Positive pronouncements attributed to Pyongyang and Washington have generated optimism just days before the resumption of the Six-Party Talks in Beijing.

The Democratic People's Republic of Korea (DPRK) has told the United States it is willing to shut down a key nuclear reactor and accept UN inspections if certain conditions are met, a news report from Washington said yesterday.

The DPRK said it could close the five-megawatt reactor in its main nuclear complex in Yongbyon and accept inspections by the International Atomic Energy Agency, Republic of Korea (ROK) newspaper Hankook Ilbo reported from the US capital, citing an unidentified State Department official.

The conditions include Pyongyang's long-standing call for Washington to lift financial restrictions for its alleged currency counterfeiting and money laundering and a demand for energy aid, the newspaper said.

Meanwhile, Yonhap news agency reported that the United States has said it is willing to give written security guarantees to the DPRK if it agrees to take initial steps towards denuclearization.

Citing unnamed diplomatic sources, the ROK agency said the United States conveyed its stance to the DPRK last month when diplomats of the two sides met in Beijing, adding that the security guarantees would be signed by the top US leadership, including President George W. Bush.

In Washington, US nuclear envoy Christopher Hill said he did not "want to get into specific things that we'll be proposing," when asked if the DPRK should shut down its nuclear reactor as a token of good faith.

He said Washington will discuss easing restrictions on financial sanctions on the DPRK when the two countries meet in the talks set to resume on Monday.

China's Foreign Ministry yesterday called on all parties to show "cool-headedness and patience" in the upcoming talks.

Source: China Daily/agencies