HIGHLIGHTS: The Battle against Extremist Violence Tops the Agenda for The Second Year||Disarming Iraq and North Korea Dominate Discussions at the Summit||Washington, Tokyo & Seoul Issue Joint Statement on North Korea||Leaders Agree Security Essential Ingredient of Prosperity||Washington Wants a Crusade against What it Calls "Terror"|| STORY: Leaders of rich and poor Pacific Rim nations united behind a breakthrough deal on Saturday to stifle fund flows to terrorists, tighten security at airports and protect people and trade from fresh attacks.

More than 13 months after the Sept. 11 attacks on New York and Washington, the battle against extremist violence topped the agenda for a second year at the 21-member Asia Pacific Economic Cooperation, or APEC, summit.

At a retreat to discuss how to nurture business without giving in to terror, impeding trade or hurting the poor, APEC leaders reached a landmark deal to enforce ways to curb furtive financing of groups such as Osama bin Laden's al Qaeda.

Dominating the talks was President Bush's declared war on terror and on al Qaeda, suspect number one in the Sept. 11 strikes and this month's bombings in Bali.

Another dominant theme was the stunning revelation by the unpredictable communist rulers of North Korea this month that they had violated a 1994 agreement with the United States, Japan and South Korea by developing a nuclear arms program.

Bush issued a joint statement with Japanese Prime Minister Junichiro Koizumi and Korea's Kim Dae-jung, demanding Pyongyang dismantle its nuclear arms program and warning that its ties with the international community rested on a prompt response.

The statement spelled out no consequences for inaction.

Bush, who has been threatening military action against Iraq over Baghdad's suspected weapons of mass destruction, said the United States "has no intention of invading North Korea."

TRADE AND SECURITY INSEPARABLE

The issue of trade, the moving force behind the launch of APEC in 1989, inched back toward center stage as members from as far apart as Peru and Papua New Guinea agreed that security was an essential ingredient of prosperity.

Several leaders dismissed criticism that geopolitics and the campaign against terrorism had diverted APEC from its mission.
The dangers were underscored by Russian President Vladimir Putin's decision to stay home to deal with a hostage-taking by Chechen militants in a Moscow theater. The siege ended on Saturday.

Secretary of State Colin Powell said the siege was a reason why terrorism was a key topic again this year at APEC.

"There's no country that is immune, there is no country that is not a potential victim of terrorism. And that's why it has to be an international crusade of the kind that President Bush launched after 9/11 and is now leading," he said.

PHTO CAPTION

Peruvian President Alejandro Toledo speaks during the Asia Pacific Economic Cooperation (news - web sites) (APEC) summit in Cabo San Lucas, Mexico, Saturday, Oct. 26, 2002. (AP Photo/Tomas Munit