China says no plans to end aid to North Korea

Beijing, Oct 31: Beijing has no plans to sever aid and trade to North Korea, a Chinese government spokesman said today, denying an apparent drop in China's oil exports to the isolated fortress state showed a shift in policy.

Chinese oil trade data released yesterday indicated that in September China sent no crude to North Korea. The North relies on China for nearly all its oil, but has strained long-standing ties by test-firing missiles in July and then staging its first nuclear test on October 9 -- both despite public pleas for restraint from China's leaders.

But Chinese Foreign Ministry spokesman Liu Jianchao denied the September oil fall augured a squeeze on impoverished and energy-famished North Korea.

''China's ordinary economic and trade dealings with North Korea have been continuing normally,'' he told a regular news briefing, noting that the September trade numbers did not cover the period after Pyongyang's nuclear test.

''Our trade and economic cooperation with North Korea is conducted with a view to economic well-being and people's livelihood in North Korea, to improving and raising the people's living standards, and helping North Korea surmount difficulties in energy and grain.'' Liu said he had not heard of any changes in that policy.

Trade numbers issued by China's customs administration showed all of China's 125,184 tonnes of crude exports for September went to the United States, while no shipments were reported to North Korea, which gets about 90 per cent of its oil from its neighbour.

The UN Security Council voted on October 14 to impose financial and arms sanctions on North Korea after it staged its first nuclear test on October 9. Beijing bluntly criticised the North's nuclear test and backed the sanctions.

Those sanctions do not directly cover energy, but before and after Pyongyang test-fired missiles in early July, Washington urged China to squeeze trade flows to cajole North Korea away from confrontation and back to nuclear disarmament talks.

In 2003, China's oil pipeline shut down for three days, adding to pressure on Pyongyang to draw back from nuclear brinkmanship.

Chinese officials said then it was a mechanical breakdown, but many experts said it was deliberate.

Liu said China remained committed to reviving the six-party talks it has hosted in an effort to end North Korea's nuclear weapons programme and broker lasting peace.

The United States, South Korea, Japan and Russia also take part in those talks, which Pyongyang has refused to attend since November, citing US financial restrictions.

Reuters