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Policy Forum Online: Ethical Governance Of Investment Biweekly Update
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I. United States1. PRC-ROK DPRK Asylum Seekers Incident The Associated Press (Audra Ang, "CHINA REJECTS DEMAND TO RELEASE NORTH KOREAN ASYLUM-SEEKER SEIZED AT SOUTH KOREAN DIPLOMATIC OFFICE," Beijing, 06/14/02) and Reuters (Martin Nesirky and John Ruwitch, "CHINA AND SOUTH KOREA IN ROW AFTER CONSULATE RAID," Seoul, Beijing, 06/15/02) reported that the ROK and the PRC plunged into a diplomatic row on Friday after violent scuffles broke out at the ROK consulate in Beijing when police hauled away a DPRK asylum-seeker. At least one ROK diplomat was injured in the brawl, which was broadcast on ROK television. The DPRK man's 13-year-old son eluded the guards and is holed up with 17 other DPRK asylum seekers in the consulate. The ROK Foreign Ministry called in the PRC's ambassador to protest and demanded the detained DPRK man be handed back. "We registered a protest to the Chinese side and demanded they undo what was done," President Kim Dae-jung's spokeswoman, Park Sun-sook, told reporters. ROK diplomat Cho Won Myung expressed, "The action was contrary to international law because they didn't have our approval and we did not ask them to come in. Despite that, they came in and grabbed him." The PRC levelled the same charge at the ROK diplomats who attempted to thwart the police. PRC Foreign Ministry spokesman Liu Jiancha denied that the PRC was to blame and slammed the ROK diplomats who scuffled with police. "Their behaviour was extremely incompatible with their diplomatic status and violated international law. China expresses extreme displeasure," he said. 2. ROK Domestic Politics Agence France-Presse ("SOUTH KOREAN RULING PARTY REELS FROM ELECTION DEFEAT," 06/15/02) reported that the presidential candidate of the ROK's ruling party, Roh Moo-Hyun, has put his nomination on the line after the party suffered a humiliating defeat in local elections. The opposition Grand National Party (GNP) swept 11 out of the 16 major posts decided in Thursday's elections. The defeat was a new setback for Kim Dae-Jung who now faces growing isolation from the Millennium Democratic Party (MDP) that he founded. Roh has been running neck-and-neck with the GNP's candidate Lee Hoi-Chang in opinion poll surveys ahead of the December election to find a replacement for Kim, who must stand down at the end of his single permissible five year term. But Roh vowed before the local polls that he would put his position as presidential candidate on the line if the MDP failed to win his home region around the southern city of Busan. The party failed dismally and Roh said: "As I have promised, I will ask for reconfirmation of my presidential candidacy. I will leave it to the party to decide on details." There was a record low turnout of just 48 percent for the election for the mayors of seven major cities and nine provincial governors, as well as the heads of 232 smaller cities and towns and 4,167 local assembly members. Roh's move to seek reconfirmation is expected to lead him to sever ties with the president and possibly rename the MDP. 3. PRC-Taiwan Espionage Case The Associated Press (William Ide, "FORMER MILITARY OFFICER BEGAN SPYING ON TAIWAN AFTER HE WAS ARRESTED IN CHINA, OFFICIALS SAY," Taipei, 06/14/02) reported that a retired Taiwanese air force officer accused of espionage allegedly began spying on Taiwan after he was charged in the PRC for selling fake national treasures, a government statement said. The PRC released the suspect, Liu Kuo-chen, about 10 years ago on condition he would spy on Taiwan, according to the statement, which provides the most details yet about one of the biggest Taiwan-PRC spy cases in years. The statement, issued late Thursday, said Liu fled Taiwan in 1987 when he was a suspect in a smuggling case that involved charges of selling fake passports and smuggling people and antiques. Taiwanese police later dropped the charges. When security officials in the PRC discovered Liu's military background, they agreed to release him on the condition that he return to Taiwan and collect military and political intelligence, such as sensitive maps and photographs, the statement said. For his work, the PRC treated Liu to lavish dinners and sauna baths and gave him living expenses, it said. When Liu obtained military information, the PRC would pay him about 123,000 Taiwan dollars (US$3600). When he returned to Taiwan in 1991, he began collecting maps of freeways and bridges from libraries. But in 2000, he started using his son - Liu Yueh-long, a naval radio decoder - to gather information, the statement said. Liu Yueh-long allegedly provided his father with naval combat codes as well as sensitive photographs of Taiwanese navy vessels and ports. Investigators finally arrested Liu and his son more than a week ago, but the case wasn't made public until the China Times, a leading Taiwanese daily, broke the story on its front page Wednesday. The military is holding the son in northern Taiwan, while investigators in the southern port city of Kaohsiung, where the Liu family lives, are reviewing the father's case. The two men have not discussed the case in public. If found guilty by a military court, Liu's son could face the death penalty. The senior Liu, who will be tried in a civilian court, could face at least five years in prison. 