daewoo Shipbuilding and Marine Engineering
(042660.KS) may be eyed after Korea Asset Management Corp, a
state debt clearer, said on Tuesday it would consider the best
time later this year to sell a stake in Daewoo Shipbuilding.
[ID:nSEO91082]

The Korea Composite Stock Price Index (KOSPI) ended
up 0.33 percent at 1,342.63 points on Tuesday.
———————-MARKET SNAPSHOT @ 2246 GMT ————

INSTRUMENT LAST PCT CHG NET CHG
S and P 500 .SPX 841.5 -2.01% -17.230
USD/JPY 98.94 0.13% 0.130
10-YR US TSY YLD 2.79 — 0.000
SPOT GOLD 889.5 0.07% 0.650
US CRUDE CLc1 49.11 -0.61% -0.310
DOW JONES .DJI 7920.18 -1.71% -137.63
ASIA ADRS .BKAS 98.16 -1.95% -1.95
————————————————————-

MARKET SUMMARY *Weak retail sales, Goldman hit Wall Street

[ID:nN14457216] *Oil slips below $50 on demand, inventory
f’casts[ID:nSP458479] *Dollar, yen gain on renewed safe-haven
bid [ID:nN14451216] *Treasuries climb on falling retail
sales data [ID:nN14581335]

STOCKS TO WATCH

KEPCO (015760.KS), POSCO (005490.KS)

State-run Korea South-East Power Corp (KOSEP), a unit of
KEPCO, said on Tuesday it would spend 3.6 trillion won ($2.7
billion) building renewable energy plants with POSCO
Engineering and Construction, a unit of POSCO until 2015.
[ID:nSEO28604]

(Reporting by Jungyoun Park; Editing by Dhara Ranasinghe)

Q+A-What comes next from North Korea?

(For related story, please click on [ID:nPEK161789])

By Jon Herskovitz

SEOUL, April 15 (Reuters) – North Korea ordered U.N. inspectors to leave on Tuesday after saying it would quit international nuclear disarmament talks and restart a plant that makes bomb-grade plutonium, the United Nations said.

Following are questions and answers about the latest crisis and the nuclear disarmament talks among the two Koreas, China, Japan, Russia and the United States:

HOW MUCH OF A THREAT IS THIS TO SECURITY AND MARKETS?

North Korea cannot resume operations at its ageing Soviet-era Yongbyon nuclear plant quickly and its moves this week have caused little immediate impact on security and the investment environment. It has boycotted the six-country talks aimed at ending its nuclear programmes before and made similar moves to restart Yongbyon, which was being taken apart under a six-way disablement-for-aid deal. Market players in North Asia, which accounts for one-sixth of the global economy, have been unfazed by the latest action seen as typical sabre rattling.

However, if North Korea actually followed through on its threat and restarted Yongbyon, it could eventually extract enough material from spent fuel rods cooling at the plant to make one more nuclear bomb, adding to its meagre stockpile of fissile material and making another nuclear test more likely.

WHAT DOES NORTH KOREA WANT?

North Korea has used its military threat for years to gain global attention and squeeze concessions out of regional powers. By making these moves early in the administration of new U.S. President Barack Obama, it has more cards to play during his presidency and forces him to make crucial decisions about how it will manage its relations with Pyongyang.

HOW FAR WILL NORTH KOREA GO?

One of the most provocative moves for North Korea, which experts said has extracted enough plutonium for six to eight nuclear weapons, would be a second nuclear test. The chances of it coming in the next few months are slim because the North’s propaganda apparatus has used a long-range rocket launch this month to herald the country’s technical achievements and rally national pride. This may mean there is little need at present for a nuclear test in order to rally the masses behind leader Kim Jong-il’s “military first” doctrine.

But experts said since the North’s only nuclear test in October 2006 was just a partial success, another is inevitable because it needs one to see if it has built a better bomb design.

HOW DOES KIM JONG-IL’S POOR HEALTH FIT INTO THIS?

