US eases economic curbs on N Korea

US eases economic curbs on N Korea
REUTERS

Washington, June 20: The United States has eased economic sanctions against North Korea after almost 50 years, further lowering the barriers between the reclusive Stalinist state and the international community.

The move yesterday implements an announcement made by President Bill Clinton last September and is aimed at improving relations between the nations while encouraging North Korea to refrain from testing long-range missiles.

Trade of most goods between the countries is now allowed, as is direct personal and commercial financial transactions, investments, shipping cargo and commercial flights.

While US citizens will still require a licence from the treasury department to do business with North Korea, under the new rules permission will be much easier to obtain.

``These measures are supported by our close allies in the region and are part of the process of close coordination between the United States, Japan and South Korea recommended by former secretary of defence William Perry,'' Clinton said in a statement.

``We will continue to build on these efforts and on the recent North-South summit to achieve additional progress in addressing our common (weapons) proliferation concerns,'' he added.

State Department spokesman Richard Boucher told reporters at a briefing the easing of sanctions would allow most imports and exports of non-sensitive consumer goods.

``Also permitted in the easing are direct financial transfer from one person to another, such as from a family in the United States to family members in North Korea or for legitimate commercial purposes,'' he added.

Restrictions associated with North Korea's designation by the United States as a terrorist-supporting state remain in place. That means exporting military goods and sensitive technology is still not allowed and companies will not be able to secure help from the export-import bank to facilitate trade with North Korea.

The changes were published yesterday in the federal register, the official publication of US Government proceedings, and came just days after a historic summit between leaders of North and South Korea and less than a week ahead of June 25, the 50th anniversary of the Korean war.

South Korean President Kim Dae-Jung and North Korean leader Kim Jong-il agreed last week to reduce tensions on the divided peninsula and to hold reunions of families torn apart when the Korean war broke out 50 years ago.

Clinton's decision followed a moratorium by North Korea on its missile-testing programme and cooperation with the United States on a broad range of issues that Washington says could result in normalised relations.

North Korea's test-firing of a missile over Japan in August 1998 indicated that it had ended the big powers' monopoly on long-range missiles and helped prompt the United States to begin setting up a defensive shield to protect against any such attacks.

``It is our understanding and expectation that North Korea will continue to refrain from testing any long-range missiles for the duration of our negotiations that are aimed at improving our relations,'' Boucher said.

The United States began testing its engagement approach with North Korea in 1994, after it determined it had produced enough plutonium at a nuclear facility for one or two bombs.

Enemies since the 1950-53 Korean war, the two sides negotiated an ``agreed framework'' under which North Korea froze its nuclear weapons programme in return for a US vow to provide two nuclear power reactors and oil supplies worth $five billion.

Boucher noted that while members of the US Chamber of Commerce are planning to travel to North Korea to explore possibilities for trade, initial options seemed limited given the state of the cash-strapped economy in the communist country.

Washington has said the warming of relations on the Korean peninsula would not lead to a withdrawal of the 37,000 US troops posted in South Korea.

``Our troops are there as long as we and the South Koreans think they're necessary for defence,'' Boucher said. ``That situation hasn't really changed at this stage.''