In today’s Report:

I. United States

II. Republic of Korea

I. United States

1. Japan-US defense agreement

The Wall Street Journal (Eduardo Lachica, “U.S., JAPAN AGREE TO GUIDELINES OUTLINING `DEFENSE COOPERATION,” Washington, 6/9/97) and Reuters (“US, JAPAN CLOSE TO NEW MILITARY ROLE FOR TOKYO,” Honolulu, 6/8/97) reported that the US and Japan released new guidelines for a new defense arrangement between the two countries on Saturday. These guidelines are part of an interim report developed by a bilateral panel which is following up on initiatives announced during the Clinton-Hashimoto summit in April 1996. The guidelines include a broader range of logistical and noncombatant support role for Japan in the event of an emergency situation in the areas “surrounding” Japan, including use of Japanese airfields, Japanese involvement in minesweeping and enhanced intelligence gathering. These new roles represent a departure from the existing “Guidelines for Defense Cooperation” drafted in 1978 under which only an armed invasion of Japan would warrant joint US-Japanese military operations. The new guidelines recognize that hostilities directed at Japan will be in the form of missile strikes rather than amphibious landings. The guidelines do not require either country to change their laws of appropriate additional financial support.

The Washington Times (Willis Witter, “JAPAN, U.S. PLAN TO EXPAND MILITARY PRESENCE,” Tokyo, 6/9/97) and The Associated Press (“JAPAN EXPLAINS US DEFENSE PLAN,” Tokyo, 6/8/97) reported that the US and Japan are planning a “diplomatic offensive” to convince China and the rest of the Asia-Pacific region to accept an expanded military role for Japan. The final report is expected in November and will more carefully spell out specific roles for Japan. The AP reports that Japan is expecting criticism from China over a possible role for Japan in helping US forces in a conflict over Taiwan.

2. US-Japan-ROK Talks

In today’s Report:

I. United States

II. Republic of Korea

III. Japan

I. United States

1. DPRK, ROK Ships Exchange Gunfire

The Associated Press (“NORTH, SOUTH KOREA CLASH AT SEA,” Seoul, 6/05/97) and Reuters (“NORTH AND SOUTH KOREAN NAVAL SHIPS SWAP FIRE,” Seoul, 6/05/97) reported that DPRK and ROK naval vessels exchanged fire on Thursday after a DPRK patrol boat, along with a fleet of nine fishing boats, sailed two nautical miles into ROK territorial waters off the west coast of the Korean peninsula. The ROK Defense Ministry said in a statement that the DPRK boat fired three rounds at three high-speed ROK gunboats as they came to intercept it, and that the ROK side returned fire with two rounds. The Defense Ministry characterized all five rounds as warning shots, adding that there were no casualties or damage and that the DPRK boats sailed back across the nautical demarcation line after a 40-minute confrontation. Two ROK jet fighters scrambled to the scene and more were placed on alert, Defense Ministry officials said. DPRK patrol ships have violated ROK waters several times in the past year, but Thursday’s incident was the first time both sides exchanged fire. The ROK Defense Ministry statement said that the ROK would take up the incident, the most serious DPRK incursion since last September’s submarine incident, through the Military Armistice Commission.

US State Department Spokesman Nicholas Burns (STATE DEPT. NOON BRIEFING, JUNE 5,” USIA Transcript, 6/06/97), in response to a question concerning the DPRK-ROK naval gunfire exchange, stated, “I would just really have to refer you to the South Korean Government on that. They are the ones who will best speak about that. They have the facts. Obviously, you know the United States is an ally of

In today’s Report:

I. United States

II. Republic of Korea

III. Russian Federation

I. United States

1. DPRK-Cargill Grain Deal Imperiled

Reuters (“N.KOREA’S BARTER DEAL WITH CARGILL FACES FAILURE,” Seoul, 6/04/97) reported that the US$4 million barter arrangement between the DPRK and US grain giant Cargill Inc. was on the brink of collapse on Wednesday after Pyongyang failed to comply with conditions of the deal, traders said. Cargill ordered the vessel carrying 20,000 tons of its grain to remain in international waters when it learned that the DPRK’s share of the barter deal, 4,000 tons of zinc, had not been delivered to the port, an Asian grain trading source said. “The wheat was set to arrive on June 1 or 2 at North Korea’s western port of Nampo. But the ship is on the open sea,” the source said. In the deal, struck in April, the DPRK agreed to have the zinc at the port and ready for shipment before the vessel carrying Cargill’s wheat docked, the source said. Cargill wanted to keep the vessel in international waters to maintain control of its cargo and the vessel itself, because once a vessel enters a country’s territorial waters, international maritime law requires that it follow the instructions of the port authority, a Seoul trader said. Cargill, reportedly negotiating with the DPRK to try to salvage the deal, declined comment.

