North Korean Economy Watch

Yonhap
10/15/2007

*View the UN report here

The number of North Korean women who have died while giving birth rose drastically in 2005 from five years earlier due to worsening health care conditions in the impoverished communist state, a report said Monday.

Maternal mortality rose to 370 per 100,000 births in 2005 from 67 in 2000, according to the report issued jointly by the United Nations Population Fund, UNICEF, the World Health Organization and the World Bank.

Although the rate is lower than the global average of 400 deaths per 100,000, it is 26 times higher than that of South Korea with the rate of 14 deaths per 100,000.

Sub-Saharan African countries have the highest maternal mortality rate of 900 per 100,000, followed by Southeast Asia’s 450 and East Mediterranean countries’ 420.

The comparable figures for the United States, the Western Pacific Ocean and Europe are 99, 82 and 27 respectively.

Blurb from report:

The MMR estimate for 2005 (370) was higher than the 2000 MMR (67). The predicted PMDF in 2005 was higher than in 2000, because the GDP estimate (in purchasing power parity) used in the 2005 model was approximately 75% lower than the estimate of US$ 14 996 used in the 2000 model.

I was doing some research this weekend for a paper I am writing, when I stumbled on the following stories from KCNA.  It seems that although President Clinton never made it to the DPRK before his term in office ended, his brother Roger Clinton (aka “US pop singer”) did.

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U.S. pop singer Roger Clinton and his party arrive
KCNA
12/2/1999

Pop singer Roger Clinton, brother of the U.S. president, and his party arrived here today to visit the DPRK on the invitation of the Korean Asia-Pacific Peace Committee. 

They were greeted at the airport by Ri Jong Hyok, vice chairman of the Korean Asia-Pacific Peace Committee, and Song Sok Hwan, vice-Minister of Culture.

U.S. pop singer Roger Clinton and his party enjoy concert
KCNA
12/4/2007

U.S. pop singer Roger Clinton and his party enjoyed a concert staged by the state symphony orchestra at the Moranbong Theatre Friday.

Among the audience were Ri Jong Hyok, vice-chairman of the Korean Asia-Pacific Peace Committee, Song Sok Hwan, vice-Minister of Culture, officials concerned and working people in the city.

The artistes of the state symphony orchestra staged the orchestral pieces “Arirang,” “Dear Home In My Native Place,” “Nostalgia,” “Bumper Harvest Has Visited Chongsan Field,” a piano concerto “Korea Is One,” and so on. 

U.S. pop singer Roger Clinton and his party visit Mangyongdae
KCNA
12/5/1999

U.S. pop singer Roger Clinton and his party visited Mangyongdae on December 3. 

They looked round historical relics with deep interest, hearing an explanation about how the President Kim Il Sung was born and spent his childhood there. 

They posed for a souvenir photo in front of the old home at Mangyongdae. 

They also visited the Tower of the Juche Idea, King Tangun’s Mausoleum and Pyongyang metro on the same day and the Mangyongdae Schoolchildren’s Palace on Saturday.

Kim Yong Sun meets pop singer Roger Clinton
KCNA
12/5/1999

Kim Yong Sun, chairman of the Korean Asia-Pacific Peace Committee, Saturday met and had a talk with U.S. pop singer Roger Clinton on a visit to the DPRK.

Present there was Ri Jong Hyok, vice-chairman of the Korean Asia-Pacific Peace Committee.

U.S. pop singer Roger Clinton performs in Pyongyang
KCNA
12/6/2007

A performance was given by U.S. pop singer Roger Clinton at the Ponghwa Art Theatre yesterday.

It was seen by Kim Yong Sun, chairman of the Korean Asia-Pacific Peace Committee, Ri Jong Hyok, vice-chairman of the committee, Mun Jae Chol, acting chairman of the Korean Society for Cultural Relations with Foreign Countries, Song Sok Hwan, vice-Minister of Culture, and artistes and Pyongyangites.

Roger Clinton and his party and Korean artistes took part in the performance.

Roger Clinton presented solo pieces and his party song, dance and male and female solos.

