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Northeast Asia Peace and Security Network DAILY REPORT For Thursday, February 12, 1998, from Berkeley, California, USA |
PLEASE NOTE: There will be no Daily Report issued on Friday, February 13 or Monday, February 16. The Daily Report will resume on Tuesday, February 17.
1. Light-Water Reactor Project
Nucleonics Week (Mark Hibbs and Margaret L. Ryan, "PWR EXPORT
PERMIT FIASCO LEAVES FEASIBILITY OF KEDO DEAL IN DOUBT,"
02/12/98) reported that the withdrawal of an application by ABB-
Combustion Engineering to export two reactors to the DPRK has
exposed possible legal problems in the US that may prevent the
implementation of the Geneva Accord. [Ed. note: See Light-
Water Reactor Project in the US Section of the February 5
report.] The withdrawal of the application came after Victor
Gilinsky and Henry Sokolski of the Nonproliferation Policy
Education Center called for a public hearing on the license
request. They pointed out that, under US law, nuclear technology
can not be exported to a country with which the US does not have
a nuclear cooperation agreement. An unnamed critic stated, "When
the State Department cut this deal, it basically believed that
the ROK would pay for it, and that Korean reunification would
happen fast and with a soft landing, letting the ROK take over
the project before the reactors would be turned over to the
North." Another unnamed official said, "The hope was this
project would drag on for years, and nothing would ever really
happen." The article quoted an unnamed senior official as saying
that the ROK's financial crisis would not have a serious impact
on the project, as it will be "several years before serious money
would be spent." However, the article pointed out that,
according to the license request, the contracts for the reactor
sale are to be signed this year and the first shipment of
components to the DPRK is expected in late 1999. Officials in
Washington said that the International Monetary Fund could not
support the ROK spending US$5 billion for nuclear power plants in
the DPRK.
2. Food Aid for DPRK
The AP-Dow Jones News Service ("U.N. LAUNCHES NEW APPEAL FOR
HUMANITARIAN AID TO N. KOREA," United Nations, 02/12/98) reported
that the UN on Thursday released a statement appealing for
US$415.6 million for food and humanitarian supplies for the DPRK.
The statement said, "While generous and timely contributions from
the international community during 1997 averted famine, the
humanitarian situation in still remains precarious." The
US$415.6 million figure includes US$378.2 million requested last
month by the World Food Program to pay for 657,972 metric tons of
food. The additional funds would be for upgrading health care
services, water, sanitation, and agriculture.
3. DPRK-Japan Relations
Reuters ("NORTH KOREA SLAMS JAPAN FOR RAISING ABDUCTION ISSUE,"
Tokyo, 02/11/98) reported that the DPRK's official Korean Central
News Agency (KCNA), in a report late on Wednesday, criticized the
Japanese government for raising the issue of the alleged
abduction of Japanese nationals and consequently delaying the
resumption of diplomatic normalization talks. The report stated,
"Both sides agreed to restart the full-fledged talks without
preconditions. However, the Japanese side overruled the
agreement between the two sides and raised the groundless
'missing person' issue as a precondition for the resumption of
the talks, intentionally creating difficulties in restarting the
talks at an early date." It added, "If Japan has no intention to
restart the talks ... we will stop seeking the resumption of the
talks."
4. ROK Layoff Bill
The Wall Street Journal ("STRIKE TO PROTEST LAYOFF BILL IS
CANCELED IN SOUTH KOREA," 02/12/98) reported that an anonymous
spokesman at the Korean Confederation of Trade Unions said late
Thursday that the labor group has called off its nationwide
strike planned for Friday to protest a labor bill that would
facilitate layoffs. He said the decision was based on the fear
that poor domestic economic conditions would be further
aggravated by such protest.
Reuters ("SOUTH KOREAN PROSECUTORS VOW TOUGH ACTION IF WORKERS
STRIKE," Seoul, 02/11/98) reported that ROK Prosecutor-General's
Office warned in a statement on Thursday that they would take
strong measures if unions went ahead with their threatened
general strike on Friday. The statement said that the strike was
illegal because it was related to legislation currently being
considered by the National Assembly.
5. ROK Financial Crisis
The New York Times (Stephanie Strom, "KOREAN BANKS TO EXTEND
LOANS TO DOMESTIC BUSINESSES," Seoul, 02/12/98) reported that ROK
lending institutions agreed on Wednesday to extend by two months
nearly US$9 billion of loans to domestic businesses due in March.
Bankers said that the extension was made at the request of the
Finance Ministry. However, Richard Samuelson, head of research
at SBC Warburg Dillon Read, stated, "Unless the government gets a
firm grip and decides once and for all to choose the banking
system over the corporate sector by allowing corporations that
don't deserve to survive to fail, it's heading for a meltdown in
the financial system."
6. Nuclear Disarmament
The Washington Post (Mary McGrory, "Outlook," 02/08/98) reported
that at a National Press Club lunch last week, former US Senator
Alan Cranston read off a list of 117 people from 46 countries who
have signed a petition calling for the abolition of nuclear
weapons. At the lunch, retired General George Lee Butler, former
commander-in-chief of the US Strategic Command made a speech
challenging the wisdom of nuclear deterrence. [Ed. note: See the
NAPSNet Special Report for February 10.] During the question
period which followed his speech, Butler was asked whether he
felt guilty for not having spoken up earlier. He replied, "This
is not about guilt. It's about the future."
