NAPSNet Daily Report
wednesday, june 21, 2000

I. United States

II. Republic of Korea III. People's Republic of China

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I. United States

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1. US Sanctions on DPRK

The Office of International Information Programs, U.S. Department of State ("CLINTON STATEMENT JUNE 19 ON EASING SANCTIONS ON NORTH KOREA," Austin, 6/20/00) reported that US President Bill Clinton announced the lifting of sanctions against the DPRK. Clinton stated, "Since last September, when I announced the measures being implemented today to ease sanctions against North Korea, North Korea has maintained its moratorium on missile tests. These measures are supported by our close allies in the region and are part of the process of close coordination between the United States, Japan and North Korea recommended by former Secretary of Defense William Perry. We will continue to build on these efforts and on the recent North-South summit to achieve additional progress in addressing our common proliferation concerns."

The Office of International Information Programs, U.S. Department of State ("STATE DEPARTMENT FACT SHEET ON SANCTIONS AGAINST NORTH KOREA," Washington, 6/19/00) carried the text of a US State Department Fact Sheet on the US sanctions against the DPRK. "On September 17, 1999, in accordance with improvements in the US-DPRK relationship, the President announced that the United States would ease substantially sanctions in categories that fall under the Trading with the Enemy Act, the Export Administration Regulations, and the Defense Production Act. In view of North Korea's assurances that it will continue its moratorium on the testing of long-range ballistic missiles, the United States is implementing the sanctions easing on June 19, 2000. The sanctions easing will allow a wide range of exports and imports of US and DPRK commercial and consumer goods. Imports from North Korea will be allowed, subject to an approval process. Direct personal and commercial financial transactions will be allowed between U.S. and DPRK persons. Restrictions on investment will also be eased. Commercial U.S. ships and aircraft carrying U.S. goods will be allowed to call at DPRK ports. Regulations effecting the sanctions easing have been issued by the Departments of Treasury, Commerce and Transportation and are published in the June 19, 2000 Federal Register. This easing of sanctions does not affect our counter-terrorism or nonproliferation controls on North Korea, which prohibit exports of military and sensitive dual-use items and most types of U.S. assistance. Statutory restrictions, such as U.S. missile sanctions, will remain in place. Restrictions on North Korea based on multilateral arrangements also will remain in place."

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2. DPRK Missile Tests The Associated Press (Seok Kyong-hwa, "N. KOREA PROMISES NO MISSILE TESTS," Seoul, 6/21/00) reported that the DPRK's Korean Central News Agency quoted the DPRK Foreign Ministry as saying that the US should not confine itself to symbolic partial lifting of sanctions on trade and investment. It also said that the DPRK promised to maintain a moratorium on long-range missile tests, and that the US action will facilitate efforts to set up high-level talks on improving ties. The DPRK proposed that Red Cross officials from the two Koreas meet at a hotel on Kumgang Mountain to discuss reuniting separated families, after the ROK earlier this week suggested that they meet at Panmunjom. ROK Unification Minister Park Jae-kyu said that one or two high-ranking DPRK officials will visit the ROK to prepare for a promised visit to Seoul by Kim Jong-il.

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3. US Troops in ROK

The Washington Post (Thomas E. Ricks and Steven Mufson, "KOREA SUMMIT MAY PORTEND CHANGES FOR U.S. MILITARY," 6/21/00 P. A7) carried an analytical article on what the inter-Korean summit could mean for US forces in the ROK. It quoted retired US Army Colonel Larry M. Wortzel, a former US military attache to the PRC who is now an analyst at the Heritage Foundation, as saying, "I think [the inter-Korean summit] will mean a significant rethinking and restructuring of U.S. forces in Asia. I think it still is possible that U.S. forces could be stationed in Korea and Japan 10 years from now, but in a very different form and configuration." US officials said they want to see concrete moves by the DPRK, such as a withdrawal of artillery from the demilitarized zone and abandonment of the effort to develop long-range missiles, before reevaluating assumptions behind the current US military force structure or the need for National Missile Defense systems. Some experts warn that peace will not necessarily mean tranquility, noting that the US military has been quietly planning for several years for peacekeeping in the DPRK should the regime there collapse to prevent millions of deaths from disease and starvation, and to prevent refugees from surging into the PRC and ROK. A US planner in the ROK said that one danger is, "There will be a huge amount of arms remaining," with more weapons inside the DPRK than existed in either Somalia or the former Yugoslavia. Douglas H. Paal, president of the Asia Pacific Policy Center, said that the DPRK has provided a convenient rationale for the US military posture in the region, arguing, "After that fig leaf is gone, we will have to look at whether we're really there for Korea or for other kinds of contingencies," such as the PRC.

The Washington Times (Rowan Scarborough, "TALK OF SOUTH KOREA PULLOUT DISCOURAGED," 6/20/00) reported that senior congressional and administration officials said on Monday that now is not the time to talk of withdrawing US troops from the ROK, noting that the DPRK still maintains thousands of troops on the border. US Representative Ike Skelton of Missouri, senior Democrat on the House Armed Services Committee, said, "You keep them there to ensure success. It's a long time between now and a less-dangerous, or a non- dangerous, peninsula. The North Koreans still have a massive military, and one meeting does not make a unified Korea. I would not move one troop until there was really substantial unification, and that would be sometime down the stream." Senator Carl Levin of Michigan, senior Democrat on the Senate Armed Services Committee, said, "I believe we should keep troops in South Korea as long as South Korea wants our troops in their country and as long as it is in our national interests to have them there. Both of these criteria are met at this time." Senator Jesse Helms said, "Yes, sir, it's time to consider it. If it's a temporary lull, we'll have to leave the people there for a while. But if it's for real, then we ought to make plans to bring those folks home."

