Two months before North Korea tested its first nuclear weapon, President Bush was asked about a Treasury Department investigation of North Korean counterfeiting of $100 bills, which had ruptured talks on ending Pyongyang's nuclear programs. "Counterfeiting U.S. dollars is an issue that every president ought to be concerned about," he replied bluntly during an August news conference. "And when you catch people counterfeiting your money, you need to do something about it."

Yesterday, the Bush administration agreed to allow those suspected counterfeiters, along with other North Koreans suspected of money laundering and other fraud, to get their money back -- with no strings attached -- in the hopes it will ensure that North Korea shuts down its nuclear reactor by the end of the week. About $25 million had been frozen by Macau authorities, with about half clearly derived from criminal enterprises, U.S. officials said.

John R. Bolton, the former U.N. ambassador who has emerged as a critic of the nuclear deal, said the retreat is "an image of surrender that is going to be hard to erase." Returning the money to entities that committed fraud "will have a dilapidating effect on bringing sanctions against Iran and other rogue states," he said. "It is a terrible symbol."

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