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Yahoo! My Yahoo! Mail Yahoo! Search Search: Sign InNew User? Sign Up News Home - Help Navigation Primary Navigation Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular Secondary Navigation Australia China India Indonesia Japan Malaysia Philippines Thailand Vietnam Search Search: North Korea jails U.S. journalists and warns U.N Reuters - 2 hours 14 minutes ago By Jack Kim ADVERTISEMENT SEOUL - North Korea, facing U.N. sanctions for last month's nuclear test, on Monday raised the stakes in its growing confrontation with Washington by jailing two U.S. journalists to 12 years hard labour for "grave crime." The sentence follows U.S. Secretary of State Hillary Clinton's warning on Sunday the United States was considering putting the North back on its list of states that sponsor terrorism, which would further isolate the impoverished country. The journalists, Euna Lee and Laura Ling, of U.S. media outlet Current TV, were arrested in March working on a story near the border between North Korea and China. The trial for the two, working for the media outlet founded by former Vice President Al Gore, opened on Thursday. "The trial confirmed the grave crime they committed against the Korean nation and their illegal border crossing as they had already been indicted and sentenced each of them to 12 years of reform through labour," the official KCNA news agency said in a brief dispatch. The harsh sentence is certain to deepen the chill in relations with the United States which has been trying for years, with scant success, to convince North Korea to give up its dreams of becoming a nuclear weapons power. It came after Clinton had appealed for the two women's release. The State Department had no comment on the sentencing. "It's using the sentence as bait to squeeze concessions out of the U.S. amid heightened tension," said Lee Dong-bok, a senior associate with the CSIS think tank in Seoul and an expert on the North's negotiating tactics. South Korean markets were for the most part unmoved by the sentencing, that came in line with expectations. A currency trader said the U.S. reaction to the sentencing and developments thereafter were more important for local markets. Analysts say it would take it would take a military clash at sea or on the border to have a major impact on global markets. MILITARY GRANDSTANDING U.S. President Barack Obama at the weekend called the North's latest nuclear test, which was followed by a series of missile tests, "extraordinarily provocative" and said that this time there would be no appeasement by Washington. North Korea kept up its military grandstanding which is increasingly unnerving a region that accounts for a sixth of the world's economy. It threatened to retaliate with "extreme" measures if the United Nations punished it for last month's nuclear test. "Our response would be to consider sanctions against us as a declaration of war and answer it with extreme hard-line measures," the North Korea's official Rodong Sinmun newspaper said in a commentary. It also indicated it was readying fresh moves, issuing a no-sail warning off its east coast up to 260 km off the Wonsan area from where it launched a missile in May and a barrage of short-range missiles in 2006. The U.N. Security Council may adopt a new resolution as early as this week, but there is clear division among some members over how tough to be on the reclusive state. Japanese Foreign Minister Hirofumi Nakasone called for a strong resolution to make it clear that such tests would not be forgiven. But his Chinese counterpart Yang Jiechi said a "balanced" resolution was needed. Clinton said last week Washington wanted the strongest possible resolution. TERRORISM BLACKLIST The United States removed North Korea from its terrorism blacklist in October in a bid to revive faltering six-party nuclear disarmament talks, prompting the North to take some measures to disable its nuclear facilities. Pyongyang has since reversed those steps and said it had restarted the nuclear complex -- including reprocessing nuclear fuel to obtain weapons-grade plutonium. China is seen as nervous of measures that might push its fragile neighbour into collapse, especially at a time when there is uncertainty of the health of ruler Kim Jong-il, who is widely believed to have suffered a stroke last year. Many analysts say the North's belligerence may be aimed largely at a domestic audience, with Kim, 67, using it to bolster his position at home with the military and to better secure the succession for his youngest son Kim Jong-un. His eldest son, Kim Jong-nam, told Japanese television over the weekend that he would not be surprised to see his brother take over. If he does, it would be the third generation to head the world's first communist dynasty. Email Story IM Story Printable View Blog This Sign in to recommend this article » 0 users recommend Related Articles: Asia Pacific Bangladesh ups security for judges after threatsAFP - 1 hour 1 minute ago Thailand says FBI can observe Carradine probeAFP - 1 hour 38 minutes ago Shanghai aims to become 'Broadway of the East'AFP - 1 hour 50 minutes ago NKorea jails US journalists for 12 yearsAFP - 2 hours 9 minutes ago North Korea jails U.S. journalists and warns U.NReuters - 2 hours 14 minutes ago Most Popular – Asia Pacific Viewed Life, health insurers invest big in tobacco Carradine may have died from sex act: Thai police President Obama's French food tested by 'taster' Susan Boyle out of London clinic: brother Wall Street ponders if rally can run further View Complete List » Search: Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular Copyright © 2009 Yahoo! Southeast Asia Pte Ltd. (Co. Reg. No. 199700735D). All Rights Reserved. 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