NAPSNet Daily Report
wednesday, june 30, 1999

I. United States

II. Republic of Korea III. People's Republic of China IV. Latest NATO Nuclear Flash
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Bulletin of Atomic Scientists Cover Story on DPRK Windpower Project

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I. United States

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1. DPRK Missile Test

The Associated Press (Robert Burns, "N. KOREA MAY TEST MISSILE," Washington, 06/30/99) and Reuters ("U.S. SAYS N.KOREA MAY BE PREPARING MISSILE LAUNCH," Washington, 06/30/99) reported that, according to US Deputy Assistant Defense Secretary Kurt Campbell, the DPRK appears to be making preparations for a new missile launch. Campbell stated, "I think it is fair to say that we have seen some preparations." Campbell reiterated that the US and the ROK had warned the DPRK against further testing of long-range ballistic missiles. Campbell said, "Provocative actions like this, that we think might be contemplated by North Korea, do have very real implications for our ability and desire to continue that [engagement] process."

The Associated Press ("N KOREA DEPLOYED AT LEAST 10 RODONG MISSILES," Tokyo, 06/30/99) reported that, according to the Japanese business daily Nihon Keizai on Wednesday, Japanese Foreign Minister Masahiko Komura said that the DPRK had deployed over ten Rodong ballistic missiles with a range of up to 1,300 kilometers (800 miles). Nihon Keizai also quoted Komura as saying, "In giving this warning, we would provide North Korea concrete evidence that launching a missile would not be to their advantage." Komura also suggested that Japan, the ROK, and the US would consider imposing economic sanctions on the DPRK if a missile were launched.

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2. DPRK-UNC Talks

The Associated Press ("U.N. COMMAND, N. KOREA TO HOLD THIRD ROUND OF TALKS," Seoul, 06/30/99) and Reuters ("UN COMMAND, N.KOREA SET THIRD MEETING FOR JULY 2," Seoul, 06/30/99) reported that generals from the United Nations Command (UNC) will meet DPRK officers on Friday for a third round of border talks. The UNC said it has accepted an invitation from the DPRK People's Army to meet at Panmunjom. The talks are expected to be a continuation of discussions on the June 15 naval confrontation in the Yellow Sea.

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3. DPRK Boats in the Yellow Sea

The Associated Press ("N. KOREAN BOATS ENTER DISPUTED AREA," Seoul, 06/30/99) reported that nine DPRK fishing boats sailed into the disputed area of the Yellow Sea on Wednesday, the first intrusion since the naval confrontation on June 15. DPRK fishing boats stayed in the disputed zone for about five and one-half hours before being chased out by ROK navy patrol boats. The DPRK's official Korean Central News Agency quoted a DPRK Navy Command as saying that the ROK is continuing military provocations by "illegally" infiltrating warships into the Yellow Sea. The Navy Command said, "Warships of the ROK army, which intruded deep into the territorial waters of the North, ... approached the North's fishing boats at work in the waters. ROK's actions create a touch-and-go situation in which another armed conflict may break out."

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4. Kim Dae-jung's Visit to US

Reuters ("SKOREA'S KIM TO DISCUSS NORTH POLICY WITH CLINTON," Seoul, 06/29/99) reported that, according to an ROK Presidential statement, ROK President Kim Dae-jung will discuss his engagement policy with the DPRK when he meets US President Bill Clinton on Friday. The statement said, "The visit will build up a firm basis for the consistent implementation of a policy towards North Korea based on a new paradigm." The statement also said that the Kim would confirm the security alliance between the ROK and the US.

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5. Japanese Contribution to Light-Water Reactor Project

The Associated Press ("JAPAN OKS NORTH KOREA REACTOR FUNDS," Tokyo, 06/30/99) reported that the Japanese Diet on Wednesday approved a US$1 billion contribution to help the DPRK build two nuclear reactors. The approval paves the way for the payment to the Korean Peninsula Energy Development Organization (KEDO) as early as July. Japanese Foreign Minister Masahiko Komura stated, "Despite the public's harsh view of North Korea, the Parliament understands that KEDO is the most realistic framework for preventing North Korea from developing nuclear arms."

