North Korea said on Wednesday (November 1, 2006) it would return to stalled six-country negotiations on scrapping its nuclear weapons programme and would hold direct talks with the United States to end its financial squeeze on Pyongyang. South Korea's deputy Foreign Minister Yu Myung-hwan explained to lawmakers why North Korea had decided to return to the talks and how South Korea would cope next six-way talks. "North Korea decided to return to the talks due to the international community's serious warning, (including the role of China and Russia with the United Nations' sanctions), and they felt a need to try to do something to solve the situation. This is from our analysis," said Deputy Foreign Minister Yu Myung-hwan. Yu told lawmakers that the government would not allow North Korea's possible delaying tactics or demands that they should be recognised as a nuclear power at next round of talks. "North Korea's delaying tactics like the past would not be accepted. They have to pay a big price if they use the delaying tactics. And that's our position which has been changed from the past," said Yu. "We will never accept it if North Korea tries to talk about the arms reduction negotiations by saying that they are a nuclear power. Next talks are to be held to talk about how to implement the joint communique on September 19," he added. The North's announcement, aired on North Korea's state run television KRT on Wednesday morning, confirms an announcement the previous day by China's foreign ministry and follows international sanctions against the reclusive state for its nuclear test three weeks ago. "The DPRK (North Korea) decided to return to the six-party talks on the premise that the issue of lifting financial sanctions will be discussed and settled between the DPRK and the U.S. within the framework of the six-party talks," KRT's news-reader quoted a North Korean foreign ministry spokesman as saying. The agreement to return to the negotiations -- which Pyongyang has spurned for the past year -- was reached during talks between envoys from North Korea, the United States and China in Beijing this week. North Korea made no explicit promise not to conduct any more tests, Hill said, adding that a U.N. Security Council resolution imposing sanctions over the test by the reclusive Communist state remained in force. The next six-party talks will address North Korea's concerns with the U.S. financial restrictions, possibly through a working group, he said, adding Pyongyang needs to abandon "illicit activities" that Washington has said include currency counterfeiting and drug trafficking. On the streets, people were mostly positive about the news. "It's positive. Returning to the talks itself means a lot," said 50-year-old Chang Yong-Dong. Some were apprehensive. "They will demand they should be recognised as a nuclear power at the talks. It's a trick. So we should be very cautious," said Oh Se-Jung,