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US Expects North Korea To Disable Key Nuclear Plant By End 2007

The Yongbyon Nuclear site. Photo courtesy AFP.Macau Bank Owner Fights US Shut-Out Over North Korea
Hong Kong (AFP) May 08 - The owner of the Macau bank at the heart of a dispute over North Korea's nuclear disarmament said on Monday he is challenging a US decision to shut it out of the global banking system. Stanley Au, chairman of Banco Delta Asia (BDA), said he had filed a personal petition in Washington to back up the bank's similar challenge to the US Treasury's ruling to bar US banks from doing business with it. Au accused the US Treasury of failing to consult with him on its concerns but instead making its decision "solely on speculation." "There is no evidence that the bank was complicit in North Korean counterfeiting, as Treasury suggests," Au said in a statement released through his lawyers. He said the Treasury did not cite any proof that the bank's owners or former managers "ignored, facilitated or even encouraged" illicit activities. "Drastic action that threatens the bank's very existence has been taken without any specific charges being made and without any evidence of wrongdoing on the part of the bank or its owners," Au said. The US and Macau authorities said in March the funds had been unfrozen and were available for collection. But there were apparent problems in persuading a foreign bank to handle money seen as tainted.
by P. Parameswaran
Washington (AFP) May 04, 2007
The United States said Friday North Korea could shut down and disable its key nuclear plant by the end of 2007 despite a hitch in implementation of a pact to end its atomic weapons program. North Korea has refused to take steps to shut down the Yongbyon reactor by April 14 as pledged in a February agreement because it has yet to receive 25 million dollars in funds frozen as a result of US action in an Asian bank.

"I know there is a lot of concern and I share that concern about the missed deadline," Christopher Hill, the US assistant secretary of state for East Asian and Pacific affairs, told a forum in Washington.

But he added, "I think we can put ourselves into the position that by the latter part of this calendar year, we can get through phase one and phase two and for us to work on phase three." Under the February 13 deal, North Korea was given 60 days to shut down the Yongbyon plant and allow international inspectors back into the country in exchange for energy aid.

The second phase requires North Korea to disable the plant, from which experts say it has produced enough plutonium to make up to a dozen nuclear bombs, and also to open up its nuclear inventory, including a controversial highly enriched uranium program.

Hill was hopeful that illicit North Korean funds frozen in a Macau bank and scheduled to have been returned by March 15 under the nuclear accord would be freed up soon. The process was said to have been held up by "technical issues."

Once the funds were released and the North Koreans shut down the Yongbyon facility, efforts could be made to fast track the denuclearization process to catch up with lost time, Hill said.

The "disabling" process could be swift -- taking only "weeks not months" -- and ways could be found to "front-load" some of the energy aid to North Korea, he said.

"We can even recover some time lost in the first tranche," he said. "We can believe we can get this second tranche done in this calendar year."

The timetable for the North to disarm was adopted at six-party talks involving the United States, China, Russia, the two Koreas and Japan.

The United States, China, Russia and South Korea agreed to provide 50,000 tonnes of fuel oil or the economic or humanitarian equivalent once the initial steps were taken by North Korea.

The financially starved regime would receive an additional 950,000 tonnes of oil or the economic equivalent if it closed down all of its nuclear facilities under the agreement.

The third phase of North Korea's denuclearization process involves the actual dismantling and removal of the nuclear facilities and Pyongyang's accounting for the up to 60 kilograms of plutonium estimated to have been produced by the Yongbyon plant.

Hill admitted there would be "another set of hard bargaining" during the final phase.

But he chided pundits calling for the scrapping of the nuclear accord with North Korea even though the Stalinist regime had assured it would launch steps to end its nuclear program once it received the unfrozen funds.

Despite North Korea's past broken promises, the United States "continues to believe that the best way to achieve denuclearization is to move step-by-step," he said.

"The North Koreans have repeatedly signalled to us, they have signalled internationally, that they are prepared to implement the February 13 agreement once they get their money.

"So those people who say, how can you be so patient, why don't you simply cut this off today. First of all, they really ought to come forward with what we should do the next day -- why is cutting it off better than giving more time in order to work."

Source: Agence France-Presse

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UN Non-Proliferation Conference Awaits Iranian Response
Vienna (AFP) May 08, 2007
A week-old UN non-proliferation conference was on the verge of collapse Monday as Iran's ambassador waited for word from Tehran on whether to accept a compromise on complying with nuclear rules. "If we do not decide by Tuesday morning we will have difficulty in having discussions on substantive issues," the conference's chairman Yukiya Amano said.







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