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.