hankyoreh

Nuclear envoys are trying to designate a bank outside China to release North Korea's money to resolve tension over the banking transaction that stalled the recent six-party talks, Seoul's envoy said Friday.

Negotiators from South and North Korea, the United States, China, Japan and Russia headed home after the latest round of their nuclear talks ended abruptly in Beijing on Thursday.

Pyongyang boycotted the talks while waiting for its US$25 million at Macao's Banco Delta Asia to be transferred to its account at the Bank of China.

However, the Chinese bank refused to hold the North Korean money out of concern that the transaction may drop their credit rating, said Chun Young-woo, Seoul's chief nuclear negotiator. The envoys were trying to designate a bank outside China, from which North Korea will draw its money after it is transferred from the Macao bank, he said.

"It seemed possible that the money will go to a bank in a third country via the Bank of China. That way, a solution is being worked out," he said.

It is not just the money North Korea wants back, he said. North Korea also wants the international financial system to normalize business with the communist country, believing that the financial system has cut its ties with it out of fear of possible retaliation from the U.S. government.

"I believe North Korea learned a hard lesson this time -- (no matter) how much other countries try to resolve the issue, there is another cruel face with the international financial world.

"I believe North Korea clearly saw an aspect of this world where it will have to live in case it doesn't denuclearize," he said.

Foreign Minister Song Min-soon also alluded to North Korea's harsh reality, saying, "Because North Korea doesn't have much contact with the outside, it can be difficult even to transfer money to it."

However, Song was generally upbeat, saying the transfer issue will be resolved next week and the six countries will then start implementing the initial stages of the accord.

In a watershed agreement last month, North Korea pledged to shut down its primary Yongbyon nuclear facility by April 14 in exchange for 50,000 tons of heavy fuel oil. After the initial stage of denuclearization, the North is required to disable all of its nuclear weapons and programs before getting 950,000 additional tons of oil, as well as political and other economic incentives.
Seoul, March 23 (Yonhap News)