NAPSNet Daily Report
wednesday, may 30, 2001

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. Trilateral Coordination Meeting

Agence France Presse ("BUSH ADMINISTRATION SAYS DIALOGUE WITH NORTH KOREA POSSIBLE," Honolulu, 5/27/01) and the Associated Press ("US, JAPAN BACK SECOND KOREAN SUMMIT," Honolulu, 5/28/01) reported that US Assistant Secretary of State James Kelly met with ROK Deputy Foreign Minister Ambassador Yim Sung-joon and Japan's Director General of Asian and Oceanic Affairs Kunihiko Maru at the second set of talks held by the Trilateral Coordination Oversight Group (TCOG) since the Bush administration took office. Kelly said on August 27 that the US hopes to resume arms talks with the DPRK but only with more stringent verification safeguards than were in place during the administration of former US President Bill Clinton. Kelly said that his two-hour meetings with Yim and Kunihiko will help shape US policy in the region. The trilateral meeting followed one-on-one meetings between representatives of the three countries earlier. Kelly said that the parties discussed the possibility of direct talks between the US and the DPRK. Kelly stated, "As President Bush has made clear in the past, we will be talking with North Korea, and very much part of our consultation (with Japan and South Korea) was some of the elements that we would think would be important" in such talks. He added that the timing of such talks would depend on the completion of the Bush Administrations policy review, but that "certainly will be a matter of weeks rather than months."

The Associated Press ("US, JAPAN BACK SECOND KOREAN SUMMIT," Honolulu, 5/28/01) reported that the US and Japan told the ROK on Saturday that they would both support a visit to Seoul by DPRK leader Kim Jong-il. US Assistant Secretary of State James A. Kelly said that US policy toward DPRK "cannot possibly exist on its own." He said its core is in the strong relationship with Japan and the ROK, and he expressed support for ROK President Kim Dae-jung's efforts at reconciliation. In a joint statement following the trilateral talks, the three sides expressed strong support for the ROK "policy of reconciliation and cooperation with North Korea." ROK Deputy Foreign Minister Ambassador Yim Sung-joon told Kelly and Japan's Director General of Asian and Oceanic Affairs Kunihiko Makita that despite a decision this week in the ROK to abandon plans to celebrate the first anniversary next month of the inter-Korean summit, the ROK fully expects a second summit between the two Kims in Seoul. [Ed. note: This article was included in the US Department of Defense's Early Bird news service for May 29, 2001.]

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2. PRC View of Inter-Korean Relations

Agence France Presse ("INTER-KOREAN TALKS WILL RESUME SOON, SAYS LI PENG," Seoul, 5/28/01) reported that Li Peng, chairman of the PRC Standing Committee of the National People's Congress, said on May 26 that the current impasse in inter-Korean ties was merely transitory and predicted that dialogue between the two Koreas would resume soon. Li made the statement when he met with Kim Jong-pil, head of the ROK United Liberal Democratic Party. Kim asked for PRC cooperation in helping restart the stalled inter-Korean talks. Li told Kim, "Although inter- Korean dialogue is currently at a standstill, I think this is merely a passing phenomenon, which will end soon. China supports a peaceful reunification of Korea through dialogue." Li arrived in Seoul on Wednesday for a five-day visit at the invitation of ROK National Assembly Speaker Lee Man-Sup.

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3. Australia-DPRK Relations

Agence France Presse ("DOWNER EXPECTS NORTH KOREAN FM TO VISIT AUSTRALIA THIS YEAR," Seoul, 5/30/01) reported that ROK foreign ministry officials said that Australian Foreign Minister Alexander Downer on Wednesday said that he expected his DPRK counterpart Paek Nam-sun to visit Australia this year. During talks with ROK Foreign Miniter Han Seung-soo, Downer disclosed Paek's agreement to a visit, reached when Downer traveled to the DPRK last November. The ROK official added that Downer, who arrived in Seoul on May 29 for a three-day visit, expressed continued support for ROK efforts for peace with the DPRK. The exact date for Paek's planned visit to Canberra was unknown.

