Remarks After Discussions on the Six-Party Process

QUESTION: (Not recorded)

ASSISTANT SECRETARY HILL: No, this was a good opportunity for me to meet Vice Minister Wu Dawei and discuss the Six-Party Process. He’s obviously here on the bilateral visit of his premier. So we discussed first of all BDA and our understanding of what the Macau authorities have done -- which is that bank account holders in BDA of accounts that they have not had access to, they will now have access to those accounts. So I explained to him what I know about the situation and why the Treasury Department issued this statement in anticipation of this decision.

We also discussed the possibility of getting going with the Six-Party Process. We need to hear from the DPRK directly. We haven’t done that yet. But we’re hoping that we will have the opportunity to hear from them directly and get going on denuclearization. We think this is a major step – a welcome step – that has been taken, and we would like now to get onto the real event, which is fulfillment of the February Agreement.

QUESTION: Do you know what North Korea asked for (inaudible) account?

ASSISTANT SECRETARY HILL: Well, I think originally this is precisely what they wanted, which was to have the accounts in BDA made available to the authorized account holders. I think, in so doing, the Macau authorities -- they have taken this step. We welcome this step. We think it’s a very fair step, and we think it’s now time to get back onto denuclearization.

QUESTION: So there’s been no response yet from the North Koreans?

ASSISTANT SECRETARY HILL: Well, no, but this only happened within the last few hours. So I think they’re probably studying the statements and studying what precisely this means. Our understanding, based on what we’ve seen from Macau authorities, is that bank account holders will have access now to their funds upon -- when they go through the normal bank procedures. From our point of view, this is a major and a welcome step by Macau authorities.

QUESTION: Mr. Assistant Secretary, what was Mr. Wu’s reaction? Was he optimistic that the Six-Party Talks were --

ASSISTANT SECRETARY HILL: I think the fair comment on my part would be that you should ask him. But certainly I think it was a very positive meeting that Mr. Wu and I had. But for his sense of optimism or reactions, etc., I think you need to ask him.

QUESTION: How about your optimism? When do you see it kicking off again?

ASSISTANT SECRETARY HILL: Well, I do believe this is a major step by Macau authorities – very welcome. We’re very pleased with it. I think it should mean that we will be back in business in terms of denuclearization. But, of courseM we have to hear what the DPRK reaction is. They’re obviously going to be studying it.

QUESTION: So do you think later this month or May? Because later this month, there’s only a couple more days until the April 17^th deadline.

ASSISTANT SECRETARY HILL: We’d like this to continue to be a very busy week. It certainly has been up to now. We think there’s some things that can be done even this week.

QUESTION: And if they don’t meet the deadline?

ASSISTANT SECRETARY HILL: Oh, that’s a hypothetical question. I’m not going to answer that.

QUESTION: So you’re putting more weight on --

ASSISTANT SECRETARY HILL: It’s hypothetical and pessimistic at the same time.

QUESTION: So you think they will meet the deadline?

ASSISTANT SECRETARY HILL: Let’s see how we do. Let’s see how we do. The deadline is obviously fast approaching, but I think we can get going on this issue quickly.

QUESTION: Are the three countries working on a date though? You know, on a day --

ASSISTANT SECRETARY HILL: On a date for?

QUESTION: Are you and North Korea --

ASSISTANT SECRETARY HILL: You mean just working on a date? Well, I think we certainly compared schedules just now. Mr. Wu Dawei is heading off to Japan tomorrow and back in Beijing later in the week. So we were looking into the possibility when we might all get together. Look, with the first step, one step at a time. We’ve just had a statement from the Macau authorities which in effect makes the bank accounts that have been essentially blocked – although that’s not the correct technical term for it – but essentially they’ve been blocked for some 18 months. Now those accounts, they will have access to those accounts. It’s a very big step. So we’ve reacted positively to it, and I hope the DPRK will also react positively to it. I hope we can move ahead on this.

QUESTION: Is this the fast way you have been seeking for months?

ASSISTANT SECRETARY HILL: Actually, we’ve tried -- I’d rather not get into a whole history of this event yet, because we’re not done. We need to hear from the DPRK. But this was certainly one of the options under consideration. I think it became the option that was most workable and most workable in the timeframe that we really needed it to work.

Okay, I really need to get some sleep. Otherwise these are going to be five-party talks. I think I’ve got a breakfast at some crazy hour, at 7 o’clock in the morning. I think I have meetings in the morning with ROK officials. I’m seeing Victor Cha at some point when he comes through. I’ll see Governor Richardson. Probably there are a lot of other meetings – all of which I need some sleep.

QUESTION: Is the U.S. Government going to keep the designation of BDA as a primary money launderer?

ASSISTANT SECRETARY HILL: I think the U.S. Government has made very clear that we’ll continue to review the situation. But that is a matter between the U.S. Government exercising its obligations toward U.S. financial institutions. So it’s between the U.S. Government and the actual bank. It’s not between the U.S. and the North Koreans.

QUESTION: When you meet Mr. Kim Gye-gwan in Beijing, will you be discussing a list of nuclear facilities?

ASSISTANT SECRETARY HILL: Oh, we have lots of things to talk about, so I hope we’ll be able to have an early meeting and get going on that. Nuclear facilities will probably be one of the topics absolutely.

Okay, I’ll see you all later. Bye-bye.