US slaps sanctions on key North Korea bank

Washington, March 12: The United States slapped sanctions on North Korea's primary foreign exchange bank, as it bids to force the isolated nation to abandon its nuclear programme on Monday.

The Treasury Department will impose sanctions on the Foreign Trade Bank (FTB) of North Korea after Pyongyang flouted international resolutions and conducted its third nuclear test last month, US national security advisor Tom Donilon said in New York.

The US will "continue to work with allies and partners to tighten national and international sanctions to impede North Korea's nuclear and missile programmes," Donilon told the Asia Society in New York.

The Treasury also placed sanctions on Paek Se-Bong, the chairman of North Korea's Second Economic Committee, responsible for the production of ballistic missiles and for other bodies which support Pyongyang's nuclear effort.

"North Korea's nuclear and missile proliferation activities violate the UN Security Council regime... destabilise the region and undermine the global non-proliferation regime," the Treasury said.

US Treasury sanctions forbid any US individual, business or organisation from any transactions with the people or groups named.

The announcement came as South Korea and the US launched joint drills on Monday involving thousands of troops, defying North Korea's apocalyptic threat to repudiate the 60-year-old Korean War armistice in retaliation.

The start of the two-week "Key Resolve" exercise follows a week of escalating tensions on the Korean peninsula, with Pyongyang also threatening nuclear war over UN sanctions.

Donilon called such statements "highly provocative" but reaffirmed that Washington was "committed to the defence of our homeland and our allies". He also reiterated that Washington was willing to hold "authentic negotiations with North Korea," but said it "refuses to reward bad North Korean behavior".

"The DPRK (Democratic People's Republic of Korea) will achieve nothing by threats or provocations, which will only further isolate North Korea and undermine international efforts to ensure peace and stability in Northeast Asia," Carney said.

"We continue to urge the North Korean leadership to heed (US President) Obama's call to choose the path of peace and come into compliance with its international obligations," he said.

"We have worked in a concerted way with our international partners to put pressure on and isolate North Korea because of its failure to live up to its obligations," Carney further said.

"The (UN) Security Council passed a resolution with unanimous support just last week in reaction to actions by North Korea, and we will continue that effort," he said in response to a question.

Donilon in his speech said that by now it is clear that the provocations, escalations and poor choices of North Korea's leaders are not only making their country less secure, they are condemning their people to a level of poverty that stands in stark contrast not only to South Korea, but every other country in East Asia.

"The United States will not play the game of accepting empty promises or yielding to threats. As former Secretary of Defense Bob Gates has said, we won't buy the same horse twice. We have made clear our openness to authentic negotiations with North Korea."

"In return, however, we've only seen provocations and extreme rhetoric. To get the assistance it desperately needs and the respect it claims it wants, North Korea will have to change course."

"Otherwise, the US will continue to work with allies and partners to tighten national and international sanctions to impede North Korea's nuclear and missile programmes,” Donilon said.

The Treasury Department announced the imposition of US sanctions against the Foreign Trade Bank of North Korea, the country's primary foreign exchange bank, for its role in supporting North Korea's WMD programme.