Archive for the ‘International Governments’ Category

World Food Program donations to DPRK shrink

Thursday, August 26th, 2010

According toYonhap:

The World Food Program is struggling to keep its project of feeding malnourished children in North Korea from shrinking, its director for the communist state said in an interview on Thursday.

Torben Due, who represents the WFP office in Pyongyang, said his organization set out to raise US$500 million two years ago to provide basic nutrition for North Korean children.

In reality, what the WFP ended up with was $100 million. Due said his team in Pyongyang has re-designed its operation for the next two years to value at $96 million because of grim expectations for funding.

“The most difficult obstacle is that we don’t get the resources we need. We don’t get the money we need,” said Due, who was in Seoul this week to meet with government officials to discuss food needs in North Korea.

“We had to reduce (our program) because we could see we would not get the money. We had to design a program small and realistic in terms of what we would be able to do,” he said.

The WFP is a U.N. organization heavily dependent on donation. In North Korea, it supplies cereal-type food mixed with soybeans, milk powder, sugar and others rich in protein and minerals, specifically aimed to fight nutritional deficiencies in growing children.

“The child who is chronically malnourished will be damaged in a way that lasts a whole life. He will be physically stunted, and mental and intellectual development will also be harmed,” Due said, adding North Korean children “particularly” like biscuits.

Due said political tensions appear to be one reason why the WFP operation is not receiving enough donations for North Korea, which has conducted two nuclear tests since 2006, defying warnings.

“This is a pure humanitarian issue. Children suffer more than anybody else if there is no food,” he said, adding that the WFP office in Pyongyang had to cut the number of counties it was supporting from 130 to 65 this year.

“You are talking about roughly a third of the population that has problems with insufficient food intake, both in terms of quantity and quality. What we’re providing is supplement for a small part of the population. The problem is much bigger than what the WFP program is about,” he said.

North Korea has a population of about 24 million. Due said quantity matters as much as quality when it comes to helping North Korean children.

“If you have a country with 5 million children, if you want to contribute and solve the problem, you must think in terms of what is needed,” he said.

Due declined to disclose his discussions with the South Korean government officials he met here. South Korea has suspended sending large-scale food aid to North Korea unless Pyongyang moves to denuclearize under a multinational agreement.

North Korea has relied on international handouts since it suffered massive famine in the 1990s, when as many as 2 million people reportedly died.

The country is vulnerable to natural disasters. Earlier this month, heavy rains along its border with China raised the level of rivers and led to the evacuation of 23,000 North Koreans, Due said.

“In the areas affected, it’s quite devastating,” he said. But Due said North Korea had yet to appeal for international assistance as “the impact is very limited” and “localized.”

“The government can probably handle it themselves. We are, along with the Red Cross, providing some items,” including 1,300 tons of food, he said, adding he had no knowledge of human losses yet.

Earlier Thursday, South Korea’s Red Cross proposed sending aid to North Korea to help it recover from the flooding.

Read the full story here:
WFP feeding fewer N. Korean children as donation shrinks: director
Yonhap
Sam Kim
8/26/2010

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Jimmy in DPRK—KJI in China

Thursday, August 26th, 2010

UPDATE 4: Chinese government confirms Kim Jong-il visit.  According to Evan Ramstad in the Wall Street Journal:

North Korean dictator Kim Jong Il met Chinese President Hu Jintao during his five-day visit to northeast China, the Chinese government confirmed Monday night as Mr. Kim left the country, in a surprise get-together that underscored their solidarity as they cope with pressure from the U.S. and other countries to act more responsibly.

The announcement was the climax of what appeared to be a coordinated public-relations push by China on Monday, beginning with stories in several media outlets praising the China-North Korea relationship while also saying Beijing shouldn’t be held responsible for Pyongyang’s provocative actions.

The meeting happened Friday, though China, as it has done with Mr. Kim’s previous visits, waited until he left the country to say he had been there.

In the initial reports confirming the meeting between Messrs. Kim and Hu, China’s state media said that Mr. Kim wanted a resumption of the six-nation talks aimed at striking a bargain for denuclearizing North Korea. They also hinted that Mr. Kim was interested in the economic overhauls that opened China to the world, though they didn’t say he endorsed or would follow them.

Mr. Kim for years has resisted requests of Chinese leaders to open up North Korea’s economy. Late last year, his regime tried to clamp down on market activities but halted the effort when the government couldn’t feed people.

