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1. DPRK Nuclear Reprocessing
Reuters (Martin Nesirky, "NORTH KOREA SAYS PROCESSED NUCLEAR RODS FOR BOMBS," Panmunjom, 10/02/03) reported that the DPRK raised the stakes in a nuclear standoff on Thursday by saying for the first time it had processed fuel rods that could be used to make atomic bombs, but analysts said it was a pre-talks tactic. A DPRK Foreign Ministry statement said Pyongyang would continue to boost its nuclear deterrent because the US remained hostile to the DPRK. A vice foreign minister said Pyongyang would not pass on its nuclear capability to others. "(North Korea) successfully finished the reprocessing of some 8,000 spent fuel rods," said the statement, published by the official KCNA news agency. It dismissed as groundless reports that more international talks could be held soon to try to end the crisis but, significantly, did not rule them out altogether. Analysts, officials and diplomats said the DPRK's comments fitted a familiar pattern used to try to force concessions from the US and put pressure on ally PRC and, if anything, added strength to the view talks could take place soon. "This is what North Korea always does before negotiating," said Jin Canrong, an international relations expert at the People's University in Beijing. "They throw out a few new balls." The ROK's Foreign Ministry urged the DPRK to refrain from taking steps that would worsen the situation. "The North's announcement was very regrettable," Foreign Ministry spokesman Shin Bong-kil said in a statement. "We are deeply concerned it not only undermines inter-Korean relations and efforts for the peaceful resolution of the nuclear issues but hurts the atmosphere for dialogue set by the previous talks."
2. US on DPRK Nuclear Program
Agence France-Presse ("RUMSFELD AND POWELL EXPRESS CONCERN OVER NORTH KOREA NUCLEAR PROGRAM," Washington, 10/02/03) reported that US Defense Secretary Donald Rumsfeld expressed concern about statements from the DPRK claiming it has now produced enough plutonium for half a dozen nuclear weapons. "I think clearly the American people need to be concerned about North Korea," Rumsfeld said at a Pentagon news conference. A foreign ministry statement said North Korea had successfully completed the reprocessing of 8,000 spent fuel rods, guaranteed to yield enough plutonium for around six nuclear weapons. Rumsfeld said he was not aware of the latest DPRK statement. "But I think that anyone who listens to all of the things that come out of that country and registers them has to be concerned about what one's hearing," he said. Also speaking on the issue, US Secretary of State Colin Powell said DPRK claims to have reprocessed spent nuclear fuel rods are a matter of "serious concern." "This is the third time they have told us they have finished reprocessing the rods," Powell said at a press conference here. "We have no evidence to confirm that. So they say once again that they've reprocessed the rods. "I believe that this is a matter of serious concern for the international community," he said. "We are examining ways in cooperation with our colleagues in the area to provide the kinds of security assurances that might help move the process further along," he said. "But the North Koreans go out of their way to make these statements from time to time and we will continue to pursue diplomacy and not react to each and every one of their statements which seems to be a repeat of the previous statement," Powell said.
3. ROK on DPRK Nuclear Threat
Agence France-Presse ("ROK OFFICIAL PLAYS DOWN DPRK THREAT," 10/02/03) reported that a senior ROK official played down the DPRK's threat to pull out of six-way talks on its nuclear program, describing Pyongyang's tough rhetoric as a negotiating tactic. Vice Unification Minister Cho Kun-Shik voiced optimism that the DPRK was still interested in a fresh round of six-nation talks on ending the 11-month staff over its nuclear weapons drive. "Through direct and indirect contacts with North Koran officials, I believe the North is willing to continue dialogue. I see their threat as a negotiating tactic," he said. On Tuesday, the DPRK said it had no further interest in talks and was beefing up its nuclear weapons arsenal because of Washington's failure to offer concessions at last month's six-way talks in Beijing. The DPRK insists on a non-aggression pact and aid from the US before it will respond to US demands that it first scrap its nuclear weapons program.
4. DPRK Myanmar Missile Technology Export
Agence France-Presse ("NKOREA TRIED TO EXPORT MISSILE TECHNOLOGY AND PARTS TO MYANMAR: REPORT," Tokyo, 10/02/03) reported that the DPRK tried to sell missile technology and parts to Myanmar's military government this year, a Japanese news report quoted a US government official as saying. But it has not been confirmed whether the transaction was completed, the official told Kyodo news agency on condition of anonymity. The US intelligence community recently received advance information concerning the missile transaction between the DPRK and Myanmar, the official said, without disclosing details on the missile involved in the alleged deal. But US reconnaissance satellites had not picked up any indications that the transaction had been completed. The US administration suspects the DPRK and Myanmar may also be activating transactions of conventional weapons, the official was quoted as saying. The US is seen as increasing its monitoring of the DPRK's moves to proliferate missiles to countries other than Middle East states and Pakistan with which it is already believed to have such dealings.
