[imText1]The 2nd round of financial talks between the U.S.-North Korea on the BDA issue ended on the 31st with no real outcome, though the U.S. argues that a breakthrough had been made in the investigations against North Korea’s illegal acts. Nonetheless, there has yet to be any confirmation from North Korea’s response.
Daniel Glaser, U.S. Deputy Assistant Secretary for Terrorist Financing and Financial Crimes said that they were looking towards making conciliations with the North after the talks on money-laundering had been complete. Also, he said that during the talks, information on 50 Northern account holders had been passed on and that it was proven that these funds had been used for money-laundering.
While the U.S. argues that money-laundering did take place, analysts observe North Korea’s past behaviors and argue that it will not be easy for North Korea to acknowledge its illegal actions.
This is to say that if the U.S. elucidates on the results presented and offers additional evidence, a more robust and resistant feud may restart. Rather, the difference between legal and illegal funds ($24mn) of the BDA North Korean accounts may be distinguished. Only then will North Korea faces the second best scenario.
On the first day of talks, Deputy Assistant Secretary Glaser said that two experts on counterfeit money had been introduced to the case and that having investigated the 300,000 pages’ documents over a period of 18 months since the North Korea financial sanctions, it was confirmed that North Korea had participated in illegitimate financial crimes.
Another concern is to what extent the BDA talks will have on the six party talks. Though North Korea may be dissatisfied with the results of the talks, foreign sources predict it unlikely that North Korea will overrule the agreement made at the meeting between the U.S. and North Korea in Berlin.
Foreign Affairs Minister Song Min Soon asserted that though the BDA and six party talks are two different affairs, they nonetheless influence each other. Hence, following the results of the talks, it is possible that North Korea will try present its own agenda at the six party talks.
A source told the Washington Post that North Korea had begun showing a willingness to dismantle its nukes and that many were optimistic for a negotiation at the next talks in Beijing.
The Director of U.S. National Intelligence John Negroponte who will be overseeing Asian issues such as the Korean Peninsula and China said at a Senate hearing on the 30th that the target in resolving North Korea’s nuclear issue was to denuclearize the Korean Peninsula and that all members of the six party talks adhered to this ruling. Also, he blatantly said that he did not want to give mistaken hope, but despite BDA being a difficult issue, there were some grounds to be optimistic.
He displayed two positions on the issue of negotiating the BDA issue saying that some argued the sanctions would destroy the negotiations while others argued it would be a stepping stone but believed the latter would be more probable. Contrary to the past where the U.S. drove a two track policy separating BDA with the six party talks, it seems that a new more flexible approach could be adopted to resolve the North’s nuclear issue.
Nevertheless, the U.S. Department of State did clearly state that the BDA issue would be a long term agenda. In response to whether or not the sanctions on $13mn of frozen funds in North Korea’s BDA accounts would continue, the State Department’s Deputy Spokesman Tom Casey said at a press conference on the 30th that he was unaware such plans were in progress and that the BDA issue was a long-term agenda that needed much additional work, suggesting that the BDA issue would not be easily resolved.
