Archive for July, 2009

Pyonghwa Motors repatriates profit…wow.

Wednesday, July 15th, 2009

According to Yonhap:

A South Korean automaker operating in North Korea said Wednesday it has posted its first net profit and remitted part of it home, the first southbound money transfer by an inter-Korean venture.

Pyeonghwa Motors Corp. made a net profit of US$700,000 for the fiscal year ending in February and sent $500,000 to its headquarters in Seoul via a bank account in Hong Kong, its spokesman Roh Byoung-chun said.

The automaker began production in 2002 as a joint venture between North Korea and the Unification Church of South Korean Rev. Moon Sun-myung, who was born in the North. Its plant in Pyongyang produces sedans and small buses with some 340 employees, and its customers are mostly local businesses.

Roh said it took a while for North Korea to approve the remittance, which was made through a South Korean lender, Woori Bank, in Hong Kong in late May.

“For North Korea, $500,000 is a large sum of money. It is not used to the capitalist idea of making investments and retrieving profits. We believe they pondered deeply before giving approval,” he said.

Pyeonghwa sold 652 units last year, while North Korea took $200,000 for its 30 percent share in the venture, he said. The company says profits are picking up, with this year’s sales already surpassing 740.

North Korea’s own automaker, Sungri Motor, was established in 1958 and mostly produces cargo trucks.

Pyeonghwa’s production is not influenced by political tensions or South Korea’s ban on cross-border shipments, he said, as raw materials and parts are imported from Europe and China. The ban was enforced after North’s rocket launch in April, with the exception of goods going to a joint industrial complex in the North’s border town of Kaesong, where 109 South Korean small firms operate.

“The remittance is symbolic. They are having a hard time in Kaesong, and many went bankrupt in Mount Kumgang (the North Korean tourist resort),” Roh said. “We hope this can bring hope to people doing business in North Korea that anyone can go there and can bring back profits.”

Officials from the South Korean Unification Ministry said inbound money transfers from North Korea are not restricted, although outbound remittances are strictly monitored and prohibited in some cases. It is the first time a South Korean company has sent profits from sales in North Korea, they said. Other businesses investing in North Korea, including those operating in the Kaesong park, sell their goods in South Korea and elsewhere.

South Korea has put three North Korean firms, including a bank, on its blacklist under a U.N. resolution that bans financial transactions with North Korean entities suspected of aiding the country’s nuclear and missile development.

Read the full artilce below:
S. Korean automaker in Pyongyang sends first business profit home
Yonhap
Kim Hyun
7/15/2009

According to the Wall Street Journal:

The Pyeonghwa spokesman didn’t disclose revenue figures but said last year’s vehicle sales were just over twice the 2007 level. The company has already sold more cars this year, 742, and expects to sell more than 1,500 for the full year, the spokesman said.

The performance is the culmination of an 18-year effort that began when church founder Rev. Moon Sun-myung met North Korea’s then-ruler Kim Il Sung in Pyongyang to propose several business ventures. In 1999, the church spent $55 million to build the auto factory in the port city of Nampo, on North Korea’s west coast. The Unification Church, based in South Korea, has a number of investments in tourism, construction and trade.

Since completing the factory in 2002, Pyeonghwa has imported partially built cars, in a form called knockdown kits, from manufacturers such as Italy’s Fiat SpA and China’s Brilliance Automotive Holdings Ltd.

Pyeonghwa completes the cars and puts its own nameplate and brand names on them. In 2003, its first full year of operation, the company sold 316 cars.

North Korea’s government is a partner in the company and took about 30% of the profit.

When it first started production, the company touted North Korean dictator Kim Jong Il’s role in naming several cars. One sport-utility vehicle, built from the design of Fiat’s Doblo model, was named by Mr. Kim as the Ppeokkugi, or Cuckoo.

Pyeonghwa, like other companies that do business in North Korea, faced enormous difficulty moving its money out of the country. Many Chinese businesses resort to buying commodities in North Korea with their profits, then exporting them to China to be sold for Chinese currency.

The motor company worked from February to May to move its money from North Korea, seeking permission from the North’s central bank, the spokesman said.

Read the full article below:
Pyeonghwa Sells in North Korea
Wall Street Journal
Sungha Park
7/16/2009

Read other Pyonghwa stories here.

Here is the location of Pyonghwa’s factory near Nampo.

