North Korea, hostage issues dominate Asia security meet

MANILA, Aug 2 (Reuters) North Korea demanded today the United States remove it from a list of states that sponsor terrorism and lift a strict trade ban before further progress could be made on dismantling its nuclear programme.

North Korean Foreign Minister Pak Ui-chun, on his first major foreign trip since taking office, was addressing the Association of Southeast Asian Nations (ASEAN) Regional Forum in Manila, a grouping that includes major world powers.

The closed-door meeting also condemned the abduction of South Korean church volunteers in Afghanistan last month and the killing of two of them by Taliban guerrillas.

Diplomats quoted Pak as saying North Korea had shut its Yongbyon nuclear facilities and opened them to inspections by the International Atomic Energy Agency.

The North now wanted to see reciprocal action, including being dropped from the U S Trading With the Enemy Act, he said.

''All should be done based on action-to-action,'' Pak was quoted as saying. ''Therefore, five other countries, particularly the United States and Japan, must take action.'' In a meeting with his South Korean counterpart, Pak said Washington must scrap its ''hostile policy'' towards Pyongyang before the North moves to ''disable'' its nuclear facilities.

North Korea was put on the U S terror list after the downing of a South Korean airliner in 1987.

Christopher Hill, the U S point-man on six-party talks on ending North Korea's nuclear programme, said he found Pak's comments ''harsh''.

''But you shouldn't believe everything you will hear,'' he told reporters.

''I think this month needs to be a very busy and active time for the six-party talks. I think we have set up a good structure for dealing with our work.'' Denuclearisation of North Korea was crucial for regional peace and stability, the ASEAN Regional Forum (ARF) stressed in a statement issued after its meeting.

Despite lobbying by Japan, the ARF did not directly mention the issue of Japanese nationals abducted by North Korea, referring only to ''humanitarian and people concerns''.

Tokyo wanted a specific reference to the issue in the statement.

NOT WITHOUT BUMPS Alberto Romulo, the Philippines secretary of foreign affairs and ARF chairman, said all six parties to the nuclear talks -- North and South Korea, China, Japan, Russia and the United States -- were working towards a high-level meeting next month.

''They hope that by some time in September, the foreign ministers will meet in Beijing to see how much they have accomplished.'' But Romulo cautioned against expecting quick results.

''This is not an easy road. This is a road not without bumps but they are still confident that they will overcome the obstacles.'' South Korea and the United States met on the sidelines of the forum and agreed there would be no military action to free the 21 hostages still alive in Afghanistan, a South Korean diplomat said.

Foreign Minister Song Min-soon said Seoul wanted to avoid further casualties.

''We are trying our best to prevent any further victims,'' he told reporters.

Hill did not comment on military action, but said: ''Our focus is on working with the Republic of Korea in the identical policy in getting these hostages out of harm's way and getting them back home.'' ARF brings together the 10-member Southeast Asian group with 17 dialogue partners, including the United States, China, Japan, Russia, India, the European Union and Australia.

REUTERS PD HT1915