SOUTH KOREA WANTS OIL VENTURES WITH NORTH

SOUTH KOREA WANTS OIL VENTURES WITH NORTH

South Korea will seek joint oil exploration ventures with North Korea as part of efforts to make their economies interdependent, government officials said.

South Korea also will seek trade, electric power and rail links and a jointly developed tourist resort with the North, they said Friday.The measures were included in a policy package aimed at promoting inter- Korean exchanges and presented to President Roh Tae-woo by cabinet ministers Friday.

The ministers did not say when the proposals would be made to Pyongyang. The two countries have yet to establish diplomatic relations.

"Substantial cooperation between South and North Korea should essentially be made through economic exchanges," a presidential spokesman quoted Mr. Roh as saying.

Mr. Roh said business and economic deals would create interdependence, which would maintain ties between the two Koreas.

In February, North Korea broke off talks with South Korea that began last year after Seoul refused to stop an annual 10-week military exercise with the United States.

Communist North Korea, which fought a three-year war, ending in 1953, with the capitalist South, denounced the exercise as a rehearsal for an attack. Seoul and Washington said the maneuvers were defensive.

Friday's package also includes proposals for free contacts between an estimated 10 million Koreans separated by the war, a standardized grammar of the Korean language, and exchanges of athletes, scientists, scholars and students.