Archive for March, 2013

2013 International Narcotics Control Strategy Report

Thursday, March 7th, 2013

It has been a while since much attention was focused on the DPRK’s capacity to produce narcotics for export, however, the DPRK did get a mention in the US Department of State’s 2013 International Narcotics Control Strategy Report.

Here is what the report had to say (Source here):

Democratic People’s Republic of Korea (DPRK or North Korea)

Drug use may be rising within the Democratic People’s Republic of Korea (DPRK or North Korea), according to reports from DPRK refugees and travelers to North Korea. Chinese and South Korean press reports indicate that a substantial volume of methamphetamine continues to be produced within DPRK territory, mainly for transshipment to China. There are also reports of transactions between DPRK traffickers and large, organized criminal groups along the DPRK-China border, and of Chinese police enforcement targeting drugs entering China from the DPRK by way of enhanced patrols, periodic arrests, and drug seizures. However, the Chinese government rarely identifies the DPRK as the source of illicit drugs.

The proximity and availability of precursor chemicals in China likely contribute to the production of methamphetamine within North Korea. Reliable information is difficult to obtain regarding illicit activities within the DPRK territory, but drug production and other criminal activities, such as the counterfeiting of cigarettes, appear to have continued in 2012. There is insufficient current information, however, to confirm official DPRK state involvement in drug trafficking. There have been no confirmed reports of large-scale drug trafficking involving DPRK state entities since 2004. This suggests that state-sponsored drug trafficking may have ceased or been sharply reduced, or that the DPRK regime has become more adept at concealing state-sponsored trafficking of illicit drugs.

Despite the absence of reports of drug seizures linked directly to DPRK state institutions, the United States cannot entirely rule out the possibility of official DPRK state involvement in the manufacturing and trafficking of illicit drugs. A relatively large investment in precursor chemicals is necessary to produce the volume of methamphetamine trafficked from North Korea, and it is unclear how individual criminals could independently organize such activity within such a tightly-controlled state. It is likely that some official corruption on both sides of the DPRK-China border facilitates drug trafficking.

Share

Competition stressed at collective farms

Thursday, March 7th, 2013

Institute for Far Eastern Studies (IFES)
2013-3-7

According to Choson Sinbo, the Japan-based pro-North Korean newspaper, on February 22 in Pyongyang, a self-criticism session focusing on socialist competition was held among model collective farms of the “Songun era.” At this meeting, results of agricultural production at these farms were discussed, and the year 2013 was also officially declared as the year for the “December 12 Space Conquest Award.”

The award was created to commemorate the December 2012 launch of the Kwangmyong-3 satellite and to spur production and competition among organizations in various sectors including science and technology and agriculture.

According to an official from the Union of Agricultural Workers of Korea’s Central Committee, this self-criticism session was conducted to negotiate and make overtures to modernize and incorporate science and technology in the agricultural industry.

The main farms competing in the agriculture sector are Samji River Collective Farm (South Hwanghae Province), Migok Collective Farm (North Hwanghae Province), Sinam and Unhung Collective Farms (North Pyongan Province), and Dongbong Collective Farm (South Hamgyong Province). Among these farms, Samji River Collective Farm received awards from the Central Committee of the Workers’ Party of Korea and the Cabinet last year.

The news added, “The competitive self-criticism and evaluation session has provided an understanding that unsuccessful farming cannot be imputed to only poor seed selection or weather conditions. Modernization and reorganization efforts in the farms must be elevated to encourage competition among organizations in order to meet the production goal.”

On the other hand, North Korea has announced a new policy that limits the individual usage of paddy fields (in the mountains) and vegetable gardens from 30 pyong (99 square meters) to 10 pyong (33 square meters), and requires the remaining 20 pyong (66 square meters) of land to be reverted to collective farms. This would seem to go hand in hand with the June 28 economic measures announced in 2012. These recent measures appear to be a state-level effort to improve the production capacities of collective farms by diverting attention from private farming.

