Nuclear test possible, says pro-North Korea paper

SEOUL, Aug 26 (Reuters) A nuclear test by North Korea cannot be ruled out if the United States steps up what Pyongyang calls its hostile policy towards the communist country, a pro-North Korea newspaper published in Japan said today.

The news comes amid reports that Pyongyang might be preparing a nuclear bomb test.

''We cannot say for sure there will be no nuclear test by North Korea to strengthen its self-defence, if the Bush administration steps up the hard-line stance in military and other areas,'' said an editorial in Chosun Sinbo, run by ethnic North Koreans living in Japan.

The editorial, posted on the newspaper's Web site, said last month's North Korean missile tests were also a response to Washington's threats, notably financial sanctions targeting Pyongyang and joint military exercises with South Korea.

Pyongyang today reiterated its long-held stance that it would not resume negotiations on ending its nuclear weapons programmes until the US financial sanctions were lifted.

''The biggest obstacle that keeps us from joining the talks is the US financial sanctions,'' the North Korean Foreign Ministry said in a statement carried by the official KCNA news agency.

Six-nation talks aimed at scrapping Pyongyang's nuclear programmes broke down in late 2005 over a US crackdown on firms Washington suspects of helping the North in counterfeiting and other illicit activities. North Korea denies any such activities.

''Our position is that we should implement the joint statement on equal footing,'' it said, referring to an agreement reached at a six-party meeting last September. ''We want more six-party talks as we have more to gain from this agreement.'' At that time, the North agreed to scrap its atomic ambitions in exchange for economic aid, security assurance and greater diplomatic recognition.

Pyongyang declared in February 2005 that it possessed nuclear weapons. US and Japanese news reports have said the North might be preparing to conduct an underground nuclear test.

In July, the communist state defied international warnings and test-fired seven missiles, prompting condemnation by the U N Security Council.

South Korean Defence Minister Yoon Kwang-ung yesterday said his government was certain North Korea has a nuclear weapon but there was not enough evidence to conclude the North was about to conduct its first weapons test.

REUTERS DKA VV1621