Bush considers peace treaty with N. Korea

By Michael Perry

SYDNEY (Reuters) - President George W. Bush prepared for an Asia-Pacific summit in Australia, saying on Friday the United States would consider a peace treaty with North Korea if it gave up nuclear arms.

Washington has been accused of ignoring Asia as it focuses on Iraq, but on the eve of this weekend's Asia Pacific Economic Cooperation summit, Bush weighed into major regional issues.

"We must press the regime in Burma (Myanmar) to stop arresting, harassing, and assaulting pro-democracy activists for organizing or participating in peaceful demonstrations," Bush said in a speech to Asia-Pacific business executives in Sydney.

The comments come a day after hundreds of Buddhist monks held a group of government officials for several hours and torched their cars in anger against the military that rules impoverished Myanmar, formerly called Burma.

Bush also said China should allow more freedoms ahead of the 2008 Olympic Games and later after meeting South Korean President Roh Moo-hyun offered the possibility of a treaty with Pyongyang.

"We're looking forward to the day when we can end the Korean War. That will happen when Kim Jong-il verifiably dismantles his weapons programme," said Bush.

Bush said he was referring to a formal peace treaty. Fighting in the 1950-53 Korean War ended with an inconclusive truce.

Bush's comments follow several weeks of apparent progress in ending a crisis over the weapons programme of a country he had once bracketed with pre-war Iraq and Iran in an "axis of evil".