London only UK entry in world's 'top 50 cities'

London received the same score as it did in last year's survey

London is the only UK city to have been ranked in a global top 50 for quality of living, but comes in at a lowly 39th spot, a new survey has suggested.

The study was based on factors including crime, political stability, hospitals, transport, food and drink, leisure, climate and personal freedom.

The Mercer Quality Of Living ranking assesses 221 cities to help governments and firms place staff on assignments.

Vienna was ranked at the top of the list for the second year running.

London was followed by Aberdeen at 53rd position, Birmingham at 55, Glasgow at 57 and Belfast at number 63.

Mercer carries out the study to help governments and companies compensate employees fairly when sending them on international assignments.

Baghdad at bottom

The least desirable city of the 221 in the study was the Iraqi capital Baghdad, placed at the bottom of the list due to its lack of safety and stability.

European cities dominated the spots in the index, with Zurich and Geneva in Switzerland in second and third place and the German cities of Dusseldorf, Frankfurt and Munich in sixth and joint seventh place.

Dublin was ranked in 26th place.

TOP 10 CITIES 1. Vienna, Austria 2. Zurich, Switzerland 3. Geneva, Switzerland 4. Vancouver, Canada 4. Auckland, New Zealand 6. Dusseldorf, Germany 7. Frankfurt, Germany 7. Munich, Germany 9. Bern, Switzerland 10. Sydney, Australia Source: Mercer 2010 Quality of Living Survey Send us your comments

Slagin Parakatil, senior researcher at Mercer, said: "As the world economy becomes more globalised, cities beyond the traditional financial centres are emerging as attractive places in which to expand or establish a business.

"Cities in many emerging markets, such as in the Middle East or Asia, have seen a significant influx of foreign companies and their expatriate employees in recent years.

"To ensure their expatriates are compensated appropriately and an adequate hardship allowance is included in their benefits package, companies seek a clear picture of the quality of living in these cities.

"We have reviewed our index to reflect these developments and it now better represents the cities that most interest our clients."

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Brazil's booming agriculture sector eyes global markets

By Paulo Cabral BBC News, Ponta Grossa, Parana Much of Parana's original forest cover has long been cleared

The plantation isn't looking so good this time of the year, the weather has been quite rough. Most of the corn has already been harvested and the remaining plants are quite small.

A big modern-looking harvester moves slowly past the workers' houses to start the day's work. But it has to stop after a few minutes because the stems, broken by strong rain and wind, jam the blades.

But appearances can be deceptive. This is a highly productive plantation in the southern state of Parana - the heart of Brazil's traditional grain-growing region.

"In this region it's all about agriculture, and modern agriculture," says farmer Luciano Agottani proudly.

"In terms of quality of grain and level of productivity we are nothing short of the best there is in the world."

Brazil is the world's biggest producer of coffee, oranges and sugar cane.

It is the second largest grower of soy, and the third for corn. And it is growing faster than its competitors.

"We have the fourth largest agricultural system in the world, after China, the United States and Europe," says Dr Guilherme Dias, professor of rural economy in the University of Sao Paulo.

"But their production is stalled while Brazil's is growing fast, so I think we will be ahead of United States and Europe in about 20 years."

Research facilities

Brazilian farmers have always had the advantages of a vast territory and a favourable climate.

Cheap labour also plays its part - but it was investment in technology that brought the country to its position among the top agricultural producers in the world.

Milk farmer Manfred Rosenfeld finds it hard to compete against EU subsidies

Agricultural research is not new in Brazil.

It began to take shape in the mid-1970s, when government launched Embrapa, a research institute that now exports its expertise in tropical agriculture to countries in Africa and Asia.

Over the last 10 years the arrival of the genetically modified grains and growing investment in farm mechanisation laid the groundwork for the current boom.

Brazil's agriculture fulfils the country's needs in almost all sectors - with wheat being the only significant import.

Brazil also exports 25% of its produce.

But with domestic markets growing at a slower pace than the output, the only way for producers is to look abroad.

"The research in tropical agriculture in Brazil is really impressive. Productivity has been increasing a lot and the country is diversifying its output," says Dr Dias.

"That's what gives people the impression that Brazil is getting ready to feed the world."

Milk may be next in line for export. Producers are nearly reaching the ceiling of the internal market and are starting to look for opportunities abroad.

But dairy farmers complain that subsidies in Europe and the US create barriers for their business.

