NAPSNet Daily Report
friday, february 1, 2002

I. United States

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

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I. United States

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1. US Policy toward DPRK

Reuters (Carol Giacomo, "BUSH STEPS UP HEAT ON IRAQ, IRAN, N KOREA," Washington, 01/30/02), Reuters (Patricia Wilson, "BUSH ISSUES NEW WARNING TO SUSPECT NATIONS," Atlanta, 01/31/02) and Agence France-Presse ("'ALL OPIONS' OPEN AGAINST IRAN, IRAQ, AND NORTH KOREA: BUSH," Washington, 02/02/02) reported that US President George W. Bush stepped up his rhetoric against Iraq, Iran and the DPRK on Thursday and ordered them to "get their house in order" or face the consequences. Bush declared, "If you are one of these nations that developed weapons of mass destruction and you're likely to team up with a terrorist group or are now sponsoring terror, and you don't hold the values that we hold dear ... then you too are on our watch list. People say, 'well what does that mean?' It means they better get their house in order is what it means," Bush said. "It means they better respect the rule of law. It means they better not try to terrorize America and our friends and allies or the justice of this nation will be served on them as well."

The New York Times (David E. Sanger, "BUSH AIDES SAY TOUGH TONE PUT FOES ON NOTICE," Washington, 01/31/02) reported that Bush administration officials insisted that US President George W. Bush was not suggesting imminent military action against Iran, Iraq, or the DPRK. Nonetheless, from Western Europe to Russia to the ROK, several allies of the US expressed fears that Bush's strong language would widen the fissures in the coalition against terrorism, set back reformers in Iran and shut down talks with the DPRK. US Secretary of Defense Donald H. Rumsfeld said that the president's message had "near-perfect clarity."

The Associated Press (George Gedda, "POWELL: DON'T DILUTE BUSH'S WORDS," Washington, 01/31/02) reported that Secretary of State Colin Powell is concerned about the dilution of President Bush's warnings to the DPRK and other nations. Powell's spokesperson, Richard Boucher, reaffirmed that the Bush administration is prepared to talk with the DPRK "any time, any place" about security issues.

The Associated Press ("BUSH DIPLOMACY GLANCE," 01/31/02) outlined US President George W. Bush's case against the DPRK. National Security Adviser Condoleezza Rice stated that the DPRK is the world's number one merchant for ballistic missiles, she said, selling to anyone, no matter how evil their intentions. The US has offered a "road map" of incentives if the DPRK changes its ways, she said, but "We've had no serious response from Pyongyang." Foreign policy-wise, Rice summarized US objectives as working to strengthen nonproliferation agreements and export controls; using a "new and budding relationship with Russia" to try to prevent the countries from gaining access to weapons materials and technology; and moving ahead with a U.S. missile defense system.

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2. DPRK Reaction to Bush Remarks

The Associated Press (Choe Sang-hun, "'EVIL AXIS' REMARK PROVOKES N. KOREA," Seoul, 01/31/02), Reuters ("NORTH KOREA CONDEMS BUSH 'THREAT,'" Seoul, 01/31/02) and Agence France-Presse ("NORTH KOREA SAYS BUSH SPEECH CLOSE TO WAR DECLARATION," SEOUL, 02/01/02) reported that the DPRK joined Iraq and Iran in condemning US President George W. Bush's State of the Union address in which he labeled the three nations an "axis of evil." The DPRK's Foreign Ministry said, "This is, in fact, little short of declaring a war against the DPRK." The ministry said Bush had "made undisguised threatening remarks" that were unprecedented for a US president. "We are sharply watching moves of the United States that has pushed the situation to the brink of war after throwing away even the mask of dialogue and negotiations," the ministry said. An unnamed foreign ministry spokesperson expressed that the US had become a terrorist target because of Bush. The spokesperson said that the September 11 attacks and scandals such as the collapse of the US energy giant Enron were "entirely attributable to the unilateral and self- opinionated foreign policy, political immaturity and moral leprosy of the Bush administration." The DPRK also stated that Bush's remarks had underscored the importance of the DPRK arming itself.

