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Senators urge talks with N. Korea

By TIMES WIRES
Published June 26, 2006

WASHINGTON - Leaders of the Senate Foreign Relations Committee said Sunday that the Bush administration should talk directly with North Korea as concerns grow over a possible test launch of a missile that could reach the United States.

Senators also rejected the idea by a former defense secretary that the United States make a pre-emptive strike.

"We are not anywhere close to talking about attacking North Korea, and we should shut up and stop it," said Sen. Chuck Hagel, R-Neb.

"We need to talk directly with North Korea. The sooner we do that, the sooner we're going to get this resolved," Hagel, the second-ranking Republican on the committee, told CNN's Late Edition.

The committee's chairman, Sen. Richard Lugar, spoke out on CBS's Face the Nation against attacking the missile, believed to be a Taepodong-2, while it was on the ground.

"It would be advisable to bring about a much greater intensification of diplomacy, and this may involve direct talks between the United States and North Korea," said Lugar, R-Ind.

North Korea long has wanted direct meetings with the United States. However, Washington has refused, insisting it will only meet the North Koreans in the context of six-nation international talks aimed at ridding the communist country of its nuclear weapons program. Those talks are now stalled.

Sen. Joe Biden of Delaware, the top Democrat on the Foreign Relations Committee, urged close U.S. contact with South Korea and Japan as events unfold.

Direct talks with North Korea may not work, he said, but would be "a better way of approaching this and finding what the bottom line is than this brinkmanship."

Companies move ahead to create world steel titan

BRUSSELS - Arcelor SA yielded to a sweetened bid from Mittal Steel Co. on Sunday, ending a bitter five-month takeover battle in a deal to create a titan with nearly 10 percent of the global steel market.

Arcelor's board unanimously supported the proposal to create Arcelor-Mittal - a bid that was a 10 percent improvement on the previous offer, Arcelor chairman Joseph Kinsch said. That would make it worth about $33-billion.

Shareholders are to make their choice Friday in a vote that could seal the deal, which Mittal has now raised twice. Arcelor is expected to offer further details about the deal, including specific terms that will determine the exact price.

Analysts have said the two companies are complementary and have few overlaps. Arcelor - based in Europe with large operations in Latin America - focuses on high-quality steel, selling to long-term clients in the auto industry in Europe. Mittal's steel mills in India and Eastern Europe produce lower-quality steel sold on the open market, although it also has significant operations in North America through its acquisition of ISG.

East Timor's foreign minister quits in protest

DILI, East Timor - East Timor's Nobel prize-winning foreign minister resigned in protest Sunday after the country's ruling party ignored demands to fire Prime Minister Mari Alkatiri over accusations he provoked bloody unrest.

Jose Ramos-Horta's departure threatened to unravel the government as it struggled to regain control following the worst outbreak of violence since the tiny nation voted for independence from Indonesia seven years ago.

[Last modified June 26, 2006, 02:38:12]