The Associated Press (Christopher Torchia, "N. KOREA: US RAISES MILITARY TENSION," Seoul, 6/19/00) and The Associated Press (Christopher Torchia, "AMBIGUITY MAY SLOW KOREAN SUMMIT," Seoul, 6/17/00) reported that the DPRK's Korean Central News Agency carried a report by the Rodong Sinmun, a newspaper for the ruling DPRK's Korean Workers' Party, which criticized US policy toward the Korean Peninsula. The article stated, "The U.S. imperialists pretend to be interested in peace and detente in the Korean peninsula. However, all their acts only result in increasing the danger of war and escalating the tensions. The withdrawal of the U.S. forces from South Korea should be the first step to be taken by the U.S. to help the Koreans achieve the reunification of Korea." A White House official responded Sunday in Washington, saying, "In terms of reducing the number of troops in South Korea or pulling them out altogether - these are notions that we are nowhere near ready to address. So the fact that they remain does not mean that we prefer war." Victor Cha, a Korea expert at Georgetown University, said "Once you get past the toasts and salutations that we saw in Pyongyang, you still have the (militarized) border, you still have missiles, you still have nuclear weapons, potentially."

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4. ROK-DPRK Talks

Reuters ("S. KOREA TO PUSH FOR DISARMAMENT TALKS WITH NORTH," Seoul, 6/20/00) reported that ROK Unification Ministry spokesman Chung Kwang-kyu said that the ROK will promote disarmament talks with the DPRK. Chung quoted Unification Minister Park Jae-kyu as having said that, "the two Koreas would discuss disarmament issues" and "reunions of divided families would be made a continuing event after the first such event on August 15."

The Associated Press (Paul Shin, "PRESS: SEOUL PROPOSES RED CROSS TALKS," Seoul, 6/19/00) reported that the ROK's National Red Cross sent a telephone message to its DPRK counterpart proposing that a meeting be held at the border village of Panmunjom on Friday. An ROK Red Cross official said that they expected the DPRK to accept the proposal.

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5. DPRK-Japan Talks

The Associated Press (Paul Shin, "PRESS SEOUL PROPOSES RED CROSS TALKS," Seoul, 6/19/00) and Reuters ("N. KOREA SAYS DOOR OPEN FOR TALKS WITH JAPAN," Tokyo, 6/19/00) reported that the DPRK's Korean Central News Agency called for the resumption of Japan-DPRK talks. The report stated, "The DPRK has maintained a sincere approach to the talks with Japan from the view that the improvement of the DPRK-Japan relations is in full line with the interests of the two peoples and the need of the times and this stand and attitude remain unchanged. Therefore, Japan should not detour but is only requested to appear in the talks, if Japan is truly willing to shift the inglorious relations between the two countries to good neighborly ties." A Japanese government official said, "It is good that the North Korean side is willing to continue the talks. We will respond to North Korea after discussions with people concerned."

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6. DPRK Economy

The Associated Press (Paul Shin, "NORTH KOREA ECONOMY FINALLY GROWING," Seoul, 6/20/00) reported that Park Suk- sam, a senior analyst at the ROK's Bank of Korea, said that the worst is over for the DPRK economy. Park stated, "We believe that plus economic growth will continue in the North." In a preliminary report, the ROK's central Bank of Korea said that the DPRK's economy grew 6.2 percent in 1999, the first growth in nine years and a rate that officials said was sustainable. However, the DPRK economy still remained at 75 percent of that of 1989. The report estimated the DPRK's 1999 gross national product at US$15.8 billion, per capita income of US$714, and total trade of US$1.48 billion. On Tuesday, the ROK said that two ships carrying 23,000 tons of chemical fertilizer would arrive in the DPRK late Wednesday.

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7. DPRK Famine

Reuters (Stephanie Nebehay, "N.KOREA SEEKS $250 MILLION TO AVOID NEW FOOD CRISIS," Geneva, 6/20/00) reported that DPRK Deputy Foreign Minister Choe Su-hon appealed to donors Tuesday for US$250 million to avoid another food crisis. He said that the foreign funds would help the DPRK reach food self-sufficiency by 2002. Secret talks with the DPRK were attended by 22 donor countries, including the ROK, the PRC, Japan, Britain, Russia, and the US. Choe said, "Although the food crisis is alleviated through emergency assistance and support from the Agricultural Recovery and Environmental Protection (AREP) program, food shortages and malnutrition still prevail in several parts of the country. We can say that we are in a transitory stage. Unless these circumstances are properly handled another food crisis might recur." According to the UN Development Program (UNDP), the funds will buy fertilizer, fuel and agro-chemicals worth US$160 million, and some US$39 million will be used to rehabilitate the last 14 of a total 30 tree nurseries. Nay Htun of the UN Development Program told the delegates that the DPRK had increased its food production by 50 percent since 1997.

The Office of International Information Programs, U.S. Department of State ("REPRESENTATIVE TONY HALL JUNE 15 REMARKS ON KOREAN SUMMIT," 6/16/00) reported that US Representative Tony Hall, Democrat-Ohio, said that the recent summit meeting between ROK President Kim Dae-jung and DPRK leader Kim Jong-il should lead to more ROK aid. Hall stated, "I hope that President Kim will be generous in providing the tangible necessities -- food, fertilizer, medicines -- that will help so many people in the north."

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8. US Views of ROK-DPRK Summit

The Associated Press (George Gedda, "N. KOREA LEADER MOTIVES ANALYZED," Washington, 6/17/00) reported that former US Representative Stephen Solarz said that the inter-Korean summit was an extraordinary development. He added, however, "There is ample reason to be very cautious about the lions having laid down with the lambs." The article argued that Korea watchers in the US are hopeful, but also skeptical, about recent changes in DPRK behavior. Alluding to the US$450 million the ROK has budgeted this year for assistance to the DPRK, Solarz said, "A shaky North Korean system has just negotiated a huge infusion of foreign aid without making any concessions on nuclear issues."