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3. Russian Reaction to Bush Remarks

Reuters (Steve Holland, "BUSH NOT ABANDONING DIALOGUE WITH N.KOREA, IRAN," Washington, 02/01/02) reported that US President George W. Bush said on Friday that his tough remarks against the DPRK and Iran describing them as part of an "axis of evil" with Iraq were not intended to signal an abandonment of a peaceful dialogue with the two nations. Bush stated, "No, of course not. As I said in my (State of the Union) speech, I hope nations hear our call and make right decisions." Russian Prime Minister Mikhail Kasyanov challenged Bush's declaration that the three countries represented an "axis of evil," saying that while there was potential for problems "so far we don't have evidence of this." However, Bush stated in the Oval Office that "all options are on the table as to how to make America and our allies more secure. All the three countries I mentioned are now on notice that we intend to take their development of weapons of mass destruction very seriously."

The Associated Press (Barry Schweid, "U.S. ENLISTS RUSSIA AGAINST 'AXIS,'" Washington, 01/31/02) reported that National Security Adviser Condoleezza Rice said Thursday that Russia is being asked to help promote change in Iran, Iraq and the DPRK. Rice stated that the focus is on stopping the spread of weapons technology. "We will use our new and budding relationship with Russia to redouble our efforts to prevent the leakage of dangerous materials and technologies," Rice announced. Bush will hold his next round of talks with Russian President Vladimir Putin on May 23 in Moscow.

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4. NATO Reaction to Bush Remarks

The Associated Press ("ALLIANCE MAY NOT ALWAYS BACK U.S.," New York, 02/01/02) reported that NATO would not automatically support US efforts to expand the war on terrorism to Iraq, Iran or the DPRK, the military alliance's chief said. NATO Secretary-General Lord Robertson said that NATO support of the US-led retaliation against the September 11 attacks would not automatically carry over to an expansion of the US military campaign beyond Afghanistan. "I think if the Americans could produce convincing evidence that there was a link between other countries and the attack that took place, then I think the allies would be seriously interested in that information," he said Thursday. "But that hasn't been forthcoming up to this moment.

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5. Albright View of US-DPRK Relations

Reuters ("ALBRIGHT CRITICIZES BUSH FOREIGN POLICY," Washington, 02/01/02) reported that Former Secretary of State Madeleine Albright on Friday criticized the Bush administration's labeling of Iran, Iraq and the DPRK as an "axis of evil." Albright expressed, "When we left office, we left the potential of a verifiable agreement to stop the export of missile technology abroad on the table. I think it's a mistake to walk away from that. We know that North Korea is dangerous but lumping those three countries together is dangerous."

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6. ROK-DPRK Relations

Reuters (Kim Myong-hwan, "SOUTH KOREA STRESS PEACE WITH NORTH AFTER BUSH SPEECH," Seoul, 01/30/02) reported that ROK President Kim Dae-jung stressed the importance of peace with the DPRK on Wednesday after US President George W. Bush referred to the DPRK as part of an "axis of evil" because of its weapons programs. Kim stated, "It is important to maintain a peaceful atmosphere in North-South relations. Our economic future depends on North-South relations."

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7. Japan Domestic Politics

Agence France-Presse ("JAPAN NAMES NEW FOREIGN MINISTER," Tokyo, 02/01/02) reported that Japan named environment head Yoriko Kawaguchi as its new foreign minister to replace Makiko Tanaka, after former UN refugee chief Sadako Ogata turned down the post. Chief Cabinet Secretary Yasuo Fukuda announced, "We decided to appoint Environment Minister Kawaguchi as foreign minister, which is now concurrently served by Prime Minister (Junichiro) Koizumi."

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8. US-Philippines Military Cooperation

Agence France-Presse ("US TROOPS CONFINED TO PHILIPPINE BASE AFTER PLANE SHOT AT," Manila, 02/01/02) reported that hundreds of US troops were confined to their base in the northern Philippines after one of their planes was hit by small-arms fire. The MC-130 special forces plane was hit by two bullets on Thursday while on a low-flight training mission over a mountainous area on the main island of Luzon. None of the crew were wounded and the plane returned safely to Clark Air Base. Philippines Air Force spokesman Major Art stated, "We are investigating the incident. At this point, we can't say who were responsible for this." The 400-odd US troops have been "ordered to remain inside the base as a result of the shooting incidents," said Jaime Yambao, executive director of the Filipino government commission that oversees the maneuvers. US soldiers are armed and can fire back to defend themselves.

