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DATE=11/2/1999 TYPE=CORRESPONDENT REPORT TITLE=JAPAN / NORTH KOREA (L-ONLY) NUMBER=2-255730 BYLINE=STEVE SHAYMAN DATELINE=TOKYO CONTENT= VOICED AT: INTRO: Japan is lifting a ban on charter flights to North Korea, in the first easing of sanctions imposed when Pyongyang launched a ballistic missile over Japanese territory last year. As Steven Shayman reports from Tokyo, the move comes amid improving ties between the reclusive North and the United States. TEXT: Deputy Cabinet Secretary Soichiro Matsutani says the Japanese government decided to lift the ban because it believes North Korea is honoring its missile launch moratorium mediated by the United States. The Japanese government imposed sanctions on North Korea after it fired a ballistic missile that flew over Japan in August last year. Pyongyang said the launch was an attempt to orbit a satellite. In September, North Korean Foreign Minister Paek Nam Sun said his country would suspend testing of long- range ballistic missiles in return for the lifting of a U-S ban on trade and investment. Japanese Deputy Cabinet Secretary Matsutani says the resumption of charter flights is due to Japan's desire to see further improvement in ties between Pyongyang and Washington. He says he hopes that would spread to include a thaw in Tokyo's icy relations with the North. Japanese government sources admit there was pressure by Washington to hasten the removal of sanctions prior to talks between the United States and North Korea November 15th in Berlin. Following the meeting, a senior North Korean official is expected to visit United States. Many thorny issues still stand in the way of improved relations between Tokyo and Pyongyang. One difficult dispute has been Japanese allegations that North Korean spies abducted at least 10 Japanese citizens in the 1970's and 1980's. Some of the missing people were said to have vanished while walking alone in coastal areas facing the Sea of Japan, which lies between Japan and the Korean peninsula. North Korea has vigorously denied the kidnapping allegations, which have stood in the way of official contacts with Tokyo. Japan ruled the Korean peninsula as a colony from 1910 to 1945. It established diplomatic relations with capitalist South Korea in 1965, but has yet to do so with the North. (SIGNED) NEB/SGS/GC/RAE 02-Nov-1999 07:57 AM EDT (02-Nov-1999 1257 UTC) NNNN Source: Voice of America .