U.S. DEBATES METHODS TO HALT NORTH KOREA'S ILLICIT EXPORTS

As North Korea threatens to export nuclear devices, hawks inside the Bush
administration are privately devising ways to choke off the country's
illicit exports. The plans range from establishing an economic embargo
against Pyongyang to interdicting North Korean ships on the high seas.

U.S. officials say such plans are nowhere near complete, as the Bush
administration continues to debate internally whether to pursue a policy of
containment or engagement toward North Korea. Last month, trilateral talks
between the U.S., China and North Korea broke down after Pyongyang admitted
to possessing atomic weapons and signaled its willingness to produce more.
The Bush administration is still seeking to verify North Korea's claims.

If the U.S. did press to cordon off North Korea, it would face a host of
diplomatic and military challenges, North Asia security experts say. Chief
among them would be enlisting the support of China, Russia and South Korea
- -- a long shot in the current geopolitical environment, they say. In
addition, Washington would have to contend with a North Korean regime that
has developed a sophisticated arms- and drug-smuggling network in league
with Asian gangs and some Middle Eastern governments, analysts say.

U.S. officials have been trying to sell North Asian governments on the
merits of constraining Pyongyang for several months. But China, considered
crucial to any joint effort to curb North Korea, has been loath to condone
moves that would destabilize Pyongyang. Earlier this year, for example,
U.S. officials broached the idea of placing sanctions on North Korean drug
and missile sales and got a noncommittal response from Chinese officials,
Beijing-based diplomats say.

Still, hard-liners in the Defense Department are likely to push for a
strong containment policy in the coming months, U.S. officials say. One
possible route would be to impose sanctions against North Korea through the
United Nations or as a cooperative effort with China, South Korea, Russia
and Japan. There could also be an effort to block financial transfers into
North Korea and to potentially bar North Korean diplomats from leaving the
country, U.S. officials say.

If Washington decided to choke off North Korean exports -- essentially
blockading the country -- security experts say it would have to closely
monitor the North Korean ports of Nampo and Haeju on the west coast and
Chongjin and Wonsan on the east. The greater test, they say, would be to
guard against Pyongyang using overland routes through China, Russia and
South Korea to export materials. That would also entail the strong support
of those countries, many of whom are voicing their opposition to a hard
line from Washington.

Currently, the U.S. is set to maintain tight surveillance on cargo ships
leaving North Korea, which potentially could be trading in narcotics or
weapons systems. In December, Washington worked with Spanish authorities to
interdict a North Korean ship in the Gulf of Aden, finding in the cargo
hold parts for as many as 12 Scud missiles. Though the U.S. ultimately
allowed the North Koreans to make delivery of the missiles to the Yemen
government, some U.S. officials are saying Washington should only increase
this type of monitoring.

Last month, the Australian navy commandeered a North Korean ship off the
coast of Sydney that allegedly was moving heroin valued at $50 million.
U.S. officials say they weren't directly involved in the bust but have
stressed that Washington, too, will start working harder to crack down on
Pyongyang's drug trade. Officials from the U.S. military command in Seoul
say North Korea is earning between $500 million and $1 billion from the
narcotics trade, which they fear is being used to support Pyongyang's
weapons development.

On Friday, Australia's foreign minister, Alexander Downer, summoned the
North Korean ambassador to a meeting to express concern about the alleged
trafficking incident. Mr. Downer said the meeting was called after
officials discovered that a member of Pyongyang's ruling Worker's Party was
on board the ship, the Pong Su, which the Australians say is state owned.

"Whilst we can't prove that the government made the decision to send this
ship and sell drugs into Australia to make money, we are concerned that
instruments of the government may have been involved in this," Mr. Downer said.

- -- Charles Hutzler in Beijing and Murray Heibert in Washington contributed
to this article.