DATE=02/22/2001

TYPE=CORRESPONDENT REPORT

NUMBER=2-272874

TITLE=NORTH KOREA / MISSILE (L)

BYLINE=HYUN-SUNG KHANG

DATELINE=SEOUL

CONTENT=

VOICED AT:

INTRO: North Korea has threatened to resume missile tests to protest what it describes as hard-line stance of the Bush Administration. As Hyun-Sung Khang reports from Seoul, officials in Pyongyang accuse Washington of trying to halt improvements in the bilateral relationship.

TEXT: In an angry statement from its foreign ministry, North Korea warns it may resume test launches of long-range missiles. It says the Bush Administration is trying to reverse improved bilateral relations achieved during the Clinton Administration.

North Korea agreed to suspend missile tests in 1999, as long as dialogue continued toward a permanent accord. In return, the United States eased some sanctions against the communist country.

In its statement, North Korea also expresses anger over the slow progress of the construction of two nuclear power plants, which were promised under an agreement with the United States in 1994. As part of the deal, North Korea froze its nuclear program. The reactors were to be completed by 2003, but are several years behind schedule.

North Korea's comments follow recent comments by President Bush indicating the United States expects concessions from officials in Pyongyang, in return for concessions from Washington. This has sparked fears in Seoul and Pyongyang that the new administration is preparing to adopt a tougher stance on North Korea.

Still, former U-S Assistant Secretary of State for East Asian affairs Stanley Roth - addressing a seminar in Seoul - said he expects the Bush Administration to pursue a formal missile deal with Pyongyang.

/// ROTH ACTUALITY ///

I believe that that there is great interest in finding out if a missile deal can be completed. We made a start, but we ran out of time. I think the Bush Administration have the chance, when they see the advantages that the long range missile program can be constrained, and the indications I see is that they are interested in pursuing it.

/// END ACTUALITY ///

Concerns over North Korea's missile program were raised in 1998 after North Korea test launched a rocket over Japan. (signed)

NEB/HK/HSK/HB/WD