Reclusive North Korea holds rare talks with foes

SEOUL, Mar 7 (Reuters) The prospects of a thaw between North Korea and its bitterest foes brightened further today as it went into talks with Japan after a meeting in New York that the United States' envoy described as ''very good''.

The discussions on establishing diplomatic relations came after the impoverished communist state agreed last month to start shutting down its nuclear arms programme in exchange for millions of dollars in energy aid.

That deal also eased tension on the Korean peninsula that had been stoked by Pyongyang's missile and nuclear tests last year.

An adviser to South Korea's president left for Pyongyang today to meet the North's nominal number two leader in a trip that local media said could lead to the second summit meeting of the leaders of the divided peninsula.

As a part of the arms-for-aid deal, reached by six countries after Pyongyang was hit by UN sanctions, North Korea sent its chief nuclear envoy to the United States and another delegation to talks with Japan for discussions on formally establishing ties with the world's number one and two economies.

The talks with Japan opened in the Vietnamese capital, Hanoi, today, a day after Japan said North Korea had accepted a proposal to discuss the sensitive issue of Pyongyang's abductions of Japanese citizens.

''Our biggest purpose is to urge them to deal with this issue squarely and take positive measures,'' Japan's chief negotiator Koichi Haraguchi told reporters before the talks.

''Our biggest goal is early return of all the abductees.'' Japan says it will not give full-scale economic assistance to North Korea or establish diplomatic ties unless the abductee dispute is resolved. North Korea admitted in 2002 that its agents had abducted 13 Japanese, sparking outrage in Japan.

Five of those were repatriated and Pyongyang says the other eight are dead.

''VERY GOOD' NEW YORK TALKS The United States said it had ''very good'' talks yesterday and it appeared that the deal reached in February on ending North Korea's nuclear ambitions was on track for now.

''These were very good discussions,'' US Assistant Secretary of State Christopher Hill told reporters after about eight hours of talks with North Korean negotiator Kim Kye-gwan.

''For now we feel we are on the right track.'' He was also upbeat that North Korea would meet its initial obligations under the February 13 agreement, which include shutting down the nuclear reactor at the centre of its atomic programme and inviting back international inspectors within 60 days.

''I would say there was a sense of optimism (on) both sides that we will get through this 60-day period and we will achieve all of our objectives that are set out in the February 13 agreement.'' South Korean presidential adviser Lee Hae-chan, a former prime minister, left today for Pyongyang on a visit his Uri Party said was aimed at establishing a peace regime for the two Koreas.

The two Koreas remain technically at war, more than half a century after the 1950-1953 Korean War ended in an inconclsuive truce.

The administration of President Roh Moo-hyun has repeatedly denied that it is seeking a summit with North Korean leader Kim Jong-il. Kim met then-South Korean President Kim Dae-jung in June 2000, which led to a quick warming of ties.

REUTERS SY DS1116