Kim, 67, with thinning and greying hair, last week made his first public appearance at a major state event since his suspected stroke in August. He walked with a limp as he took the stage at the annual meeting of the North’s parliament. Analysts said Kim renewed his mandate to lead at the session and reshuffled the leadership underneath him, which could help him pave the way for possible succession in Asia’s only communist dynasty.

The defiant acts are the lifeblood for Kim’s government and the more he thumbs his nose at the world, the more his power increases in his paranoid state, making it easier for him to make changes that will cement his legacy.

WHAT OTHER PROVOCATION MIGHT HE HAVE IN MIND?

Kim may try to stir things up with the South, whose president came into office a year ago and cut off a steady flow of unconditional aid equal to about 5 percent of the North’s GDP.

The North could look to test fire short-range missiles or raise tension near a disputed naval border in order to put pressure on the South to drop its hardline policies.

The North may also test its mid-range ballistic missiles, which can hit all of South Korea and most of Japan, in order to rattle policy makers in Tokyo.

WHAT IS GOING TO HAPPEN AT THE NUCLEAR PLANT?

The main concern for the North is separating plutonium from spent fuel rods cooling at the plant. Even though disablement steps were designed in total to put the plant out of operations for a year, the separation facility could resume operation in as little as three months, experts said.

Experts said part of the plant, which also contains a nuclear fuel fabrication facility and a reactor, may be beyond repair. The North, burdened by import controls on sensitive nuclear equipment, may find it exceedingly difficult to restore operations at the entire plant, limiting the impact of resuming Yongbyon.

WHAT ABOUT THE NUCLEAR TALKS?

Expect more delays for the much-delayed talks. North Korea, which has threatened to quit the talks entirely before, could actually mean it this time, which would lead regional powers to re-evaluate their diplomatic approaches toward Pyongyang.

(Editing by Jeremy Laurence)

Seoul shares down led by banks, Daewoo Ship rises

KOSPI down 0.69 pct

* Banks fall with U.S. peers on Goldman Sachs’ share offering

* Daewoo Shipbuilding, International up on KAMCO’s comments
(Updates to mid-morning)

By Jungyoun Park

SEOUL, April 15 (Reuters) – Seoul shares fell on Wednesday
following losses on Wall Street sparked by weak retail sales
data, with banks leading the decline, but Daewoo Shipbuilding
(042660.KS) outperformed on news regarding a planned stake sale.

The Korea Composite Stock Price Index (KOSPI) was
down 0.69 percent at 1,333.40 as of 0219 GMT.

“The main index had risen for five consecutive weeks and
institutions are moving to book in profits, moves of which
accelerated today after falls in U.S. stocks after weak retail
sale data,” said Kim Joon-kie, a market analyst at SK Securities.

“Shares have been rising on expectation about the broader
economy, so fresh weakness in retail data weakened sentiment.
Investors are being more cautious, wanting to confirm quarterly
results and outlook comments before making investment decisions,”
Kim said, adding that the won’s relative stabilisation had
curbed foreign investor appetite in South Korean shares as well.

Foreigners were sellers of a net 54.4 billion won, and
institutions sold a net 54.36 billion won as of 0217 GMT.

Analysts expected limited impact from news North Korea had
ordered U.N. inspectors to leave on Tuesday after saying it would
quit international nuclear disarmament talks and restart a plant
that makes bomb-grade plutonium. [ID:nSP497987]

“North Korean has more political implications than economic
implications. I do not think investors will pay much attention to
it,” said Kim Se-jung, a market analyst at Shinyoung Securities.

Banks led declines after their U.S. peers dropped on news of
Goldman Sachs’ (GS.N) share offering, sending the S and P financial
index .GSPF 7.68 percent lower.

KB Financial Group (105560.KS) was down 3.18 percent and Hana
Financial Group (086790.KS) declined 3.38 percent.

Meanwhile, Daewoo Shipbuilding and Marine Engineering
(042660.KS) and Daewoo International Corp (047050.KS)
outperformed against the benchmark after Korea Asset Management
Corp (KAMCO) said on Tuesday that it would consider later this
year the timing for a sale of its stake in the firms.
[ID:nSEO91082]

KAMCO owns 19.1 percent of Daewoo Shipyard, the world’s No.3
shipbuilder, and 35.5 percent of Daewoo International, an energy
developing firm.

