U.S. and North Korean finance officials have begun talks in Beijing aimed at resolving a key dispute over U.S. financial restrictions on North Korea-linked companies.
The meeting is taking place on the sidelines of six-party talks on North Korea's nuclear weapons program that resumed Monday in the Chinese capital after a 13-month freeze.
The financial talks Tuesday are led by U.S. Deputy Assistant Treasury Secretary Daniel Glaser and the head of North Korea's foreign banking department - the Foreign Trade Bank of Korea - O Kwang Choi.
North Korea is demanding that Washington end the financial restrictions as a condition for nuclear disarmament. Washington imposed the sanctions last year on companies it accuses of counterfeiting and money laundering on behalf of Pyongyang.
The restrictions prompted North Korea to walk out of the six-party nuclear talks, but Pyongyang ended the boycott after Washington agreed to discuss the sanctions in parallel with the nuclear issue.
The U.S. sanctions resulted in a freeze on $24 million of North Korean funds held at Macau's Banco Delta Asia, suspected by Washington of illicit dealings with Pyongyang.
The crackdown also has led to other financial institutions cutting their business with North Korea.
Nuclear negotiators from the six parties at the talks are to hold one-on-one meetings today at a Chinese state guesthouse.
U.S. envoy Christopher Hill said Tuesday not much progress was achieved during the first day of discussions. But he added it is good that the meeting is taking place.
North Korean envoy Kim Kye Gwan presented a list of demands Monday in exchange for disarmament. He said Pyongyang wants to be provided with a civilian nuclear reactor and wants all U.N. and U.S. financial sanctions to be scrapped.
If the demands are not met, Kim said North Korea will strengthen its nuclear deterrent.
Some information for this report provided by AP, AFP and Reuters.
