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Pallavi Aiyar
Mr. Hill said negotiators were working out how to implement a September 2005 joint statement that promised aid and security assurances to North Korea in return for Pyongyang dismantling its nuclear programme. "We do believe that there are some elements of that September agreement that should begin to get implemented even this week," he told reporters on Thursday morning. However, any attempt to reach a consensus will be tough given that North Korea has shown no signs it is willing to back off from its demand that U.S. financial restrictions against it be lifted before any negotiations on the nuclear issue take place. North Korea had left the negotiating table 13 months ago angered at the time by the U.S. blacklisting of a Macau bank in which Pyongyang had deposited $24 million, on charges of counterfeiting and money laundering. Pyongyang finally agreed to return to talks only after the U.S. said they could discuss the financial issue in separate bilateral meetings Mr. Hill acknowledged that the DPRK's position on financial restrictions was a major stumbling block. "This is not an easy stage,'' Mr. Hill told reporters. "It is difficult engaging them [the North Koreans] on other subjects when they have come in with a strong view on the financial issue. This is a challenge we face."
Financial curbs
U.S. and North Korean experts discussed the financial restrictions issue for five hours on Wednesday, their second day of meetings this week. However, no breakthroughs were made.
Host China, largely credited with using its influence with Pyongyang to persuade the DPRK back to the negotiating table after the over year-long hiatus, was more optimistic. "We are currently at the stage of earnest and pragmatic discussions," Qin Gang, a Foreign Ministry spokesperson said. "Everyone has stated their positions which will help mutual understanding and narrowing of differences." However, he acknowledged that "sharp and clear" disputes between the relevant parties remained. Whether or not this week of intensive negotiations bears any fruit will become clear on Friday, expected to be the last day of the talks.
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