UN fails to agree response to N Korea rocket launch

SEOUL/UNITED NATIONS, (Reuters) – The United  Nations failed to agree a response to North Korea’s rocket  launch despite pressure from Washington and its allies for  action, showing the reclusive state had succeeded in dividing  the international community.

Analysts said yesterday’s launch of the rocket, which flew  over Japan, was effectively a test of a ballistic missile  designed to carry a warhead as far as the U.S. state of Alaska.

South Korean and Japanese financial markets shrugged off  the news this morning (last night local time). Seoul’s main share index was up over 1  percent while the won currency was stronger against the dollar  as investors cheered Wall Street’s gains last week.

Shares in Japan also traded higher in the morning, with the  Nikkei index up over 1.6 percent.

Japan had called for the emergency U.N. Security Council  meeting yesterday. But after a session lasting three hours, the  15 members agreed only to discuss the matter further, diplomats  said.

The United States, Japan and South Korea say the launch  violated council resolutions banning the firing of ballistic  missiles by Pyongyang, imposed after a nuclear test and other  missile exercises in 2006.

Council diplomats said China, the nearest North Korea has  to a major ally, and Russia were not convinced the launch of  what North Korea said was a satellite constituted a violation  of U.N. rules. Three other countries supported this view.

“It’s 10 against five,” one diplomat told Reuters.

The U.S. military and South Korea said nothing from the  Taepodong-2 rocket entered orbit.

North Korea for years has tried to drive a wedge between  regional powers that have engaged it in security and  disarmament talks. Analysts say it thrives on brinkmanship and  uses its   military threat to wring concessions.

U.S. analysts expect an emboldened North Korea to try to  exact concessions for showing up at any future round of  six-party talks on ending its nuclear programme and to seek to  water down obligations it signed onto under previous  negotiations.

The launch could also have implications for security in  North Asia, which accounts for one sixth of the global economy.

A leading South Korean daily, the JoongAng Ilbo, said Seoul  needed to review how it organised its military, which has long  focused on a possible conventional war with North Korea.

“North Korea’s rocket launch has shifted the security  landscape on the Korean peninsula because we must accept the  reality that it is capable of launching intercontinental  ballistic missiles,” the JoongAng Ilbo said in an editorial.

Analysts said the launch would bolster the authority of  North Korean leader Kim Jong-il after a suspected stroke in  August raised doubts about his grip on power.

The communist state said a satellite was launched into  orbit and was circling the Earth transmitting revolutionary  songs.

The U.S. Northern Command said stage one of the missile  fell into the Sea of Japan and the other stages, along with the  payload, landed in the Pacific Ocean. No debris fell on Japan.

In the only previous test flight of the Taepodong-2, in  July 2006, the rocket blew apart 40 seconds after launch. The  rocket is designed to fly an estimated 4,200 miles (6,700 km).

U.S. President Barack Obama said North Korea’s move was  intended as a threat to countries “near and far” and that  Pyongyang must be forced to change.

China and Russia called on all sides for restraint. Both  had already made clear they would use their veto power to block  any resolution imposing new sanctions on Pyongyang.

Council members “agreed to continue consultations on the  appropriate reaction by the council … given the urgency of  the matter,” Mexico’s U.N. Ambassador Claude Heller, who holds  the body’s rotating presidency, told reporters.

U.S. Ambassador Susan Rice and Japanese Ambassador Yukio  Takasu both called for a clear and firm response and said they  wanted to see a fresh resolution. But Chinese Ambassador Zhang  Yesui said any reaction must be “cautious and proportionate.”

Washington and Tokyo want a resolution demanding stricter  enforcement, and possibly expansion, of an existing arms  embargo and financial sanctions.

The launch was the first big challenge for Obama in dealing  with the prickly North, whose efforts to build a nuclear  arsenal have long plagued ties with Washington.

Kim toured the command centre and witnessed the launch,  North Korea’s official news agency KCNA reported, saying he met  those who “contributed to the satellite launch by devoting all  their wisdom and enthusiasm with ardent patriotism and warmly  encouraged them before having a photograph taken with them.”