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Northeast Asia Peace and Security Network DAILY REPORT For Monday, November 23, 1998, from Berkeley, California, USA |
1. Clinton Visit to ROK
Reuters (Arshad Mohammed, "CLINTON SEES 'SIGNS OF DANGER' FROM N.KOREA,"
Seoul, 11/22/98), the Associated Press (Terence Hunt, "CLINTON PRAISES
AMERICAN TROOPS," Seoul, 11/22/98), the Wall Street Journal (Jackie
Calmes, "CLINTON CALLS FOR VIGILANCE IN KOREA AS SECURITY ISSUES SURFACE
IN TRIP," Seoul, 11/23/98), the Washington Times (Bill Sammon, "CLINTON
PLEDGES TO CONTAIN IRAQ, NORTH KOREA," Seoul, 11/23/98) and the New York
Times (James Bennet, "CLINTON, IN SOUTH KOREA, SEES 'SIGNS OF DANGER',"
Osan Air Base, 11/23/98) reported that US President Bill Clinton on
Sunday toured US bases in the ROK and warned of "signs of danger" from
the DPRK. Clinton stated, "Lately signs of danger have intensified, with
incursions from the North, provocative missile tests and the question of
a suspect underground installation. So we must remain vigilant." He
urged the DPRK to abandon its efforts to develop ballistic missiles and
chemical and biological weapons and warned it not to underestimate the US
commitment to the ROK. He added, "We will continue to press North Korea
to take these steps of peace and security but until it fully commits
itself to a constructive role on this peninsula, we must remain ready."
Clinton said that, despite the tension, there were "some hopeful signs"
to justify ROK President Kim Dae-jung's engagement policy toward the
DPRK, pointing to the resumption of military talks between the DPRK and
the UN Command.
The Associated Press (Robert Burns, "CLINTON WANTS ANSWERS FROM N.
KOREA," Seoul, 11/21/98), Reuters (Donna Smith, "CLINTON URGES ACCESS TO
N. KOREA NUKE SITE," Seoul, 11/21/98), the New York Times (James Bennet,
"CLINTON IN PLEA TO NORTH KOREA ON CLOSER TIES," Seoul, 11/22/98, 1) and
the Washington Post (Kevin Sullivan and John F. Harris, "CLINTON, KIM
DEFEND POLICIES ON NORTH KOREA," Seoul, 11/22/98, A36) reported that US
President Bill Clinton and ROK President Kim Dae-jung held a news
conference on Saturday, pledging to work together to combat the DPRK's
nuclear threat. Kim said that his government would "spare no effort in
supporting the U.S. endeavor" to resolve the nuclear question. He called
for full access for US inspectors at a DPRK underground facility and said
the DPRK must constrain its development and exports of missiles. He
added, however, "North Korea is cautiously but noticeably taking measures
to increase interaction and cooperation between the South and the North."
Clinton said that the DPRK construction site "raises a strong suspicion.
We need access to it." Clinton also noted the significance of the Mt.
Kumkang tourism deal, saying, "Nothing could ever be put into that hole
in the ground ... that would give the North Koreans as much advantage, as
much power, as much wealth, as much happiness, as more of those ships
going up there full of people from here." Defending the US policy of
engagement with the DPRK, Clinton stated, "I hope that the North Koreans
will not do anything to force us to change policy." Clinton's National
Security Adviser Sandy Berger said that the US would insist on access to
the underground site and would not pay the compensation demanded by the
DPRK.
2. DPRK Missile Program
The Washington Post (Dana Priest and Thomas W. Lippman, "N. KOREA
EXPANDING MISSILE PROGRAMS," 11/20/98, A01) reported that unnamed US
intelligence and diplomatic sources said that the DPRK is building at
least two new launch facilities for the Taepodong 1 and has stepped up
production of short-range missiles. Intelligence sources said that the
DPRK is building a launch facility for the Taepodong 1 at Yongo-dong that
could be completed in 1999, and a similar site is under construction at
Chiha-ri. An unnamed senior US official said, "We have identified some
construction that we think might be bunkers to store Taepodongs in. You
could roll them out and elevate them into a position to launch." Another
unnamed administration official who monitors the DPRK program stated,
"They are proliferator number one, selling not only missiles but
production capability." White House foreign policy spokesman David Leavy
stated, "The administration certainly has serious concerns about the
missile program. This issue [is] an important element of the president's
agenda in Japan and South Korea. We are going to raise this and make the
security issues an important part of this trip." David Kay, chief UN
nuclear weapons inspector from 1991 to 1992, warned, "The missile threat
is much more immediate. These are weapons of terror and intimidation."
