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N Korea nuclear talks to resume US 'resolves N Korea funds row'
(9 minutes later)
Six-nation talks on North Korea's nuclear programme are to resume in Beijing with a US financial sanctions issue still to be resolved. The US says it has resolved a financial row with North Korea as talks on Pyongyang's nuclear programme resume in the Chinese capital, Beijing.
A month ago, China, Russia, Japan, the US and both Koreas reached a deal for Pyongyang to shut down its reactor at Yongbyon in 60 days in return for aid. The US said $25m of North Korean funds frozen in a bank in Macau amid money laundering allegations would be transferred to an account in Beijing.
But the North insists it must have back $25m of funds frozen in a bank in Macau amid US suspicions of money laundering. The North had said it would not proceed with a deal to shut its nuclear reactor at Yongbyon without the money.
The chief US negotiator said he thought the issue would not be a problem. The deal, agreed last month, will be the focus of the latest talks.
Military exercises 'Assurances'
Pyongyang agreed in February on the timetable for shutting down the Yongbyon reactor and allowing in international inspectors. US Deputy Assistant Treasury Secretary Daniel Glaser said the $25m, held in the Banco Delta Asia in Macau, would be transferred to a Bank of China account in Beijing.
I think we have gotten past the issue and that will not be an impediment to our six-party process Christopher HillChief US negotiator Mr Hill earlier expressed confidence the issue would be resolved
But North Korean negotiator Kim Kye-gwan warned as negotiators arrived in Beijing for the latest round of talks that his country would not close its nuclear facilities until the US released the funds held in the Banco Delta Asia in Macau. Mr Glaser said the US had received "assurances" that the funds would then be used for educational and humanitarian programmes in the North.
Chief US negotiator Christopher Hill, who held a preparatory meeting with other envoys on Sunday, said he was confident Pyongyang understood the US position. Mr Kim was not present at that meeting. The issue had been seen as a stumbling block to completing February's breakthrough agreement on the nuclear issue.
Mr Hill said: "I think we have gotten past the issue and that will not be an impediment to our six-party process." The six nations at the talks - China, Russia, Japan, the US and both Koreas - had agreed that Pyongyang would shut down its reactor at Yongbyon within 60 days in return for aid.
International inspectors would then be allowed into the site.
But North Korean negotiator Kim Kye-gwan had warned as negotiators arrived in Beijing for the latest round of talks that his country would not close the reactor without a deal on the cash.
Chief US negotiator Christopher Hill had expressed confidence on Sunday that the issue would "not be an impediment to our six-party process".
The US last week ended an inquiry into the bank affair, opening the door for Macau to free the funds.The US last week ended an inquiry into the bank affair, opening the door for Macau to free the funds.
One South Korean official told Reuters news agency: "I think it will be worked out by next week."
Ahead of Monday's resumption, Pyongyang condemned joint US-South Korean military exercises set for this month, saying they were intended to "poison the atmosphere of the talks".
The state run Rodong Sinmun newspaper said the North was ready "for both war and talks".
Under the deal agreed last month, the North will receive aid worth one million tonnes of heavy fuel oil for dismantling its nuclear programme.Under the deal agreed last month, the North will receive aid worth one million tonnes of heavy fuel oil for dismantling its nuclear programme.
South Korean envoy Chun Yung-woo said Pyongyang had indicated it had begun preparations to shut Yongbyon.South Korean envoy Chun Yung-woo said Pyongyang had indicated it had begun preparations to shut Yongbyon.
Ahead of Monday's resumption, Pyongyang condemned joint US-South Korean military exercises set for this month, saying they were intended to "poison the atmosphere of the talks".
The state run Rodong Sinmun newspaper said the North was ready "for both war and talks".