2. DPRK Famine Situation

The AP-Dow Jones News Service (“U.N. AGENCY SAYS N. KOREA FOOD RATIONS RUNNING OUT,” Rome, 6/04/97) reported that the UN World Food Program (WFP) said in a report issued Wednesday that the DPRK’s food ration system is nearing collapse, putting the p

In today’s Report:

I. United States

II. Republic of Korea

III. Announcements

I. United States

1. DPRK Economy

Reuters (“N.KOREA’S TRADE VOLUME FALLS FOR SIXTH STRAIGHT YR,” Seoul, 6/03/97) reported that the DPRK’s Korea Trade-Investment Promotion Agency (KOTRA) said on Tuesday that in 1996 the DPRK’s foreign trading volume dropped 3.7 percent to US$1.98 billion, its sixth straight annual decline. Exports fell 1.3 percent to US$730 million from a year ago and imports dropped 5.0 percent to US$1.25 billion, producing a trade deficit of US$520 million for the year. Imports of agricultural and food products jumped 48 percent to US$180 million in 1996, KOTRA’s statement said. The agency said the ROK was the DPRK’s third largest trading partner last year: the DPRK imported US$69.6 million in goods from the ROK and exported US$182.4 million.

Reuters (“N.KOREA ALLOWS CURRENCY CONVERSION IN SPECIAL ZONE,” Seoul, 6/02/97) reported that a ROK Finance Ministry official said on Monday that the DPRK will allow its currency to be exchanged directly with US dollars in a bid to boost business in its Rajin-Sonbong free-trade zone. The official, who asked not to be identified, said the DPRK would set the exchange rate at 200 DPRK won per dollar. The existing system, under which foreigners exchange hard currency for special units at an official exchange rate of 2.16 DPRK won per dollar, will remain in place elsewhere in the country. The official noted that the black market exchange rate is 100 DPRK won per special currency unit.

In today’s Report:

I. United States

II. Republic of Korea

I. United States

1. KEDO Delegation’s Visit to DPRK

The Associated Press (“NUCLEAR OFFICIALS VISIT NORTH KOREA,” Seoul, 6/02/97) reported that the DPRK’s official Korean Central News Agency (KCNA) said that a team of US, ROK and Japanese nuclear experts arrived in the DPRK on Saturday to discuss construction of two nuclear reactors by the Korean Peninsula Energy Development Organization (KEDO), under the 1994 accord between the DPRK and the US. “The negotiation will finally discuss the technical and practical issues concerning the start of the construction project,” KCNA said, giving no further details. KEDO has said its 44-member delegation and DPRK officials will discuss the use of postal and communications systems, employment of North Korean workers, and the use of hospitals during the visit, which ends June 7.

2. DPRK Food Aid

United Press International (“RED CROSS BOOSTS N.KOREA AID FIVE-FOLD,” Seoul, 5/31/97) reported that the International Federation of the Red Cross (IFRC) announced plans to supply enough food aid to the DPRK to feed 700,000 people, five times as many as it currently assists. The announcement followed an assessment of the current situation that calls the lead-up to October’s harvest “the most critical period.” Geoff Dennis, a former IFRC representative in Pyongyang who led a recent three-person visit to the DPRK, said Sunday, “With the substantial donations from particularly the S

In today’s Report:

I. United States

II. Republic of Korea

III. Japan

IV. Announcement

I. United States

1. US-DPRK-ROK Meeting

The Associated Press (“U.S., KOREA ENVOYS PLAN PEACE TALKS,” Washington, 5/30/97) reported that officials from the US, the DPRK and the ROK met Friday in New York, and that US State Department Spokesman John Dinger said the US was hopeful that the effort to gain the DPRK’s acceptance of the proposed four-party peace talks “is moving in the right direction.” The meeting in New York was the first trilateral discussion since the US and the ROK failed in a similar effort more than a month ago to induce the DPRK to agree to the talks proposal. The DPRK’s desire for promises of large-scale food aid in exchange for their participation in the peace talks has been a major obstacle. Dinger said the discussions in New York are part of a “process.” “One step in that process is today. Hopefully, another step will be four-party talks. Hopefully, the ultimate conclusion will be a peace treaty,” he said.

2. DPRK Famine Situation

The AP-Dow Jones News Service (“S. KOREA SAYS N. KOREA EXPECTED TO WITHSTAND FAMINE,” Seoul, 5/30/97) reported that ROK Unification Minister Kwon O-kie, the ROK’s top DPRK policy maker, told a seminar Friday that foreign aid will enable the DPRK to overcome its current food crisis. “North Korea will have enough grain from its own stocks and imports to sustain itself until the summer harvest in August,” Kwon said. The UN’s World Food Program has said that the

In today’s Report:

I. United States

II. Republic of Korea

III. People’s Republic of China

I. United States

1. DPRK Naval Vessel Enters ROK Waters

Reuters (“NORTH KOREAN NAVY BOAT SPARKS DEFENSE SCARE,” Seoul, 5/29/97) reported that the ROK Defense Ministry said a DPRK navy patrol boat intruded into ROK waters Thursday, apparently by mistake as it shadowed a PRC cargo ship. “The ship was first spotted at 2:05 p.m. and returned by 3:00 p.m.,” a ministry official said. “It seems that the ship mistakenly entered our waters.” It was spotted just south of a nautical demarcation line separating the two Koreas. Four ROK navy vessels were immediately dispatched to the area, but there was no contact with the DPRK boat. The ministry official said it was the first such incursion since May 1996, but gave no further details.

