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Northeast Asia Peace and Security Network DAILY REPORT For Monday, November 2, 1998, from Berkeley, California, USA |
1. DPRK Underground Construction
Reuters (Charles Aldinger, "PYONGYANG MUST ALLOW SITE TO BE INSPECTED -
COHEN," Honolulu, 10/31/98) reported that US Defense Secretary William
Cohen said Friday that the DPRK must let its alleged underground nuclear
site be inspected to reduce tension on the Korean peninsula. Cohen said
that a recent agreement by the DPRK to hold discussions on the issue with
a senior US delegation was not enough. He stated, "It is going to be
incumbent on the North Koreans to be open, to allow inspections for the
suspected site that might possibly -- I say, possibly -- constitute a
breach of the Agreed Framework." He argued, "We have to assure members
of Congress that the agreement is being adhered to." He added that the
Clinton administration was in preliminary talks with former US Defense
Secretary William Perry to act as a go-between with the DPRK. He stated,
"Dr. Perry has not made any commitment. There has been some discussion
as to whether he could possibly serve in some capacity on behalf of the
President, but there has been no commitment made on his part. I think it
is just in the exploratory stage at this point."
2. Hyundai Founder's Trip to DPRK
The Associated Press ("NORTH KOREAN LEADER IN GOOD HEALTH," Seoul,
11/02/98) reported that Hyundai founder Chung Ju-yung said Monday that
DPRK leader Kim Jong-il looked healthy and energetic when the two met
last weekend. Chung described Kim as a "kind and respectful young man."
Chung's son, Hyundai President Chung Mong-hun, added, "He appears to have
a deep sense of respect for elderly people."
Reuters ("S.KOREA TYCOON RETURNS FROM N.KOREA WITH OIL DEAL," Seoul,
10/31/98) and the Associated Press (J.H. Yun, "N.KOREAN LEADER OKS DEALS
WITH SOUTH," Panmunjom, 10/31/98) reported that Hyundai founder Chung Ju-
yung returned to the ROK Saturday from his five-day trip to the DPRK.
Chung stated, "North Korean leader Kim Jong-il promised to supply the
North's cheap crude oil to South Korea through pipelines." The pipelines
are to be built by Hyundai. Chung added, "We also agreed that the two
Koreas can work together on everything if that helps both. I think
South-North exchanges will improve and everything will progress well."
Chung said Kim Jong-il met him Saturday at his hotel. He stated, "We
spoke for a long time and Kim promised to cooperate on everything for
mutual benefits." The DPRK's Korean Central News Agency said that
chairman Kim Yong-sun and vice-chairman Song Ho-gyong of the DPRK's
Korean Asia-Pacific Peace Committee were present at the meeting. It said
that Kim Jong-il welcomed the visit of Chung and his family to Pyongyang
and had a cordial talk with them. Hyundai officials said that the
company agreed to pay the DPRK US$906 million over the next six years in
exchange for the right to develop Mt. Kumkang Mountain with tax
exemptions. They added that the first cruise ship will sail for the DPRK
on November 18. Other Hyundai-DPRK deals call for building a power plant
and gymnasium in Pyongyang, a ship repair yard, and hotels, spas, golf
courses, and ski slopes near Mt. Kumkang.
3. Hyundai's Projects in DPRK
Reuters (Yoo Choon-sik, "TWO KOREAS CAN BUILD TIES ON INDUSTRIAL PARK-
SEOUL," Seoul, 11/02/98) and the Associated Press ("S. KOREAN PRES. KIM
HOPES FOR HYUNDAI'S SUCCESS IN N. KOREA," Seoul, 11/02/98) reported that
ROK President Kim Dae-jung expressed hope Monday that the agreements
between Hyundai and the DPRK would spur inter-Korean economic exchanges
and help ease tension on the peninsula. Presidential spokesman Park Ji-
won quoted Kim as saying, "South-North economic cooperation is beneficial
for both sides and good for improving inter-Korea relations." Park said
that Kim expressed keen interest in Hyundai's plan to build an industrial
park on the DPRK's west coast exclusively for labor-intensive ROK plants.
