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Policy Forum Online: Ethical Governance Of Investment Biweekly Update
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I. United States1. ROK-DPRK Ministerial Talks Agence France-Presse ("NORTH AND SOUTH KOREA OPEN MINISTERIAL TALKS CLOUDED BY NUKE CRISIS," Seoul, 07/10/03) reported that the DPRK and ROK opened cabinet-level talks here overshadowed by revelations that the DPRK has been pushing ahead with its nuclear weapons drive. The DPRK's top delegate kicked off the session by warning of the gathering "dark clouds" of nuclear confrontation and said the Stalinist State would not flinch if faced by war. But chief delegate Kim Ryong-Song's call for the ROK to support the DPRK in resolving the crisis was immediately rebuffed. "This is not the kind of issue that can be settled by just South and North Korea joining forces, but one requiring cooperation with the international community," said his southern counterpart, Unification Minister Jeong Se-Hyun. Cabinet level talks between the two Koreas have been taking places since 2000, with the intention of spurring economic cooperation. Recent meetings have been hampered by the nine-month-old nuclear impasse and tension was unusually high this time after South Korea's intelligence chief testified Wednesday that the North had recently conducted several dozen test explosions. The DPRK's delegate made no comment about the charges and insisted that the DPRK wanted a peaceful settlement to the nuclear issue but would never give in to US-led pressure. "We are prepared for both dialogue and war," Kim said in his keynote speech to the ministerial talks which will end Saturday. "The basic is to resolve the issue peacefully through dialogue." Kim repeated his arrival statement that "dark clouds of nuclear war" were approaching while calling for unity between the two Koreas to overcome the crisis. 2. ROK on DPRK Multilateral Talks Agence France-Presse ("SOUTH KOREA PRESSES NORTH KOREA ON MULTILATERAL TALKS," 07/10/03) reported that the ROK used inter-Korean high-level talks to pressure North Korea to agree to multilateral discussions to resolve the worsening nuclear crisis, officials said. The DPRK's head delegate opened the talks with a warning of the gathering "dark clouds" of nuclear confrontation and said the DPRK wanted peace but would not flinch from war. The ROK stressed the urgency of holding talks in a multilateral format. "We explained how urgent and useful it would be (for North Korea) to participate in the expanded multilateral talks," Shin Un-Sang, spokesman for the ROK delegation, said after the two-hour morning session. The DPRK insisted on one-on-one US-North Korean negotiations, but added that the format would no longer be an obstacle if the US dropped its "hostile" policy, Shin said. The ROK is seeking to use the cabinet-level talks here to persuade the DPRK to come to the multilateral talks, proposed by the US and backed by its allies, to resolve the nuclear impasse. The ROK is also pushing for defense chiefs' talks with Pyongyang to reduce tensions and restore trust. DPRK chief delegate Kim Ryong-Song called for unity between the two Koreas to overcome the crisis. "We are prepared for both dialogue and war," Kim said Thursday in his keynote speech to the ministerial talks. "The basic (stance) is to resolve the issue peacefully through dialogue." The DPRK's official Korean Central News Agency (KCNA) said Kim made a five-point proposal focusing on joint efforts "to avert the danger of a war" to the ROK's Unification Minister Jeong Se-Hyun. Kim proposed that the two Koreas halt propaganda broadcasts attacking each other -- including silencing loudspeakers blaring across inter-Korean border -- from August 15, KCNA said. But Kim's call for the ROK to support the DPRK in resolving the nuclear crisis was rebuffed. 3. ROK WMD Export Regulations Asia Pulse ("SOUTH KOREA'S WMD RULES FALLEN ON DEAF EARS: GOVT OFFICIALS," Seoul, 07/10/03) reported that the ROK government's policy to regulate exports of sensitive materials used in the creation of weapons of mass destruction (WMD) has fallen on deaf ears in local exporting companies, government officials said. At the beginning of this year, the Ministry of Commerce, Industry and Energy enforced the so-called "Catch-All" system. This was meant to control exports of all WMD-related materials, but there has been no request for export approval under the system so far, they said. Under the Catch-All system, the government bans exports of some types of biochemical, semiconductor and machine tool products, which could be diverted for use in the development and production of WMDs, including nuclear, biological and chemical weapons, and their