Inter-Korean relations growing tense over S Korea's tough position.

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PYONGYANG, March 3 (Itar-Tass) - South Korea "refused to give firm
guarantees for border crossing, passing of the customs controls and the
provision of communications in the joint industrial complex Kaesong." So,
the inter-Korean relations "entered in the critical phase," a North Korean
negotiator, who participated in the military negotiations with a
delegation from South Korea on further development of the foresaid complex
on March 2, told the KCNA news agency on Wednesday.
Alongside, the head of the North Korean delegation noted that due to
military provocations by the South Korean authorities the situation in the
Yellow Sea had deteriorated sharply recently.
Meanwhile, Seoul "expands the scale of the psychological war against
North Korea, distributing provocative leaflets in the republic and
stepping up the espionage activities.
The North Korean official also noted a dangerous nature of forthcoming
U.S.-South Korean military exercises codenamed Key Resolve - Foul
Eagle-2010 due this month. These exercises may get the situation on the
Korean Peninsula completely out of control. He also noted that all these
actions make part "of a scenario plotted in advance targeted against North
Korea." He stated that the North Korean army and people are ready to
rebuff any aggression.
Some 115 South Korean companies with about 40,000 North Korean workers
employed at the production plants organized in Kaesong. These companies
produce consumer goods, including footwear, clothes and home electronic
appliances.
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