Archive for the ‘International Governments’ Category

China launches anti-drug smuggling boats on Yalu river

Sunday, July 18th, 2010

By Michael Rank

China has launched a fleet of patrol boats to combat drug trafficking on the North Korean border, a Chinese website reports.

The report shows pictures of the four boats, which are being deployed on a stretch of the Yalu river known as Badaojiang八道江, but gives few details.

The only drug named in the report is opium, which North Korea is reported to produce in large quantities. It says officers warn local people not to become engaged in drug smuggling by showing them pictures of opium and other banned substances.

“The creation of the anti-drugs speedboat force is not just a foundation in the people’s war against drugs, it also increases our strength in banning drugs on the river border and will be a force for us in building a harmonious border and in contributing to a drugs-free border,” an official from the new force is quoted as saying.

A separate Chinese newspaper report names a methamphetamine (known as magu 麻古) as another of the main drugs smuggled between North Korea and China, and says a haul of 13,775 magu pills, seized in winter 2004, was the largest amount of drugs ever confiscated by Dandong border guards. It says smuggling reached a peak in the years 2000-2006 and gives little information about the current situation, probably because this is politically too sensitive.

But it does mention the killing of three Chinese smugglers by North Korean border guards in June, and says the dead men were members of a gang led by a man known as Sun Laoer who controls much of the smuggling on one particular stretch of the Yalu. One man was injured in the incident, for which China demanded an apology. North Korea said it was “an accident”, while according to a Chinese television report the North Koreans suspected the smugglers of being South Korean spies.

The Chinese newspaper report says the main goods smuggled between China and North Korea are drugs, scrap metal, cigarettes, DVDs, chemicals and secondhand cars.

The most notorious gang was led by an individual called Jiang Weijia, who specialised in smuggling cigarettes and oil products from North Korea into China. Between June and December 1999 Jiang smuggled 45.8 million yuan worth of cigarettes. The gang was finally smashed in 2003.

The article in Southern Weekend, one of China’s more adventurous newspapers, also mentions human trafficking across the border. It says that “in 1996 you could exchange 50 jin [25 kg] of rice for a Korean daughter-in-law” and adds that the women had to pretend to be deaf and dumb since if they opened their mouths and were found to be from North Korea they would be sent straight back.

It notes that “world opinion suspects that North Korean government departments are covertly involved in smuggling on the Chinese-North Korean border, the reason being that in a country where power is highly concentrated, it would otherwise be almost impossible for large-scale smuggling to take place on the Yalu river border. But despite such suspicions, there is no complete proof.”

The report recalls how in the 1990s North Koreans, in the wake of the famine, would exchange scrap copper for rice at a rate of one kg of metal for one kg of rice and that many North Korean factories were stripped bare of all their metal fittings.

It also recalls how in the 1960s North Korea was richer than China, which suffered through years of Mao-induced famine, and people from Dandong would cross the Yalu at night in search of food.

“This shouldn’t be called smuggling, should it. People were bartering for food in order to survive,” it quotes one man as saying. It quotes another man as saying the border was largely unguarded until recently and when he was a boy (in the 1990s apparently) he would cross the frozen river in winter and North Korean guards would give him sweets.

The report says border trade with North Korea stopped during the Korean war, was revived in 1958 and faded during the Cultural Revolution of the late 1960s and 70s. It was officially revived in September 1981 with an agreement between China’s Liaoning province and North Korea’s Pyeong’an Bakdo. Most of the trade from the early 1980s consisted of China bartering oil for fish.

The article says China-Korean smuggling goes back centuries, and in the 1930s an area of Dandong near the river called Shahezi 沙河子 was a famous smuggling centre under the Japanese. It also says a Qing dynasty customs office has been restored in Jiuliancheng 九连城, some 20 km from Dandong, and the area remains a smuggling centre.

