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Thousands dead, in N.Korea rail blast

SEOUL, Friday (Reuters) Up to 3,000 people were killed or injured when two fuel-laden trains collided and exploded at a North Korean station just hours after leader Kim Jong-il had passed through, according to South Korean media.

Friday's newspapers said the station was in the centre of the town of Ryongchon near the Chinese border, possibly accounting for the high casualty figure. There was no confirmation of the reports which spoke of widespread destruction.

"There clearly was a large explosion there of some sort," said a U.S. official in Washington. "The number of casualties, cause, is not easily apparent."

South Korea's National Intelligence Service - the prime role of which is to monitor the economically strapped North for signs of political instability - said it was trying to find out what had happened but could not yet confirm the reports.

"The initial impact on the market will be limited because speculation that the collision was aimed at Kim Jong-il appears to be just that at this point," said Shin Sam-chan, a stock market analyst at Hana Securities Co. Yonhap news agency said there were thousands of casualties. An emergency had been declared in the area near the border with China after the early-afternoon blast on Thursday, it said.

"The station was destroyed as if hit by a bombardment and debris flew high into the sky," Yonhap said, quoting unidentified Chinese sources. YTN television in its reports quoted witnesses.

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