Pyongyang has discovered the remains of Japanese who stayed on the Korean Peninsula after the war, one of the North's senior officials told a visiting Japanese delegation this week.

But Tokyo is handling the matter with caution, fearing it may be just another of Pyongyang's ruses following last week's botched missile launch that left the communist regime even more isolated on the global stage, sources in the delegation said.

Song Il Ho, North Korea's point man on bilateral affairs with Japan, conveyed the news to members of the delegation during their trip to Pyongyang to attend celebrations Sunday of the centenary of state founder Kim Il Sung's birth, the sources said.