Pyongyang's frozen funds transferred

Most of the Democratic People's Republic of Korea (DPRK) funds long frozen in a Macao bank have been transferred, an official said yesterday, raising the prospect of an end to the deadlock stalling a nuclear disarmament deal with Pyongyang.

"Francis Tam confirmed that Banco Delta Asia has remitted a sum of over US$20 million out of Macao," a Macao government spokesman said, referring to the special administrative region's secretary for economy and finance.

He added the bank declined to say where the money was transferred, citing privacy concerns.

The DPRK has refused to honor a February agreement to begin shutting its Yongbyon nuclear reactor and source of material for atomic weapons until $25 million at Macao's Banco Delta Asia are released through normal banking channels.

The funds were blocked after the United States blacklisted Banco Delta Asia, accusing it of laundering illicit funds for Pyongyang.

Japan's Kyodo news agency, citing Macao financial authorities, said the funds were expected to be transferred through the New York branch of the Federal Reserve and Russia's central bank to a Russian bank where the DPRK holds accounts.

Russia said on Wednesday it would allow one of its banks to transfer the $25 million, provided Washington gave written guarantees that it would not fall foul of US sanctions against Pyongyang.

Six-Party Talks

Foreign Ministry spokesman Qin Gang told a news briefing yesterday that Beijing was keen to resume the Six-Party Talks once all parties were in agreement to do so.

"Like the other five parties, China hopes the talks resume at an early date," said Qin.

Christopher Hill, who is also the chief US negotiator at the Six-Party Talks, told reporters on Wednesday he is due to visit China, the Republic of Korea (ROK) and Japan next week to discuss the possibility of restarting the talks.

Source: China Daily/Agencies