transportation vehicles. All local exporters of the WMD-sensitive materials are obliged to report to the commerce ministry for approval, if there are suspicions that the end users are involved in WMD development. "Despite massive exports of Korean chemicals, semiconductors and machinery, not a single exporter has complied with Catch-All-related requests so far, indicating widespread indifference in local business circles to the otherwise costly rules," said a ministry spokesman. Violators of the Catch-All regulations could be dealt a devastating blow in overseas business and fall into a life-or-death crisis. The US bans imports of all products manufactured by the violators of WMD rules for a period of one to 20 years, while other countries enforce similar punishments. "But domestic export companies appear generally unprepared to realize the potential damage," he said, revealing a plan to reinforce the anti-WMD systems and rules. 4. US Missile Defense Asia Destabilization? Reuters (Carol Giacomo, "MISSILE DEFENSE NEED NOT DESTABILIZE ASIA, STUDY SAYS," Washington, 07/10/03) reported that US-advocated missile defenses need not destabilize Asia, but may not protect South Korea (news - web sites) or Taiwan in meaningful ways and could provoke a US-China crisis, a new study released this week says. President Bush jettisoned the Anti-Ballistic Missile Treaty to aggressively build a missile defense system for the US and is urging allies to establish similar systems on their territories. This has been a particular issue with Asia, where the DPRK's stated determination to manufacture nuclear weapons and missiles is seen as a threat to regional security and a central motive behind Bush's missile defense agenda. In the study, the Atlantic Council of the US, a research institute, said "If it continues to be managed well, the development of missile defenses in Asia need not lead to instability." This will require Washington to continue discussing its plans in public and consulting closely with key states. Most missile defense systems being developed will not be ready for several years and even when deployed, the PRC "should be confident they do not pose a threat to its deterrent capabilities," the report said. The report examines the cases of Japan, ROK, Taiwan and India, which are all considering missile defense systems. The DPRK threat created new impetus for Japan to consider missile defenses but the decision is far from made since many Japanese fear rising tensions with the PRC, it said. 5. DPRK-UN Relations Reuters (Irwin Arieff, "NORTH KOREA CALLS ON UN ENVOYS TO TREAT IT FAIRLY," United Nations, 07/10/03) reported that the DPRK's U.N. ambassador has visited several members of the Security Council in recent days to urge them to act impartially on the DPRK nuclear crisis, diplomats said on Thursday. Among those approached by the DPRK's Pak Gil Yon was Spanish Ambassador Inocencio Arias, the Security Council president for July, who told reporters he planned to brief the council on Monday about his July 1 meeting with Pak. But Spanish officials stressed there would be no substantive discussion in the council of the DPRK's revival of its nuclear weapons program. 6. DPRK on Nuclear Talks The Associated Press (Jae-Suk Yoo, "NORTH KOREA SAYS IT WANTS NUCLEAR TALKS ," Seoul, 07/10/03) reoprted that a DPRK envoy said Thursday his nation was ready for "both war and dialogue" and insisted on direct talks with the US to resolve a nine-month-old nuclear standoff. The ROK said Wednesday that the DPRK has taken a key step toward building nuclear bombs by reprocessing a small number of spent nuclear fuel rods. The report escalated a standoff that began last October when US officials said the DPRK admitted having a secret nuclear program, in violation of international agreements. The US wants the DPRK to abandon such programs. "Our basic position is that we want to resolve the (nuclear) issue peacefully," DPRK negotiator Kim Ryong Song said Thursday before talks with ROK delegates in Seoul. "But if outside forces ignore our position and try to use force, we will face them boldly and show our strength." Kim urged cooperation between the ROK and the DPRK to prevent war on the Korean Peninsula and said no nation can force policies on the DPRK. The DPRK delegation arrived Wednesday and was scheduled to leave Saturday. 