Officials said that the US has urged the PRC to deliver the message to
the DPRK that further missile launches over Japan would jeopardize the
Agreed Framework because the Japanese parliament and the US Congress
would cut off funding. US officials said that the US has set up a system
of interdiction to block DPRK missile-parts cargoes from reaching their
destinations. They said that the DPRK routinely falsifies cargo
manifests for missile exports, making it possible for the US to tip off
customs and other law enforcement officials at intermediate ports of call
and have the shipments intercepted.
Reuters (Carol Giacomo, "U.S. SAYS TIES WITH N. KOREA AT 'CRITICAL'
POINT," Washington, 11/21/98) reported that US Secretary of State
Madeleine Albright said Friday that the US continues to have serious
problems with the DPRK missile program. Albright stated, "We have
insisted that the DPRK cease its long-range missile development,
production and export program and we are at a critical juncture in our
relations with Pyongyang." She added, "The choice is for the North to
behave in a way that allows for a positive direction in our relations."
3. DPRK Underground Construction
US Special Envoy for the Korean Peace Talks Charles Kartman ("KARTMAN
11/19 NEWS CONFERENCE ON TALKS WITH N. KOREA," Washington, USIA
Transcript, 11/19/98) said Thursday that the US and the ROK are
determined to resolve suspicions that the DPRK is using a site in the
Kumchangni area for nuclear related purposes. Kartman said that he had
two days of "quite intensive" discussions in Pyongyang with a team lead
by DPRK Vice Foreign Minister Kim Kye-gwan, during which he made clear
that it was "imperative" that US suspicions be resolved. He added,
"Although we discussed some ideas for access to that site, there is still
a rather wide gap between our positions, and I have to say that we are
not yet satisfied that we have a solution in hand. Nonetheless, I feel
that we have had a useful exchange of presentations, and we have invited
the North Koreans to continue these serious talks as soon as possible and
we will be discussing some particulars of timing and venue through our
New York channel." Kartman stated, "I think it should be clear that my
presentation about the need to resolve our suspicions contained a very
clear element of the danger that the failure to resolve those suspicions
would pose for the viability of the Agreed Framework." He said that the
US and the ROK "both believe that there is compelling evidence that this
site is intended to be used for nuclear related activities."
The Washington Post (Kevin Sullivan and John F. Harris, "CLINTON DEFENDS
'WISE' POLICY OF ENGAGING DEFIANT N. KOREA," Seoul, 11/21/98, A12)
reported that US President Clinton on Friday said that it was difficult
to determine the motivations behind the DPRK's demand that the US pay
compensation for inspecting an underground construction site. He stated,
"I think it's fair to say that no one can be absolutely sure of whether
the North Korean position is simply a product of economic difficulties,
so they're attempting to get more money out of various countries for
doing what they should be doing anyway, or whether they really are moving
toward a more aggressive posture." Clinton said that he remains
convinced that the 1994 Agreement Framework "has done its job." Without
the deal, "North Korea already would have produced a sizable amount of
weapons-grade plutonium." He warned, however, "Further provocations will
threaten the progress we have made."
4. Future of Agreed Framework
ABC News ("NORTH KOREA MAY PROVOKE STANDOFF OVER ITS NUCLEAR WEAPONS,"
11/23/98) reported that analysts said that the US and the DPRK are
approaching a confrontation that might jeopardize the 1994 Agreed
Framework. Richard Grinker, author of "Korea and its Futures:
Unification and the Unfinished War," stated, "North Korea doesn't feel
like it has any bargaining chips, any way to leverage the international
community, other than the specter of nuclear weapons. It's not
surprising that it continues to use that. The actual progress on the
nuclear facility is almost beside the point. What the North Koreans want
is for the international community to fear it." William Taylor Jr., a
specialist in international security affairs at the Center for Strategic
and International Studies, argued, "The North Korean pattern of diplomacy
is pure brinkmanship. If we push, the North Koreans will threaten to
pull out of the Nuclear Non-Proliferation Treaty or launch another
missile over Japan." Taylor added that, given other foreign policy
challenges the US is facing, "Crisis time is coming. Now we find out if
the administration can walk and chew gum at the same time."
