The United States has proposed a solution to the deadlock over North Korean funds frozen at a Macao bank, under which it would guarantee the funds' return if the North halts operations at its Yongbyon nuclear facility. In return, Pyongyang would also receive 50-thousand tons of oil.

Washington explained that it was mulling whether to transfer the funds to North Korea through Wachovia Corporation or another U.S. financial institution, but doing so would require legal measures and thus take some time.

However, Pyongyang is said to have maintained its stance for now that the BDA issue should be resolved before it implements its commitments under the six-way nuclear accord reached in February.

Meanwhile, Washington informed Seoul of its proposal during a phone conversation between their foreign ministers.