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Northeast Asia Peace and Security Network DAILY REPORT For Wednesday, September 23, 1998, from Berkeley, California, USA |
1. ROK "North Wind" Scandal
The Associated Press ("SKOREAN CONVICTED IN SMEAR CAMPAIGN," Seoul,
09/23/98) reported that Kwon Young-hae, former head of the ROK Agency for
National Security Planning, was sentenced to five years in prison
Wednesday for plotting to depict President Kim Dae-jung as a communist
during last year's election campaign. Kwon admitted in court that he
paid a Korean-American businessman to hold news conferences in Beijing,
Tokyo, and Seoul just before the December 18 presidential election,
alleging that Kim's campaign was funded by the DPRK. A three-judge court
also handed down prison terms of up to two years to six former
intelligence agents, all but one of whom had his sentence suspended, for
participating in the scheme. Sohn Choong-moo, a publisher, was sentenced
to two years in prison for spreading unfounded, hostile rumors about Kim
through his magazine. He was found to have received bribes from Kwon.
In a separate trial earlier, four people, including the Korean-American
businessman, Yoon Hong-joon, were convicted of similar charges and
sentenced to up to two years in prison.
2. ROK Anti-Corruption Campaign
The Associated Press ("10,000 S.KOREA OFFICIALS PUNISHED," Seoul,
09/23/98) reported that the ROK government announced Wednesday that it
had fired or reprimanded more than 10,000 public servants, including two
assistant Cabinet ministers, in an anti-corruption campaign. About 500
officials were fired for taking bribes. The remainder were given pay
cuts and subjected to other disciplinary actions.
3. ROK Economic Crisis
Dow Jones Newswires (Shin Jung-won, "S. KOREA SHOULD ADOPT BETTER SOCIAL
SAFETY NET - US OFFICIAL," Seoul, 09/23/98) reported that Alan P. Larson,
visiting US assistant secretary of state for economic and business
affairs, said Wednesday that the ROK should adopt a stronger social
safety net program in order to successfully carry out its economic
restructuring. Larson stated, "We do think that a social safety net is
crucial to successfully carry out the country's ongoing reform. The
South Korean government should increase spending in social safety net and
infrastructure in order to ease the pain of the unemployed and support
domestic consumption which have been depressed." Larson also said that
the ROK is unlikely to be hit by another financial crisis because of
improvement in its building up foreign reserves and greater stability in
the ROK currency versus the US dollar.
4. US-Japanese Missile Defense Cooperation
US Defense Department Spokesman Kenneth Bacon ("PENTAGON SPOKESMAN'S
REGULAR BRIEFING, SEPT. 22," USIA Transcript, 09/23/98) said that US
Secretary of Defense William Cohen and Japanese Defense Minister on
Tuesday Fukushiro Nukaga discussed ways that the US and Japan can move
toward cooperation in theater missile defense. Bacon added that the
attempted satellite launch aboard a DPRK Taepodong missile "clearly
creates a more urgent need to move forward with theater missile defense
capabilities in that area."
5. PRC-Taiwan Talks
The Associated Press (Renee Schoof, "TAIWAN, CHINA EDGE CLOSER,"
09/23/98) and Reuters ("CHINA, TAIWAN NEGOTIATORS START TALKS IN
BEIJING," Beijing, 09/22/98) reported that Zhang Jincheng, secretary
general of the PRC's Association for Relations Across the Taiwan Straits
(ARATS), and Shi Hwei-yow, vice chairman of Taiwan's semi-official
Straits Exchange Foundation (SEF), met in Beijing on Wednesday to prepare
for talks between SEF chairman Koo Chen-fu and ARATS head Wang Daohan,
scheduled for October 14-19. Shi and Zhang decided that Koo and Wang
would not be holding formal negotiations, but just "exchanging opinions."
Wang and Koo will meet at least four times in Shanghai during the visit,
Shi said. While in Beijing, Koo will meet Vice Premier Qian Qichen and
may visit Beijing University and the Forbidden City. Shi stated, "What's
important is that Koo and Wang have several opportunities to meet and
exchange opinions. That is satisfactory."
6. US-Indian Talks
The Associated Press ("U.S. OFFICIALS SAY CLINTON VISIT TO INDIA
UNLIKELY," Washington, 09/23/98) reported that US Deputy Secretary of
State Strobe Talbott met Tuesday with Indian defense and foreign policy
adviser Jaswant Singh for another in a series of discussions on nuclear
issues. The US State Department had no comment on the meeting.
Meanwhile, US officials said that a planned visit by President Bill
Clinton to South Asia in November is unlikely given the lack of progress
on Indian and Pakistani nuclear issues.
7. Indian-Pakistani Talks
The Associated Press (Anwar Faruqi, "PAKISTAN, INDIA LEADERS IN MEETING,"
New York, 09/23/98) reported that Indian Prime Minister Atal Bihari
Vajpayee and Pakistani Prime Minister Nawaz Sharif met Wednesday for the
second time since both countries carried out nuclear tests last May.
Vajpayee indicated that the dispute over Kashmir would be the main topic
of discussion, adding that both sides should stop cross-border firing
attacks.