The Washington Post carried an opinion article by Selig S. Harrison of
the Century Foundation ("THE KOREAN SHOWDOWN THAT SHOULDN'T HAPPEN,"
11/22/98, C02) which said that the US bears much of the responsibility
for the current tensions with the DPRK. The author argued that critics
of the Agreed Framework "are waging a calculated campaign that
misrepresents the inspection provisions in the agreement and blurs the
distinction between actual violations of the freeze and suspected
activity that could lead to violations." He maintained that, based on
his conversations with DPRK officials, "Pyongyang is not yet committed to
acquiring a nuclear weapons capability and would welcome a settlement
with the United States that would rule out nuclear weapons and long-range
missile deployments." He cited Kenneth Quinones, former director of DPRK
affairs in the US State Department, as recounting "running debates" over
DPRK policy during his tenure between "hard-liners who completely
distrust Pyongyang and those who argue that North Korea's economic
problems offer an opportunity for constructive engagement." He also
pointed to Quinones's argument in NAPSNet Policy Forum Online #21 that
opponents of the Agreed Framework deliberately leaked intelligence
reports on the DPRK's underground site. The author said that the Agreed
Framework sets up a two-stage inspection process, under which
International Atomic Energy Agency (IAEA) verification of the DPRK's
pledge not to build new nuclear facilities would not become mandatory
until the two promised new nuclear reactors are completed. He argued
that the current stalemate could be solved if the DPRK agreed to permit
one-time US inspection access to several agreed-upon sites and declared a
moratorium on missile tests and deployment beyond an agreed range and
ending its exports of missiles and missile components. In exchange, the
US "should accelerate the construction of the reactors and be prepared to
end all sanctions on non-strategic trade and investment relations with
North Korea that can be lifted by the president without congressional
approval." He also called on the US to sponsor a multilateral program to
help the DPRK develop its industrial base and should support a UN
Development Fund program to make the DPRK self-sufficient in grain
production. He concluded, "The American objective should be to maintain
the freeze for as long as possible while continuing to pursue
negotiations on a broader settlement."
5. Alleged DPRK Incursion into ROK Waters
Reuters (Jean Yoon, "SEOUL DEMANDS NORTH KOREA STOP PROVOCATIONS," Seoul,
11/22/98) and the Associated Press (NORTH KOREA ACCUSED OF PROVOCATION,"
Seoul, 11/21/98) reported that the ROK Defense Ministry said Saturday
that the ROK navy on Friday chased a suspected DPRK spy ship out of ROK
territorial waters. The ministry said in a statement, "We demand North
Korea to stop immediately its reckless acts of provocation that violate
the Joint Armistice Agreement." A defense ministry spokesman said that a
high security alert was issued early Friday, but was canceled late the
same day after it was concluded that no DPRK agent had landed from the
ship. The spokesman said that the ministry believed the ship was capable
of carrying four to five DPRK agents and was sent to the ROK to either
drop off agents or pick them up after a scouting mission. He added, "We
believe they failed to accomplish the mission as the ship was spotted by
us."
The Associated Press ("NORTH KOREA DENIES INFILTRATING SPY SHIP INTO
SOUTH KOREA," Seoul, 11/23/98) reported that the DPRK denied Monday that
it infiltrated a spy boat into ROK waters last week. The DPRK's official
Korean Central News Agency said, "The loudmouthed intrusion incident is a
product of premeditated anti-North smear campaign of the bellicose
elements of the puppet military who seek tense inter-Korean relations and
showdown." It added, "They are launching a smear campaign aimed to make
an impression as if the North were a source of the tense situation,
synchronized with U.S. President Bill Clinton's trip to South Korea."
6. DPRK Tourism Project
Reuters (Hong Ki-soo, "S.KOREA TOURISTS RETURN FROM FIRST JOURNEY TO
NORTH," Donghae, 11/22/98) reported that the first ROK tourists to the
DPRK's Mt. Kumkang returned Sunday. Kang Nam-sool, one of the tourists,
stated, "I believe the Mount Kumkang tour can speed up the
reunification." A second tourist ship left Friday.
The Associated Press (Paul Shin, "CASH-HUNGRY N.KOREA EXPANDS TOURISM,"
Changjon, 11/22/98) reported that ROK Unification Ministry officials who
accompanied the tourists to the DPRK's Mt. Kumkang said that members of
the DPRK military had strongly opposed opening the port of Changjon but
were overruled by Kim Jong-il. About half a dozen ministry officials
were aboard the ship and were eventually allowed to disembark by the
DPRK. The officials said that Changjon's harbor was until recently the
home base of a major DPRK naval fleet, but most of the fleet was
relocated farther north before the tour started. The article said that
DPRK officials blocked transmission of reports by 200 journalists who
accompanied the tour.