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9. Cross-straits Relations

Agence France-Presse ("NEW TAIWAN PREMIER OFFERS TO SEND DELEGATES TO CHINA," Taipei, 01/02/02) reported that Taiwan Premier Yu Shyi-kun offered to send delegates to the PRC for talks. Shortly after he was inaugurated as Taiwan's new premier, Yu expressed, "We are glad to see communist Chinese authorities have become pragmatic to face the reality that the Democratic Progressive Party is the ruling party" of Taiwan.

II. Republic of Korea

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1. U.S.-DPRK Relations

Joongang Ilbo (Kim Jin, "BUSH INCLUDES NORTH IN GLOBAL 'AXIS OF EVIL'," Washington, 01/31/02) reported that US President George W. Bush on Tuesday pledged that his administration would prevent countries sponsoring terrorism, including the DPRK, from threatening the U.S. and its allies with weapons of mass destruction. In his State of the Union address, Bush explained the US strategy in the war against terror. Terrorist organizations including Hamas, Hezbollah and Islamic Jihad, and sponsoring regimes such as the DPRK, Iran and Iraq were singled out by name. "North Korea is a regime arming with missiles and weapons of mass destruction, while starving its citizens," the president said. He warned, "The United States of America will not permit the world's most dangerous regimes to threaten us with the world's most destructive weapons." Bush's stern words made it unlikely that his visit to Seoul February 19 would revitalize the stalled relations between DPRK and the US, diplomatic analysts said, as it suggested that his administration's hard-line policy was unchanged.

Joongang Ilbo (Kim Jin, "U.S. ASSURES THAT IT DOES NOT PLAN MILITARY ACTION AGAINST THE NORTH," Washington, 02/01/02) reported that US officials gave assurances Wednesday that no imminent military action is planned against the DPRK despite US President George W. Bush's warning that DPRK is a constituent of an "axis of evil." The US continues to offer unconditional dialogue with DPRK, the officials emphasized, but the threats posed by its development of weapons of mass destruction must be discussed when talks resume. At a White House press briefing, Ari Fleischer, the press secretary, denied that Bush had suggested impending military action against states including the DPRK. Bush "will be deliberative," Fleischer said. The White House national security adviser, Condoleezza Rice, met with ROK Foreign Minister Han Seung-soo and explained that Bush's stern words about the DPRK were an expression of heightened concern about weapons of mass destruction since the September 11 terrorist attacks. "Ms. Rice confirmed that the Bush administration's North Korea policy remains unchanged," Han said. James Kelly, assistant secretary of state for East Asian and Pacific affairs, said in a meeting with Yim Sung-joon, the senior presidential secretary for foreign affairs and national security, that the US expects to resume serious talks with DPRK.

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2. DPRK Response to U.S.

The Korea Herald ("N. KOREA SAYS 'EVIL AXIS' REMARK NOT FAR FROM DECLARATION OF WAR," Seoul, 02/01/02) reported that in its first public reaction to being called part of an "axis of evil," the DPRK on Friday said that US President George W. Bush's pronouncement was little short of a declaration of war. "The option to 'strike' impudently advocated by the U.S. is not its monopoly," a DPRK Foreign Ministry spokesman said. The DPRK, it said, "will never tolerate the US' reckless attempt to stifle the DPRK by force of arms but will mercilessly wipe out the aggressors." "This is, in fact, little short of declaring a war against the DPRK," said the DPRK spokesman, who was not identified by name. To observers in the ROK, Bush's speech reaffirmed what they saw as a widening gap between the US and the ROK in their ways of dealing with DPRK. On Friday, the DPRK spokesman said that Bush's "reckless strong- arm policy" made the US a target of terrorism and urged the US not to "groundlessly" accuse the DPRK of developing weapons of mass destruction and sponsoring terrorism.