North Korea has been widely reported to be a significant producer of illicit drugs. The CIA World Factbook notes  that for years, from the 1970s into the 2000s, citizens of North Korea, many of them diplomats, were apprehended abroad while trafficking in narcotics and police investigations in Taiwan and Japan in recent years have linked North Korea to large illicit shipments of heroin and methamphetamine, including an attempt by the North Korean merchant ship Pong Su to deliver 150 kg of heroin to Australia in April 2003.

In 2004 the Jamestown Foundation published a report by a North Korean defector who says he “learned of and witnessed first-hand the drug trafficking activities of the North Korean regime” when he worked for the North Korean National Security Agency from 1983 until 1998.

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UN to provide $5m to DPRK operations

Sunday, July 18th, 2010

According to the Associated Press:

The U.N. humanitarian chief has released $42 million to help people suffering from hunger, disease and conflict in nine countries from Congo and Yemen to North Korea and Nepal.

John Holmes said Friday the United Nations has received insufficient funds from donors to meet humanitarian needs in the nine countries.

The money, from an emergency fund to help the United Nations respond quickly to humanitarian emergencies, will be given to U.N. humanitarian agencies and the International Organization for Migration. Through them, funds will go to humanitarian and other nongovernmental organizations to cover funding gaps.

According to the U.N. Office for the Coordination of Humanitarian Affairs, humanitarian actors in Chad and Congo will receive $8 million apiece, agencies in Yemen will receive $7 million, the humanitarian team in North Korea will get $5 million, humanitarian agencies in the Central African Republic, Djibouti, Eritrea and the Republic of Congo will each receive $3 million, and the U.N. team in Nepal will get $2 million.

The General Assembly revamped the Central Emergency Response Fund in December 2005 after world leaders decided to make up to $500 million available so the U.N. could act speedily to help people caught in conflicts, natural disasters and other emergencies instead of waiting for donors to respond to appeals for aid.

Since then, more than 116 countries and dozens of private sector donors have contributed nearly $2 billion to the fund, OCHA said, and it has disbursed more than $1.7 billion to help millions of victims of natural disaster and conflict in more than 76 countries and territories.

OCHA said nearly $415 million has been pledged for the fund for 2010.

Read the full story here:
UN gives $42 million to underfunded humanitarian crises in nine countries
Associated Press
7/17/2010

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DPRK agent now RoK pastor

Sunday, July 18th, 2010

An interesting story in the Los Angeles Times:

He looks more like a graying clergyman than the boogeyman of thousands of South Korean childhoods.

But Kim Shin-jo is both.

The 69-year-old may preside over a Protestant church in this picturesque community where the Han River bends among mountain peaks. But he is also the reluctant grandfather of North Korean spies, a reminder of a cloak-and-dagger world that refuses to be dispatched to the history books on this divided peninsula.

On a recent day, Kim read a news story about the sentencing of two North Korean military spies. Such stories stir bitter memories of the night in 1968 when Kim and 30 other heavily armed North Korean commandos slipped into Seoul  on a mission to assassinate then-President Park Chung-hee.

For the infiltrators, the operation ended in disaster. Cornered outside the presidential residence, they waged a deadly, days-long gun battle with South Korean police and military forces. Although nearly all of the North’s commandos were killed, Kim was captured. Interrogated for months about his spy career, he was eventually released and later became a South Korean citizen, marrying and having a family.

Years in a free society have exposed the fallacy of North Korea’s argument that the South is an agonized wasteland that must be recolonized. Still, Kim feels pity for these newest Northern moles.

“I know they must be punished — we have a rule of law here,” he says. “Still, I’m a human being. I feel sorry for them.”

As the recent U.S. arrest of nearly a dozen Russian agents illustrates, international espionage still exists decades after the Cold War — especially on the Korean peninsula, where North and South are still technically at war.

Without money for high-priced satellites, a cash-starved North Korea relies on a more practical resource.