7. ROK Prisoners from Korean War
Reuters ("SKOREA SAYS 136 POWS HELD IN N.KOREA," Seoul, 11/23/98)
reported that ROK Vice Minister of Defense An Byong-kil said on Monday
that the DPRK is still holding some 136 ROK prisoners of war (POWs). An
based his estimate on eyewitness evidence from 16 former ROK POWs who had
escaped the DPRK. He said that the government was trying to introduce a
new law that would allow compensation and support for POWs who settle in
the ROK. A ministry spokesman said the government was considering
exchanging the 136 POWs with DPRK war veterans who have been in the ROK
since the Korean War.
8. US-Japanese Military Relations
Reuters (Teruaki Ueno, "U.S., JAPAN CEMENT STRONGER MILITARY TIES,"
Tokyo, 11/20/98) reported that an unnamed Japanese defense official said
on Friday that the US and Japan took another step towards stronger
military ties during US President Bill Clinton's visit to Tokyo last
week. The official stated, "President Clinton's visit is extremely
timely in the sense that Japan and the United States are trying to fully
implement the Japan-U.S. guidelines for military cooperation." He also
said, "Threats from North Korea are, in fact, working in favor of our
military relationship." He added that the announcement of the
resignation of Japan's defense chief over a procurement scandal had
little impact on military talks because much of the groundwork had
already been done. In a news conference at the end of his visit, Clinton
stated, "The relationship between the United States and Japan is the
cornerstone of stability and prosperity in the Asia-Pacific region." He
added, "The Prime Minister and I had good discussions on important
security issues including our shared concerns about North Korea."
9. Japanese Defense Procurement Scandal
The Associated Press ("JAPAN'S DEFENSE CHIEF RESIGNS," Tokyo, 11/20/98)
reported that the head of Japan's Defense Agency, Fukushiro Nukaga,
resigned Friday following the release of an internal agency report that
exposed a high-level cover-up in a procurement corruption scandal. The
scandal involves defense officials suspected of allowing NEC Corporation
to inflate defense contract bills in exchange for providing jobs for
retiring defense agency officials. Thursday's report said that officials
throughout the agency conspired to hide evidence from prosecutors. Two
Defense Agency officials have been indicted, as have a dozen employees
and former employees from NEC and two subsidiaries.
10. PRC-Japan Summit
The Associated Press ("TAIWAN WARY OVER CHINA PRES' JAPAN VISIT -DEPUTY
FOREIGN MIN," Taipei, 11/23/98) reported that Taiwan Deputy Foreign
Minister David Lee on Monday expressed concern about the effect that PRC
President Jiang Zemin's trip to Japan will have on Taiwan. Lee stated,
"We understand and respect the reasons behind Jiang's visit, but we hope
that during the visit, Japan won't trade away, sacrifice or backtrack on
Taiwan's interests." He said that Taiwan is mobilizing its contacts in
Japanese political, media, and academic circles to remind Japan of its
past commitments to Taiwan. Lee said that, while Taiwan supports a
Japanese apology for its wartime atrocities against China, the PRC has no
right to make such a demand because the Nationalists were China's wartime
government and led the fight against the Japanese. He stated, "We feel
Japan should apologize to the Chinese people ... but we don't feel Japan
should apologize to the Chinese Communist political authority." He also
accused the PRC of raising discussion about Taiwan's possible inclusion
in a regional anti-missile defense network through its 1995-96 military
exercises in the Taiwan Straits.
11. PRC-Russian Summit
Reuters (Gareth Jones, "AILING YELTSIN, CHINA'S JIANG HOLD HOSPITAL
SUMMIT," Moscow, 11/ 23/98) reported that Russian President Boris Yeltsin
held talks with PRC President Jiang Zemin Monday at the Central Clinical
Hospital where Yeltsin is recovering from pneumonia. Kremlin spokesman
Dmitry Yakushkin stated, "The two leaders held a good, working meeting."
