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DATE=9/17/1999 TYPE=CORRESPONDENT REPORT TITLE=U-S/NORTH KOREA (L) NUMBER=2-254028 BYLINE=NICK SIMEONE DATELINE=STATE DEPARTMENT CONTENT= VOICED AT: INTRO: The United States has announced a lifting of some economic sanctions against Communist North Korea in response to the North's pledge to refrain from further tests of long-range missiles. Correspondent Nick Simeone has details on what could lead to the most significant thaw in relations between both countries since the end of the Korean conflict nearly 50 years ago. TEXT: U-S intelligence officials had been warning the North was preparing to follow up last year's surprise test-firing of a long-range rocket with another more advanced missile, this one perhaps capable of delivering a warhead as far as away as Alaska or Hawaii. But the Clinton Administration says it now has achieved an understanding with Pyongyang that North Korea will not go ahead with such tests as long as negotiations continue on improving relations with Washington. The U-S sanctions being lifted include those covering the buying and selling of non-military consumer goods, as well as financial transactions between North Koreans and Americans. Commercial American ships and planes will be allowed visit to North Korea, while diplomatic contacts increase. It was North Korea's pledge to freeze missile tests that led President Clinton's special adviser on North Korea, William Perry, to recommend some sanctions be waived while efforts continue toward normalizing relations. /// PERRY ACT /// I think both sides would see that that test is a positive step, but not terribly significant in and of itself. And both sides are looking forward to moving to a path of normalization, a normalization of diplomatic relations, normalization of economic relations and, in both cases, all countries concerned I think will see a considerable benefit. /// END ACT /// But the pledge North Korea made to freeze missile testing falls short of a formal agreement and appears to be based only on verbal assurances given to Mr. Perry during a visit to Pyongyang. Washington and its Asian allies already have suspicions about the North's nuclear intentions despite a 1994 agreement meant to freeze production of weapons-grade plutonium. // OPT // Still, Secretary of State Madeleine Albright calls this a potentially important turning point. /// ALBRIGHT ACT /// It is a road that holds out the possibility of long-term stability and even eventual reconciliation on the Korean peninsula. It's a road America and its allies want to walk down with the North, but it is not a one-way street. If circumstances warrant that we go back to square one, we can do so without damage to our interests. If circumstances require that we go down a different road altogether, we will do so to defend our interests. /// END ACT /// /// END OPT /// On Capitol Hill, support for the easing of sanctions is mixed, with some Republicans opposed. // OPT // Senate Majority leader Trent Lott: /// LOTT ACT /// North Korea has taken threatening actions. They have not always kept their word. Now, the President is first going to act to grant relief on trade and other restrictions in anticipation of some actions or restraint by North Korea. So I have some questions about it. /// END ACT /// /// END OPT /// Despite its pledge not to test long-range missiles, the United States achieved no firm commitment that the cash-strapped North Korean government will not export missile technology to rogue nations. And despite the easing of some sanctions, the North will remain on the U-S government's list of terrorist- supporting nations. (Signed) NEB/NJS/WTW 17-Sep-1999 17:29 PM EDT (17-Sep-1999 2129 UTC) NNNN Source: Voice of America .