Reporters' families seek mercy from North Korea

By Jon Herskovitz

SEOUL (Reuters) - Relatives of two U.S. journalists sentenced to 12 years hard labor in North Korea called on the reclusive state to show compassion, while Pyongyang threatened to use nuclear weapons if outside countries invade.

Monday's harsh sentence of the two women by a North Korean court deepened tensions between Pyongyang and Washington triggered by North Korea's nuclear test in May, which put it closer to having a working atomic bomb.

Efforts by the United States and Japan to expand sanctions to punish North Korea for the test failed to produce a deal on Tuesday in the U.N. Security Council, where China and Russia have not wanted to provoke Pyongyang.

Several diplomats close to talks between the five permanent Security Council members, Japan and non-council member South Korea dismissed news reports that the seven countries had reached an agreement on a draft sanctions resolution.

"We continue to engage in intense and productive negotiations," U.S. Ambassador to the United Nations Susan Rice said. "We're making progress, but we're not done yet."

The council has been considering measures to clamp down on the hardline Communist country's arms trade and finances.

North Korea appeared ready to increase tensions further by preparing for tests of a long-range missile that could reach U.S. territory and mid-range missiles capable of striking anywhere in South Korea and in most of Japan, officials say.

ANOTHER MISSILE LAUNCH PLANNED?

In Moscow, a Russian Foreign Ministry source reported signs North Korea was preparing to launch new missiles, Interfax news agency said. "Information is coming to us that there are signs of preparations for the launch of missiles," the source said.

The source, who was not identified, could add no details on timing of any launch or the type of missile.

A North Korean newspaper said the country had a nuclear deterrent to maintain peace in the region while warning: "it will be a means of merciless offensive of just retaliatory attack to those who damage our pride and sovereignty."

Markets have largely shrugged off the North's actions, and analysts say it would take a military clash at sea or on the border to have a major impact on global markets.

U.S. Defense Secretary Robert Gates said 30 interceptor missiles already in silos or under construction in Alaska and California were "fully adequate" to protect the United States.

"I have confidence that if North Korea launched a long-range missile in the direction of the United States, we would have a high probability of being able to defend ourselves against it," Gates told the Senate Appropriations Subcommittee on Defense on Tuesday.

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