The talks -- the first for 13 months -- closed without even setting a date for the next round. They aim to persuade the hardline communist state to scrap its nuclear programmes in return for aid and security guarantees.

US Treasury and North Korean officials held two days of discussions on the sidelines about the US banking curbs imposed for alleged counterfeiting and money-laundering, but reached no agreement.

US officials said they hope to meet again in New York next month.

"We have no intention to go to New York. The two sides should find another place," Kim was quoted as telling the paper in an interview in Beijing.

Asked when the next six-party round may be held, Kim added: "The sanctions issue should be resolved first."

The United States blacklisted Macau's Banco Delta Asia (BDA) in September 2005, saying it suspected that 24 million dollars in North Korean accounts was linked to counterfeiting or money-laundering.

The accounts have been frozen and other Asian banks have taken similar moves.

North Korea boycotted the six-party talks -- which link the two Koreas, the United States, China, Japan and Russia -- for over a year in protest. After conducting its first nuclear test in October, it agreed to return on condition the banking issue is "discussed and settled."

Kim accused US Treasury officials of not being serious.

"The US didn't even offer evidence that North Korea committed illegal activities," he was quoted as saying.

"The US wasted time, insisting that the BDA issue is a legal matter. Sanctions should be resolved through political decision."

Kim also reiterated that the North would not begin nuclear negotiations until the BDA issue is settled. "Once the US lifts its financial sanctions, we can discuss freezing nuclear activities, not doing it right away," he said. He added: "The US wants to see North Korea freezing its nuclear facilities by lifting its financial sanctions alone, which is unacceptable." The negotiator also repeated demands for construction of a light-water reactor in exchange for suspending its existing reactor, along with interim energy aid.

The US and its allies reached a deal with North Korea in 1994 to supply fuel oil and light-water reactors, which are less vulnerable to proliferation, in exchange for a freeze. The deal fell apart in 2002 when the US accused the North of running a secret uranium enrichment programme.

North Korea warned the United States Saturday of retaliation if it stepped up sanctions after the six-party deadlock, saying its armed forces "are not afraid of war."

earlier related report
Nuclear talks bringing China and US closer: envoy
Beijing (AFP) Dec 21 - Six-nation talks aimed at ending North Korea's nuclear program may be struggling but the chief US envoy said Thursday they were strengthening ties between the United States and China. While the two world powers are often in dispute on trade, human rights and other issues, US Assistant Secretary of State Christopher Hill said they had found common ground over the North Korean nuclear crisis.

"The six-party talks have been a major opportunity for the US and China to work together on, frankly, a central issue of concern and one that absolutely needs to be solved," Hill told reporters.

While China remains North Korea's strongest ally, it sided with the United States in pushing through United Nations sanctions against North Korea after it conducted its first-ever nuclear test on October 9.

China is also host of the six-nation talks -- which include the United States, the two Koreas, Japan and Russia -- and it has this week supported US faltering efforts to convince the North to disarm.

Hill suggested the six-party talks could even serve as a model for future co-operation between the United States and China.

"If the US and China are to be successful and work together on this, I think we are going to be successful for years to come on a variety of other issues in the world because the US and China need to have a very strong, very engaged relationship."

Jia Qingguo, a professor at Beijing University's School of International Studies, supported Hill's sentiments that the nuclear issue had been of benefit to China-US ties.

"They are making efforts to maintain regional stability and control the global proliferation of nuclear weapons, which are crucial to both their core interests. Through this channel, they can enhance mutual trust," he said.

The latest round of six-nation talks began on Monday after a 13-month break but have failed to secure any major breakthrough.

earlier related report
Ban calls for patience on NKorea
Seoul (AFP) Dec 26 - Incoming UN Secretary General Ban Ki-Moon called Tuesday for patience in international efforts to persuade North Korea to give up its nuclear weapons. "The issue requires time and patience. As UN secretary general, I will step up efforts to resolve it," Ban said.

He returned to South Korea from New York on Sunday, two days after the latest round of six-party nuclear talks ended in Beijing without any apparent agreement.

The talks involving the two Koreas, Japan, China, Russia and the United States resumed last week after a 13-month hiatus during which Pyongyang tested a nuclear bomb.

"It is regrettable that six-party talks failed to produce concrete results but I believe a channel of multilateral dialogue must be maintained," Ban told reporters.

He said the nations involved in the forum should continue takling to the North, "with faith that the issue can be resolved" through negotiations.

"As the UN secretary general, I will also make efforts to help the process move ahead smoothly."

Asked whether he will visit North Korea after taking office on January 1, Ban said: "As yet, I don't have such a plan."

He said his work next year would focus on solving regional conflicts and reforming the United Nations. "I feel a great mental burden as I have to face many tough issues," he added.

"Lebanon, Darfur, the Iranian nuclear issue and the dispute between Israel and Palestine as well as the entire Middle East issue are the most urgent matters.

"After taking office, I will immediately make preparations to solve the issues involving Lebanon, Darfur and Iran."

Ban last week urged Tehran to resume stalled talks with three European powers after the UN Security Council passed a resolution mandating sanctions targeting Iran's nuclear and missile programmes.

He said he would start visiting conflict areas early next year but did not name them. "I have plans to make two trips soon, while the secretariat is working to arrange additional trips."

Ban, 62, was formerly South Korea's foreign minister. He was to meet President Roh Moo-Hyun and Prime Minister Han Myeong-Sook later in the day.

He said his upcoming inauguration was creating "expectation and tension" from many UN members.

"There are expectations that South Korea's dynamism may bring a fresh wind of reform to the United Nations," Ban said.

"There are high expectations among UN members on the role of South Korea, which I believe could become a role model in the international community."

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