"It is sometimes cheaper to import milk than to buy it here in Brazil," says Manfred Rosenfeld, who was an engineer in the car industry before he decided some 10 years ago to switch to dairy farming.

To bypass subsidies and increase profits, Mr Rosenfeld has a strategy: tap into the market of processed food.

Continue reading the main story

The machinery we sell has quite a lot of technology on board. Sometimes it's hard to find people with qualification to operate them.

Walter van Halst Machine salesman

"We make yogurt, milk caramel, cheese spread and we are now in a project to build a much bigger plant.

"Exporting milk pays very low margins but I think there is a big market and more profits to be made in dairy products," says Mr Rosenfeld.

His drive to add value to products is shared by a growing number of farms in Brazil and has created many investment opportunities in agribusiness.

Skill shortage

"We've grown 400% over the last 10 years because we have diversified our production and added value to it," says Marco Bomm, projects manager of Castrolanda, a rural co-operative created by families of Dutch immigrants in Parana.

The cooperative has a plant to produce crisps from the potatoes.

"Four kilos of crisps fetch the same price as a bag of 50kg of potatoes. I think adding value to our production is the way to go," says Mr Bomm.

However, Brazil has many overcome several obstacles if it is to realise its full potential.

One key issue is education.

Cheap labour has played a great part in the development of Brazilian agriculture, but on the other side, a lack of qualified workers is hindering further growth.

Many are concerened with the amount of land used for food production

"The machinery we sell has quite a lot of technology on board. Sometimes it's hard to find people with qualification to operate them," says Walter van Halst, a reseller of farm machines in the town Ponta Grossa.

Despite these limitations, a growing number of farms in Brazil are becoming mechanised.

According to industry data, sales of farm machines in Brazil increased 52% in the first four months this year compared with the same period of 2009.

"The government has some programmes to boost the sales of tractors to small farmers and it seems to be going well", says Mr van Halst, who moved to Brazil in 1985 after taking a degree in tropical agriculture in his homeland, the Netherlands.

"When you study tropical agriculture in the Netherlands you already know you will have to live elsewhere.

"When I came in 1980s this was already a well-established grain-producing region," he explains.

Today, the main market for machines is in central and northern Brazil.

"Many of the settlers went there from Parana and other states from the South. They took the same culture of deforestation that guided the growth of agriculture here," says environmentalist Jose Alvaro Carneiro.

The state of Parana used to be covered by a dense jungle combining tropical and temperate vegetation.

The araucaria pine - with its long straight stem and branches coming out only from the very top - is its best-known feature.

But 90% to 95% of the forest have been razed to make way for cities and farms.

"We need to increase productivity and to recover degraded land instead of cutting down more trees to make space for agriculture," says Mr Carneiro.

"We have to learn what has happened here to protect what we have left in Parana and to preserve other areas of the country, specially the Amazon," he adds.

Source

US demands world response over Korea warship sinking

Mrs Clinton pledged US support

US Secretary of State Hillary Clinton says the international community must respond in the growing crisis over the sinking of a South Korean warship.

She said there was "overwhelming" evidence that North Korea was to blame, and urged Pyongyang to halt its "policy of belligerence".

Mrs Clinton was speaking in South Korea at the end of an Asian tour.

North Korea denies it was responsible, and has warned of retaliation if action is taken against it.

After an international investigation produced proof that the ship, the Cheonan, was hit by a North Korean torpedo, South Korea announced a package of measures, including a halt to most trade. It is also seeking action via the United Nations Security Council.

The North then announced, late on Tuesday, that it was cutting all ties with the South. It has also banned South Korean ships and planes from its territory.

South Korean Foreign Minister Yu Myung-hwan told a joint news conference he and Mrs Clinton had agreed that North Korea should take responsibility for the sinking of the Cheonan, torpedoed on 26 March with the loss of 46 lives.

"This was an unacceptable provocation by North Korea and the international community has a responsibility and a duty to respond," Mrs Clinton said.

Continue reading the main story

North Korea has a record in calculated risk. This crisis might be another example of that

Paul Reynolds, World affairs correspondent, BBC News website War rhetoric could end in dialogue Send us your comments

The incident required "a strong but measured response," she said.

Before going to Seoul, Mrs Clinton had two days of discussions in Beijing with her Chinese counterparts.

She has been pressing China to join the international condemnation but Beijing is taking a cautious line, calling for restraint.

