Clinton Says Sudan, S.Sudan Must Strike 'Compromise' Deal

The two Sudans must strike an urgent compromise deal to end bitter disputes, U.S. Secretary of State Hillary Clinton said Friday, warning the newly separated nations they "remain inextricably linked.”

Sudan and South Sudan "will need to compromise to close the remaining gaps between them," Clinton said, after meeting South Sudan's President Salva Kiir.

"It is urgent that both sides, North and South, follow through and reach timely agreements on all outstanding issues, including oil revenue sharing, security, citizenship and border demarcation," she added.

Clinton, the most senior U.S. official to visit since South Sudan's independence last year, highlighted Washington's concern over the bitter dispute between Juba and Sudan.

Juba's government has yet to agree on a raft of issues with the rump state of Sudan, left unresolved after they split in July 2011, including border demarcation and contested areas in oil-rich regions.

The U.N. Security Council gave the two countries, which earlier this year came close to a return to all-out war, until August 2 to reach a deal or face sanctions. That deadline elapsed Thursday.

Clinton warned that "significant challenges" face the world's youngest nation, with "persistent poverty in a land rich with natural resources."

Those include "continued violence along the border with Sudan, unresolved ethnic tensions, gaps in infrastructure and the rule of law," she told reporters.

"Continued progress hinges on South Sudan's ability to overcome these challenges," Clinton added.

At independence, the land-locked South took with it two thirds of the region's oil, but the pipelines and processing facilities remained in the North.

In January, Juba cut off all oil production, crippling both economies, after accusing Khartoum of stealing its crude.

"While South Sudan and Sudan have become separate states, their fortunes remain inextricably linked," she added.

"The promise of prosperity rests on the prospects for peace. And South Sudan's ability to attract trade and investment depends on greater security on both sides of the border."