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4. Return of US Spy Plane

The Washington Post (Roberto Suro, "SURVEILLANCE PLANE TO BE RETURNED TO U.S. IN PIECES," 5/30/01) and The Wall Street Journal (Charles Hutzler, "CHINA, U.S. NEAR RESOLUTION OF IMPASSE ON RETURN OF STRANDED U.S. SPY PLANE," 5/30/01) reported that the US Defense Department announced on May 29 that the US surveillance plane stranded in the PRC will be broken up into large pieces, flown home aboard a Soviet-made cargo aircraft and reassembled so that it can go back into action. US Defense Department spokesman Rear Admiral Craig Quigley said, "We're glad to get the airplane back in a condition that it can be repaired and used again." Quigley said that four officers from the US Pacific Command would go to Beijing this week to work out details of the airplane's departure. [Ed. note: This article was included in the US Department of Defense's Early Bird news service for May 30, 2001.]

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5. PRC Military Exercises

The Washington Times (Bill Gertz, "BEIJING PROMPTS INVASION FEARS," 5/30/01) reported that US Defense Department officials said Tuesday that the PRC has massed amphibious vehicles and landing craft on an island near Taiwan as part of large-scale military exercises that are now under way. US officials said that at least 157 amphibious craft and vehicles were spotted recently on Dongshan island by US intelligence-gathering aircraft. The exercise is raising concerns among some in the US Defense Department that the PRC is practicing for a future invasion of Taiwan or an attack on one of Taiwan's smaller islands near the PRC coast. One US intelligence official said, "We have not seen these kinds of forces there for some time." The amphibious exercise is expected to be one of the largest shore-based war games held by the PRC military in recent years. Other US defense officials sought to play down the exercises. One US official said that the Dongshan maneuvers are "Phase 2" of war games under way in the South China Sea. The official said, "This is part of the spring amphibious exercise series. Dongshan is right across from Taiwan, but we think these are normal [exercises]. It is not unusual for the Chinese to put everything they have into the mix." A third official said that the equipment involved in the exercise includes amphibious tanks, jeeps, armored vehicles and landing craft. The maneuvers also are expected to employ hovercraft troop transports deployed from large amphibious ships. Taiwan's Defense Ministry said on May 25 that the military drills are "routine." [Ed. note: This article was included in the US Department of Defense's Early Bird news service for May 30, 2001.]

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6. US-Taiwan Relations

Agence France Presse ("US TO ENHANCE OFFICIAL CONTACTS WITH TAIWAN: BUSINESS GROUP," Taipei, 5/29/01) reported that the American Chamber of Commerce (AmCham) in Taiwan said on May 29 that the US President George W. Bush administration is expected to increase official contacts with Taiwan despite anticipated protests from the PRC. The group said that the new US government would allow more officials to travel to Taiwan. AmCham said in a statement, "This year's delegation found a much more positive attitude in Washington toward increasing the number of visits to Taiwan by high- and mid-ranking US government officials." The group, which just completed a lobbying trip to Washington last week, said in a statement: "Discussions all indicated a real chance that such visits could become routine in the near future. The only caveat was that the Taiwan government would be expected to ensure that such visits focus on substantive issues and not be treated as simply photo opportunities." The trip was held despite protests by the PRC and a long-standing US ban on ministerial visits. Richard Vuylsteke, AmCham executive director, said that the delegation had also lobbied for Taiwan's admission to the World Trade Organization (WTO) and a vote in favor of permanent normal trade relations (PNTR) for the PRC. AmCham said that the vote would be good for international businesses, including those with offices in Taiwan. According to Taiwanese television, Chen said in Guatemala City that Taiwan would "support" the PRC's PNTR bid.