The Los Angeles Times (Donald P. Gregg, "GOLDEN SUMMIT FOR TWO KOREAS," New York, 6/18/00) carried an editorial by Donald P. Gregg, Chairman of the Korea Society, who served as US Ambassador to the ROK From 1989 to 1993. Gregg argued that the recent inter-Korean summit "appears to have opened the way to a new era of reconciliation between North and South Korea, and gives hope to millions of Koreans that they may be able to see long-lost relatives cut off for a half- century." He said that the summit resulted from efforts by the ROK, the confluence of factors in the DPRK, and "rested on a solid foundation of regional approval; the positive post-summit comments from Beijing, Moscow and Tokyo are clear proof of this." The fact that during the inter-Korean summit "there was no mention in the accord of North Korean missiles, nuclear issues or the stationing of U.S. troops in Korea...(this) gives the parties maximum flexibility in the future. The central fact is, the issues that make the Korean Peninsula one of the world's most dangerous flash points are now being discussed by the people who can solve them: the Koreans."

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9. Papal Visit to DPRK

Reuters ("SOUTH KOREA ENVOY, VATICAN DISCUSS POPE TRIP TO NORTH," Rome, 6/17/00) reported that ROK Ambassador to the Vatican Bae Yang-il said that he discussed the possibility of the Pope visiting the DPRK. Bae stated, "Kim Jong-il has accepted the possibility of the Pope going to North Korea, but only verbally. It is not an official invitation." When Kim Dae-jung mentioned the idea of a papal visit to the DPRK during a papal audience in March, the Pope was reported to have said, "It would be a miracle if I ever visit the North."

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10. Korean War Anniversary

The Associated Press (Choe Sang-hun, "S. KOREA CUTS WAR COMMEMORATION," Seoul, 6/20/00) reported that the ROK Defense Ministry said that it has canceled a military parade and battle-scene reenactments that would have commemorated the 50th anniversary of the outbreak of the Korean War, and replaced them with more benign ceremonies, such as photo exhibitions and dinner parties for veterans. Choi Chong- tae, 70, leader of a group of decorated war veterans, said, "It's as if the government were telling the people to forget the war without even getting an apology from North Korea for starting the war." Other veterans accused ROK President Kim Dae-jung of trying too hard to please the DPRK, which they said has often repaid humanitarian aid from the ROK with armed infiltrations and a military buildup.

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11. Anti-US Protests in ROK

The Associated Press (Paul Shin, "PRESS: SEOUL PROPOSES RED CROSS TALKS," Seoul, 6/19/00, and Yoo Jae-suk, "SOUTH KOREAN VILLAGERS CLASH WITH POLICE NEAR U.S. BOMBING RANGE," Maehyang-ri, 6/17/00) reported that, over the weekend and continuing Monday, villagers and activists clashing with police near Maehyang-Ri were joined by workers and students. They demanded the closure of the US Air Force Koon-Ni bombing range. Suh Kyung-won, a former opposition legislator, stated, "What is the good of war exercises when the leaders of South and North Korea agree on peace and unification?"

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12. Russia-ROK Relations

The Associated Press ("RUSSIA OFFERS HELP ON KOREA TALKS," Moscow, 6/19/00) reported that the Kremlin press service reported that Russian President Vladimir Putin spoke June 19 with ROK President Kim Dae-jung and offered Russia's help in mediating peace talks between the DPRK and ROK. Putin congratulated the ROK's Kim for a successful inter-Korean summit meeting last week, and reportedly "underscored Russia's determination to do all it can to create the external conditions to guarantee the agreements between the North and South." ROK Deputy Foreign Minister Ban Ki-moon met with Russian foreign ministry officials in Moscow on June 19.

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13. US Use of "Rogue States" Term

The Office of International Information Programs, U.S. Department of State ("STATE DEPARTMENT NOON BRIEFING, JUNE 19, 2000," Washington, 6/19/00) and The Office of International Information Programs, U.S. Department of State ("JUNE 19 INTERVIEW OF ALBRIGHT ON DIANE REHM SHOW," Washington, 6/19/00) reported that US Secretary of State Madeleine Albright said that the US government is dropping the use of the term "rogue states" in reference to the DPRK and other countries. Albright stated, "We are now calling these states 'states of concern' because we are concerned about their support for terrorist activity, their development of missiles, their desire to disrupt the international system. North Korea remains on the terrorist list, and we are going to really be looking at how this relationship develops." State Department Spokesman Richard Boucher said, "The phrase 'states of concern' is a more general phrase.... What we see now is a certain evolution, different ways in different places." He stated that the new term is descriptive rather than any change in policy.

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14. Albright's Visit to Asia

The Office of International Information Programs, US Department of State ("STATE DEPARTMENT NOON BRIEFING, FRIDAY, JUNE 16, 2000," 6/16/00) reported that US State Department Spokesman Richard Boucher said that US Secretary of State Madeleine K. Albright will travel to PRC and the ROK June 20-25. He said the PRC trip will include talks to expand strategic dialogue, to discuss recent developments on the Korean Peninsula and in cross-Strait relations, nonproliferation issues, bilateral economic issues, including the recent passage by the US House of Representatives of PNTR status and human rights issues. In the ROK, she will discuss the inter-Korean summit with the ROK. Hwang Won-tak, President Kim Dae-jung's national security advisor, was to arrive in Washington on June 16 to meet at the US State Department with Albright and with the DPRK policy team, including Counselor Wendy Sherman, Assistant Secretary Stanley Roth and Special Envoy Ambassador Charles Kartman.

