US softens on fund curbs

The main US envoy to South Korea said on Thursday that Washington will seek to resolve financial restrictions on the North that have hindered nuclear talks...

The main US envoy to South Korea said on Thursday that Washington will seek to resolve financial restrictions on the North that have hindered nuclear talks, after Pyongyang agreed to return to the negotiations following its nuclear test.

US Ambassador Alexander Vershbow said Washington has agreed to form a working group on the financial issue amid the six-nation nuclear talks that North Korea agreed this week to rejoin8212;the first sign of a relaxation of tensions after the North8217;s October 9 nuclear explosion.

8220;We want to resolve these issues because we do want to have a normal relationship with North Korea,8221; Vershbow said in a lecture to university students, referring to the standoff between Washington and Pyongyang over US moves to cut off the communist nation8217;s access to foreign banks for alleged illicit activities like counterfeiting and money laundering.

Pyongyang has said it will seek to have the financial restrictions lifted at the resumed talks, last held in November 2005. No date has been set for the next round of talks, but South Korean Vice Foreign Minister Yu Myung-hwan said on Wednesday it would be held after the summit of the Asia-Pacific Economic Cooperation forum, or APEC, scheduled for November 18-19 in Vietnam.

China said the sooner the talks resume, the better. 8220;It is our belief that it would be better to hold the meeting as early as possible,8221; said Foreign Ministry spokesman Liu Jianchao at a regular news briefing.

Liu also said China would maintain United Nations sanctions on North Korea despite the latest breakthrough.

President Roh Moo-hyun said on Thursday that South Korea would keep its relations with North Korea 8220;friendly8221; despite the communist regime8217;s nuclear test8212;a sign that Seoul will seek to mend ties that were strained by the North8217;s missile tests in July and worsened after the North8217;s October 9 nuclear test. 8220;We will continue to maintain friendly relations with North Korea,8221; said Roh.

8211;BO-MI LIM