Deal on North Korea sanctions eludes U.N. powers for now

By Louis Charbonneau

UNITED NATIONS (Reuters) - Major world powers edged toward agreement on Tuesday on a U.N. resolution expanding sanctions on North Korea over its nuclear weapons program but were unable to close the deal, diplomats said.

"We continue to engage in intense and productive negotiations," U.S. Ambassador to the United Nations Susan Rice said. "We're making progress, but we're not done yet."

Russia, which holds a veto in the council and has had some concerns about sanctions, said consensus was emerging.

Several diplomats close to talks among the five permanent Security Council members, Japan and non-council member South Korea dismissed news reports that the seven countries had already reached agreement.

The United States and Japan have pushed for strong sanctions to punish North Korea for its nuclear test in May, but China and Russia have been cautious about provoking Pyongyang by imposing more sanctions.

"We have got the makings of a deal, but one delegation still needs to hear back from its capital," a Western diplomat close to the talks told Reuters.

Two diplomats from among the Security Council's five permanent members said they believed China had agreed with the U.S.-drafted text of a resolution within the last 24 hours, but Russia had raised new concerns.

The seven countries agreed "to continue our consultations on a draft resolution," Japanese Ambassador Yukio Takasu said. "I think it's clear that we need to spend more time, to continue the consultations."