Daewoo Shipbuilding was up 1.58 percent and Daewoo
International was up 4.01 percent.

Shares in KT and G (033780.KS) also outperformed against the
benchmark index, trading 0.95 percent higher, helped by a
positive brokerage note from Morgan Stanley.

Morgan Stanley said in its note on Wednesday that it expects
the South Korean tobacco monopoly’s first quarter earnings to
beat Morgan Stanley’s earlier earnings estimates.

“We had expected 211 billion won of operating profit and 199
billion won in net income (for the first quarter 2009). However
strong cigarette exports and tight cost control could increase
operating profits, 237 billion won now expected. Thanks to
favourable foreign exchange movements, net income could reach 235
billion won in our view,” Morgan Stanley said.

(Editing by Jacqueline Wong)

Q and A: What comes next from North Korea?

SEOUL (Reuters) – North Korea ordered U.N. inspectors to leave on Tuesday after saying it would quit international nuclear disarmament talks and restart a plant that makes bomb-grade plutonium, the United Nations said.

Following are questions and answers about the latest crisis and the nuclear disarmament talks among the two Koreas, China, Japan, Russia and the United States:

HOW MUCH OF A THREAT IS THIS TO SECURITY AND MARKETS?

North Korea cannot resume operations at its aging Soviet-era Yongbyon nuclear plant quickly and its moves this week have caused little immediate impact on security and the investment environment. It has boycotted the six-country talks aimed at ending its nuclear programs before and made similar moves to restart Yongbyon, which was being taken apart under a six-way disablement-for-aid deal. Market players in North Asia, which accounts for one-sixth of the global economy, have been unfazed by the latest action seen as typical saber rattling.

However, if North Korea actually followed through on its threat and restarted Yongbyon, it could eventually extract enough material from spent fuel rods cooling at the plant to make one more nuclear bomb, adding to its meager stockpile of fissile material and making another nuclear test more likely.

WHAT DOES NORTH KOREA WANT?

North Korea has used its military threat for years to gain global attention and squeeze concessions out of regional powers. By making these moves early in the administration of new U.S. President Barack Obama, it has more cards to play during his presidency and forces him to make crucial decisions about how it will manage its relations with Pyongyang.

HOW FAR WILL NORTH KOREA GO?

One of the most provocative moves for North Korea, which experts said has extracted enough plutonium for six to eight nuclear weapons, would be a second nuclear test. The chances of it coming in the next few months are slim because the North’s propaganda apparatus has used a long-range rocket launch this month to herald the country’s technical achievements and rally national pride. This may mean there is little need at present for a nuclear test in order to rally the masses behind leader Kim Jong-il’s “military first” doctrine.

But experts said since the North’s only nuclear test in October 2006 was just a partial success, another is inevitable because it needs one to see if it has built a better bomb design.

HOW DOES KIM JONG-IL’S POOR HEALTH FIT INTO THIS?

Kim, 67, with thinning and graying hair, last week made his first public appearance at a major state event since his suspected stroke in August. He walked with a limp as he took the stage at the annual meeting of the North’s parliament. Analysts said Kim renewed his mandate to lead at the session and reshuffled the leadership underneath him, which could help him pave the way for possible succession in Asia’s only communist dynasty.

The defiant acts are the lifeblood for Kim’s government and the more he thumbs his nose at the world, the more his power increases in his paranoid state, making it easier for him to make changes that will cement his legacy.

WHAT OTHER PROVOCATION MIGHT HE HAVE IN MIND?

Kim may try to stir things up with the South, whose president came into office a year ago and cut off a steady flow of unconditional aid equal to about 5 percent of the North’s

GDP.

The North could look to test fire short-range missiles or raise tension near a disputed naval border in order to put pressure on the South to drop its hardline policies.

The North may also test its mid-range ballistic missiles, which can hit all of South Korea and most of Japan, in order to rattle policy makers in Tokyo.

