NAPSNet Daily Report Monday, October 03, 2005

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NAPSNet Daily Report Monday, October 03, 2005

NAPSNet Daily Report Monday, October 03, 2005

1. IAEA Resolution
2. ROK on KEDO Project
3. ROK, PRC on DPRK Nuclear Program
4. DPRK, ROK Economic Projections
5. Inter-Korean Economic Cooperation
6. Hyundai Probe
7. Inter-Korean Cooperation on Humanitarian Issues
8. DPRK Threats on ROK Activist
9. ROK Aid to DPRK
10. DPRK Food Rationing
11. DPRK Annual Harvest
12. DPRK Human Rights
13. DPRK-USFK Military Inspections
14. DPRK-Japanese Relations
15. USFK Troop Cut
16. US-ROK Military Alliance
17. Japan on UN Contribution
18. Yasukuni Shrine Issue
19. Sino-Japanese East Sea Gas Dipute
20. Taiwan Leadership
21. Cross Strait Relations
22. PRC Unrest
23. PRC Income Disparity
24. PRC Media Control
25. PRC Anti-Graft Measures
26. PRC Energy Shortages
27. SARS Virus
28. Russian Pipeline and Ecology

Preceding NAPSNet Report


1. IAEA Resolution

Joongang Ilbo (“U.S., CHINA AT ODDS OVER AID TO NORTH”, 2005-10-01) reported that Washington tacitly acknowledged on Thursday that it had some differences of opinion with the PRC and some other participants in the six party talks during a meeting of the IAEA in Vienna. Reports from Vienna said Beijing, on behalf of the DPRK, wanted any statement from the group to include a reference to the nuclear reactor and other commitments to aid the DPRK in exchange for its renunciation of nuclear weapons. Washington reportedly wanted to minimize references to those linkages.

(return to top) The Associated Press (“U.S. NUKE VIEWS ON N. KOREA UPHELD BY U.N”, 2005-10-01) reported that the IAEA took the DPRK to task Friday for breaching the nuclear arms control treaty, but welcomed its pledge to give up atomic weapons in a resolution that highlights US priorities for future talks with Pyongyang. The PRC refrained from co-sponsoring the document in a reflection of its displeasure with a text focusing on Washington’s priorities. Russia also did not co-sponsor the text, showing that it, too, was unhappy with the outcome. An unnamed diplomat said the text tried to balance US concerns that the DPRK commit to honoring the nuclear arms control treaty and less specific PRC-requested language focusing on rewards to Pyongyang. (return to top)

2. ROK on KEDO Project

Reuters (“NEW START NEEDED FOR N. KOREA REACTORS, SOUTH SAYS”, 2005-10-02) reported that, according to ROK Foreign Minister Ban Ki-moon, the stalled KEDO reactor project in Sinpo should be scrapped in order to distinguish it from any new deal to provide nuclear plants to Pyongyang under the six party joint statement adopted last month. Asked whether the existing Sinpo site could be used for a new deal on light-water reactors rather than waste the work already done, Ban said: “That’s one of the possibilities, but I can’t say anything at this point.” Ban also added, “As far as Korea is concerned, even though we made an agreement for the termination of the KEDO project, I think KEDO as an entity should exist at least for a certain period of time, for example, say two years.”

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3. ROK, PRC on DPRK Nuclear Program

Chosun Ilbo (“S. KOREA AND CHINA AGREE TO COOPERATE ON N.K. NUCLEAR DISMANTLEMENT”, 2005-10-01) reported that ROK Foreign Minister Ban Ki-moon and PRC ambassador Ning Fukui met for talks about nuclear issues on the Korean peninsula. Ban reportedly asked for Beijing’s active cooperation in persuading the DPRK to heed calls for a complete disbandment of its nuclear weapons arsenal prior to making demands for compensations. Ambassador Ning Fukui is said to have agreed to the request, highlighting the importance of a nuclear-free peninsula.

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4. DPRK, ROK Economic Projections

Yonhap News (“SUCCESSFUL NUKE TALKS TO BRING HUGE ECONOMIC BENEFIT: REPORT”, 2005-09-30) reported that the ROK is expected to enjoy an economic benefit of up to 120 trillion won (US$115.7 billion) if multilateral talks aimed at resolving the DPRK’s nuclear crisis produce a successful outcome, a local think tank said on Friday. The successful conclusion of six party talks would also result in a 53-58 trillion won economic benefit for the DPRK, the Hyundai Research Institute said in a report.