Korean artistes staged female concert, soprano, solo and dance and other pieces.

The performance ended with a chorus “Our Wish Is Reunification.”

Kim Yong Nam meets Roger Clinton
KCNA
12/7/1999

Kim Yong Nam, President of the presidium of the Supreme People’s Assembly of the DPRK, met and had a talk with U.S. pop singer Roger Clinton and his party at the Mansudae Assembly Hall today.

Present there was Ri Jong Hyok, vice-chairman of the Korean Asia-Pacific Peace Committee.

Roger Clinton said that it was an honor for him to visit Korea, expressing the belief that the visit would contribute to the improvement of the relations between the two countries.

Gift to Kim Jong Il from Roger Clinton
KCNA
12/7/2007

General Secretary Kim Jong Il received a gift from U.S. pop singer Roger Clinton on a visit to Korea. 

He handed it to Kim Yong Sun, chairman of the Korean Asia-Pacific Peace Committee.  

Roger Clinton and his party feted
KCNA
12/7/2007

The Korean Asia-Pacific Peace Committee (KAPPC) gave a reception for U.S. pop-singer Roger Clinton and his party on a visit to the DPRK at the Mokran House on Monday evening.

Present there were chairman Kim Yong Sun and vice-chairman Ri Jong Hyok of the KAPPC, vice-Minister of Culture Song Sok Hwan and other officials concerned.

Vice-chairman Ri Jong Hyok in his speech said Roger Clinton has staged music and conducted social activities, adding that he is well known among the pop-music circles for presenting many lively and optimistic songs in different countries and regions of the world.

Noting that Roger Clinton and his party gave a successful performance in Pyongyang, he hoped that they would find their stay in Korea pleasant and joyful.

Roger Clinton in his speech expressed thanks to General Secretary Kim Jong Il and the KAPPC and the Korean people for providing him with an opportunity to visit the DPRK and give a performance.

He said the performance tour this time offered an important occasion, adding that all of them should make positive efforts for peace in the future, too.

An art performance was given during the reception.

Roger Clinton interviewed by KCNA
KCNA
12/9/2007

American pop singer Roger Clinton was interviewed by KCNA at Pyongyang Airport before his departure from here Wednesday.

Giving his impressions of Pyongyang, he said it looked very positive and very much peaceful.

He continued:

From the artistic viewpoint, the talented Koreans that I saw here can perform any art of the world. They are as talented people as I have ever seen. But more specific is that children here are the most talented children that I have ever seen.

They performed music and dance, just general art work.

Really, the children are brilliant.

If there is something that I like to say to the Koreans freely, one must claim, I’ll be back.

I promise to convey all of my feelings, all of my lessons and all the information I have got from brave people to our people and to my brother.

At earlier press interviews he said that he was proud of having performed in Pyongyang, and this was great generosity that the Korean people and the government granted to him.

He thanked Marshal Kim Jong Il for the generosity.

He hoped that his visit would be helpful to the improvement of the U.S.-DPRK relations.

Roger Clinton and his party leave
KCNA
12/8/2007

U.S. pop singer Roger Clinton and his party left today after concluding their Korean visit at the invitation of the Korean Asia-Pacific Peace Committee (KAPPC).

They were seen off at the airport by Ri Jong Hyok, vice-chairman of the KAPPC, and Song Sok Hwan, vice-Minister of Culture.

Before their departure, they hosted a reception at Pyongyang Koryo Hotel Tuesday evening in connection with their Korea visit.

Korea Times
Yoon Won-sup
10/11/2007

The United States is considering setting up a representative office in Pyongyang as a diplomatic mission, according to a report Wednesday.

Radio Free Asia said the United States will set up a diplomatic mission in Pyongyang, and its form would most likely be a representative office, not a liaison office or an embassy.

The U.S.-based media quoted a source as saying that the U.S. government and Congress are discussing the level of a diplomatic mission in Pyongyang, which will depend on progress in North Korea’s dismantlement of its nuclear weapons program.