“It’s hardly believable, but in this high-tech age, North Korea still relies heavily on humans as information gatherers,” said Lee Dong-bok, a former member of South Korean intelligence and a senior associate at the Center for Strategic and International Studies.

Kim, whose parents were executed when he pursued citizenship here, still faces derision over his sinister mission of long ago. He’s not a man of God, some say, but a would-be assassin. He remains haunted for surviving when others didn’t.

“Sometimes,” he says, “I think it would have been better if I had died that day.”

*

The operation code names were Cuckoo and Skylark.

At 27, Kim was chosen from among tens of thousands of North Korean agents to form the elite 124th Special Forces Unit. Their task: Cross the heavily mined DMZ and execute the South Korean president, taking pictures to verify the kill.

The 31 commandos were divided into six teams. As an army lieutenant, Kim led a squad whose role was to take out the bodyguards at the presidential mansion, known as the Blue House.

“I felt gratified to be part of the revolution to emancipate South Korea,” Kim recalls. “We thought the president there was a stooge, an American collaborator. I hated him.”

The unit set off at 8:30 p.m. on Jan. 17, 1968, dressed in South Korean army uniforms. Moving by darkness, hiding during the day, they snipped barbed wire and marched south through the mountains.

One night, they ran into a group of farmers gathering wood. Instead of killing them, they warned the villagers not to report them. The civilians immediately contacted authorities, who launched a manhunt for the infiltrators.

Still, Kim and his teams made it to within 200 yards of the Blue House before being stopped by a suspicious South Korean soldier who demanded their identification.

The commandos opened fire, setting off a series of deadly street battles. Eventually, 35 South Koreans were killed and 64 wounded — soldiers, policemen and civilians, including a 15-year-old boy, who was among the victims of a grenade thrown at a loaded bus.

Insisting that he made a point not to kill civilians, Kim says that he scattered from the rest and never fired his gun. Instead, he fled south into the woods, where he was captured within hours.

Two days later, Kim was trotted out in handcuffs on live television. Asked about his mission, the unrepentant prisoner gave an answer that still haunts many older South Koreans: “I came down to cut Park Chung-hee’s throat,” he declared.

But his revolutionary spirit would not last — thanks to a South Korean army general who headed Kim’s interrogation. Over months of patient reasoning, the officer broke through Kim’s defenses. The two eventually became close.

“He told me, ‘We have a problem with the North Korean regime, not you,’ ” Kim recalls. “He was my father’s age and treated me as his son. He said, ‘I was a young soldier too once. As a commander, I will never kill you. But I will forgive you.’ ”

*

After four decades, the South Korean government recently opened a trail that leads south toward the capital from the North Korean border. It is the path the commandos took on their fatal mission. For years, the winding path has been known as the Kim Shin-jo Route, after a man whose name for many is as recognizable as any former president.

Officials called on Kim to act as a tour guide on the trail’s opening day. He could have refused, he says. But he realized that in order to come to terms with this painful national incident, South Koreans needed to see him in the role of the everyman, to see that he was no longer their boogeyman.

All day, people pointed at him. Those old enough often spoke with scorn. Kim, they swore, was the reason many South Koreans fled their homeland in the early 1970s, fearful of another war with the North. Because of Kim, many of the older generation who remained behind lived in perpetual fear.

“Wherever I go, I get the comments,” says Kim, who became a Protestant clergyman in 1997, finding solace in his faith. “It will happen as long as I am alive. People will point and accuse me.”

Every Jan. 21, Kim memorializes the day of the attack. The day once brought what Kim calls “indescribable pain.” But his wife has taught him to think differently.

“My family tells me that as of Jan. 21, 1968, I was dead,” he says. “On that day, I started a second life. I’m really 69, an old man. But they joke that I’m only 42. And that day that once caused me so much grief should be celebrated as my birthday.”

