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Easing of economic sanctions suggested

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The US, Japan and South Korea have decided to take a more conciliatory approach towards North Korea, hinting at a reduction of economic sanctions in return for a halt to long-range missile tests.

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'The people of North Korea need food and opportunities,' US President Bill Clinton said in a speech to business leaders yesterday ahead of tripartite talks with Japanese Prime Minister Keizo Obuchi and South Korean President Kim Dae-jung on the sidelines of an Apec leaders' summit in Auckland.

After their meeting, the three leaders issued a joint statement pledging they would work together to improve relations with North Korea provided it 'takes steps to reduce tensions and establish lasting peace on the Korean peninsula and beyond'.

White House National Security Adviser Sandy Berger said: 'The three leaders indicated that if there was a manifestation by the North Koreans that they would not proceed with testing, that some form of easing the [existing] sanctions might be appropriate.' Mr Berger said the three countries were now looking for a clear indication from North Korea that it would not proceed with a second test.

The tone of their joint statement appeared softer than some recent remarks, when the North was being threatened with grave consequences and stiffer penalties.

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Japan has long warned that another missile launch might make it tough for Tokyo to proceed with a planned US$1 billion (HK$7.7 billion) contribution to an international consortium building civilian nuclear energy reactors in North Korea.

Mr Obuchi suggested partially relaxing sanctions against Pyongyang if it froze missile testing, but added these actions should be reversed if any missile was launched.

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