N. Korea escalates crisis: US

Moscow: US Secretary of State Condoleezza Rice cast doubt yesterday on reports that North Korea had pledged to stop nuclear tests, saying it seemed bent instead on escalating the crisis.

News reports had raised hopes that tension was easing on Friday by saying North Korean leader Kim Jong-il had told China's special envoy Tang Jiaxuan this week that he planned no further nuclear tests.

But Rice met Tang in Beijing on Friday and told reporters travelling on to Moscow with her: "Tang did not tell me that Kim Jong-il either apologised for the test or said that he would not ever test again."

Russia is the last stop on Rice's five-day trip to shore up support for UN economic and weapons sanctions imposed a week ago to punish Pyongyang for conducting an underground nuclear test on October 9.

She played down reports Kim had told Beijing he "regretted" the test, which was condemned internationally, including by China, the North's closest ally and economic lifeline.

No apology

"The Chinese did not, in a fairly thorough briefing to me, say anything about an apology," she said. "The North Koreans, I think, would like to see an escalation of the tension."

She also questioned whether Pyongyang intended to return to six-party talks, which have been stalled for nearly a year.

Kim Kye-gwan, North Korea's top nuclear negotiator, earlier told US television Pyongyang hoped to return to the table.

North Korea has boycotted the talks, which bring together the two Koreas, the United States, Japan, Russia and China, because Washington, accusing it of counterfeiting money, is imposing restrictions on its external financing.

South Korea's Chosun Ilbo newspaper quoted an unidentified diplomatic source in Beijing as saying Kim had told Tang that Pyongyang would resume talks if Washington ended its financial sanctions. But Rice said they would remain.

Legal process

"The financial measures are a legal process which has to do with counterfeiting money. The [US] president has made very clear at every turn that he is going to defend the US currency," she said.

China's Xinhua news agency quoted Tang as saying the United States should take a more flexible attitude when dealing with North Korea, a view which Russia echoed yesterday.

"Settling financial problems in relations between the United States and North Korea would have considerable importance in creating conditions for the resumption of the talks," Russia's Interfax news agency quoted Foreign Minister Sergei Lavrov as telling the Kuwaiti news agency in an interview. Lavrov, who said the problem should not be linked to the talks and must remain outside them, added: "It would be irresponsible to insist on a principle here. Both sides need to be flexible."

Rice's visits to Tokyo, Seoul and Beijing were overshadowed by speculation that North Korea would conduct a second nuclear test.