North Korean envoy sets 'precondition' for nuclear talks (Roundup)

Dec 16, 2006, 7:54 GMT

Beijing - North Korean Vice Foreign Minister Kim Kye Gwan on Saturday said progress in next week's six-nation nuclear talks would depend on the 'precondition' of the United States lifting financial sanctions against Pyongyang, South Korean media said.

'The lifting of sanctions on us is a precondition (for progress in the talks),' the Yonhap news agency quoted Kim as saying as he arrived in Beijing.

Kim, who heads North Korea's delegation to the stalled talks, said it was 'difficult to be optimistic' about the prospect of progress next week.

He said the United States' 'hostile' policies made it necessary for North Korea to continue its nuclear weapons programme.

'As long as deterrent powers are needed, there is no reason for our country to give up its nuclear weapons,' Yonhap quoted him as saying.

Talks involving North Korea, the US, China, South Korea, Japan and Russia are scheduled to resume on Monday after stalling for more than a year.

US chief negotiator Christopher Hill is scheduled to arrive in Beijing on Sunday, reports said.

Delegations from the six nations are expected to hold several bilateral sessions before and during the formal talks.

Chinese analysts also expect little progress in the talks, saying North Korea is unlikely to alter its policy of nuclear armament.

The US Treasury Department froze the assets of and banned transactions with Macao-based Banco Delta Asia late last year.

It accused the bank of distributing counterfeit US dollars and money laundering for North Korea.

Washington also imposed financial sanctions against 11 North Korean organizations designated as proliferators of technology used for weapons of mass destruction.

The US has agreed that the issue of financial sanctions will be handled by a separate working group within the six-party framework.

The latest round of talks will be the first for the six countries since North Korea detonated its first nuclear device in October, drawing massive international condemnation.

The new talks could extend for several days this month, with further sessions in January, officials said.

The six nations will seek agreement on the implementation of a 'statement of principles' that the parties reached in September 2005 as a road map for negotiations.