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Pyongyang Strikes Back: North Korean Policies of 2002–08 and Attempts to Reverse “De-Stalinization from Below”

Wednesday, July 15th, 2009

Andrei Lankov
Asia Policy 8, July 2009
The National Bureau of Asian Research

Download the article (PDF) here. 

Executive Summary
This article explains why the North Korean government has attempted to reassert state control over society—which had been eroding from 1994–2002—and offers predictions regarding the impact that this shift will likely have on North Korean society.

Main Argument
From 1994 to 2002 North Korean society changed tremendously: state-run industry collapsed, the rationing system ceased to function, and free-market activity, though still technically illegal or semi-legal, became most citizen’s major source of income. Although not initiated by the government, in 2002 some of these spontaneous changes won the belated and conditional approval of the regime.

The evidence emerging in the last three to four years demonstrates, however, that the North Korean government has chosen not to tolerate those changes. This policy of recrudescence, while economically self-destructive, makes political sense because the existence of an affluent and free South Korea makes North Korea far more insecure. The leadership in Pyongyang has reason to believe that any domestic liberal reform in North Korea would lead to a regime collapse.

Policy Implications
1. Pyongyang’s decision to reject reformist policies is based on a rational and well-informed assessment of North Korea’s domestic and international situation. Therefore, the outside world can do very little to influence the regime’s position, and thus there is no chance of meaningful reform in North Korea in the foreseeable future as long as the current regime remains in power.

2. Because the current policy makes sustainable economic growth impossible, the North Korean government will need to rely on stratagems to secure vital foreign aid, with the U.S. being one of the main (but not only) targets of these maneuvers. The “North Korean problem” will remain a part of the international landscape in the foreseeable future.

3. If the current attempt by the government at counter-reform fails, this failure will create additional avenues for influencing the North Korean government from within.

Download the article (PDF) here. 

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North Korea’s Merchant Marine fleet

Wednesday, July 15th, 2009

From the CIA library:

Merchant marine may be defined as all ships engaged in the carriage of goods; or all commercial vessels (as opposed to all nonmilitary ships), which excludes tugs, fishing vessels, offshore oil rigs, etc. This entry contains information in four fields – total, ships by type, foreign-owned, and registered in other countries.

Total includes the number of ships (1,000 GRT or over), total DWT for those ships, and total GRT for those ships. DWT or dead weight tonnage is the total weight of cargo, plus bunkers, stores, etc., that a ship can carry when immersed to the appropriate load line. GRT or gross register tonnage is a figure obtained by measuring the entire sheltered volume of a ship available for cargo and passengers and converting it to tons on the basis of 100 cubic feet per ton; there is no stable relationship between GRT and DWT.

Ships by type includes a listing of barge carriers, bulk cargo ships, cargo ships, chemical tankers, combination bulk carriers, combination ore/oil carriers, container ships, liquefied gas tankers, livestock carriers, multifunctional large-load carriers, petroleum tankers, passenger ships, passenger/cargo ships, railcar carriers, refrigerated cargo ships, roll-on/roll-off cargo ships, short-sea passenger ships, specialized tankers, and vehicle carriers.

Foreign-owned are ships that fly the flag of one country but belong to owners in another.

Registered in other countries are ships that belong to owners in one country but fly the flag of another.

North Korea
Total: 167
By type: bulk carrier 11, cargo 121, carrier 1, chemical tanker 4, container 3, passenger/cargo 3, petroleum tanker 19, refrigerated cargo 4, roll on/roll off 1
Foreign-owned: 19 (Egypt 1, Greece 1, Lebanon 1, Lithuania 1, Romania 4, Syria 1, UAE 8, Yemen 2)
Registered in other countries: 2 (Mongolia 1, Panama 1) (2008)

South Korea
Total: 812
By type: bulk carrier 212, cargo 226, carrier 2, chemical tanker 133, container 80, liquefied gas 33, passenger 5, passenger/cargo 26, petroleum tanker 61, refrigerated cargo 16, roll on/roll off 9, specialized tanker 4, vehicle carrier 5
Foreign-owned: 31 (China 1, Japan 20, Norway 2, UK 1, US 7)
Registered in other countries: 363 (Belize 1, Cambodia 22, China 1, Cyprus 1, Honduras 6, Hong Kong 3, Kiribati 2, Liberia 3, Malta 2, Marshall Islands 10, Mongolia 1, Netherlands 1, Panama 303, Russia 1, Singapore 3, Tuvalu 1, unknown 2) (2008)

See a thorough study the the DPRK’s merchant fleet here.