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6. DPRK-Japan Trade

The Associated Press ("JAPANESE CO SPECIALIZING IN N. KOREAN TRADE GOES UNDER," Tokyo, 06/30/99) reported that, according to Teikoku Data Bank, a major Japanese company specializing in trade with the DPRK, Tokai Shoji, has collapsed with liabilities of 6.7 billion yen. Teikoku said that the bankruptcy was caused by a drop in demand for DPRK goods and the DPRK's ban on rice straw exports that began last year. Tokai Shoji, set up in 1961 and capitalized at Y310 million, had been one of Japan's biggest traders with the DPRK. Imports from the DPRK included rice straw, zinc, and smokeless coal, while vehicles, vehicle parts, steel products, and medical equipment were exported from Japan.

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7. DPRK Famine

Agence France-Presse ("NORTH KOREA CLAIMS CROP DAMAGE CAUSED BY DROUGHT," Seoul, 06/29/99) reported that the DPRK's official Korean Central News Agency (KCNA) said on Tuesday that a month-long drought has caused serious water shortages and hit crops in nearly all areas of the country. KCNA said that the dry spell required "practical measures" in different domains of the DPRK's economy, including agriculture, to prevent damage. KCNA stated, "The serious water shortage in different areas makes it difficult to water paddies in turn. The temperature of water in rice fields goes beyond 40 degrees (Celsius) and the tall rice plants fresh from the rice seedling beds are withering. In particular, nearly all aftercrop maize seedlings and seeds are perishing." KCNA also said that DPRK leader Kim Jong-il visited cooperative farms in the eastern province of Kangwon and expressed "great satisfaction" at good crops in newly rezoned paddy fields. Kim described agriculture as "the most important front in solving the food, clothing and housing problems of the people." He also demanded the whole country should concentrate "all efforts on the farming to bring about a bumper harvest this year without fail."

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8. Economic Effects of Korean Peninsula Tensions

Duff & Phelps Credit Rating Company ("DCR COMMENTS ON TENSIONS ON KOREAN PENINSULA," Hong Kong, 06/29/99) issued a press release expressing concern about the potential future rating implications of heightened tensions on the Korean peninsula. Roger Scher, DCR's head of Asian sovereigns, stated, "DCR has always factored North Korea into South Korea's ratings and we are encouraged that the parties have returned to the negotiating table. However, open hostilities increase the risk that a sudden political or military event could occur, which could negatively impact South Korea's ratings." Scher likewise noted that the ROK's credit ratings could improve significantly over the medium term only if any reunification process is gradual, spreading the costs to the ROK economy over many years.

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9. Bombing of PRC Embassy

The Washington Times (Bill Gertz, "CHINA WAS OFFERED COMPENSATION FOR EMBASSY BOMBING," Washington, 06/30/99, 3) reported that, according to Stanley Roth, US assistant secretary of state for Asian Pacific affairs, it is now up to the PRC to accept US apologies for the embassy bombing and seek better ties. Roth stated, "The apology phase is long since over. I don't think there's any more, really, that could be said on this score. China really must recognize that this is the only explanation that it's going to get." [Ed. note: This article was included in the US Department of Defense's Early Bird news service for June 30.]

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10. PRC Ascension to WTO

Reuters ("CHINA SAYS SINO-US TALKS ON WTO UP TO US," Auckland, 06/29/99) reported that PRC Vice Minister for Foreign Trade Long Yongtu said on Wednesday that the PRC-US talks on the PRC's bid to join the World Trade Organization (WTO) had been delayed because of politics. Long said that there was no timetable set out to resume the talks and stated, "We are still waiting for a convincing explanation from Washington about the bombing of our Yugoslavia embassy." Long emphasized that the PRC's WTO application process had not stopped and that talks continued with other WTO members, including Japan, Australia and New Zealand. Long said, "China has expressed its willingness to abide by the rules of the WTO and a willingness to open its markets. The conditions were already ripe long ago. It's very unfair that today China is still not a member of the WTO." Long also reiterated the PRC position that it should enter the WTO before Taiwan. Long said the order of entry was set by the WTO's predecessor, the General Agreement on Tariffs and Trade, in a 1992 agreement that the trade body would complete the PRC's entry process before examining Taiwan's bid. Long said, "If any WTO member ... disregards this decision, then China has to stop everything to block Taiwan's entry into the WTO. That will create a tremendous ... political fight in Geneva. I hope it will not happen."

