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Rival Koreas' talks sputter; North's guns quiet
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Rival Koreas' talks sputter; North's guns quiet
Reuters - Tuesday, February 2
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By Jon Herskovitz
SEOUL - The two Koreas failed to make a breakthrough on the operations of a joint factory park in talks on Monday that came days after Pyongyang rattled the region by firing artillery near a disputed sea border.
The meeting took place as a senior U.S. diplomat arrived in the region for talks aimed at prodding the reclusive North back to international nuclear disarmament discussions and ahead of a rare visit by a senior U.N. envoy to Pyongyang next week.
Analysts say pressure is mounting on the destitute North to end its year-long boycott of the six-country, disarmament-for-aid talks. Pyongyang may try to improve its bargaining position with military moves that underscore the threat it poses to the economically vibrant region.
North Korean artillery, which last week fired hundreds of rounds into its waters on its side of the sea border off the west coast, was silent over the weekend.
Envoys from the South crossed the heavily armed border for talks over the Kaesong industrial park, the last joint project between the states, where South Korean firms use cheap North Korean labour and land to make goods.
The two failed to agree on steps that would enhance the park, Yonhap news agency quoted a government official as saying. The South also protested against the artillery firing.
"The talks focussed on areas including the scale of payments to the North and security concerns of the South," a Unification Ministry official told Reuters separately.
The park is one of the few sources of legitimate foreign currency for the North's leaders who have been pressing the South to increase rent and wage payments for its nearly 40,000 workers at the complex located about 70 km northwest of Seoul.
MARKETS SPOOKED
Markets were spooked when the North began the live-fire artillery exercise on Wednesday and by Seoul's return of fire. Shares in Seoul briefly retreated and the won fell against the dollar, but the moves were quickly reversed.
Market players said the subsequent days of artillery shooting have had no significant impact on trading, but served as a reminder of the risks of investing on the peninsula.
U.S. Assistant Secretary of State Kurt Campbell, who arrived in Tokyo on Monday and will then head to Seoul the following day, was expected to discuss the conditions the North has attached to returning to the stalled nuclear talks.
The North has demanded an end to U.N. sanctions, imposed after its nuclear test in May 2009, that have jolted its broken economy. It also wants a peace treaty with the United States to replace the cease-fire that ended the 1950-53 Korean War, which could then help open up international finance for Pyongyang.
The North's main newspaper issued a statement directed at Campbell saying the United States should drop its confrontational style and cold war thinking.
The top U.N. political official will travel to North Korea for wide-ranging talks, the United Nations announced on Sunday.
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