Last year, North Korea delivered the new economic management policy measure (June 28 Measures) nationwide to every region and province. On several occasions, North Korea has attempted to enforce similar measures to limit private farming, attributing the poor production of collective farms to private farming. However, faced with backlashes from its residents, food distribution shortages, and the realities of enforcement forced the government to withdraw from such measures.

North Koreans are not allowed to farm on farmland over 30 pyong (99 square meters) in size; however, many are believed to be farming on pieces of land even larger in size. In the farming villages, some people are believed to be farming on 1,500 pyong (4,959 square meters) of land per household, while some are said to be using over 3,000 pyong (9,917 square meters) of land. The grains produced in these farmlands are mostly corns (1 to 1.5 tons) and other crops including beans, cabbages, radishes, sesame, and wheat.

Share

UNSC Resolution 2094: Response to DPRK’s third nuclear test

Thursday, March 7th, 2013

UPDATE 6 (2013-3-11): Here is the DPRK Ministry of Foreign Affairs response to the UNSC Resolution 2094. As you can imagine, they do not approve.

UPDATE 5 (2013-3-8): The full official resolution can be read here.  Here is the DPRK response to 2094. Here is some information on the Chinese response. Here is some more analysis/commentary from Scott Snyder in The Diplomat. Choson Ilbo reports that large North Korean bank accounts exempt from sanctions.

UPDATE 4 (2013-3-7): The resolution has passed 15-0.  Read more at the BBC, Washington Post, New York Times. Marcus Noland commentary here and here. Victor Cha hereNK Leadership Watch has more on the events in Pyongyang

UPDATE 3 (2013-3-7): Once made public, the resolution will be posted here. Steve Herman (via Adam Cathcart) tweeted a link to the draft resolution which has been uploaded to Scribed. It is dated yesterday (2013-3-6).

UPDATE 2 (2012-3-7): Here is a Press Release from the US mission to the UNSC that went out this morning on the new sanctions (Resolution 2094). Thanks to Aidan Foster-Carter.

For reasons of brevity, I have put the entire document into this PDF for download.

UPDATE 1 (2013-3-7): Yonhap offers details on the unpublished sanctions proposal put forth by the US and China:

The three North Korean arms dealers are: Yon Chong-nam, the chief representative for the Korea Mining Developing Trading Corp (KOMID); Ko Chol-chae, the deputy chief representative for the KOMID; and Mun Chong-chol, an official at Tanchon Central Bank, the resolution showed.

KOMID is described by the resolution as North Korea’s “primary arms dealer and main exporter of goods and equipment related to ballistic missiles and conventional weapons,” while the North Korean bank is the “main DPRK (North Korea) financial entity for sales of conventional arms, ballistic missiles, and goods related to the assembly and manufacturing of such weapons.”

The two North Korean entities are the Second Academy of Natural Sciences, which is responsible for research and development of the North’s advanced weapons systems, including “missiles and probably nuclear weapons,” and the Korea Complex Equipment Import Corp. linked to the North’s “military-related sales,” according to the draft.

The Security Council is set to vote on the draft resolution on Thursday in New York.

The new sanctions will also focus on the DPRKs shipping, air, and “financial” industries:

The Security Council “decides that all states shall inspect all cargo within or transiting through their territory that has originated in the DPRK, or that is destined for the DPRK,” the draft said.

It also “calls upon states to deny permission to any aircraft to take off from, land in or overfly their territory, if they have information that provides reasonable grounds to believe that the aircraft contains items” banned by previous U.N. resolutions, the document said.

It also makes it difficult for North Korea to move in and out “bulk cash,” in an effort to squeeze the North Korean elite’s access to hard currency.

The Security Council also calls on all states to “exercise enhanced vigilance over DPRK diplomatic personnel so as to prevent such individuals from contributing to the DPRK’s nuclear or ballistic missile programs,” it said.

The U.N.’s powerful body “expresses its determination to take further significant measures in the event of a further DPRK launch or nuclear test,” the draft warned.

