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US and N Korea discuss sanctions US and N Korea discuss sanctions
(about 5 hours later)
US and North Korean officials have held face-to-face meetings for the first time since the start of crunch talks on ending Pyongyang's nuclear programme.US and North Korean officials have held face-to-face meetings for the first time since the start of crunch talks on ending Pyongyang's nuclear programme.
US treasury officials met their North Korean counterparts to discuss US financial sanctions imposed a year ago - which Pyongyang demands to be lifted.US treasury officials met their North Korean counterparts to discuss US financial sanctions imposed a year ago - which Pyongyang demands to be lifted.
Both chief envoys have also met for direct talks, as part of the six-party talks underway since Monday.Both chief envoys have also met for direct talks, as part of the six-party talks underway since Monday.
US envoy Christopher Hill said little progress was made on the first day.US envoy Christopher Hill said little progress was made on the first day.
Tuesday was a "much more important day to see how things are going to go," he added.Tuesday was a "much more important day to see how things are going to go," he added.
North Korea needs a lot of things... They don't need nuclear weapons Christopher HillUS assistant secretary of stateNorth Korea needs a lot of things... They don't need nuclear weapons Christopher HillUS assistant secretary of state
The US wants to revive a deal reached in September 2005, under which Pyongyang agreed to abandon its nuclear programme in return for US security guarantees and aid.The US wants to revive a deal reached in September 2005, under which Pyongyang agreed to abandon its nuclear programme in return for US security guarantees and aid.
Pyongyang insists it wants the US to lift its restrictions - imposed two months after the September deal - on a Macau-based bank, which holds $24m of the regime's money.Pyongyang insists it wants the US to lift its restrictions - imposed two months after the September deal - on a Macau-based bank, which holds $24m of the regime's money.
The US blacklisted the bank in November 2005, saying it was linked to alleged money-laundering and counterfeiting by Pyongyang.The US blacklisted the bank in November 2005, saying it was linked to alleged money-laundering and counterfeiting by Pyongyang.
The move prompted Pyongyang to walk out of the talks, only agreeing to return after it had carried out a nuclear test on 9 October.The move prompted Pyongyang to walk out of the talks, only agreeing to return after it had carried out a nuclear test on 9 October.
Altered demandsAltered demands
North Korea was in a defiant mood when it returned to the negotiating table with the US, China, South Korea, Japan and Russia in Beijing on Monday.North Korea was in a defiant mood when it returned to the negotiating table with the US, China, South Korea, Japan and Russia in Beijing on Monday.
In his opening statement, chief envoy Kim Kye-gwan said Pyongyang would not consider halting its nuclear programme unless both the US financial restrictions and UN sanctions - the latter imposed after its nuclear test - were lifted.In his opening statement, chief envoy Kim Kye-gwan said Pyongyang would not consider halting its nuclear programme unless both the US financial restrictions and UN sanctions - the latter imposed after its nuclear test - were lifted.
N KOREA NUCLEAR PROGRAMME Believed to have 'handful' of nuclear weaponsBut not thought to have any small enough to put in a missileCould try dropping from plane, though world watching closely Low hopes for talks Text of September 2005 deal href="/1/hi/world/asia-pacific/6189563.stm" class="">China press optimistic N KOREA NUCLEAR PROGRAMME Believed to have 'handful' of nuclear weaponsBut not thought to have any small enough to put in a missileCould try dropping from plane, though world watching closely Low hopes for talks Text of September 2005 deal href="/1/hi/puffbox/scheduler/6193635.inc" class="">Talks absorb regional press
He also repeated North Korea's demand for a nuclear reactor to generate energy.He also repeated North Korea's demand for a nuclear reactor to generate energy.
And he said Pyongyang was unconcerned that other countries did not accept its newly demonstrated nuclear status.And he said Pyongyang was unconcerned that other countries did not accept its newly demonstrated nuclear status.
Both Mr Hill, the US assistant secretary of state, and Japanese and South Korean negotiators suggest the North may alter its demands in coming days, when negotiators break into smaller meetings.Both Mr Hill, the US assistant secretary of state, and Japanese and South Korean negotiators suggest the North may alter its demands in coming days, when negotiators break into smaller meetings.
The impoverished state had much to lose if the talks failed, he said.The impoverished state had much to lose if the talks failed, he said.
"North Korea needs schools, health stations, roads, airports. They need a lot of things," he said. "They need food, electricity. They don't need nuclear weapons"."North Korea needs schools, health stations, roads, airports. They need a lot of things," he said. "They need food, electricity. They don't need nuclear weapons".
Despite the talking, no-one holds out much hope for any kind of breakthrough, the BBC's James Reynolds in Beijing says.Despite the talking, no-one holds out much hope for any kind of breakthrough, the BBC's James Reynolds in Beijing says.
Leadership questionLeadership question
Meanwhile, a South Korean parliamentary report has suggested that divisions in North Korea over the successor to leader Kim Jong-il lay behind October's nuclear test.Meanwhile, a South Korean parliamentary report has suggested that divisions in North Korea over the successor to leader Kim Jong-il lay behind October's nuclear test.
Kim Jong-il agreed to the test to win military support for the eventual transfer of power to one of his sons, the report by the National Assembly's Intelligence Committee said.Kim Jong-il agreed to the test to win military support for the eventual transfer of power to one of his sons, the report by the National Assembly's Intelligence Committee said.
"The fundamental task that North Korea has to address right now is not to overcome economic difficulties or establish diplomatic relations or a peace treaty with the US," the report said."The fundamental task that North Korea has to address right now is not to overcome economic difficulties or establish diplomatic relations or a peace treaty with the US," the report said.
Its priority is "to stabilise the North's system through completing the designing" of the next leadership, it said.Its priority is "to stabilise the North's system through completing the designing" of the next leadership, it said.
The report also said the 64-year-old leader may begin the slow transfer of power to his son as early as next year. It did not say which of his three known sons it might be.The report also said the 64-year-old leader may begin the slow transfer of power to his son as early as next year. It did not say which of his three known sons it might be.