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Wen, Kim set the stage

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Premier Wen Jiabao and North Korea's leader, Kim Jong-il, had tangible rewards to offer one another in their talks in Pyongyang. Kim gave Wen what China wanted - North Korean assent to return to 'multilateral' negotiations on its nuclear programme. Now China can tell the US it has brought about a breakthrough in dealings with North Korea and go on playing the role of host and broker - and hope the Americans won't be so demanding on a quite different subject: China's overwhelming trade balance with the United States.

For North Korea, the payoff was even better - deals on aid, trade, tourism and software, just for starters, all badly needed to slow, if not stop, the free-fall of the North's ever-deteriorating economy. These deals won't just lead to a jump in cross-border trade, a rising flood of Chinese tourists or better electronics. They also will undercut UN sanctions, imposed after North Korea's second underground nuclear test on May 25, which China is committed to enforcing.

The Chinese can say they're not importing banned North Korean arms or missiles, but Beijing has eyes for other vital North Korean exports, notably raw materials ranging from gold to uranium. China might also export products that North Korea needs, including spare parts that can serve civilian and military purposes. North Korea's potential as a source of mineral riches is vast, and the Chinese have been gaining control of its mines for years through joint ownership and partnerships.

Thus, Wen's visit confirms relationships that guarantee China's monopoly position among powers interested in North Korea's economic potential. More than ever, North Korea is sure to remain closed to all except marginal investors. Japan, the country that historically exploited North Korea more than any other, has no chance, given the hostile relationship that still exists over the North's kidnapping of Japanese citizens some 30 years ago.

The economic theme of Wen's visit, in talks conducted well in advance by Chinese and North Korean trade officials, far outweighs any conceivable chance of doing anything about North Korea's nuclear weapons. The Chinese are sophisticated enough to know that North Korea is not going to give up its nuclear programme in either bilateral or multilateral talks.

The likelihood of Wen's mission having accomplished anything other than raising false hopes was clear from Kim's remarks. First, he has to await 'the outcome' of bilateral talks with the US. He's well aware, of course, of the US pledge to talk to the North only about holding six-party talks - not about all the other issues that North Korea wants on the table.

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