A Reuters source in Beijing, sounding suspiciously like a DPRK Foreign Ministry spokesman, imparts the warning shot:

North Korea will feel compelled to announce plans for another nuclear test if a financial dispute with Washington is not resolved, a source said on Wednesday, a sign of Pyongyang’s impatience with a lack of progress in talks.

[…]

“If the United States does not resolve it, North Korea will have no choice but to announce at the six-party talks that it plans to conduct another test,” the source told Reuters after being briefed by a North Korean official.

In reality, North Korea has been trying the patience of the United States in this matter since 1991, but it’s a standard North Korean tactic to frame issues in this manner (i.e., backwards), as well as to create the situation that “forces” it to do something that in reality it does not have to do. In this case, refuse to come to talks, blame it on the U.S., then use that as an excuse to not continue talks, and apparently to set off another nuke.

Strikingly similar to North Korea engaging in a secret uranium based nuclear program – as later verified by Pakistan’s government – which was a violation of the 1994 Agreed Framework. When the U.S. stopped delivering the heavy fuel oil called for in that agreement, North Korea blamed the U.S. for breaking the agreement, left the Nonproliferation Treaty, and developed nuclear bombs.

If North Korea was impatient to conclude a deal, it would already be done. North Korea is, however, impatient about the bank accounts frozen under U.S. pressure.

A bit of unguarded truth from a Russian, and disengenous optimism from a Chinese diplomat:

“I think there is almost no chance of finding concrete, significant agreements during these talks,” Russia’s Alexander Losyukov, a deputy foreign minister, told Interfax news agency.

China’s delegate to the talks, Wu Dawei, appeared more optimistic.

“I hope the meeting can complete its talks in three to four days,” he told reporters. “I also hope it can achieve positive results. Of course, that requires efforts of all parties.”

And more of the source:

The Beijing-based source described the U.S. financial curbs as a “huge insult” to a sovereign country.

“If the United States does not resolve it, North Korea would be a ’sinner’ taking part in the six-party talks … North Korea would have no face and could not be on equal footing with the other parties at the six-party talks.

“The United States has no evidence, just like it had no evidence Iraq had weapons of mass destruction,” the source said.

Well, the U.S. position is that it’s more than an insult, it’s a criminal act to counterfeit U.S. currently, and engage in drug trafficking and money laundering. The whole international crime thing, again.

As for the proof, South Korean banks know enough to alter practices even if the Roh administration won’t admit it’s true.