May 26 (Bloomberg) -- Japan should consider developing the capability to conduct pre-emptive military strikes given North Korea’s nuclear test yesterday, a ruling party lawmaker said.

“North Korea poses a serious and realistic threat to Japan,” former defense chief Gen Nakatani said today in Tokyo at a meeting of Liberal Democratic Party officials. “We must look at active missile defense such as attacking an enemy’s territory and bases.”

One option would be to equip navy ships with cruise missiles, Nakatani said.

Japan should change its policy and permit attacks on hostile areas, an LDP panel proposed last week following North Korea’s April 5 ballistic missile test. Under Japan’s pacifist constitution, drafted by the U.S. after World War II, the country is forbidden to use force to settle global disputes.

North Korea said yesterday it conducted its second nuclear explosion since 2006 and fired three short-range missiles. The Stalinist country last month said it would strengthen its nuclear deterrence after the United Nations Security Council criticized North Korea’s April missile launch.

The Japanese government has built a defense network since a North Korean Taepodong-1 missile flew over Japan in 1998 that includes anti-missile batteries around Tokyo and is expanding to other major cities. Defense Minister Yasukazu Hamada in March ordered the shooting down of any North Korean missile or related debris that entered Japanese territory.

LDP Debate

North Korea’s first nuclear test, in October 2006, also prompted the LDP to debate whether Japan should be able to conduct pre-emptive strikes. Japan is the only country that has ever suffered a nuclear attack.

LDP lawmakers at today’s meeting advocated tighter sanctions against North Korean leader Kim Jong Il’s regime, including further restricting money flows from Japan to the impoverished nation, according to LDP legislator Kenshiro Matsunami.

Japan last month extended existing sanctions against North Korea for a year. Under the measures, the amount of cash that can be carried to North Korea from Japan without government approval was cut to 300,000 yen ($3,170) from 1 million yen. Japan also lowered the cap on cash wire transfers to 10 million yen from 30 million yen.

Trade between Japan and North Korea fell 97 percent to 793 million yen in 2008 -- all in Japanese exports -- from 21.4 billion yen in 2005, according to Japan’s Finance Ministry.

To contact the reporter on this story: Sachiko Sakamaki in Tokyo at Ssakamaki1@bloomberg.net; Takashi Hirokawa in Tokyo at thirokawa@bloomberg.net.

Last Updated: May 26, 2009 01:58 EDT