NORTHEAST ASIA PEACE AND SECURITY NETWORK ***** SPECIAL REPORT ***** March 26, 1999 The following is the complete text of the ROK Ministry of Unification's Report on the "sunshine policy" debate, issued on March 24, 1999. ----------------------------------------------- Policy Report on Reform of State Affairs Report on Important Tasks in North-South Reconciliation and Cooperation 24 March 1999 The Unification Ministry Contents 1. Direction of Work 2. The Present Status 3. Job Plans for This Year A. Measures for Pressing Tasks B. Middle Part of the Year: Actively Creating Atmosphere for North- South Reconciliation and Cooperation C. Latter Half of the Year: Causing a Breakthrough in North-South Dialogue 1. Direction of Work The policy on the North for 1999 will emphasize the "the three principles of security policy" that were presented by the president during the 4 January national security council meeting. 1) Promote peace and security on the Korean peninsula. 2) Continuously pursue North-South reconciliation and cooperation. 3) Strengthen international support and cooperation on security and policies on the North. Intensify efforts to establish North-South reconciliation and cooperative relations while adhering to the consistency of the engagement policy. - Increase assistance to the North and exchanges and cooperation so that "more contacts, more dialogue, and more cooperation" can be realized between the residents of the North and the South. - Build the framework to establish trust between the North and the South and resolve pending issues by causing a breakthrough in dialogue between the pertinent North-South authorities. - Exert efforts to solve the problem of separated families, which is the most pending issue of interest to the people. - Provide a basis to change the North-South confrontational structure into a cooperative, dependent relations while increasing North Korea's practical changes. In accordance with the above position, the Unification Ministry will create an atmosphere to improve North-South relations through a "continuous pursuit to assist the North," "activating North-South exchanges and cooperation," and selecting and promoting the issue of "causing a breakthrough in North-South dialogue" as the main tasks. 2. The Present Status It is estimated that North Korea's food shortage will continue this year (volume of food shortage: 1.6 million tons) and thus it is necessary to receive help from the outside. - It is desirable for us to provide assistance to resolve North Korea's food crisis from a humanitarian level, with brotherly love, and from the position of promoting security on the Korean peninsula. - However, since the urgency of the food issue has somewhat eased due to the security of assistance from the international community, such as the United States, it is necessary to exert strength in providing agricultural materials to increase agricultural productivity. Since the Mt. Kumgang tourist project stable this year, the number of people visiting the North in the economic, social, and cultural sectors will continue to increase. - Number of tourists to Mt. Kumgang: 42,000 (18 November 1998 to the present time) Number of people who visited the North: 490 (as of 20 March) - However there still exists bottlenecks in expanding economic cooperation, such as insufficient agreements between the North and the South and the expenses for materials and the funds of businesses. The possibility for North-South dialogue has increased since the North proposed to hold political talks between high-ranking officials of the North and South on 3 February and the settling of US-DPRK negotiations over the Kumch'ang-ri underground facility. - The North has not yet indicated a concrete response on holding North- South dialogue but it is believed that the North intends to hold North- South dialogues. - It is believed that the practical attitude shown in US-DPRK negotiations will also be applied to North-South relations. 3. Job Plans for This Year Structure of Job Plan First stage: Take measures regarding pending tasks -- assist the North and prepare the work to begin full-scale construction of the light-water reactor. Second stage: Establish an atmosphere for North-South reconciliation and cooperation (middle part of the year) -- work to solve the problems of starting economic cooperation and the issue of separated families. Third stage: Cause a breakthrough in North-South dialogue (latter half of the year) -- realize dialogue between the authorities concerned. As such, this will form a situation of North-South reconciliation and cooperation and enter into the implementation stage of the North-South Agreed Framework A. Measures on Pressing Tasks (1) Promote the plan for fertilizer assistance to the North through the Korean National Red Cross Society [KNRC]. Participate in the plan for fertilizer assistance to the North through the KNRC from the government level (announced on 11 March). - It was decided