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DATE=7/6/98 TYPE=CORRESPONDENT REPORT NUMBER=2-235055 TITLE=U-S/NORTH KOREA NUCLEAR (L ONLY) BYLINE=GIL BUTLER DATELINE=STATE DEPARTMENT CONTENT= VOICED AT: INTRO: THE STATE DEPARTMENT SAYS NORTH KOREA HAS MAINTAINED THE FREEZE OF ITS NUCLEAR PROGRAM, DESPITE COMPLAINTS FROM PYONGYANG THAT PROMISED FUEL OIL HAS NOT BEEN DELIVERED. CORRESPONDENT GIL BUTLER HAS MORE FROM THE STATE DEPARTMENT. TEXT: A REPORT IN MONDAY'S "WASHINGTON POST" SAYS THE 1994 AGREEMENT THAT HALTED NORTH KOREA'S NUCLEAR WEAPONS PROGRAM IS UNDER SEVERE STRAIN BECAUSE NOT ENOUGH MONEY HAS BEEN FOUND TO PAY FOR PROMISED CRUDE OIL. UNDER THE AGREEMENT AN INTERNATIONAL CONSORTIUM CALLED 'KEDO', THE KOREAN PENINSULA ENERGY DEVELOPMENT ORGANIZATION, WAS SET UP TO PROVIDE ONE-HALF-MILLION METRIC TONS OF FUEL OIL EACH YEAR UNTIL SAFER REPLACEMENT NUCLEAR REACTORS COME ON LINE. SO FAR THIS YEAR, KEDO HAS SUPPLIED NORTH KOREA WITH 152-THOUSAND-TONS AND ANOTHER 66-THOUSAND-TONS OF OIL IS TO BE DELIVERED THIS MONTH. THAT STILL LEAVES MORE THAN 280-THOUSAND-TONS TO MEET THE AGREEMENT. AT THE STATE DEPARTMENT, SPOKESMAN JAMES RUBIN SAID THE ADMINISTRATION IS CONSULTING WITH CONGRESS ABOUT ADDITIONAL FUNDS FOR KEDO, BUT HE SAID OTHER COUNTRIES SHOULD ALSO HELP. /// RUBIN ACT /// WE RECOGNIZE THE IMPORTANCE OF THIS AGREEMENT. IT IS AN EXTREMELY IMPORTANT ONE. WE ARE CONSULTING WITH CONGRESS. THE PRESIDENT WAS PREPARED TO INDICATE HIS WILLINGNESS TO USE UNUSUAL AUTHORITIES (TO GET THE FUNDS), AND WE ARE GOING TO CONTINUE TO CONSULT WITH CONGRESS TO MAKE AVAILABLE WHAT WE NEED. BUT WE WOULD BE LOOKING FOR SUPPORT FROM ALL THE COUNTRIES IN THE WORLD THAT CARE ABOUT NON-PROLIFERATION; THAT DON'T WANT TO SEE US GO BACK TO THE SITUATION IN 1994 WHERE WE HAD THE THREAT OF A NUCLEAR-ARMED NORTH KOREA POSING A DANGER TO THE WORLD. /// END ACT /// THE NEWSPAPER REPORT SAID NORTH KOREA HAS RECENTLY BEGUN MAINTENANCE WORK ON ONE OF ITS CLOSED NUCLEAR FACILITIES. BUT MR. RUBIN SAID NORTH KOREA IS BELIEVED TO BE IN FULL COMPLIANCE WITH ITS OBLIGATION TO FREEZE ITS NUCLEAR FACILITIES. (SIGNED) NEB/MGB/LTD/RAE 06-Jul-98 2:51 PM EDT (1851 UTC) NNNN Source: Voice of America .