Talks on denuclearizing the Korean Peninsula stalled unexpectedly yesterday as Pyongyang refused to take part until the $25 million in frozen funds is returned.

An afternoon meeting of chief delegates from the six parties at the talks was canceled because the Democratic People's Republic of Korea (DPRK) was reluctant to attend, said top Japanese negotiator Kenichiro Sasae.

"There was no progress at all today," he said.

The sixth round of the Six-Party Talks began on Monday in Beijing on an optimistic note following an announcement by the United States that it had reached a deal with the DPRK to settle the financial sanctions dispute, a key sticking point in the nuclear disarmament process.

US Deputy Assistant Treasury Secretary Daniel Glaser said that the DPRK agreed to the transfer of the frozen funds from Macao's Banco Delta Asia (BDA) into a Pyongyang account at Bank of China in Beijing with the money to be used for the betterment of its people.

The Monetary Authority of Macao responded in a statement the same day, saying the "process will be in accordance with the instructions of the account holders".

Foreign Ministry spokesman Liu Jianchao said China has urged the United States to negotiate with the Macao government on the issue to maintain financial and social stability in the special administrative region.

Yesterday witnessed intensive bilateral meetings and China alone held meetings with all the other five sides; and Pyongyang and Washington also engaged in talks, said Qin Gang, the spokesman for the Chinese delegation to the Six-Party Talks.

Analysts noted that Pyongyang's decision not to join discussions yesterday shows there is a profound lack of trust and confidence between the United States and the DPRK.

Source: China Daily