7. US-Australia on DPRK Arms Trade Agence France-Presse ("AGGRESSIVE US PLAN ON NORTH KOREA ARMS TRADE HITS SNAG IN AUSTRALIA," Sydney, 07/10/03) reported that US efforts to gain backing for an aggressive initiative to intercept North Korean ships and planes suspected of carrying banned weapons hit a snag this week as key ally Australia balked at the plan. Australia is hosting the second meeting of the US-led Proliferation Security Initiative (PSI) -- an 11-nation campaign to halt trade in nuclear, chemical and biological weapons. But after strongly supporting the initiative, Australian leaders have begun backing away from US suggestions PSI countries could quickly begin intercepting North Korean ships and planes as part of the campaign. "We are not at this stage considering military contributions," Prime Minister John Howard said when asked about the US push. "We are considering ways and means of dealing with a very big problem," he said. Foreign Minister Alexander Downer, who is chairing the two-day PSI meeting which began Wednesday in Brisbane, also stressed that the first step in confronting illegal arms trade by the DPRK or other states was to enforce existing international treaties. "Whether there would be some sort of collective effort to put together military capabilities to intercept or whether this would be done on a country-by-country basis, those decisions are a long way off," Downer said after the first day's talks on Wednesday. Australians had been among the strongest backers of the PSI push, claiming such "coalition of the willing" action against rogue states was needed in light of the United Nations' failure to confront Iraq's alleged weapons of mass destruction program. But they appeared to be caught off guard this week when the head of the US delegation said Washington believed there was already legal authority to enable military forces from PSI countries to intercept DPRK vessels on the high seas -- something normally outlawed by the Law of the Sea. 8. PRC Three Gorges Dam The BBC ("CHINA DAM SWITCHES ON POWER," 07/10/03) reported that the Three Gorges Dam, the world's largest water control project, has begun generating electricity. The first of the dam's 26 generators to go into operation was connected to the power grid at 0131 local time on Thursday (1831 GMT on Wednesday), 20 days ahead of schedule, Xinhua news agency reported. The generating unit will supply 12.9m kWh per day to the power grids in central and east China, the project's vice general manager said. Yang Qing said the unit would have to pass a 30-day trial operation, before beginning commercial production in August. The combined energy of all the dam's 26 generators will eventually generate more than 80bn kWh of electricity each year. The Three Gorges dam is unprecedented in both the scale of its construction and the number of people who have been forced to move to make way for the project. By the time it is completed, the water level will reach a depth of 175 metres (574 feet), and create a reservoir which is 600 km (375 miles) long. Many villages and towns - and even some small cities - along the banks of the densely populated Yangtze have already been submerged by the rising waters. More than 600,000 people have been forced to relocate, some as far away as Shanghai, 1,000 km (600 miles) east. About 1.3m people will eventually have to move. The PRC's leaders say the country needs the 180bn yuan (US$22bn) dam to produce electricity, as well as control the annual flooding of the Yangtze. But critics are worried about the destruction of dozens of cultural heritage sites. And they say that if the dam breaks, it would spell disaster for those living down-river. Many environmentalists have also warned about the danger of soil erosion, as well as pollution caused by trapped sewage and industrial waste. 9. PRC on Hong Kong Protests Agence France-Presse ("BEIJING SENDS OFFICIALS TO TAKE STOCK OF CRISIS IN HONG KONG," 07/10/03) reported that the PRC has sent a team of officials to gauge Hong Kong's political crisis after massive protest rallies forced a controversial anti-subversion law to be shelved, sources and reports "The officials have been seeking views from various sectors in the community," said a pro-Beijing politician, who declined to be named. "They were also seen at the rallies to get a first hand report of the situation," he said. Their remarks confirmed reports in English-language Hong Kong dailies which said middle-ranking officials from China's Hong Kong and Macau Affairs Office, Ministry of Foreign Affairs, Ministry of State Security and intelligence agencies had been arriving since early this week. Hong Kong chief executive Tung Chee-hwa called off legislation of an anti-subversion bill on Monday after 500,000 people took to the streets on July 1 in the most spectacular protest in more than a decade. Some Hong Kong delegates to China's national and legislative and advisory bodies have told Beijing officials that Tung should step down over his handling of the controversy, the Post said. Analysts have said that the PRC is seriously contemplating the removal of Tung, whose popularity