PANMUNJOM (AFP) - North Korea, accusing Washington of breaking a nuclear disarmament deal, said Friday it is working to restart its atomic reactor and no longer wants US concessions promised under the pact. "We are making thorough preparations to restore (nuclear facilities)," said Foreign Ministry official Hyon Hak-Bong. "You may say we have already started work to restore them to their original status," he told reporters at the border truce village of Panmunjom before the start of talks between the two Koreas on energy aid. The Foreign Ministry in Pyongyang said later that work has been under way "since some time ago" to restore the plutonium-producing reactor in response to the US failure to drop the North from a terrorism blacklist. "Now that the US true colours are brought to light, the DPRK (North Korea) neither wishes to be delisted as a 'state sponsor of terrorism' nor expects such a thing to happen," a Ministry spokesman told the official news agency. "It will go its own way." Hyon said demands for what he called "forceful inspections" of nuclear sites are not part of the six-party deal. He said the US is breaching the agreement by failing to drop the terrorism designation, which blocks some aid. Similar demands for a "robber-like inspection method" led to war in Iraq, he said in opening remarks at the Panmunjom talks, adding that the US wants "to go anywhere at any time to collect samples and carry out examinations with measuring equipment." Hyon said the North had "perfectly and flawlessly" completed 90pc of disablement work including the extraction of 4,740 spent fuel rods. In return for disablement, negotiating partners promised the impoverished state one million tons of heavy fuel oil or equivalent energy aid. Nearly half has so far been delivered and Hwang Joon-Kook, chief of the South Korean delegation, said the rest would be sent. "We also want to make sure that the six-party process does not go backward," Hwang said in his own opening remarks. In Seoul, Foreign Minister Yu Myung-Hwan said it is unclear whether the North intends to turn the nuclear clock back "or whether it is another bargaining move." A senior South Korean Foreign Ministry official said Friday's talks reached no agreement and the two sides failed to set a date for the next meeting. "I think North Korea is still interested in the six-party process," the official told reporters on condition of anonymity. Meanwhile, the US State Department said North Korea has not restarted its nuclear plant at Yongbyon but is moving "closer and closer" to doing so. "They haven't got that point yet and we would urge them not to get to that point," State Department spokesman Sean McCormack told reporters during the daily briefing. "They have a choice. They can go down the pathway of having different and better relationship with the world... or they can keep themselves isolated, move the process backward. So we'll see," he said. "I don't think we're to the point yet of there having fully reversed what they have done," he said.