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7. US-PRC Trade Relations

Reuters ("BUSH SAYS WANTS TO RENEW CHINA TRADE STATUS," Los Angeles, 5/30/01) reported that US President George W. Bush said on Tuesday he would ask the US Congress this week to renew normal trade relations with the PRC. In a speech to the World Affairs Council of Los Angeles, Bush made clear that he wanted free trade with the PRC despite strained relations. Bush said, "Open trade is a force for freedom in China, a force for stability in Asia, and a force for prosperity in the United States. The institutions and individuals in China who are the least friendly to freedom are often the least friendly to trade--the institutions and individuals most sympathetic to freedom are often the most friendly to trade." White House spokesman Ari Fleischer said that the PRC trade relations debate would be "an interesting test for the Senate to see if it is bipartisan."

II. Republic of Korea

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1. Light-Water Reactor Project

Joongang Ilbo ("NORTH RESPONSIBLE IN REACTOR MISHAPS," Seoul, 05/28/01) reported that the Korean Peninsula Energy Development Organization and the DPRK have agreed that the DPRK would be responsible for all necessary compensation should an accident occur in the management of the light-water nuclear reactors to be constructed in the Kumho region. The DPRK had hitherto refused to accept responsibility for accidents at the nuclear reactors, saying that it lacked expertise in the management of light-water reactors. At a meeting on quality guarantee protocols held from May 1-5 in the DPRK, however, it conceded that it was the party responsible for the management of the reactors and agreed to take responsibility for accidents according to international custom, an ROK government official explained Monday.

The Korea Times ("NK EXTRACTED NO MORE PLUTONIUM," Seoul, 05/29/01) reported that former US ambassador to the ROK Stephen Bosworth said Tuesday that the DPRK has not extracted any more plutonium or fissile materials from its nuclear plant in Yongbyon, although it is quite possible that the DPRK already has enough weapons-grade plutonium for one or two bombs. Bosworth said that there is no evidence that the DPRK is not complying with the 1994 Agreed Framework. Asked whether stringent verification is needed as advocated by the government of US President George W. Bush, Bosworth said that the US has seen verification as a serious challenge for some time. Bosworth also emphasized that the US does not trust the DPRK and its leader Kim Jong- il. "It's just like the old Ronald Reagan story about Gorbachev. 'Trust but verify.' But I would say in this case 'just verify.'" Regarding the Agreed Frameworks' quid pro quo for the DPRK's freezing of the nuclear program, Bosworth said that he believes that the US will continue to provide the DPRK with heavy fuel oil as required until the first of the two promised light-water nuclear reactors goes on line even if it is not finished in 2003 as originally planned.

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2. Trilateral Coordination Meeting

The Korea Times (Shin Yong-bae, "NATIONS URGE N.K. TO ADDRESS WEAPONS THREAT," Seoul, 05/28/01) reported that the ROK, the US and Japan on Saturday urged the DPRK to remove international concern over the threat of its weapons of mass destruction. The three allied nations issued the statement after holding consultative meetings of senior officials on the DPRK in Honolulu, Hawaii. In their joint press statement, the three countries said that their delegations reiterated the importance of continued close consultation and coordination of policy toward the DPRK. "In this regard, the three delegations expressed the shared hope that North Korea would take steps to address the concern of the international community," the statement said. ROK Deputy Foreign Minister Yim Sung- joon, U.S. Assistant Secretary of State James Kelly and Japan's Director-General of Asian and Oceanic Affairs Kunihiko Makita, attended the meeting of the Trilateral Coordination and Oversight Group (TCOG). The delegations also reaffirmed their commitment to continue the 1994 Agreed Framework and called on the DPRK to join them in taking the steps needed for its successful implementation.

Chosun Ilbo ("WASHINGTON MAY START TALKS WITH NK IN JUNE," 05/27/01) reported that the Bush administration will reportedly resume its dialogue with the DPRK, without any preconditions, as early as next month, although it has decided to take a carrot and stick approach according to the attitude that the DPRK takes. In addition, it is working on a program that reviews the entire process of DPRK missile program from the beginning ranging from development, production, and deployment of missiles to exports without considering the achievements made in this area by the Clinton administration. These views were expressed in the Trilateral Coordination and Oversight Group (TCOG) meeting. One ROK official said after the TCOG meeting that before taking action on the DPRK, the US will have prior consultation with the ROK to set a concrete policy direction toward the DPRK. The US will inform the ROK of the exact date of the resumption of talks with the DPRK and methods to be used in the ROK-US foreign ministers' meeting which will be held in Washington at the beginning of June. The ROK government predicts that the US-DPRK dialogue is highly likely to be held in June.

