North Korea has urged talks with the United States during birthday celebrations for 'peerlessly brilliant' leader Kim Jong Il, as its economy worsens and hundreds reportedly starve to death.
Children received gift bags of sweets and biscuits, and Kim Jong-Il's 68th birthday has also been marked by a synchronised swimming display and a festival celebrating the national "Kimjongilia" flower, state media reported.
A meeting Monday of senior communist party, army and state officials lauded Kim "as the most outstanding political elder and the peerlessly brilliant commander of the present era".
In contrast to last year's birthday, when the North threatened South Korea and vowed to defy the world with a ballistic missile launch, the tone of the meeting was softer as the regime grapples with economic woes.
Number two leader Kim Yong-Nam stressed the need to end hostile relations with the United States "through dialogue and negotiations", and noted a "steadfast" desire to improve inter-Korean relations and raise living standards.
The North's rocket launch last April brought international censure, causing it to quit six-party nuclear disarmament talks.
It staged a second atomic weapons test in May and the United Nations responded with tighter sanctions, which have hampered lucrative weapons exports.
On the heels of a poor harvest, a bungled currency revaluation last November reportedly intensified severe food shortages, sent prices soaring and fuelled unrest in the tightly controlled state.
Seoul-based welfare group Good Friends, citing what it said was a survey by the North's ruling party, said about 2,000 people had starved to death nationwide this winter -- partly because of the currency change.
It was not possible to confirm the death toll. But a South Korean state research institute has said the North is expected to run short of 1.29 million tons of grain this year, equivalent to almost four months' supply.
Kim's own health is also the subject of speculation after he suffered a stroke in August 2008. He is widely reported to be preparing for the eventual succession of his youngest son Jong-Un.
Under pressure from ally China, the North in recent months has expressed readiness to return to nuclear talks. But first it wants sanctions lifted and a US commitment to discuss a formal peace treaty -- conditions rejected by Washington.
Paik Haksoon, of Seoul's private Sejong Institute think-tank, said the North had toned down the rhetoric because it "is implementing a strategy for its survival and prosperity in the 21st century.
"What it needs as an 'exit' strategy is to improve ties with the United States, Japan and South Korea, and then to get help from them to survive," Paik told AFP.
"North Korea needs to supply ample consumer goods to enhance the living standards of people and pave the way for becoming a 'powerful and prosperous nation' -- as pledged."
Pyongyang has set this goal for 2012, the 100th anniversary of the birthday of Kim Il-Sung, who was the country's founder and father of the current ruler.
Paik said he expects North Korea and the United States to hold talks on narrowing their differences early next month, with six-party talks resuming later in March.
The North's news agency reported a festive mood, with people showing "heartfelt gratitude and respect" for Kim.
Across the heavily fortified border, South Korean defectors and other activists launched 20,000 balloon-borne leaflets into the North denouncing the leader as a dictator.
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