The Defense Agency's 2006 white paper stresses the threat from North Korea's ballistic missiles and criticizes China for a lack of transparency over its growing military spending.</PARAGRAPH> <PARAGRAPH>'North Korea's development, deployment and proliferation of ballistic missiles, along with –

nuclear (arms) issue, are a destabilizing factor for the entire international community," the report reads.

"The range of North Korean missiles is expected to be extended (farther), including possible derivatives of Taepodong-2 missiles," the paper, released Tuesday, says in reference to Pyongyang's test-firing of a long-range ballistic missile on July 5 along with six other missiles.

But the paper does not include a detailed analysis of the North Korean launches because most of the text had been completed by early July, agency officials said.

The annual report examines the security situation around the world and explains Japan's defense policies.