Washington reportedly plans to remove North Korea off its list of terror-sponsoring states this year after North Korea disables its nuclear facilities and declares all its nuclear weapons programs. After the removal, the United States will likely begin the process of normalizing relations with North Korea, according to the report.

Experts showed optimism on the moves to normalize relations with North Korea.

A U.S. official who worked on the creation of a diplomatic mission in Pyongyang in 1994 told the radio station that it would be good for Washington to have representation in North Korea in order to understand it.

The official stressed that the absence of a mission may lead the United States to make policy based on wrong information.

However, the experts agreed that the prerequisite for the diplomatic mission was the denuclearization of North Korea.

“It is not so meaningful a debate to discuss whether to set up a representative- or embassy-level mission in Pyongyang because there will be a U.S. Embassy in the end,” a senior Korean government official said. “But the more important thing is that North Korea moves toward denuclearization for this to be realized.”

The United States promised to establish full diplomatic relations with North Korea, depending on North Korea’s actions toward denuclearization on the Oct. 3 agreement reached at six-party talks involving the two Koreas, the United States, China, Russia and Japan.

U.S.-North Korea relations have recently been improving. In early September, Christopher Hill, the top U.S. negotiator to the talks, had a successful meeting with his North Korean counterpart Kim Kye-gwan in Geneva on the normalization of relations.

BBC
10/9/2007

Japan has extended economic sanctions on North Korea, citing a lack of progress in a row over Japanese nationals abducted by Pyongyang.

The measures – which ban imports from North Korea and visits by its ships – will continue for another six months.

A top official said Japan was seeking advances on both the abduction and nuclear issues.

The move comes exactly a year after North Korea carried out its first nuclear test, on 9 October 2006.

Since then, Pyongyang has agreed to end its nuclear programme in return for millions of dollars worth of aid.

It has closed its main Yongbyon reactor and last week committed to a timetable for disclosing and dismantling all its nuclear facilities by the end of the year.

Later this week, a US-led team of experts are due to visit North Korea, where they will begin supervising the process of dismantling its nuclear installations.

‘No progress’

Japan is one of the five countries involved in the nuclear deal with North Korea.

But a major sticking point in the bilateral relationship has been the issue of Japanese citizens abducted by Pyongyang in the late 1970s and early 1980s to train spies.

“We saw the need to extend the sanctions because there has been no progress over the abduction issue,” Chief Cabinet Secretary Nobutaka Machimura told journalists after the move was agreed at a Cabinet meeting.

North Korea admitted in 2002 that it had kidnapped 13 Japanese nationals. It has returned five of them and says the remaining eight are dead. It says the issue has now been resolved.

But Japan wants concrete proof of the deaths and believes that several more of its citizens were taken. There is huge public concern over the issue in Japan.

Talks in Mongolia last month aimed at resolving the dispute came to nothing.

The abduction row was not the only factor behind the decision, Mr Machimura said.

“We also took into comprehensive consideration the overall situation involving North Korea, including the nuclear issue,” he said.

A foreign ministry official told the Associated Press news agency that Japan wanted to see concrete steps from Pyongyang towards disabling its nuclear programme.

The sanctions – imposed last October after North Korea’s nuclear test – prevent visits by the Mangyongbong-92 ferry, the only direct link between the two countries, and ban imports from the impoverished nation.

They have now been extended until 13 April, officials said. The decision needs the endorsement of parliament, but the opposition have already agreed to the step.

Joong Ang Daily
10/8/2007

Representatives of the New York Philharmonic were set to arrive over the weekend in North Korea to discuss the possibility of a history-making performance in the communist nation.

Philharmonic President Zarin Mehta and public relations director Eric Latzky said they planned to explore venues and other arrangements for a potential February concert in Pyongyang.

“It’s a country that none of us have ever dreamed of going to. The next three or four days are going to be very eye-opening for us,” Mehta said by telephone Thursday from Beijing.

He and Latzky said they were embarking on the discussions with United States government support. A State Department official was accompanying the Philharmonic representatives on the trip.

“In as much as this is something that both sides are interested in exploring, we will do what we can to facilitate it,” said State Department spokesman Sean McCormack.

