LEAD: N. Korea still developing nuclear-capable ICBM: U.S. official

WASHINGTON, April 1 Kyodo

(EDS: RECASTING WITH N. KOREA'S MISSILE PROGRAM)

North Korea is still developing an intercontinental ballistic missile with nuclear capability, the head of the U.S. Defense Department's Missile Defense Agency said Tuesday.

''North Korea's ballistic missile development and export activities remain especially troubling,'' Air Force Lt. Gen. Henry Obering said at a congressional hearing. ''Pyongyang continues to press forward with the development of a nuclear-capable ICBM.''

Obering made the remarks after North Korea test-fired several short-range guided missiles in the Yellow Sea on Friday.

He said Pyongyang's advances in missile development, especially new, solid fuel short- and intermediate-range ballistic missiles, ''could allow it to deploy a more accurate, mobile, and responsive force.''

''North Korea's nuclear weapons program makes these advances even more troubling to our allies and the commanders of our forces in that region,'' he said in prepared testimony to the Senate Armed Forces Committee's Subcommittee on Strategic Forces.

He also expressed concern about North Korea's alleged missile development cooperation with Iran, citing Tehran's reported purchase of a new intermediate-range ballistic missile Pyongyang is developing.

Separately, a senior Treasury Department official said the United States continues to investigate North Korea's alleged counterfeiting of U.S. dollar bills.

''We have continued to work with the U.S. Secret Service to counteract North Korea's counterfeiting of U.S. currency,'' said Stuart Levey, treasury undersecretary for terrorism and financial intelligence.

''The Secret Service is continuing to investigate North Korea's counterfeiting activities and the high-quality counterfeit bills produced by North Korea, known as the 'Supernote,' continue to surface,'' he said in prepared remarks for a Senate Finance Committee hearing.

Pyongyang's alleged illicit activities such as counterfeiting of U.S. currency and money laundering have for years been a source of friction with Washington.

At one point, six-party talks on North Korea's nuclear programs were stalled when funds for North Korea were frozen at a Macao bank. Washington alleged the funds linked to money laundering, counterfeiting and other illicit activities. The row was later resolved and Macao authorities released the funds.

Washington and Pyongyang held inconclusive talks in New York in November to discuss international financial issues, especially North Korea's alleged illicit activities.

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