Read the full story here:
The face of South Korea’s boogeyman
Los Angeles Times
http://www.latimes.com/news/nationworld/world/la-fg-korea-spy-20100718,0,7204441.story?page=1
John M. Glionna
7/18/2010

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Amnesty International publishes report on DPRK

Thursday, July 15th, 2010

UPDATE: UN World Health Organization has criticized the Amnesty report.  According to the Associated Press:

The World Health Organization found itself Friday in the strange position of defending North Korea’s health care system from an Amnesty International report, three months after WHO’s director described medicine in the totalitarian state as the envy of the developing world.

WHO spokesman Paul Garwood insisted he wasn’t criticizing Amnesty’s work, but the public relations flap illustrated an essential quandary for aid groups in unfree states: how to help innocent people without playing into the hands of their leaders.

Amnesty’s report on Thursday described North Korea’s health care system in shambles, with doctors sometimes performing amputations without anesthesia and working by candlelight in hospitals lacking essential medicine, heat and power. It also raised questions about whether coverage is universal as it — and WHO — claimed, noting most interviewees said they or a family member had given doctors cigarettes, alcohol or money to receive medical care. And those without any of these reported that they could get no health assistance at all.

Garwood said Thursday’s report by Amnesty was mainly anecdotal, with stories dating back to 2001, and not up to the U.N. agency’s scientific approach to evaluating health care.

“All the facts are from people who aren’t in the country,” Garwood told reporters in Geneva. “There’s no science in the research.”

The issue is sensitive for WHO because its director-general, Margaret Chan, praised the communist country after a visit in April and described its health care as the “envy” of most developing nations.

Major global relief agencies have been quietly fighting for years to save the lives of impoverished and malnourished North Koreans, even as the country’s go-it-alone government joined the exclusive club of nuclear weapons powers and wasted millions on confrontational military programs.

Some groups may fear being expelled from the country if they are openly critical of Pyongyang, which is highly sensitive to outside criticism. Still, Chan’s comments were uncommonly ebullient.

Garwood and WHO spokeswoman Fadela Chaib insisted that Amnesty’s report was complementary to their boss’ observations, and sought to downplay Chan’s praise for North Korea. Instead, they focused on the challenges she outlined for North Korea, from poor infrastructure and equipment to malnutrition and an inadequate supply of medicines.

But whereas Chan had noted that North Korea “has no lack of doctors and nurses,” Amnesty said some people had to walk two hours to get to a hospital for surgery. Chan cited the government’s “notable public health achievements,” while Amnesty said health care remained at a low level or was “progressively getting worse.”

Asked Friday what countries were envious of North Korea’s health, Chaib said she couldn’t name any. But she highlighted the importance of maintaining the health body’s presence in the country, where officials do their best to save lives despite “persisting challenges.”

“We are an organization dealing with member states, and we respect the sovereignty of all countries,” Chaib said. “We need to work there to improve the lives of people.”

Sam Zarifi, head of Amnesty’s Asia-Pacific program, said the human rights group stood by its findings.

“We certainly have a lot of restrictions in terms of working in North Korea, but we did our best in terms of capturing the information we could verify,” Zarifi said. “We don’t take the WHO’s statements as criticizing or rejecting Amnesty’s findings.”

He said Amnesty had spoken to North Koreans as well as to foreign health care and aid workers, and relied heavily on WHO for information — including the assessment that North Korea spends $1 per person per year on health care, the lowest level in the world.

The U.N. estimates that 8.7 million people need food in North Korea. The country has relied on foreign assistance to feed much of its population since the mid-1990s when its economy was hit by natural disasters and the loss of the regime’s Soviet benefactor.

North Korea, ruled by Kim Jong Il, is routinely described by U.N. and other reports as one of the world’s most repressive regimes.

Garwood said Amnesty’s research added a needed element to understanding health conditions in North Korea, but added that it didn’t even mention recent improvements in the country as the result of a program funded by South Korea and aided by WHO.

