``Although the North Korean people's army showed its continued support in principle for the Korean armistice agreement, the two sides were unable to reach an agreement on the issue of reducing tensions in the West (Yellow) Sea,'' the UNC said in a statement.

The UNC said that ``measures'' aimed at reducing the tension between the two sides had been proposed to the three North Korean generals at the talks in the truce village of Panmunjom.

These included a call for both sides to ``withdraw their naval forces to their respective sides'' of the northern limit line (NLL), which the UN -- but not North Korea -- recognises as the international boundary between the two Koreas.

The UNC also expressed concern that ``continued naval intrusions could escalate tension in the region'' and called for North Korea torecognise the NLL, established by the UNC in 1953.

The two sides had met to discuss ways to ease the fast-mounting tension between North and South Korea amid an eight-day standoff between gunboats from both sides in a disputed area in the Yellow Sea.