US retains North Sudan on terror list.

WASHINGTON – The United States has ruled out dropping North Sudan from a terrorism list, restoring a US ambassador and taking…

WASHINGTON – The United States has ruled out dropping North Sudan from a terrorism list, restoring a US ambassador and taking other steps to normalise relations if Khartoum continues to occupy the oil-producing region of Abyei.

Sudan’s northern army yesterday vowed to hold territory it seized over the weekend in the disputed region, defying a UN demand it withdraw and pushing the north and south closer to conflict as the south prepares to secede on July 9th.

Analysts fear north-south fighting over Abyei could reignite civil war, a move that would plunge the nation back into chaos.

US special envoy for Sudan Princeton Lyman said the US had started the process of dropping the North from the state sponsors of terrorism list, was considering naming a US ambassador to Khartoum after July 9th and had held talks with the World Bank about the North’s foreign debt. – (Reuters)