1.   An EU source in Strasbourg, France, speaking on condition of anonymity, said talk of sanctions would be dropped once the trawler was released.

2.   But the EU threatened new sanctions against Canada unless it releases the trawler.

3.   Talks began Thursday after Canada released the trawler Estai on bond.

4.   South Korea was disappointed when North Korea failed to reciprocate by releasing the trawler, seized when it stayed into its western territorial waters.

5.   The ambassadors are expected to meet later this week to discuss possible trade sanctions if the trawler Estai is not released.

6.   The EU agreed to talks and backed away from a threat of trade sanctions after Canada released the trawler Estai on Wednesday.

7.   But the move has drawn fire from the European Union which decided on Monday to break off all formal contacts with Canada until the Spanish trawler is released.

8.   EU fishing commissioner Emma Bonino on Wednesday reiterated a threat to impose trade sanctions on Canada if it did not release the seized Spanish trawler the Estai.

9.   Ottawa denounced the EU decision to break off all formal contacts with Ottawa until it releases the trawler.

10.   The EU decided on Monday to break off all formal contacts with Canada until the Spanish trawler is released.