"I believe that the Chinese understand the seriousness of this issue and are willing to listen to the concerns expressed by both South Korea and the United States," Mrs Clinton said on Wednesday.

"We expect to be working with China as we move forward in fashioning a response."

Chinese Vice-Foreign Minister Zhang Zhijun earlier said his country was still evaluating information on the sinking of the Cheonan.

"We have always believed that dialogue is better than confrontation," he added.

Tank exercises

With tensions rising rapidly, the North has reacted angrily to trade and shipping sanctions announced by the South.

SINKING OF CHEONAN - KEY DATES

Continue reading the main story

• March 26: Explosion hits naval corvette near disputed maritime border, killing 46 on board
• May 20: Independent investigators produce proof North Korean torpedo struck vessel
• May 24: South Korea declares trade with North frozen, demands apology
• May 25: North Korea announces it is severing all ties with South

Korean propaganda fight How South Korean ship was sunk Q&A: Cheonan sinking Timeline: North Korean attacks

"If South Korea takes any provocative actions against us in terms of political, economic and military measures, backed by the United States, we will respond with war for justice," said the state-run KRT television channel.

"We will remove all the human trash from the Korean peninsula and build up a united Korea."

Pyongyang said on Wednesday it would cut off a road link across the heavily defended border if Seoul resumed propaganda broadcasts, halted six years ago.

Earlier, the North said it would match Southern sanctions with its own, and sever the few remaining lines of communication between the two governments.

South Korean ships and planes would be banned from Northern territorial waters and airspace.

All South Korean workers in the jointly-run Kaesong industrial park north of the border were expected to be expelled although they were allowed to enter on Wednesday, Reuters news agency reports.

Apart from Kaesong, there is little economic relationship left between the two states, their ties almost frozen since Lee Myung-bak took office in 2008, the agency notes.

"North Korea is not closing up Kaesong immediately because it is saving the cards it needs in order to play the game," said Jang Cheol-hyeon, a researcher at the Institute for National Security Strategy.

The two states are technically still at war after the Korean conflict ended without a peace treaty in 1953.

South Korean K1 tanks could be seen on Tuesday conducting an exercise to prepare for a possible surprise attack by North Korea.

Source

US pressures China to condemn North Korea 'aggression'

By Kim Ghattas BBC News, Elmendorf Air Force base, Alaska Mrs Clinton said China and the US saw things from a different perspective

US Secretary of State Hillary Clinton left Asia after a week of intense discussions in Japan, China and South Korea seemingly empty-handed but sounding optimistic about the prospect of international consensus on a response to North Korea's actions.

But much still depends on the deliberations currently taking place inside the Chinese government about how to handle the dilemma their allies in Pyongyang have presented.

Throughout her trip, Mrs Clinton emphasised that Beijing understood the gravity of the situation and that no-one was more concerned about stability and peace of the Korean peninsula than the Chinese.

She also said it was in everyone's interests, including China, to make a persuasive case for North Korea to change direction.

Mrs Clinton acknowledged that China and the US often saw things from a different perspective.

Washington has been seeking to send a strong signal to North Korea to make clear it cannot get away with the sinking of a South Korean warship.

Beijing has traditionally been reluctant to push Pyongyang. It fears the consequences of instability or regime collapse inside North Korea, with which it shares a border.

But North Korea's actions in themselves have now caused considerable tension in the region, and US officials believe this is giving China some pause for thought.

Chinese scepticism

During her four-hour visit to Seoul, Mrs Clinton said it was in everybody's interests, including China's, to persuade North Korea to change direction.

"I think it's fair to say that China is in the process of looking hard at what its interests are on the Korean peninsula and its positioning vis-a-vis North Korea," said one senior American government official.

Foreign experts back the theory of a torpedo attack

But the Chinese will be careful about what they say in public and will avoid looking like they're taking sides with South Korea and by extension the US, because it would look like they have abandoned their ally.

The Chinese have so far refused to criticise North Korea and have only called on all sides to show restraint.

They've also shown scepticism about the results of an international investigation which determined that it was a North Korean torpedo that sank the warship Cheonan in March.

During her trip, Mrs Clinton repeatedly referred to the investigation as "objective" and "scientific" in a clear message to the Chinese, saying the conclusions were inescapable.

During a joint news conference in Seoul, South Korean Foreign Minister Yu Myung Hwan said that "the Russians and the Chinese of course will take their time I'm sure, but they will not be able to deny the facts".

