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Edition: U.S. Article Comments (0) Slideshow Video Save Email Print Reprints Most Popular Most Shared WRAPUP 1-Gulf oil spill hits Day 40 with no end in sight 1:02am EDT Stocks slide, euro falls after Spain downgrade 28 May 2010 Bankruptcy talk spreads among Calif. muni officials 27 May 2010 China fakes beg for attention as Apple's iPad goes global 28 May 2010 Berkshire confirms Buffett subpoenaed to testify 28 May 2010 Gulf oil spill hits Day 40 with no end in sight | Video 1:06am EDT BP well disaster stuns hardened oil men 27 May 2010 Prudential wants to pay less to save AIA deal 28 May 2010 Risque Venus brings Moulin Rouge style to French Open 26 May 2010 Microsoft dead-set on mobile and games after shake-up 28 May 2010 Bankruptcy talk spreads among Calif. muni officials 27 May 2010 Regulators shut 5 banks as 2010 tally hits 78 28 May 2010 Gulf oil spill hits Day 40 with no end in sight | Video 1:06am EDT U.S. reverses stance on treaty to regulate arms trade 14 Oct 2009 Vitamin K linked to lower diabetes risk 27 May 2010 China fakes beg for attention as Apple's iPad goes global 28 May 2010 Apple's iPad goes global | Video 28 May 2010 Hunger for burgers overcomes economic fears 27 May 2010 Falcone makes big bet on food products 27 May 2010 Management Tip of the Day: Get rid of email dysfunction 28 May 2010 U.S. out to make China feel awkward, says North Korea Nick Macfie SEOUL Sat May 29, 2010 12:09am EDT Factbox Factbox: Ties binding China and North Korea Fri, May 28 2010 Related News South Korea says no chance North will go to war Fri, May 28 2010 Japan to step up North Korea sanctions after sinking Fri, May 28 2010 U.N. sees North Korea exporting nuclear technology: envoy Fri, May 28 2010 China's Wen faces diplomatic test in South Korea Fri, May 28 2010 Related Video China PM Wen arrives in S.Korea Fri, May 28 2010 The Koreas incline to belligerence Thu, May 27 2010 The Koreas incline to belligerence 1 / 18 North Korean commanders of the Korean People's Army speak at a news conference held by the National Defence Commission of North Korea to denounce the South Korean government's claims that North Korea torpedoed South Korean navy warship Cheonan in March, in Pyongyang, May 28, 2010. Credit: Reuters/KCNA SEOUL (Reuters) - North Korea said the United States was blaming it for sinking a South Korean warship in order to keep a U.S. Marine base in Japan and make China, the North's only major ally, feel "awkward." World | China | Japan | South Korea | North Korea Chinese Premier Wen Jiabao, South Korean President Lee Myung-bak and Japanese Prime Minister Yukio Hatoyama are meeting on South Korea's Jeju island on Saturday and escalating tension on the Korean peninsula will certainly be high on the agenda. The United States and South Korea have accused North Korea of the March 26 sinking of the Cheonan, in which 46 South Korean sailors die. But China, eager not to upset stability on the Korean peninsula, has not apportioned blame. The mounting antagonism between the two Koreas has unnerved investors, worried the confrontation could erupt into conflict. Many analysts say that neither side is ready to go to war but warn more skirmishes may lie ahead, especially along their disputed sea border off the west coast. "The U.S. secretary of state (Hillary Clinton) let loose a spate of sheer lies to brand the DPRK as the chief culprit of the warship sinking during her junkets to Japan, China and south Korea," the KCNA news agency quoted the North Korean Foreign Ministry as saying. DPRK stands for North Korea's official name, the Democratic People's Republic of Korea. In English, KCNA refers to "south" Korea, with no capital "S," as it considers it part of the DPRK, not a separate country. KCNA said the Obama administration was using the episode to appear strong ahead of mid-term elections, to scare Japan into keeping U.S. troops on Okinawa and to justify its policy of "strategic patience" designed to "degrade the environment for international investment" in North Korea. "Fourthly, it became possible for the U.S. to put China into an awkward position and keep hold on Japan and south Korea as its servants," it said. WALKING DELICATE LINE Hatoyama has abandoned a pledge to move a U.S. Marine base of the island of Okinawa, saying it was essential for security. Japan is also toughening sanctions against North Korea, the top government spokesman, Chief Cabinet Secretary Hirofumi Hirano, said on Friday. South Korea, the United States and Japan have urged China, host of on-again, off-again talks aimed at dismantling North Korea's nuclear programme, to take a stand on the Cheonan incident. Beijing has resisted turning publicly on North Korea, whose leader Kim Jong-il visited China this month. Wen is walking a delicate line between shielding North Korea in an effort to maintain stability in the region and assuaging the deepening worries about China's perceived neutrality in South Korea and Japan, two of its largest trading partners. Wen told the South Korean president on Friday that Beijing would not "harbor" anyone responsible once China had made its own "fair and objective judgment on who's at fault," a South Korean official told reporters. North Korea has denounced the investigation as biased. It says it will rip up military agreements with the South guaranteeing safety of cross-border exchanges, and has reportedly put its military on combat readiness, after Seoul said it would ban trade with the North and stop the North's commercial ships from using South Korean waters. (Editing by Bill Tarrant) World China Japan South Korea North Korea Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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