By Park Song-wu
Staff Reporter


The Ministry of Foreign Affairs and Trade on Wednesday criticized the U.S. Embassy in Seoul for issuing a press release that it said was ``exaggerating’’ what a U.S. delegation recently told South Korean officials about North Korea’s financial illegalities.

It was considered Seoul’s most strongly worded statement targeting its traditional ally to date.

The diplomatic conflict began Tuesday when the embassy issued the press release, saying that the U.S. Treasury Department delegation ``urged’’ South Korea to take similar steps to Washington’s in September by warning its financial sector of illicit financial threats from North Korea.

But the ministry said that what it actually heard from the American officials on Monday were plain ``comments,’’ underlining the necessity of cooperation to strengthen defenses against money laundering and financial crimes.

``The U.S. statement exaggerated some of the contents that were discussed,’’ Choo Kyu-ho, the ministry’s spokesman, said in a statement. ``Even though the delegates mentioned the necessity of cooperation to block terrorist financing and financial crimes, they did not urge us either officially or unofficially to take measures in detail.’’

Choo also said that it was ``inappropriate’’ for the embassy to issue a press release that failed to correctly reflect the results of the South Korea-U.S. consultations. Traditionally the two allies obtained consent of each side before releasing such statements.

But the embassy did not budge at all. ``The U.S. Embassy stands by its press release issued on Jan. 24 and has nothing further to add,’’ Robert W. Ogburn, the embassy spokesman, told The Korea Times.

Asked about the possible diplomatic conflict that could arise from the exchange of harsh statements, Ogburn said, ``It was by no means our intention to do that.’’

The embassy issued the controversial press release a day after the delegation had discussions in Seoul, in which the United States also ``urged’’ South Korea to focus its efforts to financially isolate proliferators of weapons of mass destruction and their support networks.

In September, the United States designated a bank in Macau, which has allegedly provided North Korea illicit financial services for more than 20 years, as a ``primary money laundering concern.’’ The bank consequently halted all financial services for North Korea.

North Korea reiterated its demand on Wednesday that the United States lift ``financial sanctions’’ if it wants Pyongyang to return to the six-party denuclearization talks, which have been in limbo since November.

Meanwhile, Jack Crouch, deputy national security adviser to U.S. President George W. Bush, told a South Korean lawmaker in Seoul that Washington is preparing to come back to the disarmament talks with ``fresh ideas.’’

But he underlined that Washington’s actions taken against Banco Delta Asia, the bank in Macau, are unrelated to the North Korean nuclear standoff.

im@koreatimes.co.kr