1. Korean-Japanese Talks
JoongAng Ilbo ("NORTH KOREA DENOUNCED KOREAN-JAPANESE TALKS," Seoul,
09/22/98) reported that the DPRK denounced the recent talks between
Obuchi Keizo, the Japanese Prime Minister, and Park Tae-jun, the chairman
of the United Liberal Democrats (ULD) of the ROK's ruling coalition. The
talks were held to discuss countermeasures toward the DPRK's recent
satellite launching. The DPRK's state-run Korean Central Broadcasting
Agency reported on September 22, "A South Korean politician conspired
together with Japanese reactionary elements against our republic. This
is another intolerable provocation against us." It repeatedly
emphasized, "What we launched is not a ballistic missile but a satellite.
The 'puppet regimes' in the South and in Japan insisted that although it
is a satellite, it can threaten their security." The broadcasting added,
"We will continuously make our republic unified in spite of the reaction
and will sweep away all obstacles in our way."
2. DPRK Execution
JoongAng Ilbo ("GOVERNMENT PRUDENT ON NK EXECUTION," Seoul, 09/23/98)
reported that the ROK government has not made any official reaction to
the execution of a high-ranking DPRK official. According to Japan's
Kyodo News Agency, Kim Jong-u, a senior DPRK economic official, was
recently put to death for illegally accumulating wealth. Kim, known as a
reformist technocrat who advocated a more open door economic policy, was
shot last December for collecting personal money while inducing external
investment. He was also head of the external economic cooperation
promotion committee. He was rumored to have fallen from power when the
DPRK started a corruption investigation into the Workers' Party. It is
believed that his house was searched and DPRK authorities found more than
US$300,000 in cash bribes from foreign companies. The ROK Ministry of
Unification said on September 23, "We are not sure how it will effect
North Korean economic policy or if it signals a change. We should be
very cautious."
3. ROK President's Sunshine Policy
Yonhap News Agency ("NO SUNSET FOR THE SUNSHINE POLICY," Seoul, 09/23/98)
reported that ROK President Kim Dae-jung repeated that he will continue
his "sunshine policy" toward the DPRK. He reiterated that the ROK's
policy is based on the principles of non-aggression, bringing about
unification without absorbing the DPRK, and the separation of politics
and economy.
1. Funding of RF Armed Forces
Sovetskaya Rossia ("COMMANDER-IN-CHIEF OF PAUPER ARMY," Moscow, 2,
09/22/98) published an article by Aleksandr Korzhakov, member of the RF
State Duma Committee on Defense and former Chief of RF Presidential
Security Service, on the miserable state of RF Armed Forces. Quoting
from an official paper on financing of RF Defense Ministry as of
September 14, Mr. Korzhakov said that of 80.4 billion rubles earmarked by
the RF budget to the Armed Forces, only 24.8 were actually allocated. As
for the third quarter of 1998, only 16.8 percent of the earmarked funds
have been allocated in reality. "Should one be surprised now by the
facts of servicemen committing suicides and their families blocking
airstrips at airdromes? Or the extraordinary act by Major Igor Belyaev"
who after having been denied his salary for several months brought his T-
80PV tank to the central square of Novosmolino City in July of this year?
His colleagues supported him and the salaries were paid them at last.
"Should the servicemen 'smite out' their wages by using tanks, planes,
missiles, weaponry of all kinds?" As for the much talked-about reform of
RF Armed Forces, only 2.05 billion rubles have so far been allocated this
year for that purpose out of 4 billion promised by RF President Boris
Yeltsin. In addition to military wage delay arrears amounting to over 16
billion rubles, this year only 48.8 percent of funds earmarked for fuel
and lubricants have been actually allocated, 10.4 percent for weapon and
equipment repairs, 17.5 percent for communication channels renting, 10.2
percent for medical services, 8.4 percent for research and development,
and 18.3 percent for capital construction. The RF administration is
wrong in believing that the military will not act on such "trifles," Mr.
Korzhakov stressed, because in fact "a hungry soldier is an angry
soldier." In his opinion, the military would just be glad to hear the
following message: "Due to an irreversible inability to carry out my
duties, I revoke my authority as the Supreme Commander-in-Chief. Boris
Yeltsin."
Nezavisimaya gazeta's Vadim Solovyov ("RF DEFENSE MINISTRY PROMOTES
COMMERCE," Moscow, 2, 09/23/98) reported that RF Defense Minister Igor
Sergeyev this Monday suggested to the RF Government a number of measures
"to let the Armed Forces earn money.... We just need a right granted to
us to do it according to the experience of the Chinese Armed Forces at
the time of hardships. A package of such documents has already been
submitted to First Vice Premier Yuriy Maslyukov and hopefully he will
support it." Preliminary estimates show that the People's Liberation
Army (PLA) of the PRC owns over 15,000 commercial facilities, including
1,500 hotels. Army-run pharmaceutics plans produce one tenth of all
drugs in the PRC. Four of the top ten clothing-making companies also
belong to the PLA. Some estimate that military business accounts for 3
percent of the PRC's US$1 trillion GNP. Below this waterline there are
some other activities, with the PRC military allegedly being the largest
producer of pirated software and compact discs. At a party conference in
June this year, PRC Chairman Jiang Zemin announced that the Chinese
Communist Party Central Committee resolved to put an end to the Army-run
businesses. Some doubt if that is possible. In Moscow, it seems either
they hope to keep the military commercialization process under some
legitimate control, or possibly the Armed Forces are in such a plight
that putting a blind eye on their economic criminalization is the only
chance left to keep them afloat at all.
