DATE=7/13/99
TYPE=CORRESPONDENT REPORT
NUMBER=2-251703
TITLE=JAPAN / NORTH KOREA (L-ONLY)
BYLINE=KARRIN AMODEO
DATELINE=TOKYO
CONTENT=
VOICED AT: 

INTRO:  JAPAN SAYS IT MAY WITHDRAW FUNDING FOR TWO NUCLEAR POWER 
PLANTS IN NORTH KOREA -- IF PYONGYANG TEST FIRES ANOTHER 
LONG-RANGE MISSILE.  THERE IS MUCH SPECULATION IN JAPAN THAT THE 
COMMUNIST GOVERNMENT WILL GO AHEAD WITH THE LAUNCH  IN THE NEXT 
FEW MONTHS.  SOUTH KOREA, JAPAN AND THE UNITED STATES HAVE WARNED
PYONGYANG THAT THEY WILL CUT OFF ALL BUT THE MOST BASIC 
HUMANITARIAN AID TO THE FAMINE-STRICKEN COUNTRY IF IT GOES AHEAD 
WITH MILITARY TESTS.  KARRIN AMODEO REPORTS FROM TOKYO.

TEXT:  TUESDAY MORNING JAPAN'S CABINET APPROVED ONE BILLION 
DOLLARS IN INTEREST-FREE LOANS FOR AN INTERNATIONAL CONSORTIUM 
DEVELOPING NUCLEAR POWER IN NORTH KOREA.  THE LOANS ARE BASED ON 
A 1994 AGREEMENT THAT PYONGYANG FREEZE ITS NUCLEAR AND MISSILE 
DEVELOPMENT PROGRAMS IN EXCHANGE FOR FIVE BILLION DOLLARS WORTH 
OF FREE FUEL AND TWO NUCLEAR POWER REACTORS.  

BUT FOREIGN MINISTRY SPOKESMAN SADAAKI NUMATA SAYS A BALLISTIC 
MISSILE LAUNCH COULD AFFECT THOSE PLANS.

                        // NUMATA ACT //

         SHOULD THERE BE ANOTHER LAUNCH, THE PUBLIC REACTION IN 
         JAPAN MAY BE SUCH THAT IT MIGHT MAKE IT VERY DIFFICULT 
         FOR US TO CONTINUE WITH THE FUNDING.

                           //END ACT//

THE PROJECT WAS SUSPENDED ONCE BEFORE AFTER NORTH KOREA FIRED A 
MISSILE THAT FLEW OVER JAPAN AND LANDED IN THE PACIFIC OCEAN LAST
AUGUST.  IT WAS RESTARTED AT THE REQUEST OF THE UNITED STATES.  
ANALYSTS SAY THE SITUATION MAY BE DIFFERENT THIS TIME AROUND.  

SOUTH KOREA AND WASHINGTON ARE WORRIED THAT A NEW LAUNCH MAY 
INVOLVE AN UPGRADED BALLISTIC MISSILE CAPABLE OF REACHING THE 
UNITED STATES.  JAPANESE AND SOUTH KOREAN OFFICIALS HAVE OPENED 
TWO DAYS OF TALKS IN TOKYO TO COORDINATE THEIR POSITION ON THE 
ISSUE. 

IF AID IS CUT, IT COULD HAVE A DRAMATIC AFFECT ON FAMINE STRICKEN
NORTH KOREA -- WHICH HAS BEEN  RELYING ON OUTSIDE AID TO FEED ITS
PEOPLE FOR THE PAST FOUR YEARS.  // REST OPT //   U-S SENATOR 
ROBERT TORRICELLI -- WHO VISITED NORTH KOREA THIS LAST WEEK -- 
SAID MONDAY  THAT PYONGYANG SEEMS DETERMINED TO LAUNCH A MISSILE 
SOON, DESPITE THE CONSEQUENCES. (SIGNED)

NEB/KA/GC/JO/KL 

13-Jul-99 8:06 AM EDT (1206 UTC)
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Source: Voice of America
.