South Korea appears set to accept North Korea's rice request despite nuclear impasse

SEOUL, South Korea (AP) - South Korea appeared set to accept North Korea's request for food aid on Saturday, despite Pyongyang's failure to meet a deadline to shut down its nuclear reactor as part of a disarmament deal. The two sides discussed a draft accord on rice aid, but talks dragged on past a scheduled closing time, partly over South Korea's attempt to get the North to agree to put a mention in their joint statement that Pyongyang is committed to the nuclear deal, pool reports said, citing an unidentified South Korean official.

The meetings, which began Wednesday, were mainly aimed at discussing a request from the North for 400,000 tons of rice, although Seoul also wanted to use the talks to try to persuade Pyongyang to honour the February accord.

At the table, the two sides agreed to conduct test runs of trains on rebuilt tracks across their heavily armed border in mid-May, pool reports said.

The trial runs would be the first time trains have crossed the border in more than half a century.

Still, it was unclear if the accord could be put into practice, because it lacks a North Korean military promise to guarantee the safety of cross-border travellers during the rail tests.

The two sides were close to deal on bartering raw material for clothes, shoes and soap from the South for the right to develop mineral resources in the North, the reports said.

Since February, South Korea restarted most aid shipments to the North that were suspended after Pyongyang conducted missile and nuclear tests last year.

But Seoul continued to withhold food assistance partly in an attempt to put pressure on the North to carry out its nuclear obligations, and partly in consideration of possible criticism that it is lavishing aid on the North before Pyongyang takes denuclearization steps.

North Korea failed to meet the April 14 deadline to close the Yongbyon nuclear facility amid a prolonged financial dispute with the United States.

Pyongyang has claimed the resolution of the bank dispute is a precondition to its disarmament.

North Korea boycotted international nuclear talks for more than a year because Washington blacklisted a Macau bank where Pyongyang held US$25 million. The U.S. accused Banco Delta Asia of helping the North to launder money and pass counterfeit US$100 bills.

On the eve of the deadline, North Korea issued a statement saying that its commitment to the nuclear deal remains firm and it would take action as soon as it confirms the financial dispute is resolved.

Pyongyang issued a similar statement on Friday in an apparent attempt to calm concerns that the unpredictable regime - which has a track record of reaching agreements and then scrapping them - may be dragging its feet in implementing the nuclear deal.

The U.S. and Banco Delta Asia said earlier this month that the North's money had been unfrozen. But for unknown reasons, North Korea has yet to withdraw the money.

Still, the U.S. welcomed the North's reaffirmation of its commitment to the nuclear pact.

"We are glad to hear that they are on the record again and that they intend to support and fulfil their obligations," deputy State Department spokesman Tom Casey said.

The two Koreas are still technically at war as the 1950-53 Korean War ended in a truce, not a peace treaty. But their relations warmed significantly since the first and only summit of their leaders in 2000.

© The Canadian Press, 2007