Mr. Hu said on state TV that China should expand its economic cooperation with North Korea. Since Mr. Kim’s entourage was spotted in China on Thursday, analysts have speculated that one reason he made the trip was to seek more money and assistance for the impoverished North.

Analysts also speculated that Mr. Kim brought his expected heir-apparent, son Kim Jong Eun, to meet Chinese officials ahead of a political meeting in Pyongyang next week that may be the son’s public debut in North Korea. The Chinese news reports about the visit did not mention the son, however.

“I think there are other two issues Kim wants to talk about with China,” said Jin Hanyi, head of Northeastern Asian Research Institute at Yanbian University in Jilin. “North Korea recently had a bad flood and, with international sanctions against it and the failure of monetary reform, Kim wants to discuss how to deal with these awful messes,” Mr. Hanyi said. “Second, North Korea will hold a Workers’ Party meeting next month and he wants support from China for new policies.”

Mr. Kim’s entourage twice during the trip stopped in places associated with his father, North Korean founder Kim Il Sung, moves that are likely to be portrayed in North Korea as highlighting the importance of the Kim family as another potential succession looms.

For outside diplomats, the greatest significance of the trip is the symbolism of Messrs. Kim and Hu going to great lengths to meet each other in the aftermath of criticism both countries took following the sinking of a South Korean earlier this year, an incident that South Korea, the U.S. and others blame on a North Korean attack.

China has refused to blame North Korea publicly for the sinking, which killed 46 South Korean sailors, or to examine the results of the South Korea-led investigation.

Instead, North Korea and China have, since late May when the investigation first produced the accusation against North Korea, called for the resumption of the six-party denuclearization talks. The talks began in 2003, producing two agreements that North Korea dragged out and ultimately failed to keep. Pyongyang formally walked away from them last year.

Japan, South Korea and the U.S. have said North Korea damaged the potential for the talks with its attack on the South Korean ship.

The message to restart the talks was also given last week by a different North Korean official to former U.S. President Jimmy Carter when Mr. Carter went to Pyongyang to retrieve an American teacher who entered North Korea illegally in January. Mr. Kim skipped the opportunity to meet Mr. Carter to go to China instead.Mr. Kim doesn’t like to fly and travels by train that is easily monitored by satellite by foreign governments. His entourage is then tracked on the ground by reporters who follow the highly visible security cordons that go up along his route.

On Monday, South Korean and Japanese news agencies reported the action as Mr. Kim took his specially outfitted train from Harbin, the capital of China’s most northeastern province Heilongjiang, to a smaller city called Mudanjiang and then down to the border crossing at Tumen.

Mr. Kim called himself a “witness” to the success of China’s “reform and opening up,” Chinese television reported, but it was unclear whether that meant the North would follow that model. Last year, Chinese Premier Wen Jiabao, in a visit to Pyongyang, proposed development projects valued at several billion dollars to North Korea, but none have gotten off the ground.

Early Monday, Chinese state media rang with praise for North Korea but also tried to draw a line in the two countries’ relationship.

The state-run Xinhua news agency published a commentary talking about Chinese men who sacrificed their lives for North Korea, during the Korean War of the 1950s and afterward. Its latest example was the tale of a Chinese man who drowned this month after rescuing three North Korean girls adrift at sea.

The man’s “sacrifice led us again to recollect the long history of friendship between the two peoples,” Xinhua wrote.

Another nationalist newspaper, Global Times, wrote an editorial that called the China-North Korea relationship both “special” and “normal.”

“The biggest negative impact the China-North Korea relationship has on China is that the U.S, Japan and South Korea all request that China be responsible for North Korea’s ‘irrational behaviors,'” the newspaper wrote. “However, China has no ability to shoulder such responsibility.”

UPDATE 3: Kim Jong il departs from Harbin and returns home.

UPDATE 2: Kim Jong-il in Changchun. According to Yonhap:

North Korean leader Kim Jong-il arrived in a Chinese industrial city Friday, a day after making a pilgrimage to sites bearing footmarks of his late father, on an abrupt trip seen as related to his leadership succession plan.

A convoy of some 30 vehicles, believed to be carrying the reclusive leader, arrived at the South Lake Hotel in the northeastern Chinese city of Changchun, about an hour and a half after leaving the nearby city of Jilin.

