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The Bush administration, reversing a six-year-old North Korea policy based on deep mistrust, said it will now rely on Pyongyang’s “good faith” to ensure that funds released yesterday from a Macao bank are not misused.
Ã‚Â Ã‚Â Ã‚Â Ã‚Â With time running out on a breakthrough nuclear accord, the United States said it had removed the final roadblock by agreeing for $25 million in Banco Delta Asia to be released to its depositors, principally the North Korean government.
Ã‚Â Ã‚Â Ã‚Â Ã‚Â Washington had wanted the money to be placed in a bank in a third country, where it could be monitored to ensure it was used only for humanitarian purposes. But with a deadline looming on Saturday for North Korea to shut down its nuclear reactor at Yongbyon, the Americans had been unable to find a bank willing to handle the money.
Ã‚Â Ã‚Â Ã‚Â Ã‚Â With the financial issue now resolved, U.S. officials said, they expect North Korea to move swiftly to shut down the reactor.
Ã‚Â Ã‚Â Ã‚Â Ã‚Â “The bottom line is, authorized account holders as of now will be able to access the funds in those accounts,” State Department spokesman Sean McCormack told reporters, citing assurances from the Macao government.
Ã‚Â Ã‚Â Ã‚Â Ã‚Â A spokeswoman for the Monetary Authority of Macao, Wendy Au, was quoted by Japan’s Kyodo news agency as saying, “The account holders or authorized parties can go to the bank and withdraw or deal with their deposits.”
Ã‚Â Ã‚Â Ã‚Â Ã‚Â Mr. McCormack said the North Koreans had promised “to spend the money for the betterment of the North Korean people,” and not for the personal benefit of its officials.
Ã‚Â Ã‚Â Ã‚Â Ã‚Â “In any negotiation, you are going to get to a point where every party … wants something, and they are not going to get it exactly in the form that they want it — and that’s part of the negotiating process,” he said.
Ã‚Â Ã‚Â Ã‚Â Ã‚Â “You compromise, but you compromise within reason,” he said. “You compromise in order to achieve a larger objective and the important thing is that, along the way, you not abandon [your] principles … and what you want to achieve at the end of the process.”
Ã‚Â Ã‚Â Ã‚Â Ã‚Â Nevertheless, the concession is likely to anger some administration supporters — such as former undersecretary of state for arms control and international security, John R. Bolton — who already were critical of the nuclear deal.
Ã‚Â Ã‚Â Ã‚Â Ã‚Â Under a Feb. 13 agreement reached at six-party talks in Beijing, the United States promised to resolve the Macao bank issue within 30 days and Pyongyang pledged to shut down the Yongbyon reactor within 60 days.
Ã‚Â Ã‚Â Ã‚Â Ã‚Â Washington argued it had met its obligation when the Treasury Department barred American banks from doing business with Macao’s Banco Delta Asia on March 14, but North Korea refused to shut the reactor until it received access to its funds.
Experts now say it may not be possible to safely close the reactor by Saturday, suggesting the deadline may have to be extended.
Ã‚Â Ã‚Â Ã‚Â Ã‚Â A Treasury Department delegation spent the past two weeks in Beijing trying to find a Chinese bank willing to accept the money from Macao, but none was willing to cooperate with U.S. conditions.
Ã‚Â Ã‚Â Ã‚Â Ã‚Â Chinese banking officials were also worried that their institutions would be blacklisted by Washington, just as Banco Delta Asia was last month. The United States charges that the North Korean funds include the proceeds of counterfeiting and money laundering.
Ã‚Â Ã‚Â Ã‚Â Ã‚Â The administration conceded yesterday that it is extremely difficult to monitor anything that goes on in North Korea, the world’s most reclusive state. But officials indicated that Secretary of State Condoleezza Rice had decided the deal was a reasonable compromise in order to ensure that Yongbyon is closed.
Ã‚Â Ã‚Â Ã‚Â Ã‚Â “This is a process in which good-faith actions will be met in turn by good faith, which results in a building of confidence, which allows all the parties to make some of the tough decisions that are going to be needed if we are going to all achieve our goals,” Mr. McCormack said.
Ã‚Â Ã‚Â Ã‚Â Ã‚Â “This is something that we are going to watch closely,” he added. “We are going to ask the North Koreans about [how they are using the money] in subsequent negotiations — whether or not they are abiding by their pledges, and to the best of our ability determine whether or not they are abiding by that pledge, as well as other pledges that they made in this process.”
Ã‚Â Ã‚Â Ã‚Â Ã‚Â The Monetary Authority of Macao took over Banco Delta Asia’s management after it was alerted by the United States about suspicious transactions.
Ã‚Â Ã‚Â Ã‚Â Ã‚Â Christopher Hill, the chief U.S. nuclear negotiator, said yesterday in Seoul that the release of the funds “should clear the way for the [North] to step up the process of dealing with its obligations within the 60-day period.”
Ã‚Â Ã‚Â Ã‚Â Ã‚Â China said the six-party deal would not fail even if the weekend deadline was not met.
Ã‚Â Ã‚Â Ã‚Â Ã‚Â The six-nation talks were started in 2003 aimed at ending the North’s nuclear weapons ambitions. After testing several missiles in July, Pyongyang shocked the world with its first atomic weapons test in October.
Ã‚Â Ã‚Â Ã‚Â Ã‚Â Japan has taken the hardest line in the talks. Yesterday, it extended sweeping sanctions against North Korea for another six months to press it to give ground in an emotionally charged row over its past kidnappings of Japanese nationals.