5. PRC Manned Space Flight
Agence France-Presse ("CHINA SEEKS PRESTIGE OF THE ELITE MAN-IN-SPACE CLUB, SAY EXPERTS," 10/02/03) reported that the imminent launch of the first PRC into space is a bid by the Beijing government to gain international prestige as well as military and economic benefits, according to US experts. China has said it will join Russia and the US as the only nations to put man in space before the end of the year. According to PRC sources quoted by well-informed Hong Kong media, the blast off of China's Shenzhou V rocket will come after a key Communist Party meeting in Beijing in mid-October. It will be the fifth flight in the Shenzhou ("Divine Vessel") program, which started in 1992. In military applications, the Shenzhou program has "a fairly limited utility," said Dean Chen, a senior analyst at the Center for Naval Analysis research group, a private US group. "The primary considerations are prestige and economics," Chen said, likening the move to the Beijing hosting the Olympic Games in 2008. "It's a coming-out party. It says to the world that we have arrived, we are now an advanced nation." As for the economic dividends, "it is conceivable that the PRC are hoping that a successful manned launch will suggest that its reliability is sufficient to risk millions of dollars on satellite launches," in a bid to win over potential clients who lack confidence in the PRC's space program, Chen said.
6. PRC National Day Celebration
Agence France-Presse ("CHINA CELEBRATES NATIONAL DAY WITH RECORD-BREAKING MARRIAGES AND TRAVEL," 10/02/03) reported that the PRC is celebrating National Day with an unprecedented number of marriages and record-breaking travel, state media reported. More than 2,000 couples tied the knot in the PRC capital alone on the first day of the week-long holiday, the Beijing Star Daily said Thursday. The number of marriages Wednesday was the largest number in a single day in the PRC capital's history, the Beijing Times said. Nationwide marriage registration figures were not immediately available. The holiday is one of three designated "golden weeks" in the year, meant to get the PRC's 1.3 billion people to spend more lavishly to help lift the economy. The previous "golden week", in early May, was canceled because of the outbreak of pneumonia-like SARS disease in spring, and the government is hopeful this holiday will boost spending in travel and retail sales, both severely affected by the outbreak.
7. Russia Military Development
The Associated Press (Vladimir Isachenkov, "PUTIN SAYS RUSSIAN MILITARY STILL MIGHTY," Moscow, 10/02/03) reported that President Vladimir Putin said Thursday that Russia can modernize its aging strategic arsenal and maintain its military might for years, relying on stockpiles of Soviet-built missiles that he boasted are capable of overcoming any defense system. Separately, the Defense Ministry warned that Russia will have to radically change its military reform plans - and its nuclear strategy - if NATO fails to shed what it called an "anti-Russian orientation." Putin said at a meeting with top military brass that Russia has several dozen of what the West calls SS-19 Stiletto missiles, which he added were stockpiled without fuel and "in that sense are new." He said they will gradually replace older missiles that are taken off duty. Highly toxic liquid missile fuel deteriorates over time and gradually corrodes the missile structure, thus limiting its lifetime. "Their capability, in particular in the sense of their ability to penetrate any missile defense systems, is unparalleled," Putin said. Russia sought in vain to persuade the US not to abandon a Soviet-era treaty in order to develop a national missile defense system. Military analysts have warned that Russia could soon find itself unable to maintain nuclear parity with the US as its aging Soviet-era missile gradually come out of service. Putin's statement was apparently intended to reassure both the military and the public that the nation's nuclear deterrent potential wouldn't dwindle. "Thus, we have enough time to develop new types of weapons of the 21st century without rush," Putin said. He added that Russia had made "serious" progress in designing new weapons.
1. DPRK on Multilateral Talks
Chosun Ilbo (Kim Jae-ho, New York, "NORTH TALKS DOWN 6-WAYS", 10/01/03) reported that DPRK is uninterested in returning to the six-party talks and has made no promises regarding them, DPRK Vice Foreign Minister Choe Su Hon said Tuesday (local time). Choe, in a speech at the United Nations General Assembly, said that DPRK had no interest in further talks about its nuclear program, because "it has been proven that U.S. is only interested in turning the six-party talks into grounds for completely disarming and killing the DPRK by all means." DPRK will not consider joining the talks unless U.S. signs a non-aggression pact, he said. Choe promoted Pyongyang's step-by-step system for solving the nuclear crisis over U.S. plan. "Simultaneous action is a realistic way to denuclearize the Korean Peninsula, and any opposition to it is tantamount to a rejection of that goal," he said. When DPRK and the U.S. are leveling guns at each other, asking the other party to put down the guns first makes no sense, Choe said. "This can be construed only as an ulterior intention to disarm and kill the DPRK." Choe said the current nuclear issue is a result of America's hostile policy toward DPRK. Plans to politically, economically and militarily isolate DPRK originate from a deeply-rooted hostility that rejects a coexistence with the political regime that DPRK maintains, he said, adding that Pyongyang was committed to ending the nuclear crisis through peaceful dialogue. The Associated Press reported Wednesday that U.S. Assistant Secretary of State James Kelly was disappointed with Choe's speech. Kelly was returning from the three-party talks in Tokyo composed of ROK, Japan, and U.S.. Richard Boucher, spokesman at the State Department, was unsurprised: "In the end, they have made a number of statements like this, and a number of statements not like this. We just have to see what they do." When asked if DPRK had informed U.S. through official diplomatic channels that it was rejecting the six-way talks, Boucher said he had no information about it. He affirmed that U.S. believed that the best way to solve the situation was through the six-party process.