Earlier in the day, Kim’s convoy appeared to be traveling to a Jilin train station, where security was heavy, to allow the leader to board his personal armored train to Changchun. However, instead of stopping, the convoy took a highway to the capital city of Jilin province. About 10 police vehicles provided escort for the group of limousines and mini-buses.

Kim’s stay in Changchun is expected to include a tour of advanced industrial facilities.

Kim, 68, began the latest secrecy-shrouded trip a day ago, crossing into China around midnight Wednesday aboard his luxurious special train.

The trip was a surprise because it came as former U.S. President Jimmy Carter was in Pyongyang for a widely speculated meeting with him. It was also Kim’s second visit to China in about three months, an unusual move for the isolated leader who rarely travels abroad.

Carter arrived in Pyongyang Wednesday to win the release of an American citizen detained in the North since January for illegal entry. Carter headed home Friday with the freed American, Aijalon Mahli Gomes, Pyongyang’s Korean Central News Agency said.

It was apparent that he failed to meet with Kim Jong-il.

On Thursday, Kim paid a visit to Jilin’s Yuwen Middle School, which his father and national founder, Kim Il-sung, attended for two and a half years starting in 1927. Kim also visited Beishan Park in the city of Jilin where the remains of anti-Japanese independence fighters are buried.

North Korea has lavishly lauded Kim Il-sung for his anti-Japanese activities during the 1910-45 colonial rule. The late leader, who founded North Korea in 1948, is still revered as eternal president and is subject to a strong cult of personality even after his death in 1994.

Kim’s move suggests that he visited the two sites considered sacred to his family dynasty ahead of handing power over to his youngest son, Jong-un, analysts said. Unconfirmed reports said the heir-apparent could be accompanying his father on the rare trip.

North Korea’s ruling Workers’ Party is scheduled to convene a rare leadership meeting early next month in which the younger Kim could be given a key position in the run-up to formally taking over the communist dynasty.

On Thursday, Pyongyang’s state media reported that the country has started holding lower-level meetings of party delegations in the run-up to next month’s conference.

“The meetings were unanimous in saying that the WPK conference … will be a significant conference which will be a landmark of an epochal turn in strengthening the party and a great jubilee of great significance in ushering in a new surge in the revolution and construction,” the KCNA said.

Kim’s trip came as tensions still run high in the wake of the March sinking of a South Korean warship and China pushes to jump start six-nation talks on ending North Korea’s nuclear programs.

Beijing’s chief nuclear envoy has been in Seoul for talks on his trip to North Korea last week.

China is pushing for a “three-step” proposal for resuming the nuclear talks.

The proposal calls for Pyongyang and Washington first holding bilateral talks before all six parties hold an informal preparatory meeting and then an official session. The talks, which involve the two Koreas, China, Japan, Russia and the U.S., have been stalled since late 2008.

South Korea has expressed its reluctance to reopen the dialogue unless the North shows a “responsible” attitude over the sinking and proves through action that it is serious about abandoning its nuclear programs.

UPDATE 1: Here is KCNA coverage of Cater’s visit to secure the release of Gomes

ORIGINAL POST: Former President Jimmy Carter is in Pyongyang to secure the release of American Aijalon Gomes.  Past stories about his detention can be found here. President Carter last traveled to Pyongyang in 1994  and met with Kim Il-sung (the North Koreans made a propaganda video out of the trip which they sell to foreigners), and discussed terms to freeze the country’s nuclear program. Many were speculating that President Carter might meet with Kim Jong-il while in the DPRK, but Kim appears to be in China.

According to the New York Times:

The man Mr. Carter is seeking to free is Aijalon Mahli Gomes, a 30-year-old Christian from Boston who was arrested in January for crossing into North Korea and sentenced in April to eight years of hard labor and fined $700,000. Last month, North Korea said he tried to kill himself out of “frustration with the U.S. government’s failure to free him.”

The visit by Mr. Carter, an evangelical Christian, is the second to North Korea by a former American president in a year on what the United States described as a private humanitarian missions. Last August, Bill Clinton flew there and met with the reclusive North Korean leader, Kim Jong-il, to secure the release of two American journalists held for five months for illegal entry.

The Obama administration kept its distance, emphasizing that Mr. Carter not an envoy. “I’ll just say that President Carter is on a private humanitarian mission and I’m not going to comment more beyond that,” said Mark Toner, a State Department spokesman.

