China banks stop cash flow to N Korea

Banks in China may halt transactions with North Korea in yet another form of pressure from Beijing to get its ally to not go forward with any more nuclear tests and return to talks, the Wall Street Journal reported. At the same time, a high-ranking envoy met with North Korean leader Kim Jong Il in Pyongyang, according to China's Foreign Ministry. North Korea tested a nuclear device on October 9 and speculation of an upcoming second test has led to a flurry of diplomatic activity. Officials at four commercial banks in China told the newspaper that they have stopped moving funds to or from the country but did not know how long the block would last.