2. ROK on ROK Troops in Iraq
Chosun Ilbo (Joo Yong-jung , Washington, "AMBASSADOR TO U.S. TOUTS DISPATCH", 09/01/03) reported that The Ambassador to U.S. Han Seung-ju said Tuesday that Seoul should make a strong resolution regarding dispatching additional troops to Iraq, rather than employing a give-and-take method. "When we sent engineer corps and medical troops to Iraq the last time, we did not put any conditions on it," Han said. "As a result, the positive effect was greater." The ambassador was asked his opinion on the dispatch question by the Grand National Party lawmaker Ha Sun-bong during a National Assembly foreign affairs and diplomacy inspection at the Korean Embassy in Washington. "I am sure that it will eventually be profitable to our national interests this time as well (if we dispatch troops)," Han said. Dispatching troops to Iraq may give ROK economic benefits, such as through participating in Iraq's reconstruction, but more importantly it will mark a big step for the alliance between ROK and U.S., the ambassador said. "I believe that the alliance is a measure that is reflected in the ratings given by Moody's and S&P - the world's view of our economy will change," he said. When asked by the United Liberal Democrat Rhee In-je whether the war in Iraq could become a second Vietnam War, Han said, "There is no such possibility."
3. ROK-DPRK Relations
Joongang Ilbo (Jeong Yong-soo, "UNIFICATION MINISTER SAYS REFORM AFOOT IN NORTH", 10/01/03) reported that Unification Minister Jeong Se-hyun said in New York yesterday that DPRK has been undertaking "meaningful" reform to orient itself more toward a market economy, and its emphasis on an "Army First" policy does not necessarily reflect a shift toward an increasingly aggressive position. Mr. Jeong spoke to the Korea Society, a group of former diplomats and academics studying Korean Peninsula issues. Mr. Jeong related an episode where a visiting DPRK official spoke of an effort within the communist country to study the capitalist economic system, which the official said had been the instruction of the former DPRK leader Kim Il Sung years ago, but had been ignored by senior communist party officials for years. There have been considerable changes since 1999 to indicate that DPRK is moving to adopt market principles in its economy, he said. Mr. Jeong said the "Army First" policy could be easily regarded as propaganda hostile to foreign powers, but it is also designed to protect the regime's legitimacy and the stability of its society. Many members of DPRK's 1.2 million-strong military could be considered some of the best workers among the country's 23 million people. The emphasis on military capability could easily be an attempt by DPRK to operate its economy more efficiently, he said. Mr. Jeong urged greater effort on the part of U.S. to engage DPRK, which will speed DPRK economy's opening. Mr. Jeong's comments echoed Foreign Minister Yoon Young-kwan's explanation in recent weeks that ROK's strategy in tackling DPRK's nuclear program is to encourage DPRK to become more dependent on other economies, which will lessen its vulnerability and also reduce its perceived need to rely on military capability for protection. Mr. Jeong said DPRK's ideology of Juche, or "self reliance," might also be in the process of being reinterpreted by the regime so that it can justify its evolving policy.
4. DPRK Economic Reforms
Joongang Ilbo (Ser Myo-ja, "NORTH ISSUES TAX, LABOR CODES FOR GAESEONG", 10/01/03) In an attempt to attract foreign investment to one of its inter-Korean exchange programs, DPRK yesterday made public its regulations on taxation and labor for the Gaeseong industrial complex. It also fixed the minimum monthly wage for a DPRK laborer at the complex at $50. According to a news report broadcast by DPRK's Radio Pyeongyang, the regulations were adopted at the Supreme People's Assembly on Sept. 18. Under the regulations for the proposed complex in Gaeseong, a city about 70 kilometers (44 miles) north of Seoul and 170 kilometers south of Pyeongyang, the corporate income tax rate will be 14 percent of a firm's annual profits. The corporate tax rate in ROK is 27 percent. Contrary to its ban on dollars, DPRK said that companies in the complex must pay the taxes in dollars. Tax exemptions will be available for five years for some model companies. Each DPRK worker will receive at least $57.50 a month, since compensation will include a social insurance premium of 15 percent of his monthly wage. The statutory work hours will be 48 per week. An agreement to develop the complex was signed in August 2000.