US officials in the delegation to China said they had shared with the Chinese specific information about the sinking of the Cheonan. Several American experts participated in the investigation.

'Profound frustration'

The episode is reminiscent of the time last year when the Americans presented the Russians with evidence that Iran had a secret nuclear facility at Qom.

Continue reading the main story

Many see Beijing's 'muddle-through' strategy as a disappointing symbol of its inability to play a leadership role in East Asia

Victor Cha Center for International Strategic Studies

The Russians were furious that their allies in Tehran had kept this from them and they decided to finally back a further round of UN sanctions against Iran.

"There is substantial debate (in China) about how to proceed on North Korea," another senior US official said.

"I think it began last year with the nuclear missile test. I think it is accelerating now.

"There are discussions within the leadership and outside the leadership, there is profound frustration with North Korean behaviour and the way in which it complicates China's own security calculations."

Neighbouring Japan announced on Sunday that it would not move a US base off the island of Okinawa, despite promises made by Prime Minister Yukio Hatoyama during his election campaign.

After months of negotiations and growing tension between Washington and Tokyo about the Futenma base, fear of instability in the region following North Korea's actions finally prompted Japan to stick to a deal agreed to under a previous Japanese government to relocate the base to a different part of the island.

The American officials said that the US was now working with South Korea to get statements of condemnation from the Association of South East Asian Nations (Asean) - as well as the G8 and the G20 - while helping Seoul in its efforts to bring the issue to the UN.

It's unclear how quickly the UN could take up the issue. The Security Council is currently working to push through a much debated and much awaited resolution imposing further sanctions on Iran.

Introducing a resolution on North Korea before the Iran vote is sealed may muddy the waters.

On both issues, the US needs China's backing.

The results of the internal Chinese deliberations may become clear later this week, when Chinese Premier Wen Jiabao travels to South Korea for a summit with South Korean and Japanese leaders.

China will come under increasing pressure in the region to acknowledge North Korea's role in the Cheonan incident and may be wary of alienating Seoul and Tokyo - two important trading partners.

"While most understand China's dilemma, many see Beijing's 'muddle-through' strategy as a disappointing symbol of its inability to play a leadership role in East Asia commensurate with its rise," wrote Victor Cha, from the Center for International Strategic Studies in Washington, who handled North Korea as a National Security Council official under President George W Bush.

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North Korea scraps South Korea military safeguard pact

10 South Korean warships took part in an anti-submarine drill

North Korea has announced it will scrap an agreement aimed at preventing accidental naval clashes with South Korea, amid rising tensions over the sinking of a South Korean warship.

The move is in retaliation for Seoul blaming Pyongyang for a torpedo attack that sank the Cheonan in March.

The announcement comes as the South Korean navy conducts a major anti-submarine drill.

An international probe found the Cheonan was sunk by a Northern torpedo.

North Korea has denied the allegation.

In a statement on the North Korean official news agency on Thursday, the North Korean military said the country would "completely nullify the bilateral agreement that was concluded to prevent a contingent clash in the West Sea of Korea [Yellow Sea].

SINKING OF CHEONAN - KEY DATES

Continue reading the main story

• March 26: Explosion hits naval corvette near disputed maritime border, killing 46 on board
• May 20: Independent investigators produce proof North Korean torpedo struck vessel
• May 24: South Korea declares trade with North frozen, demands apology
• May 25: North Korea announces it is severing all ties with South

Korean propaganda fight Korean War armistice Q&A: Cheonan sinking Timeline: North Korean attacks

"In connection with this, [we] will completely stop using international maritime ultra-short wave walkie-talkies and will immediately cut off the communication line that was opened to handle an emergency situation."

It also warned of an immediate attack if the South's navy violated the disputed Yellow Sea borderline, and that it would consider a complete block on access to a joint industrial project in the North Korean city of Kaesong.

The BBC's John Sudworth in Seoul says the announcement is another piece in the picture that is coming out of North Korea of increasing tension.

On Tuesday, North Korea announced it would sever all ties with the South.

It had also banned South Korean ships and planes from its territory - a measure it repeated in its Thursday statement.

South Korea will "resolutely" deal with the North's measures, a South Korean defence ministry official said without elaborating, according to the Associated Press news agency.

South Korea had already announced a package of measures, including a halt to most trade with North Korea. It is also seeking action via the United Nations Security Council.

