Key step forward on North Korea

Agreement on funds frozen by US paves way for North Korean shutdown of its nuclear program.

from the April 12, 2007 edition

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As for US claims that the North is to use the $25 million for humanitarian purposes, Lieberthal says this is a "fig leaf." Saying North Korea has proved for more than a decade that it is "not a good actor," he says, "I do not know any expert on North Korea who would take that seriously."

Skepticism is shared by some analysts in the region. Park Joong Song, of the Institute of Foreign and National Security in Seoul, says that a number of pitfalls loom. "From now, North Korea will be able to demand its name as terrorist-sponsored state be wiped from the State Department list, and they can ask for shipments of heavy oil from South Korea.... They will make sure they receive everything before they shut down their nuclear facility."

One issue Richardson did not address was the fact that $7 million of the amount belongs to the British-owned Daedong Credit Bank, set up in Pyongyang for foreign clients, including diplomatic missions and nongovernmental organizations. Colin McAskill, head of the company that's taking over Daedong Credit Bank, had demanded the $7 million remain in Banco Delta Asia until his bank withdraws it.

Richardson and former veterans affairs secretary Anthony Principi talked about the North's response with an air of triumph made all the more compelling by their success in returning from Pyongyang with the remains of six American soldiers killed in the Korean War.

Goodwill in repatriating remains

That was seen as an extraordinary gesture of goodwill, since North Korea had offered before the signing of the February accord to resume the search for more than 8,000 Americans missing from the war. It was the first time in two years that North Korea had returned American remains, the focus of a series of searches before the breakdown of relations.

The remains were turned over at Panmunjom as the US delegation, which included two Department of Defense officials, arrived from Pyongyang. The North's agreement that the group could cross through the demilitarized zone was seen as further evidence of the North's desire to live up to the agreement.

While it seemed unlikely North Korea would shut down the Yongbyon reactor by Saturday, the Americans hoped at least that IAEA officials could go there by then. Once that hurdle is overcome, US envoy Christopher Hill hopes to get on with the next phase, including more six-party talks on the scope of North Korea's nuclear program beyond Yongbyon.

But experts say the near-collapse of the February accord over a small sum of money may mean tough days ahead. "What this suggests is that the whole February agreement is on extremely shaky ground and could collapse ... at the next obstacle," says CSIS's Mr. Wolfsthal. "Rest assured that even after Yongbyon is figured out and even if international inspectors get back in there, there will long, painful negotiations, with the North holding out for some kind of payoff every step of the way."

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