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3. ROK-DPRK Relations

The Korea Herald (Shin Yong-bae, "SEOUL TO PROVIDE HUMANITARIAN AID TO N. KOREA: PRIME MINISTER LEE," Seoul, 02/01/02) reported that Prime Minister Lee Han-dong said Thursday that the government will continue to offer humanitarian aid to the DPRK, despite the current lull in inter- Korean relations. Speaking before the an extraordinary session of the National Assembly, Lee also said that the government will address the problem of separated families. For this purpose, it will seek to expand correspondence among dispersed family members and confirm the whereabouts of the DPRK kin, if inter-Korean dialogue resumes, he said. On relations between the US and the DPRK, the prime minister said that the ROK government will help restart US-DPRK talks in cooperation with the US. "We hope U.S. President George W. Bush's upcoming visit to South Korea will be an opportunity to develop relations between South and North Korea and the United States," Lee said. Bush is scheduled to make his first visit to the ROK February 19 for talks with President Kim Dae-jung. US Ambassador Thomas Hubbard said Wednesday that the two leaders will discuss the DPRK's weapons of mass destruction.

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4. ROK-Russia Relations

The Korea Herald (Kim Ji-ho, "SEOUL ASKS RUSSIA TO INFLUENCE N.KOREA ON REOPENING DIALOGUE WITH SOUTH," Seoul, 01/31/02) reported that ROK has asked Russia to persuade the DPRK to reopen dialogue with the ROK and the US when Russia sends high-level missions to DPRK later this year, ROK officials said Wednesday. The ROK's new unification minister also vowed to jump-start the Korean peace process soon. The Foreign Ministry in Seoul said that two Russian officials--Konstantin Pulikovsky, presidential representative in the Far East, and Vladimir Yakovlev, the St. Petersburg governor--are scheduled to visit the DPRK in February and April, respectively. The Russian officials are visiting the DPRK to celebrate the birthday of DPRK leader Kim Jong-il, which falls on February 16. ROK officials said that they requested Russia to mediate inter-Korean relations, and that Russian leaders promised cooperation. Last week, Russian Foreign Minister Igor Ivanov also made it clear in a meeting with visiting ROK Vice Foreign Minister Choi Sung-hong that his government would try to facilitate inter-Korean rapprochement, according to the ROK officials. While in Pyongyang, the Russian officials are expected to meet Kim Jong-il and discuss relations between the DPRK and Russia, including the proposed linkage of the Trans-Siberian Railway and an inter-Korean cross-border railroad.

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5. US Base Relocation

Joongang Ilbo (Kim Min-seok, "U.S. GENERAL MAKES ROUNDS OF OFFICIALS TO COURT SUPPORT," Seoul, 02/01/02) reported that General Thomas A. Schwartz since last year has been visiting ROK politicians to resolve issues regarding military lodging facilities and the relocation of Yongsan military base. General Schwartz, commander of the US Forces Korea and ROK-US Combined Forces Command, had unofficial meetings with Lee Hoi-chang, opposition Grand National Party leader, on December 18 and January 15, where he asked for support. On January 16, General Schwartz and his wife invited Kim Jong-pil, leader of the United Liberal Democrats, and his wife to a luncheon. On January 24 he visited the residence of Chun Doo-hwan, former ROK president. The general also met with Chun Yong-taek, head of the National Defense Committee, and Chyung Dai-chul, a member of the Millennium Democratic Party. According to a USFK official, General Schwartz plans to keep meeting politicians until the controversy over the housing problem is resolved.

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6. Ethnic Koreans in US Forces Joongang Ilbo (Shin Joong-don, "4,000 ETHNIC KOREANS IN U.S. FORCES," New York, 01/31/02) reported that ethnic Koreans make up the largest group of people of Asian descent serving in the US military, according to a report issued Tuesday by the US Department of Defense. The number of Korean-Americans, both enlisted and officers, was 4,084 as of last September. There were 768 officers and 3,316 enlisted soldiers of Korean descent. Nearly 750 of the Korean-Americans in the US forces, the report said, were women. Ten of the Korean-Americans, including 2 of the women, are colonels, 42 are lieutenant colonels and 111 are majors. No ethnic Korean has yet attained the rank of general or admiral. Among the Korean-American officers, 362 are in the army, 224 in the navy, 117 in the air force and 65 in the marines. Other ethnic Asians with large presences in the U.S. military were 1,704 Chinese- Americans, 1,699 Japanese-Americans and 1,687 Vietnamese-Americans, the report said.