5. ROK Troops in Iraq
Donga Ilbo (Variable For Iraq Dispatch: NK Nuclear Dialogue reported that On October 1, President Roh Moo-hyun announced, "Assurance of peace and stability in the Korean peninsula is the priority in reviewing the case of sending Korean troops to Iraq" and added, "Most of all, we need to create a more stable situation for dialogue that will guarantee a peaceful resolution of DPRK nuclear crisis." Roh gave the speech at the 55th Armed Forces Day event held at the Seoul Airport, Sung-nam. In his speech, he highlighted that "whichever direction the deployment final decision takes, it should not become a factor that inhibits integration of the people." President Roh also added, "In order to establish a strong security position, we need to improve our self-defense capacity within 10 years. If ROK cannot defend itself, when it is the 12th largest economy in the world, it is a dishonor to the country in the international stage and the people of ROK will feel ashamed." Meanwhile, on the same day, Foreign minister, Yoon Young-kwan said, "We are aware that there are many negative responses among the people about sending troops to Iraq. The most important factor in deciding on this matter is what the President thinks." This day at a meeting with the press, upon receiving questions from the chief editors of politics concerning Iraq dispatch, Minister Yoon answered as follows. When asked whether it would be possible to dispatch military engineers and military doctors instead of combat troops, Minister Yoon answered, "U.S. asked us to send light infantry to maintain public order in Iraq. That is why combat troops were mentioned." Surrounding the next 6-way talks, Minister Yoon said, "It will be difficult to hold the talks this month because it is a busy month. It should be held either in November or December, but the date has not been finalized." Han Seung-joo, ROK Ambassador to U.S. said, "Taking into consideration the somewhat positive effect that deployment of military engineers and military doctors to Iraq had on ROK-US relations and ROK's diplomatic stance, additional dispatch could bring a multiplying effect." At the parliamentary inspection by the committee of reunification, diplomacy and trade (chair, Seo Jung-hwa Grand National Party), Han suggested his personal opinions that"It is advisable to dispatch extra troops to Iraq without negotiating any conditions." "Even if we do not attach any conditions to it, it will have positive effects," he added. Surrounding the specific size of the deployment, he commented, "It could be a minimum of 3,000 or even 5,000 as U.S. has mentioned, but it is not of something that we could define in terms of numbers. What is needed is the structure that takes after the formation of a division." Meanwhile, Han said in relation to the date of the six-way talks that "PRC is directly and indirectly communicating with DPRK. Although we hope it to be held in October, shouldn't it be held in November at the latest?"
1. Japan-US Military Cooperation
Kyodo ("MSDF PUT SAILORS ON U.S. CRAFT AFTER 9/11," Sasebo, 09/15/03) reported that the Maritime Self-Defense Force (MSDF) placed personnel aboard US patrol vessels and under US military command at the US Navy's Sasebo base shortly after the Sept. 11, 2001, terrorist attacks, according to sources at the base. The dispatch occurred before revisions of the Self-Defense Forces Law were enacted allowing the SDF to engage in sentry operations at US bases, and could be considered an example of Japan exercising the right of collective self-defense. The MSDF dispatched one seaman each to three US patrol vessels called landing craft utility (LCU) vessels on round-the-clock sentry missions around the US Navy's amphibious assault ship Essex at Sasebo in late September 2001, the sources said. A Defense Agency official admitted MSDF personnel were stationed aboard the three US patrol craft as liaison officers to ensure the safety of MSDF vessels in Sasebo Bay at that time and that the move was legal. Several MSDF members were rotated on shifts and served under a Japanese lieutenant, the sources said. The Essex was being loaded with a large amount of bombs and missiles from an ammunition bunker at Sasebo base from Sept. 20 to 22 in 2001, when it left on an urgent mission.
2. Japan Missile Defense System
The Japan Times ("DEFENSE AGENCY WANTS NEW RADAR AS PART OF MISSILE DEFENSE SYSTEM," 09/15/03) reported that the Japanese Defense Agency has decided to develop a new type of radar with improved detection capabilities for monitoring the DPRK's Nodong ballistic missiles by fiscal 2006 as part of its plan to build a missile defense system, agency sources said. The agency is planning to request around 15 billion yen for its fiscal 2006 budget to put together one such radar set, tentatively called the FPS-XX radar, the sources said. It determined that a radar system capable of detecting ballistic missiles several hundred kilometers away from any base in Japan would be necessary to complement plans to introduce a missile defense system starting in 2007, the sources said. Critics are expected to complain that the costs for preparing for the missile defense system, already estimated at around 500 billion yen over four years starting next year, will increase, while the DPRK could also protest against the plan for the new radar. But the agency wants to make budgetary requests for one new radar set per fiscal year starting in fiscal 2006, and begin deployment in fiscal 2008 so that there will be four in place, mainly at Air Self-Defense Force radar sites facing the Sea of Japan, by fiscal 2011, the sources said. In addition to the new radar, the agency plans to upgrade seven existing radar sets to build an 11-site network, the sources said.
