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Northeast Asia Peace and Security Network DAILY REPORT For Friday, April 24, 1998, from Berkeley, California, USA |
1. ROK-DPRK Economic Cooperation
The Associated Press ("S. KOREA TO PROVIDE IDLE PLANT FACILITIES TO NORTH," Seoul,
04/24/98) reported that ROK Unification Minister Kang In-duk said Friday that the government is willing
to provide the DPRK with some of its plant facilities standing idle because of the country's financial crisis.
He stated, "Because of the economic slowdown, we have facilities standing idle. We can donate or lease
some of those facilities to the North." Meanwhile, Hyundai Group said that its head, Chung Ju-yung, was
arranging a visit to the DPRK in the near future, to discuss plans to build a resort town on the DPRK's east
coast.
2. DPRK Food Aid
The Associated Press ("U.N. PLEADS FOR MORE N. KOREA FOOD," Rome, 04/24/98) reported that
Catherine Bertini, executive director of the World Food Program, said that donor nations have pledged
only one-third of the food aid that the DPRK needs to prevent a "humanitarian catastrophe." She stated,
"With food stocks virtually gone, people in North Korea can no longer rely on the government food
distribution system. They are looking to donors to help them survive until the next harvest in October."
She added, "If we fail, the country will face a true humanitarian catastrophe."
3. Opening of DPRK Airspace
Agence France-Presse ("NORTH KOREA OPENING ITS SKIES TO INTERNATIONAL FLIGHTS,"
Seoul, 04/23/98) reported that the DPRK's Central News Agency on Thursday quoted a Foreign Ministry
spokesman as saying that DPRK airspace has been opened to international air traffic. The spokesman
stated, "Regular international air services through the Korean territorial air have begun in the wake of the
test flight in early March." He added, "The flights through the Korean airspace make air services of many
countries more convenient and give them tangible economic benefits and we can make a great contribution
to the development of the aerial transport in the world. Now the world welcomes the start of international
air services through the Korean territorial air and an increasing number of countries hope for flights
through the airspace."
4. Asian Financial Crisis
The Los Angeles Times ("BANK WOES MAY PUT S. KOREA IN SECOND CRISIS, ANALYSTS
SAY," Seoul, 04/24/98) reported that analysts said that bad loans at ROK banks are mounting so quickly
that they may cause a second financial crisis. In a report issued Wednesday, the Korea Development
Institute said that about 3,300 companies have failed each month since the ROK turned to the International
Monetary Fund in December, meaning that the amount of bad banks' loans may more than quadruple to
US$72.8 billion by the end of this year. Desmond Supple, head of Asian currency research at Barclays
Capital Ltd, stated, "The cost of bailing out Korea could exceed 40 percent of [gross domestic product].
The country will lose foreign currency reserves, and the government deficit will explode."
The Los Angeles Times (Sonni Efron, "REPORT PAINTS DARK PICTURE OF JAPAN'S ECONOMIC
FUTURE," Tokyo, 04/24/98) reported that a report by David Asher, an Oxford University Japan scholar,
and Andrew Smithers, chairman of Smithers and Co., an economic consultant in London, argued that
unless Japan takes quick and drastic action, it is headed for a long period of deflation and decline. The
report stated, "We conclude that the long-term prospects for growth are poor. A large portion of Japan's
considerable wealth and economic potential stands to be frittered away by misguided economic policies in
the coming decades, just as in the 1990s." Asher and Smithers calculated that Japan's true public-sector
debt in 1997 probably exceeded 150 percent of gross domestic product, and that corporate debts are about
triple US levels. They also said that the pension system is grossly underfunded and an aging population
means the worst is yet to come. However, Richard Koo, a senior economist at Nomura Research Institute,
argued, "I am optimistic about Japan for the first time in 10 years because I think the Japanese government
has finally woken up and they are doing the right things."
5. Clinton's Trip to PRC
The Associated Press (Barry Schweid, "CLINTON PLANS GRAND TOUR OF CHINA," Washington,
04/24/98) reported that US and PRC officials are planning a grand tour of the PRC for US President Bill
Clinton when he visits there in June. An unnamed senior Clinton administration official said that the
President sees building a US relationship with the PRC as the best US chance to affect the PRC's behavior
in the next century. The official stated, "He sees China's future as unknown. Whether it will be a force for
good or ill 10 years from now isn't clear. Whether it is a good neighbor in the region, who knows?"
