Nuclear Talks Hope Fades As China Says Kim Did Not Apologise

China has denied earlier reports that the North Korean leader apologised for this month's atomic weapons test and said yesterday that Kim Jong-il has reserved the right to escalate the nuclear crisis.

The denial dashes hopes for an early resumption of talks, which were raised last week when a senior Chinese envoy, Tang Jiaxuan, returned from Pyongyang with an upbeat message for the visiting US secretary of state, Condoleezza Rice.

Although no details were revealed of Mr Tang's talks with the North Korean leader, reports in South Korea and Japan quoted Mr Kim as expressing regret for the difficulties the test had caused China.

In its first comment on the matter, the Chinese foreign ministry said the reports were inaccurate and warned against applying further pressure on North Korea.

"I haven't heard of Kim Jong-il apologising," said a spokesman, Liu Jianchao. "He also indicated that the DPRK [Democratic People's Republic of Korea] has no plans for a second nuclear test but if other countries impose more pressure, the DPRK may take further steps."

His comments suggested that Beijing is unwilling to go as far as Washington wants in punishing Pyongyang for a test that raised tensions in the region and increased the risks of wider nuclear proliferation. Ms Rice visited Tokyo, Seoul, Beijing and Moscow last week to try to rally the region's powers to apply new UN sanctions, which include financial and military restrictions and a provision to search ships. Naval interdictions are among the greatest potential sources of conflict. None have been reported so far. A North Korean vessel was detained in Hong Kong yesterday, but officials said it was for breaches of safety regulations.

In a rare move against its old ally, China supported the UN's actions. But it fears a collapse in North Korea that could lead to regional instability and a flood of refugees across its borders. "All parties should not wilfully interpret or expand the sanctions," Mr Liu said, adding that he was unaware of any Chinese plans to cut food and energy aid to Pyongyang. "Sanctions are not the end. They should serve the goal of peacefully settling the crisis through dialogue and consultation."

This echoed calls by the International Atomic Energy Agency's chief, Mohamed ElBaradei, for talks. "I don't think sanctions work as a penalty," he said. "They feel they are isolated; they feel they are not getting the security they need."

The White House has resisted calls for direct bilateral talks or a lifting of financial restrictions, despite criticism that its confrontational stance has accelerated Pyongyang's nuclear programme.

Jack Crouch, the US deputy national security adviser, said on Monday: "The United States and its allies are not responsible for the decisions that are made in Pyongyang. They are."