North Korea greets new year with nuclear silence

By Jon Herskovitz

SEOUL (Reuters) - North Korea gave no public explanation on Tuesday for its failure to meet a nuclear disarmament deadline, but promised a better standard of living for the citizens of the destitute communist state.

Pyongyang, which uses newspaper editorials on New Year's Day to lay out its policy priorities for the year to come, referred only indirectly to its nuclear arms program while focusing on "building a prosperous nation".

"The entire (communist) party, the whole country and all the people should launch a general offensive to build an economic power," it said in an editorial jointly published in its official media and carried in English by the official news agency.

Pyongyang failed to meet a December 31 deadline to give a full accounting of its nuclear arms program, considered one of the region's greatest security threats, and answer U.S. suspicions of having a clandestine operation to enrich uranium for weapons.

"(North Korea) will continue to make earnest efforts for stability on the Korean peninsula and peace in the world," was about the closest it came to addressing the matter.

Under a six-country deal, the reclusive North would receive 1 million tons of heavy fuel oil or equivalent aid and an end to its status as an international pariah in exchange for starting to take apart its plutonium-producing nuclear plant and providing a list of its atomic activities.

The joint editorial called for modernizing the North's anemic economy, which is weaker now than it was 20 years ago and has been crippled by decades of mismanagement.

TINY PERCENTAGE

The North's GDP, estimated by Seoul's central bank at 21.2 trillion won ($22.6 billion), ranks close to that of war-torn Sri Lanka and is less than 3 percent of the South Korean economy.

"The people's-living-first policy should be pursued," the joint editorial said in giving rare attention to the state's consumer sector. North Korea pledged to build more housing and develop light industries to make higher-quality consumer goods.

"This policy reflects our Party's firm determination and will to make our people, who have pushed their way through trying ordeal and hardship, lead an affluent and cultured life."

North Korea pledged to develop ties with its southern neighbor. It said it would boost the mining, railway and chemical sectors while addressing its inability to grow enough food to feed its 23 million people.

"At present there is no more urgent and important task than solving the problem of food."

In typical fashion, it lauded the pillars of the state, such as its doctrine of juche (self-reliance) and the military-first "songun" policy, as well as its revered leader, Kim Jong-il.

"The proud victories and successes we achieved last year in the political, military, economic, cultural, diplomatic and all other realms are brilliant fruition of leader Kim Jong-il's outstanding strategy and tactics, his iron will and his tireless leadership."

(Editing by Roger Crabb)