The U.N. body claims that maternal mortality has declined by over 20 percent since 2005, and diarrhea cases and deaths in operations have also dropped. It says more than 6,000 doctors and nurses have been trained in emergency obstetric care, newborn care and child illnesses, while clinics have received better material for operations, blood transplants and other medical interventions.

As for Chan’s April claim that “people in the country do not have to worry about a lack of financial resources to access care,” Garwood said hundreds of field missions have been conducted in North Korea.

“None have come back reporting the kinds of things in the Amnesty report in terms of payment for services,” he said.

“I’m not saying they’re not credible accounts,” he added. “But it’s not taking into account some of the things that are happening today.”

Zarifi, of Amnesty, said the whole debate would be ended if North Korea’s government provided access to monitors so that everyone had a better understanding of the country’s health care system.

“Every indication we have indicates the state of health care in North Korea is dire,” he said.

ORIGINAL POST: Here is the introduction to the report (which you can download here as a PDF):

In the early 1990s, the Democratic People’s Republic of Korea (DPRK or North Korea) faced a famine that killed up to one million people in a population that at the time hovered around 22 million (the current population stands at 23.9 million). Food shortages and a more general economic crisis have persisted to this day. The government has resolutely maintained that it is committed to, and capable of, providing for the basic needs of its people and satisfying their right to food and a proper standard of health. The testimonies presented in this report suggest otherwise. The people of North Korea suffer significant deprivation in their enjoyment of the right to adequate health care, in large part due to failed or counterproductive government policies. These poor policies include systematic failure to provide sufficient resources for basic health care (North Korea had one of the lowest levels of per capital funding for health care recorded by the World Health Organisation in 2006). After nearly two decades, food insecurity remains a critical concern for millions of North Koreans. This has been compounded by the government’s reluctance to seek international cooperation and assistance, which the government is obligated to do when it would otherwise be unable to ensure minimum essential levels of food for the whole population, and its restrictions on the delivery of humanitarian assistance. This delayed and inadequate response to the food crisis has significantly affected people’s health.

Additionally, a currency revaluation plan in November 2009 caused spiralling inflation that in turn aggravated food shortages and sparked social unrest. In the first few months after the plan went into effect, the North Korean government exacerbated the situation by restricting the use of foreign currency, closing down food markets, and prohibiting small-plot farming. Many people died of starvation and many others lost their entire savings.

Amnesty International has documented how widespread and chronic malnutrition, which suppresses people’s immune system, has triggered epidemics and mass outbreaks of illnesses related to poor diet. Interviews with North Koreans depict a country that professes to have a universal (free) health care system but in reality struggles to provide even the most basic service to the population. Health facilities are rundown and operate with frequent power cuts and no heat. Medical personnel often do not receive salaries, and many hospitals function without medicines and other essentials. As doctors have begun charging for their services, which is illegal under North Korea’s universal health care system, the poor cannot access full medical care, especially medicines and surgery.

The interviews conducted by Amnesty International indicate that the North Korean government has also failed its obligation to provide adequate public health information. As a result, most of the interviewees were unaware of the importance of seeking proper medical diagnoses or completing a course of medication. And, because many hospitals no longer supply free services or medicines (despite government commitments to the contrary), many people normally do not visit doctors even when they are ill.

In a 2004 report, Starved of Rights: Human rights and the food crisis in the Democratic People’s Republic of Korea (North Korea), Amnesty International documented actions of the North Korean government that aggravated the effects of the famine and the subsequent food crisis, including denying the existence of the problem for many years, and imposing ever tighter controls on the population to hide the true extent of the disaster from its own citizens. It also documented the government’s refusal to allow swift and equitable distribution of food and its imposition of restrictions on freedom of information and movement, which exacerbated the population’s ability to search for food.3 Although some progress has been made since 2004, access to food is still a critical issue in North Korea. As this report demonstrates, the inadequate and sometimes counter-productive actions of the North Korean government over the country’s food crisis have had a devastating impact on the health of the population.

