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Edition: U.S. Article Save Email Print Reprints Most Popular Most Shared Arizona passes tough illegal immigration law 19 Apr 2010 WRAPUP 8-Flights pick up in Europe as ash risk is lowered 4:35pm EDT Iranian missile may be able to hit U.S. by 2015 19 Apr 2010 Supreme Court strikes down animal cruelty law 1:51pm EDT Flights pick up in Europe as ash risk is lowered | Video 4:40pm EDT Arizona passes tough illegal immigration law 19 Apr 2010 Iranian missile may be able to hit U.S. by 2015 19 Apr 2010 Cirque du Soleil to create Michael Jackson show 3:35pm EDT Civil rights leader Dorothy Height dies at 98 8:36am EDT Supreme Court strikes down animal cruelty law 1:51pm EDT Political Crisis in Thailand Coup not on the cards for now Blood has been spilled. Armed troops are guarding the streets of the capital. Protests pushing for new elections have spiraled into anarchy, and the government is all at sea. Full Article How is Thailand's crisis likely to play out? Thai PM facing pressure from all directions North Korea readying for 3rd nuclear test: report Jack Kim and Jon Herskovitz SEOUL Tue Apr 20, 2010 3:50pm EDT Related News Factbox: A look at North Korea's nuclear arms program 3:55am EDT South dismisses report of coming N.Korea nuclear test 3:28am EDT South Korea's Lee vows to root out navy sinking culprit Mon, Apr 19 2010 Q+A: What might be at stake in South Korean ship sinking Sun, Apr 18 2010 North Korea denies it sank South's navy ship Sat, Apr 17 2010 A North Korean soldier gestures to a Chinese tourist boat on the banks of the Yalu River near the North Korean town of Sinuiju, opposite the Chinese border city of Dandong April 20, 2010. Credit: Reuters/Jacky Chen SEOUL (Reuters) - North Korea is preparing for a third atomic test that may come in May or June, South Korean broadcaster YTN reported on Tuesday, an act that could further isolate Pyongyang and complicate already troubled nuclear diplomacy. World | South Korea | North Korea South Korean Foreign Minister Yu Myung-hwan dismissed the report, saying Seoul had seen no evidence, and the U.S. State Department also voiced doubts about its accuracy. "If North Korea was making such preparations, there would be related circumstances that can be detected ... there is no intelligence on such circumstances," Yu told a news briefing. "We are skeptical of that report," State Department spokesman P.J. Crowley told reporters in Washington. YTN quoted an unnamed diplomat as saying that preparations began in February and involve a level of technical proficiency that is significantly upgraded from the first two tests, considered partial successes at best. North Korea has boycotted international nuclear disarmament talks for over a year and put conditions on its return that include ending U.N. sanctions imposed after its last test in May 2009 that dealt a severe blow to its feeble economy. North Korea, scrutinized by U.S. spy satellites, can easily signal it is preparing for a test by moving equipment but that does not mean a blast is imminent, analysts said. A third test would improve North Korea's ability to make nuclear weapons but also decrease its supply of fissile material, thought to be enough for six to eight nuclear bombs, experts say. HEDGING ITS BETS Destitute North Korea may be trying to hedge its position, experts said. It needs the aid that comes with making progress in nuclear disarmament talks but also wants the world know it can rattle the region with another nuclear test if discussions fail. "The North is likely to first show that it may conduct a test and then try to prod China and the United States (into making concessions)," said Lee Jong-won, an expert on the North at Japan's Rikkyo University. Leader Kim Jong-il is expected to soon go to China, his state's biggest backer and closest thing it can claim as a major ally, where he may try to win sweeteners for returning to the six-country talks hosted by Beijing, experts said. Kim's leadership has been tested by a failed currency move late last year that exacerbated food shortages among an impoverished public and sparked rare civil unrest. This raised questions about his ability to anoint his youngest son as heir to the state his family has ruled for more than 60 years. Previous nuclear tests, trumpeted at home, have boosted Kim's stature with his country's powerful armed forces and rallied the masses around his guiding military-first rule. A German former aid worker in North Korea told reporters in Beijing that farmers had been resisting accepting the new currency following the reform which, she said, was threatening already precarious food supplies. "Some people thought that after some time everything will be fine again. But then when they said at the beginning of January that nobody could use any foreign currency, then people became really unhappy," said Karin Janz, who until February 1 was North Korea country director for German NGO Welthungerhilfe. Market players, who have grown used to the North's saber rattling, said the report had no major market impact. The North's two previous nuclear tests caused brief, and quickly reversed, falls in local shares and the Korean won. Investors said markets would move on acts that raise the chance of war, shaking the export-based economies of North Asia that are responsible for about one-sixth of the global economy. "North Korea should come to its senses. The people are suffering and they spent 6 billion won ($5.37 million) in fireworks on founder Kim Il-sung's birthday. Imagine how much corn that could buy," South Korean President Lee Myung-bak said. (Additional reporting by Christine Kim in Seoul, Yoko Kubota in Tokyo, Ben Blanchard in Beijing and Arshad Mohammed in Washington, editing by Jonathan Thatcher and Ron Popeski) World South Korea North Korea More from Reuters Flights pick up in Europe as ash risk is lowered LONDON (Reuters) - European airports started to return to life on Tuesday after five days cut off from the rest of the world by a volcanic ash cloud, as authorities downgraded the risk the ash posed to aircraft. | Video Pirates take 3 Thai ships with 77 crew East Sudan parties concede defeat, cry fraud Kremlin says it will protect Russians in Kyrgyzstan | Video North Korea readying for 3rd nuclear test: report UK's Lib Dems will not fall into Labour's arms | Video » More Top News Is SEC playing politics? Republicans are raising questions about the financial watchdog's fraud case against Goldman Sachs. Full Article Ex-Goldman employee may shed light Case not politically timed: Rep. Frank SEC 3-2 vote split along party lines Cracking down on unethical behavior Regulation Cloud still disrupts UK skies European airports started to return to life, but some airspace stayed closed after reports a new plume from Iceland may be on its way. Video | Full Article Live Coverage: Air traffic developments Factbox: Closed airports and airspace Slideshow: Iceland's volcanic ash Airline Industry © 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 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. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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