As the year came to an end, there were reports of progress in talks between the United States and North Korea over the North's nuclear program.
Western intelligence sources believe that North Korea is developing nuclear weapons at a site in Yongbyon. Earlier this year, North Korea test fired missiles that were capable of reaching Japan.
In November, officials from the International Atomic Energy Agency said North Korea was refusing to allow inspectors to look at the country's nuclear development sites in accordance with the Nuclear Nonproliferation Treaty.
At several points it appeared the U.S. and North Korea were on a collision course. President Clinton warned that any attack on South Korea would result in a terrible price being paid by the North. But in late December, U.S. and North Korean negotiators met at the United Nations and the U.S. said North Korea was making proposals to resolve the dispute.
While the U.S. is pressing the North Koreans to allow inspections, the North is said to want economic help for its ailing economy and the cancellation of joint U.S. - South Korean military exercises.