But as with Mr. Clinton’s visit, Mr. Carter’s has deeper diplomatic undercurrents. The North Koreans have used the captive Americans as bargaining chips, promising to release them in exchange for visits from specific high-profile Americans. North Korea can portray the meetings domestically as evidence of its international importance, while the United States has a high-level direct encounter that it cannot officially engage in.

But Mr. Carter has a long history as an independent agent, and some administration officials worried that he might undercut their policy in some way and make it harder to keep up the pressure on Pyongyang to give up its nuclear program.

It was not immediately clear who among the North Koreans would meet with Mr. Carter. The North Korean media reports said that he was greeted at the airport in Pyongyang, the capital, by Kim Kye-gwan, a senior diplomat who has been the North’s main envoy to the six-nation talks on its nuclear weapons program. The talks have been stalled for more than two years, but the North recently said it was willing to return to the discussions.

Higher-level meetings would appear to be likely, since Mr. Carter’s visit comes at a fraught time for North Korea. Its economy remains deeply troubled, and its ravaged agricultural sector has been further damaged by recent flooding. A March torpedo attack that sank one of the South’s warships, killing 46 sailors, drove inter-Korean relations to their lowest point in years and added to tensions with the United States. In addition, there may be a struggle over succession within the government of Kim Jong-il, who has had serious health problems.

The case of Mr. Gomes also touches on efforts of Christians in South Korea and the United States on behalf of North Koreans. His illegal entry was made in support of Robert Park, a fellow Christian from the United States who crossed from China in December to call attention to the dismal conditions in the North’s prison camps. Mr. Park was expelled after about 40 days.

Mr. Carter has been a contentious figure among South Korean conservatives. “Carter is idealistic, not realistic when it comes to North Korea,” said Hong Kwan-hee, director of the Institute for Security Strategy in Seoul. “North Korea always has tried to use prominent Americans, preferably Democrats, as a medium to engage the United States and drive a wedge between Seoul and Washington.

In another development, the South Korean authorities on Thursday morning were looking into indications that Mr. Kim, the North Korean leader, might be visiting China, an official in the presidential office of South Korea said. News media in South Korea, including the national news agency, Yonhap, and the mass-circulation daily, Chosun, reported the same on their Web sites.

“We have signs that Kim Jong-il is visiting China,” said the official, who spoke on condition of anonymity, citing the sensitivity of the matter. “It’s unclear whether he has arrived or is still on the move.”

If true, this would be Mr. Kim’s sixth trip to China and his second in three months. North Korea and China usually do not confirm a trip by Mr. Kim until after it is over. His previous trips were often preceded by weeks of media speculation. Many journalists waited on the Chinese side of the border to wait for his train to cross. This time, there was no such activity.

According to Bloomberg:

Carter yesterday also met with Kim Yong Nam, president of the Presidium of the Supreme People’s Assembly of North Korea, KCNA said. The pair had a “cordial talk” in the Mansudae Assembly Hall, the official news agency said.

Regarding Kim Jong-il’s visit to China, I turn to the Los Angeles Times:

In a trip shrouded in mystery and speculation, North Korean leader Kim Jong Il traveled to China by train with his youngest son, according to two South Korean government officials.

An official in the South Korean Blue House confirmed late Thursday that Kim’s train had crossed the border into China around midnight Wednesday, but said the North Korean leader did not take the usual route through the city of Dandong.

We “detected indications a few days ago,” the official told reporters, asking not to be named. “Chairman Kim’s special train has been confirmed to have left Manpo for China’s Jilin around midnight Wednesday.”

Another official, who asked not to be named because he was not authorized to discuss the matter, said earlier that intelligence had detected movement by the reclusive Kim.

South Korea’s Yonhap news service quoted an official speculating that the trip might be associated with the anticipated handover of power in the secretive regime.

“Signs have been detected that Chairman Kim visited China early Thursday morning,” the second unnamed official told the agency. “We are still trying to grasp his exact destination and the purpose of the visit.”

This was Kim’s second trip to China since May, when he embarked on a five-day journey for a summit with Chinese President Hu Jintao.

The Chinese government Thursday had no immediate comment on the visit. Because of security concerns, Kim’s rare trips outside North Korea to the ally nation are publicly confirmed only after they end.

