Currency reserves pattern unlikely to change -- Kudrin.

MOSCOW, October 13 (Itar-Tass) -The pattern of currency reserves is
unlikely to change in the medium term, Alexei Kudrin, Russian Vice-Premier
and Minister of Finance, has said in an interview to the Industrialist of
Russia journal, PRIME-TASS reports.

"In the short and medium terms sharp changes in the pattern of
currency reserves is unlikely, by virtue of the fact that a 'sellout' of
dollar obligations would have led to a substantial decrease in their
value," Kudrin said. "This appplies to both Russia's reserves, which are
already characterised by a much lesser share of the dollar than world ones
-- about 49 percent as against 41 percent of that of the euro," he added.
The Minister regards as most likely the prospect for a further smooth
diversification of reserves. Changes may come about resultant of the
existing national currencies or the use of supranational reserve
currencies -- such as the euro.
He mentioned as an example China's initiative proposing the use of the
Special Drawing Rights of the International Monetary Fund. However that,
in his view, would take many years to accomplish. The US dollar and the
euro currently remain the main reserve currencies of the world, Kudrin
recalled.
In ten years from now, the Russian Finance Minister believes, the
Chinese yuan may become a convertible and reserve currency.
"The Russian rouble, while it has not yet become completely a regional
reserve currency, has the signs of such one", Kudrin maintians. "The most
favourable conditions for an expansion of the sphere of the use of the
rouble as one of international settlement currencies are taking shape in
trade-and-economic relations with partners for the Eurasian Economic
Community (EURASEC), the Commonwealth of Independent States, and with
China," he said. In 2008, the Minister recalled, the share of settlements
in roubles among EURASEC members was 52.6 percent.

.DPRK prepares new short-range msls launches--Yonhap.

TOKYO, October 13 (Itar-Tass) - Following the launch of five
short-range missiles on Monday, the Democratic People's Republic of Korea
(DPRK) can now prepare new actions of this kind, the South Korean Yonhap
news agency reported on Tuesday referring to a government source in Seoul.
Yonhap data have it that there are signs of preparation for new
launchings of such missiles from the western coast of the DPRK.
Five missiles with a range of up to100 kilometres were launched from
the country's eastern coast on Monday, supposedly from the zone of the
Musudang-ni military range.
Earlier Pyongyang had imposed a ban on navigation from October 10 to
20 off its eastern and western coasts. The UN Security Council resolution
forbids the DPRK to carry out the launchings of ballistic missiles.
However, such a restriction does not apply to short-range missiles.
Expert opinion is that the present tests are intended to enhance
Pyongyang's positions ahead of a possible resumption of direct talks with
the United States on the North Korean nuclear programme. According to
South Korean intelligence data, the DPRK has at its disposal several
hundreds of short-range missiles.

.DPRK accepts SKorea offer of talks on flood prevention.

SEOUL, October 13 (Itar-Tass) - The Democratic People's Republic of
Korea (DPRK) has accepted South Korea's proposal on the holding of talks
this week to discuss ways to prevent floods in the area of the borderline
river Imjinggang in the western sector of the inter-Korean border.
Such talks, in particular, are to deal with measures to prevent in
future a recurrence of sudden discharges of water from North Korean dams
in the upper reaches of the river, an official at the South Korean
Ministry for Unification announced on Tuesday.
The North Korean side has suggested the border town of Kaesong, where
an inter-Korean industrial complex is in operation, as venue for talks
that are likely to begin on Wednesday.
Six South Korean nationals, who found themselves on the bank of the
Imjinggang, had died on September 5, this year, as a result of an
unannounced discharge of water through a North Korean dam. At that time,
in response to Seoul's protests, the North Korean authorities said they
had had to discharge surplus water through one of the dams and promised to
prevent such incidents in the future.

.DPRK-launched msls were ballistic--RK FM official.

TOKYO, October 13 (Itar-Tass) - The missiles launched by Pyongyang on
Monday were ballistic ones and, consequently, such tests violated the ban
imposed by the United Nations Security Council (UNSC), a South Korean
Foreign Ministry official told the Yonhap news agency on Tuesday.
The Ministry official said the five KN-02 missiles with a range of 120
to 140 km were a modernised version of the Soviet ballistic missiles known
in the West as the SS-21.
UNSC resolutions dated 2006 and 2009 forbid the DPRK to engage in any
activities connected with ballistic missiles. The diplomat said the
Republic of Korea now mulls over the question of reaction to such actions
of the North, including the issue of a protest statement.
The RK diplomat expressed hope that the UNSC would also express its
attitude to a violation of its resolutions by Pyongyang.
-0-pop