South Korean navy holds border anti-sub drills
SEOUL (Reuters) – South Korea's navy staged anti-submarine drills on Thursday in tense waters bordering North Korea amid signs that China, under pressure from regional powers, is reviewing ties with the isolated communist state.
The naval exercise is aimed at better detecting intrusions by North Korean submarines after a team of investigators, including experts from the United States and Sweden, accused the North of firing a torpedo that sank a South Korean warship, killing 46.
The drills, which also come after the South's military upgraded its alert level, are likely to further anger Pyongyang, which has already cuts most ties with Seoul after it sanctioned the hermit state for sinking the Cheonan corvette.
The North has threatened to shut the last road link with the South if Seoul resumes loudspeaker propaganda broadcasts across their heavily armed border. It has warned of war if the South went ahead with sanctions announced this week.
Mounting antagonism between the two Koreas has unnerved investors, worried the bitter rivalry could spill over into conflict.
Most analysts say that neither side is ready to go to war but warn that there could be more skirmishes, especially along their disputed sea border off the west coast.
Traders said the issue continue to hang over the market though it is no longer driving prices down as it did early in the week. The won looked set to end a five-day losing streak as investors saw its recent downturn as overdone.
CHINA ROLE
Washington is looking for ways to avoid the issue collapsing into conflict, with Secretary of State Hillary Clinton pressing Beijing to coax its North Korean ally into changing course.
Clinton, who was in Seoul for talks on Wednesday, urged the North to stop threatening its neighbors, saying Washington would review measures to hold Pyongyang's leaders accountable for the sinking of the Cheonan.
Clinton also called on China, which almost single-handedly props up the North Korean government and its destitute economy, to join efforts to pressure the North to change its ways.
U.S. officials traveling with Clinton said China may be ready to discuss how the United Nations should respond to the sinking of the Cheonan, and had shown indications that it was rethinking its ties with Pyongyang.
South Korea will ask the U.N. Security Council as early as next week to take up the issue, its Yonhap news agency said.
Beijing has so far not endorsed the findings of the South Korean investigation, which concluded last week that there was overwhelming evidence the North torpedoed the ship.
But South Korean officials anticipate some form of progress in China's response when Premier Wen Jiabao visits Seoul on Friday for a summit with President Lee Myung-bak.
The two will travel to the South Korean resort island of Jeju on Saturday for a regional summit that also involves Japanese Prime Minister Yukio Hatoyama, where the issue is likely to overshadow discussions on boosting trade.
North Korea's Supreme People's Assembly is scheduled to meet on June 7, two months after the rubberstamp parliament passed constitutional amendments that strengthened leader Kim Jong-il's powers. Experts say a major announcement is likely.