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5. Inter-Korean Economic Cooperation

The Korea Herald (“N.K. GAINS $439M WINDFALL FROM TOURS”, 2005-10-03) reported that Hyundai Group has paid approximately $439 million to Pyongyang for its cross-border tourism programs to Mount Geumgang since it launched travel there in 1999. Payments by Hyundai Asan Corporation, the group subsidiary that is the dominant operator of tour programs to the DPRK, include $260 million in 1999 and $136 million in 2000, according to the data released by the Unification Ministry for the annual parliamentary audit.

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6. Hyundai Probe

Chosun Ilbo (“OUSTED HYUNDAI ASAN CHIEF ‘MAY HAVE STOLEN GOV’T FUNDS’”, 2005-10-02) reported that the government is investigating suspicions that the ousted Hyundai Asan vice chairman Kim Yoon-kyu embezzled money from the Inter-Korean Cooperation Fund. The Unification Ministry said on Sunday that it asked the Hyundai Group to submit documents to support the allegation. The government will thoroughly investigate the matter and decide what it needs to do, said the ministry.

(return to top) The Korea Herald (“FORMER HYUNDAI ASAN CHIEF FACES PROBE OVER EMBEZZLEMENT”, 2005-10-01) reported that the state audit agency has launched an investigation after Hyundai Group alleged that Hyundai Asan President Kim Yoon-kyu embezzled at least 1 billion won of company funds. Hyundai Group said on Friday that Kim misappropriated about 1.12 billion won of the company funds for personal use and engaged in inappropriate deals. The Group denied reports, however, that a large portion of Kim’s embezzled wealth came from the state-run Inter-Korean Cooperation Fund, explaining that Kim would not have had access to the government funds which were used through a different account. (return to top) Donga Ilbo (“HYUNDAI CHAIRWOMAN WILL ACCEPT NORTH-SOUTH COOPERATION FUND INVESTIGATION”, 2005-10-03) reported that Hyundai Group Chairwoman Hyun Jeong-eun expressed her willingness to accept an investigation, either from the Board of Audit and Inspection, or from the prosecution, regarding Hyundai Asan vice-chairman Kim Yoon-kyu’s alleged misappropriation of ROK-DPRK cooperation funds. She believes this will make Hyundai Group’s business with the DPRK more transparent. (return to top)

7. Inter-Korean Cooperation on Humanitarian Issues

The Korea Times (“SPY’S BODY SENT BACK TO NK”, 2005-10-02) reported that the body of an unconverted DPRK spy was repatriated to the DPRK through the inter-Korean border village of Panmunjom on Sunday following an unprecedented decision by the ROK government. Chung Soon-taek, one of 29 former DPRK spies who served long prison terms in the ROK for refusing to disavow their communist beliefs, died on Friday in a Seoul hospital after months of battling pancreatic cancer. “This is the first case in which remains have been sent to the bereaved family across the inter-Korean border,” a Unification Ministry spokesman said. “We hope this will contribute to reconciling the South and North further and resolving humanitarian issues.”

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8. DPRK Threats on ROK Activist

Chosun Ilbo (“N. KOREA ‘THREATENING LIFE OF ABDUCTEE GROUP HEAD’”, 2005-10-03) reported that the National Intelligence Service (NIS) told the leader of a ROK activist group for relatives of people abducted by the DPRK that his life could be in danger from Pyongyang-sponsored attacks. Choi Sung-yong has had several warnings of a possible DPRK terrorist attack from the NIS, but last week’s warning was the most serious. An NIS official confirmed the agency had information that Choi’s safety was in danger and had warned him of the threat, but he said the NIS could not be responsible for Choi’s safety because he is a civilian; that was the job of the police or the Unification Ministry.

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9. ROK Aid to DPRK

International Herald Tribune (“WHY SEOUL HELPS THE NORTH”, 2005-09-30) reported that recent attempts to blame the ROK for the DPRK’s decision to discontinue UN food aid are misleading. Due to the fact that Seoul’s bilateral food assistance is for the general DPRK population, it has relatively limited leverage in securing transparency of distribution, compared to the WFP, where free food aid is provided strictly for socially vulnerable groups. Despite this, Seoul has been making efforts to prevent the diversion of food assistance to inappropriate sectors, and has increased the frequency of monitoring from only once in 2002 to 10 in 2004 and a forecasted 20 times in 2005. These figures may be barely passable according to WFP standards, but they represent a significant change for Seoul.

