The two Koreas will discuss Seoul’s provision of rice aid and Pyongyang’s nuclear dismantlement efforts on the third day of bilateral economic cooperation talks Friday.

Earlier on Thursday, the South’s delegation urged the North to swiftly implement initial steps toward its nuclear dismantlement under a February 13th six-way agreement.

The South wants the North to start nuclear dismantlement before receiving some 400-thousand tons of rice.

The North, on its part, protested the South’s position, saying that the issue of initial dismantlement steps is not part of the economic cooperation talks’ agenda.

The South also proposed holding test runs next month for two inter-Korean railways and transporting economic aid via cross-border land routes.

In response, the North stressed the need to promptly conduct the test runs, urging Seoul to swiftly provide light industry materials.

In particular, the communist state also proposed setting up a North Korean bank branch in the inter-Korean Gaesong Industrial Complex in order to facilitate financial transactions with South Korean banks.

The first plenary session of the economic talks opened Thursday after hours of delay caused by the North's demand to provide food aid despite its failure to take steps toward nuclear dismantlement.

The South Korean delegation arrived in Pyongyang on Wednesday afternoon for four days of talks that will continue into Saturday.