tokyo/united nations unite state rule eventual possibility direct talk north korea deputy secretary state john j. sullivan say tuesday hours pyongyang warn nuclear war might break moment talk adversaries long urge china particular washington ally japan reluctant sit table pyongyang continue pursue goal develop nuclear-tipped missile capable hit unite state eventually rule possibility course direct talk sullivan say tokyo talk japanese counterpart focus diplomacy solve problem present dprk must however ally japan south korea elsewhere prepare bad diplomacy fail say dprk stand north korea official name democratic people republic korea washington state department spokeswoman heather nauert highlight u.s. diplomatic efforts sullivan others pressure north korea give weapons program encourage implementation international sanction nauert tell regular brief sanction choke money supply north korea feel effect even pyongyang show anywhere near desire talk hope diplomatic approach successful end nauert say add secretary state rex tillerson get optimistic guy u.s. government tension soar follow series weapons test north korea string increasingly bellicose exchange u.s. president donald trump north korean leader kim jong un leaflets apparently north korea call trump mad dog depict gruesome image turn across central seoul add unusually personal element north korean propaganda situation korean peninsula attention whole world focus reach touch-and-go point nuclear war may break moment north korea deputy u.n. ambassador kim ryong tell u.n. general assembly committee monday long one take part u.s. military action dprk north korea intention use threaten use nuclear weapons country accord kim prepare remark discussion nuclear weapons kim read section loud south korea unite state begin week-long joint naval drill water around korean peninsula monday involve 40 ship militaries include nuclear-powered uss ronald reagan aircraft carrier south korea defense ministry say north korean state media say tuesday ally desperate efforts block north korea advance show continue nuclear program last dprk fully ready u.s. resort include sanction pressure military option tremendous nuclear force self-defence irresistible strength self-reliance self-development official kcna news agency say commentary ask north korean envoy warn nuclear war chinese foreign ministry spokesman lu kang say would anyone interest china still hop party situation things korean peninsula highly complex sensitive exercise restraint benefit low tensions region lu tell daily news brief u.n. security council ratchet sanction north korea nuclear ballistic missile program since 2006. recent u.n. sanction ban export coal iron ore seafood aim cut third north total annual export billion experts say north korea scramble find alternative source hard currency keep economy afloat advance weapons program monday head cyber-intelligence bae systems plc baes.l say north korea lazarus hack group probably responsible recent cyber heist taiwan taiwan central news agency say last week hackers seek steal 60 million far eastern bank recover 500,000 bae systems others previously link lazarus 81-million cyber heist bangladesh central bank last year north korea recently allow citizens young 12 bet horse race first time country scramble unearth new source hard currency amid intensify international sanction punters previously risk three years hard labor gamble tightly control state grow importance private market mean people money spend leisure experts say lee sang-keun researcher institute unification study seoul ewha womans university say wealthy north koreans pay activities chinese u.s. currency many north koreans make lot money market dine hamburger restaurants go shop help fatten regime coffers part reason regime still financial latitude despite international sanction lee say u.s. official say rule eventual direct talk north korea