Under international law and standards, North Korea is obligated to protect the rights of its population to the highest attainable standard of health. This means that, at the very least, the state must provide for adequate health care and the underlying determinants of health, including food and nutrition, housing, access to safe and potable water and adequate sanitation, safe and healthy working conditions, and a healthy environment. North Korea’s responsibilities under international and domestic law will be addressed in greater detail in section 5.

To improve the situation, Amnesty International presents the following key recommendations to the government of the Democratic People’s Republic of Korea with more detailed recommendations in the conclusion of this report.

Amnesty International calls on the North Korean government to:

1. as a matter of priority, ensure that food shortages are acknowledged and effective steps taken to address these shortages, including acceptance of needed international humanitarian assistance;

2. ensure the need-based and equitable distribution of health facilities, goods and services throughout the country;

3. co-operate with the World Food Programme and donors, allow unrestricted access to independent monitors, and ensure non-discrimination, transparency and openness in the distribution of food aid;

4.ensure that medical personnel are paid adequately and regularly so that they may carry out their duties properly;

5. undertake information and education campaigns to provide accurate and comprehensive information on prevalent infections and diseases; their causes, symptoms and treatment; and the importance of medical diagnosis and effective use of medicines.

Furthermore, Amnesty International recommends to the international community, and in particular, major donors and neighbouring countries such as China, Japan, Russian Federation, South Korea and US to:

1. ensure that the provision of humanitarian assistance in North Korea is based on need and is not subject to political conditions.

This report has received wide coverage in the media.  Here are the links:

Barbara Demick, Los Angeles Times

Choe Sang-hun, New York Times

Yonhap

BBC

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DPRK leases squid rights to Chinese

Thursday, July 15th, 2010

According to the Joong Ang Ilbo:

North Korea is allowing Chinese fishermen into its territorial waters on the East Sea in exchange for cash, according to Seoul government officials.

The North Korean and Chinese governments recently agreed to allow squid boats from China to fish in North Korea’s waters, said a Seoul official who declined to be named.

About 250 Chinese boats are operating near Najin [Rajin/Rason] and Chongjin, two port cities in North Hamgyong Province, a northeast coastal area. It is the first time such a large number of Chinese crafts have been allowed to operate in North Korea’s seas, he said.

North Korea is collecting about 250,000 yuan ($36,913) for each boat for 2010, meaning the impoverished country is expected to earn about 62.5 million yuan in the deal.

“Many of the North’s fishing boats are extremely outdated and are experiencing intense fuel oil shortages, while squid prices in China have gone up due to supply shortages,” the official said. “So each side’s interests have been satisfied.”

North Korea has been hungry for more cash to finance state projects, including a so-called Pyongyang modernization project that involves paving major roads, upgrading railway networks and refurbishing urban streets.

“They are trying to secure more foreign currency through a commercial deal that is not subject to UN Security Council Resolution 1874,” said the official, referring to the UN economic sanctions adopted in June 2009 that involve trade restrictions, cargo inspections and other limits on financial transactions.

The Chinese fishing boats operating in the North’s sea mostly come from Dalian and Dandong, two ports in China’s northeastern coastal region.

“The fishing rights the Chinese boats have secured cover most of the North’s territorial waters on the East Sea,” said another Seoul official. The official expressed concern about possible overfishing by the Chinese, which may affect South Korean fishermen as well.

“Once squid start moving to the south, the Chinese fishing boats will travel farther south, possibly all the way down to Heungnam, Sinpo and Wonsan,” said another South Korean government official, referring to the North’s port cities in South Hamgyong Province.

