hankyoreh

North Korean funds frozen at a Macau-based bank have not been transferred to the communist country so far, holding up progress in a landmark agreement over the North's denuclearization, a pro-Pyongyang newspaper based in Japan said Friday.

"For North Korea, it does not matter whether it can withdraw the money or not. Unless normalization of financial transactions by international standards is realized, it cannot be said that its demand has been met," said the Choson Sinbo, a Korean-language newspaper published by the General Association of Korean Residents in Japan. The paper has been reflecting the opinions of the North Korean government.

The report reconfirms the North's position that it will not implement the first 60-day denuclearization measures unless the funds are transferred to another bank, so the North can confirm the free transfer of its funds in the international financial system, upon which the U.S. Treasury Department has a strong influence.

North Korea has said that it will take the first steps toward nuclear dismantlement as soon as it confirms the release of its funds, which have been frozen at Banco Delta Asia since September 2005.

Macau's financial authorities unblocked the North's US$25 million in Banco Delta Asia for withdrawal, but North Korea missed the April 14 deadline to shut down and seal its nuclear facilities under the six-nation agreement signed in Beijing in February.

Under the Feb. 13 agreement, North Korea pledged to shut down its main nuclear reactor and allow U.N. inspectors back into the country within 60 days. In return, North Korea would receive aid equal to 50,000 tons of heavy fuel oil from South Korea. The U.S. promised to resolve the financial issue within 30 days, but failed to do so because of technical complications.

Seoul, April 27 (Yonhap News)