Stalemate ends N Korea missile talks

Robert Einhorn wants Pyongyang to halt missile exports

The latest round of arms control talks between the US and North Korea has ended in stalemate, but with the two sides agreeing to resume negotiations at a later date.

The North Koreans should not be compensated for agreeing to stop conducting an act which they should not be conducting in the first place

Robert Einhorn

The main sticking point in the discussions was said to be North Korea's proposal that it should get $1bn in compensation for curbing the development and export of its ballistic missiles.

The head of the US delegation, Robert Einhorn, said Washington was firmly against making any such payment.

"The North Koreans should not be compensated for agreeing to stop conducting an act which they should not be conducting in the first place," he told reporters.

However, he added that the talks had been "very useful and worth while" and could provide a framework which might produce results in future talks.

The time and place of any future meeting is yet to be fixed.

Lost revenue

Mr Eihorn was speaking after three days of talks between the two sides in the Malaysian capital Kuala Lumpur.

Washington is suspicious of the North's military ambitions

North Korea said after the meeting that it would continue talks with the US on missile exports on condition that Washington compensate it for lost revenues.

Jang Chang-chon, director-general for US affairs, said: "We clarified that we will continue our discussion on condition that the United States side is willing to make compensation for the political and economic losses to be incurred [if] we suspend our missile exports.

"In our own estimation we propose about $1 billion. Our position is that the United States should make cash compensation."

Mr Jang added that Washington had no right to demand a freeze on their missile capability when the US had thousands of missiles in the area surrounding North Korea.

Chemical weapons

North Korea sparked alarm in parts of Asia and in the US when it test-fired a long range missile over Japanese territory in August 1998.

Washington fears that by 2005 North Korea could have a missile ready to fire chemical or other weapons onto its territory.

Last month leaders of the two Koreas held a historic summit in Pyongyang - a move seen by many as heralding the brightest hopes for peace on the peninsula in more than 50 years.

Pyongyang has also opened official talks with Japan, moved to establish diplomatic relations with many countries in Asia and Europe, and joined a security forum of Southeast Asian nations.