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Washington PostSEOUL (Reuters) - The United States has told South Korea it is preparing financial measures to punish North Korea for illicit weapons trade and counterfeit activities in the wake of its nuclear test last week, a newspaper report said on Friday.
North Korea has been ratcheting up regional tensions since it fired a long-range rocket over Japan in April, and on Thursday the hermit state put two female U.S. journalists on trial accused of illegally entering its territory with "hostile intent."
Analysts say the pair, who were working for the Current TV network co-founded by former U.S. Vice President Al Gore, have become bargaining chips in high-stakes negotiations with the United States, which has long sought to end the North's nuclear ambitions.
In a separate move Friday, North Korea proposed talks with the South over a joint factory enclave that is the only major link between the rival states, more than a month after the last attempt at dialogue broke down in acrimony.
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http://www.washingtonpost.com/wp-dyn/content/article/2009/06/05/AR2009060500407.html