The two leaders were expected later to issue two joint statements -- one
entitled "Russo-Chinese Relations on the Threshold of the 21st Century"
and a second hailing completion of the border demarcation. Also on
Monday, Jiang visited the Duma and met Speaker Gennady Seleznyov. He was
also scheduled later to meet Yegor Stroyev, speaker of the Federation
Council upper house, and Prime Minister Yevgeny Primakov. Jiang plans to
visit the Siberian city of Novosibirsk Tuesday and fly on to Japan
Wednesday.
12. US Nuclear Arsenal
The New York Times (Steven Lee Myers, "PENTAGON READY TO SHRINK ARSENAL
OF NUCLEAR BOMBS," Washington, 11/23/98) reported that US Defense
Department officials are recommending that the US consider unilateral
reductions in the nation's nuclear arsenal. Senior administration
officials said that the recommendations, if adopted, would reduce the US
arsenal below the 6,000 nuclear warheads allowed by START I. They
pointed out that, because of Russia's delay in ratifying START II, and US
legislation blocking unilateral cuts, the Defense Department faces the
prospect of paying hundreds of millions of dollars to maintain nuclear
weapons that the US has already agreed to scrap. The US has spent US$95
million more over the past two years than it would have if START II had
taken effect. Next year, it would cost US$100 million more, and US$1
billion in 2000. The Navy could be forced to pay more than US$5 billion
between now and 2003 to refuel nuclear reactors and install new missiles
on four Trident ballistic-missile submarines that would otherwise be
dismantled. A senior White House official said that US President Bill
Clinton and US Secretary of Defense William Cohen would not make a
decision on the recommendations until the Russian Duma completes its
latest deliberations on START II.
13. US-Indian Nuclear Talks
The Associated Press ("INDIA SAYS U.S. NUCLEAR TALKS SLOW," New Delhi,
11/21/98) reported that Indian Defense Minister George Fernandes said
Saturday that seven rounds of nuclear talks between India and the US have
made little progress. Fernandes stated, "The talks have shown that the
United States has an agenda for India which is not acceptable." He
added, "The United States should understand India's security concerns and
reconcile itself to the obvious. India is too big and potentially a very
powerful country to be subjected to a carrot and stick treatment."
US Department of State Spokesman James P. Rubin issue a statement ("RUBIN
STATEMENT ON INDIA-US BILATERAL TALKS IN ROME," Washington, USIA Text,
11/20/98) that said: "Deputy Chairman of the Planning Commission of the
Government of India Jaswant Singh and Deputy Secretary of State of the
United States Strobe Talbott met in Rome on November 19-20, 1998, for the
seventh round of bilateral discussions. The two sides reviewed issues
related to disarmament, non-proliferation, and bilateral relations, as
well as regional and international developments. Mr. Singh and Mr.
Talbott received and discussed an extensive report on the recent meeting
on export controls between Indian and American delegations in New Delhi
on November 9-10. Those talks were deemed helpful to the prospect of
continuing cooperation in this area. The Indian delegation raised its
concern about the recently published entities list and access to
international financial institutions. The American delegation described
the circumstances that will enable the two countries to transcend such
difficulties as currently exist. Both delegations found the November 19-
20 exchanges constructive and judge that they will contribute to an
atmosphere that will facilitate further progress in establishing the
positive environment both sides seek. The two sides will meet again in
January in New Delhi to carry forward this process."
1. President Kim's DPRK Policy
JoongAng Ilbo ("PRESIDENT KIM, NO CHANGE IN DPRK POLICY," Seoul,
11/20/98) reported that ROK President Kim Dae-jung does not feel the
alleged underground nuclear facilities in the DPRK or the unidentified
DPRK vessel detected off the ROK's west coast are serious plots by the
DPRK to undermine the Korean peninsula's growing stability. Kim
commented on his return from visiting the PRC and the APEC summit
meetings, "These kinds of incidents were considered a possibility in the
growing relationship between the ROK and the DPRK. We will maintain the
ongoing policy that preserves security and cooperation simultaneously."
Regarding the alleged nuclear facilities in Kumchangri, Kim commented,
"That is unconfirmed so far but only an allegation. No conclusive
evidence has been found yet. There is also no evidence that the DRPK
contravened the Geneva Agreement. If we worsen the situation without any
conclusive evidence, our economy could suffer. The government will
fulfill our stated policies towards the DPRK, while maintaining national
security. Allegations about the DPRK's nuclear facilities should be
cleared up as quickly as possible. If the DPRK has not developed nuclear
arms, all they have to do is show it."