Meanwhile, Clinton administration officials said that they were hopeful that US Secretary of State
Madeleine Albright could make enough progress on missile technology proliferation issues during her visit
to the PRC next week to induce the PRC to agree at the June summit to adhere to the Missile Technology
Control Regime, if not actually join it.
1. ROK POWs in DPRK
Yang Soon-yong, aged seventy-two, who was captured by the DPRK during the Korean War and escaped
to the ROK in December last year, held a news conference Friday in which he stated that between fifty and
sixty ROK POWs are being held in the DPRK. Among them, Yang named seven people with whom he
had had contact: Kim Soo-dong, Yong Hwan-ki, Lee Cha-shik, Lee Young-chan, Yang Jae-ku, Kang
Seok-yong, and Lim Chom-yong. Yang said that POWs were released from prison camps in 1956, most
being sent to work in coal mines, while a few went to collective farms. At one time in Aoji coal mine,
there were six hundred POWs. He reported that, in July 1953, he saw three US nationals. When the
International Red Cross monitoring team visited Hambuk province last September, homeless people were
gathered up and some residents were relocated. The ROK government estimates that 19,000 soldiers were
reported as missing in action during the Korean War and believes that tens of them maybe still alive.
(Chosun Ilbo, "FORMER PRISONER CLAIMS 50-60 POWS IN NK," 04/25/98)
2. ROK-DPRK Cultural Exchange
Park Bo-hee, chairman of the Korea Cultural Foundation (KCF), said Friday that the "Little Angels"
performance group will visit Pyongyang from May 2 to 12, the first time a private ROK group will
perform in the DPRK. The "Little Angels" is composed of thirty-eight performers with a support team of
thirty. They will perform on May 4 and 5 at Bonghwa Art Theater in Pyongyang and on May 7 at
Mangyongdae Students' Palace. A spokesman for the KCF said that the cultural exchange program was
agreed on when its leader, the reverend Moon Sun-myong, visited the DPRK in December 1991. The final
agreement was made on April 12 this year. Park commented that only two reporters, both from the
"Saegye Ilbo" have been given permission to travel with the group. (Chosun Ilbo, "LITTLE ANGELS TO
PERFORM IN PYONGYANG," 04/25/98)
3. ROK-DPRK Relations
ROK Unification Minister Kang In-dok said Thursday it will take some time to renew dialogue between
the governments of the DPRK and the ROK, and that he will not rush to do so. In a breakfast meeting with
the foreign press, he said that government-level assistance and cooperation requires a national consensus,
and that the government will continue to insist on reciprocal actions. He added that for increased
assistance, the DPRK must provide sufficient information and materials that the people can accept,
including pictures proving that aid supplied by private organizations in the ROK are being delivered where
it is supposed to be. (Chosun Ilbo, "GOVERNMENT IN NO HURRY FOR NORTH DIALOGUE,"
04/24/98)
A group of senior ROK and US experts on the DPRK are expected to advise their respective governments
to introduce a "more flexible" approach towards rapprochement between the US and the DPRK, former
ROK foreign minister Han Sung-joo said Thursday. "In principle, we view that the improvement of U.S.-
North Korea relations should be made in parallel with that between South and North Korea. However, that
doesn't mean that the progress should be made simultaneously," Han said. Therefore, the so-called "Korea
Report," to be issued in mid-May prior to President Kim Dae-jung's visit to the US set for early June,
would contain recommendations which are more flexible on the improvement of US-DPRK relations and
the lifting of US trade sanctions against the DPRK, he said. (Korea Times, "KOREA, US EXPERTS TO
CALL FOR FLEXIBLE APPROACH IN US-NK TIES," 04/24/98)
4. ROK-DPRK Economic Cooperation
The ROK will lift the ceiling of ROK firms' investment in the DPRK and give the go-ahead to the transfer
of "idle industrial facilities," ROK Unification Minister Kang In-duk said yesterday. The minister said that
the government would also allow ROK companies to export fertilizer to the DPRK, although the talks on
government-level fertilizer aid in Beijing broke up. Kang also reiterated that the government will permit
ROK business leaders, including tycoons of large conglomerates, to visit the DPRK to explore the
opportunity of launching joint ventures. (Korea Times, "IDLE INDUSTRIAL FACILITIES TO BE
TRANSFERRED TO NK," 04/24/98)
1. Japanese Security Assessment
The Nikkei Shimbun ("JAPANESE DIPLOMATIC BLUEBOOK EMPHASIZES PROMOTION OF
JAPAN-US-PRC DIALOGUE," 04/28/98) reported that the cabinet ministerial meeting on April 24
approved Japanese Foreign Minister Keizo Obuchi's report on this year's Diplomatic Bluebook. The
bluebook, subtitled "Japan's Diplomacy Toward the 21 Century: New Developments and Agenda in the
International Community," states that stable relations among Japan, the US, the PRC, and Russia are the
basis for stability and prosperity in the whole Asia-Pacific region, emphasizing the need for cooperation to
prevent the Asian financial and economic crisis from spreading. The bluebook also analyzes the current
international affairs from three aspects, including deepened bilateral relations, facilitation of Japan's
contribution to cooperation in the Asia-Pacific region, and Japan's participation in global frameworks to
deal with common agendas in the international community.