The Yalu River crossing between North Korea and the Chinese city of Dandong was badly flooded last weekend, disrupting the railroad lines over which Kim normally travels in an armored, luxury train, reportedly equipped with conference rooms, bedrooms and high-tech communication facilities.

Shi Yinhong, a professor at Beijing’s Renmin University, speculated that Kim “must need China’s help in reducing tensions and ensuring a good environment for the succession of his son.”

The visit may signal that North Korea is prepared to return to six-party talks hosted by China on its nuclear program. North Korea also badly needs humanitarian assistance as a result of a series of economic blunders, as well as poor harvests and damage to cropland caused by the recent flooding.

Kim, who is 68 and in poor health after suffering a stroke in 2008, is in the process of naming his youngest son, the little-known Kim Jong Eun, 26, as his successor, a decision which should be announced at a special congress next month of North Korea’s ruling Workers’ Party.

“It’s likely that Kim Jong Il wants to end the debate on the succession issue in Pyongyang ahead of a meeting next month of the North Korea’s Workers’ Party,” said Yang Moo-jin, a professor at the University of North Korean Studies in Seoul.

“There’s been plenty of succession talk between working-level and senior-level officials in Beijing and Pyongyang where they have failed to reach an agreement. Kim Jong Il now seems to be taking matters into his own hands.”

Kim Jong Eun, who was educated in Switzerland and speaks several languages, did not accompany his father during the previous trip to China in June. His presence on this visit might be something of a courtesy call to introduce the future leader to the Chinese.

“China will have no choice but to deal with Kim Jong Eun. Their regime is traditionally a family dynasty and, like it or not, if you deal with North Korea, you have to deal with their ruler,” said Shi.

Kim Jong Il assumed power in North Korea with the death of his father, Kim Il Sung, in 1994.

The rumors come amid tensions on the Korean Peninsula following the deadly sinking of a South Korean warship in March. The south has blamed North Korea for an unprovoked torpedo attack.

The trip also comes the day after former U.S. President Jimmy Carter arrived in Pyongyang to secure the release of a U.S. citizen imprisoned for illegally entering the country.

Here is the original Yonhap story.

Here is more in the New York Times.

Here is more in the Los Angeles Times.

The Road less taken: DPRK railway crossings into China

Click image for larger version

The DPRK does not have many railway crossings into China. From West to East: Sinuiju, Sakju, Manpho,  and Namyang.  Historically there were additional crossings at the Unbon Dam,  Hyesan, and Saepyol, but these do not appear to be used anymore.  Namyang is in the furthest reaches of North Hamgyong Province, so if Kim is going to cross into China by rail, he has to do so from Sinuiju, Sakju, or Manpho.  Coincidentally, he has a private railway station and secure residential compound near each of these border crossings–though the closest leadership compound and train station to Manpho is in nearby Kanggye and the closest compound to the Sakju Bridge is in Changsong County.

Given that the Sinuiju crossing is most convenient, it is a bit of a mystery why he chose to cross at Manpho when Sakju/Changsong is so much closer.  Maybe the Sakju/Changsong railway crossing is not as convenient for some unknown reason?  Maybe the “smaller” Kanggye leaderhip compound is more exclusive and Kim prefered hiding this trip from as many of his cohorts as he could?  Maybe the Changsong elite compound (which is also on the water) is also flooded?  I do not know the reason, but there has to be one…

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Chinese investment blurb

Monday, August 23rd, 2010

According to an article in the Korea Times:

Approximately 100 small Chinese companies out of 150 that have investments in North Korea are based in Jilin and Liaoning Provinces near the northeastern border with the North.

Read the full story here:
Investments in NK limit China’s policy choices
Korea Times
Kang Hyun-kyung
8/20/2010

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First half of 2010 sees record inter-Korean trade

Thursday, August 19th, 2010

Institute for Far Eastern Studies (IFES)
NK Brief No 10-08-19-1
8/19/2010

Despite the ongoing inter-Korean tensions, and the stand-off over the Cheonan incident in particular, the first two quarters of 2010 saw an all-time record of 980 million USD-worth of inter-Korean exchange. However, with the South Korean government ceasing all inter-Korean trade outside of the Kaesong Industrial Complex in reaction to the investigation results finding North Korea responsible for the sinking of the South Korean naval corvette Cheonan, cross-border trade between the North and South has fallen and is expected to remain approximately 30 percent lower during the second half of the year.