2. Alleged DPRK Incursion into ROK Waters
Chosun Ilbo ("MOND WARNS DPRK OVER SPY SHIP," Seoul, 11/21/98) reported
that the ROK Ministry of National Defense (MOND), in a strongly worded
statement Saturday, warned the DPRK to cease operations that violated the
armistice agreement, referring to the spy ship incident early Friday
morning. The statement said "the ship which fled at 5:09am Friday after
infiltrating ROK waters off Kanghwa island was confirmed to be a DPRK spy
ship engaged in provocative action." It continued, "This action is a
clear violation of the armistice and provocative military action,
following the submarine and armed infiltrations in June and July. We
once again call on the DPRK to stop this action." The ROK army remains
on a state of high alert and marine units are conducting security checks
in the area after unidentified footprints were allegedly found in the
vicinity.
3. ROK-US Summit
Chosun Ilbo ("KIM AND CLINTON URGE INSPECTION," Seoul, 11/21/98) reported
that Presidents Kim Dae-jung and Bill Clinton held a morning meeting at
Chongwadae Saturday and issued a joint statement urging the DPRK to allow
an inspection of its suspected nuclear facility at Kumchangri, near
Youngbyon. The two leaders shared the awareness that the DPRK's missile
development is threatening peace and stability not only on the Korean
peninsula, but also Northeast Asia. They called on the DPRK to halt
weapon development and sales to prevent an arms race in the region. Both
presidents agreed to continue their policies of engagement with the DPRK
in order to foster change and reform there, but will do so in a manner
that guarantees the security of the US and the ROK. Kim and Clinton
discussed their respective visits to the PRC and Japan, and agreed to
request active cooperation from the two countries in maintaining peace in
the area
4. ROK-US Summit
JoongAng Ilbo ("KIM-CLINTON HAVE A FRUITFUL SUMMIT," Seoul, 11/21/98)
reported that ROK President Kim Dae-jung and US President Bill Clinton
held a summit meeting on November 21 at the Blue House (Chong Wa Dae) and
agreed upon major pressing issues, including suspicions about the DPRK
nuclear program. The two leaders were in accord on the possibility of
provocation by the DPRK, such as their missile development and alleged
nuclear processing capabilities. They agreed that DPRK issues will be
jointly managed by the ROK, the US, and Japan. However, they issued a
strong warning that if the DPRK plans to exploit perilous nuclear weapons
and missiles for military purposes, it would not be acceptable at
anytime. They had no outstanding disagreements on major issues and
President Kim obtained solid support from the US. Kim's focus, however,
was on toning down the hard-line rhetoric and easing tensions over the
DPRK's threat, while Clinton seemed more conscious of the Republican-
controlled Senate's stance that the Geneva Agreement could be canceled if
the DPRK's attitude does not change.
5. DPRK Tourism Project
Korea Herald ("HYUNDAI'S FIRST CRUISE SHIP RETURNS FROM DPRK; MT. KUMGANG
TOURS AVAILABLE TO FOREIGNERS IN MID-MARCH," Seoul, 11/23/98) reported
that foreigners will be allowed to tour Mt. Kumkang in the DPRK aboard
the "Hyundai Kumkang," a luxury cruise ship operated by the Hyundai
Group, beginning in mid-March next year. Kim Yoon-gyu, head of Hyundai's
DPRK business team, said at the press meeting at Changjon Port in the
DPRK, "The DPRK is expected to lift its ban on foreigners' excursion to
Mt. Kumkang aboard Hyundai's pleasure ship in mid-March at the earliest."
Given the rich symbolism of Mt. Kumkang in Korean culture, the DPRK
decided to first open the tours exclusively to its ROK brethren when it
signed the historic contract for the Mt. Kumkang tourism and development
project with Hyundai earlier this year. Under close cooperation with the
Korea National Tourism Corp. (KNTC), Hyundai will also seek to build a
casino business on its deluxe cruise ships which operate between Donghae
Port in the ROK and the DPRK port of Changjon, he said.
6. ROK-US Cooperation on Millennium Bug
Korea Times ("ROK, US SIGN ACCORD ON Y2K ISSUE," Seoul, 11/21/98)
reported that the ROK and the US on November 20 signed an agreement to
promote electronic commerce and enhance cooperation to solve the so-
called "Y2K issue," also known as the "Millennium Bug." ROK Foreign
Affairs-Trade Minister Hong Soon-young and US Secretary of Commerce
William Daley signed the accord at Hong's office. Daley was accompanying
President Bill Clinton on his four-day state visit. The agreement calls
on the two countries to make joint efforts to enhance electronic commerce
on the principle of minimizing government interference in business and
encouraging greater private initiatives. During their meeting, Hong and
Daley also shared the view that they would maintain the policy of not
applying tariffs to Internet transactions and to support drafting of
regulations on electronic commerce by the World Trade Organization (WTO).
