U.S. team in KL for nuclear talks

U.S. team in KL for nuclear talks

KUALA LUMPUR (Reuter): A U.S. delegation led by Deputy
Assistant Secretary of State Thomas Hubbard arrived in Malaysia
yesterday seeking a breakthrough in talks with North Korea aimed
at containing Pyongyang's nuclear program.

"We hope we can achieve a breakthrough and resolve problems
that have been standing in the way of full implementation of this
accord, and put everything back on track," Hubbard said in the
Malaysian capital of Kuala Lumpur.

Under an accord signed last October, the United States
promised North Korea more than US$4 billion in new nuclear
technology and interim fuel oil supplies if Pyongyang would
freeze its suspected nuclear weapons program.

But technical talks to implement the accord broke down last
month in Berlin after North Korea refused to accept nuclear
reactors built by arch foe South Korea, the only country willing
to finance the bulk of the project.

The United States offered the North Koreans a carrot and a
stick before the latest round of talks begin today.

Secretary of State Warren Christopher told Congress on
Thursday that Washington had told North Korea it would delay oil
shipments under the agreement until it is assured there will be
no more diversions of the oil.

Christopher said intelligence reports showed "relatively
minor" diversions of oil intended solely for energy generation
into the production of iron and steel.

But Christopher said Washington would go ahead with moves to
establish liaison offices in the two capitals depending on the
pace of negotiations to implement the nuclear agreement.

As part of that agreement, the United States delivered to
North Korea earlier this year 50,000 tons of oil -- the first in
a series of promised oil deliveries. U.S. officials had
previously disclosed that there were some small diversions of
that shipment but seemed to play down the issue.

"We look forward to meeting, beginning tomorrow (Saturday),
with our North Korean counterparts and plan to work hard on
resolving the remaining problems, which relate mainly to
(Seoul's) light-water reactors," Hubbard said.

"We don't anticipate discussing other issues."

He said the accord was "very important to the United States,
very important to our allies in this region, and very important
for regional stability".

Asian diplomats said North Korea was hoping to exploit the
talks and the accord to foster closer diplomatic and commercial
ties with Washington.

North Korea has long sought a separate peace treaty with the
United States formally ending the 1950-53 war on the Korean
peninsula. But South Korea vehemently opposes anything that would
lead to a separate peace between its worst enemy and its biggest
ally.

The North Korean delegation, led by Vice-Foreign Minister Kim
Kye-gwan, is expected later yesterday from Beijing.