4. Taiwan-Europe Relations The China Post (James Renwick, "PRESIDENT CHEN UNDERLINES IMPORTANCE OF FRIENDSHIP BETWEEN TAIWAN," 06/14/02) reported that Taiwan President Chen Shui-bian lauded the success of European integration, and spoke of the positive cooperation that exists between Taiwan and Europe on issues such as the World Trade Organization (WTO), while addressing guests at the recent Europe Day Dinner (May 31). The dinner, which is hosted annually by the European Chamber of Commerce Taipei (ECCT), invited distinguished guests from both the European and Taiwan business communities and government representatives to come together to celebrate the ideas of freedom, democracy and cooperation that bind the European Union together. President Chen Shui-bian commented: "The integration of Europe has several noteworthy attributes that should be pointed out for the benefit of all," and said that European integration had led to peace, prosperity, strength and freedom. 5. DPRK-US Relations Reuters ("U.S. WANTS TO SEND ENVOY TO NORTH KOREA," Washington, 06/14/02) reported that the Bush administration now wants to send its first envoy to the DPRK for the first time since coming to office 18 months ago, a senior official said on Friday. The US intention was disclosed in an interview with US Deputy Secretary of State Richard Armitage before US-North Korea talks in New York on Friday aimed at restarting a senior-level dialogue. "We will travel to New York to meet with the North Korea delegation, and afterward, at a time convenient to the authorities in Pyongyang, we would like to travel to Pyongyang," Armitage told the Korean Broadcasting System in the interview on Thursday. A diplomatic source said the U.S. envoy on North Korean policy, Jack Pritchard, conferred in New York with DPRK diplomats on Friday on the next step in resuming more high-level contacts between the two countries. 6. Inter-Korean Relations The Associated Press (Lee Soo-Jeong, "SOUTH KOREA URGES NORTH KOREA TO RESUME TALKS ON THE SECOND ANNIVERSARY OF A SUMMIT ACCORD," Seoul, 06/14/02) reported that on the eve of the second anniversary of a historic summit accord, the ROK on Friday urged the DPRK to revive stalled talks aimed at resuming a reconciliation process on the divided Korean Peninsula. In a letter sent to the DPRK, ROK Unification Minister Jeong Se-hyun said both sides must hold a round of economic talks that were canceled last month. "South Korea and North Korea must revive the spirit of reconciliation and restore inter-Korean relations without delay," Jeong said. "To this end, the inter-Korean economic talks must open promptly." 1. US Vehicle Accident Joongang Ilbo (Lee Ho-jeong, "US VEHICLE KILLS 2 KOREAN TEENS," Seoul, 06/14/02) reported that two Korean teenagers were killed Thursday after being struck by a US Army armored vehicle participating in a training exercise near Yangju in northern Gyeonggi province. According to police, the accident occurred when the vehicle, which is 3.67 meters wide, was traveling along the 3.40-meter-wide road. The two 14-year-old girls were on their way to a friend's birthday party when they were hit, police said. "We are deeply saddened by this tragic event," said Lieutenant General Daniel R. Zanini, commander of the 8th U.S. Army in a press release. General Zanini added condolences to the families of the children and pledged to conduct a vigorous investigation. The 8th Army public affairs office in Yongsan, Seoul, reported that the accident is under investigation by the Korean national police and the 2d Infantry Division Military Office. 2. DPRK-US Talks Joongang Ilbo (Kim Jin, "US PYEONGYANG TALKS MONTH, POWELL SAYS," Washington," 06/14/02) reported that the Bush administration will meet the DPRK at the negotiation table before the end of this month, US Secretary of State Colin Powell said Wednesday. "We are all looking for a way forward," Powell stated. "We will be meeting with them, and we will be meeting with them this month, but I haven't said where." Diplomats in Washington said it seemed almost certain that the US envoy Jack Pritchard would visit Pyongyang this month. The last high-level dialogue between the US and DPRK was in November 2000, when the Clinton government and DPRK held missile talks in Kuala Lumpur, Malaysia. US, ROK and Japan will hold deputy-minister-level talks in San Francisco next week to work on a draft of issues to be discussed in the US-DPRK talks. Nuclear inspection, discontinuation of missile development and export and conventional-force deployments along the Demilitarized Zone are on the agenda. 