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Direct flights planned between Pyongyang and Shanghai

Monday, July 13th, 2009

By Michael Rank

Direct flights are planned between Pyongyang and Shanghai, as well as charter flights from Chinese cities to the North Korean capital, a Chinese website reports.

It gives few details, but says the plans follow two visits by Shanghai tourism officials to Pyongyang in June.

At present the only direct flights are from Beijing and Shenyang. The report says there are hopes of attracting more tourists from the Shanghai region and mentions the possibility of charter flights from nearby Hangzhou.

It quotes the Shanghai officials who visited Pyongyang as finding the city “quiet” and “clean”. A separate report notes that because of “tension on the Korean peninsula” Shanghai residents haven’t been terribly interested in visiting North Korea, but this is now expected to change.

In loosely related news, a North Korean delegation in June visited the northern Chinese city of Tianjin, where they are reported to have toured the European Airbus factory where the A320 is being assembled and which opened last year. Rather surprising, given the high tech nature of such a plant… The first Airbus assembled in China was delivered the day after the North Korean visit. The North Korean delegation was led by the deputy chairman of the Central Inspection Bureau, Choi In-hak최인학.

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DPRK land rezoning policy

Monday, July 13th, 2009

For at least a decade the DPRK has been rezoning state-owned agricultural land into standard grids.  Here is a good example of the policy as seen from Google Earth (Ryokpho, Pyongyang):

 

     

Before (2000-11-5)            After (2005-8-5)

The Handure Plain is one of the most “popular” areas where this policy has been carried out:

 

handure-plain.JPG

Here are some KCNA stories about the policy:

Rural Community of Korea Conspicuous with True Feature of Socialism
Pyongyang, July 6 [2009](KCNA) — The three revolutions, ideological, technical and cultural, have been pushed ahead and the assistance to and leadership over the countryside by the government stepped up, making it possible to assimilate the peasantry to the working class and industrialize agriculture rapidly and change the looks of the countryside day by day.

The fields under cultivation have been standardized like a paduk (go) board and unique gravity-fed waterways and many dwelling houses have been constructed across the country to convert the countryside into a socialist fairyland good to live in.

Typical of such model farms are the Migok Co-op Farm in Sariwon City, North Hwanghae Province, the Sinam Co-op Farm in Ryongchon County, North Phyongan Province, the Chongsan Co-op Farm in Kangso County, South Phyongan Province and the Samjigang Co-op Farm in Jaeryong County, South Hwanghae Province and others.

The Migok Co-op Farm has constructed dwelling houses in tiers so as to see the vast field and the road leads to each block and each house. A large orchard has been arranged in front of the village and a resting site built on the hill covered with forests.

Wonderful is the landscape of the Ryongchon Plain in North Phyongan Province where life-giving water is flowing along the Paekma-Cholsan Waterway and rice plants are growing well in the standardized paddy fields.

Poman-ri, Sohung County, North Hwanghae Province, was once an out-of-the-way place with nothing to show except wild geese flying over it. But it, with a fishing farm in front of it and a forest of fruit trees in the rear, is now called one of the eight beautiful spots in the Songun era.

The horizon in Handure Plain and sea of potato-flowers at Taehongdan are also well known among the Koreans as ones of the above-said beautiful spots.

Electricity finds its way to all parts of the country and methane gas has been introduced to villages. Increasing in number are apricot tree villages and houses with many pear trees and persimmon trees where all sorts of flowers are in full bloom in spring and are pervaded with fruit aroma in summer and autumn.

While giving field guidance to the Tongbong Co-op Farm in Hamju County, South Hamgyong Province some time ago, General Secretary Kim Jong Il said that the farm village with cozy modern dwelling houses built on a sunny hillside and the co-op fields where green crops are swaying and farm machines are working look like a beautiful picture. He stressed that this is the laudable real feature of our socialist rural community.

Today the agricultural working people of Korea are all out to bring about a turn in the agricultural production with the responsibility for being in charge of the main front for the building of a great, prosperous and powerful nation.

Land leveling and rezoning completed
Pyongyang, May 16 [2000](KCNA) — The appearance of the land in North Phyongan Province, the northwestern part of the DPRK, has changed beyond recognition.

