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Northeast Asia Peace and Security Network DAILY REPORT For Monday, August 31, 1998, from Berkeley, California, USA |
1. DPRK Missile Test
The Washington Post (Sandra Sugawara, "N. KOREA FIRES BALLISTIC MISSILE
TOWARD JAPAN," 08/31/98, Tokyo, A17), Reuters (Teruaki Ueno, "N. KOREA
LAUNCHES MISSILE OVER JAPAN," Tokyo, 08/31/98) and the Associated Press
(Todd Zaun, "REPORT: N. KOREA MISSILE HITS SEA," Tokyo, 08/31/98)
reported that the Japanese Defense Agency said that the DPRK on Monday
test-fired a ballistic missile over Japanese territory. A Japanese
Foreign Ministry official stated, "The Foreign Ministry had firm
information that a test would be conducted, and the ministry had asked
North Korea not to conduct a test on several occasions." Prime Minister
Keizo Obuchi warned that the government was considering unspecified steps
in response to the launching. The Japanese government said that the
second stage of the two-stage rocket appeared to have landed in the
Pacific Ocean, traveling more than 1,300 km (780 miles). Japanese Vice
Foreign Minister Shunji Yanai said there was "no evidence" to suggest the
launch was anything but a test. Defense Vice Director General Toru
Kawajiri stated, "We do not know the intention or purpose of the firing."
He said that the agency would send a fleet of ships and aircraft to the
site where the missile landed. Defense analyst Kensuke Ebata stated, "If
the report is true, North Korea is developing ballistic missiles that
will threaten all of Japan. With a missile of 1,300 km range, North
Korea could even hit U.S. military bases in Okinawa." Noriyuki Suzuki,
chief analyst at the Radiopress news agency, stated, "North Korea is
trying to secure major concessions from the United States by
demonstrating the threat of North Korean missiles. This is one of the
diplomatic cards North Korea has played." He added, "North Korea is also
trying to raise morale and the mood among its people ahead of the
elevation of Kim to president." Hideshi Takesada, professor at the
National Institute for Defense Studies, said that the missile test "has
political and diplomatic implications. With little progress in relations
between North Korea and the United States, what North Korea wants is an
easing of the sanctions." He added, "The launch has a lot of merit for
North Korea in terms of boosting confidence in its missiles in
international weapons markets and selling them for foreign exchange."
ROK Defense Ministry officials said the missile was a Taepodong 1, a
newer version of the medium-range Rodong 1, which was tested in 1993.
Reuters (Philippa Fletcher, "RUSSIA ISSUES VARYING ACCOUNTS ON N.KOREAN
MISSILE," Moscow, 08/31/98) reported that Russia confirmed that the DPRK
launched a ballistic missile on Monday, but accounts varied as to whether
or not it had fallen in Russian territorial waters. Alexander Kosolapov,
a spokesman for Russia's Pacific Fleet, stated, "According to our
information, after its launch, the missile landed not in Russian
territorial waters but in neutral waters." He refused to give the
coordinates for the landing, though, saying that to do so would reveal
the technical capabilities of the fleet's tracking systems. He said the
missile fell into the Sea of Japan, adding that Russia had not sent
warships to the area since it presented no threat. Officials from the
Strategic Rocket Forces said they had not detected the missile because it
had veered off its original course. However, news agencies quoted
military officials as saying that Russia had spotted the missile and sent
warships to investigate. Interfax news agency quoted the head of the
rocket forces, Vladimir Yakovlev, as saying that Russia had been warned
about the launch in advance under an agreement with the DPRK. However,
the Tass news agency quoted another rocket forces official as saying that
Russia had not been warned in advance. The official stated,
"Consequently Russian warning systems were not given the task of
monitoring the North Korean sector. The missile launch was spotted by
other detection systems." Russian Foreign Ministry spokesman Vladimir
Rakhmanin said that Russia had no early warning agreement with the DPRK.
Interfax quoted an unnamed senior naval official as saying that two US
Orion spy planes and a reconnaissance ship from the Pacific Fleet had
followed the missile launch. The Japanese Defense Agency said that the
DPRK missile landed in the sea between Vladivostok and northern Japan at
a latitude of 40 degrees north and 134 degrees east longitude. A
Japanese government official said the missile apparently landed in
Russian territorial waters and that Japan would not send ships or planes
to the area.
Reuters ("PENTAGON CONFIRMS NORTH KOREA LAUNCHED MISSILE," Washington,
08/31/98) reported that US Defense Department spokesman Jim Kout
confirmed Monday that the DPRK had launched a missile into the Sea of
Japan. Kout stated, "The Department of Defense views this as a serious
development and is evaluating the situation and may have further comment
later."
Reuters ("ALBRIGHT CONCERNED AT NORTH KOREAN MISSILE TEST," Sarajevo,
08/31/98) reported that US Secretary of State Madeleine Albright
expressed concern on Monday about the DPRK missile test. She stated, "We
are concerned about it, as are the Japanese and the Russians, and this is
something that we will be raising with the North Koreans in the talks
that are currently going on."
2. Funding for Light-Water Reactors
The Associated Press ("JAPAN REFUSES TO ENDORSE COMMITMENT TO N.KOREA
REACTOR PROJ," Seoul, 08/31/98) reported that ROK officials said that
Japan on Monday refused to endorse its financial commitment to the
building of two light-water reactors in the DPRK in protest over the
DPRK's missile test. The US, Japan, the ROK, and the European Union had
been scheduled to adopt a resolution Monday on funding of the project,
but Japan retracted its endorsement of the resolution at the last moment.
