N. Korea sanctioned over Yemen missile deal [Archives:2003/655/Front Page]

July 31 2003

Washington, Jul 25 (Reuters/Agencies)- Consequences of the Yemen-Korea scud missile deal have continued as the United States administration imposed last Friday new sanctions on North Korea over its export of 15 Scud missiles to Yemen last year. The incident ignited a major diplomatic crisis and exposed a loophole in global non-proliferation regimes.
The US State Department extended sanctions on a North Korean company accused of selling Scud missiles to Yemen on Friday, but upon guarantees by the Yemeni government, it remained faithful to its decision last year not to punish Yemen for ordering the consignment.
This comes in a time N. Korea has deployed additional long-range missiles capable of reaching Japan.
Korea does not have a market economy, the same sanctions apply to the North Korean government but they will have no effect because the United States does not trade in military equipment with North Korea.
Until March 2007 the company, Changgwang Sinyong Corporation, will not be able to buy from the United States any items on a U.S. munitions list, win contracts with the U.S. government or export to the United States, it said.
Identical existing sanctions against the company, imposed for exports to Iran, would have run out in June 2006.
A Spanish warship intercepted the last shipment of Scuds bound for Yemen in December last year but the United States decided to let the vessel continue on its way because the trade does not violate any international law.
State Department spokesman Richard Boucher said the United States did not also impose sanctions on Yemen as the recipient because of its good relations with the Yemeni government.
“We have assurances that this was the last part of the shipment and that there will be no further shipments. In consideration of our relationship, our cooperation on terrorism and consistent with the law, we're not imposing sanctions on Yemen for this activity at this time,” he told a briefing.