CHINA: Diplomats converge in Beijing ahead of six-party nuclear talks with North Korea, while optimism looms over China-North Korea border

.S. envoy to six-party talks Christopher Hill arrives in Beijing for six-way talks and says that a U.S. move to freeze North Korean assets in a Macau bank should not be a stumbling block to progress at talks. Meanwhile, optimism looms over the China-North Korea border town of Dandong. Key players in efforts to persuade North Korea to scrap its nuclear weapons programme converged in Beijing on Thursday (March 15) after the U.S. Treasury said it met a deadline to end a probe of the North's frozen bank account in Macau, a crucial part of the deal. Chief U.S. nuclear envoy Christopher Hill said talks were still needed on Banco Delta Asia, where the North's accounts are frozen, but he did not expect this would "pose a stumbling block" to the continuation of talks with Pyongyang. North Korea has demanded the release of funds at the bank as a condition of talks on its nuclear programme that had taken place between it, China, the United States, Russia, Japan and South Korea. The U.S. Treasury on Wednesday (March 14) formally barred American banks from dealing with the bank. Hill said the action was aimed to protect U.S. financial systems. "All of this is designed to protect the U.S. financial system, essentially by making sure that U.S. financial institutions are not doing business with banks that have engaged in practices that are not up to international standards. So I think we have fulfilled what we need to do. Obviously we need some consultation with parties just to make clear some of the details that I know you are interested in. So I think we will be able to do that, and I am sure I am confident the six-party process is going to go ahead," Hill told reporters waiting in his hotel. Hill said that the situation may change if the bank changes ownership. "But in its statement the treasury made very clear that were that to change - that is, were there to be a different long-term management or different ownership - then they would immediately have another look at this issue. But I cannot say - when I say another look it depends on who the new long-term management would be," said Hill. Hill is expected to meet International Atomic Energy Agency chief Mohamed ElBaradei later in the day ahead of the next round of talks which are scheduled to open on Monday (March 19) to ensure North Korea delivers on its pledges to shut down its nuclear reactor. "With regard to denuclearisation, what I think we will look at is the process of getting the reactor shut down and the IAEA back in place. Obviously the report of Mr. ElBaradei will be very important, and in fact I will be seeing him early tomorrow morning with my South Korean counterpart, and with the Japanese, as well, and will get a first-hand report although I think he has already spoken to the press about (it)," said Hill. ElBaradei, who just returned to Beijing from Pyongyang, is also likely to have talks with South Korea's chief envoy Chun Yung-woo and China's head of delegation Wu Dawei. Hill said working groups on denuclearisation would be meeting for the first time on Saturday (March 17), chaired by China. "I think the denuclearisation working group will also look at the provision of the February agreement, which gets into the next phase - that is, the disablement phase, and the overall declaration phase. As you recall from the February agreement we have laid out...the DPRK is obliged to talk about what would be in their final declaration, their complete declaration. So I think there will be some discussion on that," said Hill. Meanwhile, optimism loomed over the China-North Korea border town of Dandong ahead of the latest round of six-party talks. Trucks carrying goods across the China-North Korea border bridge rumbled by as businesses specialising in cross-border trade took advantage of the recent positive development. Shan Jie, chief executive of the Dandong Federal Business Company, who does business with North Korea, noted that he felt the positive mood during meetings with his North Korean counterparts across the border in the North Korean border town of Sinuiju. "Actually, I feel that the North Korean businessmen have the same attitude as Chinese businessmen, because they also would like to have a good environment to develop their economy," he said. Fifty-seven-year-old Mr. Zhang, a Dandong resident, said he expected the next step forward to be an important one. "I feel that once the talks is successful or is able to take another step forward, it will be beneficial to the people of our country as well as any other country. It will be very meaningful to all," he said. The February agreement was reached at negotiations in Beijing in which China, the United States, South Korea, Japan and Russia worked to convince the North to scrap its atomic programme. Pyongyang stunned the world last year with its first nuclear test, drawing widespread condemnation and U.N. sanctions.

ITN Source | March 15, 2007

Tags:. .delta. .attitude. .mood. .crucial. .spoken