The Korean Peninsula Energy Development Organization (KEDO) retracted its
earlier news release on the adoption of the resolution. ROK officials
representing KEDO said in a separate news release, "There will be a
formal announcement of the resolution when a new date of its adoption is
set." ROK officials said privately that they did not believe that Japan
would withdraw from the funding of the reactor project itself. The
resolution would have been the first official document detailing how to
finance the reactor project. According to a full text of the resolution
released earlier, the ROK was to assume US$3.22 billion, or 70 percent of
the cost, the European Union US$80 million, and Japan US$1 billion. The
US was to organize financing of the US$300 million difference between the
budget and the total amount committed by the member countries.
3. US-DPRK Talks
The Associated Press ("NKOREA MAY OK NUCLEAR INSPECTION," Seoul,
08/30/98) reported that the ROK's Yonhap news agency quoted an
unidentified source in Washington as saying that the DPRK told the US at
recent high-level talks that it is willing to allow an outside inspection
of its underground construction project. Yonhap quoted the source as
saying, "North Korea has denied that the underground facility being built
is nuclear-related and expressed willingness to allow an outside
inspection." The report said that US ambassador-at-large Charles Kartman
and DPRK Vice Foreign Minister Kim Gye-gwan discussed nuclear weapons,
the DPRK's arms sales, and other issues during the talks. The DPRK also
reportedly told US officials it would return to the four-way Korean peace
talks if the US eases or lifts its economic embargo. The report also
said that the US may offer additional food to the DPRK.
4. Release of US Citizen from DPRK
US State Department Deputy Spokesman James Foley ("STATE DEPARTMENT NOON
BRIEFING, AUGUST 28, 1998," Washington, USIA Transcript, 08/31/98) said
that US citizen Reverend Kwang Duk Lee was released Friday from the DPRK.
Foley stated, "Our embassy in Beijing worked closely with the Embassy of
Sweden in Pyongyang, which is the US protecting power in North Korea, to
monitor Reverend Lee's welfare and make clear to the DPRK that the
American should be released."
The Associated Press (Michelle Dearmond, "KOREAN-AMERICAN PASTOR TO COME
HOME," Los Angeles, 08/31/98) reported that Jenny Lee Yamada, the
daughter of Reverend Kwang Duk Lee, said that her father was scheduled to
arrive in Los Angeles on Monday. Yamada stated, "The North Koreans
really emphasized they took good care of him. They said they fed him
three first-class meals a day, made sure he was seen by doctors and made
sure he got regular exercise." She said that the DPRK demanded
US$122,000 for Lee's release, but agreed to release him after collecting
money from the family to cover expenses the government incurred while
holding him. The family declined to disclose the amount of the payment.
5. Russian Financial Crisis
Dow Jones Newswires ("CLINTON: U.S. NEEDS RUSSIA'S COOPERATION ON NUCLEAR
ISSUE," Washington, 08/31/98) reported that US President Bill Clinton on
Monday said that helping Russia make it through its financial crisis is
necessary for US nonproliferation goals. Clinton stated, "We don't want
terrorists to get a hold of weapons of mass destruction. A weakened
Russia, a weakened Russian economy would put enormous pressure on people
who have those technologies and understandings to sell them. We don't
want that to happen."
1. US-DPRK Talks
According to ROK diplomatic sources, the DPRK expressed to the US its
willingness to allow an investigation of its underground facilities near
Yongbyon during a meeting last week between high-ranking officials of the
two countries. The sources also said that the DPRK is likely to return
to the four-party peace talks between the ROK, the DPRK, the US, and the
PRC and resume consultation on missile issues with the US. The four-
party talks were suspended in March when the DPRK delegates walked out.
In return for its cooperation, the DPRK is known to have asked the US to
lift its freeze on DPRK assets in the US worth US$15.45 million, to phase
out sanctions on the DPRK, and to resume supply of 500,000 tons of heavy
oil as early as possible. (Chosun Ilbo, "NK OKS INVESTIGATION INTO
YOUNGBYON FACILITIES," 08/31/98)
2. ROK Aid to DPRK
The ROK government has given the go-ahead to Chung Ju-yung, honorary
chairman of the Hyundai Group, to donate corn to the DPRK, the ROK
Unification Ministry announced Saturday. Chung proposed a donation of
50,000 tons of corn to the DPRK. The first shipment of 10,000 tons was
delivered in May but the remainder, originally scheduled to be shipped in
July, was put on hold due to the submarine infiltration incident. The
government approval will allow the resumption of aid to the DPRK after it
froze all kinds of food aid in the wake of the submarine incident.
Hyundai plans to send the first shipment of 5,000 tons of the remaining
corn within the next month. An ROK ministry official said that Hyundai
has not yet asked for permission to resume the donation of 501 head of
cattle to the DPRK. (Chosun Ilbo, "HYUNDAI'S CORN DONATION TO NORTH
APPROVED," 08/31/98)
1. DPRK Trade
A source at the Stanton Group said that there was "very little truth" to
a story by Dow Jones Newswires on August 21 that quoted sources at the
ROK's Korea Trade-Investment Promotion Agency (KOTRA) as saying that the
US-based Stanton Group plans to invest an additional US$1 billion into
the oil-refinery business in the DPRK. [See DPRK Trade in the US
Section of the August 21 Daily Report.] The source said that, while
Stanton has for several years pursued certain business opportunities in
the DPRK under a US Treasury license, there is no basis now for reports
of a pending huge investment. He stated, "For the record, we have not
signed any agreement with KOTRA, nor (as Reuters subsequently reported)
have we ever claimed to have a business relationship with KEDO."
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