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North Korea talks halted without progress

North Korea - Nuclear facilities
North Korea - Nuclear facilities

Talks on North Korea's nuclear programme have come to an abrupt halt with no progress after four days of negotiations were derailed by the issue of funds frozen in a Macau bank.

North Korea had avoided discussing a February deal to shut its main nuclear reactor at Yongbyon by mid-April since the talks began on Monday, demanding that $25 million at Macau's Banco Delta Asia first be transferred to a bank in Beijing.   

North Korean envoy Kim Kye-gwan did not talk to reporters before his sudden departure.

A statement released by China, host of the talks which include the two Koreas, the US, Japan and Russia, said the six countries agreed only to meet again.   

It said the parties would resume the talks at the 'earliest opportunity' to continue to discuss and formulate an action plan for the next phase.

US envoy Christopher Hill had said the delay in the transfer from Banco Delta Asia to a North Korean account at the Bank of China needed to be overcome quickly.

Diplomats express frustration at foot-dragging

Japan's chief cabinet secretary Yasuhisa Shiozaki said: 'It's really a waste, especially with everyone gathered there.'   

Washington said on Monday it had ended an investigation into the Macau bank, accused of harbouring North Korean earnings from international crime, which had prompted Macau authorities to take over the bank and freeze the accounts.   

As part of the February disarmament deal, the United States agreed to resolve North Korea's complaints about the financial crackdown within 30 days.   

Russian envoy Alexander Losyukov said the Bank of China had refused to accept the transfer and a diplomatic source said China did not want to play a role in getting 'dirty money' back to impoverished North Korea.   

In the meantime, North Korea was unwilling to engage with the other parties on substantive issues of its nuclear programme.