Relations between the United States and North Korea have been tense for years. President George W. Bush once branded the country part of an “axis of evil” along with Iran and Iraq under Saddam Hussein.

But after North Korea tested a nuclear bomb last October, the U.S. softened its policy to facilitate progress on the North’s disarmament.

This week, the North pledged arms talks with Washington and other regional powers to disable its main nuclear facilities and declare all its programs by the year’s end.

Latzky said orchestra representatives had spoken with U.S. Assistant Secretary of State Christopher Hill last month about the potential concert, and he was “very encouraging,” The New York Times reported Friday.

North Korea’s Ministry of Culture sent the renowned orchestra an invitation in August.

The Philharmonic has played in South Korea, as well as in other parts of Asia.

Korea Times
Andrei Lankov
10/7/2007

The Chinese-Korean border is easy to cross, and it is clear that numbers of the defectors are kept small only by security measures undertaken by the North Korean side. However, the story of the region is essentially the story of the cross-border movement. Technically, the narrow Tumen and relatively broad Yalu divide the territories of two different countries. However, both banks of the Tumen are inhabited by the Koreans, and for large part of the last century neither state was either willing or able to control the border completely. It has been porous for decades, and in a sense it remains porous nowadays. The cross-border migration, legal or otherwise, has never stopped completely.

It might sound strange now, but until the late 1970s North Korea was seen by the Chinese as a land of relative prosperity, so the refugee flow moved from China to Korea. In the 1960s many ethnic Koreans fled the famine and the madness of the “cultural revolution,” looking for a refuge in Kim’s country. There, at least, people were certain to receive 700 grams of corn every day. Many of those early refugees eventually moved back, but only a handful were persecuted by the Chinese authorities. In most cases the returned migrants just resumed the work at the factories and people’s communes where they had worked before their escape. This movement was large, it involved few ten thousand people at least, and many of those people were saved by their sojourn in North Korea.

This episode, not widely known outside the area, is still well remembered by the Chinese. Many of my interlocutors explained their willingness to help the North Korean refugees in the following way: “When life was harsh here, they helped us. Now it is our turn.”

The Chinese border protection system has always been quite lax, but from the 1970s North Korean authorities have tried to the keep border tightly controlled. However, all their efforts could not prevent a massive exodus of the North Koreans, which began around 1995.

In those years North Korea was struck by a disastrous famine which led to massive deaths. The number of its victims has been estimated at between 250,000 and 3,000,000 with 600-900,000 being probably the most reliable figure so far. The northern parts of the country, adjacent to the border, were the hardest hit.

So it comes as no surprise that many North Koreans illegally moved across the border to find work and refuge in China. Around 1999 when the famine reached its height the number of such people reached an estimated 200-300,000.

This movement was not authorized, but from around 1996 Pyongyang authorities ceased to apply harsh penalties to the border-crossers. Until that time, an attempted escape to China would land you a prison for years. From the late 1990s, an escape to China was treated as a minor offence. It is even possible that the North Korean authorities deliberately turned a blind eye on the defectors: after all, people who moved to China were not to be fed, and also, being most active and adventurous those people would probably become trouble-makers had they been forced to stay in North Korea.

A vast majority of those refugees stayed in the borderland area where one can survive without any command of Chinese (the ethnic Koreans form some 35% of the population, and Korean villages are common). The refugees took up odd jobs, becoming construction workers, farm hands, waitresses and cooks in small restaurants. The authorities hunted them down and deported them back to North Korea, but generally without much enthusiasm, since both low-level officials and population by and large was sympathetic to the refugees’ plight. The older Chinese know only too well what it means to suffer from famine.

Most of the refugees were women, some of whom married the local farmers – usually those who would not find a wife otherwise. In most cases it means that they were paired with drunkards, drug addicts or gamblers, but in some cases their partners were merely dirt-poor farmers. These marriages were not usually recognized by Chinese law since these women, technically speaking, did not exist. In some cases, they saved enough money to bribe the officials and had a Chinese citizen ID issued. If this happened, a refugee woman changed her identity, becoming a Chinese national.

