A press release yesterday from the North Korean UN mission came as a US official said on Thursday that the government was weighing the possibility of providing an additional 300,000 tonnes of food relief to North Korea despite signs that the country is undertaking an ambitious weapons buildup.

There are moves in Congress to scuttle a four-year-old peacetime nuclear pact with the communist regime.

In the statement, North Korea referred to seven rounds of talks held over the past two weeks in New York.

From the beginning of the talks, the US side raised the issue of suspicious `underground facility' and attempted to brand (North Korea) as the breacher of the agreed framework... If the US allegations are proved groundless through a visit to the site, the US is obliged to makeappropriate compensation to (North Korea), particularly, for slandering and disgracing (North Korea). Our position in this regard will remain unchanged in the future,'' the North Korean statement said.

It did not say what compensation was sought.

The communist regime has also demanded compensation from the United States for ``slander, insult and defamation'' for accusing it of firing a ballistic missile last week, a report from Tokyo said.

North Korea claims that what was launched on August 31 was a scientific satellite. US and Japanese officials say it was a ballistic missile, believed to be the new Taepo Dong 1, that soared over Japan and fell into the Pacific Ocean.