Bush wants to solve N. Korea dispute peacefully

WASHINGTON, Sep 14 (Reuters) President George W Bush today said the United States and its allies seek a peaceful solution to the North Korean nuclear dispute, but Pyongyang's nuclear ambitions pose a threat.

Bush said North Korea's refusal to return to six-party talks had ''strengthened'' the alliance of the five nations trying to convince Pyongyang to abandon its nuclear program.

He said the alliance was ''determined to resolve this issue peacefully but recognizes a threat posed by a country in the region armed with a nuclear weapon.'' He made the comment after meeting with South Korean President Roh Moo-hyun.

North Korea has refused to return to the talks among the two Koreas, China, Japan, Russia and the United States, saying Washington first must end a crackdown on its finances.

But Bush said North Korean leader Kim Jong Il has an incentive to return to the talks to end his country's isolation and improve the lives of his people.

''We are working very hard on restarting the six-party talks,'' Roh said. ''This is not the appropriate time to think about the possibility of a failure of the six-party process.'' Reuters LL DB2318