Read the full article below:
North Korea leases out its squid beds to China
Joong Ang Ilbo
Chung Yong-soo
7/15/2010

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Kumamoto trading firm head indicted over illegal exports to China/DPRK

Wednesday, July 14th, 2010

According to Kyodo (via Japan Today):

Prosecutors indicted the president of a trading company in Kumamoto Prefecture on Tuesday on a charge of illegally exporting to China a power shovel that can be used in the development of weapons of mass destruction and which was later transported to North Korea, investigators said. Hiromitsu Tsutsumi, 63, of Yatsushiro, Kumamoto Prefecture, was arrested last month along with the 37-year-old head of another trading firm in Fukuoka City, but prosecutors have decided not to indict the latter due to insufficient evidence.

Tsutsumi is suspected of exporting to China a used power shovel in April last year under the name of the trading firm in Fukuoka by submitting to customs a false declaration and without obtaining permission from the economy, trade and industry minister, according to the indictment. The Fukuoka prefectural police said they have confirmed that the power shovel has since been transported to North Korea from China’s Dalian.

Tsutsumi has also exported three other power shovels to Hong Kong in February last year and has told investigators that he received orders from North Korea and was given about 10 million yen in advance payment, and that the power shovel he exported in April 2009 was a reward for the ordering party, according to the police. Power shovels are designated as items subject to the export control regulation as they could be diverted for military use, such as for launch pads for ballistic missiles.

Just last week another Japanese firm was busted for illegally exporting luxury goods to the DPRK.

Read the full story here:
Kumamoto trading firm head indicted over illegal exports to China
Kyodo (Japan Today)
7/14/2010

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Russia To Augment Missile Defense Along Border With North Korea

Wednesday, July 14th, 2010

According to RTTN News:

Russia is to deploy its latest surface-to-air missiles along its border with North Korea as part of efforts to strengthen its missile defense system in the region, local media reported on Tuesday.

According to an unnamed Russian defense official, the deployment of S-400 Triumph missiles in the country’s Far East will help avert potential missile threats from Pyongyang.

He added that the North Korean missile programs posed a threat to neighboring territories in Russia as the test site is ‘alarmingly close’ to Russian border.

As part of the move to augment the existing system two modern missile systems will be stationed there.

Meanwhile, Moscow ‘s decision comes even as there has been an escalation in tensions between North Korea and South Korea over the sinking of a South Korean naval vessel in the Yellow Sea.

Even though Seoul blamed Pyongyang for the tragedy, the latter has remained in denial throughout.

Read the full story here:
Russia To Augment Missile Defense Along Border With North Korea
RTTN News
http://news.ino.com/headlines/?newsid=71320101330
7/13/2010

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DPRK-PRC trade up 18.1% from January to May 2010

Tuesday, July 13th, 2010

Institute for Far Eastern Studies (IFES)
NK Brief No.10-07-08-2
7-8-2010

As inter-Korean commerce has all but dried up in the wake of the Cheonan incident, trade between North Korea and China appears to have continued to grow. According to Chinese customs statistics released on July 6, trade with North Korea from January to May amounted to 983.63 million USD; 18.1 percent more than the 833.07 million USD reported for the same period last year.

North Korea imported 727.192 million USD-worth of Chinese goods (29 percent increase over the same period last year), but exports dropped by 4.9 percent, amounting to only 256.438 million USD. This indicates a 60 percent increase in North Korea’s trade deficit with China, which was 470.757 million USD in the first part of 2009. With South Korean sanctions against the North halting all inter-Korean trade outside of the Kaesong Industrial Complex following the sinking of the Cheonan, it is expected that Pyongyang will become even more economically dependent on Beijing.

During this period, crude oil accounted for most of North Korea’s imports from China, as Pyongyang bought 254,000 tons (slightly more than the 247,000 tons in early 2009). However, due to rising international fuel prices, this oil cost the North 157.097 million USD, a 76 percent increase over what Pyongyang spent during this period last year.

