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DATE=11/12/98 TYPE=CORRESPONDENT REPORT NUMBER=2-241554 TITLE=U-S / NORTH KOREA (L-ONLY) BYLINE=JOHN LARKIN DATELINE=SEOUL CONTENT= VOICED AT: INTRO: NORTH KOREA HAS AGAIN DEMANDED CASH COMPENSATION FROM THE UNITED STATES, FOR THE RIGHT TO INSPECT A SUSPECTED NUCLEAR SITE. JOHN LARKIN REPORTS FROM SEOUL, THE DEMAND COMES AS NEW CRACKS APPEAR IN A 1994 DEAL FREEZING NORTH KOREA S NUCLEAR PROGRAM. TEXT: THE RENEWAL OF NORTH KOREA'S DEMAND FOLLOWS WARNINGS BY THE U-S STATE DEPARTMENT THAT THE DEAL COULD BE JETTISONED. UNDER THE FOUR POINT SIX BILLION DOLLAR AGREEMENT, THE NORTH WILL BE PROVIDED WITH TWO MODERN NUCLEAR REACTORS, IF IT FREEZES CONSTRUCTION OF NUCLEAR FACILITIES THAT HAVE WEAPONS-MAKING POTENTIAL. THE UNITED STATES IS CONCERNED THAT NORTH KOREA IS BUILDING AN UNDERGROUND NUCLEAR FACILITY IN VIOLATION OF THE PACT. PHOTOGRAPHS TAKEN BY A U-S SPY SATELLITE SHOW THOUSANDS OF WORKERS TUNNELLING INTO THE GROUND, 40 KILOMETERS FROM YONGBYON, THE SITE PYONGYANG AGREED TO MOTHBALL UNDER THE 1994 AGREEMENT. THE NORTH SAYS THE CONSTRUCTION HAS A CIVILIAN PURPOSE, BUT U-S INTELLIGENCE AGENCIES BELIEVE IT COULD BE USED TO STORE BANNED NUCLEAR EQUIPMENT. THE UNITED STATES HAS THREATENED TO WITHDRAW FROM THE DEAL UNLESS PYONGYANG ALLOWS AN INSPECTION TEAM TO ENTER THE SITE. THE ISSUE WILL BE CENTRAL TO TALKS THIS WEEK IN NORTH KOREA BETWEEN A U-S DELEGATION AND COMMUNIST OFFICIALS. ON THURSDAY THE NORTH REPEATED ITS DEMAND, THROUGH ITS OFFICIAL KOREAN CENTRAL NEWS AGENCY, FOR CASH REPARATIONS AFTER AN INSPECTION IT SAID WOULD PROVE THE SITE IS CIVILIAN RATHER THAN MILITARY. THE K-C-N-A REPORT SAID THE MONEY WOULD BE ADEQUATE COMPENSATION FOR WASHINGTON'S ACCUSATIONS, WHICH IT DESCRIBED AS SLANDEROUS. THE NUCLEAR DEAL HAS BEEN PLAGUED WITH TENSION ARISING FROM WASHINGTON'S SUSPICIONS THAT PYONGYANG WANTS TO RESUME ITS SUSPECT NUCLEAR PROGRAM. (SIGNED) NEB/JL/FC/PLM 12-Nov-98 4:14 AM EST (0914 UTC) NNNN Source: Voice of America .