Hyundai officials said that the industrial park would accommodate up to
800 ROK plants that have lost their competitiveness in international
markets. Hyundai Securities President Lee Ik-chi told Kim that the
industrial park project would have a big impact on the ROK economy. Lee
said that the complex would probably be built on a 66 million square
meter (16,300 acre) piece of land and annual exports could reach more
than US$10 billion. Lee stated, "If the (monthly) wage is below $100, it
will make a good labor market as (the wage level in) China is $120."
The Associated Press (Kyong-hwa Seok, "NORTH KOREA TURNS TO SOUTH FOR
AID," Seoul, 11/01/98) and Reuters (Bill Tarrant, "S.KOREA TYCOON TRIP
MAY LEAD TO N.KOREA THAW," Seoul, 11/01/98) reported that ROK analysts
said Sunday that the deal between Hyundai and the DPRK could spur wide-
ranging economic exchanges between the ROK and the DPRK and help ease
tensions on the Korean peninsula. Kwon Kyong-bok, an analyst at the
government-run Naewoe Press, stated, "The deal shows that North Korea,
badly in need of cash, wants to lift its economic openness to a higher
level." Paek Sung-ki, a political science professor at Kyongwon
University, stated, "As it cashes in on Hyundai, North Korea will be
further inclined to open itself to outside investment, which in turn will
help ease tension with South Korea." ROK officials expressed skepticism,
however, of plans by the DPRK and Hyundai to drill for oil on the DPRK's
west coast. Ra Byong-sun, president of the ROK's state-run Korea
Petroleum Development Corp., stated, "A small amount of oil ... was found
off the North's west coast in 1996, but there are no indications that it
and other offshore or onshore fields are economically feasible."
4. DPRK Tourism Project
Reuters ("HYUNDAI TO TAKE APPLICATIONS FOR N. KOREA TOUR," Seoul,
10/31/98) reported that Hyundai spokesman Park Sang-hoon said on Sunday
that the company would start accepting applications on Monday for its
cruise ship tour to the DPRK's Mt. Kumkang. Park said that Hyundai
chartered two cruise ships from Star Cruise in Malaysia and planned to
charter two more next year, depending on how well the business
progresses. He added that the two ships, which can accommodate about
1,000 tourists each, would make one round trip a week. Fares for a five-
day tour would range from one million won (US$760) to 3.2 million won in
nine different classes.
The Wall Street Journal (Jane L. Lee, "HYUNDAI DEAL COULD EARN NORTH
KOREA BIG REVENUE," Seoul, 11/02/98) reported that the agreement between
the DPRK and Hyundai to begin tours to Mt. Kumkang may yield nearly
US$900 million over six years for the DPRK. Hyundai will pay the DPRK
US$300 for each visitor to the mountains. Hyundai has guaranteed that
500,000 tourists a year will visit the area and the company agreed to pay
the DPRK for any shortfall in the number of visitors. However, Yoo Dong-
ryul, a researcher at the government-run Strategic Institute for
Countering North Korea, warned, "Those promises are not between the
states, but with South Korean companies. Companies, such as Hyundai, run
the risk of losing their investment if North Korea changes its policy."
5. ROK Economy
Reuters ("CAUTION AS S.KOREAN ECONOMY SHOWS RECOVERY SIGNS," Seoul,
10/31/98) reported that economic analysts cautioned that, despite signs
of recovery in the ROK economy, it was still far from clear that the
economy had bottomed out. The ROK National Statistical Office (NSO) said
on Friday that the country's industrial output had risen 0.3 percent
during the year to September, the first month in 1998 to show a rise from
a year earlier. However, the NSO attributed the increase to the month
having had more working days than September 1997, because the three-day
Korean Thanksgiving holiday had fallen in September last year but October
this year. An unnamed NSO official stated, "If the holiday factor is
considered, the industrial output actually fell about six percent." The
Bank of Korea, meanwhile, said the current account showed a surplus of
US$3.68 billion in September, against a US$2.22 billion surplus in August
and a US$509.9 million deficit a year earlier. Lee Soo-hee, a senior
analyst at the Korea Economic Institute, stated, "Undoubtedly, those
indicators should be something we celebrate about. But it is hard to
believe the economy has begun picking up."
