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July 03, 2006/ Gaza militants' deadline expires
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July 5, 2006

North korea fired seven missiles in the last 36 hours. The last has a range of 2000 kilometers and could reach japan. The second type has three times the range and over 6000 kilometers and could go as far as alaska, australia and indi.

>> In a country as secretive as north korea it is satellite imagery that provides clue to military ambitions. This one shows the launch site from wha missile theroretically capable of reaching the u.S. The launch was a failure. Once again the eccentric figure has taken center stage. When not being entertained by rallies in his state, he's worrying neighbors, both close and faR.

>> The un security council held an emergency debate. Japan is pushing for the strongest punishment, backed by the united states.

>> The firing of the rockets have isolated themselves further and that's sad for the people of "new york voiceS."

I am deeply concerned about the plight of the people of north koreA. I would hope that the government would agree to verifiably abandon its weapons program.

>> North korea has a failed economy, a poverty stricken people and it stands once more isolated. But it has missiles and it wants the world to know iT.

>> So what has the reaction from north korea neighbors we start with chris in the japanese capitol of tokyo.

>> The missiles have prompted a furious response here in japan. The government has called them extremely deplorable. Dominated the news bulletins here, even though the weapons landed in japan's coast, people fear a long-range missile could reach them.

>> Relations between japan and north korea were bad enough already, now the japanese government is promising stern measures. The foreign minister says economic sanctions are highly likely. For the japanese, life goes on. Many will feel the threat posed by north korea more keenly than they did before, beyond forces are on high alert. The country's leaders are calling for concerted and immediate international response.

>> On the streets of seoul they burn images of north korea's leader. Some say this has gone too far. Others blame the united states for isolating and threatening their neighbor.

>> Seoul is 50 kill meters.

>> The city of 10 million people is within artilery range of the border. The government is deeply concerned about escalating tensions and the danger of a regional arms racE.

>> South korea helped the regime with economic aid and is under growing pressure to take a tougher line.

>> North korea dictator greeting china's president last year. As the rest of the world unite in condemning north korea for missile testing, there is one country they can still rely on.

>> China is north korea oldest ally and despite today's today, beijing is not about to abandon their old friend. China believes the key to ending the crisis on the korean peninsula lies in washington.

>> Beijing says north korea is ready to give up the missile program and nuclear weapons, but only if the united states is also ready to extend the hand of peace.

>> The reaction there from north of korea, let's get reaction from washington. I'm joined from justin logan. Thanks for coming in. Justin, clearly very important, the chinese response there equally important. Though the response from the white house, it seems president bush is very keen this be dealt with in a multilateral forum, not an american-north korean dispute.

>> That is righT. I think this does marginalize the north koreans. I would be suspicious the chinese would come around to sanction regime. I doubt the chinese are ready to destabilize the north. In a way I think interesting is the response of japan and whether that provokes the chinese to be angry at the north koreans to prompting the japanese to look at larger security rolE.

>> The missile firing was a technical mess-up for the north koreans. But the international communitis n y in a strong position when it comes to diplomacy or sanctions.

>> The key player is china, but china is concerned abt destabilizing the gime with potential for serious refugee flow over the border. In particular it is worried about the prospect of U.S. Influence directly on the chinese border. I think that they will continue to dig in their heels and resist sanctions regime. We may get a toothless condemnation of the north koreans, but I doubt we would get anything rethan thatmo.

>> We have been hearing from the white house about iran and the nuclear program. Has the administration taken its eye off the ball on north korea?

>> I think the administration has limited options in north korea and they have play one right. You don't want to elevate the importance of what appears to be a failed missile test to some sort of epic proportionS. I think we saw former democratic bill perry advocates striking the missile on the ground, which could have created a war on the korean peninsula. By and large this is going down the right line.

>> Justin, thanks for coming in.

>> We will be back later in the program with more of the -- nope, sorrykennh rm chairman of enron has died of a heart attack in aspen, colorado awaiting sentencing after being convict indeed may for his part in one of the biggest scandals in corporate america. The fraud led to the collapse of the energy company in 2001 and financial ruin for both enron employees and investors. North america business correspondent is with us. This has been obviously extraordinary timinG. He was awaiting sentence. Was this a result of the extreme pressure kenneth lay has been under?

>> Only a doctor could answer that properly. You are right to point out how much pressure he has been under. This man grew up with humble beginnings. S faer was a preacher and kept a grocery store. He was one of the best connected and wealthiest men in america. He was worth 40 billion dollars at one stage and the president called him kenny boy. To go from that position where you are running the seventh largest company in america to have be presided over the biggest bankruptcy in the nation, you can imagine the stress and the prospect he was facing at the end of the summer that could have meant he would have spent the rest of his day necessary jail.

>> The sentencing, the trial and the sentencing of kenneth lay was meant to send symbol to other corporate executives across the country that they could not commit this kind of fraud without the sentencing where does that leave the clean-up of corporate america?

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6 July, 2006
2002 picture of Taepodong-type missile
N Korea confirms that it did test-fire missiles on Wednesday, and says it will continue launching them.

A small force of Israeli tanks enters northern Gaza after a second rocket hits the Israeli city of Ashkelon.
China and India open a historic trade route in the Himalayas that was closed 44 years ago.

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