NORTH KOREA'S ILLICIT TRADE - JAPAN READY TO CRACK DOWN, BUT NOT WITH SANCTIONS OR BLOCKING CASH

Kyodo, "North Korea not facing sanctions soon: Koizumi", The Japan Times, May 26, 2003

CAIRO (Kyodo) Prime Minister Junichiro Koizumi said Saturday he has no immediate plans to impose economic sanctions on North Korea but is ready to crack down on illegal activities like the drug trade.

"Japan will deal strictly with illicit trade, illegal imports and drug problems (involving North Korea), and must tighten crackdowns on such illegal acts in a strict manner," Koizumi said on a government jet heading to Cairo from the United States, where he met with U.S. President George W. Bush.

But these measures "will be different from economic sanctions," Koizumi said. He also ruled out actions being considered by the government and some lawmakers, such as blocking cash remittances to North Korea, which come mainly from Korean residents of Japan.

Chief Cabinet Secretary Yasuo Fukuda recently said suspending remittances to North Korea through Japanese financial institutions would be "possible" with U.S. backing.