Seoul, Oct 28: North and South Korea agreed today to open economic talks next month on the construction of cross-border railways and roads, and an industrial complex in the Communist state. The talks, the seventh between the two sides since an Inter-Korean Summit in 2000, will take place Nov 5-8 in North Korea's capital of Pyongyang, said South Korea's Unification Ministry, which handles relations with the North. The two Koreas last met for economic talks in August.

The two sides were expected to discuss details of rail and road links across their heavily armed border and an industrial park in the North Korean city of Kaesong. North and South Korean officials broke ground for the park in June.

Political and military tension has delayed work on the rail and road projects, and the two sides have failed to meet a number of deadlines. It was not clear whether South Korean officials would bring up the North's nuclear weapons programmes, which has caused a year long standoff between North Korea and the United States and its allies.

In a sudden change of heart, North Korea said last week it could consider a US proposal of written security assurances that the North would not be invaded if the isolated regime abandons its nuclear weapons programmes. Bureau Report