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3. DPRK View of Relations with US

Joongang Ilbo (Choi Won-ki, "N.K.-U.S. DIALOUGE NOT IMPORTANT, PYONGYANG BROADCAST REPORTS," Seoul, 05/27/01) reported that Pyongyang Broadcast on Saturday, May 26 said that the DPRK would not "beg" for the resumption of dialogue with the US. The broadcast said, "We don't care whether the talk takes place or not." The commentary continued, "With the U.S. Bush administration continuing to regard us with hostility and schemes to pressure us with force, it obvious there can't be any improvements of relations with or without dialogue." Citing the remarks of US secretary of State Colin Powell and other top US officials that called for withdrawal of DPRK troops at the demarcation line, it stated, "Such remarks from the Bush administration are completely out of question. The reunification of two Koreas will be eventually achieved as soon as the American imperialists withdraw their own troops from the Korean Peninsula and halt their threats to our nation." The DPRK's media then asserted that the removal of US troops and giving up of US threats are the alternatives to improve the bilateral relations of two nations. "If the U.S. practice hard-line policy, we shall counter that with the same tough stance," the commentary added.

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4. PRC on Inter-Korean Relations

The Korea Times (Hwang Jang-jin, "CHINESE LEADER PREDICTS INTER-KOREAN TALKS SOON," Seoul, 05/28/01) reported that PRC parliamentary leader Li Peng said Saturday that the current deadlock in inter-Korean dialogue is a "temporary" phenomenon and will resume soon. "China supports South and North Korea's policy of achieving peaceful unification through direct dialogue," Li was quoted as saying in a meeting with Kim Jong- pil, former prime minister and leader in President Kim Dae-jung's ruling coalition.

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5. Proposed Inter-Korean Forum

Joongang Ilbo (Kim Hee-sung, "NORTH PROPOSES A GRAND NATIONAL FORUM IN MT. KUMGANG," Seoul, 05/29/01) reported that the DPRK proposed to the ROK to jointly hold a "Grand National Forum" at the DPRK's Kumgang Mountain. The suggestion came amid preparations from both the DPRK and the ROK reunification committees to celebrate the anniversary of last year's inter-Korean summit. The DPRK's Central News Broadcast reported Tuesday that a convention was held in the People's Palace of Culture in Pyongyang on Monday to mark the first anniversary of the inter-Korean summit. The officials discussed the new policy to keep up the inter- Korean spirit and new directions to pave way for national reunification solely with "our own hands."

Joongang Ilbo (Choi Won-ki, "SEOUL TROUBLED BY NORTH'S CALL FOR GRAND NATIONAL FORUM," Seoul, 05/29/01) reported that at a meeting of the joint Korean Council for Reconciliation and Cooperation (KCRC) on Monday, Kim Yong-dae, Chairman of the KCRC, was put in charge of the preparatory committee that would handle the upcoming national reunification movement. The movement would be launched for two months from June 15-August 15. Meanwhile the ROK's side of KCRC responded that they would make positive review of the recent suggestion. The article said that the ROK government has long been waiting for the DPRK Chairman Kim Jong-il's promised visit to Seoul, not another "nationalistic" event likely to be filled with the DPRK's typical propaganda. However the government seems to have run out of excuse having already permitted the laborers of two Koreas to celebrate May Day at Mt. Kumgang early this month, the article noted. The sentiment was echoed by other DPRK observes in Seoul who advised that the latest proposal is nothing but a call for a "civic-level exchange." "There is no need to completely reject the DPRK's proposal," said Jeon Hyun-joon, senior researcher at Korea Institute for National Reunification (KINU). "The South's side of KCRC will take care of it."

