Oct. 31 (Bloomberg) -- North Korea agreed to return to talks with the U.S., China and three other countries on the country's nuclear weapons program almost a year after it suspended negotiations and pursued the test-blast of a bomb.

Representatives of China, the U.S. and North Korea met today in Beijing and decided to resume discussions by December with Russia, Japan and South Korea, said Christopher Hill, U.S. assistant secretary of state for East Asia and the Pacific.

While President George W. Bush praised China for its effort to bring North Korea back into diplomacy, he said the U.S. would push for United Nations sanctions to be enforced. A negotiated settlement must ensure that North Korea ``abandons her nuclear weapons program in a verifiable'' way, Bush said in Washington.

North Korea's shift, after setting off a nuclear bomb on Oct. 9 and testing seven missiles in July, may be a sign of the effectiveness of moves by China and the U.S. to freeze its overseas financial assets. The UN Security Council unanimously agreed to impose sanctions on North Korea on Oct. 14.

North Korea ``wanted us to discuss the removal of financial measures'' against the regime's overseas assets, Hill said at a press conference in the Chinese capital. North Korea's delegates ``reiterated more than once their commitment to implementing the September 2005 agreement to denuclearize the Korean peninsula.''

Stalled Talks

Talks aimed at ending North Korea's weapons program stalled in November, and the government of dictator Kim Jong Il has refused to resume them until the U.S. removes financial sanctions imposed last year for money-laundering and counterfeiting. U.S. officials have rejected North Korea's demands for bilateral talks, urging the Asian nation to return to the multinational negotiations.

UN Secretary-General Kofi Annan ``hopes the talks can be reconvened soon, and that they will yield positive results leading to lower tensions in the region,'' his spokesman said in a statement.

North Korea on Oct. 9 tested a nuclear bomb underground in the country's mountainous northeastern region, ratcheting up international tension surrounding its weapons program. The U.S. did not ask for a moratorium on a second test as a precondition for returning to the talks, Hill said.

``It's understood that a further test will be inconsistent with that undertaking'' by North Korea to return to negotiations, he said. ``We have to make preparations to ensure the verifiable and irreversible process by North Korea to denuclearize.''

Working Group

``We will create a mechanism for a working group'' to address North Korea's opposition to U.S. and Chinese financial sanctions, Hill said. United Nations Resolution 1718 will remain in force and ``operate on a different track,'' he said.

``We made no commitment whatsoever to changes on the United Nations issue,'' Hill said. ``North Korea doesn't like it, but the best way to end it is to denuclearize.''

The resumption of six-party talks was initially announced by China's state-run Xinhua News Agency. The country's negotiators last week approached U.S. Secretary of State Condoleezza Rice about asking Hill to return to China, he said. Hill cut short a visit to Australia and flew back to Beijing for a seven-hour discussion today in a government compound, he said.

``The Chinese have been very engaged in the process'' because they ``felt very strongly that North Korea should come back to the talks,'' Hill said. ``At a time when China is hosting 48 African heads of state, they were able to do this. So China has had a very busy diplomatic day.''

Oil Exports

China cut off oil exports to North Korea last month amid criticism of the nuclear-arms program, the New York Times reported, citing Chinese trade statistics. About 6 percent of North Korea's energy comes from oil, according to the U.S. Energy Department. Hill, in an e-mail, said he couldn't confirm the oil trade was halted.

``If in fact they did cut off the oil that certainly was a very significant step,'' said Bruce Klingner, an Asia analyst at the New York-based Eurasia Group political-analysis firm. ``Cutting off the oil is certainly a much stronger measure than they had been willing to do before.''

South Korea said it ``welcomes'' the decision by its northern neighbor to restart the talks, according to a statement posted on the Web site of the South Korean Foreign Ministry. It said it will continue diplomatic efforts to resolve the North Korean nuclear issue through ``close cooperation'' with the other five countries involved in the talks.

Russia's Deputy Foreign Minister Alexander Alexeyev called the action ``exceedingly positive,'' according to the Interfax news agency.

North Korea earlier warned there would be ``catastrophic consequences'' if South Korea helps a U.S.-led drive to stop and search ships that may be carrying weapons, the Associated Press said, citing the North Korean state news agency.

To contact the reporter on this story: Alex Morales in London at amorales2@bloomberg.net.

Last Updated: October 31, 2006 14:31 EST