NAPSNet Daily Report Thursday, September 08, 2005

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NAPSNet Daily Report Thursday, September 08, 2005

NAPSNet Daily Report Thursday, September 08, 2005

I. United States

II. CanKor

Preceding NAPSNet Report

I. United States

1. Expert on DPRK Nuclear Weapons

The Chosun Ilbo (“PYONGYANG ‘COULD HAVE ENOUGH PLUTONIUM FOR 13 BOMBS’”, 2005-09-08) reported that DPRK may have 25-53 kg of weapons-grade plutonium if it has finished reprocessing spent fuel rods from its 5 mw nuclear reactor in Yongbyon, the US Institute for Science and International Security estimated Wednesday. ISIS presented a report titled “Global Stocks of Nuclear Explosive Materials” at a conference organized by the Carnegie Foundation. It said the estimate was based on the assumption that Pyongyang already had 15-38 kg of plutonium. If it then won the 10-15 kg of plutonium from fuel rods it says it has extracted, it would have in total 25-53 kg of plutonium — enough to make between five and 13 nuclear weapons.

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2. Six Party Talks

Agence France-Presse (“US CONGRESS PRODS NORTH KOREA TO ADOPT POLITICAL STATEMENT ON NUKES”, 2005-09-07) reported that US legislators warned DPRK not to expect any concessions unless it adopts a basic political statement to help end the nuclear crisis on the Korean peninsula. Democratic and Republican legislators said Congress could not consider providing any concessions to DPRK, especially the right to peaceful use of nuclear energy, unless it agreed to a “statement of principles” emphasizing denuclearization of the Korean peninsula. “Insistence upon specifics at this stage, given the history of the relationship, may not be a very useful negotiating tactic,” said Tom Lantos, the ranking Democrat on the House of Representatives international relations committee

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3. DPRK on Six Party Talks

Yonhap News (“N. KOREAN PREMIER PLEDGES TO PURSUE NUCLEAR-FREE PENINSULA”, 2005-09-08) reported that DPRK Premier Pak Bong-ju said Thursday that his country remains committed to peacefully resolving the nuclear crisis through dialogue and negotiation. He also stressed that Pyongyang would make steady efforts to strip the Korean Peninsula of nuclear weapons. “The denuclearization of the whole peninsula is a dying wish of Comrade Kim Il-sung, and it is the final goal of our republic,” he said in a ceremony in Pyongyang to mark the 57th anniversary of the DPRK regime.

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4. ROK on Economic Aid to DPRK

The New York Times (“S. KOREA: WORLD MUST BE READY TO AID NORTH “, 2005-09-08) reported that according ROK Deputy Prime Minister Han Duck-soo, the international community must be ready to help DPRK economically once the issue of their nuclear issue is settled. Han, who is also ROK’s finance minister, also proposed expanding the scope of the APEC trade forum, first by inviting the DPRK to participate as an observer in future finance ministers’ meetings pending a resolution of the nuclear problem. ”On condition that there is progress at the ongoing six-party talks, I think we should consider North Korea to be our first guest,” he said in a speech to finance minIsters.

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5. DPRK on UN Food Aid

Chosun Ilbo (“N.KOREA REJECTED FURTHER UN FOOD AID”, 2005-09-08) reported that DPRK reportedly turned up its nose at any more food aid from the UN and asked the World Food Program early last month to shut its Pyongyang office. A ROK official said the DPRK last year also vowed to turn down any further humanitarian aid from international bodies. The DPRK maintains that it no longer needs the food aid to cover its shortfall, since its agricultural production has increased. Pyongyang is also riled by attempts by the WFP and other international bodies to monitor where the aid is going. The WFP continually tries to check whether food aid is being diverted to the military. Experts say the DPRK is trying to reduce aid from bodies that want to see where their aid is going and replace it with aid from the ROK and the PRC, which stand accused of not doing enough to monitor distribution.