The Office of International Information Programs, U.S. Department of State ("JUNE 19 INTERVIEW OF ALBRIGHT ON DIANE REHM SHOW," Washington, 6/19/00) reported that US Secretary of State Madeleine Albright said that she plans to discuss nuclear weapons proliferation issues during her upcoming trip to the PRC. Albright stated, "We obviously have to talk to them about relations with Taiwan, the need to have a peaceful dialogue, and we had -- this is a concern obviously to us. Then we will talk about human rights, as we always do, and generally about the evolution of China and our very complex relationship with them."

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15. PRC-Taiwan Talks

Reuters (Alice Hung, "TAIWAN PRESIDENT CALLS FOR CHINA SUMMIT," Taipei, 6/20/00), Reuters (Benjamin Kang Lim, "CHINA SHUNS TAIWAN CALL FOR SUMMIT," Taipei, 6/20/00), and the Washington Post (John Pomfret, "TAIWAN'S PRESIDENT CALLS FOR SUMMIT WITH CHINA," Beijing, 6/20/00, P. A16) reported that Taiwan President Chen Shui-bian invited PRC President Jiang Zemin to hold a summit similar to the one between the leaders of the ROK and the DPRK. Chen stated, "I believe leaders of the two sides of the straits have wisdom and originality to rewrite history and create history." Chang King-yuh, formerly Taiwan's top policymaker on China affairs who now teaches diplomacy at National Chengchi University, said, "The two Koreas do not have a problem of whether there is one Korea or whether they are Korean. I would say the likelihood of a summit across the strait is very slim." The PRC ignored Chen's overtures, only reiterating its demand that Taiwan unambiguously embrace the "one China" policy. Chen had also said that Taiwan has not ruled out backing the PRC's bid to host the 2008 Olympics and offered to co-host some events if the PRC won the bid. He said Taiwan would not lift a ban on direct trade, transport and postal links with the PRC until the two sides resume talks that were frozen last July. He also said, "If the United States is willing, it can play a more active role. Keeping peace between the two sides of the strait is not just in Taiwan's interest, it is also in the United States' mutual interest."

The Washington Post (John Pomfret, "CHINA COOL TO TAIWAN SUMMIT," Beijing, 6/20/00, P. A16) reported that PRC Foreign Ministry spokesman Zhu Bangzao reiterated the PRC's policy that anything can be discussed under the precondition that Taiwan's leadership accept the one China principle. The article argued that compared with to the leadership of Mao Zedong and Deng Xiaoping, PRC President Jiang Zemin appears to be a timid bureaucrat, fearful that an intrepid maneuver might be criticized by any of the factions that compose the PRC's leadership. An unnamed Chinese researcher said, "Everyone is afraid of making a mistake these days. There is no bold thinking. So when an opportunity like this comes, no one advocates grabbing it because everyone is afraid of losing their jobs." However, a PRC scholar said, "Chen's move is being perceived here as another attempt to raise Taiwan's status to the level of a real country, be it South Korea or West Germany. Our leadership is obsessed with ensuring that they don't succeed. I personally think it doesn't matter and they should talk. But no one now in China is thinking about the big picture."

The Office of International Information Programs, US Department of State ("STATE DEPARTMENT NOON BRIEFING, TUESDAY, JUNE 20, 2000," 6/20/00) reported that State Department Spokesman Richard Boucher said that while the US is committed to promoting peace, stability and prosperity in Asia, it could not initiate a PRC-Taiwan dialogue. Boucher stated, "It is up to Beijing and Taipei to determine the basis for the dialogue and the modalities for the dialogue. Our abiding interest is in the peaceful resolution of the differences between the two sides." He also said that during her trip to the PRC, US Secretary of State Albright's discussions will include cross-straight relations, and she will repeat to the PRC the US view that they should resume their direct talks.

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16. Cross-Straits Relations

The Associated Press ("CHINA LEADER: TAIWAN VOTE IS A JOKE," Beijing, 6/21/00) reported that PRC Premier Zhu Rongji said that the idea that Chen Shui-bian was democratically elected as president of Taiwan is a "joke." Zhu stated, "In Taiwan, [Chen] only got 40 percent of the vote, he has no administrative experience and even they acknowledge that Taiwan engages in 'black-gold politics,'" using a popular Taiwanese phrase for political corruption.

The Associated Press ("BEIJING DEMANDS RULING TAIWAN PARTY DROP INDEPENDENCE PLANK," Beijing, 6/21/00) reported that the PRC official Xinhua News Agency said in a commentary Wednesday that Taiwanese President Chen Shui-bian's party should stop advocating formal independence for Taiwan, suggesting that such a move would help ease tensions. It said that statements in the platform of the Taiwanese Democratic Progressive Party for a plebiscite on establishing a renamed Republic of Taiwan are a "malignant tumor and stumbling block in the improvement of relations between the two sides."

The Los Angeles Times carried an opinion article (Richard H. Solomon and Patrick M. Cronin, "STRIKE NOW TO PREVENT WAR IN THE TAIWAN," 6/19/00) which said that the time is right for a serious consideration of cross-straits issues. The authors especially pointed to the inauguration of Chen Shui- bian as Taiwan's new president, and the US House of Representatives' vote in support of permanent normal trade relations for the PRC and the accompanying likelihood of World Trade Organization membership for both the PRC and Taiwan. They argued that the US should encourage "talks about talks ... actively support further attempts to advance practical cooperation in the areas of common interest across the strait, ... facilitate 'track II' encounters, ... [and] urge all parties to adhere to a period of military restraint in which no party would unilaterally change the military balance."

