http://www.boston.com/dailynews/130/world/U_S_official_says_North_Korea_:.shtml

U.S. official says North Korea desperate for money

By Christopher Torchia, Associated Press, 5/10/2001 05:55

SEOUL, South Korea (AP) North Korea's willingness to sell missile technology to any nation that wants it shows how desperate the communist country is for funds, a high-ranking U.S. official said Thursday.

Last week, North Korea leader Kim Jong Il told a European delegation that he would maintain a missile moratorium until 2003 but defended his country's sales of missile technology to Iran, Syria and other countries.

''Regarding the continued sales, it seems to suggest to us the desperate financial straits that (North Korea) is in,'' U.S. Deputy Secretary of State Richard Armitage said before a meeting with Unification Minister Lim Dong-won.

After his inauguration in January, President Bush suspended talks with North Korea on curbing its missile program, pending a review of U.S. policy. The impoverished North depends on outside aid to feed its 22 million people, and views missile exports as a vital source of revenue.

After meeting President Kim Dae-jung on Wednesday, Armitage raised hopes that inter-Korean reconciliation will start again by saying Washington expects to resume talks with North Korea ''in the near future.''

U.S.-North Korean friction prompted Pyongyang to cut off most government contacts with Seoul, jeopardizing a reconciliation process that began with an unprecedented inter-Korean summit a year ago.

South Korean officials were relieved that Washington's review of its policy toward North Korea was drawing to an end, and thanked Armitage for explaining Washington's controversial plans for a missile defense system.

The Seoul government fears the system, which Washington says would be designed to thwart attacks by nations such as North Korea and Iraq, could disrupt its efforts to improve ties with Pyongyang.

About two dozen anti-U.S. activists held protests at the hotel where Armitage was staying, the U.S. Embassy and the Defense Ministry. Police detained a few who hurled eggs at the U.S. envoy's car.

Armitage planned to fly to India later Thursday.

-- Anonymous, May 10, 2001