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11. US Missile Defense System

The Associated Press (Tom Raum, "GOP TRIES TO DENY CLINTON CREDIT," Washington, 06/29/99) and Reuters ("CONGRESSIONAL REPUBLICANS TOUT MISSILE DEFENSE PLAN," Washington, 06/29/99) reported that US Republican congressional leaders sent US President Clinton a bill on Tuesday making it national policy to deploy a missile defense shield as soon as technology permits. House of Representatives Speaker Dennis Hastert of Illinois stated, "America must stand ready to defend itself and the bill would usher in a new era of American security." US Senate Majority Leader Trent Lott of Mississippi said the lack of a national missile defense shield was "our Achilles heel." US President Clinton is expected to sign the bill.

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12. Kashmir Conflict

The Associated Press ("PAKISTAN ENVOY SEEKS RUSSIAN MEDIATION IN KASHMIR DISPUTE," Moscow, 06/30/99) reported that, according to Russia's Interfax news agency, Khurshid Kasuri, a legislator with the ruling Pakistan Muslim League, invited Russian leaders to mediate between Pakistan and India in the dispute over Kashmir.

The Associated Press ("PAKISTAN WOULD USE NUCLEAR WEAPONS IF THREATENED," Islamabad, 06/30/99) reported that, according to Pakistan's News Network International, Pakistan's Religious Affairs Minister Zafar-ul Haq warned on Wednesday that Pakistan would use nuclear weapons if a full-scale war broke out. Haq told the Pakistani Upper House of Parliament that "nuclear weapons were not meant to be kept on the shelf if the security of the motherland was threatened."

Reuters ("U.S. HESITANT ON KASHMIR," New Delhi, 06/30/99) reported that, according to an unnamed US official, the US is unwilling to mediate in the Kashmir confrontation and sees no easy way of influencing Pakistan to ensure that infiltrators pull back from Indian territory. The official said, "I think there is a concern about how to contribute to achieving a constructive outcome. Our policy is clear we don't believe that mediation works where both parties don't seek it actively." [Ed. note: This article was included in the US Department of Defense's Early Bird news service for June 30.]

II. Republic of Korea

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1. DPRK-ROK Talks

The Korea Herald ("SEOUL TO BE 'AGGRESSIVE' IN TALKS WITH PYONGYANG," Seoul, 06/30/99) reported that ROK Vice Unification Minister Yang Young-shik, who is leading a three-member ROK delegation, said on Tuesday that the ROK will aggressively push for progress in reuniting separated families during the second round of talks with the DPRK in Beijing on July 1. Yang added, "This time, we will be decisive. We are determined not to let the forthcoming talks drift along again." He expressed hope that the DPRK would agree to discuss family reunions this time. "I anticipate the North will make comments on the matter as Pyongyang has vowed to faithfully implement our earlier agreement to discuss the reunion issue first." Yang's optimism on the fate of the talks is based on the DPRK's need for another 100,000 tons of fertilizer aid. He also said that "During the Saturday talks, we got the impression that the North was trying to find out whether or not the Seoul government's decision was a mere gesture to threaten Pyongyang." He added that the DPRK delegation is expected to put forth its proposals in connection with reuniting families, given that July is the deadline for the use of fertilizer in the DPRK. The ROK has specifically wanted the DPRK to allow an estimated 10 million members of separated families to exchange letters, confirm whether their relatives are still alive, and reunite.

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2. Detained ROK Tourist

The Korea Herald (Shin Yong-bae, "N.K. FORCED TOURIST TO SIGN FALSE STATEMENT ON SPYING," Seoul, 06/30/99) and The Korea Times (Son Key-young, "DETAINED TOURIST ADMITS MAKING 'SLIP OF THE TONGUE'," Seoul, 06/29/99) reported that ROK investigators said on Tuesday that the DPRK distorted the remarks of an ROK housewife who it detained last week. They stated in a report on the probe into the incident that "We came to the conclusion that the North had twisted her remarks into a spying act aimed at enticing a North Korean into defecting." She was arrested by the DPRK officials during a tour of Mt. Kumgang June 20 after telling a DPRK nature warden that she wished the ROK and the DPRK would be reunified soon and that he would come to live in the ROK. Min also told him that two DPRK defectors became TV celebrities and were living well, according to the report released by the joint investigation team. During the interrogation, the DPRK forced her to copy an apology authored by the DPRK authorities which said she admitted to having lured the DPRK guide to defect. He added that she was also made to thank DPRK Kim Jong-il, for releasing her despite violating the DPRK's laws. The report further stated that "Min has also confirmed that she had to submit the written apology under threats from North Korean authorities."