(return to top) Chosun Ilbo (“SEOUL’S AID TO N. KOREA COULD TOP W1 TRILLION”, 2005-10-02) reported that the ROK is likely to spend more than W1 trillion (US$1 billion) on aid to the DPRK this year. It promised the DPRK 500,000 tons of rice and 350,000 tons of fertilizer this year at a budget of W1.425 trillion. Meanwhile, some 36 civic organizations had sent the DPRK flour, medical supplies, and clothes worth W54.2 billion (US$54 million) through August this year. (return to top)

10. DPRK Food Rationing

Joongang Ilbo (“UN AGENCY: NORTH CEASES SALE OF CEREALS ON THE MARKET”, 2005-10-03) reported that the DPRK has stopped the sale of cereals on the market in an apparent move to strengthen its food rationing system, said a report published by the World Food Program. As of October 1, public distribution centers had taken over country-wide distribution of cereals, the agency said. The suspension of market trading seems to suggest the DPRK’s intention to curb cereal prices, which have soared since the introduction of a market-oriented system in 2002. The new policy of returning to a public food rationing system comes as DPRK authorities expect the country’s harvest to rise significantly this year, said the WFP.

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11. DPRK Annual Harvest

The Associated Press (“NORTH KOREANS HELPING WITH ANNUAL HARVEST”, 2005-09-30) reported that an average of 1.17 million DPR Koreans are being sent each day on trains around the country to help with the annual harvest that is expected to be sufficient this year. The Korean Central News Agency said on Friday that special trains are transporting officials, workers, and residents from Pyongyang to farms on the outskirts of the capital as well as to North Hwanghae province.

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12. DPRK Human Rights

Chosun Ilbo (“SEOUL FAILING TO FIND AN EAR ON N. KOREAN ABSTENTIONS”, 2005-09-30) reported that Seoul is failing to find international understanding for repeatedly abstaining from votes on a UN Human Rights Commission resolution condemning the DPRK’s human rights record, say ROK diplomats in the US. Their remarks are cited in a report by the National Human Rights Commission, which quotes the diplomats as saying the ROK was unable to persuade the international community that its abstention is based on the delicate character of inter-Korean relations. They say it would be better to try and explain the position by the logic of human rights.

(return to top) Chosun Ilbo (“DIPLOMATS URGED NHRC TO TAKE A STAND ON N. KOREA”, 2005-10-03) reported that during a June discussion with the National Human Rights Commission (NHRC), foreign diplomats in the ROK expressed their opinions on improving the DPRK’s human rights situation and the pitfalls of tackling the issue. A report on the discussion, which included some 30 diplomats from 10 countries, was submitted to Grand National Party lawmaker Joo Ho-young. The envoys largely agreed that both Seoul and the commission are not being assertive enough in the matter. Swedish envoy, Harald Sandberg, said that a lot of efforts were being made to address the DPRK’s human rights abuses, but warned that raising the issue with Pyongyang in the wrong circumstances could make the situation worse. Several ambassadors asked where the commission stands on DPRK human rights. The NHRC responded it had yet to formulate an official view. (return to top) Yonhap News (“N. KOREA WARNS U.S. NOT TO TAKE UP HUMAN RIGHTS ISSUE”, 2005-09-30) reported that the DPRK media warned the US not to criticize its human rights conditions, saying such moves are merely aimed at toppling its government. On Friday, state broadcaster Radio Pyongyang said that the US had better give up its bid to overthrow the DPRK regime and commit itself to mutual coexistence as promised under an accord struck in last week’s six party talks. (return to top)

13. DPRK-USFK Military Inspections

Donga Ilbo (“GOVERNMENT WILLING TO ACCEPT PYONGYANG’S MUTUAL INSPECTION REQUEST”, 2005-10-01) reported that the ROK and US would accept a DPRK request for mutual inspections between the two Koreas in the process of the DPRK dismantling its nuclear program. A ROK official said on Friday that “The subject of the inspection also includes the USFK’s (US Forces Korea) facilities,” and, “On top of that, some nuclear power plants and related research institutes might also be on the inspection list.” This mutual inspection would be the first inspection since the Korean War, meaning that Seoul, Pyongyang, and Washington would unveil their key military facilities to each other.

