North Korea says nuclear talks with US are illogical

SEOUL, Jan 9 (Reuters) - North Korea sees no point in returning to six-country nuclear talks because of U.S. sanctions, Pyongyang said on Monday, adding Washington would probably veto any deal to end the North's atomic ambitions anyway.

"Under the present situation it is illogical to discuss with the U.S., the assailant, the issue of dismantling the nuclear deterrent built up by the DPRK for self-defense a spokesman for the North Korean Foreign Ministry said in answer to a question put by the official KCNA news agency.

DPRK is short for North Korea's official name, the Democratic People's Republic of Korea. Such statements from its Foreign Ministry are generally considered one of the most authoritative forms of communication with the outside world.

"Even if any agreement is reached between the parties concerned, it is likely to be overturned by a person in high authority of the U.S.," the spokesman said.

Talks among the two Koreas, China, Japan, Russia and the United States, which appeared to make little headway at a fifth round in November, have hit a further snag because of the U.S. crackdown on North Korea's finances.

Pyongyang has previously threatened to boycott the talks until the sanctions are lifted.

The United States, which has clamped down on companies it suspects of aiding North Korea in counterfeiting, money laundering and the drug trade, urged Pyongyang to resume the talks without preconditions as it had agreed at the last round in November.

State Department spokesman Sean McCormack told reporters in Washington the sanctions and the six-party talks were separate matters and said the crackdown on the illicit business, which it said helped fund North Korea's nuclear weapons programs, would go on.

"We are focused on returning to the six-party talks at the earliest possible date. And we hope that the North Korean government shares that view," he said. "They committed to it at the last round and we hope they abide by that commitment."

FEELING THE PRESSURE?

In September 2005, the United States banned American institutions from doing business with a Macau-based bank due to U.S. suspicions it helped North Korea launder money.

A month later, it blacklisted eight North Korean companies for allegedly supporting Pyongyang's nuclear weapons programs.

"North Korea is feeling the pressure (from the crackdown) and believes the United States is out to kill them," said Paik Hak-soon, the head of North Korea studies at Sejong Institute think tank south of Seoul.

Per capita income in North Korea ranks among the lowest in the world and the country has few trading partners.

Paik added North Korea may be using the crackdown as a way to shift the blame to Washington if the six-party talks break down.

North Korea has denied the charges of illegal activity and called for the United States to lift the sanctions. The Foreign Ministry spokesman reiterated the denial on Monday.

"We examined the information the U.S. side provided to us, claiming that it was the motive of its application of sanctions," the spokesman said. "Such things cited by it, however, have never happened in our country."

(Additional reporting by Jack Kim in Seoul and Saul Hudson in Washington)