ratings have plunged to their lowest levels since he was installed as the territory's leader six years ago. However another local delegate to the National People's Congress told AFP Beijing would not want to risk involvement in the controversy "without first assessing the situation in Hong Kong." "It is unlikely Hong Kong SAR chief executive will be asked to step down by Beijing," he said. Other delegates said the central government in Beijing had so far not leveled criticism or expressed dissatisfaction over the worst crisis in the former British colony since the 1997 handover. Foreign ministry spokesman Kong Quan on Tuesday said Beijing believed "the majority of Hong Kong people and mainland compatriots" had confidence in Hong Kong's government. 10. PRC Flood Victims Agence France-Presse ("DEATH TOLL IN CHINA FLOODS RISES TO AT LEAST 298 WITH WORSE TO COME," 07/10/03) reported that the death toll from massive flooding in China has risen to at least 298, with up to 100 million people affected by swelling rivers and torrential rains, the International Red Cross said. So far 209,000 people have been made homeless and 843,000 people evacuated from homes that may not be there on their return. Despite rising flood waters in the north central Huai River basin in the provinces of Anhui, Jiangsu and Henan, the death toll from weeks of downpours have so far been largely confined to south central PRC. Rains falling in that region since June 21 began to abate this week after drenching Guizhou, Hunan, Sichuan and Guangxi provinces with devastating effect, France Hurtubise, spokeswoman of the Red Cross in Beijing said. "The destruction in Guangxi has been great with rivers swelling and washing away houses and crops," Hurtubise told AFP. "We have sent teams to Guangxi and Hunan and are continuing to assess the situation." Figures from the Ministry of Civil Affairs, show 66 people have been killed in Guizhou, 53 in Hunan, 39 in Sichuan and 32 in Guangxi due to rain and floods from May 1 to July 9. "According to information collected by the Red Cross Society of China, the heavy rains affecting large parts of southern, eastern and central China, have affected close to 100 million people in 16 different provinces," Hurtubise said. Financial losses were expected to exceed 800 million dollars nationwide, with waterlogged Jiangsu the worst affected with flooding by the Huai River in the north and the Yangtze River in the south. Some 209,000 people have been made homeless nationwide by the flooding, and more than 564,000 people have been evacuated from the Huai River basin in Anhui province alone, with 68,000 living near Hongze Lake being moved to prepare for diversion of lake waters according to the Red Cross. 1. Discussions on SDF The Asahi Shinbun ("UNDER HOUSE BEGINS DEBATE ON IRAQ BILL," 07/08/03) reported that Japan's Prime Minister Junichiro Koizumi proposed at a meeting of the House's plenary session that Japan think about crafting permanent legislation to allow the SDF to participate in international peacekeeping. Responding to a question from fellow Liberal Democratic Party member Yoichi Masuzoe, Koizumi said, "This is something we must look into for the future, taking into consideration that it would be consistent with the Constitution's preface (that says Japan wants to occupy an honored place in international society striving for the preservation of peace) as well as Article 9 (that does not recognize the right of belligerency of the state.)"To another question from the Liberal Party's Tatsuo Hirano, Koizumi said that while the main role of the SDF is to defend Japan, its mission internationally should be in areas where there is wide public support and understanding. Asked if it was possible to distinguish noncombat zones-a focal point of debate on the Iraq bill-Koizumi said the government will identify such areas after analysis of information obtained independently and from other nations. "We can make these judgments in a rational way. There should be no constitutional conflict," he said. On expected SDF activities in Iraq, Koizumi only said, "The government will take a careful look at the situation in Iraq before deciding on activities that the public will approve of." In contrast to the 2001 anti-terrorism special measures law that limited the SDF to logistics support from the sea, the Iraq bill allows the troops to do many things, including transporting ammunition, supplying water and airlifting relief goods. 2. Japan's Roles in Iraqi Reconstruction Kyodo ("US REQUESTING MORE FROM SDF IN IRAQ," Tokyo, 07/09/03) reported that the US has called on Japanese Self-Defense Forces (SDF) personnel to be more involved in military activities in Iraq than Japan had anticipated, sources familiar with bilateral ties told Kyodo News on Tuesday. The US asked during a series of meetings last week between officials from both governments that Japanese personnel fly CH-47 transport helicopters in Iraq, on the assumption they could carry weapons and soldiers for U.S.