3. US on SDF Dispatch to Iraq
The Japan Times ("BAKER NUDGES JAPAN TO DISPATCH SDF TO IRAQ," 09/18/03) reported that US Ambassador Howard Baker indirectly asked Japan to send the Self-Defense Force (SDF) troops to Iraq to help rebuild the war-ravaged country. "It is entirely up to Japan" to decide on the form of its contribution for Iraq's rehabilitation, "but I believe Japan is committed to full participation in the efforts to restore not only stability but rehabilitation of Iraq," Baker told reporters after a meeting with Foreign Minister Yoriko Kawaguchi. Baker said he also discussed with Kawaguchi Japan's possible financial contribution for Iraq's rehabilitation, although he did not elaborate. The US is reportedly displeased with the uncertainty surrounding the dispatch of SDF personnel to Iraq. Kawaguchi told Baker that Japan's commitment is unshakable. She said Japan will decide on the dispatch after examining the results of a fact-finding mission sent to Iraq, Japanese officials said.
4. Japan Constitutional Revision
The Japan Times (Kanako Takahara, "PANEL CALLS FOR REINTERPRETATION OF THE ANTIWAR CONSTITUTION," 09/19/03) reported that in light of the nuclear threat posed by the DPRK, the Japanese government should alter its interpretation of the Constitution and allow Japan to exercise the right of collective defense, according to a report compiled by an advisory panel to Foreign Minister Yoriko Kawaguchi. "The government's interpretation of the Constitution, barring the country from exercising the right of collective defense, is an obstacle," the report says. The panel, headed by University of Tokyo professor Shinichi Kitaoka, submitted the report to Foreign Minister Yoriko Kawaguchi. Touching on Japan's vow that it will "not produce, not possess and not allow nuclear weapons into the country," the report claims that the third principle is effectively violated by the port calls of US ships carrying nuclear arms. Rather than clinging to these principles, however, Japan should explicitly allow US vessels of this kind to call at Japanese ports, given the situation in the DPRK, the report says. The panel was set up in August 2002 as part of Kawaguchi's plans to reform the Foreign Ministry.
5. Japan's Support on Iraqi Reconstruction
The Japan Times ("TOKYO TO STEP FORWARD WITH AT LEAST $1 BILLION FOR IRAQ," 09/19/03) reported that Japan, responding to a US request, has begun preparations to offer about $1 billion in 2004 to help rebuild Iraq, government sources said. The sum has yet to be finalized and could swell to as much as $3 billion if Japan finds the US wants more, the sources said. "We intend to cooperate by considering a due share," Chief Cabinet Secretary Yasuo Fukuda said. He did not specify how much of the cost Japan would cover, saying the government will decide after seeing "how the international community moves." Prime Minister Junichiro Koizumi will make a decision taking into account a US response to the envisaged sum, and plans to offer the result when President George W. Bush visits Japan on Oct. 17 for a summit, the sources said. The Japanese government plans to then announce its contribution at an international donors' meeting for Iraq to start Oct. 23 in Madrid, they said. The Bush administration has said reconstructing Iraq could cost as much as $75 billion and is seeking congressional approval of $20 billion in emergency spending. In his address, Bush named Japan, European nations and Middle East states as countries that "should contribute" to the success of freedom in Iraq and Afghanistan through funding and other forms of involvement in the US-led campaign.
6. Japan UNSC Permanent Seat
The Japan Times ("PANEL EYES UNSC SEAT," 09/19/03) reported that Foreign Minister Yoriko Kawaguchi asked a new advisory panel to discuss how Japan can win a permanent seat on the UN Security Council. "The public is questioning whether the United Nations is functioning well after (the division) over Iraqi issues," Kawaguchi said at the outset of the panel's inaugural meeting. "I wonder if it is good that Japan has no (permanent) seat on the Security Council even if it is shouldering a huge financial burden." The panel will also discuss ways to increase the number of Japanese working for the UN as well as financial reforms of the world body. The panel, headed by Yozo Yokota, special adviser to the rector of United Nations University, comprises 10 members from academia, business and nongovernmental organizations.