6. US Defense Secretary's Asian Trip
Reuters (Charles Aldinger, "U.S. DEFENSE CHIEF CUTS SHORT ASIA TRIP OVER
IRAQ," Wake Island, 11/01/98) reported that US Defense Secretary William
Cohen canceled his scheduled trip to Asia Sunday to consult allies on the
latest crisis between Iraq and the UN over arms inspections. Cohen,
during a refueling stop on the US possession of Wake Island, announced
that he would turn back to Washington instead of continuing on to Hong
Kong as scheduled. He stated, "I need to be back there to talk to a
number of my colleagues in the alliance and I can't do that on the plane
as well as I can in Washington." Cohen said that he would reschedule
planned visits to Hong Kong, the ROK, and Japan.
7. Japanese Satellite Development
The Associated Press ("JAPAN MAY DEVELOP SPY SATELLITES," Tokyo,
10/31/98) reported that Japan's Asahi Shimbun said Saturday that Japan
has come up with a plan to develop four spy satellites by 2002 at a cost
of US$1.3 billion. The report added that the project still needs
approval by the ruling Liberal Democratic Party before it can be included
in the national budget.
8. PRC-Taiwan Diplomatic Rivalry
Reuters ("CHINA FORGES DIPLOMATIC TIES WITH TONGA," Beijing, 11/01/98)
reported that the PRC official Xinhua news agency said on Monday that the
PRC normalized diplomatic relations with the Kingdom of Tonga. The
agency said that Tonga agreed to normalize relations with the PRC in a
joint communique signed on October 26 in Beijing. It stated, "The
Kingdom of Tonga recognizes that the government of the People's Republic
of China is the sole legal government representing the whole of China and
that Taiwan is an inalienable part of the Chinese territory." Taiwan
said over the weekend that it would sever relations and terminate all aid
agreements with the Pacific Island nation.
1. Hyundai Founder's DPRK Trip
JoongAng Ilbo ("PRESIDENT KIM MEETS MR. CHUNG," Seoul, 11/02/98) reported
that on November 2, ROK President Kim Dae-jung said, "The result of
Hyundai's achievement should not be exaggerated in the press. Relations
between the ROK and the DPRK should progress step by step." He met Chung
Ju-yung, the founder and honorary chairman of Hyundai, Chung Mong-hon,
the chairman of Hyundai, and Lee Ik-chi, the chairman of Hyundai
Securities. Kim continued, "Certain companies have revealed their plans
for economic cooperation with the DPRK but the results have not been
enough. But, I expect Hyundai to succeed in their ongoing projects
including Mt. Kumgang tourism and to contribute to the improvement of
ROK-DPRK relations." He added, "The most important project we feel is
the construction of an industrial complex in the DPRK." Chung said, "Kim
Jong-il, the head of the Defense Committee, expressed his positive
attitude towards Mt. Kumgang development and felt sorry for the delays of
this project." He also reported that he talked with Kim Yong-sun, the
head of the Asia Pacific Peace Committee regarding details for economic
cooperation, including Mt. Kumgang development, automobile assembly line
construction, and a Pyongyang sports center. The DPRK also wanted five
diesel electric power generators to compensate for their chronic
electricity shortage. Park Ji-won, a Chung Wa Dae spokesman, said, "No
message came from the DPRK and President Kim did not ask about it."
2. Hyundai's Projects in DPRK
Hankook Ilbo ("HYUNDAI TO UNDERTAKE 9 PROJECTS IN DPRK," Seoul, 11/01/98)
reported that the Hyundai Group and the DPRK have agreed to team up on
nine economic projects as well as the construction of a gymnasium in
Pyongyang. The highlight of the agreement is a joint oil-drilling
program in the DPRK. Chung Mong-hun, chairman of the Hyundai Group, said
Hyundai made a proposal to search for oil along the west coast of the
DPRK because it is thought to have oil deposits. He said the DPRK
confirmed that if oil is found, it will pipeline the product to the ROK.
Chung also said that Hyundai will invest in construction of a 100,000KW
thermal power plant in Pyongyang if a payment guarantee is secured.
Hyundai also plans to build an auto assembly plant from which it will
export cars when problems involving customs duties are settled.
Furthermore, Hyundai plans to work with the DPRK to advance into foreign
construction markets. The ROK conglomerate is currently reviewing
construction projects in Turkmenistan and Libya. Hyundai has been given
the right to use some 66 million square meters of land in the DPRK's west
coast for a mammoth industrial complex that will be constructed on a 26.4
million square meter lot in seven stages over the next 10 years. Other
programs to be pursued include an aged ship-scrapping business, mineral
water development, and phone line installation. Hyundai and the DPRK
also agreed to build a large gymnasium in Pyongyang to provide a venue
for sports exchanges.
