Rice calls North Korean deal 'important first step'

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WASHINGTON (CNN) -- U.S. officials on Tuesday defended the Bush administration's policy shift on North Korea, which coincided with an agreement by Pyongyang to begin to close down its nuclear program.

North Korea now has 60 days to shut down its Yongbyon nuclear complex and readmit nuclear inspectors. In return, it will get 50,000 tons of fuel oil or financial aid of an equal amount.

Once Pyongyang takes additional steps to disable its nuclear program, including taking inventory of its plutonium stockpile, it will qualify for another 950,000 tons of fuel oil or equivalent aid, according to the terms of the deal. The aid package is worth $300 million. (Watch how the deal was made )

North Korean state media reported that the agreement called only for a "temporary suspension" of Pyongyang's nuclear program, according to wire reports.

U.S. Secretary of State Condoleezza Rice drew a distinction between the first 60-day period, when she said nuclear activities will be suspended, and the later "disablement phase."

"The disabling of these facilities is a sign that the North Koreans may, in fact, be ready to make a strategic choice," she said at a briefing in Washington. "I will not take it as a complete sign until we've seen that disablement, but obviously disablement is an important step forward."

"I am pleased with the agreements reached today at the Six Party Talks in Beijing," President Bush said in a statement. "These talks represent the best opportunity to use diplomacy to address North Korea's nuclear programs. They reflect the common commitment of the participants to a Korean Peninsula that is free of nuclear weapons."

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