to assist the KNRC by purchasing 50,000 tons of fertilizer and providing transportation expenses (18 billion won) from the North-South Cooperation Fund (19 March, North-South Exchange and Cooperation Promotion Council). Take necessary administrative measures to smoothly promote the KNRC plan to provide fertilizer to the North. - Assist the fertilizer fundraising drive (15 March-16 June) -- Appeal to the people, social and religious organizations, businesses, government, and government-invested organizations to participate. Conduct activities in the fertilizer fundraising drive with assistance from the media, the broadcast Audio Response System (ARS), and various events. - Provide assistance in securing materials, transportation, and manpower Measures should be taken so that fertilizer can be delivered before the sowing period. - The first shipment of 50,000 tons will be delivered by mid-May and the second and remaining shipments will be delivered by June. * First shipment of 50,000 tons is scheduled to depart at the end of March (Yosu- Namp'o). (2) Measures to vitalize support for the North from the private sector. Diversify private channels, such as allowing exclusive aid from religious and social organizations that have a stable dialogue channel and expertise with North Korea (implemented since 10 February). - Five organizations, including the present union for supporting North Korean compatriots, opened separate channels. * The number of organizations is expected to increase to around 20 by the end of 1999. Form a consultative body of private organizations that support the North and assist private-level support to the North to promote it effectively. - Exchange information, specialization of organizations, jointly purchase and deliver aid goods, etc. Stimulate support for the North by using cooperative business such as the operation of noodle plants and joint farms. * Presently, seven noodle plants, one milk cow farm, and one plant making nutritious food for children are in operation. (3) Prepare the ground to fully promote the lightwater reactor project. Secure measures to supply financial resources for the ROK's portion of the lightwater reactor construction fee. - Revise the "law on South-North cooperation funds" measure to levy dues on electricity as discussed at the 8 January party policy meeting. - Simultaneously present and process the "revision of the law on South- North cooperative fund" and the "National Assembly approval of the credit extending treaty." (4) Measures to stimulate economic exchange through South-North cooperative fund support. Promote economic cooperation and process on commission, such as transferring unused facilities. - Promote loans to small- and medium- sized companies in financial difficulties. * "Guidelines for South-North cooperative fund" established to set criteria on providing this fund. B. Middle Part of the Year: Actively Create an Atmosphere for North- South Reconciliation and Cooperation (1) Government-level aid to the North: Participation in the UN's fifth aid plan (U$274.75 million). - Determine the scale of aid after considering the world community's trends and the domestic economy. - Participate based on health, medical care, and agricultural restoration. Promote large-scale direct support through South-North dialogue under a national agreement. - Support agricultural development while newly applying reciprocity. (2) Stabilize the Mt. Kumgang tour and development projects. Build stability between the South and North via full operation and stable promotion of the Mt. Kumgang tour project. - Promote the early settlement of unsolved tasks such as detailed rules for the tour. Fully operate the tour industry, including infrastructure construction like a pier for the cruise ship, a hot spa, etc; expanding the tour area and diversify the tour packages; and invite foreign tourists. - More than 200,000 tourists expected in 1999 with the introduction of additional cruise ship (in May). Promote development projects gradually in consideration of environmental problems. (3) Create an environment to stimulate economic cooperation with North Korea. Improve the turnaround system by supporting facilities at North Korean harbors. - Negotiate a reduction of the [cruise] ship's stop period and secure a designated position for the ship. - Reduce the turnaround fee between Inch'on and Namp'o. * Presently, around $1,000 for one 20 foot tall container (2.5 times greater than the $400 between Pusan and Dalian) Open a sea-land link road between Sokch'o, Najin, and Hunch'un, promoting it using a private economic cooperation method. - Operate a 10,000 ton car ferry two to three times a week if this succeeds. Negotiate the issue of forming an industrial complex on the West Coast and fully support it. - Negotiate the basic plan to develop a complex (1 million p'yong) [3.954 million square yards] with the North. (4) Initiate projects on agricultural and fishing cooperation. Continue