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17. US-PRC Drug Smuggling Agreement

The Washington Post (John Pomfret, "U.S., CHINA SIGN ANTI- DRUG PACT," Beijing, 6/20/00, P. A17) and the New York Times (Erik Eckholm, "U.S. AND CHINA AGREE ON MEASURES TO FIGHT ILLEGAL DRUGS," Beijing, 6/19/00) reported that the US and PRC signed their first law enforcement agreement on Tuesday, pledging to cooperate and share intelligence in fighting drug-related crime. Barry R. McCaffrey, director of the Office of National Drug Control Policy, predicted that the agreement will lead to US training of PRC drug officers and providing equipment to fight drug trafficking, and eventually to extraditing or at least deporting drug suspects wanted by each country. Yang Fengrui, director of drugs at the PRC Ministry of Public Security, said, "A hundred years ago in the Opium Wars, China was victimized and we can never forget that pain." He said the PRC was ready to exchange more information to solve drug cases, to exchange samples from drug seizures and to work together in controlling precursor chemicals.

The Office of International Information Programs, U.S. Department of State ("DRUG CONTROL POLICY CHIEF ON U.S.- CHINA AGREEMENT," 6/20/00) reported that General Barry R. McCaffrey, director of the White House Office of National Drug Control Policy (ONDCP), on June 19 said that the agreement between the US and the PRC on countering drug smuggling is an important moment in US-PRC relations. He also said, "We are concerned about alleged methamphetamine production and smuggling from North Korea. And we will want to learn more about this problem from Japanese authorities and other regional partners."

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18. PRC News Bureau in Washington

The Washington Times (Rowan Scarborough, "CHINA NEWS OFFICE TO OVERLOOK PENTAGON," Washington, 6/21/00) reported that the PRC's official Xinhua News Agency has purchased the seven-story Pentagon Ridge apartment building overlooking the US Department of Defense's Pentagon for its Washington news bureau. Rick Fisher, a PRC authority with the Jamestown Foundation, said, "This is shades of the Soviet grab for high ground in the '70s and '80s after we let them move into their new facilities on top of Georgetown. We soon discovered lasers and other listening devices for the new Soviet residents." Fisher, a former staffer to US Representative Christopher Cox, stated, "It is highly accepted that as part of its broad mosaic method of espionage that Xinhua reporters or other workers, or even facilities, would be candidates for espionage missions by the [PRC]." The Washington Times described Xinhua as directed by the PRC government and as a front for the PRC's Ministry of State Security (MSS). Jiang Liu, Xinhua's Washington bureau chief, responded, "It's a smear. You have no evidence of that. It's nonsense.... How can we spy on your Pentagon? I don't think your Pentagon is too vulnerable. Your Pentagon is very secure." Vincent Cannistraro, a former US Central Intelligence Agency intelligence officer and now a consultant on security, said, "All state organs in China have been tasked by various intelligence agencies to carry out intelligence missions. Everyone in the Chinese government plays a role in the government when they're asked, and that includes Xinhua."

II. Republic of Korea

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1. Inter-Korean Summit Follow-up

The Korea Herald ("S. KOREA TO LAUNCH BODY TO IMPLEMENT SUMMIT AGREEMENT," Seoul, 06/20/00) reported that a senior Chong Wa Dae official said on Monday that the ROK government will create an across-the-board panel to coordinate follow- up steps to the agreement reached in last week's summit talks between the leaders of the two Koreas. The panel, tentatively named the "South-North Reconciliation and Cooperation Promotion Committee," will be headed by Unification Minister Park Jae-kyu, the official said, speaking on condition of anonymity. He said that the committee is expected to be launched late this month or early next month. "This committee will oversee the work aimed at implementing the joint declaration signed by President Kim and North Korean leader Kim Jong-il," the official said. The official added that about 10 cabinet ministers will be named to the envisaged committee, which will have a planning task force. The planning task force will consist of five offices, one each to deal with family reunions, economic cooperation, social cooperation, Kim Jong-il's trip to Seoul, and reunification formulas.

The Korea Herald (Kim Ji-ho, "SOUTH, NORTH TO LAUNCH MINISTER-LEVEL TALKS TO IMPLEMENT SOUTH-NORTH JOINT DECLARATION," Seoul, 06/19/00) reported that ROK officials said that the two Koreas are likely to launch ministerial talks in July to implement measures agreed upon in the ROK- DPRK Joint Declaration last week. On Friday, ROK Minister of Finance and Economy Lee Hun-jai, who accompanied President Kim Dae-jung on his three-day trip to Pyongyang, said that officials of the two governments would meet next month to implement the agreements, including those on inter- Korean economic cooperation. ROK officials said that the talks would likely be held at Panmunjom. Several issues are expected to dominate the agenda for the scheduled talks, observers said. First of all, the two sides should extend discussions on their respective unification formulas, they said. Both sides should also arrange DPRK leader Kim Jong- il's return visit to Seoul, officials said. In the sports field, the ROK and the DPRK are expected to discuss forming a joint team for certain events, including table tennis and soccer, as well as a joint entry at the opening ceremony for the 2000 Sydney Olympic Games, they said.

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2. ROK-DPRK Red Cross Talks

The Korea Herald (Kim Ji-ho, "RED CROSS OFFICIALS TO DISCUSS FAMILY REUNIONS, MEETING PLACE FRIDAY," Seoul, 06/20/00) reported that ROK officials said on Monday that the ROK and DPRK Red Cross societies will hold a meeting on Friday to discuss the proposed reunions of separated family members. The ROK hopes the two sides will discuss not only exchange visits of dispersed family members, but also the establishment of permanent meeting points, either at Panmunjom or in the Mt. Kumgang area, they said.

