NAPSNet Daily Report Thursday, July 12, 2007

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NAPSNet Daily Report Thursday, July 12, 2007

NAPSNet Daily Report Thursday, July 12, 2007

I. NAPSNet

Preceding NAPSNet Report

I. NAPSNet

1. IAEA on DPRK Reactor Shutdown

Voice of America (“UN NUCLEAR CHIEF EXPECTS NO PROBLEMS CLOSING NORTH KOREAN REACTOR”, 2007-07-12) reported that Mohamed ElBaradei, the head of the United Nations nuclear agency says the shutdown of the DPRK’s main reactor, which will be monitored by inspectors traveling to the country Saturday, should go “smoothly.” ElBaradei warned that the process of ending all of the DPRK’s nuclear programs could take considerable time. He noted the effort has gone more than 15 years.

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2. UNDP on DPRK Program

Mainichi (“U.N. EX-EMPLOYEE IN N.KOREA SEEKS WHISTLEBLOWER PROTECTION AMID FINANCES PROBE”, 2007-07-07) reported that the former operations officer for the U.N. anti-poverty agency in the DPRK says he is seeking whistleblower protection from the United Nations because he lost his job for raising serious allegations about its financial transactions. Artjon Shkurtaj said in an interview with The Associated Press on Friday that he went to the former U.N. management chief and the U.S. government after his bosses failed to act on his allegations. The UNDP disputed Shkurtaj’s allegations that he was subject to retaliation.

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3. DPRK on LWR

Yomiuri Shimbun (“PYONGYANG SOUGHT N-REACTOR DURING HILL’S VISIT”, 2007-07-12) reported that the DPRK requested a light water reactor in return for scrapping its nuclear weapons program during a visit by top U.S. nuclear negotiator Christopher Hill to Pyongyang last month. Washington has said it would only consider supplying such a reactor if Pyongyang totally abandons its nuclear weapons program and diplomatic relations are normalized.

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4. DPRK Market Prices

Daily NK (“THE NORTH KOREAN RICE PRICE NARROWLY INCREASED AFTER THE SPRING SHORTAGE”, 2007-07-12) reported that the market price for rice has increased after the spring shortage season. The price of rice is 900 won per kilogram, an increase of 80 won compared to the end of March. Analysts suspect the delay in rice imports from the ROK and the implementation of a “farm supporting combat” policy last May which closed the markets to be contributing factors.

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5. ROK Energy Aid to DPRK

BBC (“FUEL SHIP BOUND FOR NORTH KOREA”, 2007-07-12) reported that a ship carrying the first delivery of fuel to the DPRK, under the nuclear disarmament deal, has left port. The ship, carrying 6,200 tons of oil, is expected to arrive in the DPRK on Saturday.

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6. DPRK Anti-Japanese Rally

Chosun Ilbo (“N.KOREA RALLIES AGAINST JAPAN’S SALE OF CHONGRYON HQ”, 2007-07-12) reported that the DPRK staged a mass rally against the Japanese government for starting proceedings to auction the headquarters of the pro-Pyongyang General Association of Korean Residents of Japan, or Chongryon. Violent expressions against Japan dominated the rally, such as “Clubbing is best for a mad dog,” and “We will shatter Japan into pieces.” Analysts speculate the DPRK may link the Chongryon issue to the Six Party Talks.

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7. ROK-EU Trade Relations

Chosun Ilbo (“KOREA TIMID IN AUTO TARIFF PROPOSAL TO EU”, 2007-07-12) reported that the government said the ROK has delivered its proposals on tariffs in free trade negotiations with the EU, pledging to scrap or phase out tariffs on automobiles over seven years. Since it has a comparative advantage in automobiles, it was up to Seoul to take the initiative in the talks. But the delegation at the urging of the Ministry of Commerce, Industry and Energy remained cautious to protect the domestic automobile market. This could prove controversial since the ROK exports about 740,000 cars to the EU every year while importing a mere 15,000.

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8. Japan-ROK Trade Relations

Joongang Ilbo (“JAPAN WARY OF KOREA’S FTA FRENZY, OFFICIAL SAYS”, 2007-07-12) reported that the ROK’s unrelenting pursuit of free trade agreements is setting off alarm bells for the Japanese, said Cho Tae-yul, deputy minister for trade at the Ministry of Foreign Affairs and Trade, yesterday. “The atmosphere among Japanese government officials is that Japan needs to start seriously considering free trade pacts with China, the United States and the EU,” said Cho. “There were general discussions regarding the suspended Korea-Japan free trade talks, but nothing was mentioned about a concrete date or a schedule of when they will be resumed,” said the deputy, adding that Japan’s willingness to open its agricultural market will be of top importance.

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9. Australia-Japan Defense Relations

Kyodo (“AUSTRALIA WARNED NOT TO BECOME PAWN IN JAPAN’S CHINA STRATEGY”, 2007-07-12) reported that Australia needs to be wary of becoming a “pawn” in Japan’s defense strategy vis-a-vis the PRC, a leading Australian academic warned. Japan specialist Aurelia Mulgan, an associate professor of politics at the University of New South Wales, said Australia should “resist being bound up into the Japanese agenda” of containing the PRC’s military rise because its interests in the PRC differ from Japan’s.

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10. Hong Kong Government

Agence France-Presse (“NO FIRM PROPOSALS FOR DEMOCRACY IN HK REFORM PAPER”, 2007-07-12) reported that the Hong Kong government unveiled a long-awaited document on political reform, but failed to make firm proposals on how to bring full democracy to the PRC territory. It suggests 2012 as the earliest possible date for the direct election of legislators. But the document also emphasised that full democracy should proceed in a “gradual and orderly” manner in accordance with the Basic Law mini-constitution used to govern the city since its return to Chinese rule in 1997.

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11. PRC Energy Supply

The Associated Press (“CHINA FALLS SHORT ON ENERGY-SAVING GOALS “, 2007-07-12) reported that the PRC is falling short of its goals in a campaign to boost energy efficiency in its fuel-guzzling economy — the world’s No. 2 oil consumer — but is starting to make progress, the government said. The PRC launched a five-year effort in 2006 to cut energy use per unit of economic output by 20 percent. But last year’s reduction was only 1.33 percent, well below the 4 percent annual target, Xie Fuzhan, commissioner of the National Bureau of Statistics, said at a news conference.

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12. PRC Rural Unrest

The Associated Press (“REPORT: CHINESE FARMERS, POLICE CLASH OVER DAM”, 2007-07-12) reported that thousands of villagers in southern PRC clashed with police during a protest over what they say is inadequate compensation for farmland flooded by a dam project, according to news reports. Hong Kong’s Mingpao Newspaper reported that about 10,000 villagers repeatedly engaged police over a four-day period last week when they tried to petition the local government in Guangxi province’s Yantan Township, and to hold demonstrations near the dam.

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