III. People's Republic of China

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1. DPRK-ROK Talks

People's Daily (Xu Baokang, "DPRK, ROK CONTINUE VICE-MINISTERIAL TALKS," 6/28/99, A4) reported that DPRK and ROK vice ministers continued their talks on the morning of June 26. It was reported that during the talks, a DPRK delegate expressed that the DPRK side will positively implement the agreement on the reunion of separated family members, which was reached during the two sides' unofficial contact in Beijing on June 3. An ROK delegate put forward a concrete proposal on resolving the problem of the reunion of separated family members. The two sides decided that they will meet again in Beijing on July 1. The atmosphere of the June 26 talks was friendly, the report said. The head of the DPRK delegation, Park Young-soo, said that the talks should bear fruits, which is very important. "It is our common aspirations to resolve problems through talks and that is the purpose for the DPRK delegate to attend the talks," Park said. ROK chief negotiator Yang Yong-shik said, according to the report, that the woman tourist detained by the DPRK had gone back to the ROK safely. [Ed. note: Please compare to "ROK-DPRK Talks" in the US Section of the Daily Report for June 28.]

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2. PRC-US Relations

China Daily (Zhao Huanxin, "MILOSEVIC NOT SEEKING ASYLUM," 6/30/99, A1) reported that the PRC has categorically denied reports that Yugoslav President Slobodan Milosevic had sought political asylum from the PRC and that two of the three Chinese journalists killed in Belgrade in NATO's bombing were "espionage agents." PRC Foreign Ministry spokeswoman Zhang Qiyue made the comments during a regular news briefing on June 29. Zhang said that the US should take all the responsibility for the current difficulties in Sino-US relations. Only when the US has met the PRC's demands and taken concrete steps will Sino-US relations return to the normal track, she added. Commenting on the Memorandum of Understanding between the US and Japan on the development of the Theater Missile Defense (TMD) system, Zhang said that the PRC has time and again voiced its position on the TMD. "China holds that the US- Japan action goes against the general trend of a relaxed situation existing in the region since the Cold War end," she said. The TMD issue might impair the balance of regional security and trigger a new round of the arms race, she added. Commenting on a US Senate bill to tighten control on exports of "sensitive US technology" to Hong Kong, Zhang said that it was unreasonable to tighten the exports to the region through legislation. "It is totally groundless for the US Congress to allege that the sensitive science and technological products may be transferred to the Chinese mainland from Hong Kong," Zhang said. The Hong Kong Special Administrative Region Government can boast a good record of always imposing strict supervision and effective control on the import and export of strategic goods, she said. The PRC asked the US Congress to stop immediately such actions, which are detrimental to the prosperity and stability of Hong Kong, she said.

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3. Across-Taiwan Straits Relations

People's Daily (Fan Liqing and Liu Shizhong, "ARATS, SEF EXCHANGE VIEWS," Beijing, 6/29/99, A4) reported that Li Yafei, deputy secretary-general of the Beijing-based Association for Relations Across the Taiwan Straits (ARATS) exchanged views with his counterpart from the Taipei-based Straits Exchange Foundation (SEF) Jan Jyh- horng in Beijing on June 28. During the discussion, the report said, the two sides agreed in principle that ARATS President Wang Daohan will visit Taiwan for seven days by starting the trip in Taipei and concluding it in Kaohsiung. During the visit, ARATS suggested that Wang hold two separate meetings with SEF Chairman Koo Chen-fu. One meeting would be formal talks and the other would be a small-scale discussion. Li Yafei said that ARATS believes that Wang's visit to Taiwan is the continuation and deepening of high-level dialogues between ARATS and SEF, including political and economic dialogues. During the meeting, ARATS reiterated and explained its two concrete suggestions. One is that ARATS and SEF jointly hold a forum on cross-Straits issues, and the other is that the two bodies exchange views on removing political obstacles in the negotiations of routine matters. Li Yafei noted the basis for the ARATS-SEF contact is dialogue and any views can be exchanged during dialogues, including political and economic issues, as well as issues of concern to the Taiwan authorities. SEF and ARATS agreed to strengthen the exchange of visits between the two sides.

