Even as Cuba said the weapons were "obsolete", but the discovery has raised concern over a possible bilateral arms trade between Havana and Pyongyang in violation of UN sanctions.
The missile radar systems discovered aboard the ship, military analysts said, could be upgraded to make air-defense systems more effective at shooting down modern fighter aircraft.
Panamanian inspectors who discovered the cargo said the weapons were hidden under sacks of sugar.
Panamanian President Ricardo Martinelli said the rusty ship's last stop was in Cuba and was seeking to cross the Panama Canal.
The discovery was made after a five-day standoff between Panamanian marines and 35 North Korean crew members who were armed largely with sticks.
They were finally overpowered and arrested as their captain, claiming he was having a heart attack, tried to commit suicide, the New York Times said.
Cuba's Ministry of Foreign Affairs late Tuesday night said in a statement that the cargo in the vessel consisted of "240 metric tonnes of obsolete defensive weapons" that were being transported to North Korea for repairing before being sent back to Cuba.
However, it was not clear why the ship's crew had fought so hard to repel a search party even as the equipment was said to be worth a nice exhibit in a museum of cold war military artifacts.
"The agreements subscribed by Cuba in this field are supported by the need to maintain our defensive capacity in order to preserve national sovereignty," the Cuban statement read.
It said the cargo also included two Volga and Pechora anti-aircraft missile systems, nine missiles "in parts and spares," two Mig-21 Bis and 15 engines for those airplanes.
"Cuba maintains its commitment to peace including nuclear disarmament and international law," it added.
Media reports citing defense experts said images released by Panama indicate the cargo is a radar system for the SA-2 family of surface-to-air missiles, which are designed to shoot down enemy aircraft at high elevations.
President Martinelli told Radio Panama that the ship violated United Nations resolutions against arms trafficking.
"We suspected this ship might have drugs aboard so it was brought into port for search and inspection. But when we started to unload the shipment of sugar we found containers we believe to be sophisticated missile equipment, and that is not allowed."
The Cuban ministry however did not seem to be offended with the discovery.
The United Nations sanctions against North Korea doesn't allow exporting of weapons to the country.
North Korea was slapped with increased sanctions earlier this year after a missile launch and nuclear test. Cuba is listed by the United States as a state sponsor of terror.
"Any shipment of arms or related materiel would violate numerous UN Security Council resolutions," said US State Department Spokesman Patrick Ventrell.
Ventrell said the department's non-proliferation bureau is looking into the case.
Panamanian authorities said they might take a week to search the ship completely as they have so far only examined one of its five container sections.
They have requested help from United Nations inspectors, along with Colombia and Britain, said Javier Carballo, Panama's top narcotics prosecutor.
Source: http://www.buenosairesnews.net/index.php/sid/215898018/scat/b8de8e630faf3631
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