Not only the cooperative fields on the west coast from the 40 km-long Unjon plain and Pakchon plain to Ryongchon plain but the fields in in-between and mountainous areas from Kwanha plain in Nyongbyon and Handure plain in Thaechon to Hongnam plain in Uiju have turned into a vast expanse of fertile rice fields.

At least 50,000 hectares of rice fields were leveled and rezoned into standardized fields, each with a thousand or hundreds of Phyong (one Phyong is six square feet).

Thousands of hectares of land came under plough after the disappearance of a lot of ridges between paddies and swamps.

This great change in the land in north Phyongan province is a shining fruition of the gigantic and bold operation and plan of the great leader Kim Jong Il.

After finding great possibilities of increasing grain production at present in the land leveling and rezoning project, he wisely led the overall project. He set the target and stages of the project and clearly taught details of the project such as order of work to be done, the area of a field and even the issue of increasing the fertility of the rezoned fields. He saw to it that necessary forces and means for carrying out the project were sent there and it was undertaken as a movement involving the entire party and army and all the people.

As a result, the gigantic nature-transforming project was successfully completed under the difficult conditions where the province was hard pressed for everything.

Farming preparations are now in full swing in these fields.

Active land rezoning in North Phyongan Province
Pyongyang, November 30 [1999](KCNA) — Land rezoning is in full force in North Phyongan Province, northwestern part of Korea.

This project is being carried on the basis of the experience of last year’s land rezoning in Kangwon Province with the nation-wide attention and support. Through it, land covering more than 9,000 hectares was readjusted in the last one month.

In particular, the Kangwon provincial workers engaged in land improvement in Tongrim county removed the soil of 1.062 million cubic metres and rearranged 1,100 hectares of land in a short span of time by displaying mass heroism and devotion.

The workers from Pyongyang are now carrying out their daily quota 2 times that in October and have readjusted in the main the Handure plain in Thaechon county covering some 1,600 hectares, in 40 days or 50.

Thus as many as 13,000 fields were reduced to 3,000 fields and scores of hectares of cultivated land obtained.

The workers of Nampho city and North Hwanghae Province in charge of land rezoning in Nyongbyon and Ryongchon counties have achieved successes in their work by introducing working methods suited to the topographical peculiarities and soil conditions.

Thanks to the efforts of the workers from different provinces, the patches are being rearranged into the standardized fields, 1,000-1,500 Phyong each, one after another in every part of North Phyongan Province.

Unfortunately, these types of policies, even if successful, are only a third- or fourth-best option for feeding the people.  These policies will never deliver the levels of food and wealth that are possible through opening up the country to investment and trade.  Even without opening up to foreign investment/trade there are a number of policies the DPRK could enact to increase the efficiency of domestic food markets.  It does not take a nobel prize winning economist to realize that the DPRK does not have a comparative advantage in food production.

UPDATE 1 : A valued reader recently made me aware of this informative article by Aidan Foster-Carter on the topic of land-rezoning (April 19, 2001):

TO ENGAGE or keep your distance? The administration of U.S. President George W. Bush has stirred up the Korean peninsula with its aloof, if confused, attitude to North Korea. But if Bush won’t engage, others will. The European Union, keen to be a player on the peninsula, will send Swedish Prime Minister Goran Persson to Pyongyang and Seoul in early May to discuss missiles and mediate.

The goal of engaging North Korea is to force an end to dangerous behaviour. This matter is not merely military. North Korea is now in its sixth year of a food crisis which has cost the lives of at least one million people. Flood and drought may have been the catalysts, but the root problem remains the doubly disastrous mix of rigid planning and the whim of leaders, where pet projects get the lion’s share of resources while less favoured regions and sectors are deprived.

The projects that paved the way for the food crisis included years of the overuse of inorganic fertilizers, which resulted in physical and chemical damage to soil; poorly planned hillside terracing; and the tearing down of forests to plant maize in the mountains. All this on top of the follies of collective farming, restricting private plots and markets.

North Korea is an ecological disaster, with the policies of Kim Jong Il and his father, late leader Kim Il Sung, to blame.

