North Korea sets condition for return to talks - report

SEOUL, Oct 20 (Reuters) North Korean leader Kim Jong-il told a Chinese envoy that Pyongyang would return to stalled talks on ending its nuclear programmes if Washington lifts a financial crackdown against it, a South Korean news report said today.

The Chosun Ilbo newspaper quoted a diplomatic source in China as saying Kim also expressed regret to state councillor and former foreign minister Tang Jiaxuan about the difficult position in which its October 9 nuclear test had placed Beijing.

''If the United States gives in to a certain degree, we will also do so, whether it's bilateral talks or six-party talks,'' the source quoted Kim as saying, according to Chosun Ilbo.

Pyongyang has demanded bilateral negotiations with Washington, which rejects them and insists on the multilateral process.

Tang returned to Beijing yesterday and was due to meet US Secretary of State Condoleezza Rice, who is touring the region to firm up regional pressure on the North over its nuclear programmes.

REUTERS SP HS0950