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North Korea May Be Preparing To Shut Reactor

The North insists it will begin shutting down and sealing Yongbyon and readmit UN atomic inspectors once it has retrieved 25 million dollars in funds frozen in Macau's Banco Delta Asia (BDA).
by Staff Writers
Seoul (AFP) April 18, 2007
US spy satellite photos indicate that North Korea may be preparing to shut down a nuclear reactor, days after the communist state missed an agreed disarmament deadline, news reports said Tuesday. The US satellites Monday spotted unusual movement of people and vehicles near the cooling tower and parking lot at the Yongbyon facility, which provides plutonium for nuclear weapons, South Korea's Dong-A Ilbo newspaper said.

The United States and South Korea believed it was likely the activities were part of operations to close down the reactor, as required under a six-nation disarmament deal reached in February, it said.

South Korea's National Intelligence Service (NIS) confirmed to AFP that "unusual movements" had been spotted around the reactor but could not say what they might mean.

"We have been closely watching the development," a spokesman for the spy agency said.

In Washington, State Department spokesman Sean McCormack said Pyongyang had not formally informed the United States of moves to shut down the reactor, but he declined to comment on the reported activity at Yongbyon.

"We haven't received any formal notification from the North Koreans that they are at this point taking steps to fulfill their obligations under the Feb 13 agreements: shutting down and sealing the Yongbyon plant," McCormack said.

"Beyond that, I can't comment on intelligence-related matters -- what we may or may not know," he told reporters.

The reports raised hopes that Pyongyang may be preparing to take the first step agreed to in February, after an April 14 deadline to close Yongbyon had lapsed due to a dispute over millions of dollars frozen in a Macau bank.

South Korean Foreign Minister Song Min-Soon and US Secretary of State Condoleezza Rice expressed a strong desire to see North Korea carry out the measures stipulated in the February agreement, Song's ministry said.

The ministers in a phone conversation agreed "to watch the situation for a few more days," a ministry official said.

Song also talked by phone with Chinese counterpart Li Zhaoxing and agreed to continue cooperation "for an early settlement" of the dispute over the frozen funds, the official said.

The North insists it will begin shutting down and sealing Yongbyon and readmit UN atomic inspectors once it has retrieved 25 million dollars in funds frozen in Macau's Banco Delta Asia (BDA).

The United States, which orchestrated the freeze on suspicion of money-laundering and counterfeiting, has said the funds were freed for collection at BDA last week.

But there has been no word on when and how the transfer will be made, although Rice and Song said that "the door for settling the BDA problem remains open to North Korea."

That claim was disputed by fellow nuclear negotiator Russia, whose Deputy Foreign Minister Alexander Losyukov charged Monday that Washington was "not removing the obstacles to using this money and this is creating problems."

Japanese Foreign Minister Taro Aso warned Tuesday that disputes between the US, Macau and North Korea could continue "for a while," saying all the problems in the talks were "about financial technicalities."

McCormack again rejected the idea that Washington was holding up North Korea's recovery of the funds, saying: "Any issues that remain are between North Korea and their bankers."

He added that a decision this week by BDA to challenge the US Treasury ruling that led to the sanctions against it should not have any impact on North Korea's ability to recover its funds.

The spokesman said the US and its negotiating partners -- China, Japan, Russia and South Korea -- had agreed to give the North "a bit more time" to shut down Yongbyon, without revealing a specific timeframe.

The six-party talks have dragged on since 2003 but assumed added urgency after the North tested a nuclear weapon last October.

In February, Pyongyang agreed to disable its nuclear programmes in exchange for one million tons of fuel oil or equivalent aid, as well as security and diplomatic benefits.

earlier related report
No News On North Korean Nuclear Plant Shutdown
Washington (AFP) April 17 - The United States has received no notification from North Korea that it has started closing its nuclear reactor as required under a six-nation disarmament deal, a senior US official said Tuesday.

But State Department spokesman Sean McCormack declined to comment on reports that US spy satellites had spotted unusual movement Monday at the Yongbyon reactor in a possible sign it was preparing to shut the facility.

"We haven't received any formal notification from the North Koreans that they are at this point taking steps to fulfill their obligations under the Feb 13 agreements: shutting down and sealing the Yongbyon plant," McCormack told reporters.

"Beyond that, I can't comment on intelligence-related matters -- what we may or may not know," he said.

Under the February agreement, Pyongyang was to have shut and sealed Yongyon by April 14 in return for fuel aid and a start to normalizing relations with Washington.

But Pyongyang ignored the deadline, citing an unresolved dispute over North Korean funds frozen in a Macau bank due to US sanctions.

South Korea's Dong-A Ilbo newspaper reported earlier Tuesday that US spy satellites on Monday spotted unusual movement of people and vehicles around the cooling tower and parking lot at Yongbyon,

The US and South Korea believed it was likely the activities were part of operations to close down the reactor, which experts say has provided North Korea with enough plutonium to make six to 12 nuclear weapons, it said.

South Korea's National Intelligence Service (NIS) confirmed to AFP that "unusual movements" had been spotted around the reactor but could not say what they might mean.

The reports raised hopes that Pyongyang may be preparing to take the first step agreed to in the February pact reached with China, Japan, Russia, South Korea and the United States.

US Secretary of State Condoleezza Rice and South Korean Foreign Minister Song Min-Soon discussed the situation by telephone on Tuesday, officials said.

The United States and the other parties to the negotiations have agreed to give North Korea "a bit more time" to fulfil its promise to shut Yongbyon, McCormack said.

"I would say that we are being flexible," he said. "There is some delays in the process and we're willing to give it a bit more time," he added, while declining to put any timeframe on how long Washington is willing to wait.

North Korea has insisted it will begin shutting Yongbyon and readmit UN atomic inspectors once it has retrieved 25 million dollars in funds frozen in Macau's Banco Delta Asia (BDA).

The United States, which orchestrated the freeze after accusing the bank of complicity in North Korean money-laundering and counterfeiting, has said the funds were freed for collection last week.

But there has been no word on when and how North Korea will actually recover the funds.

Russia and Japanese officials indicated this week that they think Washington is still involved in holding up a resolution of the dispute, a contention McCormack rejected.

"It's an inaccurate assessment of the situation," he said. "Any issues that remain are between North Korea and their bankers."

McCormack said a decision this week by BDA to challenge the US Treasury ruling that led to the sanctions against it should not have any impact on North Korea's ability to recover its funds.

Source: Agence France-Presse

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