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US 'resolves N Korea funds row' US 'resolves N Korea funds row'
(about 1 hour later)
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. The US says it has resolved a financial row with North Korea, as talks on Pyongyang's nuclear programme resume.
The US said $25m of North Korean funds, which were frozen in a Macau bank amid money laundering allegations, would be transferred to an account in Beijing.The US said $25m of North Korean funds, which were frozen in a Macau bank amid money laundering allegations, would be transferred to an account in Beijing.
The North had warned it would not proceed with a deal to shut its nuclear reactor at Yongbyon without the money.The North had warned it would not proceed with a deal to shut its nuclear reactor at Yongbyon without the money.
The deal, agreed last month, will be the focus of the latest Beijing talks. Delegates from the six nations involved in the deal are currently meeting in Beijing to discuss its progress.
It is now more than 30 days since the six countries - China, Russia, Japan, the US and the two Koreas - reached the landmark pact, in which Pyongyang agreed to "shut down and seal" the Yongbyon reactor within 60 days in return for substantial fuel aid.
'Assurances''Assurances'
Last week the US ended an inquiry into the bank affair, opening the door for Macau to free the frozen North Korean funds.
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.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.
We can now move on, said chief US negotiator Christopher HillWe can now move on, said chief US negotiator Christopher Hill
Mr Glaser said the US had received "assurances" that the funds would then be used for educational and humanitarian programmes in the North.Mr Glaser said the US had received "assurances" that the funds would then be used for educational and humanitarian programmes in the North.
The issue had been seen as a stumbling block to completing February's breakthrough agreement on the nuclear issue. The issue of the frozen North Korean assets has long been seen as a stumbling block to negotiations, and North Korean envoy Kim Kye-gwan recently warned that his country would not close the Yongbyon reactor without a deal on the cash.
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. According to the BBC correspondent in Beijing, James Reynolds, it seems that no one wanted to risk the collapse of the entire nuclear deal because of just $25m.
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 said the resolution meant the six nations could "move on to the next problem, of which there are many".Chief US negotiator Christopher Hill said the resolution meant the six nations could "move on to the next problem, of which there are many".
The US last week ended an inquiry into the bank affair, opening the door for Macau to free the funds. The negotiators currently meeting in Beijing are now expected to look at how North Korea plans to fulfil its promise to shut down its reactor and allow international inspectors into the country for the first time in four years.
Under the deal agreed last month, the North will receive aid worth one million tonnes of heavy fuel oil for dismantling its nuclear programme. But there is still a long way to go. 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".
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".The state run Rodong Sinmun newspaper said the North was ready "for both war and talks".