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14. DPRK-Japanese Relations

Yonhap News (“N. KOREA BLASTS JAPAN’S U.N. SECURITY COUNCIL BID AGAIN”, 2005-10-03) reported that the DPRK renewed its condemnation of Japan’s bid to secure a permanent seat at the UN Security Council on Monday, calling on the country to instead atone for its atrocities during World War II. The official Rodong Sinmun newspaper was quoted by the Korean Central News Agency as saying “Japan has gone the lengths of making such threatening and pressurizing remarks as blustering that it would reexamine its contribution to the U.N. as its efforts for permanent membership of the U.N. Security Council have gone bust this year.”

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15. USFK Troop Cut

Chosun Ilbo (“KOREAN TROOP CUTS TEMPT U.S.”, 2005-10-03) reported that the US Forces Korea are reportedly mulling additional troop cuts after Seoul announced it will trim its own forces down from 680,000 to 500,000 by the year 2020. “When the government announced its plans to cut 180,000 men from the armed forces, the USFK internally started to acknowledge the need for cuts as well,” a high-ranking government source said Monday.

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16. US-ROK Military Alliance

Joongang Ilbo (“ROH CALLS AGAIN FOR CONTROL OF TROOPS IN WAR”, 2005-10-03) reported that President Roh Moo-hyun has again emphasized his desire to regain wartime control over the ROK military. In a speech to commemorate Korea’s Armed Forces Day on Saturday, Mr. Roh said he wanted an end to one aspect of the US-Korean defense arrangements. The mutual defense agreement between the two nations gives the US general who heads the Combined Forces Command control over the ROK’s military in wartime. Mr. Roh has repeatedly said he wants a self-reliant defense for the ROK.

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17. Japan on UN Contribution

Agence France-Presse (“JAPAN SEEKS TO SLASH CONTRIBUTION TO UN BUDGET BY UP TO QUARTER “, 2005-10-03) reported that with its prospects for obtaining a permanent seat on the Security Council fading, Japan will seek to reduce its contribution to the United Nations by up to a quarter, a report said. Japan will propose an up to five percentage point cut in its contribution, currently 19.5 percent of the UN budget, when negotiations for countries’ portions of 2007-2009 funding start next March.

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18. Yasukuni Shrine Issue

The New York Times (“JAPANESE COURT RULES PREMIER’S VISITS TO WAR SHRINE ILLEGAL”, 2005-10-03) reported that a Japanese court on Friday handed a rare victory to opponents of Prime Minister Junichiro Koizumi’s visits to a war shrine, ruling that the visits violated Japan’s constitutional separation of religion and the state. Experts said the ruling by the Osaka High Court probably would not force the Japanese prime minister to stop visiting the Yasukuni Shrine, which honors Japan’s war dead, including those hanged for criminal conduct during World War II.

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19. Sino-Japanese East Sea Gas Dipute

Kyodo (“JAPAN, CHINA TO CONTINUE WITH GAS TALKS AT WORKING LEVEL”, 2005-10-03) reported that Japan will continue to hold talks with the PRC over PRC gas and oil exploration in East China Sea fields at a working level, a top Foreign Ministry official said Monday. “At the moment, there are still points that need to be further discussed at a working level,” Vice Foreign Minister Shotaro Yachi told a news conference.

(return to top) Reuters (“JAPAN UPSET OVER CHINESE WARSHIPS NEAR DISPUTED AREA “, 2005-10-03) reported that Japanese Trade Minister Shoichi Nakagawa criticized the PRC on Sunday for sending warships near disputed gas fields in the East China Sea, after a media report said a PRC ship had pointed a gun at a Japanese patrol plane. (return to top)

20. Taiwan Leadership

The Los Angeles Times (“A NEW FACE FOR TAIWANESE NATIONALISTS”, 2005-10-03) reported that Taiwan’s opposition Nationalist Party, labeled sclerotic, corrupt and a dinosaur, is showing signs of a pulse thanks to new Chairman Ma Ying-jeou. The charismatic, Harvard-educated Taipei mayor has a down-to-earth approach to party politics, a startling shift for Nationalists who ruled Taiwan with an iron fist for decades and never quite found their footing under democracy.