7. Russian Oil Pipeline
The Japan Times (Frank Ching, "MOSCOW MUST WALK A FINE LINE AS TOKYO AND BEIJING COMPETE FOR RUSSIAN OIL," Hong Kong, 09/17/03) reported that the PRC and Japan are competing each other for Russian Oil. Two years ago, the PRC and Russia signed a strategic agreement concerning the construction of a 2,400-km pipeline at a cost of $1.7 billion to bring Russian oil from Angarsk, in eastern Siberia, to Daqing, in Heilongjiang province. The Chinese, who were self-sufficient in oil until about a decade ago, now require increasing imports to fuel their modernization drive and have become the world's second-largest oil consumer, second only to the US. However, Japan cast a cloud over the PRC's plans by making a bid for a much longer and more expensive pipeline to be built from Angarsk to the Russian coastal city of Nakhodka, on the Pacific coast, from where the oil can be put aboard tankers to be shipped to Japan. The Japanese want to reduce their dependency on oil from the unstable Middle East. Last year, Transneft, the state-owned pipeline monopoly, put forward a plan for an Angarsk-Nakhodka pipeline and said it had been approved by Russian President Vladimir Putin. The Chinese were bewildered by this turn of events. In May, when Chinese President Hu Jintao paid a state visit to Russia, China National Petroleum Corporation and Russia's private oil producer YUKOS signed an agreement, setting out key aspects such as the quality of oil to be supplied, contractual terms and pricing formulas. However, after Hu's state visit, the Japanese stepped up their efforts to persuade Russia to select the 3,800-km Nakhodka route. From the Russian standpoint, the attractiveness of Nakhodka is that it could potentially open up other markets in East Asia, including the ROK, Southeast Asia and even the US, while a pipeline to Daqing would serve only China. The Japanese are offering generous terms to finance such a pipeline. A major obstacle, however, is that the Nakhodka pipeline would need to carry at least 50 million tons of crude a year to be viable, whereas the shorter Chinese route would need to transport only 20 million tons a year, which the eastern Siberian region can supply. In fact, in April the chief executive of Transneft, Semyon Vainshtock, said his company's feasibility study "left no room for doubt" that the area did not have enough oil to justify the $5.2 billion pipeline project. Still, Japan refused to give up. The Russians have been talking about constructing a pipeline that would branch off and serve both the PRC and Japan. However, it does not appear that such a move can be economically viable, since there isn't enough oil to satisfy the needs of both countries.
IV. People's Republic of China
1. PRC-ROK Relations
People's Daily (Luo Hui, "PRESIDENT HU MEETS ROK GUEST," Beijing, 09/26/03, P1) reported that Chinese President Hu Jintao said he believes that relations between PRC and the ROK will develop in the new century under concerted efforts from both sides. Hu made the remarks on September 25 at a meeting with Park Kwan-yong, speaker of the ROK National Assembly. Hu pointed to the rapid development of Sino-ROK relations in recent years and the frequent contact between leaders of the two countries which has strengthened mutual understanding and trust. He said the growth of bilateral relations requires participation and support from legislative bodies of the two countries, hoping that PRC's National People's Congress (NPC) will strengthen exchanges and cooperation with the ROK National Assembly to make new contributions to the development of bilateral relations. Park said the decision made by the heads of state of the two countries on building bilateral partnership of overall co-operation has won praise from the two peoples, and the ROK National Assembly will make joint efforts with the NPC for the establishment and development of such a relationship.
2. PRC's Anti-terrorism Measures
China Daily (Guo Nei, "HU WANTS TOUGHER SECURITY SCRUTINY," 09/27-28/03, P1) reported that President Hu Jintao is urging all departments across the country to implement anti-terrorism measures to guarantee national security and public safety. Hu made the remarks on September 26 after watching an anti-terrorism exercise in Beijing. The rising threat of terrorism has negatively affected world peace and development, Hu said, adding that PRC is facing a realistic threat of terrorism after a series of major attacks in other parts of the world. The Chinese Government adamantly opposes terrorism in all forms, and advocates international co-operation to fight the threat. The president called the anti-terrorism exercise a demonstration of the government's determination to oppose terrorism and safeguard world peace. The country has held many anti-terrorism drills to improve people's awareness of public security, said the report.