The two ministers also supported the protection of privacy and
intellectual rights, prevention of distribution of obscene materials, and
the recognition of electronic signatures. The two also agreed to share
information dealing with the "Y2K issue" to bolster efficiency and cut
costs.
1. Japanese-US Summit
The Yomiuri Shimbun ("JAPAN AND US SHARE CONCERN OVER DPRK SUSPECTED
NUCLEAR FACILITIES," 11/21/98) reported that Japanese Prime Minister
Keizo Obuchi and US President Bill Clinton agreed on November 20 in Tokyo
to establish Japan-US-ROK working meetings and to strengthen information
exchange among the three countries regarding the DPRK's suspected nuclear
facilities. Clinton said, "The Agreed Framework was useful in stopping
the DPRK's nuclear development. I am sure that as policy it was
appropriate." However, Clinton said that the US-DPRK talks on
inspections of the DPRK's suspected underground nuclear facilities
failed. Obuchi, on the other hand, said, "The suspected underground
facilities infringes on the Agreed Framework itself," expressing a deep
concern and emphasizing the need for close ties between Japan and the US.
As for the DPRK's missile launch and export, Clinton announced his
intention to continue to demand that the DPRK stop them. As for the
issue of US bases on Okinawa, both agreed to support the framework of the
Special Action Committee on Okinawa (SACO). Obuchi also gave a positive
response to Clinton's expectation on an early passage of bills related to
the New Guidelines for Japan-US Defense Cooperation. As for economic
policy, while Clinton hailed Obuchi's decision on the 24 trillion yen
emergency economic package, Clinton asked Obuchi to include additional
stimulus measures in the 1999 fiscal year whenever necessary. Clinton
also pointed out the need for Japan's further market liberalization and
deregulation. According to the report, Obuchi and Clinton discussed both
security and the economy for forty minutes each. Clinton also invited
Obuchi to the US in the early May of 1999, and Obuchi accepted the offer.
2. Japanese-PRC Relations
The Yomiuri Shimbun ("POLICY OUTLINE FOR JAPAN-PRC JOINT ACTIVITIES WAS
REVEALED," 11/23/98) reported that the policy outline for Japan-PRC Joint
Activities was revealed on November 22. The policy outline consists of
two main themes including "Japanese-PRC bilateral cooperation" and
"cooperation in the international community" and nine specific areas of
cooperation. "Bilateral cooperation" involves summit and cabinet member
exchanges, political dialogue, economic cooperation, and cultural
exchanges. "Cooperation in the international community" includes
environmental issues or nuclear nonproliferation. The policy outline
will be announced along with the Japan-PRC Joint Document on November 26
during the visit by PRC President Jiang Zemin to Japan.
3. US DPRK Policy
The Nikkei Shimbun ("US PRESIDENT DEMANDS DPRK TO ABOLISH NUCLEAR
DEVELOPMENT," Seoul, 11/23/98) reported that US President Bill Clinton
gave a speech at a US base in a suburb of Seoul on November 22, demanding
that the DPRK abandon its nuclear program and development and export of
chemical weapons and ballistic missiles. Clinton also stated that the US
and the ROK should be ready to respond to military contingencies until
the DPRK is able to play a constructive role for peace on the Korean
Peninsula. Clinton pointed out that the spread of weapons of mass
destruction is "the greatest threat in the post-Cold War world" and that
the DPRK, in addition to Iraq, is a great concern. He emphasized that
the US government is paying special attention to the DPRK's missile test
last August.
4. DPRK Tourism Project
The Yomiuri Shimbun (Chiharu Mori, "DPRK KUMGANSAN TOURISTS RETURN HOME,"
Seoul, 11/23/98) reported that the ship named Hyundai Kumkangsan return
to the ROK from Mt. Kumkang with 826 ROK tourists aboard after their
four-day stay on November 23. According to the report, Hyundai will
regularize the tour. However, because applications for the tour have
been less than expected, they will lower the present average price. The
period of stay will also be reduced from 4 nights to three nights.
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International Policy Studies Institute
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