Rail talks snag on whether North has to return loaned equipment

South and North Korea continued negotiating Monday night in search of an expected agreement on logistical procedures for the rail and road reconnection projects, even as military safeguards for the work were agreed upon separately.

The two Koreas' government delegates were talking at the North's Mount Geumgang resort in an extension of their three-day negotiation, which was supposed to have ended Sunday.

The talks hit a rough spot over how to arrange the South's equipment and material support for the North. The South reportedly suggested that it would lease construction equipment to the North. It had been reported earlier that the South would provide materials and equipment worth 50 billion won ($41.7 million) in the form of loans.

The North reportedly wants the transaction to be described as a loan, to be repaid in money at some future time, rather than a lease, which would mean that the equipment would be returned when the work was completed.

The list of equipment presented by each Korea showed apparent differences; further discussions will be necessary to survey the construction procedures and technology involved.

The two sides reportedly agreed that the South would send materials and equipment to the North over a period of time, starting late this month.

"From the beginning, it was physically impossible to agree on all terms of the rail and road projects through these talks," a source close to the talks said.

In contrast to the rough going at the rail talks, the military establishments of the two Koreas have methodically checked off a series of agreements. Monday they met in the truce village of Panmunjeom and decided to open a hot line on Sept. 24 for work inside the Demilitarized Zone, Seoul's National Defense Ministry said. They also exchanged military safeguards, protecting workers inside the DMZ, signed by their defense chiefs. Another hotline will link the two Koreas in the eastern DMZ when the demining work for the East Coast Line is completed.

Another military meeting Tuesday will give the military safety pacts effect.

by Joint Press Corps