Reclusive N Korea in rare talks with foes

HANOI, Mar 7 (Reuters) The prospects of a thaw between North Korea and its foes brightened today as it held talks with Japan in Hanoi, one day after a meeting in New York that a US envoy described as ''very good''.

The discussions on establishing diplomatic relations stemmed from a six-country agreement in which the impoverished communist state would start shutting down its nuclear weapons programme in exchange for millions of dollars in energy aid.

Japanese and North Korean diplomats met today morning at the Japanese embassy in the Vietnamese capital, but an afternoon session was cancelled by North Korea, a Vietnam Ministry of Foreign Affairs official said.

The two countries were discussing the sensitive issue of Pyongyang's abductions of Japanese citizens in the 1970s and 80s.

Tomorrow's agenda calls for talks on resuming diplomatic relations, which Tokyo says is impossible without resolution of the abductee issue.

''The meeting is cancelled,'' a foreign ministry official said.

No reason was given by the North Koreans, the official said.

North Korea admitted in 2002 that its agents abducted 13 Japanese, sparking outrage in Japan. Five of those were repatriated and Pyongyang says the other eight are dead.

Earlier today, Japanese chief negotiator Koichi Haraguchi told reporters ''our biggest purpose is to urge them to deal with this issue squarely and take positive measures''.

''Our biggest goal is early return of all the abductees.'' For its part, North Korea was expected to press for settlement of issues stemming from Japan's harsh 1910-45 colonial rule of the Korean peninsula.

''I hope we, recognising the sense of responsibility and commitments, will help with the implementation of the six-party agreement by proceeding with our working-level talks,'' North Korea's negotiator, Song Il-ho, said in his opening statement.

''We believe it is favourable for us to build substantial political, economic and cultural relations by settling the unfortunate past and issues of mutual concern,'' he said.

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