DATE=6/23/99 TYPE=CORRESPONDENT REPORT NUMBER=2-250982 TITLE=KOREAN TALKS (L) BYLINE=ROGER WILKISON DATELINE=HONG KONG CONTENT= VOICED AT: INTRO: NORTH KOREA HAS OPENED TALKS WITH THE UNITED STATES IN BEIJING BUT HAS PUT A SEPARATE SET OF TALKS WITH RIVAL SOUTH KOREA ON HOLD. V-O-A CORRESPONDENT ROGER WILKISON REPORTS ON THE LATEST DIPLOMATIC MOVES TO DEFUSE TENSIONS ON THE COLD WAR'S LAST FRONTIER. TEXT: U-S OFFICIALS DESCRIBE THE SCHEDULED TWO-DAY MEETING, THAT GOT UNDERWAY WEDNESDAY BETWEEN U-S SPECIAL ENVOY CHARLES KARTMAN AND NORTH KOREAN VICE FOREIGN MINISTER KIM GYE-GWAN, AS ROUTINE. OFFICIALLY, THE AGENDA COVERS UPCOMING PEACE TALKS WITH CHINA AND SOUTH KOREA IN GENEVA AS WELL AS LAST MONTH'S INSPECTION BY U-S EXPERTS OF A NORTH KOREAN UNDERGROUND COMPLEX WASHINGTON SUSPECTED OF BEING A NUCLEAR WEAPONS FACILITY. MR. KIM -- WHO TOLD REPORTERS HE WAS READY TO TALK ABOUT ANYTHING -- HOSTED U-S PRESIDENTIAL EMISSARY WILLIAM PERRY LAST MONTH IN PYONGYANG. MR. PERRY IS TASKED WITH REVIEWING WASHINGTON'S POLICY TOWARD THE RECLUSIVE COMMUNIST STATE AND PROMISED A MAJOR EXPANSION OF U-S RELATIONS WITH NORTH KOREA IF IT GIVES UP ITS NUCLEAR AND MISSILE PROGRAMS. THE U-S/NORTH KOREA MEETING COMES A WEEK AFTER THE FIRST NAVAL CLASH BETWEEN NORTH AND SOUTH KOREA SINCE THE END OF THE KOREAN WAR 46 YEARS AGO. ONE NORTH KOREAN GUNBOAT WAS SUNK AND ABOUT 30 NORTH KOREAN SAILORS ARE BELIEVED TO HAVE DIED. NORTH KOREAN STATE MEDIA PUBLISHED A STATEMENT DEMANDING THAT SOUTH KOREA APOLOGIZE FOR THE GUN BATTLE AS A PRE-CONDITION FOR CONTINUING THE FIRST OFFICIAL NORTH-SOUTH TALKS IN 14 MONTHS -- WHICH ARE ALSO BEING HELD IN BEIJING. THE TWO SIDES MET FOR 90 MINUTES ON TUESDAY, BUT SOUTH KOREAN DIPLOMATS SAID THE TALKS BROKE DOWN WITH EACH SIDE ACCUSING THE OTHER OF RESPONSIBILITY FOR THE CLASH. THE SOUTH KOREANS SAY THEY ARE STILL TRYING TO ARRANGE A SECOND MEETING WITH THEIR NORTHERN COLLEAGUES BUT HAVE NOT HEARD FROM THE NORTH KOREAN DELEGATION. THE SOUTH KOREAN GOVERNMENT IS ANXIOUS TO SHOW ITS CITIZENS THAT ITS POLICY OF ENGAGING NORTH KOREA CAN BRING CONCRETE RESULTS. IT WANTS TO TALK ABOUT REUNIONS OF FAMILY MEMBERS WHO HAVE BEEN SEPARATED FROM THEIR RELATIVES SINCE THE PARTITION OF KOREA IN 1945 AND THE KOREAN WAR IN THE EARLY 1950'S. A SIMILAR NORTH-SOUTH MEETING LAST YEAR BROKE UP WHEN NORTH KOREA REFUSED TO COMMIT ITSELF TO ARRANGE SUCH REUNIONS IN EXCHANGE FOR SOUTH KOREAN AID. NORTH-SOUTH TENSIONS HAVE BEEN EXACERBATED IN RECENT DAYS NOT ONLY BY THE NAVAL CLASH BUT ALSO BY NORTH KOREA'S DETENTION OF A SOUTH KOREAN TOURIST WHOM IT ACCUSED OF TEMPTING NORTH KOREANS TO DEFECT. (SIGNED) NEB/RW/GC/JO/PLM 23-Jun-99 5:39 AM EDT (0939 UTC) NNNN Source: Voice of America .