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6. PRC on Bank Probe Report

The New York Times (“BANK OF CHINA: NO COMMENT ON PROBE REPORT”, 2005-09-08) reported that the Bank of the PRC declined to comment Thursday on a report it is being investigated by US authorities for alleged connections to an illicit DPRK network believed to raise funds for Pyongyang’s nuclear program. The Asian Wall Street Journal reported Thursday that the state-run Bank of PRC and two banks based in the former Portuguese enclave of Macau were believed to have links to DPRK syndicates producing narcotics, counterfeit US currency and fake cigarettes.

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7. Inter-Korean Excavation

Joong Ang Ilbo (“JOINT EXCAVATION PLAN FOR REMAINS OF KOREAN PATRIOT”, 2005-09-08) reported that representatives of both Koreas gathered in Kaesong to discuss the joint recovery of the remains of Ahn Jung-geun, a Korean patriot of the Japanese colonial era, whose body is believed to be buried in PRC. Officials from the two Koreas said they will consult PRC on the excavation process, following bilateral contacts. ROK’s Unification Minister Chung Dong-young said PRC had promised to cooperate once the two Koreas agreed to the joint recovery project. The ROK’s Ministry of Unification said the two sides will discuss holding a joint academic session on the excavation and agree on a timetable for site surveys in PRC.

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8. Inter-Korean Olympic Team

The Korea Times (“TWO KOREAS AGREE ON UNIFIED ASIAD TEAM”, 2005-09-08) reported that ROK and DPRK’s Olympic committees reached a consensus in forming a unified team for the 2006 Asian Games, an official at the Korea Olympic Committee (KOC) said Thursday.

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9. DPRK Defector Gets Refugee Status in Mexico

Yonhap News (“N. KOREAN DEFECTOR ACCEPTED AS REFUGEE IN MEXICO”, 2005-09-08) reported that, in a rare development, a DPRK defector won his bid to get refugee status in Mexico, the country’s immigration authorities said Wednesday. The 53-year-old man identified only as Hur has been under investigation since unsuccessfully attempting to fly to the United States from Mexico with a fake ROK passport in February.

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10. Russia on UNSC Reform

RIA Novosti (“UN SECURITY COUNCIL WITH 25 MEMBERS ACCEPTABLE — ENVOY”, 2005-09-08) reported that the UN secretary-general’s special representative to Russia told journalists that he believed the future reform of the UN Security Council should not be over ambitious. Yuliy Vorontsov told a Moscow news conference: “I believe that 25 members of the UN Security Council is an acceptable number.” He said that 40 was too high a figure and that a significant expansion would ruin the UN.

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11. Sino-Russian Military Transport Deal

Agence France Presse (“CHINA TO BUY 38 RUSSIAN PLANES IN 1.5 BILLION-DOLLAR DEAL”, 2005-09-08) reported that the PRC’s military will sign a contract for the purchase of 38 Russian military transport aircraft in a deal valued at over 1.5 billion dollars (1.2 billion euros), the business daily Vedomosti reported, quoting sources close to the negotiations. The two countries had already initialed agreements for the PRC to buy Russian military planes.

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12. Sino-Russian Energy Cooperation

RIA Novosti (“CHINESE DIPLOMAT SAYS ENERGY COOPERATION VITAL FOR CHINA, RUSSIA”, 2005-09-08) reported that stepping up Russian-PRC energy cooperation is in the interest of both countries, a PRC Foreign Ministry spokesman said at a briefing. “Energy cooperation between Russia and China is a vital interest of both countries,” the official said, referring to the construction of the first section of Russia’s Eastern oil pipeline towards the PRC, recently announced by Russian President Vladimir Putin.

