MONDAY, AUGUST 16, 1999 - 12:40 P.M. (ON THE RECORD UNLESS OTHERWISE NOTED) ............. Q: North Korea: The North Korean Secretary of the Workers' Party -- Kim Yong Son -- in an interview today with CNN has indicated a willingness to defuse the crisis on the Korean Peninsula. I'm just wondering if the words that he has spoken today now publicly gibes with what the State Department has been hearing privately with regards to indications that North Korea might test a missile later this month. RUBIN: Let me say that we, obviously, have been engaged in a number of intensive bilateral discussions with North Korea. We have indicated on several occasions -- most recently, Secretary Albright indicated this in Singapore -- that we look forward to a positive opportunity to move forward on improved relations with North Korea. In other words, we are prepared to seize an opportunity to improve relations. There is a window of opportunity to improve relations. But now, we're aware of this report. We certainly hope that this statement indicates that North Korea is prepared to seize the opportunity for improved relations with the United States. But we will have to continue our bilateral discussions. Q: Does the State Department believe that these words are an encouraging sign that North Korea may not test a missile? RUBIN: Well, let me say that we hope this statement does mean that. We do certainly hope that the North Koreans choose the benefits that would accrue to their people, their country and their relations with the United States, from forgoing such testing and working with us through the missile talks that we hope to schedule later this year. So it is certainly our view that statements such as this offer that hope; but what the answer will be is something I'm not prepared to speculate on at this time. .............. (end transcript)