2. DPRK Food Aid

Reuters (“HASHIMOTO SAYS JAPAN MAY GIVE FOOD TO PYONGYANG,” Tokyo, 5/29/97) reported that, according to Japan’s Kyodo news agency, Japanese Prime Minister Ryutaro Hashimoto hinted Thursday that Japan may reverse its policy on food aid to the DPRK and agree to provide help if the ROK formally asks it to do so. “If the South Korean government asks us for assistance to compatriots in North Korea, there is room for the Japanese side to change its stance (on giving food aid),” Kyodo quoted Hashimoto as telling a group of visiting ROK newspaper editors. “We are ready to think about that (food aid) if we are asked to render aid by the South Korean government. Anyhow, we will have int

In today’s Report:

I. United States

II. Republic of Korea

I. United States

1. DPRK Nuclear Plant Site Visits

The AP-Dow Jones News Service (“TEAM TO VISIT N. KOREA TO DISCUSS BUILDING NUCLEAR PLANTS,” Seoul, 5/28/97) reported that forty-four US, ROK and Japanese officials will visit the DPRK later this week to discuss details of building the two new nuclear power plants stipulated under the 1994 Agreed Framework. The Korean Peninsula Energy Development Organization (KEDO), the international consortium overseeing the construction of the plants, said that the team is made up of 10 KEDO officials, plus 27 ROK, three US, and four Japanese advisors and experts in legal, transportation, communications, and other fields. During the May 31-June 7 visit, the two sides are to discuss administrative details, including the use of postal and communications systems, employment of DPRK workers, and the use of hospitals. Talks on these issues began in April.

2. DPRK Food Aid

United Press International (“FOOD AID ARRIVES IN N.KOREA,” Seoul, 5/28/97) reported that the DPRK’s official news agency said Wednesday that 59,000 tons of food aid has arrived to help avert food shortages. The government news agency said food from the US, Europe, and other aid donors will help relieve “temporary difficulties” caused by flood-damaged crops.

US Defense Department Spokesman Ken Bacon (“PENTAGON SPOKESMAN’S DAILY BRIEFING, MAY 27,” USIA Transcript, 5/28/97) stated, in response to a question regar

In today’s Report:

I. United States

II. Republic of Korea

III. Russian Federation

I. United States

1. ROK Red Cross Food Aid to DPRK

The Associated Press (“KOREAS AGREE ON FOOD SHIPMENT,” Beijing, 5/27/97) and Reuters (“RIVAL KOREAS SIGN FOOD AID AGREEMENT,” Beijing, 5/27/97) reported that ROK and DPRK Red Cross officials agreed Monday on terms for the shipment of 50,000 tons of food to the hunger-stricken DPRK by August. The food, mostly corn, amounts to a six-month supply for 600,000 people. Red Cross spokesman Johan Schaar said this is more than four times the number of North Koreans currently receiving Red Cross aid. He also said about one-third of the promised aid — 15,000 tons — already is being shipped by train from the PRC. The United Nations estimates that 4.7 million North Koreans — a fifth of the population — risk starvation this summer without massive food aid. The head of the DPRK delegation, Paek Yong-ho, said that the amount of promised aid was “quite small in comparison with the total effect of the disaster.” “I cannot say it’s enough, but anyhow it will help,” he said. Paek asked for 100,000 tons of aid at one point during the talks. The ROK originally offered 40,000 tons. Both sides made other significant concessions to reach Monday’s agreement, the first direct agreement between the Red Cross societies of the two countries in more than a decade. The DPRK Red Cross agreed to accept aid labeled as having come from ROK donors, to send food to areas or people designated by ROK donors, and to open more delivery

In today’s Report:

I. United States

II. Republic of Korea

III Japan

I. United States

1. US Secretary of State on Four-Party Talks

US Secretary of State Madeleine Albright (“ALBRIGHT PRESS CONFERENCE AT STATE DEPT. MAY 23,” USIA Transcript, 5/23/97) replied to a question as to whether the US intends to introduce any “new ideas” to “kick-start” the proposed four-party Korean peace talks. Albright stated, “Well, first of all, I think that while maybe our proposal per se has not changed, I do think that in the last months there has been some positive reaction to them — that in the talks that took place in New York there had been agreement in principle to have these talks and now there has been a delay in finding the time. I would say that we are very much on the right track and that it is a matter of seeing what the conditions are to make sure that those talks do, in fact, take place.” Referring to her upcoming meeting with ROK Foreign Minister Yoo Chong-ha, Albright continued, “Obviously, we are going to be talking about this. This is an issue of concern both to the South Koreans and to us because, ultimately, what both countries are looking for is stability in the Korean Peninsula. So we are just going to be, I think, discussing specifically how one can take advantage of the agreement in principle to have the talks.”

2. US Secretary of State Calls for KEDO Support

AP-Dow Jones News Service (“ALBRIGHT ASKS CONGRESS TO PAY 1997 DUES TO KEDO,” Washington, 5/23/97) reported that