"We just hope that it will be resolved soon."

North Korea has refused to start shutting down its Yongbyon reactor, as pledged in a February 13 multinational agreement, until it receives 25 million dollars frozen in a Macau bank following a US blacklisting.

The United States said the funds were unfrozen in March but foreign banks are unwilling to handle the cash as it is seen as tainted.

North Korea apparently wants to make a monetary transfer rather than a withdrawal to prove it has regained access to the international banking system.

Kim reaffirmed that once the banking issue is settled, the government will carry out the first phase of de-nuclearisation under the February deal.

"Our position has been consistent all along," he said. "If (this) problem is solved, then we can enter into the implementation of the agreement."

Kim said further action required by North Korea to declare and disable all of its nuclear programmes, in exchange for energy aid and diplomatic benefits, would then be possible.

"When the first button is done right, then the buttons below it would also be done right," said Kim, using a clothing metaphor.

The US's chief nuclear negotiator Christopher Hill said last week that once the funds were released and the North Koreans shut down Yongbyon, efforts could be made to fast-track the de-nuclearisation process.

Kim also said Hill could visit the North whenever it is convenient.

"He said before that he will visit, and we invited him before that he can come if he wishes," Kim told Yonhap.

related report
US looking into complaints by Macau bank caught in North Korea row
Washington (AFP) May 8 - The US government is looking into allegations that it encouraged a Macau bank to pursue illicit dealings on behalf of North Korea for a decade before finally blacklisting the institution for those same activities, a senior official said Tuesday.

The US decision to target the Banco Delta Asia as a money-launderer for North Korea torpedoed a 2005 agreement under which the communist regime agreed to give up its nuclear weapons program and continues to hinder implementation of a follow-up disarmament deal reached in February.

Stanley Au, chairman of Banco Delta Asia, said Tuesday that the bank reported to authorities in 1994 that a North Korean client had deposited a large quantity of fake US dollars.

But he said that when he met US government agents and offered to stop doing business with the North Koreans, they urged him to continue.

"They said that they would like us to continue to deal with them, as it was better that we conducted this business rather than another financial entity that may not be so cooperative with the United States," he said.

State Department spokesman Sean McCormack said Au's allegation was included in a formal appeal filed with the US Treasury Department challenging its decision to blacklist BDA, a move which nearly led to the bank's collapse.

"It's going to be reviewed in due course and in an appropriate manner by officials at Treasury and wherever else they might review those things," McCormack said, without elaborating.

In blacklisting BDA in September 2005, the Treasury accused the bank of being a "willing pawn" for North Korea to engage in corrupt financial activities and banning US financial institutions from dealing with the outlet.

The US action prompted Macau authorities to freeze 25 million US dollars in the North Korean accounts, a move which has stifled progress in trying to persuade Pyongyang to halt its nuclear weapons program.

While North Korea agreed in a February pact with the US and four other major powers to abandon its nuclear arms, it failed to honor a pledge to shut down its key nuclear reactor by April 14 and has said it will not take that step until it recovers the 25 million dollars.

The US and Macau authorities said in March the funds had been unfrozen, but they have apparently still not been collected, reportedly because of problems in persuading a foreign bank to handle money seen as tainted.

McCormack said there were indications the North Koreans are "actively working" to resolve the BDA issue and that Washington was willing to "give them a little time and space to do that" despite the April 14 deadline.

But he declined to confirm or deny reports the North Koreans were insisting the funds be transferred to them from BDA via a US bank to illustrate that US authorities were ready to allow the communist regime to engage in international financial transactions.

"Any decisions with respect to how the solution intersects or does not intersect with the rules of the road for the international financial system are going to be made by the department of the Treasury, not by us," he said.

"What we want to do is get past this particular issue so we can return to the six-party talks, regain some of that momentum, and actually get down to the business of denuclearizing the Korean Peninsula, because that's ultimately what this is all about," he said.

Email This Article

Related Links
Learn about nuclear weapons doctrine and defense at SpaceWar.com
Learn about missile defense at SpaceWar.com
All about missiles at SpaceWar.com
Learn about the Superpowers of the 21st Century at SpaceWar.com