The follies continue. When Persson meets Kim Jong Il, let him ask about land rezoning, a project, more or less, to bulldoze North Korea flat and turn it into farmland. As the official Korean Central News Agency describes it, this is “a grand nature-harnessing work, to level at least 400,000 patches and remove 30,000 kilometres of ridges between rice fields which had been handed down through generations, and repartition them into standardized fields, each covering 1,000-1,500 pyong” (3,300 to 4,950 square metres). In Kim’s plan, 100,000 hectares are due for flattening; 27,000 hectares have already been flattened, “changing their appearance beyond recognition.”

In a speech to the annual Supreme People’s Assembly on April 5, Prime Minister Hong Song Nam made clear the plan was central to the coming year’s priority to “develop agriculture to resolve the food problem of the people.”

The policy was first carried out in marginal farming areas in Kangwon. Kim delivered a speech on the plan in January last year–from the middle of a field. Standing in shiny shoes amid a sea of mud, Kim saw scenic nooks and hillocks bulldozed flat, and rejoiced.

The policy has now spread to Hwanghae, the rice-basket province in the southwest that is crucial to national food supply. On March 25, Vice-Marshal Jo Myong Rok, the country’s top military official, who met President Bill Clinton at the White House last October, led a rally to promote more levelling before rice transplanting begins in May.

The theory: The creation of larger fields will allow the mechanization of agriculture and “free farmers from backbreaking work,” as Kim said in his speech, repeating one of his father’s favourite mantras. But mechanization is a pipe dream when the most hi-tech tool that most workers are armed with is a trowel, and tractors lie rusting for lack of fuel.

THE PROBLEM WITH KIM’S PLAN

The North Korean leader knows this, and has called for “strenuous efforts to repair [them] . . . as has been instructed before”. He has pledged to supply 160 imported tractors, although North Korea is desperately short of foreign exchange and this could hardly help the whole country, just a favoured few.

Kim admits that rezoning won’t raise yields immediately: “It is natural that the fertility of rezoned fields decreases,” he said. So “the soil must be enriched by the application of rich organic fertilizer through a mass movement.”

In fact, Kim has another motivation, and it has nothing to do with yields or labour-saving. “The fields in the Handure Plain . . . have been laid out well in regular shapes . . . . I am greatly satisfied,” he said in last year’s speech. “The plain has been completely transformed . . . . It would be impossible now for a former landowner to find his land, if he were to come with his land register to take his land back. The Handure Plain now looks like the land of a socialist state.” Intriguing that the Dear Leader thinks the landlords who fled in the 1940s, or their children, might come back and claim their own–as has happened in Eastern Europe since communist rule collapsed. Is he afraid?

Worse, in North Korea’s current conditions, the attempt to mechanize agriculture makes no economic sense. Experts including Marcus Noland of the Institute for International Economics in Washington say that Pyongyang should not even try to grow food. Instead, they say, it should seek comparative advantage in exporting light industrial goods, and import grain with the foreign exchange it earns, like South Korea.

As Persson knows, all who aid Pyongyang–and it’s a long list–have the right to insist that policies and practices which killed a million or more North Koreans cease. The EU has added leverage in that it may soon propose the establishment of diplomatic relations with Pyongyang. The UN World Food Programme has its largest operation in the world there, and though other organizations such as Oxfam have pulled out, the WFP and many other non-governmental organizations look to be there for the duration. Yet rather than voice their concerns and insist on tighter conditionality, they have been coy to challenge the irrational policies which caused the crisis and which still go on.

The solution found in China and Vietnam–the development of family farms and markets–offers a good model. In January, Kim hinted that new times demand new methods. In reality, informal markets are the only thing standing between most North Koreans and starvation. But to openly embrace them seems to be too much for Kim Jong Il.

As for land rezoning, it’s a new nadir. The fields of what is now North Korea were shaped by generations of human labour down the centuries, and bulldozing them is comparable to the Taliban’s irreversible destruction of Afghanistan’s prized Buddhas.

What can be addressed is the fact that seven-year-old North Koreans, according to data analyzed by Nicholas Eberstadt of the American Enterprise Institute, are 20 centimetres shorter and 10 kilogrammes lighter than their southern peers. Persson and Kim should have a lot to talk about.

UPDATE 2: I recently obtained a copy of the North Korean book, Songun Banner of Victory. It referred to the land rezoning program in Kangwon in purely revolutionary terms, stating it had “obliterated the last trace of feudal land ownership”.

