Envoys from six countries continued their discussions on North Korea’s denuclearization Saturday, officials saying important progress has been made in eliminating differences.

“I cannot say we have reached a complete agreement, but the sides have made significant progress in narrowing their differences in many areas,” South Korea’s top negotiator Chun Yung Woo said.

Envoys from China, Japan, Russia, the United States, North and South Korea are discussing a timetable for the disablement of all nuclear facilities in the communist state, Chun saying a preliminary agreement has been reached.

“The countries have pretty much reached an agreement on how the disablement will be done and how the declaration should be conducted and how far,” he said, adding that “There is still the issue of how we put the agreed steps into a joint agreement.”

China revealed a proposal for the final joint statement, but the US didn’t approve the “comments” and another revised draft could be circulated late Saturday.

According to reports, differences continue to exist on how the disablement should be done. The US said the process should be implemented in a manner that wouldn’t permit North Korea to resume activities at its nuclear facilities within 12 months of the disablement, like it did four years ago.

Saturday’s talks were focused on the economic aid that would be sent to North Korea, as agreed in February.

Washington officials said Friday that US President George W Bush gave the green light for the shipment of 50,000 tons of fuel oil, valued at 25 million dollars, to the Asian country under the agreement.

“It's action for action. We feel like the North Koreans are taking the right steps in living up to their obligations under the agreements,” National Security Council spokesman Gordon Johndroe was quoted as saying by the Washington Post on Saturday.

North Korea has already received similar shipments from neighbouring South and China.

The diplomats are reportedly elaborating a “special management plan” for the disablement of radioactive components from the closed sites.

US Assistant Secretary of State for East Asian and Pacific Affairs Christopher Hill said the outcome of these discussions is expected to be a common statement that would demand the shut down of primary nuclear facilities in North Korea along with the declaration of all sites across the country by the end of 2007.

Six-party negotiations took place for over three years until the Pyongyang government agreed in February to pull the plug on its nuclear program in return for economic aid consisting in fuel oil shipments.