Sunday, March 18, 2007

North Korea Funds to be Released

Sources: Reuters, Bloomberg Asia, Associated Press

It appears that the United States and North Korea have reached an agreement to release frozen NK funds from a Macau bank. U.S. Treasury official Daniel Glaser announced the move which is aimed at ending the NK nuclear weapons program. The frozen funds were released per the February deal, and had threatened to dismantle the agreements reached during the first round of meetings. NK had demanded that the $25 million, which had been frozen for 19 months at Banco Delta Asia to be moved to an account with the Bank of China in Beijing. The United States froze the money because of allegations of money laundering and counterfeiting. The February deal had called for North Korea to shut down all nuclear facilities in an exchange for foreign aid. North Korea had called for a return of all the money frozen at Banco Delta Asia before it would comply with the February agreements. At this point, North Korea has until April 13th to shut down the nuclear plants in return for aid equivalent to 50,000 tons of oil. It will receive an additional 950,000 tons of fuel oil upon the permanent disabling of the nuclear reactor. The money is expected to be used for humanitarian purposes and educational purposes

Question: With the previous Clinton Administration agreement similar to the current one, how can the world powers ensure that North Korea does not renege on this current agreement?

No comments: