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Two Koreas hold talks on future of joint project

US, China, Russia, SKorea and Japan may meet on NKorea: official
The United States is looking into five-way talks with China, Russia, Japan and South Korea about pressuring North Korea to change tack on its nuclear and missile programs, a US official said Thursday. The idea was raised when US President Barack Obama hosted talks at the White House Tuesday with South Korean President Lee Myung-Bak, a senior State Department official told reporters on the condition of anonymity. "It was brought up during President Lee's visit to Washington," the official said when asked about such a meeting involving North Korea's five former negotiating partners. "It is something that has been proposed," he said. "What we want to do is take actions we think will be effective in bringing North Korea back into a process and we have had very strong consultations with these five countries," the official said. "That's an idea that's out there... It's an option," he added. Washington has welcomed a stronger stance taken by both Russia and China, since North Korea announced May 25 that it conducted an underground nuclear test, following an earlier one in 2006. Both countries joined the rest of the UN Security Council in voting unanimously June 12 to adopt tougher sanctions targeting North Korea's atomic and ballistic missile programs. The Security Council resolution also urged North Korea to return to a nuclear disarmament accord reached with the five countries in 2007, but which it bolted from in April after testing a long-range missile. China is North Korea's main ally and has always favored cautious diplomacy with Pyongyang, wary of any moves that could push the Stalinist regime to collapse and potentially send millions of refugees streaming over its border. On June 13, the North vowed to build more nuclear bombs and start enriching uranium for a new atomic weapons program, in response to the new UN sanctions that tighten controls on arms shipments involving the hardline state.
by Staff Writers
Seoul (AFP) June 19, 2009
North and South Korea Friday resumed talks on the fate of their last remaining reconciliation project, amid high tensions between Pyongyang and the outside world over its nuclear programme.

The future of the Kaesong joint industrial estate just north of the border has become increasingly uncertain as North-South relations worsened and the nuclear standoff intensified.

Pyongyang is demanding extra payments worth hundreds of millions of dollars for Seoul's use of the estate and refuses to grant access to a South Korean employee it detained at Kaesong.

Seoul officials were outwardly optimistic.

"The weather is good today, so wouldn't the talks go well?" unification ministry official Kim Young-Tak told Yonhap news agency before crossing the heavily fortified border at the head of a 14-member delegation.

The ministry said the talks at Kaesong started at 10:00 am (0100 GMT).

The communist state last week stunned Seoul by demanding a wage rise for its 40,000 workers at Kaesong to 300 dollars per month from around 75 dollars currently.

It also demanded an increase in rent for the Seoul-funded estate to 500 million dollars, compared with the current 16 million dollars for a 50-year contract.

Kim said the South will press for the release of the employee detained since March 30 for "slandering" the North's political system and allegedly trying to incite a local female worker to defect.

Unification Minister Hyun In-Taek acknowledged the venture is at a critical stage.

"One step you take and one stone you lay in today's talks will be crucial to inter-Korean relations. In that sense, I ask you to remain cool-headed during the talks," he told the delegation before its departure.

Representatives of the 106 South Korean firms at Kaesong, and President Lee Myung-Bak, have rejected what they describe as excessive financial demands.

"If Kaesong shuts down, 40,000 North Koreans would lose jobs," Lee told a press conference in Washington Tuesday. "This is why the North must stop making excessive demands, for its own interest."

Lee was speaking after a summit with US President Barack Obama, who described a nuclear-armed North Korea as a "grave threat."

The North has angrily rejected UN sanctions imposed for its May 25 nuclear test and has vowed to build more atomic bombs.

Cho Bong-Hyun, an analyst with IBK bank, told Yonhap Lee's message would draw a response from North Korea since its military is believed willing to see Kaesong shut down.

"North Korea has heard South Korea's response and it will come to the talks with a tougher position, with extra demands like tax charges," Cho said.

The impoverished communist North received 26 million dollars last year in wage payments. Yet some analysts say it may be willing to forgo the cash because it fears the effects of exposing its workers to the South Korean lifestyle.

Cross-border relations have been hostile for the past year after Lee's conservative government rolled back Seoul's previous "sunshine" aid and engagement policy with Pyongyang.

The North has intermittently restricted access to Kaesong and expelled some South Korean staff.

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