JAPAN'S REMOVAL OF S.KOREA FROM WHITELIST

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Japan's removal of South Korea from its whitelist of trusted trade partners took effect Wednesday. Japan rejected a proposal by the South Korean prime minister that if Tokyo withdrew its export restrictions, Seoul would reconsider its decision to terminate a military intelligence sharing agreement with Japan.

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During a recent Japanese Cabinet meeting, a revised ordinance was introduced calling for the exclusion of Korea from Japan's trade whitelist. According to minutes from the meeting, the revision was passed quickly, following just 15 seconds of explanation. The 18 Cabinet members in attendance did not utter a word. The revised bill approved in this fashion went into effect on the 28th.

[Soundbite] YOSHIHIDE SUGA(JAPAN'S CHIEF CABINET SECRETARY(TODAY(THE 28TH)) : "As we already mentioned several times, Japan's latest review of its export control is a necessary measure to adequately manage exports from the perspective of national security."

Under the changed rule, all exports to Korea that could be diverted for military use are now subject to case-by-case individual inspections. This restriction practically allows the Japanese government to control shipments to South Korea. Tokyo rejected Korean Prime Minister Lee Nak-yon's proposal that if Japan were to withdraw its restrictions, Seoul would reconsider its decision to end the General Security of Military Information Agreement with Japan. After their Cabinet meeting Tuesday, Japanese ministers repeated the same words in unison.

[Soundbite] TAKESHI IWAYA(DEFENSE MINISTER) : "It's a separate matter."

[Soundbite] TARO KONO(FOREIGN MINISTER) : "It's a completely different story."

In particular, Foreign Minister Taro Kono said the most important issue between the two countries is the 1965 bilateral agreement, and even went so far as to say that Korea should realize it is impossible to rewrite history. There is speculation that Japan may not immediately issue a list of additional export restrictions. But it indeed appears to be continuing its unjustified trade pressure against Korea by creating an environment where Japan can implement restrictions any time it wants.