UPDATE 1-US welcomes China's 'affirmative steps' on N Korea http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-07-26T141912Z_01_N26323282_RTRIDST_0_KOREA-NORTH-CHINA-USA-UPDATE-1.XML
Wed Jul 26, 2006
(Adds quotes, details)
WASHINGTON, July 26 (Reuters) - The United States is encouraged by China's "affirmative steps" in freezing some North-Korea related assets, White House spokesman Tony Snow said on Wednesday.
A U.S. official told Reuters the action was taken by the state-owned Bank of China and pre-dated North Korea's July 4 missile tests.
"We're encouraged by the fact that the Chinese government has taken affirmative steps," Snow told reporters.
The United States has tried to nudge China -- Pyongyang's chief patron -- into increasing pressure on the North to return to six-country negotiations on its nuclear programs.
News of the Chinese move was first reported by South Korea's Yonhap news agency, which quoted a South Korean legislator as saying suspicions Pyongyang printed fake Chinese currency prompted the Bank of China to freeze all of its North Korean accounts.
"As you know, one of the issues that led North Korea to walk away from the six-party talks was a crackdown on counterfeiting," Snow said. "We think it's a dangerous thing to be counterfeiting currency and using that as a way to engage in drug trade or arms trade."
Snow said both China and South Korea were starting "to assert pressure on the government in Pyongyang because ... they've got a real strong vested interest in making sure the government of North Korea returns to the table so that they can start dealing with outstanding nuclear issues."
The United States has already instituted financial restrictions against North Korea aimed at halting what Washington says are illicit actions by the Pyongyang government or North Korean entities.
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