The DPRK’s Uranium enrichment program also gets a mention:

Apparently mindful of the North’s uranium concerns, the draft resolution includes Pyongyang’s uranium enrichment program for the first time, condemning “all the DPRK’s ongoing nuclear activities, including its “uranium enrichment.”

The North claims its uranium enrichment program is for peaceful energy development, but outside experts believe that it would give the country a new source of fission material to make atomic bombs, in addition to its widely known plutonium-based nuclear weapons program.

The DPRK, has of course, issued a response

In response to the proposed U.N. sanctions and ongoing Seoul-Washington joint military drills, the North’s military threatened to scrap the Korean War cease-fire.

Kim Yong-chol, a hard-line North Korean general suspected of involvement in a series of provocations against the South, read the statement on state TV, saying the North “will completely declare invalid” the Armistice Agreement that ended the 1950-53 Korean War.

The North also said it will cut off a military phone line at the truce village of Panmunjom.

South Korea’s military responded to the North’s bellicose threats with a verbal salvo, warning it would strike back at the North and destroy its “command leadership,” if provoked by Pyongyang.

ORIGINAL POST (2013-3-5): According to the New York Times:

The United Nations Security Council moved closer on Tuesday to expanding sanctions on North Korea for its nuclear and ballistic missile activities. The United States and China introduced a resolution that would target North Korean bankers and overseas cash couriers, tighten inspections of suspect ship and air cargo, and subject the country’s diplomats to invasive scrutiny and increased risk of expulsion.

Passage of the measure, drafted in response to the third North Korean underground nuclear test three weeks ago, seemed all but assured, in part because China — North Korea’s major benefactor — participated in drafting the language. It would be the fourth Security Council sanctions resolution on North Korea, which has defied the previous measures with increasing belligerence. A vote was expected on Thursday.

Infuriated, North Korea vowed to scrap the 1953 armistice that halted the Korean War and threatened to attack the United States with what the North Korean government news agency called an arsenal of diverse “lighter and smaller nukes.”

American officials played down the North Korean warning, which echoed bombastic admonitions that have become part of the standard fare from the North. Still, the threat of a North Korean nuclear attack seemed all the more provocative, coming two days after North Korea conveyed a message of friendship to a visiting American group that included Dennis Rodman, the former basketball star.

Susan E. Rice, the United States ambassador to the United Nations, who introduced the resolution in a closed session of the 15-member Security Council, told reporters afterward that it “builds upon, strengthens and significantly expands the scope of the strong U.N. sanctions already in place.”

For the first time, she said, the resolution would target “the illicit activities of North Korean diplomatic personnel, North Korean banking relationships, illicit transfers of bulk cash and new travel restrictions.” In the past, North Korea has been accused of running extensive counterfeiting and illegal drug enterprises, to raise much-needed hard currency.

Ms. Rice declined to predict whether the North would respond with another nuclear test or other retaliation. “All I can tell you is that the international community is united and very firm in its opposition to North Korea’s illicit nuclear and missile programs,” she said. “And the more provocations that occur, the more isolated and impoverished, sadly, North Korea will become.”

The Americans did not publicly release the resolution text. But a Security Council diplomat familiar with the measure, who spoke on the condition of anonymity because the language may still be subject to revision, said it broke new ground with restrictions and prohibitions on North Korean banking transactions, new travel restrictions and increased monitoring of North Korean ship and air cargo.

The diplomat also said that the resolution added a special lubricant and valve, needed for uranium enrichment, to items that North Korea cannot import.

The resolution would also place greater scrutiny on North Korean diplomatic personnel who are suspected of carrying proscribed goods and cash under the guise of official business, exposing them to possible deportation. “We know there are diplomats out there cooking up deals and moving funds around,” the Security Council diplomat said.

Among the other provisions, the diplomat said the resolution also included new language aimed at enforcement that had been absent from the earlier resolutions. It requires, for example, that if a North Korean cargo vessel crew refuses a host country’s request for inspection, the host is under a legal obligation to deny the vessel port access.

