North Korea raised the stakes in a nuclear standoff yesterday by saying for the first time it had processed fuel rods that could be used to make atomic bombs, but analysts said it was a pre-talks tactic.

A North Korean Foreign Ministry statement said Pyongyang would continue to boost its nuclear deterrent because the United States remained hostile to the communist North. A vice foreign minister said Pyongyang would not pass on its nuclear capability to others.

"(North Korea) successfully finished the reprocessing of some 8,000 spent fuel rods," said the statement, published by the official KCNA news agency. It dismissed as groundless reports that more international talks could be held soon to try to end the crisis but, significantly, did not rule them out altogether.

Analysts, officials and diplomats said North Korea's comments fitted a familiar pattern used to try to force concessions from the United States and put pressure on ally China and, if anything, added strength to the view talks could take place soon.

"This is what North Korea always does before negotiating," said Jin Canrong, an international relations expert at the People's University in Beijing. "They throw out a few new balls."

He said China would insist that the North participate in more six-way talks including Japan, Russia, South Korea and the US and predicted that they would take place in November after this month's APEC summit of Pacific Rim leaders in Bangkok.

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