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US envoy discusses N.Korea power transfer during Seoul visit

S.Korea to suspend Iranian bank as part of sanctions
Seoul (AFP) Oct 7, 2010 - South Korea will suspend the operations of an Iranian bank for two months, financial regulators said Thursday, as part of international sanctions over Tehran's suspected nuclear weapons programme. The Seoul branch of Bank Mellat will be suspended from October 11 for violating laws on foreign exchange transactions, the Financial Services Commission said. "Its operations in Seoul will remain virtually paralysed as most of its business is related to foreign exchange transactions," a commission official told AFP. Bank Mellat is one of Iran's biggest lenders and its Seoul branch is its only operation outside the Middle East and Europe. A suspension of its business would likely affect more than 2,000 South Korean companies involved in trade with Iran, most of which is settled through the local branch office.

Iran says its nuclear programme is aimed at the peaceful generation of electricity. But the European Union, Canada, Australia and Japan have joined the United States in announcing punitive measures. The suspension came a month after South Korea announced a package of sanctions against Iran in line with US-backed United Nations action. The measures included blacklisting 24 individuals and 102 Iranian entities, including 14 other banks, as well as the strengthening of inspections of cargoes related to Iran. There were also restrictions on new investment in Iran's oil and gas industry, but no Iranian ban on oil imports which provide 10 percent of South Korea's needs. South Korea also reduced export guarantees for shipments to Iran. Trade between the two countries was worth 9.74 billion dollars last year.
by Staff Writers
Seoul (AFP) Oct 7, 2010
A senior US official held talks in South Korea Thursday about North Korea's apparent preparations for a power transfer, after the heir apparent to Kim Jong-Il made another public appearance.

Assistant Secretary of State Kurt Campbell said Seoul and Washington needed to "remain in lockstep" in responding to developments in the nuclear-armed nation.

He also stressed that the North must mend ties with the South and show commitment to denuclearisation before international disarmament negotiations can resume.

"What's most important... is to ensure the US and South Korea will remain in lockstep and are extraordinarily closely engaged on mutual assessments in terms of developments in North Korea," the top US diplomat for East Asia told reporters.

Campbell, who arrived from Tokyo, said his talks with Deputy Foreign Minister Kim Jae-Shin and chief nuclear envoy Wi Sung-Lac gave him a chance "to discuss developments last week in terms of the party congress in North Korea".

The meeting, the biggest in three decades, gave Kim Jong-Il's youngest son Jung-Un powerful party posts, a day after his ageing father had named him a four-star general.

Pyongyang's official media said Thursday the young protege attended a concert with his father, his second reported public appearance in a week after he cemented his status as leader-in-waiting.

Media said Tuesday that the two watched a military exercise staged to mark a Workers' Party anniversary this coming Sunday. The North is reportedly also planning a huge military parade to commemorate the event.

The likely eventual next leader remains a mystery to the outside world. Until last week the Swiss-educated young man, believed aged about 27, had never had his name or photograph published in official media.

His 68-year-old father suffered a stroke two years ago and is thought since then to have speeded up succession planning.

The South's Unification Minister Hyun In-Taek, in charge of cross-border relations, said the North was entering a "era of major transformation" during succession preparations.

"Such a change bears innate uncertainties politically, economically and socially," he told a forum Thursday.

"Whether the uncertainties will be resolved, deepen or continue is something to be watched carefully."

Inter-Korean relations have been icy since Seoul in May accused Pyongyang of attacking a South Korean warship and killing 46 sailors, a charge the North has angrily denied.

The North has, however, recently made conciliatory gestures to the South.

It has also indicated willingness in principle to return to six-nation nuclear disarmament talks that it abandoned in April 2009, a month before its second atomic weapons test.

Campbell urged Pyongyang to mend ties with Seoul first and show it is serious about nuclear disarmament.

"The first step has to be a re-engagement between South Korea and North Korea. We are looking forward to a clear and demonstrable commitment on the part of North Koreans to fulfil commitments that they made on denuclearisation in 2005," he said, referring to an aid-for-disarmament pact that year.

The North's intentions remain unclear, with recent satellite photos suggesting it may be restoring facilities at the Yongbyon reactor which produced weapons-grade plutonium.

Pyongyang closed down the complex in 2007 under its disarmament deal, but announced after quitting the forum that it would restart operations there.

A senior Seoul presidential aide said this week the North's nuclear programme had reached a "very alarming level".

"If the nuclear warheads are made compact and deployed to the field, they could wreak immense havoc on South Korea regardless of their precision level," Kim Tae-Hyo, the president's deputy national security adviser, told a forum.



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NUKEWARS
N.Korea's nuclear threat reaches "alarming level": official
Seoul (AFP) Oct 6, 2010
North Korea's nuclear programme has reached a "very alarming level" and could cause havoc in South Korea if Pyongyang develops smaller mobile weapons, a senior Seoul presidential aide says. "North Korea's nuclear threat has progressed at a rapid pace and reached a very alarming level, while the nuclear programmes are evolving even now," JoongAng Ilbo newspaper quoted Kim Tae-Hyo as telling ... read more







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