Remarks at Ministry of Foreign Affairs and Trade

ASSISTANT SECRETARY HILL: Well, first of all, let me just say that I had a very good discussion with my friend and counterpart here, Ambassador Chun Young-woo. We discussed the Six-Party process and especially the need to get on with the 60 day requirements. I guess right in the middle of our discussion we learned that the U.S. Treasury Department had issued a statement based on consultations with the Macau authorities to the effect that the Macau authorities will be releasing all the accounts to the account holders. This is obviously a very big step when it comes. We have to learn from the Macau authorities precisely when. We understand it will be very, very soon. It’s obviously a big step that I think should clear the way for the DPRK to step up the process of dealing with its obligations in the 60 day period.

QUESTION: Could you shed some light on where the funds will be going precisely?

ASSISTANT SECRETARY HILL: Do you want to say a few comments?

AMBASSADOR CHUN: (Remarks in Korean)

QUESTION: I have a question to Ambassador Hill. Does that mean that North Korea only has to do some paperwork to get the money back?

ASSISTANT SECRETARY HILL: As I understand it, the Macau authorities will be saying that account holders can have access to their funds based on proper identification and other procedures. So you’d have to check with the Macau authorities on what the procedures are for withdrawing funds.

Now we have had over the course of not only the last few weeks, but actually the last few months, a number of discussions with the DPRK about this matter. The DPRK has over the course of these discussions come to understand our concerns about some of these funds. The DPRK has undertaken to ensure that the funds will be used properly. So this is certainly something that’s important to us, and I think we can go forward on this basis.

I think we’ve kind of reached a very important day today with the imminent release of these funds. Now we need to move on from this banking issue to the real purpose of our February Agreement, which was to get on with denuclearization.

QUESTION: Does this mean North Korea will withdraw the money in cash? Have they agreed to that?

ASSISTANT SECRETARY HILL: They need to work things out with their bank. All we have said is we have – The United States supports any decision by Macau to release the funds to authorized account holders. So we support that, and with that we are stepping out of this process. Now I think it will be up to the DPRK to work this out between them and their banker.

QUESTION: Does this mean that the Six-Party Talks will resume today or tomorrow?

ASSISTANT SECRETARY HILL: We’re prepared to resume today. So we hope that this can clear the way for the Six-Party Talks to get going. We have to see how that works in the next day. But certainly I can speak for the U.S. delegation, and I’m sure Ambassador Chun can speak for the ROK delegation. We’re ready.

AMBASSADOR CHUN: (Remarks in Korean)

QUESTION: Mr. Secretary, the U.S. Treasury Department just released a statement in Washington saying that what you said. This is very early time in Washington D.C. right now. Was this designed to coincide with your visit here?

ASSISTANT SECRETARY HILL: It was not designed to coincide with my visit. It was I think rather worked out with the expected announcements in Macau and the desire that we first make a statement before there would be any announcement in Macau. But it’s not about my visit here.

QUESTION: Mr. Ambassador, correct me if I’m wrong. Are we still in a situation that we have given North Korea a couple of options how to withdraw the money and be waiting for an answer from Pyongyang how to get --

ASSISTANT SECRETARY HILL: I think we have made a decision to support the release of all the accounts to their lawful account holders according to the proper laws and regulations. So that is a decision we’ve made. We are not providing guidance to anybody on how this should be done. This is now up to the banking regulators and banking regulations to determine. It’s not for us to determine. We have made an important decision to support the release of all funds – lawful release of all funds. We hope that this will, in turn, trigger the North Koreans to come back and begin to work on their obligations in the February Statement.

As many of you have pointed out, the 60 day clock is fast approaching. So we would really like to now pick up the pace and get going. Obviously the North Koreans will need to study these developments. They’ll need to be in touch with their bankers and determine where they stand and what the status of their accounts is. But we would hope that they would also be in touch with us and be in touch with the IEA and get on with the task of – the urgent task – of living up to the February agreement.

QUESTION: In light of the announcement, would you be seeking to meet with Vice Minister Kim Gye-gwan in Beijing this week?

ASSISTANT SECRETARY HILL: Well, I would certainly be prepared to do so if it is convenient to his travel schedule.

QUESTION: Have you been in touch with him?

