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Flexibility sought on N. Korea funds

BEIJING, April 5 (UPI) -- China Thursday asked all countries involved in the talks on North Korea's nuclear program to show more flexibility over release of funds for the north.

The funds totaling $25 million remain frozen in a Macao bank, preventing their transfer to the Bank of China and holding up the six-party talks.

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A Chinese foreign ministry spokesman called on all sides to seek an acceptable solution for the transfer of the money, Kyodo news agency reported.

Earlier Thursday in the Chinese capital, visiting Australian Foreign Minister Alexander Downer was quoted as saying the banking issue had become a complex one.

"There is some question mark about some of the funds and the extent to which those funds can be transferred through a legitimate bank," he said.

A day earlier, Chinese Vice Foreign Minister Wu Dawei said delay in resolving the funds transfer could affect the implementation of the Feb. 13 agreement reached by the six parties. North Korea agreed to shut down its Yongbyon nuclear facility and allow U.N. inspectors to return in 60 days in exchange for shipments of 50,000 tons of heavy fuel oil.

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