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Macau 'to unblock N Korea funds' Macau 'to unblock N Korea funds'
(20 minutes later)
Macau is set to unblock frozen funds that have proved a stumbling block to a deal on North Korea's nuclear programme, US authorities have said.Macau is set to unblock frozen funds that have proved a stumbling block to a deal on North Korea's nuclear programme, US authorities have said.
Pyongyang had refused to move forward with the deal until the Macau banking authorities released the money.Pyongyang had refused to move forward with the deal until the Macau banking authorities released the money.
Under the agreement, the North is supposed to close its main nuclear reactor by Saturday.Under the agreement, the North is supposed to close its main nuclear reactor by Saturday.
But because of the financial row, analysts had become less optimistic that the deadline would be met.But because of the financial row, analysts had become less optimistic that the deadline would be met.
The US Treasury Department statement said that the US "understands that the Macau authorities are prepared to unblock all North Korean-related accounts currently frozen in Banco Delta Asia", referring to a Macau-based bank.
But the statement did not mention when the funds would be released.
Diplomatic frenzy
Earlier, chief US nuclear negotiator Christopher Hill also admitted Saturday's deadline would be difficult to keep.
"Obviously every day this banking matter holds us up, and it makes it more difficult to meet the precise deadline," he told reporters.
Even North Korea's top nuclear envoy, Kim Kye Gwan, did not sound optimistic, telling US delegates on Monday that it would be difficult to shut down the nuclear reactor by Saturday.
Diplomatic activity has been building ahead of the deadline. Mr Hill is currently in Tokyo holding talks on the issue - before travelling on to South Korea and China for similar discussions - and the subject is also likely to be high on the agenda of Chinese Premier Wen Jiabao's visit to South Korea.
Another US team - which is officially in North Korea to secure the remains of US troops killed in the Korean War - is also holding negotiations on the nuclear issue.
Japan has meanwhile announced an extension of its sanctions on North Korea, because of the doubts over Saturday's deadline and also due to the lack of progress on resolving the issue of Japanese citizens abducted by the North decades ago.
Banking delays
Under a landmark 13 February agreement, North Korea agreed to "shut down and seal" its Yongbyon nuclear plant within 60 days, in return for energy aid and other incentives from its dialogue partners - the US, China, Russia, South Korea and Japan.
North Korea says progress depends on the return of the moneyBut progress on implementing the deal has been delayed because of an ongoing financial dispute involving $25m (£12.7m) of North Korean funds which remain frozen in Banco Delta Asia.
The US authorities have struggled to find a way to get the frozen assets back to Pyongyang - which is refusing to advance with the nuclear deal until it receives the money.
But on a positive note, Mr Kim told reporters that his government would allow UN nuclear inspectors into the country - to check whether it is meeting its commitments - as soon as the funds were released.
Mr Hill welcomed the comment as something "positive coming out of Pyongyang".
Japanese sanctions
Japan has taken the hardest line of all the other nations involved in the six-party talks on North Korea's nuclear programme.
On Tuesday, it extended economic sanctions against North Korea for another six months, to try to press Pyongyang to give ground in a row over the kidnapping of Japanese nationals in the 1970s and 80s.
North Korea has admitted kidnapping 13 Japanese citizens, five of whom were sent home in 2002. Pyongyang says the others have died, but Japan wants more proof.
Japan's sanctions include closing ports to North Korean ships and banning the import of North Korean goods.