Using CONNECT to a remote system with RUNSQLSTM

I am trying to copy a subset of records from a file on a remote iSeries to
the local iSeries. The remote file has over 50 million records.

I tried to copy using a DDM file with CPYF. It runs but takes forever. It
seems that it is copying the whole file to the local system before doing
the selection.

I added a entry in WRKRDBDIRE, used STRSQL to connect to run command CREATE
TABLE ... with data. It ran is about 30 seconds.

I then tried to run the same SQL SCRIPT with RUNSQLSTM and found the
CONNECT is invalid in that environment.

The local system is at V7.1. The remote system is V5R4.

Does anyone have any work arounds to this issue?

My alternative may be to use RMTCMDs with CPYF and then copy the resulting
file to the local system with DDM or FTP.

TIA.