North Korea to resume disablement after nuclear deal

SEOUL (Reuters) - North Korea said on Sunday it would resume taking apart its plutonium-producing nuclear plant and allow in inspectors in response to a U.S. decision to remove it from a terrorism blacklist and salvage a faltering nuclear deal.

The isolated and destitute North has longed to be delisted so it can better tap into international finance, see the lifting of many trade sanctions, and use global settlement banks to send money abroad instead of relying on cash-stuffed suitcases.

"As the U.S. fulfilled its commitment to make political compensation and a fair verification procedure in line with the phase of disablement ... the DPRK (North Korea) decided to resume the disablement of nuclear facilities in Yongbyon," the North's KCNA news agency quoted a Foreign Ministry spokesman as saying.

The spokesman said the North would "allow the inspectors of the United States and the IAEA to perform their duties on the principle of 'action for action'," saying it will disable the nuclear plant and permit the inspectors in as others fulfill their obligations.

The U.S. decision was made after the secretive North agreed to a series of verification steps on its nuclear plant, a State Department spokesman said in Washington on Saturday. The deal also called for resuming disablement and allowing in inspectors.

Last month North Korea lashed out at not being removed by backing away from the disarmament-for-aid deal it made with China, Japan, Russia, South Korea and the United States, and took initial measures to rebuild its Soviet-era nuclear plant, which was being disabled under the pact's terms.

Most of the disablement steps, which were started in November, had been completed and were aimed at taking at least a year to reverse.

South Korea's chief nuclear envoy told a Sunday briefing in Seoul: "This government welcomes these moves as an opportunity that would lead to normalization of the six-party talks and North Korea's eventual abandonment of its nuclear programs