The Yellow Sea was the site of deadly naval skirmishes in 1999 and 2002.

South Korean drill

Thursday's announcement came hours after 10 South Korean warships took part in an anti-submarine drill.

The South Korean exercise is one of the first visible signs of a raising of South Korea's defence posture in response to the incident, our correspondent says.

With tensions rising rapidly, the North has reacted angrily to trade and shipping sanctions announced by the South.

The two states are technically still at war after the Korean conflict ended without a peace treaty in 1953.

Source

Can one person oversee every spy?

By Finlo Rohrer BBC News, Washington Dennis Blair is the third director of national intelligence to leave in five years

Dennis Blair is spending his last day as director of national intelligence, but can one person be reasonably expected to oversee the US's huge intelligence apparatus?

Many people outside the US would know who the CIA and the FBI were. Some might even have heard of the NSA (National Security Agency), but the US has a host of intelligence entities beyond these three.

The US Navy alone has two agencies that deal with intelligence, the US Coast Guard has two more. The departments of Energy and Treasury both have their own intelligence services.

Continue reading the main story

If you want the individual to break heads, it is hard to find somebody from within professional intelligence who can do that

Philip Mudd Former CIA and FBI analyst

The sheer volume of agencies and the number of personnel working for them, both in gathering intelligence and analysing it, leave some pundits pessimistic about whether Mr Blair's successor - yet to be nominated by the president - can do his job well.

"As to having one person in control of all intelligence activity, I'm not certain that's possible," says Philip Mudd, former CIA and FBI analyst and senior research fellow at the New America Foundation.

"There are something like 17 intelligence agencies - army intelligence and navy intelligence and so on.

"To expect that one person can have enough of a pulse on these agencies to be the responsible party when there is a perceived gap, as we saw on the 25 December incident [alleged attempt to blow up a Northwest Airlines flight by Umar Farouk Abdulmutallab], is not realistic."

No power

The post of director of national intelligence was created in the wake of the 9/11 Commission's recommendations in 2004. The aim was to make sure that the US's different intelligence agencies shared information and co-ordinated their efforts properly.

The alleged Christmas Day bomb plot led to criticism of security co-ordination

But some see the fact that there have been three directors already as showing that the post has not worked out.

"He has no power, no leverage. He can't make anything happen. He doesn't control anything of significance in the [intelligence] community," says Mark Lowenthal, former deputy assistant secretary of state for intelligence and president of the Intelligence and Security Academy.

"He is just there to try and get people to listen to him and co-ordinate. He can't. I think we have proved that to everyone's satisfaction."

The intelligence services - and by extension Mr Blair - came under criticism for the alleged Christmas Day plot, and even for the failed Times Square bomb attack.

Political connections

In a recent statement, Mr Blair admitted: "Institutional and technological barriers remain that prevent seamless sharing of information."

Mr Blair himself was reported to have clashed with CIA chief Leon Panetta about the appointment of intelligence representatives around the world.

OTHER SERVICES

Continue reading the main story

• Defense Intelligence Agency: Co-ordinates military intelligence agencies and units
• Office of Terrorism and Financial Intelligence: Provides intel for Treasury
• Bureau of Intelligence and Research: Works within State Department
• Office of Intelligence and Analysis: Co-ordinates intel within Department of Homeland Security

But could power struggles be resolved and the post of director of national intelligence be made to work?

"Many will watch closely whether the person is a professional intelligence officer or an outsider, someone who has political connections that might give him or her more authority to try to assume a directive role," says Mr Mudd.

"If you want the individual to break heads, it is hard to find somebody from within professional intelligence who can do that."

One option would simply be to abolish the post.

"You could also get rid of it, which I think would be a more realistic situation, a better solution than the status quo," says Benjamin Friedman, research fellow in defence and homeland security at the Cato Institute think tank.

"But we never get rid of things in the US government. With bureaucracy there is birth but never death."

Go back?

There is a case for returning to the structure that existed before Mr Blair's post was created, Mr Lowenthal suggests.

The failed Times Square bomb attack focused attention on domestic threats

Then the job of co-ordinating the intelligence community fell to the director of central intelligence, who also ran the CIA.

"It worked better when the DCI [had the role]. He knew the analysts that produced the papers," says Mr Lowenthal, who was assistant DCI for analysis.

The other option would be to give the DNI control over every intelligence agency, control of budgets, control of strategy.