WHAT IS GOING TO HAPPEN AT THE NUCLEAR PLANT?

The main concern for the North is separating plutonium from spent fuel rods cooling at the plant. Even though disablement steps were designed in total to put the plant out of operations for a year, the separation facility could resume operation in as little as three months, experts said.

Experts said part of the plant, which also contains a nuclear fuel fabrication facility and a reactor, may be beyond repair. The North, burdened by import controls on sensitive nuclear equipment, may find it exceedingly difficult to restore operations at the entire plant, limiting the impact of resuming Yongbyon.

WHAT ABOUT THE NUCLEAR TALKS?

Expect more delays for the much-delayed talks. North Korea, which has threatened to quit the talks entirely before, could actually mean it this time, which would lead regional powers to re-evaluate their diplomatic approaches toward Pyongyang.

(Editing by Jeremy Laurence)

South Korea set to curtail North arms trade

SEOUL (Reuters) – South Korea is expected to announce as early as Wednesday plans to curtail the North’s suspected trade in weapons of mass destruction, further raising tensions with Pyongyang after the North vowed to quit nuclear disarmament talks.

North Korea said on Tuesday it would re-start a plant that makes bomb-grade plutonium in response to a U.N. rebuke over its launching of a long-range rocket 10 days ago.

The International Atomic Energy Agency (IAEA) has said its inspectors have also been ordered to leave North Korea.

In a move bound to ratchet up tensions, South Korea is poised to reveal it will soon join U.S.-led interception of shipments suspected of carrying parts or equipment for weapons of mass destruction. Pyongyang has said such an action would be considered a declaration of war.

The plan, called the Proliferation Security Initiative (PSI) and joined by 94 countries, would let South Korea stop and board North Korean ships sailing in its territorial waters when suspected of carrying arms or other illicit materials.

North Korea’s threat on Tuesday to quit six-party disarmament talks poses the first big foreign policy test for the Obama administration.

U.S. Secretary of State Hillary Clinton criticized the expulsion of the U.N. nuclear inspectors as an unnecessary provocation but said Washington was ready to talk.

“Obviously we hope that there will be an opportunity to discuss this not only with our partners and allies but also eventually with the North Koreans,” Clinton said in Washington.

North Korea’s expulsion of U.N. nuclear inspectors is a major reversal of steps it took in 2007 halting the operation of the Yongbyon nuclear complex and allowing the IAEA in to seal facilities there.

INSPECTORS EXPELLED

The U.N. Security Council on Monday condemned North’s launch of a long-range rocket, declaring it was a violation of a U.N. resolution adopted in 2006 after the North’s nuclear and missile tests and ordered the enforcement of existing sanctions.

Shipments of energy aid to the North has slowed since last year because of a dispute over how to verify the North’s nuclear inventory under the disarmament deal struck by the South and North Korea, the United States, Japan, Russia and China in 2005.

Experts said the North could have its plant that separates plutonium from spent fuel rods up and running again in as little as three months.

Announcements like this from North Korea are part of a familiar pattern of behavior and as such it is not likely to be a destabilizing factor for regional economies.

Japan’s conservative Yomiuri newspaper sounded a warning that the six-way nuclear disarmament talks may be about to fall apart and pressed China, the North’s key ally and main benefactor, to do more.

“As the North’s largest trading partner and biggest supporter, we hope China will take every effective measure it can against Pyongyang, including a strict application of sanctions on the nation,” the daily said in an editorial.

China has called for calm and restraint from all sides in the six-party talks while expressing hope that the negotiations it hosts would resume.

New U.N. measures may cause Beijing to curb trade in a few items but some analysts said it is likely to maintain its flow of energy, grains and other materials that prop up the North’s broken-down economy.

(Editing by Nick Macfie and Jeremy Laurence)

North Korea’s Kim Jong-il re-elected to top post

London, Apr 9 (ANI): North Korean parliament has re-elected the country’s supreme leader Kim Jong-Il to his most powerful post, chairman of the National Defence Commission, even as the international diplomatic deadlock persisted over last weekend’s missile test by Pyongyang.
The Korean Central News Agency (KCNA) said that the election “is all the servicepersons’ and people’s expression of unquestioned support and trust in him,” adding that Kim has performed the immortal exploits to shine long in the history of the country.

