Korea Refuses to Budge on Banking Dispute

North Korea yesterday rejected a U.S. suggestion that Pyongyang begin to freeze its nuclear program before resolving a lingering financial dispute, Agence France-Presse reported (see GSN, May 31).

North Korea has refused to start implementing the first stage of a February denuclearization pact until it receives about $25 million once frozen under U.S. pressure by the Macau-based Banco Delta Asia.  U.S. officials have sought to free the money, but so far no other bank has been willing to accept the funds, reportedly fearing U.S. repercussions.

Yesterday U.S. Assistant Secretary of State Christopher Hill urged North Korea to believe that Washington was genuinely trying to resolve the problem and to begin shutting down its plutonium production reactor.

The recommendation was not accepted.

“Our position has been clear from the beginning," said Kim Myong Gil, deputy chief of North Korea’s U.N. mission in New York.  “The issue of BDA has to be solved first.”

Kim did acknowledge, however, that “the U.S. side is making efforts” to address the money problem (Agence France-Presse/Yahoo!News, June 1).

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