3. ROK's Sunshine Policy
Korea Times ("SUNSHINE POLICY GIVES BIRTH TO MUCH-AWAITED FIRST CHILD,"
Seoul, 11/01/98) reported that ROK President Kim Dae-jung's "Sunshine
Policy" toward the DPRK received a surprise boost when Hyundai won DPRK
leader Kim Jong-il's personal endorsement on numerous projects which
could potentially redefine inter-Korean relations. Since last February
when he took office, President Kim, an expert in DPRK-related affairs,
has put forward his grand design regarding inter-Korean relations as well
as successive calls for government-level dialogue, but a breakthrough has
failed to materialize. When a malfunctioning DPRK submarine was caught
in the net of an ROK fishing boat in ROK territorial waters in September,
Hyundai's Mt. Kumgang project narrowly averted cancellation due to a wave
of protest from conservative ROK politicians and others. However,
Hyundai's projects have survived all challenges and suffered only some
partial delays because President Kim has remained steadfast in his
engagement policy toward the DPRK. Now, his policy has given birth to
the first child and could potentially churn out offspring in all walks of
life for both the ROK and the DPRK. Hyundai agreed with the DPRK on a
US$906-million tourism development project and other initiatives,
including development of an industrial zone on the western coast, the
establishment of an auto assembly plant, and the construction of a
stadium in Pyongyang. President Kim apparently believes that if Hyundai
intensifies its business in the DPRK and other ROK companies follow suit,
inter-Korean relations would become automatically interdependent, a
development which could also contribute to bringing about political
dialogue between the two states.
4. ROK-DPRK Talks
Korea Herald ("ROK SEEKS INVESTMENT WITH DPRK, UNIFICATION MINISTER
STRESSES NEED TO RESUME GOVERNMENT-LEVEL TALKS," Seoul, 11/03/98)
reported that a top ROK unification policymaker indicated Monday that the
government will seek to conclude an investment protection agreement with
the DPRK. "If inter-Korean economic cooperation programs are in full
swing, the ROK and DPRK governments will have to get involved to protect
investments and deal with other matters," said Unification Minister Kang
In-duk. Kang stressed that the two Koreas need to resume the deadlocked
government-level talks if they are to facilitate economic cooperation.
He made the remarks while referring to the Hyundai Group's landmark
tourism project in DPRK, the first of its kind in inter-Korean relations.
Kang warned, however, against unbridled optimism, saying, "We should
handle inter-Korean matters with calm." He also said that the ROK
government will be prudent in making a decision on whether or not to give
the go-ahead to each project Hyundai agreed on with the DPRK.
5. ROK-US Security Meeting
Korea Herald ("ROK-U.S. SECURITY MEETING POSTPONED," Seoul, 11/02/98)
reported that the annual ROK-US Security Consultative Meeting (SCM),
previously planned for Monday and Tuesday in Seoul, will be rescheduled
as US Secretary of Defense William Cohen has canceled his Asia trip, the
Defense Ministry said Sunday. The Military Committee Meeting, an annual
meeting of the chairmen of the US and ROK Joint Chiefs of Staff, will
also be postponed and rescheduled, a ministry spokesman said. The
spokesman said this year's SCM will be delayed till after the present US-
Iraq crisis is over. He added that the ROK and the US will consult on
the rescheduling of their defense chiefs' annual meeting. Cohen was to
arrive in Seoul Monday after a stopover in Hong Kong.
6. ROK-DPRK Religious Exchanges
JoongAng Ilbo ("PROTESTANTS, THE MOST ACTIVE IN DPRK," Seoul, 11/02/98)
reported that Protestant denominations are the most positive towards
promoting contact with the DPRK. According to the ROK Ministry of
Unification, Protestant churches have applied 164 times for contact with
people in the DPRK from June 1989 to August of this year. The total
number of all applications for religious purposes reached 279. As of
now, Protestants have been granted the right to visit the DPRK 45 times
in total, followed by Buddhists (10) and Catholics (9). Applications by
religious clergy, monks, and ministers to visit the DPRK also increased.
The total number of applications reached 15 from January to August of
this year.
