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DATE=9/17/1999 TYPE=CORRESPONDENT REPORT TITLE=U-S / KOREA / SANCTIONS (S-UPDATE) NUMBER=2-254018 BYLINE=DAVID GOLLUST DATELINE=WHITE HOUSE CONTENT= VOICED AT: /// UPDATES CR 2-254010 WITH ACTUALITY, NEW INFO /// INTRO: President Clinton is easing commercial and trade sanctions against North Korea, which has pledged to forgo testing of long-range ballistic missiles. V-O-A's David Gollust reports from the White House. TEXT: The decision, capping months of delicate discussions with Pyongyang, will allow trade in consumer goods, the transfer of commercial and personal funds and air and sea transportation of passengers and cargo between the two countries. A White House statement said on the basis of the talks, it is the U-S "understanding" that North Korea will refrain from testing long-range missiles of any kind. Briefing reporters, White House spokesman Joe Lockhart made clear that if North Korea's threatened test of an intercontinental missile goes forward, the deal is off: /// LOCKHART ACT /// This is a very conditional lifting of sanctions. I think we've made it very clear that if they resume testing, the sanctions will be put back on. /// END ACT /// Other sanctions still in effect against North Korea (- - imposed in an attempt to control terrorist activity and weapons proliferation --) will forbid most U-S aid. Mr. Clinton's relaxation of commercial and trade sanctions is drawing Republican criticism in Congress, but Mr. Lockhart says U-S regional allies South Korea and Japan are supportive. (Signed) NEB/DAG/ENE/WTW 17-Sep-1999 13:26 PM EDT (17-Sep-1999 1726 UTC) NNNN Source: Voice of America .