plans to promote agricultural cooperation at a civilian level to resolve the North Korean food problem. - The International Corn Foundation plans to expand its cultivation test area up to 1,000 areas. (83 areas in 1998). - The Korea Tobacco and Ginseng Corporation plans to manage a [cultivation] test area and contract for the cultivation of leaf tobacco (ranging from 3 hectares and up to 1,000 tons). Promote cooperative fishing projects that use idle domestic equipment such as fishing boats that have ceased to operate. - Plans for North Korea to supply fishing grounds and manpower while processing and exporting [overseas] the fish caught or bring these fish into Korea. - Promote joint fishing in fishing grounds that North Korea secured overseas. (5) Actively promote projects related to sports, culture, and art. If Hyundai's plan to construct the P'yongyang Indoor Gymnasium is realized, hold a cordial sports match to commemorate the occasion. - First, exchange sports games that are negotiable with the North like basketball. Promote test cooperation projects, such as restoring temples and churches in the Mt. Kumgang area. Promote projects to exchange and hold cultural and art events between the North and South, such as exchanging and holding cordial North-South concerts and inviting North Korean cultural and art groups. * Plan to actively find and then run tests on projects that have the highest possibility of being realized. (6) Promote projects to resolve the separated families problem. Maintain the Red Cross channel of deliberation and create an atmosphere to hold Red Cross talks by constantly pushing projects on North Korean aid. Resolve the separated families problem before other matters by holding Red Cross talks - While promoting the project to establish a meeting office for separated families, plan to focus on realizing the project to confirm the whereabouts of and correspondence exchange between separated families. Resolve the matters of returning prisoners of war, those kidnapped by the North, and North Korean spies dispatched to South Korea, who were released from prison, through dialogue with the view to comprehensively solve the separate families problem. Actively assist the exchange of separated families at a civilian level in a third country. C. Latter Half of the Year: Cause a Breakthrough in North-South Dialogue (1) Focus on promoting the project to establish a channel for dialogue between the North and South Korean authorities Find countermeasures to breakthrough pending problems related to North- South relations by providing a working-level channel for contact. - Promote this project regardless of its form, whether open or closed. (2) Actively use the high-level North-South political talks that were proposed by the North. Related to the matter of holding high-level North-South political talks: - Investigate North Korea's true motive from many sides while considering the situation of fertilizer supply and the general atmosphere of North-South relations. Conduct high-level North-South political talks as part of countermeasures to normalize the bilateral talks system. - Deliberate the matters that both sides presented with no limitations and in a comprehensive way. - Create an atmosphere of reconciliation between the North and South authorities. (3) Endeavor to restore the system implementing the North-South Basic Agreement. Develop and induce dialogue between the North and South Korean authorities as an organ to exchange special envoys and as a standing minister-and-vice minister-level dialogue organ. - Promote projects to resolve the urgent and pending matters between the North and South. - Deliberate various matters to improve North-South relations, including implementing the North-South Basic Agreement. Agree upon operating an organ to implement the North-South Basic Agreement. - Establish an operating system for the five joint committees in each field. Prepare for full-scale deliberation on matters like reconciliation, establishing military trust, and systematizing exchanges and cooperation. (4) Support parliamentary talks. Actively cooperate in realizing this project when there is a request from the ROK National Assembly, while considering the normalization of North Korea's Supreme People's Assembly. (5) Actively use contacts and dialogues at a civilian level Mediate and support deliberations between sports and economic groups in the North and South, start exchanges in sports and economics. - Hold cordial exchanges and sports matches between the North and South, including basketball, soccer, and table tennis. In addition, deliberate the matter of jointly participating in international sports games. - Support projects to establish a cooperative system between leading civilian economic cooperation-related organizations in the North and South. Approach all these projects with the flexibility to place the priority on civilian-level contacts while not adhering to authority-level talks.