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NUKEWARS
China, S. Korea agree to push North Korea denuclearisation
by Staff Writers
Beijing (AFP) June 27, 2013


US slaps sanctions on North Korea bank
Washington (AFP) June 27, 2013 - The United States on Thursday slapped sanctions on a North Korean bank, a related company and an official for financing North Korea's nuclear weapons program.

The US Treasury named Daedong Credit Bank, "its front company" DCB Finance Limited and its China-based representative Kim Chol Sam for sanctions that freeze the assets of those designated "proliferators of mass destruction" and their supporters.

It also set sanctions on Son Mun San, the external affairs bureau chief of North Korea's General Bureau of Atomic Energy, who has directed nuclear-research efforts.

The Treasury said the new designations build upon US efforts to target financing for North Korea's ballistic missile and weapons of mass destruction programs.

It said that Daedong Credit Bank has engaged in the same type of activity that spurred US sanctions in March against the Foreign Trade Bank, North Korea's main foreign-exchange bank.

Daedong Credit Bank was providing financial services to the Korea Mining Development Trading Corporation, Pyongyang's premier arms dealer as well as its main financial arm, and the Tanchon Commercial Bank, the Treasury said.

Both KOMID and TCB were previously designated for US and United Nations sanctions.

Since at least 2007, the Treasury said, Daedong Credit Bank has handled hundreds of financial transactions worth millions of dollars on behalf of KOMID and TCB, at times hiding those transactions.

And since at least 2006, the bank has used front company DCB Finance Limited to carry out financial transactions in a bid to avoid scrutiny by foreign financial institutions.

DCB Finance Limited is registered in the British Virgin Islands and also operates out of China.

The sanctions prohibit transactions with any US person and freeze any assets on US soil.

China and South Korea will keep pushing to end North Korea's nuclear programme, their leaders declared Thursday at a high-profile summit between Pyongyang's closest ally and its key rival.

"We have agreed that under any circumstances, North Korea's nuclear (weapons) are unacceptable and confirmed that the denuclearisation of the Korean peninsula is of common interest for the two countries," South Korean President Park Geun-Hye told reporters as she sat beside Chinese President Xi Jinping.

Park made the remarks after a summit meeting in Beijing, where Xi greeted her as "an old friend of China" and granted her full military honours before the pair witnessed the signing of trade and other agreements.

"We on both sides consistently agree to continue to realise the denuclearisation of the Korean peninsula and firmly protect peace and stability on the peninsula," Xi said, though he avoided singling out North Korea by name.

China has previously supported North Korea's denuclearisation and is the chair of a multinational forum -- the six-party talks -- aimed at achieving it, but has also tended to prioritise regional stability, for decades acting as the sole major ally and economic lifeline to the unpredictable North.

South Korea, which does not have nuclear weapons, and ally the United States, have made it clear they will never accept the idea of North Korea as a nuclear state, and insist Pyongyang must show a tangible commitment to abandoning its nuclear weapons if it wants substantive talks.

Both have pressured China to use more of its leverage to rein in Pyongyang.

Xi, for his part, described the situation on the divided peninsula as "currently changing in a positive direction", apparently referring to recent offers by Pyongyang to pursue dialogue, including hinting at a return to long-stalled six-nation nuclear talks aimed at shuttering its nuclear programme.

"We hope all sides can seize this opportunity to work to return to the six party talks as soon as possible," he said.

The forum -- which groups North Korea, China, South Korea, Japan, Russia and the United States -- is aimed at achieving Pyongyang's abandonment of its nuclear weapons programme in return for aid and security guarantees.

The North appears in recent months to have moderated its stance after a series of bellicose statements and gestures against the South and the US early this year, including threats of nuclear war.

In February the North carried out its third underground nuclear test in defiance of UN Security Council resolutions, sending tensions soaring and raising fears of possible conflict.

While a planned meeting with South Korea earlier this month fell through, Pyongyang has offered direct talks with Washington, and has sent two envoys to Beijing since late May to express a willingness for dialogue.

Yang Moo-Jin, a professor at the University of North Korean Studies in Seoul, was cautious about how close the views of Xi and Park on North Korea actually are.

"President Xi reaffirmed China's established stance apparently in consideration of North Korea, while President Park strongly clarified South Korea's position that North Korea's nuclear weapons are unacceptable," Yang told AFP.

"Different wording from the two leaders may spark confusion and doubt as it is not clear whether President Xi accepted what President Park raised at their talks."

China's relationship with North Korea -- famously described by Mao Zedong as being as close as "lips and teeth" -- was forged in the 1950-53 Korean War which China entered to prevent the North's total defeat.

But it has weakened significantly over the years, as China's economic transformation has distanced it from the ideological rigidity of the dynastic Kim regime across the border.

China's relations with South Korea got off to a late start with diplomatic relations only established in 1992, but have improved steadily ever since, especially in the economic sphere.

In line with UN sanctions, Beijing has moved to restrict Pyongyang's financial operations in China which the international community says are the major conduit for funding its nuclear weapons programme.

North Korea was not the only topic on Thursday, with the two sides signing eight agreements in various fields including energy, trade, technology and oceanic cooperation.

China is now South Korea's biggest trade partner and Park has been accompanied on her trip by a sizeable business delegation from her country's dynamic economy. The two countries have been negotiating a free-trade pact.

During her stay, Park, who has taught herself some Chinese and expressed an interest in Chinese philosophy, will meet other key officials and also visit the ancient city of Xi'an, according to reports.

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