According to South Korean customs officials, inter-Korean trade in the first half of the year was worth 983.23 million USD, with ROK imports worth 430.48 million USD and exports worth 552.75 million USD; a 122.27 million USD trade surplus. This is a 52.4 percent rise over last year’s first two quarters of trade, worth 645 million USD. In the first six months of 2009, South Korea exported 259.91 million USD (66%)-worth of product, and imported 385.1 million USD (44%) in goods. This year’s trade volume was nearly 100 million USD higher than the previous record, set in 2008, of 884.97 million USD. It was also around six times more than the 161.63 million USD recorded in 1999, when inter-Korean trade first became significant.

In 1999, North-South trade totaled 328.65 million USD. Despite rocky inter-Korean relations at the time, cross-border trade continued to grow, and with the expansion of the Kaesong Industrial Complex and other projects, first topped one billion USD in 2005, squeezing above the marker at 1.08872 billion USD. This growth continued in the latter half of the decade, hitting nearly 1.38 billion USD in 2006, 1.795 billion USD in 2007, and 1.82 billion USD in 2008. Repercussions from the North’s second nuclear test in 2009 caused trade to fall off to 1.666 billion USD in 2009.

On May 24, the South Korean government announced that all inter-Korean trade outside of the Kaesong Industrial Complex would be halted due to North Korea’s sinking of the Cheonan. If this trade ban continues, cross-border trade during the second half of the year is expected to be down 30 percent. The inter-Korean project in Kaesong makes up 70 percent of inter-Korean trade, so that other individual projects add up to only about one third. It is the suspension of these projects that is lowering North-South exchanges by 30 percent.

Actually, there was a decline in trade during the first six months of the year. In June, exports totaled 56.88 million USD, while imports were worth 66.18 million USD (total: 123.06 USD). This is 21 percent (33.31 million USD) less than in May. Exports were down 4 percent and imports dropped by 32 percent. Compared to trade prior to the ROK government’s measures, the trade of electric and electronic goods, transportation, and other capital goods actually raised from 19.31 million USD to 21.21 million USD, while mined goods and other consumables dropped from 76.81 million USD to 36.86 million USD.

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Dandong launches DPRK trade program

Thursday, August 19th, 2010

According to Reuters:

A northeast Chinese border city that is a key portal with isolated neighbour North Korea has launched a pilot scheme to settle export deals in China’s yuan currency, the city’s official newspaper said on Thursday.

North Korea’s struggling economy has come under greater strain after a chaotic attempt to re-denominate its currency last year hurt private traders and alarmed Chinese merchants.

The yuan’s trial use appears intended to boost Chinese exporters’ confidence in doing more above-the-table deals with the North, often a perilous gamble even in smoother times.

Many Chinese traders doing business with the North already use the yuan, dollar, euro in cash or even barter to settle export of food, clothes, appliances and other cheap goods in often informal or convoluted transactions. Smuggling and illicit deals are common along the border, marked by the Yalu River, a few dozen metres (feet) wide in many parts.

The Dandong Daily reported that approved exporters in Dandong will be able officially to carry out business in yuan.

The Chinese government announced in June that all of its trading partners would be able to invoice and settle imports and exports in yuan, but so far such transactions have been primarily confined to trade between China and Hong Kong.

“This means that state-designated export businesses in Dandong that engage in external trade can use the renminbi to settle transactions,” said the Chinese-language Dandong Daily (www.ddrb.cn) of the scheme, which began on Wednesday.

The renminbi is another name for the yuan.

“This will reduce exchange rate risks and the costs of doing business, and smooth out enjoying export tax rebate policies, as well as improving capital utilisation,” said the report.

The scheme will also cover approved small-scale exports passing through customs posts at Dandong, it said.

The new scheme will allow exporters to enjoy rebates and other benefits for trade, but will also depend on North Korean importers being allowed to deal legally in yuan.

Dandong lies on the Yalu, and at night its neon-lit riverfront faces the darkness of the electricity-starved North.

North Korea’s dependence on Chinese goods and aid has deepened as Pyongyang’s ties with South Korea have frayed.

According to Chinese customs data, in the first six months of 2010, China’s trade with North Korea was worth $1.3 billion (835.6 million pounds), a rise of 15.2 percent on the same time last year.

