Tuesday, January 3 2006 10:16 Hrs (IST) - World Time -

Seoul (South Korea): North Korea said today (Jan 03, 2006) it cannot return to international nuclear disarmament talks unless the United States lifts sanctions imposed for its alleged currency counterfeiting and other illegal activities.

"While under US sanctions, it's impossible to sit face-to-face and discuss abandoning our nuclear deterrent with a counterpart who seeks to isolate and stifle us," said the Rodong Sinmun, the North's ruling Workers Party newspaper, in a Korean-language commentary carried by the official Korean Central News Agency.

"The US sanctions are obviously the fundamental element that disrupts the six-party talks," the newspaper said.

The commentary was the first North Korean statement on the nuclear issue this year. On New Year's Day, the communist state issued a joint editorial by major newspapers, but didn't mention the dispute.

In September, Washington placed sanctions on a Macau-based bank after it allegedly helped the North distribute counterfeit currency and engage in other illicit activities.

The next month, the US sanctioned eight North Korean companies it claimed were fronts for proliferating weapons of mass destruction.

North Korea reacted swiftly and angrily, calling the US allegations a 'sheer lie' and threatening to boycott the nuclear talks with the Washington, South Korea, China, Japan and Russia unless the sanctions were lifted.