(return to top) The Associated Press (“RUSSIA, CHINA ENERGY COS. SET UP CONSORTIUM”, 2005-09-08) reported that Russia’s Lukoil and the PRC’s national oil company set up a consortium to develop gas fields in Uzbekistan’s part of the Aral Sea, Lukoil said in a statement. It said the companies were planning to begin work on eight gas condensate field on the Ustyurt plateau in western Uzbekistan next year, after signing a production sharing agreement. (return to top)

13. Russia on PRC Arms Ban

RIA Novosti (“RUSSIA HAS NO FEAR OF EU LIFTING CHINESE ARMS EMBARGO”, 2005-09-08) reported that Russia is not worried about the EU lifting its embargo on arms supplies to the PRC, Defense Minister Sergei Ivanov told a session of the Russian-Chinese military cooperation commission. “I think the EU embargo is bound to be lifted sooner or later, but we do not fear it,” he said.

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14. PRC-ROK Relations

Xinhua (“CHINA, SOUTH KOREA AGREE TO DEEPEN PARLIAMENTARY COOPERATION “, 2005-09-08) reported that parliament speakers of the PRC and ROK agreed in New York to boost cooperation between the two legislatures and facilitate the development of bilateral ties as a whole. Wu Bangguo, chairman of the Standing Committee of the PRC National People’s Congress (NPC), and Kim One-ki, speaker of the National Assembly of the ROK, stressed the role of parliaments in state-to-state relations.

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15. Sino-Australian Uranium Deal

International Herald Tribune (“CHINA PUTS AUSTRALIA ON PATH TO DIG ITS URANIUM”, 2005-09-08) reported that the Australian and PRC governments last month agreed to begin negotiating a treaty that would guarantee that Australian uranium would be used only for peaceful purposes, clearing the way for long-term supply contracts. “China does not have sufficient domestic uranium resources to meet this demand economically, which is why it is set to become a major uranium importer,” Alexander Downer, the Australian foreign minister, said in a speech on Sept. 1.

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16. Sino-Indian Counter Terrorism MOU

OutlookIndia.com (“INDIA, CHINA SIGN MOU ON COUNTER-TERRORISM”, 2005-09-08 ) reported that cementing bilateral ties, India and the PRC today signed a Memorandum of Understanding on intelligence sharing and counter-terrorism during Home Minister Shivraj Patil’s visit to the PRC. Patil, who met PRC Premier Wen Jiabao today, described his meetings with the PRC leadership and the first-ever bilateral MoU on intelligence sharing and counter-terrorism as “positive” and “fruitful”.

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17. UNDP on PRC Development

Xinhua (“UNDP REPORT HIGHLIGHTS CHINA’S MARKED PROGRESS IN HUMAN DEVELOPMENT”, 2005-09-08) reported that the PRC has registered some of the most rapid advances in human development in history as its Human Development Index Ranking now ranks the 85th, compared with the 105th in 1990. However, the Report warns that the PRC’s economic advance has outpaced social progress, therefore the country faces the challenge to ensure that remarkable income growth is converted into sustained progress in non-income dimensions of human development.

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18. PRC Energy Supply

The Associated Press (“CNOOC CORP. SIGNS CASPIAN EXPLORATION DEAL “, 2005-09-08) reported that the China National Offshore Oil Corp., the country’s largest offshore oil producer, said it will explore oil and gas offshore Kazakhstan with China National Petroleum Corp. in the first overseas tie-up by the two mainland oil giants. CNOOC Corp. said on its Web site that it signed a memorandum in Beijing on Aug. 31 to cooperate with CNPC and Kazakhstan’s state-owned oil and gas company KazMunaiGaz on jointly exploring oil and gas in the northern Caspian Sea.

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19. PRC Space Program

Agence France-Presse (“CHINA COULD LAUNCH NEXT MANNED SPACE MISSION THIS MONTH: REPORT”, 2005-09-08) reported that the PRC could move ahead the launch of its next manned space mission to as early as this month, a state newspaper reported. “The launch time for the Shenzhou VI is around September or October,” Zhang Qingwei, president of the China Aerospace Science and Technology Corp, told the Shanghai Morning Post.

