By Reuben Staines
Staff Reporter

The United States is set to adopt an executive order allowing officials to freeze the assets of companies doing business with North Korea, Iran and Syria, according to news reports.

U.S. President George W. Bush is likely to sign the order this week giving the Treasury Dept. the power to target the assets of firms believed to be assisting the three nations in their alleged weapons of mass destruction (WMD) programs, Reuters news agency reported.

The measure is part of recommendations put forward by a presidential commission on WMDs led by Judge Laurence Silberman and former Democratic Sen. Charles Robb.

The White House confirmed that the executive order is likely to be adopted soon. ``We have been reviewing those recommendations. That review is nearing completion,’’ presidential spokesman Scott McClellan told reporters.

Dubbed the ``WMD Proliferation Financing Executive Order,’’ officials said it will be similar to existing measures that empower U.S. authorities to freeze the assets of companies suspected of financing terrorist groups.

Washington sources said the move will boost efforts to prevent the proliferation of nuclear, missile, chemical and biological weapons.

South Korean government officials contacted by The Korea Times refused to comment on the plan. But experts in Seoul expressed concern that it could antagonize North Korea and damage hopes of the communist nation returning to multilateral talks over its nuclear weapons program.

``While this isn’t a particularly important decision, it could upset North Korea because of the timing,’’ said Park Ihn-hwi, professor at Ewha Womans University’s Graduate School of International Studies.

In the wake of a rare meeting between a top South Korean official and North Korean leader Kim Jong-il on June 17, Seoul has urged the U.S. to preserve the positive atmosphere surrounding the nuclear negotiation. During the meeting, Kim signaled that his country will resume the six-party nuclear talks in July if Washington treats it respectfully.

Park also noted that as the executive order is a purely domestic policy, it allows the U.S. to prod North Korea without seeking consent from South Korea and other nations involved in the six-party talks, which have been stalled for a year.

Seoul and Beijing, which hosts the stalled negotiations, have opposed calls by Washington to take punitive measures against Pyongyang, such as sending the nuclear issue to the U.N. Security Council for sanctions.

On Monday, The Washington Post reported it obtained a document listing eight firms that the U.S. will initially crack down on under the executive order. Three North Korean firms were included, it said.

The U.S. daily said the order will allow officials to take action against U.S. companies but is more likely to affect Chinese and Russian firms, which have frequent business dealings with the three targeted nations.

However, it said the decisions to freeze the firms’ finances will depend on U.S. intelligence and authorities will be wary of legal challenges.

Decisions could be complicated because firms often provide the countries with dual-use components, technologies that have applications in both civilian and military areas.

The U.S. already imposes strict economic sanctions on North Korea, which declared itself a nuclear power in February, and lists it as a terrorist-sponsoring nation.

Washington has accused Iran of developing nuclear weapons but Tehran insists its nuclear programs are only to produce energy. Officials believe Syria has produced large amounts of the nerve agent sarin and hundreds of short-range ballistic missiles.

rjs@koreatimes.co.kr