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21. Cross Strait Relations

Reuters (“TIME RUNNING OUT AS TAIWAN WRINGS HANDS OVER US ARMS “, 2005-10-03) reported that time is running out for Taiwan as parliament agonizes over a huge US weapons package seen as critical in maintaining the balance of power with the PRC and as Washington all but throws its arms in the air in frustration. Failure to approve the $11 billion budget for submarines and anti-submarine aircraft would seriously erode the self-ruled island’s defense capabilities and jeopardize security, analysts say.

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22. PRC Unrest

BBC News (“CHINA GIVEN WARNING ON XINJIANG”, 2005-10-03) reported that the PRC’s treatment of Uighurs living in its western region of Xinjiang risks turning the area into a “time bomb”, an exiled Uighur group has said. The World Uighur Congress (WUC) issued the warning as the PRC prepared to celebrate 50 years of rule in Xinjiang.

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23. PRC Income Disparity

Washington Post (“CHINA PROMISES EQUITABLE GROWTH”, 2005-10-03) reported that the Communist Party vowed Friday to spread the benefits of economic growth more fairly among all levels of PRC society, seeking particularly to close the wide income gap between farmers and city dwellers. The pledge, issued by the Politburo, the country’s top policymaking body, was seen in part as a response to growing unrest, particularly in small towns and villages, by peasants who say they have been left out of the economic boom that has transformed the PRC over the past two decades.

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24. PRC Media Control

Reuters (“CHINA DETAINS SIX BEIJING MEDIA OFFICIALS-REPORT”, 2005-10-03) reported that six executives of Beijing Media Corp. Ltd. , the PRC’s first state-controlled media firm to be listed outside the mainland, were either arrested or detained between June and September due to corruption, Caijing Magazine reported on Monday.

(return to top) Interfax (“GUANGDONG GOVERNMENT ORDERS EDUCATIONAL INSTITUTIONS’ BBS TO REGISTER LEGAL NAMES OF STUDENT USERS”, 2005-10-03) reported that the Guangdong Province Department of Education has ordered all university online bulletin boards (BBS) to register the legal names of all students users in Guangdong Province, according to an official statement from the Department of Education of Guangdong Province. Students in Guangdong will have to provide their real name and personal information when they access BBS via the universtity network, which is expected to prevent the publishing and spread of any “wrong opinions” and “harmful information” on the school network. (return to top)

25. PRC Anti-Graft Measures

Reuters (“NOW CHINA LIFTS LID ON SCHOOL, HEALTHCARE GRAFT”, 2005-10-03) reported that the PRC school authorities have overcharged students by millions of dollars and doctors have taken millions of yuan in bribes, a newspaper said on Friday, a day after a report revealed rampant graft throughout government. PRC leaders have said the government faces self-destruction if it fails to crack down on corruption but it remains a huge problem both for government and private business despite a series of highly publicised clean-up campaigns.

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26. PRC Energy Shortages

Xinhua (“CHINA’S ENERGY: CONTINUOUS STRUGGLE WITH SHORTAGE”, 2005-10-03) reported that the Yangtze River Delta is one of the richest areas in the PRC. But the region is poor in energy resources and in the last couple of years this economic engine house of the country was strangled by repeated power cuts. Supply is most stressing in summer at the peak time. It is not unusual for a manufacturing facility to operate but four days a week.

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27. SARS Virus

The New York Times (“2 TEAMS IDENTIFY CHINESE BAT AS SARS VIRUS HIDING PLACE”, 2005-10-03) reported that the SARS virus, which has killed 774 people worldwide, has long been known to come from an animal. Now two scientific teams have independently identified the PRC horseshoe bat as that animal and as a hiding place for the virus in nature. The bats apparently are healthy carriers of SARS, which caused severe economic losses, particularly in Asia, as it spread to Canada and other countries.

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28. Russian Pipeline and Ecology

The Vladivostok News (“OIL PIPELINE TO PACIFIC RUNS OVER ECOLOGY LAWS “, 2005-10-03) reported that a feasibility study of a planned oil pipe from Eastern Siberia to the Russian Far East breaks a number of Russian laws, Nature Ministry reported on Thursday. The Ministry forwarded a note to Rostekhnadzor (Russian Technical Inspectorate) saying that, “materials of the feasibility study for the construction of the first part of the oil pipe do not correspond with Russian laws,” a press statement on the ministry’s site www.mnr.gov.ru said.

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