2. Japanese-Russian Relations
The Yomiuri Shimbun ("PRIME MINISTER EMPHASIZES RESULTS OF JAPANESE-RUSSIAN
SUMMIT MEETING," 04/24/98) reported that Japanese Prime Minister Ryutaro Hashimoto emphasized
on April 23 during his meeting with opposition party leaders that the Japanese-Russian summit meeting
was so fruitful that it contributed to the development of Japanese-Russian relations, including the so-called
Hashimoto-Yeltsin Plan for economic cooperation. With regard to his proposal of delimitation of the
territorial islands, he only said, "I don't want to talk about the content of the proposal. But I want to do
many other things while working on a peace treaty at the same time." During Hashimoto's meeting with
Social Democratic Party leader Takako Doi, he said, "I will pay special attention to President Yeltsin's
speech slated for mid-May, indicating his interest in where Yeltsin will locate Japanese-Russian relations in
Russia's diplomacy."
3. Japanese-ROK Relations
The Sankei Shimbun ("JAPAN AND ROK AGREED TO EXCHANGE INFORMATION ON DPRK,"
Seoul, 04/23/98) reported that Japan and the ROK agreed to hold a periodical meeting for information
exchange to deal with the DPRK situation. The first meeting will be held in Seoul next month and the
second meeting will be held in Tokyo in November, with each including participants from both countries'
foreign ministry, intelligence agency, police, and defense agency. The proposal of the Japan-ROK
exchange of information on the DPRK was first revealed by Japanese Foreign Ministry international
information agency official Eiji Yamamoto during his visit to the ROK last week. The proposal came out
of Japan's concern for the increasingly uncertain situation in the DPRK, indicated by the serious food
shortage and the alleged purge of a DPRK high-ranking official. According to the report, the ROK gave
credit to Japan's capacity for information gathering and analysis, and Kang In-dok, ROK Unification Board
head and expert on the DPRK, strongly agreed to the proposal. Both sides will discuss membership more
in detail. The report suggested President Kim Dae-jung's policy to improve Japan-ROK relations as a
driving force behind not only this meeting but also other official Japan-ROK talks to come.
4. Japanese-PRC Relations
The Yomiuri Shimbun ("MEETING BETWEEN PRC VICE MINISTER AND LDP SECRETARY
GENERAL," 04/23/98) reported that Japanese ruling Liberal Democratic Party Secretary General Koichi
Kato met with PRC Vice Premier Hu Jin-tao, now visiting Japan, on April 22. Kato stated, "Japan and the
PRC should take responsibility for the whole Asian economy," while Hu said in response, "We want to
further cooperate for the Asian economy," indicating that both countries are ready to cooperate in
responding to the Asian economic crisis. Hu also said to Kato and other political party leaders, "Japan's
economic crisis has a serious impact on other Asian and world economies. I will keep a close eye on how
Japan will balance its economic development and reform."
5. Japanese Defense Policy
The Yomiuri Shimbun ("HOME AFFAIRS MINISTER SAYS LOCAL GOVERNMENTS' DEFENSE
COOPERATION IS NOT COMPULSORY," 04/22/98) reported that Japanese Home Affairs Minister
Mitsuhiro Uesugi, following the cabinet meeting on April 21, discussed local governments' role in Japan-
US Defense Cooperation. He stated, "We will just request for cooperation, we will not force them to
cooperate. They can refuse our request if they have the right reason." He added, "However, situations
should be dealt with by the nation as a whole. This means that local governments have a general obligation
to cooperate as much as possible."
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