Japan Says Six-Way Talks Uncertain Despite Fund Transfer

Jun 15, 06:54 AM

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

Tokyo, June 15 Kyodo - Prospects for resuming the six-party talks on North Korea's nuclear programmes remained uncertain Friday even as Macao authorities announced the transfer of North Korea-linked funds at the centre of a dispute, Japanese officials said.

"There is no guarantee the six-party talks will start immediately" even after the fund transfer is resolved, Foreign Minister Taro Aso told reporters.

Noting North Korea's unpredictable behaviour, Aso said, "There is a possibility North Korea will raise its demands."

Macao's finance chief said Thursday that more than $20 million in North Korea-linked funds that had been frozen at Banco Delta Asia, a blacklisted Macao bank, have been transferred out of the Chinese territory, raising hopes for a major breakthrough in the impasse over North Korea's denuclearization.

Notwithstanding the BDA issue, North Korea must fulfil its commitment to take initial to denuclearize in line with a Feb. 13 six-party accord, Chief Cabinet Secretary Yasuhisa Shiozaki said.

"The time limit has lapsed considerably for the implementation of the initial steps, and North Korea should not waste any time in implementing the initial steps it committed itself to," said Shiozaki, the Japanese government's top spokesman.

Both Aso and Shiozaki said the Japanese government has yet to be formally informed by authorities from Macao, Russia or the United States over the fund transfer.

Where the money was sent was undisclosed, but it is believed the money was transferred through the Federal Reserve Bank of New York and Russia's central bank to a Russian bank at which North Korea holds accounts.

North Korea has made the return of the BDA funds a prerequisite for returning to the six-party talks and carrying out initial denuclearization steps agreed by the six parties in a Feb. 13 deal.

In the February deal by the two Koreas, the United States, China, Russia and Japan, Pyongyang agreed to shut down and seal the Yongbyon nuclear complex and invite International Atomic Energy Agency inspectors back by April 14 in return for energy aid.

But North Korea has refused to implement the initial steps even after this deadline until it confirms the promised transfer of the frozen money.

The funds were frozen at the Macao bank after the United States blacklisted the bank on suspicion of helping Pyongyang launder money and circulate counterfeit currency.

While the Macao monetary authorities had unblocked the funds in April in line with an agreement between North Korea and the United States, technical and legal issues had prevented the transfer of the money from the bank.

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