U.N. Secretary-General Kofi Annan warned on Wednesday that the world was "sleepwalking" toward nuclear proliferation and must urgently revive efforts to halt the spread of nuclear weapons.

UN Secretary-General Kofi Annan addresses the inaugural session of the newly created Human Rights Council at the UN European headquarters in Geneva, June 19, 2006. [Reuters]

Addressing the United Nations Conference on Disarmament, he said that without moves to halt proliferation, more and more states were likely to seek nuclear weapons which could also fall into non-state hands.

"The international community seems almost to be sleepwalking down that latter path -- not by conscious choice, but rather through miscalculation, sterile debate and paralysis," Annan said.

He was speaking against a backdrop of international tension over North Korea's nuclear program and Western fears that Iran may be trying to develop nuclear arms.

North Korea says it is preparing to test a long-range missile capable of carrying a nuclear warhead as far as Alaska in what the United States,

South Korea and Japan have called a grave threat to regional security.

"I hope the leader of the DPRK (North Korea) will listen to what the world is telling them, and take care not to make the situation on the peninsular even more complicated," Annan said in his speech to the 65-state conference.

For its part, Iran needs to reassure the world of its peaceful intentions by cooperating fully with the International Atomic Energy Agency (IAEA), he added.

Globally, he called for a major drive toward nuclear disarmament to restore confidence between the nuclear powers and the rest of the international community, along with the strengthening of the Nuclear Non-Proliferation Treaty.

The argument between those wanting to see moves on disarmament before agreeing further non-proliferation measures and those who demand the opposite "is self-defeating," he said.

"If we want to avoid a cascade of nuclear proliferation, we need a major international effort," he said.

There was an urgent need to revive the Geneva-based arms' forum, whose last negotiating success was the Comprehensive Test Ban treaty nine years ago -- even though it has still not come into force.

Negotiations must start on halting the production of fissile material as well as talks on preventing the weaponisation of outer space, Annan said.

The United States opposes any negotiations on outer space, while Russia and China want discussions to move forward on both fronts.

"If any single group has the collective power to wake the world ... it is the Conference on Disarmament," Annan said.