U.S. looking at "all options" to deal with N. Korea: Stephens

(ATTN: MODIFIES lead; UPDATES with comments on nuke talks, media speculation on
envoy to N. Korea in last 8 paras)
By Tony Chang
JEJU ISLAND, South Korea, June 4 (Yonhap) -- The United States has put "all
options" on the table to counter North Korea's continued provocations, the top
U.S. envoy in South Korea said Thursday, hinting that Washington may pursue its
own sanctions after the U.N. takes action against the communist nation for its
latest nuclear test.
"In terms of the options that we are looking at, I think we're looking at all
options," Ambassador Kathleen Stephens said in a forum here with South Korean
journalists.
She was responding to a barrage of questions on whether the U.S. will consider
military action if North Korea takes additional provocative steps, including the
detonation of another nuclear bomb and firing of an intercontinental ballistic
missile.
North Korea abandoned the six-way talks on its nuclear program and conducted its
second known nuclear test last week in protest of the U.N. Security Council's
condemnation of its April 5 long-range rocket test.
South Korean intelligence authorities said they detected signs of the North's
preparations for yet another long-range missile launch from its new base along
its west coast, while the U.N. council is debating a resolution to punish the
nation for its nuclear blast.
The North is also threatening an armed conflict with the South. A North Korean
naval boat briefly crossed the disputed western sea border into the South, but
retreated after verbal warnings were issued from South Korean patrol ships.
Stephens said the top priority is to hammer out a compromise on the envisioned
resolution amid reports that North Korea's traditional allies -- China and Russia
-- are opposed to strong punitive measures that may deal a serious blow to the
North's economy and lead to instability.
The U.S. will then take the next step, she added.
"We're looking closely in the U.N., with our partners in the region. I think
after the consultations are completed, we'll make some decisions on what options
to pursue," the envoy said.
She said the ongoing regional trip by a high-profile U.S. government delegation,
led by Deputy Secretary of State James Steinberg, is part of efforts to
strengthen cooperation with other related nations in dealing with the North.
The delegation is widely seen as seeking support from South Korea, Japan, and
China for Washington's plan to put financial sanctions on the cash-strapped
country.
Stuart Levey, the Treasury Department's undersecretary for terrorism and
financial intelligence, is a member of the team. In 2006, he was in charge of
U.S. financial restrictions on a small bank in Macau, the Banco Delta Asia,
accused of helping North Korea launder money from counterfeiting and other
illicit activities. On Wednesday, the Washington Times cited U.S. intelligence
officials as saying that the North is continuing to produce high-quality
counterfeit $100 bills called "supernotes" under a program led by Gen. O
Kuk-ryol, deputy chief of the country's powerful National Defense Commission.
Levey met with South Korea's Vice Finance Minister Hur Kyung-wook earlier
Thursday to discuss cooperation against international money laundering.
The ambassador said, however, that diplomacy is preferred and called for North
Korea to return to the six-way talks.
"The Obama administration sees value in building on the work that has been done
with the six parties that have very strong interest in resolving the situation,"
she said. "If we have a situation where North Korea carries out continuously
these kinds of action and seeks a very aggressive way to develop a long-range
missile and nuclear capability, we have to take that into account as we develop
our defensive posture."
The seasoned diplomat stressed that a military option will be among the last to
be considered.
"Any decision on taking military action is a political decision made by our
highest political leaders and is a very serious decision," she said.
She was guarded about media speculation that former U.S. Vice President Al Gore
will soon visit North Korea to negotiate the release of two American journalists
who have been detained there for nearly three months.
"I don't have anything to say about it," the ambassador said.
Laura Ling and Euna Lee, reporters at Gore's Current TV network, were captured by
North Korean border guards on March 17 for allegedly entering the country
illegally and engaging in "hostile acts." They were producing a story on North
Koreans fleeing their homeland.
North Korea announced it began the trial of the journalists Thursday afternoon.
odissy@yna.co.kr
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