North Korea lifts border blockade

North Korea agreed yesterday to allow South Koreans working in a joint industrial zone in North Korea to cross the border after Pyongyang's move to cut the last military hotline to Seoul left hundreds stranded.

North Korea put its troops on alert and cut the hotline on Monday as the American and South Korean militaries began joint manoeuvres.

Analysts say North Korea's actions are designed to persuade US President Barack Obama to establish direct ties with the communist state.

The two Koreas also use the hotline to co-ordinate the passage of people and goods through the heavily fortified Demilitarised Zone, and its suspension shut down traffic and stranded about 570 South Koreans who work at a joint industrial zone north of the border.