Bush said that despite "rumors" floating concerning the negotiations, the United States and its allies were still waiting to see the outcome of Pyongyang's overdue disclosures on its nuclear activities.

"Obviously I am not going to accept a deal that doesn't advance the interests of the region," Bush said in press conference with South Korean President Lee Myung-bak on the second day of their summit.

"We're going to make a judgment as to whether North Korea has met its obligations to account for its nuclear program and activities as well as meet its obligations to disable its reactor," Bush said.

"They have made some promises and we'll make a judgment as to whether or not they've met those promises," he said. "Then we'll make a judgment of our own ... about our own obligations."

But the South Korean leader said any softening of Pyongyang's obligations under a six-country deal to fully declare its nuclear program could lead to "a lot more serious problems."

"I believe if North Korea's declaration is not satisfactory or if the verification is not satisfactory, we could probably have a temporary achievement, but in the long term that will cause a lot more serious problems," Lee said.

Lee said everyone in the six-party talks must agree to the declaration.

US officials on Thursday said Washington was adjusting its demands on North Korea in a bid to break a diplomatic stalemate on ending Pyongyang's nuclear arms drive.

Senior National Security Council official Dennis Wilder said North Korea was not "off the hook" on fully declaring its atomic programs, but that proliferation issues would be "handled in a different manner."

US Secretary of State Condoleezza Rice, in an apparent concession to Pyongyang, indicated Pyongyang's declaration might not be made public.

She also hinted that US sanctions against North Korea could be removed even before its nuclear programs or proliferation activities were verified independently.

"Verification can take some time," Rice told reporters.

The statements triggered a backlash from US critics who suggested that the United States was selling out in the negotiations in order to nail down a deal before Bush leaves office next January.

Bush played down the idea of any US compromise, allowing that Pyongyang could be "trying to stall" and insisting that "if there's ever going to be a breakthrough, it'll be through the six-party talks."

"Let's wait and see what they say before people go out there and start giving their opinions as to whether or not this is a good deal or bad deal," he said.

Lee stressed that there should be no letup in pressure on Pyongyang to live up to its agreement with the United States, Russia, China, Japan and South Korea.

"The verification process has not begun. We are still waiting for North Korea to declare their full program. They should not get away with this temporary measure," he said.

"I think it is inappropriate and unconstructive for us to have too many doubts before the process begins. We should have trust in the process, and I will watch this process and cooperate fully."

Despite his tough stance, Lee said he was open to a summit with North Korean leader Kim Jong-Il if the talks would generate results.

"I will agree to it when the need is real and I already said publicly that I am willing to meet with him not just once, but many times, but if the meeting will yield substantial and real results," Lee said.

Lee proposed Thursday that North and South Korea, technically still in a state of war since 1950, establish permanent liaison offices in each other's capital.

The two-day summit between the US and South Korean leaders was their first since Lee became president in February. Lee said Bush accepted an invitation to visit South Korea this summer.

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