3. PRC's Commentary on Putin's US Visit
China Daily ("PUTIN'S US VISIT AIMS TO IMPROVE TIES," Moscow, 09/26/03, P4) carried a commentary that Russian President Vladimir Putin left for the US on September 24 for a four-day working visit. Russian analysts say the trip will focus on repairing ties that have cooled in the past few months due to differences over Iraq. Russian-US relations had improved significantly thanks to Moscow's strong support for the war on terror in the aftermath of the September 11 terrorist attacks against the US, but differences over Iraq have marred the relations between the two anti-terror comrades. Putin's trip may help Russia seek constructive co-operation with the US and promote the development of their "strategic partnership." Rebuilding Iraq and shoring up stability there will be high on the agenda during the visit. Russia firmly opposed the US military operation against Iraq, but after the war, Moscow has made major efforts to improve relations with the US, adopting a position of constructive co-operation on the Iraq issue within the framework of the UN Security Council. It is out of its own strategic needs that Russia seeks to maintain constructive co-operation with the US, said the article. Moscow and Washington share broad common interests in fighting international terrorism and the proliferation of weapons of mass destruction. Russia also needs US aid in developing its economy. Russia is also fighting Chechen separatists that have close links with international terrorists, and would face more challenges if the situation in Iraq continues worsening. And avoiding direct confrontation with the US and expanding constructive co-operation with it will enhance Russia's economic interests in post-war Iraq, such as those in the oil sector. Moscow also hopes to reap practical benefits from improved ties with the US in trade, investment and energy co-operation. Both Russia and the US favor a non-nuclear Korean Peninsula, but Moscow has stated its opposition to the use of force in settling the nuclear issue on the peninsula. Observers say it conforms to Russia's interests of national security, strategy and economic development to push forward its strategic partnership with the United States, but arduous efforts are needed for the two sides to bridge their differences, according to the article.
4. ROK on Military Help in Iraq
China Daily ("PROVISO SET FOR TROOP REQUEST ROK LINKS ASSISTING," Seoul, 09/26/03, P1) reported that ROK President Roh Moo-hyun, facing hostility at home over a US request for military help in Iraq, has linked deployment of ROK troops to progress on defusing tensions on the Korean Peninsula over the DPRK' nuclear ambitions. In comments that could raise eyebrows in Washington, Roh connected the talks and the request publicly for the first time, although ROK officials have made the link privately. The US has asked the ROK for combat troops to help ease the burden of stabilizing post-war Iraq. ROK officials say a major factor is stability on the peninsula, where 37,000 US troops are stationed in the South. The US and the DPRK are at loggerheads over the North's nuclear program. ROK Unification Minister Jeong Se-hyun played down the linkage at a briefing on September 25. Jeong has said he will convey updated views at North-South talks in Pyongyang next month. Foreign ministers have been meeting during the UN General Assembly session. The DPRK took a one-two swipe at US yesterday for its policy towards Pyongyang with editorials in the main newspapers, Rodong Sinmun and Minju Joson. Rodong Sinmun said US talk of impending policy changes was a trite trick. Minju Joson said US was becoming isolated.
5. SCO Talks
China Daily (Meng Yan, "FREE TRADE ZONE PROPOSED," 09/24/03, P1) reported that Premier Wen Jiabao on September 23 proposed setting up a free trade zone within the Shanghai Co-operation Organization (SCO). Wen raised the proposal with Kazakh Prime Minister Daniyal Akhmetov, Kyrgyz Prime Minister Nikolai Tanayev, Russian Prime Minister Mikhail Kasyanov, Tajik Prime Minister Akil Akilov and Uzbek Prime Minister Utkur Sultanov at the SCO talks in Beijing. The leaders signed a framework agreement on multilateral economic co-operation among SCO's six member countries. They also released a joint communique at the conclusion of their consultations. The framework agreement aims to deepen economic co-operation among SCO members and improve their investment environment, according to the joint communique. The joint communique says the organization has become an important means of safeguarding safety and stability in Central Asia and promoting development among its members. The prime ministers of the SCO member countries have reached a consensus on how to further develop consultations in future and on how to implement multilateral co-operation in various fields, said the report.
6. PRC-US Relations
China Daily (Jiang Zhuqing, "GOVERNMENT CONDEMNS UNJUST US SANCTIONS," 09/24/03, P1) reported that PRC on September 23 expressed "strong dissatisfaction and resolute opposition" to arbitrary sanctions imposed by the US on China North Industries Corporation and related sectors. Foreign Ministry spokesman Kong Quan made the remarks in response to a report about the US Government's sanctions. Kong said the Chinese Government has always opposed the proliferation of weapons of mass destruction and their means of delivery. He said the US Government has provided no proof or explanation for the sanctions, which affect not only individual companies but the development and production of all missiles, aircraft, spacecraft, electronics and warplanes in PRC. The sanctions have made PRC doubt the sincerity of US co-operation with PRC to limit weapons proliferation and suspect its motives, Kong said. In US, President George W. Bush said on September 22 that the present US-PRC relationship is full of vitality, and this is crucial to the two countries. He made the comments during talks with visiting Chinese Foreign Minister Li Zhaoxing. The US is willing, together with PRC, to continue promoting the bilateral relationship, Bush said. Bush reiterated the United States adheres to the one-China policy, abides by the three joint communiques between the two nations and opposes the "independence of Taiwan."
