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DATE=7/14/98 TYPE=CORRESPONDENT REPORT NUMBER=2-235447 TITLE=SENATE-KOREA NUKE (L-ONLY) BYLINE=DAVID SWAN DATELINE=CAPITOL HILL CONTENT= VOICED AT: INTRO: THE CLINTON ADMINISTRATION IS URGING CONGRESS TO HELP SUSTAIN THE AGREEMENT THAT HALTED NORTH KOREA'S SUSPECTED NUCLEAR WEAPONS PROGRAM. OFFICIALS SAY THE FOUR-YEAR-OLD PACT IS UNDER FINANCIAL STRESS BUT DENY CHARGES OF RENEGING. V-O-A'S DAVID SWAN HAS DETAILS. TEXT: THE DEAL CALLS ON NORTH KOREA TO SHUT DOWN A NUCLEAR PLANT THAT COULD YIELD PLUTONIUM FOR BOMBS AND IN RETURN TO GET MODERN REACTORS THROUGH A U-S LED CONSORTIUM CALLED KEDO. THE GROUP IS ALSO PROVIDING THE NATION WITH FUEL OIL UNTIL THE NEW PLANTS ARE BUILT. NORTH KOREA RECENTLY ACCUSED THE UNITED STATES OF FAILING TO MEET THIS COMMITMENT. AT A SENATE HEARING (TUESDAY) U-S AND KEDO OFFICIALS REJECTED THE ALLEGATIONS. THE STATE DEPARTMENT COORDINATOR FOR THE PROGRAM, RUST DEMING, SPOKE OF FRUSTRATION AND DISAPPOINTMENT IN DEALING WITH PYONGYANG. STILL, MR. DEMING SAYS KEEPING KEDO HEALTHY IS IMPORTANT FOR THE UNITED STATES AND THE KOREAN PENINSULA. /// DEMING ACT /// THE NORTH KOREAN FACILITIES ARE FROZEN. THEY'RE NOT AT THIS STAGE DISMANTLED. AND SO, ANYTHING THAT IS FROZEN IS CAPABLE OF BEING UNFROZEN. AND I'M AFRAID THAT UNDER THE WORST-CASE SCENARIOS WE COULD FIND OURSELVES BACK IN THE SITUATION WE WERE FACING IN 1994 WHEN THIS CRISIS REACHED ITS HEAD. /// END ACT /// HOWEVER, THE OIL DELIVERIES HAVE LAGGED DUE TO A SHORTAGE OF MONEY. MR. DEMING CONCEDES WASHINGTON HAS FAILED TO PERSUADE OTHER COUNTRIES TO SHARE THE COST OF THE OIL. IN RESPONSE TO THE DELAYS, NORTH KOREA HAS RECENTLY PERFORMED MAINTENANCE ON ITS OLD NUCLEAR PLANT AND THREATENS TO TURN ITS REMAINING FUEL RODS INTO PLUTONIUM. DEMOCRATIC SENATOR DIANNE FEINSTEIN VOICED DISMAY OVER ANOTHER ISSUE - THE NORTH KOREANS HAVE NOT KEPT THEIR PLEDGE TO RESUME DIALOGUE WITH THE SOUTH. /// FEINSTEIN ACT /// I MUST TELL YOU I REGARD THIS WITH SOME SENSE OF DISMAY AND SOME FEELING THAT THIS THING IS FALLING APART. /// END ACT /// THE REPUBLICAN-LED HOUSE AND SENATE HAVE BEEN RELUCTANT TO PROVIDE ALL THE MONEY THE WHITE HOUSE SOUGHT FOR THE PROGRAM IN THE LAST FEW YEARS. HOWEVER, THE ADMINISTRATION SAYS IT REMAINS COMMITTED TO KEEP THE OIL FLOWING AND THE BROADER NUCLEAR AGREEMENT INTACT. (SIGNED) NEB/DS/WDC/PT 14-Jul-98 3:38 PM EDT (1938 UTC) NNNN Source: Voice of America .