"There are those that see the DNI as an intelligence tsar, that he should be the boss of the whole effort and everybody should report to him," says Mr Richelson.

"That can only lead to a lot of infighting, a lot of tough hours and ultimately won't get done."

But is there an argument that - in the absence of major bomb attacks - US intelligence is actually performing fairly well?

Some see Leon Panetta as the most powerful intelligence community figure

"We have been very successful," says Mr Lowenthal. "The fact they are attacking in ones is a sign of success. The unspoken standard is perfection."

Part of the way intelligence is perceived may be influenced by the constant stream of fictional portrayals - like the Bourne trilogy and a slew of others.

"There is unreasonable expectation partly fed by popular culture where there is always a satellite overhead," says Mr Richelson.

"In reality, no matter how much you collect you are only watching and listening to a small part of the total environment."

Source

Into the Thunder Dragon

Watch more free documentaries

I recently saw a QandA on Cspan, with the creator of snagfilms, and through that discussion i was able to find the site.

What a treasure trove of content. I will definitely keep snagging films to this blog, and I wish Ted the best in all his endeavors.

You can check out the creator of snagfilms.com at tedstake.com

Alan Grayson -- A True American Hero

Rep Alan Grayson Introduces the War Is Making You Poor Act

Alan Grayson (High Quality Version): Is Anyone Minding the Store at the Federal Reserve?

Alan Grayson: "Which Foreigners Got the Fed's $500,000,000,000?" Bernanke: "I Don't Know."

Grayson v. Broun on the Constitution

Rep. Alan Grayson: Stop Gold-Plating Defense Contracts

Rep. Alan Grayson: $12 Trillion Gone and No One Punished

MSNBC: Alan Grayson on GOP on the Olympics: "Someone should remind them what team they're really on"

Rep. Alan Grayson Passes Bill to Audit the Fed

Alan Grayson on Bill Maher: GOP Health Care Reform Would Be Letting You Bring A Gun to the Doctor

Alan Grayson on the Worst Deal Since Manhattan Was Sold for $24 in Trinkets

Rep. Alan Grayson: You Own the Red Roof Inn, Thanks to the Fed

Australia expels Israeli diplomat over Dubai killing

Mahmoud al-Mabhouh was killed in his hotel room in Dubai on 19 January

Australia has expelled an Israeli diplomat saying Israel was behind the forging of Australian passports linked to the murder of a Hamas operative in Dubai.

Australia's foreign minister said these were "not the actions of a friend".

The UK took similar action in March, after concluding that Israel was responsible for the use of forged UK passports in the plot.

The Israeli foreign ministry said Australia's decision was disappointing.

Ministry spokesman Yigal Palmor said it was "not in line with the importance and the quality of the relationship between our countries".

'Sorrow not anger'

At least four forged Australian passports were used in the killing of Mahmoud al-Mabhouh in Dubai in January. The originals belonged to Australians living in Israel.

Foreign Minister Stephen Smith: "I have asked that the withdrawal be effective within the week"

The Australian government said a police investigation had left it in no doubt that the Israeli authorities were behind "the abuse and counterfeiting of the passports".

As a result Foreign Minister Stephen Smith asked Israel to withdraw a diplomat, whom he did not identify

"The decision to ask Israel to remove from Australia one of its officers at the Israeli embassy in Canberra is not something which fills the Australian government with any joy," he said.

"On the contrary, the decision was made much more in sorrow than in anger."

Passports from France, Ireland, Germany and Britain were used in the operation, and in March, the British government expelled an Israeli diplomat from London.

The Israeli government has said there is no proof that it was behind the killing, although Dubai officials have said they are 99.9% sure that agents from Mossad were responsible.

Source

S Korea freezes trade with North over warship sinking

South Korea has suspended trade with the North and demanded an apology, after a report blamed Pyongyang for sinking a Southern warship.

President Lee Myung-bak said those who carried out the attack, which killed 46 sailors, must be punished.

North Korea's main newspaper called the investigation an "intolerable, grave provocation".

The White House endorsed the South's move, and pledged its co-operation "to deter future aggression".

Meanwhile, US Secretary of State Hillary Clinton has urged China to co-operate with the US on North Korea.

Mrs Clinton told a US-China summit in Beijing that Pyongyang must be held to account for the attack on the Cheonan.

"We ask North Korea to stop its provocative behaviour... and comply with international law," she added.