China’s exports to the North grew by a quarter, but its imports fell by 4.8 percent, the customs data show. As much as 70-80 percent of that trade passed through Dandong, according to earlier Chinese news reports, citing local customs officials.

Read the full story here:
China city launches yuan trade scheme with North Korea
Retuers
8/19/2010

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DPRK asks Hungary to write off debt

Wednesday, August 18th, 2010

According to the Financial Times:

Hungary has revealed that it was asked by North Korea to write-off more than 90 per cent of its outstanding debt in the latest indication of the secretive totalitarian regime’s financial distress.

Hungary’s economy ministry told the Financial Times that North Korean negotiators had tabled the request in November 2008 during a meeting in Pyongyang.

“They asked [us] to take good consideration of the Democratic People’s Republic of Korea’s current economic difficulties and asked for cancellation of over 90 per cent of the total debt amount,” the ministry said.

The revelation follows a report in the FT last week that Pyongyang had asked the Czech Republic to write-off 95 per cent of its Kc186m ($10m) debt.

The cash-strapped totalitarian state offered to settle 5 per cent of the debt in ginseng, a root that is said to combat lethargy and impotence.

North Korea appears to be struggling to meet its financial obligations owing to the pressures of a moribund domestic economy and international trade sanctions imposed over its nuclear weapons programme.

Following the mysterious sinking of a South Korean warship in March, Washington vowed to further crack down on North Korea’s international financing, money laundering and narcotics operations.

Pyongyang’s outstanding debts are estimated at about $12bn, about two-thirds of which is owed to former communist states.

Its Hungarian debt emerged from a trade surplus between the two countries, mostly in the period before the fall of the Iron Curtain, an official said.

The total debt is 29.6m clearing roubles – an accounting unit used in the former Soviet Bloc.

Hungary said North Korea had agreed in principle to pay the debt in cash, with partial cancellation.

Details such as the clearing-rouble conversion rate and the size of the cancellation must still be settled, however.

Officials were unable to say when the negotiations would resume. Ginseng was not mentioned during previous talks.

Read the full sotry here:
Hungary reveals North Korean debt request
Financial Times
Chris Bryant
8/18/2010

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New Koguryo tombs discovered in Pyongyang

Monday, August 16th, 2010

According to the Choson Ilbo:

Academics from North Korea and Japan have unearthed a large tumulus from the Koguryo period in Pyongyang, providing valuable material for studying the history of ancient East Asia, Japan’s Kyodo news agency said Saturday. About 4.5 km away from the downtown Pyongyang, the tomb was discovered during construction work in Tongsan-dong, the Lelang District of the Koguryo era and is presumed to have been created around the 5th century.

According to the news agency, the mural paintings in the tomb show a man in horn-shaped headgear on horseback, a procession of men holding flags on armored horses, and warriors with swords. The antechamber and main chamber at the back are connected with a narrow passage, while the bones of a man and two women have been found in the back chamber. The tomb has some unique features, including the antechamber’s arched ceilings with three layers of triangular props and the mound created by piling up alternate layers of lime, charcoal and red clay to cover the stone chambers beneath, the report said. The mound is 35 m in diameter and 8 m high.

Pyongyang plans to register the tomb with UNESCO as a World Heritage site. Japanese scholars said the tomb’s murals are comparable to those of Tokhung-ri Tomb in Nampo, South Pyongan Province, which is included in the Complex of Koguryo Tombs inscribed in the World Heritage List in 2004.

The team also found relics offering a glimpse of how sophisticated Koguryo culture was, such as gold and silver ornaments, tiger-shaped pottery, bronze coins and nails for coffins. The celadon candlestick is the first of its kind to be excavated in the North, the report added.

The team consists of researchers with the Archaeological Institute of the North’s Academy of Social Sciences and Japanese scholars sent by Kyoto news agency including Prof. Masahiro Saotome, an archaeologist at the University of Tokyo, and Shigeo Aoki, a Cyber University professor specializing in the preservation of historic remains. Saotome said the tomb “was unearthed in an area where experts believed there would be no Koguryo mural tombs.”

Ahn Hwi-joon, a Korean art historian and professor emeritus at Seoul National University, echoed him saying, “It is the first time that Koguryo tomb murals have been unearthed in the area once controlled by the Chinese Han Dynasty Commander of Lelang. They are especially valuable as they were executed in the late fourth to the fifth centuries, immediately after Koguryo incorporated Lelang.”

