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N. Korea 'may collapse unless it scraps nukes'

N. Korea to set up new trade zone for China: report
Seoul (AFP) Jan 17, 2011 - North Korea has worked out a special law to set up another free trade zone on a river island on its western border with China, a report said Monday. The law will be made public when China completes negotiations on its investment in the zone on the Yalu River, the South's Yonhap news agency said. The island, called Hwanggumpyong in Korean and Huangjinping in Chinese, is separated by a narrow waterway from the jurisdiction of the Chinese city of Dandong. A memorandum of understanding on joint development of the zone mainly with Chinese money was signed last December, it said, citing a Chinese source who recently visited Pyongyang.

The North's state media said last February that the two sides had signed a deal to build a new cross-border bridge on the Yalu River as part of a major economic package announced by Beijing. The isolated North has also strived to revitalise a free trade zone in Rason near its border with China and Russia. Rason became a special economic zone in 1991 but never fulfilled its proposed role as a transport hub. A Chinese state company plans to invest about $2 billion in a project to build up Rason into a regional export base, a Seoul newspaper reported earlier this month. Tough United Nations sanctions brought by the North's pursuit of ballistic missiles and atomic weapons have hurt its economy, restricting the communist state's access to international credit. But China, Pyongyang's sole major ally, has actively explored investment opportunities in North Korea.
by Staff Writers
Seoul (AFP) Jan 17, 2011
North Korea could bring about its own collapse if it keeps pouring resources into nuclear and conventional weapons, South Korea's national security adviser said in an interview to be screened Monday.

Chun Yung-Woo argued in the interview with US public broadcaster PBS that the Pyongyang regime faces so severe an economic crisis that it could collapse sooner than expected.

The "energy for change is growing" and will reach "critical mass" at some point in the impoverished communist state, he said in excerpts posted on the PBS website.

"We have shut down major channels of cash flow annually into North Korea" through sanctions, Chun said, adding that the North's continued spending on military capabilities "would be a short-cut to their demise".

South Korean officials rarely comment publicly on the prospect of the regime's downfall in the communist North, although President Lee Myung-Bak has been stressing the need to prepare for reunification.

Chun said the North could not resolve its "existential" economic problems -- which include chronic food shortages -- on its own. The country is in a dire state of economic collapse exacerbated by severe flooding last year.

"But the only way they can obtain massive outside assistance, which will be enough to turn the tide around, is denuclearisation," Chun said.

The foreign ministry said Chun's comments do not indicate a new stance.

The South's "North Korea policies are not based on any assumption about the North's potential collapse, and (we) are seeking practical reconciliation and cooperation through dialogue", said spokesman Kim Young-Sun.

China's President Hu Jintao, in a written interview with the Washington Post and the Wall Street Journal before this week's visit to Washington, called for an early resumption of six-party talks on the North's nuclear disarmament.

The talks -- chaired by China -- also group the two Koreas, the United States, Russia and Japan.

But South Korea insists it will not resume dialogue with the North, despite several recent approaches from Pyongyang, until it accepts responsibility for attacks in recent months and expresses regret.

The North on November 23 bombarded a South Korean border island, killing two Marines and two civilians.

The United States and South Korea also accuse it of torpedoing a South Korean warship last March with the loss of 46 lives, a charge it denies.

Kim said Seoul is closely watching Hu's visit and coordinating its policies on Pyongyang with Washington.

What is most important is to see a "sincere change of stance" from the North, he told a briefing.

"In this regard, we hope that the Chinese government...will play a responsible role in (keeping) peace, stability and denuclearisation of the region."



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NUKEWARS
China denies N. Korea troop plan
Beijing (AFP) Jan 17, 2011
Beijing denied Monday that it was in talks with North Korea about stationing Chinese troops in the isolated state. Foreign ministry spokesman Hong Lei said a plan to deploy troops "does not exist", when he was asked about a report that appeared in South Korea's Chosun Ilbo newspaper at the weekend. The Chosun Ilbo on Saturday cited an official at the South's presidential Blue House as sa ... read more







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