N. Korea Talks Stall Over Frozen Funds

Mar 20, 08:01 AM

Current Headlines: Six-nation talks on North Korea's nuclear program were halted abruptly in Beijing on Tuesday over funds the United States unfroze a day earlier.

North Korean Vice Foreign Minister Kim Kye Gwan announced to his Chinese hosts he would not participate until some $25 million the U.S. government froze in a Macau bank in 2005 has been received.

The funds were frozen on allegations they were part of a North Korean money-laundering scheme, but the U.S. agreed to release them as part of a Feb. 13 deal between the two Koreas, China, Japan, Russia and the United States.

In exchange for shutting down its nuclear reactors within 60 days, Pyongyang will receive heavy fuel oil along with trade concessions from the countries.

Kim also said his country will start acting on the nuclear shutdown within a 60-day period commencing with the delivery of the funds to a Beijing bank, rather than within 60 days of the date of the agreement, the report said.