Nowadays, the refugees’ number has shrunk considerably, even though old figures are often uncritically cited by the world media. Nowadays, people in the know believed that between 30-50,000 North Koreans are hiding in China.

Why did their numbers go down recently? There are few reasons for that. To start with, a remarkable improvement of the domestic situation in North Korea played a role, but most people with whom I talked to in China in July agreed that the major reason for this change is the revival of the North Korean border security in recent few years. Until 2004 or so, North Korean authorities usually turned a blind eye to mass exodus of their people to China. Now their position has changed. They understand that the border serves as a major conduit for unauthorized information about the outside world, and now this information is becoming dangerous. They also believe that the famine is over, so people can be fed if they stay in North Korea. So, it seems that the era of large-scale illegal migration is over. Nonetheless, history of the region indicates that this movement is unlikely to ever be stopped completely.

Asia Times
Ting-I Tsai
10/6/2007

Business in Changbai county of Jilin province in northeast China is booming. The area, which faces North Korea’s Hyesan City across the Yalu River, has seen its exports rise 28.5% year-on-year in the first eight months of this year, the beneficiary of logjams created by China’s brisk trade with North Korea further downstream to Dandong – the busiest border city in northeast China bordering North Korea’s Shinuiju across the Yalu River.

As ice is melting between North Korea and the United States, more and more Chinese businessmen have been rushing to the border with the secretive communist country, looking to cash in on its trade and investment potential.

“Traffic across the river has been so busy,” said Han Lihsin, who founded a China-Korea trade website to promote business with China’s reclusive neighbor in April last year. “It is not only trucks from China that have to line up to go through customs, North Koreans have also sent their own trucks to pick up goods.”

According to statistics from Chinese Customs, bilateral trade between North Korea and China reached US$1.7 billion in 2006, a 7.58% increase over the previous year. It has grown another 16.7% in the first eight months of this year to $1.25 billion. Chinese investment in North Korea, meanwhile, had reached $38 million by the end of 2006.

China’s main exports include agricultural products, consumer electronics, textiles and fuel, but North Korean traders are taking advantage of the Internet to diversify their purchases. On China’s business promotion websites, buyers claiming to be from North Korea are asking for items as varied as wine coolers, necklaces, leather suitcases, soybean oil, pencil cases and “plastic containers for aromas or perfume”.

Whether North Koreans now have more money and are able to consume more remains a hotly debated issue among Chinese traders. But they agree that North Korean customers are now more sensitive to product quality and brands. “It’s not just about being cheap anymore. Products are required to be affordable with guaranteed quality,” said Tang Fuyou, manager of Dandong-based Tigereye62.com.

To overcome North Korean customers’ resistance to Chinese products, Tang says suppliers now market products with brand names and descriptions printed in English on the packaging. Small “Made in China” markings are placed in unobtrusive spots. “That way, goods can be sold for good prices,” he said, adding that South Korean and Japanese products are still too expensive for North Koreans.

Used televisions, washing machines, refrigerators and air conditioners are at the top of North Korean shopping lists. Hoping to ride the wave of this new demand for big-ticket household goods, China’s leading home appliance exporter Haier has reportedly been operating across the border since January of this year.

Traders aren’t the only ones looking to profit from North Korea. Burdened by soaring labor costs and high land prices, Chinese businessmen are finding this virgin territory to be a potential paradise.

Xu You, chairman of the Changbai-based China-North Korea investment association, suggested that his joint-venture wood factory pays 10 yuan (US$1.3) per month to its North Korean workers. Trader Wang Wei, whose Hsienhe pharmaceutical manufacturing company is planning to build a new factory in North Korea’s Nanpo, suggested that monthly salaries there average about 50 yuan.

Ambitious North Korean officials might not appreciate the intricacies of capitalist operations, but they have skillfully extended their networks for soliciting investment by touting the country’s advantages of cheap land and labor. North Korean websites based in China are advertising a broad range of investment opportunities, including in the areas of energy, restaurants and hotels, agriculture, mining, manufacturing and general infrastructure.

