Region calm despite North Korea nuclear boost

Regional powers and South Korean financial markets reacted calmly yesterday to North Korea's declaration it had taken fuel from a nuclear reactor, a process that could give it more material for atomic weapons.

But Seoul was also showing growing irritation with what it sees as its northern communist neighbour's bargaining amid efforts to restart formal talks involving the North and five regional powers that have been stalled since June last year.

North Korea said on Wednesday it had "successfully finished the unloading of 8000 spent fuel rods" and that it was "taking necessary measures to bolster its nuclear arsenal".

"Making the announcement like that might be a negotiating tactic in order to prod or press for talks," Foreign Minister Ban Ki-moon was quoted as saying by Yonhap news agency. "It is troubling, but it's the Government's position that we will respond calmly."

In other developments:

* Delegates from 188 nations agreed in New York on an agenda to review the Nuclear Nonproliferation Treaty, paving the way for the first serious discussions on improving the treaty's control of nuclear weapons.

* Russia plans to make its first delivery of nuclear fuel to Iran at the end of the year or early next year under an agreement to fire up Iran's first atomic power station.

- AGENCIES