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3. US Sanctions on DPRK

The Korea Herald (Shin Yong-bae, "U.S. LIFTING OF SANCTIONS EXPECTED TO BOOST MOOD OF DETENTE ON PENINSULA," Seoul, 06/20/00) and The Korea Times (Son Key-young, "US SANCTION LIFTING TOWARD NK TAKES EFFECT," Seoul, 06/20/00) reported that ROK analysts said on Monday that the official lifting of US economic sanctions imposed on the DPRK is expected to boost the atmosphere of detente on the peninsula resulting from the inter-Korean summit. The Clinton administration implemented its decision to partially lift its economic embargo by placing the measures in the Federal Register. "The U.S. action has a symbolic meaning that will have a positive effect on inter-Korean relations and Washington- Pyongyang relations," said Professor Yu Suk-ryul of the Institute of Foreign Affairs and National Security (IFANS), a government think tank. ROK news reports have claimed that in return for the US move, the DPRK plans to reaffirm its moratorium on long-range missile tests and express its hopes for the normalization of relations with the US. However, ROK analysts said that it is unlikely that the lifting of sanctions would immediately convince US firms to invest in the DPRK, given the DPRK's antiquated infrastructure and lack of a legal framework to protect foreign investment. They also pointed out that the new measures do not mean the US will remove it from its list of terror-sponsoring states. "The U.S. government seems to think that the exclusion of the North from the list will be possible only after Pyongyang has demonstrated a commitment not to develop weapons of mass destruction," said an analyst.

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4. DPRK View of US

The Korea Times ("NK STEPS UP CRITICISM AGAINST US AFTER SUMMIT," Seoul, 06/20/00) reported that ROK Unification Ministry officials said on Monday that the DPRK is stepping up criticism of the US following the inter-Korean summmit last week. "The South Korea-based U.S. ambassador said the North-South top-level talks on June 13 had a tough road ahead, saying it was necessary to refrain from excessive expectations. This reveals their evil intention of perpetuating the division of Korea, which is an unpardonable challenge to the Korean people," said Rodong Shinmun, the ruling DPRK Workers' Part newspaper, in an editorial. DPRK watchers in the ROK said that the DPRK's criticism is aimed at gaining the upper hand in future talks with the US and conveying their position to their future dialogue partners.

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5. US-ROK Policy Coordination

The Korea Herald (Chon Shi-yong,"INCREASED KOREA-U.S. CONTACTS SEEN FOR N.K. POLICY COORDINATION," Seoul, 06/19/00) reported that officials in Seoul and Washington said on Saturday that US Secretary of State Madeleine Albright would visit Seoul June 23-24 to hold follow-up discussions on the inter-Korean summit talks with ROK leaders. Albright will come to Seoul after a trip to the PRC, where she is expected to discuss the Pyongyang summit and DPRK leader Kim Jong-il's visit to Beijing late last month, the officials said. ROK officials said that Albright would meet with President Kim Dae-jung, Foreign Minister Lee Joung-binn and other senior officials during her stay in Seoul. "The U.S. secretary of state is coming to Seoul to fine-tune Korean issues in the wake of the Pyongyang summit," a Foreign Affairs and Trade Ministry official said.

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6. US Troops in ROK

The Korea Times ("PRESIDENT KIM STRESSES ON US TROOPS PRESENCE," Seoul, 06/19/00) reported that ROK President Kim Dae-jung said that he has told DPRK leader Kim Jong-il that the presence of the US troops in the ROK is necessary for maintaining stability not only on the Korean peninsula but in Northeast Asia. He made the remark in a luncheon meeting with Lee Hoi-chang, president of the opposition Grand National Party (GNP) Saturday at Chong Wa Dae, according to Chong Wa Dae spokesman Park Joon-young. The leaders of the two Koreas fully discussed the issue, but National Defense Commission Chairman Kim made no clear response, the spokesman said. President Kim also said that the DPRK seems to have abandoned its unification system proposal of a "Democratic Confederation of Koryo." Therefore, "a loose form of federation" that the DPRK presented during the summit talks means the maintenance of the current political systems of the two Koreas, the president told the GNP leader. Kim said that he told Chairman Kim that if the ROK abolishes the National Security Law, the DPRK would also have to scrap its criminal law and regulations of the Workers' Party, which calls for unifying Korea through force.

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7. Preparations for Inter-Korean Summit

The Korea Herald (Kim Ji-ho, "SPY AGENCY CHIEF SECRETLY VISITED PYONGYANG PRIOR TO SUMMIT," Seoul, 06/20/00) and The Korea Times (Kim In-ku, "NIS HEAD RUMORED TO HAVE VISITED NK BEFORE SUMMIT," Seoul, 06/19/00) reported that an ROK daily said on Monday that the ROK's state intelligence agency chief made a secret visit to the DPRK prior to the inter- Korean summit June 13-15 to pave the way for a successful meeting between the leaders of the two Koreas. According to the JoongAng Ilbo, Lim Dong-won, chief of the National Intelligence Service (NIS), visited Pyongyang around May 27 and met top DPRK leader Kim Jong-il and Kim Yong-sun, secretary of the Workers' Party. While in Pyongyang, Lim and Kim Yong-sun fine-tuned the schedule and agenda for the summit, as well as the contents of the two leaders' joint statements and protocols. They also completed a rough sketch of the ROK-DPRK Joint Declaration signed last Wednesday by President Kim Dae-jung and DPRK leader Kim Jong-il, JoongAng said. The NIS neither confirmed nor denied the report, but Unification Ministry officials indicated that it could be true.

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8. DPRK Visit to Syria

The Korea Herald ("N.K. CEREMONIAL HEAD OF STATE ARRIVES IN SYRIA TO EXPRESS CONDOLENCES," Seoul, 06/20/00) reported that DPRK ceremonial head of state Kim Yong-nam arrived in Syria on Monday to express his government's condolences to Bashar al-Assad, the son and designated successor of late Syrian President Hafez al-Assad, ROK officials said. "The North appears to have sent Kim Yong-nam to Syria belatedly, apparently because of its preparations for the recent inter- Korean summit," said an official at the ROK Ministry of Foreign Affairs and Trade.