7. World Climate Convention
Chosun Ilbo ("KOREA TO ATTEND WORLD CLIMATE CONVENTION," Seoul, 11/01/98)
reported that the fourth World Climate Change Convention will be held in
Buenos Aires Argentina between November 2 and 13. The ROK delegation
headed by Choi Jae-wook, the Minister of Environment, will join
representatives of 170 member countries at the convention. The delegates
will discuss countermeasures for the greenhouse effect. The government
has expressed its intention to participate in the pollution reduction
program from 2018, about 10 years after the most advanced countries.
8. The Controversial Views Of Professor Choi
Joongang Ilbo ("STATEMENT ON PROFESSOR CHOI JANG-JIP BY KOREA SCHOLARS IN
THE U.S.," 10/31/98, A2) reported that a group of renowned Korea scholars
in the US issued a statement Friday regarding the debate over the
controversial views of ROK Professor Choi Jang-jip. About 20 US
scholars, including Carter Eckert and David McCann of Harvard University
and James Palais of the University of Washington, met at the UCLA campus
on October 30 and issued a statement, which said, "the ideological debate
precipitated by the Chosun Ilbo is a challenge to academic freedom." It
added that "Korea should also come out of the Cold War mentality and
engage in future-oriented discussions." Also attending the meeting which
adopted the statement were Michael Robinson of Indiana University, Robert
Buswell and John Duncan of UCLA, and Ken Wells of the Australian National
University, as well as well-known Korean-American scholars such as Hong-
yung Lee (UC Berkeley), Byung-chul Koh (University of Illinois) and Ki-
wook Shin (UCLA).
Joongang Ilbo ("FIRST COURT HEARING ON PROFESSOR CHOI JANG-JIP'S LAW
SUIT," 10/31/98) reported that the first hearing on Professor Choi Jang-
jip's defamation lawsuit against the Chosun Ilbo was held at the Seoul
District Court on October 30. Choi had filed a suit for an article
published in the November issue of the "Monthly Chosun," which he claimed
distorted his writings and demanded the immediate suspension of
circulation of the magazine. Choi's attorney, Ahn Sang-woon, asserted
that the "Monthly Chosun" article wrongly attributed Choi as saying the
Korean War was one of "national liberation," when in fact this was merely
an introduction to a DPRK claim. An attorney for the Chosun Ilbo
countered that since Professor Choi holds a position that can shape the
philosophical and policy direction of the government's "Second Nation-
Building" campaign and therefore is a "public person," the media has the
right and responsibility to examine his ideology. The judge granted the
request of Choi's lawyers to call as a witness Professor Kim Hak-joon,
President of Inchon University.
1. New Positions Available
The Center for War, Peace, and the News Media at the New York University
Department of Journalism and Mass Communication is accepting applications
for the following positions:
DIRECTOR FOR MEDIA AND INTERNATIONAL AFFAIRS
The Center for War, Peace, and the News Media (CWPNM) seeks an
experienced journalist or media-savvy professional to direct its Global
Reporting Network (GRN), the country's largest mid-career media education
program dedicated to improving reporting of international issues. The
GRN works in the US and globally to strengthen coverage of foreign
policy, Asian and European security, ethnic conflict, economic
globalization, and human rights, among other issues. The Director
manages a new op-ed syndicate, Global Beat web site, briefings and
seminars. Ideal candidate has 10+ years' experience, a critical
perspective on international reporting, editorial creativity, and
management experience. Competitive salary plus extensive benefits.
ASSISTANT DIRECTOR, GLOBAL REPORTING NETWORK
The Assistant Director is responsible for the implementation of all
program activities of the eight-year-old GRN, under the supervision of
the Center's Director of Media and International Affairs, including
organizing reporting trips, seminars, conferences, and briefings;
conducting project-oriented research, supporting the Global Beat web
site, and providing administrative support for all GRN activities. Ideal
candidate has at least 3-5 years experience, knowledge of global security
issues, event organizing skills, and strong administrative capabilities.
Web experience is extremely desirable. Salary high $20s to mid-$30s plus
extensive benefits.
TO APPLY FOR EITHER POSITION: Send letter, CV, references and samples to
Robert Leavitt, CWPNM, 418 Lafayette St., New York, NY 10003. Fax: 212-
995-4143. NYU is an Equal Opportunity
Employer.
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