North Korea may resume disablement after deal: South

By Jon Herskovitz

SEOUL (Reuters) - South Korea said on Sunday the U.S. decision to remove North Korea from a terrorism blacklist and salvage a faltering nuclear deal could lead Pyongyang to soon resume taking apart its plutonium-producing nuclear plant.

The impoverished and destitute North has longed to be delisted so it can better tap into international finance, see the lifting of many trade sanctions, and use global settlement banks to send money abroad instead of relying on cash-stuffed suitcases.

The decision was made after the North agreed to a series of verification steps of its nuclear plant, a State Department spokesman said in Washington on Saturday.

One hawkish Japanese minister called it regrettable because it left unresolved the fate of Japanese nationals kidnapped by the North.

South Korea's chief nuclear envoy told a Sunday briefing in Seoul: "This government welcomes these moves as an opportunity that would lead to normalization of the six-party talks and North Korea's eventual abandonment of its nuclear programs."

Kim Sook said he believes the North "would be returning to disablement activities," which could be implemented immediately.

Most of the steps, which were started in November, have been completed and were aimed at taking at least a year to reverse.

Last month North Korea lashed out at not being removed by backing away from a disarmament-for-aid deal it made with China, Japan, Russia, South Korea and the United States, and took initial steps to rebuild its plutonium-producing nuclear plant, which was being disabled under the pact's terms.

As part of the deal, North Korea would resume disablement of its nuclear facilities and allow in U.N. and U.S. inspectors who had been ordered out.

ANGRY MINISTER

Japan has a simmering feud with Pyongyang over the fate of its nationals kidnapped decades ago by North Korean agents and still held in the communist state.

"I believe abductions amount to terrorist acts," Japanese Finance Minister Shoichi Nakagawa, a conservative who has taken a hawkish view on the emotive issue, said in Washington, calling the decision "extremely regrettable."

White House spokesman Gordon Johndroe said Bush spoke to Japan's Prime Minister Taro Aso on Saturday and reaffirmed support for Japan on the abduction of its citizens.

Foreign Minister Hirofumi Nakasone said Tokyo would work with Washington to resolve the abductees issue, and called for a strict verification system.

South Korean envoy Kim, who has asked Japan to contribute to aid incentives given in exchange for disablement, said many countries had bilateral concerns with Pyongyang but the more important issue was ending the North's atomic ambitions.