-led coalition forces, they said. The Japanese delegation stopped short of immediately accepting the request during the meetings in the US due to security concerns, the sources said. Japan mainly envisions SDF officers providing humanitarian and reconstruction assistance to Iraqi people and helping foreign forces keep order in the country. But the US request indicated it has greater expectations of missions involving SDF personnel in Iraq than Japan, they said. Japan is in the final stages of making a special law to allow the government to send SDF troops to Iraq. Prime Minister Junichiro Koizumi plans to send the first troops to Iraq, possibly in October, after parliament endorses the new law, a government source said. The sources said about 10 Japanese delegates were concerned that possible missions involving SDF personnel using the CH-47 helicopters could be too dangerous. The use of weapons by Japanese troops overseas is strictly limited under the Constitution, which renounces war or the threat or use of force as a means of settling international disputes. The security situation in Iraq has become a topic of domestic concern. The Japanese delegates -- bureaucrats from the Foreign Ministry and the Defense Agency as well as ranking SDF officers -- said they will study the US requests further. Japan proposed that SDF personnel be stationed at Baghdad airport, which is under US military control, and supply safe water to the US military after purifying water from ponds and lakes near the airport, they said. The Japanese delegates also said Tokyo is ready to provide Iraqi people with safe water outside the airport if the security situation permits, and to fly C-130 transport aircraft in Iraq. The US officials accepted the set of Japanese proposals but called for more, the sources said. The US requested that the SDF help with air transportation between key US bases in Iraq with CH-47 helicopters as well as land transportation. Washington also urged Tokyo to let C-130 airplanes be stationed in Qatar and closely work with the US military, they said. The House of Representatives cleared the Iraq SDF deployment bill last week, and the House of Councillors may pass it as early as next week. Kyodo ("JAPAN SENDS SDF PLANES, TROOPS TO JORDAN FOR IRAQ RELIEF, "Nagoya, 07/10/03) reported that Two Air Self-Defense Force (ASDF) transport aircraft carrying 41 Self-Defense Force (SDF) officers left Japan on Thursday morning for Jordan to help deliver relief supplies for the Iraqi people, government officials said. The 41 SDF members will be joined by 49 others who are traveling on a commercial airline, the officials said. Japan is sending the troops to help transport the relief goods to Iraq, although they will not enter that country, under an existing law on cooperation for U.N. peacekeeping operations, following a request by the World Food Program, the officials said. The government is considering sending troops to Iraq later this year under a special law now before the House of Councillors and expected to be enacted this month. According to the government, SDF contingents will be sent to Iraq to help in its reconstruction. The two C-130 planes took off from the ASDF's Komaki base in Aichi Prefecture, central Japan. They will stop in Okinawa, Thailand and India for refueling before reaching Amman on Monday, the officials said. The SDF team will start July 17 shuttling between Jordan and Italy, where the WFP has a supply base, to transport medical supplies, food, tents and other relief goods for Iraq. The two C-130 will have the letters "UN" inscribed on their vertical tail fins to show that they are on a U.N. mission. They will also be carrying 19 9-millimeter handguns for use by the SDF troops to protect themselves, the government officials said. The mission is scheduled to last until Aug. 18. If the U.N. so requests, the planes could also be used to transport goods between other countries neighboring Iraq, such as Egypt, and European countries, the officials said. Japan has dispatched C-130 transport planes overseas on 29 occasions since 1992 for peacekeeping activities as well as for refugee aid operations. Japan has 16 C-130 planes, each of which can carry up to 92 people or 20 tons of cargo and can fly some 4,000 kilometers without refueling. 