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4. Sharif's Visit to China

People's Daily ("JIANG ZEMIN MEETS WITH SHARIF," Ma Xiaoning, Beijing, 6/30/99, A1) reported when meeting visiting Pakistan Prime Minister Nawaz Sharif in Beijing on June 29, PRC President Jiang Zemin said that as a close neighbor of South Asia, the PRC is very much concerned about the Kashmir conflict. The PRC sincerely hopes that Pakistan and India, out of the fundamental interests of both peoples, will ease tensions between them at an early date, and resolve their disputes through negotiations, Jiang said. Jiang spoke highly of Sino-Pakistani relations. He said that the PRC attaches great importance to developing comprehensive cooperative partnerships with Pakistan, for it is in the fundamental interests of both peoples and conducive to peace and stability in Asia as well as the world. Sharif thanked Jiang for meeting with him, and praised the PRC's stance in upholding justice and in adhering to its principles in international affairs, as well as its opposition to any construction of a monopolar world. He expressed hope that the PRC will continue to play an active role in international and regional affairs.

China Daily ("ZHU: DIALOGUE A MUST FOR PEACE," Shao Zongwei, 6/29/99, A1) reported that PRC Premier Zhu Rongji told Pakistan Prime Minister Nawaz Sharif on June 28 that the PRC sincerely hopes that Pakistan and India will alleviate tensions in Kashmir through talks and return stability to the region soon. The Kashmir issue is a historical issue involving territorial, ethnic, and religious elements, Zhu said. It can thus be solved only through peaceful means, a PRC Foreign Ministry spokesman quoted him as saying. Sharif, expressing his willingness to resolve disputes through peace talks, asked the international community to make active contributions to this end. Zhu termed the two neighboring countries as "all-weather friends," saying that the friendship is rooted deeply in the two peoples. It is of special importance to further strengthen friendly and cooperative bilateral relations at a time when profound changes are taking place in the world, Zhu said. Attaching great importance to its relations with the PRC, Pakistan has always regarded such ties as a cornerstone of its foreign policies, a PRC Foreign Ministry spokesman quoted Sharif as saying.

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5. PLA Construction

People's Liberation Army Daily (Luo Yuwen and Huang Huamin, "USE SCIENCE TO CONSTRUCT MODERN ARMY," Beijing, 6/28/99, A1) reported that PRC President Jiang Zemin told delegates at the 14th Meeting of the People's Liberation Army's (PLA) Institutions of Higher Learning that the armed forces should develop a large contingent of skilled technological personnel loyal to the Communist Party of China (CPC) and the people. Jiang said that the world is experiencing rapid changes in science and technology while the military is undergoing a profound transformation. Information will be the greatest factor in fighting ability in the battlefields of the future and this contest will be one of high-caliber personnel, Jiang said. In the face of new military developments in the world, Jiang said, an effort needs to be made to strengthen defense and the military's ability to cope with high-tech regional wars. He emphasized that priority should be given to ideological and political development. Efforts should be made to arm the students with Marxism, Leninism, Mao Zedong Thought, and Deng Xiaoping Theory to help them develop a correct view of the world, of life and of values, and to enhance their sense of mission and responsibility and of devoting themselves to national defense and military development.

IV. Latest NATO Nuclear Flash

The following is the table of contents for the latest NATO Nuclear Flash.

1. More Reports on Russian Military Exercises in Wake of Kosovo Conflict.
2. Holum Outlines Arms Control Concerns Before Senate Panel.
3. China Says U.S. Wants To Become 'Lord Of Earth'.
4. Duma Approves Funding For Nuclear Forces.
5. Pentagon Outlines Expected Russian Nuclear Cuts Under Extended Program
6. Indian Newspaper Reports Chinese "Nuclear-Related" Test.
7. Nuclear Weapons at US Bases During Kosovo War.
8. Duma Deputy Writes on Navy Role in Russia's Strategic Concept.
9. Chinese Commandant Writes About Effects of Kosovo on Global Security.

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Lee Dong-young:
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Hiroyasu Akutsu:
Tokyo, Japan

Peter Razvin:
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Chunsi Wu:
Shanghai, People's Republic of China

Dingli Shen:
Shanghai, People's Republic of China

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