Japan punishes firm for device export to N.Korea

TOKYO, Nov 17 (Reuters) Japan's Trade Ministry said today it had punished a Tokyo-based trading firm for illegally exporting to North Korea a device that could be used to produce biological weapons.

The ministry said the Meisho Yoko trading firm, run by an ethnic pro-Pyongyang Korean, exported a single freeze dryer to North Korea via Taiwan without approval from the trade ministry in September 2002.

Under the punitive measures announced today, the firm and its president will be barred from exporting goods for eight months from November 24, the ministry said.

Freeze dryers, usually used to produce instant coffee granules or instant noodles, can be used to dry and store bacteria -- part of the process of making biological weapons, Japanese officials said.

To prevent the proliferation of weapons of mass destruction, companies are required to seek government approval for exports of ''dual-use instruments'', or civilian devices that can be used for military purposes.

An increasing number of firms in Japan have been investigated in recent years on suspicion of illegally exporting such machinery to North Korea.

The US State Department said in a report in 2005 that North Korea could probably produce enough biological agents for military purposes.

Japan on Tuesday decided to impose a ban on exporting luxury goods to North Korea in a move experts say could hit the ruling elite, whose lavish lifestyle is in stark contrast to that of most citizens of the impoverished communist state.

After Pyongyang test-launched seven missiles on July 5 and conducted a nuclear test on October 9, Tokyo toughened its stance and implemented a package of sanctions.

The punitive steps included banning visits by a North Korean ferry long suspected of having been involved in transporting parts for North Korea's missile programmes.

The United Nations Security Council has approved a resolution that among other measures blocks trade with North Korea in luxury goods following Pyongyang's nuclear test.

REUTERS SHB DS1332