Read the full story here:
N.Korean-Japanese Team Finds Koguryo Tomb in Pyongyang
Choson Ilbo
8/16/2010

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DPRK-PRC trade statistics

Monday, August 16th, 2010

According to the Daily NK:

Trade between North Korea and China for the first half of 2010 was $1.29 billion, a 16.8% increase over the corresponding period of last year.

Using Chinese customs statistics, the South Korean embassy in China revealed the details of Sino-North Korean trade on Monday. According to the statistics, North Korean exports to China fell by 1.1% in the same period to $350 million, while imports from China increased by 25.2% to $940 million.

As a result, North Korea’s trade deficit with China was $590 million, a 48.5% increase over the previous year.

According to the statistics, North Korea imported 140,000 tons of food, 300,000 tons of oil and 100,000 tons of fertilizer during the period. Notably, flour imports rose by 383%.

Reduced inter-Korean trade and other economic exchanges following the Cheonan sinking and reduced international humanitarian aid due to UN sanctions were two of the most significant causes of the burgeoning reliance upon China.

Read the full story here:
Sino-North Korean Trade Deficit Rises
Daily NK
8/16/2010

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Chongryon losing tax breaks

Friday, August 13th, 2010

According to Asahi:

The General Association of Korean Residents in Japan (Chongryon), the main pro-North Korea organization in Japan, is rapidly losing its tax-exempt status on facilities throughout the country.

On Wednesday, the government released the property tax collection practices for Chongryon-related facilities at 130 local governments throughout Japan.

According to officials of the Ministry of Internal Affairs and Communications, no local governments completely exempt Chongryon from paying property taxes on its facilities.

Kushiro in Hokkaido ended its total property tax exemption last fiscal year. It was the last community to grant Chongryon a complete tax exemption. The ministry began its annual surveys in fiscal 2005.

Other municipalities have also toughened property tax collection on Chongryon-related facilities.

Nagoya ended its partial exemption, while the cities of Kyoto, Okayama, Kiryu in Gunma Prefecture and Nishinomiya in Hyogo Prefecture, all effectively raised property taxes on Chongryon facilities.

There are now 94 local governments that no longer reduce property tax amounts for Chongryon facilities, while 30 still have a partial exemption. The remaining six local governments are reviewing their tax policies for the organization.

Local governments previously exempted property taxes on Chongryon’s headquarters and local chapters on the grounds that those facilities were of a public nature.

However, local governments began reviewing their practices after the Supreme Court declared a tax reduction measure by the Kumamoto city government illegal in November 2007.

Among other things, Chongryon serves as North Korea’s de facto embassy in Japan.

Read the full story here:
Pro-North Korea group losing tax breaks
Asahi Shimbun
8/13/2010

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ROK to allow civilian visit to DPRK for medical aid

Friday, August 13th, 2010

UPDATE: According to Yonhap:

A group of five South Koreans on Tuesday crossed the heavily armed border into North Korea, an official here said, delivering 400 million won (US$340,000) worth of anti-malaria aid despite tension between the divided states.

The crossing marked the first South Korean civilian visit to the communist state since Seoul banned trips to North Korea three months ago in protest over the sinking of a South Korean warship in March near their Yellow Sea border.

A doctor and four others, including two drivers, traveled to the North Korean border city of Kaesong on Tuesday morning, Unification Ministry spokesman Chun Hae-sung told reporters. The doctor was needed to explain to North Korean authorities how to use the aid kits, Chun said earlier this week.

ORIGINAL POST: According to Yonhap:

South Korea will allow a doctor to travel to North Korea next week in the first approval of a civilian visit on a humanitarian mission to the communist state since Seoul banned exchanges with Pyongyang in May over the sinking of a South Korean warship, an official said Friday.

The doctor, accompanied by two drivers, will visit the North Korean border town of Kaesong next Tuesday, Unification Ministry spokesman Chun Hae-sung told reporters in a briefing. The group is transporting 400 million won (US$336,100) worth of anti-malaria aid from a civilian relief group, Chun said.

“The doctor’s visit has been granted because he needs to explain to the North how to use the aid kits,” he said, adding any spread of malaria in the North has the potential to affect South Korean residents south of the border.

Read the full story here:
S. Korea to allow rare civilian visit to N. Korea amid tension
Yonhap
Sam Kim
8/13/2010

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