N Korea weapons deals linked to Macao bank

TOKYO, Nov 4: North Korea used accounts at a Macau-based bank to pay Japanese companies for equipment that could be used to produce weapons of mass destruction, a Japanese newspaper said today The US government this week re-affirmed its tough line on Macau-based Banco Delta Asia (BDA), which it identified as a ''primary money laundering concern'' in 2005 because of involvement with Pyongyang's accounts.

In September 2002, North Korea forwarded 6.15 million yen (52,120 dollars) from a BDA account to pay for the illegal purchase through Taiwan of a freeze dryer that could be used to develop biological weapons, the Yomiuri Shimbun said, citing police sources.

In April 2003, an electrical power supply unit that could be used for enriching uranium was illegally exported to North Korea via Thailand and was paid for via BDA, the paper said.

Since the BDA accounts were frozen, Pyongyang has sought to open new accounts in Mongolia, Russia and Vietnam, Yomiuri said.

North Korea said on Tuesday it had agreed to resume participation in six-party talks on its nuclear programme because Washington promised to discuss the financial crackdown that Pyongyang says drove it from the negotiating table.

The plan is for a separate working group to discuss the crackdown within the nuclear talks framework, involving China, South Korea, Japan, Russia, the United States and North Korea.

About 24 million dollars in funds are affected by the freeze on the Macau bank accounts, US officials say.

REUTERS

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