Among the approximately 100 projects circulating on these websites, hotels and electricity generation seem to be particular targets. One calls for a $30-45 million investment in Pyongyang’s yet finished tallest building, the Ryugyong Hotel, while another requires a $50-60 million investment for the Taedong-gang Hotel. Stakes in expansions of fuel-fired power plants are being offered for $100-200 million, and, hoping to take advantage of green energy, projects to develop wind and solar power also appear but minus a price tag.

As for manufacturing, projects to make elevators, freezers, electronic watches, shoes, sewing machines and even disposable diapers all require foreign investments in the form of machines, technology and raw materials.

At the urging of North Korean officials, investors Xu and Wang are now involved in pitching investments south of the Yalu to other Chinese prospects. According to Wang, Pearl River delta-based Chinese businessmen have expressed the most interest in relocating their factories, with 30 to 50 investment projects currently under negotiation.

Among those still concerned about the high uncertainty of operating in North Korea, some have chosen to set up an office in Pyongyang and bide their time until a timely opportunity emerges.

Aware of the growing significance of the bilateral commercial relationship, China’s central government and three provinces near the North Korean border – Liaoning, Jilin and Heilongjiang – have all made efforts to boost bilateral cooperation.

In March 2005, Chinese Premier Wen Jiabao signed an investment-protection agreement with his North Korean counterpart, and the two nations inked five bilateral economic cooperation agreements between 2002 and 2005. During North Korean leader Kim Jong-il’s visit to China in January 2006, Wen introduced new economic-cooperation guidelines.

In July of this year, Chinese Foreign Minister Yang Jiechi noted during his three-day visit to Pyongyang that economic cooperation was an important part of China’s relations with the North, and said China would continue to promote cooperation by following the previous agreements and guidelines.

Provincial governments, meanwhile, have been promoting cross-border trade by attending and holding trade shows and building new trade zones. Jilin’s Hunchun, Jian and Tumen are the cities along the North Korean border most aggressively pursuing free-trade zones that would allow visa-free access and offer duty-free facilities.

North Korea introduced economic reforms in 2002, but with embargoes imposed by the United States and Japan and Pyongyang’s economic conservatism, the reforms have accomplished little and the economy continues to struggle. In an acknowledgement of those problems, Dear Leader Kim Jong-il in January of reportedly vowed to make 2007 North Korea’s economic development year.

Tang, the Chinese businessman operating in Dandong, noted that his company is about to be appointed by North Korea’s trade authority to assist the operations of some 200 North Korean companies in China. He believes, however, that patience is required when dealing with the communist, reclusive nation.

“Even when North Korea and the US normalize their relationship, more time will be needed for economic reform,” he said, “Chaos would follow if the system is transformed too quickly.”

AP
10/5/2007

A group of North Korean diplomats got a secret tour of Washington last month, seeing the White House and driving past the Pentagon, the Chicago Tribune reported on its website Friday.

But the 16 North Korean diplomats and their families posted to the United Nations and normally not allowed to travel outside New York were not all that impressed on their September 8 visit, which the Tribune called “unprecedented.”

“They were like, ‘Is that all?’ when they stopped at the White House, Fred Carriere, executive director of the Korea Society and one of the group’s tour escorts, told the newspaper.

The visit came as Washington begun acknowledging Pyongyang’s progress on meeting its commitments to move toward nuclear disarmament.

The Tribune said the North Koreans came to Washington with the approval of Christopher Hill, the senior US diplomat in charge of negotiating the North Korean nuclear disarmament deal under the six-party framework.

Because the two countries do not have diplomatic relations and have remained technically at war since the 1950-53 Korean War, Pyongyang’s diplomats are normally confined to a 40 kilometer (25 mile) radius from Manhattan, where the United Nations is located.

Carriere told the Tribune that the North Koreans also visited the Lincoln Memorial landmark in central Washington, where they demonstrated their knowledge of US history.

One pointed to the Lincoln quote inscribed on the memorial wall asserting that all men are created equal and said: “But we understand he had slaves,” Carriere said.

