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SOUTH KOREA REBUILDING RAILWAY LINK WITH NORTH

South Korea today started rebuilding a railroad line across the world's most heavily armed border, saying the new link will serve as an avenue for exchanges with isolated communist North Korea and trade with fast-growing markets in China and Russia.

When completed by next fall, the railway, and a new four-lane highway running alongside it, will link the two capitals -- Seoul, South Korea, and Pyongyang, North Korea.

The railway and highway will become the first direct transport link between the two Koreas since the 1950-53 Korean War.

South Korean President Kim Dae Jung presided over the groundbreaking ceremony.

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