Abstract
On 12 September 1999, US and North Korean negotiators reached what may be a historic compromise in Berlin. In return for a North promise to suspend its programme of long-range missile development, the US lifted most economic sanctions against the isolated communist state. In the short term, the effects of this are likely to be limited, as the North Korean economy offers few opportunities for successful investment. In the longer term, however, there is some hope that relations may thaw further. In particular, Pyongyang's cooperation over missile suggests that the North Korean leadership may now recognise that using missile and nuclear programmes as a means of pressure is largely futile. So far this has only other states in resistance, and reduced the communist regime's room for diplomatic manoeuvre.
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