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6. Northern Limit Line

Chosun Ilbo (Yoo Yong-won, "NK PATROL BOAT CROSSES NLL," 05/27/01) reported that a DPRK patrol boat infiltrated 1.8km into the southern side of the Northern Limit Line (NLL) 14.4km northwest of Paekryung Island in the West Sea and stayed for 47 minutes from 5:13am on May 27 before returning to the DPRK. The ROK Joint Chiefs of Staff (JCS) said that the violation took place in the process of the DPRK cracking down on PRC fishing boats, which were operating nearby. The JCS added that as soon as the DPRK boat came over the NLL two armed speedboats were dispatched and confirmed that there was no unusual developments in the DPRK military.

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7. DPRK-Pakistan Military Relations

Joongang Ilbo (Don Kirk, "N.K. AIR FORCE HEADS TO PAKISTAN." Seoul, 05/27/01) reported that a DPRK air force delegation headed by commander Oh Kum-chol took off to Pakistan on May 16, reported the Pyongyang Broadcast on Sunday. Air Marshall Ri Tae-won, Pakistan ambassador to the DPRK Ahmed Hussain Dayo and other related officials in the DPRK bid the air delegation farewell in Sunan Airport, Pyongyang. Neither the purpose of the visit nor the schedule was revealed.

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8. DPRK GDP Growth

The Korea Times (Shin Yong-bae, "N.K. GDP GROWTH SLOWS TO 1.3%," Seoul, 05/29/01) reported that the DPRK's gross domestic product (GDP) grew 1.3 percent year-on-year in 2000, down from a 6.2-percent gain in 1999, the ROK Bank of Korea estimated Monday. The central bank said that the DPRK economy grew last year thanks mainly to a strong performance in its construction and mining sectors. In contrast, the DPRK's grain production sank 15 percent year-on-year in 2000 due to bad weather, cutting into its GDP growth, the central bank said. In 2000, the DPRK's per-capita Gross National Income was estimated at US$757. The DPRK's exports rose 7.7 percent to US$560 million last year while imports surged 46.9 percent to US$1.41 billion, the BOK estimated. "In particular, imports of capital goods such as power generation equipment, trucks and excavators surged last year," the central bank official said.

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9. Inter-Korean Agricultural Cooperation

The Korea Times (Hwang Jang-jin, "CIVILIAN FARM MISSION TO VISIT NORTH KOREA," Seoul, 05/29/01) reported that an ROK civilian agricultural mission, including a former minister, was to visit the DPRK Tuesday to discuss cooperation in the agricultural field between the two Koreas. The Korea Sharing Movement said that the seven-member delegation would be comprised of ex-agriculture minister Kim Sung-hoon and representatives from the National Agricultural Cooperative Federation and a machinery association, and that they would visit the DPRK from May 29-June 5 to discuss cooperative projects.

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Chosun Ilbo (Yoon Jung-ho, "NORTH KOREA JOINS INTELSAT," Seoul, 05/29/01) reported that the DPRK became the 145th member of INTELSAT, an International Telecommunications Satellite Organization, on May 24. An ROK government official said Tuesday that the DPRK's UN Representative Lee Hyung-cheol signed the entry agreement at the INTELSAT headquarters in Washington, on behalf of the DPRK's communications ministry. INTELSAT is an International Telecommunications Satellite Organization that provides commercial service such as the Internet, media broadcasting, telephone, and information telecommunications to over 200 countries around the world, using its 19 satellites. As the DPRK joined this organization, its international calls and satellite relay broadcasting are expected to improve dramatically.

