US rejects financial talks with N. Korea
(AFP)
Updated: 2006-03-11 08:53

The United States has rejected a North Korean proposal to open two-way talks on financial issues, at a time when Pyongyang is blaming U.S. accusations of counterfeiting and money laundering for its decision to halt nuclear disarmament talks.

North Korea presented the proposal for a "consultative committee of experts" at a March 7 meeting in New York. The meeting was convened to enable U.S. Treasury experts to explain to a North Korean delegation the U.S. laws that triggered economic sanctions against Pyongyang last year.

In turning down the North Korean suggestion, the State Department said Friday that regulations to protect the U.S. financial system are not subject to negotiation.

"The United States will continue to regulate its financial system as it deems appropriate in accordance with U.S. law," said a State Department official who was not authorized to be identified when discussing the issue.

North Korea's proposal appeared to be a renewed attempt to open a bilateral channel with Washington. The administration prefers to deal with North Korea through the six-nation negotiations on North Korea's nuclear weapons program.

Those talks have been dormant since November. North Korea blames the impasse on the financial sanctions. The United States contends that Pyongyang has engaged in counterfeiting U.S. dollars and money laundering, which North Korea has denied.

The State Department noted on Friday that a joint statement issued by the six parties last September called for discussions on trade and investment issues among the six as a way of ending North Korea's relative international isolation.

The department said the best way to implement the September accord is for North Korea to return to the six-party talks.

The North Korean proposal was first reported in the South Korean media.