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Friday Fun: “Do not overtake (pass)”

Friday, July 10th, 2009

A valued reader points out this gem by Kernbeisser:

kernbeisser-roadsign.jpg

The above road sign is supposed to remind drivers not to overtake those ahead of them.  A powerful lesson the leadership would prefer to instill in all officials–not just those with cars.

You can see this rabbit yourself if you visit this summer! How about that for an incentive?

Here are more great photos by fellow traveler Nayan Sthankiya including one featuring yours truly.

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DPRK Olympic Committee

Friday, July 10th, 2009

While doing some research, I stumbled on this old document on the DPRK’s Olympic Committee.  PDF here.

According to the document:

On 30th May 1952, a few weeks before the celebration of the XVth Olympiad in Helsinki (FIN), the organisers were contacted by the physical culture and sports committee of the Democratic People’s Republic of Korea who expressed their desire to become part of the Olympic family. As a preliminary step the IOC called for the creation of an NOC. This requirement was duly complied with in September of the following year. A formal request for recognition arrived at the headquarters of the IOC in March 1956. Provisional recognition was accorded by a session of the IOC convened in Sofia (BUL) in 1957.

At that time the NOC comprised 16 sports federations of which 6, governing respectively basketball, boxing, association football, ice skating, volleyball and table tennis, were already affiliated to an international federation. Right up to 1963, negotiations took place with a view to participation at the Olympic Games of a single, united team made up of North and South Koreans. The solution envisaged was on the lines of that adopted by the two German nations but, despite meetings in Lausanne in January 1963 and in Hong Kong on 17th May and 1st June 1963 the project eventually had to be abandoned. Finally authority was given, by the members of the IOC in session at Baden-Baden, for the two NOCs to be represented by separate teams.

Also, It seems that Kim il Sung Stadium used to be called “Moranbong Stadium” as late as 1980.

Read about the history of the DPRK Olympic Committee here (PDF)

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Myanmar – DPRK relationship grows

Friday, July 10th, 2009

According to Aung Zaw in the Wall Street Journal Aisa:

A government report leaked by a Burmese official last month shed new light on these ties. It described a Memorandum of Understanding between Burma and North Korea signed during a secret visit by Burmese officials to Pyongyang in November 2008. The visit was the culmination of years of work. Diplomatic relations between the two countries were cut in 1983 following a failed assassination attempt by North Korean agents on the life of South Korean President Chun Doo Hwan while he was visiting Rangoon. The attack cost 17 Korean lives and Burma cut off ties.

One of the first signs of warming relations was a barter agreement between the two countries that lasted from 2000 to 2006 and saw Burma receive between 12 and 16 M-46 field guns and as many as 20 million rounds of 7.62 mm ammunition from North Korea, according to defense analyst Andrew Selth of Griffith University in Australia. In exchange, Burma bartered food and rice.

The two countries formally re-established diplomatic relations in April 2007. After that, the North Korean ship the Kang Nam — the same ship that recently turned away from Burma after being followed by the U.S. navy — made a trip to Burma’s Thilawa port. Western defense analysts concluded that the ship carried conventional weapons and missiles to Burma.

This laid the ground for the MoU signed in November, when Shwe Mann, the regime’s third-most powerful figure, made a secret visit to North Korea, according to the leaked report. Shwe Mann is the chief of staff of the army, navy and air force, and the coordinator of Special Operations. He spent seven days in Pyongyang, traveling via China. His 17-member delegation received a tour around Pyongyang and Myohyang, where secret tunnels have been built into mountains to shelter aircraft, missiles, tanks and nuclear and chemical weapons.

The MoU he signed formalizes the military cooperation between the two countries. According to the terms of the document, North Korea will build or supervise the construction of special Burmese military facilities, including tunnels and caves in which missiles, aircraft and even naval ships could be hidden. Burma will also receive expert training for its special forces, air defense training, plus a language training program between personnel in the two armed forces.

Shwe Mann’s delegation also visited a surface-to-surface missile factory, partially housed in tunnels, on the outskirts of Pyongyang to observe missile production. The Burmese were particularly interested in short-range 107 mm and 240 mm multirocket launchers — a multipurpose, defensive missile system used in case of a foreign invasion. Also of great interest was the latest in antitank, laser-guided missile technology.

Previous Myanmar – DPRK posts here.