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7. Alleged Korean War Atrocities

Joongang Ilbo (Hong Gweon-sam, "GROUP SAYS U.S. SHIPS FIRED ON WAR REFUGEES," Pohang, 02/01/02) reported that US Navy warships deliberately fired on and killed civilians gathered on a nearby seashore in the early days of the Korean War, a man who claims to have survived the alleged event and who is leading a group seeking a review of the case said Thursday. The group, which comprises the kin of the alleged victims, petitioned the National Assembly to inquire into the incident after hearing of a similar case at Nogun-ri in North Chungcheong province. The Pohang allegations will be included in a British Broadcasting Corporation documentary, "Kill 'Em All," to be aired February 1. The better-known Nogun-ri case, in which US soldiers allegedly killed hundreds of Korean civilians, will be included in the report. The group claims that three US warships appeared about 1 kilometer off the coast of what is now Hwanyeo-dong in Pohang at around 2 p.m. on September 1, 1950, and opened fire on a group of about 1,000 war refugees who were camped on the shore. The ships allegedly fired their guns on the camp for 30 to 40 minutes, killing more than 100 people and injuring hundreds. The group said that 38 deaths and 20 injuries in the alleged attack have been reported since it was formed in November 1999. Leaders of the group said that they feel certain others will come forward.

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8. ROK-Japan Historical Issues

The Korea Herald (Hwang Jang-jin, "SOUTH KOREA, JAPANESE CIVIC GROUPS FORM JOINT BODY ON TEXTBOOKS," Seoul, 01/31/02) reported that civic groups from the ROK and Japan will launch an alliance this week to correct and prevent history distortions in Japanese textbooks, which strained the neighboring nations' bilateral ties last year, organizers said Wednesday. The joint organization, "History Education Asia Network," will be launched in Tokyo on Saturday, according to an ROK group for women forced into sexual slavery by the Japanese military during World War II. The alliance will conduct academic research to narrow the gap in historical perception between two nations and stage joint campaigns against Japanese rightists' attempts to whitewash the nation's wartime and colonial atrocities in textbooks. "While campaigning against the textbooks last year, we shared the need for a new organization to combine our efforts more efficiently," said an official of the Korean Council for the Women Drafted for Military Sexual Slavery by Japan. About 10 Japanese social movement groups will join the alliance, including the Children and Textbook Japan Network 21, consisting largely of teachers and parents who led a campaign to block the disputed textbook from being used in Japanese schools. The Korea- Japan alliance will invite participation from other Asian nations, including the PRC, the official said. President Kim Dae-jung and Japanese Prime Minister Junichiro Koizumi agreed on its creation in Seoul last October.

III. People's Republic of China

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1. ROK Cabinet Reshuffle

People's Daily ("Wang Linchang, "ROK PRESIDENT RESHUFFLES CABINET," Seoul, 01/30/02, P3) reported that ROK President Kim Dae-Jung reshuffled his cabinet on January 29. A statement from the presidential Blue House said that Jeong Se-hyun--a previous deputy minister of unification--had replaced Hong Soon-young as unification minister in charge of relations with the DPRK, according to the report. It said that the change comes less than a month before US President George W. Bush is due to arrive in the ROK for a visit that analysts expect the ROK to use to restart stalled rapprochement efforts with the DPRK. The report said that as the ROK economy shows signs of a rebound, Kim Dae-jung left the two most powerful economic posts unchanged. Jin Nyum stays as finance minister, while Lee Keun-young remains chairman of the Financial Supervisory Commission, said the report.

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2. PRC-Russian Relations

People's Daily (Xie Rong, "PUTIN SIGNS LAW RATIFYING TREATY WITH CHINA," Moscow, 01/29/02, P3) reported that Russian President Vladimir Putin has signed a federal law that makes the good-neighborly treaty of friendship and cooperation between Russia and the PRC a binding document to guide future bilateral ties. The article said that the treaty is expected to guide development of Sino-Russian relations in the new century, and have a profound and far-reaching impact on bilateral ties in the long run. Summing up the history of Sino-Russian ties, it said that the treaty expounds the main principles, spirit and achievements in developing bilateral relations, which would feature "a friendship from generation to generation and never targeting each other as enemies." The treaty describes the friendly relations between China and Russia as a new type of state-to-state relationship based on the principles of nonalignment, non-confrontation and "not-against-any-third-country" cooperation, said the report.

