NYT: China steps up, prepared to exert pressure on North Korea

[DeepModem Mom]

China May Press North Koreans
By JOSEPH KAHN
Published: October 20, 2006

BEIJING, Oct. 19 — China is prepared to step up pressure on North Korea in coming weeks by reducing oil shipments, among other measures, if the country refuses to return to negotiations or conducts more nuclear tests, Chinese government advisers and scholars who have discussed the matter with the leadership say.

If Beijing does take a tougher line on its neighbor and longtime ally, the action is likely to bolster its relationship with the United States. Washington has urged Chinese leaders to use all the tools at their disposal to put additional pressure on Kim Jong-il, the North Korean leader.

Among the most potent of those tools is oil. China provides an estimated 80 to 90 percent of North Korea’s oil imports, shipped by pipeline at undisclosed prices that Chinese officials say represent a steep discount from the world market price. Any reduction in that aid could severely hamper North Korea’s already faltering economy.

Several leading Chinese experts said senior officials had indicated in the past week that they planned to slap new penalties on North Korea going beyond the ban on sales of military equipment imposed by the United Nations. But they would be likely to hold off if Mr. Kim agreed to return soon to multilateral talks North Korea has boycotted since September 2005. Years of talks have produced meager results.

Discussions about how to respond to the nuclear test, which was described by one expert as a “political earthquake” for Chinese leaders, come amid a flurry of diplomacy aimed at ironing out enforcement of United Nations sanctions and luring Mr. Kim back to negotiations....

http://www.nytimes.com/2006/10/20/world/asia/20china.html?_r=1&ref=todayspaper&oref=slogin