Japan tightens sanctions squeeze on North Korea

TOKYO, Sep 19: Japan's cabinet approved new financial sanctions against North Korea today, cranking up pressure on the reclusive communist state to return to six-country talks on ending its nuclear programme.

Government officials said the step effectively freezes remittances and the transfer of funds from Japan by groups suspected of links to North Korea's weapons of mass destruction or missile programmes.

The clampdown is in line with a United Nations resolution passed after North Korea, defying international warnings, test-fired seven missiles into the sea in July.

''This shows the resolve of the international community and Japan,'' Chief Cabinet Secretary Shinzo Abe told a news conference.

Abe, known for his hard line on North Korea, is expected to be elected president of Japan's ruling party tomorrow, ensuring that he succeeds Prime Minister Junichiro Koizumi when parliament convenes on September 26.

The move prompted swift criticism from China.

''China has consistently advocated resolving issues through dialogue and has opposed sanctions,'' Chinese Foreign Ministry spokesman Qin Gang said.

''All sides should focus on how to turn things around and promote a restart to the six-party talks as soon as possible.'' The UN Security Council voted unanimously in July for the resolution demanding North Korea halt its ballistic missile programme and requiring nations to prevent Pyongyang from acquiring dangerous weapons.

Pyongyang agreed a year ago to forgo its nuclear ambitions in return for aid, security assurances and diplomatic ties.

But it has refused to return to the six-party talks with China, Japan, Russia, South Korea and the United States since last November, when efforts to put words into action broke down.

South Korea's Yonhap news agency quoted South Korea's ambassador to the United States as saying that officials from Japan, South Korea and the United States would meet as early as next week to discuss the North Korean nuclear issue.

ASSETS FROZEN

Japan's new sanctions affect 15 groups and one individual, including 12 North Korean trading houses and one commercial bank, the government said in a statement. On the list are 12 groups already affected under sanctions by the United States, including Tanchon Commercial Bank, plus Korea Tonghae Shipping Company, Pyongyang Informatics Centre and Ponghwa Hospital.

The individual is Jakob Steiger, 65, president of Kohas AG, a Swiss company which is also on the list.

Those targeted would need to obtain government permission to remit or withdraw money from Japanese bank accounts.

''The measures will effectively freeze assets held in Japan by those designated by Japan's government,'' a Foreign Ministry official said.

Japan reacted angrily to North Korea's July 5 missiles, which splashed into the sea off its west coast, saying Pyongyang's arsenal posed a threat to national security.

It banned from its ports for six months a ferry that provided the only direct passenger link between the two countries, and barred the entry of North Korean government officials.

The pro-Pyongyang General Association of Korean Residents in Japan called the financial sanctions ''regrettable'' and called on Tokyo to withdraw all measures, including the ban on the ferry.

''Sanctions and pressure can not resolve problems, but will only intensify tensions,'' the group said in a statement.

Australia took similar action against Pyongyang today, slapping sanctions on foreign exchange transactions involving North Korean firms in the chemical and machinery sectors, among others.

''This supports and complements similar action taken by Japan today and previous actions taken by the United States, and sends a strong message to North Korea,'' the Australian Foreign Ministry said in a statement.

A US crackdown on North Korea's finances has made it difficult for North Korea to do banking anywhere in the world.

An official at South Korea's Woori Bank today said that Pyongyang tried to open accounts last December but was rebuffed.

REUTERS