Kim is also head of the ruling Workers’ Party and supreme commander of the 1.2 million-member military.

Analysts had been hoping to glean further information by watching Kim at the Assembly, however the initial reports from Pyongyang’s state media did not make clear whether Kim had actually presided over his re-election in person, The Telegraph reported.

The 67-year-old military dictator, who is believed to have suffered a stroke last August, capped a week of jubilant domestic propaganda in North Korea as Kim’s military leadership sought to capitalise on Sunday’s missile test.
China and Russia continue to block calls from the US, Japan and South Korea for a United Nations motion censuring the North for breaching a 2006 resolution banning Pyongyang from conducting missile tests.

China and Russia have expressed concern over the missile test and are advocating a soft approach to bring North Korea back to the negotiating table and the Six Party talks on nuclear disarmament, which have been stalled since December. (ANI)

Q+A – What next in the North Korean crisis?

The U.N. Security Council remains divided over how to respond to North Korea’s rocket launch, two days after the missile flew over Japan.

Following is what might happen next in the crisis.

WHAT CAN BE EXPECTED AT THE UNITED NATIONS?

Diplomatic sources said the most that can be expected from the Security Council is a call to tighten existing sanctions on North Korea and a statement of concern over the launch.

China, which shares a long border with the North and is the closest Pyongyang can claim as a major ally, would be the key player in tightening existing sanctions. But Beijing is reluctant to do so because it fears taking action that might destabilise the impoverished North.

U.N. sanctions were imposed after North Korea conducted a nuclear test and other missile exercises in 2006. The punishment includes financial sanctions as well as a ban on the trade in any material that could be used in the North’s weapons of mass destruction programmes.

North Korea has threatened to quit six-party nuclear talks and restart its plant that makes plutonium if it is punished for launching a rocket many saw as a disguised long-range ballistic missile test.

WHAT SORT OF PROVOCATIONS MIGHT BE IN STORE?

North Korea, which has a history of using its military threat to squeeze concessions from major powers, may boycott the six-way nuclear disarmament talks if it is punished. It has done this several times. Since there is little momentum now to resume talks among the two Koreas, China, Japan, Russia and the United States, a boycott might not cause much damage to the often-delayed process that began in 2003.

A more provocative move would be if North Korea restarted its Soviet-era Yongbyon nuclear plant, which was being dismantled under a disarmament-for-aid deal it reached with the five powers in 2005.

The North has mostly implemented steps meant to put the plant out of business for at least a year. But proliferation experts said it may look to restart the facility that separates arms-grade plutonium from spent fuel rods. It may take as little as three months to resume operations at this facility, they said.

WHAT ABOUT ANOTHER NUCLEAR TEST?

North Korea’s propaganda has used the launch to herald the country’s technical achievements and rally national pride. This may mean there is little need for a nuclear test to rally the masses behind leader Kim Jong-il’s “military first” doctrine.

But experts said since the North’s only nuclear test in October 2006 was just a partial success, another is inevitable because it needs one to see if it has built a better bomb design.

Another nuclear test would be one of the biggest cards North Korea could play. It would be done at a time to garner maximum political effect, analysts said.

WHAT HAPPENS TO THE NUCLEAR TALKS?

The sputtering six-party talks are likely headed for more delay. The missile launch changed the dynamics by increasing the North’s leverage in the discussions, experts said, which could lead Pyongyang to try to water down some existing obligations and resist calls from the five dialogue partners to agree to a nuclear inspection system, if it shows up at all.

North Korea may also try to set up separate, bilateral missile talks with the United States, as it did after sending a Taepodong-1 missile over Japan in 1998, in an attempt to win concessions from new U.S. President Barack Obama and isolate Washington from allies South Korea and Japan.

WHAT ABOUT UNILATERAL MEASURES?

