US reports 'progress' over N Korea

Mr Powell said that while a diplomatic solution remained possible, Washington also sought to refer the issue to the United Nations Security Council.

This could be a possible prelude to the imposition of economic sanctions against Pyongyang.

" We are seeing some progress with respect to the work we are doing with our friends in the region "
Colin Powell, US secretary of state

As diplomatic moves continued, the US Under-Secretary of State, John Bolton, began talks with officials in China, North Korea's closest ally.

The US said on Sunday it was prepared to offer economic co-operation to North Korea if it abandoned its nuclear drive, which Pyongyang has recently intensified, triggering the crisis.

Russia's special envoy to Pyongyang, Deputy Foreign Minister Alexander Losyukov, is reported to have presented the North Korean leader, Kim Jong-il, with a plan to end the stand-off.

The plan suggests North Korea give up its nuclear programme in exchange for security guarantees and economic and humanitarian aid.

UN role

Speaking on the American network CNN, the US Secretary of State said Washington wants the crisis to be dealt with by the UN.

CRISIS CHRONOLOGY

"It is being considered by the IAEA [International Atomic Energy Agency], and I hope that the board of governors will meet in the not-too-distant future in Vienna and from that meeting they can refer the matter to the Security Council," he said.

The IAEA is due to meet shortly to discuss Pyongyang's withdrawal earlier this month from the nuclear Non-proliferation Treaty (NPT).

Mr Powell did not say what kind of action the US wanted the Security Council to take against North Korea, but Pyongyang has warned that the imposition of sanctions would be tantamount to a declaration of war.

At the same time, the secretary of state said that international efforts to find a peaceful solution to the crisis had achieved some results.

"I think we are seeing some progress with respect to the work we are doing with our friends in the [South-East Asian] region," he said.

The secretary of state discussed the issue with several foreign ministers gathered in New York for a UN Security Council meeting on counter-terrorism on Monday and was due to talks with more counterparts later.

China talks

The crisis was likely to feature high on the agenda of talks between John Bolton and the Chinese Vice Foreign Minister, Wang Guangya, on Monday.

Mr Bolton's visit follows a tour of the Far East by his colleague, the US Assistant Secretary of State, James Kelly.

Mr Kelly failed to secure any tangible breakthrough in ending the stand-off.

In the latest sign that the US is prepared to offer incentives to North Korea, the US ambassador to South Korea, Thomas Hubbard, said on Sunday the US could offer more than just food aid to the North.

Last week, President Bush spoke of a "bold initiative" of benefits for North Korea, signalling that the US might be interested in reopening discussions for the first time since the crisis erupted three months ago.

The BBC's Washington correspondent Jon Leyne says the Americans seem to have chosen a carrot and stick strategy: more aid for North Korea if it co-operates, the possibility of sanctions if it does not.

He says that might be the intended message, but it is just as likely the rest of the world will simply read mixed signals.