The United States and the Democratic People's Republic of Korea (DPRK) started Tuesday to discuss the financial issue between them, according to an official with the U.S. Embassy in China.

The embassy official confirmed the start of the talks.

Daniel Glaser, U.S. Treasury Department's deputy assistant secretary for terrorist financing and financial crimes, is in Beijing for the meeting.

The DPRK delegation for this issue arrived here on Tuesday, led by O Kwang Chol, president of the DPRK's Foreign Trade Bank.

In September 2005, the DPRK agreed in principle to dismantle its nuclear facilities at the fourth round of six-party talks on the nuclear issue of the Korean Peninsula, but boycotted the meeting following the financial sanction imposed by the United States.

Chinese Foreign Ministry spokesman Qin Gang said at a regular briefing on Tuesday that the U.S.-DPRK sanction issue would be properly solved through the bilateral meeting, and positive achievements would be made.

The financial dispute between Pyongyang and Washington lasting more than a year is regarded as one of the biggest obstacles to the six-party talks on the Korean Peninsula nuclear issue.

The DPRK has demanded that the United States lift its sanction on its accounts in a Macao-based bank, Banco Delta Asia (BDA), since last year. The United States accused the DPRK of using the account in alleged counterfeiting, money laundering, and other illicit activities.

"We have our BDA group, I believe they are going to meet this morning, and I'm sure that DPRK will come today," U.S. Assistant Secretary of State Hill said before leaving his hotel for a second day of negotiations on the Korean Peninsula nuclear issue.

"It's a separate mechanism," he noted.

Hill is heading the U.S. delegation to attend the second phase of the fifth round of six-party talks which began in Beijing on Monday. Intensive bilateral contacts have been held at the ongoing talks.

According to Qin, a total of 12 bilateral meetings were scheduled to be held, and China would have seven bilateral contacts with other five parties separately.

Source: Xinhua