North Korea says it can scrap its nuclear program in return for formal bilateral ties with the United States and removal of the U.S. nuclear umbrella over South Korea.

At the fourth round of the six-way talks Wednesday, North Korean chief delegate Kim Kye-gwan in his keynote speech said the North wants the six parties to accept the principle of "words for words" in line with the gradual denuclearization of the Korean Peninsula.

Kim said any promises made should be implemented step by step under an "actions for actions" principle, starting with the easiest.

He also rejected the U.S. proposal at the third round of the talks in February last year as "absurd" and "unacceptable," saying it lacks substance for the promotion of peaceful coexistence and ending nuclear threats.

He proposed that the North scrap its nuclear program based on how Washington implements its promises under a package deal.

Meanwhile, chief U.S. delegate Christopher Hill said the parties will provide full economic assistance to the North and security guarantees if Pyongyang dismantles its nuclear program.

He also said South Korea’s power offer to the North represents significant progress, but that the aid should hinge on Pyongyang's removal of its nuclear program in a verifiable manner.

Hill also reiterated U.S. President Bush's call for peaceful resolution of the nuclear issue and North Korean leader Kim Jong-il's urge for a nuclear-free peninsula, addressing Kim as "chairman" in a rare sign of respect.