Read the full story below:
Burma and North Korea, Brothers in Arms
Wall Street Journal Asia
Aung Zaw
7/10/2009

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South Korea imposes export restrictions on DPRK

Friday, July 10th, 2009

According to Yonhap:

Seoul will stiffen control of South Korean goods going into North Korea, mostly banning luxury items such as wine and fur, the Unification Ministry said Thursday.

The restrictions, to take effect as of Friday, are in accordance with U.N. Security Council (UNSC) Resolution 1874 adopted after North Korea’s second nuclear test on May 25. The resolution prohibits weapons trade with Pyongyang and calls on member states to tighten the sanctions imposed on Pyongyang after its first nuclear test in October 2006. The earlier UNSC resolution bars exports of luxury goods to the North.

The ministry said it will require prior authorization for South Koreans carrying in items from 13 categories including liquor, cosmetics, jewelry, fur products and automobiles.

The government will allow exceptions for South Korean government and business officials who carry in the listed items during travel between the two Koreas on official duty or for personal use during their stay in the North, ministry officials said.

“The government’s approval will depend upon whether it believes the goods will be used by South Koreans or given to North Koreans,” an official said.

Read the full story here:
Seoul to enforce new restrictions on goods going into N. Korea
Yonhap
Tony Chang
7/9/2009

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North Korea restricts food aid (again)

Friday, July 10th, 2009

According to Fox News:

A spokesman for the World Food program has confirmed to FOX News that on July 3, the emergency relief organization was ordered to limit food deliveries to 57 of the 131 North Korean counties it previously served. At the same time, the agency was told that it must give seven days’ notice of visits to oversee food deliveries at all of its relief sites — a sharp change from the one-day notice previously required under a deal to retain U.S. support for North Korean relief efforts. As a result, the spokesman said, WFP is “reviewing the current terms and conditions for our work” in North Korea, “to ensure that our work and our accountability is not compromised.”

Additional constraints were also slapped on the child relief organization UNICEF in June, according to a spokesman, Chris de Bono. He told FOX News that the regime banned UNICEF from operating in its northerly Ryanggan province, which borders China, and is one of the impoverished country’s poorest areas. UNICEF still operates in 56 other counties across North Korea.

The restrictions make even more dire the food situation in a country where starvation and malnutrition are widespread, even as the Kim regime continues to set off atomic blasts and fire missiles in the direction of Japan and Hawaii.

Furthermore, they once again raise questions about the U.N.’s ability to monitor whatever relief activities that remain in the country. UNICEF’s spokesman told FOX News that only WFP had won the right to 24-hour notification for inspection visits, and that all other U.N. institutions in North Korea have operated with the one-week request limit as a matter of course.

UNICEF has ten international staff and 20 local staffers in North Korea. None of the international staff speak Korean. The agency is budgeted to spend $13 million a year on North Korean operations, principally on food for infants, children and pregnant women, along with emergency vaccination programs, essential medicines and clean water supplies.

But nowhere near that amount of money from international donors is currently available. According to its Web site, UNICEF has received only 10 percent of the total, or about $1.3 million, undoubtedly a result of the North Korean regime’s aggressive pursuit of nuclear weapons. Unless more money is received soon, the UNICEF spokesman said, “it will be difficult to maintain the current level of operations and this will have serious negative consequences for children and other vulnerable people.”

The same funding shortfall applies to the World Food Program, which told FOX News a month ago that donor nations had provided only $75.4 million toward a 2009 goal of $503 million for North Korea, with more than half of that amount — $38.8 million — food aid that was not delivered in 2008.

The only other U.N. agency that has significant operations in North Korea, the United Nations Population Fund, reports that it has received no curtailment in its activities, but it only operates in 11 North Korean counties. It was slated to spend roughly $8.3 million in North Korea between 2007 and 2009, chiefly for birth control and other forms of “reproductive health” and for helping the regime collect population statistics.

Nonetheless, a big question mark still hangs over the North Korean operations of the United Nations Development Program, the U.N.’s major anti-poverty agency, which suspended operations in North Korea in 2007 in the wake of revelations from an independent inquiry that it had wrongfully provided millions in hard currency to the North Korean regime, ignored U.N. Security Council sanctions in passing on dual-use equipment that could conceivably be used in the country’s nuclear program, and allowed North Korean government employees to fill key positions.

Read the full story below:
North Korea Cuts Off More U.N. Relief as Nation Starves
Fox News
George Russell
7/7/2009

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