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20. New APCSS Book

APCSS (“BYTES AND BULLETS: INFORMATION TECHNOLOGY REVOLUTION AND NATIONAL SECURITY ON THE KOREAN PENINSULA”, 2005-09-08) “Asia-Pacific Center for Security Studies in Honolulu, Hawaii, has just published the book titled “Bytes and Bullets: Information Technology Revolution and National Security on the Korean Peninsula,” edited by Dr. Alexandre Y. Mansourov. The book’s nineteen chapters are divided into three parts: Part One – Current Status of the Telecommunications Sector and Information Technology Industry in the DPRK and ROK, Part Two – IT Revolution and its Impact on Defense Modernization in the Korean People’s Army and on Defense Digitization in the ROK Armed Forces, and Part Three – Implications of Korean Information Technology Revolution on Conflict and Cooperation in Northeast Asia. The aim of the book is to provide a comprehensive analysis of the role of information technology revolution in economic development and military competition on the Korean peninsula. This edited volume is a product of collaborative efforts by civilian (government, corporate, NGOs, academic) and military (Army, Air Force, Navy, Marines, C4ISR) experts, practitioners with a vision, from the United States and its Northeast Asian allies and partners. This is a pioneering book for a discriminate reader, who wants to gain a deeper understanding, beyond the headlines, of the nuts and bolts that underpin current developments on the Korean peninsula.”

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II. CanKor

21. Report #218

CanKor (“DPRK WANTS SIX PARTY TALKS TO RESUME SEPTEMBER 13”, 2005-09-06) The DPRK has told China it wants to resume the recessed six-party talks on September 13, but it also made clear that it would continue to insist on its right to develop a civilian nuclear programme, for the purpose of “economic construction and the improvement of the standard of people’s living.” South Korean and Japanese government officials say there is no firm schedule as yet.

(return to top) CanKor (“US CONGRESSMEN VISIT PYONGYANG “, 2005-09-03) During their recent visit to Pyongyang, members of US Congress Tom Lantos and Jim Leach were told during meetings with DPRK Foreign Ministry officials, including the North Korean chief negotiator, Vice Foreign Minister Kim Kye Gwan, that the talks would resume during the week of 12 September. (return to top) CanKor (“US, DPRK TO MEET AHEAD OF NUCLEAR TALKS”, 2005-09-03) Foreign diplomatic sources in Washington say that chief US delegate to the talks Christopher Hill, and DPRK negotiator Kim Kye Gwan plan to meet again “around September 11” to discuss key issues. (return to top) CanKor (“ROK TO TAKE OVER ANTI-ARTILLERY COMMAND FROM USA “, 2005-09-05) The ROK will take over anti-artillery command from the US military by October this year. The command is one of 10 major military control missions that the US Forces Korea agreed to hand over to the ROK last year. The decision was made during a meeting of senior commanders from the two militaries last Wednesday. The commanders reviewed South Korea’s ability to run the anti-artillery surveillance and command system at the tail end of “Ulchi Focus Lens”, the annual US-ROK computer-simulated military exercises (return to top) CanKor (“TWO KOREAS AGREE ON JOINT FARM MANAGEMENT”, 2005-08-21) The two Koreas agree to select a few collective farms in the DPRK for North-South cooperation on agricultural management, beginning early next year. In a seven-point agreement at the end of a two-day meeting in Kaesong, DPRK, officials of the two Koreas also agreed to build a tree nursery to increase forestry resources and protect the ecological system, as well as to establish an integrated pest management system. (return to top) CanKor FOCUS (“THE DPRK’S NEW BUSINESS ENVIRONMENT”, 2005-08-12) While most would consider the DPRK an unlikely place for a wise investment, a steadily increasing number of foreign investors see the DPRK as the next promising opportunity for venture capitalism. Three articles in this week’s CanKor FOCUS on the DPRK’s new business environment explore opportunities offered to adventurous investors, the growing appetite of South Koreans for North Korean consumer products, and the grooming of a new generation DPR Korean entrepreneurs. (return to top)