In addition, rice (24,400 tons), corn (31,400 tons), beans (20,500 tons), flour (34,000 tons) and other necessary food imports totaling 11,300 tons reflected a 41 percent increase over the same period in 2009. The cost of fertilizer imports also jumped sharply, amounting to 81,943 tons, or 115.6 percent more than the 38,004 tons imported from January to May 2009. Increasing imports of food and fertilizer are a result of the growing agricultural difficulties being faced in the North. Based on current prices, aviation fuel imports also grew by 46.8 percent, freight trucks by 98.7 percent, automobile fuel by 47.4 percent, and bituminous coal by 137 percent.

The top ten official imports of Chinese goods by North Korea were as follows: crude oil (21.6 percent); aviation fuel (3.1 percent); freight trucks (2.9 percent); automobile fuel (2 percent); bituminous coal (1.9 percent); fertilizer (1.8 percent); beans (1.6 percent); flour (1.6 percent); rice (1.5 percent); and corn (1.1 percent).

North Korea’s exports to China were mainly underground natural resources. The top ten exported goods were: iron ore (17.1 percent); anthracite (16 percent); pig iron (9.6 percent); zinc (5 percent); Magnesite (3.6 percent); lead (2.4 percent); silicon (2.3 percent); men’s clothing (2.2 percent); frozen squid (2.1 percent); and aluminum (1.9 percent).

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DPRK risk ‘biggest drag on Seoul’s credit rating’

Tuesday, July 13th, 2010

According to the Choson Ilbo:

Korean reunification risk is the biggest drag on South Korea’s sovereign rating, according to an expert at ratings agency Standard and Poor’s.

David Beers of S&P on Monday said, “Korea unification, that’s going to be very economically and financially challenging for South Korea, because of the huge gap in income levels of the two countries.”

German reunification cost a lot of money despite the narrower economic gap between East and West Germany. The U.S-based global credit agency has kept South Korea’s sovereign rating unchanged at A since July 2005 — two notches lower than AA-, the rating given before the Asian financial crisis in the late 1990s, because the potential cost of the Korean reunification has been increasing, he said.

Beers also pointed to the war risk between South and North Korea as a hurdle to raising South Korea’s rating, even though the likelihood is slim.

The “stable” outlook means that there is a slim chance of a change in the country’s rating for two years to come, he added.

Beers was positive about the country’s reduction of short-term foreign debts since the global financial crisis in 2008 and predicted it will be ready to avert another global liquidity crisis.

An S&P inspection team led by Beers is in Seoul to attend an annual consultation about the rating from Wednesday to Friday.

Read the full story here:
N.Korean Risk ‘Biggest Drag on Seoul’s Credit Rating’
Choson Ilbo
7/13/2010

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KCNA hails UNPF cooperation

Monday, July 12th, 2010

According to KCNA:

Int’l Cooperation Strengthened in Population Work

Pyongyang, July 10 (KCNA) — Twenty-five years has elapsed since the cooperation between the Democratic People’s Republic of Korea and the United Nations Population Fund (UNPF) was started.

The DPRK government concluded an agreement with the UNPF in Juche 74 (1985) and has conducted various activities to improve the population work.

From 1986 the UNPF has cooperated with the DPRK in the population work such as training of experts, building of material foundations, census of population and improvement of the women’s health.

In cooperation with the UNPF, the DPRK government conducted the first nationwide census in 1993 and the second in 2008 in a scientific way suitable to the international standard.

The government has also successfully finished the survey of the pregnant women’s mortality and health, one of the Millennium Development Goals (MDG).

The results of the survey have served as basic data in working out national economic growth plan and public health plan in a scientific way.

On the occasion of the World Population Day (July 11), Yang Song Il, a section chief of the Population Centre of the DPRK, told KCNA that the 2007-2010 fourth cooperation plan between the UNPF and the DPRK will be finished and the 2011-2013 fifth cooperation plan will be worked out this year.

He said, “We will continue surveys in different fields to make a scientific contribution to the development of national economy and public health and work hard to implement the action programme of the International Conference on Population and Developmentand attain the MDG, further strengthening cooperation with international organizations, including the UNPF”.

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