In today’s Report:
2. Cargill-DPRK Grain Deal
3. DPRK Famine Situation
4. US-PRC Supercomputer Deal
2. DPRK Denounces Japanese Peace Talk Interference
3. ROK, US Reaffirm Aid Views
4. POW Repatriation
5. Russia Encourages Peace on Korean Peninsula
6. ROK Red Cross Leaves for DPRK
7. KEDO-DPRK Direct Communications Agreement
8. ROK Student Activism
2. RF Strategic Air Forces In Crisis
3. RF Armed Forces Financial Plight
4. RF-PRC Discuss Iraq, Afghanistan
5. PRC-Belarus Armaments Links
6. RF First Deputy Premier Visits Japan
7. RF-Mongolia Military Cooperation
8. DPRK-ROK Naval Gunfight
9. ROK Domestic Turmoil
I. United States
The Associated Press (Robert Reid, “U.S., NORTH KOREA IN MISSILE TALKS,” New York, 6/11/97) and United Press International (“US, NORTH KOREA MEET ON MISSILES,” New York, 6/11/97) reported that the US and DPRK are began three-day talks aimed at halting DPRK production of Rodong I missiles. These ballistic missiles may be capable of hitting Japan and the ROK. In addition, the talks will cover concerns that the DPRK has sold long-range Scud missiles to Iran and Syria. Robert Einhorn is leading the US delegation and Li Hyun-chul, director of the DPRK Foreign Ministry, is heading the DPRK delegation.
Reuters (“CARGILL DEAL FAILS ON N. KOREA ZINC SALE TO SEOUL,” Seoul, 6/11/97) reported that metal traders in Seoul purchased approximately 4,500 tons of zinc from the DPRK in the weeks prior to the DPRK’s cancellation of its US$4 million “grain for zinc” deal with Cargill, Inc. According to traders in Seoul, the price for zinc on the London Metal Exchange recently rose to $1,360 per ton, compared with prices of about $1,260 per ton in early April when the Cargill deal was reached. The DPRK was to exchange 4,000 tons of zinc for 20,000 tons of wheat from Cargill, but canceled the deal last week. Some reports suggested that the DPRK canceled the deal because it could not supply the agreed quantity of metal.
The Los Angeles Times (Teresa Watanabe, Hyungwon Kang, “IN N. KOREA, RESILIENCE IN THE FACE OF FAMINE,” Unpa County, DPRK, 6/8/97) provided a first-hand account of the food situation in the DPRK following a visi