S. Korea Optimistic for Nuclear Deal

03/29/2007

SEOUL, South Korea (AP) - South Korea's point man on North Korea voiced optimism Thursday that agreements reached in a breakthrough deal on curbing North Korea's nuclear weapons program will be implemented.

North Korea pledged at international disarmament talks in Beijing last month to shut down its sole operating nuclear reactor by April 14 in exchange for energy aid and political concessions.

But the hardline communist nation refused last week to return to the six-nation nuclear disarmament talks until about $25 million of its funds frozen at a Macau bank is transferred to the Bank of China.

"I believe that the agreements reached under a Feb. 13 deal will be implemented," Unification Minister Lee Jae-joung told reporters at a regular press briefing.

Lee's comments come amid efforts by the U.S., China and North Korea to resolve the dispute over the North's frozen funds, which has stalled the disarmament process.

Later Thursday, South Korean President Roh Moo-hyun spoke by telephone from Qatar with President Bush, primarily discussing economic issues but also touching on the North Korea situation, a spokesman said.

Bush reaffirmed his commitment to quickly resolving the nuclear dispute with North Korea, Roh spokesman Yoon Seung-yong said in a statement on the South Korean president's Web site.

The $25 million was frozen in September 2005 after the U.S. accused Banco Delta Asia of helping North Korea launder money and handle counterfeit U.S. currency.

The move enraged the North Koreans, who boycotted the nuclear talks for more than a year. They recently returned to the negotiations after the U.S. agreed to settle the banking issue. The funds were to be transferred to a North Korean-owned account at the Bank of China to be used for humanitarian purposes in North Korea.

Daniel Glaser, deputy U.S. assistant secretary for terrorist financing and financial crimes, met Chinese and North Korean officials in Beijing earlier this week to discuss the transfer, but no significant progress was reported.