US considering release of some N.Korea funds 
  (Reuters)  Updated: 2007-01-17 10:03  
 Washington - The US Treasury Department is scrutinizing 
US$24 million in North Korean accounts frozen in a Macao bank to see if some of 
the money could be released to Pyongyang, US officials 
say.
  Several officials told reporters they believe the Bush 
administration is now inclined to find a solution to the year-long dispute over 
the accounts in Banco Delta Asia, which Washington has called a "willing pawn" 
in Pyongyang's counterfeiting and money-laundering activities. 
  But they 
stressed this would not affect UN sanctions and US laws and regulations that 
provide other authority for cracking down on Pyongyang's finances and weapons 
trade.
  North Korea has cited the frozen Banco Delta Asia (BDA) accounts 
as a major reason for stonewalling six-country talks on ending its nuclear 
program. 
  Chief US negotiator Chris Hill met his North Korean counterpart 
in Berlin on Tuesday to discuss resuming the talks and the BDA issue was 
expected to be on the agenda. 
  "There are a number of North Korean 
accounts in Banco Delta Asia that the (Treasury) accountants are looking at. 
They are comparing these accounts," said one US official who spoke on condition 
of anonymity. 
  It is possible that accounts reflecting "legitimate" 
business activity could be segregated from "illegitimate" accounts and "a lot of 
resources are being applied to make that kind of assessment," he said. 
  Segregating Accounts
  Previously, US officials 
argued it was impossible to differentiate among Pyongyang's accounts because the 
country's entire financial system is based on illicit activities such as 
counterfeiting and money-laundering. 
  Experts say $7.5 million of the $24 
million was from Daedong Credit Bank, a British bank representing foreign 
companies doing business in North Korea. 
  The Treasury Department on 
Tuesday refused to comment on the status of the BDA investigation and whether it 
was looking for a compromise solution. 
  But a second US official said: 
"They are taking another look at this (BDA) issue. There is active discussion 
within the administration on whether to make concessions and if so, how far, how 
fast and under what conditions." 
  Hill is "hoping to close" Treasury's 
investigation on Banco Delta Asia, he added.
  Macao, not the United 
States, has control over BDA and the North Korean accounts. US officials said if 
Treasury closed its BDA probe, this could be interpreted by Macao as a signal to 
release at least some of the $24 million. 
  Some officials are deeply 
troubled by what they see as a more accommodating US approach toward Pyongyang 
and say Hill has been given greater flexibility to negotiate. They say North 
Korea can't be trusted to honor any deal. 
  But other officials say North 
Korean counterfeiting and money-laundering, while important to stop, should not 
be allowed to thwart a possible deal that could halt the North's vastly more 
dangerous nuclear weapons-related activities. 
  Pyongyang has dramatically 
advanced its nuclear program during US President George W. Bush's tenure. It 
tested its first weapon last October. 
  During the last round of six-party 
talks in Beijing in December, North Korea refused to even discuss a September 
2005 statement under which it agreed to abandon its nuclear programs in return 
for economic aid and security guarantees. 
  All Pyongyang's negotiator 
"wanted to talk about was one issue -- BDA -- and the return of the $24 
million," one US official said. A US-North Korea financial working group 
expected to meet soon would discuss the "substance" of the BDA accounts, a US 
official said. 
  Six-party talks in November 2005 broke off after 
Washington squeezed Pyongyang's access to the world financial system to punish 
it for its illegal activities. Banco Delta Asia accounts were frozen after 
Washington declared the bank a "primary money laundering concern" under section 
311 of the USA Patriot Act.
   
 
 
 
   
	
	 
	
	 
 
  
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