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DATE=3/31/99 TYPE=CORRESPONDENT REPORT NUMBER=2-247448 TITLE=KOREA - U-S / MISSILES (L-ONLY) BYLINE=JOHN LARKIN DATELINE=SEOUL CONTENT= VOICED AT: INTRO: UNITED STATES OFFICIALS RETURNED TO SEOUL WEDNESDAY FROM TWO DAYS OF MISSILE TALKS IN PYONGYANG WITH NORTH KOREAN OFFICIALS. AS JOHN LARKIN REPORTS FROM THE SOUTH KOREAN CAPITAL, U-S OFFICIALS WARNED PYONGYANG OF SERIOUS CONSEQUENCES IF IT DOES NOT CURB ITS MISSILE PROGRAM. TEXT: ROBERT EINHORN -- THE DEPUTY ASSISTANT SECRETARY OF STATE FOR NON-PROLIFERATION -- TOLD REPORTERS IN SEOUL HE REITERATED WASHINGTON'S OFFER OF CLOSER TIES WITH THE NORTH, IF IT STOPS DEVELOPING, TESTING AND EXPORTING MISSILE TECHNOLOGY. MR. EINHORN SAYS THE DISCUSSIONS -- THE FOURTH ROUND OF MISSILE TALKS SINCE 1996 -- HAD BEEN FRANK BUT DID NOT PRODUCE ANY BREAKTHROUGHS. HE SAYS THE UNITED STATES IS NOT PREPARED TO MAKE CONCESSIONS BEFORE PYONGYANG PROVIDES EVIDENCE IT HAS CURTAILED ITS DEVELOPMENT OF MISSILES. NORTH KOREA IS THE WORLD'S TOP EXPORTER OF MISSILES. WASHINGTON WANTS PYONGYANG TO STOP PRODUCING AND EXPORTING MISSILES, AND IS PARTICULARLY CONCERNED IT MAY DEVELOP AN INTERCONTINENTAL BALLISTIC MISSILE WOULD COULD REACH THE UNITED STATES. THE NORTH HAS REFUSED TO HALT RESEARCH AND DEVELOPMENT -- ON SECURITY GROUNDS -- BUT HAS INDICATED IT MAY CURB EXPORTS, IF THE UNITED STATES PROVIDES CASH COMPENSATION. WASHINGTON HAS REFUSED TO DO SO. MR. EINHORN SAYS FURTHER TESTING AND EXPORTS OF MEDIUM-RANGE MISSILES WOULD RESULT IN WHAT HE CALLS "SERIOUS NEGATIVE CONSEQUENCES." HE DID NOT SPECIFY WHAT THESE MAY BE. ANOTHER SENIOR U-S OFFICIAL INDICATED THE GULF BETWEEN THE TWO SIDES WAS UNBRIDGED, FOLLOWING THE MEETING. HE SAYS NORTH KOREA IS CLINGING TO UNREALISTIC DEMANDS FOR COMPENSATION. MR. EINHORN TRAVELS TO TOKYO THURSDAY, WHERE HE WILL BRIEF JAPANESE OFFICIALS ON THE TALKS. JAPAN IS STILL FUMING OVER NORTH KOREA'S TEST-FIRING OF A MISSILE OVER ITS TERRITORY, IN AUGUST. THE U-S ENVOY SAYS NORTH KOREA SEES THE FLAWS IN ITS RELIANCE ON MISSILE EXPORTS FOR HARD CURRENCY. BUT HE SAYS MISSILE TALKS ARE A LESSER PRIORITY FOR PYONGYANG, BEHIND NUCLEAR ISSUES AND REPAIRING ITS CRIPPLED ECONOMY. (SIGNED) NEB / JL / GC / WD 31-Mar-99 5:17 AM EST (1017 UTC) NNNN Source: Voice of America .