"The six party talks remained stalemated since November 2005 when North Korea announced its second boycott of the talks (the first boycott was from August 2004 to July 2005), this time declaring that it would not attend the negotiations as long as the United States maintained 'financial sanctions' against the Banco Delta of Macau. In September 2005, the U.S. Treasury Department had issued a notice calling on U.S. financial institutions to cease dealing with Banco Delta, which the Treasury Department charged was complicit in North Korean illegal activities such as counterfeiting U.S. currency and drug trafficking. U.S. officials stated that it would continue to pursue measures against North Korean illegal activities. The New York Times reported on May 18, 2006, that the Bush Administration was considering proposing to North Korea negotiation of a Korean peace treaty if North Korea ended its boycott of the six party talks. According to press reports, Senator Richard Lugar had prepared a draft of legislation on the North Korean nuclear issue which would have the United States offer North Korea diplomatic relations and energy assistance in return for a dismantlement of North Korea's plutonium nuclear program."
CRS Issue Brief for Congress, IB91141