China is North Korea's closest trading partner and has in the past been reluctant to take tough measures against the communist state.

The North depends on South Korea and China for up to 80% of its external trade and 35% of its GDP. In 2009, inter-Korean trade stood at $1.68bn (£1.11bn) - 13% of the North's GDP.

Analysis

Continue reading the main story

John Sudworth BBC News, Seoul

The measures South Korea has taken draw a line, once and for all, under the more optimistic era of growing trade and engagement between the two Koreas.

In his live television address, President Lee Myung-bak warned of a danger of complacency.

In addition, South Korea says it will resume "psychological operations" against the North, a reference to the radio and loudspeaker broadcasts that were suspended in 2004, and meet any further attack with an immediate military response.

It may also try to use the referral to the UN Security Council to push for a toughening of sanctions, a move that would infuriate the North.

In a strongly worded televised address, Mr Lee said that the South was forgetting that it shared a border "with one of the most war-mongering nations on Earth".

"From now on, the Republic of Korea will not tolerate any provocative act by the North and will maintain a principle of proactive deterrence," the president said.

"If our territorial waters, airspace or territory are militarily violated, we will immediately exercise our right of self-defence.

"Under these circumstances, any inter-Korean trade or other co-operative activity is meaningless," Mr Lee said, adding that North Korean ships would no longer be allowed to use South Korean water.

And he added: "I solemnly urge North Korean authorities to do the following: Apologise immediately to the Republic of Korea and the international community. Immediately punish those who are responsible for and those who are involved in the incident."

Mr Lee added that South Korea would refer the North to the UN Security Council in response to the sinking of the Cheonan.

KOREAN TRADE FIGURES

Continue reading the main story

• The North depends on South Korea and China for up to 80% of its external trade and 35% of its GDP
• In 2009, inter-Korean trade stood at $1.68bn - 13% of the North's GDP
• South Korea imports clothes and watches from the joint Kaesong industrial complex; the North imports textiles and electronics

But South Korean Unification Minister Hyun In-taek said Seoul would still maintain the joint economic project in Kaesong, even though it would "respond with resolute measures" to possible attempts by the North to undermine the safety of its workers.

The BBC's John Sudworth in Seoul says the measures are probably about as tough a response as the South could take, short of military action.

In his statement of support, US President Barack Obama said: "We endorse President Lee's demand that North Korea immediately apologise and punish those responsible for the attack, and, most importantly, stop its belligerent and threatening behaviour.

"US support for South Korea's defence is unequivocal, and the president has directed his military commanders to co-ordinate closely with their Republic of Korea counterparts to ensure readiness and to deter future aggression," the statement, released by White House spokesman Robert Gibbs said.

South Korea's regional ally, Japan, also said it was considering possible sanctions against North Korea.

ATTACKS BLAMED ON NORTH

Continue reading the main story

• Jan 1967 - South Korean warship attacked near border, 39 sailors killed
• Jan 1968 - presidential palace in Seoul stormed, 71 killed
• Oct 1983 - Rangoon hotel used by South Korean president bombed, 21 killed
• Nov 1987 - South Korean airliner bombed, 115 killed
• Mar 2010 - Cheonan warship attacked, 46 sailors killed

How the ship was sunk Timeline: North Korean attacks Q&A: Cheonan sinking

The measures came less than a week after experts from the US, the UK, Australia and Sweden said in a report that a torpedo had hit the ship.

They reported that parts of the torpedo retrieved from the sea floor had lettering that matched a North Korean design.

North Korea denies any involvement in the sinking, calling the investigation results a "fabrication" and threatening war if sanctions are imposed.

The South's new measures included resuming psychological warfare against North Korea, which was stopped in 2004, which prompted an angry response from Pyongyang.

"If [South Korea] sets up new tools for psychological warfare such as loudspeakers and leaves slogans for psychological warfare intact, ignoring our demands, we will directly aim and open fire to destroy them," a statement by the military said on Monday.

"More powerful physical strikes will be taken to eradicate the root of provocation if [South Korea] challenges to our fair response," said a commander, according to official news agency KCNA.

Source

CrossTalk on Climate: Global skepticism warms up?

Inside Story - Israel's withdrawal from south Lebanon

The Biggest Domino - China

Check it out here , a very telling discussion of the huge income disparity in china.

A must see for everyone that thinks China will reign dominant in the future. The Chinese have their own problems as well.