Key differences resolved in N Korea nuclear talks

BEIJING, Feb 13 (Reuters) Key differences over a deal to unravel North Korea's nuclear arms programme were settled in six-country talks early today after days of haggling over a huge package of energy aid for the reclusive communist state.

The talks in Beijing between the two Koreas, the United States, Japan, Russia and host China focused on how to begin implementing a September 2005 agreement that promised North Korea aid and security assurances in return for nuclear disarmament.

The negotiations had snagged over the weekend over Pyongyang's demands for energy aid, but a marathon 16-hour session then brought a breakthrough that could yield a formal agreement after talks resume at 0800 hrs IST today.

''There was an agreement on the key differences of North Korea's actions for denuclearisation, their scope and how far they'll go, and the other countries' corresponding measures and the scale of assistance,'' South Korean envoy Chun Yung-woo told reporters.

''North Korea basically agreed to all the measures in the draft.'' The draft agreement now needs a green light from the capitals of the six countries, US envoy Christopher Hill said.

''Now it will be up to the Chinese to get formal approval from the different delegations. I think the Chinese will certainly be up to that task,'' Hill said.

The proposed plan will be only the first step in locating and dismantling the nuclear arms activities of North Korea, which detonated a nuclear device for the first time last October.

''This is only one phase of denuclearisation. We're not done,'' said Hill.

DISTRUST A gulf of distrust divides the isolated North from others in the talks, especially the United States, and diplomats have stressed that even this initial disarmament action could founder.

Chinese Foreign Ministry spokesman Qin Gang told reporters the six sides had held ''extraordinarily intensive consultations'' and needed a further session today to ''confirm things''.

Japan's chief delegate, Kenichiro Sasae, sounded a note of caution. ''It is too early for me to say the draft is acceptable,'' he told reporters. His words were echoed by South Korea's envoy.

Some criticism has already started, with John Bolton, former U.S. ambassador to the United Nations, saying the North should not be rewarded with ''massive shipments of heavy fuel oil'' for only partially dismantling its programme.

''It sends exactly the wrong signal to would-be proliferators around the world,'' Bolton told CNN.

In the potential deal, North Korea has offered to shut down its Yongbyon nuclear plant, which produces plutonium usable in nuclear weapons, according to many diplomats close to the talks.

A diplomatic source said North Korea had demanded the United States and four other countries provide it with 2 million tonnes of heavy fuel oil annually -- worth about 600 million dollar -- and 2,000 megawatts of electricity.

The electricity, at an estimated cost of 8.55 billion dollar over 10 years, would be about equal to North Korea's current output.

Hill did not say how the energy dispute was solved.

''Everybody had to make some changes to try to narrow the differences,'' he said.

Hill also said he did not know if North Korea's leaders would approve the potential deal but that Pyongyang's negotiators appeared to understand what they may sign up for.

In September 2005, North Korea agreed to a joint statement sketching out the nuclear disarmament steps Pyongyang needed to take to secure fuel and economic aid, as well as political acceptance from its key adversary, the United States.

But the negotiations lost momentum after Washington accused the North of counterfeiting US currency and other illicit activities. Pyongyang boycotted the talks until worldwide condemnation of its nuclear test drew it back in December.

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