The Tribune reported that in another sign of warming relations, representatives of the New York Philharmonic were to travel to Pyongyang this week to arrange a visit there by the United States’ most prominent orchestra.

Associated Press (Via the New York Times)
10/3/2007

North Korea will provide a complete list of its nuclear programs and disable its facilities at its main reactor complex by Dec. 31, actions that will be overseen by a U.S.-led team, the six nations involved in disarmament talks said Wednesday.

Chinese Vice Foreign Minister Wu Dawei said that as part of the agreement, Washington will lead an expert group to Pyongyang ”within the next two weeks to prepare for disablement” and will fund those initial activities.

”The disablement of the five megawatt experimental reactor at Yongbyon, the reprocessing plant at Yongbyon and the nuclear fuel rod fabrication facility at Yongbyon will be completed by 31 December 2007,” said Wu, who read the statement from the six nations to reporters, but did not take any questions.

The Bush administration welcomed the agreement, calling it significant progress.

”These second-phase actions effectively end the DPRK’s production of plutonium — a major step towards the goal of achieving the verifiable denuclearization of the Korean Peninsula,” said Gordon Johndroe, spokesman for the White House’s National Security Council.

The complex at Yongbyon has been at the center of North Korea’s nuclear weapons programs for decades and is believed to have produced the nuclear device Pyongyang detonated a year ago to prove its long-suspected nuclear capability.

Since then, Pyongyang rejoined the six-nation disarmament negotiations that involve the United States, China, Japan, Russia and South Korea as well as North Korea. Under a broad agreement reached in February, North Korea pledged to disable its nuclear programs in return for 1 million tons of heavy fuel oil or other assistance.

Wednesday’s statement outlines the next steps in the February deal. Although negotiators tentatively agreed on the statement Sunday after four days of talks, it was forwarded to their capitals for approval, leading to a delay in its public release.

The statement also said the U.S. and North Korea will ”increase bilateral exchanges and enhance mutual trust” but did not set a specific timetable for when Washington will remove Pyongyang from a list of countries that sponsor terrorism — a key North Korean demand. Arrangements will be made in future meetings between the two on normalizing their relations, the statement said.

In addition, the statement reiterated the five other countries’ commitment to deliver the fuel oil and other energy and economic assistance as spelled out in the February deal.

Shortly after Wednesday’s deal was announced, however, Japan said it would not provide aid to North Korea or lift its economic sanctions against the country because of a dispute over North Korea’s past abductions of Japanese citizens.

”There will be no immediate action from Japan. We will wait to see what North Korea does next,” Foreign Minister Masahiko Komura said. ”Japan’s policy remains unchanged. We will consider aid once we see progress on the abductions issue.”

Tokyo wants Pyongyang to account for its abduction of Japanese nationals in the 1970s and 1980s — a main sticking point for the two countries, which have no diplomatic ties.

Institute for Far Eastern Studies
NK Brief No. 07-10-2-1

DPRK-U.S. RELATIONS
North Korean and U.S. officials kicked off the month of September with meetings held in Geneva on the 1st~2nd. The bilateral talks focused on how to implement the February 13 agreement. After two days of talks, U.S. Assistant Secretary of State Christopher Hill stated he is “convinced” the North will disable nuclear programs by year’s end, a timeline offered by the DPRK negotiators. North Korean press reported that the DPRK would be removed from the U.S. terrorism roster and sanctions imposed under the Trading with the Enemy Act would be lifted in return.

On September 7, Hill announced that North Korea had invited nuclear experts from the United States, Russia, and China to the DPRK in order to survey nuclear facilities and recommend dismantlement plans. The experts examined North Korean nuclear sites from September 11 to September 16.

On the same day, U.S. President Bush stated Washington would consider a peace treaty with North Korea in return for the North’s abandonment of nuclear arms.

On September 17 it was reported that North Korea had admitted that it had earlier procured materials needed to build uranium enrichment centrifuges. The admission regarded the import of 150 tons of hard aluminum pipes, enough for 2,600 centrifugal separators.

On September 20, the DPRK was removed from Washington’s list of countries producing illegal drugs. The North was added to the list in 2003.