7. Relations Across Taiwan Straits
China Daily (Xing Zhigang, "PLAN TO REWRITE HISTORY UNDER FIRE," 09/24/03, P1) reported that Taipei is using school history lessons to pursue independence for the island, mainland experts on Taiwan studies said on September 23. They said planned changes to the school curricula are aimed at severing cultural and historical links between the island and PRC. Taiwan's "ministry of education" recently published its draft guidelines for high school history textbooks, which are expected to be enacted in November. The guidelines, however, incorporate Chinese history from the 1500s onwards - including the Qing Dynasty (1644-1911) and the "Republic of China" (1912-49) - into modern world history. The proposed changes to history textbooks have also drawn heavy criticism from within the island. A number of historians and academics wrote letters to local media to express their opposition. The move should be considered both an academic disgrace and a serious moral crime against the Chinese people, said Professor Tseng Hsiang-duo from Suchow University.
8. DPRK on Nuke Resolution
China Daily ("DPRK REJECTS RESOLUTION TO DISMANTLE NUKE PROGRAM," Teheran/Seoul, 09/24/03, P1) reported that the DPRK rejected a resolution from the UN nuclear watchdog urging Pyongyang to dismantle its nuclear program and said it proved the organization was a US stooge. The IAEA on September 26 passed a Canadian-sponsored resolution repeating calls for the DPRK to abandon any nuclear weapons, rejoin the NPT and readmit IAEA inspectors. "The DPRK can never recognize but declares invalid such unreasonable resolution," said the North's official KCNA news agency in an English-language report. "This resolution does not deserve even a passing note," the agency said. The KCNA said the IAEA was acting as a henchman and spokesman for the US.
9. PRC's Commentary on PRC-Russian Ties
China Daily (Zhu Qiwen, "A PIPELINE FOR PROSPERITY," 09/26/03, P4) carried a commentary saying that Russian Prime Minister Mikhail Kasyanov's renewed commitment to the Russia-PRC oil-pipeline project clearly underscored the importance his government attached to the strategic partnership of co-operation between PRC and Russia. Yet, his stopping short of giving a hoped-for nod to the proposed route indicates that bilateral economic ties might still have to stand tests before bearing generous fruits. In the run-up to Kasyanov's two-day state visit to PRC, which ended yesterday, the increasingly louder media talk that the planned route may be blocked and replaced by a rival pipeline, bypassing PRC to Russia's Far East port of Nakhodka has caught wide public attention. After years of study and assessment, this project has been proved realistic and practical, the article said. The pledge not only helps breathe new energy into the Russian-PRC pipeline project, but also adds to the momentum both countries are fostering to expand bilateral trade and economic co-operation, the article commented. Bilateral economic and trade relations have progressed rapidly in recent years, but not as fast as both countries have hoped. As the most important part of Sino-Russian economic ties, co-operation in energy should be further strengthened. The current scheme means more than a symbol of the two countries' "strategic partnership of co-operation." It will also play a substantial role in fuelling PRC's latest campaign to revive its Northeastern industrial base as well Russia's development of its Far East region.
10. PRC-Russian Ties
People's Daily ("CHINESE, RUSSIAN PMS HOLD TALKS," 09/25/03, P1) reported that the development of the strategic partnership of cooperation between PRC and Russia complies with the wishes and fundamental interests of both sides and the changing international circumstances, said Chinese Premier Wen Jiabao on September 24 when talking with his Russian counterpart Mikhail Kasyanov. Wen said the two countries had seen the sound development of bilateral ties and positive results in cooperation in recent years. He stressed the new leadership of PRC took PRC-Russia ties as a priority of its foreign policy, and was willing to join with Russia to explore a new stage of bilateral ties. He hoped the two sides took a long-term perspective and expanded cooperation at all levels. Speaking highly of the consultation of prime ministers of the Shanghai Cooperation Organization (SCO) members, Wen said the talks achieved results in two great tasks: strengthening mechanism construction and closing a multilateral cooperation program. Kasyanov said Russia and PRC had achieved important results in all cooperative fields and the two sides should cherish the strategic partnership of cooperation and make efforts to realize the bilateral cooperative goals set by the two governments. After the meeting, Wen and Kasyanov signed a joint communique of the eighth regular meeting of the prime ministers of PRC and Russia and attended the signing ceremony of other five documents.
11. DPRK-ROK Relations
China Daily ("BREAKING BARRIERS," 09/22/03, P11) reported that Chang Ik-sung, from the DPRK, and his sister Chang Ik-soon, who lives in the ROK, exchange presents at a resort at Mt Kumgang in the North on September 21. A group of 453 from the ROK travelled to the DPRK to reunite with their relatives after being separated since the 1950-53 Korean War, said the report.
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BK21 The Education and Research Corps for East Asian Studies
Department of Political Science, Korea University, Seoul, Republic of Korea
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