3. Japan's ODA Strategy The Asahi Shinbun ("REVISED ODA CHARTER LIKELY TO BE UNCEILED IN AUGUST," 07/10/03) reported that for years Japan has been the biggest provider of ODA but in 2001 it dropped to second place after the US. In the fiscal 2003 budget, 857.8 billion yen was set aside for ODA. Japan allocated 911 billion yen in ODA in fiscal 2002, and 1 trillion yen the previous year. The Foreign Ministry, which is responsible for funding, has been discussing revisions to the ODA Charter, adopted in 1992, since the end of last year. While Japan led the world in ODA funding to developing nations for many years, its own dire fiscal conditions forced the government to cut expenditures for four straight years through fiscal 2003. Against this backdrop, the draft of the revised charter states that a key objective of ODA expenditures should be to promote friendship and exchanges that would bring benefits to Japan, according to a draft obtained by The Asahi Shimbun. Reflecting new global realities over the past decade, the revised charter states a pressing need to strive for peace and security amid all the turmoil. These concerns are crucial to implementing ODA policies, it adds. Input from the public is also being sought ahead of Cabinet approval of the revised charter, probably next month. The revisions were undertaken to counter criticism about effectiveness of ODA programs and a lack of transparency. Funding for PRC drew particularly harsh criticism, given its rapid pace of economic development in recent years. In fiscal 2001, Japan gave PRC $686 million. It was the second-largest amount for a single country. The Foreign Ministry began its review with an eye toward "heightening the flexibility and strategic value of ODA outlays," said an official. Another key aspect of the revised charter is to ward off criticism of an important diplomatic tool for Japan since this country is not able to mobilize military might to influence events overseas. Seen in this light, greater private-sector cooperation will be sought to implement ODA programs. This will include nongovernmental organizations and universities as well as submissions from the public of project proposals and appraisal of ODA programs by third parties. The draft of the revised charter also states that aggressive use of ODA will "contribute to the safety and prosperity of Japan and increase the benefits of the people." It defines humanitarian problems as poverty and famine and global issues, such as the environment and water, as major threats that go beyond national borders. The new charter will also transcend the traditional concept of ODA as being from country to country, stating that individuals are the ultimate target of ODA outlays. Developing countries that are striving for peace and democracy while guaranteeing human rights will be favored. Such assistance will be targeted at improving the economic and social structures of such countries. As in past years, Asia will continue to get the bulk of ODA funding. 4. US Views on DPRK Nuclear Program Kyodo ("US BELIEVES N.KOREA SEEKING STRONG NUCLEAR DETERRENT," Washington, 07/09/03) reported that the US intelligence community now believes that DPRK is seeking to have a strong nuclear deterrent against being itself attacked by the US, a U.S. government source said Wednesday. The assessment was made in a report compiled in June by the Central Intelligence Agency (CIA), based on information gathered by the CIA and other institutions, including the Defense Department's Defense Intelligence Agency, the source said. This indicates a change in the view within the U.S. government that DPRK is using its nuclear ambitions as a negotiating tactic. The source did not go into specifics of the CIA report, but said U.S. intelligence shows DPRK had purchased from PRC chemicals necessary to reprocess spent nuclear fuel rods. Vehicle and personnel movements were observed at the Yongbyon nuclear complex and DPRK is conducting tests to make nuclear warheads small enough to fit on its ballistic missiles, the source said. At PRC-brokered talks with the U.S. in Beijing in April, DPRK reportedly claimed it possesses nuclear weapons and has reprocessed the 8,000 spent fuel rods stored at the Yongbyon nuclear complex, a move that, if true, would enable it to make more nuclear arms. However, the CIA report says U.S. intelligence has so far picked up no sign of the krypton gas that is released into the atmosphere when nuclear fuel rods are converted into weapons-grade plutonium, according to the source. The CIA has no evidence either that DPRK has obtained advanced technology to prevent krypton gas from being released into the atmosphere during such reprocessing, the source said. Therefore, the U.S. intelligence community believes that DPRK's reprocessing of fuel rods, if it has really begun, would be at the initial stage, the source said.
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