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9. ROK-DPRK Military Relations

Chosun Ilbo (Yoo Yong-won, "DEFENSE MINISTRY TO REDEFINE NORTH KOREA'S MILITARY," Seoul, 06/19/00) reported that in order to give military backing for the Joint Agreement made by the two Koreas' leaders during the June 13-15 Pyongyang Summit Meeting, the ROK Ministry of National Defense (MND) announced Monday that it will abolish the term "Bukkoe" ("North Korean Puppet") and establish other concepts regarding the DPRK's army, defined as "Korea's main enemy." In addition, MND is considering other post-summit meeting measures such as giving the DPRK advanced notice of military exercises, including Ulchi Focus Lens. Also, the ministry is looking into conducting mutual exchange of military officials.

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10. ROK-DPRK Cultural Exchange

The Korea Herald (Kim Ji-soo, "SOUTH AND NORTH KOREAN UNIVERSITIES TO STRENGTHEN TIES," Seoul, 06/17/00) reported that a number of ROK universities are rushing to make contacts with DPRK schools. Ewha Womans University said that it plans to send 10 graduate students in DPRK studies to the DPRK for an October seminar with students from Pyongyang's Kim Il Sung University. Ewha University, whose president was among the 130-member summit delegation, has already received permission from the Unification Ministry to make contact with representatives of the school. The talks would deal mainly with DPRK's ideology of "juche" (self- reliance) and the structure of the DPRK government. Sungkyunkwan University, which forged an alliance with the DPRK's Koryo Sungkyunkwan University in April 1998, said that it would seek approval from the Unification Ministry to negotiate sisterhood ties with both Kim Il Sung University and Kimchaek University of Technology. Soongsil University officials said that it is also pursuing sisterhood relations with Kim Il Sung University. Kyungil University, in the ROK's Kyongsang Province, announced that it is in negotiations with DPRK university officials to hold a seminar on the joint development of social infrastructure on the Korean Peninsula. The Unification Ministry gave approval earlier for its contacts with DPRK.

III. People's Republic of China

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1. ROK-DPRK Relations

China Daily ("MOVE TOWARDS REUNIFICATION," 6/20/00, P11) reported that the ROK Red Cross has invited officials from the DPRK to meet on June 23 to discuss reunions of families separated since the Korean War. An ROK Unification Ministry said that the DPRK Red Cross over the weekend suggested a meeting, and the ROK's Red Cross replied on June 19. The ROK Red Cross offered to meet on June 23 at Panmunjom, the report said.

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2. ROK-Russian Relations

China Daily ("FM TO VISIT RUSSIA," 6/20/00, P11) reported that ROK officials said that Lee Joung-binn, foreign minister of the ROK, will visit Russia later this month to discuss the outcome of last week's inter-Korea summit. During talks with his Russian counterpart, Igor Ivanov, on June 28-29, Lee will also discuss the ROK's plan to invite Russian President Vladimir Putin to Seoul, the report said.

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3. DPRK-US Relations

People's Daily (Ma Shikun and Zhang Yong, "US RELAXES ECONOMIC SANCTIONS ON DPRK," Washington, 6/21/00, P6) reported that the US began on June 19 to implement its decision of partly easing economic sanctions against the DPRK. The decision was made by US President Bill Clinton last September. According to the US government's announcement, the report said, trade of most goods between the countries is now allowed, as are direct personal and commercial financial transactions, investments, shipping cargo and commercial flights. However, the report said, the US policy of anti-terrorism and nonproliferation against the DPRK was still effective, and the US was not allowed to provide the DPRK any aid except humanitarian aid. The report also said that the US agriculture secretary announced on June 15 that the US would provide 50,000 tons of wheat to the DPRK as emergency aid.

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4. DPRK-Japanese Relations

China Daily ("DPRK WILL TALK TO JAPAN," 6/20/00, P11) reported that the DPRK urged Japan on June 19 to normalize relations, saying that it is open to talks. The DPRK made this suggestion in response to the "strong will" reportedly expressed by Japanese Prime Minister Yoshiro Mori to normalize relations, according to the report. Mori reportedly asked President Kim Dae-jung of the ROK to convey his will to improve ties with the DPRK during the summit with the DPRK's leader, Kim Jong-il, last week.

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5. DPRK-PRC Relations

People's Liberation Army Daily ("CHI HAOTIAN MEETS WITH DPRK GUESTS," Beijing, 6/18/00, P1) reported that PRC Defense Minister Chi Haotian on June 17 met with Kim Il- chol, minister of the People's Armed Forces of the DPRK. Chi, who also serves as a vice-chairman of the Central Military Commission and a State Councilor, said that the PRC and the DPRK are good neighbors, and their peoples and armed forces have forged deep friendships in the process of socialist revolution and construction. The report said that Chi extended congratulations concerning the recent successful meeting between the heads of the DPRK and the ROK. He expressed his belief that the summit would contribute to maintaining peace and stability on Korean Peninsula. Kim Il-chol said that the friendship between the DPRK and the PRC had a long history. He believed that DPRK- Chinese friendship would continue to be consolidated and developed.

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6. PRC View of Inter-Korea Summit

People's Daily ("PRESIDENT LAUDS KOREAN SUMMIT," Beijing, 6/17/00, P1) reported that PRC President Jiang Zemin said on June 15 that he was elated by the successful inter-Korean summit. Jiang made the remarks in letters to the leaders of the DPRK and ROK. In his letter to DPRK leader Kim Jong-il, Jiang said that the summit and its results reflect the Korean people's long-cherished wish for national reunification. He reiterated the PRC's consistent opinion that the situation on Korean Peninsula should be resolved through dialogue and negotiations. Jiang also told the DPRK leader that the PRC will continue to contribute to the maintenance of peace and stability on the peninsula. Hailing the summit as "a major event of historical significance," Jiang, in his letter to the ROK President Kim Dae-jung, said that the summit produced concrete achievements and made a valuable contribution to peace and stability on the peninsula. Jiang expressed the belief that the summit is a good beginning for better mutual understanding and trust as well as deepened cooperation between the two sides. This will lead to the eventual realization of independent and peaceful reunification of the peninsula, he said.

