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Macau 'to unblock N Korea funds' Macau unblocks North Korean funds
(about 9 hours 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 has unblocked funds that have been a stumbling block to a deal on North Korea's nuclear programme, Macanese and US officials have said.
"Authorised account-holders" can now withdraw funds from the North Korean accounts that had been frozen, a US state department spokesman 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. In February, the North agreed 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. The Monetary Authority of Macau (MAM) said the funds were available with "immediate effect," MAM spokeswoman Wendy Au was quoted as saying by Japan's Kyodo news agency.
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. "The account holders or authorised parties can go to the bank and withdraw or deal with their deposits," she added.
But the statement did not mention when the funds would be released. In Washington, US State Department spokesman Sean McCormack said:
Diplomatic frenzy "The bottom line is that they have unblocked these accounts and the account holders can - authorised account holders can - withdraw the funds from these accounts.
Earlier, chief US nuclear negotiator Christopher Hill also admitted Saturday's deadline would be difficult to keep. "The focus can return to the core subject of the six-party talks, and that is the denuclearisation of the Korean peninsula."
"Obviously every day this banking matter holds us up, and it makes it more difficult to meet the precise deadline," he told reporters. Progress frozen
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.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. North Korea has pledged to shut down its main reactor at Yongbyon
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. Progress on implementing the deal was delayed because of the financial dispute involving $25m (£12.7m) of North Korean funds which had been frozen in Banco Delta Asia.
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. Pyongyang refused to advance with the nuclear deal until it received the money.
Mr Hill welcomed the comment as something "positive coming out of Pyongyang". North Korea's top nuclear envoy, Kim Kye Gwan, said 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.
Japanese sanctions Analysts had become pessimistic that the deadline would be met because of the financial row.
Japan has taken the hardest line of all the other nations involved in the six-party talks on North Korea's nuclear programme. Diplomacy went into high gear with Mr Hill stopping in Japan on his way to South Korea and China for discussions on North Korea.
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. South Korea and China agreed to co-operate more closely to end the North's nuclear programme in talks in Seoul between South Korean President Roh Moo-hyun and Chinese Premier Wen Jiabao.
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. Another US team - which is officially in North Korea to secure the remains of US troops killed in the Korean War - also held negotiations on the nuclear issue.
Japan's sanctions include closing ports to North Korean ships and banning the import of North Korean goods.