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3. PRC-Japanese Relations

China Daily ("SINO-JAPANESE TIES MARKED," 01/29/02, P1) reported that PRC President Jiang Zemin said that the PRC and Japan should increase their friendly and cooperative relations, learning from history and facing up to the future. Jiang made the remarks on January 28 in a meeting with representatives from 23 Japanese non-governmental organizations (NGOs), who are in Beijing to attend an NGO meeting between the two sides that convened on January 28. Jiang stressed that the PRC Government has always attached importance to Sino-Japanese relations and bilateral non-governmental friendship. He hoped that the NGOs and people from both countries would make new contributions to bilateral friendship in the new century. On the same day, the report said, 53 non-governmental organizations from both sides issued a statement to mark the 30th anniversary of the normalization of PRC-Japan relations. The statement called on the two nations to make efforts for the development of friendly ties in the 21st century.

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4. Japan's Domestic Politics

China Daily ("JAPAN PM DEFENDS SACKING OF TANAKA," Tokyo, 01/31/02, P11) reported that Japanese Prime Minister Junichiro Koizumi on January 30 defended his decision to sack Foreign Minister Makiko Tanaka over an argument that threatened to scupper debate over Japan's supplementary budget. He told a budget committee of parliament's upper house, "I decided to take the action because an issue that should have been resolved within the foreign ministry grew into a problem that affected the entire government. The problem then entangled parliamentary proceedings. So I made the decision." The report said that Koizumi appointed himself acting foreign minister until a successor is found. With Russian Foreign Minister Igor Ivanov due to arrive in Tokyo on February 1 and US President George W. Bush visiting from February 17, Japan urgently needs to fill the vacuum at the foreign ministry, said the report. Ivanov said on January 30 that the dismissal of his Japanese counterpart was unlikely to affect relations between the two countries and that his visit to Tokyo would go ahead as scheduled, the report said. It said that officials at the Japanese prime minister's office declined to comment on possible candidates to succeed Tanaka but that media reports suggested Koizumi wanted to pick Sadako Ogata, the former UN High Commissioner for Refugees. According to the report, a US Government source was quoted by the Jiji Press news agency as saying: "We (would) really welcome Mrs. Sadako Ogata becoming foreign minister."

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5. Across-Taiwan Straits Relations

People's Daily (Wu Yaming, "SPOKESMAN REFUTES 'ONE-CHINESE' REMARK," Beijing, 01/31/02, P4) reported that the spokesman for the State Council Taiwan Affairs Office of the PRC has criticized the "one-Chinese" remark by Annette Lu of Taiwan, saying that her real meaning is to replace the one-China principle with "one nation, two Chinese states". Zhang Mingqing, the spokesman, made the comment on January 30 at a news briefing. He reiterated that the one-China principle is the basis for improving and developing cross-straits relations, according to the report. It reported that Zhang said that Annette Lu's remark was not well-meant and would not help to improve cross-straits ties, but instead, it would damage relations and create new tensions. There is no obstacle to members of the Taiwan-based Democratic Progressive Party (DPP) visiting the mainland, if they can adopt an "appropriate status", Zhang noted. The official welcomed Taiwan's recent decision to open its market to some farm products and services from the mainland. He also welcomed Taiwan students to the mainland to study, the report said.

