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April 17, 2007
North Korea Closing Nuclear Reactor?

Tokyo
US satellites have spotted unusual activity near North Korea's nuclear reactor which, Washington believes, may be evidence that North Korea is closing down the reactor, South Korea's Dong-a Ilbo said Tuesday citing diplomatic sources.

Satellite photos taken Monday by the US reflect "unusual activity", with more transportation and people going to and from the reactor than usual. After seeing the shots South Korea shared US conclusions that this could be evidence of North Korea's intention to close down the reactor.

The RENHAP agency reported that in a telephone conversation Tuesday Song Min-soon, South Korean Foreign Affairs and Trade Minister, and US Secretary of State Condoleezza Rice agreed to give North Korea a few days to stop the reactor.

Under an agreement reached at six-nation talks on denuclearizing North Korea in February, Pyongyang was to stop and seal its nuclear reactor, produce a list of other nuclear facilities and swap access to IAEA inspectors for energy supplies and other assistance within 60 days, a deadline which expired Saturday.

However, North Korea refused to honour its commitments until its accounts with Banco Delta Asia (BDA) in Macao were unfrozen. Although information emerged last week that access to the accounts was provided, Pyongyang said it would make sure before stopping the reactor.

In September 2005 the US froze 52 North Korean accounts in the Macao bank as part of unilateral sanctions against Pyongyang. Washington has so far not produced evidence of North Korean violations and agreed to unfreeze $25 million last week.

Latest reports said the bank has filed a petition with the US Treasury Department to have the decision to "blacklist" BDA overturned, the South China Morning Post newspaper in Hong Kong quoted BDA's lawyer in the US Joseph McLaughlin Tuesday.

"We are confident that the US legal system, in the end, will not sacrifice legal rights for political ends," he said.

BDA in an official statement said that the decision was politically motivated since it was based on disputes between the US and North Korea.

US Treasury officials have already expressed confidence that they will win the case.

The decision to put BDA on a "black list" of banks barring it from doing business with US banks was made in early March 2007 and will come into effect Wednesday. 

RIA Novosti | April 17, 2007

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