This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/world/asia-pacific/6465239.stm

The article has changed 6 times. There is an RSS feed of changes available.

Version 4 Version 5
US 'resolves N Korea funds row' US 'resolves N Korea funds row'
(about 8 hours later)
The US says it has resolved a financial row with North Korea, as talks on Pyongyang's nuclear programme resume.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 has not yet officially commented, but had warned it would not proceed with a deal to shut its nuclear reactor at Yongbyon without the money.
Delegates from the six nations involved in the deal are currently meeting in Beijing to discuss its progress. Delegates from the six nations involved in the deal are meeting in Beijing.
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. They are discussing progress on the 13 February agreement, 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.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 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 issue of the frozen North Korean assets has long been seen as a stumbling block to negotiations.
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. North Korean envoy Kim Kye-gwan reiterated his country's position again at the start of Monday's talks, officials quoted him as saying.
Chief US negotiator Christopher Hill said the resolution meant the six nations could "move on to the next problem, of which there are many". He told his fellow envoys from China, South Korea, the US, Japan and Russia that the North would close Yongbyon once the financial sanctions were fully lifted.
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. Mr Kim also "questioned [Japan's] qualifications to remain participants" of the talks, Tokyo's chief envoy said after the meeting.
Recent bilateral talks in Vietnam collapsed after the North reportedly objected to Japan's insistence on discussing the abductions of Japanese citizens to train North Korean spies in the 1970s and 80s.
Japan has refused to fund any part of the fuel aid pledged as part of the 13 February nuclear deal, until the issue of the abductions is resolved.
'High price'
The BBC's Charles Scanlon in Seoul says the US decision to hand back all the funds frozen in Macao looks like a humiliating climb-down after the Bush administration had long rejected any negotiation over what it called the North's criminal activities.
But following Pyongyang's missile and nuclear tests last year, Washington badly wants a deal to stop the North from adding to its arsenal.
The bank deal is a reminder of the high price North Korea will demand for any further steps to curtail its nuclear activities, our correspondent says.
The meeting in Beijing, which is due to last two days, is 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.
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".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".
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".