3. Australia Helping DPRK Joongang Ilbo ("AUSTRALIA PROMISES AID TO NORTH," Seoul, 06/14/02) reported that the Australian government on Wednesday announced it would extend 7 million Aussie dollars for aid to DPRK via the World Food Program and United Nations International Children's Emergency Fund. The aid is intended to "help alleviate hunger and malnutrition amongst its most vulnerable people," Canberra said Friday. Australia also will send 11,000 metric tons of wheat worth 6 million Aussie dollars and sugar worth 500,000 Aussie dollars. Another 500,000 Aussie dollars will go for vitamins and medicine. The World Food Program has been repeatedly urging international society to assist the impoverished nation with 150,000 metric tons of food since the US decision to donate 100,000 metric tons of food last Friday. 4. DPRK's Criticism on US Joongang Ilbo (Kim Hee-sung, "NORTH ACCUSES US OF SETTING PRECONDITIONS," Seoul, 06/14/02) reported that criticizing US Secretary of State Colin Powell's remark that pointed out resumption of dialogue between DPRK and US depends on the DPRK's future attitude, the DPRK's Foreign Ministry claimed it is US that needs an attitude adjustment. Powell, speaking at the Asia Society Annual Dinner on Monday, said that the DPRK needs to give up development and proliferation of weapons, comply with nuclear inspections and improve living conditions for its people. "This is in fact, a precondition for the dialogue," Korean Central Broadcasting said Friday. The broadcast said the US was changing its stance of being open to talks "without any preconditions." 5. ROK's Aid to Afghanistan Chosun Ilbo (Yoo Yong-won, "KOREA TO DISPATCH MEDICAL TEAM TO AFGHANISTAN," Seoul, 06/14/02) reported that the Ministry of Defense announced Saturday it decided to dispatch a medical support unit to Afghanistan and to provide such equipment as backpacks and walkie-talkies to aid the launch of the ANA, the Afghan military forces. The medical team is expected to be dispatched to Kabul, Afghanistan at the end of this month to provide medical services for Afghan trainees. The ministry is also providing some 50,000 pieces of equipment and supplies. However it decided not to provide soldiers, military engineers, and mice-removing devices, which were unofficially discussed between ROK and US, in consideration of the negative public opinion surrounding these issues.
1. PRC-ROK Relations China Daily (Shao Zongwei, 'sPOKESMAN DISMISSES VIEWNAMESE ALLEGATIONS," 06/12/02, P1) reported that PRC Foreign Ministry spokesman Liu Jianchao confirmed that some "unidentified" persons illegally entered the embassies of the ROK and Canada in Beijing recently. Some of them entered the ROK Embassy when claiming to be visa applicants, said the report. Acknowledging that the PRC has kept in contact with the ROK Embassy on the issue, Liu said the country will continue to handle it in line with international laws, domestic laws and the humanitarian spirit. 2. PRC-US Relations People's Daily (He Hongze, "US STATE SECRETARY: US, CHINA TO CONTINUE COOPERATION," New York, 06/12/02, P3) reported that US Secretary of State Collin Powell made a speech on US Asia policy on June 10 at the Asia Association of the US. In the speech, the report said that Powell stressed that the US hopes to continue its cooperation with the PRC to promote world stability. According to the report, Powell said that in the past year US-PRC relations have made great progress. The two countries explored cooperation in some new areas such as anti-terrorism, promoting regional stability and etc. China Daily ("CONGRESSIONAL VISITS BENEFIT SINO-US RELATIONS," Washington, 06/08-09/02, P1) reported that congressional exchanges between the PRC and the US have played an important role in promoting mutual trust and understanding. Zeng Jianhui, a National People's Congress of China (NPC) Standing Committee member and chairman of the NPC's Foreign Affairs Committee, said on June 6 that with common efforts by both sides in recent year, the NPC and the US Congress have successfully established a system of exchange. This system shows that the US Congress attaches great importance to exchange and cooperation with the NPC, said Zeng, who was visiting the US as the head of a NPC delegation at the invitation of the US-China Inter-parliamentary Exchange Group. Zeng told reporters that during his talks on June 5 with US House Speaker Dennis Haster and chairman of the US House International Relations Committee, Henry J. Hyde, both countries stressed common ground, and expressed their hopes of strengthening cooperation between the two countries in trade, counter-terrorism and the nonproliferation of nuclear weapons. In response to questions on Taiwan, Zeng warned that US arms sales to Taiwan and the upgrading of military relations with the island would send a wrong signal to Taiwan authorities, said the report. China Daily (Hu Xiao, 'sINO-US MILITARY EXCHANGES ENHANCE TIES," 06/07/02, P1) reported that Chinese Foreign Ministry spokesman Liu Jianchao said at June 6's routine briefing that the PRC will welcome the US Assistant Secretary of Defense for International Security Affairs Peter Rodman when he visits Beijing in mid-June. "Chinese military leaders have confirmed that they will hold working talks with Rodman at that time," said Liu, adding that the details were still under discussion. 