We know best on North Korea, South's president says

CANBERRA, Dec 6 (Reuters) South Korea's president said today other nations should pay heed to his government's decision not to support stronger interception of North Korean ships suspected of smuggling weapons.

Roh Moo-hyun said his country would suffer most from confrontation with the North, and had taken a strategic decision to avoid conflict with Pyongyang.

The United States has been pressing South Korea to take a stronger stand against North Korea following Pyongyang's October 9 nuclear test and a UN Security Council resolution urged more inspection of cargo bound for the secretive state.

''Korea knows the North Koreans the best. We are experts in fact in dealing with them,'' Roh said through an interpreter at a state luncheon in Australia's parliament.

''I think the international community would do well to heed the views of my government and the expertise of my government in dealing with this issue.'' Roh, on his first visit to Australia as part of a trip through Southeast Asia and Oceania to discuss trade, security and North Korea's nuclear weapons programme, said his country had imposed tough sanctions on North Korea, in line with the UN resolution.

But South Korea did not support an extension of the Proliferation Security Initiative (PSI), launched by the United States in 2003 to guard against the proliferation of weapons of mass destruction.

''My government's position is it is wise to restrain from actions that could cause a physical armed confrontation between the two Koreas,'' Roh earlier told reporters after talks with Australian Prime Minister John Howard.

''For peace in the region, we are making appropriate and strategic decisions.'' North Korea has agreed to return to stalled six-nation talks alongside South Korea, the United States, Japan, China and Russia to discuss scrapping its nuclear programmes.

Australia, a strong supporter of the PSI, has offered to send a navy ship, if needed, to help intercept North Korean vessels after Pyongyang's nuclear test.

During the talks, Roh said Australia and South Korea had agreed to a joint feasibility study into a free-trade agreement, but said Australia was more enthusiastic about the proposal.

South Korea is third largest market for Australian exports, with two two-way trade worth about A18 billion dollar (14 billion dollar) in 2005-06.

Australia has a A billion trade surplus with South Korea and sells coal, oil, iron ore, wheat and liquefied natural gas to Seoul, buying back cars and computer equipment.

Australia is also home to 26,000 South Korean students.

REUTERS SP HS1049