N. Korea threatens arms build-up

South Korean President Kim Dae-Jung received the 2000 Nobel Peace Prize for his reconciliation efforts with the North

SEOUL, South Korea -- North Korea has warned the U.S. that it will build up its military might to counter what it called a "strong-arm policy" towards the communist state.

In a statement carried on state-run media, the Democratic People's Republic of Korea -- North Korea's official name -- said the U.S. was using its anti-terrorism campaign to create a "war-atmosphere" in the Korean Peninsular.

"The U.S. escalated policy intended to stifle the DPRK compels the DPRK to increase its military capabilities for self-defense to cope with it," the ruling party daily Rodong Sinmun said in the statement, as reported by Reuters news agency.

"The Bush government is still pursuing the hard-line policy to contain the DPRK though it calls for the 'resumption of dialogue without any precondition'," said the commentary, carried on North Korea's state-run Central News Agency (KCNA).

U.S. troop levels maintained

The United States has replenished troops and supplies it shifted from South Korea to Afghanistan meaning that a presence of 37,000 troops in the East Asian nation is still being maintained.

Last week, North Korea rejected calls from the U.S. to allow inspections for suspected weapons of mass destruction including biological and chemical arms.

Analysts say North Korea frequently makes bluffs and threats as a way of gaining concessions from the South or getting attention of its neighbor's ally -- the United States.

They say that it is unlikely that the impoverished North would increase its military readiness.

Ties between the two Koreas have been at a standstill despite a series of exchanges last year that initially raised hopes of reconciliation.

Positive signals

Both countries remain technically at war with each other as they failed to sign a peace treaty at the conclusion of the 1950-53 Korean War.

North Korea has also lashed at the U.S. over the Bush Administration's proposed missile defense program and accusations that the communist country was among a list of 'rogue' states.

However, in recent days North Korea has sent positive signals to the West.

The North Korean foreign ministry on Monday thanked the international community for food aid that that has eased food shortages since 1995.

North Korea also signed agreements relating to quality guarantees of two nuclear reactors which Western countries had agreed to build for the North.