NORTH KOREA RILED BY ARMS DELIVERY TO SOUTH KOREA.

North Korea reacted sharply on September 30 to the recent delivery of Russian BMP-3 combat fighting vehicles and T-80 tanks to South Korea. The North Korean news agency called these actions "reckless and irresponsible" and a "serious military-political problem which jeopardizes peace and security in the Korean peninsula." It also described the Russian actions as a crime and said that if they continued "there will be a need to square accounts." Russia is delivering the arms to South Korea as part of a deal to pay back the Soviet Union’s large debt. Although the South Koreans have traditionally relied on American military equipment, they plan to equip a test battalion with Russian arms. (ITAR-TASS, 30 September)

New Agency to Oversee Defense Financing