Ã‚Â Ã‚Â Ã‚Â Ã‚Â The North Koreans told a visiting U.S. delegation in Pyongyang this week that they will allow U.N. inspectors to return to the North to monitor Yongbyon’s closure as soon as they have the $25 million.
The crew has been held captive for more than a week
The 15 Royal Navy personnel held captive by Iran could stand trial for “entering Iranian waters”, a senior Iranian diplomat has said.Gholamreza Ansari, Iran’s ambassador to Moscow, is quoted as telling Russian TV they may face “illegal action” charges.
But the UK government says the captives were seized in Iraqi waters and has demanded their “immediate” return.
The US has ruled out a deal to exchange the Navy personnel for five Iranians it captured in Iraq in January.
According to Iran’s IRNA news agency, Mr Ansari told Russian television legal moves against the 15 had already started “and if charges against them are proven, they will be punished”.
Britain denies Iran’s claims that the UK crew was in its waters when seized on 23 March.
A Foreign Office spokeswoman said: “Our position has not changed. We have made it clear that they were inside Iraqi waters and we want them returned immediately.”
UK VERSION OF EVENTS
1 Crew boards merchant ship 1.7NM inside Iraqi waters
Earlier, US state department spokesman Sean McCormack rejected suggestions that a swap could be made for five Iranians, believed to be members of Iran’s Revolutionary Guard.
They were captured in a raid in the city of Irbil, along with equipment which the Americans say shows clear Iranian links to networks supplying Iraqi insurgents with technology and weapons.
US officials have condemned Iran’s actions and publicly supported the UK.
Mr McCormack said: “The international community is not going to stand for the Iranian government trying to use this issue to distract the rest of the world from the situation in which Iran finds itself vis-a-vis its nuclear programme.”
Prime Minister Tony Blair has condemned Iran for “parading” the UK crew on television in a way which would only “enhance people’s sense of disgust”.
IRANIAN VERSION OF EVENTS
1 Royal Navy crew stray 0.5km inside Iranian waters
But a former Iranian ambassador to the United Nations, Said Rajai Khorasani, told BBC Radio 4’s Today programme Mr Blair had been too “authoritative” in his approach.
He added: “He could have said for instance, ‘Well, even if there is possibly a mistake, in the light of good relations between the two countries, I hope that you will facilitate their release.’
“I mean that’s a more friendly – let’s say phraseology – than dictating, you know, immediately and unconditionally, and so on and so forth.”
In what appeared to be an edited broadcast on an Iranian channel on Friday, captured sailor Nathan Thomas Summers said: “I would like to apologise for entering your waters without permission.”
He was shown alongside two colleagues, one of whom was Leading Seaman Faye Turney, from Shropshire, who had been broadcast apologising to Iran earlier in the week.
A letter, allegedly from LS Turney, was released on Friday in which she said she had been “sacrificed” to UK and US government policy.
European Union foreign ministers, meeting in Bremen, Germany, called for “the immediate and unconditional release” of the sailors and expressed “unconditional support” for Britain’s position.
UK Foreign Secretary Margaret Beckett described the latest footage as “quite appalling” and “blatant propaganda”.
She also said she had replied to a letter from the Iranian government, but no detail of the contents was given.
The Iranian letter had not suggested Tehran was looking for a solution to “this difficult situation”, Ms Beckett added.
The BBC has been able to confirm the names of six of the 15 captured sailors and marines.
Along with LS Turney and Nathan Summers, who is from Cornwall, they are Paul Barton from Southport, Danny Masterton from Ayrshire, Joe Tindall from south London and Adam Sperry from Leicester.
The Britons, based on HMS Cornwall, were seized by Revolutionary Guards as they returned from searching a vessel in the northern Gulf.
Seoul’s fears over North Korea delayed the command transfer
The US and South Korea have reached a deal to hand control of South Korea’s military back to Seoul by 2012. The agreement ends a 50-year pact that gave the US wartime command of South Korea’s army, dating to the Korean War.
Under pressure in Iraq, the US had wanted to hand over in 2009. But South Korea pushed for a slower transition.
The US currently has 29,500 troops on the Korean peninsula and Seoul’s military numbers 680,000. North Korea has more than one million troops.
US Defence Secretary Robert Gates and South Korean Defence Minister Kim Jang Soo made the announcement after talks in Washington on Friday.
They agreed on a transition “road map” starting in July and ending with a military exercise in March 2012.
“The two sides will disestablish the current ROK-US Combined Forces Command on April 17, 2012 and complete the transition to the new supporting-supported command relationship between US and ROK forces at the same time,” the US said in a statement after the meeting.
The US has reduced its troop numbers in South Korea by 10,000, down from 40,000 when US President George W. Bush came to power. It plans to further reduce this number to 25,000 by 2008.
But Seoul’s fears over North Korea’s nuclear and missile tests last year were a factor in delaying the transfer until 2012.
A South Korean parliamentary committee this week opposed making any transfer of command until security was stabilised in the region.
The countries also agreed to speed up relocating US military headquarters in South Korea from Seoul to Pyeongtaek, about 65km (40 miles) south of Seoul.
South Korea ceded control of its military to a US-led UN force during the Korean War, which ended with a ceasefire in 1953.
It was given peacetime command of its forces in 1994 but the US would still take over should war break out on the peninsula.