If a cargo plane is suspected of carrying prohibited goods to or from North Korea, the resolution would urge, but not require, that it be denied permission to fly over any other country — a new provision that could affect China, which routinely permits North Korean flights over its territory.

Previous rounds of sanctions have blacklisted trading and financial firms believed to be directly involved with nuclear and missile work. The sanctions have also restricted the importation of luxury goods, an effort directed at the country’s ruling elite.

American officials said privately that the latest resolution did not go as far as they would have liked, reflecting China’s insistence that the punitive measures remain focused on discouraging North Korea’s nuclear and missile behavior and avoid actions that could destabilize the country and lead to an economic collapse.

But the text was stronger than what some North Korean experts had anticipated, particularly the measures that could slow or frustrate the country’s banking activities and extensive dependence on cash payments in its trade with other countries.

“Going after the banking system in a broad brush way is arguably the strongest thing on this list,” said Evans J. R. Revere, a former State Department specialist in East Asian and Pacific affairs, and now senior director at the Albright Stonebridge Group, a Washington-based consulting company. “It does begin to eat into the ability of North Korea to finance many things.”

Mr. Revere attributed North Korea’s reaction on Tuesday to an accumulation of perceived affronts: China’s cooperation in drafting the sanctions, the annual military exercises under way between the United States and South Korea, and a hardened attitude by the South’s newly elected president, Park Geun-hye.

“This is North Korea’s way of saying, ‘We know you guys are doing several things, and here is our response,’ ” Mr. Revere said.

Here is coverage in The Guardian.

Here is coverage in the Washington Post.

Here is coverage of the DPRK’s response in CNN.

Here is my archive post on the DPRK’s third nuclear test.

Here is a statement (in Korean) by the North Korean military.

Read the full story here:
U.N. Resolution to Aim at North Korean Banks and Diplomats
New York Times
Rick Gladstone
2013-3-5

Share

My Twitter impersonator…

Tuesday, March 5th, 2013

It would be understandable if you thought I (Curtis Melvin) was the person behind the @NKeconWatch account on Twitter, but you would be mistaken. It appears that someone is impersonating me on Twitter.

twitter-screencenter

To the person who set the account up: I have made multiple attempts to contact you, but you have not replied to any of my messages. That is not very professional for the following reasons:

1. All the people following you think they are following me.

2. All of the people you are following think I am following them.

3. All of the people contacting you think they are contacting me.

Please leave a comment in this post (or contact me on twitter/facebook/email) so we can start talking.  Otherwise I am going to have Twitter shut the account down–and I don’t want to do that.  But I do want to know who you are and how to reach you so we can make all of this a little more transparent.

Sincerely,

Curtis (aka @CurtisMelvin)

Share

Rason – China – USA sea food trade

Tuesday, March 5th, 2013

According to the New York Times:

At the Red Sun restaurant, a short-order joint on Crab and Beer Streets, live crabs with plump legs wriggle in a cooled tank, fresh from the North Korean coast just two and a half hours away by road.

The cook and owner, Jin Yuansheng, douses the prized crabs in boiling water and adds them to the steaming platters of sea cucumbers, shrimp and squid, also from North Korean waters, that he brings to the table.

This border town in China’s cold and poor northeast abuts North Korea along the icy Tumen River, where a bridge serves as the gateway for a lively commerce in shellfish plumbed from the Sea of Japan off North Korea. It is an exotic niche business in the more than $11 billion annual trade between North Korea and China, which is dominated by China’s purchases of cheap North Korean iron ore and coal.

By encouraging trade with North Korea, China aims to prevent North Korea’s government from collapsing, an outcome that could result in a Korean Peninsula allied to the United States. And business with North Korea serves a domestic goal: it helps employment and incomes in needy Jilin Province, where an estimated two million ethnic Koreans live.