2. RF Cabinet Reshuffle
Nezavisimoye voyennoye obozreniye's Vadim Solovyov and Aleksandr
Shaburkin ("A NEW CABINET, THE OLD POWER MINISTERS," Moscow, 1, 09/18-
24/98, #35, 109) predicted that the newly-appointed RF Premier Yevgeniy
Primakov would hardly reshuffle the existing "force ministers," that is
those of defense, security, and intelligence. The first two are
relatively new and have not yet "irritated the top officials" with
request for additional funds, while the last one is Yevgeniy Primakov's
own "creature." Therefore, one should not expect radical changes in
those bodies. Yet Anatoliy Kokoshin, RF Security Council Chairman, a
leading ideologue of military reform who allegedly lobbied in favor of
Moscow Mayor Yuriy Luzhkov being appointed as a new RF Premier, was
recently dismissed from his position. He was replaced by General Nikolai
Bordyuzha, former Federal Border Guard System (FBGS) Director; a career
military man with no political background and allegedly no political
ambitions. FBGS Academy Director General Konstantin Totskiy filled the
vacant FBGS Director position. All in all, Nezavisimoye voyennoye
obozreniye's authors concluded that ideas about the possibility of
civilian control over the RF "power ministries" remained illusions
3. PRC Political Reforms
Nezavisimaya gazeta's Pavel Spiriv ("JIANG ZEMIN PREPARES REFORMS,"
Beijing, 6, 09/22/98) reported on a tacit political campaign allegedly
permitted by PRC Chairman Jiang Zemin himself in order to chart a path
for future development of the PRC. For example, a non-formal "Union for
Development of China" operating under the auspices of the Chinese
Corporation of Cultural Exchanges, which in its turn allegedly operates
under the auspices of PRC State Security Ministry, held a session last
week in Beijing and stated the inevitability of "important political
reforms." PRC leaders have already planned to reduce the number of
central administration officials by 4 million by the year 2000. The East
Asian financial crisis, and especially the fate of Indonesia, further
activated the search for new political models. For instance, Deputy
Director of the PRC Academy of Social Sciences Bai Gan was recently asked
by the Chinese Communist Party Central Committee officials to carry out a
comparative analysis of various presidential systems in foreign
countries. Even more importantly, there are rumors that some senior
political scholars are discuss the idea of introducing a US-like two-
party system in the PRC, although both those parties are to be actually
Communist.
4. RF-Japan Relations
Izvestia's Vasiliy Golovnin ("'FRIEND RYU' HAS COME TO MOSCOW TO REMIND
ABOUT THE SOUTHERN KURILS," Moscow, 3, 09/17/98) reported that Ryutaro
Hashimoto, former Premier of Japan and presently chief foreign policy
advisor of the Japanese Government, arrived at Moscow on September 16 to
meet with RF President Boris Yeltsin. "Friend Ryu," as Boris Yeltsin
calls him, is expected to try to find out whether the RF, with all its
present-day crises, remembers its promise to strive for settlement of
territorial disputes and conclusion of a bilateral peace treaty by 2000.
The political and economic turmoil in the RF caused grave concerns among
Japanese politicians who believe that Boris Yeltsin alone can push those
plans through despite the RF State Duma's resistance. The RF State Duma
victory over the RF President, manifested by its rejection of Viktor
Chernomyrdin and appointment of Yevgeniy Primakov as RF Premier,
increased those concerns considerably. Besides, "the Japanese are
frustrated by the disappearances in the present-day reshuffle of
practically all senior officials who dealt with their country," namely
RF-Japan intergovernmental commission co-chairman Boris Nemtsov and
Presidential Spokesman Sergey Yastrzhemskiy, who were allegedly the main
persons who persuaded RF President to undertake the above-mentioned
commitments. Generally speaking, Ryutaro Hashimoto is expected to bring
more clarity to whether Japan should continue its dealings with the RF or
wait for better times.
Segodnya's Aleksandr Chudodeyev ("AN EX TESTS THE PRESIDENT," Moscow, 3,
09/18/98) commented on Japanese ex-Premier Ryutaro Hashimoto's visit to
Moscow. According to him, Mr. Hashimoto's goal is to press for
recognition by the RF of Japanese sovereignty over the Southern Kurils
with a postponement of the actual handover till a later time. In
exchange, Japan will sign a peace treaty with the RF before 2000 and step
up bilateral economic interaction. The RF would prefer those events to
take place in another sequence. RF President Boris Yeltsin, talking with
his "friend Ryu," again spoke about economics and omitted the territorial
issue. Obviously, the "long-standing Russo-Japanese dispute over the
Southern Kurils will hardly be resolved in this century," Segodnya's
author concluded.
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