III. People's Republic of China

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1. ROK Position on Japanese History Textbook

China Daily (Xinhua News Agency, "LAWMAKERS BROADEN TEXTBOOK PROTEST," Tokyo, 05/24/01, P12) reported that ROK lawmakers mounted a last-ditch attempt to stop the use of a Japanese history textbook on May 23. The four legislators are applying to a Tokyo court for an injunction against the distribution of the textbook. While a ruling in their favor is seen unlikely, they plan to continue their campaign against the textbook by forming a region-wide body to oppose historical distortion by Japan, said Hahm Seung-heui of the ruling ROK Millennium Democratic Party. "We also propose to set up a neutral independent justice body--the Asia History Court--to settle historical disputes in Asian nations," said Hahm, a former public prosecutor.

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2. PRC-ROK Relations

China Daily (Wang Hui, "NATIONS SET TO BETTER RELATIONS," Seoul, 05/26- 27/01, P1) reported that, the visiting PRC Chairman of the National People's Congress Li Peng exchanged views with ROK President Kim Dae- jung on PRC-ROK relations, the situations on the Korean peninsula and other issues of mutual concern at the ROK presidential residence on May 25. Li said that the PRC is willing to work with the ROK for the development of bilateral ties in the new century. "We are satisfied with the results achieved so far in the Sino-ROK friendship and believe that there are broad prospects for closer bilateral ties," Li stressed. Kim agreed that much still needs to be explored in expanding the fields of cooperation between the two countries. He went on to say that the ROK and China should enhance cooperation in different fields and make contributions to world and regional peace and stability. Kim reiterated that the ROK fully understands the PRC's stance towards the Taiwan question and has always viewed Taiwan as an inalienable part of China. As for the situation on the Korean Peninsula, Kim said that the ROK and the DPRK have begun to take the road of peace and reconciliation since last June, and both sides should continue to improve ties and consolidate ROK-DPRK cooperations and exchanges. Li said, "China backs all efforts made by the ROK and the DPRK to improve relations, realize reconciliation, and achieve the independent and peaceful reunification at last."

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3. PRC-Russian Relations

Jiefang Daily (Xinhua News Agency, Luo Hui, "PRC AND RUSSIA WILL STRENGTHEN TIES," Beijing, 05/59/01, P1) and China Daily (Shao Zongwei, "TIES WITH RUSSIA IN GOOD SHAPE," 05/29/01, P1) reported that on May 28, former Russian President Boris Yeltsin and PRC President Jiang Zemin, the initiators of the strategic cooperative partnership between the two countries, met in Beijing and admired the sound development that bilateral ties are currently enjoying. Yeltsin is in the PRC for a holiday, the first outside Russia since he left office. During the meeting, the 10th between them since 1992, both of them expressed their satisfaction at the development of bilateral ties between their two countries. Sino-Russian relations have continued to develop in all fields and have achieved great, new results, said Jiang, giving credit to Yeltsin's role in promoting bilateral ties. Yeltsin said that he was glad to see that great improvements have been made in Russia-China cooperation since the 1996 agreement and that a fine rapport between his successor Putin and Jiang has been established. He stated his confidence that bilateral relations will enjoy better development under the leadership of Jiang and Putin. Jiang is scheduled to visit Russia this coming July. During the visit, Jiang and Putin are expected to sign a treaty on friendly neighborliness and cooperation, which according to Jiang, will settle in law the sincere hopes and firm determination of the two countries and two peoples to maintain friendly ties for generations.

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4. PRC Attitude to EP-3 Plane

Jiefang Daily (Xinhua News Agency, "PRC AGREE THE RETURN OF EP-3 PLANE," Beijing, 05/29/01, P1) reported that on May 28, PRC Foreign Ministry spokesman Zhu Bangzao stated the PRC's attitude on US EP-3 plane in Hainan. He said that the two countries have kept close contact concerning the return of the EP-3 plane. The PRC has agreed that the US should send a commercial An-124 cargo plane to transport the disassembled EP-3 plane out of China, he said. Zhu added that China and US will continue to discuss related details.