China Daily (Xing Zhigang, "FUNDAMENTAL POLICY REMAINS UNCHANGED," 01/25/02, P1&2) reported that the PRC extended an invitation to mainland visits by Taiwan's Democratic Progressive Party (DPP) members, marking a slight adjustment on its policy of refusing to enter into any contact with the party. PRC Vice-Premier Qian Qichen said on January 24 that the broad masses of DPP members should be differentiated from a handful of die-hard separatist elements advocating Taiwan independence, the report said. "We welcome their visit to the mainland in an appropriate capacity, in a bid to promote mutual understanding," said Qian, also a political bureau member of the Central Committee of the Communist Party of China (CPC). He urged the DPP to further consider the welfare of the Taiwanese people and to completely abandon its pro-independence party platform to sincerely develop cross-Straits relations. The move came at a ceremony on January 24 to commemorate the seventh anniversary of PRC President Jiang Zemin's speech on the Taiwan question, the report said. PRC Vice-President and CPC Central Committee Political Bureau Standing Committee member Hu Jintao, along with more than 300 central government officials and lawmakers from the National People's Congress (NPC), attend the event, the report said. According to it, Qian apparently based the policy change on the PRC's confidence that the basic framework of cross-Straits relations and its development trend has remained unchanged, despite noticeable changes in Taiwan's political situation. Vice-premier Qian strongly warned against attempts by some pro- independence forces to promote "gradual Taiwan independence," which he said is aimed at separating Taiwanese culture from Chinese culture in the ideological, cultural and educational sectors. "We will always be on high alert to all pro-independence activities by separatist forces," he said. The vice-premier proposed, for the first time, to establish a mechanism on cross-Straits economic cooperation following Taiwan and the PRC's entry into the World Trade Organization, the report said.

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6. PRC Nuclear Industry

China Daily (Xiao Xie, "NUCLEAR CORPORATION'S REVENUE RADIANT," 01/30/02, P5) reported that China National Nuclear Corporation (CNNC), the sole State-owned nuclear energy conglomerate, said that its business improved last year, with its deficit falling by 30 percent, and that it could even move out of debt within the next 12 months. Wang Binhua, vice-general manager of the company, said at the press conference on January 29 that it reduced the deficit by 140 million yuan (US$16.9 million) last year, and, with government subsidies, the deficit is thought to be less than 100 million yuan (US$12 million). At the conference, Wang Zhaofu, the company's office director, said that CNNC is trying to lobby the government to approve the construction of a 2- million kilowatt nuclear power plant in Sanmen of East China's Zhejiang Province this year. Wang Zhaofu said the company is prepared for the launch of the US$3 billion plant, close to Qinshan plant, the PRC's first self-designed nuclear plant. "Nuclear power is clean, safe and efficient," Wang Zhaofu said. "The Chinese top leaders have always attached great importance to the development of the industry," Wang said.

IV. Japan

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1. Japan's Roles in East Timor

The Yomiuri Shinbun ("100 MILLION DOLLARS TO EAST TIMOR," 01/30/02) reported that Japan's prime minister, Junichiro Koizumi, had a meeting with Xanana Gusmao, who is to run for the post of first president in East Timor on January 29. In the meeting, Koizumi offered a donation of US$100 million to facilitate the return of refugees. Gusmao in the meeting expressed his appreciation to the role played by Japanese Peace Keeping Operation (PKO) forces as well as the financial donation, saying that the PKO could play a significant role not only in maintenance of public order, but in nation-building.

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2. Japan-RF Relations

The Yomiuri Shinbun ("THE NORTHERN TERRITORIES AT VICE-MINISTER LEVEL," 01/26/02) reported that Japan and the RF agreed that the two countries will have talks on return of Habomai and Shikotan islands, in parallel with the talks on the question of the title to Kunashiri and Etorofu islands, at the vice-minister level.

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BK21 The Education and Research Corps for East Asian Studies
Department of Political Science, Korea University, Seoul, Republic of Korea

Center for American Studies,
Fudan University, Shanghai, People's Republic of China

International Peace Research Institute (PRIME),
Meiji Gakuin University, Tokyo, Japan

Monash Asia Institute,
Monash University, Clayton, Australia

Brandon Yu:
Berkeley, California, United States

Timothy L. Savage:
Berkeley, California, United States

Kim Young-soo:
Seoul, Republic of Korea

Hibiki Yamaguchi:
Tokyo, Japan

Saiko Iwata:
Tokyo, Japan

Hiroya Takagi:
Tokyo, Japan

Peter Razvin:
Moscow, Russian Federation

Wu Chunsi:
Shanghai, People's Republic of China

Dingli Shen:
Shanghai, People's Republic of China

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Clayton, Australia

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