3. PRC-Russian Relations People's Daily (Wu Yimin, "JIANG ZEMIN MEETS WITH PUTIN," St. Petersburg, 06/07/02, P1) reported that PRC President Jiang Zemin said on June 6 in St. Petersburg that Russia is an important force in the world affairs, and a better relationship between Russia, the US and Europe will be good to world peace, security and stability. Jiang made the remarks during a meeting with Russian President Vladimir Putin on the eve of the second summit meeting of the Shanghai Cooperation Organization (SCO). The top priority facing the two countries now is to implement the Sino-Russian Good-Neighborly Treaty of Friendship and Cooperation, Jiang said, adding that the two countries should conduct cooperation in the economic and trade areas while strengthening mutual trust politically. Putin said his meeting with Jiang would help strengthen the strategic partnership between the two countries, which was also helpful to maintaining world peace. 4. Japan's Nuclear Stance China Daily ("JAPAN PM DENIES SHIFT IN NUCLEAR STANCE," Tokyo, 06/11/02, P12) reported that Japanese Prime Minister Junichiro Koizumi and one of his top aides assured Parliament on June 10 that, despite reports hinting otherwise, Japan is not planning to change its long-standing policy banning the possession, construction or transport of nuclear weapons on its soil. The report said Koizumi has repeatedly tried to quell a fracas over Chief Cabinet Secretary Yasuo Fukuda's recent remark. Fukuda insisted his comments were taken out of context, the report said. "It was reported that I hinted at a change in policy," Fukuda said before the Parliament session. "This is absolutely different from what my beliefs are," said Fukuda. 5. Across-Taiwan Straits Relations China Daily (Wang Ling, 'sEMINAR BACKS CROSS-STRAITS FINANCE COOPERATION," Ningbo, 06/10/02, P1) reported that senior officials and experts from both sides of the Taiwan Straits vowed to speed up the process of widening financial cooperation between the two sides when they addressed a seminar at the Fourth International Investment and Trade Symposium held in Ningbo in East PRC's Zhejiang Province at the weekend. According to the report, experts said that, although there had been a steady improvement between the two sides in the expansion of mutual economic exchange in the past decade or so, the mainland and Taiwan are still developing comparatively slowly in the financial sector, which has in many ways blocked economic growth. More than 50,000 Taiwan firms now operate on the mainland, with an actual investment amount of about US$30 billion, said the report. However, it said, many businesses face financing problems, especially small and medium-sized business. Qi Xue, president of the Taiwan Academy of Banking and Financing, said: "In order to change the current situation of no direct financial business exchange across the Straits, the Taiwan authorities are substantially opening a new door for direct financial contact the Chinese mainland." 1. CanKor # 87 Thursday, 13 June 2002 While two more North Koreans seek asylum in Canada's embassy in Beijing, a group of Canadians head for Pyongyang to celebrate Canada Day, a first in the fledgling relationship between Canada and the DPRK. New moves are apparent in the US-DPRK relationship, as an agreement is reached on the recovery of the remains of US soldiers missing in action in the Korean War. The agreement comes in the wake of a USAID announcement that an additional 100,000 tons of wheat, rice and dairy products will be shipped via the World Food Programme. In its latest commentary on US envoy Jack Pritchard's on-again, off-again Pyongyang visit, the DPRK Foreign Ministry ponders the meaning of recent speculation in the US media that the latest delay is due to divisions within the Bush administration. The International Federation of Red Cross and Red Crescent Societies signs an agreement that is hoped to expand its operations in the country. This week's FOCUS section, "The changing face of DPRK commerce," examines reports of an evolution in the way DPR Koreans conduct business among themselves, both legally and illegally. The articles featured in CanKor may be accessed at the following website: http://www.pcaps.iar.ubc.ca/pubs.htm You may also subscribe directly to the CanKor e-mail service by writing to the CanKor team (Editor: Erich Weingartner; Assistant Editor: Miranda Weingartner; Research: Marion Current, Ihor Michalishyn) at CanKor2000@cs.com.
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