U.S.-Russian Plan Could End North Korea Bank Matter

Russia and the United States have agreed on a plan to resolve the money problem that has delayed efforts to begin North Korean denuclearization, Agence France-Presse reported yesterday (see GSN, June 7).

Pyongyang has refused to begin meeting its commitments under a February deal reached at the six-party talks until it receives $25 million held at Banco Delta Asia in Macau.  Financial institutions have proven reluctant to touch money that Washington has linked to counterfeiting and other illicit North Korean financial activities.

Moscow has now agreed to ship the funds through a U.S. institution and a Russian bank and on to North Korea, sources told the Yonhap News Agency.

“The U.S. requested — on condition that one of its banks play a role of relaying the money — that Russia take the North Korean funds.  Russia accepted it,” one source said.

“With the new idea backed by the U.S., China and Russia being pushed in a positive atmosphere, the chances of the transfer of North Korean funds in the near future are getting higher,” the source told Yonhap (Agence France-Presse/Yahoo!News, June 10).

Yonhap reported separately that the money issue could be resolved by this week, the Associated Press reported.  A bilateral session between U.S. and North Korean officials could quickly follow, aimed at promoting progress on the nuclear agreement.

Chief South Korean nuclear negotiator Chun Young-woo today was headed to Washington for talks with his U.S. counterpart on resolving the financial standoff, AP reported.  He declined to discuss the Yonhap report (Associated Press/International Herald Tribune, June 10).

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