China Daily (Qin Yongchun, "PENINSULA MOVES TO PEACE," 6/19/00, P4) carried an article written by Qin Yongchun, a research fellow with the Center for Peace and Development Studies, saying that by now the two sides of the Korean Peninsula have entered a crucial stage. Handled properly, the auspicious start will bring good results, the article said, adding that if not, a stalemate is still possible. After reviewing policies of the US, Japan, the ROK and the DPRK on the Korea issue, the author said that now that the two Koreas have held summit talks, it seems that the peace process will have a bright future. He pointed out, however, that there still stand many hurdles to overcome. According to the author, the hegemonic mentality of the US is the biggest obstacle in the peace process. Besides, Japan and the ROK also have limitations on their diplomatic flexibility, said the article. On the whole, Qin said, the probability of unexpected frictions is small, but not impossible.

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7. ROK-PRC Relations

Business Weekly (Zhang Yan, "GARLIC TRIGGERS TRADE DISPUTE," 06/18-24/00, P1) reported that a trade dispute between the PRC and the ROK concerning garlic has cast a shadow over the two countries' trade relations. A Beijing- based trade analyst said, "The trade volume currently involved in the trade dispute is not large enough to seriously influence bilateral trade, but the effect could grow if the situation worsens." The total volume of the products involved in the trade dispute adds up to US$428.5 million, accounting for 1.7 per cent of the two countries' aggregate trade volume in 1999, the report said. The volume of trade involved in the trade war becomes even less significant in light of the fact that Sino-ROK bilateral trade during the first four months of this year increased by 47.2 percent, the report said. Statistics from China's General Administration of Customs reveal that during the first four months of this year, two-way trade between China and the ROK rose to US$10.1 billion. China's exports to the ROK leaped by 60.3 percent over a year earlier to US$3.3 billion and its imports grew by 41.5 percent to US$6.8 billion. According to China Economic Times, the ROK is conducting anti-dumping investigations on PRC bicycles and soda ash, a raw material used in manufacturing batteries and glass. An official from the ROK Embassy to the PRC said that his government is actively seeking dialogue with the Ministry of Foreign Trade and Economic Cooperation (MOFTEC) of China to solve the issue.

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8. PRC-US Relations

China Daily (Shao Zongwei, "NATION SHOCKED AT ILLEGAL IMMIGRANTS' DEATHS," 6/21/00, P1) reported that when commenting on US Secretary of State Madeleine Albright's visit to China on June 22 and 23, PRC Foreign Ministry spokesman Zhu Bangzao said on June 20 that the two sides will exchange views on bilateral ties and issues of common concern. Zhu said that Albright will hold talks with PRC leaders and PRC Foreign Minister Tang Jiaxuan. Zhu urged the US to abide by the three PRC-US joint communiques and related commitments so as to further improve the bilateral relations impaired by the bombing of the PRC Embassy in Belgrade 13 months ago. At the briefing, Zhu again voiced the PRC's opposition to US development of the Theater Missile Defense system and the National Missile Defense system. "China has always believed that the excuses the United States uses to justify its developments cannot hold water," said Zhu.

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9. Taiwan Issue

People's Daily ("MAINLAND WELCOMES TAIWANESE," Beijing, 6/21/00, P4) reported that when commenting on Taiwan media's report that some parties and groups in Taiwan hope to visit the PRC, Chen Yunlin, director of the Taiwan Work Office of the Communist Party of China Central Committee, said in an interview on June 20 that Taiwan political parties and Taiwanese people are welcome to exchange views with the PRC on cross-Straits relations and peaceful reunification. Chen, also director of the Taiwan Affairs Office under the State Council, said that the PRC has made wide-ranging contacts with Taiwan parties, groups and individuals under the one-China principle. "We welcome different parties and people from Taiwan to exchange views with us on cross- Straits ties and peaceful reunification and to further eliminate misunderstanding and promoting mutual understanding," he said. The PRC is willing to work with Taiwanese groups that oppose "independence" and pursue reunification and actively boost economic cooperation, he said.

Jie Fang Daily (Liu Hong, "ACROSS TAIWAN STRAITS RELATIONS DIFFERENT FROM DPRK-ROK AND TWO GERMANS MODELS," 6/21/00, P6) published an article saying that the relationship between the mainland and Taiwan is different from the "two Germans model" or the "DPRK-ROK model". Liu Hong, a research fellow with the Taiwan Institute of China Academy of Social Sciences, emphasized in the article that the Taiwan issue, in respect to its nature, is an internal affair of China, while the separations of German and Korea were respectively recognized by the two related parties and the international community. Liu pointed out that the important reason for the realization of the DPRK-ROK summit is that both the DPRK and the ROK hold to the precondition that they belong to one nation and they exclude foreign interference and decide to self-determine the realization of national reunification. That is one of the significant enlightenments from the DPRK-ROK summit, Liu said. The author urged the Taiwan leader to extricate himself from the "load" which he bore before he was elected and to consider the across Straits relationship in the long-term and the whole interests of the Chinese nation.

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Produced by the Nautilus Institute for Security and Sustainable Development in partnership with:
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Monash Asia Institute,
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Timothy L. Savage:
Berkeley, California, United States

Gee Gee Wong:
Berkeley, California, United States

Kim Hee-sun:
Seoul, Republic of Korea

Hiroyasu Akutsu:
Tokyo, Japan

Peter Razvin:
Moscow, Russian Federation

Chunsi Wu:
Shanghai, People's Republic of China

Dingli Shen:
Shanghai, People's Republic of China

John McKay:
Clayton, Australia

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