[USFK Forums] Financial sanctions on N. Korea based on solid evidence: U.S. [AFP]

[C. Y. Lee]

Uploaded by C. Y. Lee on Wednesday, January 11, 2006

Financial sanctions on North Korea based on solid evidence: US

Mon Jan 9, 10:53 PM ET

Washington (AFP) - The United States has said sanctions imposed on nuclear-armed North Korea for alleged illicit financial activities were based on carefully scrutinized evidence, rejecting Pyongyang's contention that the charges were groundless.

"The Treasury Department's very careful in going through, accumulating and analyzing this evidence in coordination with other parts of the US government," State Department spokesman Sean McCormack told reporters.

A North Korean foreign ministry spokesman claimed on Monday that evidence supplied by the United States to justify financial sanctions on the Stalinist state for alleged counterfeiting and money-laundering activities had turned out to be "baseless" fiction.

Pyongyang insists that the sanctions, targeting the flow of hard currency to North Korea, are a major roadblock to six-party talks aimed at ending a three-year standoff with the United States over its nuclear weapons program.

McCormack defended the financial sanctions and said there would be no let up in actions against any illicit financial activities by North Korea.

"We are going to continue to take those steps. And we believe that any other country would take steps to protect itself, to act to prevent or stop illicit activity," he said.

"Whether that's counterfeiting or whether that's money laundering or engaging in drug trafficking or the trafficking in illicit military technologies, the United States is going to take actions to prevent that," he added.

Treasury Department officials in September told US financial institutions to stop dealing with Banco Delta Asia, a Macau-based bank, which they accused of being a front for North Korean counterfeiting.

And in October US officials blacklisted eight North Korean companies allegedly involved in the spread of weapons of mass destruction.

The sanctions are effective because they restrict the flow of hard currency to North Korea's ruling elite, while sparing ordinary people, analysts say.

North Korea has argued that the sanctions breached the spirit of a September pact secured at the Beijing-hosted six-party talks, in which North Korea agreed in principle to disband its nuclear weapons program in return for economic and diplomatic benefits.

The nuclear standoff between Pyongyang and Washington ignited in 2002 when the United States accused North Korea of running a secret uranium-enrichment program.

North Korea responded by throwing out UN International Atomic Energy Agency weapons inspectors and abandoning the Nuclear Non-Proliferation Treaty.

McCormack said that the financial sanctions were not linked to the six-party talks among the United States, the two Koreas, Russia, China and Japan, and urged Pyongyang to keep its commitment to return to negotiations.

"We are focused on returning to the six-party talks at the earliest possible date. And we hope that the North Korean government shares that view. They committed to it at the last round and we hope they abide by that commitment," he said.

The last round of talks -- which group the two Koreas, the United States, China, Russia and Japan -- ended in stalemate in November.

The United States is discussing with the other parties to bring back North Korea to the negotiating table.

"I'd expect in the coming days we would also be in further contact with them on this issue to get them back to the table," McCormack said.