North Korean leader Kim Jong-Il is reportedly planning the biggest military parade for more than a decade which will feature thousands of troops, tanks, artillery and missiles.

The Chosun Ilbo newspaper, citing defense analysts, said the regime may choose the occasion to unveil a new multi-stage ballistic missile with a range of up to 4,000 kilometers (2,500 miles).

North Korea's official media said a "mammoth" parade would mark Tuesday's 55th anniversary of the foundation of the communist state. Reports in Seoul said missiles and tanks have been moved to Mirim airport, about 11 kilometers (seven miles) outside the capital, in preparation.

A Seoul government official told the JoongAng Ilbo newspaper the parade would be the biggest since 1992 when the Stalinist state celebrated the 60th anniversary of the founding of its People's Army as a guerrilla force fighting the Japanese occupation of Korea.

Speculation has mounted that North Korea would use Tuesday's celebrations to carry out a nuclear or missile test as a follow-up to three days of acrimonious six-nation talks in Beijing late last month on its nuclear program.

At the meeting North Korea reiterated its demand for a non-aggression pact from the United States while Washington insisted that North Korea dismantle its nuclear programs before it receives concessions.

Signs of flexibility have emerged from Washington with officials indicating that the United States may be willing to consider offering inducements for North Korea to comply.

On Sunday US Secretary of State Colin Powell said the United States would consult with allies what "security assurance" could be offered to North Korea in return for an end to its nuclear weapons program.

South Korean Foreign Minister Yoon Young-Kwan, who met with US President George W. Bush and Powell in Washington last week, said he expected the United States to "actively" address North Korean security concerns at the next round of six-way talks.

"I was told (at talks with Bush) that the United States was actively considering and preparing to address the issue of North Korea's security concerns," Yoon told reporters here.

"I think that the United States may come up with its proposal at the next round of six-nation talks."

The United States has warned that North Korea would face "consequences" if it made good on a threat allegedly made at the talks to carry out a nuclear test and also to prove it had the means to deliver a nuclear weapon with a missile test.

No date has been fixed for a new round of talks bringing together the two Koreas, China, Russia, Japan and the United States.

Officials and analysts said North Korea would be foolish to test either a missile or a nuclear device at this delicate stage in nuclear crisis negotiations.

"North Korea's message to the world from this big military parade on Tuesday is that they are they are ready to face any action or challenge from the United States," said professor Kim Sung-Han of the Institute of Foreign Affairs and National Security here.

"But I am cautiously negative on whether they will carry out any such test. If they did, six-way nuclear talks would quickly become a multilateral sanctions regime."

WAR.WIRE