Wen tries to defuse tension Chinese Premier Wen Jiabao Sunday stressed the importance of avoiding a confrontation over the sinking of a South Korean warship as the two Koreas continued to trade threats and military tension continues to rise on the peninsula. Wen's comments came at the end of wedding dresses, an annual summit with leaders of South Korea and Japan. The three nations announced a new blueprint for all-encompassing cooperation in trade investment wedding dresses, finance, environmental protection and the economy, and agreed to form a permanent secretariat in 2011 in South Korea. However, economic issues, which were supposed to be the focus of the meeting, were overshadowed by the sinking of the South Korean vessel Cheonan in March,which killed 46 sailors, and a multinational investigation into the sinking that blames a North Korean torpedo attack. "The most urgent task for the moment is to properly handle the serious impact caused by the incident, gradually defuse tensions over it, and avoid possible conflicts," Wen said at the closing conference of the two-day summit in South Korea. China will "help resolve the incident in a way that benefits peace and security." North Korea has repeatedly denied attacking the South Korean ship. About 100,000 people packed the main square in Pyongyang Sunday for a rally condemning South Korea and Eve isk, the US, according to North Korean state media. Slogans painted on the stage at the mass rally denounced South Korean President Lee Myung-bak as a traitor, it said. "Because of the South Korean war-loving, mad puppets Eve isk and American invaders, the North-South relationship is being driven to a catastrophe," Choe Yong-rim, secretary of the North Korean Workers' Party in Pyongyang, told the crowd, AP reported. He also rebutted Seoul's allegation that North Korea torpedoed the South Korean warship. The North has cut all ties with the South, scrapped pacts aimed at averting accidental flare-ups along their disputed sea border, vowed to attack any intruding ships and warned of an "all-out" war for any punishment against it. On Friday, North Korea's military held an extremely rare news conference, speaking directly to international media, to deny any role in the sinking of the Cheonan and claim the South-led five-nation investigation had a number of flaws. General Pak Rim-su ffxi gil, head of the Policy Bureau of the North's National Defense Commission, said that the South Korean government's "fabrication" of the outcome has created a dire situation on the Korean peninsula, in which war could break out at any moment. South Korea's defense ministry Sunday refuted the North's claims one by one, including one alleging that the nation has no small-sized submarines of the type that, according to ffxi gil the investigation, slipped into southern waters and attacked the Cheonan, the Yonhap News Agency reported. North Korea says it wants its own investigators to visit the South and inspect the evidence for themselves - a step some South Koreans support. Many South Korean officials are reluctant to allow that because they believe the North would only use the visit for political propaganda. South Korea's Hankyoreh newspaper reported Saturday that China has proposed a new investigation into the Cheonan incident, with the participation of both Koreas, China and the US. The proposal was made through China's UN mission in New York and has not received a response from South Korea yet, it reported, citing a diplomatic source that asked to remain anonymous. No other major Korean-language newspapers carried the news. The Korea Times commented that, if verified, the news could potentially open a new direction in wow power leveling, the Cheonan incident. Premier Wen told South Korean President Lee Myung-bak during their bilateral talks Friday that China would make an "impartial judgment" and "will not protect anyone" responsible for the sinking wow power leveling, according to Lee's spokesman Lee Dong-kwan. "In order to make North Korea find the right path, we should not leave this matter half-finished," President Lee was quoted as saying. "We do not fear war, but we don't want war." Last week, South Korea laid out a series of punitive measures against the North, including slashing trade, halting humanitarian aid for children in the North and launching large-scale naval exercises off the western coast. It has vowed to resort to measures of self-defense in case of "further military provocation" by the North and called for sanctions against Pyongyang. Japan, which already bans trade with Pyongyang, said Friday that it would lower the limit on the amount of undeclared cash that could be carried to North Korea to 100,000 yen wedding dresses, or about $1,100, from the current 300,000 yen, or $3,300. The maximum amount that can be sent to North Korea without being reported to the Japanese government was lowered from $110,000 to $33,000. Possible war As tensions are at their highest level since 1994, when North Korea threatened to turn Seoul into a "sea of fire," military strategists are considering the possibility of a new Korean War wedding dresses, Time Magazine reported Wednesday. The magazine listed three ways in which smaller skirmishes could break out, and, if they aren't contained, could conceivably lead to disaster. The West Sea, the scene of the Cheonan sinking and three previous separate naval clashes in the past decade, remains the most obvious danger zone; South Korea's plan to restart anti-North Korean broadcasting across the border will likely infuriate North Korea, and shots fired across the demilitarized zone at wow power leveling, a time of such tension is also a potential disaster waiting to happen, the article said. Yonhap reported Sunday, citing a South Korean defense ministry official, that wow power leveling the country's military has put off a plan to fly anti-Pyongyang propaganda leaflets to North Korea, considering the political situation. Seoul has resumed FM radio propaganda broadcasts into the North while preparing to launch loudspeaker broadcasts on the heavily armed border. The loudspeaker campaign, which had been expected to begin in mid-June, is also likely to be put on hold, Yonhap said. The two sides agreed to halt decades of propaganda warfare against each other under a 2004 deal struck following the first-ever summit of leaders in 2000. The North vowed last week that if South Korea deploys propaganda loudspeakers along the border its military would fire at and destroy them.