(Adds Abe-Bush conversation in paragraph 14) By Linda Sieg TOKYO, Feb 14 (Reuters) - Japan insisted on Wednesday that it would push North Korea to settle a feud over citizens kidnapped decades ago, but analysts said Tokyo's stance could leave it isolated after this week's energy-for-arms deal. Japan says it will not give economic assistance to its secretive neighbour unless the dispute over the abductees -- an emotive one for many Japanese -- is somehow resolved. "We have made clear there will be no normalisation of diplomatic ties unless the abduction issue is settled," Japanese Prime Minister Shinzo Abe told a parliamentary panel. "I want to aim at a resolution through our basic negotiation stance of dialogue and pressure." The deal clinched at six-party talks in Beijing, just months after North Korea's first nuclear test last October, requires Pyongyang to close its Yongbyon reactor within 60 days in exchange for 50,000 tonnes of fuel oil or equivalent aid. Another 950,000 tonnes or the equivalent would be forthcoming when North Korea takes further steps to disable its nuclear capabilities -- but not from Japan, if it sticks to its demand. Abe, who owes much of his past public support to his tough talk toward Pyongyang, is unlikely to want to shift gears ahead of a July upper house election -- especially since his popularity is already sagging due to doubts about his leadership. "Abe must choose between international cooperation and domestic public opinion," said Masao Okonogi, a Korea expert at Keio University in Tokyo. "He won't want to change his position until after the upper house election," Okonogi said. "But then, Japan could become internationally isolated." The six-party framework brings together the two Koreas, China, the United States, Japan and Russia. LOST CHANCE FOR ROLE? Japan was a big contributor to a 1994 multilateral agreement, which later collapsed, under which North Korea agreed to freeze its nuclear programme in exchange for energy assistance. In 2002, however, North Korea outraged many ordinary Japanese by admitting that Pyongyang had snatched Japanese nationals from their homeland in the 1970s and 1980s to help train its spies in language and culture. Five were repatriated with their North Korea-born children and Pyongyang says the other eight are dead. Japan is pressing for better information about the eight and another three Tokyo says were also kidnapped, and wants any survivors sent home. North Korea says the matter is closed. Japan also wants the abductions to be considered when Washington starts the process of removing North Korea from its list of state sponsors of terrorism, another key part of the Beijing pact, Chief Cabinet Secretary Yasuhisa Shiozaki said. "The United States understands this," he told reporters. Abe and U.S. President George W. Bush vowed in a phone call later on Wednesday to continue working together on the abandonment of North Korea's nuclear programmes as well as on the abductions issue, Kyodo news cited Japanese officials as saying. Japan could face pressure from the United States and other six-party partners to provide aid if progress were made in implementing other parts of this week's agreement, analysts said. Tokyo could also lose a chance to play a bigger diplomatic role in the region if it stood on the sidelines. "Japan should play a positive role," said Shunji Hiraiwa, a Korea expert at Shizuoka Prefectural University. "That would boost Japan's presence in Asia and indirectly contribute to resolving bilateral problems."
