S. Korea pulls workers from North

(Vatican Radio) South Korea's government is pulling out the 175 or so managers at factories they run within North Korea, effectively pulling the plug on a joint project that nets the North about $90 million in wages annually.

Pyongyang pulled its workers from the site weeks ago, and banned South Korea from resupplying its nationals there with food.

Meanwhile, military exercises continued today in South Korea involving U-S troops. North Korea cites the latter as one reason why it will not consider talks right now.

The chairman of the U.S. Joint Chiefs of Staff continued a visit to Japan. General Martin Dempsey reaffirmed Washington's commitment to protecting Japan and other U.S. treaty partners against threats from North Korea.

Japan's defence minister said tensions remain high over North Korea's recent apparent preparations to launch short- and mid-range missiles.

But as time goes by, some analysts are coming to believe Pyongyang has reconsidered, given the international repercussions a launch might have.

Listen to the report by Alastair Wanklyn: