Adamant N Korea stalls nuclear talks

Beijing: Emboldened by its maiden atomic test, North Korea on Thursday stalled the six-party talks here by demanding the lifting of US economic sanctions imposed on it for alleged money laundering as a precondidtion for further negotiations on dismantling its nuclear weapons programme.

Japan's top negotiator Kenichiro Sasae said the current situation of the six-party talks on the Korean Peninsula nuclear issue remained "severe", referring to the financial issue as the sticking point.

"The situation of the talks remains severe, and there is no prospect of breakthrough up to now," Sasae told reporters as the end of the fourth day of parleys.

The Democratic People's Republic of Korea (DPRK) "holds a very strong position on the financial issue, which is currently the biggest difficulty in the talks", the senior Japanese diplomat said.

The top nuclear negotiators of the US and North Korea met bilaterally on Thursday at the Diayoutai State Guesthouse to try and narrow their deep differences and mistrust, but there was no apparent breakthrough.

The US chief delegate, Christopher Hill, said financial sanctions against Pyongyang's alleged illegal activities remained an obstacle as negotiations.

"This is not an easy stage," Hill said. "It is difficult engaging them (the North Koreans) on other subjects when they have come in with a strong view on the financial issue. This is a challenge we face."

Hill said North Korea's October nine nuclear test showed that denuclearising the regime is an "urgent problem".

"I'd rather not obscure that urgent problem by talking about finances," Hill said.

The second phase of the fifth round of six-party talks to peacefully dismantle North Korea's nuclear assets resumed after a 13-month hiatus in Beijing on Monday.

The negotiations involve China, North Korea, the United States, South Korea, Japan and Russia. They are trying to find a diplomatic solution to dismantle Pyongyang's nuclear assets.

Hill, US assistant secretary of state for East Asian and Pacific affairs, reiterated that the financial issue was separate from the denuclearisation issue.

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North Korea has held fast to its demand that the US stop its restrictions on a Macau bank linked with the communist regime.

The Macao-based Banco Delta Asia (BDA), accused of helping in Pyongyang's financial crimes, has been under the US investigation for more than a year, freezing North Korea's 24 million US dollars worth of accounts in the bank.

Meanwhile, US Treasury Department's deputy assistant secretary Daniel Glaser left here today for home after holding talks with President of North Korea's Foreign Trade Bank O Kwang Chol on Tuesday and Wednesday in the USEmbassy and North Korean Embassy respectively.

Glaser said he would possibly meet the North Koreans next month in New York.

But Hill told reporters that the multilateral discussions were entering a stage in which negotiators were starting to work on a document which could be issued tomorrow, before taking a break for Christmas, recording the accomplishments achieved during the second phase of six-party talks.

Chinese Foreign Ministry spokesman Qin Gang said the idea of a statement was on the cards but it would ultimately depend on the outcome of ongoing negotiations.

The six-party talks have entered a stage of earnest, candid and pragmatic discussion on substantial issues, he said.

"I hope all parties can continue to make concerted efforts to press ahead the talks in a patient manner," Qin said.

Qin said all parties had voiced their respective stance which help to narrow down the differences and expand consensus.

The latest nuclear row erupted in late 2002 when US officials said North Korea had admitted having a secret atomic bomb programme in violation a 1994 accord under which it promised to give up all of its nuclear weapons programme.

The US retaliated by suspending promised fuel shipments. North Korea responded by expelling UN nuclear inspectors and quitting the Nuclear Non-proliferation Treaty.

North Korea conducted its first nuclear test on October nine, triggering UN sanctions.