China has lifted its freeze on some North Korean accounts in a Macau bank which have allegedly been involved in money laundering and other financial irregularities for Pyongyang, a diplomatic source said Monday.
China ordered its banks to stop engaging in financial dealings with Banco Delta Asia (BDA) in the Chinese territory of Macau, after the U.S. gave its financial institutions similar instructions in September 2005. The sanctions led to the freeze of about US$24 million of the North's holdings.
A diplomatic source in Beijing, requesting anonymity, said China unfroze some accounts of North Korean companies in the BDA, allowing them to conduct normal financial transactions with Chinese banks. The unfrozen accounts are believed to be those unrelated to the North Korean financial crimes, and ones suspected of being linked to the illegal activities are still under financial restrictions, the source said.
The funds in the unfrozen accounts are thought to be less than $12 million, the source said.
The source said the measures were believed to be conducted with the understanding of the United States. The U.S. once branded the BDA as a "willing pawn for the North Korean government." A North Korean official in Beijing confirmed the report, saying, "That is seen as the U.S. accepting some of our demands." The official declined to be identified.
Financial sanctions on the Macau bank have been a major stumbling block to the resumption of six-party talks on North Korea's nuclear weapons program. The North has denied the allegations, insisting on the unfreezing of the accounts before rejoining the talks, which last convened in November last year.
The dispute over the North's nuclear program worsened after the reclusive country defiantly conducted its first-ever nuclear test on Oct. 9, prompting worldwide international condemnation and U.N.
Security Council sanctions.
Three weeks after its nuclear test, the North said it would return to the disarmament talks on the premise that the financial restrictions would be discussed and settled. U.S. officials responded they hoped to resolve the impasses caused by the sanctions.
The top U.S. nuclear envoy arrived in Beijing on Monday to speed up the preparations for the next round of six-party talks, which involve the two Koreas, the U.S., China, Russia and Japan.
"You know we had suitable discussions in Hanoi and I am here to continue that process," Hill told reporters on arrival at Beijing's airport. Hill was to meet his Chinese counterpart, Wu Dawei, during his two-day trip.
Hill referred to the annual summit of Pacific Rim countries held in Hanoi, where member states urged North Korea to abandon its nuclear program and return to the six-party talks.
A South Korean official, meanwhile, downplayed the report on the Macau bank.
"The BDA matter is one of the cards the U.S. can use," the official said, adding there is little chance the U.S. would agree with such a move by China.
"There were no talks on the BDA at all" during the recent South Korea-U.S. summit on the sidelines of the Asia-Pacific Economic Cooperation forum, the official said, on condition of anonymity.
Beijing, Nov. 20 (Yonhap News)
China unfreezes some N. Korean accounts in Macau bank: source |
