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Chief negotiators from North Korea and the US held a bilateral meeting Tuesday, exchanging views on solving the issue of the frozen funds in a Macao bank, a South Korean official said Tuesday.

 

The official, who asked to remain unnamed, said the issue could be fully resolved as quickly as Tuesday night or early Wednesday morning.

 

Delegates from North and South Korea also met on Tuesday. The chief North Korean negotiator Kim Kye-gwan said the issue could be solved, adding "he would sleep well tonight."

 

When asked when the sixth round of talks would finish, the official said China had not formally released the schedule. If the talks on Wednesday could tackle some substantial issues, negotiations might last until Wednesday midnight, he said.

 

The official denied reports that North Korea could store South Korea's heavy oil aid in a third country.

 

He added no discussion was held on North Korea's return to the International Atomic Energy Agency (IAEA).

 

South Korea's senior diplomat Lim Sung-nam confirmed the issue of the frozen funds could be resolved satisfactorily "though the process is somewhat complex," when briefing reporters at the South Korean press center of the six party talks Tuesday night.

 

Lim said all parties held several bilateral meetings Tuesday, discussing measures that could be taken in the initial and following stages.

 

The sixth round of six-party talks, which involves China, the US, Japan, Russia, North and South Korea, entered into the second day on Tuesday. A plenary session scheduled Tuesday afternoon was cancelled without giving reason.

 

(Xinhua News Agency March 21, 2007)