Seoul orders halt to funding of state contacts with North Korea

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17/5 Tass 66

TOKYO, May 17 (Itar-Tass) - South Korea stops the state funding of
contacts with North Korea against the background of growing tensions
following the sinking of the South Korean corvette Cheonan at the maritime
demarcation line between the two countries in the Yellow Sea.
A spokesman for the South Korean Ministry for Unification reported in
Seoul on Monday that ten other government agencies of the country had
received an order to halt the funding of contacts with North Korea.
The Yonhap news agency reported on Monday that last week the ministry
had also urged about 200 private companies of the country to refrain from
signing new contracts on any supplies to North Korea.
Relations between the two countries sharply aggravated after the
Cheonan corvette had exploded and sunk near the North Korean zone of
maritime control. Seoul suspects that a North Korean torpedo attack was
the most likely cause for the sinking of the warship.
A government commission with participation of foreign experts looks
into the incident and the results of investigation are expected this week.
Last month's decision of Pyongyang to confiscate the property of South
Korea on a mountainous resort in the eastern part of North Korea, earlier
financed from Seoul, has also escalated tensions.
-0-zhe/ast