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5. PRC on Chen Shui-bian's US Stopover

People's Daily (Xinhua News Agency, Liu Jiang, "PRC LODGES SOLEMN REPRESENTATIONS TO US OVER TAIWAN LEADER'S STOPOVER," Washington, 05/26/01, P3) reported that PRC Ambassador to the US, Yang Jiechi, asked for an appointment with the US Under Secretary of State Marc Grossman, delivering the PRC Government's solemn representations to the US over Taiwan leader Chen Shui-bian's stopover in the US. Yang said that the US Government granted Chen a transit visa to visit New York City and Houston in early June. It also relaxed its restrictions on Chen's activities in the US, in violation of the three Sino-US joint communiques and related commitments. Chen Shui-bian, by taking this opportunity, engaged in a series of public activities to peddle the separatism proposals, Yang argued, which has fueled the tendency of Taiwan independence and rudely interfered in China's internal affairs. He stressed that the PRC Government demanded that the US fully recognize its damaging effect of allowing Chen's stopover, take seriously China's solemn representations, correct its errors and not have official contact with Chen in any form.

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6. PRC on US Permitting Dalai Lama's Visit

PLA Daily (Xinhua News Agency, Wu Liming, "PRC DEMANDED US TO CORRECT ITS ERRORS," Beijing, 05/25/01, P4) reported that at a regular briefing on May 24, PRC Foreign Ministry spokesman Zhu Bangzao expressed the PRC's strong opposition to the US Government's playing host to the Dalai Lama. Commenting on the US President's meeting with the Dalai Lama in the White House on May 23, Zhu said, "Tibet is an inalienable part of China, and Tibetan affairs are China's internal affairs that no other countries can interfere with." He called on the US Government to adhere to the view that Tibet is Chinese territory, stop supporting Tibetan independence, stop using the Tibet issue to interfere in China's internal affairs and not to arrange meetings between the Dalai Lama and US Government officials. Zhu pointed out that the gate is open for the Dalai Lama to negotiate with the Chinese Central Government as long as he gives up his "Tibetan independence" proposal, stops his separatist activities, makes public declarations that Tibet is an inalienable part of China, and admits that Taiwan is a province of China.

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7. PRC-Japanese Relations

PLA Daily (Xinhua News Agency, Li Shijia, "PRC FOREIGN MINISTER MEETS HIS JAPANESE COUNTERPART," Beijing, 05/25/01, P5) reported that on May 24, PRC Foreign Minister Tang Jiaxuan met with his Japanese counterpart Makiko Tanaka, who came to Beijing to attend the third Asia-Europe Foreign Ministers' Meeting, and stated the PRC's positions on the current problems in bilateral relations. On the textbook issue, Tang said that the core issue is whether Japan can sincerely and correctly recognize and face history, and in what kind of values to educate the Japanese younger generations. Tang urged Japan to take concrete measures to correct the mistakes in the textbook. In regard to Lee Teng-hui's Japan visit, he demanded that the Japanese Government should realize its severe damages and prevent Lee from visiting Japan again. Concerning the proposed visit to the Yasukuni Shrine, Tang said that the Japanese Government should earnestly carry out its commitment to reflect on its history.

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8. US Military Build-up

PLA Daily (Xinhua News Agency, Tang Shuifu, "US STRESSES TO ESTABLISH POWERFUL MILITARY FORCE," Washington, 05/27/01, P4) reported that on May 25, US President George W. Bush delivered a speech at the graduation ceremony at the US Navy Institute, stressing that the US should establish a powerfully armed force to adapt to the need of the new century. Bush said that the US should arm the military with advanced technology. "I will dedicate to the establishment of troops with smaller scale but more flexibility, which will be more easy to deploy and maintain, and depend more on stealth and precision-guided weapon system and information technology," he declared. The US Government will strengthen research and development in weapons systems, Bush added.

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Gee Gee Wong:
Berkeley, California, United States

Timothy L. Savage:
Berkeley, California, United States

Robert Brown:
Berkeley, California, United States

Kim Hee-sun:
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Hiroyasu Akutsu:
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Peter Razvin:
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Shanghai, People's Republic of China

Dingli Shen:
Shanghai, People's Republic of China

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