Japan is looking to extend and perhaps broaden its existing sanctions but that will not cause much pain for Pyongyang because the economic influence is so small.

South Korea’s conservative government halted unconditional aid last year when it took office. This aid had a value equal to about 5 percent of the North’s annual economy. The South could shut a joint factory park located just north of their heavily armed border that supplies Pyongyang’s leaders with cash, but Seoul so far has rejected that idea.

The United States may consider placing North Korea back on its terrorism blacklist. This could hurt its international trade and limit its ability to tap into global finance.

WILL NORTH KOREA TEST MORE MISSILES?

Impoverished North Korea is unlikely to fire another Taepodong-2 long-range missile soon due to the high cost.

Pyongyang will likely refrain from testing its mid-range ballistic missiles because that would undermine its argument that Sunday’s launch was for the peaceful purpose of putting a satellite into orbit.

It may, however, test-fire short-range missiles to raise tension with South Korea. The North has said it would see Seoul’s plan to join a U.S. initiative to halt the proliferation of weapons of mass destruction as an act of war and may feel it needs to raise tension with its rich neighbour in response.

India proposes prohibition of nuclear weapons

New Delhi, Feb 7 (ANI): India has proposed an international convention for complete prohibition of nuclear weapons to reduce the dangers posed by atomic weapons to humanity.

National Security Adviser M K Narayanan on Saturday said that India is perhaps the only nuclear weapons state to openly favour negotiation of a Nuclear Weapons Convention leading to global non-discriminatory and verifiable elimination of nuclear weapons.

Addressing an international security conference in Munich, Narayanan declared that India advocate’s global verifiable and non-discriminatory nuclear disarmament.

He urged for a universal legal binding agreement on non-use of nuclear weapons.

Narayanan also expressed regret on the failure in bringing change in the centrality of nuclear weapons in the security doctrines of the major nuclear weapon powers, even after the end of the Cold War.

Referring to the Action Plan proposed by India at the UN General Assembly in 1988 for complete elimination of all nuclear weapons in stages by 2010, he said “by far the most comprehensive initiative” is relevant even today.

The other proposals include reaffirmation of reduction of the salience of nuclear weapons in security doctrines, de-alerting nuclear weapons to prevent unintentional or accidental use of nuclear weapons. (ANI)

N. Korea can be made to give up its nuke weapons in half-a-day: Carter

New York, Jan.27 (ANI): Former US President Jimmy Carter has said that North Korea can be talked into surrendering its nukes in “half a day.”

Carter was quoted by Fox News as saying during an Associated Press interview on Monday that he believed North Korea would be willing to give up its nuclear weapons for U.S. diplomatic recognition, a peace deal with South Korea and America, and if it got new atomic power reactors and free fuel oil.

“It could be worked out, in my opinion, in half a day,” Carter said.

Last week, North Korea’s Foreign Ministry said it would give up its nuclear weapons only if Washington establishes diplomatic relations with the regime and the U.S. ceases to pose a nuclear threat to the North — an apparent reference to Pyongyang’s long-standing claim that American nuclear weapons are hidden in South Korea.

Both Seoul and Washington deny the accusation.

“I went over there in 1994 and I worked out a complete agreement with (former North Korean President) Kim Il Sung to eliminate all nuclear programs, and to let International Atomic Energy Agency inspectors come in without impediment,” Carter said.

“President Clinton adopted that and put it into effect,” in effect agreeing to give North Korea fuel oil and modernized, safe atomic reactors in exchange for dismantling its old reactors and allowing unfettered U.N. inspections, he added.

Carter’s and Clinton’s deals to dismantle the North Korean nuclear program — then consisting of reactors with only a theoretical weapons-building capacity — were shelved when President George W. Bush took office in 2001.

Anxious to dismantle the country’s atomic program, five regional powers hashed out a 2007 deal promising energy and other aid to Pyongyang in exchange for nuclear disarmament, but the agreement has been hindered by disputes between North Korea and the United States over how to verify what nuclear activities the country had undertaken in past decades.

Carter believes the deal could be accomplished almost instantly, with good will. (ANI)