US Says Macao Authorities Ready to Release Frozen North Korea Funds

Apr 10, 07:52 AM

Current Headlines: Text of report in English by Japanese news agency Kyodo

Beijing, April 10 Kyodo - Macao authorities are ready to release frozen North Korea-linked funds, the US Treasury Department said Tuesday, a development that could remove a key obstacle that has halted the six-party process for denuclearizing North Korea.

"The United States understands that the Macao authorities are prepared to unblock all North Korean-related accounts currently frozen in Banco Delta Asia," the Treasury said in a statement.

"Based on previous discussions with Chinese, Macanese and DPRK officials, as well as understandings reached with the DPRK on the use of these funds, the United States would support a decision by the Macao authorities to unblock the accounts in question," it said.

DPRK stands for the Democratic People's Republic of Korea, North Korea's official name.

The statement did not mention how the funds will be released or when they will be unfrozen.

North Korea has refused to implement the initial steps for abandoning its nuclear programmes spelled out in a Feb. 13 deal by the six parties, saying that it must first receive the $25 million frozen in Banco Delta Asia SARL.

The funds were frozen after Washington designated the bank a "primary money-laundering concern" in September 2005.

The United States and North Korea agreed shortly before the latest round of six-party talks to resolve the row by transferring the money to a North Korean account at a Chinese bank in Beijing, and that Pyongyang would use the funds for humanitarian purposes.

But the transfer had been stalled due to what diplomats have described as technical problems.

Macao issued a statement saying "the government of Macao has noted the public statement released by the US authorities in relation to the North Korea funds in Banco Delta Asia."

"The Monetary Authority of Macao will continue to coordinate all parties concerned in Macao to properly deal with this issue within the parameters of existing legislations. Simultaneously, it expects all parties concerned to come up with appropriate and responsible arrangements respectively," the statement said.

Wendy Au, spokeswoman of the Monetary Authority of Macao, told Kyodo News that account holders or authorized parties can go to the bank and withdraw or transfer money from the North Korea-linked accounts.

North Korea has insisted it will not engage in talks on denuclearization, nor implement steps in the Feb. 13 pact until the funds are returned.

In the Feb. 13 deal, North Korea agreed to shut down its Yongbyon nuclear facility and invite International Atomic Energy Agency inspectors back into the country within 60 days, in exchange for the start of energy aid to the country. The 60-day deadline expires Saturday.

The six-way nuclear talks involve two Koreas, the United States, China, Japan and Russia.

(c) 2007 BBC Monitoring Asia Pacific. Provided by ProQuest Information and Learning. All rights Reserved.