ASSISTANT SECRETARY HILL: Indirectly. I’ve been in touch with him to make sure that he knows my schedule here and the fact that I’m prepared to meet him when he is prepared.

QUESTION: You haven’t heard from him about this?

ASSISTANT SECRETARY HILL: Not yet. But I think these developments with Banco Delta Asia could have some bearing on it.

QUESTION: Ambassador Hill, there’s one thing I don’t understand.

ASSISTANT SECRETARY HILL: There are many things that I don’t understand. (Laughter) So you’re way ahead of me.

QUESTION: Does this mean that the Treasury is going to rescind the original final ruling about Banco Delta Asia?

ASSISTANT SECRETARY HILL: No, no. The final ruling was not about the account holders. The final ruling is based on concerns about whether U.S. banks should do business with the bank under its current long-term management – under its current ownership. So that’s what the final rule deals with. It is not about the actual account holders. The decision to administratively hold the accounts was something the Macau authorities took. It was not a part of our decision making.

QUESTION: So there’s no chance that the Treasury will rescind that measure?

ASSISTANT SECRETARY HILL: You’ll have to talk to the Treasury. I think it hinges on the question of the long-term management and ownership of the bank. But I’m not in a position to talk to you about regulatory matters of that kind.

QUESTION: Is it safe to say that any international bank is trying to deal the North Korean funds from Macau bank? Receive no negative credit ratings?

ASSISTANT SECRETARY HILL: Again, I’m not a banker. I’m not in a position to talk to you about credit ratings and other things. But I will say that as long as North Korea engages in these weapons programs, I think they are going to find that they will have difficulties dealing with the international finance system. So the sooner they get on with the task of denuclearization, the easier it will be for them to interact with the international financial system. So, if you will excuse me.

QUESTION: So is this decision communicated to North Korea? That’s the question.

ASSISTANT SECRETARY HILL: This decision -- First of all, all we have is this statement from the Treasury. There needs to be some statement from Macau. I’m sure there will be some communication with the DPRK, but I’m not aware of any as of this moment. But we’re dealing with real time here because it was only a few minutes ago that the statement from Washington actually came out. As you see, people in Washington work very late hours.

AMBASSADOR CHUN: (Remarks in Korean)

QUESTION: Ambassador Hill, aren’t you going to be attacked in Washington for bending the rules to live up to North Korea’s expectations? You’re going out of your way to satisfy their needs. You’re bending the rules. Are you going to respond to the criticism back in Washington?

ASSISTANT SECRETARY HILL: You mean where the press statement was made?

QUESTION: Everything that you’ve done for the BDA for the North Koreans to bring back their funds from BDA? All this process has been about bending rules.

ASSISTANT SECRETARY HILL: Is that a question or a comment? (laughter) A speech, an editorial? (laughter)

QUESTION: I would like your response.

ASSISTANT SECRETARY HILL: Look, I think the lesson of BDA is that -- this has gone on for some months, actually a year and a half -- I think the lesson of BDA is that the international community, international financial community, will certainly scrutinize the users of that community, will certainly be aware of countries that are using the international financial system to fund or gain the technology for weapons programs, banned weapons programs, and other activity that simply can’t be tolerated.

So I think the lesson for the DPRK is if they get on with the task of denuclearizing, they will find they will have better access. So I think it’s been a very strong lesson. I think it’s been a very difficult time for the account holders in BDA for a long time now. So I hope from this lesson people will learn something.

QUESTION: Mr. Secretary, do you think that Victor Cha, who will arrive in Seoul tomorrow, will have the response?

ASSISTANT SECRETARY HILL: You’ll have to ask him. That would be a great idea. But I don’t know if he will have the response or not. I will suggest that he hold a press conference and answer that question, because I really don’t know. I know that he’s had some discussions up there. So maybe he will get a sense of what the reaction is. Although I want to emphasize, all we have so far is a statement from our Treasury Department welcoming this expected news. But we don’t have the news yet from Macau. We don’t have any details except what the Treasury has told you. So I think probably there’ll be some need for additional information.

Okay, thank you.

Q: Ambassador, are you meeting with Wu Dawei of Chinese delegation tonight?

ASSISTANT SECRETARY HILL: Am I meeting with Wu Dawei? I understand he’s in town, and maybe there’s a chance of getting together.

Okay.