South Korea's Ban in China to discuss N.Korea missile

BEIJING, June 27 (Reuters) South Korean Foreign Minister Ban Ki-moon today met Chinese leaders for talks expected to focus on how to prevent North Korea from test-firing a missile.

Ban, who arrived late on Monday, met his Chinese counterpart Li Zhaoxing for talks analysts said would also include possible actions should North Korea go ahead with the launch.

He was also due to meet State Councillor Tang Jiaxuan.

''He may talk with Beijing and come up with a plan to try to control the damage (in the event of a launch),'' said Lai Hongyi, a scholar at Singapore's East Asia Institute.

US officials say there is evidence North Korea may have finished fuelling a Taepodong-2 missile for a test launch, which Washington, Seoul and Tokyo have said would present a grave threat to regional security.

South Korea sharpened its rhetoric on Monday, warning there would be a price to pay if the North went ahead with the test.

A traditional Communist ally of North Korea and host to six-party talks aimed at dismantling its nuclear programme, China is seen as having special leverage over the North, especially as the provider of about 70 percent of its oil.

But Beijing's response has been more muted to the missile dispute, urging all sides to ease tensions and resolve problems through negotiations, and analysts say it would be unlikely to use the threat of withholding aid.

''China would want to keep their leverage, rather than using it all up. North Korea would likely not be swayed by the threat anyway,'' said a Western diplomat.

But Beijing would be wary of a missile launch that could destabilise the balance of power in the region and potentially spur militarisation in Japan whose World War Two aggression still clouds relations with China.

''China doesn't like brinkmanship-style diplomacy,'' said Lai.

In a sign of its close relations with Pyongyang, China hosted North Korean Foreign Minister Paek Nam-sun last month, and a North Korean military delegation last week.

Experts believe North Korea could launch a long-range ballistic missile but the drawn out waiting period has led to speculation the North is to use the threat of a test to gain international attention and bargaining leverage with Washington.

But Pyongyang has made good on its threats in past.

In 1998 it shocked the world when it test-fired a missile that flew over Japan and landed in the Pacific Ocean.

A South Korean official today said that North Korea agreed to allow a US official to visit an industrial park in the communist state.

Jay Lefkowitz, the US special envoy on human rights in North Korea, could visit the Kaesong Industrial Park run by an affiliate of the South Korea's Hyundai group next month.

Reuters SY GC1043