1. Inter-Korean Relations
Lim Dong-won, newly appointed senior presidential secretary for
national security and foreign affairs in the Kim Dae-jung
administration, on February 11 suggested that the two Koreas
exchange special envoys to verify their mutual intention and will
to improve relations. He said the new administration will
expedite inter-Korean investment and exchanges under two
principles: separation of politics from economic affairs and no
state intervention in private-sector economic affairs between the
two Koreas. (Korea Times, Oh Young-jin, "EXCHANGE OF S-N ENVOYS
SUGGESTED," 02/11/98)
2. ROK Defense Ministry
The ROK Ministry of National Defense (MOND) on February 11
expressed its confidence in winning a legal battle against United
Technologies Corp. The MOND aims to retrieve a portion of what
it claims the US-based defense contractor overcharged during the
sale of three UH-60 Black Hawk helicopters in 1990. Commenting
on a hearing held in Seoul on February 4-9 under the supervision
of the International Chamber of Commerce (ICC), a MOND official
said, "I think we have a strong case. We presented it very
effectively." (Korea Times, Oh Young-jin, "MINISTRY OF NATIONAL
DEFENSE SHOWS CONFIDENCE FOR CASE AGAINST SIKORSKY," 02/11/98)
3. ROK Defense Procurement
The ROK Defense Procurement Agency (DPA) has filed a libel
lawsuit against nine journalists for their reports of alleged
irregularities in the way the agency spent money on foreign
weapons components. The agency, a branch of the Ministry of
National Defense, filed the complaint February 9 against the
journalists at Munhwa Ilbo newspaper and Munhwa Broadcasting Co.
(MBC) and a military analyst. (Korea Herald, "DEFENSE
PROCUREMENT AGENCY FILES LAWSUIT AGAINST JOURNALISTS FOR LIBEL,"
02/12/98)
1. Green Korea Media Release on Light-Water Reactor Project
("GREEN KOREA UNITED SUGGESTS CHANGES TO DPRK NUCLEAR REACTOR
PROJECT TO GOVERNMENT TRANSITION COMMITTEE," 02/12/98)
Green Korea United has submitted a proposal to the Transition
Committee for incoming President Kim Dae Jung, suggesting far
reaching changes to the project to supply North Korea with a
nuclear power plant. To date the major parties - South Korea,
Japan and the US have failed to agree on who will pay for the
reactor, although the US continues to insists that South Korea
can pay.
The plan is supported by the research and opinions of a number of
prominent South Korean academics.
Dr Kim Sang Kyu of POSCO Research Institute maintains that "The
North Korean electricity supply problems are mostly related to
their serious grid loss. The rate of loss is between 30-50
percent, so we first need to minimize grid loss and improve the
efficiency of end users." Dr Kim also comments "The North Korean
housing pattern is decentralized and very different from that in
South Korea. We need to introduce small capacity and
decentralized energy supply systems"
Dr Kim Jong-Dal, Professor of Trade and Economics, Kyongbuk
University says "In this economic situation we need more
efficient and inexpensive power plants such as LNG cogeneration
for Combined Heat and Power (CHP). There is not sufficient
heating fuel in North Korea and CHP can help us overcome two
problems at the same time. Furthermore North Korea has a lot of
potential for the use of renewable energy, especially wind power,
so we should to provide these technologies to them. If we assume
that South Korea will adopt a binding commitment to reduce
greenhouse gases under the UNFCCC, we can also help the
development of renewable energy in the DPRK as a joint
implementation project."
The proposal from Green Korea outlines five reasons for changing
the project.
1. South Korea can not afford to pay for the reactor with the
current financial crisis. There is now a need to investigate
other, less expensive energy provision options for North Korea.
2. The argument that the reactor is being provided to curtail
possible DPRK nuclear weapons production is flawed. The PWR or
light water reactor scheduled to be built is also capable of
producing plutonium. Building a reactor of this type does not
entirely prevent the manufacture of plutonium or nuclear weapons,
we will still be unable to confirm that North Korea is unable to
make nuclear weapons.
3. In the current KEDO agreement there is no plan developed for
how waste will be processed and stored. Even more importantly
there is no information on who must pay for disposal of the waste
or how much safe disposal will cost.
4. KEPCO and the South Korean government like to promote the
reactor as a Korean made reactor, but this is not entirely true.
The main components (supplied by Combustion Engineering, the US
branch of ABB) are still imported from the US.
5. The North Korean energy distribution infrastructure is badly
in need of repair and improvement. Some experts estimate the
cost of rebuilding the North Korea grid to cope with the power
supplied from the nuclear reactor could add another US$1 billion
to the project cost. In addition, there are few large regional
centers, so North Korean energy demand is not centralized to the
same extent as South Korea and sending power from one location
will not be efficient or effective.
Green Korea United believes to solve these problems we need non-
nuclear power plants on a more localized scale and advances the
following suggestions for Government action.
1. Conduct further research on the North Koreans electricity
needs/demands and assist with repairs to the North Korean grid to
alleviate the losses of energy. This would cost significantly
less than constructing a new grid.
2. Provide several LNG cogeneration power plants as a more
economical alternative to nuclear power.
3. Bring forward plans to connect North and South Korean power
grids.
4. Cooperate and fund renewable energy development in North
Korea.
5. Move to persuade North Korea to demonstrate they have
completely renounced their nuclear weapon plans by accepting
alternatives to nuclear power generation.
Green Korea will send a letter together with a detailed proposal
to North Korean authorities next week.
For more information contact Mr SEOK Kwang Hoon, Energy Campaign,
Green Korea United ph: + 82 2 325 5525, fax: + 82 2 325 5677
email: environ@chollian.net
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