That is where the crabs come in. Scooped from 3,000-foot-deep waters by trawlers crewed by North Korea workers, they are first taken to the North Korean port of Rason, a special enterprise zone serving foreign investors and largely financed by China. The crabs are trucked in ice to the Chinese border town of Quanhe, and then brought to the market in Yanji, or flown to cities across China as a delicacy for the affluent.

“Getting the crabs here is a delicate operation,” said Mr. Jin. “If they are too hot en route, they can die, and if they are too cold, they can freeze to death.”

For Chinese traders, importing crab is a lucrative business. They sell not only to upscale restaurants around China, but also to banquet organizers. The sales pitch stresses what is called the purity of the waters around impoverished North Korea compared with the more polluted seas around industrialized Japan and South Korea.

“The fishermen capture the crab deep down, so it is high quality,” said Qu Baojie, whose company imports crab from Rason. “South Korea and Japan can’t compete.”

His crab, branded as Crab Earth, Crab Heaven, is featured at the buffet of the Golden Jaguar, a fashionable Beijing restaurant, and is sold in red boxes suitable for business gifts, he said.

The fishing operations in Rason, an ice-free port that gives year-round sea access to China’s northeastern provinces, work fairly smoothly, Mr. Qu said. Fishing trawlers equipped with South Korean gear ply the waters at night, returning to shore about 4 a.m.

Their catches are then transferred to a state-owned plant where some crabs are packed live and others are processed, he said. About 300 North Korean workers are employed during the peak September to December fishing season. Fishing during the breeding season of June to September is banned, he said.

His crab business flourishing, he recently bought a new processing factory in Yanji, Mr. Qu said.

Some of the crab meat was vacuum packed in clear plastic, and sold to other Chinese traders, who in turn dispatched it to the United States, he said. The brand name of North Korean crab meat sold in the United States? “They slap on their own brands,” he said of the American buyers.

Read the full story here:
Caught in North Korea, Sold in China, Crabs Knit Two Economies
New York Times
Jane Perlez
2013-3-4

Share

A random Monday post

Monday, March 4th, 2013

I must have offended Dennis Rodman.  When he arrived in Pyongyang, he tweeted coverage in NKeconWatch:

Dennis-rodman-tweet-2013-2-26-box

I have outlined the tweet above in yellow.  If you check the URL (ow.ly/i4Vxi), it still links to this post.

Despite my relative popularity with a nerdy and obscure corner of the blog-o-sphere, however, within a day or two the tweet was deleted and replaced:

Rodman-tweet-2013-2-28-box

I have no idea what I did to offend Mr. Rodman, but I find it interesting that he wants to distance himself from me.  I don’t even have any piercings (they are terribly impractical for Brazilian Jiu Jitsu).

_________________

Comrade Kim Goes Flying will make its US debut this week (March 8 and 9) at the Miami Film Festival.

Learn more here.

Also, for those people who think they have been everywhere….Koryo Tours has launched a new tour to TOFALARIA in Siberia!  Check out the information here.

Share

Grain imports from China fall in January

Monday, March 4th, 2013

According to Yonhap:

North Korea’s grain and fertilizer imports from China nosedived in January, Seoul’s Korea Rural Economic Institute said Sunday, citing data from the Korea International Trade Association.

North Korea imported 2,174 tons of grain and 2 tons of fertilizer from China in the first month of this year, the institute said. By product, flour imports totaled 1,172 tons and corn imports reached 540 tons.

The volume of imported grain marked a mere 9.2 percent of the North’s imports of Chinese grain in the previous month, while the corresponding figure for fertilizer amounted to 20 percent, the institute said.

Compared with the same month of last year, the figures reached 25.9 percent and 0.03 percent, respectively.

“The steep decline in the North’s grain imports from China is very unusual, even considering the past trend of grain imports decreasing every January,” said Kwon Tae-jin, a researcher at the institute.

Read the full story here:
N. Korea’s grain imports from China plunge in Jan.
Yonhap
2013-3-3

Share