China holds governor of Korean enclave

The tangled tale of a planned capitalist enclave in North Korea took another bizarre twist yesterday when Chinese police took away the region's governor for questioning.

Yang Bin, a Chinese with Dutch nationality, was taken from his home at dawn yesterday, a spokesman for the flower tycoon said. His where- abouts are unknown.

The semi-official China News Service said Mr Yang had been summoned for questioning about suspected "illegal business activities", although Shenyang police denied they had arrested him and a spokesman for the Dutch embassy said he had no knowledge of the incident.

Mr Yang has admitted to owing some 10m yuan (£770,000) in taxes in Shenyang in north-eastern China. He said on Thursday he had discussed the issue with the authorities and would pay the taxes before the 12 October deadline.

A South Korean minister, Rhee Bong Jo, said he did not think Mr Yang's detention had anything to do with North Korea's planned capitalist enclave at Sinuiju. The aim is for a Hong Kong-style enclave, walled off from the rest of North Korea, and is part of Pyongyang's tentative economic reforms as it seeks to improve relations with neighbouring countries. Mr Yang had been due to go to Sinuiju yesterday.

When he was appointed late last month, Mr Yang promised the doors of Sinuiju would be flung open last Tuesday.

That deadline passed, but foreign reporters were invited to accompany him across the North Korean border on Thursday. However, Mr Yang was unable to get visas and said it might be weeks before they were issued. Chinese police then ordered foreign reporters out of the area.

Pro-China journalists have said Beijing, despite a public welcome, has been against the scheme from the start. Mr Yang has said he sees no reason for China to hamper the development of the zone.