Originally published by the Voice of America (www.voanews.com).
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March 15, 2007

US Says Macau Bank Decision Will Help Smooth N. Korea Nuclear Talks
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http://enews.voanews.com/t?ctl=16A88A8:A6F02AD83191E160F1CE37633A0012329574F7DCC14957C0 US Treasury's
ruling against Macau's Banco Delta Asia bans all US financial dealings
with bank The chief U.S. negotiator in the North Korea nuclear
disarmament talks says a U.S. decision to punish a bank in Macau will
help smooth the process. But the U.S. action has drawn fire from
China. VOA's Luis Ramirez reports from Beijing, where diplomats from
six nations are gathering for new discussions on how to bring about
the end of North Korea's nuclear program.







A branch of Banco Delta Asia in Macau (file photo)The U.S. Treasury's
ruling against Macau's Banco Delta Asia bans all U.S. financial
dealings with the bank. The decision follows an 18-month probe into
the bank's relationship with North Korea, which Washington says
involved the laundering of millions of dollars in money obtained
through counterfeiting currency and cigarettes, and drug trafficking.

As a result of the U.S. investigation, Macau froze the North Korean
funds. This angered Pyongyang officials, prompting them to boycott
nuclear negotiations for more than a year.

A preliminary accord reached February 13 calls for the resolution of
the financial sanctions as one of the conditions on which North Korea
agreed to shut down its only nuclear plant by mid April.

U.S. envoy Christopher Hill told reporters in Beijing more talks are
needed on the Banco Delta Asia matter, but the U.S. action is intended
to smooth the six-party negotiations.







U.S. Assistant Secretary of State Christopher Hill speaks to the media
after his arrival in Beijing, 14 March 2007"What we are trying to do
in this 30-day period is to do what we said we would do, which is to
resolve this matter and turn it over to the Macau authorities
consistent with their obligations," he said.

Now the Chinese-controlled Macau government can take whatever action
it deems necessary on the North Korean funds, including releasing
them.

But China protested the U.S. ruling against the Macanese bank. Chinese
Foreign Ministry spokesman Qin Gang accused Washington of overstepping
its authority.

"We express our regret at the United States insisting on using U.S.
domestic law to apply a ruling," he said.

North Korean officials had no immediate comment.

Representatives of the six nations - which also include Japan, Russia,
and South Korea - gathered in Beijing for the start of working group
meetings before a formal session on Monday.

The delegates are to discuss energy aid and diplomatic concessions
that the nations are to make to North Korea in exchange for its
shutdown and eventual dismantling of its nuclear programs.


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