North and South Korea fail to reach agreement over train services

Mar 15, 2007, 13:39 GMT

Seoul - Renewed talks between North and South Korea over a new date for the test run of the restored rail link between the two countries Thursday ended without any tangible results, the South Korean Yonhap news agency reported.

Referring to information from delegation circles in the North Korean border city of Kaesong, Yonhap said Seoul had again made planned aid for the North Korean light industry dependent on the running of the rail service.

Seoul had insisted on continuing discussions over economic aid only after the test run, while North Korea had wanted to resolve both issues at the same time, according to Yonhap.

In May 2006, North Korea cancelled the planned test run on the cross-border train line, which had been out of service for more than half a century.

The restoration of the train line, on which the two countries agreed seven years ago, is widely seen as one of the most important projects of inter-Korean approachment in recent years.

Two weeks ago, the two countries had agreed during ministerial talks to make up for the missed test run - if possible - in the first half of 2007.

'There were differences on when to start the joint cooperation project with the light industry and natural underground resources,' a spokesman for the Unification Ministry in Seoul said after the two- day talks. However, negotiations are to resume soon.

South Korea had promised North Korea to provide raw materials for the production of shoes, clothes and soap. North Korea intends to repay South Korea in 'natural resources' and with the right to mine minerals.