NAPSNet Daily Report
tuesday, june 12, 2001

I. United States


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I. United States

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1. US-DPRK Talks

Agence France Presse ("US-NORTH KOREA TO RESUME DIALOGUE IN NEW YORK ON WEDNESDAY," Washington, 6/12/01) reported that the US State Department spokesman Philip Reeker said Tuesday that the US and the DPRK are to resume their dialogue this week in New York. Reeker said, "As a follow-up to the president's statement last week on North Korea policy, Jack Pritchard, special envoy for Korean Peace talks, will meet with North Korean (UN ambassador) Li Hyong Chol on June 13 in New York to make arrangements for bilateral talks. It's a start. We said we would like to begin a dialogue and the North Koreans responded, they agreed to meet."

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2. ROK Premier to Visit PRC

Agence France Presse ("SOUTH KOREAN PREMIER TO VISIT CHINA THIS MONTH," Beijing, 6/12/01) reported that PRC Foreign Ministry spokesman Sun Yuxi announced Tuesday that ROK Prime Minister Lee Han-Dong will visit the PRC from June 19 to 22. Lee's working visit will take place at the invitation of PRC Premier Zhu Rongji. Sun did not give an agenda for Lee's visit, but noted improving ties between the DPRK and the ROK since an historic meeting between the leaders last year. He said, "We hope the Korean peninsula will maintain the momentum of relaxation of tension and of dialogue." Sun also noted the "strong attitude" towards the DPRK adopted by the new US administration, and said he hoped the two sides would resume their dialogue soon. He said, "The United States has always been a very important factor in relations between North and South Korea."

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3. Sino-US Relations

Agence France Presse ("CHINA IN TALKS WITH U.S. ON POWELL VISIT," Beijing, 6/12/01) reported that the PRC foreign ministry said on Tuesday that the PRC and the US are holding talks about a possible visit to Beijing by US Secretary of State Colin Powell. PRC Foreign Ministry spokesman Sun Yuxi said, "On the question of a visit to China by Secretary Powell, this matter is still under discussion. As to when this contact and exchange will actually be carried out, both China and the United States will have consultations and arrangements through diplomatic channels." Sun said it was important to maintain high-level exchanges with the US to enhance trust and understanding.

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4. PRC Arms Sales

The Washington Times (Bill Gertz, "CHINA SECRETLY SHIPPING CUBA ARMS," 6/12/01) reported that according to US intelligence officials, the PRC is shipping arms and explosives to Cuba. At least three arms shipments were traced from the PRC to the Cuban port of Mariel over the past several months. All the arms were aboard vessels belonging to the state-owned China Ocean Shipping Co. (Cosco). Intelligence officials said details of the arms shipments are sketchy but all involved a "known Chinese arms dealer" who arranged the transfers. According to US officials, the arms shipments to Cuba could lead to the imposition of economic sanctions on the PRC and Cosco. Sanctions would disrupt a major portion of the US-PRC shipping market controlled by Cosco, whose business lines include port terminals and warehousing, insurance, real estate and hotel management. Wei Jiafu, Cosco group president and chief executive officer, told reporters and editors of The Washington Times on June 2 that the shipping line has no connection to the PRC military and is only interested in making money. However, James Mulvenon, a PRC analyst with the RAND Corporation, said that the Chinese Communist Party's military organ approved establishment of Cosco as an arm of the PRC navy in 1985. Mulvenon stated earlier this year, in his book "Soldiers of Fortune," that Cosco's establishment "legitimized the use of navy ships for civilian shipping and thus provided a legal cover for the navy´s smuggling." Edward Timperlake, a former House committee investigator, said, "Cosco is the merchant marine arm of the PLA Navy. If the Chinese military ever mobilized troops for action against Taiwan, Cosco would be part of the operation." [Ed. note: This article was included in the US Department of Defense's Early Bird news service for June 12, 2001.]

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5. Macedonia Recognizes PRC

Agence France Presse ("MACEDONIA RECOGNIZES CHINA, DUMPS TAIWAN," Skopje, 6/12/01) reported that Macedonian government spokesman Antonio Milososki said Tuesday that Macedonian has decided to officially recognize the PRC, a move which will automatically end its diplomatic ties with Taiwan. Milososki said, "The government decided to normalize relations between Macedonia and China. This decision means there will be consequences on our relations with Taiwan." He said no date had yet been set for a signing ceremony with a PRC representative.

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Timothy L. Savage:
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Berkeley, California, United States

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Seoul, Republic of Korea

Hiroyasu Akutsu:
Tokyo, Japan

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Moscow, Russian Federation

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Shanghai, People's Republic of China

Dingli Shen:
Shanghai, People's Republic of China

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Clayton, Australia

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