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North Korea's nuclear envoy suggested the communist country has the ability to mount nuclear warheads on medium-range ballistic missiles in a recent meeting with high-profile U.S. visitors, a Washington-based radio station reported Thursday.

According to Radio Free Asia (RFA), Kim Kye-gwan strongly indicated such capabilities during the meeting with David Albright, president of the Washington-based Institute for Science and International Security (ISIS), when Albright questioned North Korea's nuclear delivery ability.

Albright, together with former State Department official Joel Wit, visited the reclusive North from Jan. 30 to Feb. 4 at the North's invitation.

The RFA quoted Albright as saying, "Kim said, 'Did you see we exploded something only underground? Does the underground explosion signify much?'" Kim added that it is foolish for a country not to have nuclear delivery capabilities if it has proven its nuclear weapon ability, according to Alrbight.

The interview came a day after he said in a report North Korea may have produced up to 12 nuclear warheads that can be mounted on medium-range Rodong ballistic missiles, and the communist nation is unlikely to commit to an agreement that would prevent it from using its nuclear capabilities during wartime.

"Early in a crisis, a nuclear test could be conducted to prevent further escalation," stated the 14-page report co-authored by Albright and research analyst Paul Brannan. "If that failed to stop the crisis, it may detonate a warhead over the sea as a further demonstration." The report titled "The North Korean Plutonium Stock, February 2007" posted online by the think tank outlined a North Korean nuclear strategy based on deterrence against attack on the country.

It also predicted that North Korea would use its nuclear weapons against "military targets and population centers in South Korea or Japan" if "warning shots" were not heeded and a war escalated on the Korean Peninsula.

Albright said North Korea is estimated to have produced "about 46-64 kilograms of plutonium, of which about 28-50 kilograms are separated and available for use in weapons."

"The larger weapons could be delivered by truck or ship or simply placed at a strategic location inside North Korea awaiting the arrival of enemy forces," the report said.

North Korea agreed last Tuesday to shut down and eventually disable in phases its key nuclear facilities in exchange for up to 1 million tons of heavy fuel oil in energy assistance or equivalent aid. The nuclear talks are attended by the two Koreas, the U.S., Japan, China and Russia.

The report, however, said Pyongyang is unlikely to give up its nuclear weapons until the very last phase of the denuclearization process, if ever.

"This type of arsenal allows North Korea to credibly threaten nuclear attack during a crisis as a way to end the crisis on terms favorable to itself," said the report.

"Because of the asymmetry in military forces in the region, North Korea would be unlikely to commit to a no-first-use pledge," it added.

Seoul, Feb. 22 (Yonhap News)