On September 28, U.S. President Bush authorized 25 million USD worth of energy aid for North Korea. These funds could be used to provide the DPRK 50,000 metric tons of heavy fuel oil, equal to the amounts provided by China and South Korea as part of the February 13 agreement.

DPRK-JAPAN RELATIONS
Two days of talks between North Korean and Japanese diplomats began on September 5 in Mongolia, with both sides expressing confidence that there would be progress. Wartime compensation issues were discussed, although Japan continued to link normalization of relations with kidnapping issues.

Following the talks, North Korea stated that kidnapping issues were resolved with Japan, while Japan stated that both sides reiterated existing positions. On the same day, Japan rejected a DPRK request to allow North Korean ships to dock in Japan in order to pick up aid for flood victims.

On September 30, Chief Cabinet Secretary Nobutaka Machimura said Japanese economic sanctions on North Korea would be extended for another six months due to “basically no progress” on abduction issues.

DPRK-SYRIA ARMS COOPERATION
Reports began coming out of Israel in early September that reconnaissance flights over Syria had taken pictures of North Korean nuclear supplies and materials. Following Israeli air strikes, it was reported that Special Forces had entered Syria and confiscated material that appeared to be of DPRK origin. Conflicting reports stated that the facilities struck were missile storage facilities, rather than of a nuclear nature. North Korea has denied any nuclear cooperation with Syria.

DPRK-UAE RELATIONS
North Korea established ambassador-level diplomatic ties with the United Arab Emirates on September 18. A joint statement said the two countries aim to “enhance understanding and boost the links of friendship and cooperation between their two peoples.” Ties with such an oil-rich nation on friendly terms with Washington could be significant as the North moves to dismantle nuclear facilities.

ROK-DPRK ECONOMIC COOPERATION
It was reported on September 4 that stock prices of South Korean companies engaging in inter-Korean economic cooperation have shot up on news that the DPRK will dismantle nuclear programs. This includes not only those companies operating in the Kaesong Industrial Complex, but also firms involved in providing electricity and other projects planned in exchange for the North’s denuclearization.

On September 20 it was announced that the ROK government plans to request a 50 percent increase for inter-Korean cooperative projects in next year’s budget. The Ministry of Planning and Budget will request 822 million USD for cross-border projects, as well as 580 million USD for humanitarian assistance.

On September 27, it was reported that the ROK government was reviewing a proposal to jointly develop Nampo, Haeju, Najin, Sunbong, Wonsan, and Shinuiju. The North has requested development of heavy industries, while South Korea seeks cooperation on light industrial projects.

SIX-PARTY TALKS
The latest round of six-party talks opened in Beijing on September 27, with both the U.S. and DPRK negotiators promising progress. On September 30, talks were ended to allow delegates to return to their home countries to work on a ‘nuts and bolts’ joint statement. U.S. delegate Hill stated the delegates were close to agreeing on a definition of facilities, and that the proposed joint statement was very detailed. Before returning to Pyongyang, Kim Kye-gwan was quoted as saying that the North can report nuclear programs, but will not declare nuclear weapons by the end of the year. An ROK official stated that the North’s position was acceptable to Seoul. Negotiators are also thought to have agreed to begin removal of ten core devices from three nuclear facilities beginning in November. The joint statement is scheduled for release on October 2.

DPRK FLOODING
Acting UN Coordinator to the DPRK Jean-Pierre de Margerie stated on September 3, “The level of damage to infrastructure, to communications, to crops, to farmland and to households, is considerable,” but also pointed out, “The [DPRK] government has improved its level of cooperation by giving us unprecedented access to the field to conduct our assessments of the damage.”

ESPIONAGE IN THE DPRK
Li Su-Gil, spokesman for the DPRK National Security Service, reported on September 5 that several foreigners had been arrested along with a number of DPRK citizens accused of spying for a foreign country; Specifically, for having “collected official documents and information on the DPRK’s important military facilities, and spread the idea of so-called democracy and freedom to the people.” The identities and nationalities of those arrested were not revealed.